Exhibit 99.1
--------------
--------------------------------------------------------
CASE NAME: Venus Exploration, Inc
--------------------------------------------------------
--------------------------------------------------------
CASE: 02-13109-BP-11
--------------------------------------------------------
ACCRUAL BASIS
--------------------------------------------------------
JUDGE: Bill Parker 2/20/04
--------------------------------------------------------
UNITED STATES BANKRUPTCY COURT
EASTERN DISTRICT OF TEXAS
MONTHLY OPERATING REPORTS
MONTH ENDING: January, 2004
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 (ACCRUAL BASIS-1 THROUGH ACCRUAL 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
2/20/2004
PREPARER:
/s/ TERRY F. HARDEMAN Chief Accounting Officer
---------------------------- --------------------------
ORIGINAL SIGNATURE OF PREPARER TITLE
Terry F. Hardeman
----------------------------
PRINTED NAME OF PREPARER DATE
2/20/2004
--------------------------------------------------------
CASE NAME: Venus Exploration, Inc ACCRUAL BASIS-1
--------------------------------------------------------
--------------------------------------------------------
CASE: 02-13109-BP-11 2/20/04
--------------------------------------------------------
------------------------------------------------------------------------------------------------------
COMPARATIVE BALANCE SHEET
------------------------------------------------------------------------------------------------------
SCHEDULE MONTH MONTH MONTH
----------------------------------------------
ASSETS AMOUNT Nov., 2003 Dec., 2003 Jan., 2004
------------------------------------------------------------------------------------------------------
1. UNRESTRICTED CASH $70,771.87 $49,258.06 $69,653.95
------------------------------------------------------------------------------------------------------
2. RESTRICTED CASH Schedule 15 $1,945,216.44 $1,946,370.91 $1,947,522.90
------------------------------------------------------------------------------------------------------
3. TOTAL CASH $2,015,988.31 $1,995,628.97 $2,017,176.85
------------------------------------------------------------------------------------------------------
4. ACCOUNTS RECEIVABLE, NET $287,124.63 $271,457.66 $286,247.40
------------------------------------------------------------------------------------------------------
5. INVENTORY
------------------------------------------------------------------------------------------------------
6. NOTES RECEIVABLE
------------------------------------------------------------------------------------------------------
7. PREPAID EXPENSES Schedule 16 $197,073.94 $199,015.75 $196,853.47
------------------------------------------------------------------------------------------------------
8. OTHER (ATTACH LIST)
------------------------------------------------------------------------------------------------------
9. TOTAL CURRENT ASSETS $2,500,186.88 $2,466,102.38 $2,500,277.72
------------------------------------------------------------------------------------------------------
10. PROPERTY, PLANT, & EQUIPMENT $5,760,277.71 $5,760,277.71 $5,762,068.17
------------------------------------------------------------------------------------------------------
11. LESS: ACCUMULATED DEPRECIATION/DEPLETION ($4,020,545.99)($4,036,474.87) ($4,052,284.25)
------------------------------------------------------------------------------------------------------
12. NET PROPERTY, PLANT & EQUIPMENT $1,739,731.72 $1,723,802.84 $1,709,783.92
------------------------------------------------------------------------------------------------------
13. DUE FROM INSIDERS $9,381.45 $6,822.75 $7,844.30
------------------------------------------------------------------------------------------------------
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 $4,255,845.05 $4,203,272.97 $4,224,450.94
------------------------------------------------------------------------------------------------------
POSTPETITION LIABILITIES
------------------------------------------------------------------------------------------------------
17. ACCOUNTS PAYABLE $72,956.84 $96,818.40 $74,682.83
------------------------------------------------------------------------------------------------------
18. TAXES PAYABLE
------------------------------------------------------------------------------------------------------
19. NOTES PAYABLE Note 3 $125,000.00 $125,000.00 $125,000.00
------------------------------------------------------------------------------------------------------
20. PROFESSIONAL FEES $277,832.26 $277,832.26 $277,832.26
------------------------------------------------------------------------------------------------------
21. SECURED DEBT
------------------------------------------------------------------------------------------------------
22. OTHER (ATTACH LIST) Accrued Payables $98,849.96 $55,868.95 $75,677.41
------------------------------------------------------------------------------------------------------
23. TOTAL POSTPETITION LIABILITIES $574,639.06 $555,519.61 $553,192.50
------------------------------------------------------------------------------------------------------
PREPETITION LIABILITIES
------------------------------------------------------------------------------------------------------
24. SECURED DEBT $1,502,673.97 $1,502,673.97 $1,502,673.97
------------------------------------------------------------------------------------------------------
25. PRIORITY DEBT
------------------------------------------------------------------------------------------------------
26. UNSECURED DEBT $6,049,477.51 $6,049,477.51 $6,049,477.51
------------------------------------------------------------------------------------------------------
27. OTHER (ATTACH LIST) Schedule 2 $30,720.17 $29,124.05 $27,527.94
------------------------------------------------------------------------------------------------------
28. TOTAL PREPETITION LIABILITIES $7,582,871.65 $7,581,275.53 $7,579,679.42
------------------------------------------------------------------------------------------------------
29. TOTAL LIABILITIES $8,157,510.71 $8,136,795.14 $8,132,871.92
------------------------------------------------------------------------------------------------------
EQUITY
------------------------------------------------------------------------------------------------------
30. PREPETITION OWNERS' EQUITY ($3,752,128.04)($3,752,128.04) ($3,752,128.04)
------------------------------------------------------------------------------------------------------
31. POSTPETITION CUMULATIVE PROFIT OR (LOSS) ($20,541.80) ($14,370.63) ($13,487.77)
------------------------------------------------------------------------------------------------------
DIRECT CHARGES TO EQUITY Note 2
32. (ATTACHMENT EXPLANATION) ($128,995.82) ($167,023.50) ($142,805.17)
------------------------------------------------------------------------------------------------------
33. TOTAL EQUITY ($3,901,665.66)($3,933,522.17) ($3,908,420.98)
------------------------------------------------------------------------------------------------------
34. TOTAL LIABILITIES & OWNERS' EQUITY $4,255,845.05 $4,203,272.97 $4,224,450.94
------------------------------------------------------------------------------------------------------
$0.00 $0.00 $0.00
- --------------------------------------------------------------------------------------------------------
---------------------------------------------------------
CASE NAME: Venus Exploration, Inc ACCRUAL BASIS-2
---------------------------------------------------------
---------------------------------------------------------
CASE: 02-13109-BP-11 2/20/04
---------------------------------------------------------
--------------------------------------------
INCOME STATEMENT
-----------------------------------------------------------------------------------------------
MONTH MONTH MONTH QUARTER
---------------------------------------------------
REVENUES Nov., 2003 Dec., 2003 Jan., 2004 TOTAL
-----------------------------------------------------------------------------------------------
1. GROSS REVENUES Note 2 $135,349.18 $128,912.08 $140,542.65 $404,803.91
-----------------------------------------------------------------------------------------------
2. LESS: RETURNS & DISCOUNTS
-----------------------------------------------------------------------------------------------
3. NET REVENUE Schedule 13 $135,349.18 $128,912.08 $140,542.65 $404,803.91
-----------------------------------------------------------------------------------------------
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 $135,349.18 $128,912.08 $140,542.65 $404,803.91
-----------------------------------------------------------------------------------------------
OPERATING EXPENSES
-----------------------------------------------------------------------------------------------
OFFICER / INSIDER
9. COMPENSATION $0.00 $0.00 $0.00 $0.00
-----------------------------------------------------------------------------------------------
10. SELLING & MARKETING
-----------------------------------------------------------------------------------------------
11. GENERAL & ADMINISTRATIVE Schedule 3 $32,447.35 $32,059.58 $35,513.42 $100,020.35
-----------------------------------------------------------------------------------------------
12. RENT & LEASE $3,749.88 $3,749.88 $3,749.88 $11,249.64
-----------------------------------------------------------------------------------------------
13. OTHER (ATTACH LIST) Schedule 4 $65,593.23 $57,339.89 $69,485.18 $192,418.30
-----------------------------------------------------------------------------------------------
14. TOTAL OPERATING EXPENSES $101,790.46 $93,149.35 $108,748.48 $303,688.29
-----------------------------------------------------------------------------------------------
INCOME BEFORE NON-OPERATING INCOME &
15. EXPENSE $33,558.72 $35,762.73 $31,794.17 $101,115.62
-----------------------------------------------------------------------------------------------
OTHER INCOME & EXPENSE
-----------------------------------------------------------------------------------------------
NON-OPERATING INCOME (ATT. Schedule 5
16. LIST) $1,116.52 $1,183.51 $1,259.53 $3,559.56
-----------------------------------------------------------------------------------------------
NON-OPERATING EXPENSE (ATT.
17. LIST)
-----------------------------------------------------------------------------------------------
18. INTEREST EXPENSE Schedule 11 $14,385.53 $14,846.19 $14,861.46 $44,093.18
-----------------------------------------------------------------------------------------------
19. DEPRECIATION / DEPLETION $16,476.15 $15,928.88 $15,809.38 $48,214.41
-----------------------------------------------------------------------------------------------
20. AMORTIZATION $0.00
-----------------------------------------------------------------------------------------------
21. OTHER (ATTACH LIST) $0.00
-----------------------------------------------------------------------------------------------
22. NET OTHER INCOME & EXPENSES $29,745.16 $29,591.56 $29,411.31 $88,748.03
-----------------------------------------------------------------------------------------------
REORGANIZATION EXPENSES
-----------------------------------------------------------------------------------------------
23. PROFESSIONAL FEES Schedule 14 $277,832.26 $277,832.26
-----------------------------------------------------------------------------------------------
24. U. S. TRUSTEE FEES $1,500.00 $1,500.00
-----------------------------------------------------------------------------------------------
25. OTHER (ATTACH LIST) Schedule 6 $0.00 $0.00 $0.00 $0.00
-----------------------------------------------------------------------------------------------
TOTAL REORGANIZATION
26. EXPENSES $277,832.26 $0.00 $1,500.00 $279,332.26
-----------------------------------------------------------------------------------------------
27. INCOME TAX
-----------------------------------------------------------------------------------------------
28. NET PROFIT (LOSS) ($274,018.70) $6,171.17 $882.86 ($266,964.67)
-----------------------------------------------------------------------------------------------
--------------------------------------------------------
CASE NAME: Venus Exploration, Inc ACCRUAL BASIS-3
--------------------------------------------------------
--------------------------------------------------------
CASE: 02-13109-BP-11 2/20/04
--------------------------------------------------------
-----------------------------------------------------------------------------------------------
CASH RECEIPTS AND MONTH MONTH MONTH QUARTER
---------------------------------------------------
DISBURSEMENTS Nov., 2003 Dec., 2003 Jan., 2004 TOTAL
-----------------------------------------------------------------------------------------------
1. CASH - BEGINNING OF MONTH $75,453.92 $70,771.87 $49,258.06 $75,453.92
-----------------------------------------------------------------------------------------------
RECEIPTS FROM OPERATIONS
-----------------------------------------------------------------------------------------------
2. CASH SALES $50,885.67 $50,110.27 $104,645.47 $205,641.41
-----------------------------------------------------------------------------------------------
COLLECTIONS OF ACCOUNTS
RECEIVABLE
-----------------------------------------------------------------------------------------------
3. PREPETITON $0.00
-----------------------------------------------------------------------------------------------
4. POSTPETITION $1,501.46 $8,488.49 $2,804.80 $12,794.75
-----------------------------------------------------------------------------------------------
5. TOTAL OPERATING RECEIPTS $52,387.13 $58,598.76 $107,450.27 $218,436.16
-----------------------------------------------------------------------------------------------
NON-OPERATING RECEIPTS
-----------------------------------------------------------------------------------------------
LOANS & ADVANCES (ATTACH
6. LIST)
-----------------------------------------------------------------------------------------------
7. SALE OF ASSETS
-----------------------------------------------------------------------------------------------
8. OTHER (ATTACH LIST) Schedule 7 $458.75 $279.16 $3,018.75 $3,756.66
-----------------------------------------------------------------------------------------------
TOTAL NON-OPERATING
9. RECEIPTS $458.75 $279.16 $3,018.75 $3,756.66
-----------------------------------------------------------------------------------------------
10. TOTAL RECEIPTS $52,845.88 $58,877.92 $110,469.02 $222,192.82
-----------------------------------------------------------------------------------------------
11. TOTAL CASH AVAILABLE $128,299.80 $129,649.79 $159,727.08 $297,646.74
-----------------------------------------------------------------------------------------------
OPERATING DISBURSEMENTS
-----------------------------------------------------------------------------------------------
12. NET PAYROLL $3,100.40 $2,886.33 $2,886.33 $8,873.06
-----------------------------------------------------------------------------------------------
13. PAYROLL TAXES PAID $1,131.59 $2,948.05 $1,373.84 $5,453.48
-----------------------------------------------------------------------------------------------
SALES, USE & OTHER TAXES
14. 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 $53,295.94 $74,557.35 $85,812.96 $213,666.25
-----------------------------------------------------------------------------------------------
TOTAL OPERATING
26. DISBURSEMENTS $57,527.93 $80,391.73 $90,073.13 $227,992.79
-----------------------------------------------------------------------------------------------
REORGANIZATION EXPENSES
-----------------------------------------------------------------------------------------------
27. PROFESSIONAL FEES
-----------------------------------------------------------------------------------------------
28. U.S. TRUSTEE FEES
-----------------------------------------------------------------------------------------------
29. OTHER (ATTACH LIST)
-----------------------------------------------------------------------------------------------
TOTAL REORGANIZATION
30. EXPENSES
-----------------------------------------------------------------------------------------------
31. TOTAL DISBURSEMENTS $57,527.93 $80,391.73 $90,073.13 $227,992.79
-----------------------------------------------------------------------------------------------
32. NET CASH FLOW ($4,682.05) ($21,513.81) $20,395.89 ($5,799.97)
-----------------------------------------------------------------------------------------------
33. CASH - END OF MONTH Schedule 12 $70,771.87 $49,258.06 $69,653.95 $69,653.95
-----------------------------------------------------------------------------------------------
--------------------------------------------------------
CASE NAME: Venus Exploration, Inc ACCRUAL BASIS - 4
--------------------------------------------------------
--------------------------------------------------------
CASE: 02-13109-BP-11 2/20/04
--------------------------------------------------------
------------------------------------------------------------------------------------------------
SCHEDULE MONTH MONTH MONTH
----------------------------------------
ACCOUNTS RECEIVABLE AGING AMOUNT Nov., 2003 Dec., 2003 Jan., 2004
------------------------------------------------------------------------------------------------
1. 0 - 30 $136,135.92 $125,780.89 $134,856.10
------------------------------------------------------------------------------------------------
2. 31 - 60 $8,433.96 $413.76 $5,862.01
------------------------------------------------------------------------------------------------
3. 61 - 90 $13,637.19 $3,687.27 $0.44
------------------------------------------------------------------------------------------------
4. 91 + $200,540.27 $213,198.45 $217,151.56
------------------------------------------------------------------------------------------------
5. TOTAL ACCOUNTS RECEIVABLE $358,747.34 $343,080.37 $357,870.11
------------------------------------------------------------------------------------------------
AMOUNT CONSIDERED
6. UNCOLLECTABLE $71,622.71 $71,622.71 $71,622.71
------------------------------------------------------------------------------------------------
7. ACCOUNTS RECEIVABLE, NET $287,124.63 $271,457.66 $286,247.40
------------------------------------------------------------------------------------------------
--------------------------------------------------------
MONTH: Jan., 2004
---------------------------
AGING OF POSTPETITON TAXES AND PAYABLES
------------------------------------------------------------------------------------------------
TAXES PAYABLE 0 - 30 DAYS 31 - 60 61 - 90 DAYS 91 + DAYS TOTAL
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: Jan., 2004
---------------------------
STATUS OF POSTPETITION TAXES
------------------------------------------------------------------------------------------------
FEDERAL BEGINNING AMOUNT AMOUNT PAID ENDING TAX
TAX WITHHELD AND LIABILITY
LIABILITY OR ACCRUED
------------------------------------------------------------------------------------------------
1. WITHHOLDING** $0.00 $488.60 $488.60 $0.00
------------------------------------------------------------------------------------------------
2. FICA - EMPLOYEE** $0.00 $279.57 $279.57 $0.00
------------------------------------------------------------------------------------------------
3. FICA - EMPLOYER** $0.00 $279.57 $279.57 $0.00
------------------------------------------------------------------------------------------------
4. UNEMPLOYMENT $0.00 $29.24 $29.24 $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 $1,076.98 $1,076.98 $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 $296.86 $296.86 $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 $296.86 $296.86 $0.00
------------------------------------------------------------------------------------------------
16. TOTAL TAXES $0.00 $1,373.84 $1,373.84 $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 Schedule 9
payment receipt to verify payment or deposit.
--------------------------------------------------------
CASE NAME: Venus Exploration, Inc ACCRUAL BASIS - 5
--------------------------------------------------------
--------------------------------------------------------
CASE: 02-13109-BP-11 2/20/04
--------------------------------------------------------
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: Jan., 2004
------------------------------
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 87,448.49 227.63 206.65 $87,882.77
---------------------------------------------------------------------------------------------------
2. ADD: TOTAL DEPOSITS NOT CREDITED 6,597.77 $6,597.77
---------------------------------------------------------------------------------------------------
SUBTRACT: OUTSTANDING
3. CHECKS (25,109.59) (17.00) ($25,126.59)
---------------------------------------------------------------------------------------------------
4. OTHER RECONCILING ITEMS $0.00
---------------------------------------------------------------------------------------------------
5. MONTH END BALANCE PER ITEMS $68,936.67 $227.63 $189.65 $69,353.95
---------------------------------------------------------------------------------------------------
6. NUMBER OF LAST CHECK WRITTEN 8738 105 1098
---------------------------------------------------------------------------------------------------
--------------------------------------------
INVESTMENT ACCOUNTS Account #1 Account #2 Account #3
---------------------------------------------------------------------------------------------------
BANK , ACCOUNT NAME & NUMBER DATE OF TYPE OF PURCHASE CURRENT VALUE
PURCHASE INSTRUMENT PRICE
---------------------------------------------------------------------------------------------------
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 $69,653.95
---------------------------------------------------------------------------------------------------
--------------------------------------------------------
CASE NAME: Venus Exploration, Inc ACCRUAL BASIS-6
--------------------------------------------------------
--------------------------------------------------------
CASE NUMBER: 02-13109-BP-11 2/20/04
--------------------------------------------------------
MONTH: Jan., 2004
------------------------------
--------------------------------------------------------
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 $3,638
---------------------------------------------------------------------
2. John Y Ames Schedule 10 $14,622 $123,186
---------------------------------------------------------------------
3. Terry Hardeman Schedule 10 $7,275 $67,966
---------------------------------------------------------------------
4. E L Ames, Jr Schedule 10 $1,444 $16,113
---------------------------------------------------------------------
5.
---------------------------------------------------------------------
6. TOTAL PAYMENTS
TO INSIDERS $23,341 $210,903
---------------------------------------------------------------------
---------------------------------------------------------------------------------------------------
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 $3,450 $32,350 $1,050
---------------------------------------------------------------------------------------------------
2. Larry Bennett 4/22/2003 $29,700
---------------------------------------------------------------------------------------------------
3. Gloria Barrett 4/22/2003 $3,673 $38,320
---------------------------------------------------------------------------------------------------
4. Alan Bailey 4/22/2003 $10,615
---------------------------------------------------------------------------------------------------
5.
---------------------------------------------------------------------------------------------------
6. TOTAL PAYMENTS
TO PROFESSIONALS $7,123 $110,985 $1,050
---------------------------------------------------------------------------------------------------
* INCLUDE ALL FEES INCURRED, BOTH APPROVED AND UNAPPROVED
-----------------------------------------------------------------------------------
POSTPETITION STATUS OF SECURED NOTES, LEASES PAYABLE AND ADEQUATE
PROTECTION PAYMENTS
-----------------------------------------------------------------------------------
-----------------------------------------------------------------------------------
NAME OF CREDITOR SCHEDULED AMOUNTS
MONTHLY PAID TOTAL
PAYMENTS DURING UNPAID
DUE MONTH POSTPETITION
---------------------------------------------------------------------------------------------------
1. Frost Bank - Schedule 11 $8,049 $8,049 $0
-----------------------------------------------------------------------------------
2. North Frost Center $4,000 $4,000 $0
-----------------------------------------------------------------------------------
3. Alamo Leasing $1,963 $1,963 $0
-----------------------------------------------------------------------------------
4. Manifest Funding $1,596 $1,596 $0
-----------------------------------------------------------------------------------
5. GE Capital $279 $279 $0
-----------------------------------------------------------------------------------
6. TOTAL $15,887 $15,887 $0
-----------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------
---------------------------------------------------------------------
CASE NAME: Venus Exploration, Inc ACCRUAL BASIS-7
---------------------------------------------------------------------
---------------------------------------------------------------------
CASE NUMBER: 02-13109-BP-11 2/20/04
---------------------------------------------------------------------
MONTH: Jan., 2004
----------------
--------------------------------------------
QUESTIONNAIRE
---------------------------------------------------------------------------------------------------
YES No
---------------------------------------------------------------------------------------------------
1. HAVE ANY ASSETS BEEN SOLD OR TRANSFERRED OUTSIDE
THE NORMAL COURSE OF BUSINESS THIS REPORTING PERIOD? X
---------------------------------------------------------------------------------------------------
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? Note 3 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 Chubb 10/1/03 - 3/31/04 Paid up
--------------------------------------------------------------------------------------------
Auto Catto and Paid up
Catto 10/1/03 - 3/31/04
--------------------------------------------------------------------------------------------
Commercial Fire Central Insurance Co 10/1/03 - 9/30/04 Paid Up
--------------------------------------------------------------------------------------------
General Liability St Paul Surplus Line Ins Paid Up
Co 8/1/03 - 7/31/04
--------------------------------------------------------------------------------------------
Workman Compensation Texas Mutual 6/1/03 - 5/31/04 Paid Up
--------------------------------------------------------------------------------------------
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 approximately two months after production. As of the date of this
report, the production for January was not known. We, therefore, accrued
an estomated 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.
Note 3
- ------
In accordance with an Order Granting Venus Exploration Inc.'s Motion to
Obtain Unsecured Credit Allowable as an Administration Expense Pursuant to
11 USC 364(b), Venus obtained a loan of $125,000 to purchase Directors'
and Officers' insurance for the period May 21, 2003 until May 21, 2004.
The prepaid insurance cost is included in Prepaid Expenses on Line 7 of
the Balance Sheet, the Note Payable is shown on Line 19, and accrued
interest payable is included on Line 22. Accrued interest expense is
included on Line 18 of the Income Statement.
Payment of principal and interest on the note is subject to subordination
in accordance with the above referenced Order.
Schedule 1 - Other Assets
- -------------------------------
Utility Deposit 6,545.00
-------------
6,545.00
-------------
Schedule 2 - Other Prepetition Liabilities
- --------------------------------------------
Rent Deposit 20,477.92
Deferred Federal Income Tax 1,475.00
Obligations Under Capital
Lease 5,575.02
-------------
27,527.94
-------------
Schedule 3 - General and Administrative
Expenses
- --------------------------------------------
Salaries 3,762.50
Payroll taxes 605.67
Misc. employee expense 2,776.50
Auto expense 3,994.28
Supplies 1,028.04
Bank fees 89.52
Legal & accounting serv. 6,837.85
Consultants 17,630.35
Rent 3,749.88
Travel & entertainment 2,062.71
Insurance 822.34
General Taxes 2,068.98
Telephone 1,556.88
Postage 481.06
Professional Seminars
Dues, subs & pubs 40.25
Bankruptcy Expense 1,500.00
Other G&A 2,394.65
Corporate expenses 1,154.58
Overhead/Fees (11,792.74)
-------------
Total 40,763.30
Less Amount reported on line 12 - Rent (3,749.88)
Less Amount reported on line 24 & 25
Reorganization
Expenses (1,500.00)
-------------
Amount reported on line 11 35,513.42
=============
Schedule 4 - Other Operating Expenses
- --------------------------------------------
Production Taxes 10,540.60
Lease Operating Expense 54,669.46
Ad Valorem Taxes 385.33
Geological and Geophysical - Overhead 3,889.79
Workover
-------------
69,485.18
=============
Schedule 5 - Non-Operating
Income
- -------------------------------
Interest Income 1,151.99
Misc Income 107.54
-------------
1,259.53
=============
Schedule 6 - Other Reorganization Expenses
- --------------------------------------------
0.00
0.00
-------------
0.00
=============
Schedule 7 - Other Non-Operating Receipts
- --------------------------------------------
Expense Reimbursement 383.13
Overhead Collections
Received 2,528.08
Misc Income 107.54
-------------
3,018.75
=============
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 January, 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
John Ames 12,600.00 1,077.13 945.00 14,622.13
Terry Hardeman 7,275.00 7,275.00
E L Ames, Jr 466.17 978.00 1,444.17
----------------------------------------------------------------
19,875.00 1,543.30 1,923.00 23,341.30
----------------------------------------------------------------
Total to
Date
------------
Ames Energy 3,637.50 3,637.50
John Ames 100,866.70 11,848.43 10,471.30 123,186.43
Terry Hardeman 67,966.44 67,966.44
E L Ames, Jr 5,127.87 10,985.09 16,112.96
----------------------------------------------------------------
172,470.64 16,976.30 21,456.39 210,903.33
----------------------------------------------------------------
Schedule 11 - Interest Expense
- -------------------------------
D&O Insurance Loan - Note 3 690.07
Frost Bank 14,165.39
Other 6.00
-------------
14,861.46
-------------
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 1,947,522.90 is on deposit at
Frost bank. (Sch 15) 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. The Company is accruing interest expense based on the
11% rate, and making payments based on the 6.25% rate.
Schedule 12 - Cash Receipts and Disbursements
- --------------------------------------------
The cash increased 20,395.89 in January.
Schedule 13 - Revenue
- -------------------------------
Revenue increased 11,630.57 in January.
Schedule 14 - Professional Fees
- -------------------------------
To date the Court has approved the following professional fees.
The expense for these amounts was shown on line 23 of the November, 2003
Income Statement and the payable is included on line 20 of the Balance Sheet.
Pressler Petroleum Consultants, Inc 13,443.58
Leonard Pipkin 19,440.61
Plunket and Gibson 42,493.96
Cotham, Harwell, and Evans 70,044.21
Hite McNichol & Associates 68,564.60
Jason R. Searcy, P.C. 63,845.30
------------------------------------------
277,832.26
==========================================
Schedule 15 - Restricted Cash
- -------------------------------
Balance at Beginning of Month 1,946,370.91
Interest Earned 1,151.99
------------------------------------------
Balance at End of Month 1,947,522.90
==========================================
Schedule 16 - Prepaid Expenses
Prepaid General Insurance 12,421.11
Prepaid D & O Insurance - Note 3 125,000.00
Prepaid Capital Costs 53,257.12
Prepaid Maintenance and Other 6,175.24
------------------------------------------
196,853.47
==========================================