<PAGE> 1
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-Q
(MARK ONE)
X QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
--- EXCHANGE ACT OF 1934.
FOR THE THREE MONTHS ENDED JUNE 30, 2000
OR
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
--- EXCHANGE ACT OF 1934.
FOR THE TRANSITION PERIOD FROM TO
------------ -------------
COMMISSION FILE NUMBER 0-8933
APCO ARGENTINA INC.
(EXACT NAME OF REGISTRANT AS SPECIFIED IN ITS CHARTER)
CAYMAN ISLANDS
(STATE OR OTHER JURISDICTION OF EIN 98-0199453
INCORPORATION OR ORGANIZATION)
POST OFFICE BOX 2400
TULSA, OKLAHOMA 74102
(ADDRESS OF PRINCIPAL EXECUTIVE OFFICES) (ZIP CODE)
REGISTRANT'S TELEPHONE NUMBER: (918) 573-2164
INDICATE BY CHECK MARK WHETHER THE REGISTRANT (1) HAS FILED ALL REPORTS REQUIRED
TO BE FILED BY SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 DURING
THE PRECEDING 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
---
INDICATE THE NUMBER OF SHARES OUTSTANDING OF EACH OF THE ISSUER'S CLASSES OF
COMMON STOCK AS OF THE LATEST PRACTICABLE DATE.
CLASS OUTSTANDING AT JULY 31, 2000
ORDINARY SHARES, $.01 PAR VALUE 7,360,311 SHARES
<PAGE> 2
APCO ARGENTINA INC. AND SUBSIDIARY
INDEX
<TABLE>
<CAPTION>
Page No.
--------
<S> <C>
PART I. FINANCIAL INFORMATION:
ITEM 1. FINANCIAL STATEMENTS
Consolidated Balance Sheets - June 30, 2000 and
December 31, 1999 3
Consolidated Statements of Operations - Three and Six
Months Ended June 30, 2000 and 1999 4
Consolidated Statements of Cash Flows - Six Months
Ended June 30, 2000 and 1999 5
Notes to Consolidated Financial Statements 6
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS 8
PART II. OTHER INFORMATION 13
</TABLE>
Portions of this document may constitute forward-looking statements as defined
by federal law. Although Apco Argentina Inc. believes any such statements are
based on reasonable assumptions, there is no assurance that actual outcomes will
not be materially different. Additional information about issues that could lead
to material changes in performance is contained in Apco Argentina Inc.'s annual
report on Form 10-K.
2
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PART I. FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS
APCO ARGENTINA INC. AND SUBSIDIARY
CONSOLIDATED BALANCE SHEETS
<TABLE>
<CAPTION>
(Amounts in Thousands) June 30, December 31,
2000 1999
-------- ------------
ASSETS (UNAUDITED)
<S> <C> <C>
Current Assets:
Cash and cash equivalents $ 12,396 $ 14,207
Accounts receivable 10,705 7,967
Inventory 923 892
Other current assets 433 461
-------- --------
Total Current Assets 24,457 23,527
Property and Equipment:
Cost 93,583 87,724
Accumulated depreciation (46,037) (43,569)
-------- --------
47,546 44,155
Other assets 8,244 3,319
-------- --------
$ 80,247 $ 71,001
======== ========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities:
Accounts payable $ 4,464 $ 3,127
Accrued liabilities 9,220 6,000
Dividends payable 1,196 1,196
Other liabilities -- 1,189
-------- --------
Total Current Liabilities $ 14,880 11,512
-------- --------
Long term liabilities 2,961 4,027
Deferred income taxes 677 357
Stockholders' Equity:
Ordinary shares, par value $.01 per share;
15,000,000 shares authorized;
7,360,311 shares outstanding 74 74
Additional paid-in capital 9,326 9,326
Retained earnings 52,329 45,705
-------- --------
Total Stockholders' Equity 61,729 55,105
-------- --------
$ 80,247 $ 71,001
======== ========
</TABLE>
The accompanying notes are an integral part of these consolidated balance
sheets.
3
<PAGE> 4
APCO ARGENTINA INC. AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED)
<TABLE>
<CAPTION>
(Amounts in Thousands Except Per Share Three Months Ended Six Months Ended
June 30, June 30,
---------------------- ---------------------
2000 1999 2000 1999
-------- -------- -------- --------
<S> <C> <C> <C> <C>
REVENUES:
Operating revenue $ 15,238 $ 9,445 $ 29,508 $ 17,104
Other revenues 184 103 349 204
-------- -------- -------- --------
15,422 9,548 29,857 17,308
-------- -------- -------- --------
COSTS AND EXPENSES:
Operating expense 3,322 2,812 6,974 5,366
Provincial royalties 1,743 1,118 3,189 1,809
Transportation & storage 640 434 1,030 906
Selling and administrative 587 491 1,128 1,070
Depreciation, depletion and amortization 1,290 1,390 2,488 2,418
Exploration expense 183 0 557 2
Argentine taxes 2,879 1,404 5,342 2,121
Other (income) expense, net (268) (425) 132 (84)
-------- -------- -------- --------
10,376 7,224 20,840 13,608
-------- -------- -------- --------
NET INCOME $ 5,046 $ 2,324 $ 9,017 $ 3,700
======== ======== ======== ========
INCOME PER ORDINARY SHARE,
Basic and Diluted $ .69 $ .31 $ 1.23 $ .50
======== ======== ======== ========
AVERAGE ORDINARY SHARES OUTSTANDING,
Basic and Diluted 7,360 7,360 7,360 7,360
======== ======== ======== ========
</TABLE>
The accompanying notes are an integral part of these consolidated statements.
4
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APCO ARGENTINA INC. AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED)
<TABLE>
<CAPTION>
(Amounts in Thousands) Six Months Ended
June 30,
----------------------
CASH FLOW FROM OPERATING ACTIVITIES: 2000 1999
-------- --------
<S> <C> <C>
Net income $ 9,017 $ 3,700
Adjustments to reconcile to cash
(used in) provided by operating activities:
Depreciation, depletion and amortization 2,488 2,418
Prior year investment charged to expense 316 --
Retirement of property -- 17
Changes in accounts receivable (2,738) (2,929)
Changes in inventory (31) 265
Changes in other current assets 28 371
Changes in accounts payable 1,337 (2,385)
Changes in accrued liabilities 3,220 2,516
Changes in other assets and liabilities
Including Acambuco investments (6,860) (689)
-------- --------
Net cash provided by operating activities 6,777 3,284
CASH FLOW FROM FINANCING ACTIVITIES:
Capital expenditures (6,196) (3,129)
CASH FLOW FROM FINANCING ACTIVITIES:
Dividends paid (2,392) (2,392)
-------- --------
NET CHANGE IN CASH AND
CASH EQUIVALENTS (1,811) (2,237)
CASH AND CASH EQUIVALENTS AT
BEGINNING OF THE PERIOD 14,207 13,359
-------- --------
CASH AND CASH EQUIVALENTS AT
END OF THE PERIOD $ 12,396 $ 11,359
======== ========
Supplemental disclosures of cash flow information:
Cash paid during the period for Argentina income taxes $ 4,387 $ 523
</TABLE>
The accompanying notes are an integral part of these consolidated statements.
5
<PAGE> 6
APCO ARGENTINA INC. AND SUBSIDIARY
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(UNAUDITED)
(1) GENERAL
The unaudited, consolidated financial statements of Apco Argentine Inc. and
subsidiary (the "Company"), included herein, do not include all footnote
disclosures normally included in annual financial statements and,
therefore, should be read in conjunction with the financial statements and
notes thereto included in the Company's 1999 Form 10-K.
In the opinion of the Company, all adjustments have been made to present
fairly the results of the six months ended June 30, 2000 and 1999. The
results for the periods presented are not necessarily indicative of the
results for the respective complete years.
(2) INCOME TAXES
As described in Note 6 of Notes to Consolidated Financial Statements
included in the Company's 1999 Form 10-K, the Company believes its earnings
are not subject to U.S. income taxes, nor Cayman Islands income or
corporation taxes.
Income derived by the Company from its Argentine operations is subject to
Argentine income tax at a rate of thirty five percent and is included in
the Consolidated Statements of Operations as Argentine taxes.
(3) OBLIGATORY SAVINGS
In 1988, the Argentine government amended the Obligatory Savings Law
requiring that all taxpayers deposit with the government, both in 1988 and
1989, amounts computed on the basis of prior year taxable incomes. It was
the opinion of the Entre Lomas joint venture and its legal and tax counsels
that it was exempted from these deposits due to the tax exemption granted
in the original Entre Lomas contract number 12,507. As a result the
deposits were not made.
In August 1993, the Direccion General Impositiva ("DGI"), the Argentine
taxing authority, made a claim against Petrolera for the delinquent
deposits pertaining to the Entre Lomas operation, which including interest
and indexation for inflation, amounted to $9.2 million. An appeal was filed
by Petrolera in Argentine Federal Tax Court which ruled in favor of the DGI
in April 1997. Petrolera appealed the ruling before Federal Appeals Court
which in November 1998, ruled in favor of Petrolera. Subsequently the DGI
filed an appeal with the Supreme Court.
On May 8, 2000, Argentina's Supreme Court released its decision in favor of
the DGI requiring Petrolera and its Entre Lomas partners to make the $9.2
million obligatory savings deposit and pay court costs totaling $1.7
million or $4.4 million and $800 thousand, respectively, net to the
Company.
The Obligatory Savings Law provides that taxpayers are entitled to receive
a full refund of the deposit in pesos, plus interest based on Argentina's
national savings rate, sixty months from the date of making the deposit.
However, the law also stipulates that deposits made
6
<PAGE> 7
APCO ARGENTINA INC. AND SUBSIDIARY
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(UNAUDITED)
after the original due date are subject to a penalty of fifty percent of
the amount deposited, or in this case, $2.2 million net to the Company.
Because of this, Petrolera and its Entre Lomas partners resorted to paying
the deposit pursuant to the Argentine government's offer of existing tax
debt consolidation provided for in Decree P.E.N. No. 93/00, "tax
moratorium". Among other tax obligations, the Decree covered those
obligations owing the DGI that were under judicial consideration on January
27, 2000, the date the Decree was published. Furthermore, the Decree
offered penalty and sanction exemptions to any tax payer complying with the
requirements of the moratorium. Given that Law 23,549, the Mandatory
Savings Law, subject of the dispute with the DGI, provides that deposits
made after the original due date are subject to the aforementioned penalty
equivalent to forfeiture of 50 percent of the deposit refund, and that
Petrolera and the Entre Lomas partners complied with the requirements of
the tax moratorium decree, Petrolera management feels that the Entre Lomas
partners should be released from the penalty provided for by the Mandatory
Savings Law.
As a part of the moratorium, the $9.2 million deposit, $4.4 million net to
the Company, is to be paid in installments. This amount has been recorded
as a current liability that will decrease over time and be eliminated as
the installments are paid. An equivalent offset has been recorded as an
other asset to reflect the reimbursement of the deposit after five years.
In June, the partners made a $613 thousand down payment, $292 thousand net,
with the balance to be paid in twelve equal installments. Also, as a
consequence of the moratorium, the $1.7 million in legal fees, $800
thousand net, were reduced to $394 thousand, or $187 thousand net. These
legal fees were paid and expensed in June.
(4) RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS
In June 1998, the FASB issued Statement of Financial Accounting Standards
No. 133, Accounting for Derivative Instruments and Hedging Activities
("SFAS No. 133"). SFAS No. 133 establishes accounting and reporting
standards requiring that every derivative instrument (including certain
derivative instruments embedded in other contracts) be recorded in the
balance sheet as either an asset or liability measured at its fair value.
SFAS No. 133 requires that changes in the derivative's fair value be
recognized currently in earnings unless specific hedge accounting criteria
are met. Special accounting for qualifying hedges allows a derivative's
gains and losses to offset related results on the hedged item in the income
statement. Companies must formally document, designate, and assess the
effectiveness of transactions that receive hedge accounting.
In June 1999, the FASB issued Statement of Financial Accounting Standards
No. 137, which amended SFAS No. 133 to extend the effective date of
adoption for fiscal periods after June 15, 2000. Further, SFAS 137 requires
companies to either (a) recognize as an asset or liability in the balance
sheet all embedded derivative instruments at the date of initial
application or (b) select either January 1, 1998 or January 1, 1999 as a
application date, and only those derivatives issued, acquired, or
substantively altered on or after that date shall be recognized in the
balance sheet. SFAS Nos. 133 and 137 should have no impact on the Company's
financial statements as it currently is not using derivative instruments.
7
<PAGE> 8
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
OF OPERATIONS
The following discussion explains the significant factors which have affected
the Company's financial condition and results of operations during the periods
covered by this report.
FINANCIAL CONDITION
NET INCOME
For the three and six months ended June 30, 2000, the Company generated net
income of $5.0 million and $9.0 million, as compared with $2.3 million and $3.7
million for the same periods in 1999. This is the highest six-month income ever
reported by the Company. As explained in the following paragraphs, this
improvement in net income is primarily the result of higher oil prices.
OIL PRICES
During the first quarter of 1999, the world price of crude oil reached its
lowest level since the oil price collapse of 1986. The per barrel price of West
Texas Intermediate fell to as low as $11 during the quarter. As a consequence of
depressed prices, in March 1999, the Organization of Petroleum Exporting
Countries ("OPEC") implemented reductions in production quotas. Commodities
markets reacted favorably to these events and the world price of crude oil began
to rise. Furthermore, because of the low price environment of 1998 and early
1999, many energy companies were forced to sharply curtail and in some cases
eliminate exploration and development investments for 1999, thereby contributing
further to reduced oil supplies. These two factors combined with increased
demand worldwide resulted in sharp oil price increases that have continued
through the first six months of this year.
The improvements in the Company's oil sales price during the last six quarters
is reflected in the following table.
<TABLE>
<CAPTION>
Period Price/bbl
------ ---------
<S> <C>
1st qtr 1999 $ 11.48
2nd qtr 1999 $ 16.24
3rd qtr 1999 $ 20.58
4th qtr 1999 $ 23.43
1st qtr 2000 $ 27.77
2nd qtr 2000 $ 28.31
</TABLE>
This more than doubling of the Company's oil sales price has resulted in
significantly higher levels of operating cash flow for the Entre Lomas joint
venture and enabled the partners to complete the year 2000 drilling program far
ahead of schedule. Late in the second quarter, two additional wells were
drilled, one of which is the Borde Mocho #3 well.
There is no way to predict the future course of oil prices, or if oil prices in
the high $20 range can be sustained. Many factors affect oil markets, including
among others, exploration discoveries, the level of development investments in
the oil and gas industry, fluctuations in
8
<PAGE> 9
market demand, adherence by OPEC member nations to production quotas, and future
decisions by OPEC to either increase or decrease quotas.
OIL PRODUCTION
For the six months ended June 30, 2000, oil production in the Entre Lomas
concession totaled 884 thousand barrels net to the Company's interest as
compared with 855 thousand for the same period in 1999. The increase reflects
the results of the drilling and workover programs carried out during the period
that have added production that more than offsets normal production declines in
existing fields. The Borde Mocho #3 well was completed and placed on production
in late July. It extends both the Tordillo and Quintuco reservoirs in the Borde
Mocho area to the northwest. The Borde Mocho #4 well is scheduled to spud before
the end of the third quarter. The partners now feel that the success of this
third well justifies moving ahead with local production facilities and a
pipeline that connects Borde Mocho to the concession's principal production
installations.
ACAMBUCO
In late February 2000, the Acambuco joint venture commenced drilling the Macueta
x-1001(bis). Projected total depth is 16,700 feet and the estimated cost is $30
million, or $450 thousand net to the Company's interest. The well is located
near the Bolivian border close to the San Alberto block wherein a significant
gas field is being developed by Petrobras on the same structure as the Macueta
prospect. The well now being drilled is a twin to the Macueta x-1001 well
drilled in 1981 by Bridas S.A.P.I.C., Northwest Argentina Corporation, and the
Company, the original Acambuco partners. The original well discovered gas in the
Huamampampa formation, but had to be abandoned due to mechanical problems. To
date the Macueta x-1001(bis) is proceeding as scheduled. It is currently
drilling at a depth of 15,252 feet. As with other wells in the concession, the
principal objective is the Huamampampa formation.
Drilling of the San Pedrito x-1003 well commenced in August. Construction of
production facilities in Acambuco that include gathering lines, and separators
in the San Pedrito field, a gas pipeline, and a gas treatment plant are well
underway and proceeding as planned. The partners expect to commence selling San
Pedrito gas to Argentine markets by the end of the year.
OBLIGATORY SAVINGS - SUPREME COURT RULING
On May 8, 2000, Argentina's Supreme Court released its decision in favor of the
DGI requiring Petrolera and its Entre Lomas partners to make the $9.2 million
obligatory savings deposit and pay court costs totaling $1.7 million, or $4.4
million and $800 thousand, respectively, net to the Company.
The Obligatory Savings Law provides that taxpayers are entitled to receive a
full refund of the deposit in pesos, plus interest based on Argentina's national
savings rate, sixty months from the date of making the deposit. However, the law
also stipulates that deposits made after the original due date are subject to a
penalty of fifty percent of the amount deposited, or in this case, $2.2 million
net to the Company. Because of this, Petrolera and its Entre Lomas partners
resorted to paying the deposit pursuant to the Argentine government's offer of
existing tax debt consolidation provided for in Decree P.E.N. No. 93/00, "tax
moratorium". Among other tax obligations, the Decree covered those obligations
owing the DGI that were under judicial consideration on January 27, 2000, the
date the Decree was published. Furthermore, the Decree offered penalty and
sanction exemptions to any tax payer complying with the
9
<PAGE> 10
requirements of the moratorium. Given that Law 23,549, the Mandatory Savings
Law, subject of the dispute with the DGI, provides that deposits made after the
original due date are subject to the aforementioned penalty equivalent to
forfeiture of 50 percent of the deposit refund, and that Petrolera and the Entre
Lomas partners complied with the requirements of the tax moratorium decree,
Petrolera management feels that the Entre Lomas partners should be released from
the penalty provided for by the Mandatory Savings Law.
As a part of the moratorium, the $9.2 million deposit, $4.4 million net to the
Company, is to be paid in installments. In June, the partners made a $613
thousand down payment, $292 thousand net, with the balance to be paid in twelve
equal installments. Also, as a consequence of the moratorium, the $1.7 million
in legal fees, $800 thousand net, were reduced to $394 thousand, or $187
thousand net. These legal fees were paid and expensed in June.
RESULTS OF OPERATIONS
As mentioned previously under "Financial Condition", for the three and six
months ended June 30, 2000, the Company generated net income of $5.0 million and
$9.0 million as compared with $2.3 million and $3.7 million for the same periods
in 1999.
The improvement in net income for the three and six month periods is due
primarily to increased oil sales revenue caused by the aforementioned sharp
increase in the Company's average oil sales price. The positive effect of oil
sales was partially offset by higher operating expense that resulted from the
current years remedial well workover campaign being conducted in the Entre Lomas
concession. The current years program includes workovers scheduled for 1999 that
went unperformed due to low oil prices. Other offsetting factors include higher
administrative expense that includes business development evaluation costs
incurred in the current year, greater crude oil storage expense due to delays in
shipping exports, and increased provincial royalties and Argentine taxes that
result directly from the higher levels of sales and net income.
The following table shows total sales of crude oil, condensate, natural gas and
gas liquids and average sales prices and production costs for the periods
indicated.
<TABLE>
<CAPTION>
Six Months Ended
-----------------------------
June 30, June 30,
2000 1999
----------- -----------
<S> <C> <C>
Total Sales Volumes-Net to Company
Crude Oil and Condensate (bbls) 879,472 853,413
Gas (mcf) 3,057,822 3,615,802
LPG (tons) 3,115 3,351
Average Sales Prices (in U.S. Dollars)
Oil (per bbl) $ 28.07 $ 13.78
Gas (per mcf) $ 1.35 $ 1.33
LPG (per ton) $ 224.81 $ 157.66
Average Production Costs (in U.S. Dollars)
Oil (per bbl) $ 9.36 $ 8.24
Gas (per mcf) $ .25 $ .19
LPG (per ton) $ 85.61 $ 61.98
</TABLE>
Volumes presented in the above table represent those sold to customers and do
not consider provincial royalties, which are paid separately and are accounted
for as an expense by the
10
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Company. In calculating provincial royalties to be paid, Argentine producers
are entitled to deduct gathering, storage, treating and compression costs.
Average production cost is calculated by taking into consideration all costs of
operation, including costs of remedial workovers and depreciation of property
and equipment. The current per unit cost of depreciation is $2.43 per barrel of
oil, and $.13 per mcf of natural gas. LPG facilities are fully depreciated.
ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURE ABOUT MARKET RISKS
The Company's operations are exposed to market risks as a result of changes in
Commodity prices and foreign currency exchange rates.
COMMODITY PRICE RISK
The Company produces and sells crude oil and natural gas. As a result, the
Company's financial results can be significantly impacted by fluctuations in
commodity prices due to changing market forces.
FOREIGN CURRENCY AND OPERATIONS RISK
The Company's operations are located in Argentina. Therefore, the Company's
financial results may be affected by factors such as changes in foreign currency
exchange risks, weak economic conditions, or changes in Argentina's political
climate.
ARGENTINE ECONOMIC AND POLITICAL ENVIRONMENT
Since 1989, Argentina's government has pursued free market policies, including
the privatization of state-owned companies, deregulation of the oil and gas
industry, that included the successful sale of YPF shares in public markets, tax
reform to equalize income tax rates for domestic and foreign investors,
liberalization of import and export laws, and the lifting of exchange controls.
The cornerstone of the country's economic reforms since 1989 has been its change
in monetary policy. In April 1991, the convertibility law was implemented
establishing an exchange rate of one Argentine peso to one U.S. dollar. The
convertibility plan requires that the country's monetary base be backed by an
equivalent amount of international reserves, including U.S. dollars and gold.
Essentially, the policy guarantees an exchange rate of 1:1. The Argentine
government has not strayed from this policy since implementation of the plan.
These policies have been successful as evidenced, first, by a reduction in
annual inflation from the 1989 rate of 5,000 percent to less than 1 percent in
1999 and 2000 and, second, an influx of foreign investment capital into the
country.
Presidential elections occurred in 1999. President Carlos Menem, who enacted the
privatization, deregulation, and monetary policies described above, completed
his second and final term. The new President, Fernando De la Rua of the Alianza
party, assumed office on December 10, 1999. He has stated his intention to
preserve Argentina's commitment to the convertibility law.
11
<PAGE> 12
Since 1991, the convertibility law and the Argentine pesos one to one parity
with the US dollar have withstood the 1994 devaluation of Mexico's currency that
shocked banking systems throughout Latin America, the resignation in July, 1996
of Domingo Cavallo, President Menem's first Economy Minister and author of the
convertibility plan, the far East Asian and Russian financial crises of 1997 and
1998, and most recently the devaluation of Brazil's currency in early 1999 which
had an adverse impact on Argentina's exports to Brazil, Argentinas largest
trading partner. After growing at rates of 8 percent in 1997 and 4 percent in
1998, Argentina's gross domestic product contracted by 3.5 percent in 1999 owing
in large part to Brazil's currency devaluation. Argentina's GDP is expected to
grow 3% in 2000.
Argentina is a part of "Mercosur" a common market established by customs
agreements between Argentina, Brazil, Uruguay, and Paraguay. The "Mercosur"
market comprises a population of approximately 200 million with a total gross
domestic product of $1.1 trillion.
12
<PAGE> 13
PART II. OTHER INFORMATION
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K
(a) Exhibits:
Exhibit 27 - Financial Data Schedule
(b) Reports on Form 8-K:
None
13
<PAGE> 14
SIGNATURE
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.
APCO ARGENTINA INC.
--------------------------------------
(Registrant)
By: /s/ Thomas Bueno
--------------------------------------
Director, General Manager, Controller, and
Chief Accounting Officer,
(Duly Authorized Officer of the Registrant)
August 11, 2000
14
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EXHIBIT INDEX
<TABLE>
<CAPTION>
EXHIBIT
NUMBER DESCRIPTION
------ -----------
<S> <C>
27 Financial Data Schedule
</TABLE>
