UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form 10-Q
MARK ONE
X QUARTERLY REPORT PURSUANT TO SECTION 13 or 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
FOR THE QUARTERLY PERIOD ENDED MARCH 31, 1995
TRANSITION REPORT PURSUANT TO SECTION 13 or 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
Commission File Number 0-9579
HALLWOOD ENERGY CORPORATION
(Exact name of registrant as specified in its charter)
TEXAS 75-1319083
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification Number)
4582 SOUTH ULSTER STREET PARKWAY
SUITE 1700
DENVER, COLORADO 80237
(Address of principal executive offices (Zip Code)
Registrant's telephone number, including area code: (303) 850-7373
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. Yes x No
Shares of Common Stock outstanding at May 11, 1995 494,126
HALLWOOD ENERGY CORPORATION
CONSOLIDATED BALANCE SHEETS
(In thousands except Shares)
<TABLE>
<CAPTION>
March 31, December 31,
1995 1994
(Unaudited)
<S> <C> <C>
CURRENT ASSETS
Cash and cash equivalents $ 228 $ 668
Accounts receivable:
Affiliates 2,079 526
Trade 7 7
Current assets of affiliate 2,421 1,760
------ -------
4,735 2,961
------ -------
PROPERTY, PLANT AND EQUIPMENT, at cost
Oil and gas properties (full cost method):
Proved mineral interests 112,120 111,951
Unproved mineral interests - domestic 59 46
Unproved mineral interests - foreign 288
Other property and equipment 3,746 3,745
------- -------
Total 115,925 116,030
Less accumulated depreciation, depletion,
amortization and property impairment (105,859) (105,461)
------- -------
Net Property, Plant and Equipment 10,066 10,569
------- -------
OTHER ASSETS
Investment in common stock of parent (at fair value) 2,912 1,680
Investment in bonds of parent (at cost adjusted for
amortization of discount) 1,352
Noncurrent assets of affiliate 1,596 1,704
------- -------
Total 4,508 4,736
------- -------
TOTAL ASSETS $ 19,309 $ 18,266
======= =======
<CAPTION>
HALLWOOD ENERGY CORPORATION
CONSOLIDATED BALANCE SHEETS
(In thousands except Shares)
(Continued)
March 31, December 31,
1995 1994
(Unaudited)
<S> <C> <C>
CURRENT LIABILITIES
Accounts payable and accrued liabilities $ 129 $ 154
Current liabilities of affiliate 2,422 2,879
------- -------
2,551 3,033
NONCURRENT LIABILITIES
Long-term obligations of affiliate 5,371 3,917
------- -------
Total Liabilities 7,922 6,950
------- -------
STOCKHOLDERS' EQUITY
Series D convertible, cumulative,
redeemable preferred stock, $.01
par value; 65,000 shares authorized;
18,864 shares issued with a liquidation
preference of $1,154 1 1
Series E convertible preferred stock; $.01 stated
value; 450,000 shares authorized; 356,000 shares
issued with a liquidation preference of $.01 per share 4 4
Common stock, $.50 par value, 80,000,000 shares
authorized; 842,121 shares issued 421 421
Capital in excess of par value 57,383 58,248
Accumulated deficit (42,450) (42,290)
Unrealized gain (loss) on investment in common stock
of parent 336 (896)
Less cost of treasury stock of 347,995 common shares
and 9,000 and 7,500 Series D preferred shares
as of 1995 and 1994, respectively (4,308) (4,172)
------- -------
Total Stockholders' Equity 11,387 11,316
------- -------
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 19,309 $ 18,266
======= =======
<CAPTION>
HALLWOOD ENERGY CORPORATION
CONSOLIDATED STATEMENT OF OPERATIONS
(Unaudited)
(In thousands except per Share data)
For the Three Months
Ended March 31,
1995 1994
<S> <C> <C>
REVENUES:
Oil revenue $ 518 $ 454
Gas revenue 780 1,173
------ ------
1,298 1,627
------ ------
EXPENSES:
Production operating expense 339 344
General and administrative 252 232
Depreciation, depletion and amortization 398 480
Impairment of oil and gas properties 464
Interest 71 98
------ ------
1,524 1,154
------ ------
OTHER INCOME 66 47
------ ------
INCOME (LOSS) (160) 520
PREFERRED STOCK DIVIDENDS 372 18
------ ------
NET INCOME (LOSS) FOR COMMON STOCKHOLDERS $ (532) $ 502
====== ======
NET INCOME (LOSS) PER COMMON SHARE $ (1.08) $ .59
====== ======
WEIGHTED AVERAGE COMMON SHARES 494 850
====== ======
<CAPTION>
HALLWOOD ENERGY CORPORATION
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
(In thousands)
For the Three Months
Ended March 31,
1995 1994
<S> <C> <C>
OPERATING ACTIVITIES:
Net income (loss) $ (160) $ 520
Adjustments to reconcile net income to net
cash used in operating activities:
Depreciation, depletion, amortization
and property impairment 862 480
Undistributed earnings of affiliate (706) (1,042)
Amortization of bond discount (24) (24)
------ ------
Cash used in operations
before working capital changes (28) (66)
Changes in operating assets and liabilities provided
(used) cash net of noncash activity:
Receivables from affiliates (1,553) (78)
Receivables - trade 2
Accounts payable and accrued liabilities (12) (126)
------- -------
Net cash used in operating activities (1,593) (268)
------- -------
INVESTING ACTIVITIES:
Additions to property (17) (59)
Proceeds from property sales 4
Distributions received from affiliate 788 771
Sale of bonds 1,385
Other investing activities (2) (4)
------- -------
Net cash provided by investing activities 2,154 712
------- ------
FINANCING ACTIVITIES:
Dividends paid (865) (1,463)
Repurchase of preferred shares (136)
------ -------
Net cash used in financing activities (1,001) (1,463)
------- -------
DECREASE IN CASH AND CASH EQUIVALENTS (440) (1,019)
CASH AND CASH EQUIVALENTS:
BEGINNING OF PERIOD 668 1,128
------ -------
END OF PERIOD $ 228 $ 109
====== ======
<F1>
The accompanying notes are an integral part
of the financial statements.
</TABLE>
HALLWOOD ENERGY CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
NOTE 1 - GENERAL
Hallwood Energy Corporation ("HEC") is a Texas corporation engaged in the
development, production and sale of oil and gas. HEC is the general partner
of Hallwood Energy Partners, L. P. ("HEP"), a publicly traded Delaware
limited partnership. HEP commenced operations in August 1985 after
completing an exchange offer in which HEP acquired oil and gas properties
and operations from HEC, 24 oil and gas limited partnerships of which HEC
was the general partner and certain working interest owners that had
participated in wells with HEC and the limited partnerships. HEC now
conducts substantially all of its operations through HEP. The activities of
HEP are conducted by HEP Operating Partners, L. P. ("HEPO") and EDP
Operating, Ltd. ("EDPO").
HEC's wholly-owned subsidiaries include Hallwood Operating Company ("HOC"),
former operator for HEC's properties, and Hallwood G. P., Inc., the general
partner of EDPO. Unless otherwise indicated, all references to HEC in
connection with the ownership, exploration, development or production of oil
and gas properties refer to HEC and its proportionate ownership of HEP.
HEC's parent company, The Hallwood Group Incorporated ("Hallwood Group"),
owns 70% of the outstanding shares of HEC on a fully diluted basis.
The interim financial data are unaudited; however, in the opinion of
management, the interim data include all adjustments, consisting only of
normal recurring adjustments, necessary for a fair presentation of the
results for the interim periods. These financial statements should be read
in conjunction with the financial statements and accompanying footnotes
included in HEC's December 31, 1994 Annual Report on Form 10-K.
ACCOUNTING POLICIES
INVESTMENT IN HEP
HEC's general partner interest in HEP entitles it to a share of net revenues
derived from HEP's properties ranging from 2% to 25%, and HEC holds
approximately 7.3% of HEP's limited partner units. HEC accounts for its
ownership of HEP using the proportionate consolidation method of accounting
whereby HEC records its proportional share of each of HEP's revenues and
expenses, current assets, current liabilities, noncurrent assets, long-term
obligations and fixed assets. HEP owns approximately 40% of its affiliate,
Hallwood Consolidated Resources Corporation ("HCRC"), which HEP accounts for
under the equity method.
INVESTMENT IN PARENT
Hallwood Group, a public company traded on the New York Stock Exchange, is a
diversified holding company with interests in oil and gas, specialty
restaurants, real estate, textile products and hotels. During 1991, HEC
purchased $2,149,000 aggregate principal amount of Hallwood Group's 13.5%
Subordinated Debentures due July 31, 2009 ("Subordinated Debentures"). The
purchase price was $1,429,000 including $99,000 of accrued interest. During
1992, HEC received an additional $290,000 face value of bonds as payment in
lieu of interest. HEC exchanged the original issue Subordinated Debentures
for 7% Collateralized Subordinated Debentures (the "New Collateralized
Debentures") on March 2, 1993. Interest on the New Collateralized
Debentures accrued from the date of the exchange at the rate of 7% per
annum, payable quarterly in cash. Additionally, during the first quarter of
1993, Hallwood Group purchased for $380,000 the Subordinated Debentures that
had been issued to HEC in 1991 and 1992 as payment in lieu of interest. On
March 29, 1995, Hallwood Group repurchased the New Collateralized Debentures
for $1,385,000 plus accrued interest through the purchase date.
During 1990, 1991, the first quarter of 1992 and April and May of 1995, HEC
acquired 899,432 shares or approximately 14% of the outstanding shares of
Hallwood Group on the open market. HEC is holding the stock of Hallwood
Group as a long-term investment and has classified it as an available-for-
sale security.
NOTE 2 - DIVIDENDS
HEC paid a dividend of $1.00 per share of common stock and $1.00 per share
of Series E Preferred Stock on March 3, 1995 to all shareholders of record
on February 28, 1995.
It is anticipated that HEC will pay a semi-annual dividend on all
outstanding stock through at least 1995, in an amount to be determined by
the Board of Directors after consideration of the cash flow and working
capital needs of HEC.
NOTE 3 - REPURCHASES OF SERIES D PREFERRED STOCK
During the first quarter of 1995, HEC repurchased 1,500 shares of its Series
D Preferred Stock for $90.88 per share. During April 1995, in two separate
transactions, HEC repurchased the remaining 9,864 shares of its Series D
Preferred Stock at $91.80 per share.
NOTE 4 - LEGAL PROCEEDINGS
On April 21, 1995, the United States District Court for the Southern
District of New York entered an order provisionally certifying the class and
preliminarily approving the settlement of In Re: Hallwood Energy Partners,
L. P. Securities Litigation, 90 Civ. 1555. The class is composed of all
persons and entities who beneficially owned or held units of Energy
Development Partners, Ltd. ("EDP") on May 9, 1990 and who exchanged, or were
eligible to exchange, their EDP units for HEP Units pursuant to the merger
of EDP into HEP (the "Transaction"). The order directs plaintiffs' counsel
to mail to class members notice of the settlement. The final hearing
approving the settlement will be held on August 10, 1995.
Under the terms of the settlement, HEP will make a cash payment of
approximately $2,870,000, which was recorded as an expense in HEP's 1994
financial statements as the estimated cost associated with the litigation.
In addition, in connection with plaintiffs' allegation that they did not
receive adequate compensation for their EDP Units at the time of the
Transaction, HEP will issue Units having a market value of $5,330,000. When
issued, these Units, which are presently estimated to total approximately
970,000, will be treated, for financial statement purposes only, as
additional Units issued in connection with the Transaction, which was
accounted for as a reorganization of entities under common control, in a
manner similar to a pooling of interests, and will be reflected as
outstanding Units since May 9, 1990, the date of the Transaction. As a
result, after the Units are issued, the number of Units outstanding and the
net income (loss) per Unit will be retroactively restated for all periods
subsequent to the Transaction. An affiliate of the Hallwood defendants may
choose to purchase all of the Units for $5,330,000. The net proceeds of the
settlement will be distributed to the class after all time periods for an
appeal of the settlement order have expired. HEP anticipates that the
distribution will occur in late September or October 1995.
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS
LIQUIDITY AND CAPITAL RESOURCES
FINANCING
HEC has no direct long-term obligations at March 31, 1995. The Company is
currently negotiating with a bank to obtain a $1,500,000 line of credit, the
proceeds of which will be used to replenish the Company's cash balances
subsequent to repurchases of its Preferred Stock as described below.
Included in the accompanying balance sheet at March 31, 1995 are long-term
obligations of affiliate of $5,371,000. This amount represents HEC's share
of HEP's outstanding long-term obligations which consist primarily of
$19,700,000 borrowed under a line of credit and $17,143,000 borrowed under a
note purchase agreement. HEP's borrowings are secured by a first lien on
approximately 80% in value of HEP's oil and gas properties.
PROPERTY SALES AND CAPITAL BUDGET
During April 1995, HEC's board of directors authorized HEC to spend up to
$1,500,000 to purchase common stock of Hallwood Group. The Company intends
to make such purchases from time to time in open market or privately
negotiated transactions. During April and May 1995, HEC purchased 3,432
shares of Hallwood Group at $3.00 per share on the open market.
During the first quarter of 1995, HEC repurchased 1,500 shares of its Series
D Preferred Stock for $90.88 per share. During April 1995, in two separate
transactions, HEC repurchased the remaining 9,864 shares of its Series D
Preferred Stock at $91.80 per share.
HEC had no material property acquisitions or sales and did not engage in any
exploration or development activity during the first quarter of 1995. A
summary of HEP's significant property transactions follows.
Through March 31, 1995, HEP has incurred approximately $4,033,000 directly
and $1,081,000 indirectly through its investment in Hallwood Spraberry
Drilling Company, L.L.C. ("HSD") for exploration, development and
acquisition costs toward the 1995 capital budget of $15,800,000 of which
$11,600,000 is for direct expenditures and the remainder for HSD
expenditures. The direct expenditures were comprised of approximately
$1,782,000 for HEP's Indonesian project as further discussed below,
approximately $1,678,000 for domestic exploration and development
expenditures and approximately $573,000 for property acquisitions and land.
The indirect expenditures were comprised of drilling costs. A description
of significant exploration and development projects to date in 1995 follows.
Through HEP's investment in HSD, approximately $1,081,000, net to HEP's
interest, has been incurred through March 31, 1995 for five drilled wells
and nine recompletions on the Rocker "b" Ranch in Reagan County, Texas. HSD
has its own line of credit of $4,000,000 net to HEP's interest, provided by
a third party lender. The line of credit is secured only by certain leases
on the Rocker "b" Ranch and is otherwise nonrecourse to HEP. HSD plans to
drill up to 32 wells and to recomplete the same number of wells through July
1996. Based on the initial success of the drilling and recompletions, HEP
acquired substantial additional acreage in the Rocker "b" Ranch during the
second quarter and HSD plans to expand its project area to include this
acreage. HSD has two drilling rigs under contract in the area and plans to
place a third under contract in the second quarter of 1995. Discussions are
underway with other operators in the area regarding development of new
acreage.
Significant exploration and development expenditures through March 31, 1995
include approximately $390,000 on four successful drilling wells and three
successful recompletions in the West Texas Kermit area and approximately
$300,000 on one development well in Reagan County, Texas. Gross production
on these properties has increased by 535 barrels of oil per day and 780 mcf
per day. HEP intends to participate in several more workovers and drilling
wells in this area in 1995. Future projects include secondary recovery in
the San Andres and Holt Formations. HEP has 25% to 35% working interests in
the Kermit area wells and a 90% working interest in the Reagan County well.
In April of 1995, a workover was performed on the G.S. Boudreaux in
Lafayette Parish, Louisiana, whereby gross production rates were increased
from 17,500 mcf per day and 370 barrels of condensate per day to 24,600 mcf
per day and 550 barrels of condensate per day during the second quarter of
1995. Present production is limited by surface facilities, and additional
planned facility work is anticipated to further increase production. HEP
has a 30% working interest in the well. The increased production rate on
the G.S. Boudreaux will significantly increase the state administered
production allowable for the A.L. Boudreaux in the same area, resulting in
production increases from that well.
In Richland County, Montana, the Lewis #1, was recompleted to the Interlake
Formation for a gross flowing rate of 450 barrels of oil per day and 250 mcf
per day initial potential. A development well to further exploit this
deposit is planned for 1995. HEP has a 22% working interest in the area.
Through March 31, 1995, HEP has spent approximately $230,000 to date on a
program started in late 1994 in Lea County, New Mexico. The program
included five successful non-operated development wells and one successful
recompletion having gross combined initial flowing rates of 2,389 barrels of
oil per day and 3,023 mcf per day. HEP has a 5% working interest in the
field.
HEP is currently completing an exploratory well in Wyoming for which $85,000
has been incurred during the first quarter of 1995. A gross flowing
potential of 750 barrels of oil per day and 150 mcf per day has been
recorded, and a delineation well is planned for the summer of 1995. HEP has
a 17% working interest in the field.
During the first quarter of 1995, HEP also acquired acreage in Texas,
Louisiana, Michigan, Wyoming and Montana for approximately $90,000, as well
as working interests in the San Juan Basin of New Mexico and Reagan County,
Texas for approximately $120,000. Numerous other projects are also underway
in Montana, Colorado, Utah and Kansas.
During the first quarter of 1995, Hallwood Petroleum Indonesia, Inc.
("Hallwood Indonesia") completed and evaluated its first well, PTH-01, in
the Telaga Said Field in North Sumatra, Indonesia. A 39 barrel per day oil
test was obtained, but insufficient reserves were indicated to justify field
development costs. Consequently, Hallwood Indonesia has decided to
relinquish its interest in the contract area and is in the process of
closing down its operations there. HEC's share of HEP's impairment expense
in the first quarter of 1995, which represents the write-off of its entire
investment in Hallwood Indonesia, is $464,000.
DIVIDENDS
HEC paid a dividend of $1.00 per share of common stock and $1.00 per share
of Series E Preferred Stock on March 3, 1995, to all shareholders of record
on February 28, 1995.
It is anticipated that HEC will pay a semi-annual dividend on all
outstanding stock through at least 1995, in an amount to be determined by
the Board of Directors after consideration of the cash flow and the working
capital needs of HEC.
HEP DISTRIBUTIONS
HEP declared a limited partner distribution of $.20 per Unit and a general
partner distribution of $657,000 for the first quarter of 1995, payable on
May 15, 1995. The total of the distributions receivable by HEC is $788,000,
which has been accrued in receivables from affiliates at March 31, 1995.
RESULTS OF OPERATIONS
The following table is presented to contrast HEC's average oil and gas
prices and production. Significant fluctuations are discussed in the
accompanying narrative.
<TABLE>
<CAPTION>
OIL AND GAS PRICES AND PRODUCTION
(In thousands except for price)
For the Three Months Ended March 31,
1995 1994
Oil Gas Oil Gas
(bbl) (mcf) (bbl) (mcf)
<S> <C> <C> <C> <C>
Average price $17.27 $ 1.76 $14.65 $ 2.62
Production 30 443 31 448
THREE MONTHS ENDED MARCH 31, 1995 COMPARED TO THREE MONTHS ENDED MARCH 31,
1994
OIL REVENUE
Oil revenue increased $64,000 during the first quarter of 1995 as compared
with the first quarter of 1994. This increase is comprised of an increase
in oil prices from $14.65 per barrel in 1994 to $17.27 per barrel in 1995
slightly offset by a 3% decrease in oil production from 31,000 barrels in
1994 to 30,000 barrels in 1995. The decrease in production is due to normal
production declines partially offset by increased production from
developmental drilling projects in West Texas.
GAS REVENUE
Gas revenue decreased $393,000 during the first quarter of 1995 as compared
with the corresponding period in 1994 primarily as a result of a decrease in
average gas prices from $2.62 per mcf in 1994 to $1.76 in 1995 combined with
a decrease in production from 448,000 mcf in 1994 to 443,000 mcf in 1995.
The decrease in gas production is primarily due to normal production
declines, allowable production limits and gas balancing during the first
quarter of 1995.
GENERAL AND ADMINISTRATIVE EXPENSE
General and administrative expense includes costs incurred for direct
administrative services such as legal and audit fees, as well as allocated
internal overhead incurred by Hallwood Petroleum, Inc. ("HPI"), an affiliate
of HEC, which manages and operates certain oil and gas properties on behalf
of HEC, HEP and their affiliates. These costs increased $20,000 during the
first quarter of 1995 as compared to the first quarter of 1994, due to HEC's
pro rata share of bank fees associated with the extension of HEP's line of
credit during the first quarter of 1995.
DEPRECIATION, DEPLETION AND AMORTIZATION
Depreciation, depletion and amortization expense decreased $82,000 during
the first quarter of 1995 as compared with the first quarter of 1994. The
decrease is primarily due to lower capitalized costs in 1995 as compared
with 1994.
IMPAIRMENT OF OIL AND GAS PROPERTIES
Impairment of oil and gas properties represents HEC's pro rata share of the
write-off of HEP's Indonesian operations.
INTEREST EXPENSE
Interest expense decreased $27,000 during the first quarter of 1995 as
compared with the first quarter of 1994 as a result of HEP's lower average
debt balance in the first quarter of 1995 as compared with the first quarter
of 1994.
OTHER INCOME
Other income consists primarily of HEC's direct interest income, as well as
HEC's share of HEP's interest income, facilities income from two gathering
systems in New Mexico, pipeline revenue and miscellaneous income or expense.
The increase of $19,000 during the first quarter of 1995 as compared with
the first quarter of 1994 is primarily due to fees HEC earned on property
acquisitions made by HEP. The remaining decrease is comprised of numerous
other items, none of which are individually significant.
INCOME TAX EXPENSE
There was no income tax provision or benefit during 1995 and 1994 due to the
utilization of net operating loss carryforwards.
PART II - OTHER INFORMATION
ITEM 1 - LEGAL PROCEEDINGS
Reference is made to Item 8 - Note 11 of Form 10-K for the year
ended December 31, 1994 and Item 1 - Note 4 of Form 10-Q for the
quarter ended March 31, 1995.
ITEM 2 - CHANGES IN SECURITIES
None.
ITEM 3 - DEFAULTS UPON SENIOR SECURITIES
None.
ITEM 4 - SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
On May 9, 1995, HCRC held its Annual Meeting of Shareholders at which
Anthony J. Gumbiner, William L. Guzzetti, Brian M. Troup, Hans-Peter
Holinger, Rex A. Sebastian and Nathan C. Collins were elected
directors. Following is the number of votes cast for and withheld
for each of the directors:
</TABLE>
<TABLE>
<CAPTION>
Name Votes For Votes Withheld
<S> <C> <C>
Anthony J. Gumbiner 425,783 9,512
William L. Guzzetti 425,763 9,532
Brian M. Troup 417,493 17,802
Hans-Peter Holinger 417,493 17,802
Rex A. Sebastian 417,493 17,802
Nathan C. Collins 417,493 17,802
<F1>
There were no abstentions or broker non-votes.
</TABLE>
ITEM 5 - OTHER INFORMATION
None.
ITEM 6 - EXHIBITS AND REPORTS ON FORM 8-K
None.
SIGNATURE
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.
HALLWOOD ENERGY CORPORATION
By:/S/Robert S. Pfeiffer
Date: May 11, 1995 Robert S. Pfeiffer, Vice President
(Chief Financial Officer)
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
This schedule contains summary financial information extracted from Form 10-Q
for the quarter ended March 31, 1995 for Hallwood Energy Corporation and is
qualified in its entirety by reference to such Form 10-Q.
</LEGEND>
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1995
<PERIOD-END> MAR-31-1995
<CASH> 228
<SECURITIES> 0
<RECEIVABLES> 2,086
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 4,735
<PP&E> 115,925
<DEPRECIATION> (105,859)
<TOTAL-ASSETS> 19,309
<CURRENT-LIABILITIES> 2,551
<BONDS> 0
<COMMON> 421
0
5
<OTHER-SE> 10,961
<TOTAL-LIABILITY-AND-EQUITY> 19,309
<SALES> 1,298
<TOTAL-REVENUES> 1,298
<CGS> 0
<TOTAL-COSTS> 1,453
<OTHER-EXPENSES> (66)
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 71
<INCOME-PRETAX> (160)
<INCOME-TAX> 0
<INCOME-CONTINUING> (160)
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (160)
<EPS-PRIMARY> (1.08)
<EPS-DILUTED> 0
</TABLE>
