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 - December 31, 1999
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 or other jurisdiction of (I.R.S. Employer Identification Number)
incorporation of organization)
P O BOX 342
GARDEN CITY, KANSAS 67846
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(Address of principle executive offices) (Zip Code)
(316) 275-2963
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(Registrant's telephone number. Including area code)
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(Former name, former address, former fiscal year if changed 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 class of
common stock, as of the close of the period covered by this report.
Class: Common Stock, No par value
Outstanding as of December 31, 1999: 41,152,606
<PAGE>
WINCO PETROLEUM CORPORATION
CONDENSED BALANCE SHEET
December 31, September 30,
1999 1999
(Unaudited) (Audited)
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ASSETS
- ------
CURRENT ASSETS:
Cash and short-term investment $ 290,725 $ 273,172
Notes and accounts receivable 28,692 77,097
Prepaid expenses and other - -
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TOTAL CURRENT ASSETS 319,417 350,269
INVESTMENTS IN OIL AND GAS PROPERTIES
At Cost, Net (Using the full cost
method of of accounting) 214,467 220,989
FURNITURE, FIXTURES AND VEHICLES, At Cost,
Net of Allowances for Depreciation - -
OTHER ASSETS 1,000 1,000
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TOTAL ASSETS $ 534,884 $ 572,258
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LIABILITIES AND STOCKHOLDERS' INVESTMENT
- ----------------------------------------
CURRENT LIABILITIES:
Accounts payable to stockholders
and directors $ - $ -
Accounts payable and accrued
liabilities 2,484 37,781
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TOTAL CURRENT LIABILITIES 2,484 37,781
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STOCKHOLDERS' INVESTMENT
Common stock, no par value;
500,000,000 shares authorized;
41,152,606 shares issued and outstanding 307,000 307,000
Additional paid in capital 1,292,920 1,292,920
Accumulated deficit (1,035,233) (1,033,156)
Treasury stock ( 32,287) ( 32,287)
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TOTAL STOCKHOLDERS' INVESTMENT 532,400 534,477
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TOTAL LIABILITIES AND
STOCKHOLDERS' INVESTMENT $ 534,884 $ 572,258
=========== ===========
<PAGE>
WINCO PETROLEUM CORPORATION
CONDENSED STATEMENT OF OPERATIONS
(UNAUDITED)
THREE MONTHS ENDED
December 31,
1999 1998
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REVENUES:
Oil and gas sales $ 46,874 $ 224
Interest income - 1,808
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46,874 2,032
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EXPENSES:
Lease operating expenses 35,087 32
General and administrative 7,342 4,981
Depreciation, depletion and
Amortization 6,522 4,507
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48,951 9,420
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Income (Loss) before income tax ( 2,077) ( 7,488)
Income tax expense (benefit) - -
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NET INCOME (LOSS) $( 2,077) $( 7,488)
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NET INCOME (LOSS) PER COMMON
SHARE - Primary and fully diluted $ - $ -
=========== ===========
WEIGHTED AVERAGE SHARES OUTSTANDING 41,152,606 41,152,606
=========== ===========
<PAGE>
WINCO PETROLEUM CORPORATION
STATEMENT OF CASH FLOW
THREE MONTHS ENDING DECEMBER 31,
1999 1998
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Cash flows from operating activities:
Net income (loss) $ ( 2,077) $ ( 7,488)
Adjustments to reconcile net loss to
net cash used in operating activities:
Depreciation, depletion and
amortization 6,522 4,507
Changes in current assets and
current liabilities:
Accounts Receivable 48,405 -
Accounts Payable ( 35,297) -
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Net cash provided (used) in
operating activities 17,553 ( 2,981)
Cash flows from (used in) investing activities:
Investment in oil and gas properties - -
Purchase of common stock for Treasury - ( 125)
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NET INCREASE (DECREASE) IN CASH
AND CASH EQUIVALENTS 17,553 ( 3,106)
Cash and Cash Equivalents at beginning
of period 273,172 328,202
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CASH AND CASH EQUIVALENTS AT END OF PERIOD $ 290,725 $ 325,096
=========== ===========
<PAGE>
WINCO PETROLEUM CORPORATION
NOTES TO CONDENSED FINANCIAL STATEMENTS
(UNAUDITED)
CONDENSED FINANCIAL STATEMENTS
- ------------------------------
1. The accompanying, unaudited 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 December 31, 1999 and the results of operations and changes in financial
position for the three months then ended. Operating results for the three
months ended December 31, 1999 are not necessarily indicative of the
results that may be expected for the fiscal year ending September 30, 2000.
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, 1999.
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 by the
Company and independent engineers. A provision of $6,522 was made for the
three months ended December 31, 1999. Reserve for depreciation and
depletion was $121,991 and $93,887 on December 31, 1999 and September 30,
1999, 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 December 31, 1999 and 1998. The weighted
average number shares outstanding for the periods ending December 31,
1999 and 1998 was 41,152,606.
<PAGE>
WINCO PETROLEUM CORPORATION
MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATION
LIQUIDITY AND CAPITAL RESOURCES
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During the three months ended December 31, 1999, the Company's working
capital increased $4,445. Working capital increased as a result of the
Company's normal operations. The Company's working capital at December 31,
1999 was $316,933.
The Company intends to utilize funds to purchase producing properties. The
Company may also participate in oil and gas development programs through
sharing arrangements with industry participants. The Company will consider
those arrangements which are financially feasible under current conditions.
RESULTS OF OPERATIONS FOR THE THREE MONTHS ENDED DECEMBER 31, 1999
- ------------------------------------------------------------------
During the three months ended December 31, 1999, oil and gas sales
increased $46,650 from the comparable period in 1998. Due to low oil
prices the Company restricted production and sales in 1998. Beginning in
the quarter ended December 31, 1999, higher oil prices allowed the Company
to improve production from its wells. There was a corresponding increase
in lease operating expenses of $35,055 between the same periods.
Interest income decreased from the comparable period in 1998 due to some
cash available for investment, being moved to another bank on a non-interest
basis.
Due to net operating loss carryforward and tax credits available for
financial and tax reporting purposes, the Company does not expect any
significant income tax effects in the current year.
General and administrative expense increased from the comparable quarter in
1998, primarily as a result of increasing oil and gas operations.
<PAGE>
WINCO PETROLEUM CORPORATION
PART II
ITEM 1. LEGAL PROCEEDINGS
None
ITEM 2. CHANGES IN SECURITIES
None
ITEM 3. DEFAULTS UPON SENIOR SECURITIES
None
ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITIES HOLDERS
None
ITEM 5. OTHER INFORMATION
None
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K
None
<PAGE>
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/ CECIL O'BRATE
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Cecil O'Brate, President
Dated: February 14, 2000
<TABLE> <S> <C>
<ARTICLE> 5
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> SEP-30-2000
<PERIOD-START> OCT-01-1999
<PERIOD-END> DEC-31-1999
<CASH> 290,725
<SECURITIES> 0
<RECEIVABLES> 28,692
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 319,417
<PP&E> 358,794
<DEPRECIATION> 144,328
<TOTAL-ASSETS> 534,884
<CURRENT-LIABILITIES> 2,484
<BONDS> 0
0
0
<COMMON> 307,000
<OTHER-SE> 225,400
<TOTAL-LIABILITY-AND-EQUITY> 534,884
<SALES> 46,874
<TOTAL-REVENUES> 46,874
<CGS> 0
<TOTAL-COSTS> 48,951
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> (2,077)
<INCOME-TAX> 0
<INCOME-CONTINUING> (2,077)
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (2,077)
<EPS-BASIC> 0
<EPS-DILUTED> 0
</TABLE>
