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 December 31, 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 I.R.S. 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 January 31, 1996, 59,954,042 shares of the registrant's Common
Stock were outstanding.
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PART I. FINANCIAL INFORMATION
Item 1. Financial Statements
TAURUS PETROLEUM, INC.
AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
- -----------------------------------------------------------------------------
December 31, September 30,
1995 1995
Unaudited
<S> <C> <C>
Assets
Current assets:
Cash and cash equivalents $ 1,337 $ 2,174
Accounts receivables 30,151 30,459
Other current assets 32,638 17,163
------------- --------------
Total current assets 64,126 49,796
Property and equipment, at cost
successful efforts method 2,199,325 2,199,325
Less accum. depr. and depl. 1,896,07 1,888,241
------------- --------------
Net property and equipment 303,254 311,084
_____________ ______________
Total assets $ 367,380 $ 360,880
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable $ 201,675 $ 168,396
Notes payable related parties 20,688 21,922
Undistributed oil and gas sales 14,070 13,451
Other current liabilities 3,768 1,965
------------ -------------
Total current liabilities 240,201 205,734
Long term liabilities:
Notes payable related parties 93,592 92,358
Stockholders' equity:
Common stock 60,307 60,307
Additional paid-in capital 3,082,328 3,082,328
Accumulated deficit (3,026,475) (2,997,294)
Treasury stock (82,573) (82,573)
------------- -------------
Total stockholders' equity $ 33,587 $ 62,788
------------ -------------
Total liabilities and stockholders' equity $ 367,380 $ 360,880
------------ -------------
See accompanying Notes to Consolidated Financial Statements.
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<TABLE>
TAURUS PETROLEUM, INC.
AND SUBSIDIARIES
Consolidated Statements Of Operations
(Unaudited)
Three
Months Ended
December 31,
1995 1994
---------- ---------
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Operating revenue:
Oil and gas sales $ 46,004 $ 47,278
Administrative overhead
and management fees 2,382 2,382
------------ ----------
48,386 49,660
Costs and expenses:
Lease operating,
including taxes 27,168 41,793
Intangible drilling costs - 11,146
Depreciation and depletion 7,830 10,096
General and administrative 40,775 38,810
----------- ----------
Total costs and expenses 75,773 101,845
----------- ----------
Loss from operations (27,387) (58,185)
Other Income (Expenses):
Interest Expense ( 1,814) ( 1,999)
Other - -
------------ -----------
Total Other Income (Expenses) ( 1,814) ( 1,999)
------------ -----------
Net loss $ ( 29,201) $ ( 54,184)
------------- -----------
Net loss per common share $ * $ *
------------- -----------
Weighted average number of
common shares outstanding 60,307,749 60,307,749
_____________ ____________
* Net loss per common share is less than one cent.
See accompanying Notes to Consolidated Financial Statement
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TAURUS PETROLEUM, INC.
AND SUBSIDIARIES
Consolidated Statements Of Cash Flows
(Unaudited)
Three
Months ended
December 31,
1995 1994
---------- ----------
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Cash flows from operating activities:
Net loss $ (29,201) $ (54,184)
Adjustments to reconcile net
loss to net cash provided
by operating activities:
Depreciation and depletion 7,830 10,096
Conversion of accounts payable
to equity and notes payable - -
(Increase) decrease in
accounts receivable 308 2,736
(Increase) decrease prepaid expenses (15,475) 3,642
Increase (decrease) accounts payable 35,701 41,430
---------- ---------
Net cash provided by (used in)
operating activities (837) 3,720
Cash flows from investing activities:
Capital expenditures - ( 217)
---------- ----------
Net increase (decrease) in cash (837) 3,503
Cash and cash equivalents
Beginning of period 2,174 900
---------- ----------
End of period $ 1,337 $ 4,403
Supplemental disclosure of cash
flow information - cash paid
during the period for interest $ - $ -
See accompanying Notes to Consolidated Financial Statement.
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TAURUS PETROLEUM, INC.
AND SUBSIDIARIES
Notes to Consolidated Financial Statements
(Unaudited)
December 31, 1995 and 1994
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, 1995, 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 included
in those notes have not changed except as a result of normal
transactions in the interim, or as 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
December 31, 1995, and the results of its operations and cash flows
for the three month periods ended December 31, 1995 and 1994.
Item 2. Management's Discussion and Analysis of Financial
Condition and Results of Operations.
Results of Operations
Consolidated net losses are $ 29,201 and $ 54,184 for the
first quarter of Fiscal 1996 and 1995, respectively. This decrease
in net loss is due primarily to the decrease in oil and gas
operating expense.
Administrative overhead revenue in the first quarter of Fiscal
1996 remained the same compared to the first quarter of Fiscal
1995.
The Company's depreciation and depletion ("D and D") decreased $
2,266. The decrease in the first quarter of Fiscal 1996 was the
result of production volumes being a smaller percentage of reserves
and the sell of one property last year.
The Company's general and administrative expenses increased $ 1,965
in the first quarter of Fiscal 1996.
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Liquidity and Capital Resources
The Company's current assets decreased by $ 16,952 as
compared to September 30, 1993. This is generally due to the write
down of accounts receivable.
The Company's increase in total current liabilities is due
primarily to an increase in accounts payable. This increase is
attributed to efforts to increase oil and gas production and
postponing payments of management fee's allowing cash flow to be
used in the increase of production efforts.
The Company's primary source of cash, other than the issuance
of Common Stock, has been through the sale of property and
equipment. 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 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
producing companies.
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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 first quarter of
Fiscal 1996 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.
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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: February 12, 1996 By: /s/ Thomas P. McDonnell
---------------------------------------
Thomas P. McDonnell, President
and Treasurer and duly authorized
signatory on behalf of the
Registrant.
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INDEX TO EXHIBITS
(2) Plan of Acquisition, Reorganization, Arrangement,
Liquidation or Succession.
Stock Purchase Agreement between Taurus Petroleum, Inc. and
Cornwall Petroleum Holdings, Inc. dated July 15, 1987 (Exhibit 2.1
to the Form 8-K dated July 15, 1987, of Taurus Petroleum, Inc.) is
incorporated herein by reference. Also included as a part of
Exhibit 2.1 are the first pages and signature pages of the
Agreements between Taurus Petroleum, Inc. ("TPI") and B.E. Cornish
& Associates, Inc. ("Associates") and between TPI and Coolibah
Petroleum, Inc.("Coolibah") and pages 1, 13, 21 and 38 of the
Agreement between TPI and J.D.C. McLean ("McLean"). All other pages
of the Agreement between TPI and Associates, Coolibah and McLean
are identical to those of the agreement between TPI and Cornwall
Petroleum Holdings, Inc.
(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.
Earnings per common share have been computed based upon the
weighted average number of shares outstanding during the period.
Stock options have been excluded from the computation because the
effect of such inclusion would be immaterial or antidilutive.
(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.
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<TABLE> <S> <C>
<ARTICLE> 5
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> SEP-30-1996
<PERIOD-END> DEC-31-1995
<CASH> 1,337
<SECURITIES> 0
<RECEIVABLES> 66,128
<ALLOWANCES> 17,009
<INVENTORY> 0
<CURRENT-ASSETS> 32,638
<PP&E> 2,199,325
<DEPRECIATION> 1,896,071
<TOTAL-ASSETS> 303,254
<CURRENT-LIABILITIES> 240,201
<BONDS> 93,592
0
0
<COMMON> 60,307
<OTHER-SE> 26,720
<TOTAL-LIABILITY-AND-EQUITY> 367,380
<SALES> 46,004
<TOTAL-REVENUES> 48,386
<CGS> 27,168
<TOTAL-COSTS> 34,998
<OTHER-EXPENSES> 40,775
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 1,814
<INCOME-PRETAX> (29,201)
<INCOME-TAX> 0
<INCOME-CONTINUING> (27,357)
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (29,201)
<EPS-PRIMARY> 0
<EPS-DILUTED> 0
</TABLE>
