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, 1996 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.
412 N. Sam Houston Pkwy Houston, TX 77060
(Address of Principal Executive offices) (Zip Code)
(713) 445-7755
(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 14, 1996, 59,954,042 shares of the registrant's Common Stock were
outstanding.
Page 1 of 9
<PAGE>
TAURUS PETROLEUM, INC.
Quarterly Report on Form 10-Q
June 30, 1996
INDEX
PAGE
PART I. FINANCIAL INFORMATION
Item 1. Financial Statements
Consolidated Balance Sheets, June 30, 1996 3
and September 30, 1995.
Consolidated Statements of Operations, Three Months 4
and Nine Months Ended June 30, 1996 and 1995.
Consolidated Statements of Cash Flows, Nine Months 5
Ended June 30, 1996 and 1995.
Notes to Consolidated Financial Statements 6
Item 2 Management's Discussion and Analysis of Financial 6
Condition and Results of Operations
PART II. OTHER INFORMATION
Item 1. Legal Proceedings 7
Item 4. Submission of Matters to a Vote of Security Holders 7
Item 6. Exhibits and Reports on Form 8-K 7
Signatures 8
Index to Exhibits 9
<PAGE>
<TABLE>
PART I. FINANCIAL INFORMATION
Item 1. Financial Statements
TAURUS PETROLEUM, INC.
AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
<S> <C> <C>
June 30, September 30,
1996 1995
Unaudited
AssetsCurrent assets:
Cash and cash equivalents $ 4,756 $ 2,174
Accounts receivables 5,639 30,459
Other current assets 24,725 17,163
---------- ----------
35,120 49,796
Property and equipment, at cost
successful efforts method 393,262 2,199,325
Less accumulated depreciation and
depletion (392,812) 1,888,241
Net property and equipment 450 311,084
---------- ----------
$ 35,570 $ 360,880
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable $ 15,729 $ 168,396
Notes payable related parties - 21,922
Undistributed oil and gas sales (5,994) 13,451
Other current liabilities - 1,965
Total current liabilities 9,735 205,734
Long term liabilities:
Notes payable related parties - 92,358
Stockholders' equity:
Common stock 60,307 60,307
Additional paid-in capital 3,111,844 3,082,328
Accumulated deficit (3,063,743) (2,997,294)
Treasury stock (82,573) (82,573)
Total stockholders' equity 25,835 62,788
Total liabilities and stockholders' equity $ 35,570 $ 360,880
See accompanying Notes to Consolidated Financial Statements.
</TABLE>
<PAGE>
<TABLE>
TAURUS PETROLEUM, INC.
AND SUBSIDIARIES
Consolidated Statements Of Operations
(Unaudited)
Three Months Ended Nine Months Ended
June 30, June 30,
<S> <C> <C> <C> <C>
1996 1995 1996 1995
Operating Revenue:
Oil and Gas sales $ (6,227) $ 38,050 $ 82,626 $ 117,210
Administrative overhead
and management fees 794 2,382 5,558 7,146
-------- -------- -------- --------
(5,433) 40,432 88,184 124,356
Cost and Expenses:
Lease operating,
including taxes 6,307 25,899 59,414 98,836
Intangible drilling costs - - - 11,146
Depreciation and depletion - 10,095 12,840 30,285
General and administrative (623) 43,003 76,278 121,888
-------- -------- -------- --------
5,684 78,997 148,532 262,155
-------- -------- -------- --------
Loss from operations (1,117) (38,565) (60,348) (137,799)
Other income (expense)
Interest Expense 3,635 (2,295) (482) (8,135)
Gain on sale of property
and equipment - 48,278 - 48,278
Other - - 56 -
Net gain (loss) $ 2,518 $ 7,418 $ (60,774) $ (97,656)
-------- -------- ----------- ----------
Net gain (loss) per
common share $ * $ * $ * $ *
-------- -------- ---------- ----------
Weighted average number
of common shares
outstanding 60,307,749 60,307,749 60,307,749 60,307,749
* Net loss per common share is less than one cent.
See accompanying Notes to Consolidated Financial Statement
</TABLE>
<PAGE>
TAURUS PETROLEUM, INC.
AND SUBSIDIARIES
Consolidated Statements Of Cash Flows
(Unaudited)
<TABLE>
Nine Months ended
June 30,
<S> <C> <C>
1996 1995
Cash flows from operating activities:
Net loss $ (36,953) $ (97,656)
Adjustments to reconcile net
loss to net cash used in
operating activities:
Depreciation and depletion (1,888,241) 30,285
(Gain) loss from sales of property
and equipment - (48,278)
Allowance for bad debt (17,009) -
Decrease (increase) in
accounts receivable 41,829 9,042
Decrease (increase) proved and unproved
properties 2,163,215 -
Decrease (increase) other properties
& equipment 35,660 -
Decrease (increase) in other assets (7,562) 6,317
Increase in accounts payable (288,357) 33,275
Net cash used in operating
activities 2,582 (67,015)
Cash flows from investing activities:
Proceeds from sale of property
and equipment - 70,000
Credits (Additions) to property
and equipment - ( 378 )
Net cash provided by (used)
investing activities - 69,622
Net increase (decrease) in cash 1,518 2,607
Cash and cash equivalents
Beginning of period 2,174 900
--------- ---------
End of period $ 4,756 $ 3,507
----------- -----------
Supplemental disclosure of cash
flow information - cash paid
during the period for interest $ - $ 1,464
</TABLE>
See accompanying Notes to Consolidated Financial Statements.
<PAGE>
TAURUS PETROLEUM, INC.
AND SUBSIDIARIES
Notes to Consolidated Financial Statements
(Unaudited)
June 30, 1996
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,
1993, 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 change 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 June 30, 1996, and the results of its
operations and cash flows for the nine month periods ended June 30, 1996 and
1995.
Item 2. Management's Discussion and Analysis of Financial Condition and
Results of Operations.
Results of Operations
Oil and Gas revenue decreased to a negative of $ 6,227 for the period ended
June 30, 1996. This decrease in revenue is due to adjustment of accruals on
properties sold.
The Company had $ 794 administrative income.
Lease operator expenses and administrative income both decreased as a
result of asset rationalization of oil and gas properties owned by the Company.
Liquidity and Capital Resources
Management is aware that positive steps are needed to grow the Company. In
an effort to liquidate the liabilities of the Company, the oil and gas
properties have been sold or exchanged. Said liabilities exceeded the asset
value of the Company.
Management intends to utilize the Company as a vehicle to acquire other
profitable business ventures primarily in the real estate and entertainment
industries.
<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 1995 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) A Form 8-K has been filed.
<PAGE>
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 21, 1996 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 Unfiled 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.
<TABLE> <S> <C>
<ARTICLE> 5
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> SEP-30-1996
<PERIOD-END> JUN-30-1996
<CASH> 4,756
<SECURITIES> 0
<RECEIVABLES> 5,639
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 24,725
<PP&E> 393,262
<DEPRECIATION> 392,812
<TOTAL-ASSETS> 35,570
<CURRENT-LIABILITIES> 9,735
<BONDS> 0
<COMMON> 60,307
0
0
<OTHER-SE> 34,427
<TOTAL-LIABILITY-AND-EQUITY> 35,570
<SALES> 82,626
<TOTAL-REVENUES> 88,184
<CGS> 59,414
<TOTAL-COSTS> 72,254
<OTHER-EXPENSES> 76,278
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 482
<INCOME-PRETAX> 60,774
<INCOME-TAX> 0
<INCOME-CONTINUING> 60,348
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 60,774
<EPS-PRIMARY> 0
<EPS-DILUTED> 0
</TABLE>
