-----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, In6XLQiWt+pgQQfCgEMMc6ilR6vhz2AAs/QJET7s1eNs8yNVpoyeWpGDRlFXh141 H2GwMoIec4by6o32uVtfFw== 0000077864-02-000005.txt : 20021113 0000077864-02-000005.hdr.sgml : 20021113 20021113122116 ACCESSION NUMBER: 0000077864-02-000005 CONFORMED SUBMISSION TYPE: 10QSB PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 20020930 FILED AS OF DATE: 20021113 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: 02819034 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 ptlqsb9.txt PETROL INDUSTRIES, INC. FORM 10QSB 9-30-2002 1 U.S. SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 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: September 30, 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 No.) Incorporation or Organization) 202 N. THOMAS, SUITE 4, SHREVEPORT, LA 71107-6539 (Address of Principal Executive Office) (Zip Code) Registrant's Telephone Number, Including Area Code: (318) 424-6396 Indicate by check mark whether the registrant (1) has 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 [ ] Indicate the number of shares outstanding of each of the issuer's classes of common stock, as of the latest practical date: 1,597,196 2 PART I - FINANCIAL INFORMATION Item 1. Financial Statements. PETROL INDUSTRIES, INC. & SUBSIDIARIES Consolidated Balance Sheets September 30, December 31, 2002 2001 ------------- ------------ ASSETS ------ Current assets: Cash and cash equivalents $ 51,522 55,986 Accounts receivable: Trade 43,088 25,950 Other 9,498 9,498 ---------- ---------- 52,586 35,448 Inventory 26,111 21,228 Prepaid expenses 11,688 4,247 ---------- ---------- Total current assets 141,907 116,909 ---------- ---------- Property and equipment, at cost: Land 7,000 7,000 Developed and undeveloped oil and gas properties-successful efforts method 3,730,739 4,131,447 Trucks and other operating equipment 344,003 357,773 Furniture and fixtures 33,986 33,722 ---------- ---------- 4,115,728 4,529,942 Less accumulated depreciation, depletion and amortization 4,021,837 4,450,985 ---------- ---------- 93,891 78,957 ---------- ---------- Other assets 1,107 1,107 ---------- ---------- $ 236,905 196,973 ========== ========== LIABILITIES AND STOCKHOLDERS' DEFICIT ------------------------------------- Current liabilities: Accounts payable $ 54,803 39,143 Payable to interest owners 340,019 335,427 Payable to officer, net 928,590 886,898 Notes payable 224,692 106,856 Accrued expenses 98,675 89,335 ---------- ---------- Total current liabilities 1,646,779 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 2001 and 2000 159,720 159,720 Accumulated deficit (1,569,594) (1,420,406) ---------- ---------- Total stockholders' deficit (1,409,874) (1,260,686) ---------- ---------- $ 236,905 196,973 ========== ==========
3 PETROL INDUSTRIES, INC. Consolidated Statements of Operations (unaudited) Quarter Ended Year Ended September 30, September 30, -------------------- --------------------- 2002 2001 2002 2001 --------- --------- ---------- ---------- Revenues: Oil and gas sales $ 114,097 123,461 308,305 411,021 Other operating income 20,843 7,070 29,802 23,550 --------- --------- --------- --------- 134,940 130,531 338,107 434,571 --------- --------- --------- --------- Expenses: Lease operating expense 124,342 140,692 366,969 400,293 General and administrative 27,246 39,127 104,791 130,513 Depreciation, depletion and amortization 2,775 2,775 8,325 8,325 --------- --------- --------- --------- 154,363 182,594 480,085 539,131 --------- --------- --------- --------- Operating loss $ (19,423) (52,063) (141,978) (104,560) --------- --------- --------- --------- Other income and (expense): Gain on sale of assets --- 1,700 38,057 5,740 Interest income --- 26 54 461 Interest expense (15,653) (10,959) (45,321) (31,892) --------- --------- --------- --------- (15,653) (9,233) (7,210) (25,691) --------- --------- --------- --------- Net loss $ (35,076) (61,296) (149,188) (130,251) ========= ========= ========= ========= Net loss per share $ (0.02) (0.04) (0.09) (.09) ========= ========= ========= ========= 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 Nine months ended September 30, 2002 and 2001 (unaudited) 2002 2001 ---- ---- Operating activities: Net loss $ (149,188) (130,251) Adjustments to reconcile net loss to net cash provided (used) by operating activities: Depreciation, depletion and amortization 8,325 8,325 Gain on sale of assets (38,057) (5,740) Losses on retirements of property and equipment included in lease operating expenses --- --- Changes in assets and liabilities: Decrease (increase) in accounts receivable (17,138) 17,588 Decrease (increase) in inventory (4,883) 8,505 Increase in prepaid expenses (7,441) (10,978) Increase in accounts payable and accrued expenses 25,000 21,029 Increase in payable to officer, net 41,692 40,712 Increase in payable to interest owners 4,592 6,330 -------- -------- Net cash (used) provided by operating activities (137,098) (44,480) Investing activities: Capital expenditures (25,520) (8,440) Proceeds from sale of property and equipment 40,318 5,740 -------- -------- Net cash used by investing activities 14,798 (2,700) Financing activities: Proceeds from gross borrowings 138,900 18,500 Payments on gross borrowings (21,064) --- -------- -------- Net cash provided (used) by financing activities 117,836 18,500 Increase (decrease) in cash and cash equivalents (4,464) (28,680) Cash and cash equivalents at beginning of period 55,986 50,725 -------- -------- Cash and cash equivalents at end of period $ 51,522 22,045 ======== ========
5 PETROL INDUSTRIES, INC. Consolidated Statements of Changes in Stockholders' Deficit Nine months ended September 30, 2002 and 2001 (unaudited) 2002 2001 ---- ---- Stockholder's deficit at January 1 $ (1,260,686) (1,055,014) Net loss for the nine-month period (149,188) (130,251) ---------- ---------- Stockholder's deficit at September 30 $ (1,409,874) (1,185,265) ========== ==========
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 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 nine months ended September 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 ------------------ 2001 2002 ---- ---- 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 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 September 30, 2002. 7 Item 2. MANAGEMENT'S DISCUSSION AND ANALYISIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS. Oil and gas sales revenues decreased approximately 7.6% in the third quarter of 2002, compared to the third quarter of 2001, the result being an approximate 4.2% decrease in production. The Company suffered a net loss for the period of $35,076, or ($.02) per share, compared to a net loss of $61,296 in the 2001 period, or ($.04) per share. The Company sustained an operating loss of $19,423 in the third quarter of 2002, compared to an operating loss of $52,063 in the prior year's third quarter. For the nine-month period ending September 30, 2002, the Company's net loss increased approximately 14.5% to $149,188 from the $130,251 net loss in the prior year's period caused principally by a reduction in the Company's overall production of approximately 18.6%. 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 $25.16 per barrel during the third quarter of 2002, compared to an average of $23.48 per barrel in the 2001 period. For the nine-month period, oil prices averaged $21.95 per barrel in 2002 compared to $24.46 in 2001. The Company had cash and cash equivalents at September 30, 2002, of $51,522, compared to $55,986 at the end of the 2001 fiscal year. Management estimates that it owes $340,019 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. Date: November 13, 2002 PETROL INDUSTRIES, INC. s/Joseph M. Rodano By:_____________________________ Joseph M. Rodano President and Treasurer -----END PRIVACY-ENHANCED MESSAGE-----