EXHIBIT 99.1
SEVEN SEAS PETROLEUM, INC.
CASE NO.: 02-45206-H2-11
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-H2-11 JANUARY 14, 2003 JANUARY 14, 2003
</Table>
TRUSTEE'S MONTHLY OPERATING REPORT SUMMARY FOR: OCTOBER 2003
<Table>
<Caption>
MONTH JAN 2003 FEB 2003 MAR 2003 APRIL 2003 MAY 2003 JUNE 2003
----- -------- -------- -------- ---------- -------- ---------
REVENUES (MOR-6) 0 0 0 0 0 0
INCOME (LOSS) BEFORE INTEREST, DEPRECIATION,
OTHER ITEMS & INCOME TAXES (MOR-6) (177,000) (384,000) (203,000) (106,000) (497,000) (213,000)
NET INCOME (LOSS) (MOR-6) (265,000) (473,000) (293,000) (197,000) (779,000) (305,000)
PAYMENTS TO INSIDERS (MOR-9) NONE NONE NONE NONE NONE NONE
PAYMENTS TO PROFESSIONALS (MOR-9) NONE NONE 55,000 50,000 0 0
TOTAL DISBURSEMENTS (MOR-7) 1,687,781 1,496,000 122,000 172,000 255,000 157,000
<Caption>
MONTH JULY 2003 AUGUST 2003 SEPT 2003 OCT 2003
----- --------- ----------- --------- --------
REVENUES (MOR-6) 0 0 0 0
INCOME (LOSS) BEFORE INTEREST, DEPRECIATION,
OTHER ITEMS & INCOME TAXES (MOR-6) (95,000) (453,000) (110,000) (63,000)
NET INCOME (LOSS) (MOR-6) (187,000) (545,000) (202,000) (155,000)
PAYMENTS TO INSIDERS (MOR-9) NONE NONE NONE NONE
PAYMENTS TO PROFESSIONALS (MOR-9) 0 825,000 181,000 12,000
TOTAL DISBURSEMENTS (MOR-7) 99,000 12,577,000 260,000 576,000
</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
----------
CASUALTY YES(X) NO ( ) 12/31/2003
LIABILITY YES(X) NO ( ) 12/31/2003
VEHICLE YES(X) NO ( ) 12/31/2003
WORKERS' COMP YES(X) NO ( ) 12/31/2003
OTHER YES( ) NO ( ) - -
----------
</Table>
CHAPTER 11 TRUSTEE: Ben B. Floyd
FIRM: Floyd, Isgur, Rios & Wahrlich, P.C.
ADDRESS: 700 Louisiana, Suite 4600
ADDRESS:
CITY, STATE, ZIP: Houston, TX 77002
TELEPHONE: (713) 222-1470
FACSIMILE: (713) 222-1475
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?
All funds are being deposited into accounts controlled by the Trustee. YES
Were any assets disposed of outside the normal course of business? NO
If yes, describe:
Are all U.S. Quarterly Fee Payments current? YES
What is the status of the Plan of Reorganization? TRUSTEE'S PLAN OF
REORGANIZATION WAS APPROVED AND EFFECTIVE AUGUST 14, 2003
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
Page 1 of 9
<Table>
CASE NAME: CASE NUMBER: CH 11 CONVERSION DATE: CH 11 TRUSTEE APPOINTED:
SEVEN SEAS PETROLEUM, INC. 02-45206-H2-11 JANUARY 14, 2003 JANUARY 14, 2003
</Table>
COMPARATIVE BALANCE SHEETS (000'S)
<Table>
<Caption>
ASSETS JAN 31, FEB 28, MAR 31, APRIL 30, MAY 31, JUNE 30 JULY 31 AUGUST 31 SEPT 30 OCT 31
2003 2003 2003 2003 2003 2003 2003 2003 2003 2003
------- ------- -------- --------- ------- ------- ------- --------- ------- -------
CURRENT ASSETS
Cash 4,656 3,162 3,063 2,892 2,637 2,480 2,383 1,415 1,155 577
Accounts Receivable, Net 200 200 200 200 10 10 10 10 10 10
Inventory: Lower of Cost or Market 0 0 0 0 0 0 0 0 0 0
Prepaid Expenses 25 25 16 16 16 16 16 16 16 16
Investments in Subs 6,396 7,756 7,722 7,808 7,808 7,846 7,857 0 0 0
Other 2,285 2,193 2,101 2,009 1,917 1,825 1,733 1,641 1,549 1,457
------ ------ ------ ------ ------ ------ ------ ------ ------ ------
TOTAL CURRENT ASSETS 13,562 13,336 13,102 12,925 12,388 12,177 11,999 3,082 2,730 2,060
Furniture, Equipment & Fixtures (*) 0 0 0 0 0 0 0 0 0 0
Less Accumulated Depreciation 0 0 0 0 0 0 0 0 0 0
------ ------ ------ ------ ------ ------ ------ ------ ------ ------
Net Book Value of F&F 0 0 0 0 0 0 0 0 0 0
OTHER ASSETS:
1.
2.
3.
3.
------ ------ ------ ------ ------ ------ ------ ------ ------ ------
TOTAL OTHER ASSETS
------ ------ ------ ------ ------ ------ ------ ------ ------ ------
TOTAL ASSETS 13,562 13,336 13,102 12,925 12,388 12,177 11,999 3,082 2,730 2,060
</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.
Page 2 of 9
<Table>
CASE NAME: CASE NUMBER: CH 11 CONVERSION DATE: CH 11 TRUSTEE APPOINTED:
SEVEN SEAS PETROLEUM, INC. 02-45206-H2-11 JANUARY 14, 2003 JANUARY 14, 2003
</Table>
COMPARATIVE BALANCE SHEETS (000'S)
<Table>
<Caption>
LIABILITIES & JAN 31, FEB 28, MAR 31, APRIL 30, MAY 31, JUNE 30, JULY 31, AUGUST 31, SEPT 30, OCT 31,
OWNERS EQUITY 2003 2003 2003 2003 2003 2003 2003 2003 2003 2003
------------- ------- ------- ------- --------- ------- -------- -------- ---------- -------- -------
LIABILITIES:
POST-PETITION LIABILITIES (MOR-4) 71 318 377 397 640 732 740 746 312 282
PRE-PETITION LIABILITIES:
Notes Payable - Secured 45,000 45,000 45,000 45,000 45,000 45,000 45,000 33,933 33,933 33,580
Accrued Interest - Secured N/Ps 3,508 3,508 3,508 3,508 3,508 3,508 3,508 3,508 3,508 3,508
Priority Debts 0 0 0 0 0 0 0 37 37 37
Federal Income Tax 0 0 0 0 0 0 0 0 0 0
Accrued Liabilities 0 0 0 0 0 0 0 0 0 0
FICA/Withholding 0 0 0 0 0 0 0 0 0 0
Unsecured Debt 119,377 119,377 119,377 119,377 119,377 119,377 119,377 118,877 118,877 118,838
Other Liabilities 0 0 0 0 0 0 0 3,113 3,438 3,345
-------- -------- -------- -------- -------- -------- -------- -------- -------- --------
TOTAL LIABILITIES 167,956 168,203 168,262 168,282 168,525 168,617 168,625 160,214 160,105 159,590
MEMBERS' EQUITY (DEFICIT):
Preferred Stock 0 0 0 0 0 0 0 0 0 0
Common Stock 1 1 1 1 1 1 1 1 1 1
Additional Paid-In Capital 225,940 225,940 225,940 225,940 225,940 225,941 225,940 225,940 225,940 225,940
Retained Earnings (380,335) (380,808) (381,101) (381,298) (382,077) (382,382) (382,569) (383,114) (383,316) (383,471)
-------- -------- -------- -------- -------- -------- -------- -------- -------- --------
TOTAL OWNERS' EQUITY (154,394) (154,867) (155,160) (155,357) (156,136) (156,440) (156,628) (157,173) (157,375) (157,530)
-------- -------- -------- -------- -------- -------- -------- -------- -------- --------
TOTAL LIABILITIES &
OWNERS' EQUITY 13,562 13,336 13,102 12,925 12,389 12,177 11,997 3,041 2,730 2,060
</Table>
MOR-3
(*) PER MOR FILED BY THE DEBTOR
A. The $45M debt is considered secured debt for purposes of this presentation.
The 8/14 distribution to the Secured Creditors, $10,877K, is classified as
a payment on principal 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. A distribution of
$500,000 was made to the $110m noteholders on 8/14.
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. Other Liabilities of $3,345K represent the difference between the sales
proceeds dividended from the subsidiaries and theremaining investments in
the subidiaries.
Page 3 of 9
<Table>
CASE NAME: CASE NUMBER: CH 11 CONVERSION DATE: CH 11 TRUSTEE APPOINTED:
SEVEN SEAS PETROLEUM, INC. 02-45206-H2-11 JANUARY 14, 2003 JANUARY 14, 2003
</Table>
SCHEDULE OF POST-PETITION LIABILITIES (000'S)
<Table>
<Caption>
JAN 31, FEB 28, MAR 31, APRIL 30, MAY 31, JUNE 30, JULY 31, AUGUST 30, SEPT 30, OCT. 31
2003 2003 2003 2003 2003 2003 2003 2003 2003 2003
------- ------- ------- --------- ------- -------- -------- ---------- ------- -------
TRADE ACCOUNTS PAYABLE 4 60 4 27 32 19 27 20 15 5
TAXES PAYABLE:
Federal Payroll Taxes 0 0 0 0 0 0 0 0 0 0
State Payroll & Sales Taxes 0 0 0 0 0 0 0 0 0 0
Other Taxes 0 0 0 0 0 0 0 0 0 0
---- ---- ---- ---- ---- ---- ---- ---- ---- ----
TOTAL TAXES PAYABLE 0 0 0 0 0 0 0 0 0 0
SECURED DEBT
ACCRUED INTEREST PAYABLE
ACCRUED PROFESSIONAL FEES:
Trustee Fees 33 43 62 58 84 85 85 179 0 4
Legal Fees 28 198 281 283 495 598 598 541 291 273
Accounting Fees 6 17 30 29 29 30 30 6 6 0
---- ---- ---- ---- ---- ---- ---- ---- ---- ----
TOTAL ACCRUED PROFESSIONAL FEES 67 258 373 370 608 713 713 726 297 277
OTHER ACCRUED LIABILITIES:
1.
2.
3.
4.
---- ---- ---- ---- ---- ---- ---- ---- ---- ----
TOTAL OTHER ACCRUED LIABILITIES
---- ---- ---- ---- ---- ---- ---- ---- ---- ----
TOTAL POST-PETITION
LIABILITIES (MOR-3) 71 318 377 397 640 732 740 746 312 282
</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.
Page 4 of 9
<Table>
CASE NAME: CASE NUMBER: CH 11 CONVERSION DATE: CH 11 TRUSTEE APPOINTED:
SEVEN SEAS PETROLEUM, INC. 02-45206-H2-11 JANUARY 14, 2003 JANUARY 14, 2003
</Table>
<Table>
<Caption>
AGING OF POST-PETITION LIABILITIES (000'S)
MONTH: OCTOBER
TRADE FEDERAL STATE
ACCOUNTS PAYROLL PAYROLL & AD VALOREM OTHER OTHER OTHER OTHER OTHER
DAYS OUTSTANDING PAYABLE TAXES SALES TAXES TAXES TAXES TAXES TAXES TAXES TAXES
- ---------------- -------- ------- ----------- ---------- ----- ----- ----- ----- -----
0-30 5
31-60 0
61-90 0
91 AND OVER 0
----- ------ ------ ------ ------ ------ ------ ------ ------
TOTAL 5 NONE NONE NONE NONE NONE NONE NONE NONE
</Table>
AGING OF ACCOUNTS RECEIVABLE
MONTH: OCTOBER 2003
<Table>
<Caption>
JAN FEB MAR APRIL MAY JUNE JULY AUGUST SEPT OCT
DAYS OUTSTANDING 2003 2003 2003 2003 2003 2003 2003 2003 2003 2003
- ---------------- ------ ------ ------ ------ ------ ------ ------ ------ ------ ------
0-30
31-60
61-90
91 AND OVER
------ ------ ------ ------ ------ ------ ------ ------ ------ ------
TOTAL NONE NONE NONE NONE NONE NONE NONE NONE 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-H2-11 JANUARY 14, 2003 JANUARY 14, 2003
</Table>
STATEMENT OF INCOME (LOSS) (000'S)
<Table>
<Caption>
JAN FEB MAR APRIL MAY JUNE JULY AUGUST SEPT OCT
2003 2003 2003 2003 2003 2003 2003 2003 2003 2003
---- ---- ---- ---- ---- ---- ---- ---- ---- ----
OPERATING REVENUE (MOR-1) 0 0 0 0 0 0 0 0 0 0
TOTAL COST OF REVENUES 0 0 0 0 0 0 0 0 0 0
---- ---- ---- ---- ---- ---- ---- ---- ---- ----
GROSS PROFIT 0 0 0 0 0 0 0 0 0 0
OPERATING EXPENSES:
Selling & Marketing 0 0 0 0 0 0 0 0 0 0
General & Administrative 4 3 4 26 17 18 27 86 45 17
Insiders Compensation 0 0 0 0 0 0 0 0 0 0
Management Fee-- SSPUSA expenses 140 123 82 80 242 98 68 57 40 6
Professional Fees 33 258 117 0 238 97 0 310 25 40
Other 0 0 0 0 0 0 0 0 0 0
---- ---- ---- ---- ---- ---- ---- ---- ---- ----
TOTAL OPERATING EXPENSES 177 384 203 106 497 213 95 453 110 63
---- ---- ---- ---- ---- ---- ---- ---- ---- ----
INCOME BEFORE INTEREST, DEPRECIATION (177) (384) (203) (106) (497) (213) (95) (453) (110) (63)
OTHER ITEMS AND INCOME TAXES (MOR-1)
Interest expense 0 0 0 0 0 0 0 0 0 0
Amortization expense 92 92 92 92 92 92 92 92 92 92
Interest (income) (4) (3) (2) (1) 0 0 0 0 0 0
Other 0 0 0 0 190 0 0 0 0 0
---- ---- ---- ---- ---- ---- ---- ---- ---- ----
TOTAL INTEREST, DEPRECIATION &
OTHER ITEMS 88 89 90 91 282 92 92 92 92 92
---- ---- ---- ---- ---- ---- ---- ---- ---- ----
NET INCOME BEFORE INCOME TAXES (265) (473) (293) (197) (779) (305) (187) (545) (202) (155)
FEDERAL INCOME TAXES 0 0 0 0 0 0 0 0 0
---- ---- ---- ---- ---- ---- ---- ---- ---- ----
NET INCOME (LOSS) (MOR-1) (265) (473) (293) (197) (779) (305) (187) (545) (202) (155)
</Table>
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-H2-11 JANUARY 14, 2003 JANUARY 14, 2003
</Table>
STATEMENT OF CASH RECEIPTS & DISBURSEMENTS (000'S)
<Table>
<Caption>
JAN FEB MAR APRIL MAY JUNE JULY AUGUST SEPT OCT
2003 2003 2003 2003 2003 2003 2003 2003 2003 2003
---- ---- ---- ---- ---- ---- ---- ---- ---- ----
CASH - BEGINNING OF MONTH 3,951 4,655 3,162 3,063 2,892 2,637 2,480 2,381 1,413 1,153
CASH RECEIPTS:
Receipts from subsidiaries 1,769 0 0 0 0 0 0 11,609 0 0
Receipts of Cash from
Restricted Account 620 0 0 0 0 0 0 0 0 0
Interest income 3 3 2 1 0 0 0 0 0 0
Other 0 0 21 0 0 0 0 0 0 0
----- ----- ----- ----- ----- ----- ----- ----- ----- -----
TOTAL CASH RECEIPTS 2,392 3 23 1 0 0 0 11,609 0 0
DISBURSEMENTS FOR OPERATIONS:
Insurance 60 0 0 0 0 0 0 0 0 145
Distributions to Subsidiaries 1,584 1,474 62 115 242 147 75 173 79 21
Other Misc 44 22 5 7 13 10 24 0 0 0
----- ----- ----- ----- ----- ----- ----- ----- ----- -----
TOTAL DISBURSEMENTS FOR
OPERATIONS 1,688 1,496 67 122 255 157 99 173 79 166
Professional fees (MOR-9) 0 0 55 50 0 0 0 825 181 12
U.S. Trustee fees 0 0 0 0 0 0 0 11 0 0
Other reorganization expenses 0 0 0 0 0 0 0 11,568 0 398
----- ----- ----- ----- ----- ----- ----- ----- ----- -----
TOTAL DISBURSEMENTS 1,688 1,496 122 172 255 157 99 12,577 260 576
NET INCREASE (DECREASE)
IN CASH FLOW 704 (1,493) (99) (171) (255) (157) (99) (968) (260) (576)
----- ----- ----- ----- ----- ----- ----- ----- ----- -----
CASH - END OF MONTH (MOR-2) 4,655 3,162 3,063 2,892 2,637 2,480 2,381 1,413 1,153 577
</Table>
A. $11,609,000 consists of proceeds from sale of Guaduas oil field
previously held in subsidiaries. The proceeds were dividended to the
parent to pay creditors and administrative claims.
B. $398K paid in Oct. 2003 is a distribution of the 2002 Colombian tax
refund to the creditors. $145K in Insurance costs are related to the
purchase of D&O Insurance for the reorganized Board and Mgmt.
MOR-7
Page 7 of 9
<Table>
CASE NAME: CASE NUMBER: CH 11 CONVERSION DATE: CH 11 TRUSTEE APPOINTED:
SEVEN SEAS PETROLEUM, INC. 02-45206-H2-11 JANUARY 14, 2003 JANUARY 14, 2003
</Table>
BANK ACCOUNT RECONCILIATION (000'S)
<Table>
<Caption>
BANK STERLING STERLING STERLING
ACCOUNT NUMBER 8040245206 8020245206 8060245206
PARTNER
ADVANCE SSPI MONEY SSPI
ACCOUNT TYPE ACCOUNT MARKET CHECKING
------------ ---------- ---------- ----------
ENDING BALANCE PER BANK 2 575 0
DEPOSITS IN TRANSIT -- -- --
OUTSTANDING CHECKS -- -- --
------ ------ ------
ADJUSTED BANK BALANCE 2 575 0
CASH PER BOOKS 2 575 0
INTEREST INCOME NOT RECORDED -- -- --
TRANSFERS TO ACCOUNT -- -- --
TRANSFERS FROM ACCOUNT -- -- --
DISBURSEMENTS NOT RECORDED -- -- --
------ ------ ------
ENDING CASH PER BOOKS 2 575 0
</Table>
Additional Debtor subsidiary proceeds, approximately $150K USD are held in
Colombian peso accounts--not shown above.
Additionally $1,250 K resides in the subsidiaries and has been escrowed for the
Escuela 2 plugging and abandonment costs.
The Company believes that signficant savings can be realized against the E-2 P&A
costs. Any cost savings will be dividended to the Creditors per the August 14th
2003 Plan of Reorganization.
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-H2-11 JANUARY 14, 2003 JANUARY 14, 2003
</Table>
PAYMENTS TO INSIDERS AND PROFESSIONALS (000'S)
<Table>
<Caption>
INSIDERS: JAN FEB MARCH APRIL MAY JUNE JULY AUGUST SEPT OCT
NAME/POSITION/COMP. TYPE 2003 2003 2003 2003 2003 2003 2003 2003 2003 2003
------------------------ ---- ---- ---- ---- ---- ---- ---- ---- ---- ----
1. Larry A. Ray (President) Note A. Note A. Note A. Note A. Note A. Note A. Note A. Note A. Note A. Note A.
2. Ronald A. Lefaive (CFO) Note A. Note A. Note A. Note A. Note A. Note A. Note A. Note A. Note A. Note A.
3.
4.
5.
6.
---- ---- ---- ---- ---- ---- ---- ---- ---- ----
TOTAL INSIDERS (MOR-1) NONE NONE NONE NONE NONE NONE NONE NONE NONE NONE
</Table>
<Table>
<Caption>
PROFESSIONALS JAN FEB MARCH APRIL MAY JUNE JULY AUGUST SEPT OCT
NAME/ORDER DATE 2003 2003 2003 2003 2003 2003 2003 2003 2003 2003
--------------- ---- ---- ---- ---- ---- ---- ---- ---- ---- ----
1. Andrews & Kurth 28 39 0 0 0 475 0 0
2. Floyd, Isgur, Rios 21 7 0 0 0 300 175 0
3. Smith & Henault 6 4 0 0 0 31 6 12
4. McLain, Leppert, and Maney 0 0 0 0 19 0 0
5.
6.
---- ---- ---- ---- ---- ---- ---- ---- ---- ----
TOTAL PROFESSIONALS (MOR-1) NONE NONE 55 50 0 0 0 825 181 12
</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.
Under the KERP plan approved by the court, Lefaive received a KERP
payment and Ray received forgiveness on a portion of his loan in May.
Both were also reimbursed for accrued vacation & personal leave as of
5/31/03 in accordance with the KERP plan in May.
Both also received reimbursement 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
Page 9 of 9