U.S. SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-QSB
(Mark One)
x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d)
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OF THE SECURITIES EXCHANGE ACT OF 1934
For Quarterly period ended Commission File
February 29, 2000 Number 0-6529
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d)
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OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from to
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DOUBLE EAGLE PETROLEUM AND MINING CO.
(Exact name of small business issuer as specified
in its charter)
WYOMING 83-0214692
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
777 Overland Trail, P.O. Box 766
Casper, Wyoming 82602
(Address of principal executive offices)
307-237-9330
(Issuer's telephone number)
NOT APPLICABLE
(Former name, former address, and former fiscal year, if changed
since last report)
Check whether the issuer (1) filed all reports required to be filed by Section
13 or 15(d) of the Exchange Act during the past 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
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Common stock, 4,797,641 shares having a par value of $.10 per share were
outstanding as of April 14, 2000.
Transitional Small Business Disclosure format (check one):
Yes No X
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DOUBLE EAGLE PETROLEUM AND MINING COMPANY
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INDEX
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PART I. FINANCIAL INFORMATION:
Item 1. Financial Statements
Balance Sheets as of February 29, 2000
and August 31, 1999 I.
Statements of Operations for the three and six months
ended February 29, 2000 and February 28, 1999 II.
Statements of Cash Flows for the six months
ended February 29, 2000 and February 28, 1999 III.
Notes to Financial Statements IV.
Item 2. Management's Discussion and Analysis of
Financial Condition and Results of
Operations V.
PART II. OTHER INFORMATION
Item 4. Submission of Matters to a Vote of Security
Holders VI.
Item 6. Exhibits and Report on Form 8-K VI.
Signatures VII.
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PART I
FINANCIAL INFORMATION
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I.
DOUBLE EAGLE PETROLEUM AND MINING COMPANY
BALANCE SHEETS
FEBRUARY 29, 2000 AND AUGUST 31, 1999
February 29, August 31,
2000 1999
ASSETS (Unaudited)
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CURRENT ASSETS
Cash and cash equivalents $ 144,507 $ 237,755
Accounts receivable 456,025 295,985
Prepaid expenses and deposits 4,684 9,369
Total Current Assets 605,216 543,109
PROPERTIES AND EQUIPMENT
Undeveloped properties 739,925 721,109
Developed properties 6,155,304 5,091,135
Corporate and other 262,317 254,295
7,157,546 6,066,539
Less accumulated depreciation, depletion, and amortization (2,527,446 ) (2,322,360 )
Net Properties and Equipment 4,630,100 3,744,179
INVESTMENTS AND OTHER ASSETS 75,684 70,884
TOTAL ASSETS $ 5,311,000 $ 4,358,172
LIABILITIES
CURRENT LIABILITIES
Accounts payable $ 86,192 $ 225,732
Accrued production taxes 21,430 17,289
Line of credit 500,000 307,898
Long-term debt - current portion - 41,728
Total Current Liabilities 607,622 592,647
LONG-TERM DEBT - 158,773
Total Liabilities 607,622 751,420
STOCKHOLDERS' EQUITY
Common stock, $.10 par value; - 10,000,000 shares,
authorized; issued and outstanding 4,797,641 shares
as of February 29, 2000 and 4,365,401 shares as of August 31, 1999 479,764 436,540
Capital in excess of par value 3,747,488 2,667,276
Retained earnings 476,126 502,936
Total Stockholders' Equity 4,703,378 3,606,752
TOTAL LIABILITIES AND
STOCKHOLDER'S EQUITY $ 5,311,000 $ 4,358,172
<FN>
See accompanying notes to financial statements.
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II.
DOUBLE EAGLE PETROLEUM AND MINING COMPANY
STATEMENTS OF OPERATIONS
(UNAUDITED)
For the Three Months Ended For the Six Months Ended
February 29, February 28, February 29, February 28,
2000 1999 2000 1999
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REVENUES
Oil and gas sales $ 405,495 $ 167,719 $ 707,514 $ 348,867
Sales of nonproducing leases - - 4,125 97,619
Other income 12,931 358 13,210 423
Total 418,426 168,077 724,849 446,909
COSTS AND EXPENSES
Production costs 75,796 54,180 123,485 76,350
Production taxes 49,770 22,277 91,711 46,374
Cost of leases sold - - 1,060 -
Exploration expenses 37,558 34,856 61,300 117,397
Write offs and abandonments 1,190 256 1,440 11,048
General and administrative 171,213 116,353 274,721 205,877
Depreciation and depletion 116,043 49,455 205,086 98,910
Total 451,570 277,377 758,803 555,956
(LOSS) FROM OPERATIONS (33,144) (109,300) (33,954) (109,047)
OTHER INCOME (EXPENSE)
Interest income 3,600 2,712 12,074 4,641
Interest expense (1,889) (1,661) (4,930) (1,661)
1,711 1,051 7,144 2,980
(LOSS) BEFORE INCOME TAXES (31,433) (108,249) (26,810) (106,067)
INCOME TAX (BENEFIT)
Current - - - -
Deferred - - - -
Total - - - -
NET (LOSS) $ (31,433) $ (108,249) $ (26,810) $ (106,067)
BASIC/DILUTED
(LOSS) PER SHARE $ - $ (.03) $ - $ (.03)
AVERAGE SHARES OUTSTANDING 4,771,150 4,253,320 4,688,143 4,092,100
DIVIDENDS PER SHARE OF COMMON STOCK $ .00 $ .00 $ .00 $ .00
<FN>
See accompanying notes to financial statements.
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III.
DOUBLE EAGLE PETROLEUM AND MINING COMPANY
STATEMENTS OF CASH FLOWS
FOR THE SIX MONTHS ENDED FEBRUARY 29, 2000 AND FEBRUARY 28, 1999
2000 1999
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OPERATING ACTIVITIES:
Net (loss) $ (26,810) $ (106,067)
Charges to income not requiring cash:
Depreciation and depletion 205,086 98,910
Gain on sale of properties (3,065) -
Abandoned properties 1,440 11,048
Decrease (increase) in operating assets:
Accounts receivable (160,040) 11,363
Prepaid expenses and deposits (115) 20,000
Increase (decrease) in operating liabilities:
Accounts payable (139,540) 10,805
Accrued production taxes 4,141 (5,527)
Net cash (used in) provided by operating activities (118,903) 40,532
INVESTING ACTIVITIES:
Proceeds from sale of properties 4,125 -
Purchases of properties (1,093,507) (510,720)
Net cash (used in) investing activities (1,089,382) (510,720)
FINANCING ACTIVITIES:
Proceeds from private placement 1,115,248 514,688
Issuance of common stock 8,188 62,500
Borrowings on line of credit arrangement 192,102 -
Payments on long-term debt (200,501) -
Net cash provided by financing activities 1,115,037 577,188
(DECREASE) INCREASE IN CASH (93,248) 107,000
CASH AND CASH EQUIVALENTS
Beginning of period 237,755 97,429
End of period $ 144,507 $ 204,429
SUPPLEMENTAL DISCLOSURES OF CASH AND
NON-CASH TRANSACTIONS
Cash paid during the period for interest $ 4,930 $ 1,661
<FN>
See accompanying notes to financial statements.
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IV.
DOUBLE EAGLE PETROLEUM AND MINING COMPANY
NOTES TO FINANCIAL STATEMENTS
1.Summary of Significant Accounting Policies
Refer to the Company's annual financial statements for the year ended August 31,
1999, for a description of the accounting policies which have been continued
without change. Also, refer to the footnotes with those annual statements for
additional details of the Company's financial condition, results of operations,
and cash flows. The details in those notes have not changed except as a result
of normal transactions in the interim.
2.Management Representation
In management's opinion, all adjustments necessary for a fair presentation are
reflected in the interim financial statements. Such adjustments are of a normal
recurring nature.
3.Interim Results of Operations
The results of operations for the six months ended February 29, 2000 are not
necessarily indicative of the operating results for the full year.
4.Common Stock and Warrants
During the six months ended February 29, 2000, the Company offered through
private placement a maximum of 400,000 shares for $2.75 per share. All shares
were sold during the period.
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V.
DOUBLE EAGLE PETROLEUM AND MINING COMPANY
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
RESULTS OF OPERATIONS
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Year to Date Results of Operations Compared to Prior Year to Date Results
- -------------------------------------------------------------------------
Oil and gas sales increased by $358,647 or 103%, as a result of a combination of
an increase in production and an increase in oil and gas pricing. Sales of non-
producing properties decreased by $93,494. Production costs and taxes and
depreciation and depletion experienced a corresponding increase of $198,648 or
90%. Exploration costs declined by $56,097 or 52%.
Current Quarter Compared to Previous Quarter
- --------------------------------------------
Revenues from oil and gas sales increased by $103,476 or 34% over the previous
quarter, due primarily to an increase in production. Production costs and taxes
and depreciation and depletion increased by $62,936 or 35%. Shareholder related
expenses were the primary cause of a 65% increase in general and administrative
expenses.
Current Quarter Compared to Corresponding Quarter of Prior Year
- ---------------------------------------------------------------
The Company experienced a net loss of $31,433 for the current quarter as
compared to a net loss of $109,300 for the corresponding quarter of one year
ago. Oil and gas sales increased by $237,776 or 142% over the corresponding
quarter of the prior year as a result of an increase in production and an
increase in oil and gas pricing. Production costs and taxes and depreciation and
depletion experienced a corresponding increase of $115,697 or 92%.
Financial Condition
- -------------------
The Company received $1,115,000 in proceeds from the private placement of shares
of the Company's stock. The primary use of these funds was the acquisition and
development of oil and gas properties. The Company paid off $200,000 of long-
term debt while borrowing a net $192,000 against its line of credit. Overall,
the Company's working capital increased by $47,000.
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VI.
PART II. OTHER INFORMATION
ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
During the annual stockholders' meeting on January 26, 2000 the following
directors were elected:
Stephen H. Hollis
Ken M. Daraie
Thomas J. Vessels
Lovelett, Hargens & Skogen, P.C. was approved as auditor for the year ending
August 31, 2000, with 3,240,444 votes for, 758 votes against, and 11,198
abstaining.
ITEM 6. EXHIBITS AND REPORT ON FORM 8-K
No reports on Forms 8-K were filed during the period covered by this report.
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VII.
SIGNATURES
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.
DOUBLE EAGLE PETROLEUM AND MINING COMPANY
(Registrant)
/s/ Stephen H. Hollis
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Stephen H. Hollis
Treasurer and Principal Financial Officer
Date: April 14, 2000
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<ARTICLE> 5
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> AUG-31-2000
<PERIOD-END> FEB-29-2000
<CASH> 144,507
<SECURITIES> 0
<RECEIVABLES> 456,025
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 605,216
<PP&E> 7,157,546
<DEPRECIATION> 2,527,446
<TOTAL-ASSETS> 5,311,000
<CURRENT-LIABILITIES> 607,622
<BONDS> 0
0
0
<COMMON> 479,764
<OTHER-SE> 4,223,614
<TOTAL-LIABILITY-AND-EQUITY> 5,311,000
<SALES> 707,514
<TOTAL-REVENUES> 724,849
<CGS> 758,803
<TOTAL-COSTS> 758,803
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 4,930
<INCOME-PRETAX> (26,810)
<INCOME-TAX> 0
<INCOME-CONTINUING> (26,810)
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (26,810)
<EPS-BASIC> 0
<EPS-DILUTED> 0
</TABLE>
