2
UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-QSB
(Mark One)
[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES AND EXCHANGE ACT OF 1934
For the quarterly period ended September 30, 1999
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES ACT OF 1934
For the transition period from to.
Commission File No. 000-23867
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Aladdin Oil Corporation
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(Exact name of registrant as specified in its charter)
Colorado No. 86-0868911
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(State or other jurisdiction of (I.R.S. Employer Identification No.)
incorporation or organization)
11911 San Vincente Blvd., Suite 385, Los Angeles, California 90049
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(Address of principal executive offices)
(310) 440-4471
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(Registrant's telephone number, including area code)
Indicate by check mark whether the Registrant (1) has filed all reports required
to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during
the preceding 12 months (or for such shorter period that the Registrant was
required to file such reports), and (2) has been subject to such filing
requirements for the past 90 days.
[ ] [X ]
No Yes
The number of shares of Registrant's common stock outstanding at September 30,
1999 was 7,402,862.
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ALADDIN OIL CORPORATION
INDEX
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Page
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PART I - FINANCIAL INFORMATION
Item 1. Unaudited Consolidated Financial Statements
Consolidated Balance Sheets September 30 1999 and
December 31, 1998. . . . . . . . . . . . . . . . . . . 4
Consolidated Statements of Operations for the three and
nine months ended September 30, 1999 and 1998. . . . . 6
Consolidated Statements of Cash Flows for the nine
months ended September 30, 1999 and 1998 . . . . . . . 7
Notes to Consolidated Financial Statements . . . . . . . 8
Item 2. Management's Discussion and Analysis of Financial
Condition and Results of Operations. . . . . . . . . . . 9
PART II - OTHER INFORMATION. . . . . . . . . . . . . . . . 11
SIGNATURES . . . . . . . . . . . . . . . . . . . . . . . . 13
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5
PART I - FINANCIAL INFORMATION
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ITEM 1. UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS
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ALADDIN OIL CORPORATION
CONSOLIDATED BALANCE SHEETS
(Unaudited)
ASSETS
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Sept. 30, 1999 Dec. 31, 1998
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Current Assets
Cash . . . . . . . . . . . $ 157,447 $ 1,159
Accounts receivable, trade 9,364 -
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Total Current Assets . . 166,811 1,159
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Property and Equipment, Net. 1,077,705 -
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Other Assets
Organizational costs, Net. 500 500
Start-up Costs . . . . . . 1,109 -
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Total Other Assets . . 1,609 500
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Total Assets . . . . . $ 1,246,125 $ 1,659
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LIABILITIES AND SHAREHOLDERS' EQUITY
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Sept. 30, 1999 Dec. 31, 1998
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CURRENT LIABILITIES
Trade accounts payable. . . . . . . . . . $ 101,025 $ 129
Amounts payable to joint venture
participants. . . . . . . . . . . . . . 8,158 -
Due to related parties. . . . . . . . . . - -
Accrued expenses and
other liabilities. . . . . . . . . . . . - -
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Total Current Liabilities . . . . . . . 109,183 129
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Convertible Debentures. . . . . . . . . . - -
Shareholders' Equity
Convertible preferred stock,
Series A, no par value10,000,000 shares
authorized; . . . . . . . . . . . . . . -
Series B, no par value,
159,937 shares. . . . . . . . . . . . . 159,937
Common stock, no par value,
100,000,000 shares authorized;
7,402,862 shares issued and outstanding. 2,595,969 49,890
Accumulated deficit . . . . . . . . . . . (1,618,964) (48,360)
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Total Shareholders' Equity. . . . . . . 1,136,942 1,530
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Total Liabilities and
Shareholders' Equity. . . . . . . . . $ 1,246,125 $ 1,659
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The accompanying notes are an integral part of these
condensed financial statements.
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ALADDIN OIL CORPORATION
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
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For the Three Months For the Nine Months
1999 1998 1999 1998
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<S> <C> <C> <C> <C>
Revenues
Sale of oil and gas. . . . . . . . . . . $ 6,468 $ - $ 21,202 $ -
Interest income. . . . . . . . . . . . . - - - -
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Total Revenues . . . . . . . . . . . . 6,468 - 21,202 -
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Cost and Expenses
Oil and gas lease expense . . . . . . . 10,233 - 30,405 -
Depletion, depreciation and amortization 18,605 30 55,845 70
Interest . . . . . . . . . . . . . . . . 47,376 - 65,216 -
General administrative . . . . . . . . . 152,844 6,394 384,485 23,125
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Total Cost and Expenses. . . . . . . . 229,058 6,424 535,951 23,195
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Net Loss . . . . . . . . . . . . . . . . . $ (222,590) $ (6,424) $ (514,749) $ (23,195)
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Net Income (Loss) per Common Share . . . . $ (.03) $ (NIL) $ (.08) $ (.01)
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Weighted Average Number of Shares. . . . . 6,326,141 3,989,500 6,326,141 2,011,900
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ALADDIN OIL CORPORATION
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
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<CAPTION>
For the Nine Months
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Ended Sept 30,
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1999 1998
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Cash Flows from Operating Activities
Net loss. . . . . . . . . . . . . . . . . . . $(514,749) $ ( 23,195)
Adjustments to reconcile net income
to net cash used from operating activities:
Depreciation, depletion and amortization. 55,845 70
Rent. . . . . . . . . . . . . . . . . . . - 450
Changes in operating capital:
Amounts receivable. . . . . . . . . . . . 9,364 -
Trade accounts payable. . . . . . . . . . (68,112) 1,578
Amounts payable to joint venture
participants and related parties. . . . 2,267 -
Stock issued for consulting fees. . . . . - 15,500
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Net Cash Used by Operating Activities . . . . . (514,985) (5,597)
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Cash Flows from Investing Activities
Capital expenditures. . . . . . . . . . . . . 385,722 (600)
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Cash Flows from Financing Activities
Proceeds from issuance of common stock. . . . 171,218 -
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Net Cash Provided by Financing Activities 556,940 (600)
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Net Increase in Cash and Cash Equivalents . . . 41,955 (6,197)
Cash and Cash Equivalents at Beginning
Of Period . . . . . . . . . . . . . . . . . . 115,522 7,366
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Cash and Cash Equivalents at
End of Period . . . . . . . . . . . . . . . . $ 157,477 $ 1,169
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10
ALADDIN OIL CORPORATION
NOTES TO CONDENSED FINANCIAL STATEMENTS
FOR THE NINE MONTHS ENDED
SEPTEMBER 30, 1999 AND 1998
(Unaudited)
NOTE 1 - BASIS OF PRESENTATION
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The financial information included herein is unaudited; however, such
information reflects all adjustments (consisting solely of normal recurring
adjustments) which are, in the opinion of management, necessary for a fair
statement of results for the interim periods. The results of operations for the
six months period ended June 30, 1999, are not necessarily indicative of the
results to be expected for the full year.
The accompanying consolidated financial statements do not include footnotes and
certain financial presentations normally required under generally accepted
accounting principles; and, therefore, should be read in conjunction with the
Company's Annual Report on Form 10-K for the year ended December 31, 1998.
The Company is the result of the successful merger by and between Aladdin Oil
Corporation, a Nevada Corporation and Buffalo Capital V, Ltd., a Colorado
Corporation that closed in June of 1999. Aladdin Oil Corporation was the
surviving entity as a result of the business combination, with the management of
Aladdin Oil Corporation, assuming control of the newly combined entity.
Furthermore, upon closing of the merger, the surviving entity adopted the fiscal
year end of Buffalo Capital V, Ltd. which is December 31.
Aladdin Oil Corporation is an independent energy company engaged in the
exploration for and the acquisition and development of oil and gas properties
using Computer Aided Exploration Technology, ("CAEX") primarily in the states of
Texas, Louisiana and California.
NOTE 2 - PER SHARE COMPUTATIONS
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Per share computations are based upon the weighted average number of common
shares outstanding during each year. Common stock equivalents are not included
in the computations since their effect would be anti-dilutive.
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ITEM 2. MANAGEMENT DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
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OF OPERATIONS
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BUSINESS REVIEW
Notice Regarding Forward-Looking Statements
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This report contains forward-looking statements. The words, "anticipate,"
"believe," "expect," "plan," "intend," "estimate," "project," "could," "may,"
"foresee," and similar expressions are intended to identify forward-looking
statements. These statements include information regarding expected development
of the Company's business, lending activities, relationship with customers, and
development in the oil and gas industry. Should one or more of these risks or
uncertainties occur, or should underlying assumptions prove incorrect, actual
results may vary materially and adversely from those anticipated, believed,
estimated or otherwise indicated.
Computer Issues for the Year 2000
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The Company is aware of the issues associated with the programming code in
existing systems as the millennium (Year 2000) approaches. The Company has
examined the computer software and is confident it will accommodate the Year
2000 issue. Additionally, the company is contacting its appropriate vendors to
determine if they are equipped to handle the Year 2000 issue.
Three Months Ended September 30, 1999 as compared with Three Months ended
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September 30, 1998
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For the quarter ended Sept 30, 1999 gas revenue was $6,468. There is no revenue
comparision for the same period Sept 30, 1998, due to the fact that Buffalo
Capital was a development stage company.
Costs and expenses were increased by $46,420 this quarter due to increased
General and Administrative expenses, generally related to moving of the office
and interest expense.
The net loss for this quarter was $222,590 compared to a net loss of $6,424 for
the same quarter in 1998, (Buffalo only for 1998).
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ITEM 2. MANAGEMENT DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
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OF OPERATIONS (Continued)
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BUSINESS REVIEW (continued)
Joint Venture Agreement
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The Company entered into an agreement on August 2, 1999 with Wespac Technologies
Corporation, a private Texas-based company, to form Wespac Energy, LLC to
acquire a package of up to three properties located in Texas and Louisiana.
Under preliminary purchase terms, Wespac Energy, LLC will acquire properties for
a combined purchase price of approximately $12.5 million, subject to adjustments
at closing. Estimated PV-10 value of the property reserves are currently
calculated conservatively to be $24 million.
Under the terms of the joint venture, Aladdin Oil Corporation will have the
right to purchase up to 50% of Wespac Energy LLC for a total consideration of
$450,000, plus certain capital contributions to the properties. Terms for
closing are still being negotiated, and closing is subject to the arrangement of
financing, among other items which are still subject to change.
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PART II - OTHER INFORMATION
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13
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K
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(b) Reports on Form 8-K: none were filed for the period.
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SIGNATURES
Pursuant to the requirement of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
ALADDIN OIL CORPORATION
(Registrant)
November 15, 1999 /s/ Meghan Robins
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Meghan Robins
President and Chief Executive Officer
