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 March 31, 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.
P. O. Box 790710, San Antonio, Texas 78279
(Address of Principal Executive offices) (Zip Code)
(210) 497-0300
(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 May 13, 1996. 59,954,042 shares of the registrant's Common Stock were
outstanding.
<PAGE>
PART I. FINANCIAL INFORMATION
Item 1. Financial Statements
TAURUS PETROLEUM, INC.
AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
March 31, September 30,
1996 1995
---------- ----------
Unaudited
Assets
Current assets:
Cash and cash equivalents $ 1,110 $ 2,174
Accounts receivables 41,335 30,459
Other current assets 31,238 17,163
---------- ----------
73,683 49,796
Property and equipment, at cost
successful efforts method 2,199,325 2,199,325
Less accumulated depreciation and
depletion 1,901,081 1,888,241
---------- ----------
Net property and equipment 298,244 311,084
$ 371,927 $ 360,880
---------- -----------
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable $ 230,970 $ 168,396
Notes payable related parties 21,922 21,922
Undistributed oil and gas sales 13,739 13,451
Other current liabilities 5,502 1,965
---------- ----------
Total current liabilities 272,133 205,734
Long term liabilities:
Notes payable related parties 92,358 92,358
Stockholders' equity:
Common stock 60,307 60,307
Additional paid-in capital 3,082,328 3,082,328
Accumulated deficit (3,052,626) (2,997,294)
Treasury stock (82,573) (82,573)
----------- -----------
Total stockholders' equity 7,436 62,788
----------- -----------
Total liabilities and stockholders' equity $ 382,822 $ 360,880
----------- -----------
See accompanying Notes to Consolidated Financial Statements.
<PAGE>
TAURUS PETROLEUM, INC.
AND SUBSIDIARIES
Consolidated Statements Of Operations
(Unaudited)
Three Months Ended Six Months Ended
March 31, March 31,
1996 1995 1996 1995
--------- -------- -------- -------
Operating Revenue:
Oil and Gas sales $ 42,850 $ 31,882 $ 88,853 $ 79,160
Administrative overhead
and management fees 2,382 2,382 4,764 4,764
---------- ---------- ---------- ----------
45,232 34,261 93,617 83,924
Cost and Expenses:
Lease operating,
including taxes 25,939 31,144 53,107 72,937
Intangible drilling costs - - - 11,146
Depreciation and depletion 5,010 10,094 12,840 20,190
General and administrative 36,127 40,075 76,901 78,885
-------- --------- ---------- ---------
67,076 81,313 142,248 183,158
-------- --------- ---------- ---------
Loss from operations (21,844) (47,049) (49,231) (99,234)
Other income (expense)
Interest Expense (2,304) (3,841) (4,118) (5,840)
Other - - - -
---------- ---------- ---------- ----------
Net loss $ ( 24,148) $ (50,890) $ (53,349) $(105,074)
---------- ----------- ----------- ----------
Net 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
<PAGE>
TAURUS PETROLEUM, INC.
AND SUBSIDIARIES
Consolidated Statements Of Cash Flows
(Unaudited)
Six Months ended
March 31,
1996 1995
Cash flows from operating activities:
Net loss $ (55,352) $ (105,074)
Adjustments to reconcile net
loss to net cash used in
operating activities:
Depreciation and depletion 12,840 20,190
Decrease (increase) in
accounts receivable (10,876) 9,975
Decrease (increase) in other assets (14,075) 337
Increase in accounts payable 66,399 74,897
Net cash provided by operating
activities (1,064) 325
Cash flows from investing activities:
Credits (Additions) to property
and equipment - (378)
Net cash used in
investing activities - (378)
Net increase (decrease) in cash (53) 53
Cash and cash equivalents
Beginning of period 2,174 900
End of period $ 1,110 $ 847
Supplemental disclosure of cash
flow information - cash paid
during the period for interest $ 1,064 $ 1,033
See accompanying Notes to Consolidated Financial Statements.
<PAGE>
TAURUS PETROLEUM, INC.
AND SUBSIDIARIES
Notes to Consolidated Financial Statements
(Unaudited)
March 31, 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,
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 insclosed 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 March 31, 1996, and the results of its
operations and cash flows for the six month periods ended March 31, 1994 and
1995.
Item 2. Management's Discussion and Analysis of Financial Condition and
Results of Operations.
Results of Operations
Oil and gas revenue increased $ 10,968 for the three month period ended
March 31, 1996 as compared to the same three month period ended in Fiscal 1995.
This increase in revenue is a result of the recent increase in oil and gas
prices. The higher prices are generally reflected in the Company's accruals and
have not yet been received as cash.
Administrative overhead revenue in the second quarter of Fiscal 1996
remained the same compared to the second quarter of Fiscal 1995.
Lease operating expenses decreased $ 5,205 and $ 19,830 respectively for
the three and six month periods ended March 31, 1996 as compared to the same
periods in 1995.
The Company's general and administrative expenses decreased $ 3,948 for the
three month period ended March 31, 1996 and decreased $ 1,984 for the six month
period ended March 31, 1996 as compared to the same periods in the prior year.
This decrease has followed the Company's trend of a continued decrease in ("G
and A") for the past several years.
The Company's net loss decreased $ 26,742 for the three month period and
increased $ 51,725 for the six month period ended March 31, 1996 as compared to
the same periods of 1995. This increase is the result of decreased revenue and
increased expenses.
<PAGE>
Liquidity and Capital Resources
The Company's current assets increased by $ 23,887 as compared to September
30, 1995. This is primarily due to a decrease in accounts receivable of
$ 14,075.
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 managements 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 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 second 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.
(b) No reports on Form 8-K have been filed during the quarter ended
March 31, 1996.
<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: May 13, 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.
<PAGE>
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