-----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, L7PwIVPWj4RDXreq8W8DiWHzLKmE0D1AfYcyq5ukY2cyjDpaW1VcJPdrUmjaH7FF Ij/9VPzx9BFhY3HxykAhJw== 0000077864-01-500012.txt : 20010816 0000077864-01-500012.hdr.sgml : 20010816 ACCESSION NUMBER: 0000077864-01-500012 CONFORMED SUBMISSION TYPE: 10QSB PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 20010630 FILED AS OF DATE: 20010815 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: 1715163 BUSINESS ADDRESS: STREET 1: 2 N THOMAS SUITE 4 CITY: SHREVEPORT STATE: LA ZIP: 71107-6596 BUSINESS PHONE: 3814246396 MAIL ADDRESS: STREET 1: P.O. BOX 7941 CITY: SHREVEPORT STATE: LA ZIP: 71137-7941 10QSB 1 ptldqsb.txt PETROL INDUSTRIES, INC. 10-QSB 6-30-2001 1 U.S. SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 2049 FORM 10-QSB (Mark One) [xx] Quarterly report under Section 13 or 15(d) of the Securities Exchange Act of 1934 For the quarterly period ended: June 30, 2001 [ ] 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 Incorporation of Organization) Number) 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 June 30, December 31, 2001 2000 -------- ------------ ASSETS ------ Current assets: Cash and cash equivalents $ 22,821 50,725 Accounts receivable: Trade 49,372 52,401 Other 9,498 9,498 ---------- ---------- 58,870 61,899 Inventory 28,856 41,153 Prepaid expenses 12,948 2,890 ---------- ---------- Total current assets 123,495 156,667 ---------- ---------- Property and equipment, at cost: Land 7,000 7,000 Developed and undeveloped oil and gas properties-successful efforts method 4,129,943 4,138,480 Trucks and other operating equipment 357,986 366,560 Furniture and fixtures 33,347 33,133 ---------- ---------- 4,528,276 4,545,173 Less accumulated depreciation, depletion and amortization 4,446,341 4,463,596 ---------- ---------- 81,935 81,577 ---------- ---------- Other assets 1,107 1,107 ---------- ---------- $ 206,537 239,351 ========== ========== LIABILITIES AND STOCKHOLDERS' DEFICIT ------------------------------------- Current liabilities: Accounts payable $ 38,315 39,045 Payable to interest owners 333,213 328,473 Payable to officer, net 859,078 832,252 Note payable 2,000 2,000 Accrued expenses 97,900 92,595 ---------- ---------- Total current liabilities 1,330,506 1,294,365 ---------- ---------- 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 2001 and 2000 159,720 159,720 Accumulated deficit (1,283,689) (1,214,734) ---------- ---------- Total stockholders' deficit (1,123,969) (1,055,014) ---------- ---------- $ 206,537 239,351 ========== ==========
3 PETROL INDUSTRIES, INC. Consolidated Statements of Operations (unaudited) Quarter Ended Year Ended June 30, June 30, -------------------- ------------------- 2001 2000 2001 2000 ---- ---- ---- ---- Revenues: Oil and gas sales $ 147,986 167,609 287,560 372,573 Other operating income 7,722 7,263 16,480 17,007 --------- --------- --------- --------- 155,708 174,872 304,040 389,580 --------- --------- --------- --------- Expenses: Lease operating expense 130,089 121,093 259,601 245,572 General and administrative 47,046 76,753 91,386 145,245 Depreciation, depletion and amortization 2,775 1,740 5,550 3,406 --------- --------- --------- --------- 179,910 199,586 356,537 394,223 --------- --------- --------- --------- Operating loss $ (24,202) (24,714) (52,497) (4,643) --------- --------- --------- --------- Other income and (expense): Gain on sale of assets 4,000 1,000 4,040 1,000 Interest income 168 463 435 650 Interest expense (10,327) (11,697) (20,933) (22,779) --------- --------- --------- --------- (6,159) (10,234) (16,458) (21,129) --------- --------- --------- --------- Net loss $ (30,361) (34,948) (68,955) (25,772) ========= ========= ========= ========= Net loss per share $ (0.02) (0.03) (0.04) (.02) ========= ========= ========= ========= Average common shares outstanding 1,597,196 1,597,196 1,597,196 1,597,196 ========= ========= ========= =========
4 PETROL INDUSTRIES, INC. Consolidated Statements of Cash Flows Six months ended June 30, 2001 and 2000 (unaudited) 2001 2000 ---- ---- Operating activities: Net loss $ (68,955) (25,772) Adjustments to reconcile net loss to net cash provided (used) by operating activities: Depreciation, depletion and amortization 5,550 3,406 Gain on sale of assets (4,040) (1,000) Losses on retirements of property and equipment included in lease operating expenses --- 493 Changes in assets and liabilities: Decrease (increase) in accounts receivable 3,029 (10,319) Decrease (increase) in inventory 12,297 (1,037) Increase in prepaid expenses (10,058) (6,761) Increase in accounts payable and accrued expenses 4,575 6,471 Increase in payable to officer, net 26,826 82,631 Increase in payable to interest owners 4,740 3,655 -------- -------- Net cash (used) provided by operating activities (26,036) 51,767 Investing activities: Capital expenditures (5,908) (13,700) Proceeds from sale of property and equipment 4,040 1,000 -------- -------- Net cash used by investing activities (1,868) (12,700) Increase (decrease) in cash and cash equivalents (27,904) 39,067 Cash and cash equivalents at beginning of period 50,725 34,138 -------- -------- Cash and cash equivalents at end of period $ 22,821 73,205 ======== ========
5 PETROL INDUSTRIES, INC. Consolidated Statements of Changes in Stockholders' Deficit Six months ended June 30, 2001 and 2000 (unaudited) 2001 2000 ---- ---- Stockholder's deficit at January 1 $ (1,055,014) (1,020,246) Net loss for the six month period (68,955) (25,772) ---------- ---------- Stockholder's deficit at June 30 $ (1,123,969) (1,046,018) ========== ==========
6 PETROL INDUSTRIES, INC. 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 2000 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 2001 or 2000. 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. Totaling the number of shares outstanding at the end of each month and dividing that total by the number of months determined the weighted average number of shares outstanding. Total Number of Shares Outstanding 2000 2001 ---- ---- 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 4. The expected tax benefit resulting from operating losses for the first six months of 2001 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, 2001. 7 Item 2. MANAGEMENT'S DISCUSSION AND ANALYISIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS. Oil and gas sales revenues decreased approximately 11.7% in the second quarter of 2001, compared to the second quarter of 2000, the result being an approximate 10.7% decrease in production. The Company's net loss for the period decreased to $30,361, or ($.02) pr share compared to $34,948 in the 2000 period, or ($.03) per share. The Company sustained an operating loss of $24,202 in the second quarter of 2001, compared to an operating loss of $24,714 in the prior year's second quarter. For the six month period ending June 30, 2001, the Company's net loss increased approximately 167.6% to $68,955 from the $25,772 net loss in the prior year's period caused principally by serious inclement weather conditions that prevailed during the first quarter. Management has attempted to reduce operating costs over the past several years in an effort to restore profitability. Profitability is contingent essentially upon two factors: increasing production from the Company's mineral leases and increases in world oil prices. Management continues to explore possible approaches to increasing oil production, including technological developments or pursuing drilling operations. Oil prices averaged $23.94 per barrel during the second quarter of 2001, compared to an average of $25.45 per barrel in the 2000 period. For the six-month period, oil prices averaged $24.87 per barrel in 2001 compared to $25.60 in 2000. The Company had cash and cash equivalents at June 30, 2001, of $22,821, compared to $50,725 at the end of the 2000 fiscal year. Management estimates that it owes $333,213 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 SEUCURITIES. 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. Date: August 14, 2001 PETROL INDUSTRIES, INC. Joseph M. Rodano By:_________________________________ Joseph M. Rodano President and Treasurer -----END PRIVACY-ENHANCED MESSAGE-----