-----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, GWg/1rhMTtf4sLJ5IN8NmpUAKWpthEodKXS5DWZ+HMOqZo4LOPkSNkWaw1GDDZQx Szo33CPAvOkw2Khb0cHBUw== 0000788965-96-000023.txt : 19961118 0000788965-96-000023.hdr.sgml : 19961118 ACCESSION NUMBER: 0000788965-96-000023 CONFORMED SUBMISSION TYPE: 10QSB PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19960930 FILED AS OF DATE: 19961114 SROS: NONE FILER: COMPANY DATA: COMPANY CONFORMED NAME: HALLADOR PETROLEUM CO CENTRAL INDEX KEY: 0000788965 STANDARD INDUSTRIAL CLASSIFICATION: CRUDE PETROLEUM & NATURAL GAS [1311] IRS NUMBER: 841014610 STATE OF INCORPORATION: CO FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10QSB SEC ACT: 1934 Act SEC FILE NUMBER: 000-14731 FILM NUMBER: 96665196 BUSINESS ADDRESS: STREET 1: 1660 LINCOLN ST STE 2700 CITY: DENVER STATE: CO ZIP: 80264 BUSINESS PHONE: 3038395505 MAIL ADDRESS: STREET 1: 1660 LINCOLN STREET STREET 2: SUITE 2700 CITY: DENVER STATE: CO ZIP: 80264 FORMER COMPANY: FORMER CONFORMED NAME: KIMBARK OIL & GAS CO /CO/ DATE OF NAME CHANGE: 19900102 FORMER COMPANY: FORMER CONFORMED NAME: KIMBARK INC DATE OF NAME CHANGE: 19860624 10QSB 1 THIRD QUARTER 10-QSB U.S. Securities and Exchange Commission Washington, D.C. 20549 Form 10-QSB [X] QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 1996 [ ] TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE EXCHANGE ACT Commission File Number 0-14731 HALLADOR PETROLEUM COMPANY - ------------------------------------------------------------------- (Exact name of small business issuer as specified in its charter) COLORADO 84-1014610 - -------------------------------- ------------------ (State or other jurisdiction of (IRS Employer incorporation or organization) Identification No.) 1660 Lincoln St., Suite 2700, Denver, Colorado 80264 - -------------------------------------------------------------------- (Address of principal executive offices) 303-839-5504 FAX 303-832-3013 - -------------------------------------------------------------------- (Issuer's telephone number) 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, and (2) has been subject to such filing requirements for the past 90 days. Yes [x] No [ ] As of November 13, 1996 7,094,000 shares of the issuer's common stock were outstanding. This report contains 8 pages. There are no exhibits. 1 PART I. FINANCIAL INFORMATION: HALLADOR PETROLEUM COMPANY Consolidated Balance Sheet (in thousands)
September 30, December 31, 1996 1995 * ------------- ------------- ASSETS - ------ Current assets: Cash and cash equivalents $ 831 $ 3,459 Interest-bearing securities available for sale 2,831 Accounts receivable- Oil and gas sales 496 419 Well operations 275 331 Insurance claim received in January 1996 114 Accrued interest 24 -------- ------- Total current assets 4,457 4,323 ________ _______ Oil and gas properties (full cost accounting), at cost: Unproved properties 475 245 Evaluated properties 39,447 39,317 Less - accumulated depreciation, depletion, amortization (32,543) (32,118) ________ _______ 7,379 7,444 -------- ------- Other assets 162 159 -------- ------- $ 11,998 $ 11,926 ======== =======
*Derived from the Form 10-KSB. See accompanying notes. HALLADOR PETROLEUM COMPANY Consolidated Balance Sheet (in thousands)
September 30, December 31, 1996 1995 * ------------ ------------- LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Accounts payable and accrued liabilities $ 247 $ 185 Oil and gas sales payable 76 39 Debt with recourse only to the South Cuyama Field 650 670 -------- ------- Total current liabilities 973 894 -------- ------- Debt with recourse only to the South Cuyama Field 5,553 6,203 -------- ------- Deferred Bonus Plan 158 127 -------- ------- Other 65 65 -------- ------- Stockholders' equity: Preferred stock, $.10 par value; 10,000,000 shares authorized; no shares issued Common stock, $.01 par value; 100,000,000 shares authorized; 7,094,000 (post split) shares issued and 70,982,723 (pre-split) 71 710 Additional paid-in capital 18,063 17,428 Accumulated deficit (12,885) (13,501) ------- ------- 5,249 4,637 ------- ------- $ 11,998 $ 11,926 ======= =======
*Derived from the Form 10-KSB. See accompanying notes. 3 PAGE HALLADOR PETROLEUM COMPANY Consolidated Statement of Operations (in thousands, except per share amounts)
Nine months ended Three months ended September 30, September 30, 1996 1995 1996 1995 -------- -------- -------- -------- Revenue: Oil $ 3,105 $ 2,717 $ 1,067 $ 843 Gas 235 368 80 88 NGLs 367 363 122 105 Interest 159 33 55 15 Other 39 4 ------- ------- ------- ------- 3,905 3,481 1,328 1,051 ------- ------- ------- ------- Costs and expenses: Lease operating 2,068 2,105 657 599 Depreciation, depletion and amortization 425 460 141 139 General and administrative 343 285 95 96 Interest 453 711 146 240 ------- ------- ------- ------- 3,289 3,561 1,039 1,074 ------- ------- ------- ------- Net income (loss) $ 616 $ (80) $ 289 $ (23) ======= ======= ======= ======= Net per share amounts* $ .09 $ (.10) $ .04 $ (.03) ======= ======= ======= ======= Weighted average shares outstanding* 7,094 766 7,094 766 ======= ======= ======= =======
* The 1995 amounts have been restated to reflect the May 29, 1996 stock split. See accompanying notes. 4 PAGE HALLADOR PETROLEUM COMPANY Consolidated Statement of Cash Flows (in thousands)
Nine months ended September 30, 1996 1995 -------- -------- Cash flows from operating activities $ 1,233 $ 746 ------- ------- Cash flows used in investing activities: Marketable securities (2,831) Proceeds from property sales 354 Additions to oil and gas properties (42) (118) Additions to unproved properties (318) ------- ------- Net cash (used in) investing activities (3,191) 236 ------- ------- Cash flows used in financing activities: Repayments of debt (670) (400) ------- ------- Net increase (decrease) in cash and cash equivalents (2,628) 582 Cash and cash equivalents, beginning of period 3,459 438 ------- ------- Cash and cash equivalents, end of period $ 831 $ 1,020 ======= =======
NOTES TO FINANCIAL STATEMENTS 1. The interim financial data is unaudited; however, in the opinion of management, the interim data includes all adjustments, consisting only of normal recurring adjustments necessary for a fair statement of the results for the interim periods. The financial statements included herein have been prepared by the Company pursuant to the rules and regulations of the Securities and Exchange Commission. Certain information and footnote disclosures normally included in financial statements prepared in accordance with generally accepted accounting principals have been condensed or omitted pursuant to such rules and regulations, although the Company believes that the disclosures included herein are adequate to make the information presented not misleading. The organization and business of the Company, accounting policies followed by the Company and other information are contained in the notes to the Company's financial statements filed as part of the Company's December 31, 1995 Form 10-KSB. This quarterly report should be read in conjunction with such annual report. 5 HALLADOR PETROLEUM COMPANY MANAGEMENT'S DISCUSSION AND ANALYSIS OR PLAN OF OPERATION RESULTS OF OPERATIONS Properties Sold in July 1995 ---------------------------- In July 1995, the Company sold substantially all its Texas properties for $354,000. LOE for these properties for the six-month period ended June 30, 1995 was approximately $44,000. Sales data for the six-months are set forth in the following table:
Six Month Sales 1995 Volume Value ------ ------ Oil-barrels 2,955 $50,713 Gas-MCF 34,486 56,391
Year-to-date Comparison -----------------------
1996 1995 Sales Volume Average Price Sales Volume Average Price ------------ ------------- ------------ ------------- Oil - barrels 165,077 $18.81 169,220 $16.06 Gas - MCF 152,781 1.54 262,155 1.40 NGLs- barrels 29,841 12.30 33,177 10.95
Revenue increased due to a higher average prices, interest income and non-recurring refunds. Higher prices more than offset the decline in gas sales resulting from lower production levels and the Texas property sale. General and administrative expenses increased due to annual meeting expenses of $15,000, non-recurring expenses of $16,000 and state taxes of $18,000. The Company did not have an annual meeting in 1995 and state taxes were insignificant. Interest expense decreased due to the conversion of the convertible debt in November 1995. 6 Quarter-to-date Comparison --------------------------
1996 1995 Sales Volume Average Price Sales Volume Average Price ------------ ------------- ------------ ------------- Oil - barrels 54,362 $19.62 54,230 $15.54 Gas - MCF 41,802 1.92 68,945 1.28 NGLs- barrels 10,020 12.17 10,897 9.65
Revenue increased due to the reasons stated above. During the third quarter $88,000 of unproved properties were deemed impaired and transferred to evaluated properties. OUTLOOK FOR REMAINDER OF 1996 Hedging ------- The Company continues to evaluate hedging strategies for its oil production but has never entered into such actions and at this time does not expect to. As of November 12, 1996, the Company is receiving $20.25 per barrel for its California production. Liquidity and Capital Resources ------------------------------- Cash from operations and available funds will enable the Company to meet its obligations, commitments and capital expenditures through the next 12 months. Future Results of Operations ---------------------------- Assuming stable production and prices, a profit in the $250,000 range is forecasted for the fourth quarter. Management believes that current oil and gas production from the South Cuyama Field for the next twelve months will be maintained. Current Prospects ----------------- The Company owns a 60% working interest (50% revenue interest) in a northern California joint venture operated by Colorado-based Sharon Energy, Ltd. Sharon trades on the Boston Stock Exchange ("SHA") and the Vancouver Stock Exchange ("SHY"). Through September 30, 1996, the Company has invested approximately $200,000. The joint venture has entered into a contract with Kemp Geophysical of Houston, Texas to undertake the acquisition of approximately 14 square miles of 3-D seismic on the Merlin Prospect in Glenn County. Data acquisition will be completed during 1996 with processing an interpretation expected in early 1997. The entire survey, including processing, is expected to cost $525,000. The Company's share will approximate $300,000, for a total investment in excess of $500,000. 7 Ten potential drilling targets have been identified from existing 2-D seismic data. The 3-D survey will allow further evaluation of these targets and possibly add others. Operators in the area have achieved a better than 75% success rate using 3-D technology. Drilling is expected to commence next spring or summer. Management believes the prospect has potential for 10 to 30 BCF of gas reserves. The Company operates a second joint venture designed to build exploration prospects and acquire existing production in the Big Horn Basin of Wyoming. Blackstone Energy, Inc. of Red Lodge, Montana is providing technical support in exchange for an overriding royalty position. The 600- acre Hand Creek Field (currently shut in) in Hot Springs County was purchased in October 1996 for approximately $100,000. Existing wells within the field are currently being evaluated, and a new horizontal well or a horizontal kick off from an existing wellbore is planned for next spring. Additionally, the Company holds approximately 15,000 net and gross undeveloped acres in Washakie and Hot Springs Counties at a cost of $80,000. PART II. OTHER INFORMATION ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K (a) Exhibits Ex-27 Financial Data Schedule; EDGAR filing only. (b) No reports on Form 8-K were filed by the Company during the quarter ended September 30, 1996. SIGNATURE In accordance with the requirements of the Exchange Act, the registrant caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. HALLADOR PETROLEUM COMPANY Date: November 13, 1996 By:/s/Victor P. Stabio ------------------- Victor P. Stabio Chief Executive Officer and Chief Financial Officer Signing on behalf of the registrant and as principal financial and accounting officer. EX-27 2 FINANCIAL DATA SCHEDULE
5 This schedule contains summary financial information extracted from the consolidated balance sheets and consolidated statement of operations found on pages 2, 3 and 4 of the Company's Form 10-QSB for the year-to-date, and is qualified in its entirety by reference to such financial statements. 0000788965 HALLADOR PETROLEUM COMPANY 1000 9-MOS DEC-31-1995 SEP-30-1996 831 2831 795 0 0 4457 39447 32543 11998 973 5553 0 0 71 0 11998 3707 3905 0 0 0 0 453 616 0 0 0 0 0 616 .09 0
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