-----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, RGAJGpGVoVa9syo8ZkLi32vka+n9R4fhZyxWuapuNpj98dyoVVG1X/yxiPEjadLp O6QRNlxfOjNH5hxHuBNMCg== 0000077864-97-000006.txt : 19970812 0000077864-97-000006.hdr.sgml : 19970812 ACCESSION NUMBER: 0000077864-97-000006 CONFORMED SUBMISSION TYPE: 10QSB PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19970630 FILED AS OF DATE: 19970811 SROS: NASD FILER: COMPANY DATA: COMPANY CONFORMED NAME: PETROL INDUSTRIES INC CENTRAL INDEX KEY: 0000077864 STANDARD INDUSTRIAL CLASSIFICATION: CRUDE PETROLEUM & NATURAL GAS [1311] IRS NUMBER: 751282449 STATE OF INCORPORATION: NV FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10QSB SEC ACT: 1934 Act SEC FILE NUMBER: 000-03912 FILM NUMBER: 97655677 BUSINESS ADDRESS: STREET 1: 202 N THOMAS SUITE 4 CITY: SHREVEPORT STATE: LA ZIP: 71107-6539 BUSINESS PHONE: 3814246396 MAIL ADDRESS: STREET 1: 202 N THOMAS SUITE 4 CITY: SHREVEPORT STATE: LA ZIP: 71107-6539 10QSB 1 PETROL INDUSTRIES, INC. FORM 10QSB, 06/30/97 1 U.S. SECURITIES AND EXCHANGE COMMISSION Washington, DC 20549 FORM 10-QSB (Mark One) [X] Quarterly report under Section 13 or 15(d) of the Securities Exchange Act of 1934 For the quarterly period ended: June 30, 1997 [ ] Transition report under Section 13 or 15(d) of the Exchange Act For the transition period from __________ to __________ Commission File Number: 0-3912 PETROL INDUSTRIES, INC. (Exact Name of Small Business Issuer as Specified in its Charter) NEVADA 75-1282449 (State or Other Jurisdiction of (I.R.S. Employer Identification No.) Incorporation of Organization) 202 N. THOMAS, SUITE 4 SHREVEPORT, LA 71107-6539 (Address of Principal Executive Offices) (318) 424-6396 (Issuer's Telephone Number, Including Area Code) N/A (Former Name, Former Address and Former Fiscal Year, if Changed Since Last Report) Check whether the issuer: (1) filed all reports required to be filed by Section 13 or 15(d) of the Exchange Act during the past 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. YES [XX] NO [ ] APPLICABLE ONLY TO ISSUERS INVOLVED IN BANKRUPTCY PROCEEDINGS DURING THE PRECEDING FIVE YEARS Check whether the registrant filed all documents and reports required to be filed by Section 12, 13 or 15(d) of the Exchange Act after the distribution of securities under a plan confirmed by a court. YES [ ] NO [ ] APPLICABLE ONLY TO CORPORATE ISSUERS State the number of shares outstanding of each of the issuer's classes of common equity, as of the latest practicable date: 1,597,196 2 Item 1. Financial Statements PETROL INDUSTRIES, INC. & SUBSIDIARIES Consolidated Balance Sheets June 30, December 31, 1997 1996 ----------- ------------ ASSETS (unaudited) Current assets: Cash and cash equivalents $ 213,797 218,355 Accounts receivable: Trade 72,875 83,287 Other 9,497 9,497 --------- --------- 82,372 92,784 Inventory 39,385 47,647 Prepaid expenses 9,077 5,325 --------- --------- Total current assets 344,631 364,111 --------- --------- Property and equipment, at cost: Land 7,000 7,000 Developed and undeveloped oil and gas properties- successful efforts method 4,261,564 4,262,884 Trucks and other operating equipment 340,837 336,098 Furniture and fixtures 43,640 37,902 --------- --------- 4,653,041 4,643,884 Less accumulated depreciation, depletion and amortization 4,590,342 4,587,912 --------- --------- 62,699 55,972 --------- --------- Cash surrender value of life insurance, net 56,026 50,476 Other assets 1,107 1,107 --------- --------- $ 464,463 471,666 ========= ========= LIABILITIES AND STOCKHOLDERS' DEFICIT Current liabilities: Accounts payable $ 46,114 51,064 Payable to interest owners 294,222 278,556 Payable to officer, net 319,647 241,255 Accrued expenses 138,205 115,720 --------- --------- Total current liabilities 798,188 686,595 Stockholders' deficit: Preferred stock-no par value. Authorized 1,000,000 shares; no shares issued or outstanding --- --- Common stock-$.10 par value. Authorized 10,000,000 shares; issued and outstanding 1,597,196 and 1,597,241 shares in 1997 and 1996 159,720 159,720 Accumulated deficit (493,445) (374,649) --------- --------- Total stockholders' deficit (333,725) (214,929) --------- --------- $ 464,463 471,666 ========= =========
3 PETROL INDUSTRIES, INC. & SUBSIDIARIES Consolidated Statements of Operations (unaudited) Quarter Ended Six Months Ended June 30, June 30, ---------------- ---------------- 1997 1996 1997 1996 ---- ---- ---- ---- Revenues: Oil and gas sales $ 186,169 230,142 393,725 440,594 Other operating income 3,858 3,598 8,019 7,171 --------- --------- --------- --------- 190,027 233,740 401,744 447,765 --------- --------- --------- --------- Expenses: Lease operating expense 167,535 174,783 342,863 340,094 General and administrative 80,529 88,869 166,543 175,795 Depreciation, depletion and amortization 915 1,710 2,430 3,420 --------- --------- --------- --------- 248,979 265,362 511,836 519,309 --------- --------- --------- --------- Operating loss (58,952) (31,622) (110,092) (71,544) --------- --------- --------- --------- Other income and (expense): Gain on sale of assets --- 19,473 --- 19,473 Interest income 2,932 2,431 5,669 4,752 Interest expense (7,478) (5,114) (14,373) (9,722) --------- --------- --------- --------- (4,546) 16,790 (8,704) 14,503 --------- --------- --------- --------- Net loss $ (63,498) (14,832) (118,796) (57,041) ========= ========= ========= ========= Net loss per share $ (.04) (.01) (.07) (.04) ========= ========= ========= ========= Average common shares outstanding 1,597,196 1,597,231 1,597,196 1,597,231 ========= ========= ========= =========
4 PETROL INDUSTRIES, INC. & SUBSIDIARIES Consolidated Statements of Cash Flows Six months ended June 30, 1997 and 1996 (unaudited) 1997 1996 ---- ---- Operating activities: Net loss $ (118,796) (57,041) Adjustments to reconcile net loss to net cash provided by operating activities: Depreciation, depletion and amortization 2,430 3,420 Gain on sale of assets --- (19,473) Losses on retirements of property and equipment included in lease operating expenses 3,132 2,968 Changes in assets and liabilities: Cash surrender value of life insurance (5,550) (5,550) Accounts receivable 10,412 11,036 Inventory 8,262 (8,068) Prepaid expenses (3,752) (5,441) Accounts payable and accrued expenses 17,535 26,499 Payable to officer, net 78,392 72,933 Payable to interest owners 15,666 15,421 --------- --------- Net cash provided by operating activities 7,731 36,704 Investing activities: Capital expenditures (12,289) (5,368) Proceeds from sale of property and equipment --- 20,000 --------- --------- Net cash (used) provided by investing activities (12,289) 14,632 Financing activities-purchase and retirement of common stock --- (2) --------- --------- Increase (decrease) in cash and cash equivalents (4,558) 51,334 Cash and cash equivalents at beginning of period 218,355 170,012 --------- --------- Cash and cash equivalents at end of period $ 213,797 221,346 ========= =========
5 PETROL INDUSTRIES, INC. & SUBSIDIARIES Consolidated Statements of Changes in Stockholders' Deficit Six months ended June 30, 1997 and 1996 (unaudited) 1997 1996 ---- ---- Stockholders' deficit at January 1 $ (214,929) (81,682) Retirement of stock --- (2) Net loss for the six-month period (118,796) (57,041) --------- --------- Stockholders' deficit at June 30 $ (333,725) (138,725) ========= =========
6 PETROL INDUSTRIES, INC. & SUBSIDIARIES Notes to Consolidated Financial Statements (unaudited) 1. The accompanying unaudited consolidated financial statements have been prepared by the Registrant in accordance with generally accepted accounting principles, pursuant to the rules and regulations of the Securities and Exchange Commission. Certain information and footnote disclosures normally included in financial statements have been condensed or omitted pursuant to such rules and regulations, although management believes that the disclosures are adequate to make the information presented not misleading. In the opinion of management, the accompanying financial statements contain all adjustments necessary for a fair state ment of the results for the interim periods presented. It is suggested that these consolidated financial statements be used in conjunction with the consolidated financial statements and the notes thereto included in the Registrant's 1996 Annual Report on Form 10-KSB. 2. The consolidated financial statements included herein are consolidated with the accounts of Petrolind Drilling Funds, Inc. and Realco, Inc., both wholly owned subsidiaries of the Registrant, neither of which was active during 1997 or 1996. 3. Net income per share of common stock is computed on the weighted average number of shares outstanding during the six months ended June 30. The weighted average number of shares outstanding was determined by totaling the number of shares outstanding at the end of each month and dividing that total by the number of months. Total Number of Shares Outstanding 1997 1996 ---- ---- January 31 1,597,196 1,597,241 February 28 1,597,196 1,597,241 March 31 1,597,196 1,597,241 April 30 1,597,196 1,597,241 May 31 1,597,196 1,597,231 June 30 1,597,196 1,597,231 4. The expected tax benefit resulting from operating losses for the first six months of 1997 has not been recorded because it is not expected to be realizable. Additionally, there were no significant changes in the temporary differences that give rise to significant portions of the deferred tax assets and deferred tax liabilities at June 30, 1997. 7 Item 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS Oil and gas sales revenues decreased approximately 19.1% in the second quarter of 1997, compared to the second quarter of 1996, the result being a decrease in average oil prices of approximately $2.06 per barrel. The Company's net loss for the period increased to $63,498, or ($.04) per share, compared to $14,832 in the 1996 period, or ($.01) per share. The Company sustained an operating loss of $58,652 in the second quarter of 1997, compared to an operating loss of $31,622 in the prior year's second quarter. For the six month period ended June 30, 1997, the Company's net loss increased approximately 52.0% to $118,796 from the $57,041 net loss in the prior year's period. Management has attempted to reduce operating costs over the past several years in an effort to restore profitability in the face of current oil prices. Profitability is contingent essentially upon two factors: increasing production from the Company's mineral leases, or increases in world oil prices. While Management continues to explore possible approaches to increasing oil production, including technological developments or pursuing drilling operations, improvements in production are expected to come, if at all, more from general improvements in local weather conditions than from other factors. Oil prices averaged $17.93 per barrel during the second quarter of 1997, compared to an average of $19.99 per barrel in the 1996 period. For the six month period, oil prices averaged $19.30 per barrel in 1997 compared to $19.00 in 1996. The Company had cash and cash equivalents at June 30, 1997, of $213,797, compared to $218,355 at the end of the 1996 fiscal year. Management estimates that it owes $294,222 from the settlement of the Horne Lease dispute with Oryx to owners of other interests in the Horne Lease. PART II - OTHER INFORMATION Item 1. Legal Proceedings None. Item 2. Changes in Securities None. Item 3. Defaults Upon Senior Securities None. Item 4. Submission of Matters to a Vote of Security Holders None. 8 SIGNATURE --------- Pursuant to the requirements of the Securities and Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized. PETROL INDUSTRIES, INC. Dated: August 11, 1997 By: s/ Joseph M. Rodano -------------------------------------- Joseph M. Rodano President and Treasurer 9 EXHIBIT INDEX Exhibit No. Description ------- ----------- 27 Financial Data Schedule EX-27 2 ARTICLE 5 FIN. DATA SCHEDULE FOR 2ND QTR. 10QSB
5 1 6-MOS DEC-31-1996 JAN-01-1997 JUN-30-1997 213,797 0 82,372 0 39,385 344,631 4,653,041 4,590,342 464,463 798,188 0 159,720 0 0 (493,445) 464,463 393,725 401,744 342,863 342,863 168,973 0 14,373 (118,796) 0 (118,796) 0 0 0 (118,796) (.07) (.07)
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