<PAGE> 1
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 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 June 30, 2000
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
000-30087
Commission file number
AMG OIL LTD.
(Exact name of Small Business Issuer as Specified in its Charter)
State of Nevada NA
(State or other jurisdiction (I.R.S. Employer
of Incorporation or Organization) or Identification Number)
Suite 700, 700 - 6th Avenue,
Calgary, AB, T2P-0T8
(Address of Principal Executive Offices)
(403) 531-9718
(Issuer's Telephone Number, including Area Code)
State the number of shares outstanding of each of the Issuer's classes of
common equity, as of the latest practicable date: Common, $.00001 par value
per share: 19,200,000 outstanding as of August 4, 2000
Transitional Small Business Disclosure Format (check one):
Yes [ ] No [ x ]
<PAGE> 2
PART I - FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS
AMG OIL LTD.
(A Development Stage Enterprise)
Consolidated Interim Balance Sheets
June 30, June 30, September 30,
2000 1999 1999
(Unaudited - (Unaudited -
Prepared Prepared
by Management) by Management)
Assets
Current
Cash $ 101,281 $ 271,513 $ 258,129
Accounts receivable 441 157 92
Marketable securities 23,026 41,288 42,876
Prepaid expenses 4,397 - -
----------- ----------- -----------
129,145 312,958 301,097
Investments 10,000 10,000 10,000
Fixed assets, net of
accumulated depreciation 5,271 - -
Oil and gas property 1,273,617 955,793 962,554
----------- ----------- -----------
Total Assets $ 1,418,033 $ 1,278,751 $ 1,273,651
=========== =========== ===========
Liabilities
Current
Accounts payable and
accrued liabilities $ 26,382 $ 3,500 6,072
Due to related parties 15,977 6,642 -
----------- ----------- -----------
Total Liabilities 42,359 10,142 6,072
----------- ----------- -----------
Commitments and Contingencies
Stockholders' Equity
Common stock, $0.00001 par
value; 100,000,000 shares
authorized; (June 30, 2000:
19,200,000 shares) (June 30,
1999 and September 30, 1999:
14,200,000 shares) 192 142 142
Additional paid-in capital 1,965,683 1,530,858 1,530,858
Deferred compensation (183,023) - -
Deficit accumulated during
the development stage (407,178) (262,391) (263,421)
----------- ----------- -----------
Total Stockholders' Equity 1,375,674 1,268,609 1,267,579
----------- ----------- -----------
Total Liabilities and
Stockholders' Equity $ 1,418,033 $ 1,278,751 $ 1,273,651
=========== =========== ===========
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<PAGE> 3
AMG OIL LTD.
(A Development Stage Enterprise)
Consolidated Interim Statements of Operations
(Unaudited - Prepared by Management)
Cumulative
From
Quarter Quarter Nine Months Nine Months Inception
Ended Ended Ended Ended on February
June 30, June 30, June 30, June 30, 20, 1997 to
2000 1999 2000 1999 06/30/00
Revenues
Interest income $ 1,853 $ 2,424 $ 7,706 $ 8,151 $ 36,437
--------- -------- ---------- --------- ----------
Expenses
General and administrative 76,442 (880) 129,761 38,012 219,660
Amortization of deferred
compensation 1,852 - 1,852 - 1,852
Loss on sale of marketable
securities - - - 16,135 16,135
Write-down of marketable
securities 7,146 8,851 19,850 50,139 212,747
Write-down of oil and gas
property - - - - 160
--------- -------- ---------- --------- ----------
85,440 7,971 151,463 104,286 450,554
--------- -------- ---------- --------- ----------
(83,587) (5,547) (143,757) (96,135) (414,117)
Gain on sale of oil and gas
property - - - - 6,939
--------- -------- ---------- --------- ----------
Net loss for the period $ (83,587) $ (5,547) $ (143,757) $ (96,135) $ (407,178)
========= ======== ========== ========= ==========
Basic and diluted loss
per share $ (0.00) $ (0.00) $ (0.01) $ (0.01) $ (0.04)
========= ======== ========== ========= ==========
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<PAGE> 4
AMG OIL LTD.
(A Development Stage Enterprise)
Consolidated Interim Statements of Cash Flows
(Unaudited - Prepared by Management)
Cumulative
from Inception
Nine Months Nine Months on February 20,
Ended Ended 1997 to
June 30, 2000 June 30, 1999 June 30, 2000
Operating Activities
Net loss for the period $ (143,757) $ (96,135) $ (407,178)
Adjustments to reconcile net
loss to cash applied to
operating activities:
Depreciation 220 - 220
Amortization of deferred
compensation 1,852 - 1,852
Loss on sale of marketable
securities - 16,135 16,135
Write-down of marketable
securities 19,850 50,139 212,747
Write-down of oil and
gas property - - 160
Gain on sale of oil and
gas property - - (6,939)
Changes in non-cash working
capital:
Accounts receivable (349) 760 (441)
Prepaid expenses (4,397) - (4,397)
Accounts payable and
accrued liabilities 20,310 (2,238) 26,382
Due to related parties 15,977 6,642 15,977
---------- --------- ----------
Net cash used in
operating activities (90,294) (24,697) (145,482)
---------- --------- ----------
Financing Activities
Common shares issued for cash 250,000 600,000 1,781,000
---------- --------- ----------
Net cash provided by
financing activities 250,000 600,000 1,781,000
---------- --------- ----------
Investing Activities
Purchase of fixed assets (5,491) - (5,491)
Purchase of marketable
securities - - (324,856)
Proceeds from sale of
marketable securities - 72,948 72,948
Oil and gas exploration
expenditures (311,063) (532,486) (1,276,838)
---------- --------- ----------
Net cash used in investing
activities (316,554) (459,538) (1,534,237)
---------- --------- ----------
Net increase (decrease) in
cash during the period (156,848) 115,765 101,281
Cash position - Beginning
of period 258,129 155,748 -
---------- --------- ----------
Cash position - End
of period $ 101,281 $ 271,513 $ 101,281
========== ========= ==========
<PAGE> 5
AMG OIL LTD.
(A Development Stage Enterprise)
Consolidated Interim Statement of Changes in Stockholders' Equity
(Unaudited - Prepared by Management)
For the Nine Months Ended June 30, 2000
Deficit
Accumulated Total
Additional Deferred During the Stock-
Common Stock Paid-in Compen- Development holders'
Shares Amount Capital sation Stage Equity
Balance at
September 30, 1999 14,200,000 $142 $1,530,858 $ - $(263,421) $1,267,579
Common stock issued
for cash at $0.05
per share 5,000,000 50 249,950 250,000
Deferred compensation
related to stock
options 184,875 (183,023) 1,852
Net loss during
the period (143,757) (143,757)
---------- ---- ---------- --------- --------- -----------
Balance at
June 30, 2000 19,200,000 $192 $1,965,683 $(183,023) $(407,178) $1,375,674
========== ==== ========== ========= ========= ==========
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AMG OIL LTD.
(A Development Stage Enterprise)
Notes to the Consolidated Interim Financial Statements
(Unaudited - Prepared by Management)
For the Nine Months Ended June 30, 2000
NOTE 1 - NATURE OF OPERATIONS AND CONTINGENCIES
The Company was incorporated under the laws of the State of Nevada as
Trans New Zealand Oil Company on February 20, 1997. The Company's name
was subsequently changed to AMG Oil Ltd. on July 27, 1998. The business
of the Company is the acquisition and exploration of oil and gas
properties.
The Company is a development stage enterprise and is required to identify
that these consolidated financial statements are those of a development
stage enterprise in accordance with paragraph 12 of Statement of
Financial Accounting Standards No. 7. However, the Company is primarily
engaged in the exploration of PEP 38256, its only oil and gas property,
and is not engaged in the development of PEP 38256, as that term is
defined in the oil and gas industry.
The unaudited consolidated financial statements of the Company reflect,
in the opinion of management, all adjustments, consisting only of normal
and recurring adjustments, necessary to present fairly the Company's
consolidated financial position as at June 30, 2000 and 1999 and the
consolidated results of operations and cash flows for the three-month and
nine-month periods ended June 30, 2000 and 1999. These financial
statements have been prepared in accordance with the instructions to Form
10-QSB and therefore do not include all disclosures required for
financial statements prepared in conformity with generally accepted
accounting principles. Interim period results are not necessarily
indicative of results of operations or cash flows for a full year.
These financial statements and the notes thereto should be read in
conjunction with the Company's Form 10-SB for the year ended September
30, 1999, including the consolidated financial statements and notes
thereto.
The Company has yet to determine whether PEP 38256 contains oil and gas
reserves that are economically recoverable. Further, there can be no
assurance that the Company will ever discover commercial quantities of
oil and gas or obtain proved reserves. The recoverability of the amounts
capitalized for oil and gas property is dependent upon the completion of
exploration work, the discovery of oil and gas reserves in commercial
quantities and the subsequent development of such reserves.
The Company does not generate sufficient cash flow from operations to
fund its entire exploration activities and has therefore relied
principally upon the issuance of securities for financing. The Company
intends to continue relying upon the issuance of securities to finance
its operations and exploration activities to the extent such measures are
available and obtainable under terms acceptable to the Company.
Accordingly, the Company's consolidated financial statements are
presented on a going concern basis.
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AMG OIL LTD.
(A Development Stage Enterprise)
Notes to the Consolidated Interim Financial Statements
(Unaudited - Prepared by Management)
For the Nine Months Ended June 30, 2000
NOTE 2 - MARKETABLE SECURITIES
Marketable securities comprise of 79,400 common shares of Trans-Orient
Petroleum Ltd. acquired at a cost of $235,773 and recorded at an
estimated market value of $23,026.
NOTE 3 - OIL AND GAS PROPERTY
PEP 38256
The Company has a 30% interest in Petroleum Exploration Permit 38256 ("PEP
38256"). The other participant in PEP 38256 is Indo-Pacific Energy Ltd.
("Indo-Pacific") (70%), as the operator. In June 2000, the Company
exercised its option to earn a further 50% interest in PEP 38256 by
committing to fund the costs of drilling and testing two exploration wells.
PEP 38256 is located in New Zealand and provides for the exclusive right to
explore for petroleum for an initial term of five years. The participants
are required to relinquish at least one-half of the original area by August
25, 2000 and a further one-half of the remaining area upon extension of
PEP 38256 for a further five years. The participants can apply for
extensions or reductions of the committed work program for PEP 38256 under
certain circumstances. Any production permits granted will be for a term
of up to 40 years from the date of issue. The New Zealand government has
reserved a royalty of the greater of 5% of net sales revenue or 20% of
accounting profits from the sale of petroleum products.
As at June 30, 2000, PEP 38256 is in good standing with respect to its work
commitments. The participants must drill one exploration well by August
25, 2000, estimated to cost $1,013,000, to fulfill the remaining
requirements under PEP 38256. A second exploration well is estimated to
cost $778,000.
NOTE 4 - RELATED PARTY TRANSACTIONS
During the nine month period ended June 30, 2000, the Company issued
5,000,000 units to Trans-Orient Petroleum Ltd. ("Trans-Orient"), a public
company with directors, officers and/or principal shareholders in common
with the Company, at a price of $0.05 per unit for total proceeds of
$250,000. At June 30, 2000, Trans-Orient beneficially held 8,200,000
shares of the Company, representing 42.7% of the issued and outstanding
number of shares, and held stock options and share purchase warrants to
purchase a further 5,800,000 shares.
During the nine month period ended June 30, 2000, the Company incurred
$35,335 of mainly general and administrative costs through DLJ Management
Corp. ("DLJ"), a wholly owned subsidiary of Trans-Orient. This amount
represents costs incurred by DLJ on behalf of the Company. At June 30,
2000, the Company has a retainer balance of $296 paid to DLJ.
<PAGE> 8
AMG OIL LTD.
(A Development Stage Enterprise)
Notes to the Consolidated Interim Financial Statements
(Unaudited - Prepared by Management)
For the Nine Months Ended June 30, 2000
NOTE 5 - COMMITMENTS AND CONTINGENCIES
The Company participates in oil and gas exploration and development
activities as a joint venture partner with a related party and is
contractually committed under agreements to complete certain exploration
programs. The Company's management estimates that the total commitments
under various agreements are approximately $1,800,000 relating to the
completion of the first and second exploration wells in PEP 38256.
The Company is not aware of any events of noncompliance in its operations
with any environmental laws or regulations, nor of any potentially material
contingencies related to environmental issues. However, the Company cannot
predict whether any new or amended environmental laws or regulations
introduced in the future will have a material adverse effect on the future
business of the Company.
NOTE 6 - STOCKHOLDERS' EQUITY
During the nine months ended June 30, 2000, the Company issued 5,000,000
units to Trans-Orient at a price of $0.05 per unit for total proceeds of
$250,000. Each unit consists of one share of common stock of the Company
and one share purchase warrant to purchase an additional share exercisable
at a price of $1.00 until April 10, 2005.
During the nine months ended June 30, 2000, the Company granted stock
options to purchase a total of 217,500 shares of the Company at a price of
$1.50 per share resulting in an aggregate deferred compensation cost of
$184,875. This amount represents the difference between the exercise price
and the quoted market price of the Company's common stock at the date of
grant. The amortization of deferred compensation is charged to operations
over the three-year vesting period of the stock options.
The following stock options to purchase shares of the Company are
outstanding at June 30, 2000:
Number Price Expiry
Of Shares per Share Date
800,000 $ 0.50 July 31, 2000
217,000 $ 1.50 June 20, 2005
---------
1,017,500
=========
On July 28, 2000, stock options to purchase 800,000 shares of Company at
a price of $0.50 per share expiring on July 31, 2000 were extended to
December 31, 2000.
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<PAGE> 9
AMG OIL LTD.
(A Development Stage Enterprise)
Notes to the Consolidated Interim Financial Statements
(Unaudited - Prepared by Management)
For the Nine Months Ended June 30, 2000
NOTE 6 - STOCKHOLDERS'S EQUITY (Continued)
The following share purchase warrants to purchase shares of the Company
are outstanding at June 30, 2000:
Number Price Expiry
Of Shares per Share Date
5,000,000 $ 1.00 April 10, 2005
=========
NOTE 7 - LOSS PER SHARE
The following is a reconciliation of the numerators and denominators of
the basic and diluted loss per share calculations for the quarter and for
the nine months ended June 30, 2000 and 1999:
Quarter Quarter Nine Months Nine Months
Ended Ended Ended Ended
06/30/00 06/30/99 06/30/00 06/30/99
Numerator, net loss
for the period $ (83,587) $ (5,547) $ (143,757) $ (96,135)
--------- -------- ---------- ---------
Denominator:
Weighted-average
number of shares
Outstanding 18,705,495 14,200,000 15,696,350 13,465,934
---------- ---------- ---------- ----------
Basic and diluted
loss per share $ (0.00) $ (0.00) $ (0.01) $ (0.01)
========== ========== ========== ==========
Stock options and share purchase warrants outstanding were not included
in the computation of diluted loss per share as such inclusion would be
anti-dilutive, due to net losses incurred for all periods presented.
-8-
<PAGE> 10
ITEM 2. MANAGEMENT DISCUSSION AND PLAN OF OPERATION
The Registrant has been principally involved, during the past two years,
in the acquisition, interpretation and mapping of seismic on New Zealand's
onshore petroleum exploration permit PEP 38256, in which it holds a 30%
participating interest; and hence has not yet received revenues from
operations, profitability or break-even cash flow.
As a result of the Registrant's past seismic programs, two main drilling
targets have been identified on PEP 38256. The first is the Arcadia
Prospect, which is a "pop-up" anticline covering an area of over 15,000
acres. The second target is the Ealing Prospect, which is a fault and
paleo-drape structure covering an area of approximately 25,000 acres.
Several other structures have also been identified, which will form
obvious follow-on exploration targets in the event that any success is
achieved in either of the Ealing or Arcadia Prospects.
On June 20, 2000 the Registrant exercised a drilling option it held on
the property. By exercising the drilling option the Registrant may earn
an additional 50% interest in the permit, thereby increasing the
Registrant's ownership interest in the permit to 80%; while in exchange
the Registrant is responsible for paying the entire costs of drilling two
exploration wells. The costs to drill the two wells is budgeted at
approximately $2,000,000, of which the Registrant is responsible to pay
the entire amount according to the terms of the drilling option.
The plan of operations for the next 12 months is to drill two exploration
wells within PEP 38256 permit, with the first well scheduled to proceed
in September 2000. The first well is planned to be drilled on the Arcadia
Prospect. The second well is planned to be drilled on the Ealing
Prospect, immediately after completion of the first well. Under the terms
on which the New Zealand government granted the permit, the participants
must drill an exploration well to the lesser of 1,200 metres or economic
basement by August 25, 2000. The first planned well will meet this
obligation of the permit, provided it proceeds in the specified 3rd
quarter / early 4th quarter time frame. The Registrant will analyze the
results from electric logging of the wells in order to determine whether
flow testing of either well is justified. Future work in the permit will
depend on the outcome of this drilling program.
The $2,000,000 budgeted cost to drill and test the two wells consists of
the following items and their related costs:
Item Description Estimated Cost
1. Permitting, planning and
site preparation $ 300,000
2. Drilling and logging $1,200,000
3. Testing and completion $ 500,000
Management utilizes a range of industry professionals on a consultant
basis to provide various project services, and does not expect any
significant increases in the number of employees in the near future.
For a discussion of how long the Registrant can fulfill its cash
requirements and how it will raise additional capital in the near future,
see the section entitled "Liquidity and Capital Resources" below.
<PAGE> 11
Results of Operations
Comparison of the nine months ended June 30, 2000 with the nine months
ended June 30, 1999
During the nine-month period ending June 30, 2000 the Registrant did not
receive any revenue from operations, nor did the Registrant receive any
revenue from operations during the same period last year. The Registrant
did receive $7,706 in interest income from cash on deposit during the
nine months ending June 30, 2000 while during the same period last year
the interest income received by the Registrant was $8,151.
Total general and administrative costs and expenses were $129,761 in the
nine month period ending June 30, 2000 compared to $38,012 in the prior
year period. The increase largely reflects the fees charged for the
development and dissemination of the Registrant's web site ($26,127.43)
and corporate information packages ($41,282.46).
During the nine month period ending June 30, 2000 the Registrant expended
$311,063 in capital on exploration activities within PEP 38256 as
compared to $532,486 during the same period last year. The reduction is
due to the fact that during the nine month period ending June 30, 2000
the exploration activities have largely consisted of interpretation and
mapping of a large amount seismic which was acquired during last year.
Liquidity and Capital Resources - At June 30, 2000, current assets
totaled $129,145 compared to $312,958 at the end of the comparable period
last year. The decrease in current assets is largely attributable to a
decrease in cash on hand. At June 30, 2000 the Registrant's current
assets consisted of $101,281 in cash, $441 in accounts receivable, $4,558
in prepaid expenses and $23,026 in marketable securities. Current
liabilities at June 30, 2000 were $42,359 compared to $10,142 at the end
of the comparable period last year. Cash on hand and short term
investments are currently the Registrant's only sources of liquidity. The
Registrant does not have any lending arrangements in place with banking
or financial institutions and does not anticipate that it will secure
such funding arrangements in the near future. Net cash used by operating
activities during the nine months ended June 30, 2000 was $90,294 as
compared to $24,697 for the same period last year. The increase in net
cash used by operating activities is largely due to the increased general
and administrative expenses incurred during the nine months ending June
30, 2000 over the same period last year. Net cash used by investing
activities consisted of $311,063 used for acquisition, analysis and
mapping of seismic and a further $5,491 spent on the acquisition of fixed
assets. Net cash provided by financing activities was $250,000 derived
from a private placement of restricted securities.
Prior to September 2000, the Registrant is required to spend
approximately $2,000,000 in order to drill, and if appropriate test, two
exploration wells on PEP 38256. Failure to fund the drilling of the two
exploration wells could result in the Registrant being required to give
up its interest in PEP 38256 and thereby cease its normal operations. The
Registrant does not at this time have sufficient capital to fund the
$2,000,000 drilling expense but is in the process of seeking further
capital funding or farming out an interest in the permit to a third party
in exchange for the third party paying for some or all of the costs
<PAGE> 12
related to drilling the two wells. At the date of this report, the
Registrant does not have any executed commitments from outside sources
for the necessary capital nor has the Registrant executed any farm out
agreements. Management expects that the Registrant will have to secure
sufficient funds by September 2000 in order to be able to carry out the
planned drilling program.
Unless further sources of funding are secured to fund operations, the
Registrant will be unable to carry on normal operations past September
2000. To the extent that the Registrant requires additional funds to
support its operations or the expansion of its business, the Registrant
may sell additional equity or issue debt. Any sale of additional equity
securities will result in dilution to the Registrant 's shareholders.
There can be no assurance that additional financing, if required, will be
available to the Registrant in amounts or on terms acceptable to the
Registrant.
Forward-Looking Statements
This Form 10-QSB includes certain statements that may be deemed to be
"forward-looking statements" within the meaning of the Private Securities
Litigation Reform Act of 1995. All statements in this Form 10-QSB, other
than statements of historical facts, that address activities, events or
developments that the Registrant expects, believes or anticipates will or
may occur in the future, including operating costs, future capital
expenditures (including the amount and nature thereof), the drilling of
wells, reserve estimates and other such matters are forward-looking
statements. Although the Registrant believes the expectations expressed in
such forward-looking statements are based on reasonable assumptions within
the bounds of its knowledge of its business, such statements are not
guarantees of future performance and actual results or developments may
differ materially from those in the forward-looking statements.
Factors that could cause actual results to differ materially from those in
forward-looking statements include: oil and gas prices; exploitation and
exploration successes; continued availability of capital and financing;
general economic, market or business conditions; acquisition opportunities
(or lack thereof); changes in laws or regulations; risk factors listed from
time to time in the Registrant's reports filed with the Securities and
Exchange Commission; and other factors.
<PAGE> 13
PART II - OTHER INFORMATION
Item 1. Legal Proceedings
None.
Item 2. Changes in Securities
On April 10, 2000 the Registrant issued 5,000,000 units in a non-brokered
private placement to Trans-Orient Petroleum Ltd. for total proceeds of
$250,000. Each Unit consists of one share of common stock and one warrant
to purchase an additional common share at any time until April 10, 2005 at
a price of $1.00 per share. The issuance was made pursuant to Regulation S
(rules 901 to 905) promulgated under the 1933 Securities Act. Trans-Orient
Petroleum Ltd. is a Yukon incorporated company public company with a
registered office in British Columbia.
On June 20, 2000 the Registrant issued options under its Non-Qualified
Option Plan to directors, officers and consultants who provide services to
the Registrant permitting them to acquire a total of 217,500 common shares
of the Registrant. The options expire on June 20, 2005 and have an exercise
price of $1.50 per share. The options are subject to vesting provisions
whereby 1/6 of the total amount granted to the respective option holder
vests every six months and to resale restrictions whereby a maximum of 25%
of the vested amount can be sold in any 30-day period. The issuance of
options was made pursuant to Regulation S (rules 901 to 905) promulgated
under the 1933 Securities Act. All of the recipients of the options are
non-residents of the United States.
Item 3. Defaults Upon Senior Securities
None
Item 4 Submissions of Matters to a Vote of Security Holders
None
Item 5. Other Information
On June 20, 2000, the Registrant exercised its drilling option in PEP
38256, which will increase the Registrant's interest in the project from
30% to 80% upon the Registrant satisfying certain funding commitments
with respect to all costs associated with the drilling and testing of two
exploration wells within PEP 38256.
The drilling program is scheduled to commence in September, with the first
well being on the Arcadia prospect, and the Ealing well to be drilled
immediately upon completion of Arcadia. Both wells are planned to be
drilled to approximately 6,000 feet depth, and each will have the Homebush
Sandstones as their major target, with several secondary targets both above
and below the Homebush Sandstones.
<PAGE> 14
Item 6. Exhibits and Reports on Form 8-K
(a) Exhibits
Exhibit No. Exhibit Description Page No
27.1 Financial Data Schedule
The following documents are herein incorporated by reference from the
Company's Form 10-SB Registration Statement SEC File #000-30087 as filed
with the SEC on March 24, 2000:
99.1 PEP 38256 Option Agreement dated June 25, 1998
99.2 Amending Agreement #1, Amendment #2 and Amendment Agreement
#3 to PEP 38256 Option Agreement dated December 3, 1998,
October 26, 1999 and February 23, 2000
(b) Reports on Form 8-K.
On July 15, 2000 the Registrant filed a Form 8-K to disclose the
Registrant's exercise of a drilling option on June 20, 2000 to earn a
further 50% interest in PEP 38256 by committing to fund the costs of
drilling and testing two exploration wells.
<PAGE> 15
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.
AMG Oil Ltd.
(Registrant)
Dated: August 10, 2000 By: /s/ Cameron Fink
Cameron Fink, President
Dated: August 10, 2000 By: /s/ Mark Katsumata
Mark Katsumata, Financial Officer
