----------------------------------------------------
CASE NAME: Venus Exploration, Exhibit 99.1
Inc
---------------------------------------------------- ----------------------------------
----------------------------------------------------
CASE: 02-13109-BP-11
----------------------------------------------------
ACCRUAL BASIS
----------------------------------------------------
JUDGE: Bill Parker 9/20/03
----------------------------------------------------
UNITED STATES BANKRUPTCY COURT
EASTERN DISTRICT OF TEXAS
MONTHLY OPERATING REPORTS
MONTH ENDING: August, 2003
Note 1
IN ACCORDANCE WITH TITLE 28, SECTION 1746, OF THE UNITED STATES CODE, I
DECLARE UNDER PENALTY OF PERJURY I HAVE EXAMINED THE FOLLOWING MONTHLY OPERATING
REPORT (ACCURAL BASIS-1 THROUGH ACCURAL BASIS-7) AND THE ACCOMPANYING
ATTACHMENTS AND, TO THE BEST OF MY KNOWLEDGE, THESE DOCUMENTS ARE TRUE, CORRECT
AND COMPLETE. DECLARATION OF THE PREPARER (OTHER THAN RESPONSIBLE PARTY): IS
BASED ON ALL INFORMATION OF WHICH PREPARER HAS ANY KNOWLEDGE.
RESPONSIBLE PARTY:
/s/ EUGENE L. AMES, Jr. CEO
--------------------------- ---------------
ORIGINAL SIGNATURE OF RESPONSIBLE PARTY TITLE
Eugene L. Ames, Jr
---------------------------
PRINTED NAME OF RESPONSIBLE PARTY DATE
9/22/2003
PREPARER:
/s/ TERRY F. HARDEMAN Chief Accounting Officer
--------------------------- ----------------------------
ORIGINAL SIGNATURE OF PREPARER TITLE
Terry F. Hardeman
---------------------------
PRINTED NAME OF PREPARER DATE
9/22/2003
----------------------------------------------------
CASE NAME: Venus Exploration, ACCRUAL BASIS-1
Inc
----------------------------------------------------
----------------------------------------------------
CASE: 02-13109-BP-11 9/20/03
----------------------------------------------------
--------------------------------------------------------------------------------------------------
COMPARATIVE BALANCE SHEET
--------------------------------------------------------------------------------------------------
SCHEDULE MONTH MONTH MONTH
----------------------------------------------
ASSETS AMOUNT June, 2003 July, 2003 August, 2003
--------------------------------------------------------------------------------------------------
1. UNRESTRICTED CASH $69,663.85 $55,669.97 $49,046.67
--------------------------------------------------------------------------------------------------
2. RESTRICTED CASH Schedule 17 $1,518,689.52 $1,519,656.90 $1,948,798.42
--------------------------------------------------------------------------------------------------
3. TOTAL CASH $1,588,353.37 $1,575,326.87 $1,997,845.09
--------------------------------------------------------------------------------------------------
4. ACCOUNTS RECEIVABLE, NET $342,202.53 $319,843.33 $344,936.90
--------------------------------------------------------------------------------------------------
5. INVENTORY
--------------------------------------------------------------------------------------------------
6. NOTES RECEIVABLE
--------------------------------------------------------------------------------------------------
7. PREPAID EXPENSES $70,349.03 $63,559.64 $59,531.34
--------------------------------------------------------------------------------------------------
8. OTHER (ATTACH LIST)
--------------------------------------------------------------------------------------------------
9. TOTAL CURRENT ASSETS $2,000,904.93 $1,958,729.84 $2,402,313.33
--------------------------------------------------------------------------------------------------
PROPERTY, PLANT, & Schedule 16
10. EQUIPMENT $5,920,803.68 $5,920,803.68 $5,760,277.71
--------------------------------------------------------------------------------------------------
LESS: ACCUMULATED Schedule 16
11. DEPRECIATION/DEPLETION ($3,999,076.06)($4,015,836.17) ($3,971,066.45)
--------------------------------------------------------------------------------------------------
12. NET PROPERTY, PLANT & EQUIPMENT $1,921,727.62 $1,904,967.51 $1,789,211.26
--------------------------------------------------------------------------------------------------
13. DUE FROM INSIDERS $9,353.43 $9,289.99 $9,346.98
--------------------------------------------------------------------------------------------------
OTHER ASSETS - NET OF Schedule 1
14. AMORTIZATION (ATTACH LIST) $6,545.00 $6,545.00 $6,545.00
--------------------------------------------------------------------------------------------------
15. OTHER (ATTACH LIST)
--------------------------------------------------------------------------------------------------
16 TOTAL ASSETS $3,938,530.98 $3,879,532.34 $4,207,416.57
--------------------------------------------------------------------------------------------------
POSTPETITION LIABILITIES
--------------------------------------------------------------------------------------------------
17. ACCOUNTS PAYABLE $128,986.75 $95,215.33 $113,763.75
--------------------------------------------------------------------------------------------------
18. TAXES PAYABLE
--------------------------------------------------------------------------------------------------
19. NOTES PAYABLE
--------------------------------------------------------------------------------------------------
20. PROFESSIONAL FEES
--------------------------------------------------------------------------------------------------
21. SECURED DEBT
--------------------------------------------------------------------------------------------------
22. OTHER (ATTACH LIST) Accrued Payables $29,575.53 $40,311.93 $40,981.38
--------------------------------------------------------------------------------------------------
23. TOTAL POSTPETITION LIABILITIES $158,562.28 $135,527.26 $154,745.13
--------------------------------------------------------------------------------------------------
PREPETITION LIABILITIES
--------------------------------------------------------------------------------------------------
24. SECURED DEBT $1,505,431.11 $1,505,232.53 $1,505,232.53
--------------------------------------------------------------------------------------------------
25. PRIORITY DEBT
--------------------------------------------------------------------------------------------------
26. UNSECURED DEBT $6,064,217.05 $6,049,477.51 $6,049,477.51
--------------------------------------------------------------------------------------------------
27. OTHER (ATTACH LIST) Schedule 2 $38,700.77 $37,104.65 $35,508.53
--------------------------------------------------------------------------------------------------
28. TOTAL PREPETITION LIABILITIES $7,608,348.93 $7,591,814.69 $7,590,218.57
--------------------------------------------------------------------------------------------------
29. TOTAL LIABILITIES $7,766,911.21 $7,727,341.95 $7,744,963.70
--------------------------------------------------------------------------------------------------
EQUITY
--------------------------------------------------------------------------------------------------
30. PREPETITION OWNERS' EQUITY ($3,752,128.04)($3,752,128.04) ($3,752,128.04)
--------------------------------------------------------------------------------------------------
31. POSTPETITION CUMULATIVE PROFIT OR (LOSS) ($37,606.41) ($27,393.97) $269,281.91
--------------------------------------------------------------------------------------------------
DIRECT CHARGES TO EQUITY Note 2
32. (ATTACHMENT EXPLANATION) ($38,645.78) ($68,287.60) ($54,701.00)
--------------------------------------------------------------------------------------------------
33. TOTAL EQUITY ($3,828,380.23)($3,847,809.61) ($3,537,547.13)
--------------------------------------------------------------------------------------------------
34. TOTAL LIABILITIES & OWNERS' EQUITY $3,938,530.98 $3,879,532.34 $4,207,416.57
--------------------------------------------------------------------------------------------------
$0.00
- ----------------------------------------------------------------------------------------------------
-----------------------------------------------------
CASE NAME: Venus Exploration, Inc ACCRUAL BASIS-2
-----------------------------------------------------
-----------------------------------------------------
CASE: 02-13109-BP-11 9/20/03
-----------------------------------------------------
-----------------------------------------
INCOME STATEMENT
------------------------------------------------------------------------------------------------
MONTH MONTH MONTH QUARTER
-------------------------------------------------------
REVENUES June, 2003 July, 2003 August, 2003 TOTAL
------------------------------------------------------------------------------------------------
1. GROSS REVENUES Note 2 $178,758.49 $150,564.74 $157,813.65 $487,136.88
------------------------------------------------------------------------------------------------
2. LESS: RETURNS & DISCOUNTS
------------------------------------------------------------------------------------------------
3. NET REVENUE Schedule 14 $178,758.49 $150,564.74 $157,813.65 $487,136.88
------------------------------------------------------------------------------------------------
COSTS OF GOODS SOLD
------------------------------------------------------------------------------------------------
4. MATERIAL
------------------------------------------------------------------------------------------------
5. DIRECT LABOR
------------------------------------------------------------------------------------------------
6. DIRECT OVERHEAD
------------------------------------------------------------------------------------------------
7. TOTAL COST OF GOODS SOLD $0.00 $0.00 $0.00 $0.00
------------------------------------------------------------------------------------------------
8. GROSS PROFIT $178,758.49 $150,564.74 $157,813.65 $487,136.88
------------------------------------------------------------------------------------------------
OPERATING EXPENSES
------------------------------------------------------------------------------------------------
9. OFFICER / INSIDER COMPENSATION $0.00 $0.00 $0.00 $0.00
------------------------------------------------------------------------------------------------
10. SELLING & MARKETING
------------------------------------------------------------------------------------------------
11. GENERAL & ADMINISTRATIVE Schedule 3 $35,267.02 $31,701.00 $32,031.36 $98,999.38
------------------------------------------------------------------------------------------------
12. RENT & LEASE $3,749.88 $3,749.88 $3,749.88 $11,249.64
------------------------------------------------------------------------------------------------
13. OTHER (ATTACH LIST) Schedule 4 $110,514.53 $78,485.97 $107,344.87 $296,345.37
------------------------------------------------------------------------------------------------
14. TOTAL OPERATING EXPENSES $149,531.43 $113,936.85 $143,126.11 $406,594.39
------------------------------------------------------------------------------------------------
INCOME BEFORE NON-OPERATING INCOME &
15. EXPENSE $29,227.06 $36,627.89 $14,687.54 $80,542.49
------------------------------------------------------------------------------------------------
OTHER INCOME & EXPENSE
------------------------------------------------------------------------------------------------
NON-OPERATING INCOME (ATT.
16. LIST) Schedule 5 $1,195.29 $8,662.11 $323,202.75 $333,060.15
------------------------------------------------------------------------------------------------
17. NON-OPERATING EXPENSE (ATT. LIST)
------------------------------------------------------------------------------------------------
18. INTEREST EXPENSE Schedule 12 $8,066.95 $14,491.24 $14,171.39 $36,729.58
------------------------------------------------------------------------------------------------
19. DEPRECIATION / DEPLETION $16,760.11 $16,760.11 $16,760.28 $50,280.50
------------------------------------------------------------------------------------------------
20. AMORTIZATION $0.00
----------------------------------------------------------------- ------------------
21. OTHER (ATTACH LIST) Schedule 15 $10,000.00
------------------------------------------------------------------------------------------------
22. NET OTHER INCOME & EXPENSES $23,631.77 $22,589.24 ($282,271.08) ($246,050.07)
------------------------------------------------------------------------------------------------
REORGANIZATION EXPENSES
------------------------------------------------------------------------------------------------
23. PROFESSIONAL FEES $0.00
------------------------------------------------------------------------------------------------
24. U. S. TRUSTEE FEES $5,000.00 $3,750.00 $8,750.00
------------------------------------------------------------------------------------------------
25. OTHER (ATTACH LIST) Schedule 6 $175.00 $76.21 $282.74 $533.95
------------------------------------------------------------------------------------------------
26. TOTAL REORGANIZATION EXPENSES $5,175.00 $3,826.21 $282.74 $9,283.95
------------------------------------------------------------------------------------------------
27. INCOME TAX
------------------------------------------------------------------------------------------------
28. NET PROFIT (LOSS) $420.29 $10,212.44 $296,675.88 $317,308.61
------------------------------------------------------------------------------------------------
-----------------------------------------------------
CASE NAME: Venus Exploration, Inc ACCRUAL BASIS-3
-----------------------------------------------------
-----------------------------------------------------
CASE: 02-13109-BP-11 9/20/03
-----------------------------------------------------
------------------------------------------------------------------------------------------------
CASH RECEIPTS AND MONTH MONTH MONTH QUARTER
-------------------------------------------------------
DISBURSEMENTS June, 2003 July, 2003 August, 2003 TOTAL
------------------------------------------------------------------------------------------------
1. CASH - BEGINNING OF MONTH $66,559.13 $69,663.85 $55,669.97 $66,559.13
------------------------------------------------------------------------------------------------
RECEIPTS FROM OPERATIONS
------------------------------------------------------------------------------------------------
2. CASH SALES $108,714.35 $101,253.75 $98,260.42 $308,228.52
------------------------------------------------------------------------------------------------
COLLECTIONS OF ACCOUNTS RECEIVABLE
------------------------------------------------------------------------------------------------
3. PREPETITON $0.00
------------------------------------------------------------------------------------------------
4. POSTPETITION $2,029.99 $2,207.07 $1,573.68 $5,810.74
------------------------------------------------------------------------------------------------
5. TOTAL OPERATING RECEIPTS $110,744.34 $103,460.82 $99,834.10 $314,039.26
------------------------------------------------------------------------------------------------
NON-OPERATING RECEIPTS
------------------------------------------------------------------------------------------------
6. LOANS & ADVANCES (ATTACH LIST)
------------------------------------------------------------------------------------------------
7. SALE OF ASSETS
------------------------------------------------------------------------------------------------
8. OTHER (ATTACH LIST) Schedule 7 $5,963.91 $68,698.51 $21,989.22 $96,651.64
------------------------------------------------------------------------------------------------
9. TOTAL NON-OPERATING RECEIPTS $5,963.91 $68,698.51 $21,989.22 $96,651.64
------------------------------------------------------------------------------------------------
10. TOTAL RECEIPTS $116,708.25 $172,159.33 $121,823.32 $410,690.90
------------------------------------------------------------------------------------------------
11. TOTAL CASH AVAILABLE $183,267.38 $241,823.18 $177,493.29 $477,250.03
------------------------------------------------------------------------------------------------
OPERATING DISBURSEMENTS
------------------------------------------------------------------------------------------------
12. NET PAYROLL $2,759.43 $2,724.29 $2,784.81 $8,268.53
------------------------------------------------------------------------------------------------
13. PAYROLL TAXES PAID $998.02 $984.25 $1,007.97 $2,990.24
------------------------------------------------------------------------------------------------
14. SALES, USE & OTHER TAXES PAID
------------------------------------------------------------------------------------------------
15. SECURED / RENTAL / LEASES
------------------------------------------------------------------------------------------------
16 UTILITIES
------------------------------------------------------------------------------------------------
17. INSURANCE
------------------------------------------------------------------------------------------------
18. INVENTORY PURCHASES
------------------------------------------------------------------------------------------------
19. VEHICLE EXPENSES
------------------------------------------------------------------------------------------------
20. TRAVEL
------------------------------------------------------------------------------------------------
21. ENTERTAINMENT
------------------------------------------------------------------------------------------------
22. REPAIRS & MAINTENANCE
------------------------------------------------------------------------------------------------
23. SUPPLIES
------------------------------------------------------------------------------------------------
24. ADVERTISING
------------------------------------------------------------------------------------------------
25. OTHER (ATTACH LIST) Schedule 8 $109,846.08 $182,444.67 $124,653.84 $416,944.59
------------------------------------------------------------------------------------------------
26. TOTAL OPERATING DISBURSEMENTS $113,603.53 $186,153.21 $128,446.62 $428,203.36
------------------------------------------------------------------------------------------------
REORGANIZATION EXPENSES
------------------------------------------------------------------------------------------------
27. PROFESSIONAL FEES
------------------------------------------------------------------------------------------------
28. U.S. TRUSTEE FEES
------------------------------------------------------------------------------------------------
29. OTHER (ATTACH LIST)
------------------------------------------------------------------------------------------------
30. TOTAL REORGANIZATION EXPENSES
------------------------------------------------------------------------------------------------
31. TOTAL DISBURSEMENTS $113,603.53 $186,153.21 $128,446.62 $428,203.36
------------------------------------------------------------------------------------------------
32. NET CASH FLOW $3,104.72 ($13,993.88) ($6,623.30) ($17,512.46)
------------------------------------------------------------------------------------------------
33. CASH - END OF MONTH Schedule 13 $69,663.85 $55,669.97 $49,046.67 $49,046.67
------------------------------------------------------------------------------------------------
----------------------------------------------------
CASE NAME: Venus Exploration, ACCRUAL BASIS - 4
Inc
----------------------------------------------------
----------------------------------------------------
CASE: 02-13109-BP-11 9/20/03
----------------------------------------------------
-------------------------------------------------------------------------------------------------
SCHEDULE MONTH MONTH MONTH
---------------------------------------------
ACCOUNTS RECEIVABLE AGING AMOUNT June, 2003 July, 2003 August, 2003
-------------------------------------------------------------------------------------------------
1. 0 - 30 $210,993.05 $185,953.65 $211,000.36
-------------------------------------------------------------------------------------------------
2. 31 - 60 $13,952.45 $10,361.66 $7,323.07
-------------------------------------------------------------------------------------------------
3. 61 - 90 $1,031.92 $7,006.42 $4,303.36
-------------------------------------------------------------------------------------------------
4. 91 + $187,847.82 $188,144.31 $193,932.82
-------------------------------------------------------------------------------------------------
5. TOTAL ACCOUNTS RECEIVABLE $413,825.24 $391,466.04 $416,559.61
-------------------------------------------------------------------------------------------------
6. AMOUNT CONSIDERED UNCOLLECTABLE $71,622.71 $71,622.71 $71,622.71
-------------------------------------------------------------------------------------------------
7. ACCOUNTS RECEIVABLE, NET $342,202.53 $319,843.33 $344,936.90
-------------------------------------------------------------------------------------------------
----------------------------------------------------
MONTH: August, 2003
---------------------------------
AGING OF POSTPETITON TAXES AND PAYABLES
-------------------------------------------------------------------------------------------------
TAXES PAYABLE 0 - 30 31 - 60 61 - 90 DAYS 91 + DAYS TOTAL
DAYS DAYS
-------------------------------------------------------------------------------------------------
1. FEDERAL $0.00 $0.00 $0.00 $0.00 $0.00
-------------------------------------------------------------------------------------------------
2. STATE $0.00 $0.00 $0.00 $0.00 $0.00
-------------------------------------------------------------------------------------------------
3. LOCAL $0.00 $0.00 $0.00 $0.00 $0.00
-------------------------------------------------------------------------------------------------
4. OTHER (ATTACH LIST) $0.00 $0.00 $0.00 $0.00 $0.00
-------------------------------------------------------------------------------------------------
5. TOTAL TAXES PAYABLE $0.00 $0.00 $0.00 $0.00 $0.00
-------------------------------------------------------------------------------------------------
------------------------------- -------------------------------------------------------
6. ACCOUNTS PAYABLE $0.00
------------------------------- -------------------------------------------------------
------------------------------------------
MONTH: August, 2003
---------------------------------
STATUS OF POSTPETITION TAXES
-------------------------------------------------------------------------------------------------
FEDERAL BEGINNING AMOUNT AMOUNT PAID ENDING TAX
TAX WITHHELD LIABILITY
LIABILITY AND OR
ACCRUED
-------------------------------------------------------------------------------------------------
1. WITHHOLDING** $0.00 $468.91 $468.91 $0.00
-------------------------------------------------------------------------------------------------
2. FICA - EMPLOYEE** $0.00 $269.53 $269.53 $0.00
-------------------------------------------------------------------------------------------------
3. FICA - EMPLOYER** $0.00 $269.53 $269.53 $0.00
-------------------------------------------------------------------------------------------------
4. UNEMPLOYMENT $0.00 $0.00 $0.00 $0.00
------------------------------------------ -------------------
5. INCOME $0.00 $0.00 $0.00 $0.00
------------------------------------------ -------------------
6. OTHER (ATTACH LIST) $0.00 $0.00 $0.00 $0.00
-------------------------------------------------------------------------------------------------
7. TOTAL FEDERAL TAXES $0.00 $1,007.97 $1,007.97 $0.00
-------------------------------------------------------------------------------------------------
STATE AND LOCAL
-------------------------------------------------------------------------------------------------
8. WITHHOLDING 0 $0.00 $0.00 $0.00
---------------------------------------------------- -------------------
9. SALES 0 $0.00 $0.00 $0.00
-------------------------------------------------------------------------------------------------
10. EXCISE 0 $0.00 $0.00 $0.00
-------------------------------------------------------------------------------------------------
11. UNEMPLOYMENT 0 $0.00 $0.00 $0.00
-------------------------------------------------------------------------------------------------
12. REAL PROPERTY 0 $0.00 $0.00 $0.00
---------------------------------------------------- -------------------
13. PERSONAL PROPERTY 0 $0.00 $0.00 $0.00
---------------------------------------------------- -------------------
14. OTHER (ATTACH LIST) 0 $0.00 $0.00 $0.00
-------------------------------------------------------------------------------------------------
15. TOTAL STATE & LOCAL $0.00 $0.00 $0.00 $0.00
-------------------------------------------------------------------------------------------------
16. TOTAL TAXES $0.00 $1,007.97 $1,007.97 $0.00
-------------------------------------------------------------------------------------------------
* The beginning tax liability should represent the liability from the prior
month or, if this is the first operating report this amount should be zero.
** Attach photocopies of IRS Form 6123 or your FTD coupon and payment
receiptSchedule 9 to verify payment or deposit.
Schedule 9
----------------------------------------------------
CASE NAME: Venus Exploration, ACCRUAL BASIS - 5
Inc
----------------------------------------------------
----------------------------------------------------
CASE: 02-13109-BP-11 9/20/03
----------------------------------------------------
The debtor in possession must complete the reconciliation below for each
bank account, including all general, payroll and tax accounts, as well as all
savings and investment accounts, money market accounts, certificates of deposit,
government obligations, etc. Accounts with restricted funds should be identified
by placing an asterisk next to the account number. Attach addition sheets if
necessary.
-----------------------------------------
MONTH: August, 2003
----------------------------------
BANK RECONCILIATIONS Account #1 Account #2 Account #3
-------------------------------------------------------------------------------------------------
A. BANK Frost Frost Frost
-------------------------------------------------------------------------------------------------
B ACCOUNT NUMBER 01 0445703 01 0445606 01 0445681 TOTAL
-------------------------------------------------------------------------------------------------
C PURPOSE (TYPE): Regular Payroll Rental
-------------------------------------------------------------------------------------------------
1. BALANCE PER BANK STATEMENT 86,664.99 924.19 12,284.49 $99,873.67
-------------------------------------------------------------------------------------------------
2. ADD: TOTAL DEPOSITS NOT CREDITED 13,935.40 $13,935.40
-------------------------------------------------------------------------------------------------
SUBTRACT: OUTSTANDING
3. CHECKS (53,164.95) (11,897.45) ($65,062.40)
-------------------------------------------------------------------------------------------------
4. OTHER RECONCILING ITEMS $0.00
-------------------------------------------------------------------------------------------------
5. MONTH END BALANCE PER ITEMS $47,435.44 $924.19 $387.04 $48,746.67
-------------------------------------------------------------------------------------------------
6. NUMBER OF LAST CHECK WRITTEN 8212 105 1089
-------------------------------------------------------------------------------------------------
-----------------------------------------
INVESTMENT ACCOUNTS Account #1 Account #2 Account #3
-------------------------------------------------------------------------------------------------
BANK , ACCOUNT NAME & NUMBER DATE OF TYPE OF PURCHASE PRICE CURRENT VALUE
PURCHASE INSTRUMENT
-------------------------------------------------------------------------------------------------
7. ACCOUNT NUMBER
-------------------------------------------------------------------------------------------------
8. PURPOSE (TYPE):
-------------------------------------------------------------------------------------------------
9. BALANCE PER BANK STATEMENT
-------------------------------------------------------------------------------------------------
10. ADD: TOTAL DEPOSITS NOT CREDITED
-------------------------------------------------------------------------------------------------
11. TOTAL INVESTMENTS
-------------------------------------------------------------------------------------------------
-----------------------------------------
CASH
-------------------------------------------------------------------------------------------------
12. CURRENCY ON HAND $300.00
-------------------------------------------------------------------------------------------------
-------------------------------------------------------------------------------------------------
13. TOTAL CASH - END OF MONTH $49,046.67
-------------------------------------------------------------------------------------------------
----------------------------------------------------
CASE NAME: Venus Exploration, ACCRUAL BASIS-6
Inc
----------------------------------------------------
----------------------------------------------------
CASE NUMBER: 02-13109-BP-11 9/20/03
----------------------------------------------------
MONTH: August, 2003
----------------------------------
----------------------------------------------------
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 TO PROFESSIONALS. ALSO, FOR PAYMENTS TO INSIDERS, IDENTIFY THE TYPE OF
COMPENSATION PAID (e.g. SALARY, BONUS, COMMISSIONS, INSURANCE, HOUSING
ALLOWANCE, TRAVEL, CAR ALLOWANCE, ETC.). ATTACH ADDITIONAL SHEETS IF NECESSARY.
---------------------------------------------------------------
INSIDERS
---------------------------------------------------------------
TYPE OF AMOUNT TOTAL PAID
NAME PAYMENT PAID TO DATE
1. Ames Energy Company Schedule 10 $0 $3,638
---------------------------------------------------------------
2. John Y Ames Schedule 10 $11,728 $64,096
---------------------------------------------------------------
3. Terry Hardeman Schedule 10 $5,416 $42,571
---------------------------------------------------------------
4. E L Ames, Jr Schedule 10 $1,444 $8,665
---------------------------------------------------------------
5.
---------------------------------------------------------------
6. TOTAL PAYMENTS
TO INSIDERS $18,589 $118,970
---------------------------------------------------------------
-------------------------------------------------------------------------------------------------
PROFESSIONALS
-------------------------------------------------------------------------------------------------
DATE OF COURT TOTAL
ORDER AMOUNT AMOUNT TOTAL PAID INCURRED
AUTHORIZING
NAME PAYMENT APPROVED PAID TO DATE & UNPAID *
-------------------------------------------------------------------------------------------------
1. Ed Birkelo 4/22/2003 $3,250 $20,500 $1,300
-------------------------------------------------------------------------------------------------
2. Larry Bennett 4/22/2003 $2,955 $19,200 $705
-------------------------------------------------------------------------------------------------
3. Gloria Barrett 4/22/2003 $3,241 $20,453
-------------------------------------------------------------------------------------------------
4. Alan Bailey 4/22/2003 $9,680
-------------------------------------------------------------------------------------------------
5.
-------------------------------------------------------------------------------------------------
6. TOTAL PAYMENTS
TO PROFESSIONALS $9,446 $69,833 $2,005
-------------------------------------------------------------------------------------------------
* INCLUDE ALL FEES INCURRED, BOTH APPROVED AND UNAPPROVED
------------------------------------------------------------------------------
POSTPETITION STATUS OF SECURED NOTES, LEASES PAYABLE AND ADEQUATE
PROTECTION PAYMENTS
------------------------------------------------------------------------------
------------------------------------------------------------------------------
NAME OF CREDITOR SCHEDULEDAMOUNTS
MONTHLY PAID TOTAL
PAYMENTS DURING UNPAID
DUE MONTH POSTPETITION
-------------------------------------------------------------------------------------------------
1. Frost Bank $13,979 $13,979 $0
------------------------------------------------------------------------------
2. North Frost Center $4,000 $4,000 $0
------------------------------------------------------------------------------
3. Alamo Leasing $1,999 $1,999 $0
------------------------------------------------------------------------------
4. Manifest Funding $1,596 $1,596 $0
------------------------------------------------------------------------------
5. GE Capital $279 $279 $0
------------------------------------------------------------------------------
6. TOTAL $21,853 $21,853 $0
------------------------------------------------------------------------------
----------------------------------------------------------------
CASE NAME: Venus Exploration, ACCRUAL BASIS-7
Inc
----------------------------------------------------------------
----------------------------------------------------------------
CASE NUMBER: 02-13109-BP-11 9/20/03
----------------------------------------------------------------
MONTH: August, 2003
-------------------
-----------------------------------------
QUESTIONNAIRE
-------------------------------------------------------------------------------------------------
YES No
-------------------------------------------------------------------------------------------------
1. HAVE ANY ASSETS BEEN SOLD OR TRANSFERRED OUTSIDE
THE NORMAL COURSE OF BUSINESS THIS Schedule 11 X
REPORTING PERIOD?
-------------------------------------------------------------------------------------------------
2. HAVE ANY FUNDS BEEN DISBURSED FROM ANY ACCOUNT
OTHER THAN A DEBTOR IN POSSESSION ACCOUNT? X
-------------------------------------------------------------------------------------------------
3. ARE ANY POSTPETITION RECEIVABLES (ACCOUNTS, NOTES, OR
LOANS) DUE FROM RELATED PARTIES? X
-------------------------------------------------------------------------------------------------
4. HAVE ANY PAYMENTS BEEN MADE ON PREPETITION LIABILITIES
THIS REPORTING PERIOD? X
-------------------------------------------------------------------------------------------------
5. HAVE ANY POSTPETITION LOANS BEEN RECEIVED BY THE
DEBTOR FROM ANY PARTY? X
-------------------------------------------------------------------------------------------------
6. ARE ANY POSTPETITION PAYROLL TAXES PAST DUE? X
-------------------------------------------------------------------------------------------------
7. ARE ANY POSTPETITION STATE OR FEDERAL INCOME TAXES
PAST DUE? X
-------------------------------------------------------------------------------------------------
8. ARE ANY POSTPETITION REAL ESTATE TAXES PAST DUE? X
-------------------------------------------------------------------------------------------------
9. ARE ANY OTHER POSTPETITION TAXES PAST DUE? X
-------------------------------------------------------------------------------------------------
10. ARE ANY AMOUNTS OWED TO POSTPETITION CREDITORS
DELINQUENT? X
-------------------------------------------------------------------------------------------------
11. HAVE ANY PREPETITION TAXES BEEN PAID DURING THE
REPORTING PERIOD? X
-------------------------------------------------------------------------------------------------
12. ARE ANY WAGE PAYMENTS PAST DUE? X
-------------------------------------------------------------------------------------------------
IF THE ANSWER TO ANY OF THE ABOVE QUESTIONS IS "YES," PROVIDE A DETAILED
EXPLANATION OF EACH ITEM. ATTACH ADDITIONAL SHEETS IF NECESSARY.
- -----------------------------------------
INSURANCE
- -------------------------------------------------------------------------------------------------
YES
- -------------------------------------------------------------------------------------------------
1. ARE WORKER'S COMPENSATION, GENERAL LIABILITY AND OTHER
NECESSARY INSURANCE COVERAGES IN EFFECT? X
- -------------------------------------------------------------------------------------------------
2. ARE ALL PREMIUM PAYMENTS PAID CURRENT? X
- -------------------------------------------------------------------------------------------------
3. PLEASE ITEMIZE POLICIES BELOW.
- -------------------------------------------------------------------------------------------------
IF THE ANSWER TO ANY OF THE ABOVE QUESTIONS IS "NO," OR IF ANY POLICIES
HAVE BEEN CANCELLED OR NOT RENEWED DURING THIS REPORTING PERIOD, PROVIDE AN
EXPLANATION BELOW. ATTACH ADDITIONAL SHEETS IF NECESSARY.
- -------------------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------------------------
INSTALLMENT PAYMENTS
- -------------------------------------------------------------------------------------------------
TYPE OF PAYMENT AMT
POLICY CARRIER PERIOD COVERED & FREQUENCY
- ------------------------------------------------------------------------------
Crime Policy Hartford Causality 7/1/03 - 6/30/06 178.33 per month
- -------------------------------------------------------------------------------------------------
Auto Central Mutual
Insurance Co 10/1/02 - 9/30/03 420.97 / Month
- -------------------------------------------------------------------------------------------------
Commercial Fire Central Insurance Co 10/1/02 - 9/30/03 Paid Up
- -------------------------------------------------------------------------------------------------
Control of Well and St Paul Surplus Line
Liability Ins Co 8/1/02 - 7/31/03 * Paid Up
- -------------------------------------------------------------------------------------------------
Umbrella St Paul Surplus Line
Ins Co 8/1/02 - 7/31/03 * Paid Up
- -------------------------------------------------------------------------------------------------
Workman Compensation Texas Mutual 6/1/03 - 5/31/04 Paid Up
- -------------------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------------------------
* Insurance binders have been issued pending the placement of new policies.
Note 1
- ------------------------------
An involuntary petition of bankruptcy was filed against Venus Exploration,
Inc on October 9, 2002 and Venus' response to such petition was filed October
31, 2002. Venus subsequently filed a "Notice of Consent to Entry of Order of
Relief" on February 26, 2003. On February 27, 2003 the Court entered an order
for relief under Chapter 11 of the Bankruptcy Code.
Note 2
- ------------------------------
Venus maintains it books and accounting records on the accrual method of
accounting, and accordingly recognizes income in the month oil and gas is
produced. The income is not reported to Venus and payment is not received for
two months after production. As of the date of this report, the production for
August was not known. We, therefore, accrued an estimated amount of income based
on historical production. Also, all expense amounts for well operations were not
available at the time of this report and certain estimates were made.
The difference between the year to date accrual for the MOR and the year to
date actual is an adjustment to retained earnings.
Schedule 1 - Other Assets
- ------------------------------
August
-----------------------
Utility Deposit 6,545.00
-----------------------
6,545.00
-----------------------
Schedule 2 - Other Prepetition Liabilities
- -----------------------------------------------------
August
-----------------------
Rent Deposit 20,477.92
Deferred Federal Income Tax 1,475.00
Obligations Under Capital Lease 13,555.61
-----------------------
35,508.53
-----------------------
Schedule 3 - General and Administrative Expenses
- ------------------------------------------------------
Salaries 3,631.25
Payroll taxes 269.53
Misc. employee expense 2,509.69
Auto expense 3,123.17
Supplies 2,234.21
Bank fees 244.62
Legal & accounting serv. 8,926.88
Consultants 15,649.35
Rent 3,749.88
Travel & entertainment 179.07
Insurance 2,220.42
General Taxes
Telephone 1,345.45
Postage 80.73
Dues, subs & pubs 30.00
Bankruptcy Expense 282.74
Other G&A 1,704.69
Corporate expenses 411.00
Overhead/Fees (10,528.70)
-----------------------
Total 36,063.98
Less Amount reported on line 12 - Rent (3,749.88)
Less Amount reported on line 24 & 25
Reorganization
Expenses (282.74)
-----------------------
Amount reported on line 11 32,031.36
=======================
Schedule 4 - Other Operating Expenses
- -----------------------------------------------------
Production Taxes 13,821.33
Lease Operating Expense 65,937.65
Geological and Geophysical - Delay Rental 19,062.15
Overhead 2,682.00
Workover 5,841.74
-----------------------
107,344.87
=======================
Schedule 5 - Non-Operating Income
- -----------------------------------------------------
Interest Income 995.12
Misc Income 150.00
Gain on Sale of Nome Field Schedule 16 322,057.63
-----------------------
323,202.75
=======================
Schedule 6 - Other Reorganization Expenses
- -----------------------------------------------------
Deposition Transcript 259.00
Fed EX 23.74
-----------------------
282.74
=======================
Schedule 7 - Other Non-Operating Receipts
- ------------------------------------------
Delay Rental Collected from Partner 20,850.75
Expense Reimbursement 1,138.47
------------
21,989.22
============
Schedule 8 - Other Operating Disbursements
- ------------------------------------------
As stated in Note 2, Venus maintains its books and records on the accrual
method of accounting. As such, each expense is charged to its proper account as
it is incurred, and payment is made when such payment is due. The amount shown
on Line 25 is the total amount paid during August, except payroll and taxes
which are shown on Lines 12 and 13.
Schedule 9 - Note Re: Payroll Tax Payments
- ------------------------------------------
Payroll taxes are paid by payroll preparation company, ADP.
Schedule 10 - Payments to Insiders
- ------------------------------------------
Current Month
---------------------
Fee Health Ins Auto Total
----------------------------------------------------------------
Ames Energy 0.00 0.00
John Ames 9,629.66 1,077.13 1,021.30 11,728.09
Terry Hardeman 5,416.44 5,416.44
E L Ames, Jr 466.17 978.00 1,444.17
----------------------------------------------------------------
15,046.10 1,543.30 1,999.30 18,588.70
----------------------------------------------------------------
Total to Date
---------------------
Ames Energy 3,637.50 3,637.50
John Ames 51,886.69 6,462.78 5,746.30 64,095.77
Terry Hardeman 42,571.44 42,571.44
E L Ames, Jr 2,797.02 5,868.00 8,665.02
----------------------------------------------------------------
98,095.63 9,259.80 11,614.30 118,969.73
----------------------------------------------------------------
Schedule 11 - Sale of Assets
- ------------------------------
On August 29, Venus sold its interest in the Nome Field, pursuant to Court
permission. - See Schedule 16.
Schedule 12 - Interest Expense
- ------------------------------
Central Insurance
Company 6.00
Frost Bank 14,165.39
------------
14,171.39
------------
Note: Effective July 1, 2003, Frost Bank began charging the default rate of
interest of 11 % on the loan balance of 1,500,000 rather than the normal rate of
6.25%. Currently a restricted cash balance of 1,948,798 is on deposit at Frost
bank. (Sch 17) On August 21, 2003 a hearing was held to determine to whom the
restricted cash should be paid. It is the company's position this cash will be
paid to Frost Bank as payment on the loan balance; however, the Court has not
yet rendered an opinion.
Schedule 13 - Cash Receipts and Disbursements
- -----------------------------------------------------
The cash balance decreased 6,623 during the month. Oil and gas proceeds
decreased 2,994 which was caused mostly by more operating costs being netted, or
withheld, by operators. The net proceeds for the month increased 4,809 but the
amount withheld by the operators increased 7,803. Non-Operating receipts
decreased 46,709. This was mostly due to Utah tax refund in July (26,822), and a
decrease in Delay Rental payments received from partners of 6,304. Also, there
was a decrease in expense reimbursement of 3,360. In July there were one time
receipts of 2,528 from Bommer Engineering for prior months overhead payments and
7,695 realized on the closing of certain bank accounts.
Disbursements decreased 57,706. Delay rental payments were 42,226 in July
and 38,248 in August; a decrease of 3,978. (Venus pays 100% of the delay rentals
and is reimbursed by its partners for their share) Also a workover charge of
24,205 was paid during July. A payment of 17,776 was made to an operator in
July, Flying J, for lease operating expense and in August they netted the
expense against our revenue and therefore no payment was necessary. The balance
of the increase, 11,747, is within the normal fluctuation of activity.
Schedule 14 - Revenue
- ------------------------------
Revenue increased 7,249 from July.
Schedule 15 - Other Non-operating Expense
- ------------------------------------------
Payment to ECS, Investment Banker 10,000.00
==========================================
Schedule 16 - Sale of Nome
Field
- ------------------------------
Gross Sales Proceeds 440,000.00
Less Commission (18,946.40)
------------------------------------------
Net Proceeds 421,053.60
Cost of Asset Sold 160,525.97
Accumulated Depletion and Depreciation (61,530.00)
-----------
Net Book Value 98,995.97
------------------------------------------
Gain on Sale 322,057.63
==========================================
Schedule 17 - Restricted Cash
- ------------------------------
Balance at Beginning of
Month 1,519,656.90
Interest Earned 995.12
Proceeds from Sale of Nome 440,000.00
Commission Paid * (11,853.60)
------------------------------------------
Balance at End of Month 1,948,798.42
==========================================
* In accordance with Court approval, commission paid was in the form of a
bonus to two employees. In September, the balance of the commission of
7092.80 will be paid in the form of tax deposits.
Total Commission ( Schedule 16) 18,946.40
Amount paid in August 11,853.60
------------------------------------------
Balance to be Paid in September 7,092.80
==========================================