-----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, TzXWwSzizrlv3BVSQX29y7H5cZ/vxrHtsWtp2TEjxadqeS4vB1JBkdzwT2QcugUb KGYjCTIq5vrre0RGaFsyIQ== 0000077864-02-000003.txt : 20020516 0000077864-02-000003.hdr.sgml : 20020516 20020515193749 ACCESSION NUMBER: 0000077864-02-000003 CONFORMED SUBMISSION TYPE: 10QSB PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 20020331 FILED AS OF DATE: 20020516 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: 02654126 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 pqsb302.txt PETROL INDUSTRIES, INC. 3-31-02 FORM 10QSB U.S. SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 2049 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, 2002 ____ 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 Number) 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 PART I - FINANCIAL INFORMATION Item 1. Financial Statements. PETROL INDUSTRIES, INC. & SUBSIDIARIES Consolidated Balance Sheets March 31, December 31, 2002 2001 --------- ------------ ASSETS ------ Current assets: Cash and cash equivalents $ 40,778 55,986 Accounts receivable: Trade 34,098 25,950 Other 9,498 9,498 ---------- ---------- 43,596 35,448 Inventory 26,607 21,228 Prepaid expenses 11,156 4,247 ---------- ---------- Total current assets 122,137 116,909 ---------- ---------- Property and equipment, at cost: Land 7,000 7,000 Developed and undeveloped oil and gas properties-successful efforts method 4,131,042 4,131,447 Trucks and other operating equipment 359,019 357,773 Furniture and fixtures 33,986 33,722 ---------- ---------- 4,531,047 4,522,942 Less accumulated depreciation, depletion and amortization 4,453,760 4,450,985 ---------- ---------- 77,287 78,957 Other assets 1,107 1,107 ---------- ---------- $ 200,531 196,973 ========== ========== LIABILITIES AND STOCKHOLDERS' DEFICIT ------------------------------------- Current liabilities: Accounts payable $ 47,984 39,143 Payable to interest owners 335,427 335,427 Payable to officer, net 900,627 886,898 Note payable 169,356 106,856 Accrued expenses 97,391 89,335 ---------- ---------- Total current liabilities 1,550,785 1,457,659 ---------- ---------- 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 2002 and 2001 159,720 159,720 Accumulated deficit (1,509,974) (1,420,406) ---------- ---------- Total stockholders' deficit (1,350,254) (1,260,686) ---------- ---------- $ 200,531 196,973 ========== ==========
PETROL INDUSTRIES, INC. Consolidated Statements of Operations Three Months Ended March 31, 2002 and 2001 (unaudited) 2002 2001 ---- ---- Revenues: Oil and gas sales $ 86,557 139,575 Other operating income 4,727 8,758 --------- --------- 91,284 148,333 --------- --------- Expenses: Lease operating expense 131,523 129,511 General and administrative 32,365 44,342 Depreciation, depletion and amortization 2,775 2,775 --------- --------- 166,663 176,628 --------- --------- Operating loss (75,379) (28,295) --------- --------- Other income and (expense): Gain on sale of assets --- 40 Interest income 5 267 Interest expense (14,194) (10,605) --------- --------- (14,189) (10,298) --------- --------- Net loss $ (89,568) (38,593) ========= ========= Net loss per share $ (0.06) (0.03) ========= ========= Average common shares outstanding 1,597,196 1,597,196 ========= =========
PETROL INDUSTRIES, INC. Consolidated Statements of Cash Flows Three Months Ended March 31, 2002 and 2001 (unaudited) 2002 2001 ---- ---- Operating activities: Net loss $ (89,568) (38,593) Adjustments to reconcile net loss to net cash provided (used) by operating activities: Depreciation, depletion and amortization 2,775 2,775 Gain on sale of assets --- 40 Losses on retirements of property and equipment included in lease operating expenses --- --- Changes in assets and liabilities: Decrease (increase) in accounts receivable (8,148) 8,294 Decrease (increase) in inventory (5,379) 16,373 Increase in prepaid expenses (6,909) (7,531) Increase in accounts payable and accrued expenses 16,897 283 Increase in payable to officer, net 13,729 13,552 Increase in payable to interest owners --- 2,461 ------- ------- Net cash (used) provided by operating activities (76,603) (2,426) Investing activities: Capital expenditures (1,105) (5,190) Proceeds from sale of property and equipment --- 40 ------- ------- Net cash used by investing activities (1,105) (5,150) Financing activities: Proceeds from gross borrowings 64,000 --- Repayments of gross borrowings (1,500) --- ------- ------- Net cash provided by financing activities 62,500 --- Increase (decrease) in cash and cash equivalents (15,208) (7,576) Cash and cash equivalents at beginning of period 55,986 50,725 ------- ------- Cash and cash equivalents at end of period $ 40,778 43,149 ======= =======
PETROL INDUSTRIES, INC. Consolidated Statements of Changes in Stockholders' Deficit Three Months Ended March 31, 2002 and 2001 (unaudited) 2002 2001 ---- ---- Stockholder's deficit at January 1 $ (1,260,686) (1,055,014) Net loss for the three-month period (89,568) (38,593) ---------- ---------- Stockholder's deficit at March 31 $ (1,350,254) (1,093,607) ========== ==========
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 2001 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 2002 or 2001. 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. 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 2002 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 4. The expected tax benefit resulting from operating losses for the first three months of 2002 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, 2002. Item 2. MANAGEMENT'S DISCUSSION AND ANALYISIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS. With a decrease of approximately 26.1% in production and a decrease of approximately 29.4% decrease in average oil prices, oil and gas sales revenues decreased significantly during the first quarter of 2002, as compared to the 2001 period. The Company sustained a net loss of $89,568, or ($.06) per share, compared to a net loss of $38,593, or ($.03) per share, in the 2001 period. The Company sustained an operating loss of $75,379 in the first quarter of 2002, compared to an operating loss of $28,295 in the prior year's first quarter. Oil prices averaged $18.25 per barrel during the first quarter of 2002, compared to an average of $25.80 per barrel in the 2001 period. 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. The Company had cash and cash equivalents at March 31, 2002, of $40,778, compared to $55,986 at the end of the 2001 fiscal year. Management estimates that it owes $335,427 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. 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: March 15, 2002 PETROL INDUSTRIES, INC. By: S/Joseph M. Rodano ------------------------ Joseph M. Rodano President and Treasurer -----END PRIVACY-ENHANCED MESSAGE-----