SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
[X] Quarterly Report Pursuant to Section 13 or 15(d) of the Securities
Exchange Act of 1934
For the period ended March 31, 1999
--------------
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: 0-9261
KESTREL ENERGY, INC.
---------------------
(Exact name of registrant as specified in its charter)
Colorado 84-0772451
- ------------------------------ -----------------------------
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
999 18th Street, Suite 2490,
Denver, CO 80202
- ------------------------------ ------------------------------
(Address of principal (Zip Code)
executive offices)
(303) 295-0344
-----------------------------
(Registrant's telephone number, including area code)
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.
[X] Yes [ ] No
APPLICABLE ONLY TO CORPORATE ISSUERS:
The number of shares outstanding of common stock,
as of March 31, 1999: 4,456,000
-----------
KESTREL ENERGY, INC.
AND SUBSIDIARIES
INDEX TO UNAUDITED FINANCIAL STATEMENTS
PART I. FINANCIAL INFORMATION Page
----
Item 1. Unaudited Consolidated Balance Sheets
as of March 31, 1999 and June 30, 1998 3
Unaudited Consolidated Statements of
Operations for the Three and Nine months
Ended March 31, 1999 and 1998 4
Unaudited Consolidated Statements of
Cash Flows for the Nine Months Ended
March 31, 1999 and 1998 5
Notes to Unaudited Consolidated
Financial Statements 6
Item 2. Management's Discussion and Analysis
of Financial Condition and Results
of Operations 6
PART II. OTHER INFORMATION
Item 1. Legal Proceedings 10
Item 2. Change in Securities 10
Item 3. Defaults Upon Senior Securities 10
Item 4. Submission of Matters to a Vote
of Security Holders 10
Item 5. Other Information 10
Item 6. Exhibits and Reports of Form 8-K 10
Signatures 11
PART I. FINANCIAL INFORMATION
-----------------------------
ITEM 1. Financial Statements
- ------
KESTREL ENERGY, INC.
AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS as of March 31, 1999 and June 30, 1998
<TABLE>
<CAPTION>
(Unaudited)
March 31, June 30,
ASSETS 1999 1998
- ------------------------------- ------------- ------------
<S> <C> <C>
CURRENT ASSETS:
Cash and cash equivalents $ 479,714 $ 372,194
Short term investments 349,177 2,330,831
Accounts receivable 162,076 166,568
Due from related party 175,057 393,175
Other assets 57,141 36,890
----------- -----------
Total current assets 1,223,165 3,299,658
----------- -----------
PROPERTY AND EQUIPMENT, NET AT COST:
Oil and gas properties, successful
efforts method of accounting:
Unproved 1,947,176 688,779
Proved 4,171,935 4,219,282
Furniture and equipment 137,904 130,468
----------- -----------
6,257,015 5,038,529
Accumulated depreciation and depletion (2,886,841) (2,778,165)
----------- -----------
Net property and equipment 3,370,174 2,260,364
----------- -----------
Total assets $ 4,593,339 $ 5,560,022
=========== ===========
LIABILITIES AND STOCKHOLDERS' EQUITY
- ------------------------------------
CURRENT LIABILITIES:
Accounts payable, trade $ 66,591 $ 139,989
Accrued liabilities 33,375 21,687
----------- -----------
Total current liabilities 99,966 161,676
----------- -----------
STOCKHOLDERS' EQUITY:
Preferred Stock, $1 par value;
1,000,000 shares authorized,
none issued
Common Stock, no par value;
20,000,000 shares authorized,
4,456,000 and 4,431,000 issued
and outstanding at March 31, 1999
and June 30, 1998, respectively 13,148,724 13,139,349
Accumulated deficit (8,655,351) (7,741,003)
----------- -----------
Total stockholders' equity 4,493,373 5,398,346
----------- -----------
$ 4,593,339 $ 5,560,022
=========== ===========
</TABLE>
KESTREL ENERGY, INC.
AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS FOR THE THREE AND NINE MONTHS ENDED
March 31, 1999 and 1998
(Unaudited)
<TABLE>
<CAPTION>
Three months ended Nine months ended
March 31, March 31,
1999 1998 1999 1998
---------- ---------- ---------- ----------
<S> <C> <C> <C> <C>
REVENUE:
Oil and gas sales $ 158,404 $ 246,656 $ 533,094 $ 710,307
Interest 11,592 40,063 73,315 152,828
Gain (loss) on sale of
property and equipment (788) - (788) 10,677
Other income 12,967 64,471 51,466 68,180
---------- ---------- ---------- ----------
TOTAL REVENUES 182,175 351,190 657,087 941,992
---------- ---------- ---------- ----------
COSTS AND EXPENSES:
Production and operating
expenses 148,064 98,800 328,300 321,266
Exploration expenses 46,002 198,225 377,298 496,389
Dry holes, abandoned and
impaired properties 12,374 108,000 205,772 512,386
Depreciation and
depletion 30,818 46,533 115,795 118,034
General and
administrative 220,942 207,212 544,270 595,949
---------- ---------- ---------- ----------
TOTAL COSTS
AND EXPENSES 458,200 658,770 1,571,435 2,043,824
---------- ---------- ---------- ----------
NET LOSS $ (276,025) $ (307,580) $ (914,348$(1,101,832)
---------- ---------- ---------- ----------
BASIC AND DILUTED
LOSS PER COMMON
SHARE $ (0.06) $ (0.07) $ (0.20) $ (0.25)
========== ========== ========== ==========
WEIGHTED AVERAGE
COMMON SHARES
OUTSTANDING 4,456,000 4,419,634 4,448,701 4,419,634
========== ========== ========== ==========
</TABLE>
KESTREL ENERGY, INC.
AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS FOR THE NINE MONTHS ENDED
March 31, 1999 and 1998
(Unaudited)
<TABLE>
<CAPTION>
1999 1998
----------- -----------
<S> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss $ (914,348) $ (1,101,832)
Adjustments to reconcile net loss to
net cash provided (used) by operating
activities
Depreciation and depletion 115,795 118,034
Dry holes, abandoned and impaired
properties 199,263 37,122
(Gain) loss on sale of property and
equipment, net 788 (10,677)
(Increase) decrease in accounts receivable 4,492 5,063
(Increase) decrease in related party
receivable 218,118 (110,477)
(Increase) in other current assets (20,251) (20,866)
Increase (decrease) in accounts
payable, trade (73,398) 63,290
Increase (decrease) in accrued liabilities 11,688 (83)
(Decrease) in accounts payable to
related party - (23,972)
------------ ------------
Net cash (used) by operating activities (457,853) (1,044,398)
------------ ------------
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures/acquisition
of properties (1,417,281) (334,189)
Proceeds from sale of property
and equipment 1,000 10,677
Redemption (purchase) of short-term
investments, net 1,981,654 185,706
------------ ------------
Net cash provided and (used) by
investing activities 565,373 (137,806)
------------ ------------
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from exercise of common stock options - 6,250
Common stock surrendered by officer - (21,655)
------------ ------------
Net cash used by financing activities - (15,405)
------------ ------------
Net increase (decrease) in cash and
cash equivalents 107,520 (1,197,609)
Cash and cash equivalents at the beginning
of the period 372,194 1,524,138
------------ ------------
Cash and cash equivalents at the
end of the period $479,714 $326,529
============ ============
SELECTED NON CASH ACTIVITIES:
Total property acquisitions $1,426,656 $ -
Common stock issued to acquire property (9,375) -
------------ ------------
Net cash used to acquire property $1,417,281 $ -
============ ============
</TABLE>
KESTREL ENERGY, INC.
NOTES TO FINANCIAL STATEMENTS
-----------------------------
1. Management Opinion
These condensed financial statements should be read in conjunction
with the audited financial statements and notes thereto included in
the Company's Annual Report on Form 10-K for the fiscal year ended
June 30, 1998.
In the opinion of management, the accompanying interim unaudited
financial statements contain all the adjustments necessary to present
fairly the financial position of the Company as of March 31, 1999,
the results of operations for the periods shown in the statements of
operations, and cash flows for the periods shown in the statements of
cash flows. All adjustments made are of a normal recurring nature.
2. Use of Estimates
The preparation of financial statements requires management to make
estimates and assumptions that affect certain reported amounts and
disclosures. Accordingly, actual results could differ from those
estimates.
ITEM 2. Management's Discussion and Analysis of Financial Condition and
Results of Operations
LIQUIDITY AND CAPITAL RESOURCES
-------------------------------
At March 31, 1999, the Company had working capital of $1,123,199. This
compares to the Company's working capital of $3,137,982 as of June 30,
1998. The decrease in working capital during the period is attributable
to the net loss incurred by the Company and to the use of working capital
for operations and acquisition of unproved properties.
Net cash used by operating activities was $457,853 for the nine months
ended March 31, 1999, an increase of $586,545 over net cash used of
$1,044,398 a year ago. The increase in operating cash flows resulted
primarily from the payment of receivables from a related party, an
increase in accrued liabilities, a non-cash adjustment for property
impairment, and a lower net loss as compared to the prior year. The
Company's accounts receivable decreased $4,492, or 3%, to $162,076 during
the nine month period as compared to a decrease of $5,063, or 3%, for the
same period a year ago. Amounts due from related party decreased
$218,118, or 55%, to $175,057 versus an increase of $110,477 a year ago.
The decrease is a result of the payment of joint interest billings by
Victoria Petroleum USA, Inc. Other assets increased $20,251, or 55%, to
$57,141 during the period versus an increase of $20,866, or 241%, a year
ago. The increase for the period is due to the payment of insurance
premiums covering the fiscal year ending in June 1999 and prepayment of
drilling costs of approximately $8,500. Additionally, the Company
acquired a 16.67% interest for $8,438 in Farpuri (PNG) Limited, which was
formed to hold a 4.22% working interest in the Tumuli #1 well on PPL
106/213 in Papua New Guinea. Accounts payable decreased $73,398, or 52%,
to $66,591 for the period versus an increase of $39,318, or 20%, a year
ago. The decrease in accounts payable is primarily attributable to the
lower exploration and drilling activity by the Company. The Company's
accrued liabilities increased $11,688, or 54%, to $33,375 during the
period versus a decrease of $83 a year ago. The increase in accrued
liabilities was primarily attributable to an increase in revenue
distributions payable on the Dines Unit in Wyoming.
Net cash provided by investing activities was $565,373 for the nine month
period ended March 31, 1999, versus cash used of $137,806 for the same
period in 1998. The increase in cash flow provided by investing
activities was attributable to redemptions by the Company of short-term
investments in the amount of $1,981,654 for working capital purposes.
Property acquisitions included $19,000 to acquire an additional interest
in the Lake Bouef Prospect, LaFourche Parish, Louisiana and $56,000 to
drill a developmental well on the Lake Bouef Prospect in March 1999. The
well encountered engineering problems and the Company is currently
reviewing its options regarding additional work, which may be required to
finalize the completion of the well. The Company expended $23,500 to
continue development and completion of the CBM 24-15, a coalbed methane
well in the Hilight Field, Campbell County, Wyoming, approximately $19,700
to continue development of the Kaye Unit in Converse and Niobrara
Counties, Wyoming and approximately $1,295,000 to acquire and begin
development of the Poitevent and Dines Prospects in Sweetwater County,
Wyoming. In September 1998, the Company acquired a 100% working interest
in the Poitevent Prospect by issuing 25,000 shares of stock to Green River
Resources, Inc. valued at $9,375 and a commitment to develop certain
properties within the prospect. Additional purchases included $7,400 for
computers and related equipment and $6,100 for various leases acquired in
the San Joaquin Basin. The Company sold its 10% working interest in the
Edna Dupplechain well located in St. Landry Parish, Louisiana for $1,000
in January 1999.
No cash was provided by or used from financing activities during the nine
month period ended March 31, 1999 versus cash used in financing activities
of $15,405 for the period ended March 31, 1998.
RESULTS OF OPERATIONS
---------------------
The Company reported a loss of $276,025, or 6 cents per share, for the
three month period ended March 31, 1999. This compares with a loss of
$307,580, or 7 cents per share, for the same period a year ago. The
decrease in net loss versus a year ago is attributable to significantly
lower overall costs, despite substantially lower oil and gas revenues for
the quarter ended March 31, 1999.
The Company reported a loss of $914,348, or 20 cents per share, for the
nine months ended March 31, 1999. This compares with a loss of
$1,101,832, or 25 cents per share, a year ago. The decrease in loss is
attributable to lower overall expenses despite a 30% decline in the
Company's revenue for the nine month period.
The Company's revenues for the three month period ended March 31, 1999
were $182,175 compared to $351,190 during the same period of 1998, a
decrease of $169,015, or 48%. Revenue from oil and gas sales was $158,404
for the period ended March 31, 1999, a decrease of $88,252, or 36%, as
compared to $246,656 for the same period in 1998. The decrease in oil and
gas revenues, despite higher volumes of gas sold, was a result of
significantly lower oil and gas prices and lower volumes of oil sold
compared to a year ago. Interest income decreased $28,471, or 71%, to
$11,592 from $40,063 a year ago. The decrease in interest income is
attributable to the reduction of short-term investments, as these
investments have been liquidated to meet cash flow requirements. Other
income decreased $51,504 to $12,967 during the period versus $64,471 a
year ago. Other income reflects overhead charged to the Company's San
Joaquin Joint Venture partner. Other income a year ago reflected seven
months of overhead charges to our San Joaquin Joint Venture partner versus
three months in the current period.
The Company's total revenues for the nine month period ended March 31,
1999 were $657,087 compared to $941,992 during the same period in 1998, a
decrease of $284,905, or 30%. Revenue from oil and gas sales was $533,094
for the nine months ended March 31, 1999, a decrease of 177,213, or 25%,
as compared to $710,307 a year ago. The decrease in oil and gas sales was
primarily attributable to significantly lower oil and gas prices and lower
volumes of oil sold. Interest income declined to $73,315 to the nine
months ended March 31, 1999 versus $152,828 a year ago. The decrease of
$79,513, or 52%, is attributable to the reduction of short-term
investments, as investments have been liquidated to meet cash flow
requirements. Other income decreased $16,714, or 25%, to $51,466 for the
nine months ended March 31, 1999 as compared to $68,180 a year ago. The
decrease in other income reflects lower overhead charges to our San
Joaquin Joint Venture partner due to the reduction in exploration activity
in the San Joaquin Basin.
The Company's total expenses for the third quarter decreased $200,570, or
30%, to $458,200 as compared to $658,770 a year ago. The decrease in
overall expenses is due to lower dry hole and exploration expenses as the
Company has reduced its activity in the San Joaquin Basin due to continued
weakness in the prices of oil and gas.
Total expenses for the nine months ended March 31, 1999 decreased
$472,389, or 23%, to $1,571,435 versus $2,043,824 a year ago. The
reduction in overall expenses is a result of lower exploration expenses
and dry hole costs as the Company has reduced its exploration activity and
to cost cutting measures implemented by the Company.
Production and operating expenses for the three month period increased
$49,264, or 50%, to $148,064 versus $98,800 for the same period a year
ago. The increase in production and operating expenses was due to higher
lease operating and workover costs on the Dines Unit in Wyoming, of
approximately $29,000 and a one-time payment of production expenses on the
Grady Unit.
For the nine months ended March 31, 1999, production and operating
expenses rose $7,034, or 2%, to $328,300 as compared to $321,266 a year
ago. Lease operating and workover costs increased on the Dines Unit in
Wyoming, offsetting reductions of lease operating expenses on the Pierce
Unit in Wyoming and the elimination of expense for the abandoned Kuehne
Ranch Unit a year ago.
Exploration expenses for the quarter ended March 31, 1999 decreased
$152,223, or 77%, to $46,002 from $198,225 a year ago. The reduction is
attributable to a reduction of the Company's emphasis on exploration due
to significantly lower oil and gas prices.
For the nine months ended March 31, 1999 exploration expenses decreased
$119,091, or 24%, to $377,298, versus $496,389 a year ago. The decrease
is primarily attributable to the reduction in exploration activity
domestically as a result of significantly lower oil and gas prices. The
Company continues to review potential exploration projects.
Dry holes, abandoned and impaired properties expense for the third quarter
decreased $95,626, or 89%, to $12,374 from $108,000 a year ago. The
decrease from year ago levels was attributable to lower dry hole expense.
The Company participated in three wells during the quarter ended March 31,
1999. The Sage-1 was drilled successfully on the WA-254-P permit in
Australia's offshore Carnarvon Basin in March 1999, at an estimated cost
of $42,300 to the Company. The well is currently shut-in pending further
development on the permit by the Company and other working interest
owners. The Company estimates an additional $300,000 from the Company
will be required for further development and completion of the well. The
Company also drilled a developmental well on the Lake Boeuf Prospect in
LaFourche, Louisiana in March 1999, as previously discussed under
liquidity and capital resources. During the period, the Company impaired
certain international permits at a cost of $12,374.
Dry holes, abandoned and impaired properties expense declined $306,614, or
60%, to $205,772 for the nine months ended March 31, 1999 versus $512,386
a year ago. The decrease in dry hole expenses during the nine month
period is attributable to the reduction in drilling activity by the
Company both domestically and internationally due to slumping oil and gas
prices. During the period, the Company impaired certain international
permits at a cost of $37,122.
General and Administrative costs for the three months ended March 31, 1999
increased $13,730, or 7%, to $220,942 as compared to $207,212 for the same
period a year ago. The increase in overall expenses is attributable to
higher insurance costs and building rent.
The Company's general and administrative expenses for the nine months
ended March 31, 1999 decreased $51,679, or 9%, to $544,270 as compared to
$595,949 a year ago. The decrease is attributable to various cost cutting
measures adopted by the Company as a result of low oil and gas prices.
The Company was able to reduce investor relation cost by approximately
$41,000 and reduced costs for outside geological consultants.
THE YEAR 2000 ISSUE
-------------------
THE PROBLEM. The year 2000 issue is the result of computer programs being
written using two digits rather than four to define the applicable year.
As a result, any of the Company's computer programs that have date-
sensitive software may recognize a date using "00" as the year 1900 rather
than the year 2000. This could result in system failures or
miscalculations causing disruptions of operations of the Company and its
suppliers and customers.
THE COMPANY'S STATE OF READINESS. The Company has instituted a year 2000
project. As a part of the Company's year 2000 project, the Company has
evaluated its current computer systems, software and embedded
technologies. The Company's internal systems and or programs are
predominantly "off-the-shelf" products with year 2000 versions now
available. The Company's internal network, e-mail system and accounting
and business process software have been updated to be year 2000 compliant
utilizing vendor provided upgrades.
During the period ended March 31, 1999, the Company completed its Year
2000 survey of its significant vendors and suppliers. The Company
surveyed 36 companies in all, and 23, or 64%, responded. Overall results
of the Company's survey indicated that a significant number of those
suppliers and vendors who responded are currently compliant or had taken
steps to become internally compliant regarding operating systems by
October of 1999. Additionally, most respondents indicated that they could
not make any guarantees for outside and third party suppliers and vendors
regarding their Year 2000 compliance. However, there can be no guarantee
that the systems of other companies on which the Company's business relies
will be timely converted, or that a failure to convert by another company,
or a conversion that is incompatible with the Company's systems, would not
have a material adverse effect on the Company operations.
THE COSTS TO ADDRESS THE COMPANY'S YEAR 2000 ISSUES. Expenditures through
March 31, 1999 that can be attributed, at least in part, to the year 2000
project were to approximately $40,000 for a new accounting program and
internal network, both of which are year 2000 compliant based on vendor
assertions. Management does not expect that the completion of its year
2000 project will result in significant additional expenditures but cannot
accurately quantify these costs at this time.
THE RISKS ASSOCIATED WITH THE COMPANY'S YEAR 2000 ISSUES. The Company's
failure to resolve year 2000 issues on or before December 31, 1999 could
result in system failures or miscalculations causing disruption in
operations, including among other things, a temporary inability to process
transactions, send invoices, send and/or receive e-mail and voice mail, or
engage in normal business activities. Additionally, failure of third
parties upon whom the Company's business relies to timely remediate their
year 2000 issues could result in disruptions in the Company's field
operations, late, missed, or unapplied payments, and other general
problems related to the Company's daily operations. While the Company
believes its year 2000 project will adequately address the Company's
internal year 2000 issues, until the Company receives responses from a
significant number of the Company's suppliers and customers, the overall
risks associated with the year 2000 issue remain difficult to accurately
describe and quantify, and there can be no guarantee that the year 2000
issue will not have a material adverse effect on the Company and its
operations.
THE COMPANY'S CONTINGENCY PLAN. The Company has not, to date, developed a
year 2000 contingency plan. It is the Company's goal to have the major
year 2000 issues resolved by June 1999. However, the Company would expect
to develop and implement a contingency plan by the end of June, 1999, in
the event the Company's year 2000 project should fall behind schedule.
FORWARD LOOKING STATEMENTS
--------------------------
This report includes one or more statements, which state or otherwise
indicate the Company's present belief or expectation concerning future
events. Such statements are forward looking statements on which investors
should not rely because they are subject to a wide variety of
contingencies and based on a number of assumptions, which may not prove to
be true. In particular, the Company's future success is highly dependent
on the success of its exploratory drilling efforts, which cannot be safely
predicted. In addition, the Company is highly dependent upon prevailing
prices for petroleum products, its ability to attract and retain qualified
personnel, as well as other risk factors affecting business generally,
such as overall economic conditions, changes in tax and other laws and the
effect of actions taken by competitors and regulatory authorities.
INFLATION AND CHANGING PRICES
-----------------------------
Inflation has not had a significant effect on the Company's results of
operations. However, the constantly fluctuating price of crude oil and
natural gas materially affects the Company's cash flows, both positively
and negatively.
PART II. OTHER INFORMATION
---------------------------
ITEM 1. LEGAL PROCEEDINGS
Not applicable
ITEM 2. CHANGES IN SECURITIES
Not applicable
ITEM 3. DEFAULTS UPON SENIOR SECURITIES
Not applicable
ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
At the Company's annual meeting of shareholders on February
24, 1999, in Denver, Colorado, the Company's shareholders
elected Timothy L. Hoops, Robert J. Pett, Mark A. Boatright,
John T. Kopcheff, Kenneth W. Nickerson, and Mark A. E. Syropoulo
to the Company's Board of Directors. The shareholders also
approved KPMG LLP as the Company's independent certified public
accountants and auditors for the year ending June 30, 1999, and
approved certain amendments to the nonqualified stock option
plan to increase the number of shares reserved under the plan to
1,200,000 from 1,000,000.
There were 4,456,000 shares of the Company's Common Stock
issued and outstanding, of which 4,456,000 were entitled to vote
at the meeting. Of that number, 2,350,230 were present in person
or by proxy at the meeting. With respect to the election of
directors, the votes were as follows: Mr. Hoops - 2,348,923
shares in favor, 1,307 withheld; Mr. Pett - 2,348,903 shares in
favor, 1,327 withheld; Mr. Boatright - 2,348,923 shares in
favor, 1,307 withheld; Mr. Kopcheff - 2,348,903 shares in favor,
1,327 withheld; Mr. Nickerson - 2,348,903 shares in favor, 1,327
withheld and Mr. Syropoulo - 2,348,923 shares in favor, 1,307
withheld. The selection of KPMG LLP received a vote of
2,323,610 shares for, 112 against and 26,508 abstaining. The
amendments to the nonqualified stock option plan were approved,
with 2,303,246 shares for, 21,382 against and 25,602 abstaining.
Abstentions and broker non-votes were counted for purposes of
establishing a quorum only. Only those votes cast for the
election of directors and the other proposals were counted as
voted in favor or affirmative votes.
ITEM 5. OTHER INFORMATION
Not applicable
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K
(a) Exhibits
27 Financial Data Schedule
(b) Reports on Form 8-K - None
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.
KESTREL ENERGY, INC.
--------------------------------------
(Registrant)
Date: May 17, 1999 /s/TIMOTHY L. HOOPS
----------------------- --------------------------------------
Timothy L. Hoops
President, Principal Executive
Officer, and Director
Date: May 17, 1999 /s/MARK A. BOATRIGHT
----------------------- --------------------------------------
Mark A. Boatright
Vice President - Finance,
Principal Financial and Accounting
Officer, and Director
EXHIBIT INDEX
No. Description Method of Filing
- --- ----------- ----------------
27 Financial Data Schedule Filed herewith electronically
<TABLE> <S> <C>
<ARTICLE> 5
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> JUN-30-1999
<PERIOD-END> MAR-31-1999
<CASH> 480
<SECURITIES> 349
<RECEIVABLES> 337
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 1,223
<PP&E> 6,257
<DEPRECIATION> 2,887
<TOTAL-ASSETS> 4,593
<CURRENT-LIABILITIES> 100
<BONDS> 0
0
0
<COMMON> 13,149
<OTHER-SE> (8,656)
<TOTAL-LIABILITY-AND-EQUITY> 4,593
<SALES> 533
<TOTAL-REVENUES> 657
<CGS> 0
<TOTAL-COSTS> 0
<OTHER-EXPENSES> 1,571
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> (914)
<INCOME-TAX> 0
<INCOME-CONTINUING> (914)
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (914)
<EPS-PRIMARY> (.20)
<EPS-DILUTED> (.20)
</TABLE>
