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 June 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
As of July 31, 2000, the number of shares outstanding of the Registrant's $.01
par value Common Stock was 6,581,925.
Transitional Small Business Disclosure Format (Check one):
Yes No X
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<TABLE>
<CAPTION>
PART I
Item 1. Condensed Consolidated Financial Statements
FieldPoint Petroleum Corporation
CONDENSED CONSOLIDATED BALANCE SHEETS
ASSETS
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June 30, December 31,
2000 1999
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<S> <C> <C>
CURRENT ASSETS: (unaudited)
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Cash $ 175,999 $ 117,259
Trading securities 2,880 2,880
Accounts receivable:
Advances 7,500 --
Oil and gas sales 152,052 135,067
Joint interest billings, less allowance for doubtful
accounts of $74,192 and $71,192 79,021 84,906
Prepaid expenses 54,535 2,535
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Total current assets 471,987 342,647
PROPERTY AND EQUIPMENT:
Oil and gas properties (successful efforts method):
Leasehold costs 2,415,281 2,396,998
Lease and well equipment 382,185 351,425
Furniture and equipment 32,497 32,280
Transportation equipment 75,974 75,974
Less accumulated depletion and depreciation (753,424) (675,424)
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Net property and equipment 2,152,513 2,181,253
OTHER ASSETS 230,981 25,981
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Total assets $ 2,855,481 $ 2,549,881
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LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Current portion of long-term debt $ 342,090 $ 409,132
Accounts payable and accrued expenses 85,666 112,339
Oil and gas revenues payable 60,665 49,799
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Total current liabilities 488,421 571,270
LONG-TERM DEBT, net of current portion 434,148 559,462
DEFERRED INCOME TAXES 10,397 15,954
COMMITMENTS
STOCKHOLDERS' EQUITY:
Common stock, $.01 par value, 75,000,000 shares authorized;
6,581,925 and 6,331,925 shares issued and outstanding,
respectively 65,819 63,319
Additional paid-in capital 1,444,285 1,177,785
Treasury stock, 117,500 shares of common stock (1,175) (1,175)
Retained earnings 413,586 163,266
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Total stockholders' equity 1,922,515 1,403,195
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Total liabilities and stockholders' equity $ 2,855,481 $ 2,549,881
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See accompanying notes to these consolidated financial statements
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<TABLE>
<CAPTION>
FieldPoint Petroleum Corporation
CONDENSED CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME
For the Three Months Ended
June 30,
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1999 2000
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<S> <C> <C>
REVENUE: (unaudited) (unaudited)
Oil and gas sales $ 340,842 $ 146,908
Well operational and pumping fees 32,045 32,806
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Total revenue 372,887 179,714
COSTS AND EXPENSES:
Production expense 119,105 58,953
Depletion and depreciation 39,000 36,000
General and administrative 62,585 87,651
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Total costs and expenses 220,690 182,604
OTHER INCOME (EXPENSE):
Interest expense, net (19,676) (12,091)
Miscellaneous 114 24,504
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Total other income (expense) (19,562) 12,413
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INCOME BEFORE INCOME TAXES 132,635 9,523
INCOME TAX PROVISION - DEFERRED (10,397) --
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NET INCOME 122,238 9,523
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NET INCOME PER SHARE
BASIC $ 0.02 *
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DILUTED $ 0.02 *
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WEIGHTED AVERAGE SHARES OUTSTANDING
BASIC 6,391,156 5,418,009
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DILUTED 7,049,728 5,418,009
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</TABLE>
* Less than $.01 per share.
See accompanying notes to these consolidated financial statements
<PAGE>
FieldPoint Petroleum Corporation
CONDENSED CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME
For the Six Months Ended
June 30,
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1999 2000
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REVENUE: (unaudited) (unaudited)
Oil and gas sales $ 669,342 $ 245,423
Well operational and pumping fees 64,665 65,949
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Total revenue 734,007 311,372
COSTS AND EXPENSES:
Production expense 226,512 87,312
Depletion and depreciation 78,000 72,000
General and administrative 143,722 164,312
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Total costs and expenses 448,234 323,624
OTHER INCOME (EXPENSE):
Interest expense, net (41,124) (30,435)
Miscellaneous 114 24,661
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Total other income (expense) (41,010) (5,774)
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INCOME (LOSS) BEFORE INCOME TAXES 244,763 (18,026)
INCOME TAX BENEFIT - DEFERRED 5,557 4,200
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NET INCOME (LOSS) 250,320 (13,826)
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NET INCOME (LOSS) PER SHARE
BASIC $0.04 *
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DILUTED $0.04 *
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WEIGHTED AVERAGE SHARES OUTSTANDING
BASIC 6,366,124 5,141,259
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DILUTED 6,758,442 5,141,259
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* Less than $.01 per share.
See accompanying notes to these consolidated financial statements
<PAGE>
<TABLE>
<CAPTION>
FieldPoint Petroleum Corporation
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
For The Six Months Ended
June 30,
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2000 1999
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<S> <C> <C>
(unaudited) (unaudited)
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income (loss) $ 250,320 $ (13,826)
Adjustments to reconcile to net cash
provided by operating activities:
Depletion and depreciation 78,000 72,000
Deferred Tax Benefit (5,557) --
Stock compensation to consultant -- 20,750
Changes in assets and liabilities:
Accounts receivable (18,600) (56,581)
Income tax recoverable -- 43,800
Prepaid expenses and other assets 3,000 --
Accounts payable and accrued expenses (26,673) (38,095)
Oil and gas revenues payable 10,866 (10,510)
Due to related party -- (10,000)
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Net cash provided by operating activities 291,356 7,538
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of oil and gas properties (49,044) (1,010,959)
Purchase of furniture and equipment (217) --
Decrease in earnest money deposit -- 40,000
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Net cash used by investing activities (49,261) (970,959)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from long-term debt -- 760,000
Repayments of long-term debt (192,355) (342,260)
Proceeds from sales of common stock, net of offering fees 9,000 660,311
Proceeds from sales of treasury stock -- 7,172
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Net cash provided (used) by financing activities (183,355) 1,085,223
NET INCREASE IN CASH 58,740 121,802
CASH, beginning of the period 117,259 1,375
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CASH, end of the period $ 175,999 $ 123,177
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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 Oklahoma, 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
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During the period ended June 30, 2000 the president of the Company exercised
options at $0.10 per share to acquire 40,000 shares of common stock. Also during
the period the Company issued 160,000 shares of common stock to a consultant in
lieu of cash for services. The shares issued the consultant were recorded at the
quoted value of the stock at the time of the transaction of $260,000. This
amount will be amortized to expense beginning July 1, 2000 over the five year
life of the contract.
<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 and from bank financing.
The Company categories its operating expenses into the categories of production
expenses and other expenses.
Comparison of three months ended June 30, 2000 to the three months ended
June 30, 1999
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Results of Operations
Revenues increased 107% or $193,173 to $372,887 for the three month period ended
June 30, 2000 from the comparable 1999 period, this was due to the overall
increase in the average price received for oil and gas sales and the acquisition
of the Oklahoma properties in June 1999. Production volumes increased 20% on a
BOE basis. Average oil sales prices increased 25% to $26.83 for the period ended
June 30, 2000 compared to $15.59 (revised) for the period ended June 30, 1999.
Average gas sales prices increased 58% to $2.44 for the three month period ended
June 30, 2000 compared to $1.54 for the period ended June 30, 1999.
Production expenses increased 102% or $60,152 to $119,105 for the three month
period ended June 30, 2000 from the comparable 1999 period, this was primarily
due to the acquisition of working interest in 225 wells in the state of Oklahoma
and additional workovers in the form of remedial repairs. Depletion and
depreciation increased 8% due to the purchase of additional oil and gas
properties and related equipment during the period ended June 30, 2000 compared
to the 1999 period. General and administrative overhead cost decreased 29% or
$25,066 to $62,585 for the three month period ended June 30, 2000 from the three
month period ended June 30, 1999. This was primarily due to lower costs
associated with evaluating acquisitions and consulting fees.
Net other Expense for the three months ended June 30, 2000 was $19,562 compared
to income of $12,413 for the 1999 period. This decrease was primarily due to a
decrease in miscellaneous income in 2000.
Comparison of six months ended June 30, 2000 to the six months ended June 30,
1999
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Results of Operations
Revenues increased 136% or $422,635 to $734,007 for the six month period ended
June 30, 2000 from the comparable 1999 period due to the overall increase in oil
and gas sales and the average price received for oil and gas sales. Production
volumes increased 33% on a BOE basis. Average oil sales prices increased 105% to
$26.78 for the period ended June 30, 2000 compared to $13.02 (revised) for the
period ended June 30, 1999. Average gas sales prices decreased 69% to $2.30 for
the six month period ended June 30, 1999 compared to $1.36 for the period ended
June 30, 1999.
Production expenses increased 159% or $139,200 to $226,512 for the six month
period ended June 30, 2000 from the comparable 1999 period, this was primarily
due to the acquisition of working interest in 225 wells in the state of Oklahoma
<PAGE>
and additional workovers in the form of remedial repairs. Depletion and
depreciation increased 8% to $78,000, this was due to the increase in leasehold
and related equipment during the period ended June 30, 2000 compared to the 1999
period. General and administrative overhead cost decreased 13% or $20,590 to
$143,722 for the six month period ended June 30, 2000 from the six month period
ended June 30, 1999. This was attributable to lower consulting fees and cost
associated with evaluating acquisitions.
Net other expenses for the six months ended June 30, 2000 was $41,010 compared
to $5,774 for the comparable 1999 period. The decreased was primarily due to a
decrease in miscellaneous income during 2000.
Liquidity and Capital Resources
Cash flow provided by operating activities was $291,356 for the six month period
ended June 30, 2000, as compared to $7,538 in cash flow provided by operating
activities in the 1999 period. The increase in cash from operating activities
was primarily due to higher net income.
Cash flow used by investing activities was $49,261 in the period ended June 30,
2000, compared to $970,959 for June 30, 1999. This is primarily due to the
purchase of additional oil and gas properties in 1999, without corresponding
increases in 2000. Cash flow used by financing activities was $183,355 for the
period ended June 30, 2000, compared to a cash flow provided of $1,085,223 for
the same period in 1999.
This decrease was primarily due to the decreased proceeds from long-term debt
and the sale of common stock for the six months period ended June 30, 2000.
The Company has not encountered any negative impacts from the Year 2000 issue on
its operations. There can be no assurance, however, as to the ultimate effect of
the Year 2000 issue on the Company.
<PAGE>
PART II
OTHER INFORMATION
Item 1. Legal Proceedings
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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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None.
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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None.
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: 7/28/2000 By: /s/ Ray Reaves
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Ray Reaves, Treasurer, Chief Financial Officer
