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 QUARTER ENDED September 30, 1999
OR
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
COMMISSION FILE NUMBER: 0-9336
STANDARD ENERGY CORPORATION
(Name of Small Business Issuer as specified in its charter)
Utah 87-0338149
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
363 Bearcat Drive
Salt Lake City, Utah 84115-2517
(Address of principal executive offices) (Zip Code)
Issuer's telephone number, including area code: (801) 364-9000
Securities registered pursuant to Section 12(b) of the Exchange Act:
None
Securities registered pursuant to Section 12(g) of the Exchange Act:
$.01 Par Value Common Stock
Check whether the Issuer (1) has filed all reports required to be filed
by Section 13 or 15(d) of the Securities Exchange Act of 1933, as amended
(the "Act") 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. Yes X No .
Common Stock outstanding at November 12, 1999: 104,487,974 shares
of $0.01 par value Common Stock.
DOCUMENTS INCORPORATION BY REFERENCE: NONE
FORM 10-QSB
Financial Statements and Schedules
STANDARD ENERGY CORPORATION
For six months Ended September 30, 1999
The following table of contents of financial statements and other
information of the registrant and its consolidated subsidiaries are
submitted herewith:
PART I - FINANCIAL INFORMATION
Item Page
Item 1. Consolidated Balance Sheets -
September 30, 1999 and March 31, 1999.............. 3
Consolidated Statements of Operations -
For the six months
ended September 30, 1999........................... 5
For the three months
ended September 30, 1999........................... 6
Consolidated Statements of Cash Flows -
For the six months ended
ended September 30, 1999........................... 7
Item 2. Management's Discussion and Analysis of Financial
Condition and Results of Operations - General......... 8
Results of Operations................................. 9
Financial Condition................................... 10
Plan of Operation..................................... 12
Research and Development - Trashfuel Project.......... 12
Inflation............................................. 14
Recent Accounting Pronouncements...................... 14
Management's Conflicts of Interest.................... 14
Forward Looking Statements............................ 15
PART II - OTHER INFORMATION
Item 1. Legal Proceedings..................................... 16
Item 2. Changes in Securities................................. 16
Item 3. Defaults upon Senior Securities....................... 16
Item 4. Submission of Matters to a Vote of Security Holders... 16
Item 5. Other Information..................................... 16
Item 6. Exhibits.............................................. 16
PART I - ITEM 1
STANDARD ENERGY CORPORATION AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
September 30 March 31
1999 1999
(Unaudited) (Audited)
ASSETS
CURRENT ASSETS
Cash $ 800 $ 9,604
TOTAL CURRENT ASSETS 800 9,604
INVESTMENT IN OIL AND GAS PRODUCING
PROPERTIES, net of depletion of $92,970
PROPERTY AND EQUIPMENT, net 16,500 18,500
OIL AND GAS LEASEHOLD INTERESTS HELD
OTHER ASSETS
Oil and gas leases held for resale 71,653 71,653
Pledged drilling bonds 35,000 35,000
TOTAL OTHER ASSETS 106,653 106,653
TOTAL ASSETS $ 123,953 $ 134,757
See notes to consolidated financial statements
STANDARD ENERGY CORPORATION AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
September 30 March 31
1999 1999
(Unaudited) (Audited)
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES
Notes payable $ 57,367 $ 31,811
Notes payable to related parties 135,964 32,727
Accounts payable and accrued expenses 67,268 50,641
TOTAL CURRENT LIABILITIES 260,599 115,179
STOCKHOLDERS' EQUITY
Common Stock, par value $.01 per share:
Authorized 200,000,000 shares; issued
and outstanding 104,487,974 shares at
September 30, 1999 1,044,879 1,044,879
Preferred Stock, par value $.01 per share;
Authorized 10,000,000 shares 0 0
Additional paid-in capital 7,346,703 7,339,503
Retained earnings (deficit) (8,444,975) (8,280,751)
Treasury stock, at cost (83,253) (83,253)
TOTAL STOCKHOLDERS EQUITY (136,646) 19,578
TOTAL LIABILITIES AND STOCKHOLDERS'
EQUITY $ 123,953 $ 134,757
See notes to consolidated financial statements
STANDARD ENERGY CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
Six months Ended September 30
1999 1998
REVENUES
Oil and gas information services $ 2,400 $ 3,354
Sales of oil and gas leasehold interests 0 14,719
Oil production 12,178 6,062
Other income 720 139,236
15,298 163,371
COSTS AND EXPENSES
Oil and gas information services 5,494 5,840
Oil and gas leasehold interests (2,354) 1,804
Oil production 0 0
Depreciation, depletion and amortization 2,000 2,000
Interest 4,014 4,651
Project Cost 122,291 0
General and administrative 48,077 60,773
TOTAL COSTS AND EXPENSES 179,522 75,068
NET INCOME (LOSS) $ (164,224) $ 88,303
NET INCOME (LOSS) $ (.00) $ .00
See notes to consolidated financial statements
STANDARD ENERGY CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
Three months Ended September 30
1999 1998
REVENUES
Oil and gas information services $ 1,050 $ 2,004
Sales of oil and gas leasehold interests 0 0
Oil production 4,928 2,913
Other income 364 138,890
6,342 143,807
COSTS AND EXPENSES
Oil and gas information services 3,424 3,957
Oil and gas leasehold interests 3,294 0
Oil production 0 0
Depreciation, depletion and amortization 1,000 1,000
Interest 2,257 919
Project Cost 82,891 0
General and administrative 17,689 42,557
TOTAL COSTS AND EXPENSES 110,555 48,433
NET INCOME (LOSS) $ (104,213) $ 95,374
NET INCOME (LOSS) $ (.00) $ .00
See notes to consolidated financial statements
STANDARD ENERGY CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
Six months Ended September 30
1999 1998
Cash Flows From Operating Activities
Net income (loss) $ (164,224) $ 88,303
Adjustments to reconcile net earnings to
net cash provided by operating activities:
Depreciation and depletion 2,000 2,000
Changes in:
Accounts receivable 0 20,423
Accounts payable 16,627 (222)
Net cash provided by (used in)
operating activities (145,597) 69,658
Cash Flow From Industry Activities
(Increase) decrease to long-term investments $ 0 $ 0
(Increase) decrease oil & gas leasehold
interests 0 0
(Increase) decrease in treasury stock 0 (83,253)
Net cash provided by (used in)
investing activities $ 0 $ (83,253)
Cash Flows From Financing Activities
Increase (decrease) in notes payable $ 128,793 $ (15,599)
Proceeds from sale of common stock 8,000 31,500
Net cash provided by (used in)
Financing activities $ 136,793 $ 15,901
Net Increase (Decrease) in Cash $ (8,804) $ 2,306
Cash at Beginning of Period 9,604 2,974
Cash at End of Period $ 800 $ 5,280
See notes to consolidated financial statements.
PART I - ITEM 2
MANAGEMENT'S DISCUSSION AND ANALYSIS
OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
General
The Company's primary oil and gas business, the brokerage of
leasehold interests, has not materially increased during the period
ended September 30, 1999, due to decreased activity in the domestic
oil and gas exploration industry. In light of this decreased activity,
and the Company's lack of capital, it has been exploring other ways of
generating revenues.
During the current fiscal period, the Company continues to
research and develop its technologies for the recycle of municipal
solid waste ("City Garbage") into (1) valuable recycled metals, glass,
plastics, etc., products that are saleable in the existing commercial
salvage markets and (2) the recovery of City Garbage derived
cellulosic material ("Celmat") convertible into fuel-grade ethanol and
lignin ("Lignin"), a coal-like aromatic substance believed to be a
usable boiler fuel and/or a specialty chemical useable in the
petro-chemical industry (collectively the "Biofuels Technology").
As a result of the Company's research and development efforts,
management believes that the Company has developed what appears to be
a commercial application of the Biofuels Technology for a future
commercial project and hired the engineering firm of W.J. Scales &
Company of Boerne, Texas to develop and complete a Business Plan for
the Company's "South Bend Project". During the Quarter ended September
30, 1999, that Business Plan was revised and renamed the Trashfuel
Project. W.J. Scales then partnered with Limbach Company of Richmond,
Virginia (collectively the "Scales Group") to construct the Trashfuel
Project for the Company. The Business Plan is based on the Scales
Group present technical engineering designs and experience in the
development of large new commercial projects. The Business Plan
includes a plan to finance and develop the Trashfuel Project utilizing
the Biofuels Technology. (See "Research and Development - Trashfuel
Project" below)
There can be no assurance that the required capital will be
available to develop the Trashfuel Project, and even if adequate
capital is available, there can be no assurance that the Biofuels
Technology will perform on a commercial basis. The Company's future
operating results will depend on its ability to obtain adequate
financing to construct the Trashfuel Project. Expenses incurred for
the Trashfuel Project are being accounted for under line item "Project
Cost".
Results of Operations
The Company realized revenues of approximately $15,000 for the
six-month period ended September 30, 1999, compared with approximately
$163,000 for the corresponding period ended September 30, 1998. Cash
requirements during the period were obtained from a combination of
internally generated cash flow from operations, asset sales, and the
sale of Rule 144 investment stock to private individuals.
Revenues from oil and gas leasehold sales for the six-month
period ended September 30, 1999 were zero compared to approximately
$15,000 for the corresponding period ended September 30, 1998. There
were no oil and gas leasehold sales, due to the Company's exploration
inactivity.
Revenues from the sale of the Company's geologic information
services were approximately $2,400 for the six-month period ended
September 30, 1999, compared with approximately $3,400 for the
corresponding period ended September 30, 1998. Revenues from the
Company's geologic information services have declined steadily from
the 1986, 1993 and 1998 collapse of world crude oil prices.
Revenue from oil production was approximately $12,000 for the
six-month period ended September 30, 1999, compared to approximately
$6,000 for the corresponding period ended September 30, 1998. Oil
production revenues were up this quarter reflecting current high world
crude oil prices after oil prices collapsed in June 1998 setting a
25-year record low price.
The Company incurred expenses related to the Company's oil and
gas leasehold sales of approximately ($2,400) for the six-month period
ended September 30, 1999, compared to approximately $1,800 for the
comparable period ended September 30, 1998.
Expenses associated with the Company's geologic information
services were approximately $5,400 for the six-month period ended
September 30, 1999, compared to approximately $5,800 for the
comparable period ended September 30, 1998.
Expenses associated with the Company's oil production and
exploration activities were zero for the six-month period ended
September 30, 1999, due the abandonment in fiscal 1998 of the
Company's last operated well. There were no cost for the period ended
September 30, 1998, due to the Company's exploration inactivity.
General and administrative expense for the six-month period ended
September 30, 1999 were approximately $48,000, compared to
approximately $61,000 for the comparable period ended September 30,
1998. This decline reflects the Company's basic inactivity in its oil
and gas sector.
The Company does not expect to realize significant cash flows
from the sale of leasehold interests, geologic information services,
or oil production and exploration activities during the remainder of
fiscal 2000, nor does it expect significant leasehold sales in the
foreseeable future, as the domestic oil industry continues to shrink
from unstable worldwide crude oil prices. The Company also anticipates
that it will operate at a loss for the remainder of the 2000 fiscal
period, ended March 31, 1999, due to continued costs incurred for its
Trashfuel Project and costs related to its oil and gas business.
The Company adopted Statement of Financial Accounting Standards
No. 109 "Accounting for Income Taxes" [FASB 109] during the year ended
March 31, 1994. FASB 109 requires the Company to provide a net
deferred tax asset or liability equal to the expected future tax
benefit or expense of temporary reporting differences between book and
tax accounting and any available operating loss or tax credit carry
forwards. At March 31, 1997 and 1996, the total of the deferred tax
assets were $1,837,459 and $1,800,064 the total of all deferred tax
liabilities were $0 and $(1,789). The amount of and ultimate
realization of the benefits from the deferred tax assets for income
tax purposes is dependent, in part, upon the tax laws in effect, the
Company's future earnings, and other future events, the effects of
which cannot be determined.
Because of the uncertainty surrounding the realization of the
deferred tax assets, the Company has established a valuation allowance
of $1,837,459 and $1,800,064 as of March 31, 1997 and 1996, which has
been offset against the deferred tax assets. The net change in the
valuation allowance during the year ended March 31, 1997 was $37,395.
The cumulative effect of the change in accounting for income taxes for
prior years was not material to the statement of income for the year
ended March 31, 1999. The financial statements for prior years have
not been restated.
The Company has available at March 31, 1999, unused tax operating
loss carry forward of approximately $4,477,000 that may be applied
against future taxable income through 2012. No tax benefit has been
reported in the financial statements, because the Company believes
there is a 50% or greater chance the carry forwards will expire
unused. Accordingly, the potential tax benefits of the loss carry
forwards are offset by a valuation account of the same amount. (See
"Consolidated Financial Statements" above)
Financial Condition
Management is aggressively exploring additional financing for
ongoing and future operations of the Company and has entered into an
agreement with the Scales Group for the engineering, management, and
construction of the Trashfuel Project. There is no assurance that the
efforts of management to locate and secure additional financing will
be successful, and the failure to secure project financing would
substantially alter management's assumptions as herein presented.
Revenue reduction in the Company's overall oil and gas business
is related to effects of the 1986, 1993 and 1998 worldwide collapse of
crude oil price and the corresponding reduced oil and gas brokerage
activity of the Company. The reduced activity in its oil and gas
business, along with the Company's investment in Biomass
International, Inc. ("Biomass") without any intervening revenues, have
resulted in the Company incurring losses in its Biomass investment
aggregating approximately $4,100,000 from fiscal 1981 through March
31, 1992. Because of these circumstances the Company is currently
experiencing cash flow difficulties.
For the period ended September 30, 1999, the Company had no
additional research and development expense in Biomass, nor does it
expect to make any further investments in Biomass in the future, nor
does it expect to recover its investment in Biomass. On December 19,
1997, Dean W. Rowell, President of the Company, resigned as an officer
and director of Biomass to more fully pursue the Company's oil and gas
business and its Trashfuel Project development.
Management can give no assurances that it will be successful in
its endeavors to resolve its cash flow difficulties or that it will be
able to retain and ultimately recover its costs in oil and gas
leaseholds held for resale. The financial statements do not include
any adjustments relating to the amounts and classification of assets,
liabilities, income or expenses that might be necessary should the
Company be unable to successfully resolve these uncertainties and
continue in existence. In order to continue in existence the Company
is in need of additional financing from outside sources or from
internal operations. (See "Consolidated Financial Statements" above)
For the period ended September 30, 1999, Mr. Rowell was able to
secure loans from the Company's credit cards up to approximately
$44,000 and approximately $131,000 from Trachyte Oil Company
("Trachyte"). Trachyte is a privately-held Utah corporation owned 100%
by Mr. Rowell, the President of the Company. These amounts largely
offset the Company's cash flow difficulties and quarterly operating
deficit of approximately $164,000.
On August 30, 1999, due to the Company's continued cash flow
difficulties, the Company issued 80,000 newly issued shares of the
Company's common stock investment shares at $0.10 per share to
Stillpoint Group, a Nevada Corporation, in exchange for $8,000 cash.
The Company's most significant assets are (1) its oil and gas
production income, (2) its oil and gas leaseholds held for resale,
approximating 40,000 net acres at September 30, 1999, including
leaseholds acquired under its unrelated third-party agreements, and
(3) its plan for the full development of the Trashfuel Project. Other
assets are; (4) the $4,477,000 tax loss carry forward, and (5) the
5,252,556 shares of Biomass common stock. At September 30, 1999, the
Biomass shares had little value being bid $0.005 and asked $0.01 on
the electronic OTC:BB. With little or no volume on a daily basis for
the past three years, Rule 144 sales of its Biomass shares appear
impractical for the Company in the foreseeable future.
The Company foresees a need for additional equity financing in
order to continue in existence, and may, in the future, seek to raise
additional funds through asset sales, bank and/or other loans, debt,
or equity offerings. Any such equity offerings, asset sales, or other
financing may either be private or public and may result in
substantial dilution to the then existing shareholders of the Company.
Plan of Operation
There have been no significant changes in capitalization or
financial status during the past two years that are not reflected in
the financial statements. The Company's plan of operation during the
next twelve (12) months includes the following:
1. Aggressively pursue oil and gas lease acquisition with
third party investors.
2. Aggressively pursue financing for the Trashfuel Project
with the Scales Group and other current financial contacts.
3. Continue research and development, testing City Garbage
processing equipment and testing existing and new cellulose
enzymes.
4. Continue design and development of the Trashfuel Project.
5. Engage an investor relations person to disseminate
information about the Company, its technologies, and the
Trashfuel Project.
Research and Development - Trashfuel Project
The Company continues to research and develop its technologies
for the recycle of City Garbage into (1) valuable recycled metals,
glass, plastics, etc., products that are saleable in the existing
commercial salvage markets and (2) the recovery of City Garbage
derived cellulosic materials ("Celmat") convertible into fuel-grade
ethanol and Lignin. These efforts have led management to believe that
the Company has developed what appears to be a commercial application
of the Biofuels Technology for its future Trashfuel Project, based on
the Scales Group present technical engineering designs and experience
in the development of large new commercial projects.
In 1993, the Company initiated a search for a way to commercially
exploit the Biofuels Technology. Idled plants, or plants operating
uneconomically, were initially considered the most appropriate and
viable alternative, resulting in the development by the Company of the
old South Bend Project, which was based upon converting operating
plants to utilize the Company's Biofuels Technology. Working with
advisors, the Company has determined that a grassroots construction of
a state of the art City Garbage fed recycle plant (the "Recycle
Plant") co-located with a Celmat fed ethanol plant (the "Ethanol
Plant") would optimize operations. The Trashfuel Project is based on
this concept. In October, the Company announced that is conducting
on-going discussions with the City of Philadelphia regarding the
possibility of locating a Company owned Trashfuel Project plant in the
City to process all of the City's municipal garbage.
The Company, the Scales Group, and others are presently
attempting to obtain a project loan with unrelated third parties to
raise up to $250,000,000 (the "Loan"). The Loan, if obtained, would be
used to finance the design, construction and initial operations of
both the Recycle and Ethanol Plant facilities as a single economic
unit. It is the Company's belief that combined, and operated as one
economic unit, the two plants have better overall economic strengths
than each plant would have if operated as separate units. There can be
no assurance that the required Loan will be available and there can be
no assurance that the Biofuels Technology will perform on a commercial
basis. The Company's future operating results will depend on its
ability to obtain adequate financing to construct the Trashfuel
Project.
The Company, providing it is successful in receiving the Loan,
for which there is no assurance, anticipates building a Recycle Plant
to operate as a City Garbage sorting plant which could recycle
approximately 2,200,000 tons of City Garbage per year in 12-Modules,
expandable to approximately 26-modules capable of processing 5,000,000
tons of City Garbage per year. Initial construction will consist of
2-Modules which will process 1,100 tons of City Garbage per day. Once
the 2-Module design is operational, and proof of concept achieved, the
plant will be expanded to the 12-Module design capable of processing
6,600 tons of City Garbage per day.
The Recycle Plant will harvest all of the inorganic materials in
City Garbage and recycle them into clean saleable products such as
aluminum, copper, gold, steel, iron, glass, plastics, sand, gravel,
dirt, etc. ("Salvage"). The organic Celmat harvested (approximately
60% of the total), consisting of paper, paper products, yard and wood
wastes, etc., will provide a low=cost feedstock for the Ethanol Plant
to manufacture Celmat into renewable ethanol fuel. The City Garbage
would be supplied to the Recycle Plant by present haulers of City
Garbage located in the Eastern U.S.
The Company, providing it is successful in receiving the Loan,
would construct an Ethanol Plant to operate using as feedstock for the
production of ethanol. The design capacity of the 12-Module design
Ethanol Plant will be approximately 85,000,000 gallons of ethanol per
year from 1,300,000 tons of Celmat, expandable to 200,000,000 gallons
per year from approximately 3,000,000 tons of Celmat per year, derived
from 5,000,000 tons of City Garbage per year.
At November 12, 1999, the Trashfuel Project, fundamentally, is
only an engineering concept where the Company is contemplating the
construction of two separate industrial plants using the Company's
Biofuels Technology, while present operations continue uninterrupted
at each plant site. The Company is pursuing the Loan and other
financing ideas through two wholly-owned subsidiaries, Standard
EnviroSystems, Inc. ("EnviroSystems") and Biofuels, Inc. ("Biofuels").
Final plans and final financial arrangements with unrelated
third-parties for the Loan on the Trashfuel Project had not been
finalized
or completed as of November 12, 1999.
Inflation
Inflation continues to apply moderate upward pressure on the cost
of goods and services including those purchased by the Company.
Management believes the net effect of inflation on operations has been
minimal during the past two years.
Recent Accounting Pronouncements
There are no recent accounting pronouncements that will have a
material impact on the Company's financial statements.
Management's Conflicts of Interest
Material conflicts of interest exist and will continue to exist
between the Company, Trachyte, and Mr. Rowell, who is also the
President of Trachyte, a privately-held Utah corporation, whose
current major activities are the exploration and production of oil and
gas resources. The Company's policy is to offer any new oil and gas
property purchase first to the Company and then to Trachyte if the
Company is unable to accept the financial obligation of any
transaction. As of November 12, 1999, Mr. Rowell owns beneficially
approximately 50% of the common stock of the Company and 100% of the
common stock of Trachyte.
Geologic and other information which the Company has or develops
is available to Mr. Rowell, as an officer of the Company, and he may
use such information for the benefit of the Company in determining
which leases to buy or sell.Such information is also available to
Mr. Rowell, without cost, in connection with Mr. Rowell's personal
participation in the Leasing Programs.
On December 19, 1997, Mr. Rowell resigned as an officer and
director of Biomass, partially resolving any future conflict of
interest between the Company, Mr. Rowell, and Biomass. Although
Mr. Rowell is no longer affiliated with Biomass, the Company holds in
excess of 10% of the common stock of Biomass making the Company a
controlled person of Biomass under the Security Act of 1933, as
amended (the "Act"). Certain conflicts of interest may arise between
the Company, Biomass, and Mr. Rowell, depending on future development
of the biomass technology by Biomass and the future results from the
development of the Company's Biofuels Technology, to the extent both
companies may be involved in the ethanol production business.
During the fiscal period ended March 31, 1999, the Company
continued to experience severe cash flow difficulties, which have
continued into the 2000 fiscal period, and in which Trachyte has
received a demand note from the Company in the amount of $12,727 plus
interest at 12% per annum. At November 12, 1999 the Company owed
Trachyte approximately $131,000. Neither Mr. Rowell nor Trachyte
received any common stock in exchange for debt forgiveness during the
six month period ended September 30, 1999.
During the seven year period since fiscal 1991, Trachyte has
helped financially support the Company largely due to Mr. Rowell's
efforts to secure loans from Trachyte for the Company during periodic
cash flow difficulties. During such periods, the several transactions
with Trachyte have provided the financial means for the Company to
pursue commercialization of the Trashfuel Project, otherwise the
Company would have been unable to pursue this goal. Final plans and
final financial arrangements had not been completed for the Trashfuel
Project as of November 12, 1999.
Mr. Rowell owes a duty of due care and fair dealing to both the
Company and Trachyte and the resolution of duties and conflicts in
favor of one company over the other may impair his duties to each
company. It is likely that any conflict of interest between the
Company and Trachyte requiring a determination may have to be settled
in favor of the Company to the detriment of Trachyte, as well as to
the detriment of the current and future shareholders of Trachyte.
Forward Looking Statements
The forgoing discussion in "Management's Discussion and Analysis
of Financial Condition and Results of Operation" contain
forward-looking statements, within the meaning of Section 27A of the
Securities Act of 1933, as amended (the "Act") and Section 21E of the
Act, which reflect Managements current views with respect to the
future events and financial performance. The Company cautions that
words used in this document such as "experts", "anticipates",
"believes" and "may" as well as similar words and expressions identify
and refer to statements describing events that may or may not occur in
the future, including among other things, statements relating to
anticipated growth and increased profitability, as well as to
statements relating to the Company's strategic plan, including plans
to develop the Trashfuel Project and to selectively acquire other
companies. These forward-looking statements and the matters to which
they refer to are subject to considerable risks and uncertainties that
may cause actual results to be materially different from those
described in this document, including, but not limited to future
financial performance and future events, competitive pricing for
services, costs of obtaining capital as well as national, regional and
local economic conditions. Actual results could differ materially from
those addressed in the forward-looking statements. Due to such
uncertainties and risks, readers are cautioned not to place undue
reliance on such forward-looking statements, which speak only as of
the date of this Form 10-QSB report.
PART II - OTHER INFORMATION
Item 1. Legal Proceedings. None
Item 2. Changes in Securities. None.
Item 3. Defaults On Senior Securities. None.
Item 4. Submission of Matters to a Vote of Security Holders. None.
Item 5. Other Information. None.
Item 6. Exhibits and Reports on Form 8-K, filed during the
quarter ended September 30, 1999. None.
SIGNATURE
Pursuant to the requirements 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.
STANDARD ENERGY CORPORATION
(Registrant)
By:
Dean W. Rowell, President and
Chief Financial Officer
Date: November 12, 1999
