1
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, 1997
[ ] 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 No.)
Incorporation or 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
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PART I - FINANCIAL INFORMATION
Item 1. Financial Statements
PETROL INDUSTRIES, INC. & SUBSIDIARIES
Consolidated Balance Sheets
March 31, December 31,
1997 1996
ASSETS --------- ------------
------ (unaudited)
Current assets:
Cash and cash equivalents $ 217,375 218,355
Accounts receivable:
Trade 75,137 83,287
Other 9,497 9,497
--------- ---------
84,634 92,784
Inventory 52,460 47,647
Prepaid expenses 12,402 5,325
--------- ---------
Total current assets 366,871 364,111
--------- ---------
Property and equipment, at cost:
Land 7,000 7,000
Developed and undeveloped oil and gas properties-
successful efforts method 4,264,733 4,262,884
Trucks and other operating equipment 336,098 336,098
Furniture and fixtures 38,147 37,902
--------- ---------
4,645,978 4,643,884
Less accumulated depreciation, depletion and
amortization 4,589,427 4,587,912
--------- ---------
56,551 55,972
Cash surrender value of life insurance, net 53,251 50,476
Other assets 1,107 1,107
--------- ---------
$ 477,780 471,666
========= =========
LIABILITIES AND STOCKHOLDERS' DEFICIT
-------------------------------------
Current liabilities:
Accounts payable $ 43,532 51,064
Payable to interest owners 286,605 278,556
Payable to officer, net 288,091 241,255
Accrued expenses 129,781 115,720
--------- ---------
Total current liabilities 748,009 686,595
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 and
1,597,241 shares in 1997 and 1996 159,720 159,720
Accumulated deficit (429,949) (374,649)
--------- ---------
Total stockholders' deficit (270,229) (214,929)
--------- ---------
$ 477,780 471,666
========= =========
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PETROL INDUSTRIES, INC. & SUBSIDIARIES
Consolidated Statements of Operations
Three months ended March 31, 1997 and 1996
(unaudited)
1997 1996
---- ----
Revenues:
Oil and gas sales $ 207,555 210,452
Other operating income 4,161 3,573
--------- ---------
211,716 214,025
--------- ---------
Expenses:
Lease operating expense 175,330 165,311
General and administrati 86,014 86,926
Depreciation, depletion and amortization 1,515 1,710
--------- ---------
262,859 253,947
--------- ---------
Operating loss (51,143) (39,922)
Other income and (expense):
Interest income 2,737 2,321
Interest expense (6,894) (4,608)
--------- ---------
(4,157) (2,287)
--------- ---------
Net loss $ (55,300) (42,209)
========= =========
Net loss per share (.04) (.03)
========= =========
Average common shares outstanding 1,597,196 1,597,241
========= =========
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PETROL INDUSTRIES, INC. & SUBSIDIARIES
Consolidated Statements of Cash Flows
Three months ended March 31, 1997 and 1996
(unaudited)
1997 1996
---- ----
Operating activities:
Net loss $ (55,300) (42,209)
Adjustments to reconcile net loss to net cash
used by operating activities:
Depreciation, depletion and amortization 1,515 1,710
Losses on retirements of property and
equipment included in lease operating expenses (1,850) ---
Changes in assets and liabilities:
Cash surrender value of life insurance (2,775) (2,775)
Accounts receivable 8,150 (4,325)
Inventory (4,813) (7,194)
Prepaid expenses (7,077) (2,177)
Accounts payable and accrued expenses 6,529 12,866
Payable to officer, net 46,836 40,604
Payable to interest owners 8,049 7,389
-------- --------
Net cash (used) provided by operating activities (736) 3,889
Investing activities:
Capital expenditures (244) ---
-------- --------
Net cash used by investing activities (244) ---
Increase (decrease) in cash and cash equivalents (980) 3,889
Cash and cash equivalents at beginning of period 218,355 170,012
-------- --------
Cash and cash equivalents at end of period $ 217,375 173,901
======== ========
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PETROL INDUSTRIES, INC. & SUBSIDIARIES
Consolidated Statements of Changes in Stockholders' Deficit
Three months ended March 31, 1997 and 1996
(unaudited)
1997 1996
---- ----
Stockholders' deficit at January 1 $ (214,929) (81,682)
Net loss for the three-month period (55,300) (42,209)
--------- ---------
Stockholders' deficit at March 31 $ (270,229) (123,891)
========= =========
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PETROL INDUSTRIES, INC. & SUBSIDIARIES
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 state-
ment 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 1996 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 1996 or 1995.
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. The
weighted average number of shares outstanding was determined by totaling
the number of shares outstanding at the end of each month and dividing
that total by the number of months.
Total Number of
Shares Outstanding
1997 1996
---- ----
January 31 1,597,196 1,597,241
February 28 1,597,196 1,597,241
March 31 1,597,196 1,597,241
4. The expected tax benefit resulting from operating losses for the first
three months of 1997 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, 1997.
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Item 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS
Oil and gas sales revenues were slightly lower during the first quarter
of 1997, caused principally by a slight decline in production due to excessive
amounts of rainfall as compared to the 1996 period. The Company's net loss
increased to $55,300, or ($.04) per share, compared to a net loss of $42,209,
or ($.03) per share in the 1996 period.
With an approximate 1.4% decrease in revenues and an approximate 3.5%
increase in expenses, the Company sustained an operating loss of $51,143 in
the first quarter of 1997, compared to an operating loss of $39,922 in the
first quarter of 1996. Oil prices averaged $20.91 per barrel during the first
quarter of 1997, compared to an average of $18.00 per barrel in the 1996
period.
The Company had cash and cash equivalents at March 31, 1997, of $217,375,
compared to $218,355 at the end of the 1996 fiscal year.
Management estimates that it owes $286,605 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.
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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 12, 1997
PETROL INDUSTRIES, INC.
Joseph M. Rodano
By:________________________________
Joseph M. Rodano
President and Treasurer
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EXHIBIT INDEX
Exhibit
No. Description
------- -----------
27 Financial Data Schedule