-----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, Jc+AlTP6hNOx2G11OU8P0zymLX/OddE0RHJM9bvycXULCmK5QnQJcFLa6PO6BB3a BNTB5fZYSzuxD4otYYEbgw== 0000077864-99-000002.txt : 19990517 0000077864-99-000002.hdr.sgml : 19990517 ACCESSION NUMBER: 0000077864-99-000002 CONFORMED SUBMISSION TYPE: 10QSB PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19990331 FILED AS OF DATE: 19990514 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: 99623450 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, 03/31/99 1 U.S. SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-QSB OMB Approval OMB Number: xxxx-xxxx Expires: Approval Pending Estimated Average Burden Hours Per Response: 1.0 (Mark One) [xx] Quarterly report under Section 13 or 15(d) of the Securities Exchange Act of 1934 For the quarterly period ended: March 31, 1999 [ ] 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 (IRS Employer Identification No.) Incorporation or 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 March 31, December 31, ASSETS 1999 1998 ------ --------- ------------ (unaudited) Current assets: Cash and cash equivalents $ 18,008 56,729 Accounts receivable: Trade 39,517 28,688 Other 9,497 9,497 ---------- --------- 49,014 38,185 Inventory 20,774 16,685 Prepaid expenses 6,949 3,804 ---------- --------- Total current assets 94,745 115,403 ---------- --------- Property and equipment, at cost: Land 7,000 7,000 Developed and undeveloped oil and gas properties- successful efforts method 4,178,709 4,179,433 Trucks and other operating equipment 367,984 367,984 Furniture and fixtures 44,015 44,015 ---------- --------- 4,597,708 4,598,432 Less accumulated depreciation, depletion and amortization 4,532,445 4,530,195 ---------- --------- 65,263 68,237 ---------- --------- Cash surrender value of life insurance, net --- --- Other assets 1,107 1,107 ---------- --------- $ 161,115 184,747 ========== ========= LIABILITIES AND STCOKHOLDERS' DEFICIT ------------------------------------- Current liabilities: Accounts payable $ 58,163 37,242 Payable to interest owners 314,578 313,168 Payable to officer, net 601,686 562,682 Accrued expenses 108,502 106,770 ---------- --------- Total current liabilities 1,082,929 1,019,862 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 (1,081,534) (994,835) ---------- --------- Total stockholders' deficit (921,814) (835,115) ---------- --------- $ 116,115 184,747 ========== =========
3 PETROL INDUSTRIES, INC. & SUBSIDIARIES Consolidated Statements of Operations Three months ended March 31, 1999 and 1998 (unaudited) 1999 1998 ---- ---- Revenues: Oil and gas sales $ 78,471 137,024 Other operating income 3,670 6,630 --------- --------- 82,141 143,654 --------- --------- Expenses: Lease operating expense 88,681 148,616 General and administrative 70,426 86,787 Depreciation, depletion and amortization 2,250 1,800 --------- --------- 161,357 237,203 --------- --------- Operating loss (79,216) (93,549) Other income and (expense): Loss-sale of assets --- (408) Interest income 270 2,194 Interest expense (7,753) (8,898) --------- --------- (7,483) (7,112) --------- --------- Net loss $ (86,699) (100,661) ========= ========= Net loss per share (.05) (.06) ========= ========= Average common shares outstanding 1,597,196 1,597,196 ========= =========
4 PETROL INDUSTRIES, INC. & SUBSIDIARIES Consolidated Statements of Cash Flows Three months ended March 31, 1999 and 1998 (unaudited) 1999 1998 ---- ---- Operating activities: Net loss $ (86,699) (100,661) Adjustments to reconcile net loss to net cash used by operating activities: Depreciation, depletion and amortization 2,250 1,800 Loss on sale of assets --- 408 Losses on retirements of property and equipment included in lease operating expenses 724 (616) Changes in assets and liabilities: Cash surrender value of life insurance --- (2,775) Accounts receivable (10,829) 2,221 Inventory (4,089) 7,194 Prepaid expenses (3,145) (5,489) Accounts payable and accrued expenses 22,653 7,612 Payable to officer, net 39,004 48,379 Payable to interest owners 1,410 3,152 --------- --------- Net used by operating activities (38,721) (38,775) Investing activities: Capital expenditures --- (2,849) --------- --------- Net cash used by investing activities --- (2,849) Decrease in cash and cash equivalents (38,721) (41,624) Cash and cash equivalents at beginning of period 56,729 174,809 --------- --------- Cash and cash equivalents at end of period $ 18,008 133,185 ========= =========
5 PETROL INDUSTRIES, INC. & SUBSIDIARIES Consolidated Statements of Changes in Stockholders' Deficit Three months ended March 31, 1999 and 1998 (unaudited) 1999 1998 ---- ---- Stockholders' deficit at January 1 $ (835,115) (451,125) Net loss for the three-month period (86,699) (100,661) --------- --------- Stockholders' deficit at March 31 $ (921,814) (551,786) ========= =========
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 1998 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 1999 or 1998. 3. Net income per share of common stock is computed on the weighted average number of shares outstanding during the three months ended March 31. 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 1999 1998 ---- ---- January 31 1,597,196 1,597,196 February 28 1,597,196 1,597,196 March 31 1,597,196 1,597,196 4. The expected tax benefit resulting from operating losses for the first three months of 1999 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 March 31, 1999. 7 Item 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS With a decrease of approximately 34.4% in production, oil and gas sales revenues were significantly lower during the first quarter of 1999, caused principally by adverse weather conditions as compared to the 1998 period. The Company's net loss decreased to $86,699, or ($.06) per share, compared to a net loss of $100,661, or ($.06) per share in the 1998 period. The Company sustained an operating loss of $79,216 in the first quarter of 1999, compared to an operating loss of $93,549 in the first quarter of 1998. Oil prices averaged $10.51 per barrel during the first quarter of 1999, compared to an average of $13.66 per barrel in the 1998 period. The Company had cash and cash equivalents at March 31, 1999, of $18,008, compared to $56,729 at the end of the 1998 fiscal year. Management estimates that it owes $314,578 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: May 14, 1999 PETROL INDUSTRIES, INC. Joseph M. Rodano By:_______________________________ 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 1ST QTR. 10QSB
5 1 3-MOS DEC-31-1998 JAN-01-1999 MAR-31-1999 18,008 0 49,014 0 20,774 94,745 4,597,708 4,532,445 161,115 1,082,929 0 159,720 0 0 (1,081,534) 116,115 78,471 82,141 88,681 88,681 72,676 0 7,753 (86,699) 0 (86,699) 0 0 0 (86,699) (.05) (.05)
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