SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-QSB
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the fiscal quarter ended June 30, 1998
Commission File No. 0-9297
CRONUS CORPORATION
a NEVADA corporation
36-388074
(I.R.S. Employer Identification Number)
7660 E. BROADWAY #210, TUCSON, ARIZONA 85710
Registrant's telephone number, including area code (520)
885-1220
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 receding
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
registrant's classes of common stock, as of the latest
practicable date.
Class Outstanding as of July 1, 1998
$.001 PAR VALUE 21,864,816 SHARES
COMMON STOCK
DOCUMENTS INCORPORATED BY REFERENCE:
1. Audited Financial Statements for the years ended
December 31, 1997 and 1996, dated June 10, 1998. 1997 10-
KSB filed June 15, 1998.
PART 1
ITEM 1. Financial Statements
J. Dennis Bartlett, P.C.
Certified Public Accountant
2421 E. 6th Street
Tucson, Arizona 85716
Cronus Corporation
Tucson, Arizona
I have compiled the accompanying balance sheet of Cronus
Corporation (and subsidiary PetroSun) as of June 30, 1998,
and the related consolidated statement of income for the
three and six months ended June 30, 1998 and 1997, in
accordance with standards established by the American
Institute of Certified Public Accountants.
A compilation is limited to presenting in the form of
financial statements information that is the representation
of management. I have not audited or reviewed the
accompanying financial statements and, accordingly, do not
express an opinion or any other form of assurance on them.
Management has elected to omit substantially all of the
disclosures and the statement of cash flows required by
generally accepted accounting principles. If the omitted
disclosures and statement of cash flows were included with
the financial statements, they might influence the user's
conclusions about the Company's financial position,
results of operations, and cash flows. Accordingly, these
financial statements are not designed for those who are not
informed about such matters.
/s/
J. Dennis Bartlett, P.C.
August 21, 1998
J. Dennis Bartlett, P.C.
Certified Public Accountant
2421 E. 6th Street
Tucson, Arizona 85716
We hereby consent to the inclusion of our report dated
August 21, 1998, in the quarter report of Cronus Corporation
on Form 10-QSB for the period ended June 30, 1998.
/s/
J. Dennis Bartlett, P.C.
Tucson, Arizona
August 21, 1998
<TABLE>
CRONUS CORPORATION
Balance Sheet
As of June 30, 1998
<CAPTION>
JUNE JUNE DECEMBER
1998 1997 1997
<S> <C> <C> <C>
ASSETS
Current Assets
Cash $ 12,341 18,909 1,195
Other current assets 2,807 0 3,356
Accounts receivable 5,111 0 10,338
Prepaid expenses 125,000 2,000 125,000
Total Current Assets $ 145,259 20,909 139,889
Fixed Assets
Computer equipment 3,071 3,071 3,071
Office equipment/furniture 5,342 5,342 5,342
Less: accumulated depreciation (3,062) (1,094) (3,062)
Proved property 217,728 63,500 217,728
Unproved properties 130,618 43,793 121,390
Wells and related eqiup. 5,200 0 5,200
Less: accumulated depreciation (1,543) 0 (1,543)
Total Fixed Assets 357,354 116,612 348,126
Other Assets
Prepaid consulting 31,250 0 31,250
Deposits 1,802 1,802 1,802
Receivable from related company 0 0 19,212
Investment in mining claims 143,530 143,530 143,530
Other investments 0 18,918 0
Goodwill, net of accumulated amortization
and valuation allowance 1,410,694 0 516,829
Total Other Assets 1,587,276 164,250 712,623
TOTAL ASSETS 2,089,889 301,771 1,200,638
LIABILITIES & SHAREHOLDERS' EQUITY
<CAPTION>
JUNE JUNE DECEMBER
1998 1997 1997
<S> <C> <C> <C>
Current Liabilities
Accounts Payable $ 186,230 162,252 171,347
Bank overdraft 0 0 4,518
Drilling advance 26,300 0 26,300
Revenue distribution 1,093 0 4,536
Due to related party 439,976 0 439,976
Note payable-officers, shareholders
And related entitles 58,630 0 80,129
Notes payable-other net of
Curent portion 277,894 77,430 146,243
Accrued expenses 517,042 317,290 393,622
Payroll taxes payable 2,267 4,185 2,896
Liability not discharged in bankrutcy 0 2,930,134 0
TOTAL CURRENT LIABILITIES 1,518,242 3,491,291 1,269,567
LONG TERM LIABILITIES
Notes payable-other 56,000 16,000 16,000
Investment in joint venture 0 0 40,508
TOTAL LIABILITIES 1,574,242 3,507,291 1,326,075
STOCKHOLDERS' EQUITY
Common Stock 21,865 15,284 15,284
Additional paid in capital 2,595,627 823,931 1,801,826
Recievable from sale of stock 0 0 (175,981)
Treasury stock (250) (3,364) (250)
Retained Earnings (1,766,316) (3,857,922) (3,585,856)
Net income year to date (335,279) (183,449) 1,819,540
TOTAL STOCKHOLDERS' EQUITY 515,647 (3,205,520) (125,437)
TOTAL LIABILITIES &
SHAREHOLDERS' EQUITY $2,089,889 301,771 1,200,771
CRONUS CORPORATION
Profit and Loss
January through March 1998
<CAPTION>
JAN-JUNE JAN-JUNE APRIL-JUNE APRIL-JUNE
1998 1997 1998 1997
<S> <C> <C> <C> <C>
INCOME
Bayou Pierre - Gas $12,790 0 6,169 0
Falco - Oil 1,350 0 1,350 0
OPERATING EXPENSES
Automobile expense 205 50 74 50
Bank charges 510 112 352 72
Bonus 7,400 0 0 0
Commissions 0 8,000 0 8,000
Contributions 200 0 0 0
Dues & subscriptions 3,458 0 2,645 0
Education 100 0 100 0
Equipment rental 548 0 192 0
Fees 2,795 2,446 1,415 1,086
Insurance 300 947 300 947
Interest 29,231 0 14,554 0
Internet access 88 60 88 60
Licenses & permits 415 0 360 0
Maintenance expense 1,874 0 0 0
Marketing 0 582 0 492
Office 2,717 533 1,003 325
Operating expense 71,700 5,000 37,425 5,000
Payroll 144,333 122,500 75,833 65,250
Payroll taxes 4,426 3,265 2,043 1,885
Postage & delivery 2,106 616 938 580
Printing 0 2,361 0 50
Professional fees 47,544 27,056 35,576 22,740
Proxy 85 0 0 0
Rent 6,715 3,914 4,141 1,957
Royalties 3,939 0 2,154 0
Supplies 5,733 1,127 3,761 869
Taxes 50 50 50 50
Telephone 3,473 2,734 1,858 1,616
Travel & entertainment 8,175 1,703 3,762 1,277
Utilities 524 390 320 248
Web site hosting fee 775 0 0 0
TOTAL EXPENSE 349,419 183,449 188,944 112,554
NET INCOME (335,279) (183,449) (181,425) (112,554)
</TABLE>
Please see Audited Financial Statements and Notes for the
years ended December 31, 1997 and 1996, dated June 10, 1998,
filed as an exhibit to the Company's 1997 10-KSB on June 15,
1998.
ITEM 2. Management's Discussion and Analysis or Plan of
Operation.
Disclosure Regarding Forward-Looking Statements.
This report on Form 10-KSQ includes "forward-looking
statements" within the meaning of Section 27A of the
Securities Act of 1933, as amended (the "Securities Act"),
and Section 21E of the Securities Exchange Act of 1934, as
amended (the "Exchange Act"). All statements other than
statements of historical facts included in this report,
including, without limitation, statements under
"Management's Discussion and Analysis or Plan of
Operations" regarding the Company's financial position,
reserve quantities and net present values, business
strategy, plans and objectives of management of the
Company for future operations and capital expenditures, are
forward-looking statements and the assumptions upon which
such forward-looking statements are based are believed to be
reasonable. The Company can give no assurance that such
expectations and assumptions will prove to have been
correct. Reserve estimates of oil and gas properties are
generally different from the quantities of oil and natural
gas that are ultimately recovered or found. This is
particularly true for estimates applied to exploratory
prospects. Additionally, any statements contained in this
report regarding forward-looking statements are subject to
various known and unknown risks, uncertainties and
contingencies, many of which are beyond the control of the
Company. Such things may cause actual results, performance,
achievements or expectations to differ materially from the
anticipated results, performance, achievements or
expectations. Factors that may affect such forward-looking
statements include, but are not limited to, the Company's
ability to generate additional capital, risks inherent in
oil and gas acquisitions, exploration, drilling, development
and production, price volatility of oil and gas,
competition, shortages of equipment, services and supplies,
government regulation, environmental matters, financial
condition of the other companies participating in the
exploration, development and production of oil and gas
programs and other matters. All written and oral forward-
looking statements attributable to the Company or persons
acting on its behalf subsequent to the date of this report
are expressly qualified in their entirety by this
disclosure.
As described more fully below, management expects to receive
income from PetroSun oil and gas leases in Louisiana during
1998.
The Company is currently in the process of acquiring Rancho
El Laurel, S.A., a Costa Rican company whose primary asset
is ownership of 5,500 acres of hardwood forest in Costa
Rica. The Company anticipates closing this acquisition by
the end of August, 1998.
As can be seen in the financial statements, the Company has
incurred losses from operations and has deficits in working
capital. The Company earned minimal income from its first
quarter operations do to the ongoing rehab of the Shut-in
wells in Louisiana, however, it expects to receive
income in the next quarter from those oil and gas leases.
The company has five drilling projects funded for the next
two quarters and expects to raise additional funding as
needed. The drilling projects are further explained below.
There can be no assurance that a cash flow will be generated
or that funding will be raised. The Company currently has
no commitments for any type of funding, and there is no
assurance that the Company will be able to obtain any such
financing or that such financing, if obtainable, will be on
terms necessary to enable the Company to operate profitably.
Future Business Strategy and Operations.
The Company's ongoing business strategy is to create and
expand its reserve base and cash flow primarily through the
following:
1. Raising significant capital to conduct assessments of
the economical feasibility of extracting minerals from its
properties, and to take advantage of leading edge
technologies such as horizontal drilling, pulse plasma
secondary recovery and 3-D seismic exploration projects.
2. Position itself with strategic sources of capital and
partners that can react to opportunities in the oil and gas,
timber and mining businesses when they present themselves.
3. Developing alliances with oil and gas industry partners.
4. Participate in projects that have opportunities
involving relatively small amounts of capital that could
potentially generate significant rates of return. These
projects include areas with large field potentials in
Northern Arizona, New Mexico, Louisiana and
Queensland, Australia.
5. Implementing the Company's investment strategy to
carefully consider, analyze, and exploit the potential value
of the Company's existing assets to increase the rate of
return to its shareholders.
6. Reinvesting future operating cash flows into development
of drilling and recompletion activities.
7. Acquiring properties that build upon and enhance the
Company's existing asset base.
8. Developing a long term track record regarding stock
price performance and a reasonable rate of return to the
shareholder.
The Company recognizes that the ability to implement its
business strategies is largely dependent on the ability to
increase operating cash flows by raising additional debt or
equity capital to fund future drilling and developmental
activities. Management believes that it will be necessary
to raise additional equity or debt capital to overcome
the Company's undercapitalization.
The steps the Company intends to take to assess the
feasibility of its current projects are described below.
There can be no assurance that the Company will be able to
place such oil and gas or timber assets into production or
to conclude such feasibility assessments, or that if it is
able to do so, that it will be able to engage in oil and
gas, timber and/or mining operations profitably.
OIL AND GAS PLAN OF OPERATIONS
The Company's primary objective will be to place the oil and
gas assets of its subsidiary into production. PetroSun
controls oil and gas leases on approximately 2,200 acres of
land in Louisiana referred to as Bayou Pierre Project. The
leases contain 17 proven developed oil and gas wells. These
wells have been shut-in since the late 1980's due to the
then low price of oil and gas and due to the property then
being subject to litigation unrelated to the Company. It
will be necessary to change the pumps on the pumping wells
and conduct related maintenance work that is normal for this
type operation. Currently, 13 of the wells have been
rehabilitated and placed into production. The Company
estimates that the cost to complete the rehabilitation of
the wells to be $150,000. The leases also contain an
additional 105 proven undeveloped vertical or 30 horizontal
locations, 4 Puluxy and 4 Glen Rose, which the Company plans
to drill if economically feasible.
Drilling Projects
Louisiana:
PetroSun has joint ventured with Vector Horizontal Inc. and
Tiger Exploration & Production Inc. to drill a horizontal
Nacatoch gas well (William Prince #20) on the Bayou Pierre
lease. The drilling is anticipated to begin in September
1998. The drilling cost have been funded for this project.
Also, PetroSun has Joint Ventured with Tedan and Tiger
Exploration & Production Incorporated to drill a Paluxy /
Glen Rose test well (William Prince #21) on the Bayou Pierre
Lease. The drilling is anticipated to begin in December
1998. The drilling cost have been funded for this project.
New Mexico:
On October 22, 1997, PetroSun acquired the Red Dog
Prospect located in McKinley County, New Mexico, covering
1,921.18 acres. The Red Dog Prospect is situated on a
northeast - southwest trending anticlinal fold on the Chaco
Slope of the San Juan Basin. Seismic data indicates a
feature in the Entrada formation that has been interpreted
as a reflection from an oil-water contact. In a homogenous
sandstone such as the Entrada a 30 foot oil column is needed
before an oil-water contact can be detected. Analysis of
satellite imagery confirmed that there is micro-seepage to
the surface. The hydrocarbon reflectance covers
approximately 1420 acres. The Entrada has excellent
reservoir quality, with an average porosity of 23.6% and an
average permeability of 315 millidarcies. On 40 acre
spacing, recoverable reserves are estimated to be 456,800
barrels of oil for a well with 30 feet of pay and a water
drive recovery of 35%. The secondary objectives of the Red
Dog Prospect include the Dakota at 3,300 feet and the Mancos
at 2,900 feet. PetroSun anticipates drilling the initial
test well in the Entrada by the end of 1998. PetroSun
has joint ventured with industry partners to raise the funds
for this prospect.
PetroSun acquired the Cholla Tank Prospect located in
McKinley County, New Mexico on November 22, 1997. The
Cholla Prospect is situated on a northeast - southwest
trending anticlinal fold on the Chaco Slope of the San Juan
Basin.
Seismic data indicates a feature in the Entrada formation
that has been interpreted as a reflection from an oil-water
contact. In a homogenous sandstone such as the Entrada a
30 foot oil column is needed before an oil-water contact can
be detected. Analysis of satellite imagery confirmed that
there is microseepage to the surface. The Entrada has
excellent reservoir quality, with an average porosity of
23.6% and an average permeability of 315 millidarcies. On
40 acre spacing, recoverable reserves are estimated to be
456,800 barrels of oil for a well with 30 feet of pay and a
water drive recovery of 35%. The secondary objectives of
the Cholla Prospect include the Dakota at 3,300 feet and the
Mancos at 2,900 feet. PetroSun is currently in the process
of surveying and permitting the initial test well and
anticipates drilling to commence by the end of 1998
with funding from industry partners. The Cholla Tank
Prospect is a direct offset to PetroSun's Red Dog Prospect.
Australia:
Triple JJJ Resources Pty., Ltd.
On February 14, 1998, the Company entered into a letter
agreement to acquire all the outstanding shares of Triple
"J" Resources Pty., LTD. ("JJJ"). JJJ is the holder of ATP
594P, a 375,000 acre oil and gas concession located in
Queensland, Australia within the oil and gas producing
region of the Eromanga basin. JJJ has a farmout agreement
with Icon Oil, NL by which Icon agreed to drill the first
test well on ATP 594P, and to thereafter provide 50% of the
costs of any additional wells in return for half of the
Company's interest in ATP 594P. The Company has sold a half
interest in JJJ to Tiger Tool, Inc. and Tiger Exploration &
Production, Inc., effectively leaving the Company with a 25%
interest in ATP 594P.
On April 16, 1998, Cronus announced the completion of
drilling on the first well on ATP 594P, the Taylor Franks
No. 1 well in the Eromanga Basin of east-central Australia.
The well reached a total depth of 2,643 meters with gas
shows from 2,520 to 2,643 meters. Two drill stem tests were
performed in the Toolachee and Patchawarra formations in the
Permian section. The tests indicated non-commercial gas
flow rates of approximately 10,000 cubic feet per day with
no water.
The results of this first well indicate good structure and
the presence of gas in this province. The flow results and
penetration rate confirmed a tight reservoir and lack of
sufficient porosity at this location, thus the well was
plugged. While proving that there is gas on this
concession, the next step is to drill a confirmation well in
the same zone that has greater porosity and provides
commercially viable flow rates to capitalize on this find.
Cronus and Icon Oil NL have determining a second location
for the next well and anticipates the well to be spudded in
early 1999 on the concession.
Strategic Consulting and Administration, Inc.
On October 17, 1997, the Company entered into an agreement
to acquire all the outstanding shares of Strategic
Consulting and Administration, Inc. ("SCI"). SCI is the
designated company to receive ATP 636P, a 640,000 acre oil
and gas concession located in Queensland, Australia within
the oil and gas producing region of the Eromanga basin. SCI
cannot receive the Authority To Prospect until the issues
surrounding the Native Title Claims Act have been resolved
by the parliament of Queensland, Australia.
With the establishment of commercial production on any
prospect, further development wells may be drilled during
the balance of 1998.
Although the Company is currently pursuing prospects within
the project areas described above, and has budgeted to drill
the number of wells set forth, there can be no assurance
that these prospects will be drilled at all or within the
expected time frame. In particular, budgeted wells that are
based upon statistical results of drilling activities in
other project areas are subject to greater uncertainties
than wells for which drillsites have been identified. The
final determination with respect to the drilling of any
identified drillsites or budgeted wells will be dependent on
a number of factors, including (i) the results of
exploration efforts and the acquisition, review and analysis
of the seismic data, (ii) the availability of sufficient
capital resources by the Company and the other participants
for the drilling of The prospects, (iii) the approval of the
prospects by other participants after additional data has
been compiled, (iv) the economic and industry conditions at
the time of drilling, including prevailing and anticipated
prices for oil and natural gas and the availability of
drilling rigs and crews, (v) the financial resources and
results of the Company and (vi) the availability of leases
on reasonable terms and permitting for the prospect. There
can be no assurance that these projects can be successfully
developed or that the identified drillsites or budgeted
wells discussed will, if drilled, encounter reservoirs of
commercially productive oil or natural gas.
The success of the Company will be materially dependent upon
the success of its exploratory and developmental drilling
program. Exploratory drilling involves numerous risks,
including the risk that no commercially productive oil or
natural gas reservoirs will be encountered. The cost of
drilling, completing and operating wells is often uncertain,
and drilling operations may be curtailed, delayed or
canceled as a result of a variety of factors, including
unexpected drilling conditions, pressure or irregularities
in formations, equipment failures or accidents, adverse
weather conditions, compliance with governmental
requirements and shortages or delays in the availability of
drilling rigs and the delivery of equipment. Although the
Company believes that its use of available data and other
advanced technologies should increase the probability of
success of its exploratory wells and should reduce average
finding costs, exploratory drilling remains a speculative
activity. Even when fully utilized and properly
interpreted, seismic data and other advanced technologies
only assist geoscientists in identifying subsurface
structures and do not enable the interpreter to know whether
hydrocarbons are in fact present in such structures. In
addition, the use of seismic data and other advanced
technologies requires greater predrilling expenditures than
traditional drilling strategies and the Company could incur
losses as a result of such expenditures. The Company's
future drilling activities may not be successful, and if
unsuccessful, such failure will have a material adverse
effect on the Company's results of operations and financial
condition. There can be no assurance that the Company's
overall drilling success rate or its drilling success rate
for activity within a particular project area will not
decline. The Company may choose not to acquire option and
lease rights prior to acquiring seismic data and, in many
cases, the Company may identify a prospect or drilling
location before seeking option or lease rights in the
prospect or location. Although the Company has identified
numerous drilling prospects, there can be no assurance that
such prospects will ever be drilled (or drilled within the
scheduled or budgeted time frame) or that oil or natural gas
will be produced from any such prospects or any other
prospects. In addition, prospects may initially be
identified through a number of methods, some of which do not
include interpretation of seismic data. Wells that are
currently included in the Company's capital budget may be
based upon statistical results of drilling activities in
other project areas that the Company believes are
geologically similar, rather than on analysis of seismic or
other data. Actual drilling and results are likely to vary
from such statistical results and such variance may be
material. Similarly, the Company's drilling schedule may
vary from its capital budget because of future
uncertainties, including those described elsewhere.
MINING
The Company intends to asses the feasibility of potential
future mining projects, involving the Gila Gold Placer
mining claims.
Gila Association Placer Mine Project.
Gila Gold Placer Project:
The Company plans to verify and confirm the existence,
extend and grade of placer gold located at the Gila Gold
Placer claims. First, it intends to asses the presence and
tenor of placer gold as described in engineering reports of
past exploration efforts. Next, the Company will analyze
the economic viability of such deposit by determining
optimal production rate and stripping-sorting ratios,
defining a mining and reclamation technique, generating a
flow sheet, and isolating processing, mining, capital,
reclamation and general overhead cost factors.
Financial Requirements and Source of Funds.
The Company is currently rehabilitating the shut-in oil and
gas wells by setting compressors and pumps which will allow
PetroSun, to put its revenue producing assets in Louisiana
into production starting in October, 1997. The Company
believes that after an expenditure of $150,000,
PetroSun's oil and gas production in Louisiana should
produce net revenues sufficient to cover general and
administrative expenses of the Company of through the next
six months.
Thereafter, the Company believes it will need to raise at
least $2,000,000 in order to conduct testing and drilling of
its oil and gas properties. Such funds may be sought
through the issuance of additional shares of the Company's
Common Stock or other equity securities, through debt
financing, or through various arrangements, including joint
ventures and/or mergers, with third parties. However, the
Company currently has no commitments for any type of
funding, and there is no assurance that the Company will be
able to obtain any such financing or that such financing, if
obtainable, will be on terms necessary to enable the Company
to operate profitably. If the Company is unsuccessful in
completing a private type placement, or if additional funds
are necessary either before or after such a transaction, it
is uncertain at this time what actions the Company will
take. Possibilities include other debt or equity financings
or the sale of existing assets.
Competition - Oil and Gas
The oil and gas industry is highly competitive in all
phases. The Company will encounter strong competition from
other independent oil and gas companies in acquiring
economically desirable prospects as well as in marketing
production therefrom and obtaining external financing.
Substantially all of the Company's competitors have
financial resources, personnel resources, and facilities
substantially greater than those of the Company.
Competition - Mining
There is considerable competition for mining prospects on
federal lands. Costs of exploration, testing and mining,
milling, transportation, labor and other costs have risen
dramatically. These costs would be a factor in determining
whether the discovery of minerals, if any, would be
commercial or not, and could render a discovery
unprofitable, even if made.
In addition to the uncertainty surrounding the eventual
development of commercial mineralization on the Company's
properties, the success of any mining operation which
might be conducted is dependent upon the price of minerals
on the domestic and world markets, which is subject to
fluctuations, in part as a result of actions by central
banks and government policies.
PART II
ITEM 1. Legal Proceedings.
From time to time the Company is a party to various legal
proceedings arising in the ordinary course of business. The
Company is not currently a party to any litigation that
it believes could have a material adverse effect on the
financial position of the Company.
ITEM 2. Changes in Securities.
None
ITEM 3. Defaults Upon Senior Securities.
None
ITEM 4. Submission of Matters to a Vote of Security
Holders.
None
ITEM 5. Other Information
None
ITEM 6. Exhibits and Reports on Form 8-K.
During the second quarter of 1998 ending on June 30, 1998,
no form 8-K reports were filed.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act
of 1934, the registrant has duly caused this report to be
signed on its behalf by the undersigned, thereunto duly
authorized.
CRONUS CORPORATION
DATE: August 24, 1998 By:
__/s/_________________
James W. McCabe,
President and Director
15
WARNING: THE EDGAR SYSTEM ENCOUNTERED ERROR(S) WHILE PROCESSING THIS SCHEDULE.
<TABLE> <S> <C>
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<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE
COMPANY'S UNAUDITED QUARTERLY FINANCIAL STATEMENTS AND IS QUALIFIED IN ITS
ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
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<FISCAL-YEAR-END> DEC-31-98
<PERIOD-END> JUN-30-98
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