FORM 10-Q-SB
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 December 31, 1999
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 0-9494
ASPEN EXPLORATION CORPORATION
(Exact Name of Aspen as Specified in its Charter)
Delaware 84-0811316
-------- ----------
(State or other jurisdiction of (IRS Employer
incorporation or organization) I.D. Number)
Suite 208, 2050 S. Oneida St., Denver, Colorado, 80224
------------------------------------------------------
(Address of Principal Executive Offices) (Zip Code)
(303) 639-9860
Indicate by check mark whether Aspen (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 Aspen was required to file
such reports), and (2) has been subject to such filing requirements for the past
90 days.
Yes [ ] No [ X ]
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 January 31, 2000
- ----------------- -------------------------------
Common stock,
$.005 par value 5,191,322
1
<PAGE>
Part One. FINANCIAL INFORMATION
Item 1. Financial Statements
ASPEN EXPLORATION CORPORATION AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
ASSETS
December 31, June 30,
1999 1999
------------ ----------
(Unaudited) (Audited)
Current Assets:
Cash and cash equivalents, including ....... $ 1,122,348 $ 335,603
$377,039 and $296,294 of invested
cash at December 31, 1999 and June
30, 1999 respectively
Precious metals ............................ 18,823 18,823
Accounts receivable, trade ................. 230,303 108,913
Prepaid expenses ........................... 4,571 9,770
----------- -----------
Total current assets .................... 1,376,045 473,109
----------- -----------
Investment in oil and gas properties,
at cost (full cost method of
accounting) ................................ 2,631,421 2,309,566
Less accumulated depletion and
valuation allowance ...................... (1,423,305) (1,280,305)
----------- -----------
1,208,116 1,029,261
----------- -----------
Property and equipment, at cost:
Furniture, fixtures and vehicles ........... 182,103 178,403
Less accumulated depreciation .............. (144,087) (136,237)
----------- -----------
38,016 42,166
----------- -----------
Cash surrender value, life insurance ......... 239,095 239,095
----------- -----------
TOTAL ASSETS ............................ $ 2,861,272 $ 1,783,631
=========== ===========
(Statement Continues)
See notes to Consolidated Financial Statements
2
<PAGE>
ASPEN EXPLORATION CORPORATION AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS (Continued)
LIABILITIES AND STOCKHOLDERS' EQUITY
December 31, June 30,
1999 1999
------------ -----------
(Unaudited) (Audited)
Current liabilities:
Accounts payable and accrued
expenses ............................... $ 892,272 $ 280,920
Advances from joint owners ............... 342,623 32,245
Notes payable - current .................. 109,987 126,570
----------- -----------
Total current liabilities ................ 1,344,882 439,735
----------- -----------
Notes payable - long term ................ 68,750 81,003
----------- -----------
Stockholders' equity:
Common stock, $.005 par value:
Authorized: 50,000,000 shares
Issued: At December 31, 1999:
5,191,322 and June 30, 1999:
5,191,322 .............................. 25,956 25,956
Capital in excess of par value ........... 5,951,602 5,951,602
Accumulated deficit ...................... (4,501,918) (4,686,665)
Deferred compensation .................... (28,000) (28,000)
----------- -----------
Total stockholders' equity ............... 1,447,640 1,262,893
----------- -----------
Total liabilities and stockholders'
equity ................................... $ 2,861,272 $ 1,783,631
=========== ===========
See Notes to Consolidated Financial 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,
------------------------------- -------------------------------
1999 1998 1999 1998
---- ---- ---- ----
Revenues:
- ---------
<S> <C> <C> <C> <C>
Oil and gas ........................ $ 314,464 $ 332,541 $ 587,738 $ 627,803
Management fees .................... 65,544 56,998 83,110 76,612
Interest and other, net ............ 7,368 8,066 9,453 14,955
---------- ---------- ---------- ----------
Total Revenues ....................... 387,376 397,605 680,301 719,370
---------- ---------- ---------- ----------
Costs and expenses:
- -------------------
Oil & gas production ............... 27,280 18,920 42,134 30,182
Depreciation, depletion
and amortization .................. 90,925 28,000 150,850 56,000
Aspen Power System
expense ........................... 22,585 -0- 43,794 -0-
Selling, general and
administrative .................... 111,992 105,475 251,534 249,303
Interest expense ................... 3,744 11,807 7,242 17,767
---------- ---------- ---------- ----------
Total Costs & Expenses ............... 256,526 164,202 495,554 353,252
---------- ---------- ---------- ----------
NET INCOME ........................... $ 130,850 $ 233,403 $ 184,747 $ 366,118
========== ========== ========== ==========
Basic earnings per common
share .............................. $ .03 $ .05 $ .04 $ .07
========== ========== ========== ==========
Diluted earnings per
common share ....................... $ .03 $ .05 $ .04 $ .07
========== ========== ========== ==========
Basic weighted average
number of common shares
outstanding .......................... 5,191,322 4,916,322 5,191,322 4,916,322
========== ========== ========== ==========
Diluted weighted average
number of common shares
outstanding .......................... 5,311,002 5,098,722 5,311,002 5,098,722
========== ========== ========== ==========
The accompanying notes are an integral part of these statements.
4
<PAGE>
ASPEN EXPLORATION CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED)
Six months ended December 31,
1999 1998
---------- -----------
Cash flows from operating activities:
- -------------------------------------
Net gain ............................................................ $ 184,747 $ 366,118
Adjustments to reconcile net income
to net cash provided (used) by
operating activities:
Depreciation, depletion & amortization ............................ 150,850 56,000
Loss on write off of investments .................................. -- 3,400
Changes in assets and liabilities:
Increase in accounts receivable ................................... (121,390) (332,125)
Decrease in prepaid expense ....................................... 5,199 2,620
Increase in accounts payable and accrued expense .................. 921,730 1,102,884
Decrease in due to related parties ................................ -- (44,792)
----------- -----------
Net cash provided (used) by operating activities .................. 1,141,136 1,154,105
----------- -----------
Cash flows from investing activities:
- -------------------------------------
Conveyance of oil & gas properties for cash ....................... -- 477,950
Development & acquisition of oil & gas properties ................. (321,855) (403,556)
Purchase of office equipment ...................................... (3,700) (3,428)
Sale of mining data ............................................... -- 1,970
----------- -----------
Net cash (used in) provided by investing activities ............... (325,555) 72,936
----------- -----------
Cash flows from financing activities:
- -------------------------------------
Note payable - proceeds ........................................... -- 2,571
Repayment of notes payable ........................................ (28,836) (28,139)
----------- -----------
(28,836) (25,568)
Net increase in cash and cash equivalents ......................... 786,745 1,201,473
Cash and cash equivalents, beginning of year ...................... 335,603 425,306
----------- -----------
Cash and cash equivalents, end of year ............................ $ 1,122,348 $ 1,626,779
=========== ===========
Interest paid ..................................................... $ 7,242 $ 17,767
=========== ===========
Schedule of non cash investing and financing activities:
- --------------------------------------------------------
Notes payable issued for properties ............................... $ -- $ 206,250
Common stock issued for properties ................................ -- 275,000
----------- -----------
$ -- $ 481,250
=========== ===========
The accompanying notes are an integral part of these statements.
5
</TABLE>
<PAGE>
ASPEN EXPLORATION CORPORATION
Notes to Consolidated Financial Statements
(Unaudited)
December 31, 1999
Note 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Nature of Business
------------------
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 uranium and other mineral
properties. The Company's oil and gas properties are located in California.
The Company has two wholly owned subsidiaries, Aspen Gold Mining Company
and Aspen Recursos de Mexico, as well as 85% owned Aspen Power Systems
Corporation ("APS") formed in February 1999. Aspen Gold Mining has staked 6
claims on Valdez Creek in central Alaska. Other than those claims, none of
the subsidiaries have any assets, liabilities or operations. The purpose of
APS will be to attempt to design, construct and possibly operate gas
turbine power plants to generate electrical energy.
Consolidated financial statements
---------------------------------
The consolidated financial statements include the Company and its
wholly-owned subsidiaries, Aspen Gold Mining Company and Aspen Recursos de
Mexico. Significant intercompany accounts and transactions, if any, 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.
Management's Use of Estimates
-----------------------------
The preparation of financial statements in conformity with generally
accepted accounting principles requires management to make certain
estimates and assumptions that affect the reported amounts of assets and
liabilities and the disclosure of contingent liabilities at the date of the
financial statements and reported amounts of revenues and expenses. Actual
results could differ from those estimates.
6
<PAGE>
Note 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
The mining and oil and gas industries are subject, by their nature, to
environmental hazards and cleanup costs for which the Company carries
catastrophe insurance. At this time, management knows of no substantial
costs from environmental accidents or events for which it may be currently
liable. In addition, the Company's oil and gas business makes it vulnerable
to changes in wellhead prices of crude oil and natural gas. Such prices
have been volatile in the past and can be expected to be volatile in the
future. By definition, proved reserves are based on current oil and gas
prices and estimated reserves. Price declines reduce the estimated quantity
of proved reserves and increase annual amortization expense (which is based
on proved reserves).
Impairment of Long-lived Assets
-------------------------------
The Company evaluates the carrying value of assets other than oil and gas
assets for potential impairment on an ongoing basis. The Company evaluates
the carrying value of long-lived assets and long-lived assets to be
disposed of for potential impairment periodically. The Company considers
projected future operating results, cash flows, trends and other
circumstances in making such estimates and evaluations.
Financial Instruments
---------------------
The carrying value of current assets and liabilities reasonably
approximates their fair value due to their short maturity periods. The
carrying value of the Company's debt obligations reasonably approximates
their fair value as the stated interest rate approximates current market
interest rates of debt with similar terms.
New Accounting Pronouncements
-----------------------------
Earnings Per Share
------------------
In February 1997, the Financial Accounting Standards Board issued Financial
Accounting Standard No. 128 ("SFAS No. 128"), addressing earnings per
share. SFAS No. 128 changed the methodology of calculating earnings per
share and renamed the two calculations basic earnings per share and diluted
earnings per share. The calculations differ by eliminating any common stock
equivalents (such as stock options, warrants, and convertible preferred
stock) from basic earnings per share and changes certain calculations when
computing diluted earnings per share. The Company adopted SFAS No. 128 in
fiscal year 1998.
7
<PAGE>
Note 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
The following is a reconciliation of the numerators and denominators used
in the calculations of basic and diluted earnings (loss) per share for the
six months ended December 31, 1999 and 1998:
<TABLE>
<CAPTION>
December 31, December 31,
1999 1998
Per Per
Net Share Net Share
Income Shares Amount Income Shares Amount
------ ------ ------ ------ ------ ------
Basic earnings per share:
Net income and
<S> <C> <C> <C> <C> <C> <C>
share amounts 184,747 5,191,322 .04 366,118 4,916,322 .07
Dilutive securities
stock options 560,000 460,000
Repurchased shares (440,320) (277,600)
-------------------------------------------------------------
Diluted earnings per share:
Net income and assumed
share conversion 184,747 5,311,002 .04 366,118 5,098,722 .07
======= ========= ==== ========= ========= =====
</TABLE>
Precious metals and revenues
----------------------------
Precious metals inventories are valued at the lower of cost (specific
identification method) or market. There was no allowance for unrealized
losses against inventories due to market decline at December 31, 1999.
Oil and gas properties
----------------------
The Company follows the "full-cost" method of accounting for oil and gas
properties. Under this method, all costs associated with property
acquisition, exploration and development activities, including internal
costs that can be directly identified with those activities, are
capitalized within one cost center. No gains or losses are recognized on
the receipt of prospect fees or on the sale or abandonment of oil and gas
properties, unless the disposition of significant reserves is involved.
Depletion and amortization of the full-cost pool is computed using the
units-of-production method based on proved reserves as determined annually
by the Company and independent engineers. An additional depletion provision
in the form of a valuation allowance is made if the costs incurred on oil
and gas properties, or revisions in reserve estimates, cause the total
8
<PAGE>
Note 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
capitalized costs of oil and gas properties in the cost center to exceed
the capitalization ceiling. The capitalization ceiling is the sum of (1)
the present value of future net revenues from estimated production of
proved oil and gas reserves applicable to the cost center plus (2) the
lower of cost or estimated fair value of the cost center's unproved
properties less (3) applicable income tax effects. The valuation allowance
was $281,719 at December 31, 1999 and December 31, 1998.
Property and equipment
----------------------
Depreciation and amortization of property and equipment are expensed in
amounts sufficient to relate the expiring costs of depreciable assets to
operations over estimated service lives, principally using the
straight-line method. Estimated service lives range from three to eight
years. When assets are sold or otherwise disposed of, the cost and
accumulated depreciation are removed from the accounts and any resulting
gain or loss is reflected in operations in the period realized.
Undeveloped mining properties
-----------------------------
The Company capitalizes all costs associated with acquiring, exploring and
developing mineral properties, including certain internal costs which
specifically relate to each mining property area ("cost center").
Capitalized costs are deferred until the area of interest to which they
relate is put into operation, sold, abandoned or impaired. The Company's
pro rata share of advance mineral royalties, bonuses and other cash
payments received by the Company from joint venture or other exploration
participants reduce the amount of a cost center as a recovery of
capitalized costs. The excess of the Company's pro rata share of advance
mineral royalties, bonuses and other cash payments received by the Company
from joint venture or other exploration participants over capitalized costs
in a specific cost center are recognized as revenue in the period received.
Gains or losses on the sale or abandonment of mining properties are charged
to current operations.
Deferred compensation Costs
---------------------------
The Company records stock bonuses to employees as an expense and an
increase to paid-in capital in the year of grant unless the bonus vests
over future years. Bonuses that vest are deferred and expensed ratably over
the vesting period.
9
<PAGE>
Note 2 SEGMENT INFORMATION
The Company operates in three industry segments within the United States:
(1) oil and gas exploration and development, (2) mineral exploration and
development and (3) electrical generation construction.
Identified assets by industry are those assets that are used in the
Company's operations in each industry. Corporate assets are principally
cash, cash surrender value of life insurance, furniture, fixtures and
vehicles.
During the fourth quarter of 1998, the Company adopted Statement of
Financial Accounting Standards No. 131, "Disclosures about Segments of an
Enterprise and Related Information" (SFAS 131). The adoption of SFAS 131
requires the presentation of descriptive information about reportable
segments which is consistent with that made available to the management of
the Company to assess performance.
The oil and gas segment derives its revenues from the sale of oil and gas
and prospect generation and administrative overhead fees charged to
participants in its oil and gas ventures. The mining segment receives its
revenues primarily from the sale of minerals and precious metals and from
time to time from the sale of a mineral venture that it has originated.
Electrical generation construction will receive its revenues from the sale,
design, construction and/or operation of gas turbine or other electrical
generation projects. As of December 31, 1999 the Company was in the
planning stage of this segment and no revenues have been received.
Corporate income is primarily derived from interest income on funds held in
money market accounts.
During the six months ended December 31, 1999 there were no intersegment
revenues. The accounting policies applied by each segment are the same as
those used by the Company in general.
Net sales to one customer of the oil and gas segment totalled approximately
$433,000 of revenues or 76% for the six months ended December 31, 1999.
There have been no differences from the last annual report in the basis of
measuring segment profit or loss. There have been no material changes in
the amount of assets for any operating segment since the last annual report
except for the oil and gas segment which capitalized approximately $322,000
for the development and acquisition of oil and gas property.
10
<PAGE>
Note 2 SEGMENT INFORMATION (CONTINUED)
Segment information consists of the following for the six months ended
December 31, 1999:
<TABLE>
<CAPTION>
Oil and Gas Mining Power Plant Corporate Consolidated
----------- ------ ----------- --------- ------------
Revenues:
<S> <C> <C> <C> <C> <C>
1999 $ 670,848 $ -0- $ -0- $ 9,453 $ 680,301
1998 704,415 -0- -0- 14,955 719,370
Income (loss) from
operations:
1999 $ 477,864 $ -0- $(43,794) $ (249,323) $ 184,747
1998 618,233 -0- -0- (252,115) 366,118
Identifiable assets:
1999 $ 1,438,419 $ 18,823 $ -0- $1,404,030 $ 2,861,272
1998 1,479,744 44,679 -0- 1,912,241 3,436,664
Depreciation, depletion
and valuation charged to
identifiable assets:
1999 $(1,423,305) $ -0- $ -0- $ (144,087) $(1,567,392)
1998 (1,056,902) -0- -0- (126,544) (1,183,446)
Capital expenditures:
1999 $ 321,855 $ -0- $ -0- $ 3,700 $ 325,555
1998 403,556 -0- -0- 3,428 406,984
</TABLE>
Note 3 MINING PROPERTIES
KAYCEE AND SHAMROCK URANIUM PROSPECTS
-------------------------------------
In fiscal 1997, the Company began exploration for in situ uranium deposits
in Wyoming. During the six months ended December 31, 1999 and 1998, the
Company expended $-0- and $4,472, respectively, on the Kaycee and Shamrock
prospects. In addition, during 1998 the Company issued to the President
100,000 shares of the Company's common stock, valued at $14,000, in
exchange for the President's 25% interest in geological data and potential
uranium prospects.
During fiscal 1998, the Company sold the geological data of the Kaycee and
Shamrock prospects to a privately-held Canadian company and, in exchange,
received a $125,000 cash payment and a commitment to receive an additional
$125,000 prior to December 31, 1998. As of January 31, 2000, the Company
has not received the second payment of $125,000 and the privately-held
Canadian company is in default. Discussions are underway to attempt to
resolve this issue. Under the terms of the sales agreement reached in
March, 1998, the Company also received 2 million shares or approximately
25% of the common stock of the privately-held company. To the knowledge of
the Company, at the
11
<PAGE>
Note 3 MINING PROPERTIES (CONTINUED)
time of this filing, the stock had no market value. All capitalized mining
costs have been written off as of June 30, 1999.
Note 4 NOTES PAYABLE
The Company owes the following debt:
December 31, June 30,
1999 1999
--------------------------
Note payable to related party,
monthly principal and interest
payments of $4,269, due September, 2000,
collateralized by working interests in
the Emigh lease $ 36,682 $ 59,487
Note payable to auto dealership, monthly
principal and interest payments of $879,
due July, 2000, collateralized by new
vehicle 4,305 10,336
Note payable to an unaffiliated third
party for the acquisition of producing
gas properties in Tehama and Glenn Counties,
California, interest at 5.475% and
collateralized by working interests in the
Johnsonand Gay Gas Units 137,750 137,750
---------- ----------
178,737 207,573
Less current portion 109,987 126,570
---------- ----------
$ 68,750 $ 81,003
========== ==========
12
<PAGE>
Note 5 COMMITMENTS AND CONTINGENCIES
The Company drilled and completed the Cigar 20-1 located in the Winters gas
field, Solano County, California. The Company's net share of the drilling
and completion costs was approximately $48,200 ($87,000 minus $38,800 in
income for overhead and prospect development fees). The Company owns a
15.0538% working interest before payout and a 21.25378% after payout in the
well.
The Company drilled and completed its Emigh 3-1 well located in the
Denverton Creek gas field. Gas sales commenced in January 2000 at a rate of
5,000 MCF per day of gas and have rapidly declined to approximately 400 MCF
per day with 110 barrels of salt water per day. If this lower Peterson zone
becomes uneconomic, it will be plugged and one of the other several
potential gas zones higher in the wellbore, as indicated by electric logs,
will be perforated. The Company's net share (23.80% working interest) of
the drilling and completion costs was approximately $175,000 ($236,000
minus $61,000 in income for geologic and overhead fees).
The Company participated for a 5.565% working interest in one additional
well, the Daughters of the Dragons 1, located in the Malton Black Butte
Field, Tehama County, California, in December 1999. The Company's net share
of the dry hole costs was approximately $12,000. One of the partners in the
well did not participate in the completion attempt, so the Company
increased its interest in the currently completed interval to 28.5% for an
additional amount of approximately $35,000. Gas sales commenced at the rate
of 500 MCF per day of gas in January 2000.
13
<PAGE>
Item 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS
Liquidity and Capital Resources
- -------------------------------
December 31, 1999 as compared to December 31, 1998
- --------------------------------------------------
From June 30, 1999 to December 31, 1999 Aspen's working capital decreased from
$33,374 to $31,163, a 6.6% decrease. This decrease in working capital is
expected to improve somewhat in the third quarter when Aspen's share of current
drilling activity, which began in October of 1999, will be paid for.
During fiscal 1999, Aspen Exploration Corporation created Aspen Power Systems
Corporation ("APS"), an 85% owned subsidiary. Aspen has dedicated certain cash
resources to investigate the economic possibilities of the sale, design,
construction and/or operation of gas turbines to produce electricity. Aspen has
dedicated a total of approximately $130,000 of financing in order to provide
funding for APS to attempt to commence funding its own operations. Such
dedicated funding came from Aspen's operating funds derived from oil and gas
production. There is no assurance APS will be able to fund its own operations
after the dedicated funding by Aspen is fulfilled. Through December 31, 1999,
APS has expended $127,000 on this project, $43,794 of which was expended in the
six months ended December 31, 1999.
In March 1998, Aspen reached an agreement with a privately-held Canadian company
which provided for Aspen to receive certain cash payments from, and to be issued
2,000,000 shares of stock in, a privately-held Canadian company. Aspen conveyed
to the privately-held company all of Aspen's interest in two uranium projects in
Wyoming. The privately-held Canadian company is in default to Aspen in the
amount of $125,000 which was to be paid prior to December 31, 1998. Discussions
are underway to attempt to resolve this issue.
Aspen believes that it has sufficient funds on hand or that will be generated
from current operations to fund its activities for the next twelve months.
Results of Operations
- ---------------------
December 31, 1999 Compared to December 31, 1998
- -----------------------------------------------
For the six months ended December 31, 1999 Aspen'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 in California.
Oil and gas revenues for the six months ended December 31, 1999 decreased
$40,065, from $627,803 to $587,738, a 6.4% decrease. This decrease reflects the
normal decline in production of mature oil and gas properties and will be offset
somewhat by new production that will come on line in the third quarter.
14
<PAGE>
Oil and gas production expenses increased $11,952 from $30,182 to $42,134 for
the six month period ended December 31, 1999. This increase was due to increased
water production in existing oil wells and the cost of putting a previously
flowing oil well on a pumping unit as well as various other maintenance
projects.
Depletion, depreciation and amortization increased significantly, from $56,000
to $150,850, a 169% increase. This increase reflects the under estimate of
actual depletion expense for the first quarter of 1998 by approximately $80,000
and an increase in the value of the full cost pool on which the depletion rate
is calculated.
Selling, general and administrative expenses increased by $2,231 or 1% from
$249,303 to $251,534. Selling, general and administrative expenses remained
fairly constant when comparing the two periods with no significant change in any
category.
As a result of Aspen's operations for the six months ended December 31, 1999,
Aspen ended the period with net income of $184,747 compared to net income of
$366,118 a year earlier. This decrease of approximately $181,000 reflected a
decrease in total revenues of $39,000 due primarily to a decline in oil and gas
revenues received from mature producing properties. Aspen also incurred $43,800
in operating expenses associated with Aspen Power Systems Corporation. These
costs were primarily for prospect review, financial studies and travel costs.
Depletion expense increased by approximately $94,850 from December 31, 1998.
However, depletion was understated by approximately $80,000 for the first six
months of 1998.
Pursuant to the requirements of the Securities Exchange Act of 1934, Aspen has
duly caused and authorized this report to be signed on its behalf by the
undersigned.
ASPEN EXPLORATION CORPORATION
/s/ R. V. Bailey
--------------------------------------------
By: R. V. Bailey,
January 31, 2000 Chief Executive Officer,
Principal Financial Officer
15
<TABLE> <S> <C>
<ARTICLE> 5
<S> <C> <C>
<PERIOD-TYPE> 3-MOS 12-MOS
<FISCAL-YEAR-END> JUN-30-2000 JUN-30-1999
<PERIOD-END> DEC-31-1999 JUN-30-1999
<CASH> 1,122,348 335,603
<SECURITIES> 0 0
<RECEIVABLES> 230,303 108,913
<ALLOWANCES> 4,571<F2> 9,770
<INVENTORY> 18,823<F1> 18,823
<CURRENT-ASSETS> 1,376,045 473,109
<PP&E> 2,631,421 2,309,566
<DEPRECIATION> (1,423,305) (1,280,305)
<TOTAL-ASSETS> 2,861,272 1,783,631
<CURRENT-LIABILITIES> 1,344,882 439,735
<BONDS> 68,750<F3> 81,003
0 0
(4,501,918)<F4> (4,686,665)
<COMMON> 5,977,558 5,977,558
<OTHER-SE> (28,000)<F5> (28,000)
<TOTAL-LIABILITY-AND-EQUITY> 2,861,272 1,783,631
<SALES> 587,738 627,803
<TOTAL-REVENUES> 680,301 719,370
<CGS> 42,134 30,182
<TOTAL-COSTS> 495,554 353,252
<OTHER-EXPENSES> 0 0
<LOSS-PROVISION> 0 0
<INTEREST-EXPENSE> 7,242 17,767
<INCOME-PRETAX> 0 0
<INCOME-TAX> 0 0
<INCOME-CONTINUING> 0 0
<DISCONTINUED> 0 0
<EXTRAORDINARY> 0 0
<CHANGES> 0 0
<NET-INCOME> 184,747 366,118
<EPS-BASIC> .04 .07
<EPS-DILUTED> .04 .07
<FN>
<F2>Prepaid Expense
<F1>Precious Metal
<F3>Notes Payable - Long Term
<F4>Accumulated Deficit
<F5>Deferred Compensation
</FN>
</TABLE>
