FORM 10-QSB
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
(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, 1996
OR
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the transition period from_________________ to _________________
Commission File Number: 0-9500
MOUNTAINS WEST EXPLORATION, INC
(Exact name of small business issuer in its charter)
New Mexico 85-0280415
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
616 CENTRAL AVE. S.E. SUITE 230
ALBUQUERQUE, NEW MEXICO 87102
(Address of principal executive offices) (Zip Code)
(505) 243-4949
(Issuer's telephone number)
Not Applicable
(Former names, former address and former fiscal year, if changed since last
report)
Indicate by check mark whether the issuer (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 issuer
was required to file such reports), and (2) has been subject to such filing
requirements for the past 90 days. Yes [X] No [ ]
The number of shares outstanding of the issuer's common stock, par value
$.001 per share, at May 10, 1996 was 36,566,220 shares.
Transitional Small Business Disclosure Format (Check one) Yes [ ] No [X]
PART I
Item 1. FINANCIAL STATEMENTS
MOUNTAINS WEST EXPLORATION, INC.
CONDENSED BALANCE SHEET
UNAUDITED
March 31, 1996
ASSETS
Current assets
Cash .................................................... $ 143,784
Account receivable/prepaid expenses ..................... 3,427
-----------
Total current assets .............................. 147,211
-----------
Property and Equipment
Office furniture and equipment, at cost ................. 12,186
Less accumulated depreciation ........................... (7,985)
-----------
Net property and equipment ........................ 4,201
-----------
Oil and gas properties, using the successful
efforts method (Note 3) ................................. 2,226,289
Less accumulated depreciation, depletion
and amortization ........................................ (13,254)
-----------
Net oil and gas properties ........................ 2,213,035
-----------
Other assets
Term deposit account - restricted ....................... 53,042
Note receivable, officer ................................ 100,000
Mineral Interest ........................................ 40,083
Mineral Investment ...................................... 4,495
-----------
Total other assets ............................... 197,620
-----------
$ 2,562,067
===========
LIABILITIES AND SHAREHOLDERS EQUITY
Current liabilities
Advances ................................................ $ 2,627
Accounts Payable ........................................ 16,004
Accrued liabilities ..................................... 1,832
Due to affiliates ....................................... 2,178,499
-----------
Total Current Liabilities ........................ 2,198,962
-----------
Shareholders' equity
Common Stock, $.001 par value, authorized:
50,000,00 shares; issued 36,635,720
shares; outstanding, 36,566,220 shares .............. 36,636
Capital in excess of par value .......................... 1,562,538
Capital in excess of par value - warrants ............... 46,687
Accumulated deficit .................................... (1,277,236)
Treasury stock, at cost, 69,500 shares .................. (5,520)
-----------
Total Stockholders Equity ........................ 363,105
-----------
$ 2,562,067
===========
See accompanying notes to financial statements
MOUNTAINS WEST EXPLORATION, INC.
CONDENSED STATEMENTS OF OPERATIONS
UNAUDITED
Three Months Three Months
Ended Ended
March 31, 1996 March 31, 1995
REVENUES
Oil and Gas Sales ........................ 3,680 2,004
Interest in Sale of oil & Gas
property ............................ 170,000 --
----------- -----------
173,680 2,004
----------- -----------
EXPENSES
Production costs ......................... 106,096 645
Exploration costs ........................ -- 38
Depreciation and depletion ............... 1,276 660
Consulting ............................... -- 468
General and administrative ............... 41,937 25,753
----------- -----------
Total expenses ..................... 149,309 27,564
----------- -----------
Earnings (loss) from operations ............... 24,371 (25,560)
----------- -----------
Other income
Interest income .......................... 2,063 872
----------- -----------
Total other income ................. 2,063 872
----------- -----------
Net earnings (loss) ........................... 26,434 (24,688)
=========== ===========
Earnings (loss) per common share: ............. 0.00 0.00
=========== ===========
Weighted Average Number of Shares
Outstanding (Note 2) .................... 36,575,231 36,635,720
=========== ===========
See accompanying notes to financial statements
MOUNTAINS WEST EXPLORATION, INC.
CONDENSED STATEMENTS OF CASH FLOWS
UNAUDITED
Three Months Three Months
Ended Ended
March 31, March 31,
1996 1995
Cash flows from operating activities
Cash received from customers .................. $ 173,680 $ 2,004
Cash paid to suppliers & employees ............ (146,752) (27,048)
Interest received ............................. 2,063 872
--------- ---------
Net cash provided (used by)
operating activities ...................... 28,991 (24,172)
--------- ---------
Cash flows from investing activities
Acquisition of fixed assets ................... -- (334)
Proceeds from advances ........................ 10,000 --
Purchases related to oil and
gas venture .............................. (8,496) --
--------- ---------
Net cash provided (used) by
investing activities ...................... 1,504 (334)
--------- ---------
Cash flows from financing activities
Purchase of treasury stock .................... (2,040) --
--------- ---------
Net cash used by
financing activities ...................... (2,040) --
--------- ---------
Net increase (decrease) in cash .................... 28,455 (24,506)
Cash at beginning of period ........................ 115,329 44,755
--------- ---------
Cash at end of period .............................. $ 143,784 $ 20,249
========= =========
Reconciliation of net income (loss) to cash
provided (used) by operating Activities
Net earnings (loss) .......................... $ 26,434 $ (24,688)
Adjustments
Depreciation, depletion and
amortization ........................... 1,276 660
Decrease in prepaid expenses
and accounts receivable ................ 875 --
Increase (decrease) in accounts
payable and accrued liabilities ........ 406 (144)
--------- ---------
Net Cash provided (used)
by operating activities .................... $ 28,991 $ (24,172)
========= =========
Noncash Investing and Financing Activities
- ------------------------------------------
The Company was loaned $315,043 and $42,461 for the three month periods
ended March 31, 1996 and 1995 , which was invested in its oil and gas property
in Papua, New Guinea.
See accompanying notes to financial statements
MOUNTAINS WEST EXPLORATION, INC.
NOTES TO FINANCIAL STATEMENTS
March 31, 1996
1) NOTES TO FINANCIAL STATEMENTS
The balance sheet at March 31, 1996 and statements of operations and statements
of cash flows for the three months ended March 31, 1996 and 1995 have been
prepared by the company, without audit. In the opinion of management, all
adjustments, including normal recurring adjustments necessary to present fairly
the financial position, results of operations and cash flows, have been made.
Certain information and footnote disclosures normally included in financial
statements prepared in accordance with generally accepted accounting principles
have been condensed or omitted. It is suggested that these financial statements
be read in conjunction with the Company's audited financial statements at
December 31,1995. The results of operations for the three months ended March 31,
1996 are not necessarily indicative of operating results for the full year.
2) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Net income or loss per common share has been computed based on the weighted
average number of shares outstanding during the period. Stock options issued in
1991 have not been considered as their effect would be antidilutive.
3) OIL AND GAS PROPERTIES
Capitalized costs using the successful efforts method related to the Company's
oil and gas activities as of March 31, 1996 are as follows:
Proved developed properties $ 14,779
Proved shut - in property 2,211,510
Accumulated depreciation,
depletion, amortization
and valuation allowances (13,254)
-----------
Net capitalized costs $ 2,213,035
===========
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OR PLAN OF OPERATION
Results of Operations
- ---------------------
During the quarter ended March 31, 1996, oil and gas sales were $3,680
Compared to $2,004 for the same period in the prior year. Additional production
from its Colorado properties is expected to provide an increase in revenue
beginning in the current quarter. Material increases in revenues are not
anticipated by management to occur until the Company's New Guinea properties are
placed in production, which is estimated to occur in the fall of 1997.
Changes in Financial Condition
- ------------------------------
The Company has experienced an increase in cash and total assets in the
first quarter of this year. It is management's belief that expenditures for the
rest of the year will be minimal and will, in addition to the ordinary
day-to-day costs of operations of the Company's offices in Albuquerque, consist
of the costs of the President's travel to New Guinea to meet with other owners
of interests in PPL 56 or with owners of the unitized properties that include
PPL 56. Because of the effort being devoted to completing pipe-line and bringing
this property on production Management cannot predict how many such trips may be
necessary. Because Gedd, Inc. has agreed to bear the costs of developing an
exploration program for PPL 165, Management does not anticipate any additional
costs or expenses related to that concession.
PART II. OTHER INFORMATION
ITEM 1. LEGAL PROCEEDINGS
Other than the judgment described in the Company's annual report on form
10-KSB, incorporated herein by reference, Management knows of no legal
proceedings or unsatisfied judgments which have not been provided for in any
court or agency to which the Company or any of its officers or directors are or
may be a party.
ITEM 2. CHANGES IN SECURITIES
NONE
ITEM 3. DEFAULTS IN SENIOR SECURITIES
NONE
ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDER
NONE
ITEM 5. OTHER INFORMATION
NONE
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K
(a) There are no exhibits required by Item 601 of regulation S-K
(b) Reports on Form 8-K. State whether any reports on Form 8-K have been
filed during the quarter for which this report is filed, listing the items
reported, any financial statement filed, and the dates of any such reports.
NONE
SIGNATURES
In accordance with section 13 to 15 (d) of the Exchange Act, the registrant
has duly caused this report to be signed on its behalf by the undersigned,
thereunto duly authorized.
Robert A. Doak, Jr. May 13, 1996
- -----------------------------------------------------------
Robert A. Doak, Jr. President, Chief Executive Officer
and Chief Financial Officer
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