SECURITIES AND EXCHANGE COMMISSION
Washington D.C. 20549
FORM 10Q
QUARTERLY REPORT PURSUANT OF SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
For the Quarter Ended - June 30, 1996
0-9295
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Commission File Number
WINCO PETROLEUM CORPORATION
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(Exact name of registrant as specified in its charter)
Colorado 84-0794604
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(State of other jurisdiction of (I.R.S. Employer
incorporation of organization Identification number)
1645 Court Place, Suite 312
Denver, Colorado 80202
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(Address of principal executive offices) (Zip Code)
(303) 623-9095
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(Registrant's telephone number, including area code)
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(Former name, former address, former fiscal year if change since last
report)
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 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
----- -----
Indicate the number of shares outstanding of each of the issuer's classes of
common stock, as of the close of the period covered by this report.
Class: Common Stock, No par value
Outstanding as of June 30, 1996: 23,000,000
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WINCO PETROLEUM CORPORATION
CONDENSED BALANCE SHEET
June 30, 1996 September 30, 1995
(Unaudited) (Audited)
------------ ------------
ASSETS
CURRENT ASSETS:
Cash and short-term
cash investments $ 118,531 $ 155,911
Notes and accounts
receivable 66,881 39,057
Prepaid expenses and other 4,650 6,559
----------- -----------
Total Current Assets $ 190,062 $ 201,527
INVESTMENTS IN OIL AND GAS
PROPERTIES AT COST, NET
(Using the full cost method
of accounting) 104,136 118,793
WELL EQUIPMENT INVENTORY AT
LOWER OF COST OR MARKET 59,993 59,993
FURNITURE, FIXTURES AND
VEHICLES AT COST, Net of
allowances for depreciation 1,549 2,131
OTHER ASSETS 9,000 11,500
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$ 364,740 $ 393,944
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LIABILITIES AND STOCKHOLDERS' INVESTMENT
CURRENT LIABILITIES:
Accounts payable to
stockholders and directors $ 75 $ 482
Accounts payable and
accrued liabilities 38,372 25,876
----------- -----------
Total Current Liabilities $ 38,447 $ 26,358
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STOCKHOLDERS' INVESTMENT
Common stock, no par value;
50,000,000 shares authorized;
23,000,000 shares issued and
outstanding 173,000 173,000
Additional paid in capital 1,249,320 1,249,320
Accumulated deficit (1,096,027) (1,054,734)
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Total Stockholders' Equity $ 326,293 $ 367,586
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$ 364,740 $ 393,944
=========== ===========
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WINCO PETROLEUM CORPORATION
CONDENSED STATEMENT OF EARNINGS
(Unaudited)
<TABLE>
<CAPTION>
Three Months Nine Months
Ended June 30, Ended September 30,
1996 1995 1996 1995
------ ------ ------ ------
<S> <C> <C> <C> <C>
REVENUES:
Oil and gas sales $ 31,867 $ 21,635 $ 78,891 $ 75,273
Interest 1,197 1,430 3,520 3,853
---------- ---------- ---------- ----------
$ 33,064 $ 23,065 $ 82,411 $ 79,126
Lease operating
expenses and
royalties 16,813 19,902 50,729 56,791
General and
administrative 19,335 18,535 54,111 50,173
Depreciation, depletion
and amortization
(Note 2) 9,469 2,181 18,850 4,858
---------- ---------- ---------- ----------
$ 45,617 $ 40,618 $ 123,690 $ 111,822
Loss before income tax (12,553) (17,553) (41,279) (32,696)
Income tax expense
(benefits) $ -- $ -- $ -- $ --
---------- ---------- ---------- ----------
NET LOSS: $ (12,553) $ (17,553) $ (41,279) $ (32,696)
========== ========== ========== ==========
NET LOSS PER COMMON SHARE:
Primary and fully
diluted $ -- $ -- $ -- $ --
========== ========== ========== ==========
WEIGHTED AVERAGE SHARES
OUTSTANDING: 23,000,000 23,000,000 23,000,000 23,000,000
========== ========== ========== ==========
</TABLE>
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<PAGE>
WINCO PETROLEUM CORPORATION
STATEMENT OF CASH FLOW
June 30, 1996 September 30, 1995
(Unaudited) (Audited)
------------ ------------
Cash flows from operating activities
Net loss $ (41,278) $ (59,881)
Adjustment to reconcile net loss to
cash used in operating activities:
Depreciation, depletion and
amortization 18,849 21,876
Loss on sale well equipment
inventory 2,243
Changes in current assets and
current liabilities:
Accounts receivable (27,824) (7,816)
Prepaid and other expenses 1,909 459
Accounts payable 12,089 (1,609)
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Net cash used in operating
activities (36,255) (44,728)
Cash flows from investing activities:
Investment in oil and gas
properties (1,125) (3,402)
---------- ----------
NET INCREASE (DECREASE) IN
CASH AND CASH EQUIVALENTS (37,380) (48,130)
Cash and cash equivalents at
beginning of the period 155,911 204,041
---------- ----------
Cash and cash equivalents at end
of the period $ 118,531 $ 155,911
========== ==========
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___________________________________________________________________________
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WINCO PETROLEUM CORPORATION
NOTES TO CONDENSED FINANCIAL STATEMENTS
(Unaudited)
CONDENSED FINANCIAL STATEMENTS
1. The accompanying, unaudited, condensed financial statements have been
prepared in accordance with Rule 10-01 of Regulation S-X and do not include all
principles for completed financial statements.
In the opinion of Winco Petroleum Corporation the accompanying unaudited,
condensed financial statements contain all adjustments (consisting of normal
adjustments) necessary to present fairly the financial position as of June 30,
1996 and the results of operations and changes in financial position for the
three months then ended. Operating results for the three months ended June 30,
1996 are not necessarily indicative of the results that may be expected for the
fiscal year ending September 30, 1996. These statements should be read in
conjunction with the financial statements and notes thereto included in Form
10-K for the fiscal year ended September 30, 1995.
INVESTMENTS IN OIL AND GAS PROPERTIES
2. Depreciation and depletion of the full cost pool is computed using a unit-
of-production method based on proved reserves as determined annually by the
Company and independent engineers. A provision of $9,469 was made for the
three months ended June 30, 1996. Reserve for depreciation and depletion was
$983,022 and $965,046 on June 30, 1996 and September 30, 1995 respectively.
EARNINGS PER SHARE
3. Earnings per common share were computed by dividing net income by the
weighted average number of shares of common stock outstanding during the three
month period ended June 30, 1996 and 1995. The weighted average shares
outstanding for the period ending June 30, 1996 and 1995 was 23,000,000 shares.
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_____________________________________________________________________________
<PAGE>
WINCO PETROLEUM CORPORATION
MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
LIQUIDITY AND CAPITAL RESOURCES
During the three months ended June 30, 1996 the Company's working capital
decreased $2,644. Working capital decreased due to decrease in oil sales. The
Company's working capital at June 30, 1996 was $151,615.
The Company intends to utilize funds to purchase producing properties.
The Company will consider those arrangements which are financially feasible
under current conditions.
RESULTS OF OPERATIONS FOR THE THREE MONTHS ENDED JUNE 30, 1996
During the three months ended June 30, 1996 oil and gas sales increased
approximately $10,000 from the comparable period in 1995 due to oil on hand at
end of prior period.
Interest income remained comparable.
Due to net operating loss carry forward and the tax credits available for
financial reporting and tax reporting purposes, the Company does not expect any
significant income tax effects in the current year.
General and administrative expense was decreased from the comparable
quarter in 1995 due to audit expense paid in this period.
As of June 30, 1996, the Company plugged the Olsen Draw Federal #1.
Pursuant to lease arrangements with the mine that owns all the surface acreage,
the Company had to plug the well when the mine was ready to begin excavations
in that specific area. The net effect after plugging well, removing the
unamortized costs of production and equipment, and recording proceeds from the
sale of equipment and plugging contribution from the mine, was reflected in
operations from the quarter ended June 30, 1996. The same lease arrangement
affects the Hummer Federal #1 well, and it is estimated that it may have to be
plugged within the next two years.
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______________________________________________________________________________
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WINCO PETROLEUM CORPORATION
PART II
ITEM 6: EXHIBITS AND REPORTS ON FORM 8-K.
A current report on Form 8-K, dated July 3, 1996, was filed reporting
acquisition of assets under Item. 2 thereof.
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______________________________________________________________________________
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SIGNATURES
Pursuant to the requirements of the Securities and Exchange Act of 1934,
the Registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
WINCO PETROLEUM CORPORATION
/s/ L. W. Winkler, Jr.
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L. W. Winkler, Jr.
President
Dated: July 23, 1996
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<TABLE> <S> <C>
<ARTICLE> 5
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> SEP-30-1996
<PERIOD-START> OCT-01-1995
<PERIOD-END> JUN-30-1996
<CASH> 118
<SECURITIES> 0
<RECEIVABLES> 72
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 190
<PP&E> 175
<DEPRECIATION> 0
<TOTAL-ASSETS> 365
<CURRENT-LIABILITIES> 38
<BONDS> 0
0
0
<COMMON> 173
<OTHER-SE> 1249
<TOTAL-LIABILITY-AND-EQUITY> 358
<SALES> 29
<TOTAL-REVENUES> 82
<CGS> 124
<TOTAL-COSTS> 41
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 0
<INCOME-TAX> 0
<INCOME-CONTINUING> 0
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 0
<EPS-PRIMARY> 0
<EPS-DILUTED> 0
</TABLE>
