EXHIBIT 99.2
SEVEN SEAS PETROLEUM, INC.
CASE NO.: 02-45206-42
PETITION DATE: DECEMBER 20, 2002
UNITED STATES BANKRUPTCY COURT
SOUTHERN DISTRICT OF TEXAS
HOUSTON DIVISION
<Table>
CASE NAME: CASE NUMBER: CH 11 CONVERSION DATE: CH 11 TRUSTEE APPOINTED:
SEVEN SEAS PETROLEUM, INC. 02-45206-42 JANUARY 14, 2003 JANUARY 14, 2003
</Table>
TRUSTEE'S MONTHLY OPERATING REPORT SUMMARY FOR: FEBRUARY 2003
<Table>
<Caption>
MONTH JAN 2003 FEB 2003
----- ------------ ------------
REVENUES (MOR-6) 0 0
INCOME (LOSS) BEFORE INTEREST, DEPRECIATION,
OTHER ITEMS & INCOME TAXES (MOR-6) (177,000) (384,000)
NET INCOME (LOSS) (MOR-6) (265,000) (473,000)
PAYMENTS TO INSIDERS (MOR-9) NONE NONE
PAYMENTS TO PROFESSIONALS (MOR-9) NONE NONE
TOTAL DISBURSEMENTS (MOR-7) 1,687,781 1,496,000
</Table>
THE ORIGINAL OF THIS DOCUMENT MUST BE FILED WITH THE U.S. BANKRUPTCY COURT AND A
COPY MUST BE SENT TO THE U.S. TRUSTEE
<Table>
<Caption>
REQUIRED INSURANCE MAINTAINED EXPIRATION
AS OF SIGNATURE DATE DATE
----------
CHAPTER 11 TRUSTEE: Ben B. Floyd
CASUALTY YES(X) NO ( ) 12/31/2003 FIRM: Floyd, Isgur, Rios & Wahrlich, P.C.
LIABILITY YES(X) NO ( ) 12/31/2003 ADDRESS: 700 Louisiana, Suite 4600
VEHICLE YES(X) NO ( ) 12/31/2003 ADDRESS:
WORKERS' COMP YES(X) NO ( ) 12/31/2003 CITY, STATE, ZIP: Houston, TX 77002
OTHER __________ YES( ) NO ( ) - - TELEPHONE: (713) 222-1470
FACSIMILE: (713) 222-1475
</Table>
Are all accounts receivable being collected within terms? YES
Are all post-petition liabilities, including taxes, being paid within terms? YES
Have any pre-petition liabilities been paid? NO
If yes, describe:
Are all funds received being deposited into Trustee's bank accounts? DURING
JANUARY ALL FUNDS WERE DEPOSITED INTO THE DEBTOR'S ACCOUNTS PURSUANT TO INTERIM
CASH COLLATERAL ORDERS.
Were any assets disposed of outside the normal course of business? NO
If yes, describe:
Are all U.S. Quarterly Fee Payments current? YES, AS OF FILING DATE.
What is the status of the Plan of Reorganization? PENDING
I certify under penalty of perjury that the following complete Monthly Operating
Report (MOR), consisting of MOR-1 through MOR-9 plus attachments, is true and
correct.
SIGNED: DATE:
---------------------------------------------- ---------------------
BEN B. FLOYD, CHAPTER 11 TRUSTEE
Page 1 of 9
<Table>
CASE NAME: CASE NUMBER: CH 11 CONVERSION DATE: CH 11 TRUSTEE APPOINTED:
SEVEN SEAS PETROLEUM, INC. 02-45206-42 JANUARY 14, 2003 JANUARY 14, 2003
</Table>
COMPARATIVE BALANCE SHEETS (000'S)
<Table>
<Caption>
JAN 31, FEB 28,
ASSETS 2003 2003
------ ---------- ----------
CURRENT ASSETS
Cash 4,656 3,162
Accounts Receivable, Net 200 200A.
Inventory: Lower of Cost or Market 0 0
Prepaid Expenses 25 25
Investments in Subs 6,396 7,756
Other 2,285 2,193B.
TOTAL CURRENT ASSETS 13,562 13,336
Furniture, Equipment & Fixtures (*) 0 0C.
Less Accumulated Depreciation 0 0
Net Book Value of F&F 0 0
OTHER ASSETS:
1.
2.
3.
3.
TOTAL OTHER ASSETS
TOTAL ASSETS 13,562 13,336
</Table>
MOR-2
(*) PER MOR FILED BY THE DEBTOR
A. Note receivable due from Larry Ray in November 2003.
B. Capitalized costs related to debt issuance. Costs are amortized over
life of debt.
C. All furniture & equipment is held in the Debtor subsidiaries.
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<Table>
CASE NAME: CASE NUMBER: CH 11 CONVERSION DATE: CH 11 TRUSTEE APPOINTED:
SEVEN SEAS PETROLEUM, INC. 02-45206-42 JANUARY 14, 2003 JANUARY 14, 2003
</Table>
COMPARATIVE BALANCE SHEETS (000'S)
<Table>
<Caption>
LIABILITIES & JAN 31, FEB 28,
OWNERS EQUITY 2003 2003
------------- ---------- ----------
LIABILITIES:
POST-PETITION LIABILITIES (MOR-4) 71 318
PRE-PETITION LIABILITIES:
Notes Payable - Secured 45,000 45,000A.
Accrued Interest - Secured N/Ps 3,508 3,508E.
Priority Debts 0 0
Federal Income Tax 0 0B.
Accrued Liabilities 0 0
FICA/Withholding 0 0C.
Unsecured Debt 119,377 119,377D.
Other Liabilities 0 0
TOTAL LIABILITIES 167,956 168,203
MEMBERS' EQUITY (DEFICIT):
Preferred Stock 0 0
Common Stock 1 1
Additional Paid-In Capital 225,940 225,940
Retained Earnings (380,335) (380,808)F.
TOTAL OWNERS' EQUITY (154,394) (154,867)
TOTAL LIABILITIES & 13,562 13,336
OWNERS' EQUITY
</Table>
MOR-3
(*) PER MOR FILED BY THE DEBTOR
A. The $45M debt is considered secured debt for purposes of this
presentation.
B. A subsidiary of Debtor, SSPUSA, has not paid a 2003 tax prepayment as
of filing date.
C. Payroll is handled by a third party firm (Intuit payroll). Intuit
collects all payroll taxes and makes the payment.
D. Unsecured debt includes the $110M notes with accrued interest, the
unpaid pre-petition liabilities and the change of control agmts.
E. Payment to Secured noteholder's on 10/31/02 is assumed to be prepayment
of interest on secured debt. Interest stops accruing on 12/20/02.
F. O&G properties were written down to $20M in December '03 to the
estimated sales price. Liabilities were recorded for Change of Control
Agmts and E-2 P&A costs were accrued for in December 2003.
Page 3 of 9
<Table>
CASE NAME: CASE NUMBER: CH 11 CONVERSION DATE: CH 11 TRUSTEE APPOINTED:
SEVEN SEAS PETROLEUM, INC. 02-45206-42 JANUARY 14, 2003 JANUARY 14, 2003
</Table>
SCHEDULE OF POST-PETITION LIABILITIES (000'S)
<Table>
<Caption>
JAN 31, FEB 28,
2003 2003
---------- ----------
TRADE ACCOUNTS PAYABLE 4 60
TAXES PAYABLE:
Federal Payroll Taxes 0 0B.
State Payroll & Sales Taxes 0 0B.
Other Taxes 0 0A.
TOTAL TAXES PAYABLE 0 0
SECURED DEBT
ACCRUED INTEREST PAYABLE
ACCRUED PROFESSIONAL FEES:
Trustee Fees 33 43C.
Legal Fees 28 198D.
Accounting Fees 6 17E.
TOTAL ACCRUED PROFESSIONAL FEES 67 258
OTHER ACCRUED LIABILITIES:
1.
2.
3.
4.
TOTAL OTHER ACCRUED LIABILITIES
TOTAL POST-PETITION
LIABILITIES (MOR-3) 71 318
</Table>
MOR-4
A. A subsidiary of debtor, SSPUSA, will need to make 2003 tax prepayment.
B. Payroll is handled by a third party firm (Intuit payroll). Intuit
collects all payroll taxes and makes the payment.
C. Includes February 2003 fees for Floyd, Isgur.
D. Legal fees accrued for Andrews & Kurth and Fullbright for February
2003.
E. Accounting fees incurred for Smith & Henault in February 2003.
Page 4 of 9
<Table>
CASE NAME: CASE NUMBER: CH 11 CONVERSION DATE: CH 11 TRUSTEE APPOINTED:
SEVEN SEAS PETROLEUM, INC. 02-45206-42 JANUARY 14, 2003 JANUARY 14, 2003
</Table>
<Table>
<Caption>
AGING OF POST-PETITION LIABILITIES (000'S)
MONTH: FEBRUARY 2003
----------------------------------------------------------------------------------------------
TRADE FEDERAL STATE
ACCOUNTS PAYROLL PAYROLL & AD VALOREM
DAYS OUTSTANDING PAYABLE TAXES SALES TAXES TAXES OTHER TAXES
---------------- ----------- ----------- ----------- ----------- -----------
0-30 58
31-60 2
61-90
91 AND OVER
TOTAL 60 NONE NONE NONE NONE
</Table>
<Table>
<Caption>
AGING OF ACCOUNTS RECEIVABLE
MONTH: FEBRUARY 2003
- -----------------------------------------------
JAN FEB
DAYS OUTSTANDING 2003 2003
---------------- ---------- ----------
0-30
31-60
61-90
91 AND OVER
TOTAL NONE NONE
</Table>
MOR-5
Page 5 of 9
<Table>
CASE NAME: CASE NUMBER: CH 11 CONVERSION DATE: CH 11 TRUSTEE APPOINTED:
SEVEN SEAS PETROLEUM, INC. 02-45206-42 JANUARY 14, 2003 JANUARY 14, 2003
</Table>
STATEMENT OF INCOME (LOSS) (000'S)
<Table>
<Caption>
JAN FEB
2003 2003
---------- ----------
OPERATING REVENUE (MOR-1) 0 0
TOTAL COST OF REVENUES 0 0
GROSS PROFIT 0 0
OPERATING EXPENSES:
Selling & Marketing 0 0
General & Administrative 4 3
Insiders Compensation 0 0
Management Fee from Sub SSPUSA 140 123
Professional Fees 33 258
Other - U. S. Trustee fees 0 0
TOTAL OPERATING EXPENSES 177 384
INCOME BEFORE INTEREST, DEPRECIATION (177) (384)
OTHER ITEMS AND INCOME TAXES (MOR-1)
Interest expense 0 0
Amortization expense 92 92
Interest (income) (4) (3)
Other - Conversion fee 0 0
TOTAL INTEREST, DEPRECIATION & 88 89
OTHER ITEMS
NET INCOME BEFORE INCOME TAXES (265) (473)
FEDERAL INCOME TAXES 0 0
NET INCOME (LOSS) (MOR-1) (265) (473)
</Table>
A. No insiders were funded directly by Debtor. However, two insiders are
paid by SSPUSA, a susbsidiary of the Debtor. Larry Ray was paid $31,666
(salary), and Ron Lefaive was paid $13,750 for salary. Both were also
reimbursed for out-of-pocket expenses.
B. Includes interest on cash balances residing in SouthWest Bank of Texas
and interest on Larry Ray $200,000 note.
C. Interest stopped accruing on the companies debt on December 20, 2002,
the date of the bankruptcy filing.
MOR-6
Page 6 of 9
<Table>
CASE NAME: CASE NUMBER: CH 11 CONVERSION DATE: CH 11 TRUSTEE APPOINTED:
SEVEN SEAS PETROLEUM, INC. 02-45206-42 JANUARY 14, 2003 JANUARY 14, 2003
</Table>
STATEMENT OF CASH RECEIPTS & DISBURSEMENTS
<Table>
<Caption>
JAN FEB
2003 2003
---------- ----------
CASH - BEGINNING OF MONTH 3,951 4,655
CASH RECEIPTS:
Receipts from subsidiaries 1,769 0
Receipts of Cash from Restricted Account 620 0
Interest income 3 3
Other 0 0
TOTAL CASH RECEIPTS 2,392 3
DISBURSEMENTS FOR OPERATIONS:
Insurance 60 0
Distributions to Subsidiaries 1,584 1,474
Other Misc. 44 22
TOTAL DISBURSEMENTS FOR OPERATIONS 1,688 1,496
Professional fees (MOR-9) 0 0
U.S. Trustee fees 0 0
Other reorganization expenses 0 0
TOTAL DISBURSEMENTS 1,688 1,496
NET INCREASE (DECREASE) IN CASH FLOW 704 (1,493)
CASH - END OF MONTH (MOR-2) 4,655 3,162
</Table>
MOR-7
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<Table>
CASE NAME: CASE NUMBER: CH 11 CONVERSION DATE: CH 11 TRUSTEE APPOINTED:
SEVEN SEAS PETROLEUM, INC. 02-45206-42 JANUARY 14, 2003 JANUARY 14, 2003
</Table>
BANK ACCOUNT RECONCILIATION
FEBRUARY 2003
<Table>
<Caption>
BANK SWBT
-------------- -------------
ACCOUNT NUMBER 91569612**
-------------- -------------
ACCOUNT TYPE CONCENTRATION
-------------- -------------
ENDING BALANCE PER BANK 3,185
DEPOSITS IN TRANSIT 0
OUTSTANDING CHECKS (23)
ADJUSTED BANK BALANCE 3,162
CASH PER BOOKS 3,162
INTEREST INCOME NOT RECORDED 0
TRANSFERS TO ACCOUNT 0
TRANSFERS FROM ACCOUNT 0
DISBURSEMENTS NOT RECORDED 0
ENDING CASH PER BOOKS 3,162
</Table>
** Note that in February all Debtor cash was held in SouthWest Bank of Texas.
The Debtor has multiple accounts, but all activity sweeps into one concentration
account shown above. Additional Debtor subsidiary proceeds are held in Sterling
bank accounts and Colombian peso accounts.
MOR-8
Page 8 of 9
<Table>
CASE NAME: CASE NUMBER: CH 11 CONVERSION DATE: CH 11 TRUSTEE APPOINTED:
SEVEN SEAS PETROLEUM, INC. 02-45206-42 JANUARY 14, 2003 JANUARY 14, 2003
</Table>
PAYMENTS TO INSIDERS AND PROFESSIONALS
<Table>
<Caption>
JAN FEB
INSIDERS: NAME/POSITION/COMP. TYPE 2003 2003
- ---------------------------------- ------ ------
1. Larry A. Ray (President) NONE Note A.
2. Ronald A. Lefaive (CFO) NONE Note A.
3.
4.
5.
6.
TOTAL INSIDERS (MOR-1) NONE NONE
</Table>
<Table>
<Caption>
PROFESSIONALS JAN FEB
NAME/ORDER DATE 2003 2003
- ---------------------------------- ------ ------
1. None.
2.
3.
4.
5.
6.
TOTAL PROFESSIONALS (MOR-1) NONE NONE
</Table>
A. No insiders were funded directly by Debtor. However, two insiders are
paid by SSPUSA, a susbsidiary of the Debtor. Larry Ray was paid $31,666
for salary, and Ron Lefaive was paid $13,750 for salary. Both were also
reimbursed for out-of-pocket expenses.
Of the total disbursements shown for the month, list the amount paid to
insiders (as defined in Section 101(30)(A)-(F) of the U.S. Bankruptcy
Code) and the professionals. Also, for insiders identify the type of
compensation paid (e.g., salary, commission, bonus, etc.)
MOR-9
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