FORM 10-Q
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
QUARTERLY REPORT UNDER SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
(x) Quarterly report pursuant to Section 13 or 15(d) of the Securities
Exchange Act of 1934
OR
( ) Transition report pursuant to Section 13 or 15(d) of the Securities
Exchange Act of 1934
For Quarter Ended June 30, 1995 Commission File Number 0-8835
TAURUS PETROLEUM, INC.
(Exact name of registrant as specified in its charter)
COLORADO 84-0736215
(State or other jurisdiction of IRS Employer
incorporation or organization) Identification No.
10100 Reunion Place, Suite 630, San Antonio, TX. 78216
(Address of Principal Executive offices) (Zip Code)
(210) 525-1599
(Registrant's telephone number, including area code)
Indicate by check 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.
Yes [X] No [ ]
As of August 10, 1995, 59,954,042 shares of the registrant's Common Stock were
outstanding.
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<TABLE>
PART I. FINANCIAL INFORMATION
Item 1. Financial Statements
TAURUS PETROLEUM, INC.
AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
<CAPTION>
June 30, September 30,
1995 1994
Unaudited
<S> <C> <C>
ASSETS
Current assets:
Cash and cash equivalents $ 3,507 $ 900
Accounts receivables 49,119 58,161
Other current assets 18,575 24,892
__________ ________
71,201 83,953
Property and equipment, at cost
successful efforts method 2,199,326 2,263,568
Less accumulated depreciation and
depletion (1,885,881) (1,898,494)
___________ ___________
Net property and equipment 313,445 365,074
___________ ___________
$ 384,646 $ 449,027
----------- -----------
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 126,159 $ 92,690
Notes payable related parties 26,061 14,892
Undistributed oil and gas sales 21,427 28,291
Other current liabilities 7,357 687
___________ __________
Total current liabilities 181,004 136,560
Long term liabilities:
Notes payable related parties 101,454 112,623
Stockholders' equity:
Common stock 60,307 60,307
Additional paid-in capital 3,082,328 3,082,328
Accumulated deficit (2,957,874) (2,860,218)
Treasury stock (82,573) (82,573)
___________ ___________
Total stockholders' equity 102,188 199,844
___________ ___________
Total liabilities and stockholders' equity $ 384,646 $ 449,027
----------- -----------
<FN>
See accompanying Notes to Consolidated Financial Statements.
</TABLE>
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<TABLE>
TAURUS PETROLEUM, INC.
AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED)
<CAPTION>
Three Months Ended Nine Months Ended
June 30, June 30,
1995 1994 1995 1994
<S> <C> <C> <C> <C>
Operating Revenue:
Oil and Gas sales $ 38,050 $ 69,882 $117,210 $186,866
Administrative overhead
and management fees 2,382 2,502 7,146 8,650
________ ________ ________ ________
40,432 72,384 124,356 195,516
Cost and Expenses:
Lease operating,
including taxes 25,899 26,475 98,836 89,660
Intangible drilling costs - - 11,146 -
Depreciation and depletion 10,095 12,046 30,285 36,134
General and administrative 43,003 38,210 121,888 124,998
________ ________ ________ ________
78,997 76,731 262,155 250,792
________ ________ ________ ________
Loss from operations (38,565) ( 4,347) (137,799) (55,276)
Other income (expense)
Interest Expense (2,295) (2,011 (8,135) (5,706)
Gain on sale of property
and equipment 48,278 - 48,278 -
Other - 1 - 4
________ ________ ________ ________
Net gain (loss) $ 7,418 $ ( 6,357) $ (97,656) $ (60,978)
-------- ---------- ---------- ----------
Net gain (loss)per
common share $ * $ * $ * $ *
-------- ---------- ---------- ----------
Weighted average number of
common shares outstanding 60,307,749 59,954,042 60,307,749 59,954,042
---------- ---------- ---------- ----------
<FN>
* Net loss per common share is less than one cent.
See accompanying Notes to Consolidated Financial Statement
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<TABLE>
TAURUS PETROLEUM, INC.
AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED)
<CAPTION>
Nine Months ended
June 30,
1995 1994
<S> <C> <C>
Cash flows from operating activities:
Net loss $ (97,656) $ (60,978)
Adjustments to reconcile net
loss to net cash used in
operating activities:
Depreciation and depletion 30,285 36,134
(Gain) loss from sales of property
and equipment (48,278) -
Purchased property interest for
accounts receivable - 11,472
Decrease (increase) in
accounts receivable 9,042 (12,147)
Decrease (increase) in other assets 6,317 (10,061)
Increase in accounts payable 33,275 72,091
________ ________
Net cash used in operating
activities (67,015) 13,567
Cash flows from investing activities:
Proceeds from sale of property
and equipment 70,000 -
Credits (Additions) to property
and equipment (378) (3,248)
________ ________
Net cash provided by (used)
investing activities 69,622 (3,248)
Cash flows from financing
activities:
Repayment notes payable related parties - (13,048)
________ ________
Net cash used in financing
activities - (13,048)
________ ________
Net increase (decrease) in cash 2,607 (2,729)
Cash and cash equivalents
Beginning of period 900 7,241
________ ________
End of period $ 3,507 $ 4,512
-------- --------
Supplemental disclosure of cash
flow information - cash paid
during the period for interest $ 1,464 $ 7,458
<FN>
See accompanying Notes to Consolidated Financial Statements.
</TABLE>
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TAURUS PETROLEUM, INC.
AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(UNAUDITED)
June 30, 1995
General
The accounting policies followed by Taurus Petroleum, Inc. and Subsidiaries
(the "Company") are set forth in the notes to the Company's audited financial
statements in the report on Form 10-K filed for the year ended September 30,
1994, which is incorporated herein by reference. Such policies have been
continued without change. Also, refer to the notes with those financial
statements for additional details of the Company's financial condition, results
of operations and cash flows. All material items disclosed within this report.
Any and all adjustments are of a "normal recurring nature".
In the opinion of management, the accompanying interim unaudited financial
statements contain all adjustments necessary to present fairly the Company's
consolidated financial position as of June 30, 1995, and the results of its
operations and cash flows for the nine month periods ended June 30, 1995 and
1994.
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS.
Results of Operations
Oil and gas revenue decreased $ 31,882 for the three month period ended
June 30, 1995 as compared to the same three month period ended in Fiscal
1994. This decrease in revenue is a result of the sell of one property,
declines in production and the recent decline in oil & gas prices.
Administrative overhead revenue in the third quarter of Fiscal 1995
decreased $ 120 compared to the third quarter of Fiscal 1994. This decrease was
primarily due to the plugging of outside operated properties of which Taurus
received fees for re-billing. This has resulted in a $ 1,504 decrease for the
current nine month period ended June 30, 1995 as compared to the same period in
Fiscal 1994.
Lease operating expenses decreased $ 576 for the three month period
as compared to the same period of 1994 but increased $ 9,176 for the
same nine month period in 1994. The decrease in this quarter is due to the
Company selling one property during this quarter. The increase in the nine
month period was due to several outside operated properties undergoing major
operational projects.
The Company's general and administrative expenses increased $ 4,793 for the
three month period ended June 30, 1995 and decreased $ 3,110 for the nine month
period as compared to the same periods in the prior year. This increase is
attributable to franchise taxes being paid in this period along with tax
accounting expenses.
The Company had a net gain of $ 7,418 for the three month period compared
to the $ 6,357 loss for the same period of 1994.
<PAGE>
Liquidity and Capital Resources
The Company's current liabilities exceed current assets. The increase
for the nine month period is $57,196. This is a result of an increase in
Accounts Payable and a decrease in Accounts Receivable.
Net cash provided from investing activities equaled $ 69,622 in the
month period ended June 30, 1995 as compares to $ 3,248 used for the same
period in 1994.
Current assets decreased by $ 12,752 in the first nine month of Fiscal
1995, mainly due to a decrease in accounts receivable. Cash increased $2,607
for the nine month period.
The Company's primary source of cash, is from current operations. If
needed, cash from the sale of property and equipment will be used to provide
cash flow.
Management is aware that positive steps are needed to grow the Company.
Management is pursuing various options to attract capital. The options being
considered and pursued include, further infusions of cash and producing oil and
gas properties by the controlling shareholders, bank debt secured by the
Company's producing oil and gas properties, and acquisitions and mergers with
other oil and gas related companies.
<PAGE>
PART II. OTHER INFORMATION
ITEM 1. LEGAL PROCEEDING
None.
ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITIES HOLDERS
There were no matters submitted during the third quarter of Fiscal 1994 to
a vote of security holders, through the solicitation of proxies or otherwise.
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K
(a) No exhibits are filed with this report.
(b) No reports on Form 8-K have been filed during the quarter ended June 30,
1994.
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SIGNATURES
Pursuant to the requirements of Section 13 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.
TAURUS PETROLEUM, INC.
Date: August 10, 1995 By: /s/ Thomas P. McDonnell
Thomas P. McDonnell, President
and Treasurer and duly authorized
signatory on behalf of the Registrant
<PAGE>
INDEX TO EXHIBITS
(2) Plan of Acquisition, Reorganization, Arrangement, Liquidation or Succession.
Not applicable.
(4) Instruments Defining the Rights of Security Holders.
The form of Common Stock share certificate (Exhibit 4 to September 30, 1984,
Annual Report on Form 10-K and Articles V, VI, VII and XIV of the Amended
Articles of the Form 10-K for the Fiscal year ended September 30, 1986) is
incorporated herein by reference.
(11) Statement Regarding Computation of Per Share Earnings. Not applicable.
(15) Letter Regarding Unaudited Interim Financial Information. Not applicable.
(16) Letter Regarding Change in Certifying Accountant. Not Applicable.
(18) Letter Regarding Change in Accounting Principles. Not applicable.
(19) Previously Unfilled Documents. Not applicable.
(20) Report Furnished to Security Holders. Not applicable.
(23) Published Report Regarding Matters Submitted to Vote of Security Holders.
Not applicable.
(24) Consent of Experts and Counsel. Not applicable.
(25) Power of Attorney. Not applicable.
(28) Additional Exhibits. Not applicable.
