Exhibit 99.02
UNITED STATES BANKRUPTCY COURT
DISTRICT OF NEVADA
In re: Mid-Power Resource Corporation Case No. BK-S 03-10877
CHAPTER 11
MONTHLY OPERATING REPORT
(GENERAL BUSINESS CASE)
SUMMARY OF FINANCIAL STATUS
MONTH ENDED: Jun-03 PETITION DATE: 01/24/03
1. Debtor in possession (or trustee) hereby submits this Monthly Operating Report on the Accrual Basis of accounting (or if
checked here the Office of the U.S. Trustee or the Court has approved the Cash Basis of Accounting for the Debtor).
Dollars reported in $1
2. Asset and Liability Structure End of Current Month End of Prior Month As of Petition Filing
a. Current Assets $35,338 $38,873
b. Total Assets * $32,346,470 $32,339,282 $46,108,938
c. Current Liabilities $17,736 $16,727 $16,088
d. Total Liabilities $1,757,645 $1,756,949 $4,073,070
3. Statement of Cash Receipts & Disbursements for Month Current Month Current Month Cumulative
(Case to Date)
a. Total Receipts $0 $238 $58,646
b. Total Disbursements $3,659 $9,726 $36,647
c. Excess (Deficiency) of Receipts Over Disbursements (a - b) ($3,659) ($9,488) $21,999
d. Cash Balance Beginning of Month $25,710 $35,198 $51
e. Cash Balance End of Month (c + d) $22,051 $25,710 $22,050
Current Month Current Month Cumulative
(Case to Date)
4. Profit/(Loss) from the Statement of Operations ($637) ($9,792) ($11,447,821)
5. Account Receivables (Pre and Post Petition) $13,287 $13,163
6. Post-Petition Liabilities $17,736 $16,727
7. Past Due Post-Petition Account Payables (over 30 days) $0 $0
At the end of this reporting month: Yes No
8. Have any payments been made on pre-petition debt, other than payments in the normal X
course to secured creditors or lessors? (if yes, attach listing including date of
payment, amount of payment and name of payee)
9. Have any payments been made to professionals? (if yes, attach listing including date of X
payment, amount of payment and name of payee)
10. If the answer is yes to 8 or 9, were all such payments approved by the court?
11. Have any payments been made to officers, insiders, shareholders, relatives? (if yes, X
attach listing including date of payment, amount and reason for payment, and name of payee)
12. Is the estate insured for replacement cost of assets and for general liability? X
13. Are a plan and disclosure statement on file? X
14. Was there any post-petition borrowing during this reporting period? X
15. Check if paid: Post-petition taxes X; U.S. Trustee Quarterly Fees X; Check if filing is current for: Post-petition
tax reporting and tax returns: X.
(Attach explanation, if post-petition taxes or U.S. Trustee Quarterly Fees are not paid current or if post-petition tax
reporting and tax return filings are not current.)
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The cumulative profit from the Statement of Operations includes an $11.4 million gain on legal settlement. On a consolidated, GAAP
basis of accounting, this gain would be completely offset by an $11.4 million impairment loss recorded on Mid-Power Resource Corp.'s
Statement of Operations.
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I declare under penalty of perjury I have reviewed the above summary and attached financial statements, and after making reasonable
inquiry believe these documents are correct.
Date: 8/22/2003 0:00 /s/ Mark Davis
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Responsible Individual
STATEMENT OF OPERATIONS
(General Business Case)
For the Period January 24 (bankruptcy filing) - June 30, 2003
Current Month
- ---------------------------------------
Actual Forecast Variance Cumulative Next Month
(Case to Date) Forecast
Revenues:
$124 85 $39 1 Gross Sales 25,748 85
- - - 2 less: Sales Returns & Allowances - -
124 85 39 3 Net Sales 25,748 85
- - 4 less: Cost of Goods Sold (Sched. 'B') -
124 85 39 5 Gross Profit 25,748 85
34,093 - 34,093 6 Interest 67,558 -
- - - 7 Other Income: - -
- - - 8 - -
- - - 9 - -
34,217 85 34,132 10 Total Revenues 93,306 85
Expenses:
- - - 11 Compensation to Owner(s)/Officer(s) - -
- - - 0% 12 Salaries - -
- - - 0% 13 Commissions - -
- - - 0% 14 Contract Labor - -
- - - 0% 15 Rent/Lease: - -
Personal Property
- - - 0% 16 Real Property - -
128 50 (78) -156% 17 Insurance 128 50
- - - 0% 18 Management Fees - -
21,629 - (21,629) 0% 19 Depreciation and Depletion 62,341 -
- - - 0% 20 Taxes: - -
Employer Payroll Taxes
- - - 0% 21 Real Property Taxes - -
- - - 22 Other Taxes - -
- - - 0% 23 Other Selling - -
500 100 (400) -400% 24 Other Administrative 755 100
84 456 372 82% 25 Interest 1,986 446
- 0% 26 Other Expenses:
3,643 3,989 346 9% 27 Production Expenses 31,297 3,989
- 14,167 14,167 100% 28 Maintenance - Wells and Roads 898 62,267
- - 0% 29 Legal fees - Davis Lawsuit 2,320 0
8,370 4,000 (4,370) -109% 30 Ordinary Course Professionals 13,550 4,000
- - - 0% 31 Impairment Loss - Clear Creek 11,426,647 -
- 0% 32
- 0% 33
- 0% 34
34,354 22,762 (11,592) 35 Total Expenses 11,539,922 70,852
(137) (22,677) 22,540 36 Subtotal (11,446,616) (70,767)
- - 37 Reorganization Items: (172)
Professional Fees
- 38 Provisions for Rejected Executory Contracts
- 39 Interest Earned on Accumulated Cash from
Resulting Chp 11 Case
- 40 Gain or (Loss) from Sale of Equipment
(500) (500) - 41 U.S. Trustee Quarterly Fees (750) -
- - 42 Other (283)
(500) (500) - 43 Total Reorganization Items (1,205) -
(637) (23,177) 22,540 44 Net Profit (Loss) Before Federal & State Taxes (11,447,821) (70,767)
- 45 Federal & State Income Taxes
($637) (23,177) $22,540 46 Net Profit (Loss) ($11,447,821) (70,767)
Attach an Explanation of Variance to Statement of Operations (For variances greater than +/- 10% only):
MID-POWER RESOURCE CORPORATION
BK-S-10877
For the Month Ended June 30, 2003
STATEMENT OF OPERATIONS - VARIANCE EXPLANATIONS
Line 6 - Interest
Accrual of interest on notes receivable from Sunray. This represents a quarterly
accrual calculation.
Line 17 - Insurance
This represents auto insurance. Higher costs than budgeted.
Line 19 - Depreciation and Depletion
This represents quarterly calculation of depreciation and depletion.
Line 24 - Other Administrative
Amounts fluctuate on a monthly basis.
Line 28 - Maintenance Expense
No maintenance was performed during period.
Line 30 - Ordinary Course Professionals
Additional consultants used on Clear Creek property than was budgeted.
BALANCE SHEET
(General Business Case)
For the Month Ended 06/30/03
Assets
From Schedules Market Value
Current Assets
1 Cash and cash equivalents - unrestricted 22,051
2 Cash and cash equivalents - restricted $0
3 Accounts receivable (net) A $13,287
4 Inventory B $0
5 Prepaid expenses $0
6 Professional retainers $0
7 Other:
8
9 Total Current Assets $35,338
Property and Equipment (Market Value)
10 Real property C $0
11 Machinery and equipment D $0
12 Furniture and fixtures D $0
13 Office equipment D $0
14 Leasehold improvements D $0
15 Vehicles D $57,320
16 Other: D
17 D
18 D
19 D
20 D
21 Total Property and Equipment $57,320
Other Assets
22 Loans to shareholders -
23 Loans to affiliates
24 Deposits with federal and state agencies $170,000
25 Investment in oil and gas partnerships and joint ventures 29,757,187
26 Investment in Sunray Petroleum at original cost Footnote 1 $632,638
27 Notes and interest receivable from Sunray Petroleum Footnote 1 1,693,987
28 Total Other Assets $32,253,812
29 Total Assets $32,346,470
NOTE:
See footnotes following this balance sheet.
Liabilities and Equity
(General Business Case)
Liabilities From Schedules
Post-Petition
Current Liabilities
30 Salaries and wages $0
31 Payroll taxes $0
32 Real and personal property taxes $0
33 Income taxes $0
34 Sales taxes $0
35 Notes payable (short term) $0
36 Accounts payable (trade) A $4,043
37 Real property lease arrearage $0
38 Personal property lease arrearage $0
39 Accrued professional fees 3,666
40 Current portion of long-term post-petition debt (due within 12 months) 4,223
41 Other: Note payable to Mid-Power Service Corp. 5,804
42 Accrued U.S. Trustee fees -
43
44 Total Current Liabilities $17,736
45 Long-Term Post-Petition Debt, Net of Current Portion
46 Total Post-Petition Liabilities $17,736
Pre-Petition Liabilities (allowed amount)
47 Secured claims F $60,269
48 Priority unsecured claims F $0
49 General unsecured claims F $1,679,640
50 Total Pre-Petition Liabilities $1,739,909
51 Total Liabilities $1,757,645
Equity (Deficit)
52 Retained Earnings/(Deficit) at time of filing ($1,461,332)
53 Capital Stock
issued and outstanding $1
54 Additional paid-in capital $43,497,198
55 Cumulative profit/(loss) since filing of case ($11,447,821)
56 Post-petition contributions/(distributions) or (draws) $0
57
58 Market value adjustment 279
59 Total Equity (Deficit) $30,588,325
60 Total Liabilities and Equity (Deficit) $32,345,970
Mid-Power Resource Corporation
BK-S 03-10877
Footnotes to the Balance Sheet
As Of June 30, 2003
Footnote 1
Management's belief is that the original investment in Sunray Petroleum, a
wholly owned subsidiary, reflects the market value of this asset. In addition,
it believes that the notes and interest receivable are fully recoverable. The
application of generally accepted accounting procedures might provide different
results.
SCHEDULES TO THE BALANCE SHEET
(General Business Case)
Schedule A
Accounts Receivable and (Net) Payable
Receivables and Payables Agings Accounts Receivable Accounts Payable Past Due
[Pre and Post Petition] [Post Petition] Post Petition Debt
0 -30 Days $124 4,043
31-60 Days $0
61-90 Days $0 $0
91+ Days $13,163
Total accounts receivable/payable $13,287 $4,043
Allowance for doubtful accounts
Accounts receivable (net) $13,287
Schedule B
Inventory/Cost of Goods Sold
Types and Amount of Inventory(ies) Cost of Goods Sold
Inventory(ies) Inventory Beginning of Month $ -
Balance at
End of Month
Add -
Retail/Restaurants - Net purchase
Product for resale Direct labor
Manufacturing overhead
Distribution - Freight in
Products for resale Other:
Manufacturer -
Raw Materials
Work-in-progress Less -
Finished goods Inventory End of Month $0
Shrinkage
Other - Explain $0 Personal Use
Tubing
Cost of Goods Sold $0
TOTAL $0
Method of Inventory Control Inventory Valuation Methods
Do you have a functioning perpetual inventory system? Indicate by a checkmark method of inventory used.
Yes [ ] No [x]
How often do you take a complete physical inventory? Valuation methods -
FIFO cost x
Weekly LIFO cost
Monthly Lower of cost or market
Quarterly Retail method
Semi-annually Other
Annually Explain
Date of last physical inventory was ________________________________
Date of next physical inventory is _________________________________
Schedule C
Real Property
Description Cost Market Value
Total $0 $0
Schedule D
Other Depreciable Assets
Description Cost Market Value
Machinery & Equipment -
$0 $0
Total $0 $0
Furniture & Fixtures -
Total $0 $0
Office Equipment -
Total $0 $0
Leasehold Improvements -
Total $0 $0
Vehicles -
2001 GMC Sierra - 2, net of depreciation; market value = Kelley Blue Book $57,041 $57,320
Total $57,041 $57,320
Schedule E
Aging of Post-Petition Taxes
(As of End of the Current Reporting Period)
Taxes Payable 0-30 Days 31-60 Days 61-90 Days 91+ Days Total
Federal
Income Tax Withholding $0
FICA - Employee $0
FICA - Employer $0
Unemployment (FUTA) $0
Income $0
Other (Attach List) $0
Total Federal Taxes $0 $0 $0 $0 $0
State and Local
Income Tax Withholding $0
Unemployment (UT) $0
Disability Insurance (DI) $0
Empl. Training Tax (ETT) $0
Sales $0
Excise $0
Real property $0
Personal property $0
Income $0
Other (Attach List) $0
Total State & Local Taxes $0 $0 $0 $0 $0
Total Taxes $0 $0 $0 $0 $0
Schedule F
Pre-Petition Liabilities
List Total Claims For Each Classification - Claimed Allowed
Amount Amount (b)
Secured claims (a) 60,269 60,269
Priority claims other than taxes $0 $0
Priority tax claims
General unsecured claims 1,679,640 $1,679,640
(a) List total amount of claims even it under secured.
(b) Estimated amount of claim to be allowed after compromise or
litigation. As an example, you are a defendant in a lawsuit
alleging damage of $10,000,000 and a proof of claim is filed in
that amount. You believe that you can settle the case for a
claim of $3,000,000. For Schedule F reporting purposes you
should list $10,000,000 as the Claimed Amount and $3,000,000 as
the Allowed Amount.
Schedule G
Rental Income Information
Not applicable to General Business Cases
Schedule H
Recapitulation of Funds Held at End of Month
Account 1 Account 2 Account 3 Account 4
Bank Wells Fargo
Account Type Checking
Account No. 100-9350446
Account Purpose Checking
Balance, End of Month 22,051
Total Funds on Hand for all Accounts $22,051
Attach copies of the month end bank statement(s), reconciliation(s), and the check register(s) to the Monthly Operating Report.
STATEMENT OF CASH RECEIPTS AND DISBURSEMENTS
Increase/(Decrease) in Cash and Cash Equivalents
For the Month Ended 06/30/03
Actual Cumulative
Current Month (Case to Date)
Cash Receipts
1 Rent/Leases Collected $0 -
2 Cash Received from Sales $0 48,620
3 Interest Received $0 -
4 Borrowings $0 4,223
5 Funds from Shareholders, Partners, or Other Insiders $0 5,804
6 Capital Contributions $0 -
7 $0
8 $0
9 $0
10 $0
11 $0
12 Total Cash Receipts $0 $58,646
Cash Disbursements
13 Payments for Inventory 0 0
14 Selling $0 -
15 Administrative $628 883
16 Capital Expenditures $0 -
17 Principal Payments on Debt $0 5,095
18 Interest Paid $0 1,902
Rent/Lease:
19 Personal Property $0 -
20 Real Property $0 -
Amount Paid to Owner(s)/Officer(s) 0
21 Salaries $0 -
22 Draws $0 -
23 Commissions/Royalties $0 -
24 Expense Reimbursements $0 -
25 Other $0 -
26 Salaries/Commissions (less employee withholding) $0 -
27 Management Fees $0 $0
Taxes:
28 Employee Withholding $0 $0
29 Employer Payroll Taxes $0 $0
30 Real Property Taxes $0 -
31 Other Taxes $0 -
32 Other Cash Outflows:
33 Production Expenses $3,031 27,950
34 Maintenance Expenses $0 284
35 $0
36 U.S. Trustee $0 250
37 Other Reorganization Expenses $0 283
38 Total Cash Disbursements: $3,659 $36,647
39 Net Increase (Decrease) in Cash ($3,659) $21,999
40 Cash Balance, Beginning of Period $25,710 $52
41 Cash Balance, End of Period $22,051 $22,051