-----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, JT7tOZpUfmzXchUBA4THnU11idXLw6tz1z6KQSOXjY5YHgw2okjDJUGJoZqhrM3R DeGNCNK4wM+JSjb1W1hxRQ== 0000025743-97-000005.txt : 19970520 0000025743-97-000005.hdr.sgml : 19970520 ACCESSION NUMBER: 0000025743-97-000005 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19970331 FILED AS OF DATE: 19970515 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: 97607843 BUSINESS ADDRESS: STREET 1: 1675 BROADWAY STREET 2: STE 1030 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, 1997 or [ ] Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 Operations For the transition period from _______________ to ________________ Commission File Number: 1-100 CROFF ENTERPRISES, INC. (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.) 1675 Broadway, Suite 1030, Denver, CO 80202 (Address of principal executive offices) (Zip Code) (303) 623-3383 (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. ________ 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: 516,265 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, 1997 (UNAUDITED). _________________________________________________________________ PART I. FINANCIAL INFORMATION Page Number Balance Sheets as of December 31, 1996 and March 31, 1997 3 Statements of Operations for the Three Months Ended March 31, 1997 and 1996 5 Statements of Cash Flows for the Three Months Ended March 31, 1997 and 1996 6 Notes to Financial Statements 7 Management's' Discussion and Analysis of Financial Condition and Results of 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, 1997 and 1996 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, 1996 1997 CURRENT ASSETS: Cash and Cash Equivalents: $ 184,565 $ 201,122 Marketable equity securities 10,500 10,000 Accounts receivable: Oil and gas purchasers 31,764 24,609 Refundable income taxes 4,362 5,362 Other advances 0 368 Total current assets $ 231,191 $ 241,461 PROPERTY AND EQUIPMENT, AT COST: Oil & gas properties, successful efforts method: Proved properties 329,700 346,275 Unproved properties 101,901 101,901 431,601 448,176 Less accumulated depletion and depreciation (229,621) (235,620) Net Property Value 201,980 212,556 Furniture, fixtures & equipment 0 0 Less accumulated depreciation 0 0 -- -- Net property and equipment 201,980 212,556 Coal investment 82,533 82,533 Total Assets $ 515,704 $536,550 PART I: FINANCIAL INFORMATION CROFF OIL COMPANY BALANCE SHEET Dec 31, March 31, 1996 1997 Current Liabilities: Accounts payable $ 3,164 $ 2,268 Accrued liabilities 1,660 1,659 ------------- ------------- Total current liabilities 4,824 3,927 Stockholders' equity : Class A Preferred, none issued Class B Preferred stock, no par value; 520,000 authorized, 516,506 shares issued 233,744 233,744 Common stock, $.10 par value 20,000,000 share authorized 579,143 shares issued 57,914 57,914 Capital in excess of par value 672,799 672,799 Accumulated deficit (370,931) (348,938) -------------- -------------- 593,526 615,519 Less treasury stock at cost, 62,628 shares in 1996 and 62,878 in 1997 (82,646) (82,896) Total stockholders' equity 510,880 532,623 Total Liabilities & Stockholder's Equity $ 515,704 $536,550 CROFF OIL COMPANY Statement of Operations For the Three Months Ended March 31 1996 1997 Revenue: Oil and gas sales.............. $ 47,485 $ 58,002 Other income (loss)............ 988 1,222 Total revenue 48,473 59,224 Costs and expenses: Lease operating expense........ $ 10,629 $ 9,274 Depreciation and depletion..... 7,500 6,000 General and administrative..... 19,152 19,017 Rent Expense - Related Party... 2,940 2,940 ------------ ---------- 40,444 37,231 Net income (loss) $ 8,029 $21,993 Earnings (Loss) Per Share $ .02 $ .04 CROFF OIL COMPANY Statement of Cash Flows For the Three Months Ended March 31, 1996 1997 CASH FLOWS FROM OPERATING ACTIVITIES: Net income (loss) $ 8,029 $ 21,993 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and depletion 7,500 6,000 Change in assets and liabilities: Decrease in accounts receivable 500 6,155 Decrease/(increase) in other assets 0 (368) Increase/(decrease) in accounts payable (605) (898) Increase/(decrease) in accrued liabilities (17) 0 Total adjustments 7,378 10,889 Net cash provided by --------- -------- operating activities: 15,407 32,882 CASH FLOWS FROM INVESTING ACTIVITIES: Sale/Depreciation of marketable equity securities 6,981 500 Sale/Purchase)of Producing properties 0 (16,575) -------- --------- 6,981 (16,075) CASH FLOWS FROM FINANCING ACTIVITIES: Purchase of Treasury Stock 0 (250) Note payable (50,000) 0 --------- --------- (50,000) (250) Increase (decrease) in cash: (27,613) 16,557 Cash at beginning of period: $ 37,933 184,565 Cash at end of period: $ 10,321 $201,122 CROFF OIL COMPANY NOTES TO FINANCIAL STATEMENTS FOR THE THREE MONTH PERIOD ENDED MARCH 31, 1997 1. BASIS OF PREPARATION. The condensed financial statements for the three month periods ended March 31, 1997 and 1996 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 1997 presentation. Certain 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, 1996, 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, 1997, as Compared to the Three-Month Period Ended March 31, 1996. OIL AND GAS OPERATIONS Oil and gas revenue, primarily from royalties, for the three months ended March 31, 1997 was $58,002 compared to $47,485 for the quarter ending March 31, 1996. This increase was due primarily to higher oil and natural gas prices which peaked during the first quarter. Oil production was down slightly from 1996, but natural gas production increased. Production costs, which include lease operating expenses and all production related taxes, for the three months ended March 31, 1997, decreased slightly when compared to the production costs incurred during the quarter ended March 31, 1996, $9,274 during 1997 and $10,629 during 1996. This slight decrease was due to more natural gas production which has lower operating costs and less expenses. OTHER INCOME During the three month period ended March 31, 1997, the Company had other income of $1,222 from interest, capital gains, dividends, and lease payments. This was an increase from $988 in the same period in 1996. The increase was due to more interest income based on higher cash balances in 1997. GENERAL AND ADMINISTRATIVE EXPENSES General and administrative expenses for the quarter ending March 31, 1997, were $19,017 plus rent expense of $2,940 for a total of $21,957 compared to $19,152 plus $2,940 for a total of $22,092 in the same period in 1996. The Company expects general and administrative costs to remain stable this year. FINANCIAL CONDITION As of March 31, 1997, the Company's current assets exceeded current liabilities by $237,535. As of December 31, 1996, the Company's current assets exceeded current liabilities by $231,191. The Company's current ratio is approximately 60:1. The Company intends to accumulate cash temporarily, while it seeks to find an acquisition company and/or oil and natural gas leases that it can buy at prudent prices. The Company expects to continue to operate at a positive cash flow for the calendar year. The Company intends to purchase 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, 1997. 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___, 1997 EX-27 2
5 3-MOS DEC-31-1997 MAR-31-1997 201,122 10,000 30,339 0 0 241,461 448,176 (235,620) 536,550 3,927 0 0 233,744 57,914 323,861 536,550 58,002 59,224 0 15,274 21,957 0 0 21,993 0 21,993 0 0 0 21,993 .04 .04
-----END PRIVACY-ENHANCED MESSAGE-----