SEVEN SEAS PETROLEUM, INC.
CASE NO.: 02-45206-42
PETITION DATE: DECEMBER 20, 2002
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UNITED STATES BANKRUPTCY COURT
SOUTHERN DISTRICT OF TEXAS
HOUSTON DIVISION
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
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TRUSTEE'S MONTHLY OPERATING REPORT SUMMARY FOR: JANUARY 2003
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MONTH JAN 2003
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REVENUES (MOR-6) 0
INCOME (LOSS) BEFORE INTEREST, DEPRECIATION,
OTHER ITEMS & INCOME TAXES (177,000)
NET INCOME (LOSS) (MOR-6) (265,000)
PAYMENTS TO INSIDERS (MOR-9) NONE
PAYMENTS TO PROFESSIONALS (MOR-9) NONE
TOTAL DISBURSEMENTS (MOR-7) 1,687,781
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
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REQUIRED INSURANCE MAINTAINED EXPIRATION
AS OF SIGNATURE DATE DATE
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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
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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
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
COMPARATIVE BALANCE SHEETS (000'S)
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JAN 31,
ASSETS 2003
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CURRENT ASSETS
Cash 4,656
Accounts Receivable, Net 200 A.
Inventory: Lower of Cost or Market 0
Prepaid Expenses 25
Investments in Subs 6,396
Other 2,285 B.
TOTAL CURRENT ASSETS 13,562
Furniture, Equipment & Fixtures (*) 0 C.
Less Accumulated Depreciation 0
Net Book Value of F&F 0
OTHER ASSETS:
1.
2.
3.
3.
TOTAL OTHER ASSETS
TOTAL ASSETS 13,562
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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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
COMPARATIVE BALANCE SHEETS (000'S)
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LIABILITIES & JAN 31,
OWNERS EQUITY 2003
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LIABILITIES:
POST-PETITION LIABILITIES (MOR-4) 71
PRE-PETITION LIABILITIES:
Notes Payable - Secured 45,000 A.
Accrued Interest - Secured N/Ps 3,508 E.
Priority Debts 0
Federal Income Tax 0 B.
Accrued Liabilities 0
FICA/Withholding 0 C.
Unsecured Debt 119,377 D.
Other Liabilities 0
TOTAL LIABILITIES 167,956
MEMBERS' EQUITY (DEFICIT):
Preferred Stock 0
Common Stock 1
Additional Paid-In Capital 225,940
Retained Earnings (380,335)F.
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TOTAL OWNERS' EQUITY (154,394)
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TOTAL LIABILITIES & 13,562
OWNERS' EQUITY
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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.
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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
SCHEDULE OF POST-PETITION LIABILITIES (000'S)
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JAN 31,
2003
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TRADE ACCOUNTS PAYABLE 4
TAXES PAYABLE:
Federal Payroll Taxes 0 B.
State Payroll & Sales Taxes 0 B.
Other Taxes 0 A.
TOTAL TAXES PAYABLE 0
SECURED DEBT
ACCRUED INTEREST PAYABLE
ACCRUED PROFESSIONAL FEES:
Trustee Fees 33 C.
Legal Fees 28 D.
Accounting Fees 6 E.
TOTAL ACCRUED PROFESSIONAL FEES 67
OTHER ACCRUED LIABILITIES:
1.
2.
3.
4.
TOTAL OTHER ACCRUED LIABILITIES
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TOTAL POST-PETITION
LIABILITIES (MOR-3) 71
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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 fee to US Trustee office, fees for trustee bond, and fees accrued
for trustee law firm in January.
D. Legal fees accrued for Andrews & Kurth for January 2003.
E. Accounting fees incured for Smith & Henault in January 2003.
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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
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AGING OF POST-PETITION LIABILITIES (000'S)
MONTH: JANUARY 2003
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FEDERAL STATE
TRADE PAYROLL PAYROLL & AD VALOREM OTHER
DAYS OUTSTANDING ACCOUNTS PAYABLE TAXES SALES TAXES TAXES TAXES
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0-30 4
31-60
61-90
91 AND OVER
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TOTAL 4 NONE NONE NONE NONE
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AGING OF ACCOUNTS RECEIVABLE
MONTH: JANUARY 2003
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JAN FEB
DAYS OUTSTANDING 2003 2003
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0-30
31-60
61-90
91 AND OVER
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TOTAL NONE NONE
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MOR-5
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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
STATEMENT OF INCOME (LOSS) (000'S)
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JAN
2003
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OPERATING REVENUE (MOR-1) 0
TOTAL COST OF REVENUES 0
GROSS PROFIT 0
OPERATING EXPENSES:
Selling & Marketing 0
General & Administrative 4
Insiders Compensation 0 A.
Management Fee from Sub SSPUSA 140
Professional Fees 33
Other - U. S. Trustee fees 0
TOTAL OPERATING EXPENSES 177
INCOME BEFORE INTEREST, DEPRECIATION (177)
OTHER ITEMS AND INCOME TAXES (MOR-1)
Interest expense 0 C.
Amortization expense 92
Interest (income) (4)B.
Other - Conversion fee 0
TOTAL INTEREST, DEPRECIATION & 88
OTHER ITEMS
NET INCOME BEFORE INCOME TAXES (265)
FEDERAL INCOME TAXES 0
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NET INCOME (LOSS) (MOR-1) (265)
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A. No insiders were funded directly by Debtor. However, two insiders are paid
by SSPUSA, a susbsidiary of the Debtor. Larry Ray paid $39,576 for salary
and stay-on bonus, and Ron Lefaive $17,187 for salary and stay-on bonus.
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
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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
STATEMENT OF CASH RECEIPTS & DISBURSEMENTS
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JAN
2003
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CASH - BEGINNING OF MONTH 3,950,809
CASH RECEIPTS:
Receipts from subsidiaries 1,768,749
Receipts of Cash from Restricted Account 620,371
Interest income 3,436
Other 0
TOTAL CASH RECEIPTS 2,392,556
DISBURSEMENTS FOR OPERATIONS:
Subsidiary registration fees 5,604
Stock registrar fees 1,000
Insurance 60,014
Administrative fees to GHK OK 3,536
Distributions to Subsidiaries 1,583,627
Other 34,000
TOTAL DISBURSEMENTS FOR OPERATIONS 1,687,781
Professional fees (MOR-9) 0
U.S. Trustee fees 0
Other reorganization expenses 0
TOTAL DISBURSEMENTS 1,687,781
NET INCREASE (DECREASE) IN CASH FLOW 704,775
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CASH - END OF MONTH (MOR-2) 4,655,584
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MOR-7
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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
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BANK ACCOUNT RECAP
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BANK SWBT
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ACCOUNT NUMBER 91569612**
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ACCOUNT TYPE CONCENTRATION
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ENDING BALANCE PER BANK 4,689,859
DEPOSITS IN TRANSIT
OUTSTANDING CHECKS (34,275)
ADJUSTED BANK BALANCE 4,655,584
BEGINNING CASH PER BOOKS 3,568,952
CASH RECEIPTS FROM SUBS 2,101,067
CASH RECEIPTS HELD IN DEBTOR SWEEP 132,669
INTEREST INCOME 3,271
TRANSFERS TO ACCOUNT
TRANSFERS FROM ACCOUNT
DISBURSEMENTS (INCLUDES SUB FUNDING) (1,150,375)
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ENDING CASH PER BOOKS (NET OF O/S) 4,655,584
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** Note that in January all cash was held in SouthWest Bank of Texas. The
Debtor has multiple accounts, but all activity sweeps into one
concentration account shown above.
MOR-8
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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
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PAYMENTS TO INSIDERS AND PROFESSIONALS
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INSIDERS: NAME/POSITION/COMP. JAN
TYPE 2003
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1. Larry A. Ray (President) Note A.
2. Ronald A. Lefaive (CFO) Note A.
3.
4.
5.
6.
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TOTAL INSIDERS (MOR-1) NONE
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PROFESSIONALS JAN
NAME/ORDER DATE 2003
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1. None.
2.
3.
4.
5.
6.
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TOTAL PROFESSIONALS (MOR-1) NONE
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A. No insiders were funded directly by Debtor. However, two insiders are paid
by SSPUSA, a susbsidiary of the Debtor. Larry Ray paid $39,576 for salary
and stay-on bonus, and Ron Lefaive $17,187 for salary and stay-on bonus.
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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