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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K/A
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): May 22, 2001
THE WISER OIL COMPANY
(Exact name of registrant as specified in is charter)
Delaware 0-5426 55-0522128
(State or other jurisdiction (Commission (IRS Employer
of incorporation) File Number) Identification No.)
8115 Preston Road, Suite 400
Dallas, Texas 75225
(Address, including zip code, of principal executive offices)
Registrant's telephone number, including area code: (214) 265-0080
Not Applicable
(Former Name or Former Address, if Changed Since Last Report)
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THE WISER OIL COMPANY
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
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Table of Contents
Page
Item 7. Financial Statements, Pro Forma Financial Information and Exhibits........ 3
Financial Statements of Business Acquired............................. 3
Pro Forma Financial Information....................................... 3
Unaudited Pro Forma Combined Financial Statements,
Unaudited Pro Forma Combined Balance Sheet for The Wiser Oil
Company as of March 31, 2001................................. 5
Unaudited Pro Forma Combined Statement of Income for The Wiser
Oil Company for the three months ended March 31, 2001........ 6
Unaudited Pro Forma Combined Statement of Income for The Wiser
Oil Company for the year ended December 31, 2000............. 7
Unaudited Pro Forma Combined Balance Sheet for Invasion
Energy Inc. as of March 31, 2001............................. 8
Unaudited Pro Forma Combined Statement of Income for Invasion
Energy Inc.for the three months ended March 31, 2001......... 9
Unaudited Pro Forma Combined Statement of Income for Invasion
Energy Inc.for the year ended December 31, 2000.............. 9
Notes to Unaudited Pro Forma Combined Financial Statements...... 10
Exhibits........................................................ 12
Signatures......................................................................... 12
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This Current Report on Form 8-K/A constitutes an amendment to the Current Report
on Form 8-K filed on June 6, 2001, and amends and restates Item 7 (a) and (b) in
their entirety.
Item 7. Financial Statements, Pro Forma Financial Information and Exhibits.
(a) Financial statements of business acquired.
The unaudited financial statements of Invasion Energy, Inc. for the
year ended August 31, 2000 are included hereto as Exhibit 99.1.
(b) Pro forma financial information.
The unaudited pro forma combined balance sheet of the Company as of March 31,
2001, has been prepared to give effect to the acquisition of the common shares
of Invasion Energy Inc. (the "Acquisition") as if such transaction had occurred
on March 31,
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2001, and was accounted for as a purchase in accordance with the provisions of
Accounting Principles Board Opinion No. 16, "Business Combinations."
The unaudited pro forma combined statements of income of the Company for the
three months ended March 31, 2001 and for the year ended December 31, 2000, have
been prepared to give effect to the Acquisition and certain events described
below with respect to Invasion as if the Acquisition and such events had
occurred on January 1, 2000.
The unaudited pro forma combined balance sheet and statements of income of
Invasion have been prepared to give effect to the following events affecting
Invasion: (i) the conversion to United States generally accepted accounting
principles and (ii) the recording of exploration expense in accordance with the
successful efforts method of accounting for Invasion's oil and gas properties.
The unaudited pro forma combined financial statements included herein are not
necessarily indicative of the results that might have occurred had the
transaction and other events taken place at the beginning of the period
specified and are not intended to be a projection of future results. In
addition, future results may vary significantly from the results reflected in
the accompanying unaudited pro forma combined financial statements because of
normal production declines, changes in product prices, future acquisitions and
divestitures, future development and exploration activities, and other factors
beyond the control of the Company.
The following unaudited pro forma combined financial statements should be read
in conjunction with (i) the Consolidated Financial Statements (and related
notes) of the Company in its Quarterly Report on Form 10-Q for the three months
ended March 31, 2001 and Annual Report on Form 10-K for the year ended December
31, 2000, and (ii) the Financial Statements (and related notes) of Invasion for
the year ended August 31, 2000.
The following is a description of the individual columns included in these
unaudited pro forma combined financial statements:
Historical Wiser Oil - Represents the consolidated balance sheet of the Company
as of March 31, 2001, and the consolidated statement of income of the Company
for the three months ended March 31, 2001 and for the year ended December 31,
2000, as included in the Company's Quarterly Report on Form 10-Q and Annual
Report on Form 10-K.
Historical Invasion - Represents the consolidated balance sheet of Invasion as
of March 31, 2001, and the consolidated statement of income of Invasion for the
three months ended March 31, 2001 and for the year ended December 31, 2000
converted to United States generally accepted accounting principles and United
States dollars.
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THE WISER OIL COMPANY
UNAUDITED PRO FORMA COMBINED BALANCE SHEET
As of March 31, 2001
(000's)
Pro Forma
Historical Pro Forma Combined Pro Forma
Wiser Oil Invasion Adjustments Combined
----------- ---------- ------------ ----------
Assets
Current Assets:
Cash and cash equivalents............................. $ 37,511 $ 658 (22,620) (a) 15,549
Restricted cash....................................... 3,974 -- 3,974
Accounts receivable................................... 13,250 3,633 (19) (a) 16,864
Inventories........................................... 417 125 542
Fair value of derivatives............................. 617 -- 195 (a) 812
Prepaid expenses...................................... 1,978 472 2,450
--------- ------- ---------
Total current assets................................ 57,747 4,888 40,191
--------- ------- ---------
Property and Equipment, at cost:
Oil and gas properties (successful efforts method).... 287,370 30,025 17,927 (a) 335,322
Other properties...................................... 3,933 -- 3,933
--------- ------- ---------
291,303 30,025 339,255
Accumulated depreciation, depletion and amortization.. (132,757) (6,578) 6,578 (a) (132,757)
--------- ------- ---------
Net property and equipment............................ 158,546 23,447 206,498
Deferred Income Taxes................................... -- 193 (193) (a) --
Other Assets............................................ 3,185 347 (347) (a) 3,185
--------- ------- ---------
$ 219,478 $28,875 $ 249,874
========= ======= =========
Liabilities and Stockholders' Equity
Current Liabilities:
Accounts payable...................................... $ 8,207 $ 2,989 (252) (a) $ 10,944
Current portion of long-term debt..................... 500 7,398 (7,398) (a) 500
Dividends payable..................................... -- -- --
Fair value of derivatives............................. 430 -- 430
Accrued liabilities................................... 4,891 1,185 6,076
--------- ------- ---------
Total current liabilities............................ 14,028 11,572 17,950
--------- ------- ---------
Deferred Income Taxes................................... -- -- 11,546 (a) 11,546
Long-term Debt.......................................... 124,618 7,397 7,531 (a) 139,546
Stockholders' Equity:
Preferred stock....................................... 6,000 -- 6,000
Common stock.......................................... 93 -- 93
Paid-in capital....................................... 39,117 9,020 (9,020) (a) 39,117
Retained earnings..................................... 37,558 248 (248) (a) 37,558
Accumulated other comprehensive income................ 793 638 (638) (a) 793
Treasury stock, at cost............................... (2,729) -- (2,729)
--------- ------- ---------
Total stockholders' equity........................... 80,832 9,906 80,832
--------- ------- ---------
$ 219,478 $28,875 $ 249,874
========= ======= =========
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THE WISER OIL COMPANY
UNAUDITED PRO FORMA COMBINED STATEMENT OF INCOME
For the three months ended March 31, 2001
(000's)
Pro Forma
Historical Pro Forma Combined Pro Forma
Wiser Oil Invasion Adjustments Combined
----------- --------- ------------ ----------
Revenues:
Oil and gas sales.......................... $23,829 $6,511 $30,340
Interest income............................ 540 27 567
Other...................................... 130 27 157
------- ------ ---------
24,499 6,565 31,064
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Costs and Expenses:
Production and operating................... 6,890 1,597 8,487
Depreciation, depletion and amortization... 4,191 877 476 (b) 5,544
Exploration................................ 2,246 9 2,255
General and administrative................. 1,918 403 2,321
Interest expense........................... 3,158 348 (25) (c) 3,481
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18,403 3,234 22,088
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Earnings (Loss) Before Income Taxes.......... 6,096 3,331 8,976
Income Tax Expense (Benefit)................. -- 1,466 (198) (d) 1,268
------- ------ ---------
Net Income (Loss)............................ 6,096 1,865 7,708
Preferred Stock Dividends.................... (259) -- (259)
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Net Income (Loss) Available to Common Stock.. $ 5,837 $1,865 $ 7,449
======= ====== =========
Weighted Average Outstanding Shares:
Basic...................................... 9,081 9,081
======= =========
Diluted.................................... 12,753 12,753
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Earnings (Loss) Per Share:
Basic...................................... $0.64 $0.82
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Diluted.................................... $0.48 $0.60
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THE WISER OIL COMPANY
UNAUDITED PRO FORMA COMBINED STATEMENT OF INCOME
For the year ended December 31, 2000
(000's)
Pro Forma
Historical Pro Forma Combined Pro Forma
Wiser Oil Invasion Adjustments Combined
----------- ---------- ------------ ----------
Revenues:
Oil and gas sales.......................... $67,016 $10,487 $77,503
Interest income............................ 1,794 32 1,826
Gain on sales of properties................ 74 -- 74
Other...................................... 849 88 937
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69,733 10,607 80,340
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Costs and Expenses:
Production and operating................... 24,125 4,790 28,915
Depreciation, depletion and amortization... 15,637 5,532 5,472 (b) 26,641
Property impairments....................... 680 -- 680
Exploration................................ 3,792 574 4,366
General and administrative................. 8,720 1,925 10,645
Interest expense........................... 12,659 1,548 (167) (c) 14,040
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65,613 14,369 85,287
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Earnings (Loss) Before Income Taxes.......... 4,120 (3,762) (4,947)
Income Tax Expense (Benefit)................. -- (1,655) (2,334) (d) (3,989)
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Net Income (Loss)............................ 4,120 (2,107) (958)
Preferred Stock Dividends.................... (633) -- (633)
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Net Income (Loss) Available to Common Stock.. $ 3,487 $(2,107) $(1,591)
======= ======= =========
Weighted Average Outstanding Shares:
Basic...................................... 8,963 8,963
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Diluted.................................... 11,090 11,090
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Earnings (Loss) Per Share:
Basic...................................... $0.39 $(0.18)
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Diluted.................................... $0.37 $(0.18)
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INVASION ENERGY INC.
UNAUDITED PRO FORMA BALANCE SHEET
As of March 31, 2001
(000's)
Historical Pro Forma Pro Forma
Invasion Adjustments Invasion
----------- ------------ ----------
Assets
Current Assets:
Cash and cash equivalents............................. $ 658 $ 658
Accounts receivable................................... 3,633 3,633
Inventories........................................... 125 125
Prepaid expenses...................................... 472 472
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Total current assets................................ 4,888 4,888
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Property and Equipment, at cost:
Oil and gas properties................................ 31,012 (987) (e) 30,025
Accumulated depreciation, depletion and amortization.. (6,881) 303 (e) (6,578)
------- ---------
Net property and equipment............................ 24,131 23,447
Deferred Income Taxes................................... 60 133 (i) 193
Other Assets............................................ 347 347
------- ---------
$29,426 $28,875
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Liabilities and Stockholders' Equity
Current Liabilities:
Accounts payable...................................... $ 2,989 $ 2,989
Current portion of long-term debt..................... 7,398 7,398
Accrued liabilities................................... 1,185 1,185
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Total current liabilities............................ 11,572 11,572
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Long-term Debt.......................................... 7,397 7,397
Stockholders' Equity:
Paid-in capital....................................... 9,020 9,020
Retained earnings..................................... 799 (551) (f) 248
Accumulated other comprehensive income................ 638 638
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Total stockholders' equity........................... 10,457 9,906
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$29,426 $28,875
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INVASION ENERGY INC.
UNAUDITED PRO FORMA STATEMENT OF INCOME
For the three months ended March 31, 2001
(000's)
Historical Pro Forma Pro Forma
Invasion Adjustments Invasion
---------- ------------ ---------
Revenues:
Oil and gas sales.......................... $6,511 $6,511
Interest income............................ 27 27
Other...................................... 27 27
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6,565 6,565
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Costs and Expenses:
Production and operating................... 1,597 1,597
Depreciation, depletion and amortization... 920 (43)(g) 877
Exploration................................ -- 9 (h) 9
General and administrative................. 403 403
Interest expense........................... 348 348
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3,268 3,234
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Earnings (Loss) Before Income Taxes.......... 3,297 3,331
Income Tax Expense (Benefit)................. 1,460 6 (d) 1,466
------ ---------
Net Income (Loss) Available to Common Stock.. $1,837 $1,865
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INVASION ENERGY INC.
UNAUDITED PRO FORMA STATEMENT OF INCOME
For the year ended December 31, 2000
(000's)
Historical Pro Forma Pro Forma
Invasion Adjustments Invasion
----------- ------------ ----------
Revenues:
Oil and gas sales.......................... $10,487 $10,487
Interest income............................ 32 32
Other...................................... 88 88
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10,607 10,607
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Costs and Expenses:
Production and operating................... 4,790 4,790
Depreciation, depletion and amortization... 5,792 (260)(g) 5,532
Exploration................................ -- 574 (h) 574
General and administrative................. 1,925 1,925
Interest expense........................... 1,548 1,548
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14,055 14,369
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Earnings (Loss) Before Income Taxes.......... (3,448) (3,762)
Income Tax Expense (Benefit)................. (1,517) (138)(d) (1,655)
------- ---------
Net Income (Loss) Available to Common Stock.. $(1,931) $(2,107)
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The Wiser Oil Company
Notes to Unaudited Pro Forma Combined Financial Statements
1. Acquisition of Invasion
The aggregate purchase price is computed as follows (000's):
Aggregate
Purchase Price
--------------
Aggregate purchase price for 100% of
Invasion Common Stock................ $21,419
Nonrecurring cash transaction costs... 1,201
-------
Aggregate purchase price.............. $22,620
=======
The following table represents the preliminary allocation of the total purchase
price of Invasion to the acquired assets and liabilities of Invasion. The
allocation represents the fair values that would have been assigned to each of
the significant assets acquired and liabilities assumed as if the Acquisition
had occurred on March 31, 2001. Any future adjustments to the allocation of the
purchase price are not anticipated to be material to the unaudited pro forma
combined financial statements.
Allocation of
Aggregate
Purchase Price
--------------
Net working capital....... $ 1,142
Property and equipment.... 47,952
Long-term debt............ (14,928)
Deferred income taxes..... (11,546)
--------
Aggregate purchase price.. $ 22,620
========
2. Pro Forma Entries
The following items are included in the preparation of the pro forma financial
statements:
(a) To record the acquisition of Invasion using the purchase method of
accounting. The allocation of the purchase price to the acquired assets and
liabilities is preliminary and, therefore, subject to change. Any future
adjustments to the allocation of the purchase price are not anticipated to
be material to the Company's financial statements.
(b) To increase depreciation, depletion and amortization expense for the
additional basis allocated to the oil and gas properties acquired and
accounted for using the successful efforts method of accounting.
(c) To reduce interest expense resulting from the borrowing of the funds
necessary to consummate the Acquisition. The Company's incremental
borrowing interest rates of 9.25% for the year 2000, and 8.63% for the
three months ended March 31, 2001 were utilized to determine the additional
pro forma interest expense.
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(d) To adjust income tax expense for pro forma adjustments by tax jurisdiction.
(e) To reduce property and equipment for Invasion's conversion from the full
cost method of accounting to the successful efforts method of accounting
for Invasion's oil and gas properties.
(f) To reduce retained earnings for Invasion's conversion from the full cost
method of accounting to the successful efforts method of accounting for
Invasion's oil and gas properties, net of income taxes.
(g) To reduce depreciation, depletion and amortization expense for conversion
from the full cost method of accounting to the successful efforts method of
accounting for Invasion's oil and gas properties.
(h) To record exploration expense for Invasion's conversion to the successful
efforts method of accounting.
(i) To adjust deferred income taxes for pro forma adjustments by tax
jurisdiction.
The Company will prepare separate tax calculations for each tax jurisdiction in
which the Company will be subject to income taxes.
3. Pro Forma Oil and Gas Reserve Data
The following table reflects the pro forma estimated quantities of proved and
proved developed oil and gas reserves as included in the Company's 2000 Annual
Report on Form 10-K. The Company considers such estimates to be reasonable;
however, there are numerous uncertainties inherent in estimated quantities of
proved reserves, including many factors beyond the control of the Company.
Reserve engineering is a subjective process which is dependent on the quality of
available data and on engineering and geological interpretation and judgment.
Such reserve estimates are subject to change over time, as additional
information becomes available. Quantities of natural gas are expressed in terms
of million cubic feet ("MMcf"). Oil and natural gas liquids ("NGL's") are
quantified in terms of thousands of barrels ("MBbl"). One Bbl of oil or natural
gas liquids is the energy equivalent of six Mcf of natural gas ("BOE").
Pro Forma Combined Reserves and Production
For the year ended December 31, 2000
(MBOE)
The Wiser Oil Invasion
Company Energy Inc. Combined
-------------- ------------ ---------
Proved reserves, end of year 37,176 3,875 41,051
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Proved developed reserves, end of year 35,662 3,543 39,205
------ ----- ------
2000 pro forma production (3,209) (671) (3,880)
------ ----- ------
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Pro Forma Combined Reserves and Production by Product
For the year ended December 31, 2000
Oil & NGL's Gas
(MBBL) (MMCF)
------ --------
Proved reserves, end of year 24,499 99,310
------ -------
Proved developed reserves, end of year 23,604 93,656
------ -------
2000 pro forma production (1,719) (12,965)
------ -------
(c) Exhibits
Item Exhibits
---- --------
99.1* Unaudited Financial Statements of Invasion Energy Inc.
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*filed herewith
SIGNATURE
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.
THE WISER OIL COMPANY
Date: August 6, 2001 By: /s/ George K. Hickox, Jr.
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George K. Hickox, Jr.
Chairman and Chief Executive Officer
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