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SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K/A
(AMENDMENT NO. 1)
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
JANUARY 27, 1999
DATE OF REPORT (DATE OF EARLIEST EVENT REPORTED)
VENUS EXPLORATION, INC.
(EXACT NAME OF REGISTRANT AS SPECIFIED IN ITS CHARTER)
STATE OF DELAWARE 0-14334 13-3299127
(STATE OF INCORPORATION) (COMMISSION FILE NO.) (IRS EMPLOYER
IDENTIFICATION NO.)
1250 NE LOOP 410
SUITE 1000
SAN ANTONIO, TEXAS 78209
(ADDRESS OF PRINCIPAL EXECUTIVE OFFICES) (ZIP CODE)
REGISTRANT'S TELEPHONE NUMBER, INCLUDING AREA CODE: (210) 930-4900
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ITEM 7. FINANCIAL STATEMENTS AND EXHIBITS
As previously disclosed in its Current Reports on Form 8-K dated January 27,
1999 and February 12, 1999, respectively, on January 27, 1999 Venus Exploration,
Inc. completed the sale of its oil and gas properties in the State of West
Virginia and on February 12, 1999, Venus Exploration, Inc., completed the sale
of its interest in the H.E. White Unit in Freestone County, Texas. The
properties included interests in 61 existing wells, one well in process of being
completed, and a pipeline system that serviced many of the wells in West
Virginia. Venus Exploration, Inc. also sold its interest in a limited
partnership that owned property rights in oil and gas wells in West Virginia.
(a) Financial statements of businesses acquired
Not applicable.
(b) Pro forma financial information (Unaudited)
UNAUDITED PRO FORMA CONSOLIDATED STATEMENT OF OPERATIONS
DISPOSITION OF WEST VIRGINIA AND H.E. WHITE PROPERTIES
VENUS EXPLORATION, INC
FOR THE YEAR ENDED DECEMBER 31, 1998
Pro Forma Adjustments
Disposition of Properties
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Historical West H.E. White
Venus Virginia Unit Pro Forma
----------- ---------- ---------- -----------
Oil and gas sales................................... $ 2,804,749 $ (365,381) $ (65,901) $ 2,373,467
Costs of Operations:
Production expense............................. 1,609,733 (184,009) (33,489) 1,392,235
Exploration expenses, including dry holes...... 1,261,557 1,261,557
Impairment of oil and gas properties........... 3,543,152 (373,652) 3,169,500
Depreciation, depletion and amortization....... 1,774,999 (140,308) (24,011) 1,610,680
General and administrative..................... 3,174,156 3,174,156
----------- ---------- --------- -----------
Total expenses................................. 11,363,597 (697,969) (57,500) 10,608,128
----------- ---------- --------- -----------
Operating profit (loss)........................ (8,558,848) 332,588 (8,401) (8,234,661)
Other income (expense):
Interest expense............................... (568,085) (568,085)
Gain on sale of assets......................... 30,007 30,007
Interest and other income...................... 32,502 32,502
----------- -----------
(505,576) (505,576)
----------- -----------
Net loss before extraordinary item............. (9,064,424) 332,588 (8,401) (8,740,237)
----------- -----------
Loss on early extinguishment of debt................ (345,905) (345,905)
----------- ---------- --------- -----------
Net loss....................................... $(9,410,329) $ 332,588 $ (8,401) $(9,086,142)
=========== ========== ========= ===========
Average shares outstanding.......................... 9,022,180 9,022,180
Earnings (loss) per share:
Basic before extraordinary item................ $ (1.04) $ (1.01)
Basic.......................................... $ (1.04) $ (1.01)
Diluted........................................ $ (1.04) $ (1.01)
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UNAUDITED PRO FORMA CONSOLIDATED BALANCE SHEET
DISPOSITION OF WEST VIRGINIA AND H.E. WHITE PROPERTIES
VENUS EXPLORATION, INC
FOR THE YEAR ENDED DECEMBER 31, 1998
Pro Forma Adjustments
Disposition of Properties
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West H.E. White
Venus Virginia Unit Pro Forma
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ASSETS
CURRENT ASSETS
Cash and equivalents.................................. $ 125,832 $ (25,184) $ 324,391 $ 425,039
Trade accounts receivable and other................... 491,994 491,994
TOTAL CURRENT ASSETS.................................. 617,826 (25,184) 324,391 917,033
OIL AND GAS PROPERTIES AND EQUIPMENT,
net (successful efforts method), at cost............ 6,398,690 (1,134,445) (570,109) 4,694,136
OTHER PROPERTY AND EQUIPMENT, net, at cost............ 238,598 238,598
DEFERRED FINANCING COSTS, at cost less
accumulated amortization............................ 19,226 19,226
OTHER ASSETS, at cost less accumulated amortization... 121,574 121,574
------------ ------------ ---------- -----------
TOTAL ASSETS.......................................... $ 7,395,914 $ (1,159,629) $ (245,718) $ 5,990,567
============ ============ ========== ===========
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES
Trade accounts payable................................ $ 1,268,743 $ (159,629) $ (175,609) $ 933,505
Other liabilities..................................... 433,555 433,555
Current maturities of long-term debt, including
long-term debt reclassified as current.............. 5,540,000 (1,000,000) (650,000) 3,890,000
------------ ------------ ---------- -----------
TOTAL CURRENT LIABILITIES............................. 7,242,298 (1,159,629) (825,609) 5,257,060
LONG-TERM DEBT........................................ -- --
OTHER LONG-TERM LIABILITIES........................... 22,591 22,591
------------ ------------ ---------- -----------
TOTAL LIABILITIES..................................... 7,264,889 (1,159,629) (825,609) 5,279,651
STOCKHOLDERS' EQUITY
Common stock.......................................... 109,713 109,713
Additional paid-in capital............................ 17,209,042 17,209,042
Retained earnings (deficit)........................... (16,943,980) 579,891 (16,364,089)
Unearned compensation -- restricted stock............. (243,750) (243,750)
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TOTAL STOCKHOLDERS' EQUITY............................ 131,025 579,891 710,916
------------ ------------ ---------- -----------
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY............ $ 7,395,914 $ (1,159,629) $ (245,718) $ 5,990,567
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VENUS EXPLORATION, INC.
NOTES TO UNAUDITED PRO FORMA CONSOLIDATED FINANCIAL STATEMENTS
For the Year Ended December 31, 1998
1. BASIS OF PRESENTATION
The Unaudited Pro Forma December 31, 1998 Consolidated Balance Sheet is
presented assuming the sale of the properties occurred on December 31, 1998. The
Unaudited Pro Forma Consolidated Statements of Operations for the year-ended
December 31, 1998 is presented as if the sale of the properties occurred in the
prior period. The Unaudited Pro Forma Consolidated Financial Statements
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may not necessarily be indicative of the results which would actually have
occurred if the sale of the properties had been in effect of the date or for
the periods indicated.
2. PRO FORMA ADJUSTMENTS - STATEMENTS OF OPERATIONS
The pro forma adjustments to the Unaudited Pro Forma Consolidated
Statements of Operations reflect the following:
(a) DEPRECIATION, DEPLETION AND AMORTIZATION - The adjustment reflects
the pro forma depreciation, depletion and amortization expense based on the use
of adjusted capitalized costs and proved reserves.
(b) INCOME TAXES - No adjustments to income tax expense or benefit has
been reflected in the unaudited pro forma statements of operations due to the
net operating losses and the uncertainty of realizing deferred tax benefits.
(c) EARNINGS (LOSS) PER SHARE - The weighted average number of shares
of Common Stock outstanding is based on the number of shares outstanding.
Options and warrants outstanding are not reflected in the pro forma earnings
(loss) per share calculations because they would be anti-dilutive.
3. PRO FORMA ADJUSTMENTS - BALANCE SHEET
The pro forma adjustments to the Unaudited Pro Forma Consolidated
Balance Sheet reflect the following:
(a) NET OIL AND GAS PROPERTIES - The adjustment to Net Oil and Gas
Properties reflects the net book value of the properties sold.
(b) TRADE ACCOUNTS PAYABLE - The adjustments to Trade Accounts
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Payable reflect payments of accrued revenue payables and trade payables
attributable to the properties sold.
(c) CURRENT MATURITIES OF LONG-TERM DEBT, INCLUDING LONG-TERM DEBT
RECLASSIFIED AS CURRENT - The adjustments to current maturities of long-term
debt, including long-term debt reclassified as current reflect the paydown of
the debt that actually occurred when the properties were sold.
(d) RETAINED EARNINGS (DEFICIT) - The adjustment to Retained Earnings
(Deficit) reflects the effect on the accumulated deficit of the sale of the
properties.
(c) Exhibits.
2.1 Asset Purchase Agreement among Venus Exploration,
Inc., Allegheny Interests, Inc. and Meridian
Exploration Corporation, dated January 26, 1999.
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, as
amended, the registrant has duly caused this report to be signed on its behalf
by the undersigned hereunto duly authorized.
VENUS EXPLORATION, INC.
By: /s/ PATRICK A. GARCIA
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Name: Patrick A. Garcia
Title: Chief Financial Officer
Dated: April 12, 1999
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EXHIBITS
EXHIBIT DOCUMENT
2.1 Asset Purchase Agreement among Venus Exploration, Inc., Allegheny Interests,
Inc. and Meridian Exploration, Inc., dated January 26, 1999.