U.S. Securities and Exchange Commission
Washington, D.C. 20549
FORM 10-QSB
(Mark One) |
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x | QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
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For the quarterly period ended May 31, 2006.
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o | TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
For the transition period from to .
Commission file number 0-8532
OAKRIDGE ENERGY, INC.
(Exact name of small business issuer as specified in its charter)
Utah |
| 87-0287176 |
(State or other jurisdiction of |
| (I.R.S. Employer |
incorporation or organization) |
| Identification No.) |
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4613 Jacksboro Highway | ||
Wichita Falls, Texas 76302 | ||
(Address of principal executive offices) | ||
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(940) 322-4772
(Issuer’s telephone number)
Not Applicable
(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 x NO o
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). YES o NO x
The number of shares outstanding of each of the issuer’s classes of common equity, as of July 12, 2006: Common Stock, $.04 par value, 4,266,917 shares
Transitional Small Business Disclosure Format (check one); YES o NO x
OAKRIDGE ENERGY, INC.
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| May 31, |
| February 28, |
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| 2006 |
| 2006 |
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Assets |
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Current assets: |
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Cash and cash equivalents |
| $ | 3,068,890 |
| $ | 3,367,361 |
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Trade accounts receivable |
| 232,566 |
| 204,137 |
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Prepaid expenses and other |
| 15,282 |
| 18,632 |
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Total current assets |
| 3,316,738 |
| 3,590,130 |
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Oil and gas properties, at cost, using the successful |
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efforts method of accounting, net of accumulated depletion and |
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depreciation of $6,246,604 and $6,242,138, respectively |
| 982,311 |
| 960,535 |
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Coal and gravel properties, at cost, net of accumulated depreciaton of |
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$8,001,719 at May 31 and February 28, 2006 |
| 260,488 |
| 260,488 |
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Other property and equipment, net of accumulated |
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depreciation of $427,536 and $421,868, respectively |
| 125,886 |
| 117,094 |
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Real estate held for sale |
| 3,077,648 |
| 3,077,648 |
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Deferred income taxes |
| 52,988 |
| 18,786 |
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Other non-current assets |
| 857,597 |
| 857,597 |
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Total assets |
| $ | 8,673,656 |
| $ | 8,882,278 |
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See accompanying notes to financial statements.
1
OAKRIDGE ENERGY, INC.
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| May 31, |
| February 28, |
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| 2006 |
| 2006 |
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| (Unaudited) |
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Liabilities and Stockholders’ Equity |
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Current liabilities: |
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Accounts payable |
| $ | 83,717 |
| $ | 100,337 |
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Accrued expenses |
| 55,671 |
| 52,611 |
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Current portion of asset retirement obligations |
| 523,508 |
| 642,308 |
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Total current liabilities |
| 662,896 |
| 795,256 |
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Asset retirement obligations |
| 415,403 |
| 415,403 |
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Total liabilities |
| 1,078,299 |
| 1,210,659 |
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Stockholders’ equity: |
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Common stock, par value $.04 per share, 20,000,000 |
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shares authorized, 10,157,803 shares issued |
| 406,312 |
| 406,312 |
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Additional paid-in capital |
| 805,092 |
| 805,092 |
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Retained earnings |
| 16,707,147 |
| 16,757,534 |
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Stockholders’ equity before treasury stock |
| 17,918,551 |
| 17,968,938 |
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Less treasury stock, at cost; 5,890,886 shares |
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and 5,886,386 shares, respectively |
| 10,323,194 |
| 10,297,319 |
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Total stockholders’ equity |
| 7,595,357 |
| 7,671,619 |
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Total liabilities and stockholders’ equity |
| $ | 8,673,656 |
| $ | 8,882,278 |
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See accompanying notes to financial statements.
2
OAKRIDGE ENERGY, INC.
STATEMENTS OF OPERATIONS
(UNAUDITED)
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| Quarter Ended May 31, |
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| 2006 |
| 2005 |
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Revenues: |
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Oil and gas |
| $ | 347,317 |
| $ | 363,024 |
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Gravel |
| — |
| 12,500 |
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Total revenues |
| 347,317 |
| 375,524 |
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Operating expenses: |
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Oil and gas |
| 237,074 |
| 196,670 |
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Coal and gravel |
| 12,237 |
| 15,717 |
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Real estate development |
| 72,019 |
| 24 |
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General and administrative |
| 151,782 |
| 134,843 |
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Total operating expenses |
| 473,112 |
| 347,254 |
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Income (loss) from operations |
| (125,795 | ) | 28,270 |
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Interest and other, net |
| 45,854 |
| 21,648 |
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Income (loss) before income taxes |
| (79,941 | ) | 49,918 |
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Income tax expense (benefit) |
| (29,554 | ) | 18,455 |
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Net income (loss) |
| $ | (50,387 | ) | $ | 31,463 |
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Basic and diluted income (loss) per common share: |
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Net income (loss) |
| $ | (0.01 |
| $ | 0.01 |
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Weighted average common shares outstanding |
| 4,267,846 |
| 4,284,886 |
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Comprehensive income for the three months ended May 31, 2005 was $96,595. |
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Included in comprehensive income (loss) is the change in available for sales |
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securities. Comprehensive income (loss) is not applicable to the three months |
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ended May 31, 2006 as all available for sale securities have been sold. |
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See accompanying notes to financial statements.
3
OAKRIDGE ENERGY, INC.
STATEMENTS OF CASH FLOWS
(UNAUDITED)
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| Quarter Ended May 31, |
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| 2006 |
| 2005 |
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Operating Activities |
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Net income (loss) |
| $ | (50,387 | ) | $ | 31,463 |
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Adjustments to reconcile net income (loss) to net cash |
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provided by (used in) operating activities: |
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Depletion and depreciation |
| 10,134 |
| 26,864 |
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Accretion of discount on asset retirement obligations |
| 4,810 |
| 4,603 |
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Deferred income taxes |
| (34,202 | ) | 13,481 |
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Gain on sales of property and equipment |
| (7,500 | ) | — |
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Changes in operating assets and liabilities: |
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Trade accounts receivable |
| (28,429 | ) | (28,311 | ) | ||
Prepaid expenses and other |
| 3,350 |
| 5,274 |
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Accounts payable |
| (16,620 | ) | 22,052 |
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Accrued expenses |
| 3,060 |
| (3,624 | ) | ||
Asset retirement obligations |
| (123,610 | ) | — |
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Net cash provided by (used in) operating activities |
| (239,394 | ) | 71,802 |
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Investing Activities |
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Additions to oil and gas properties |
| (26,242 | ) | (3,389 | ) | ||
Additions to real estate held for sale |
| — |
| (9,929 | ) | ||
Additions to other property and equipment |
| (14,460 | ) | — |
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Proceeds from sales of property and equipment |
| 7,500 |
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Net cash used in investing activities |
| (33,202 | ) | (13,318 | ) | ||
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Financing Activity |
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Purchases of treasury stock |
| (25,875 | ) | (563 | ) | ||
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Net increase (decrease) in cash and cash equivalents |
| (298,471 | ) | 57,921 |
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Cash and cash equivalents at beginning of quarter |
| 3,367,361 |
| 2,294,548 |
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Cash and cash equivalents at end of quarter |
| $ | 3,068,890 |
| $ | 2,352,469 |
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Supplemental Disclosure of Cash Flow Information |
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Income taxes paid |
| $ | 16,593 |
| $ | 16,559 |
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Supplemental Disclosure of Non-Cash Information |
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Change in unrealized gain on investment |
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securities, net of income taxes |
| $ | — |
| $ | 60,883 |
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See accompanying notes to financial statements.
4
OAKRIDGE ENERGY, INC.
Notes to Condensed Financial Statements
(Unaudited)
The accompanying unaudited financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America for interim financial statements and with the instructions to Form 10-QSB and Regulation S-B for the three month periods ended May 31, 2006 and 2005 and reflect, in the opinion of management, all adjustments, which are of a normal and recurring nature, necessary for a fair presentation of the results for such periods. The foregoing financial statements do not include all information and footnotes required by accounting principles generally accepted in the United States of America for complete financial statements. However, except as disclosed herein, there has been no material change in the information disclosed in the notes to the financial statements for the year ended February 28, 2006 included in the Company’s Annual Report on Form 10-KSB filed with the Securities and Exchange Commission. The interim unaudited financial statements should be read in conjunction with the annual financial statements and accompanying notes included in the Company’s Annual Report on Form 10-KSB for the year ended February 28, 2006. Operating results for the three months ended May 31, 2006 are not necessarily indicative of the results that may be expected for the year ending February 28, 2007. The Company’s operating segments are set forth in the annual financial statements and accompanying notes for the fiscal year ended February 28, 2006.
Information regarding operations and assets by segment is as follows:
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| For the three months ended May 31, |
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| 2006 |
| 2005 |
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Business segment revenue: |
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Oil and gas |
| $ | 347,317 |
| $ | 363,024 |
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Gravel |
| — |
| 12,500 |
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| $ | 347,317 |
| $ | 375,524 |
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Business segment profit (loss): |
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Oil and gas |
| $ | 110,243 |
| $ | 166,354 |
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Coal and gravel |
| (12,237 | ) | (3,217 | ) | ||
Real estate development |
| (72,019 | ) | (24 | ) | ||
General corporate |
| (151,782 | ) | (134,843 | ) | ||
Profit (loss) from operations |
| (125,795 | ) | 28,270 |
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Interest income and other, net |
| 45,854 |
| 21,648 |
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Income (loss) before income taxes |
| $ | (79,941 | ) | $ | 49,918 |
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| As of |
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Total assets: |
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Oil and gas |
| $ | 4,377,831 |
| $ | 4,591,890 |
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Coal and gravel |
| 260,488 |
| 260,488 |
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Real estate development |
| 3,077,648 |
| 3,077,648 |
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General corporate |
| 957,690 |
| 952,252 |
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| $ | 8,673,656 |
| $ | 8,882,278 |
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5
ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OR PLAN OF OPERATION.
The following discussion should be read in conjunction with Items 6 and 7 of the Company’s Annual Report on Form 10-KSB for the fiscal year ended February 28, 2006 and the Notes to Condensed Financial Statements contained in this report.
Results of Operations
The Company had a net loss of $50,387 ($0.01 per share) for the three months ended May 31, 2006 (the “2006 period”) compared to net income of $31,463 ($0.01 per share) for the three months ended May 31, 2005 (the “2005 period”).
Oil and gas revenues for the 2006 period were $347,317, compared to $363,024 for the 2005 period, representing a decrease of approximately $15,700 (4.3%). This decrease was due primarily to a reduction in the Company’s oil sales volumes with a slight decrease in gas sales volumes received during the 2006 period even though the average sales prices increased for both products. The following table compares the Company’s oil and gas revenues, sales volumes and average prices received during the 2006 period with those during the 2005 period:
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| May 31, 2006 |
| May 31, 2005 |
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Oil: |
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Revenues |
| $ | 291,019 |
| $ | 306,716 |
| -5.1 | % |
Volume (Bbls.) |
| 4,493 |
| 5,916 |
| -24.1 |
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Average Price |
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(per Bbl.) |
| $ | 64.77 |
| $ | 51.84 |
| +24.9 |
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Gas: |
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Revenues |
| $ | 47,172 |
| $ | 47,158 |
| +0.0 | % |
Volume (MCF) |
| 7,358 |
| 7,609 |
| -3.3 |
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Average Price |
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(per MCF) |
| $ | 6.41 |
| $ | 6.20 |
| +3.4 |
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Non-material amounts of natural gas liquids revenues and sales are excluded from the foregoing table.
6
The Company’s principal producing oil and gas property in Madison County, Texas is in the process of being waterflooded. Oil revenues from this property increased during the 2006 period, as they had during the prior year, due to the rise in the Company’s average oil price received from the property. Sales volumes from this property for both oil and gas were at lower levels during the 2006 period than the 2005 period. Any significant increase in oil production volumes from the property is not expected to occur until fiscal 2008 due to the substantial lag time for the buildup of sufficient water volumes to push the incremental secondary oil reserves to producing wells and the actual production of the incremental reserves.
The Company received no gravel revenues for the 2006 period, compared to $12,500 for the 2005 period, which was for surface rental only. A dispute developed in fiscal 2004 between the Company and Four Corners Materials, which at the time was conducting gravel mining operations on the Company’s Colorado property. The dispute was detailed in the Company’s Annual Report on Form 10-KSB for the fiscal year ended February 28, 2006. Four Corners Materials is no longer mining the property and has reclaimed its permitted area. The Company would consider leasing the property again for gravel operations but has no intention of conducting any operations itself.
The Company’s oil and gas operations expense for the 2006 period was $237,074, compared to $196,670 for the 2005 period, representing a net increase of approximately $40,400 (20.5%). The Company’s lease operating expenses increased approximately $56,700 (42.8%) as Madison County leases increased $33,000 (35%) and North Texas counties increased $23,900(96.5%) due to multiple workovers in those areas. Depletion and depreciation expenses declined approximately $16,000 (78.2%) for the 2006 period compared to the 2005 period. Such decline was primarily credited to the Madison County, Texas property with a decrease of approximately $13,900 (79.8%). This property continues to experience a reduced per barrel amortization rate resulting from the higher quantity of proven oil and gas reserves at the fiscal 2006 year end compared to the prior year in relation to the current production volume for the property. Production taxes decreased approximately $900 (5.4%) for the 2006 period compared to the 2005 period due to lower oil and gas revenues. All other categories either minimally declined or were similar to the 2005 period. The Company did not incur any exploration expenses, dry hole expenses or leasehold abandonment charges during either the 2006 or the 2005 period.
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The expenses of the Company’s coal and gravel operations for the 2006 period were $12,237, compared to $15,717 for the 2005 period, representing a net decrease of approximately $3,500 (22.3%). This decrease was primarily as a result of the decline in testing and permitting fees for the coal mine coupled with a slight decrease in engineering and ad valorem tax expenses offset by an increase in legal expenses incurred in connection with the investigation of the royalty owners’ mineral title.
The Company incurred real estate expense of $72,019 in the 2006 period, compared to $24 in the 2005 period with increases resulting primarily from legal and engineering fees of $32,600 and $29,700 respectively, connected with the proposed sale of Durango Colorado land owned by the Company. The increase included a small payroll expense.
General and administrative expenses for the 2006 period were $151,782, compared to $134,843 for the 2005 period, representing a increase of approximately $16,900 (12.5%), primarily attributable to an increase in Securities and Exchange Commission (the “Commission”) reporting costs.
Other income increased approximately $24,200 (111.8%) in the 2006 period as compared to the 2005 period. Both interest and dividend income experienced an increase in 2006. Also included in the increase is a small profit resulting from the sale of a piece of mining equipment.
The Company’s weighted average shares outstanding decreased approximately 0.4% for the 2006 period compared to the 2005 period. The Company purchased 4,500 shares of its stock from an unrelated party during the period.
Financial Condition and Liquidity
For the 2006 period, operating, investing and financing activities were net users of funds. As a result, the Company’s cash and cash equivalents decreased by approximately $298,000 during the 2006 period compared to the 2005 period. Reclamation costs, in the amount $123,610, were the greatest user of funds with increased Real Estate expenses related to the proposed sale of the Company’s lands in Colorado combined with higher oil and gas
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operating expenses and lower oil and gas income, resulting in the Company’s operating activities using approximately $239,400 of funds in the course of the 2006 period. The Company’s investing activities for the 2006 period used approximately $33,200, primarily due to additions to oil and gas properties and other equipment partially offset by the sale of some equipment. The Company’s financing activities used approximately $25,900 during the 2006 period on purchases of the Company’s common stock. At May 31, 2006, the Company had no indebtedness, and cash and cash equivalents totaled approximately $3,068,900.
The Company expects to fund its contemplated operations and any purchases of the Company’s stock it makes during the remainder of fiscal 2007 from its cash and cash equivalents and any cash flow from its operations. Given the Company’s decision to attempt to sell its Durango, Colorado lands, the Company currently does not expect to make any material expenditure for the remainder of fiscal 2007.
Critical Accounting Policies and Estimates
The foregoing discussion and analysis of the Company’s results of operations and financial condition and liquidity is based upon the financial statements, which have been prepared in accordance with U.S. generally accepted accounting principles. The preparation of these financial statements requires the Company to make estimates and judgments that affect the reported amounts of assets, liabilities, revenues and expenses. In response to the “Commission” Release No. 33-8040, “Cautionary Advice Regarding Disclosure About Critical Accounting Policies,” the Company has identified certain of its accounting policies as being of particular importance to the portrayal of the Company’s results of operations and financial position and which require the application of significant judgment by management. The Company analyzes its estimates, including those related to oil and gas revenues, oil and gas properties, income taxes, contingencies and litigation, and bases its estimates on historical experience and various other assumptions that the Company believes to be reasonable under the circumstances. Actual results may differ from these estimates under different assumptions or conditions. The Company believes the following critical accounting policies affect its more significant judgments and estimates used in the preparation of the Company’s financial statements:
SUCCESSFUL EFFORTS METHOD OF ACCOUNTING: The Company accounts for its natural gas and crude oil exploration and development activities utilizing the successful efforts method of accounting. Under this method, costs of productive exploratory wells, development dry holes and productive wells, costs to acquire
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mineral interests and three-dimensional (3-D) seismic costs are capitalized. Exploration costs, including personnel costs, certain geological and geophysical expenses including two-dimensional (2-D) seismic costs and delay rentals for oil and gas leases, are charged to expense as incurred. Exploratory drilling costs are initially capitalized, but charged to expense if and when the well is determined not to have found reserves in commercial quantities. The sale of a partial interest in a proved property is accounted for as a cost recovery and no gain or loss is recognized.
The application of the successful efforts method of accounting requires managerial judgment to determine the proper classification of wells designated as developmental or exploratory which will ultimately determine the proper accounting treatment of the costs incurred. The results from a drilling operation can take considerable time to analyze and the determination that commercial reserves have been discovered requires both judgment and industry experience. Wells may be completed that are assumed to be productive but actually deliver oil and gas in quantities insufficient to be economic, which may result in the abandonment of the wells at a later date. Wells may be drilled that target geologic structures that are both developmental and exploratory in nature and an allocation of costs is required to properly account for the results. The evaluation of oil and gas leasehold acquisition costs requires managerial judgment to estimate the fair value of these costs with reference to drilling activity in a given area. Drilling activities in an area by other companies may also effectively condemn leasehold positions.
The successful efforts method of accounting can have a significant impact on the operational results reported when the Company is entering a new exploratory area in hopes of funding an oil and gas field that will be the focus of future development drilling activity. The initial exploratory wells may be unsuccessful and will be expensed.
RESERVE ESTIMATES: The Company’s estimates of oil and gas reserves, by necessity, are projections based on geologic and engineering data, and there are uncertainties inherent in the interpretation of such data as well as the projection of future rates of production and the timing of development expenditures. Reserve engineering is a subjective process of estimating underground accumulations of oil and gas that are difficult to measure. The accuracy of any reserve estimate is a function of the quality of available data, engineering and geological interpretation and judgment. Estimates of economically recoverable oil and gas reserves and future net cash flows necessarily depend upon a number of variable factors and assumptions, such as historical production from the area compared with production from other producing areas, the assumed effects of regulations by governmental agencies and assumptions governing future oil and gas
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prices, future operating costs, severance taxes, development costs and workover gas costs, all of which may in fact vary considerably from actual results. The future drilling costs associated with reserves assigned to proved undeveloped locations may ultimately increase to an extent that these reserves may be later determined to be uneconomic. For these reasons, estimates of the economically recoverable quantities of oil and gas attributable to any particular group of properties, classifications of such reserves based on risk of recovery and estimates of the future net cash flows expected there from may vary substantially. Any significant variance in the assumptions could materially affect the estimated quantity and value of the reserves, which could affect the carrying value of the Company’s oil and gas properties and/or the rate of depletion of the oil and gas properties. Actual production, revenues and expenditures with respect to the Company’s reserves will likely vary from estimates and such variances may be material.
IMPAIRMENT OF OIL AND GAS PROPERTIES: The Company reviews its oil and gas properties for impairment at least annually and whenever events and circumstances indicate a decline in the recoverability of their carrying value. The Company estimates the expected future cash flows of its oil and gas properties and compares such future cash flows to the carrying amount of the properties to determine if the carrying amount is recoverable. If the carrying amount exceeds the estimated undiscounted future cash flows, the Company will adjust the carrying amount of the oil and gas properties to their fair value. The factors used to determine fair value include, but are not limited to, estimates of proved reserves, future commodity pricing, future production estimates, anticipated capital expenditures and a discount rate commensurate with the risk associated with realizing the expected cash flows projected.
Given the complexities associated with oil and gas reserve estimates and the history of price volatility in the oil and gas markets, events may arise that would require the Company to record an impairment of the recorded book values associated with oil and gas properties. The Company has not recognized impairments this year or in the prior year, but there can be no assurance that impairments will not be recognized in the future.
ASSET RETIREMENT OBLIGATIONS: The Company’s recorded asset retirement obligations represent the estimated present value of the amounts expected to be incurred to plug, abandon, and remediate the producing properties at the end of their productive lives, in accordance with state laws, as well as the estimated costs associated with the reclamation of the property surrounding and including the Company’s previous coal mining operations. The Company determines the asset retirement obligations by calculating the present value of estimated cash flows related to the liability. The asset retirement obligations are recorded as a liability at the
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estimated present value as of the asset’s inception, with an offsetting increase to producing properties. Periodic accretion of the discount related to the estimated liability is recorded as an expense in the statement of operations.
The estimated liability is determined using significant assumptions, including current estimates of plugging and abandonment costs, annual inflation of these costs, the productive lives of wells, and a risk-adjusted interest rate. Changes in any of these assumptions can result in significant revisions to the estimated asset retirement obligations. Revisions to the asset retirement obligations are recorded with an offsetting change to producing properties, resulting in prospective changes to depletion and depreciation expense and accretion of the discount. Because of the subjectivity of assumptions and the relatively long lives of most of the wells, the costs to ultimately retire the Company’s wells may vary significantly from prior estimates.
Forward-Looking Statements
Certain information included in this Quarterly Report on Form 10-QSB and other materials filed by the Company with the Commission contain forward-looking statements relating to the Company’s operations and the oil and gas industry. Such forward-looking statements are based on management’s current projections and estimates and are identified by words such as “expects,” “intends,” “plans,” “believes,” “estimates,” “anticipates” and similar words. These statements are not guarantees of future performance and involve certain risks, uncertainties and assumptions that are difficult to predict. Therefore, actual results may differ materially from what is expressed in such forward-looking statements.
Among the factors that could cause actual results to differ materially are crude oil and natural gas price fluctuations, failure to achieve expected production and the timing of receipt of revenues from existing and future exploration and development projects (including, particularly, the secondary recovery project on the Madison County, Texas property), higher than estimated oil and gas and coal reclamation costs and delays with respect to, or failure to obtain, governmental permits and approvals necessary to proceed with real estate development. In addition, these forward-looking statements may be affected by general domestic and international economic and political conditions.
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ITEM 3. CONTROLS AND PROCEDURES.
The term “disclosure controls and procedures” is defined in Rules 13a-15(e) and 15d-15(e) of the Securities Exchange Act of 1934, or the Exchange Act. This term refers to the controls and procedures of a company that are designed to ensure that information required to be disclosed by a company in the reports that it files or submits under the Exchange Act is recorded, processed, summarized and reported within the time periods specified by the Commission. Our management, including our Principal Executive Officer and Principal Financial Officer, has evaluated the effectiveness of our disclosure controls and procedures as of the end of the period covered by this Quarterly Report on Form 10-QSB. Based upon that evaluation, our Principal Executive Officer and Principal Financial Officer have concluded that our disclosure controls and procedures were effective as of the end of the period covered by this Quarterly Report on Form 10-QSB.
There were no changes to our internal control over financial reporting during our last fiscal quarter that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.
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(31) | Rule 13a-14(a)/Rule 15d-14(a) Certifications: | |
| (i) | Certification of Sandra Pautsky, Principal Executive Officer of the Company, filed herewith |
| (ii) | Certification of Carol J. Cooper, Principal Financial Officer of the Company, filed herewith. |
(32) |
| Section 1350 Certifications — Certifications of Sandra Pautsky, Principal Executive Officer of the Company, and Carol J. Cooper, Principal Financial Officer of the Company, filed herewith. |
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.
|
| OAKRIDGE ENERGY, INC. |
|
| (Registrant) |
|
|
|
Date: July 17, 2006 | By | /s/ Sandra Pautsky |
|
| Sandra Pautsky, President and Principal |
Date: July 17, 2006 | By | /s/ Carol J. Cooper |
|
| Carol J. Cooper, Principal Financial Officer |
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