U.S. SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-QSB
[ X ] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended March 31, 2000
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from to
Commission File No. 0-29129
SOURCE ENERGY CORPORATION
(Exact name of small business issuer as specified in its charter)
Utah 87-0370820
(State or Other Jurisdiction of (IRS Employer
Incorporation or Organization) Identification No.)
3040 Granite Meadow Lane, Sandy Utah 84092
(Address of principal executive offices)
(801) 943-5490
(Issuer's telephone number)
7412 Rosalind Circle, Salt Lake City, Utah 84121
(Former name, address and fiscal year, if changed since last
report)
Check whether the issuer (1) has filed all reports required to be filed by
Section 13 or 15(d) of the Exchange Act during the preceding 12 months (or
for such shorter period that the issuer was required to file such reports),
and (2) has been subject to such filing requirements for the past 90 days.
Yes [ X ] No [ ]
<PAGE>
APPLICABLE ONLY TO ISSUERS INVOLVED IN BANKRUPTCY
PROCEEDINGS
DURING THE PRECEDING FIVE YEARS:
Check whether the registrant has filed all documents and reports required
to be filed by Sections 12, 13, or 15(d) of the Exchange Act subsequent to
the distribution of securities under a plan confirmed by a court. Yes [ ]
No [ ]
APPLICABLE ONLY TO CORPORATE ISSUERS:
State the number of shares outstanding of each of the issuer's
classes of common equity, as of the latest practicable date:
329,451 shares of common stock.
FORM 10-QSB
SOURCE ENERGY CORPORATION
PART I.
Financial Information
Item 1. Financial Statements
The Financial Statements of the Registrant required to be filed with this
10-QSB Quarterly Report were prepared by management and commence on the
following page, together with related Notes. In the opinion of management, the
Financial Statement fairly present the financial condition of the Registrant.
Incorporated herein are the Company's financials for the period ended June 30,
2000:
Unaudited Balance Sheet at June 30, 2000
Unaudited Statements of Operations for the Three and Six Months Ended
June 30, 2000 and 1999
Unaudited Statements of Cash Flows for the Three and Six Months Ended
June 30, 2000 and 1999
Item 2. Management's Discussion and Analysis of Financial
Condition or Plan of Operation
Incorporated herein by this reference is the discussion of the registrant's
business and plan of operation under Item 2 of the current report on Form 8-K of
the registrant filed with the Securities and Exchange Commission on April 17,
2000.
PART II. OTHER INFORMATION
EXHIBITS AND REPORTS ON FORM 8-K
EXHIBITS: None
REPORTS ON FORM 8-K: None
<PAGE>
SIGNATURES
In accordance with the requirements of the Exchange Act, the registrant
caused this report to be signed on its behalf by the undersigned thereunto duly
authorized.
SOURCE ENERGY CORPORATION
Date: August 10, 2000 By: Craig Carpenter, President
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SOURCE ENERGY CORPORATION
(Formerly known as Parker Energy Technology, Inc.)
Condensed Financial Statements
June 30, 2000
<PAGE>
<TABLE>
<CAPTION>
SOURCE ENERGY CORPORATION
Formerly known as Parker Energy Technology, Inc.
Condensed Balance Sheet
June 30, 2000
(Unaudited)
ASSETS
<S> <C>
Current Assets
Cash and cash equivalents $ 25,812
Accounts receivable 6,563
----------------------
Total Current Assets 32,375
Property and Equipment
Equipment 5,476
Proved oil and gas properties 597,353
----------------------
Total Property and Equipment 602,829
Less: Accumulated Depreciation and Depletion (518,618)
----------------------
Net Property and Equipment 84,211
----------------------
Total Assets $ 116,586
======================
LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities
Current Liabilities
Judgement payable 75,000
Taxes Payable $ 284
---------------------
Total Current Liabilities 75,284
---------------------
Total Liabilities 75,284
Stockholders' Equity
Capital Stock -- 200,000,000 shares authorized having a
par value of $.00025 per share; 404,451 issued and
outstanding 101
Additional Paid-in Capital 1,243,454
Accumulated Deficit (1,202,253)
---------------------
Total Stockholders' Equity 41,302
---------------------
Total Liabilities and Stockholders' Equity $ 116,586
=====================
</TABLE>
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<PAGE>
<TABLE>
<CAPTION>
SOURCE ENERGY CORPORATION
Formerly known as Parker Energy Technology, Inc.
Condensed Statements of Operations
For the Three and Six Months Ended June 30, 2000 and 1999
(Unaudited)
Three Three Six Six
Months Months Months Months
Ended Ended Ended Ended
June 30, June 30, June 30, June 30,
2000 1999 2000 1999
---------------- ---------------- ---------------- ---------------
<S> <C> <C> <C> <C>
Revenues from Oil and Gas Activities $ 14,910 7,116 29,515 11,810
Oil and Gas Producing Expense:
Production costs 3,701 1,708 6,938 3,901
Depletion 3,918 2,388 7,836 3,956
---------------- ---------------- ---------------- ---------------
Total Oil and Gas Producing Expense 7,619 4,096 14,774 7,857
Income/(Loss) from Oil and Gas
Activities 7,291 3,020 14,741 3,953
Other Income/(Expense):
General and administrative expense (6,003) (884) (6,322) (3,456)
Judgment expense -0- -0- (90,039) -0-
Interest 14 2 20 4
---------------- ---------------- ---------------- ---------------
Total Other Income/(Expense) (5,989) ( 882) (96,341) (3,452)
---------------- ---------------- ---------------- ---------------
Net income/(loss) before income tax 1,302 2,138 (81,600) 501
Provision for income tax 447 -0- 447 -0-
---------------- ---------------- ---------------- ---------------
Net Income/(Loss) $ 855 2,138 (82,047) 501
================ ================ ================ ===============
Income/(Loss) per Share $ .01 .01 (.20) .01
================ ================ ================ ===============
Weighted Average Shares 404,451 404,451 404,451 404,451
Outstanding
================ ================ ================ ===============
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
SOURCE ENERGY CORPORATION
Formerly known as Parker Energy Technology, Inc.
Statements of Cash Flows
For the Three Months and Six Ended June 30, 2000 and 1999
(Unaudited)
Three Three Six Six
Months Months Months Months
Ended Ended Ended Ended
June 30, June 30, June 30, June 30,
2000 1999 2000 1999
--------------- ---------------- --------------- ---------------
<S> <C> <C> <C> <C>
Cash Flows From Operating Activities
Net Income/(loss) $ 855 2,138 (82,047) 501
Adjustments to reconcile net income to net cash
provided by
operating activities:
Depreciation and depletion 3,918 -0- 7,836 1,568
Stock issued for debt 15,604 15,604
(Increase)/decrease in accounts receivable 8,042 (2,268) (1,479) (2,268)
Increase/(decrease) in current liabilities (14,855) -0- 75,185 -0-
--------------- ---------------- --------------- ---------------
Net Cash Provided by/(Used for) Operating 13,564 (130) 15,099 (199)
Activities
--------------- ---------------- --------------- ---------------
Cash Flows From Financing Activities
Proceeds from issuance of shares -0- -0- -0- -0-
--------------- ---------------- --------------- ---------------
Net Cash Provided by Financing Activities -0- -0- -0- -0-
--------------- ---------------- --------------- ---------------
Net Increase/(Decrease) in Cash 13,564 (130) 15,099 (199)
Beginning Cash Balance 12,248 2,120 10,713 2,189
--------------- ---------------- --------------- ---------------
Ending Cash Balance $ 25,812 1,990 25,812 1,990
=============== ================ =============== ===============
Supplemental Disclosure of Cash Flow
Information:
Cash paid during the year for income taxes $ 447 -0- 447 -0-
</TABLE>
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SOURCE ENERGY CORPORATION
Formerly known as Parker Energy Technology, Inc.
Notes to Financial Statements
June 30, 2000
(Unaudited)
Note 1 PRELIMINARY NOTE
The accompanying condensed consolidated financial statements have been
prepared without audit, pursuant to the rules and regulations of the
Securities and Exchange Commission. Certain information and disclosures
normally included in financial statements prepared in accordance with
generally accepted accounting principles have been condensed or omitted. It
is suggested that these condensed financial statements be read in
conjunction with the financial statements and notes thereto included in the
Company's Annual Audit for the year ended December 31, 1999.
Note 2 ORGANIZATION
The Company was originally incorporated under the name Exit, Inc. in
accordance with the laws of the State of Utah on January 30, 1981. In April
of 1984, the Company changed its name to Parker Energy Technology, Inc.
From its inception until May 20, 1997, the Company had been in the business
of oil and gas exploration and production activities. Currently, the
Company has one producing well, located in Grand County, Utah. On May 20,
1997, the Company effected a reverse split of its outstanding shares from
81,637,100 to 1,632,742. Simultaneous thereto, the Company entered into an
agreement with an individual to engage in the business of distillate fuel
systems process plants and changed its name to Source Energy Corporation.
On March 10, 2000 a U.S. district court judge rescinded the May 20, 1997
agreement and ordered that the Company be returned, as nearly as possible,
to its status prior to consummation of said agreement. This included
cancelling 12,305,800 shares of common stock issued in the transaction.
Note 3 JUDGEMENT
On March 10, 2000, a U.S. district court judge rescinded the May 20, 1997
agreement referenced in Note 2, and ordered that the Company be returned,
as nearly as possible, to its status prior to consummation of said
agreement. The Court further ordered that the Company pay the plaintiff in
the legal action his attorneys fees in the amount of $15,039 and an award
of $75,000 to compensate him for the benefit conferred on Source Energy
Corporation shareholders in prosecuting this action. The plaintiff in this
case was returned by the Court to the presidency of Source Energy
Corporation, a position
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<PAGE>
SOURCE ENERGY CORPORATION
Formerly known as Parker Energy Technology, Inc.
Notes to Financial Statements
June 30, 2000
(Unaudited)
Note 3 JUDGEMENT (cont.)
he held prior to the May 20, 1997 agreement.
The Court also ordered that the other defendants in the case, T.R. Kraft,
and Point Source Energy Corporation, an Oregon corporation, to pay an award
to the Company in the amount of $225,000. The Company does not intend to
record this amount as a receivable on its books because the defendants'
whereabouts are unknown and ability to collect from them is questionable.
Note 4 REVERSE SPLIT OF COMMON SHARES
The Company effected a 1 for 40 reverse split, which became effective April
10, 2000.
Note 5 ACQUISITION/MERGER
On April 13, 2000, the Company acquired Newven Acquisition Corporation, A
Nevada Corporation ("Newven"), as a wholly owned subsidiary through a stock
for stock exchange. Immediately following the exchange, the Company and
Newven entered into a Plan of Merger pursuant to which Newven was merged
with the Company. All of Newven's outstanding stock (500,000 shares) were
exchanged for 25,000 shares of the Company's restricted common stock.
Newven's assets at the time of the merger were $565 in cash; there were no
liabilities.
Note 6 STOCK ISSUED FOR DEBT
On April 13, 2000, the Company issued 200,000 shares to its President, who
is also a shareholder, in exchange for a debt reduction of $15,039.
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