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 June 30, 1998
---------------
[ ] 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
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(State or other jurisdiction of (I.R.S. Employer ID Number)
incorporation or organization)
1801 Broadway, Suite 1420
Denver, Colorado 80202
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(Address of principal executive offices)
(303) 296-3677
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(Issuer's telephone number)
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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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.
---
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 CONSOLIDATED FINANCIAL STATEMENTS
PART I FINANCIAL INFORMATION PAGE
- ------- ---------------------- ----
Item 1 Unaudited Condensed Consolidated
- -------
Balance Sheets - June 30, 1998,
and March 31, 1998 4
Unaudited Condensed Consolidated
Statements of Operations - Three
Months Ended June 30, 1998
and 1997 5
Unaudited Condensed Consolidated
Statements of Cash Flow - Three Months
Ended June 30, 1998 and 1997 6
Notes to Unaudited Condensed
Consolidated Financial Statements 7
Item 2 Management's Discussion and Analysis
- -------
of Financial Condition and Results
of Operations 9
PART II SIGNATURES 11
- -------- ----------
<PAGE>
PART I
- -------
FINANCIAL INFORMATION
---------------------
Item 1
- -------
EAGLE EXPLORATION COMPANY AND SUBSIDIARIES
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
ASSETS
<TABLE>
<CAPTION>
June 30, March 31,
1998 1998
--------- ----------
<S> <C> <C>
Current assets
Cash and cash equivalents $ 337,606 $ 333,450
Certificates of deposit 297,000 297,000
Other receivables 4,881 4,143
------------ -----------
Total current assets 639,487 634,593
------------ -----------
Office furniture, equipment and
other, net of $232,091 of
accumulated depreciation at
June 30, 1998, and $228,797 of
accumulated depreciation at
March 31, 1998. 40,772 44,066
Investment in limited liability
company (32,475) 24,725
Other 26,637 26,637
----------- -----------
Total assets $ 674,421 $ 730,021
============ ============
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities
Accounts payable $ 3,189 $ 24,825
Deposits, deferred revenue
and other 8,996 8,996
------------- ------------
Total current liabilities 12,185 33,821
------------- ------------
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 (5,970,762) (5,936,798)
----------- ----------
662,236 696,200
----------- ----------
Total liabilities and
stockholders' equity $ 674,421 $ 730,021
============ ============
</TABLE>
See Notes to Unaudited Condensed Consolidated Financial Statements.
EAGLE EXPLORATION COMPANY AND SUBSIDIARIES
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
<TABLE>
<CAPTION>
For the Three Months Ended
June 30, 1998
------------------------------
1998 1997
--------------- -------------
<S> <C> <C>
Revenue
Interest income $ 11,995 $ 10,584
Other income 5,331 6,263
------------- -----------
17,326 16,847
------------- -----------
Expenses
Depreciation 3,294 1,700
Other operating expenses 47,996 55,812
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51,290 57,512
------------- -----------
Net loss $ (33,964) $ (40,665)
============= ============
Basic loss per share $ (.01) $ (.01)
============== ============
Weighted average number of
shares outstanding 3,072,836 3,072,836
============= ============
</TABLE>
See Notes to Unaudited Condensed Consolidated Financial Statements.
EAGLE EXPLORATION COMPANY AND SUBSIDIARIES
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
<TABLE>
<CAPTION>
For the Three Months Ended
June 30,
-------------------------------
1998 1997
------------- ----------------
<S> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
Net (loss) $ (33,964) $ (40,665)
------------ --------------
Adjustments to reconcile net(loss)
to net cash (used) by operating
activities:
Depreciation 3,294 1,700
Change in assets and liabilities:
Decrease (increase) in accounts
receivable (738) 860
(Decrease) in accounts payable (21,636) (3,729)
------------- ----------
Total adjustments (19,080) (1,169)
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NET CASH FLOWS (USED) BY
OPERATING ACTIVITIES (53,044) (41,834)
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CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of furniture and equipment - (500)
Return on investment in limited
liability company 57,200 -
------------- ------------
NET CASH FLOWS PROVIDED (USED)
BY INVESTING ACTIVITIES 57,200 (500)
------------ ------------
NET INCREASE (DECREASE) IN CASH AND
CASH EQUIVALENTS 4,156 (42,334)
CASH AND CASH EQUIVALENTS, BEGINNING
OF YEAR 333,450 510,055
------------- -------------
CASH AND CASH EQUIVALENTS, END OF
QUARTER $ 337,606 $ 467,721
============ ============
</TABLE>
See Notes to Unaudited Condensed Consolidated Financial Statements.
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 June 30, 1998, and March 31, 1998, and of the condensed
consolidated statements of operations and condensed consolidated statements of
cash flows for the three months ended June 30, 1997 and 1998. 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, 1998, or monthly financial statements for the three months
ended June 30, 1998. 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, 1998, included in the Company's 10-KSB filed with the
Securities and Exchange Commission on June 30, 1998.
<PAGE>
Item 2: Management's' Discussion and Analysis of Financial Condition and
- -------- ------------------------------------------------------------------
Results of Operation.
- ----------------------
Financial Condition, Liquidity and Capital Resources
- ---------------------------------------------------------
Cash and cash equivalents increased slightly for the three months ended
June 30, 1998, to $337,606 from $333,450 for the year ended March 31, 1998 or
$4,156. The certificates of deposits remained the same at $297,000.
Stockholders' equity decreased from $696,200 at March 31, 1998 to
$662,236 or $33,964 for the three months ended June 30, 1998.
The Company participated for its 37.5 percent working interest in the
wash down and completion of the Sexson #1-19, Wallace County, Kansas. The
well was perforated from 5,006 feet to 5,014 feet. A 3/4 inch choke was
installed and flowed for one hour for an estimated gas volume of 3,780 million
cubic feet of gas per day. Surface equipment was set and plumbed in. The
well was shut in waiting on pipeline. August 12, 1998, the Company started
selling gas. With a 31/64 choke the well produced 1,592 million cubic feet of
gas the first 17 hours of production.
The sale of the apartment complex owned by Eagle's Landing, LLC, closed
on August 12, 1998. The Company owned a 40 percent membership interest in the
LLC and the Company received $2,011,990 for its interest in the LLC.
Results of Operations
- -----------------------
For the three months ended June 30, 1998, compared to the three months ended
- ------------------------------------------------------------------------------
June 30, 1997.
- ---------------
For the three months ended June 30, 1998, the Company's total revenue was
$17,326 as compared to $16,847 for the three months ended June 30, 1997.
Total expenses for the three month period ended June 30, 1998, were
$51,290 as compared to $57,512 for the period ended June 30, 1997, a decrease
of $6,222 or approximately ten percent. This decrease was due primarily to
reduced legal fees associated with the LLC litigation which settled in the
previous quarter.
<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
--------------------
Secretary/Vice President
Operations
Date: August 13, 1998
<TABLE> <S> <C>
<ARTICLE> 5
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> MAR-31-1998
<PERIOD-END> JUN-30-1998
<CASH> 337,606
<SECURITIES> 297,000
<RECEIVABLES> 4,881
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 639,487
<PP&E> 272,863
<DEPRECIATION> 232,091
<TOTAL-ASSETS> 674,421
<CURRENT-LIABILITIES> 12,185
<BONDS> 0
0
0
<COMMON> 6,632,998
<OTHER-SE> (5,970,762)
<TOTAL-LIABILITY-AND-EQUITY> 674,421
<SALES> 0
<TOTAL-REVENUES> 17,326
<CGS> 0
<TOTAL-COSTS> 0
<OTHER-EXPENSES> 51,290
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> (33,964)
<INCOME-TAX> 0
<INCOME-CONTINUING> (33,964)
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (33,964)
<EPS-PRIMARY> (.01)
<EPS-DILUTED> (.01)
</TABLE>
