1
EXHIBIT 99.2
[RIO GRANDE LETTERHEAD]
VIA ALAMO HOT SHOT
COURIER SERVICE
March 8, 1999
Mr. Jim Mullin
U.S. Department of Justice
Western District of Texas
615 East Houston, Room 533
San Antonio, Texas 78205
REFERENCE: Case Number: 98-55619, 55620, 55621, 55622, 55623
Monthly Operating Report Summary
Dear Jim:
Enclosed please find the copies of the above referenced individual company
Monthly Operating Report Summary. Under separate cover, the original MOR's have
been sent to Cox & Smith today for filing with the Court.
If you have any questions or need any additional information, please do
not hesitate to call me.
Sincerely,
RIO GRANDE, INC.
/s/ GARY SCHEELE
Gary Scheele
Vice President & CFO
GS/elg
cc: Deborah Williamson (via Alamo Hot Shot)
Cox & Smith
112 E. Pecan, Suite 1800
San Antonio, Texas 78205
WP\GS\MULLIN
2
MOR-1 UNITED STATES BANKRUPTCY COURT
CASE NAME: RIO GRANDE, INC. PETITION DATE: 11/12/98
------------------ ---------------
CASE NUMBER: 98-55619-C DISTRICT OF TEXAS: Western
------------------ ---------------
PROPOSED PLAN DATE: DIVISION: San Antonio
------------- ---------------
MONTHLY OPERATING REPORT SUMMARY FOR MONTH CONSOLIDATED YEAR
------------------------------------------ ------------ ----
MONTH November 1998 December 1998 January 1999
----- ------------- ------------- ------------
REVENUES (MOR-6) 313,288.85 387,800.69 324,703.20 0.00 0.00
---------- ---------- ---------- ---- ----
INCOME BEFORE INT; DEPREC./TAX (MOR-6) 44,793.12 213,698.05 100,697.10 0.00 0.00
---------- ---------- ---------- ---- ----
NET INCOME (LOSS) (MOR-6) (29,161.34) 90,982.05 (31,035.09) 0.00 0.00
---------- ---------- ---------- ---- ----
PAYMENTS TO INSIDERS (MOR-9) 0.00 0.00 0.00 0.00 0.00
---------- ---------- ---------- ---- ----
PAYMENTS TO PROFESSIONALS (MOR-9) 0.00 0.00 0.00 0.00 0.00
---------- ---------- ---------- ---- ----
TOTAL DISBURSEMENTS (MOR-8) 0.00 0.00 0.00 0.00 0.00
========== ========== ========== ==== ====
*** The original of this document must be filed with the United States
Bankruptcy Court and a copy must be sent to the United States Trustee***
REQUIRED INSURANCE MAINTAINED
AS OF SIGNATURE DATE EXP.
DATE
- ----------------------------- ---------
CASUALTY YES [X] NO [ ] 05-01-99
LIABILITY YES [X] NO [ ] 05-01-99
VEHICLE YES [X] NO [ ] 05-01-99
WORKER'S YES [X] NO [ ] 05-01-99
EXCESS YES [X] NO [ ] 05-01-99
CIRCLE ONE
Are all accounts receivable being collected within terms? Yes [X] No [ ]
Are all post-petition liabilities, including taxes, being paid within terms? Yes [X] No [ ]
Have any pre-petition liabilities been paid? Yes [X] No [ ]
If so, describe _________________________________________________________
Are all funds received being deposited into DIP bank accounts? Yes [X] No [ ]
Were any assets disposed of outside the normal course of business? Yes [ ] No [X]
If so, describe _________________________________________________________
Are all U.S. Trustee Quarterly Fee Payments current? Yes [X} No [ ]
What is the status of your Plan of Reorganization? Filed Plan - December 11, 1998
------------------------------
ATTORNEY NAME: DEBORAH D. WILLIAMSON
-----------------------------
FIRM NAME: COX & SMITH INCORPORATED
-----------------------------
ADDRESS: 112 EAST PECAN STREET
-----------------------------
SUITE 1800
-----------------------------
CITY, STATE, ZIP: SAN ANTONIO, TEXAS 78205
-----------------------------
TELEPHONE: (210)554-5500
-----------------------------
I certify under penalty of perjury that the following complete
Monthly Operating Report (MOR), consisting of MOR-1 through
MOR-9 plus attachment, is true and correct.
SIGNED X /s/ GARY SCHEELE TITLE: Vice President
-------------------- -------------------
(ORIGINAL SIGNATURE)
Gary Scheele 03/04/99
- ------------------------- ------------
(PRINT NAME OF SIGNATORY) DATE
MOR-1
Revised 07/01/98
3
CASE NAME: RIO GRANDE, INC.
----------------------
CASE NUMBER: 98-55619-C
-------------------
COMPARATIVE BALANCE SHEETS
FILING DATE* MONTH MONTH MONTH MONTH MONTH
ASSETS CONSL. TO 10QSB- -------------- -------------- -------------
CONSOLIDATED 10/31/98 NOVEMBER 1998 DECEMBER 1998 JANUARY 1999
- ------------------------------- -------------- -------------- -------------- -------------- ----- -----
CURRENT ASSETS
Cash 433,711.27 521,725.78 469,759.18 563,901.61
-------------- -------------- -------------- -------------- ----- -----
Accounts Receivable, Net 500,362.87 540,594.62 706,256.01 597,462.29
-------------- -------------- -------------- -------------- ----- -----
Inventory: Lower of Cost
or Market 0.00 0.00 0.00 0.00
-------------- -------------- -------------- -------------- ----- -----
Prepaid Expenses 49,504.79 48,664.63 48,070.52 47,331.86
-------------- -------------- -------------- -------------- ----- -----
Investments 0.00 0.00 0.00
-------------- -------------- -------------- -------------- ----- -----
Other 0.00 0.00 0.00
-------------- -------------- -------------- -------------- ----- -----
TOTAL CURRENT ASSETS 983,578.93 1,110,985.03 1,224,085.71 1,208,695.76 0.00 0.00
-------------- -------------- -------------- -------------- ----- -----
PROPERTY, PLANT & EQUIP.
@ COST 27,371,508.56 27,133,246.28 27,135,793.53 27,158,193.85
-------------- -------------- -------------- -------------- ----- -----
Less Accumulated Depreciation 19,124,111.61 18,994,431.87 19,104,659.75 19,214,887.63
-------------- -------------- -------------- -------------- ----- -----
NET BOOK VALUE OF PP & E 8,247,396.95 8,138,814.41 8,031,133.78 7,943,306.22 0.00 0.00
-------------- -------------- -------------- -------------- ----- -----
OTHER ASSETS
1. Tax Deposits
-------------- -------------- -------------- -------------- ----- -----
2. Investments in Subsidiaries
-------------- -------------- -------------- -------------- ----- -----
3. Platform Abandonment Fund-
(Gulfmex) 360,857.03 363,678.08 363,678.08 363,678.08
-------------- -------------- -------------- -------------- ----- -----
4. Deferred Loan and Organi-
zation Costs 393,048.09 386,038.50 379,028.91 371,619.32
-------------- -------------- -------------- -------------- ----- -----
TOTAL ASSETS $ 9,984,881.00 $ 9,999,516.02 $ 9,997,926.48 $ 9,887,299.38 $0.00 $0.00
============== ============== ============== ============== ===== =====
* Per Schedules and Statement of Affairs
MOR-2 Revised 07/01/98
4
CASE NAME: RIO GRANDE, INC.
----------------
CASE NUMBER: 98-55619-C
----------------
CONSOLIDATED
COMPARATIVE BALANCE SHEETS
FILING DATE* MONTH MONTH MONTH MONTH MONTH
CONSL. TO --------------- --------------- ---------------
LIABILITIES & OWNER'S EQUITY 10QSB-10/31/98 NOVEMBER 1998 DECEMBER 1998 JANUARY 1999
- ---------------------------- ---------------- --------------- --------------- --------------- ------ ------
LIABILITIES
---------------- --------------- --------------- --------------- ------ ------
POST-PETITION LIABILITIES(MOR-4) 434,246.00 341,674.41 262,082.40
---------------- --------------- --------------- --------------- ------ ------
PRE-PETITION LIABILITIES
Notes Payable - Secured
---------------- --------------- --------------- --------------- ------ ------
Priority Debt 13,141,806.63 13,141,248.14 13,141,248.14 13,141,248.14
---------------- --------------- --------------- --------------- ------ ------
Federal Income Tax
---------------- --------------- --------------- --------------- ------ ------
FICA/Withholding
---------------- --------------- --------------- --------------- ------ ------
Dividends Payable 304,055.00 304,055.00 304,055.00 304,055.00
---------------- --------------- --------------- --------------- ------ ------
Other - Trade, Royalty 1,368,283.51 965,131.36 965,131.36 965,131.36
---------------- --------------- --------------- --------------- ------ ------
Deferred Abandonment Expense 526,343.99 526,343.99 526,343.99 526,343.99
---------------- --------------- --------------- --------------- ------ ------
Advance - Affiliates 0.00 0.00 0.00 0.00
---------------- --------------- --------------- --------------- ------ ------
Minority interest - Limited Partners 157,334.14 157,334.14 157,334.14 157,334.14
---------------- --------------- --------------- --------------- ------ ------
TOTAL PRE-PETITION LIABILITIES 15,497,823.27 15,094,112.63 15,094,112.63 15,094,112.63 0.00 0.00
---------------- --------------- --------------- --------------- ------ ------
TOTAL LIABILITIES 15,497,823.27 15,528,358.63 15,435,787.04 15,356,195.03 0.00 0.00
---------------- --------------- --------------- --------------- ------ ------
OWNER'S EQUITY (DEFICIT)
PREFERRED STOCK 11,225,396.00 11,238,657.00 11,238,657.00 11,238,657.00
---------------- --------------- --------------- --------------- ------ ------
COMMON STOCK 61,774.34 61,774.34 61,774.34 61,774.34
---------------- --------------- --------------- --------------- ------ ------
ADDITIONAL PAID-IN CAPITAL 0.00 0.00 0.00 0.00
---------------- --------------- --------------- --------------- ------ ------
RETAINED EARNINGS: Filing Date (16,800,112.61) (16,800,112.61) (16,800,112.61) (16,800,112.61)
---------------- --------------- --------------- --------------- ------ ------
RETAINED EARNINGS: Post Filing Date 0.00 (29,161.34) 61,820.71 30,785.62
---------------- --------------- --------------- --------------- ------ ------
TOTAL OWNER'S EQUITY (NET WORTH) (5,512,942.27) (5,528,842.61) (5,437,860.56) (5,468,895.65) 0.00 0.00
---------------- --------------- --------------- --------------- ------ ------
TOTAL LIABILITIES & OWNER'S EQUITY $ 9,984,881.00 $ 9,999,516.02 $ 9,997,926.48 $ 9,887,299.38 $ 0.00 $ 0.00
================ =============== =============== =============== ====== ======
* Per Schedules and Statement of Affairs
MOR-3
REVISED 07/01/98
5
CASE NAME: RIO GRANDE, INC.
-----------------------
CASE NUMBER: 98-55619-C
---------------------
SCHEDULE OF POST-PETITION LIABILITIES
MONTH MONTH MONTH MONTH MONTH
NOVEMBER 1998 DECEMBER 1998 JANUARY 1999
------------- ------------- ------------ ----------- -----------
TRADE ACCOUNTS PAYABLE CONSOLIDATED 243,726.12 163,863.55 129,718.13
----------- ----------- ----------- ----------- -----------
TAX PAYABLE
Federal Payroll Taxes 497.53 44.57 44.57
----------- ----------- ----------- ----------- -----------
State Payroll Taxes 795.21 871.15 761.03
----------- ----------- ----------- ----------- -----------
Ad Valorem Taxes 4,000.00 8,000.00 12,000.00
----------- ----------- ----------- ----------- -----------
Other Taxes-State Franchise/Income 21,947.55 22,747.43 23,476.46
----------- ----------- ----------- ----------- -----------
TOTAL TAXES PAYABLE 27,240.29 31,663.15 36,282.06 0.00 0.00
----------- ----------- ----------- ----------- -----------
SECURED DEBT POST-PETITION (558.49) (1,116.98) (1,116.98)
----------- ----------- ----------- ----------- -----------
ACCRUED INTEREST PAYABLE 58,363.98 58,265.28 58,265.28
----------- ----------- ----------- ----------- -----------
ACCRUED DIVIDENDS PAYABLE 21,322.80 21,322.80 0.00
----------- ----------- ----------- ----------- -----------
ACCRUED PROFESSIONAL FEES* 0.00 0.00 0.00
----------- ----------- ----------- ----------- -----------
OTHER ACCRUED LIABILITIES
1. Royalties 74,885.20 63,006.91 32,308.55
----------- ----------- ----------- ----------- -----------
2. Payroll 3,976.72 0.00 0.00
----------- ----------- ----------- ----------- -----------
3. Insurance (3,692.10) (11,147.49) (13,572.88)
----------- ----------- ----------- ----------- -----------
4. Deferred Abandonment Expense 1,459.31 5,159.31 8,859.31
----------- ----------- ----------- ----------- -----------
5. Minority Interest-Limited Partners 5,335.67 5,111.55 10,070.37
----------- ----------- ----------- ----------- -----------
6. Miscellaneous 2,186.50 5,546.33 1,268.56
----------- ----------- ----------- ----------- -----------
----------- ----------- ----------- ----------- -----------
TOTAL POST-PETITION LIABILITIES (MOR-3) $434,246.00 $341,674.41 $262,082.40 $ 0.00 $ 0.00
=========== =========== =========== =========== ===========
* PAYMENT REQUIRES COURT APPROVAL
MOR-4
6
$418,150.61 $333,305.99
$418,150.61 $332,134.82
$ 0.00 $ 1,171.17
7
CASE NAME: RIO GRANDE, INC.
----------------
CASE NUMBER: 98-55619-C
----------------
AGING OF POST-PETITION LIABILITIES
------------ ------------ -------------
CONSOLIDATED MONTH JANUARY 1999 CONSOLIDATED
------------ ------------ -------------
TRADE FEDERAL STATE ADVALOREM, ADVANCES/ACCOUNTS ROYALTIES AND
DAYS TOTAL ACCOUNTS TAXES TAXES OTHER TAXES PAYABLE TO AFFILIATES REVENUE SUSPENSE OTHER
- -------- ------------ ----------- ------- -------- ----------- --------------------- ---------------- -----------
0-30 248,095.26 129,718.13 44.57 761.03 27,476.46 0.00 32,308.55 57,786.52
------------ ----------- ------- -------- ----------- ---------------- ----------- -----------
31-60 9,987.14 0.00 0.00 0.00 4,000.00 0.00 0.00 5,987.14
------------ ----------- ------- -------- ----------- ---------------- ----------- -----------
61-90 4,000.00 0.00 0.00 0.00 4,000.00 0.00 0.00 0.00
------------ ----------- ------- -------- ----------- ---------------- ----------- -----------
91+ 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
------------ ----------- ------- -------- ----------- ---------------- ----------- -----------
TOTAL(1) $ 262,082.40 $129,718.13 $ 44.57 $ 761.03 $ 35,476.46 $ 0.00 $ 32,308.55 $ 63,773.66
============ =========== ======= ======== =========== ================ =========== ===========
(1) AGING OF ACCOUNTS RECEIVABLE
MONTH JANUARY 1999 JANUARY 1999
--------------- --------------
OIL & GAS SALES JOINT INTEREST
BILLINGS
- -------- ------------ -----------
0-30 DAYS 517,817.66 13,633.68
------------ ----------- ------- -------- ----------- ---------------- ----------- -----------
31-60 DAYS 8,479.81 3,360.00
------------ ----------- ------- -------- ----------- ---------------- ----------- -----------
61-90 DAYS 9,338.82 1,782.69
------------ ----------- ------- -------- ----------- ---------------- ----------- -----------
91+ DAYS (8,725.59) 51,775.22
------------ ----------- ------- -------- ----------- ---------------- ----------- -----------
TOTAL $ 526,910.70 $70,551.59 $ 0.00 $ 0.00 $ 0.00 $ 0.00
============ =========== ======= ======== =========== ================ =========== ===========
MOR-5
Revised 07/01/98
8
CASE NAME: RIO GRANDE, INC.
-----------------------
CASE NUMBER: 98-55619-C
-----------------------
STATEMENT OF INCOME (LOSS)
CONSOLIDATED
------------
MONTH MONTH MONTH MONTH MONTH FILING TO
NOVEMBER 1998 DECEMBER 1998 JANUARY 1999 DATE
------------- ------------ ------------ ----- ----- -------------
REVENUES (MOR-1) 313,288.85 387,800.69 324,703.20 1,025,792.74
----------- ---------- ----------- ----- ----- -------------
TOTAL COST OF REVENUES 192,901.79 97,470.14 162,732.10 453,104.03
----------- ---------- ----------- ----- ----- -------------
GROSS PROFIT 120,387.06 290,330.55 161,971.10 0.00 0.00 572,688.71
----------- ---------- ----------- ----- ----- -------------
OPERATING EXPENSE:
Selling & Market 0.00 0.00 0.00 0.00
----------- ---------- ----------- ----- ----- -------------
General & Administrative 75,593.94 76,632.50 61,274.00 213,500.44
----------- ---------- ----------- ----- ----- -------------
Insiders Compensation 0.00 0.00 0.00 0.00
----------- ---------- ----------- ----- ----- -------------
Professional Fees 0.00 0.00 0.00 0.00
----------- ---------- ----------- ----- ----- -------------
Other 0.00
----------- ---------- ----------- ----- ----- -------------
Other 0.00
----------- ---------- ----------- ----- ----- -------------
TOTAL OPERATING EXPENSES 75,593.94 76,632.50 61,274.00 0.00 0.00 213,500.44
----------- ---------- ----------- ----- ----- -------------
INCOME BEFORE INT. DEPR/TAX (MOR-1) 44,793.12 213,698.05 100,697.10 0.00 0.00 359,188.27
----------- ---------- ----------- ----- ----- -------------
INTEREST EXPENSE 58,423.61 158.33 85.63 58,667.57
----------- ---------- ----------- ----- ----- -------------
DEPRECIATION/AMORTIZATION 121,295.47 120,937.47 127,687.67 369,920.61
----------- ---------- ----------- ----- ----- -------------
OTHER (INCOME) EXPENSE* (5,201.69) 1,259.32 (1,584.93) (5,527.30)
----------- ---------- ----------- ----- ----- -------------
OTHER ITEMS**(GAIN/LOSS ON SALE OF ASSET (139,114.66) 0.00 0.00 (139,114.66)
----------- ---------- ----------- ----- ----- -------------
MINORITY INTEREST OF LIMITER PARTNERS 5,335.67 (224.12) 4,958.82 10,070.37
----------- ---------- ----------- ----- ----- -------------
TOTAL INT. DEPR & OTHER ITEMS 40,738.40 122,131.00 131,147.19 0.00 0.00 294,016.59
----------- ---------- ----------- ----- ----- -------------
NET INCOME BEFORE TAXES 4,054.72 91,567.05 (30,450.09) 0.00 0.00 65,171.68
----------- ---------- ----------- ----- ----- -------------
FEDERAL INCOME BEFORE TAXES 585.00 585.00 585.00 1,755.00
----------- ---------- ----------- ----- ----- -------------
DIVIDENDS APPLICABLE TO PREFERRED STOCK 32,631.06 0.00 32,631.06
----------- ---------- ----------- ----- ----- -------------
NET INCOME (LOSS) (MOR-1) ($29,161.34) $90,982.05 ($31,035.09) $0.00 $0.00 $ 30,785.62
=========== ========== =========== ===== ===== =============
Accrual Accounting Required, Otherwise Footnote with Explanation
* Footnote Mandatory
** Unusual and/or infrequent item(s) outside the ordinary course of business
requires footnote.
MOR-6
Revised 07/01/98
9
CASE NAME: RIO GRANDE, INC.
-----------------------
CASE NUMBER: 98-55619-C
---------------------
CONSOLIDATED
CASH RECEIPTS AND MONTH MONTH MONTH MONTH FILING TO
DISBURSEMENTS NOVEMBER 1998 DECEMBER 1998 JANUARY 1999 DATE
------------- ------------- ------------ ----------- -----------
1. CASH-BEGINNING OF MONTH $ 0.00 $ 0.00 $ 0.00 $ 0.00
----------- ----------- ----------- ----------- -----------
RECEIPTS:
2. CASH SALES 0.00
----------- ----------- ----------- ----------- -----------
3. COLLECTION OF ACCOUNTS RECEIVABLE 0.00
----------- ----------- ----------- ----------- -----------
4. LOANS & ADVANCES (attach list) 0.00
----------- ----------- ----------- ----------- -----------
5. SALE OF ASSETS 0.00
----------- ----------- ----------- ----------- -----------
6. OTHER (attach list) 0.00
----------- ----------- ----------- ----------- -----------
TOTAL RECEIPTS** 0.00 0.00 0.00 0.00 0.00
----------- ----------- ----------- ----------- -----------
(Withdrawal) Contribution by Individual
Debtor MFR-2*
----------- ----------- ----------- ----------- -----------
DISBURSEMENTS:
7. NET PAYROLL 0.00
----------- ----------- ----------- ----------- -----------
8. PAYROLL TAXES PAID 0.00
----------- ----------- ----------- ----------- -----------
9. SALES, USE & OTHER TAXES PAID 0.00
----------- ----------- ----------- ----------- -----------
10. SECURED/RENTAL/LEASES 0.00
----------- ----------- ----------- ----------- -----------
11. UTILITIES 0.00
----------- ----------- ----------- ----------- -----------
12. INSURANCE 0.00
----------- ----------- ----------- ----------- -----------
13. INVENTORY PURCHASES 0.00
----------- ----------- ----------- ----------- -----------
14. VEHICLE EXPENSES 0.00
----------- ----------- ----------- ----------- -----------
15. TRAVEL & ENTERTAINMENT 0.00
----------- ----------- ----------- ----------- -----------
16. REPAIRS, MAINTENANCE & SUPPLIES 0.00
----------- ----------- ----------- ----------- -----------
17. ADMINISTRATIVE & SELLING 0.00
----------- ----------- ----------- ----------- -----------
18. OTHER (attach list) 0.00
----------- ----------- ----------- ----------- -----------
TOTAL DISBURSEMENTS FROM OPERATIONS 0.00 0.00 0.00 0.00 0.00
----------- ----------- ----------- ----------- -----------
19. PROFESSIONAL FEES 0.00
----------- ----------- ----------- ----------- -----------
20. U.S. TRUSTEE FEES 0.00
----------- ----------- ----------- ----------- -----------
21. OTHER REORGANIZATION EXPENSES (attach list) 0.00
----------- ----------- ----------- ----------- -----------
TOTAL DISBURSEMENTS** 0.00 0.00 0.00 0.00 0.00
----------- ----------- ----------- ----------- -----------
22. NET CASH FLOW 0.00 0.00 0.00 0.00 0.00
----------- ----------- ----------- ----------- -----------
23. CASH - END OF MONTH (MOR-2) $ 0.00 $ 0.00 $ 0.00 $ 0.00 $ 0.00
=========== =========== =========== =========== ===========
MOR-7 * Applies to Individual debtors only
** Numbers for the current month should balance (match)
RECEIPTS and CHECKS/OTHER DISBURSEMENTS lines on MOR-8
Revised 07/01/98
10
CASE NAME: RIO GRANDE, INC.
-----------------
CASE NUMBER: 98-55619-C
-----------------
CASH ACCOUNT RECONCILIATION
MONTH OF JANUARY 1999
CONSOLIDATED
------------
BANK NAME
----- ------ ----- ----- ----- ----- -----
ACCOUNT NUMBER ACCOUNT WAS CLOSED AND NOT REOPENED
----- ------ ----- ----- ----- ----- -----
ACCOUNT TYPE TOTAL
----- ------ ----- ----- ----- ----- -----
BANK BALANCE $0.00 $ 0.00 $0.00 $0.00 $0.00 $0.00 $0.00
----- ------ ----- ----- ----- ----- -----
DEPOSITS IN TRANSIT 0.00 0.00 0.00 0.00 0.00 0.00 $0.00
----- ------ ----- ----- ----- ----- -----
BANK FEES, ADJUSTMENTS 0.00 22.00 0.00 0.00 0.00 0.00 $0.00
----- ------ ----- ----- ----- ----- -----
OUTSTANDING CHECKS 0.00 0.00 0.00 0.00 0.00 0.00 $0.00
----- ------ ----- ----- ----- ----- -----
ADJUSTED BANK BALANCE $0.00 $ 0.00 $0.00 $0.00 $0.00 $0.00 $0.00
----- ------ ----- ----- ----- ----- -----
BEGINNING CASH - PER BOOKS $0.00 $ 0.00 $0.00 $0.00 $0.00 $0.00 $0.00
----- ------ ----- ----- ----- ----- -----
RECEIPTS* 0.00 0.00 0.00 0.00 0.00 0.00 $0.00
----- ------ ----- ----- ----- ----- -----
TRANSFERS BETWEEN ACCOUNTS 0.00 0.00 0.00 0.00 0.00 0.00 $0.00
----- ------ ----- ----- ----- ----- -----
(WITHDRAWAL) CONTRIBUTION BY
INDIVIDUAL DEBTOR MFR-2 0.00 0.00 0.00 0.00 0.00 0.00 $0.00
----- ------ ----- ----- ----- ----- -----
CHECKS/OTHER DISBURSEMENTS* 0.00 0.00 0.00 0.00 0.00 0.00 $0.00
----- ------ ----- ----- ----- ----- -----
ENDING CASH - PER BOOKS $0.00 $ 0.00 $0.00 $0.00 $0.00 $0.00 $0.00
===== ====== ===== ===== ===== ===== =====
*Numbers should balance (match) TOTAL RECEIPTS and
TOTAL DISBURSEMENTS lines on MOR-7
MOR-8 Revised 7/01/98
11
CASE NAME: RIO GRANDE, INC.
-----------------------
CASE NUMBER: 98-55619-C
-----------------------
PAYMENTS TO INSIDERS AND PROFESSIONALS
Of the total disbursements shown for the month, list the amount paid to insiders
(as defined in Section 101(31)(A)-(F) of the U.S. Bankruptcy Code) and the
professions. Also, for insiders, identify the type of compensation paid (e.g.,
salary, commission, bonus, etc.) (Attach additional pages as necessary).
MONTH MONTH MONTH MONTH MONTH
INSIDERS: NAME/COMP TYPE November 1998 December 1998 January 1999
-------------- ------------- ------------ ----------- -----------
1. No Payments Are Made By Rio Grande Inc.
--------- ---------- ---------- ---------- ----------
2.
--------- ---------- ---------- ---------- ----------
3.
--------- ---------- ---------- ---------- ----------
4.
--------- ---------- ---------- ---------- ----------
5.
--------- ---------- ---------- ---------- ----------
6.
--------- ---------- ---------- ---------- ----------
TOTAL INSIDERS (MOR-1) $ 0.00 $ 0.00 $ 0.00 $ 0.00 $ 0.00
========= ========== ========== ========== ==========
MONTH MONTH MONTH MONTH MONTH
PROFESSIONALS November 1998 December 1998 January 1999
-------------- ------------- ------------ ----------- -----------
1.
--------- ---------- ---------- ---------- ----------
2.
--------- ---------- ---------- ---------- ----------
3.
--------- ---------- ---------- ---------- ----------
4.
--------- ---------- ---------- ---------- ----------
5.
--------- ---------- ---------- ---------- ----------
6.
--------- ---------- ---------- ---------- ----------
TOTAL PROFESSIONALS (MOR-1) $ 0.00 $ 0.00 $ 0.00 $ 0.00 $ 0.00
========= ========== ========== ========== ==========
MOR-9 Revised 07/01/98
12
MOR-1 UNITED STATES BANKRUPTCY COURT
CASE NAME: RIO GRANDE DRILLING COMPANY PETITION DATE: 11/12/98
---------------------------- ---------------
CASE NUMBER: 98-55620-C DISTRICT OF TEXAS: Western
---------------------------- ---------------
PROPOSED PLAN DATE: DIVISION: San Antonio
----------------------- ---------------
MONTHLY OPERATING REPORT SUMMARY FOR MONTH CONSOLIDATED YEAR
------------------------------------------ ------------ ----
MONTH November 1998 December 1998 January 1999
----- ------------- ------------- ------------
REVENUES (MOR-6) 313,288.85 387,800.69 324,703.20 0.00 0.00
---------- ---------- ---------- ---- ----
INCOME BEFORE INT; DEPREC./TAX (MOR-6) 50,285.41 216,691.28 103,494.59 0.00 0.00
---------- ---------- ---------- ---- ----
NET INCOME (LOSS) (MOR-6) 6,980.61 90,643.84 (30,219.00) 0.00 0.00
---------- ---------- ---------- ---- ----
PAYMENTS TO INSIDERS (MOR-9) 15,837.27 14,190.94 13,147.88 0.00 0.00
---------- ---------- ---------- ---- ----
PAYMENTS TO PROFESSIONALS (MOR-9) 0.00 0.00 0.00 0.00 0.00
---------- ---------- ---------- ---- ----
TOTAL DISBURSEMENTS (MOR-8) 52,456.47 90,951.25 95,140.13 0.00 0.00
========== ========== ========== ==== ====
***The original of this document must be filed with the United States
Bankruptcy Court and a copy must be sent to the United States Trustee***
REQUIRED INSURANCE MAINTAINED
AS OF SIGNATURE DATE EXP.
DATE
- ----------------------------- ---------
CASUALTY YES [X] NO [ ] 05-01-99
LIABILITY YES [X] NO [ ] 05-01-99
VEHICLE YES [X] NO [ ] 05-01-99
WORKER,S YES [X] NO [ ] 05-01-99
EXCESS YES [X] NO [ ] 05-01-99
Are all accounts receivable being collected within terms? Yes [X] No [ ]
Are all post-petition liabilities, including taxes, being paid within terms? Yes [X] No [ ]
Have any pre-petition liabilities been paid? Yes [X] No [ ]
If so, describe _________________________________________________________
Are all funds received being deposited into DIP bank accounts? Yes [X] No [ ]
Were any assets disposed of outside the normal course of business? Yes [ ] No [X]
If so, describe _________________________________________________________
Are all U.S. Trustee Quarterly Fee Payments current? Yes [X} No [ ]
What is the status of your Plan of Reorganization? Filed Plan - December 11, 1998
------------------------------
ATTORNEY NAME: DEBORAH D. WILLIAMSON
-----------------------------
FIRM NAME: COX & SMITH INCORPORATED
-----------------------------
ADDRESS: 112 EAST PECAN STREET
-----------------------------
SUITE 1800
-----------------------------
CITY, STATE, ZIP: SAN ANTONIO, TEXAS 78205
-----------------------------
TELEPHONE: (210)-554-5500
-----------------------------
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 X /s/ GARY SCHEELE TITLE: Vice President
-------------------- -------------------
(ORIGINAL SIGNATURE)
Gary Scheele 03/04/99
- ------------------------- ------------
(PRINT NAME OF SIGNATORY) DATE
MOR-1
Revised 07/01/98
13
CASE NAME: RIO GRANDE DRILLING COMPANY
---------------------------------
CASE NUMBER: 98-55620-C
------------------------------
COMPARATIVE BALANCE SHEETS
FILING DATE* MONTH MONTH MONTH MONTH MONTH
ASSETS CONSL. TO 10QSB- -------------- -------------- -------------
CONSOLIDATED 10/31/98 NOVEMBER 1998 DECEMBER 1998 JANUARY 1999
- ------------------------------- -------------- -------------- -------------- -------------- ----- -----
CURRENT ASSETS
Cash 433,711.27 521,725.78 469,759.18 563,757.95
-------------- -------------- -------------- -------------- ----- -----
Accounts Receivable, Net 500,112.87 540,618.59 706,256.01 601,712.29
-------------- -------------- -------------- -------------- ----- -----
Inventory: Lower of Cost
or Market 0.00 0.00 0.00 0.00
-------------- -------------- -------------- -------------- ----- -----
Prepaid Expenses 49,504.79 48,664.63 48,070.52 47,331.86
-------------- -------------- -------------- -------------- ----- -----
Investments 0.00 0.00 0.00 0.00
-------------- -------------- -------------- -------------- ----- -----
Other/INTERCOMPANY 0.00 0.00 0.00 0.00
-------------- -------------- -------------- -------------- ----- -----
TOTAL CURRENT ASSETS 983,328.93 1,111,009.00 1,224,085.71 1,212,802.10 0.00 0.00
-------------- -------------- -------------- -------------- ----- -----
PROPERTY, PLANT & EQUIP.
@ COST 27,143,247.43 26,904,985.15 26,907,532.40 26,929,932.72
-------------- -------------- -------------- -------------- ----- -----
Less Accumulated Depreciation 18,910,896.14 18,781,216.40 18,891,444.28 19,001,672.16
-------------- -------------- -------------- -------------- ----- -----
NET BOOK VALUE OF PP & E 8,232,351.29 8,123,768.75 8,016,088.12 7,928,260.56 0.00 0.00
-------------- -------------- -------------- -------------- ----- -----
OTHER ASSETS
1. Tax Deposits
-------------- -------------- -------------- -------------- ----- -----
2. Investments in Subsidiaries
-------------- -------------- -------------- -------------- ----- -----
3. Platform Abandonment Fund-
(Gulfmex) 360,857.03 363,678.08 363,678.09 363,678.08
-------------- -------------- -------------- -------------- ----- -----
4. Deferred Loan and Organi-
zation Costs 141,456.34 140,958.50 140,460.66 139,562.82
-------------- -------------- -------------- -------------- ----- -----
TOTAL ASSETS $ 9,717,993.59 $ 9,739,414.33 $ 9,744,312.58 $ 9,644,303.56 $0.00 $0.00
============== ============== ============== ============== ===== =====
* Per Schedules and Statement of Affairs
MOR-2 Revised 07/01/98
14
CASE NAME: RIO GRANDE DRILLING COMPANY
---------------------------
CASE NUMBER: 98-55620-C
---------------------------
CONSOLIDATED COMPARATIVE BALANCE SHEETS
FILING DATE* MONTH MONTH MONTH MONTH MONTH
CONSL. TO --------------- --------------- ---------------
LIABILITIES & OWNER'S EQUITY 10QSB-10/31/98 NOVEMBER 1998 DECEMBER 1998 JANUARY 1999
---------------- --------------- --------------- --------------- ------ ------
LIABILITIES
POST-PETITION LIABILITIES(MOR-4) 418,150.61 332,134.82 257,386.30
---------------- --------------- --------------- --------------- ------ ------
PRE-PETITION LIABILITIES
---------------- --------------- --------------- --------------- ------ ------
Notes Payable - Secured
---------------- --------------- --------------- --------------- ------ ------
Priority Debt 13,141,806.63 13,141,248.14 13,141,806.63 13,141,806.63
---------------- --------------- --------------- --------------- ------ ------
Federal Income Tax
---------------- --------------- --------------- --------------- ------ ------
FICA/Withholding
---------------- --------------- --------------- --------------- ------ ------
Unsecured Debt
---------------- --------------- --------------- --------------- ------ ------
Other - Trade, Royalty 1,368,283.35 965,131.36 965,131.36 965,131.36
---------------- --------------- --------------- --------------- ------ ------
Deferred Abandonment Expense 526,343.99 526,343.99 526,343.99 526,343.99
---------------- --------------- --------------- --------------- ------ ------
Advance - Affiliates 9,122,544.55 9,122,544.55 9,122,544.55 9,122,544.55
---------------- --------------- --------------- --------------- ------ ------
Minority interest - Limited Partners 157,334.14 157,334.14 162,445.69 167,404.51
---------------- --------------- --------------- --------------- ------ ------
TOTAL PRE-PETITION LIABILITIES 24,316,312.66 23,912,602.18 23,918,272.22 23,923,231.04 0.00 0.00
---------------- --------------- --------------- --------------- ------ ------
TOTAL LIABILITIES 24,316,312.66 24,330,752.79 24,250,407.04 24,180,617.34 0.00 0.00
---------------- --------------- --------------- --------------- ------ ------
OWNER'S EQUITY (DEFICIT)
PREFERRED STOCK 0.00 0.00 0.00 0.00
---------------- --------------- --------------- --------------- ------ ------
COMMON STOCK 100.00 100.00 100.00 100.00
---------------- --------------- --------------- --------------- ------ ------
ADDITIONAL PAID-IN CAPITAL 0.00 0.00 0.00 0.00
---------------- --------------- --------------- --------------- ------ ------
RETAINED EARNINGS: Filing Date (14,598,419.07) (14,598,419.07) (14,598,419.07) (14,598,419.07)
---------------- --------------- --------------- --------------- ------ ------
RETAINED EARNINGS: Post Filing Date 0.00 6,980.61 92,224.61 62,005.29
---------------- --------------- --------------- --------------- ------ ------
TOTAL OWNER'S EQUITY (NET WORTH) (14,598,319.07) (14,591,338.46) (14,506,094.46) (14,536,313.78) 0.00 0.00
---------------- --------------- --------------- --------------- ------ ------
TOTAL LIABILITIES & OWNER'S EQUITY $ 9,717,993.59 $ 9,739,414.33 $ 9,744,312.58 $ 9,644,303.56 $ 0.00 $ 0.00
================ =============== =============== =============== ====== ======
* Per Schedules and Statement of Affairs
MOR-3 Revised 6/10/98
15
CASE NAME: RIO GRANDE DRILLING COMPANY
-----------------------
CASE NUMBER: 98-55620-C
---------------------
SCHEDULE OF POST-PETITION LIABILITIES
MONTH MONTH MONTH MONTH
NOVEMBER 1998 DECEMBER 1998 JANUARY 1999
------------- ------------- ------------ -----------
TRADE ACCOUNTS PAYABLE CONSOLIDATED 243,726.12 163,863.55 116,622.86
----------- ----------- ----------- -----------
TAX PAYABLE
Federal Payroll Taxes 497.53 44.57 44.57
----------- ----------- ----------- -----------
State Payroll Taxes 795.21 871.15 761.03
----------- ----------- ----------- -----------
Ad Valorem Taxes 4,000.00 8,000.00 12,000.00
----------- ----------- ----------- -----------
Other Taxes-State Franchise/Income 21,947.55 22,747.43 23,476.46
----------- ----------- ----------- -----------
TOTAL TAXES PAYABLE 27,240.29 31,663.15 36,282.06 0.00
----------- ----------- ----------- -----------
SECURED DEBT POST-PETITION (558.49) (1,116.98) (1,116.98)
----------- ----------- ----------- -----------
ACCRUED INTEREST PAYABLE 58,363.98 58,265.28 58,265.28
----------- ----------- ----------- -----------
ACCRUED DIVIDENDS PAYABLE 0.00 0.00 0.00
----------- ----------- ----------- -----------
ACCRUED PROFESSIONAL FEES* 0.00 0.00 0.00
----------- ----------- ----------- -----------
OTHER ACCRUED LIABILITIES
1. Royalties 74,885.20 63,006.91 32,308.55
----------- ----------- ----------- -----------
2. Payroll 3,976.72 0.00 0.00
----------- ----------- ----------- -----------
3. Insurance (3,692.10) (11,147.49) (13,572.88)
----------- ----------- ----------- -----------
4. Deferred Abandonment Expense 1,459.31 5,159.31 8,859.31
----------- ----------- ----------- -----------
5. Advance - Rio Grande, Inc. 5,227.41 12,954.38 3,171.76
----------- ----------- ----------- -----------
6. Minority Interest-Limited Partners 5,335.67 5,111.55 10,070.37
----------- ----------- ----------- -----------
7. Miscellaneous 2,186.50 4,375.16 6,495.97
----------- ----------- ----------- -----------
TOTAL POST-PETITION LIABILITIES (MOR-3) $418,150.61 $332,134.82 $257,386.30 $ 0.00
=========== =========== =========== ===========
* PAYMENT REQUIRES COURT APPROVAL
MOR-4
16
CASE NAME: RIO GRANDE DRILLING COMPANY
CASE NUMBER: 98-55620-C
AGING OF POST-PETITION LIABILITIES
CONSOLIDATED MONTH JANUARY 1999
TRADE FEDERAL STATE AD VALOREM, ADVANCES/ACCOUNTS ROYALTIES AND
DAYS TOTAL ACCOUNTS TAXES TAXES OTHER TAXES PAYABLE TO AFFILIATES REVENUE SUSPENSE OTHER
- -------- ----------- ----------- -------- ------- ----------- --------------------- ---------------- --------
0-30 238,171.75 116,622.86 44.57 761.03 27,476.46 3,171.76 32,308.55 57,786.52
- -------- ----------- ----------- ------ ------- ---------- --------- ---------- ----------
31-60 15,214.55 0.00 0.00 0.00 4,000.00 5,227.41 0.00 5.987.14
- -------- ----------- ----------- ------ ------- ---------- --------- ---------- ----------
61-90 4,000.00 0.00 0.00 0.00 4,000.00 0.00 0.00 0.00
- -------- ----------- ----------- ------ ------- ---------- --------- ---------- ----------
91+ 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
- -------- ----------- ----------- ------ ------- ---------- --------- ---------- ----------
TOTAL(1) $257,386.30 $116,622.86 $44.57 $761.03 $35,476.46 $8,399.17 $32,308.55 $63,773.66
======== =========== =========== ====== ======= ========== ========= ========== ==========
(1) AGING OF ACCOUNTS RECEIVABLE
MONTH January 1999 January 1999
---------------------------- -----------------------
OIL & GAS SALES JOINT INTEREST BILLINGS
- -------- ---------------------------- ----------------------- --------- --------- --------- --------- --------- ---------
0-30 DAYS 522,317.66 13,633,68
- ---------- ----------- ---------- --------- --------- --------- --------- --------- ---------
31-60 DAYS 8,479.81 3,360.00
- ---------- ----------- ---------- --------- --------- --------- --------- --------- ---------
61-90 DAYS 9,338.82 1,782.69
- ---------- ----------- ---------- --------- --------- --------- --------- --------- ---------
91+ DAYS (8,975.59) 51,775.22
- ---------- ----------- ---------- --------- --------- --------- --------- --------- ---------
TOTAL $531,160.70 $70,551.59 $ 0.00 $ 0.00 $ 0.00 $ 0.00
========== =========== ========== ========= ========= ========= ========= ========= =========
17
CASE NAME: RIO GRANDE DRILLING COMPANY
-----------------------------------
CASE NUMBER: 98-55620-C
-----------------------------------
STATEMENT OF INCOME (LOSS) CONSOLIDATED
============================================================================================================================
MONTH MONTH MONTH
--------------- --------------- -------------- FILING TO
NOVEMBER 1998 DECEMBER 1998 JANUARY 1999 MONTH DATE
------------- ------------- -------------- ----- -------------
REVENUES (MOR-1) 313,288.85 387,800.69 324,703.20 1,025,792.74
------------ ----------- -------------- ----- -------------
TOTAL COST OF REVENUES 192,901.79 97,470.14 162,732.10 453,104.03
------------ ----------- -------------- ----- -------------
GROSS PROFIT 120,387.06 290,330.55 161,971.10 0.00 572,688.71
------------ ----------- -------------- ----- -------------
OPERATING EXPENSE:
Selling & Market 0.00 0.00 0.00 0.00
------------ ----------- -------------- ----- -------------
General & Administrative 54,264.38 59,448.33 45,328.63 159,041.34
------------ ----------- -------------- ----- -------------
Insiders Compensation 15,837.27 14,190.94 13,147.88 43,176.09
------------ ----------- -------------- ----- -------------
Professional Fees 0.00 0.00 0.00 0.00
------------ ----------- -------------- ----- -------------
Other 0.00
------------ ----------- -------------- ----- -------------
Other 0.00
------------ ----------- -------------- ----- -------------
TOTAL OPERATING EXPENSES 70,101.65 73,639.27 58,476.51 0.00 202,217.43
------------ ----------- -------------- ----- -------------
INCOME BEFORE INT. DEPR/TAX (MOR-1) 50,285.41 216,691.28 103,494.59 0.00 370,471.28
------------ ----------- -------------- ----- -------------
INTEREST EXPENSE 58,423.61 158.33 85.63 58,667.57
------------ ----------- -------------- ----- -------------
DEPRECIATION/AMORTIZATION 114,783.72 114,425.72 121,175.92 350,385.36
------------ ----------- -------------- ----- -------------
OTHER (INCOME) EXPENSE* 3,291.46 9,752.47 6,908.22 19,952.15
------------ ----------- -------------- ----- -------------
OTHER ITEMS**(GAIN/LOSS ON SALE OF ASSET (139,114.66) 0.00 0.00 (139,114.66)
------------ ----------- -------------- ----- -------------
MINORITY INTEREST OF LIMITED PARTNERS 5,335.67 1,125.92 4,958.82 11,420.41
------------ ----------- -------------- ----- -------------
TOTAL INT. DEPR & OTHER ITEMS 42,719.80 125,462.44 133,128.59 0.00 301,310.83
------------ ----------- -------------- ----- -------------
NET INCOME BEFORE TAXES 7,565.61 91,228.84 (29,634.00) 0.00 69,160.45
------------ ----------- -------------- ----- -------------
FEDERAL/STATE INCOME TAXES 585.00 585.00 585.00 1,755.00
------------ ----------- -------------- ----- -------------
DIVIDENDS APPLICABLE TO PREFERRED STOCK 0.00 0.00 0.00 0.00
------------ ----------- -------------- ----- -------------
NET INCOME (LOSS) (MOR-1) $ 6,980.61 $ 90,643.84 ($ 30,219.00) $0.00 $ 67,405.45
============ =========== ============= ===== =============
Accrual Accounting Required, Otherwise Footnote with Explanation
* Footnote Mandatory
** Unusual and/or infrequent item(s) outside the ordinary course of business
requires footnote.
MOR-6
Revised 07/01/98
18
CASE NAME: RIO GRANDE DRILLING COMPANY
--------------------------------
CASE NUMBER: 98-55620-C
------------------------------
CONSOLIDATED
CASH RECEIPTS AND MONTH MONTH MONTH MONTH FILING TO
DISBURSEMENTS NOVEMBER 1998 DECEMBER 1998 JANUARY 1999 DATE
------------- ------------- ------------ ----------- -----------
1. CASH - BEGINNING OF MONTH $ 8,614.26 $ 20,159.79 $ 10,756.54 $ 8,614.26
----------- ----------- ----------- ----------- -----------
RECEIPTS:
2. CASH SALES 0.00 0.00 0.00
----------- ----------- ----------- ----------- -----------
3. COLLECTION OF ACCOUNTS RECEIVABLE 0.00 0.00 0.00
----------- ----------- ----------- ----------- -----------
4. LOANS & ADVANCES (attach list Inter-
Company Transfers) 64,000.00 81,550.00 74,090.00 219,640.00
----------- ----------- ----------- ----------- -----------
5. SALE OF ASSETS 0.00 0.00
----------- ----------- ----------- ----------- -----------
6. OTHER (attach list) 0.00 0.00
----------- ----------- ----------- ----------- -----------
TOTAL RECEIPTS** 64,000.00 81,550.00 74,090.00 0.00 219,640.00
----------- ----------- ----------- ----------- -----------
(Withdrawal) Contribution by Individual
Debtor MFR-2*
DISBURSEMENTS:
7. NET PAYROLL 32,976.38 33,385.95 31,126.95 97,489.28
----------- ----------- ----------- ----------- -----------
8. PAYROLL TAXES PAID 5,609.10 15,450.36 15,071.24 36,130.70
----------- ----------- ----------- ----------- -----------
9. SALES, USE & OTHER TAXES PAID 0.00
----------- ----------- ----------- ----------- -----------
10. SECURED/RENTAL/LEASES 0.00
----------- ----------- ----------- ----------- -----------
11. UTILITIES 1,559.17 1,311.00 1,169.00 4,039.17
----------- ----------- ----------- ----------- -----------
12. INSURANCE 464.97 164.00 364.00 992.97
----------- ----------- ----------- ----------- -----------
13. INVENTORY PURCHASES 0.00
----------- ----------- ----------- ----------- -----------
14. VEHICLE EXPENSES 731.03 617.00 1,069.00 2,417.03
----------- ----------- ----------- ----------- -----------
15. TRAVEL & ENTERTAINMENT 1,541.73 1,960.00 138.00 3,639.73
----------- ----------- ----------- ----------- -----------
16. REPAIRS, MAINTENANCE & SUPPLIES 1,027.04 0.00 0.00 1,027.04
----------- ----------- ----------- ----------- -----------
17. ADMINISTRATIVE & SELLING 4,047.05 38,062.94 46,201.94 88,311.93
----------- ----------- ----------- ----------- -----------
18. OTHER (attach list) 4,499.63 0.00 0.00 4,499.63
----------- ----------- ----------- ----------- -----------
TOTAL DISBURSEMENTS FROM OPERATIONS 52,456.47 90,951.25 95,140.13 0.00 238,547.48
----------- ----------- ----------- ----------- -----------
19. PROFESSIONAL FEES 0.00
----------- ----------- ----------- ----------- -----------
20. U.S. TRUSTEE FEES 0.00
----------- ----------- ----------- ----------- -----------
21. OTHER REORGANIZATION EXPENSES (attach list) 0.00
----------- ----------- ----------- ----------- -----------
TOTAL DISBURSEMENTS** 52,456.49 90,951.25 95,140.13 0.00 238,547.48
----------- ----------- ----------- ----------- -----------
22. NET CASH FLOW 11,543.53 (9,401.25) (21,050.13) 0.00 (18,907.48)
----------- ----------- ----------- ----------- -----------
23. CASH - END OF MONTH (MOR-2) $ 20,157.79 $ 10,756.54 $(10,293.59) $ 0.00 $(10,293.22)
=========== =========== =========== =========== ===========
MOR-7 * Applies to Individual debtors only
** Numbers for the current month should balance (match)
RECEIPTS and CHECKS/OTHER DISBURSEMENTS lines on MOR-8
19
CASE NAME: RIO GRANDE DRILLING COMPANY
---------------------------
CASE NUMBER: 98-55620-C
---------------------------
CASH ACCOUNT RECONCILIATION
MONTH OF DECEMBER 1999
CONSOLIDATED
----------------------
BANK NAME Broadway National Bank Broadway National Bank
---------------------- ---------------------- ----- ----- ----- -----
ACCOUNT NUMBER Account No. 0363464 Account No. 0353456
---------------------- ---------------------- ----- ----- ----- -----
ACCOUNT TYPE OPERATING-BGD AFE-ESCROW-BGDG
---------------------- ---------------------- ----- ----- ----- -----
BANK BALANCE $ 2,147.06 $ 8,272.62 $0.00 $0.00 $0.00 $0.00
---------------------- ---------------------- ----- ----- ----- -----
DEPOSITS IN TRANSIT 0.00 0.00 0.00 0.00 0.00 0.00
---------------------- ---------------------- ----- ----- ----- -----
BANK FEES, ADJUSTMENTS 0.00 0.00 0.00 0.00 0.00 0.00
---------------------- ---------------------- ----- ----- ----- -----
OUTSTANDING CHECKS 20,712.90 0.00 0.00 0.00 0.00 0.00
---------------------- ---------------------- ----- ----- ----- -----
ADJUSTED BANK BALANCE $ (18,365.84) $ 8,272.62 $0.00 $0.00 $0.00 $0.00
---------------------- ---------------------- ----- ----- ----- -----
BEGINNING CASH - PER BOOKS $ 2,484.39 $ 8,272.62 $0.00 $0.00 $0.00 $0.00
---------------------- ---------------------- ----- ----- ----- -----
RECEIPTS* 0.00 0.00 0.00 0.00 0.00 0.00
---------------------- ---------------------- ----- ----- ----- -----
TRANSFERS BETWEEN ACCOUNTS 24,090.00 0.00 0.00 0.00 0.00 0.00
---------------------- ---------------------- ----- ----- ----- -----
(WITHDRAWAL) CONTRIBUTION BY
INDIVIDUAL DEBTOR MFR-2 0.00 0.00
---------------------- ---------------------- ----- ----- ----- -----
CHECKS/OTHER DISBURSEMENTS* 95,140.13 0.00 0.00 0.00 0.00 0.00
---------------------- ---------------------- ----- ----- ----- -----
ENDING CASH - PER BOOKS $ (18,365.84) $ 8,272.62 $0.00 $0.00 $0.00 $0.00
====================== ====================== ===== ===== ===== =====
BANK NAME
----- ----- -----------
ACCOUNT NUMBER
----- ----- -----------
ACCOUNT TYPE TOTAL
----- ----- -----------
BANK BALANCE $0.00 $0.00 $ 10,419.68
----- ----- -----------
DEPOSITS IN TRANSIT 0.00 0.00 $ 0.00
----- ----- -----------
BANK FEES, ADJUSTMENTS 0.00
----- ----- -----------
OUTSTANDING CHECKS 0.00 0.00 $ 20,712.90
----- ----- -----------
ADJUSTED BANK BALANCE $0.00 $0.00 $(10,293.22)
----- ----- -----------
BEGINNING CASH - PER BOOKS $0.00 $0.00 $ 10,756.91
----- ----- -----------
RECEIPTS* 0.00 0.00 $ 0.00
----- ----- -----------
TRANSFERS BETWEEN ACCOUNTS 0.00 0.00 $ 74,090.00
----- ----- -----------
(WITHDRAWAL) CONTRIBUTION BY 0.00 $ 0.00
----- -----------
INDIVIDUAL DEBTOR MFR-2 $ 0.00
----- ----- -----------
CHECKS/OTHER DISBURSEMENTS* 0.00 0.00 $ 95,140.13
----- ----- -----------
ENDING CASH - PER BOOKS $0.00 $0.00 $(10,293.22)
===== ===== ===========
MOR-8 *Numbers should balance (match) TOTAL RECEIPTS and
TOTAL DISBURSEMENTS lines on MOR-7
Revised 7/01/98
20
CASE NAME: RIO GRANDE DRILLING COMPANY
------------------------------------
CASE NUMBER: 98-55620-C
------------------------------------
PAYMENTS TO INSIDERS AND PROFESSIONALS
Of the total disbursements shown for the month, list the amount paid to insiders
(as defined in Section 101(31)(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.) (Attach additional pages as necessary).
MONTH MONTH MONTH MONTH
INSIDERS: NAME/COMP TYPE November 1998 December 1998 January 1999
------------------------- -------------- ------------- ------------ -----------
1. Guy Bob Buschman-Salary 7,387.96 7,387.96 6,807.81
---------- ---------- ---------- ----------
2. Guy Bob Buschman-Expense Reimbursement 1,541.73 0.00 0.00
---------- ---------- ---------- ----------
3. Gary Scheele-Salary 6,376.76 6,376.76 5,913.84
---------- ---------- ---------- ----------
4. Gary Scheele-Expense Reimbursement 104.60 0.00 0.00
---------- ---------- ---------- ----------
5. Robert A. Buschman-Salary 426.22 426.22 426.23
---------- ---------- ---------- ----------
6. Robert A. Buschman-Expense Reimbursement 0.00 0.00 0.00
---------- ---------- ---------- ----------
TOTAL INSIDERS (MOR-1) $15,837.27 $14,190.94 $13,147.88 $ 0.00
========== ========== ========== ==========
MONTH MONTH MONTH MONTH
PROFESSIONALS November 1998
------------- -------------- ------------- ------------ -----------
1.
--------- ---------- ---------- ----------
2.
--------- ---------- ---------- ----------
3.
--------- ---------- ---------- ----------
4.
--------- ---------- ---------- ----------
5.
--------- ---------- ---------- ----------
6.
--------- ---------- ---------- ----------
TOTAL PROFESSIONALS (MOR-1) $ 0.00 $ 0.00 $ 0.00 $ 0.00
========= ========== ========== ==========
MOR-9 Revised 07/01/98
21
MOR-1 UNITED STATES BANKRUPTCY COURT
CASE NAME: RIO GRANDE DESERT OIL COMPANY PETITION DATE: 11/12/98
------------------------------ ---------------
CASE NUMBER: 98-55621-C DISTRICT OF TEXAS: Western
------------------ ---------------
PROPOSED PLAN DATE: DIVISION: San Antonio
------------- ---------------
MONTHLY OPERATING REPORT SUMMARY FOR MONTH YEAR
------------------------------------------ ----
MONTH November 1998 December 1998 January 1999
----- ------------- ------------- ------------
REVENUES (MOR-6) 0.00 0.00 0.00 0.00 0.00
---------- ---------- ---------- ---- ----
INCOME BEFORE INT; DEPREC./TAX (MOR-6) (31.40) (10,887.69) 0.00 0.00 0.00
---------- ---------- ---------- ---- ----
NET INCOME (LOSS) (MOR-6) 118,778.07 129,914.03 17,452.55 0.00 0.00
---------- ---------- ---------- ---- ----
PAYMENTS TO INSIDERS (MOR-9) 63,865.00 80,804.71 74,090.00 0.00 0.00
---------- ---------- ---------- ---- ----
PAYMENTS TO PROFESSIONALS (MOR-9) 0.00 0.00 0.00 0.00 0.00
---------- ---------- ---------- ---- ----
TOTAL DISBURSEMENTS (MOR-8) 63,896.40 91,692.40 0.00 0.00 0.00
========== ========== ========== ==== ====
*** The original of this document must be filed with the United States
Bankruptcy Court and a copy must be sent to the United States Trustee***
REQUIRED INSURANCE MAINTAINED
AS OF SIGNATURE DATE EXP.
DATE
- ----------------------------- ---------
CASUALTY YES [X] NO [ ] 05-01-99
LIABILITY YES [X] NO [ ] 05-01-99
VEHICLE YES [X] NO [ ] 05-01-99
WORKER'S YES [X] NO [ ] 05-01-99
EXCESS YES [X] NO [ ] 05-01-99
Are all accounts receivable being collected within terms? Yes [X] No [ ]
Are all post-petition liabilities, including taxes, being paid within terms? Yes [X] No [ ]
Have any pre-petition liabilities been paid? Yes [ ] No [ ]
If so, describe _________________________________________________________
Are all funds received being deposited into DIP bank accounts? Yes [X] No [ ]
Were any assets disposed of outside the normal course of business? Yes [ ] No [X]
If so, describe _________________________________________________________
Are all U.S. Trustee Quarterly Fee Payments current? Yes [X} No [ ]
What is the status of your Plan of Reorganization? Filed Plan - December 11, 1998
------------------------------
ATTORNEY NAME: DEBORAH D. WILLIAMSON
-----------------------------
FIRM NAME: COX & SMITH INCORPORATED
-----------------------------
ADDRESS: 112 EAST PECAN STREET
-----------------------------
SUITE 1800
-----------------------------
CITY, STATE, ZIP: SAN ANTONIO, TEXAS 78205
-----------------------------
TELEPHONE: (210)-554-5500
-----------------------------
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 X /s/ GARY SCHEELE TITLE: Vice President
-------------------- -------------------
(ORIGINAL SIGNATURE)
Gary Scheele 03/04/99
- ------------------------- ------------
(PRINT NAME OF SIGNATORY) DATE
MOR-1
Revised 07/01/98
22
CASE NAME: RIO GRANDE DESERT OIL COMPANY
--------------------------------
CASE NUMBER: 98-55621-C
------------------------------
COMPARATIVE BALANCE SHEETS
FILING DATE* MONTH MONTH MONTH MONTH MONTH
ASSETS CONSL. TO 10QSB-
10/31/98 NOVEMBER 1998 DECEMBER 1998 JANUARY 1999
- -----------------------------------------------------------------------------------------------------------------------
CURRENT ASSETS
Cash 197.75 166.35 0.00 0.00
-------------- -------------- -------------- -------------- ----- -----
Accounts Receivable, Net
-------------- -------------- -------------- -------------- ----- -----
Inventory: Lower of Cost
or Market
-------------- -------------- -------------- -------------- ----- -----
Prepaid Expenses
-------------- -------------- -------------- -------------- ----- -----
Investments
-------------- -------------- -------------- -------------- ----- -----
Other
-------------- -------------- -------------- -------------- ----- -----
TOTAL CURRENT ASSETS 197.75 166.35 0.00 0.00 0.00 0.00
-------------- -------------- -------------- -------------- ----- -----
PROPERTY, PLANT & EQUIP.
@ COST
-------------- -------------- -------------- -------------- ----- -----
Less Accumulated Depreciation
-------------- -------------- -------------- -------------- ----- -----
NET BOOK VALUE OF PP & E 0.00 0.00 0.00 0.00 0.00 0.00
-------------- -------------- -------------- -------------- ----- -----
OTHER ASSETS
1. Tax Deposits
-------------- -------------- -------------- -------------- ----- -----
2. Investments in Subsidiaries 10,451,708.91 10,584,321.51 10,733,436.07 10,764,319.60
-------------- -------------- -------------- -------------- ----- -----
3. Organization Costs, net 402.90 361.90 320.90 279.90
-------------- -------------- -------------- -------------- ----- -----
4. Minority Interests-Limited
Partnerships (831,792.65) (837,061.63) (836,840.32) (841,737.15)
-------------- -------------- -------------- -------------- ----- -----
TOTAL ASSETS $ 9,620,516.91 $ 9,747,788.13 $ 9,896,916.65 $ 9,922,862.35 $0.00 $0.00
============== ============== ============== ============== ===== =====
* Per Schedules and Statement of Affairs
MOR-2 Revised 07/01/98
23
CASE NAME: RIO GRANDE DESERT OIL COMPANY
-----------------------------
CASE NUMBER: 98-55621-C
-----------------------------
COMPARATIVE BALANCE SHEETS
FILING DATE* MONTH MONTH MONTH MONTH MONTH
CONSL. TO --------------- --------------- ---------------
10QSB-10/31/98 NOVEMBER 1998 DECEMBER 1998 JANUARY 1999
---------------- --------------- --------------- --------------- ------ ------
LIABILITIES
POST-PETITION LIABILITIES(MOR-4) 8,493.15 27,707.64 36,200.79
---------------- --------------- --------------- --------------- ------ ------
PRE-PETITION LIABILITIES
---------------- --------------- --------------- --------------- ------ ------
Notes Payable - Secured
---------------- --------------- --------------- --------------- ------ ------
Priority Debt
---------------- --------------- --------------- --------------- ------ ------
Federal Income Tax
---------------- --------------- --------------- --------------- ------ ------
FICA/Withholding
---------------- --------------- --------------- --------------- ------ ------
Unsecured Debt
---------------- --------------- --------------- --------------- ------ ------
Other - Advances - Affiliates 14,705,802.06 14,705,802.06 14,705,802.06 14,705,802.06
---------------- --------------- --------------- --------------- ------ ------
TOTAL PRE-PETITION LIABILITIES 14,705,802.06 14,705,802.06 14,705,802.06 14,705,802.06 0.00 0.00
---------------- --------------- --------------- --------------- ------ ------
TOTAL LIABILITIES 14,705,802.06 14,714,295.21 14,733,509.70 14,742,002.85 0.00 0.00
---------------- --------------- --------------- --------------- ------ ------
OWNER'S EQUITY (DEFICIT)
PREFERRED STOCK
---------------- --------------- --------------- --------------- ------ ------
COMMON STOCK 1,000.00 1,000.00 1,000.00 1,000.00
---------------- --------------- --------------- --------------- ------ ------
ADDITIONAL PAID-IN CAPITAL
---------------- --------------- --------------- --------------- ------ ------
RETAINED EARNINGS: Filing Date (5,086,285.15) (5,086,285.15) (5,086,285.15) (5,086,285.15)
---------------- --------------- --------------- --------------- ------ ------
RETAINED EARNINGS: Post Filing Date 0.00 118,778.07 248,692.10 266,144.65
---------------- --------------- --------------- --------------- ------ ------
TOTAL OWNER'S EQUITY (NET WORTH) (5,085,285.15) (4,966,507.08) (4,836,593.05) (4,819,140.50) 0.00 0.00
---------------- --------------- --------------- --------------- ------ ------
TOTAL LIABILITIES & OWNER'S EQUITY $ 9,620,516.91 $ 9,747,788.13 $ 9,896,916.65 $ 9,922,862.35 $ 0.00 $ 0.00
================ =============== =============== =============== ====== ======
* Per Schedules and Statement of Affairs
MOR-3 Revised 07/01/98
24
CASE NAME: RIO GRANDE DESERT OIL COMPANY
----------------------------------
CASE NUMBER: 98-55621-C
--------------------------------
SCHEDULE OF POST-PETITION LIABILITIES
MONTH MONTH MONTH MONTH MONTH
------------- ------------- ------------ ----------- -----------
TRADE ACCOUNTS PAYABLE NOVEMBER 1998 DECEMBER 1998 JANUARY 1999
------------- ------------- ------------ ----------- -----------
TAX PAYABLE
Federal Payroll Taxes
----------- ----------- ----------- ----------- -----------
State Payroll Taxes
----------- ----------- ----------- ----------- -----------
Ad Valorem Taxes
----------- ----------- ----------- ----------- -----------
Other Taxes
----------- ----------- ----------- ----------- -----------
TOTAL TAXES PAYABLE 0.00 0.00 0.00 0.00 0.00
----------- ----------- ----------- ----------- -----------
SECURED DEBT POST-PETITION
----------- ----------- ----------- ----------- -----------
ACCRUED INTEREST PAYABLE
----------- ----------- ----------- ----------- -----------
ACCRUED PROFESSIONAL FEES*
----------- ----------- ----------- ----------- -----------
OTHER ACCRUED LIABILITIES
1. Advance-Affiliates 8,493.15 27,707.64 36,200.79
----------- ----------- ----------- ----------- -----------
2.
----------- ----------- ----------- ----------- -----------
3.
----------- ----------- ----------- ----------- -----------
TOTAL POST-PETITION LIABILITIES (MOR-3) $ 8,493.15 $ 27,707.64 $ 36,200.79 $ 0.00 $ 0.00
=========== =========== =========== =========== ===========
* PAYMENT REQUIRES COURT APPROVAL
MOR-4
Revised 07/01/98
25
CASE NAME: RIO GRANDE DESERT OIL COMPANY
-----------------------------------
CASE NUMBER: 98-55621-C
-----------------------------------
AGING OF POST-PETITION LIABILITIES
MONTH NOVEMBER 1998
------------- ----------- ---------------------
TRADE FEDERAL STATE AD VALOREM, OTHER
DAYS TOTAL ACCOUNTS TAXES TAXES OTHER TAXES ADVANCES-AFFILIATES
- -------- ----------- ----------- -------- ------- ----------- ---------------------
0-30 19,214.49 19,214.49
- -------- ----------- ----------- ------ ------- ---------- ----------
31-60 8,493.15 8,493.15
- -------- ----------- ----------- ------ ------- ---------- ----------
61-90 0.00 0.00
- -------- ----------- ----------- ------ ------- ---------- ----------
91+ 0.00 0.00
- -------- ----------- ----------- ------ ------- ---------- ----------
TOTAL $ 27,707.64 $ 0.00 $ 0.00 $ 0.00 $ 0.00 $27,707.64
======== =========== =========== ====== ======= ========== ==========
AGING OF ACCOUNTS RECEIVABLE
MONTH
- ---------- ----------- ----------- ------ ------- ---------- ----------
0-30 DAYS
- ---------- ----------- ----------- ------ ------- ---------- ----------
31-60 DAYS
- ---------- ----------- ----------- ------ ------- ---------- ----------
61-90 DAYS
- ---------- ----------- ----------- ------ ------- ---------- ----------
91+ DAYS
- ---------- ----------- ----------- ------ ------- ---------- ----------
TOTAL $ 0.00 $ 0.00 $ 0.00 $ 0.00 $ 0.00 $ 0.00
=========== =========== ====== ======= ========== ==========
MOR-5 Revised 07/01/98
26
CASE NAME: RIO GRANDE DESERT OIL COMPANY
------------------------------
CASE NUMBER: 98-55621-C
------------------------------
STATEMENT OF INCOME (LOSS)
MONTH MONTH MONTH MONTH FILING TO
November 1998 December 1998 January 1999 DATE
------------- ------------- ------------ ----- -----------
REVENUES (MOR-1) 0.00
----------- ----------- ---------- ----- -----------
TOTAL COST OF REVENUES 0.00
----------- ----------- ---------- ----- -----------
GROSS PROFIT 0.00 0.00 0.00 0.00 0.00
----------- ----------- ---------- ----- -----------
OPERATING EXPENSE:
Selling & Marketing
----------- ----------- ---------- ----- -----------
General & Administrative 31.40 22.69 0.00 54.09
----------- ----------- ---------- ----- -----------
Insiders Compensation 0.00
----------- ----------- ---------- ----- -----------
Professional Fees 0.00
----------- ----------- ---------- ----- -----------
Other-LOUISIANA FRANCHISE/INCOME TAXES 0.00 10,865.00 0.00 10,865.00
----------- ----------- ---------- ----- -----------
Other 0.00
----------- ----------- ---------- ----- -----------
TOTAL OPERATING EXPENSES 31.40 10,887.69 0.00 0.00 10,919.09
----------- ----------- ---------- ----- -----------
INCOME BEFORE INT. DEPR/TAX (MOR-1) (31.40) (10,887.69) 0.00 0.00 (10,919.09)
----------- ----------- ---------- ----- -----------
INTEREST EXPENSE - AFFILIATE 8,493.15 8,493.15 8,493.15 25,479.45
----------- ----------- ---------- ----- -----------
DEPRECIATION/AMORTIZATION 41.00 41.00 41.00 123.00
----------- ----------- ---------- ----- -----------
OTHER (INCOME) EXPENSE* 0.00
----------- ----------- ---------- ----- -----------
OTHER ITEMS**EQUITY IN LIMITED PARTNERSHIP-(OFFSHORE) (132,612.60) (149,114.56) (30,883.53) (312,610.69)
----------- ----------- ---------- ----- -----------
MINORITY INTEREST OF LIMITER PARTNERS 5,268.98 (221.31) 4,896.83 1,111.85
----------- ----------- ---------- ----- -----------
----------- ----------- ---------- ----- -----------
TOTAL INT. DEPR & OTHER ITEMS (118,809.47) (140,801.72) (17,452.55) 0.00 (285,896.39)
----------- ----------- ---------- ----- -----------
NET INCOME BEFORE TAXES 118,778.07 129,914.03 17,452.55 0.00 274,977.30
----------- ----------- ---------- ----- -----------
FEDERAL INCOME TAXES 0.00
----------- ----------- ---------- ----- -----------
NET INCOME (LOSS) (MOR-1) $118,778.07 $129,914.03 $17,452.55 $0.00 $274,977.30
=========== =========== ========== ===== ===========
Accrual Accounting Required, Otherwise Footnote with Explanation
* Footnote Mandatory
** Unusual and/or infrequent item(s) outside the ordinary course of business
requires footnote.
MOR-6
Revised 07/01/98
27
CASE NAME: RIO GRANDE DESERT OIL COMPANY
----------------------------------
CASE NUMBER: 98-55621-C
--------------------------------
====================================================================================================================================
CASH RECEIPTS AND MONTH MONTH MONTH MONTH FILING TO
DISBURSEMENTS NOVEMBER 1998 DECEMBER 1998 JANUARY 1999 DATE
------------- ------------- ------------ ----------- -----------
1. CASH-BEGINNING OF MONTH $ 197.75 $ 166.35 $ 197.75
----------- ----------- ----------- ----------- -----------
RECEIPTS
2. CASH SALES 0.00 0.00
----------- ----------- ----------- ----------- -----------
3. COLLECTION OF ACCOUNTS RECEIVABLE 0.00 0.00
----------- ----------- ----------- ----------- -----------
4. LOANS & ADVANCES (attach list)-RIO GRANDE
OFFSHORE, LTD. 63,865.00 91,526.05 155,391.05
----------- ----------- ----------- ----------- -----------
5. SALE OF ASSETS 0.00
----------- ----------- ----------- ----------- -----------
6. OTHER (attach list) 0.00
----------- ----------- ----------- ----------- -----------
TOTAL RECEIPTS** 63,865.00 91,526.05 0.00 0.00 155,391.05
----------- ----------- ----------- ----------- -----------
(Withdrawal) Contribution by Individual
Debtor MFR-2*
----------- ----------- ----------- ----------- -----------
DISBURSEMENTS:
7. NET PAYROLL 0.00
----------- ----------- ----------- ----------- -----------
8. PAYROLL TAXES PAID 0.00
----------- ----------- ----------- ----------- -----------
9. SALES, USE & OTHER TAXES PAID 10,865.00 10,865.00
----------- ----------- ----------- ----------- -----------
10. SECURED/RENTAL/LEASES 0.00
----------- ----------- ----------- ----------- -----------
11. UTILITIES 0.00
----------- ----------- ----------- ----------- -----------
12. INSURANCE 0.00
----------- ----------- ----------- ----------- -----------
13. INVENTORY PURCHASES 0.00
----------- ----------- ----------- ----------- -----------
14. VEHICLE EXPENSES 0.00
----------- ----------- ----------- ----------- -----------
15. TRAVEL & ENTERTAINMENT 0.00
----------- ----------- ----------- ----------- -----------
16. REPAIRS, MAINTENANCE & SUPPLIES 0.00
----------- ----------- ----------- ----------- -----------
17. ADMINISTRATIVE & SELLING 31.40 22.69 54.09
----------- ----------- ----------- ----------- -----------
18. OTHER (attach list) ADVANCE-RIO GRANDE
DRILLING CO. 63,865.00 80,804.71 144,669.71
----------- ----------- ----------- ----------- -----------
TOTAL DISBURSEMENTS FROM OPERATIONS 63,896.40 91,692.40 0.00 0.00 155,588.80
----------- ----------- ----------- ----------- -----------
19. PROFESSIONAL FEES 0.00
----------- ----------- ----------- ----------- -----------
20. U.S. TRUSTEE FEES 0.00
----------- ----------- ----------- ----------- -----------
21. OTHER REORGANIZATION EXPENSES (attach list) 0.00
----------- ----------- ----------- ----------- -----------
TOTAL DISBURSEMENTS** 63,896.40 91,692.40 0.00 0.00 155,588.80
----------- ----------- ----------- ----------- -----------
22. NET CASH FLOW (31.40) (166.35) 0.00 0.00 (197.75)
----------- ----------- ----------- ----------- -----------
23. CASH - END OF MONTH (MOR-2) $ 166.35 $ (0.00) $ 0.00 $ 0.00 $ (0.00)
=========== =========== =========== =========== ===========
MOR-7 * Applies to Individual debtors only
** Numbers for the current month should balance (match)
Revised 07/01/98
28
CASE NAME: RIO GRANDE DESERT OIL COMPANY
-----------------------------
CASE NUMBER: 98-55621-C
-----------------------------
CASH ACCOUNT RECONCILIATION
MONTH OF January 1999
BANK NAME Comerica Bank-California
------------------------
ACCOUNT NUMBER Account No.-1890630203 N/A N/A
------------------------
ACCOUNT TYPE OPERATING TAX OTHER FUNDS TOTAL
------------------------ ----- ----------- ----------
BANK BALANCE 0 $ 0.00
------------------------ ----- ----- ----------- ----------
DEPOSITS IN TRANSIT 0 $ 0.00
------------------------ ----- ----- ----------- ----------
OUTSTANDING CHECKS 0 $ 0.00
------------------------ ----- ----- ----------- ----------
ADJUSTED BANK BALANCE $ 0.00 $0.00 $0.00 $ 0.00 $ 0.00
------------------------ ----- ----- ----------- ----------
BEGINNING CASH - PER BOOKS $ 0.00 $ 0.00
------------------------ ----- ----- ----------- ----------
RECEIPTS* 74,090.00 $74,090.00
------------------------ ----- ----- ----------- ----------
TRANSFERS BETWEEN ACCOUNTS $ 0.00
------------------------ ----- ----- ----------- ----------
(WITHDRAWAL) CONTRIBUTION BY
INDIVIDUAL DEBTOR MFR-2 $ 0.00
------------------------ ----- ----- ----------- ----------
CHECKS/OTHER DISBURSEMENTS* 74,090.00 $74,090.00
------------------------ ----- ----- ----------- ----------
ENDING CASH - PER BOOKS $ 0.00 $ 0.00
======================== ===== ===== =========== ==========
MOR-8 *Numbers should balance (match) TOTAL RECEIPTS and
TOTAL DISBURSEMENTS lines on MOR-7
Revised 7/01/98
29
CASE NAME: RIO GRANDE DESERT OIL COMPANY
---------------------------------
CASE NUMBER: 98-55621-C
---------------------------------
PAYMENTS TO INSIDERS AND PROFESSIONALS
Of the total disbursements shown for the month, list the amount paid to insiders
(as defined in Section 101(31)(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.) (Attach additional pages as necessary).
MONTH MONTH MONTH MONTH
INSIDERS: NAME/COMP TYPE November 1998 December 1998 January 1999
------------------------- ------------- ------------- ------------ -----------
1. RIO GRANDE DRILLING COMPANY 63,865.00 80,804.71 74,090.00
---------- ---------- ---------- ----------
2.
---------- ---------- ---------- ----------
3.
---------- ---------- ---------- ----------
4.
---------- ---------- ---------- ----------
5.
---------- ---------- ---------- ----------
6.
---------- ---------- ---------- ----------
TOTAL INSIDERS (MOR-1) $63,865.00 $80,804.71 $74,090.00 $ 0.00
========== ========== ========== ==========
MONTH MONTH MONTH MONTH
PROFESSIONALS November 1998
------------- ------------- ------------- ------------ -----------
1.
--------- ---------- ---------- ----------
2.
--------- ---------- ---------- ----------
3.
--------- ---------- ---------- ----------
4.
--------- ---------- ---------- ----------
5.
--------- ---------- ---------- ----------
6.
--------- ---------- ---------- ----------
TOTAL PROFESSIONALS (MOR-1) $ 0.00 $ 0.00 $ 0.00 $ 0.00
========= ========== ========== ==========
MOR-9 Revised 07/01/98
30
MOR-1 UNITED STATES BANKRUPTCY COURT
CASE NAME: RIO GRANDE OFFSHORE, LTD. PETITION DATE: 11/12/98
-------------------------- ---------------
CASE NUMBER: 98-55622-C DISTRICT OF TEXAS: Western
-------------------------- ---------------
PROPOSED PLAN DATE: DIVISION: San Antonio
--------------------- ---------------
MONTHLY OPERATING REPORT SUMMARY FOR MONTH YEAR
------------------------------------------ ----
MONTH November 1998 December 1998 January 1999
----- ------------- ------------- ------------
REVENUES (MOR-6) 268,714.35 347,309.78 288,138.01 0.00 0.00
---------- ---------- ---------- ---- ----
INCOME BEFORE INT; DEPREC./TAX (MOR-6) 69,388.60 254,679.34 106,385.51 0.00 0.00
---------- ---------- ---------- ---- ----
NET INCOME (LOSS) (MOR-6) 128,955.57 151,226.20 26,315.64 0.00 0.00
---------- ---------- ---------- ---- ----
PAYMENTS TO INSIDERS (MOR-9) 64,000.00 81,550.00 97,500.00 0.00 0.00
---------- ---------- ---------- ---- ----
PAYMENTS TO PROFESSIONALS (MOR-9) 0.00 0.00 0.00 0.00 0.00
---------- ---------- ---------- ---- ----
TOTAL DISBURSEMENTS (MOR-8) 339,697.57 364,518.75 316,017.53 0.00 0.00
========== ========== ========== ==== ====
*** The original of this document must be filed with the United States
Bankruptcy Court and a copy must be sent to the United States Trustee***
REQUIRED INSURANCE MAINTAINED
AS OF SIGNATURE DATE EXP.
DATE
- ----------------------------- ---------
CASUALTY YES [X] NO [ ] 05-01-99
LIABILITY YES [X] NO [ ] 05-01-99
VEHICLE YES [X] NO [ ] 05-01-99
WORKER'S YES [X] NO [ ] 05-01-99
EXCESS YES [X] NO [ ] 05-01-99
CIRCLE ONE
Are all accounts receivable being collected within terms? Yes [X] No [ ]
Are all post-petition liabilities, including taxes, being paid within terms? Yes [X] No [ ]
Have any pre-petition liabilities been paid? Yes [X] No [ ]
if so, describe _________________________________________________________
Are all funds received being deposited into DIP bank accounts? Yes [X] No [ ]
Were any assets disposed of outside the normal course of business? Yes [ ] No [X]
if so, describe _________________________________________________________
Are all U.S. Trustee Quarterly Fee Payments current? Yes [X} No [ ]
What is the status of your Plan of Reorganization? Filed Plan - December 11, 1998
------------------------------
ATTORNEY NAME: DEBORAH D. WILLIAMSON
-----------------------------
FIRM NAME: COX & SMITH INCORPORATED
-----------------------------
ADDRESS: 112 EAST PECAN STREET
-----------------------------
SUITE 1800
-----------------------------
CITY, STATE, ZIP: SAN ANTONIO, TEXAS 78205
-----------------------------
TELEPHONE: (210)554-5500
-----------------------------
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 X /s/ GARY SCHEELE TITLE: Vice President
-------------------- -------------------
(ORIGINAL SIGNATURE)
Gary Scheele 03/04/99
- ------------------------- ------------
(PRINT NAME OF SIGNATORY) DATE
MOR-1
Revised 07/01/98
31
CASE NAME: RIO GRANDE OFFSHORE, LTD.
----------------------------
CASE NUMBER: 98-55622-C
--------------------------
COMPARATIVE BALANCE SHEETS
FILING DATE* MONTH MONTH MONTH MONTH
CONSL. TO 10QSB-
ASSETS 10/31/98 NOVEMBER 1998 DECEMBER 1998 JANUARY 1999
- ------ ---------------- -------------- -------------- ------------ -----
CURRENT ASSETS
Cash 375,498.02 466,112.30 436,606.91 578,177.32
-------------- -------------- -------------- -------------- -----
Accounts Receivable, Net 405,488.15 445,962.30 599,684.19 496,910.83
-------------- -------------- -------------- -------------- -----
Inventory: Lower of Cost
or Market 0.00 0.00 0.00 0.00
-------------- -------------- -------------- -------------- -----
Prepaid Expenses (7,021.26) (7,021.26) (7,021.26) (7,021.26)
-------------- -------------- -------------- -------------- -----
Investments 0.00 0.00 0.00 0.00
-------------- -------------- -------------- -------------- -----
Other-A/R and Advances-Affiliates 1,849,041.07 1,892,081.32 1,890,555.47 1,928,295.45
-------------- -------------- -------------- -------------- -----
TOTAL CURRENT ASSETS 2,623,005.98 2,797,134.66 2,919,825.31 2,996,362.34 0.00
-------------- -------------- -------------- -------------- -----
PROPERTY, PLANT & EQUIP.
@ COST 24,612,211.83 24,372,028.85 24,373,167.11 24,395,567.43
-------------- -------------- -------------- -------------- -----
Less Accumulated Depreciation 17,517,824.24 17,379,046.67 17,480,399.72 17,581,752.77
-------------- -------------- -------------- -------------- -----
NET BOOK VALUE OF PP & E 7,094,387.59 6,992,982.18 6,892,767.39 6,813,814.66 0.00
-------------- -------------- -------------- -------------- -----
OTHER ASSETS
1. Tax Deposits
-------------- -------------- -------------- -------------- -----
2. Investments in Subsidiaries 636,721.47 658,064.17 657,167.71 677,002.98
-------------- -------------- -------------- -------------- -----
3. Other assets, net 880.00 880.00 880.00 480.00
-------------- -------------- -------------- -------------- -----
4.
-------------- -------------- -------------- -------------- -----
TOTAL ASSETS $10,354,995.04 $10,449,061.01 $10,470,640.41 $10,487,659.98 $0.00
============== ============== ============== ============== =====
* Per Schedules and Statement of Affairs
MOR-2 Revised 07/01/98
32
CASE NAME: RIO GRANDE OFFSHORE, LTD.
-------------------------
CASE NUMBER: 98-55622-C
-------------------------
COMPARATIVE BALANCE SHEETS
FILING DATE* MONTH MONTH MONTH MONTH MONTH
LIABILITIES & PARTNERS' CONSL. TO --------------- --------------- ---------------
CAPITAL 10QSB-10/31/98 November 1998 December 1998 January 1999
- ----------------------- ---------------- --------------- --------------- --------------- ------ ------
LIABILITIES
POST-PETITION LIABILITIES(MOR-4) 295,629.03 165,982.23 156,686.16
---------------- --------------- --------------- --------------- ------ ------
PRE-PETITION LIABILITIES
Notes Payable - Secured
---------------- --------------- --------------- --------------- ------ ------
Priority Debt
---------------- --------------- --------------- --------------- ------ ------
Federal Income Tax
---------------- --------------- --------------- --------------- ------ ------
FICA/Withholding
---------------- --------------- --------------- --------------- ------ ------
Unsecured Debt
---------------- --------------- --------------- --------------- ------ ------
Other 613,024.75 282,506.12 282,506.12 282,506.12
---------------- --------------- --------------- --------------- ------ ------
TOTAL PRE-PETITION LIABILITIES 613,024.75 282,506.12 282,506.12 282,506.12 0.00 0.00
---------------- --------------- --------------- --------------- ------ ------
TOTAL LIABILITIES 613,024.75 578,135.15 448,488.35 439,192.28 0.00 0.00
---------------- --------------- --------------- --------------- ------ ------
PARTNERS' CAPITAL (DEFICIT)
General Partner-Rio Grande Drilling Company 223,185.24 223,185.24 223,185.24 223,185.24
---------------- --------------- --------------- --------------- ------ ------
Limited Partner-Rio Grande Desert Oil
Company 17,609,202.96 17,609,202.96 17,609,202.96 17,609,202.96
---------------- --------------- --------------- --------------- ------ ------
RETAINED EARNINGS: October 31, 1998 (8,090,417.91) (8,090,417.91) (8,090,417.91) (8,090,417.91)
---------------- --------------- --------------- --------------- ------ ------
RETAINED EARNINGS: Post Filing Date 0.00 128,955.57 280,181.77 306,497.41
---------------- --------------- --------------- --------------- ------ ------
TOTAL OWNER'S EQUITY (NET WORTH) 9,741,970.29 9,870,925.86 10,022,152.06 10,048,467.70 0.00 0.00
---------------- --------------- --------------- --------------- ------ ------
TOTAL LIABILITIES & PARTNERS' CAPITAL $ 10,354,995.04 $ 10,449,061.01 $ 10,470,640.41 $ 10,487,659.98 $ 0.00 $ 0.00
================ =============== =============== =============== ====== ======
MOR-3 * Per Schedules and Statement of Affairs
Revised 07/01/98
33
CASE NAME: RIO GRANDE OFFSHORE, LTD.
------------------------------
CASE NUMBER: 98-55622-C
----------------------------
SCHEDULE OF POST-PETITION LIABILITIES
MONTH MONTH MONTH MONTH
NOVEMBER 1998 DECEMBER 1998 JANUARY 1999
------------- ------------- ------------ -----------
TRADE ACCOUNTS PAYABLE 197,651.62 56,697.17 53,109.08
----------- ----------- ----------- -----------
TAX PAYABLE
Federal Payroll Taxes 0.00 0.00 0.00
----------- ----------- ----------- -----------
State Payroll Taxes 795.21 871.15 761.03
----------- ----------- ----------- -----------
Ad Valorem Taxes 4,000.00 8,000.00 12,000.00
----------- ----------- ----------- -----------
Other Taxes-Production 3,137.96 2,930.56 3,155.43
----------- ----------- ----------- -----------
TOTAL TAXES PAYABLE 7,933.17 11,801.71 15,916.46 0.00
----------- ----------- ----------- -----------
SECURED DEBT POST-PETITION 0.00 0.00 0.00
----------- ----------- ----------- -----------
ACCRUED INTEREST PAYABLE 0.00 0.00 0.00
----------- ----------- ----------- -----------
ACCRUED PROFESSIONAL FEES* 0.00 0.00 0.00
----------- ----------- ----------- -----------
OTHER ACCRUED LIABILITIES
1. Royalties 71,251.56 59,675.11 30,099.50
----------- ----------- ----------- -----------
2. Advances-affiliates 16,385.67 32,978.35 50,382.20
----------- ----------- ----------- -----------
3. Insurance 220.51 454.73 682.95
----------- ----------- ----------- -----------
4. Miscellaneous 2,186.50 4,375.16 6,495.97
----------- ----------- ----------- -----------
TOTAL POST-PETITION LIABILITIES (MOR-3) $295,629.03 $165,982.23 $156,686.16 $ 0.00
=========== =========== =========== ===========
* PAYMENT REQUIRES COURT APPROVAL
MOR-4
Revised 07/01/98
34
CASE NAME: RIO GRANDE OFFSHORE, LTD.
-------------------------
CASE NUMBER: 98-55622-C
-------------------------
AGING OF POST-PETITION LIABILITIES
MONTH JANUARY 1999
TRADE FEDERAL STATE AD VALOREM, ADVANCES/ACCOUNTS ROYALTIES AND
DAYS TOTAL ACCOUNTS TAXES TAXES OTHER TAXES PAYABLE TO AFFILIATES REVENUE SUSPENSE OTHER
- -------- ----------- ----------- -------- ------- ----------- --------------------- ---------------- --------
0-30 110,877.92 53,109.08 761.03 4,000.00 17,524.66 33,254.93 2,228.22
- -------- ----------- ----------- ------ ------- ---------- ---------- ---------- ----------
31-60 23,015.56 0.00 4,000.00 16,592.68 0.00 2,422.88
- -------- ----------- ----------- ------ ------- ---------- ---------- ---------- ----------
61-90 22,792.68 0.00 4,000.00 16,385.67 0.00 2,407.01
- -------- ----------- ----------- ------ ------- ---------- ---------- ---------- ----------
91+ 0.00 0.00 0.00 0.00 0.00 0.00
- -------- ----------- ----------- ------ ------- ---------- ---------- ---------- ----------
TOTAL $156,686.16 $ 53,109.08 $ 0.00 $761.03 $12,000.00 $50,503.01 $33,254.93 $ 7,058.11
======== =========== =========== ====== ======= ========== ========== ========== ==========
AGING OF ACCOUNTS RECEIVABLE
MONTH JANUARY 1999 JANUARY 1999 JANUARY 1999
--------------- ----------------------- -------------------
OIL & GAS SALES JOINT INTEREST BILLINGS ADVANCES-AFFILIATES
- ---------- --------------- ----------------------- ------------------- ------- ------ ----- ---------- -----
0-30 DAYS 433,450.36 13,633,68 37,739.98
- ---------- ----------- ----------- ------------- ----- ----- ----- ---------- -----
31-60 DAYS 2,078.81 3,360.00 59,189.52
- ---------- ----------- ----------- ------------- ----- ----- ----- ---------- -----
61-90 0.04 1,782.69 59,189.52
- ---------- ----------- ----------- ------------- ----- ----- ----- ---------- -----
91+ DAYS (9,169.97) 51,775.22 1,772,176.43
- ---------- ----------- ----------- ------------- ----- ----- ----- ---------- -----
TOTAL $426,359.24 $70,551.59 $1,928,295.45 $0.00 $0.00 $0.00
========== =========== =========== ============= ===== ===== ===== ========== =====
MOR-5 Revised 07/01/98
35
CASE NAME:
-----------------------
CASE NUMBER: 98-55622-C
--------------------
STATEMENT OF INCOME (LOSS)
MONTH MONTH MONTH MONTH FILING TO
November 1998 December 1998 January 1999 DATE
------------- ------------- ------------ ----- -----------
REVENUES (MOR-1) 268,714.35 347,309.78 288,138.01 904,162.14
------------- ------------- ------------ ----- -----------
TOTAL COST OF REVENUES 197,535.94 89,974.37 179,137.34 466,647.65
------------- ------------- ------------ ----- -----------
GROSS PROFIT 71,178.41 257,335.41 109,000.67 0.00 437,514.49
------------- ------------- ------------ ----- -----------
OPERATING EXPENSE:
Selling & Marketing 0.00 0.00 0.00 0.00
------------- ------------- ------------ ----- -----------
General & Administrative 1,789.81 2,656.07 2,615.16 7,061.04
------------- ------------- ------------ ----- -----------
Insiders Compensation 0.00
------------- ------------- ------------ ----- -----------
Professional Fees 0.00
------------- ------------- ------------ ----- -----------
Other 0.00
------------- ------------- ------------ ----- -----------
Other 0.00
------------- ------------- ------------ ----- -----------
TOTAL OPERATING EXPENSES 1,789.81 2,656.07 2,615.16 0.00 7,061.04
------------- ------------- ------------ ----- -----------
INCOME BEFORE INT. DEPR/TAX (MOR-1) 69,388.60 254,679.34 106,385.51 0.00 430,453.45
------------- ------------- ------------ ----- -----------
INTEREST EXPENSE (788.03) 0.00 0.00 (788.03)
------------- ------------- ------------ ----- -----------
DEPRECIATION/AMORTIZATION 101,353.05 101,353.05 101,353.05 304,059.15
------------- ------------- ------------ ----- -----------
OTHER (INCOME) EXPENSE* 190.37 1,203.63 (1,447.91) (53.91)
------------- ------------- ------------ ----- -----------
OTHER ITEMS**(GAIN/LOSS ON SALE OF ASSETS (138,979.66) 0.00 (138,979.66)
------------- ------------- ------------ ----- -----------
EQUITY EARNINGS IN RIO GRANDE GULFMEX, LTD. (26,678.37) 1,120.58 (24,794.09)
------------- ------------- ------------ ----- -----------
MINORITY INTEREST OF RIO GRANDE
GULFMEX, LTD. LIMITED PARTNERS 5,335.67 (224.12) 4,958.82
------------- ------------- ------------ ----- -----------
TOTAL INT. DEPR & OTHER ITEMS (59,566.97) 103,453.14 80,069.87 0.00 164,237.55
------------- ------------- ------------ ----- -----------
NET INCOME TAXES 128,955.57 151,226.20 26,315.64 0.00 266,215.90
------------- ------------- ------------ ----- -----------
FEDERAL INCOME TAXES 0.00
------------- ------------- ------------ ----- -----------
NET INCOME (LOSS) (MOR-1) $ 128,955.57 $ 151,226.20 $ 26,315.64 $0.00 $266,215.90
============= ============= ============ ===== ===========
Accrual Accounting Required, Otherwise Footnote with Explanation
* Footnote Mandatory
** Unusual and/or infrequent item(s) outside the ordinary course of business
requires footnote.
MOR-6
Revised 07/01/98
36
CASE NAME: RIO GRANDE OFFSHORE, LTD.
----------------------------------
CASE NUMBER: 98-55622-C
--------------------------------
CASH RECEIPTS AND MONTH MONTH MONTH MONTH FILING TO
DISBURSEMENTS November 1998 December 1998 January 1999 DATE
- ----------------- ------------- ------------- ------------ ----------- -----------
1. CASH-BEGINNING OF MONTH $375,498.39 $466,112.30 $586,886.18 $ 375,498.39
----------- ----------- ----------- ----------- -------------
RECEIPTS:
2. CASH SALES 0.00 0.00
----------- ----------- ----------- ----------- -------------
3. COLLECTION OF ACCOUNTS RECEIVABLE 287,343.78 485,292.63 301,713.71 1,074,350.12
----------- ----------- ----------- ----------- -------------
4. LOANS & ADVANCES (attach list) 0.00 0.00 0.00
----------- ----------- ----------- ----------- -------------
5. SALE OF ASSETS 11-02-98 - CRUMPTON-WILLIAMS
LEASEHOLD 142,179.67 0.00 0.00 142,179.67
----------- ----------- ----------- ----------- -------------
6. OTHER (attach list) - INTEREST INCOME BANK 788.03 0.00 0.00 788.03
----------- ----------- ----------- ----------- -------------
TOTAL RECEIPTS** 430,311.48 485,292.63 301,713.71 0.00 1,217,317.82
----------- ----------- ----------- ----------- -------------
(Withdrawal) Contribution by Individual
Debtor MFR-2*
DISBURSEMENTS: 0.00
----------- ----------- ----------- ----------- -------------
7. NET PAYROLL 0.00
----------- ----------- ----------- ----------- -------------
8. PAYROLL TAXES PAID 0.00
----------- ----------- ----------- ----------- -------------
9. SALES, USE & OTHER TAXES PAID 0.00
----------- ----------- ----------- ----------- -------------
10. SECURED/RENTAL/LEASES 0.00
----------- ----------- ----------- ----------- -------------
11. UTILITIES 0.00
----------- ----------- ----------- ----------- -------------
12. INSURANCE 0.00
----------- ----------- ----------- ----------- -------------
13. INVENTORY PURCHASES 0.00
----------- ----------- ----------- ----------- -------------
14. VEHICLE EXPENSES 0.00
----------- ----------- ----------- ----------- -------------
15. TRAVEL & ENTERTAINMENT 0.00
----------- ----------- ----------- ----------- -------------
16. REPAIRS, MAINTENANCE & SUPPLIES - A/P FOR
LEASE OPERATING EXPS. 206,947.93 218,806.53 170,479.31 596,233.77
----------- ----------- ----------- ----------- -------------
17. ADMINISTRATIVE & SELLING 0.00
----------- ----------- ----------- ----------- -------------
18. OTHER (attach list) ADVANCE TO RIO GRANDE
DRILLING COMPANY 64,000.00 81,550.00 97,500.00 243,050.00
----------- ----------- ----------- ----------- -------------
BANK FEE 22.00 1,163.92 39.60 1,225.52
----------- ----------- ----------- ----------- -------------
ROYALTIES 68,727.64 62,998.30 47,998.62 179,724.56
----------- ----------- ----------- ----------- -------------
TOTAL DISBURSEMENTS FROM OPERATIONS 339,697.57 364,518.75 316,017.53 0.00 1,020,233.85
----------- ----------- ----------- ----------- -------------
19. PROFESSIONAL FEES 0.00
----------- ----------- ----------- ----------- -------------
20. U.S. TRUSTEE FEES 0.00
----------- ----------- ----------- ----------- -------------
21. OTHER REORGANIZATION EXPENSES (attach list) 0.00
----------- ----------- ----------- ----------- -------------
TOTAL DISBURSEMENTS** 339,697.57 364,518.75 316,017.53 0.00 1,020,233.85
----------- ----------- ----------- ----------- -------------
22. NET CASH FLOW 90,613.91 120,773.88 (14,303.82) 0.00 197,083.97
----------- ----------- ----------- ----------- -------------
23. CASH - END OF MONTH (MOR-2) $466,112.30 $586,886.18 $572,582.36 $ 0.00 $ 572,582.36
=========== =========== =========== =========== =============
* Applies to Individual debtors only
** Numbers for the current month should balance (match)
MOR-7 Revised 07/01/98
37
CASE NAME: RIO GRANDE OFFSHORE, LTD.
-------------------------
CASE NUMBER: 98-55622-C
-----------------
CASH ACCOUNT RECONCILIATION
MONTH OF January 1999
BANK NAME Broadway National Bank Comerica Bank - Texas Broadway National Bank
---------------------- ---------------------- ----------------------
ACCOUNT NUMBER Account No. 0363448 Account No. 1880286073 Account No. 0363448
---------------------- ---------------------- ----------------------
ACCOUNT TYPE OPERATING OPERATING MONEY MARKET
---------------------- ---------------------- ----------------------
BANK BALANCE $ 29,364.52 $ 0.00 $ 0.00
---------------------- ---------------------- ----------------------
DEPOSITS IN TRANSIT 0.00 0.00 0.00
---------------------- ---------------------- ----------------------
OUTSTANDING CHECKS 0.00 0.00 0.00
---------------------- ---------------------- ----------------------
BANK FEES, ADJUSTMENTS 0.00 0.00 0.00
---------------------- ---------------------- ----------------------
ADJUSTED BANK BALANCE $ 29,364.52 $ 0.00 $ 0.00
---------------------- ---------------------- ----------------------
BEGINNING CASH - PER BOOKS $ 1,908.57 $ 48.79 $ 0.00
---------------------- ---------------------- ----------------------
RECEIPTS* 0.00 0.00 0.00
---------------------- ---------------------- ----------------------
TRANSFERS BETWEEN ACCOUNTS 152,110.00 0.00 0.00
---------------------- ---------------------- ----------------------
(WITHDRAWAL) CONTRIBUTION BY
INDIVIDUAL DEBTOR MFR-2
---------------------- ---------------------- ----------------------
CHECKS/OTHER DISBURSEMENTS* 218,517.53 0.00 0.00
---------------------- ---------------------- ----------------------
ENDING CASH - PER BOOKS $ (64,498.96) $ 48.79 $ 0.00
====================== ====================== ======================
BANK NAME NATIONS Bank - Texas
---------------------- -----------
ACCOUNT NUMBER Account No. 3751223890
---------------------- -----------
ACCOUNT TYPE COLLATERAL TOTAL
---------------------- -----------
BANK BALANCE $ 637,032.53 $666,397.05
--------------------- -----------
DEPOSITS IN TRANSIT 0.00 0.00
--------------------- -----------
OUTSTANDING CHECKS 0.00 0.00
--------------------- -----------
BANK FEES, ADJUSTMENTS 0.00 0.00
--------------------- -----------
ADJUSTED BANK BALANCE $ 637,032.53 $666,397.05
--------------------- -----------
BEGINNING CASH - PER BOOKS $ 584,928.82 $586,886.18
--------------------- -----------
RECEIPTS* 301,713.71 301,713.71
--------------------- -----------
TRANSFERS BETWEEN ACCOUNTS (249,610.00) (97,500.00)
--------------------- -----------
(WITHDRAWAL) CONTRIBUTION BY
INDIVIDUAL DEBTOR MFR-2 0.00
--------------------- -----------
CHECKS/OTHER DISBURSEMENTS* 0.00 218,517.53
--------------------- -----------
ENDING CASH - PER BOOKS $ 637,032.53 $572,582.36
===================== ===========
MOR-8 *Numbers should balance (match) TOTAL RECEIPTS and
TOTAL DISBURSEMENTS lines on MOR-7
Revised 7/01/98
38
CASE NAME: RIO GRANDE OFFSHORE, LTD.
---------------------------
CASE NUMBER: 98-55622-C
---------------------------
PAYMENTS TO INSIDERS AND PROFESSIONALS
Of the total disbursements shown for the month, list the amount paid to insiders
(as defined in Section 101(31)(A)-(F) of the U.S. Bankruptcy Code) and the
professional. Also, for insiders, identify the type of compensation paid (e.g.,
salary, commission, bonus, etc.) (Attach additional pages as necessary).
MONTH MONTH MONTH MONTH
INSIDERS: NAME/COMP TYPE November 1998 December 1998 January 1999
------------------------- -------------- ------------- ------------ -----------
1. RIO GRANDE DESERT COMPANY-ADVANCE 64,000.00 81,550.00 74,090.00
---------- ---------- ---------- ----------
2. RIO GRANDE GULFMEX, LTD-ADVANCE 0.00 0.00 23,410.00
---------- ---------- ---------- ----------
3.
---------- ---------- ---------- ----------
4.
---------- ---------- ---------- ----------
5.
---------- ---------- ---------- ----------
6.
---------- ---------- ---------- ----------
TOTAL INSIDERS (MOR-1) $64,000.00 $81,550.00 $97,500.00 $ 0.00
========== ========== ========== ==========
MONTH MONTH MONTH MONTH
PROFESSIONALS November 1998
------------- -------------- ------------- ------------ -----------
1.
--------- ---------- ---------- ----------
2.
--------- ---------- ---------- ----------
3.
--------- ---------- ---------- ----------
4.
--------- ---------- ---------- ----------
5.
--------- ---------- ---------- ----------
6.
--------- ---------- ---------- ----------
TOTAL PROFESSIONALS (MOR-1) $ 0.00 $ 0.00 $ 0.00 $ 0.00
========= ========== ========== ==========
MOR-9 Revised 07/01/98
39
MOR-1 UNITED STATES BANKRUPTCY COURT
CASE NAME: RIO GRANDE GULFMEX, LTD. PETITION DATE: 11/12/98
-------------------------- ---------------
CASE NUMBER: 98-55623-C DISTRICT OF TEXAS: Western
-------------------------- ---------------
PROPOSED PLAN DATE: DIVISION: San Antonio
--------------------- ---------------
MONTHLY OPERATING REPORT SUMMARY FOR MONTH YEAR
------------------------------------------ ----
MONTH November 1998 December 1998 January 1999
----- ------------- ------------- ------------
REVENUES (MOR-6) 44,574.50 40,490.91 36,565.19 0.00 0.00
---------- ---------- ---------- ---- ----
INCOME BEFORE INT; DEPREC./TAX (MOR-6) 32,322.98 15,902.46 35,066.93 0.00 0.00
---------- ---------- ---------- ---- ----
NET INCOME (LOSS) (MOR-6) 26,678.37 5,629.62 18,043.88 0.00 0.00
---------- ---------- ---------- ---- ----
PAYMENTS TO INSIDERS (MOR-9) 0.00 0.00 0.00 0.00 0.00
---------- ---------- ---------- ---- ----
PAYMENTS TO PROFESSIONALS (MOR-9) 0.00 0.00 0.00 0.00 0.00
---------- ---------- ---------- ---- ----
TOTAL DISBURSEMENTS (MOR-8) 14,111.90 12,937.27 49,888.22 0.00 0.00
========== ========== ========== ==== ====
*** The original of this document must be filed with the United States
Bankruptcy Court and a copy must be sent to the United States Trustee***
REQUIRED INSURANCE MAINTAINED
AS OF SIGNATURE DATE EXP.
DATE
- ----------------------------- ---------
CASUALTY YES [X] NO [ ] 05-01-99
LIABILITY YES [X] NO [ ] 05-01-99
VEHICLE YES [X] NO [ ] 05-01-99
WORKER'S YES [X] NO [ ] 05-01-99
EXCESS YES [X] NO [ ] 05-01-99
Are all accounts receivable being collected within terms? Yes [X] No [ ]
Are all post-petition liabilities, including taxes, being paid within terms? Yes [X] No [ ]
Have any pre-petition liabilities been paid? Yes [X] No [ ]
If so, describe _________________________________________________________
Are all funds received being deposited into DIP bank accounts? Yes [X] No [ ]
Were any assets disposed of outside the normal course of business? Yes [ ] No [X]
If so, describe _________________________________________________________
Are all U.S. Trustee Quarterly Fee Payments current? Yes [X} No [ ]
What is the status of your Plan of Reorganization? Filed Plan - December 11, 1998
------------------------------
ATTORNEY NAME: DEBORAH D. WILLIAMSON
-----------------------------
FIRM NAME: COX & SMITH INCORPORATED
-----------------------------
ADDRESS: 112 EAST PECAN STREET
-----------------------------
SUITE 1800
-----------------------------
CITY, STATE, ZIP: SAN ANTONIO, TEXAS 78205
-----------------------------
TELEPHONE: (210)-554-5500
-----------------------------
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 X /s/ GARY SCHEELE TITLE: Vice President
-------------------- -------------------
(ORIGINAL SIGNATURE)
Gary Scheele 03/04/99
- ------------------------- ------------
(PRINT NAME OF SIGNATORY) DATE
MOR-1
Revised 07/01/98
40
CASE NAME: RIO GRANDE GULFMEX, LTD
---------------------------
CASE NUMBER: 98-55623-C
-------------------------
COMPARATIVE BALANCE SHEETS
FILING DATE* MONTH MONTH MONTH MONTH MONTH
ASSETS CONSL. TO 10QSB-
10/31/98 NOVEMBER 1998 DECEMBER 1998 JANUARY 1999
- -----------------------------------------------------------------------------------------------------------------------
CURRENT ASSETS
Cash 49,401.24 35,289.34 22,352.07 (4,126.15)
-------------- -------------- -------------- -------------- ----- -----
Accounts Receivable, Net 94,430.34 77,464.01 113,127.64 104,607.08
-------------- -------------- -------------- -------------- ----- -----
Inventory: Lower of Cost
or Market 0.00 0.00 0.00
-------------- -------------- -------------- -------------- ----- -----
Prepaid Expenses (9,977.72) (9,977.72) (9,977.72) (9,977.72)
-------------- -------------- -------------- -------------- ----- -----
Investments 0.00 0.00 0.00
-------------- -------------- -------------- -------------- ----- -----
Other-Advances to Affiliated
Companies 293,665.24 299,162.46 385,670.57 414,466.56
-------------- -------------- -------------- -------------- ----- -----
TOTAL CURRENT ASSETS 427,519.10 401,938.09 511,172.56 504,969.77 0.00 0.00
-------------- -------------- -------------- -------------- ----- -----
PROPERTY, PLANT & EQUIP.
@ COST 2,213,601.60 2,215,657.30 2,217,066.29 2,217,066.29
-------------- -------------- -------------- -------------- ----- -----
Less Accumulated Depreciation 1,234,388.52 1,240,761.52 1,247,134.52 1,253,507.52
-------------- -------------- -------------- -------------- ----- -----
NET BOOK VALUE OF PP & E 979,213.08 974,895.78 969,931.77 963,558.77 0.00 0.00
-------------- -------------- -------------- -------------- ----- -----
OTHER ASSETS
1. Tax Deposits 0.00 0.00 0.00 0.00
-------------- -------------- -------------- -------------- ----- -----
2. Investments in Subsidiaries 0.00 0.00 0.00 0.00
-------------- -------------- -------------- -------------- ----- -----
3. Platform Abandonment Fund 360,857.03 363,678.08 363,678.08 363,678.08
-------------- -------------- -------------- -------------- ----- -----
4. Deferred loan and organi-
zation cost 5,395.68 5,195.84 4,996.00 4,796.16
-------------- -------------- -------------- -------------- ----- -----
TOTAL ASSETS $ 1,772,984.89 $ 1,745,707.79 $ 1,849,778.41 $ 1,837,002.78 $0.00 $0.00
============== ============== ============== ============== ===== =====
* Per Schedules and Statement of Affairs
MOR-2 Revised 07/01/98
41
CASE NAME: RIO GRANDE GULFMEX, LTD.
----------------------------
CASE NUMBER: 98-55623-C
----------------------------
COMPARATIVE BALANCE SHEETS
FILING DATE* MONTH MONTH MONTH
LIABILITIES & PARTNER'S CONSL. TO --------------- --------------- ---------------
CAPITAL 10QSB-10/31/98 November 1998 December 1998 January 1999 MONTH MONTH
- ----------------------- ---------------- --------------- --------------- --------------- ------ ------
LIABILITIES
POST-PETITION LIABILITIES(MOR-4) 21,855.06 120,296.05 89,476.53
---------------- --------------- --------------- --------------- ------ ------
PRE-PETITION LIABILITIES
Notes Payable - Secured 0.00 0.00 0.00
---------------- --------------- --------------- --------------- ------ ------
Priority Debt 0.00 0.00 0.00
---------------- --------------- --------------- --------------- ------ ------
Federal Income Tax 0.00 0.00 0.00
---------------- --------------- --------------- --------------- ------ ------
FICA/Withholding 0.00 0.00 0.00
---------------- --------------- --------------- --------------- ------ ------
Unsecured Debt-Trade Payable 417,517.07 341,706.56 341,706.56 341,706.56
---------------- --------------- --------------- --------------- ------ ------
Accounts Payable to Affiliated
Companies 35,068.21 35,068.21 35,068.21 35,068.21
---------------- --------------- --------------- --------------- ------ ------
Other-Deferred Abandonment Expense 526,343.98 526,343.98 526,343.98 526,343.98
---------------- --------------- --------------- --------------- ------ ------
TOTAL PRE-PETITION LIABILITIES 978,929.26 903,118.75 903,118.75 903,118.75 0.00 0.00
---------------- --------------- --------------- --------------- ------ ------
TOTAL LIABILITIES 978,929.26 924,973.81 1,023,414.80 992,595.28 0.00 0.00
---------------- --------------- --------------- --------------- ------ ------
PARTNER'S CAPITAL (DEFICIT)
General Partner-Rio Grande Offshore, Ltd. 54,609.78 54,609.78 54,609.78 54,609.78
---------------- --------------- --------------- --------------- ------ ------
Limited Partner- H. Wayne Hightower 4,132.19 4,132.19 4,132.19 4,132.19
---------------- --------------- --------------- --------------- ------ ------
Limited Partner- H. Wayne Hightower, Jr. 1,770.94 1,770.94 1,770.94 1,770.94
---------------- --------------- --------------- --------------- ------ ------
Limited Partner- Robert A. Buschman 5,903.12 5,903.12 5,903.12 5,903.12
---------------- --------------- --------------- --------------- ------ ------
RETAINED EARNINGS: October 31, 1998 727,639.60 727,639.60 727,639.60 727,639.60
---------------- --------------- --------------- --------------- ------ ------
RETAINED EARNINGS: Post Filing Date 0.00 26,678.35 32,307.98 50,351.87
---------------- --------------- --------------- --------------- ------ ------
TOTAL OWNER'S EQUITY (NET WORTH) 794,055.63 820,733.98 826,363.61 844,407.50 0.00 0.00
---------------- --------------- --------------- --------------- ------ ------
TOTAL LIABILITIES & PARTNER'S CAPITAL $ 1,772,984.89 $ 1,745,707.79 $ 1,849,778.41 $ 1,837,002.78 $ 0.00 $ 0.00
================ =============== =============== =============== ====== ======
MOR-3 * Per Schedules and Statement of Affairs Revised 07/01/98
42
CASE NAME: RIO GRANDE GULFMEX, LTD.
-----------------------------
CASE NUMBER: 98-55623-C
---------------------------
SCHEDULE OF POST-PETITION LIABILITIES
MONTH MONTH MONTH MONTH MONTH
NOVEMBER 1998 DECEMBER 1998 JANUARY 1999
------------- ------------- ------------ ----------- -----------
TRADE ACCOUNTS PAYABLE 16,262.10 110,804.93 79,265.84
----------- ----------- ----------- ----------- -----------
TAX PAYABLE
Federal Payroll Taxes 0.00
----------- ----------- ----------- ----------- -----------
State Payroll Taxes 0.00
----------- ----------- ----------- ----------- -----------
Ad Valorem Taxes 0.00
----------- ----------- ----------- ----------- -----------
Other Taxes 0.00
----------- ----------- ----------- ----------- -----------
TOTAL TAXES PAYABLE 0.00 0.00 0.00 0.00 0.00
----------- ----------- ----------- ----------- -----------
SECURED DEBT POST-PETITION 0.00
----------- ----------- ----------- ----------- -----------
ACCRUED INTEREST PAYABLE 0.00
----------- ----------- ----------- ----------- -----------
ACCRUED PROFESSIONAL FEES* 0.00
----------- ----------- ----------- ----------- -----------
OTHER ACCRUED LIABILITIES
1. Advances-Affiliates 500.00 1,000.00 (857.68)
----------- ----------- ----------- ----------- -----------
2. Royalties payable 3,633.64 3,331.80 2,209.05
----------- ----------- ----------- ----------- -----------
3. Deferred abandonment Expense 1,459.32 5,159.32 8,859.32
----------- ----------- ----------- ----------- -----------
TOTAL POST-PETITION LIABILITIES (MOR-3) $ 21,855.06 $120,296.05 $ 89,476.53 $ 0.00 $ 0.00
=========== =========== =========== =========== ===========
* PAYMENT REQUIRES COURT APPROVAL
MOR-4
Revised 07/01/98
43
CASE NAME: RIO GRANDE GULFMEX, LTD.
------------------------
CASE NUMBER: 98-55623-C
----------
AGING OF POST-PETITION LIABILITIES
MONTH JANUARY 1999
TRADE FEDERAL STATE AD VALOREM, ADVANCES/ACCOUNTS ROYALTIES AND
DAYS TOTAL ACCOUNTS TAXES TAXES OTHER TAXES PAYABLE TO AFFILIATES REVENUE SUSPENSE OTHER
- -------- ----------- ----------- -------- ------- ----------- --------------------- ---------------- --------
0-30 14,141.88 7,732.83 500.00 2,209.05 3,700.00
- -------- ----------- ----------- ------ ------- ---------- --------- ---------- ----------
31-60 75,334.65 71,134.65 500.00 0.00 3,700.00
- -------- ----------- ----------- ------ ------- ---------- --------- ---------- ----------
61-90 0.00 0.00
- -------- ----------- ----------- ------ ------- ---------- --------- ---------- ----------
91+ 0.00 0.00 0.00 0.00
- -------- ----------- ----------- ------ ------- ---------- --------- ---------- ----------
TOTAL(1) $ 89,476.53 $ 78,867.48 $ 0.00 $ 0.00 $ 0.00 $1,000.00 $ 2,209.05 $ 7,400.00
======== =========== =========== ====== ======= ========== ========= ========== ==========
AGING OF ACCOUNTS RECEIVABLE
MONTH January 1999 January 1999
OIL & GAS SALES ADVANCES-AFFILIATES
- -------- --------------- ------------------- ----------------------- ---------- --------- ---------- ---------
0-30 DAYS 88,867.30 28,795,99
- -------- ----------- ----------- ------ ------- ---------- --------- ---------- ---------
31-60 DAYS 6,401.00 86,508.11
- -------- ----------- ----------- ------ ------- ---------- --------- ---------- ---------
61-90 9,338.78 5,497.22
- -------- ----------- ----------- ------ ------- ---------- --------- ---------- ---------
91+ DAYS 0.00 293,665,24
- -------- ----------- ----------- ------ ------- ---------- --------- ---------- ---------
TOTAL $104,607.08 $414,466.56 $ 0.00 $ 0.00 $ 0.00 $ 0.00
======== =========== =========== ====== ======= ========== ========= ========== =========
MOR - 5 REVISED 07/01/98
44
CASE NAME: RIO GRANDE GULMEX, LTD.
----------------------
CASE NUMBER: 98-55623-C
----------------------
STATEMENT OF INCOME (LOSS)
MONTH MONTH MONTH MONTH FILING TO
NOVEMBER 1998 DECEMBER 1998 JANUARY 1999 DATE
-----------------------------------------------------------------------
REVENUES (MOR-1) 44,574.50 40,490.91 36,565.19 121,630.60
---------- ---------- ---------- ------- -----------
TOTAL COST OF REVENUES 11,751.52 24,088.45 998.61 36,838.58
---------- ---------- ---------- ------- -----------
GROSS PROFIT 32,822.98 16,402.46 35,566.58 0.00 84,792.02
---------- ---------- ---------- ------- -----------
OPERATING EXPENSE:
Selling & Marketing 0.00 0.00 0.00 0.00
---------- ---------- ---------- ------- -----------
General & Administrative 500.00 500.00 500.00 1,500.00
---------- ---------- ---------- ------- -----------
Insiders Compensation 0.00 0.00 0.00 0.00
---------- ---------- ---------- ------- -----------
Professional Fees 0.00 0.00 0.00 0.00
---------- ---------- ---------- ------- -----------
Other 0.00 0.00 0.00 0.00
---------- ---------- ---------- ------- -----------
Other 0.00 0.00 (0.35) (0.35)
---------- ---------- ---------- ------- -----------
TOTAL OPERATING EXPENSES 500.00 500.00 499.65 0.0 1,499.65
---------- ---------- ---------- ------- -----------
INCOME BEFORE INT. DEPR/TAX (MOR-1) 32,322.98 15,902.46 35,066.93 0.0 83,292.37
---------- ---------- ---------- ------- -----------
INTEREST EXPENSE (INCOME) (4,628.23) 0.00 (4,628.23)
---------- ---------- ---------- ------- -----------
DEPRECIATION AND AMORTIZATION 6,572.84 6,572.84 13,323.05 26,468.73
---------- ---------- ---------- ------- -----------
OTHER (INCOME) EXPENSE* PROVISION FOR ABANDONMENT 3,700.00 3,700.00 3,700.00 11,100.00
---------- ---------- ---------- ------- -----------
OTHER ITEMS** 0.00
---------- ---------- ---------- ------- -----------
TOTAL INT. DEPR & OTHER ITEMS 5,644.61 10,272.84 17,023.05 0.00 32,940.50
---------- ---------- ---------- ------- -----------
NET INCOME BEFORE TAXES 26,678.37 5,629.62 18,043.88 0.00 50,351.87
---------- ---------- ---------- ------- -----------
FEDERAL INCOME TAXES 0.00
---------- ---------- ---------- ------- -----------
NET INCOME (LOSS) (MOR-1) $26,678.37 $ 5,629.62 $18,043.88 $0.00 $ 50,351.87
========== ========== ========== ======= ===========
Accrual Accounting Required, Otherwise Footnote with Explanation
* Footnote Mandatory
** Unusual and/or infrequent item(s) outside the ordinary course of business
requires footnote.
R-6 Revised 07/01/98
45
CASE NAME: RIO GRANDE GULFMEX, LTD.
----------------------------------
CASE NUMBER: 98-55623-C
--------------------------------
CASH RECEIPTS AND MONTH MONTH MONTH MONTH FILING TO
DISBURSEMENTS NOVEMBER 1998 DECEMBER 1998 JANUARY 1999 DATE
------------- ------------- ------------ ----------- -----------
1. CASH-BEGINNING OF MONTH $ 49,401.24 $ 35,289.34 $ 22,352.07 $ 49,401.24
----------- ----------- ----------- ----------- -----------
RECEIPTS:
2. CASH SALES 0.00
----------- ----------- ----------- ----------- -----------
3. COLLECTION OF ACCOUNTS RECEIVABLE 0.00
----------- ----------- ----------- ----------- -----------
4. LOANS & ADVANCES (attach list) 0.00
----------- ----------- ----------- ----------- -----------
5. SALE OF ASSETS 0.00
----------- ----------- ----------- ----------- -----------
6. OTHER (attach list) INTERCOMPANY ADVANCE 23,410.00 23,410.00
----------- ----------- ----------- ----------- -----------
TOTAL RECEIPTS** 0.00 0.00 23,410.00 0.00 23,410.00
----------- ----------- ----------- ----------- -----------
(Withdrawal) Contribution by Individual
Debtor MFR-2*
----------- ----------- ----------- ----------- -----------
DISBURSEMENTS:
7. NET PAYROLL 0.00
----------- ----------- ----------- ----------- -----------
8. PAYROLL TAXES PAID 0.00
----------- ----------- ----------- ----------- -----------
9. SALES, USE & OTHER TAXES PAID 0.00
----------- ----------- ----------- ----------- -----------
10. SECURED/RENTAL/LEASES 0.00
----------- ----------- ----------- ----------- -----------
11. UTILITIES 0.00
----------- ----------- ----------- ----------- -----------
12. INSURANCE 0.00
----------- ----------- ----------- ----------- -----------
13. INVENTORY PURCHASES 0.00
----------- ----------- ----------- ----------- -----------
14. VEHICLE EXPENSES 0.00
----------- ----------- ----------- ----------- -----------
15. TRAVEL & ENTERTAINMENT 0.00
----------- ----------- ----------- ----------- -----------
16. REPAIRS, MAINTENANCE & SUPPLIES LOE'S 2,519.30 8,146.31 45,399.07 56,064.68
----------- ----------- ----------- ----------- -----------
17. ADMINISTRATIVE & SELLING 0.00
----------- ----------- ----------- ----------- -----------
18. OTHER (attach list) ROYALTIES 11,592.60 4,790.96 4,489.15 20,872.71
----------- ----------- ----------- ----------- -----------
TOTAL DISBURSEMENTS FROM OPERATIONS 14,111.90 12,937.27 49,888.22 0.00 76,937.39
----------- ----------- ----------- ----------- -----------
19. PROFESSIONAL FEES 0.00
----------- ----------- ----------- ----------- -----------
20. U.S. TRUSTEE FEES 0.00
----------- ----------- ----------- ----------- -----------
21. OTHER REORGANIZATION EXPENSES (attach list) 0.00
----------- ----------- ----------- ----------- -----------
TOTAL DISBURSEMENTS** 14,111.90 12,937.27 49,888.22 0.00 76,937.39
----------- ----------- ----------- ----------- -----------
22. NET CASH FLOW (14,111.90) (12,937.27) (26,478.22) 0.00 (53,527.39)
----------- ----------- ----------- ----------- -----------
23. CASH - END OF MONTH (MOR-2) $ 35,289.34 $ 22,352.07 $ (4,126.15) $ 0.00 $ (4,126.15)
=========== =========== =========== =========== ===========
* Applies to Individual debtors only
46
CASE NAME: RIO GRANDE GULFMEX, LTD.
------------------------
CASE NUMBER: 98-55623-C
------------------------
CASH ACCOUNT RECONCILIATION
MONTH OF January 1999
BANK NAME Broadway National Bank
----------------------
ACCOUNT NUMBER Account No. 0363472 N/A N/A
----------------------
ACCOUNT TYPE OPERATING TAX OTHER FUNDS TOTAL
---------------------- ----- ----------- ----------
BANK BALANCE 2689.09 $ 2,689.09
---------------------- ----- ----- ----------- ----------
DEPOSITS IN TRANSIT 0 $ 0.00
---------------------- ----- ----- ----------- ----------
OUTSTANDING CHECKS 6815.24 $ 6,815.24
---------------------- ----- ----- ----------- ----------
ADJUSTED BANK BALANCE $ (4,126.15) $0.00 $0.00 $ 0.00 $(4,126.15)
---------------------- ----- ----- ----------- ----------
BEGINNING CASH - PER BOOKS $ 22,352.07 $22,352.07
---------------------- ----- ----- ----------- ----------
RECEIPTS* Intercompany Advance 23,410.00 $23,410.00
---------------------- ----- ----- ----------- ----------
TRANSFERS BETWEEN ACCOUNTS 0 $ 0.00
---------------------- ----- ----- ----------- ----------
(WITHDRAWAL) CONTRIBUTION BY 0 $ 0.00
INDIVIDUAL DEBTOR MFR-2
---------------------- ----- ----- ----------- ----------
CHECKS/OTHER DISBURSEMENTS* 49,888.22 $49,888.22
---------------------- ----- ----- ----------- ----------
ENDING CASH - PER BOOKS $ (4,126.15) $(4,126.15)
====================== ===== ===== =========== ==========
MOR-8 *Numbers should balance (match) TOTAL RECEIPTS and
TOTAL DISBURSEMENTS lines on MOR-7
Revised 7/01/98
47
CASE NAME: RIO GRANDE GULFMEX, LTD.
----------------------------
CASE NUMBER: 98-55623-C
----------------------------
PAYMENTS TO INSIDERS AND PROFESSIONALS
Of the total disbursements shown for the month, list the amount paid to insiders
(as defined in Section 101(31)(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.) (Attach additional pages as necessary).
MONTH MONTH MONTH MONTH
INSIDERS: NAME/COMP TYPE November 1998 December 1998 January 1999
------------------------- ------------- ------------- ------------ -----------
1. NONE NONE NONE
--------- ---------- ---------- ----------
2.
--------- ---------- ---------- ----------
3.
--------- ---------- ---------- ----------
4.
--------- ---------- ---------- ----------
5.
--------- ---------- ---------- ----------
6.
--------- ---------- ---------- ----------
TOTAL INSIDERS (MOR-1) $ 0.00 $ 0.00 $ 0.00 $ 0.00
========= ========== ========== ==========
MONTH MONTH MONTH MONTH
PROFESSIONALS November 1998
------------- ------------- ------------- ------------ -----------
1. NONE
--------- ---------- ---------- ----------
2.
--------- ---------- ---------- ----------
3.
--------- ---------- ---------- ----------
4.
--------- ---------- ---------- ----------
5.
--------- ---------- ---------- ----------
6.
--------- ---------- ---------- ----------
TOTAL PROFESSIONALS (MOR-1) $ 0.00 $ 0.00 $ 0.00 $ 0.00
========= ========== ========== ==========
MOR-9 Revised 07/01/98