United States
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-QSB/A
[X] QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended June 30, 1996
OR
[ ] TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the transition period from...............to...............
Commission file number 0-15433
ENEX OIL & GAS INCOME PROGRAM III - SERIES 1, L.P.
(Exact name of small business issuer as specified in its charter)
New Jersey 76-0179821
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
Suite 200, Three Kingwood Place
Kingwood, Texas 77339
(Address of principal executive offices)
Issuer's telephone number:
(713) 358-8401
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
Transitional Small Business Disclosure Format (Check one):
Yes No x
PART I. FINANCIAL INFORMATION
Item 1. Financial Statements
ENEX OIL & GAS INCOME PROGRAM III - SERIES 1, L.P.
BALANCE SHEET
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JUNE 30,
ASSETS 1996
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(Unaudited)
CURRENT ASSETS:
Cash $ 3,747
Accounts receivable - oil & gas sales 14,595
Other current assets 1,186
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Total current assets 19,528
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OIL & GAS PROPERTIES
(Successful efforts accounting method) - Proved
mineral interests and related equipment & facilities 1,151,492
Less accumulated depreciation and depletion 912,391
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Property, net 239,101
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TOTAL $ 258,629
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LIABILITIES AND PARTNERS' CAPITAL (DEFICIT)
CURRENT LIABILITIES:
Accounts payable $ 3,508
Payable to general partner 18,447
---------------------
Total current liabilities 21,955
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NONCURRENT PAYABLE TO GENERAL PARTNER 210,242
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PARTNERS' CAPITAL (DEFICIT):
Limited partners (21,858)
General partner 48,290
---------------------
Total partners' capital 26,432
---------------------
TOTAL $ 258,629
=====================
Number of $500 Limited Partner units outstanding 2,978
See accompanying notes to financial statements.
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I-1
Lease operating expenses incurred during the first six months decreased to
$12,004 in 1996 from $15,364 in 1995. The decrease of $3,360 (22%) is primarily
due from the settlement of the Company's equity investment in an electric
cooperative which resulted from the purchase of electricity used on the Florida
acquisition while it was owned by the Company.
Depreciation and depletion expense decreased to $21,969 in the first six months
of 1996 from $29,657 in the first six months of 1995. This represents a decrease
of $7,688 (26%). A 21% decrease in the depletion rate reduced depreciation and
depletion expense by $5,941. The changes in production, noted above, reduced
depreciation and depletion by an additional $1,747. The decrease in the
depletion rate is primarily the result of an upward revision of the oil and gas
reserves during December 1995.
General and administrative expenses increased to $14,056 in the first six months
of 1996 from $7,953 in the first six months of 1995. This increase of $6,103 is
primarily due to more staff time being required to manage the Company's
operations.
CAPITAL RESOURCES AND LIQUIDITY
The Company's cash flow is a direct result of the amount of net proceeds
realized from the sale of oil and gas production and the issuance of additional
debt. Accordingly, the changes in cash flow from 1995 to 1996 are primarily due
to the changes in oil and gas sales described above and the repayment of $10,204
on a note to the general partner in 1995. It is the general partner's intention
to distribute substantially all of the Company's remaining available cash flow
to the Company's partners. The Company's "available cash flow" is essentially
equal to the net amount of cash provided by operating activities.
On August 9, 1996, the Company's General Partner submitted preliminary proxy
material to the Securities Exchange Commission with respect to a proposed
consolidation of the Company with 33 other managed limited partnerships. The
terms and conditions of the proposed consolidation are set forth in such
preliminary proxy material.
The Company discontinued the payment of distributions in January 1994. Future
distributions are dependent upon, among other things, an increase in the prices
received for oil and gas. The Company will continue to recover its reserves and
reduce its obligations in 1996. Based on the December 31, 1995 reserve report
prepared by Gruy, there appears to be sufficient future net revenues to pay all
obligations and expenses. The General Partner does not intend to accelerate the
repayment of the debt beyond the Company's cash flow provided by operating
activities. Based upon current projected cash flows from its property, it does
not appear that the Company will have sufficient cash to pay its operating
expenses, repay its debt obligations and pay distributions in the near future.
As of June 30, 1996, the Company had no material commitments for capital
expenditures. The Company does not intend to engage in any significant
developmental drilling activity.
I-6
SIGNATURES
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.
ENEX OIL & GAS INCOME
PROGRAM III - SERIES 1, L.P.
----------------------------
(Registrant)
By:ENEX RESOURCES CORPORATION
--------------------------
General Partner
By: /s/ R. E. Densford
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R. E. Densford
Vice President, Secretary
Treasurer and Chief Financial
Officer
November 7, 1996 By: /s/ James A. Klein
-------------------
James A. Klein
Controller and Chief
Accounting Officer