TexEn Oil & Gas Inc.
(An Exploration Stage Company)
1. BASIS OF PRESENTATION
The foregoing unaudited interim financial statements have been prepared in accordance with generally accepted accounting principles for interim financial information and with the instructions to Form 10-QSB and Regulation S-B as promulgated by the Securities and Exchange Commission. Accordingly, these financial statements do not include all of the disclosures required by generally accepted accounting principles for complete financial statements. These unaudited interim financial statements should be read in conjunction with the audited financial statements for the year ended June 30, 2001. In the opinion of management, the unaudited interim financial statements furnished herein include all adjustments, all of which are of a normal recurring nature, necessary for a fair statement of the results for the interim period presented.
The preparation of financial statements in accordance with principles generally accepted in the United States of America requires the use of estimates and assumptions that affect the reported amounts of asset and liabilities, disclosure of contingent assets and liabilities known to exist as of the date the financial statements are published, and the reported amounts of revenues and expenses during the reporting period. Uncertainties with respect to such estimates and assumptions are inherent in the preparation of the Company's financial statements; accordingly, it is possible that the actual results could differ from these estimates and assumptions that could have a material effect on the reported amounts of the Company's financial position and results of operations.
Operating results for the nine months ended March 31, 2002 are not necessarily indicative of the results that may be expected for the year ending June 30, 2002.
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OR OPERATIONS
Cautionary Statement Regarding Forwarding-looking Statements
Some discussions in this report may contain forward-looking statements that involve risks and uncertainties. A number of important factors could cause our actual results to differ materially from those expressed in any forward-looking statements made by us in this report. Such factors include, those discussed in "Risk Factors," "Management's Discussion and Analysis of Financial Condition and Results of Operations" and "Business," as well as those discussed elsewhere in this report. Forward-looking statements are often identified by words like: believe, expect, estimate, anticipate, intend, project and similar expressions, or words which, by their nature, refer to future events.
Financial Condition, Liquidity and Capital Resources
Since inception on September 2, 1999 to February 8, 2002, we have been engaged in exploration and acquisition of mineral properties. From February 8, 2002, to the present we have been engaged in the oil and gas exploration and development business.
On the 20th day of April, 2001, we declared a stock dividend of four shares for each one share outstanding.
On the 11th day of October, 2001, we completed our public offering by raising $105,985, we sold 1,059,850 shares of our common stock at an offering price of ten cents per share.
At March 31, 2002, there was negative working capital of $11,443 compared to $9,461 at June 30, 2001. This change is primarily the result of payment of professional expenses.
At March 31, 2002, our Company's total assets of $130 consisted of cash. This compares with our Company's total assets at June 30 of $12,041, also mainly cash.
At March 31, 2002, our Company's total liabilities rose to $11,573 from $770 at June 30, 2001, primarily reflecting a build-up of accounts payable.
On February 8, 2002, Hugh Grenfal, Jr. and Sergei Stetsenko transferred control of the Company to Harry P. Gamble IV. At that time, the Company changed its business purpose from mining exploration to oil and gas exploration and development. As of the date hereof the Company does not own any interest in any oil and gas properties, but anticipates acquiring properties in June 2002.
We have not had revenues from inception. Although there is insufficient capital to fully explore and develop our property, we expect to survive with funding from sales of its securities and, as necessary, or from shareholder loans.
Our Company has no long-term debt and does not regard long-term borrowing as a good, prospective source of financing.
We believe we can satisfy our cash requirement until June 2002 and will have to raise additional cash thereafter.
We will not be conducting any product research or development.
We do not expect to purchase or sell any significant equipment.
We do not expect any significant changes in the number of our employees.
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Results of Operations
Our Company posted a loss of $13,438 for the nine months ended March 31, 2002. The principal component of the loss was professional expenses.
Operating expenses for the nine months ending March 31, 2002 were also $21,561 down from $66,002 in the comparable half year ending March 31, 2002, due to reductions in all categories of expense.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized on this 20th day of May, 2002.
| TexEn Oil & Gas Inc.
(Registrant) |
| | |
| BY: | /s/ Harry P. Gamble IV
Harry P. Gamble IV, President and Chief Executive Officer and a member of the Board of Directors. |
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