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
November 30, 1999 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, 4,769,401 shares having a par value of $.10 per share were
outstanding as of January 13, 2000.
Transitional Small Business Disclosure format (check one):
Yes No X
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DOUBLE EAGLE PETROLEUM AND MINING COMPANY
INDEX
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PART I. FINANCIAL INFORMATION:
Item 1. Financial Statements
Balance Sheets as of November 30, 1999
and August 31, 1999 I.
Statements of Operations for the three months
ended November 30, 1999 and 1998 II.
Statements of Cash Flows for the three months
ended November 30, 1999 and 1998 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 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
NOVEMBER 30, 1999 AND AUGUST 31, 1999
November 30, August 31,
1999 1999
(Unaudited)
<S> <C> <C>
ASSETS
CURRENT ASSETS
Cash and cash equivalents $ 519,594 $ 237,755
Accounts receivable 219,829 295,985
Prepaid expenses and deposits 15,300 9,369
Total Current Assets 754,723 543,109
PROPERTIES AND EQUIPMENT
Undeveloped properties 710,354 721,109
Developed properties 5,507,575 5,091,135
Corporate and other 262,317 254,295
6,480,246 6,066,539
Less accumulated depreciation, depletion, and
amortization (2,411,403 ) (2,322,360 )
Net Properties and Equipment 4,068,843 3,744,179
INVESTMENTS AND OTHER ASSETS 75,684 70,884
TOTAL ASSETS $ 4,899,250 $ 4,358,172
LIABILITIES
CURRENT LIABILITIES
Accounts payable $ 176,611 $ 225,732
Accrued production taxes 14,429 17,289
Line of credit - 307,898
Long-term debt - current portion - 41,728
Total Current Liabilities 191,040 592,647
LONG-TERM DEBT - 158,773
Total Liabilities 191,040 751,420
STOCKHOLDERS' EQUITY
Common stock, $.10 par value; - 10,000,000 shares,
authorized; issued and outstanding 4,769,401 shares
as of November 30, 1999 and 4,365,401 shares as
of August 31, 1999 476,937 436,540
Capital in excess of par value 3,723,714 2,667,276
Retained earnings 507,559 502,936
Total Stockholders' Equity 4,708,210 3,606,752
TOTAL LIABILITIES AND
STOCKHOLDER'S EQUITY $ 4,899,250 $ 4,358,172
<FN>
See accompanying notes to financial statements.
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II.
DOUBLE EAGLE PETROLEUM AND MINING COMPANY
STATEMENTS OF OPERATIONS
FOR THE THREE MONTHS ENDED NOVEMBER 30, 1999 AND 1998
1999 1998
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REVENUES
Sales of oil and gas $ 302,019 $ 181,148
Sales of nonproducing leases 4,125 97,619
Other income 279 65
Total 306,423 278,832
COSTS AND EXPENSES
Production costs 47,689 22,170
Production taxes 41,941 24,097
Exploration expenses 23,742 82,541
Write offs and abandonments 250 10,792
General and administrative 103,508 89,524
Depreciation and depletion 89,043 49,455
Cost of nonproducing leases sold 1,060 -
Total 307,233 278,579
INCOME (LOSS) FROM OPERATIONS (810) 253
OTHER INCOME (EXPENSE)
Interest income 8,474 1,929
Interest expense (3,041) -
5,433 1,929
INCOME (LOSS) BEFORE INCOME TAXES 4,623 2,182
INCOME TAX EXPENSE - -
NET INCOME (LOSS) $ 4,623 $ 2,182
NET EARNINGS (LOSS) PER COMMON SHARE -
BASIC AND DILUTED $ - $ -
AVERAGE SHARES OUTSTANDING - BASIC 4,605,137 3,940,893
AVERAGE SHARES OUTSTANDING - DILUTED 4,842,754 3,940,893
DIVIDENDS PER SHARE OF COMMON STOCK $ - $ -
<FN>
See accompanying notes to financial statements.
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III.
DOUBLE EAGLE PETROLEUM AND MINING COMPANY
STATEMENTS OF CASH FLOWS
FOR THE THREE MONTHS ENDED NOVEMBER 30, 1999 AND 1998
1999 1998
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OPERATING ACTIVITIES:
Net income (loss) $ 4,623 $ 2,182
Charges to income not requiring cash:
Depreciation and depletion 89,043 49,455
Abandoned properties 250 10,792
Gain on sale of nonproducing leases (3,065) -
Decrease (increase) in operating assets:
Accounts receivable 76,156 (47,928)
Prepaid expenses and deposits (10,731) 20,000
Increase (decrease) in operating liabilities:
Accounts payable (49,121) 104,069
Accrued production taxes (2,860) (8,527)
Net cash provided by (used in) operating activities 104,295 130,043
INVESTING ACTIVITIES:
Sale of nonproducing properties 4,125 -
Purchases of properties (415,017) (402,628)
Net cash (used in) investing activities (410,892) (402,628)
FINANCING ACTIVITIES:
Proceeds from private placement 1,096,835 203,960
Principal payments on debt (508,399) -
Net borrowings on letter of credit arrangement - 175,000
Net cash provided by financing activities 588,436 378,960
INCREASE (DECREASE) IN CASH 281,839 106,375
CASH AND CASH EQUIVALENTS
Beginning of period 237,755 97,429
End of period $ 519,594 $ 203,804
SUPPLEMENTAL DISCLOSURES OF CASH AND
NON-CASH TRANSACTIONS
Cash paid during the period for interest $ 3,041 $ -
<FN>
See accompanying notes to financial statements.
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<PAGE> 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 period ended November 30, 1999, are not
necessarily indicative of the operating results for the full year.
4.Common Stock and Warrants
During the quarter ended November 30, 1999, the Company offered through private
placement a maximum of 400,000 shares for $2.75 per share. All shares were sold
during the quarter.
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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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Current quarter as compared to the corresponding quarter of one year ago
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The Company experienced net income of $4,623 for the current quarter as compared
to net income of $2,182 for the corresponding quarter of one year ago. Oil and
gas sales increased by 67% as a result of an increase in production and an
increase in oil and gas pricing. Production costs, taxes and depreciation and
depletion experienced a corresponding increase of 87%.
Sales of non-producing leases decreased by $93,000 and exploration expenses
decreased by $59,000. General and administrative expenses increased by $14,000.
FINANCIAL CONDITION
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During the current quarter, the Company received $1,097,000 in proceeds from the
private placement of shares of the Company's stock. The Company used these
proceeds to retire $508,000 in debt. In addition, the Company used $415,000
towards the development of producing properties. Working capital capital
increased by $613,000 during the current quarter.
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VI.
PART II. OTHER INFORMATION
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: January 13, 2000
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<TABLE> <S> <C>
<ARTICLE> 5
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> AUG-31-2000
<PERIOD-END> NOV-30-1999
<CASH> 519,594
<SECURITIES> 0
<RECEIVABLES> 219,829
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 754,723
<PP&E> 6,480,246
<DEPRECIATION> 2,411,403
<TOTAL-ASSETS> 4,899,250
<CURRENT-LIABILITIES> 191,040
<BONDS> 0
0
0
<COMMON> 476,937
<OTHER-SE> 4,231,273
<TOTAL-LIABILITY-AND-EQUITY> 4,899,250
<SALES> 306,144
<TOTAL-REVENUES> 306,423
<CGS> 0
<TOTAL-COSTS> 307,233
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 3,041
<INCOME-PRETAX> 4,623
<INCOME-TAX> 0
<INCOME-CONTINUING> 4,623
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 4,623
<EPS-BASIC> 0
<EPS-DILUTED> 0
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