-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, UMqtRYZ1PsK/rwkeDZQMgRYz/Q9Sfbnv9AnpX6eEYwVECKBQbkiYaaYtXebkYg8O 9B3U46y0dJCFeiP+H/IM8w== 0000025743-96-000006.txt : 19960518 0000025743-96-000006.hdr.sgml : 19960518 ACCESSION NUMBER: 0000025743-96-000006 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19960331 FILED AS OF DATE: 19960515 SROS: NONE FILER: COMPANY DATA: COMPANY CONFORMED NAME: CROFF OIL CO CENTRAL INDEX KEY: 0000025743 STANDARD INDUSTRIAL CLASSIFICATION: CRUDE PETROLEUM & NATURAL GAS [1311] IRS NUMBER: 870233535 STATE OF INCORPORATION: UT FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10-Q SEC ACT: 1934 Act SEC FILE NUMBER: 000-16731 FILM NUMBER: 96568107 BUSINESS ADDRESS: STREET 1: 1433 17TH ST STREET 2: STE 220 CITY: DENVER STATE: CO ZIP: 80202 BUSINESS PHONE: 3032973383 10-Q 1 FORM 10-Q.--QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q [X] Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the period ended March 31, 1996 or [ ] Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the transition period from _______________ to _____________________ Commission File Number: 1-100 CROFF OIL COMPANY (Exact name of registrant as specified in its charter) Utah 87-0233535 (State or other jurisdiction of (I.R.S. Employer incorporation or organization) Identification No.) 1433 Seventeenth Street, Suite 220, Denver, CO 80202 (Address of principal executive offices) (Zip Code) (303) 297-3383 (Registrant's telephone number, including area code) _______________________________________________________________________ (Former name, former address and former fiscal year, if changed since last report.) Indicate by check mark whether the Registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the Registrant has required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. X Yes ______ No APPLICABLE ONLY TO ISSUERS INVOLVED IN BANKRUPTCY PROCEEDINGS DURING THE PRECEDING FIVE YEARS: Indicate by check mark whether the Registrant has filed all documents and reports required to be filed by Sections 12, 13 or 15(d) of the Securities Exchange Act of 1934 subsequent to the distribution of securities under a plan confirmed by a court. ___X____ Yes ______ No APPLICABLE ONLY TO CORPORATE ISSUERS: Indicate the number of shares outstanding of each of the issuer's classes of common stock, as of the latest practicable date: 516,515 shares, one class only. INDEX INDEX TO INFORMATION INCLUDED IN THE QUARTERLY REPORT (FORM 10-Q) TO THE SECURITIES AND EXCHANGE COMMISSION FOR THE THREE MONTHS ENDED MARCH 31, 1996 (UNAUDITED). _________________________________________________________________ PART I. FINANCIAL INFORMATION Page Number Balance Sheets as of December 31, 1995 and March 31, 1996 3 Statements of Operations for the Three Months Ended March 31, 1996 and 1995 5 Statements of Cash Flows for the Three Months Ended March 31, 1996 and 1995 6 Notes to Financial Statements 7 Managements' Discussion and Analysis of Financial Condition and Results of Operations 7 PART II. OTHER INFORMATION Reports on Form 8-K 9 Signatures. 10 _________________________________________________________________ The condensed financial statements included herein are for the Registrant, Croff Oil Company. The financial statements for the three months ended March 31, 1996 and 1995 are unaudited; however, they reflect all adjustments which, in the opinion of management, are necessary to present fairly the results of the interim periods. All adjustments necessary to a fair representation of the financial statements are of a normal recurring nature. PART I: FINANCIAL INFORMATION CROFF OIL COMPANY BALANCE SHEET Dec 31, March 31, 1995 1996 CURRENT ASSETS: Cash and Cash Equivalents: $ 37,933 $ 10,321 Marketable equity securities 15,500 8,125 Accounts receivable: Oil and gas purchasers 28,425 28,425 Refundable income taxes 4,290 5,289 Note receivable, secured by interests in oil and gas properties, including accrued interest 4,800 3,300 Total current assets $ 90,948 $ 55,460 PROPERTY AND EQUIPMENT, AT COST: Oil & gas properties, successful efforts method: Proved properties 457,874 457,874 Unproved properties 110,051 110,051 567,925 567,925 Less accumulated depletion and depreciation (249,154) (256,654) Net Property Value 318,771 311,271 Furniture, fixtures & equipment 0 0 Less accumulated depreciation 0 0 -- -- Net property and equipment 318,771 311,271 Coal investment 95,299 95,299 Total Assets $ 505,018 $ 462,030 ============= ============== PART I: FINANCIAL INFORMATION CROFF OIL COMPANY BALANCE SHEET Dec 31, March 31, 1995 1996 Current Liabilities: Accounts payable $ 10,829 $ 9,830 Accrued liabilities 3,662 3,644 Bank note to finance coal investment 50,000 0 -------------- -------------- Total current liabilities 64,491 13,474 Stockholders' equity : Common stock, $.10 par value 20,000,000 share authorized 579,143 shares issued 57,914 57,914 Capital in excess of par value 909,983 909,983 Accumulated deficit (444,724) (436,695) -------------- -------------- 523,173 531,202 Less treasury stock at cost, 52,788 shares in 1994 and 62,628 in 1995 (82,646) (82,646) Total stockholders' equity 440,527 448,556 Total Liabilities & Stockholder's Equity $ 505,018 $ 462,030 ============= ============== CROFF OIL COMPANY Statement of Operations For the Three Months Ended March 31 1995 1996 Revenue: Oil and gas sales.............. $ 45,077 $ 47,485 Other income (loss)............ 3,720 988 Total revenue 48,797 48,473 Costs and expenses: Lease operating expense........ $ 10,531 $ 10,629 Depreciation and depletion..... 7,500 7,500 General and administrative..... 19,137 19,152 Rent Expense - Related Party... 2,940 2,940 40,108 40,444 Net income (loss) $ 8,689 $ 8,029 ========= ========= Earnings (Loss) Per Share $ .02 $ .02 ========= ========= CROFF OIL COMPANY Statement of Cash Flows For the Three Months Ended March 31, 1995 1996 CASH FLOWS FROM OPERATING ACTIVITIES: Net income (loss) $ 8,689 $ 8,029 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and depletion 7,500 7,500 Change in assets and liabilities: Decrease in accounts receivable 6,457 500 Decrease/(increase) in other assets (2,000) 0 Increase/(decrease) in accounts payable 2,847 (605) Increase/(decrease) in accrued liabilities 2,047 (17) Gain-sale of Marketable Equity Securities (660) (637) Total adjustments 16,191 6,741 Net cash provided by operating activities: 24,880 14,770 --------- --------- CASH FLOWS FROM INVESTING ACTIVITIES: Sale of marketable equity security 8,410 7,618 Coal investment (100,000) 0 (91,590) 7,618 CASH FLOWS FROM FINANCING ACTIVITIES: Purchase of Treasury Stock 0 0 Note payable 50,000 (50,000) --------- --------- 50,000 (50,000) Increase (decrease) in cash: (16,710) (27,613) Cash at beginning of period: $ 19,385 37,933 ======== ======== Cash at end of period: $ 2,675 $ 10,321 ======== ========= CROFF OIL COMPANY NOTES TO FINANCIAL STATEMENTS FOR THE THREE MONTH PERIOD ENDED MARCH 31, 1996 1. BASIS OF PREPARATION. The condensed financial statements for the three month periods ended March 31, 1996 and 1995 in this report have been prepared by the Company without audit pursuant to the rules and regulations of the Securities and Exchange Commission and reflect, in the opinion of management, all adjustments necessary to present fairly the results of the operations of the interim periods presented herein. Certain reclassifications have been made to the prior years' financial statements to conform to the 1996 presentation. Certain information in footnote disclosures normally included in financial statements prepared in accordance with generally accepted accounting principles have been omitted pursuant to such rules and regulations, although the Company believes the disclosures presented herein are adequate to make the information presented not misleading. It is suggested that these condensed financial statements be read in conjunction with the financial statements and notes thereto included in the Company's Annual Report on Form 10-K for the year ended December 31, 1995, which report has been filed with the Securities and Exchange Commission, and is available from the Company. MANAGEMENTS' DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS RESULTS OF OPERATIONS. Three-Month Period Ended March 31, 1996, as Compared to the Three-Month Period Ended March 31, 1995. OIL AND GAS OPERATIONS Oil and gas income, primarily from royalties, for the three months ended March 31, 1996 was $47,485 compared to $45,077 for the quarter ending March 31, 1995. This increase was due primarily to higher oil prices, and production nearly constant with 1995. Production costs, which include lease operating expenses and all production related taxes, for the three months ended March 31, 1996, were constant when compared to the production costs incurred during the same time period of the prior year, $10,706 during 1996 and $10,531 during 1995. The constant level of cost was due to lack of significant workovers and the high amount of revenue from royalty interests, for which costs are taxes only. OTHER INCOME During the three month period ended March 31, 1996, the Company had other income of $988 from interest, capital gains, dividends, and lease payments. This was a decrease from $3,720 in the same period in 1995. The decrease was due to gains on investments and the receipt of a lease bonus in 1995. GENERAL AND ADMINISTRATIVE EXPENSES General and administrative expenses for the quarter ending March 31, 1996, were $19,152 plus rent expense of $2,940 for a total of $22,092 compared to $19,137 plus $2,940 for a total of $22,077 in the same period in 1995. The Company expects general and administrative costs to remain stable this year. FINANCIAL CONDITION As of March 31, 1996, the Company's current assets exceeded current liabilities by $41,986. As of December 31, 1995, the Company's current assets exceeded current liabilities by $26,457. This increase was due to the payoff of a $50,000 note in February, 1996. The Company intends to accumulate cash during this calendar year. The Company expects to continue to operate at a positive cash flow for the calendar year as oil prices have risen this year. The Company intends to resume purchasing oil and gas properties, out of current assets. PART II. OTHER INFORMATION ITEM 6(b). REPORTS ON FORM 8-K. The registrant has filed no reports on Form 8-K for the period ending March 31, 1996. S I G N A T U R E S Pursuant to the requirements of the Securities Exchange Act of 1934, Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized. REGISTRANT: CROFF OIL COMPANY By_________________________________ Gerald L. Jensen Chief Executive Officer and Chief Financial Officer By_________________________________ M. Ward Smith Chief Accounting Officer Date:__________MAY 15___, 1996 EX-27 2
5 3-MOS DEC-31-1996 MAR-31-1996 10,321 8,125 37,014 0 0 55,460 567,925 (256,654) 462,030 13,474 0 57,914 0 0 473,288 462,030 47,485 48,473 0 40,444 0 0 223 8,029 0 8,029 0 0 0 8,029 .02 .02
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