<PAGE>
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10Q
QUARTERLY REPORT UNDER SECTION 13 OR 15 (d)
OF THE SECURITIES EXCHANGE ACT OF 1934
For Quarter Ended September 30, 1996 Commission File Number 0-9394
BLACK DOME ENERGY CORPORATION
------------------------------------------------------
(Exact name of registrant as specified in its charter)
Colorado 84-0808397
------------------------------ ------------
(State or other jurisdiction of (IRS Employer
incorporation or organization) Identification No.)
1536 Cole Blvd., Ste #325
Golden,_Colorado 80401
------------------------------ --------
(Address of principal executive (Zip code)
offices)
Registrant's telephone number, including area code: (303)231-9059
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
At September 30, 1996, 73,755 shares of no par value common stock (the
registrant's only class of voting stock) were outstanding.
Page 1
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BLACK DOME ENERGY CORPORATION
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INDEX TO FORM 10-Q
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SEPTEMBER 30, 1996
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PART I - FINANCIAL INFORMATION PAGE
- ------------------------------ ----
Item 1. Financial Statements.
Condensed balance sheet 3
at September 30, 1996 and
December 31, 1995.
Statement of operations for 5
for the nine-month periods ended
September 30, 1996 and 1995.
Condensed statement of cash flows 6
for the nine-month periods ended
September 30, 1996 and 1995
Item 2. Management's Discussion and 7
Analysis of Financial Conditions and
Results of Operations.
PART II - OTHER INFORMATION 8
------------------------------
The financial information furnished in this Form 10-Q reflects all
adjustments which are, in the opinion of management, necessary for a fair
presentation of the financial position of the Company and results of its
operations for the interim periods presented.
Page 2
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PART I - FINANCIAL INFORMATION
- ------------------------------
Item 1. Financial Statements
- -----------------------------
BLACK DOME ENERGY CORPORATION
CONDENSED BALANCE SHEET
<TABLE>
<CAPTION>
September 30, December 31,
1996 1995
----------- ----------
(Unaudited) (Note)
ASSETS
------
<S> <C> <C>
Current Assets:
Cash $ 230,211 $ 63,008
Accounts Receivable 72,615 80,130
---------- ----------
Total current assets $ 302,826 $ 143,138
---------- ----------
Property and equipment, at cost:
Oil and gas properties - net
(successful efforts method) 120,095 220,994
Materials and supplies 29,017 44,926
Other property and equipment - net -- 1,988
--------- --------
Total assets $ 451,938 $ 411,046
========= =========
</TABLE>
Note: The balance sheet at December 31, 1995 has been taken from the audited
financial statements at that date, and condensed.
Page 3
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BLACK DOME ENERGY CORPORATION
- -----------------------------
BALANCE SHEET (CONT'D)
- ----------------------
<TABLE>
<CAPTION>
September 30, December 31,
1996 1995
--------- ----------
(Unaudited) (Note)
LIABILITIES AND STOCKHOLDER'S EQUITY
-------------------------------------
<S> <C> <C>
Current Liabilities:
Accounts Payable $ 113,634 $ 79,243
Note Payable - Bank 33,758 84,987
Other Payables 9,600 9,600
Deferred Compensation 222,500 160,000
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Total Current Liabilities 379,492 333,830
---------- ----------
Stockholders' Equity:
Common stock; no par value;
authorized 10,000,000 shares,
issued and outstanding 73,755
2,170,353 2,170,353
Accumulated deficit (2,097,907) (2,093,137)
----------- -----------
Total stockholders' equity 72,446 77,216
----------- -----------
Total liabilities and
stockholders' equity $ 451,938 $ 411,046
=========== ==========
</TABLE>
Note: The balance sheet at December 31, 1995 has been taken from the audited
financial statements at that date, and condensed.
Page 4
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BLACK DOME ENERGY CORPORATION
- -----------------------------
STATEMENT OF OPERATIONS
-----------------------
<TABLE>
<CAPTION>
Nine Months
Ended
September 30,
------------------------------
1996 1995
------ ------
(Unaudited)
<S> <C> <C>
Revenue:
Oil and gas sales $441,954 $328,573
Operating income 8,517 8,517
Interest Income 236 357
Miscellaneous -- 290
-------- --------
Total $450,707 $337,737
-------- --------
Expenses:
Oil & Gas production 135,490 141,944
Production and windfall
profit taxes 24,690 19,465
Depreciation, depletion
and amortization 120,000 150,000
General & Administrative 175,297 177,401
Total $455,477 $488,810
-------- --------
Net Income (loss) $< 4,770> $<151,073>
========= ==========
Income per common and
common equivalent share $ < .06> $ <2.05>
========= =========
</TABLE>
The Company changed its line of credit in 1995 to a term note payable in the
amount of $91,509.
Page 5
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BLACK DOME ENERGY CORPORATION
- -----------------------------
CONDENSED STATEMENT OF CASH FLOWS
---------------------------------
<TABLE>
<CAPTION>
Nine Months
Ended
September 30,
-------------------------
1996 1995
------ ------
(Unaudited)
<S> <C> <C>
Cash flows from operating activities:
Net earnings (loss) $< 4,770> $<151,073>
Depreciation, depletion, amortization 120,000 150,000
Changes in assets and liabilities:
Increase (decrease) in receivables 7,515 2,480
Increase (decrease) in accounts payable 34,391 15,501
Increase (decrease) in other liabilities -- 2,294
Increase (decrease) in deferred comp. 62,500 44,600
-------- --------
Net cash provided (used) by 219,636 63,802
operating activities -------- --------
Cash flows from investing activities:
Purchase of equipment < 17,113> < 17,832>
Purchase of well equipment inventory,
net of transfers to wells 15,909 < 10,696>
-------- -------
Net cash (used in) provided by
investing activities < 1,204> < 28,528>
--------- ---------
Cash flows from financing activities:
Increase (decrease) in line-of-credit -- < 41,215>
Increase (Decrease) in notes payable <51,229> < 14,467>
-------- ---------
Net cash (used in) provided by
financing activities <51,229> < 55,682>
-------- ---------
Increase (decrease) in cash 167,203 < 20,408>
Cash balance at beginning of period 63,008 53,429
--------- ---------
Cash balance at end of period $ 230,211 $ 33,021
========= =========
</TABLE>
Page 6
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Item 2. Management's Discussion and Analysis of Financial
Condition and Results of Operations.
- ----------------------------------------------------------
General
- -------
This discussion and analysis covers variations in the balance sheets
December 31, 1995, and September 30, 1996, and in the statements of
operations and changes in cash flows for the nine-month periods ended
September 30, 1996 and 1995.
The Company is currently preparing a proxy for a meeting of its
shareholders. Due to declining reserves and the difficulty of replacing the
reserves, the Company's liquidity on an ongoing basis is becoming difficult
to maintain and the Company will present to its shareholders a motion to
consider possible liquidation.
Liquidity and Capital Resources
- -------------------------------
Cash increased by $167,203 from December 31, 1995 to the end of the
third quarter, 1996. This increase in cash was attributable primarily to
maintenance and increase in product prices. Cash flows and current revenues
are estimated to be sufficient to meet anticipated operating requirements
for more than one year.
Results of Operations
- ---------------------
Oil and gas sales have increased compared to the nine-month period in 1995
due to better product prices from the Company's operated oil and gas
properties.
Interest income is comparable to the prior period in 1995.
Depreciation, Depletion and Amortization (DDA) for the period has decreased
compared to the same nine-month period in 1995.
The Company's exploration expense reflects minimal exploration activity for
both periods.
Oil and gas production expenses are comparable for the nine-month periods of
1996 and 1995.
The Company's General and Administrative expense for the nine-months ended
September 30, 1996, decreased slightly for the nine months as compared to the
third quarter of 1995. Management is attempting to contain general and
administrative expenses by fully utilizing its existing personnel.
Page 7
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PART II - OTHER INFORMATION
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Item 6. Exhibits and Reports on Form 8-K.
- ------------------------------------------
(a) Exhibits: None
(b) Reports: None
SIGNATURES
----------
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on behalf of the
undersigned thereunto duly authorized.
(Registrant) BLACK DOME ENERGY CORPORATION
BY (Signature) /s/ Edgar J. Huff
(Date) November 11, 1996
(Name and Title) Edgar J. Huff, President
and Chief Financial Officer
Page 8
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 5
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-END> SEP-30-1996
<CASH> 230,211
<SECURITIES> 0
<RECEIVABLES> 72,615
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 302,826
<PP&E> 120,095
<DEPRECIATION> 0
<TOTAL-ASSETS> 451,938
<CURRENT-LIABILITIES> 379,492
<BONDS> 0
73,755
0
<COMMON> 0
<OTHER-SE> 0
<TOTAL-LIABILITY-AND-EQUITY> 451,938
<SALES> 441,954
<TOTAL-REVENUES> 450,707
<CGS> 0
<TOTAL-COSTS> 455,477
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> (4,770)
<INCOME-TAX> 0
<INCOME-CONTINUING> 0
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (4,770)
<EPS-PRIMARY> (.06)
<EPS-DILUTED> (.06)
</TABLE>
