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
May 31, 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 July 11, 2000.
Transitional Small Business Disclosure format (check one):
Yes No X
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DOUBLE EAGLE PETROLEUM AND MINING COMPANY
INDEX
Page
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PART I. FINANCIAL INFORMATION:
Item 1. Financial Statements
Balance Sheets as of May 31, 2000 (Unaudited)
and August 31, 1999 I.
Statements of Operations for the three and nine months
ended May 31, 2000 and 1999 (Unaudited) II.
Statements of Cash Flows for the nine months
ended May 31, 2000 and 1999 (Unaudited) III.
Notes to Financial Statements (Unaudited) IV.
Item 2. Management's Discussion and Analysis of
Results of Operations and Financial Condition 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
MAY 31, 2000 AND AUGUST 31, 1999
May 31, August 31,
2000 1999
(Unaudited)
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ASSETS
CURRENT ASSETS
Cash and cash equivalents $ 52,380 $ 237,755
Accounts receivable 405,885 295,985
Prepaid expenses and deposits 2,342 9,369
Total Current Assets 460,607 543,109
PROPERTIES AND EQUIPMENT
Undeveloped properties 829,641 721,109
Developed properties 6,464,947 5,091,135
Corporate and other 212,430 254,295
7,507,018 6,066,539
Less accumulated depreciation, depletion, and amortization (2,642,633 ) (2,322,360 )
Net Properties and Equipment 4,864,385 3,744,179
INVESTMENTS AND OTHER ASSETS 75,122 70,884
TOTAL ASSETS $ 5,400,114 $ 4,358,172
LIABILITIES
CURRENT LIABILITIES
Accounts payable $ 103,034 $ 225,732
Accrued production taxes 21,429 17,289
Line of credit 500,000 307,898
Long-term debt - current portion - 41,728
Total Current Liabilities 624,463 592,647
LONG-TERM DEBT - 158,773
Total Liabilities 624,463 751,420
STOCKHOLDERS' EQUITY
Common stock, $.10 par value; - 10,000,000 shares,
authorized; issued and outstanding 4,797,641 shares
as of May 31, 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 548,399 502,936
Total Stockholders' Equity 4,775,651 3,606,752
TOTAL LIABILITIES AND
STOCKHOLDERS' EQUITY $ 5,400,114 $ 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 Nine Months Ended
May 31, May 31, May 31, May 31,
2000 1999 2000 1999
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REVENUES
Sales of oil and gas $ 454,780 $ 150,085 $ 1,162,294 $ 468,952
Sales of nonproducing leases 5,696 81,000 9,821 178,619
Other 2,327 106 15,537 529
Total 462,803 231,191 1,187,652 648,100
COSTS AND EXPENSES
Production costs 83,842 46,032 207,327 122,382
Production taxes 42,188 18,072 133,899 61,446
Cost of nonproducing leases sold 1,202 11,325 2,262 11,325
Exploration 33,620 40,846 94,919 158,243
Write offs and abandonments 3,416 3,107 4,856 14,155
General and administrative 102,983 93,609 377,704 299,486
Depreciation and depletion 127,698 49,455 332,784 148,365
Total 394,949 262,446 1,153,751 815,402
INCOME (LOSS) FROM OPERATIONS 67,854 (31,255 ) 33,901 (167,302 )
OTHER INCOME (EXPENSE)
Gain on sale of assets 11,856 - 11,856 -
Interest income 3,645 1,903 15,719 6,544
Interest expense (11,083) - (16,013) (1,661 )
Total 4,418 1,903 11,562 4,883
INCOME (LOSS) BEFORE INCOME TAXES 72,272 (29,352 ) 45,463 (162,419 )
INCOME TAX EXPENSE (BENEFIT)
Current - - - -
Deferred - - - -
Total - - - -
NET INCOME (LOSS) $ 72,272 $ (29,352 ) $ 45,463 $ (162,419 )
BASIC/DILUTED INCOME
(LOSS) PER SHARE $ .02 $ (.01 ) $ .01 $ (.04 )
AVERAGE SHARES OUTSTANDING 4,797,641 4,365,401 4,724,909 4,184,201
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 NINE MONTHS ENDED MAY 31, 2000 AND 1999
(UNAUDITED)
2000 1999
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OPERATING ACTIVITIES:
Net income (loss) $ 45,463 $ (162,419 )
Charges to income not requiring cash:
Depreciation and depletion 332,784 148,365
Gain on sale of properties and assets (19,415) (167,294 )
Abandoned properties 4,856 14,155
Decrease (increase) in operating assets:
Accounts receivable (109,900) (30,024 )
Prepaid expenses and deposits 2,789 20,000
Increase (decrease) in operating liabilities:
Accounts payable (122,698) 23,551
Accrued production taxes 4,140 (2,527 )
Net cash provided by (used in) by operating activities 138,019 (156,193 )
INVESTING ACTIVITIES:
Proceeds from sale of properties and assets 61,821 178,619
Purchase of properties (1,500,252) (705,955 )
Net cash (used in) investing activities (1,438,431) (527,336 )
FINANCING ACTIVITIES:
Proceeds from private placement 1,115,248 514,688
Issuance of common stock 8,188 62,500
Borrowing on line of credit arrangement 192,102 100,000
Payments on long-term debt (200,501) -
Net cash provided by financing activities 1,115,037 677,188
(DECREASE) IN CASH (185,375) (6,341 )
CASH AND CASH EQUIVALENTS
Beginning of period 237,755 97,429
End of period $ 52,380 $ 91,088
SUPPLEMENTAL DISCLOSURES OF CASH AND
NON-CASH TRANSACTIONS
Cash paid during the period for interest $ 16,013 $ 1,661
<FN>
See accompanying notes to financial statements.
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IV.
NOTES TO FINANCIAL STATEMENTS
(UNAUDITED)
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 May 31, 2000, are not necessarily
indicative of the operating results for the full year.
4.Common Stock and Warrants
During the nine months ended May 31, 2000, the Company sold through private
placement 400,000 shares of its common stock for $2.75 per share.
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V.
DOUBLE EAGLE PETROLEUM AND MINING COMPANY
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF
RESULTS OF OPERATIONS AND FINANCIAL CONDITION
RESULTS OF OPERATIONS
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Year to Date Results of Operations Compared to Prior Year to Date Results
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Oil and gas revenues for the nine months ended May 31, 2000 were 2 and 1/2 times
greater than the corresponding period of one year ago. This resulted in net
income of $45,000 for the current period as compared to a net loss of $(162,000)
for the corresponding period of one year ago. Several factors lead to the
substantial increase in revenues including the drilling of producing wells at
Madden Field and Mesa Field as wells as at least a doubling of the prices that
were paid to the Company for its products (oil and natural gas).
Current Quarter Compared to Previous Quarter
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Oil and gas revenues increased 12% for the current quarter as compared to the
previous quarter. General and administrative expenses experienced a decline of
40%, due to the fact that annual performance bonuses were paid in the previous
quarter.
Current Quarter Compared to Corresponding Quarter of Prior Year
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Oil and gas revenues were 3 times greater for the current quarter and compared
to the corresponding quarter of one year ago. The Company experienced net income
of $72,000 for the current quarter as compared to a net loss of $(29,000) for
the corresponding quarter of one year ago.
Financial Condition
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Operating activities for the nine month period ending May 31, 2000 generated
$138,000 in cash. This compares to the consumption of cash of $(156,000) for the
corresponding period of one year ago. $1,100,000 was generated by the issuance
of additional shares of the Company's stock, while the Company purchased
$1,500,000 of producing and non-producing properties. In addition, the Company
has drawn $500,000 on its $1,400,000 line of credit arrangement.
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VI.
PART II. OTHER INFORMATION
ITEM 6. EXHIBITS AND REPORT ON FORM 8-K
No 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: July 14, 2000
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