<PAGE>
Securities and Exchange Commission
Washington, D.C. 20549
Form 8-K/A
Current Report Pursuant to Section 13 or 15 (d) of the
Securities Exchange Act of 1934
Date of Report (Date of Earliest Event Reported):
February 12, 1998
-----------------
Tengasco, Inc.
(Exact name of Registrant as specified in its charter)
Commission File Number 0-20975
Tennessee 87-0267438
--------- ----------
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
603 Main Avenue, Suite 500, Knoxville, Tennessee 37902
------------------------------------------------------
(Address of Principal Executive Offices)
(423) 523-1124
--------------
(Registrant's Telephone number, including area code)
<PAGE>
Item 7. Financial Statements and Exhibits.
(a) Financial statements of businesses acquired.
Independent auditor's report, statements of revenues and direct
operating expenses and notes to financial statements of the properties acquired
by Tengasco, Inc. from AFG Energy, Inc.
(b) Pro forma financial information.
Pro forma combined statements of loss for year ended December 31, 1997
for Tengasco, Inc. and the properties acquired by Tengasco, Inc. from AFG
Energy, Inc.
(c) Exhibits.
2.1 (a) Exhibit A to Agreement dated December 18, 1997 between AFG
Energy, Inc. and Tengasco, Inc. regarding sale of assets of AFG Energy, Inc.
2
<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities and Exchange Act of
1934, the Registrant has duly caused and authorized this report to be signed on
its behalf by the undersigned.
Dated: April 13, 1998
Tengasco, Inc.
By: /s/ Robert M. Carter
---------------------------
Robert M. Carter, President
3
<PAGE>
Kansas Properties
Statements of Revenues and
Direct Operating Expenses
Years Ended December 31, 1997 and 1996
<PAGE>
Kansas Properties
Statements of Revenues and
Direct Operating Expenses
Years Ended December 31, 1997 and 1996
<PAGE>
Kansas Properties
Contents
Independent Auditors' Report 2
Financial Statements
Statements of revenues and direct 3
operating expenses
Notes to financial statements 4-7
<PAGE>
Independent Auditors' Report
Board of Directors
Tengasco, Inc.
Knoxville, Tennessee
We have audited the accompanying statements of revenues and direct operating
expenses of the properties acquired by Tengasco, Inc. from AFG Energy, Inc.
("the Kansas Properties") for the years ended December 31, 1997 and 1996. These
financial statements are the responsibility of AFG Energy, Inc. Our
responsibility is to express an opinion on the financial statements based on our
audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free of material
misstatement. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made by
management, as well as evaluating the overall presentation of the financial
statements. We believe that our audits provide a reasonable basis for our
opinion.
The accompanying financial statements were prepared on the basis discussed in
Note 1 and are for the purpose of complying with certain rules and regulations
of the Securities and Exchange Commission ("SEC") for inclusion in certain SEC
regulatory reports and filings of Tengasco, Inc. and are not intended to be a
complete presentation of the revenues and expenses of the Kansas Properties.
In our opinion, the financial statements referred to above present fairly, in
all material respects, the revenues and direct operating expenses of the Kansas
Properties for the years ended December 31, 1997 and 1996, in conformity with
generally accepted accounting principles.
BDO Seidman, LLP
Atlanta, Georgia
March 12, 1998
2
<PAGE>
Kansas Properties
Statements of Revenues and
Direct Operating Expenses
- --------------------------------------------------------------------------------
Year ended December 31, 1997 1996
- --------------------------------------------------------------------------------
Revenues
Oil $2,687,816 $2,378,882
Gas 742,513 789,613
- --------------------------------------------------------------------------------
Total revenues 3,430,329 3,168,495
Direct operating expenses (2,207,201) (1,936,272)
- --------------------------------------------------------------------------------
Revenues in excess of direct operating expenses $1,223,128 $1,232,223
- --------------------------------------------------------------------------------
See accompanying notes to financial statements.
3
<PAGE>
Kansas Properties
Notes to Financial Statements
- --------------------------------------------------------------------------------
1. Basis of Presentation Pursuant to an agreement effective December 31,
1997, Tengasco, Inc. acquired AFG Energy, Inc.'s
interest in certain producing oil and gas
properties located in the state of Kansas ("the
Kansas Properties"). The acquisition has been
accounted for as a purchase and the results of
operations for the Kansas Properties will be
included in Tengasco's results of operations
beginning January 1, 1998.
The accompanying statements of revenues and
direct operating expenses ("the Historical
Statements") were prepared from the historical
accounting records of AFG Energy, Inc. The
Historical Statements are presented using
accrual basis, successful efforts accounting for
oil and gas activities, in accordance with
generally accepted accounting principles.
Gross revenues and direct operating expenses
included herein are not necessarily
representative of future operations.
Additionally, the Historical Statements do not
include depreciation, depletion and
amortization, administrative and general
expenses, interest expense, or Federal and state
income taxes.
Complete financial statements, including a
balance sheet, are not presented as the Kansas
Properties were not maintained as a separate
business unit, and assets, liabilities or
indirect operating costs applicable to the
Kansas Properties were not segregated.
Accordingly, it is not practicable to identify
all assets, liabilities or indirect operating
costs applicable to the Kansas Properties.
2. Supplemental Oil and Estimated Quantities of Proved Oil and Gas
Gas Information Reserves (Unaudited)
(Unaudited) ------------------------------------------
The reserve information presented below is based
on the December 31, 1997 reserve report prepared
by an independent petroleum engineer. The
December 31, 1996 and 1995 information has been
computed by adjusting the December 31, 1997
reserve report for production and known
purchases.
4
<PAGE>
Kansas Properties
Notes to Financial Statements
- --------------------------------------------------------------------------------
Proved reserves are estimated quantities of
crude oil, natural gas and natural gas liquids
which geological and engineering data
demonstrate with reasonable certainty to be
recoverable in future years from known
reservoirs under existing economic and operating
conditions. Proved developed reserves are those
which are expected to be recovered through
existing wells with existing equipment and
operating methods.
Below are the net quantities of proved reserves
and proved developed reserves for the Kansas
Properties:
<TABLE>
<CAPTION>
Oil (Bbls) Gas (Mcf)
---------------------------------------------------------
<S> <C> <C> <C>
Proved reserves at December
31, 1995 1,466,489 3,439,692
Production (114,660) (432,753)
Acquisition of proved reserves 674,154 869
----------------------------------------------------------
Proved reserves at December
31, 1996 2,025,983 3,007,808
Production (141,535) (353,558)
----------------------------------------------------------
Proved reserves at December
31, 1997 1,884,448 2,654,250
----------------------------------------------------------
Proved developed producing
reserves at December
31, 1997 1,277,707 1,384,980
----------------------------------------------------------
Proved developed producing
reserves at December
31, 1996 1,419,244 1,738,539
----------------------------------------------------------
</TABLE>
Standardized Measure of Discounted Future Net
Cash Flows (Unaudited)
The Standardized Measure of Discounted Future
Net Cash Flows Relating to Proved Oil and Gas
Reserves ("the Standardized Measure") is a
disclosure requirement under Statement of
Financial Accounting Standards No. 69. The
Standardized Measure does not purport to present
the fair market value of the proved oil and gas
reserves. This would require consideration of
expected future economic and operating
conditions, which are not taken into account in
calculating the Standardized Measure.
5
<PAGE>
Kansas Properties
Notes to Financial Statements
- --------------------------------------------------------------------------------
Under the Standardized Measure, 1997 and 1996
future cash inflows were estimated by applying
December 31, 1997 and 1996 prices, respectively,
adjusted for fixed and determinable escalations,
to the estimated future production of proved
reserves. Future cash inflows for 1997 and 1996
were reduced by estimated future production,
development and dismantlement costs based on
1997 and 1996 year-end costs, respectively, to
determine pre-tax cash inflows. Future net cash
inflows were discounted using a 10% annual
discount rate to arrive at the Standardized
Measure. No deduction has been made for general
and administrative expenses, interest expense,
provisions for depreciation, depletion or
amortization, or taxes on income.
The following Standardized Measure and changes
in the Standardized Measure are based on the
reserve estimate performed as of December 31,
1997, using appropriate year-end prices and
costs.
Set forth below is the Standardized Measure
(before income taxes) relating to proved oil and
gas reserves at December 31,1997 and 1996:
<TABLE>
<CAPTION>
1997 1996
-------------------------------------------------------------------
<S> <C> <C> <C>
Future cash inflows $ 36,523,378 $ 55,344,098
Future production costs and
taxes (18,128,184) (18,854,868)
Future development costs (1,336,050) (1,855,550)
-------------------------------------------------------------------
Future net cash inflows 17,059,144 34,633,680
Discount at 10% for timing of
cash flows (6,707,755) (15,597,754)
-------------------------------------------------------------------
Standardized Measure (before
income taxes) of discounted
future net cash flows $ 10,351,389 $ 19,035,926
-------------------------------------------------------------------
</TABLE>
6
<PAGE>
Kansas Properties
Notes to Financial Statements
- --------------------------------------------------------------------------------
The Standardized Measure of discounted future
net cash flows is based on the following oil and
gas prices at December 31, 1997 and 1996:
<TABLE>
<CAPTION>
1997 1996
------------------------------------------------------------------
<S> <C> <C> <C>
Oil (per Bbl) $16.48 $22.70
Gas (Mcf) 2.06 3.11
--------------------------------------------------------------------
</TABLE>
The following table sets forth the changes in
the Standardized Measure (before income taxes)
during 1997 and 1996:
<TABLE>
<CAPTION>
1997 1996
-----------------------------------------------------------------
<S> <C> <C> <C>
Standardized Measure (before
income taxes), beginning of
year $19,035,926 $ 7,195,410
Sales, net of production costs
and taxes (1,223,128) (1,232,223)
Acquisition of proved reserves - 5,409,784
Changes in prices and
production costs (9,269,527) 6,936,079
Interest factor - accretion of
discount 1,903,593 719,541
Changes in production rates
and other (95,475) 7,335
------------------------------------------------------------------
Standardized Measure (before
income taxes), end of year $10,351,389 $19,035,926
------------------------------------------------------------------
</TABLE>
7
<PAGE>
Tengasco, Inc. and
The Kansas Properties
Pro Forma Combined Statement of Loss
Year Ended December 31, 1997
<PAGE>
Tengasco, Inc. and
The Kansas Properties
Pro Forma Combined Statement of Loss
Year Ended December 31, 1997
<PAGE>
Tengasco, Inc. and
The Kansas Properties
Contents
Financial Statement
Pro forma combined statement of loss (unaudited) 2
Notes to pro forma financial statement 3-7
<PAGE>
Tengasco, Inc. and
The Kansas Properties
Pro Forma Combined Statement of Loss (Unaudited)
Year Ended December 31, 1997
<TABLE>
<CAPTION>
Kansas Pro Forma Pro Forma
Tengasco, Inc. Properties Adjustments Combined
-----------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Revenues
Oil $ - $ 2,687,816 $ - $ 2,687,816
Gas - 742,513 - 742,513
-----------------------------------------------------------------------------------------------------------------
Total revenues - 3,430,329 - 3,430,329
-----------------------------------------------------------------------------------------------------------------
Cost and expenses
Production costs and taxes 3,748 2,207,201 - 2,210,949
Depletion, depreciation and
amortization 79,267 - 531,233 610,500
General and administrative costs 1,535,841 - 40,000 1,575,841
Interest expense 1,691,754 - 174,533 1,866,287
Public relations 395,292 - - 395,292
Legal and accounting 390,297 - - 390,297
Realized loss on sale of investments 80,677 - - 80,677
-----------------------------------------------------------------------------------------------------------------
Total costs and expenses 4,176,876 2,207,201 745,766 7,129,843
-----------------------------------------------------------------------------------------------------------------
Net income (loss) (4,176,876) 1,223,128 (745,766) (3,699,514)
-----------------------------------------------------------------------------------------------------------------
Basic and diluted loss per
common share $(0.67) $(0.60)
-----------------------------------------------------------------------------------------------------------------
</TABLE>
See accompanying notes to pro forma financial statement.
2
<PAGE>
Tengasco, Inc. and
The Kansas Properties
Notes to Pro Forma Financial Statement
(Unaudited)
- --------------------------------------------------------------------------------
The unaudited pro forma combined statement of
loss for the year ended December 31, 1997 gives
effect to the acquisition by Tengasco, Inc. of
certain producing oil and gas properties located
in the state of Kansas ("the Kansas Properties")
as if the acquisition, accounted for as a
purchase, had occurred on January 1, 1997. The
pro forma information is based on the historical
consolidated financial statements of Tengasco,
Inc. and the historical statement of revenues
and direct operating expenses of the Kansas
Properties for the year ended December 31, 1997,
after giving effect to the acquisition and the
assumptions and adjustments in the accompanying
notes to the pro forma financial statement.
The pro forma financial statement has been
prepared by Tengasco, Inc. based upon the
historical statement of revenues and direct
operating expenses of the Kansas Properties
(included elsewhere in the Form 10-K). The pro
forma financial statement may not be indicative
of the results that actually would have occurred
if the combination had been effective on the
dates indicated or which may be obtained in the
future. The pro forma financial statement should
be read in conjunction with the audited
consolidated financial statements of Tengasco,
Inc. and the audited statement of revenues and
direct operating expenses of the Kansas
Properties.
Basis of Presentation Tengasco, Inc. follows the full cost method of
accounting for oil and gas properties. Under
this method, all productive and nonproductive
costs incurred in connection with the
acquisition of, exploration for and development
of oil and gas reserves for each cost center are
capitalized. The capitalized costs of oil and
gas properties, plus estimated future
development costs relating to proved reserves
and estimated costs of plugging and abandonment,
net of estimated salvage value, are amortized on
the unit-of-production method based on total
proved reserves.
The capitalized oil and gas properties, less
accumulated depletion, depreciation and
amortization and related income taxes, are
generally limited to an amount (the ceiling
limitation) equal to the sum of: (a) the present
value of estimated future net revenues computed
by applying current prices in effect as of the
balance sheet date to estimated future
production of proved oil and gas reserves, less
estimated future expenditures (based on current
costs) to be incurred in developing and
producing the
3
<PAGE>
Tengasco, Inc. and
The Kansas Properties
Notes to Pro Forma Financial Statement
(Unaudited)
- --------------------------------------------------------------------------------
reserves using a discount factor of 10% and
assuming continuation of existing economic
conditions; and (b) the cost of investments in
unevaluated properties excluded from the costs
being amortized.
The accompanying pro forma combined statement of
loss for the year ended December 31, 1997 was
prepared using the full cost method of
accounting in conformity with generally accepted
accounting principles.
Pro Forma Adjustments The following pro forma adjustments are made to
reflect additional costs which would have been
incurred by Tengasco, Inc. had the Kansas
Properties been acquired as of January 1, 1997
and are reflected in the accompanying pro forma
combined statement of loss for the year ended
December 31, 1997:
Amount
------------------------------------------------
Additional depletion, depreciation
and amortization $531,233
Interest expense on the acquisition
note payable 174,533
Additional general and
administrative expenses 40,000
------------------------------------------------
$745,766
------------------------------------------------
Pro Forma Supplemental Oil Pro Forma Estimated Combined Quantities of
and Gas Information Proved Oil and Gas Reserves (Unaudited)
(Unaudited)
The pro forma combined reserve information
presented below is based on the December 31,
1997 reserve reports prepared by Coburn
Petroleum Engineering and Columbia Engineering,
independent petroleum engineering firms. The
January 1, 1997 information has been computed by
adjusting the December 31, 1997 reserve reports
for production and known purchases.
The following table sets forth the combined net
proved oil and gas reserves at December 31, 1997
and the pro forma changes in the combined net
proved oil and gas reserves for the year then
ended. Proved reserves are estimated quantities
of crude oil, natural gas and natural gas
liquids in which geological and
4
<PAGE>
Tengasco, Inc. and
The Kansas Properties
Notes to Pro Forma Financial Statement
(Unaudited)
- --------------------------------------------------------------------------------
engineering data demonstrate with reasonable
certainty to be recoverable in future years from
known reservoirs under existing economic and
operating conditions. The reserve information
indicated below requires substantial judgment on
the part of the reserve engineers, resulting in
estimates which are not subject to precise
determination. Accordingly, it is expected the
estimates of reserves will change as future
production and development information becomes
available and revisions in these estimates could
be significant.
<TABLE>
<CAPTION>
Oil (Bbls) Gas (Mcf)
----------------------------------------------------------------------
<S> <C> <C> <C>
Proved reserves at January 1, 1997 2,127,548 25,575,163
Discoveries and extensions 198,065 75,476
Revisions of previous estimates (101,565) (4,679,460)
Production (141,535) (353,558)
----------------------------------------------------------------------
Proved reserves at December 31, 1997 2,082,513 20,617,621
----------------------------------------------------------------------
</TABLE>
Pro Forma Standardized Measure of Discounted
Future Net Cash Flows (Unaudited)
The following table sets forth the pro forma
standardized measure of discounted future net
cash flows from the combined proved oil and gas
reserves of Tengasco, Inc. and the Kansas
Properties at December 31, 1997 as if the
acquisition of the Kansas Properties had
occurred on January 1, 1997. The standardized
measure of discounted future net cash flows does
not purport to present the fair market value of
the proved oil and gas reserves as this would
require consideration of expected future
economic and operating conditions, which are not
taken into account in the calculation.
5
<PAGE>
Tengasco, Inc. and
The Kansas Properties
Notes to Pro Forma Financial Statement
(Unaudited)
- --------------------------------------------------------------------------------
Amount
------------------------------------------------
Future cash inflows $ 87,493,504
Future production costs and taxes (21,813,667)
Future development costs (2,873,550)
Future income tax expenses (12,918,485)
------------------------------------------------
Net cash flows 49,887,802
Discount at 10% for timing of
cash flows (17,864,113)
------------------------------------------------
Discounted future net cash flows
from proved reserves $ 32,023,689
------------------------------------------------
The following table sets forth the pro forma
changes in the standardized measure of
discounted future net cash flows from combined
proved reserves during 1997:
Amount
------------------------------------------------
Balance, January 1, 1997 $44,731,424
Sales, net of production costs
and taxes (1,219,380)
Discoveries and extensions 1,984,106
Changes in prices and production
costs (22,910,339)
Revisions of quantity estimates (8,576,161)
Changes in development costs 3,882,741
Net change in income taxes 8,137,097
Interest factor - accretion of
discount 6,038,403
Changes in production rates and
other (44,202)
------------------------------------------------
Balance, December 31, 1997 $32,023,689
------------------------------------------------
Estimated future net cash flows represent an
estimate of future net revenues from the
production of proved reserves using current
sales prices, along with estimates of the
operating costs, production taxes and future
development and abandonment costs (less salvage
value) necessary to produce such reserves. The
average prices used at December 31, 1997 were
$16.53 per barrel of oil and $2.57 per mcf of
gas. No deduction has been made for depletion,
depreciation and amortization or any indirect
costs such as general corporate overhead or
interest expense.
6
<PAGE>
Tengasco, Inc. and
The Kansas Properties
Notes to Pro Forma Financial Statement
(Unaudited)
- --------------------------------------------------------------------------------
Operating costs and production taxes are
estimated based on current costs with respect to
producing oil and gas properties. Future
development costs are based on the best estimate
of such costs assuming current economic and
operating conditions.
Income tax expense is computed based on applying
the appropriate statutory tax rate to the excess
of future net cash flows less future production
and development costs over the tax basis of the
properties involved, less applicable
carryforwards, for both regular and alternative
minimum tax.
The future net revenue information assumes no
escalation of costs or prices, except to gas
sales made under terms of contracts which
include fixed and determinable escalation.
Future costs and prices could significantly vary
from current amounts and, accordingly, revisions
in the future could be significant.
7
<PAGE>
12/18/97
EXHIBIT A
Page 1 of 14
AFG Energy Inc. Kansas Office
Asset Listing
1. Approximately 50-mile gathering system
2. Three compressors
3. Rolling stock, 11 vehicles
4. Total of 273 wells
207 productive with associated pumping units, tank
batteries, etc.
34 SWD
32 wells TA'd, some with equipment
5. Office equipment
3 PCs with printers
1 copy machine
3 offices furnished with normal fixtures; 2-way radios
in all vehicles, with base station in office
6. Office space leased @ $400/month
7. Various spare parts and equipment
<PAGE>
12/18/97
EXHIBIT A
Page 2 of 14
Compressors
AFG-owned:
3 - G342/JG-2 Ariel Compressors 20# suction, each machine will
move 1.279 MMCF/day;
all three at 3.8 MMCF/day with discharge of 240#
AFG has a gathering system consisting of about 50 miles of pipe. Gas
is delivered to AFG's compressor station at Otis, Kansas, boosted to plus or
minus 300# for delivery into a KN Energy line for use as plant fuel at KN's
Bushton gas processing plant east of Otis, Kansas.
<PAGE>
12/18/9
EXHIBIT A
Page 3 of 14
Rolling Stock Serial No. License No.
- ------------- ---------- -----------
95 Chevy Pickup 1GCEK14Z4SZ165806 IGY 270
97 Dodge Pickup lB7GG23X5YS188007 IGY 268
95 Chevy Pickup 1GCEK14Z9S236062 IGY 275
95 Chevy Pickup 1GCEK14Z5S236799 IGY 276
95 Chevy Pickup 1GCEK14Z2Sl20l53 IGY 271
94 Chevy Pickup 1GCK14Z3RZ162258 IGY 269
93 Chevy Pickup 1GCCT14Z9P8137775 IGY 273
97 Ford Pickup IFTEF14Y2TLB0362 MAU 224
81 Intl. Old
Water Truck 1HTAA17E3BHA25767 IGX 694
91 Intl. New
Water Truck 1HTSHNROMH331186 IGX 693
<PAGE>
Exhibit A
Page 4 of 14
TOTALS -
ALL PROPERTIES
Equip. Non-Eq.
SWD Prod. TA'd TA'd
================================================================
Woodman-Iannitti 12 53 2
Hill City 6 24 2 3
Hays 7 24 1 5
AFG Oil 6 32 9
K-N 11 1
West Gas / North Gas 5 1
Reichel 6
AFG Gas 1 36 3
Croffott 2 16 3 2
=====================================
TOTAL 34 207 10 22
TOTAL WELLS 273
<PAGE>
Exhibit A
Page 5 of 14
WOODMAN - IANNITTI WELLS
<TABLE>
<CAPTION>
County Lease Name Prod. TA'd SWD WI NRI
================================================================================
<S> <C> <C> <C> <C> <C> <C>
Barton Ben Tempero 1 1 1.000 0.82031240
Barton Deutsch 2 1.000 0.82031250
Barton Hammeke 1 1.000 0.83398440
Barton H. Karst 1 1 0.81250 0.702051
Barton Howlier 1 0.93700 0.768633
Barton Iannitti 6 1 1.000 0.875
Barton Keenan 'B' 2 0.992754 0.86866
Barton Lander 2 0.915630 0.741803
Barton Nuss 1 0.81250 0.699080
Barton Rose 3 1.000 0.875 Dual Comp.
Barton Unruh 2 1 0.81250 0.710938
Barton Weis SWD 1
Edwards Henning 1 0.8750 0.708801
Osborne Hobrock 2 1 0.593750 0.480947
Osborne Hogan 4 0.59375 0.480972
Osborne Maier 1 0.81250 0.676025
Pawnee Barstow 1 0.93750 0.769043
Pawnee Lovett 1 1 1.000 0.768633
Pawnee O. Schultz 2 0.93750 0.820313
Pawnee Oetkin 3 1 1 0.93750 0.794678
Rice Whiteman-Holland 3 1.000 0.82031250
Russell Beisel 4 1 1.000 0.875
Russell Thacker 2 1.000 0.84765630 Dual Comp.
Stafford Beckerdite 1 1 0.93750 0.807495
Stafford Hoffman 1 1 0.68750 0.556915
Stafford Miller 1 0.8750 0.708801
Stafford Schulz 2 0.68750 0.554449
Stafford Williams 2 1 0.8750 0.715210
Stafford Oscar Miller 1 1.000 0.82031250
=====================
TOTAL 53 2 12
</TABLE>
<PAGE>
Exhibit A
Page 6 of 14
HILL CITY
(Oil Wells)
Equip. Non-Eq.
County Lease Name SWD Prod. TA'd TA'd WI NRI
===============================================================================
Rooks Harrison 'A' 1 5 1 1.000 0.875
Rooks Finnesy 1 3 1.000 0.875
Rooks Watts 1 1.000 0.809380
Rooks Hindman 1 1.000 0.809370
Rooks Dougherty East 1 1.000 0.76650
Rooks Stebbins 1 1.000 0.751570
Rooks Dick 1 1 1 1.000 0.875
Rooks Stahl 4 1 1.000 0.843750
Rooks Kaba 1 1.000 0.847656
Rooks Cerrow 1 1.000 0.875
Graham DeYoung 1 2 1.000 0.875
Rooks Lowry 1 1.000 0.847656
Rooks Hilgers 'B' 1 2 1 1 1.000 0.875
Rooks Towns 1
TOTAL ============================
5 24 2 3
<PAGE>
Exhibit A
Page 7 of 14
HAYS
(Oil Wells)
Equip. Non-Eq.
County Lease Name SWD Prod. TA'd TA'd WI NRI
===============================================================================
Ellis Kraus 'A' 3 1 1 1.000 0.820310
Ellis Kraus 1 1 1.000 0.792969
Trego Ridgeway 1 1 1 1.000 0.77930
Ellis Schneller 1 3 1.000 0.820313
Trego Keller 'A' 1 2 1 1.000 0.8750
Ellis Leiker 1 0.41667 0.364590
Ellis Grass 1 1.000 0.8750
Trego Keller 2 1.000 0.8750
Trego Baugher 1 1 1.000 0.765630
Ellis Flax 1 1.000 0.8750
Ellis Honas 1 1.000 0.820310
Ellis Kraus 'I' 1 2 1.000 0.820313
Ellis Kinderknecht 'B' 2 1.000 0.8750
Ellis Kraus 'B' 1 2 1.000 0.8750
Trego Schoenthaler 1 1.000 0.77500
Trego Schoenthaler 'A' 1 1.000 0.77500
Kramer 1
TOTAL =========================
7 24 1 5
<PAGE>
Exhibit A
Page 8 of 14
AFG
(Oil Wells)
Equip. Non-Eq.
County Lease Name SWD Prod. TA'd TA'd WI NRI
===============================================================================
Rush Urban 4 1.000 0.8750
Russell Foster 1 2 1 1.000 0.847656
Rooks Jaco 1 3 1 1.000 0.8750
Rooks Mosher 1 2 1.000 0.8750
Rooks Ross 1 1 1.000 0.8750
Rush Urban 'D' 1 2 1.000 0.8750
Rooks Axelson 2 1.000 0.792969
Graham Lewis 2 1 1.000 0.8750
Rooks Garvert 'A' 1 1.000 0.8750
Rush Jacobs 'B' 1 1.000 0.8750
Rooks Garvert 'B' 1 1.000 0.8750
Rooks Thyfault 1 1 1.000 0.820313
Rooks Bardot 1 3 1.000 0.8750
Rooks Harrison 'C' 1 1 1.000 0.8750
Rush Breit 1 1.000 0.8750
Rooks Andreson 'A' 1 1.000 0.8750
Rush Urban 'K' 1 1 1.000 0.8750
Rush Ochs 1 1.000 0.8750
Rooks Thompson 'A' 1 1.000 0.8750
Rush Dechant 'B' 1 1.000 0.8750
Rush Schwindt Farms 1 1.000 0.820313
Rush Kaiser 'A' 1 1.000 0.8750
Rush Wilson 1
=======================
TOTAL 6 32 0 9
<PAGE>
Exhibit A
Page 9 of 14
K-N
(Gas Wells)
County Lease Name Prod. TA'd WI NRI
===============================================================================
Rush Schneider 1 1.000 0.820313
Rush Foos 1 1.000 0.820313
Rush Hanhardt 'A' 1 1.000 0.820313
Rush Beahm 1 1.000 0.820313
Rush Appl 2 1.000 0.820313
Rush Rau 1 1.000 0.820313
Rush Steitz 'B' 1 1.000 0.820313
Rush Foos 'A' 1 1.000 0.820313
Rush Kleweno 1 1.000 0.820313
Rush Bieber 1 1.000 0.820313
Rush Hanhardt 1 1.000 0.820313
===========
TOTAL 11 1
<PAGE>
Exhibit A
Page 10 of 14
WEST GAS
(Gas Wells)
County Lease Name Prod. TA'd WI NRI
================================================================================
Rush Muth 2 1.000 0.722656
Rush Legleiter 'A' 1 1.000 0.738281
NORTH GAS
(Gas Wells)
Rush Legleiter 'B' 1 1.000 0.8750
Rush Legleiter 'C' 1 1.000 0.8750
Rush Graham 1 1.000 0.8750
===============
TOTAL 5 1
<PAGE>
Exhibit A
Page 11 of 14
REICHEL
(Gas Wells)
County Lease Name Prod. TA'd WI NRI
===============================================================================
Rush Reichel 1 1.000 0.8750
Rush Bieber 1 1.000 0.8750
Rush Rothe #1-31 1 1.000 0.8750
Rush Thielenhaus 1 1.000 0.8750
Rush Gillig 1 1.000 0.8750
Rush Kleweno 1 1.000 0.8750
=======
TOTAL 6
<PAGE>
Exhibit A
Page 12 of 14
AFG
(Gas Wells)
County Lease Name Prod. TA'd SWD WI NRI
===============================================================================
Rush Kober 1 1.000 0.8750
Rush Urban R&A 1 1.000 0.8750
Rush Giesick 2 1.000 0.8750
Rush Torrey 1 1.000 0.861328
Rush Rothe 1 1.000 0.820313
Rush Decker 'A' 1 1.000 0.868164
Rush Allen 'A' & 'D' 1 1 1.000 0.8750
Rush Grumbein 'A' 1 1.000 0.8750
Rush Scheuerman 1 1.000 0.8750
Rush Holzmeister 'B' 1 1.000 0.861328
Rush Edwards 1 1.000 0.8750
Rush Lippert 'B' 2 1.000 0.765625
Rush Ochs 'A' 1 1.000 0.8750
Rush Sherwood 1 1.000 0.792969
Rush Lippert 2 1.000 0.861328
Rush Lippert 'C' 1 1.000 0.765625
Rush Hoofer 1 1.000 0.861328
Rush Lebsack 'A' 1 1.000 0.783854
Rush Hartman 'C' 1 1.000 0.820313
Rush Elder 1 1.000 0.8750
Rush Honderick 'C' 1 1.000 0.8750
Rush Steitz 'A' 1 1.000 0.8750
Rush Janson 'A' 1 1.000 0.8750
Rush Odell 1 1.000 0.861328
Rush Ochs 1 1.000 0.8750
Rush Holzmeister 1 1.000 0.847656
Rush Brack 'A' 1 1.000
Rush Frye 1 1.000 0.8750
Rush Holzmeister 'A' 1 1.000 0.847656
Rush Hoffman 1 1.000 0.820313
Rush Basgall 'C' 1 1.000 0.8750
Rush Bahr 1 1.000 0.8750
Rush Kaiser 1 1.000 0.8750
Rush Schlitter 1 1.000 0.861328
Rush Kansas State #3 1
=================
36 2 1
<PAGE>
Exhibit A
Page 13 of 14
CROFFOOT
(Oil Wells)
Equip. Non-Eq.
County Lease Name SWD Prod. TA'd TA'd WI NRI
===============================================================================
Rooks Croffoot 1 4 1 1.000 0.861328
Rooks Croffoot 'A' 3 1 1 1.000 0.803864
Rooks Croffoot 'B' 1 7 1 1 1.000 0.820313
Rooks Croffoot 'C' 2 1.000 0.806641
=============================
TOTAL 2 16 3 2
<PAGE>
Exhibit A
Page 14 of 14
County Lease Name NRI
=======================================================
Graham Anderson 'A' 0.006836 ORR
Graham Bell 0.008545 ORR
Graham Farrell 'A' 0.016525 ORR
Russell Mills 'B' 0.027344 ORR
Ellis Pfeifer 0.102539 WI
Ellis Roth 0.059245 WI
Ellis Ruder 0.003418 ORR
Ellis Spreen 0.013672 ORR
Ellis Swires 0.005127 ORR
