-----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, HJTKHYewUKR1k3DCNFwyw8oRJhbrdBDh+3dMf6zbp8MpQb2YupcoPz0eIJ3XoBFQ 4ZM1EKwbh4LyBlYcUDEWYQ== 0000077864-98-000006.txt : 19981118 0000077864-98-000006.hdr.sgml : 19981118 ACCESSION NUMBER: 0000077864-98-000006 CONFORMED SUBMISSION TYPE: 10QSB PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19980930 FILED AS OF DATE: 19981113 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: SEC FILE NUMBER: 000-03912 FILM NUMBER: 98749492 BUSINESS ADDRESS: STREET 1: P O BOX 7941 CITY: SHREVEPORT STATE: LA ZIP: 71137-7941 BUSINESS PHONE: 3814246396 MAIL ADDRESS: STREET 1: P.O. BOX 7941 CITY: SHREVEPORT STATE: LA ZIP: 71137-7941 10QSB 1 PETROL INDUSTRIES, INC. FORM 10QSB, 09/30/98 1 U.S. SECURITIES AND EXCHANGE COMMISSION Washington, DC 20549 FORM 10-QSB OMB Approval OMB Number: xxxx-xxxx Expires: Approval Pending Estimated Average Burden Hours Per Response: 1.0 (Mark One) [X] Quarterly report under Section 13 or 15(d) of the Securities Exchange Act of 1934 For the quarterly period ended: September 30, 1998 [ ] 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 PART I - FINANCIAL INFORMATION ITEM 1. FINANCIAL STATEMENTS PETROL INDUSTRIES, INC. & SUBSIDIARIES Consolidated Balance Sheets September 30, December 31, ASSETS 1998 1997 ------ ------------- ------------ (unaudited) Current assets: Cash and cash equivalents $ 55,048 174,809 Accounts receivable: Trade 31,288 56,499 Other 9,497 9,817 --------- --------- 40,785 66,316 Inventory 24,753 43,643 Prepaid expenses 4,867 2,468 --------- --------- Total current assets 125,453 287,236 --------- --------- Property and equipment, at cost: Land 7,000 7,000 Developed and undeveloped oil and gas properties- successful efforts method 4,187,172 4,180,055 Trucks and other operating equipment 360,074 349,911 Furniture and fixtures 44,015 44,015 --------- --------- 4,598,261 4,580,981 Less accumulated depreciation, depletion and amortization 4,524,109 4,521,200 --------- --------- 74,152 59,781 --------- --------- Cash surrender value of life insurance, net 65,071 56,746 Other assets 1,107 1,107 --------- --------- $ 265,783 404,870 ========= ========= LIABILITIES AND STOCKHOLDERS' DEFICIT ------------------------------------- Current liabilities: Accounts payable $ 31,624 47,611 Payable to interest owners 311,445 303,692 Payable to officer, net 524,132 391,701 Accrued expenses 149,229 112,991 --------- --------- Total current liabilities 1,016,430 855,995 --------- --------- 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 shares in 1998 and 1997 159,720 159,720 Accumulated deficit (910,367) (610,845) --------- --------- Total stockholders' deficit (750,647) (451,125) --------- --------- $ 265,783 404,870 ========= =========
3 PETROL INDUSTRIES, INC. & SUBSIDIARIES Consolidated Statements of Operations (unaudited) Quarter Ended Nine Months Ended September 30, September 30, ------------- ------------- 1998 1997 1998 1997 ---- ---- ---- ---- Revenues: Oil and gas sales $ 93,012 204,830 344,434 598,554 Other operating income 7,231 3,681 21,725 11,702 --------- --------- --------- --------- 100,243 208,511 366,159 610,256 --------- --------- --------- --------- Expenses: Lease operating expense 120,514 162,720 401,424 505,585 General and administrative 69,542 81,770 234,009 248,313 Depreciation, depletion and amortization 2,700 915 6,900 3,345 --------- --------- --------- --------- 192,756 245,405 642,333 757,243 --------- --------- --------- --------- Operating loss (92,513) (36,894) (276,174) (146,987) --------- --------- --------- --------- Other income and (expense): Gain/(loss) on sale of assets --- 7,500 (408) 7,500 Interest income 1,536 2,980 5,579 8,649 Interest expense (10,118) (8,070) (28,519) (22,442) --------- --------- --------- --------- (8,582) 2,410 (23,348) (6,293) --------- --------- --------- --------- Net loss $ (101,095) (34,484) (299,522) (153,280) ========= ========= ========= ========= Net loss per share $ (.06) (.02) (.19) (.10) ========= ========= ========= ========= Average common shares outstanding 1,597,196 1,597,196 1,597,196 1,597,196 ========= ========= ========= =========
4 PETROL INDUSTRIES, INC. & SUBSIDIARIES Consolidated Statements of Cash Flows Nine months ended September 30, 1998 and 1997 (unaudited) 1998 1997 ---- ---- Operating activities: Net loss $ (299,522) (153,280) Adjustments to reconcile net loss to net cash (used) provided by operating activities: Depreciation, depletion and amortization 6,900 3,345 Loss/(gain) on sale of assets 408 (7,500) Losses on retirements of property and equipment included in lease operating expenses 1,511 2,061 Changes in assets and liabilities: Cash surrender value of life insurance (8,325) (8,325) Accounts receivable 25,531 8,926 Inventory 18,890 8,583 Prepaid expenses (2,399) 1,132 Accounts payable and accrued expenses 20,251 25,870 Payable to officer, net 132,431 114,471 Payable to interest owners 7,753 23,145 --------- --------- Net cash provided by operating activities (96,571) 18,428 Investing activities: Capital expenditures (23,190) (14,112) Proceeds from sale of property and equipment --- 7,500 --------- --------- Net cash (used) provided by investing activities (23,190) (6,612) (Decrease)/increase in cash and cash equivalents (119,761) 11,816 Cash and cash equivalents at beginning of period 174,809 218,355 --------- --------- Cash and cash equivalents at end of period $ 55,048 230,171 ========= =========
5 PETROL INDUSTRIES, INC. & SUBSIDIARIES Consolidated Statements of Changes in Stockholders' Deficit Nine months ended September 30, 1998 and 1997 (unaudited) 1998 1997 ---- ---- Stockholders' deficit at January 1 $ (451,125) (214,929) Net loss for the nine-month period (299,522) (153,280) --------- --------- Stockholders' deficit at September 30 $ (750,647) (368,209) ========= =========
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 statement 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 1997 Annual Report on Form 10-KSB. 2. The consolidated financial statements included herein are consol idated with the accounts of Petrolind Drilling Funds, Inc. and Realco, Inc., both wholly owned subsidiaries of the Registrant, neither of which was active during 1998 or 1997. 3. Net income per share of common stock is computed on the weighted average number of shares outstanding during the nine months ended September 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 1998 1997 ---- ---- January 31 1,597,196 1,597,196 February 28 1,597,196 1,597,196 March 31 1,597,196 1,597,196 April 30 1,597,196 1,597,196 May 31 1,597,196 1,597,196 June 30 1,597,196 1,597,196 July 31 1,597,196 1,597,196 August 31 1,597,196 1,597,196 September 30 1,597,196 1,597,196 4. The expected tax benefit resulting from operating losses for the first nine months of 1998 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 September 30, 1998. 7 ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS Oil and gas sales revenues decreased approximately 54.6% in the third quarter of 1998, compared to the third quarter of 1997, the result being a decrease in average oil prices of approximately $6.15 per barrel and an approximate 31.3% decline in production. The Company's net loss for the period decreased to $101,095, or ($.06) per share, compared to $34,4484 or ($.02) per share in the 1997 period. The Company sustained an operating loss of $92,513 in the third quarter of 1998, compared to an operating loss of $36,894 in the third quarter of 1997. For the nine month period ended September 30, 1998, the Company's net loss increased approximately 95.4% to $299,522 from the $153,280 net loss in the prior year's period. Operating losses in the 1998 period also increased approximately 87.9% compared to the 1997 period. Oil prices averaged $11.38 per barrel during the third quarter of 1998, compared to an average of $17.53 per barrel in the 1997 period. For the nine month period, oil prices averaged $12.51 in 1998 compared to $18.67 in 1997. The Company had cash and cash equivalents at September 30, 1998, of $55,048 compared to $174,809 at the end of the 1997 fiscal year. Management estimates that it owes $311,445 from the settlement of the Horne Lease dispute with Oryx to owners of other interests in the Horne Lease. The Company is working to resolve the potential impact of the year 2000 on the ability of the Company's computerized information systems to accurately process information that may be date-sensitive. Any of the Company's programs that recognize a date using "00" as the year 1900 rather than the year 2000 could result in errors or system failures. The Company utilizes a limited number of computer programs across its entire operation. The Company has not completed its assessment, but currently believes that costs of addressing this issue will not have a material adverse impact on the Company's financial position, as its computer programs will be updated by third party vendors. However, if the Company and third parties upon which it relies are unable to address this issue in a timely manner, it could result in a material financial risk to the Company. In order to assure that this does not occur, the Company plans to devote all resources required to resolve any significant year 2000 issues in a timely manner. 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. Dated: November 13, 1998 PETROL INDUSTRIES, INC. By: 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 3RD QTR. 10QSB
5 1 9-MOS DEC-31-1997 JAN-01-1998 SEP-30-1998 55,048 0 40,785 0 24,753 125,453 4,598,261 4,524,109 265,783 1,016,430 0 159,720 0 0 (910,367) 265,783 366,159 371,738 401,424 401,424 240,909 0 28,519 (299,522) 0 (299,522) 0 0 0 (299,522) (.19) (.19)
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