. U. S. SECURITIES AND EXCHANGE COMMISSION
Washington D.C. 20549
FORM 10-Q-SB
(MARK ONE)
[ X ] QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT
OF 1934 FOR THE QUARTERLY PERIOD ENDED DECEMBER 31, 1996
[ ] TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934 FOR THE TRANSITION PERIOD FROM ______ TO_______
Commission File Number 0-9494
ASPEN EXPLORATION CORPORATION
- --------------------------------------------------------------------------------
Delaware 84-0811316
- ------------------------------- -----------
(State or other jurisdiction of (IRS Employer
incorporation or organization) I.D. Number)
Suite 208, 2050 S. Oneida Street, Denver, Colorado, 80224
- --------------------------------------------------------------------------------
(Address of Principal Executive Offices) (Zip Code)
(303) 639-9860
- --------------------------------------------------------------------------------
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 [ ]
Indicate the number of shares outstanding of each of the Issuer's classes of
common stock as of the latest practicable date.
Class Outstanding at March 14, 1997
------------- -----------------------------
Common stock,
$.005 par value 4,321,322
<PAGE>
Part One. FINANCIAL INFORMATION
Item 1. Financial Statements
ASPEN EXPLORATION CORPORATION AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
December 31, June 30,
1996 1996
------------ -----------
(Unaudited) (Unaudited)
Assets
- ------
Current assets:
Cash and equivalents................ $ 43,657 $ 102,223
Precious metals..................... 18,824 221,866
Accounts receivable................. 56,946 61,245
Prepaid expenses and other.......... 7,934 4,923
---------- ----------
Total current assets.............. 127,361 390,257
---------- ----------
Investment in oil and gas properties,
at cost (full cost method of
accounting)......................... 1,290,853 1,349,047
Less accumulated depreciation,
depletion, amortization and
valuation allowance............... (913,221) (873,221)
---------- ----------
Net oil and gas properties........ 377,632 475,826
---------- ----------
Property and equipment, at cost:
Furniture, fixtures and vehicles.... 144,383 146,087
Less accumulated depreciation and
amortization...................... (101,148) (95,094)
---------- ----------
Net property and equipment........ 43,235 50,993
---------- ----------
Undeveloped mining properties, at cost
less reserve for impairment of
$193,495.......................... 159,194 76,434
---------- ----------
Organization cost - Aspen Recursos de
Mexico and ISL Resources (Note 3).. 25,539 23,869
---------- ----------
Cash Surrender Value, life insurance.. 201,146 179,470
---------- ----------
TOTAL ASSETS...................... $ 934,107 $1,196,849
========== ==========
(Statement Continues)
See notes to Consolidated Financial Statements
2
<PAGE>
ASPEN EXPLORATION CORPORATION AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(Continued)
December 31, June 30,
1996 1996
----------- --------
(Unaudited) (Unaudited)
Liabilities and Stockholders' Equity
- ------------------------------------
Current liabilities:
Accounts payable & accrued expenses. $ 80,936 $ 80,713
Advances from joint owners.......... 94,630 245,481
Severance taxes payable............. 13,819 13,819
Due to related parties.............. 36,853 5,216
--------- ---------
Total liabilities..................... 226,238 345,229
--------- ---------
Notes Payable......................... 125,000 -0-
--------- ---------
Stockholders' equity:
Common stock, $.005 par value:
Authorized: 50,000,000 shares
Issued: At December 31, 1996:
4,424,922 and 4,424,922 at June
30, 1996....................... 22,124 22,124
Outstanding: At December 31, 1996
4,321,322 and 4,321,322 at
June 30, 1996..................
Capital in excess of par value ..... 5,651,388 5,651,388
Accumulated deficit ................ (5,043,889) (4,775,138)
---------- ----------
629,623 898,374
Less common stock in treasury,
at cost: 103,600 shares ........ (46,754) (46,754)
---------- ----------
Total stockholders' equity.......... 582,869 851,620
---------- ----------
Total liabilities and stockholders'
equity................................ $ 934,107 $1,196,849
========== ==========
The accompanying notes are an integral
part of these statements.
3
<PAGE>
<TABLE>
<CAPTION>
ASPEN EXPLORATION CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
Three Months Ended Six Months Ended
December 31, December 31,
--------------------------- ----------------------------
1996 1995 1996 1995
---- ---- ---- ----
<S> <C> <C> <C> <C>
Revenues:
Oil and gas............ $ 87,380 $ 95,928 $ 163,437 $ 195,277
Mineral................ 2,771 -0- 2,771 246,589
Alaska mining tax
exemption............. -0- -0- -0- 45,000
Interest and other, net 4,338 (823) 8,578 5,445
--------- --------- --------- ----------
Total Revenues........... 94,489 95,105 174,786 492,311
========= ========= ========= ==========
Costs and expenses:
Oil & gas production... 15,540 13,839 24,626 20,885
Loss on sale of
precious metals....... 10,002 36,552 10,002 46,316
Depreciation, depletion
and amortization...... 14,519 24,979 49,038 32,479
Selling, general and
administrative........ 185,810 118,369 359,871 275,823
--------- --------- --------- ---------
Total Costs & Expenses... 225,871 193,739 443,537 375,503
--------- --------- --------- ---------
NET INCOME............... $(131,382) $ (98,634) $(268,751) $ 116,808
========= ========= ========= =========
Net Income per share..... $ (.03) (.02) $ (.06) .03
========= ========= ========= =========
Weighted average number of
common shares outstanding 4,321,322 4,271,322 4,321,322 4,271,322
========= ========= ========= =========
The accompanying notes are an integral
part of these statements.
4
</TABLE>
<PAGE>
ASPEN EXPLORATION CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED)
Six months ended December 31,
1996 1995
------------ ------------
Cash flows from operating activities:
Net income (loss)..................... $ (268,751) $ 116,808
Adjustments to reconcile net income
to net cash provided by operating
activities:
Proceeds from sale of precious metals. -0- 447,602
Depreciation, depletion & amortization 49,038 32,479
Loss on sale of precious metals....... -0- 46,316
Decrease (increase) in precious metals 203,042 (246,589)
Decrease in accounts receivable....... 4,299 2,519
Increase in prepaid expenses.......... (3,011) (4,003)
Increase (Decrease) in accounts
payable and accrued expenses....... (150,628) 169,981
Increase in payable to related parties 31,637 -0-
---------- ----------
Net cash provided by (used in)
operating activities................ (134,374) 565,113
---------- ----------
(Statement Continues)
5
<PAGE>
ASPEN EXPLORATION CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED)
(Continued)
Six months ended December 31,
1996 1995
---------- ---------
Cash flows from investing activities:
Additions to undeveloped mining
properties............................ (82,760) (7,354)
Sale of oil & gas properties.......... 100,000 -0-
Purchase of oil & gas properties...... (119,632) (190,437)
Proceeds - prospect fees.............. 77,826 -0-
Investment in subsidiaries "Aspen
Recursos de Mexico" and "ISL
Resources Corporation".............. (4,654) (649)
Additions to office equipment and
vehicles............................ (2,396) (1,434)
Proceeds - return of equipment........ 4,100 -0-
Additions to cash surrender value..... (21,676) (28,167)
--------- ---------
Net cash used in investing activities. (49,192) (228,041)
--------- ---------
Cash flows from financing activities:
Note from insurance company........... 125,000 -0-
--------- ---------
Net cash from financing activities.... 125,000 -0-
--------- ---------
Net (decrease) increase in cash....... (58,566) 337,072
--------- ---------
Cash and cash equivalents,
at beginning of period.............. 102,223 116,891
--------- ---------
Cash and cash equivalents,
at end of period.................... $ 43,657 $ 453,963
========= =========
Non cash transactions................. $ -0- $ 166,700
========= =========
The accompanying notes are an integral
part of these statements.
6
<PAGE>
ASPEN EXPLORATION CORPORATION AND SUBSIDIARIES
Notes to Consolidated Financial Statements
(Unaudited)
December 31, 1996
Note 1 - Basis of Presentation
The accompanying unaudited, consolidated financial statements have been prepared
in accordance with Item 310 of Regulation S-B and do not include all of the
information and footnotes required by generally accepted accounting principles
for complete consolidated financial statements. In the opinion of management,
all adjustments (consisting of normal recurring adjustments) considered
necessary for a fair presentation have been included. Operating results for the
six months ended December 31, 1996 are not necessarily indicative of the results
that may be expected for the fiscal year ending June 30, 1997. These statements
should be read in conjunction with the consolidated financial statements and
notes thereto included in Form 10-K-SB for the fiscal year ended June 30, 1996,
which is available without cost from Aspen Exploration Corporation upon request.
Summary of Significant Accounting Policies
- ------------------------------------------
Aspen Exploration Corporation ("the Company") was incorporated on February 28,
1980 and is engaged in the business of acquiring and developing interests in
domestic oil and gas properties and gold and other mineral properties.
Unaudited Financial Statements
- ------------------------------
The Company has decided to postpone the audit of its financial statements for
the year ended June 30, 1996 due to the shortage of cash and efforts to reduce
its operating expenses. As a result, the Company has presented the accompanying
annual financial statements for fiscal year 1996 without audit along with the
financial statements for the six months ended December 31, 1996, which were also
unaudited. When and if the Company has sufficient financial resources to devote
to the audit, it will have its independent auditors complete their audit of
fiscal 1996 and issue their audit opinion on those financial statements.
A summary of the Company's significant accounting policies follows:
Going Concern
- -------------
The accompanying financial statements have been prepared in conformity with
generally accepted accounting principles, which contemplates continuation of the
Company as a going concern. However, the Company has sustained substantial
operating losses in recent years. In addition, the Company has used substantial
amounts of working capital
7
<PAGE>
Note 1 - Basis of Presentation (Continued)
in its operations. Current liabilities exceed current assets by $98,877, and the
Company has a working capital deficit.
In addition, the Company's loss for the second quarter of fiscal 1997 is
$268,751. As of March, 1997, the Company has used all of its cash and gold
reserves and has withdrawn $150,000 against the cash value of a life insurance
policy on its president and has sold all its non-California oil and gas
properties for $100,000 to pay creditors. These matters raise doubt about the
Company's ability to continue as a going concern. Pending the financial outcome
of these matters, the accompanying financial statements do not include any
adjustments that might result from these uncertainties.
In view of these matters, realization of a major portion of the assets in the
accompanying balance sheet is dependent upon continued operations of the
Company, which in turn is dependent upon the Company's ability to meet its
financing requirements, and the success of future operations. Management
believes that actions presently being taken to revise the Company's operating
and financial requirements provide the opportunity for the Company to continue
and improve its operations.
In its oil and gas operations, the Company intends to focus attention on
opportunities in California, particularly those situations where the Company may
be able to require investors to pay prospect generation fees. Such fees may be
sufficient to pay for the Company's working interest in an initial well. The
Company also typically will "back in" after payout for a more substantial
interest in successful wells. The Company will also seek out production purchase
situations and, upon finding same, will attempt to retain a carried interest in
such purchases. Funding likely would come from outside sources.
In its uranium activities the Company will attempt to form joint ventures with
well-financed companies and will attempt to recover at least 100% above the
amount the Company has invested in any particular project.
Consolidated Financial Statements
- ---------------------------------
The consolidated financial statements include the Company and its wholly-owned
subsidiaries, Aspen Gold Mining Company, Aspen Recursos de Mexico, and ISL
Resources Corporation. Significant intercompany accounts and transactions have
been eliminated.
Statement of Cash Flows
- -----------------------
For statement of cash flow purposes, the Company considers short-term
investments with original maturities of three months or less to be cash
equivalents. Cash restricted from use in operations beyond three months is not
considered a cash equivalent.
8
<PAGE>
Note 2 - Net Income (Loss) per Common Share
Net income (loss) per common share is based on the weighted average number of
shares of common stock outstanding during the period.
Note 3 - Organization Costs
During the first quarter ended September 30, 1994, the Company formed a
subsidiary (Aspen Recursos de Mexico, S.A. de C.V.), which is qualified to do
business in Mexico, so that the Company can pursue management's decision to
investigate and acquire interests in mineral prospects in Mexico. During the
quarter ended September 30, 1995, the Company began amortizing its costs to
organize its subsidiary and will continue to do so over the next 60 months. As
of December 31, 1996, the subsidiary had acquired no properties in Mexico.
During the quarter ended December 31, 1996 the Company formed a new subsidiary
(ISL Resources Corporation) for certain uranium activities. As of December 31,
1996 the Company has incurred approximately $4,650 in organization costs on its
behalf.
Note 4 - Commitments and Contingencies
At December 31, 1996 the Company was committed to the following drilling and
development projects in California:
1. Drill, complete and equip the Emigh #34-1 well.
2. Install a pipeline and put the Grey Wolf #1 well on production.
3. Complete seismic work on the Brandt 16X-27 well.
As of September 30, 1996, the Company has received approximately $245,000 in
prepayments from third party investors for their share of the projects outlined
above.
As of the date of March 14, 1997, the Emigh #34-1 and the Grey Wolf #1 wells
have been completed as producing gas wells. The Company discontinued seismic
work on the Brandt 16X-27 well and refunded approximately $46,500 to investors.
There were no unexpended funds due investors or to be spent on the above
projects at the time of this filing.
The Company has an employment agreement with its President which provides for
compensation of $125,000 per year to be paid, reimbursement of expenses, health
insurance, and other benefits, including a split dollar life insurance plan. The
agreement provides for a two year term which is automatically renewable for two
additional two year terms (through November 8, 1999) at the president's option.
The Company is only entitled to terminate this agreement upon the president's
death, disability, or for "cause" (as defined in the agreement).
9
<PAGE>
Note 4 - Commitments and Contingencies (Continued)
The president may terminate the agreement if his duties for the Company change
substantially from those he is currently performing, or in the event there is a
"change of control" in the Company as defined in the agreement. If the president
terminates the agreement for either of the foregoing reasons, the Company will
be obligated to pay the president severance pay in an amount equal to the
remaining amount due under the agreement, but not less than two years' salary.
This payment must be made in a lump sum to the president within thirty days of
his termination of the agreement.
The Company entered into an employment agreement with Robert Cohan on April 16,
1995, which provides for the payment of $75,000 for the first year of
employment, plus reimbursement of expenses, including health insurance and the
payments on a truck. The Company wishes to employ Mr. Cohan for an additional 12
months and Mr. Cohan wishes to continue his employment with the Company. The
renewal employment agreement is effective April 16, 1996 to April 15, 1997 at
the rate of $80,000 per year.
The Company has recently drilled and completed the Emigh #34-1 well located in
the Denverton Creek Field, Solano County, California. The Emigh #34-1 was
drilled to a total depth of 10,200' and extended the previously defined
productive limits of the field in a northeasterly direction. The Company
perforated a six foot interval in the Bunker formation. The well commenced
production November 13, 1996 and has produced 243,318 MMBTU of gas (an average
rate of 3042 MMBTU per day), 744 barrels of condensate, and 588 barrels of
formation water through January 31, 1997. Gas sales by month is as follows:
November, 1996 - 59,467 MMBTU (17 days); December, 1996 - 97,956 MMBTU; and
January, 1997 - 85,895 MMBTU. Gas prices in January, 1997, were at record levels
of $4.245 per MMBTU (gas being produced has a BTU content of 1055).
Based on log analysis and mud log shows, it appears that approximately 70 feet
to 100 feet of additional pay may exist behind-pipe in the Bunker, McCormick,
H&T, and 1st Starkey Sands. These zones will be tested in the future. The
Company has approximately 1,280 gross acres under lease in the immediate
vicinity and may drill a follow-up well in the spring of 1997.
Gross revenues produced by this well were $889,600 ($88,960 net to the Company)
through January 31, 1997. At payout (anticipated to be prior to March 1, 1997),
the Company will back-in for an additional 11.55% working and 7.19% net revenue
interest, or a total working interest of 23.55% and 17.19% net revenue interest.
The Company has staked 219 uranium claims in the Powder River basin of Wyoming.
The Company owns 75% interest in these claims and R. V. Bailey, president of the
Company, owns 25%.
10
<PAGE>
Note 4 - Commitments and Contingencies (Continued)
The Company has formed a subsidiary, ISL Resources Corporation, a Wyoming
corporation, in order to carry on uranium activities in certain situations.
Management of the Company believes that the in situ leaching of uranium,
commonly referred to as ISL, is the best possible way to license and commence
production of uranium under the present environmental climate. Discussions for
providing financing for ISL Resources have been held with certain parties, but
there is no assurance that funding will be provided. The Company intends to
pursue funding for ISL Resources in the future. There is no assurance such
funding will take place.
The Company filed suit in 1993 against Newmont Exploration Ltd. of Denver for
alleged breaches of contract related to a lode gold project near Nome, Alaska.
In 1996 attorneys representing Newmont filed a motion for summary judgment with
the court in Barrow, Alaska, which the Company's attorneys have opposed. A
decision on the motion is expected some time in 1997. A tentative trial date of
January, 1998 has been set.
Item 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS
NOTE: Company's financial statements at June 30, 1996 are not audited.
- -----------------------------------------------------------------------
Liquidity and Capital Resources
- -------------------------------
December 31, 1996 as compared to December 31, 1995
- --------------------------------------------------
Because of a shortage of operating funds, Registrant has postponed the
preparation of audited financial statements. The financial statements contained
herein for the fiscal year ended June 30, 1996 are unaudited. Field work for the
audit has been completed and Registrant expects to complete the audit prior to
April 1, 1997. Registrant has sustained substantial operating losses in recent
years. In addition, Registrant has used substantial amounts of working capital
in its operations. Current liabilities exceed current assets by $98,877, and
Registrant has a working capital deficit.
In view of this deficit, realization of a major portion of the assets in the
accompanying balance sheet is dependent upon continued operations of Registrant,
which in turn is dependent upon Registrant's ability to meet its financing
requirements, and the success of future operations. Management believes that
actions presently being taken to revise Registrant's operations and financial
requirements provide the opportunity for Registrant to continue as a going
concern.
From December 31, 1995 to December 31, 1996, Registrant's working capital
(current assets less current liabilities) decreased by $543,603. The decrease in
working capital is primarily attributable to a decrease of over $862,000 in the
amount of cash and precious metals (primarily gold) held in inventory by
Registrant. The decrease in precious metals inventory is due to a decrease of
in- kind production received by Registrant. Registrant received approximately
748 ounces of raw gold for the six-month period ended December 31, 1995 as
compared to -0- ounces of raw gold for the six-month period ended December 31,
1996. Cambior, the operator of the Valdez Creek mining property, has ceased
mining operations effective June 30, 1995. Gold processing, however, continued
through September, 1995. The surface area of the mine has been restored by
Cambior, and they have reassigned all their interest in the mining claims to
Registrant. Registrant may explore for mineable lode gold deposits on the Valdez
Creek property if funding can be obtained from outside parties.
11
<PAGE>
The financial information related to the June 30, 1996 Balance Sheet in this
Form 10-Q-SB is unaudited because Registrant is postponing the audit until
additional funds are available to pay for such audit, which is partially
complete.
Due to the cessation of royalties from the Valdez Creek gold mine in Alaska,
Registrant does not have sufficient cash flow to fully carry on all activities
as was done previously. Management made a decision to enter into uranium
exploration and promotion by acquiring certain uranium properties in calendar
1995 and 1996. However, Registrant has been unsuccessful thus far in finding a
joint venture partner for the uranium ventures and this has caused a shortage of
operating funds. In order to provide interim financing, Registrant has, in
November, 1996, withdrawn $125,000 and $25,000 in February, 1997 against a split
dollar insurance plan (total value of the plan assets was approximately
$200,000). Registrant has also sold its non-California oil and gas production
for $100,000 cash to its consulting accountant, officer and shareholder. Certain
management of Registrant has also elected to go on a deferred compensation plan,
whereby portions of salaries are not paid and are postponed to a future time
when Registrant may be able to pay such deferred salaries. At December 31, 1996
Registrant owed approximately $37,000 to officers of Registrant as deferred
compensation.
Although Registrant is looking forward to increased revenues from California oil
and gas production in the future, current income from California oil and gas
production is inadequate to fund the monthly general and administrative costs of
Registrant and there is no other current source of income.
Registrant is undertaking steps in order to derive revenues from the uranium
properties at the earliest time. Registrant will also take such steps as
feasible in order to keep costs for uranium-related activities to a minimum.
However, certain costs cannot be avoided. Approximately $29,000 ($135 per claim)
was paid to the U. S. Bureau of Land Management on November 25, 1996, to record
claims within the uranium project in the Powder River basin, Wyoming. Holding
costs for mining claims are $100 per claim annually.
Registrant has formed a wholly-owned subsidiary in 1996, ISL Resources
Corporation, a Wyoming corporation, in order to carry on certain uranium
activities. Management of Registrant believes that the in situ leaching of
uranium, commonly referred to as ISL, is the best possible way to license and
commence production of uranium under the present environmental climate.
Discussions for providing financing for ISL Resources have been held with
certain parties, but there is no assurance that funding will be provided.
Registrant intends to pursue funding for ISL Resources in the future. Such
funding may include a private placement of stock and the possible sale of stock
on a Canadian market. There is no assurance such placement or sale will take
place.
12
<PAGE>
Without additional funding from outside sources, Registrant may be unable to
continue to operate at the current level, even though Registrant has only three
full time employees.
Results of Operations
- ---------------------
For the six months ended December 31, 1996 Registrant's operations continued to
be focused on the production of oil and gas, and the investigation for possible
acquisition of producing oil and gas properties and properties prospective for
precious metals production. In addition, Registrant received in-kind gold
royalties from its Valdez Creek until September, 1995.
Registrant had no precious metals revenues for the six-month period ended
December 31, 1996 compared to $236,825 in revenues for the six-month period
ended December 31, 1995. This decrease in precious metals revenue was due to a
cessation of mining activities effective June 30, 1995, although Registrant
continued to receive in-kind gold royalties through September 30, 1995.
Oil and gas revenues, which includes income from management fees, for the six
months ended December 31, 1996 decreased by 16% ($31,840) when compared to the
same period in the prior year. Such decrease was due to the sale of Registrant's
remaining proved producing oil and gas reserves in Montana and North Dakota.
Oil and gas production expenses increased by about 18% ($3,741) when compared to
the prior year. The increase in overall production expenses for the current
period, as compared to the prior year, is attributable to Registrant's interest
in certain properties acquired in November, 1995, in California which are
working interests, and the sale of non-California properties which were
primarily royalty interests which incurred no operating costs.
Depletion, depreciation and amortization increased $16,559 (51%) from $32,479 at
December 31, 1995 to $49,038 at December 31, 1996. This increase in depletion,
depreciation and amortization was also largely due to the acquisition of new,
shorter lived producing properties in California in November, 1995.
During January, 1995, the Registrant received notice from the State of Alaska
Department of Revenue for unpaid License Tax on Royalties from Mines and Mining
for the years 1991 through 1993. Registrant contested these License Taxes and
believed it to be exempt from these taxes. Pending the outcome of the
Registrant's petition seeking relief from these taxes, Registrant recorded a
liability of $45,000 at June 30, 1995 for the estimated amount of taxes due. On
October 30, 1995 the Alaska Department of Revenue notified Registrant that it
had accepted its petition for relief and no taxes were due through September 30,
1995. Accordingly, Registrant reversed its recorded liability to the State of
Alaska and recorded income in the amount of $45,000 for the Alaska Mining
License Tax exemption at September 30, 1996.
13
<PAGE>
Selling, general and administrative expenses increased by $84,048 (30%) from
$275,823 at December 31, 1995 to $359,871 for the six months ended December 31,
1996, reflecting increased costs incurred in pursuing the Anvil Gold-Newmont
litigation.
As a result of Registrant's operations for the six months ended December 31,
1996, Registrant ended the six-month period with a net loss of ($268,751)
compared to net income of $116,808 for the previous six-month period. This
decrease reflected both decreased revenues and increased expenses for the six-
month period as compared to the prior year. The largest decline, $243,818, was
in mineral income due to the cessation of operations at the Valdez Creek Mine on
June 30, 1995.
Pursuant to the requirements of the Securities Exchange Act of 1934, Registrant
has duly caused this report to be signed on its behalf by the undersigned
thereunto duly authorized.
ASPEN EXPLORATION CORPORATION
(Registrant)
/s/ R. V. Bailey
---------------------------------------
By: R. V. Bailey,
March 14, 1997 Chief Executive Officer,
Principal Financial Officer
14
<TABLE> <S> <C>
<ARTICLE> 5
<S> <C> <C>
<PERIOD-TYPE> 6-MOS 12-MOS
<FISCAL-YEAR-END> JUN-30-1997 JUN-30-1996
<PERIOD-END> DEC-31-1996 JUN-30-1996
<CASH> 43,657 102,223
<SECURITIES> 7,934<F1> 4,923
<RECEIVABLES> 56,946 61,245
<ALLOWANCES> 0 0
<INVENTORY> 18,824<F2> 221,866
<CURRENT-ASSETS> 127,361 390,257
<PP&E> 1,435,236 1,495,134
<DEPRECIATION> 1,014,369 968,315
<TOTAL-ASSETS> 934,107 1,196,849
<CURRENT-LIABILITIES> 226,238 345,229
<BONDS> 125,000<F5> 0
5,651,388<F3> 5,651,388
(46,754)<F6> (46,754)
<COMMON> 22,124 22,124
<OTHER-SE> (5,043,889)<F4> (4,775,138)
<TOTAL-LIABILITY-AND-EQUITY> 934,107 1,196,849
<SALES> 166,208 441,866
<TOTAL-REVENUES> 174,786 492,311
<CGS> 24,626 20,885
<TOTAL-COSTS> 443,537 375,503
<OTHER-EXPENSES> 0 0
<LOSS-PROVISION> 0 0
<INTEREST-EXPENSE> 0 0
<INCOME-PRETAX> (268,751) 116,808
<INCOME-TAX> 0 0
<INCOME-CONTINUING> 0 0
<DISCONTINUED> 0 0
<EXTRAORDINARY> 0 0
<CHANGES> 0 0
<NET-INCOME> (268,751) 116,808
<EPS-PRIMARY> (.06) .03
<EPS-DILUTED> (.06) .03
<FN>
<F1>Precious Metals
<F2>Prepaid Expense
<F5>Notes Payable
<F3>Capital in Excess of Par
<F6>Treasury Stock
<F4>Retained Earnings
</FN>
</TABLE>
