U.S. SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-QSB
[X] Quarterly Report under Section 13 or 15(d) of the Securities Exchange
Act of 1934 For the Quarterly Period Ended September 30, 2000
[ ] Transition Report under Section 13 or 15(d) of the Securities Exchange
Act of 1934
For the Transition Period from __________ to _________
Commission file number: 0-9435
FieldPoint Petroleum Corporation
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(Exact name of small business issuer as specified in its charter)
Colorado 84-0811034
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(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
1703 Edelweiss Drive
Cedar Park, Texas 78613
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(Address of principal executive offices) (Zip Code)
(512) 250-8692
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(Issuer's telephone number)
Check whether the issuer (1) filed all reports required to be filed by Section
13 or 15(d) of the Exchange Act during the past 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
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As of October 31, 2000, the number of shares outstanding of the Registrant's
$.01 par value Common Stock was 6,995,925.
Transitional Small Business Disclosure Format (Check one):
Yes No X
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PART I
Item 1. Condensed Consolidated Financial Statements
FieldPoint Petroleum Corporation
CONDENSED CONSOLIDATED BALANCE SHEETS
ASSETS
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September 30, December 31,
2000 1999
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<S> <C> <C>
CURRENT ASSETS: (unaudited)
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Cash $ 426,281 $ 117,259
Trading securities 2,880 2,880
Accounts receivable:
Advances 7,500 --
Oil and gas sales 164,467 135,067
Joint interest billings, less allowance for doubtful
accounts of $74,192 and $71,192 respectively 73,043 84,906
Prepaid expenses 54,534 2,535
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Total current assets 728,705 342,647
PROPERTY AND EQUIPMENT:
Oil and gas properties (successful efforts method):
Leasehold costs 2,613,923 2,396,998
Lease and well equipment 428,022 351,425
Furniture and equipment 32,497 32,280
Transportation equipment 75,974 75,974
Less accumulated depletion and depreciation (793,005) (675,424)
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Net property and equipment 2,357,411 2,181,253
OTHER ASSETS
Total assets 218,459 25,981
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$ 3,304,575 $ 2,549,881
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LIABILITIES AND STOCKHOLDERS' EQUITY
------------------------------------
CURRENT LIABILITIES:
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Current portion of long-term debt $ 284,817 $ 409,132
Accounts payable and accrued expenses 43,638 112,339
Oil and gas revenues payable 67,573 49,799
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Total current liabilities 396,028 571,270
LONG-TERM DEBT, net of current portion 360,348 559,462
DEFERRED INCOME TAXES 44,000 15,954
COMMMITMENTS
STOCKHOLDERS' EQUITY:
Common stock, $.01 par value, 75,000,000 shares authorized;
6,995,925 and 6,331,925 shares issued and outstanding,
respectively 69,959 63,319
Additional paid-in capital 1,904,627 1,177,785
Treasury stock, 117,500 shares of common stock (1,175) (1,175)
Retained earnings 530,788 163,266
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Total stockholders' equity 2,504,199 1,403,195
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Total liabilities and stockholders' equity $ 3,304,575 $ 2,549,881
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See accompanying notes to these consolidated financial statements
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FieldPoint Petroleum Corporation
CONDENSED CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME
For The Three Months Ended
September 30,
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2000 1999
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(unaudited) (unaudited)
REVENUE:
Oil and gas sales $ 383,942 $ 248,677
Well operational and pumping fees 32,219 32,759
Other -- --
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Total revenue 416,161 281,436
COSTS AND EXPENSES:
Production expense 152,131 96,103
Depletion and depreciation 39,000 36,000
General and administrative 55,018 81,246
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Total costs and expenses 246,149 213,349
OTHER INCOME (EXPENSE):
Interest income (expense), net (21,545) (27,933)
Miscellaneous 7,897 45
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Total other income (expense) (13,648) (27,888)
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INCOME BEFORE INCOME TAXES 156,364 40,199
INCOME TAX (PROVISION) (39,160) (6,200)
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NET INCOME 117,204 33,999
BASIC AND DILUTED NET INCOME PER SHARE $ 0.02 $ *
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WEIGHTED AVERAGE SHARES BASIC 6,700,868 5,832,709
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WEIGHTED AVERAGE SHARES DILUTED 6,968,793 5,839,888
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* Less than $.01
See accompanying notes to these consolidated financial statements
<PAGE>
FieldPoint Petroleum Corporation
CONDENSED CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME
For The Nine Months Ended
September 30,
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2000 1999
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(unaudited) (unaudited)
REVENUE:
Oil and gas sales $ 1,053,284 $ 494,100
Well operational and pumping fees 96,884 98,708
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Total revenue 1,150,168 592,808
COSTS AND EXPENSES:
Production expense 378,644 183,415
Depletion and depreciation 117,000 108,000
General and administrative 204,297 245,558
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Total costs and expenses 699,941 536,973
OTHER INCOME (EXPENSE):
Interest income (expense), net (62,669) (58,368)
Miscellaneous 8,010 24,706
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Total other income (expense) (54,659) (33,662)
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INCOME BEFORE INCOME TAXES 395,568 22,173
INCOME TAX (PROVISION) (28,046) (2,000)
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NET AND COMPREHENSIVE INCOME 367,522 20,173
BASIC NET INCOME PER SHARE $ 0.06 $ *
DILUTED NET INCOME PER SHARE $ 0.05 $ *
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WEIGHTED AVERAGE SHARES BASIC 6,478,932 5,717,076
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WEIGHTED AVERAGE SHARES DILUTED 7,072,948 6,089,363
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* Less than $.01
See accompanying notes to these consolidated financial statements
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<CAPTION>
FieldPoint Petroleum Corporation
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
September 30,
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2000 1999
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(unaudited) (unaudited)
<S> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income $ 367,522 $ 20,173
Adjustments to reconcile to net cash
Provided by operating activities:
Depletion and depreciation 117,000 108,000
Stock Compensation to Consultant 13,000 41,450
Deferred Income Taxes 28,046 --
Changes in assets and liabilities:
Accounts receivable (25,037) (104,478)
Taxes recoverable 48,000
Prepaid expenses and other assets 3,104 (11,250)
Accounts payable and accrued expenses (68,701) (50,600)
Oil and gas revenues payable 17,774 (3,038)
Payable to related party -- (13,800)
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Net cash provided (used) by operating activities 452,708 34,457
CASH FLOWS FROM INVESTING ACTIVITIES:
Additions to oil and gas properties (293,522) (1,218,335)
Purchase of furniture and equipment (217) (348)
Decrease in earnest money deposit -- 40,000
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Net cash used by investing activities (293,739) (1,178,683)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from long-term debt -- 1,110,000
Repayments of long-term debt (323,429) (734,855)
Proceeds from exercise of stock options & warrants,
Net of fees 473,482 46,000
Proceeds from sales of common stock, net of offering fees -- 931,019
Proceeds from sale of treasury stock -- 50,905
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Net cash provided by financing activities 150,053 1,403,069
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NET INCREASE IN CASH 309,022 258,843
CASH, beginning of the period 117,259 1,375
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CASH, end of the period $ 426,281 $ 260,218
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SUPPLEMENTAL INFORMATION:
Cash paid during the period for interest $ 63,817 $ 59,202
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Cash paid during the period for income taxes -- --
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</TABLE>
See accompanying notes to these consolidated financial statements.
<PAGE>
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
1. Nature of Business, Organization And Basis of Preparation And Presentation
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FieldPoint Petroleum Corporation (the "Company") is incorporated under the laws
of the state of Colorado. The Company is engaged in the acquisition, operation
and development of oil and gas properties, which are located in south central
Texas and Wyoming.
The condensed consolidated financial statements included herein have been
prepared by the Company, without audit, pursuant to the rules and regulations of
the Securities and Exchange Commission. Certain information and footnote
disclosures normally included in financial statements prepared in accordance
with generally accepted accounting principles have been condensed or omitted.
However, in the opinion of management, all adjustments (which consist only of
normal recurring adjustments) necessary to present fairly the financial position
and results of operations for the periods presented have been made. These
condensed consolidated financial statements should be read in conjunction with
financial statements and the notes thereto included in the Company's Form 10-KSB
filing for the year ended December 31, 1999.
2. Stockholders Equity
-------------------
During the period ended September 30, 2000, a board member exercised options at
$.10 per share to acquire 25,000 shares of the Company's common stock. Also
during the period, the Company issued 389,000 shares of common stock for the
exercise of outstanding warrants at $1.25 per share, realizing net proceeds
after commissions of $461,982.
<PAGE>
PART I
Item 2
MANAGEMENT'S DISCUSSION AND ANALYSIS OR PLAN OF OPERATION
The following discussion should be read in conjunction with the Company's
Financial Statements, and respective notes thereto, included elsewhere herein.
The information below should not be construed to imply that the results
discussed herein will necessarily continue into the future or that any
conclusion reached herein will necessarily be indicative of actual operating
results in the future. Such discussion represents only the best present
assessment of the management of FieldPoint Petroleum Corporation.
General
FieldPoint Petroleum Corporation derives its revenues from its operating
activities including sales of oil and gas and operating oil and gas properties.
The Company's capital for investment in producing oil and gas properties has
been provided by cash flow from operating activities, bank financing, and the
recently completed equity offering. The Company categorises its operating
expenses into the categories of production expenses and other expenses.
Comparison of three months ended September 30, 2000 to the three months ended
--------------------------------------------------------------------------------
September 30, 1999
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Results of Operations
Revenues increased 48% or $134,725 to $416,161 for the three month period ended
September 30, 2000 from the comparable 1999 period, this was due primarily to
the overall increase in the average price received for oil and gas sales.
Production volumes increased 13% on a BOE basis. Average oil sales prices
increased 45% to $29.35 for the period ended September 30, 2000 compared to
$20.15 for the period ended September 30, 1999. Average gas sales prices
increased 45% to $3.06 for the period ended September 30, 2000 compared to $2.10
for the period ended September 30, 1999.
Production expenses increased 59% or $56,028 to $152,131 for the three month
period ended September 30, 2000 from the comparable 1999 period, this was
primarily due to additional workovers in the form of remedial repairs and an
increase in the number of producing oil and gas properties the company owns.
Depletion and depreciation increased 8% or $3000 to $39,000 this was primarily
due to the development of additional oil and gas properties resulting in
increased production and related equipment during the period ended September 30,
2000 compared to the 1999 period. General and administrative overhead cost
decreased 33% or $26,228 to $55,018 for the three month period ended September
30, 2000 from the comparable 1999 period. This was attributable to lower
salaries,legal, and engineering fees related to research of possible
acquisitions.
Net other expense for the three months ended September 30, 2000 was $13,648
compared to $27,888 for the 1999 period. This decrease was primarily due to an
increase in miscellaneous income which offset interest expense.
Comparison of nine months ended September 30, 2000 to the nine months ended
--------------------------------------------------------------------------------
September 30, 1999
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Results of Operations
Revenues increased 94% or $557,360 to $1,150,168 for the nine month period ended
September 30, 2000 from the comparable 1999 period, this was due to the overall
increase in the average price received for oil and gas sales. Production volumes
increased 23% on a BOE basis. Average oil sales prices increased 74% to $27.51
for the period ended September 30, 2000 compared to $15.96 for the period ended
September 30, 1999. Average gas sales prices increased 54% to $2.58 for the nine
month period ended September 30, 2000 compared to $1.67 for the period ended
September 30, 1999.
Production expenses increased 106% for the nine month period ended September 30,
2000 from the comparable 1999 period, this was primarily due to additional
workovers in the form of remedial repairs and an increase in the number of oil
and gas properties the company owns. Depletion and depreciation expense
increased 8% to $117,000, this was due to the development of additional oil and
gas properties resulting in increased production and related equipment during
the period ended September 30, 2000 compared to the 1999 period. General and
administrative overhead cost decreased 17% or $41,261 to $204,297 for the nine
month period ended September 30, 2000 from the nine month period ended September
30, 1999. This was attributable to lower salaries,legal and engineering fees
related to research of possible acquisitions.
<PAGE>
Net other expense for the nine months ended September 30, 2000 was $54,659
compared to $33,662 for the comparable 1999 period. The increase was primarily
due to a decrease in miscellaneous income which offset interest expense.
Liquidity and Capital Resources
Cash flow provided by operating activities was $452,708 for the nine month
period ended September 30, 2000, as compared to $34,457 in cash flow used by
operating activities in the 1999 period. The increase in cash from operating
activities was primarily due to increased net income in 2000.
Cash flow used by investing activities was $293,739 for the period ended
September 30, 2000, compared to $1,178,683 for the period ended September 30,
1999. This is primarily due to decreased purchases of oil and gas properties.
Cash flow provided by financing activities was $150,053 for the period ended
September 30, 2000, as compared to $1,403,069 provided by financing activities
for the same period in 1999. This was due to repayment of existing long-term
debt and the completion of common stock offering during 1999.
The Company cannot predict how oil and gas prices will vary during 2000 and what
effect they will ultimately have on the Company. However, management believes
that the Company will be able to generate sufficient cash from operations to
service its bank debt and provide for maintaining current production of its oil
and gas properties.
<PAGE>
PART II
OTHER INFORMATION
Item 1. Legal Proceedings
--------------------------
The Company is a party to a lawsuit arising in the ordinary course of business.
In the opinion of management, final judgement or settlement, if any, that may be
awarded or entered into in connection with this suit would not have a material
adverse effect on the Company's financial position or results of operations.
Item 2. Changes in Securities
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SALE OF RESTRICTED SECURITIES. During the three month ended September 30, 2000,
the Company sold 389,000 shares of Common Stock after the exercise of warrants
at $1.25 per share. The Company paid cash commissions to W.B. McKee Securities,
Inc. in the amount of $24,313.25.
With respect to these sales, the Company relied on Section 4 (2) of the
Securities Act.
Item 3. Default Upon Senior Securities
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None.
Item 4. Submission of Matters to a Vote of Security Holders
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None.
Item 5. Other Information
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None.
Item 6. Exhibits and Reports on Form 8-K
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The following Reports were filed by the Company on Form 8-K during the third
Quarter of 2000:
a. None on Form 8-K
b. 10.1 Consulting Agreement dated May 9, 2000 between FieldPoint
Petroleum Corp. and Parrish Brian & Co.
c. Exhibit 27 Financial Data Schedule
SIGNATURES
In accordance with the requirements of the Exchange Act, the registrant caused
this report to be signed on its behalf by the undersigned, thereunto duly
authorized.
Date: November 14, 2000 By: /s/ Ray Reaves
--------------------------------------------
Ray Reaves, Treasurer, Chief Financial Officer
