MONTHLY OPERATING REPORT
CHAPTER 11
CASE NAME: Fortune Natural Resources Corporation
CASE NUMBER: 04-14112
----------------------------
For Period June 1, 2004 to June 30, 2004
- --------------------------------------------------------------------------------
THIS REPORT IS DUE 15 DAYS AFTER THE END OF THE MONTH. The debtor must attach
each of the following forms unless the United States Trustee has waived the
requirement in writing. File with the court and submit a paper copy to UST with
an original signature.
- --------------------------------------------------------------------------------
Report/Document Previously
Attached Waived REQUIRED REPORTS/DOCUMENT
- --------------------------------------------------------------------------------
(mark only one - attached or waived)
{X} { } Comparative Balance Sheet (FORM 2-B)
{X} { } Profit and Loss Statement (FORM 2-C)
{X} { } Cash Receipts & Disbursements Statement (FORM 2-D)
{X} { } Supporting Schedules (FORM 2-E)
{X} { } Narrative (FORM 2-F)
{ } { } Copies of Bank Statement(s) and Reconciliations
of Bank Balance to Book Balance for all Account(s)
- --------------------------------------------------------------------------------
I declare under penalty of perjury that the following Monthly Financial Report
and any attachments thereto, are true and correct to the best of my knowledge
and belief.
Executed on: July 15, 2004 Debtor(s)*: Fortune Natural Resources Corporation
------------- -------------------------------------
By:** s/s Dean Drulias
-------------------------------------
Position: Corporate Secretary
-------------------------------------
Telephone No.
of Preparer (210) 275-7042
-------------------------------------
*both debtors must sign if a joint petition
** for corporate or partnership debtor
FORM 2-A
01/04
CASE NAME: FORTUNE NATURAL RESOURCES CORPORATION
CASE NUMBER: 04-14112
COMPARATIVE BALANCE SHEET
Filing
Date
6/1/2004 Jun-04 Jul-04 Aug-04 Sep-04 Nov-04
---------- ---------- ---------- ---------- ---------- ----------
ASSETS
CURRENT ASSETS
Cash 20,635 9,702
Accounts Receivable, Net 84,778 97,316
Inventory, at lower of cost or market -
Prepaid expenses & deposits 13,385
Other -
---------- ---------- ---------- ---------- ---------- ----------
Total Current Assets 118,798 107,018 - - - -
PROPERTY, PLANT & EQUIPMENT 31,246,741 31,246,741
Less accumulated
depreciation/depletion 25,420,859 25,420,859
---------- ---------- ---------- ---------- ---------- ----------
NET PROPERTY, PLANT & EQUIPMENT 5,825,881 5,825,881 - - - -
OTHER ASSETS -
TOTAL OTHER ASSETS - - - - - -
---------- ---------- ---------- ---------- ---------- ----------
TOTAL ASSETS 5,944,680 5,932,900 - - - -
========== ========== ========== ========== ========== ==========
If assets are carried at historical cost on debtor's accounting records and
debtor elects to show them as such on the monthly reports, note the change above
and include remarks on FORM 2-F (Narrative). All subsequent reports must then
carry these assets at that value. Do not use historical cost one month and fair
market value the next.
FORM 2-B
Page 1 of 2
01/04
CASE NAME: FORTUNE NATURAL RESOURCES CORPORATION
CASE NUMBER: 04-14112
COMPARATIVE BALANCE SHEET
Filing
Date
6/1/2004 Jun-04 Jul-04 Aug-04 Sep-04 Nov-04
---------- ---------- ---------- ---------- ---------- ----------
LIABILITIES
Post-Petition Liabilities 15,109
Taxes Payable (FORM 2-E, P.1 of 3) -
Taxes Payable (FORM 2-E, P.1 of 3)
Other
---------- ---------- ---------- ---------- ---------- ----------
TOTAL POST-PETITION LIABILITIES - 15,109 - - - -
========== ========== ========== ========== ========== ==========
PRE-PETITION LIABILITIES
Notes Payable - Secured 3,204,031 3,204,031
Priority Debt 9,300 9,300
Unsecured Debt 2,904,392 2,901,546
Other Interest 47,409
---------- ---------- ---------- ---------- ---------- ----------
TOTAL LIABILITIES 6,117,723 6,177,394 - - - -
========== ========== ========== ========== ========== ==========
EQUITY (DEFICIT)
Preferred Debt 260,000 260,000
Common Stock 177,927 177,927
Paid-in Capital 31,635,925 31,635,925
Retained Earnings (32,246,895) (32,318,347)
Through Filing Period
Post Filing date
TOTAL EQUITY (NET WORTH) (173,043) (244,495) - - - -
---------- ---------- ---------- ---------- ---------- ----------
TOTAL LIABILITIES & EQUITY 5,944,680 5,932,900 - - - -
========== ========== ========== ========== ========== ==========
FORM 2-B
Page 2 of 2
01/04
CASE NAME: FORTUNE NATURAL RESOURCES CORPORATION
CASE NUMBER: 04-14112
PROFIT AND LOSS STATEMENT
Filing
Date
6/1/2004 Jun-04 Jul-04 Aug-04 Sep-04 Nov-04
---------- ---------- ---------- ---------- ---------- ----------
NET REVENUE 305,531 39,171
COST OF OPERATIONS
Production/severance taxes 13,656 2,276
Other revenue deductions 4,975 829
Lease operating expense/workover 138,797 23,133
---------- ---------- ---------- ---------- ---------- ----------
TOTAL COST OF OPERATIONS 157,428 26,238 - - - -
GROSS PROFIT 148,103 12,933 - - - -
OPERATING EXPENSE
Selling and Marketing
General & Administrative (Rents,
utilities, salaries, etc.) 140,694 36,976
Other 6,665
---------- ---------- ---------- ---------- ---------- ----------
TOTAL OPERATING EXPENSES 147,360 36,976 - - - -
Operating Income 744 (24,043)
Interest Expense 284,454 47,409
Depreciation and Amortization
Income Tax Expense (Benefit)
Extraordinary Expenses*
---------- ---------- ---------- ---------- ---------- ----------
NET INCOME (LOSS) (283,710) (71,452) - - - -
========== ========== ========== ========== ========== ==========
*Requires explanation in NARRATIVE (FORM 2-F)
FORM 2-C
Page 1 of 1
01/04
CASE NAME: FORTUNE NATURAL RESOURCES CORPORATION
CASE NUMBER: 04-14112
CASH RECEIPTS AND DISBURSEMENTS STATEMENTS
For Period June 1 to June 30, 2004
CASH RECONCILIATION
1. Beginning Cash Balance (Ending Cash
Balance from last month's report) $ 20,635.27
------------
2. Cash Receipts (total Cash Receipts from
page 2 of all FORM 2-D's) $ 9,359.33
------------
3. Cash Disbursements (total Cash Disbursements
from Page 3 of all FORM 2-D's) $ 20,292.75
------------
4. Net Cash Flow $ (10,933.42)
------------
5. Ending Cash Balance (to FORM 2-B) $ 9,701.85
============
CASH SUMMARY - ENDING BALANCE
Financial
Amount* Institution
------------ ------------
1. Real Estate Account
2. Trust Account $ (165.00)
3. Operating and/or Personal Account $ 2,508.32
4. Payroll Account $ 4,398.95
5. Tax Account
6. Other Savings (Specify checking or savings) $ 2,852.48
7. Cash Collateral Account
8. Petty Cash $ 107.10
------------
Total (must agree with line 5 above) $ 9,701.85
*These amounts should be equal to the previous month's balance for the account
plus this month's receipts less this month's disbursements.
================================================================================
ADJUSTED CASH DISBRUSEMENTS
- ---------------------------
Cash disbursements on line 3 above less
Inter-account transfers & UST fees paid $ 15,694.56
============
Note: This amount should be used to determine UST quarterly fees
due.
FORM 2-D
Page 1 of 4
01/04
CASE NAME: FORTUNE NATURAL RESOURCES CORPORATION
CASE NUMBER: 04-14112
QUARTERLY FEE SUMMARY (1)
Payment Cash Quarterly Check
Date Disbursements Fee Due No. Date
- ------------ ----------- --------- ---------- ----------
January - -
February - -
March - -
----------- ---------
1st Quarter - $ -
=========== ========= ---------- ----------
April - -
May - -
June 15,695 500.00
----------- ---------
2nd Quarter 15,695 $ 500.00
=========== ========= ---------- ----------
July - -
August - -
September - -
----------- ---------
3rd Quarter - $ -
=========== ========= ---------- ----------
October - -
November - -
December - -
----------- ---------
4th Quarter - $ -
=========== ========= ---------- ----------
================================================================================
FEE SCHEDULE
Quarterly Fee
Disbursement Category Due
Less than $ 15,000.00 $ 250
$ 15,000.00 - $ 74,999.99 $ 500
$ 75,000.99 - $ 149,999.99 $ 750
$ 150,000.00 - $ 224,999.99 $ 1,250
$ 225,000.00 - $ 299,999.99 $ 1,500
$ 300,000.00 - $ 999,999.99 $ 3,750
$1,000,000.00 - $1,999,999.99 $ 5,000
$2,000,000.00 - $2,999,999.99 $ 7,500
$3,000,000.00 - $4,999,999.99 $ 8,000
$5,000,000.00 - and above $10,000
Note that a minimum payment of $250 is due each quarter even if no disbursements
are made in the case during the period.
- --------------------------------------------------------------------------------
(1) This summary is to reflect the current calendar year's information
cumulative to the end of the reporting period.
(2) Should agree with "adjusted cash disbursements" at bottom of Form 2-D,
Page 1 of 4. Disbursements are net of transfers to other debtor in
possession bank accounts and net of payments of prior period quarterly fees.
FORM 2-D
Page 2 of 4
01/04
CASE NAME: FORTUNE NATURAL RESOURCES CORPORATION
CASE NUMBER: 04-14112
CASH RECEIPTS AND DISBURSEMENTS STATEMENT
(This form should be completed for each type of account
listed on page 1 of FORM2-D that the debtor maintained during the month.)
For Period June 1 to June 30, 2004.
Account Name: ______________________________ Account Number: _______________
CASH RECEIPT JOURNAL
(attach additional sheets as necessary)
Date Description (Source) Amount
SEE ATTACHED CASH AND DISBURSEMENTS SHEET
Total Cash Receipts $__________
FORM 2-D
Page 3 of 4
01/04
CASE NAME: FORTUNE NATURAL RESOURCES CORPORATION
CASE NUMBER: 04-14112
SUPPORTING SCHEDULES
For Period June 1 to June 30, 2004.
INSURANCE SCHEDULE
Date of Premium
Type Carrier/Agent Coverage ($) Expiration Paid
---- ------------------ ------------ ------------ --------
Workers' Compensation
------------------ ------------ ------------ --------
General Liability
------------------ ------------ ------------ --------
Property (Fire, Theft)
------------------ ------------ ------------ --------
Vehicle
------------------ ------------ ------------ --------
Other (list):
------------------ ------------ ------------ --------
- --------------------- ------------------ ------------ ------------ --------
- --------------------- ------------------ ------------ ------------ --------
- --------------------- ------------------ ------------ ------------ --------
- --------------------- ------------------ ------------ ------------ --------
- --------------------- ------------------ ------------ ------------ --------
- --------------------- ------------------ ------------ ------------ --------
(1) Attach copy of certificate of insurance or declaration page of policy for
any coverage renewed or replaced during the current reporting month.
(2) For the period paid column enter "yes" if payment of premium is current or
"no" if premium payment is delinquent. If "no", explain on Form 2-F,
Narrative.
FORTUNE IS IN THE PROCESS OF OBTAINING THE ABOVE REQUIRE INSURANCE.
FORM 2-E
Page 3 of 3
CASE NAME: Fortune Natural Resources Corporation CASE NUMBER: 04-14112
------------------------------------- --------
N A R R A T I V E
For Period June 1, to June 30, 2004
Please provide a brief description of the significant business and legal action
by the debtor, its creditors or the court during the reporting period. Comments
should include any change in bank accounts, explanation of extraordinary
expenses, and purpose of any new post-petition financing. Comments should also
include debtor's efforts during the month to rehabilitate the business and to
develop a plan.
The Debtor is negotiating with various parties relative to DIP loans, a cure of
- --------------------------------------------------------------------------------
the rights under the Exploration Agreement and a farmout of rights under the
- --------------------------------------------------------------------------------
corporation agreement. The matters have been heard by the Bankruptcy Court and
- --------------------------------------------------------------------------------
future hearings will be held to determine the outcome of the
- --------------------------------------------------------------------------------
negotiations.
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
FORM 2-F
01/04
BANK ACCOUNTS
RECEIPTS AND DISBURSEMENTS
Jun-04
Account Account Beginning Ending
Name Name Balance Debits Credits Balance
--------------------- ------------ ------------ ------------ ------------ ------------
A Debtor In Possession 653 521 450 $ 0 $ 165.00 $ 0 $ (165.00)
B Operating Account 188 386 4181 $ 17,443.40 $ 15,529.56 $ 594.48 $ 2,508.32
C Payroll 182 076 0179 $ 232.29 $ 4,598.19 $ 8,764.85 $ 4,398.95
D Prospect/Well 637 769 506 $ 2,852.48 $ 0 $ 0 $ 2,852.48
E Revenue Distribution 652 197 690 $ 0 $ 0 $ 0 $ 0
F FPXA 653 521 336 $ 0 $ 0 $ 0 $ 0
G FPXA Debt Repayment 652 197 807 $ 0 $ 0 $ 0 $ 0
Transactions Debits Credits
--------------------- ------------ ------------
A Expense Check printing fee $ 165.00 $ 0
------------ ------------
$ 165.00 $ 0
------------ ------------
B Revenue Gibraltar $ 383.06
Income Sublessee rent $ 200.13
Income Bois d'Arc $ 11.29
Transfer To payroll account $ 2,242.71
Expense Account analysis fee $ 194.52
Transfer To payroll account $ 2,355.48
Expense Check #3897 $ 8,703.01
Expense Check #3898 $ 1,493.41
Expense Check #3899 $ 515.43
Expense Check #3900 $ 25.00
------------ ------------
$ 15,529.56 $ 594.48
------------ ------------
C Transfer From operating $ 2,242.71
Transfer From operating $ 2,355.48
Wire Transfer Eland advance $ 4,166.66
Expense Payroll processing $ 112.77
Expense Payroll $ 1,539.87
Expense Payroll taxes $ 615.43
Expense Payroll $ 1,539.87
Expense Payroll taxes $ 615.43
Expense Check #10722 $ 87.41
Expense Check #10724 $ 87.41
------------ ------------
$ 5,498.19 $ 8,764.85
------------ ------------
D No deposits or credits
E No deposits or credits
F No deposits or credits
G No deposits or credits