-----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, RQLpad/kZpZ1lJs942dmqQ5i5PUK7I7l8BknIJdC7cL1bRDEEuYd0hCh50ODx0qX S8y+l0RXQuMbBvrketGSag== 0000077864-04-000007.txt : 20040514 0000077864-04-000007.hdr.sgml : 20040514 20040514121535 ACCESSION NUMBER: 0000077864-04-000007 CONFORMED SUBMISSION TYPE: 10QSB PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 20040331 FILED AS OF DATE: 20040514 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: 04805592 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 ptqsb304.txt PETROL INDUSTRIES, INC. FORM 10QSB 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, 2004 [ ] 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, 2004 2003 --------- ------------ ASSETS ------ Current assets: Cash and cash equivalents $ 23,924 25,074 Accounts receivable: Trade 71,717 66,502 Other 9,498 9,498 ---------- ---------- 81,215 76,000 Inventory 33,410 26,681 Prepaid expenses 11,880 7,483 ---------- ---------- Total current assets 150,429 135,238 ---------- ---------- Property and equipment, at cost: Land 7,000 7,000 Developed and undeveloped oil and gas properties-successful efforts method 3,231,799 3,204,029 Trucks and other operating equipment 362,831 387,429 Furniture and fixtures 36,306 36,306 ---------- ---------- 3,637,936 3,634,764 Less accumulated depreciation, depletion and amortization 3,543,001 3,540,136 ---------- ---------- 94,935 94,628 ---------- ---------- Other assets 1,107 1,107 ---------- ---------- $ 246,471 230,973 ========== ========== LIABILITIES AND STOCKHOLDERS' DEFICIT ------------------------------------- Current liabilities: Accounts payable $ 59,314 65,811 Payable to interest owners 314,494 310,448 Payable to officer, net 1,013,972 999,735 Note payable 268,256 269,756 Accrued expenses 116,856 104,440 ---------- ---------- Total current liabilities 1,772,892 1,749,790 ---------- ---------- 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 (1,686,141) (1,678,537) ---------- ---------- Total stockholders' deficit (1,526,421) (1,518,817) ---------- ---------- $ 246,471 230,973 ========== ==========
PETROL INDUSTRIES, INC. Consolidated Statements of Operations Three Months Ended March 31, 2004 and 2003 (unaudited) 2004 2003 ---- ---- Revenues: Oil and gas sales $ 221,085 199,785 Other operating income 1,235 6,036 ---------- ---------- 222,320 205,821 Expenses: Lease operating expense 161,648 135,069 General and administrative 48,240 35,501 Depreciation, depletion and amortization 2,865 3,330 ---------- ---------- 212,753 173,900 ---------- ---------- Operating income 9,567 31,921 ---------- ---------- Other income and (expense): Gain on sale of assets --- 61,500 Interest income 3 2 Interest expense (17,174) (16,745) ---------- ---------- (17,171) 44,757 ---------- ---------- Net income/(loss) $ (7,604) 76,678 ========== ========== Net income/(loss) per share $ (0.01) 0.05 ========== ========== Average common shares outstanding 1,597,196 1,597,196 ========== ==========
PETROL INDUSTRIES, INC. Consolidated Statements of Cash Flows Three Months Ended March 31, 2004 and 2003 (unaudited) 2004 2003 ---- ---- Operating activities: Net income/(loss) $ (7,604) 76,678 Adjustments to reconcile net loss to net cash provided (used) by operating activities: Depreciation, depletion and amortization 2,865 3,330 Gain on sale of assets --- (61,500) Losses on retirements of property and equipment included in lease operating expenses --- --- Changes in assets and liabilities: Increase in accounts receivable (5,215) (27,595) Increase in inventory (6,729) (1,123) Increase in prepaid expenses (4,397) (4,676) (Decrease) increase in accounts payable and accrued expenses 5,919 (41,598) Increase in payable to officer, net 14,237 14,366 (Decrease) increase in payable to interest owners 4,446 (41,556) ------- ------- Net cash (used) provided by operating activities 3,522 (83,674) ------- ------- Investing activities: Capital expenditures (3,172) (4,337) Proceeds from sale of property and equipment --- 61,500 ------- ------- Net cash provided (used) by investing activities (3,172) 57,163 ------- ------- Financing activities: Proceeds from gross borrowings --- 25,000 Repayments of gross borrowings (1,500) (3,500) ------- ------- Net cash provided by financing activities (1,500) 21,500 ------- ------- Increase (decrease) in cash and cash equivalents (1,150) (5,011) Cash and cash equivalents at beginning of period 25,074 47,405 ------- ------- Cash and cash equivalents at end of period $ 23,924 42,394 ======= =======
PETROL INDUSTRIES, INC. Consolidated Statements of Changes in Stockholders' Deficit Three Months Ended March 31, 2004 and 2003 (unaudited) 2004 2003 ---- ---- Stockholder's deficit at January 1 $ (1,518,817) (1,499,084) Net income/(loss) for the three month period (7,604) 76,678 ---------- ---------- Stockholder's deficit at March 31 $ (1,526,422) (1,422,406) ========== ==========
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 2003 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 2004 or 2003. 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 2004 2003 ------------------ 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 operations for the first three months of 2004 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, 2004. Item 2. MANAGEMENT'S DISCUSSION AND ANALYISIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS. With an increase of approximately 31.9% in average oil prices, oil and gas sales revenues increased significantly during the first quarter of 2004, as compared to the 2003 period. The Company sustained a net loss of $7,604, or ($.01) per share, as compared to a net income of $76,678, or $.05 per share, in the 2003 period. The Company realized an operating income of $9,567 in the first quarter of 2004, compared to an operating income of $31,921 in the prior year's first quarter. Oil prices averaged $33.50 per barrel during the first quarter of 2004, compared to an average of $25.40 per barrel in the 2003 period. Profitability is contingent essentially upon two factors: increasing production from the Company's mineral leases and continued 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, 2004, of $23,924, compared to $25,074 at the end of the 2003 fiscal year. Management estimates that it owes $314,494 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. Item 5. Other Information. 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. Dated: May 14, 2004 PETROL INDUSTRIES, INC. s/Joseph M. Rodano By:__________________________ Joseph M. Rodano President & 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 this quarterly report our conclusions about the 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: May 14, 2004 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 this quarterly report our conclusions about the 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: May 14, 2004 s/Arlys C. Milan _______________________ Arlys C. Milan Secretary CERTIFICATION PURSUANT TO 18 U.S.C. SECTION 1350, AS ADOPTED PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002 In connection with the Quarterly Report of Petrol Industries, Inc. (the "Company") on Form 10-QSB for the period ended March 31, 2004, as filed with the Securities and Exchange commission on the date hereof (the "Report"), the undersigned certifies, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that: (1) The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and (2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company. Dated: May 14, 2004 s/Joseph M. Rodano _______________________________ Joseph M. Rodano President & Treasurer A signed original of this written statement required by Section 906 of the Sarbanes-Oxley Act has been provided to Petrol Industries, Inc. and will be retained by Petrol Industries, Inc. and furnished to the Securities and Exchange Commission or its staff upon request. -----END PRIVACY-ENHANCED MESSAGE-----