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EXHIBIT 99(a)
RIO GRANDE, INC. AND SUBSIDIARIES
PRO FORMA CONDENSED COMBINED STATEMENTS OF OPERATIONS
SIX MONTHS ENDED JULY 31, 1994
------------------------------
HISTORICAL
----------------------------------------- PRO PRO
RIO FORMA FORMA
GRANDE PYRAMID BCS ADJ. BALANCE
----------- -------- ---------- ---------- -----------
REVENUES:
Oil and gas sales $1,921,308 823,470 123,020 (a) (460,901) 2,406,897
COSTS AND EXPENSES:
Operating expenses 656,782 620,259 68,222 (a) (114,090) 1,231,173
Depreciation, depletion
and amortization 548,074 - - (b) 305,131 853,205
Provision for abandonment 87,900 - - - 87,900
expense
General and administrative 433,320 - - (c) 193,232 626,552
---------- -------- -------- -------- ---------
TOTAL COSTS AND EXPENSES: 1,726,076 620,259 68,222 384,273 2,798,830
---------- -------- -------- -------- ---------
EARNINGS (LOSS) FROM
OPERATIONS 195,232 203,211 54,798 (845,174) (391,933)
---------- -------- -------- -------- ---------
OTHER INCOME (EXPENSE):
Interest expense (45,159) - - (d) (42,563) (87,722)
Other 143,620 - - - 143,620
Minority interest of
limited partners (138,795) - - (e) 78,787 (60,008)
---------- -------- -------- -------- ---------
TOTAL OTHER INCOME (40,334) - - 36,224 (4,110)
---------- -------- -------- -------- ---------
EARNINGS (LOSS) BEFORE
INCOME TAXES 154,898 203,211 54,798 (808,950) (396,043)
INCOME TAXES 6,760 - - - 6,760
---------- -------- -------- -------- ---------
NET EARNINGS (LOSS) $ 148,138 203,211 54,798 (808,950) (402,803)
========== ======== ======== ======== =========
NET EARNINGS (LOSS) PER
COMON AND COMMON
EQUIVALENT SHARE $ 0.02 (0.07)
WEIGHTED AVERAGE COMMON
AND COMMON EQUIVALENT
SHARES OUTSTANDING 6,029,293 6,029,293
NOTES TO THE PRO FORMA CONDENSED COMBINED STATEMENT OF OPERATIONS
(a) To eliminate the revenues and direct operating expenses for BCS and
Pyramid which occurred after their acquisition and the revenues and
direct operating expenses applicable to the sales of certain oil and
gas properties located in Texas and Offshore Louisiana.
(b) To provide for depreciation, depletion and amortization of the oil and
gas properties and other assets acquired or sold based on their
production during the respective periods after giving effect to the
purchase price.
(c) To provide for the additional personnel, facilities and other
administrative expenses resulting from the acquisitions, net of
overhead fees charged.
(d) To provide for the additional interest expense for the $2,900,000 bank
debt incurred in the acquisition and the decrease in interest expense
applicable to the $970,000 reduction in bank debt as a result of the
sale of certain oil and gas properties in West Texas and Offshore
Louisiana.
(e) To adjust the minority interests of the limited partners in the
combined limited partnerships as a result of the acquisitions,
dispositions and the related pro forma adjustments.
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EXHIBIT 99(A)
RIO GRANDE, INC. AND SUBSIDIARIES
PRO FORMA CONDENSED COMBINED STATEMENTS OF OPERATIONS
SIX MONTHS ENDED JULY 31, 1995
------------------------------
HISTORICAL
-------------
PRO PRO
RIO GRANDE FORMA FORMA
ADJ. BALANCE
------------ ------------ ------------
REVENUES:
Oil and gas sales $ 1,928,225 (a) (133,177) 1,795,048
COSTS AND EXPENSES:
Operating expenses 984,253 (a) (20,499) 963,754
Depreciation, depletion and amortization 677,308 (b) (26,198) 651,110
Provision for abandonment expense 90,000 - 90,000
General and administrative 648,573 - 648,573
----------- --------- --------
TOTAL COSTS AND EXPENSES: 2,400,134 (46,697) 2,353,437
----------- --------- --------
EARNINGS (LOSS) FROM OPERATIONS (471,909) (86,480) (558,389)
----------- --------- --------
OTHER INCOME (EXPENSE):
Interest expense (142,748) (c) 39,600 (103,148)
Other 1,207,753 - 1,207,753
Minority interest of limited partners (209,253) (d) 17,296 (191,957)
----------- --------- --------
TOTAL OTHER INCOME 855,752 56,896 912,648
----------- --------- --------
EARNINGS (LOSS) BEFORE INCOME TAXES 383,843 (29,584) 354,259
INCOME TAXES 3,560 - 3,560
----------- --------- --------
NET EARNINGS (LOSS) $ 380,283 (29,584) 350,699
=========== ======== ========
NET EARNINGS (LOSS) PER COMMON AND COMMON
EQUIVALENT SHARE $ 0.06 0.06
WEIGHTED AVERAGE COMMON AND COMMON EQUIVALENT
SHARES OUTSTANDING 5,927,760 5,927,760
NOTES TO THE PRO FORMA CONDENSED COMBINED STATEMENT OF OPERATIONS
(a) To eliminate the revenues and direct operating expenses relative to
the dispositions of certain oil and gas properties located in Texas
and Offshore Louisiana.
(b) To provide for depreciation, depletion and amortization of the oil and
gas properties sold during the first six months of 1995 based on their
production during the respective periods.
(c) To provide for the interest expense applicable to the $970,000
reduction in bank debt.
(d) To adjust the minority interests of the limited partners in the
combined limited partnerships as a result of the dispositions of oil
and gas properties and the related pro forma adjustments.
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