U. S. Securities and Exchange Commission
Washington, D. C. 20549
FORM 10-QSB
(Mark One)
[ X ] QUARTERLY REPORT UNDER SECTION 10 OR 15 (D) OF
THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended September 30, 1997
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[ ] TRANSITION REPORT UNDER SECTION 13 OR 15(D) OF
THE EXCHANGE ACT
For the transition period from to.
Commission File Number: 0-9458
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Eagle Exploration Company
-------------------------
(Exact name of Registrant as specified in it charter)
Colorado 84-0804143
-------- ----------
(State or other jurisdiction of (I.R.S. Employer ID Number)
incorporation or organization)
1801 Broadway, Suite 700
Denver, Colorado 80202
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(Address of principal executive offices)
(303) 296-3677
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(Issuer's telephone number)
1776 Lincoln Street, Suite 1311
Denver, Colorado 80203
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(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.
--
APPLICABLE ONLY TO ISSUERS INVOLVED IN BANKRUPTCY
PROCEEDINGS DURING THE PRECEDING FIVE YEARS
Check whether the registrant filed all documents and reports required to
be filed by Section 12, 13 or 15(d) of the Exchange Act after the distribution
of securities under a plan confirmed by court. Yes X No.
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State the number of shares outstanding of each of the issuer's classed of
common equity, as of the latest practicable date: 3,072,836.
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Transitional Small Business Disclosure format: (Check One) Yes No X.
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<PAGE>
EAGLE EXPLORATION COMPANY AND SUBSIDIARIES
INDEX TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
PART I FINANCIAL INFORMATION PAGE
- ------ --------------------- ----
Item 1 Unaudited Condensed Consolidated
- ------
Balance Sheets - September 30, 1997,
and March 31, 1997 3
Unaudited Condensed Consolidated
Statements of Operations - Three
Months Ended September 30, 1996
and 1997 and Six Months Ended
September 30, 1996 and 1997 4
Unaudited Condensed Consolidated
Statements of Cash Flow - Six Months
Ended September 30, 1996 and 1997 5
Notes to Unaudited Condensed
Consolidated Financial Statements 6
Item 2 Management's Discussion and Analysis
- ------
of Financial Condition and Results
of Operations 7
PART II SIGNATURES 8
- ------- ----------
<PAGE>
PART I
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FINANCIAL INFORMATION
---------------------
Item 1
- ------
EAGLE EXPLORATION COMPANY AND SUBSIDIARIES
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
<TABLE>
<CAPTION>
ASSETS
September 30, March 31,
1997 1997
---- ----
<S> <C> <C>
Current assets
Cash and cash equivalents $ 132,208 $510,055
Certificates of deposit 491,000 194,000
Other receivables 3,899 4,938
---------- ----------
Total current assets 627,107 708,993
---------- ----------
Office furniture, equipment and
other, net of $225,496 of
accumulated depreciation at
September 30, 1997, and $222,096
of accumulated depreciation at
March 31, 1997. 30,478 33,378
Investment in limited liability
company 119,420 119,420
Other 26,638 26,638
---------- ----------
Total assets $ 803,643 $ 888,429
========== ==========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities
Accounts payable $ 13,018 $ 18,648
Deposits, deferred revenue
and other 9,318 9,318
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Total current liabilities 22,336 27,966
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Stockholders' equity
Common stock, no par value;
authorized 10,000,000 shares;
3,072,836 shares issued and
outstanding 6,632,998 6,632,998
Accumulated deficit (5,851,691) (5,772,535)
--------- ---------
781,307 860,463
--------- ---------
Total liabilities and
stockholders' equity $ 803,643 $ 888,429
========== ==========
</TABLE>
See Notes to Unaudited Condensed Consolidated Financial Statements.
<PAGE>
EAGLE EXPLORATION COMPANY AND SUBSIDIARIES
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
<TABLE>
<CAPTION>
For the Three For the Three For the Six For the Six
Months Ended Months Ended Months Ended Months Ended
September 30, September 30, September 30, September 30,
1997 1996 1997 1996
---- ---- ---- ----
<S> <C> <C> <C> <C>
Revenue:
Interest income $ 11,175 $ 6,483 $ 21,759 $ 22,233
Other income 5,898 7,129 12,161 14,685
---------- ---------- ---------- ----------
Total Revenue 17,073 13,612 33,920 36,918
--------- ---------- ---------- ----------
(Income) Expenses:
(Income) loss from
investment in
limited liability
company - (124,684) - (80,683)
Depreciation 1,700 2,555 3,400 5,110
Other operating
expenses 53,865 50,208 109,676 112,161
---------- ---------- ---------- ---------
Total (Income)
Expense 55,565 (71,921) 113,076 36,588
---------- ---------- ---------- --------
Net Income
(Loss) $(38,492) $ 85,533 $ (79,156) $ 330
========== ========== ========== ========
Net Income
(Loss) Per
Share $ (.01) $ .03 $ (.03) *
========== ========== ========== ========
Weighted average
number of share
outstanding 3,072,836 3,072,836 3,072,836 3,072,836
========== ========== ========== ==========
</TABLE>
* Less than $.01 per share
See Notes to Unaudited Condensed Consolidated Financial Statements.
<PAGE>
EAGLE EXPLORATION COMPANY AND SUBSIDIARIES
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
<TABLE>
<CAPTION>
For the Six For the Six
Months Ended Months Ended
September 30, September 30,
1997 1996
---- ----
<S> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
Net (loss) income $ (79,156) $ 330
---------- ----------
Adjustments to reconcile net income
(loss) to net cash provided (used)
by operating activities:
Depreciation 3,400 5,110
Income from investment in
limited liability company - (80,683)
Change in assets and liabilities:
Decrease (increase) in accounts
receivable 1,039 (2,085)
(Decrease) in accounts payable (5,630) (101,520)
---------- ----------
Total adjustments (1,191) (101,520)
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NET CASH FLOWS PROVIDED (USED)
BY OPERATING ACTIVITIES (80,347) (101,190)
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CASH FLOWS FROM INVESTING ACTIVITIES:
Collection of note receivable - 500,000
Purchase of certificates of deposit (297,000) (491,000)
Purchase of furniture and equipment (500) -
Return on investment in limited
liability company - 320,538
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NET CASH FLOWS PROVIDED (USED)
BY INVESTING ACTIVITIES (297,500) 329,538
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NET INCREASE (DECREASE) IN CASH AND
CASH EQUIVALENTS (377,847) 228,348
CASH AND CASH EQUIVALENTS, BEGINNING
OF YEAR 510,055 41,387
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CASH AND CASH EQUIVALENTS, END OF
YEAR $ 132,208 $ 269,735
========== ==========
</TABLE>
See Notes to Unaudited Condensed Consolidated Financial Statements.
<PAGE>
EAGLE EXPLORATION COMPANY AND SUBSIDIARIES
NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
Opinion of Management
- -----------------------
1. The financial information furnished reflects all adjustments which are,
in the opinion of management, necessary to a fair presentation of the
financial position at September 30, 1997, and March 31, 1997, and of the
condensed consolidated statements of operations for the three and six months
ended September 30, 1996 and 1997 and condensed consolidated statements of
cash flows for the six months ended September 30, 1996 and 1997. Except for
as noted in the Company's 10-KSB, we are unable to obtain audited financial
statements supporting the Company's investment in a limited liability company
(LLC) at March 31, 1997, or monthly financial statements for the six months
ended September 30, 1997. Therefore, this report has not incorporated the
financial information concerning the Company's ownership in the LLC. The
results of operations and statements of cash flows for the periods presented
are not necessarily indicative of those to be expected for the entire year.
2. The accompanying unaudited condensed consolidated financial statements
have been prepared in accordance with generally accepted accounting principles
for interim financial information, with the above mentioned exception.
Accordingly, they do not include all of the information and footnotes required
by generally accepted accounting principles. For further information refer to
the audited consolidated financial statements and notes thereto for the year
ended March 31, 1997, included in the Company's 10-KSB filed with the
Securities and Exchange Commission on June 27, 1997.
Item 2: Management's' Discussion and Analysis of Financial Condition and
- -------- ------------------------------------------------------------------
Results of Operation.
- ----------------------
Financial Condition, Liquidity and Capital Resources
- ---------------------------------------------------------
Eagle Exploration Company's primary operations previously included the
purchase and development of residential real estate. The Company's operations
also previously included engaging in oil and gas exploration and production
activities, acquiring whole or partial interest in oil and gas leases, and
farming out or reselling all or part of its interest in these leases to other
companies in the oil and gas industry. The Company sold all land held for
development during the year ended March 31, 1995. Currently, the Company has
no plans to acquire additional land for development and sale but is
investigating various potential acquisitions and other business opportunities.
Cash and cash equivalents decreased for the six months ended September
30, 1997, $377,847. For the same period the certificates of deposits
increased $297,000.
Stockholders' equity decreased from $860,462 to $781,306 or $79,156 for
the six months ended September 30, 1997.
Results of Operations
- -----------------------
For the six months ended September 30, 1997, compared to the six months ended
- ------------------------------------------------------------------------------
September 30, 1996.
- --------------------
For the six months ended September 30, 1997, the Company's total revenue
was $33,920 as compared to $36,918 for the six months ended September 30,
1996.
Total expenses for the six month period ended September 30, 1997, were
$113,076 as compared to (net of income from the investment in the LLC of
$80,683) or $36,588 for the period ended September 30, 1996.
<PAGE>
EAGLE EXPLORATION COMPANY AND SUBSIDIARIES
PART II
- -------
SIGNATURES
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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.
EAGLE EXPLORATION COMPANY
(Registrant)
By: /s/ Raymond N. Joeckel
-----------------------------
Raymond N. Joeckel
President/Chief Financial
Officer
By: /s/ Paul M. Joeckel
----------------------------
Paul M. Joeckel
Secretary
Date: November 11, 1997
<TABLE> <S> <C>
<ARTICLE> 5
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> MAR-31-1998
<PERIOD-END> SEP-30-1997
<CASH> 132,208
<SECURITIES> 491,000
<RECEIVABLES> 3,899
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 627,107
<PP&E> 255,974
<DEPRECIATION> 225,496
<TOTAL-ASSETS> 803,643
<CURRENT-LIABILITIES> 22,336
<BONDS> 0
0
0
<COMMON> 6,632,998
<OTHER-SE> (5,851,691)
<TOTAL-LIABILITY-AND-EQUITY> 803,643
<SALES> 0
<TOTAL-REVENUES> 33,920
<CGS> 0
<TOTAL-COSTS> 113,076
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> (79,156)
<INCOME-TAX> 0
<INCOME-CONTINUING> (79,156)
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (79,156)
<EPS-PRIMARY> (.03)
<EPS-DILUTED> (.03)
</TABLE>
