-----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, TW4LJYXKMcreLyGk5WHBHLU1CqbMInQazrnvCInB/0Dr7SlHPqiNq5YQVXQ578lG zBYqDJfDs+Ik1tztm7v3Uw== 0000077864-03-000009.txt : 20031113 0000077864-03-000009.hdr.sgml : 20031113 20031113171223 ACCESSION NUMBER: 0000077864-03-000009 CONFORMED SUBMISSION TYPE: 10QSB PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 20030930 FILED AS OF DATE: 20031113 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: 03999092 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 ptlqsb903.txt PETROL INDUSTRIES, INC. FORM 10QSB FOR 9-30-2003 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: September 30, 2003 ( ) 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 September 30, December 31, 2003 2002 ------------- ------------ ASSETS ------ Current assets: Cash and cash equivalents $ 58,131 47,405 Accounts receivable: Trade 52,529 33,246 Other 9,498 9,498 ---------- ---------- 62,027 42,744 Inventory 26,242 31,427 Prepaid expenses 11,434 6,463 ---------- ---------- Total current assets 157,834 128,039 ---------- ---------- Property and equipment, at cost: Land 7,000 7,000 Developed and undeveloped oil and gas properties-successful efforts method 3,229,839 3,711,155 Trucks and other operating equipment 361,124 365,104 Furniture and fixtures 35,681 35,681 ---------- ---------- 3,633,644 4,118,940 Less accumulated depreciation, depletion and amortization 3,529,409 4,022,765 ---------- ---------- 104,235 96,715 ---------- ---------- Other assets 1,107 1,107 ---------- ---------- $ 263,176 225,321 ========== ========== LIABILITIES AND STOCKHOLDERS' DEFICIT ------------------------------------- Current liabilities: Accounts payable $ 48,588 89,068 Payable to interest owners 306,499 341,789 Payable to officer, net 985,424 942,705 Notes payable 271,256 258,193 Accrued expenses 106,323 92,650 ---------- ---------- Total current liabilities 1,718,090 1,724,405 ---------- ---------- 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 2003 and 2002 159,720 159,720 Accumulated deficit (1,614,634) (1,658,804) ---------- ---------- Total stockholders' deficit (1,454,914) (1,499,084) ---------- ---------- $ 263,176 225,321 ========== ==========
PETROL INDUSTRIES, INC. Consolidated Statements of Operations (unaudited) Quarter Ended Year Ended September 30, September 30, ------------------------ ---------------------- 2003 2002 2003 2002 ------------------------ ---------------------- Revenues: Oil and gas sales $ 185,332 114,097 558,574 308,305 Other operating income 3,195 20,843 10,829 29,802 --------- --------- --------- --------- 188,527 134,940 569,403 338,107 --------- --------- --------- --------- Expenses: Lease operating expense 176,852 124,342 473,350 366,969 General and administrative 47,581 27,246 124,756 104,791 Depreciation, depletion and amortization 3,330 2,775 9,990 8,325 --------- --------- --------- --------- 227,763 154,363 608,096 480,085 --------- --------- --------- --------- Operating loss $ (39,236) (19,423) (38,693) (141,978) --------- --------- --------- --------- Other income and (expense): Gain on sale of assets 72,000 --- 133,500 38,057 Interest income 2 --- 65 54 Interest expense (17,016) (15,653) (50,702) (45,321) --------- --------- --------- --------- 54,986 (15,653) 82,863 (7,210) --------- --------- --------- --------- Net income/(loss) $ 15,750 (35,076) 44,170 (149,188) ========= ========= ========= ========= Net loss per share $ 0.01 (0.02) 0.03 (.09) ========= ========= ========= ========= Average common shares outstanding 1,597,196 1,597,196 1,597,196 1,597,196 ========= ========= ========= =========
PETROL INDUSTRIES, INC. Consolidated Statements of Cash Flows Nine months ended September 30, 2003 and 2002 (unaudited) 2003 2002 ---- ---- Operating activities: Net income/(loss) $ 44,170 (149,188) Adjustments to reconcile net loss to net cash provided (used) by operating activities: Depreciation, depletion and amortization 9,990 8,325 Gain on sale of assets (133,500) (38,057) Losses on retirements of property and equipment included in lease operating expenses --- --- Changes in assets and liabilities: Increase in accounts receivable (19,283) (17,138) Decrease (increase) in inventory 5,185 (4,883) Increase in prepaid expenses (4,971) (7,441) Increase (decrease) in accounts payable and accrued expenses (26,807) 25,000 Increase in payable to officer, net 42,719 41,692 Increase (decrease) in payable to interest owners (35,290) 4,592 -------- -------- Net cash (used) provided by operating activities (137,098) (137,098) Investing activities: Capital expenditures (18,050) (25,520) Proceeds from sale of property and equipment 133,500 40,318 -------- -------- Net cash provided by investing activities 115,450 14,798 Financing activities: Proceeds from gross borrowings 25,000 138,900 Payments on gross borrowings (11,937) (21,064) -------- -------- Net cash provided by financing activities 13,063 117,836 Increase (decrease) in cash and cash equivalents 10,726 (4,464) Cash and cash equivalents at beginning of period 47,405 55,986 -------- -------- Cash and cash equivalents at end of period $ 58,131 51,522 ======== ========
PETROL INDUSTRIES, INC. Consolidated Statements of Changes in Stockholders' Deficit Nine months ended September 30, 2003 and 2002 (unaudited) 2003 2002 ---- ---- Stockholder's deficit at January 1 $ (1,499,084) (1,260,686) Net income/(loss) for the nine-month period 44,170 (149,188) ---------- ---------- Stockholder's deficit at September 30 $ (1,454,914) (1,409,874) ========== ==========
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 2002 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 2003 or 2002. 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 2003 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 operations for the first nine months of 2003 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, 2003. Item 2. MANAGEMENT'S DISCUSSION AND ANALYISIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS. Oil and gas sales revenues increased approximately 62.4% in the third quarter of 2003, compared to the third quarter of 2002, the result being an approximate 30.5% increase in production and an increase of approximately 12.8% in average oil prices. The Company realized a net income for the period of $15,750, or $.01 per share, compared to a net loss of $35,076 in the 2002 period, or $(0.02) per share. The Company sustained an operating loss of $39,236 in the third quarter of 2003, compared to an operating loss of $19,423 in the prior year's third quarter. For the nine-month period ending September 30, 2003, the Company realized a net income of $44,170 as compared to a net loss of $149,188 in the prior year's 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. Oil prices averaged $28.38 per barrel during the third quarter of 2003, compared to an average of $25.16 per barrel in the 2002 period. For the nine-month period, oil prices averaged $26.80 per barrel in 2003 compared to $21.95 in 2002. The Company had cash and cash equivalents at September 30, 2003, of $58,131, compared to $47,405 at the end of the 2002 fiscal year. Management estimates that it owes $306,499 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: November 13, 2003 PETROL INDUSTRIES, INC. By: s/Joseph M. Rodano ------------------------------ Joseph M. Rodano President and Treasurer CERTIFICATION ------------- I, Joseph M. Rodano, certify that: 1. I have reviewed this quarterly report on Form 10-QSB of Petrol Industries, Inc.; 2. Based on my knowledge, this quarterly report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this quarterly report; 3. Based on my knowledge, the financial statements, and other financial information included in this quarterly report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for the periods presented in this quarterly report; 4. The registrant's other certifying officers and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-14 and 15d-14) for the registrant and have: a) designed such disclosure controls and procedures to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this quarterly report is being prepared; b) evaluated the effectiveness of the registrant's disclosure controls and procedures as of a date within 90 days prior to the filing date of this quarterly report (the "Evaluation Date"); and c) presented in this quarterly report our conclusions about the effectiveness of the disclosure controls and procedures based on our Evaluation Date; 5. The registrant's other certifying officers and I have disclosed, based on our most recent evaluation, to the registrant's auditors and the audit committee of registrant's board of directors (or persons performing the equivalent functions): a) all significant deficiencies in the design or operation of internal controls which could adversely affect the registrant's ability to record, process, summarize and report financial data and have identified for the registrant's auditors any material weaknesses in internal controls; and b) any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal controls; and 6. The registrant's other certifying officers and I have indicated in this quarterly report whether or not there were significant changes in internal controls or in other factors that could significantly affect internal controls subsequent to the date of our most recent evaluation, including any corrective actions with regard to significant deficiencies and material weaknesses. Date: November 13, 2003 s/Joseph M. Rodano - --------------------------------- Joseph M. Rodano President & Treasurer CERTIFICATION ------------- I, Arlys C. Milan, certify that: 1. I have reviewed this quarterly report on Form 10-QSB of Petrol Industries, Inc.; 2. Based on my knowledge, this quarterly report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this quarterly report; 3. Based on my knowledge, the financial statements, and other financial information included in this quarterly report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for the periods presented in this quarterly report; 4. The registrant's other certifying officers and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-14 and 15d-14) for the registrant and have: a) designed such disclosure controls and procedures to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this quarterly report is being prepared; b) evaluated the effectiveness of the registrant's disclosure controls and procedures as of a date within 90 days prior to the filing date of this quarterly report (the "Evaluation Date"); and c) presented in this quarterly report our conclusions about the effectiveness of the disclosure controls and procedures based on our Evaluation Date; 5. The registrant's other certifying officers and I have disclosed, based on our most recent evaluation, to the registrant's auditors and the audit committee of registrant's board of directors (or persons performing the equivalent functions): a) all significant deficiencies in the design or operation of internal controls which could adversely affect the registrant's ability to record, process, summarize and report financial data and have identified for the registrant's auditors any material weaknesses in internal controls; and b) any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal controls; and 6. The registrant's other certifying officers and I have indicated in this quarterly report whether or not there were significant changes in internal controls or in other factors that could significantly affect internal controls subsequent to the date of our most recent evaluation, including any corrective actions with regard to significant deficiencies and material weaknesses. Date: November 13, 2003 s/Arlys C. Milan - --------------------------------- Arlys C. Milan Vice President & Secretary -----END PRIVACY-ENHANCED MESSAGE-----