FORM 10Q
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 September 30, 1995
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: 0-610
EQUITY OIL COMPANY
(Exact name of registrant as specified in its charter)
COLORADO 87-0129795
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
Suite 806, #10 West Third South, Salt Lake City, Utah 84101
(Address of principal executive offices)
(Zip Code)
(801) 521-3515
Registrant's telephone number, including area code
(Former name, former address and former fiscal year,
if changed since last report)
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
APPLICABLE ONLY TO ISSUERS INVOLVED IN BANKRUPTCY
PROCEEDINGS DURING THE PRECEDING FIVE YEARS:
Indicate by check mark whether the registrant has filed all
documents and reports required to be filed by Sections 12, 13 or
15(d) of the Securities Exchange Act of 1934 subsequent to the
distribution of securities under a plan confirmed by a court.
Yes No
APPLICABLE ONLY TO CORPORATE ISSUERS:
Indicate the number of shares outstanding of each of the
issuer's classes of common stock, as of the latest practicable
date: 12,692,100
<PAGE>
ITEM I: Financial Statements
EQUITY OIL COMPANY
Statements of Operations
For the Nine Months Ended September 30, 1995 and 1994
(Unaudited)
1995 1994
------------ --------
REVENUES
Oil and gas sales $ 9,115,940 $8,576,173
Partnership income 225,000 226,100
Interest income 178,524 179,527
Other 409,131 112,590
--------- ---------
9,928,595 9,094,390
EXPENSES
Operating costs 3,525,883 3,550,374
Depreciation, depletion and
amortization 3,100,000 3,575,000
Leasehold abandonments 35,500 60,455
Impairment of
oil and gas properties 2,274,057 -
3-D seismic 237,604 -
Exploration 1,055,118 1,110,112
General and administrative 1,404,880 1,159,931
Interest 66,378 65,551
--------- ---------
11,699,420 9,521,423
Income (loss) before income taxes (1,770,825) (427,033)
Provision (benefit) for income taxes (684,178) (340,429)
NET INCOME (LOSS) $(1,086,647) $ (86,604)
========== ==========
Net income (loss) per common share $(0.09) $(0.01)
========== ==========
Cash dividends declared per share $.00 $.00
Weighted average shares outstanding 12,563,014 12,535,090
The accompanying notes are an integral part of these statements.
<PAGE>
EQUITY OIL COMPANY
Statements of Operations
For the Three Months Ended September 30, 1995 and 1994
(Unaudited)
1995 1994
----------- --------
REVENUES
Oil and gas sales $2,987,833 $3,021,350
Partnership income 75,000 75,000
Interest income 53,306 49,870
Other 101,266 92,033
--------- ---------
3,217,405 3,238,253
EXPENSES
Operating costs 1,165,315 1,197,546
Depreciation, depletion and
amortization 850,000 1,375,000
Leasehold abandonments 10,000 36,895
Impairment of
oil and gas properties 2,274,057 -
Exploration 357,560 342,494
General and administrative 422,618 317,410
Interest expense 36,833 22,141
--------- ---------
5,116,383 3,391,486
Income (loss) before income taxes (1,898,978) (53,233)
Provision (benefit) for income taxes (640,121) (179,374)
NET INCOME (LOSS) $(1,258,857) $ 126,141
========== =========
Net income (loss) per common share $(0.10) $ 0.01
========== =========
Cash dividends declared per share $.00 $.00
Weighted average shares outstanding 12,617,872 12,531,883
The accompanying notes are an integral part of these statements.
<PAGE>
EQUITY OIL COMPANY
Balance Sheets
as of September 30, 1995 and December 31, 1994
(Unaudited)
September 30, December 31,
ASSETS 1995 1994
------------ -------
Current assets:
Cash and cash equivalents $ 154,399 $ 363,342
Temporary cash investments 1,492,873 2,466,728
Accounts and advances receivable 3,308,928 3,434,955
Income taxes receivable 231,262 293,440
Deferred income taxes 48,281 48,281
Other current assets 393,791 389,613
---------- ----------
5,629,534 6,996,359
Property and equipment 97,886,166 95,048,505
Less accumulated depletion,
depreciation and amortization 57,336,588 54,236,588
40,549,578 40,811,917
Other assets:
Investment in and note receivable
from Symskaya Exploration 5,408,172 3,415,123
Investment in Raven Ridge
Pipeline Partnership 565,191 684,937
Other assets 200,040 -
--------- ----------
6,173,403 4,100,060
TOTAL ASSETS $52,352,515 $51,908,336
========== ==========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 1,021,234 $ 1,156,611
Accrued liabilities 15,957 151,948
Accrued profit sharing 130,600 157,073
Income taxes payable 190,699 50,931
Deferred lease rental revenue - 178,553
Current portion - note payable - 460,000
--------- ---------
1,358,490 2,155,116
Note payable - 460,000
Revolving credit facility 3,524,820 -
Deferred income taxes 8,788,164 10,088,189
---------- ----------
12,312,984 10,548,189
Stockholders' equity
Common stock 12,593,631 12,593,631
Paid in capital 3,385,239 2,934,792
Retained earnings 22,702,171 23,788,818
Less cost of treasury stock - (112,210)
---------- ----------
38,681,041 39,205,031
TOTAL LIABILITIES AND
STOCKHOLDERS' EQUITY $52,352,515 $51,908,336
========== ==========
The accompanying notes are an integral part of these statements.
<PAGE>
EQUITY OIL COMPANY
Statements of Cash Flows
For the Nine Months Ended September 30, 1995 and 1994
(Unaudited)
1995 1994
----------- --------
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss $(1,086,647) $ (86,604)
Adjustments
Depreciation, depletion and
amortization 3,100,000 3,575,000
Impairment of
oil and gas properties 2,274,057 -
Partnership distributions in
excess of income 119,746 110,587
Property dispositions 35,500 71,381
Decrease in deferred income taxes (1,300,025) (341,769)
Change in other assets 10,528 -
Increase (decrease) from changes in:
Accounts and advances receivable 126,027 (90,133)
Other current assets (4,178) 24,273
Deferred lease revenue (178,553) -
Accrued profit sharing (26,473) -
Accounts payable and accrued
liabilities (271,368) 56,562
Income taxes receivable/payable 201,946 (215,296)
Net cash provided
by operating activities 3,000,560 3,104,001
--------- ---------
CASH FLOWS FROM INVESTING ACTIVITIES:
Advances to Symskaya Exploration (1,993,049) (1,321,589)
Proceeds from sale of property - 62,746
Sale of temporary cash investments 973,855 -
Capital expenditures (5,147,218) (3,012,908)
---------- ----------
Net cash used in
investing activities (6,166,412) (4,271,751)
--------- ---------
CASH FLOWS FROM FINANCING ACTIVITIES:
Payment of note payable (920,000) (345,000)
Purchase of treasury stock (51,181) (26,686)
Increase in other assets (210,568) -
Revolving credit facility 3,524,820 -
Proceeds from exercise of
incentive stock options 613,838 -
--------- ---------
Net cash provided by (used in)
financing activities 2,956,909 (371,686)
--------- ---------
NET INCREASE (DECREASE) IN CASH (208,943) (1,539,436)
CASH AND CASH EQUIVALENTS
AT BEGINNING OF PERIOD 363,342 5,194,013
---------- ----------
CASH AND CASH EQUIVALENTS
AT END OF PERIOD $ 154,399 $ 3,654,577
========== ==========
CASH, CASH EQUIVALENTS AND
TEMPORARY CASH INVESTMENTS
AT END OF PERIOD $ 1,647,272 $ 4,047,034
========== ==========
Supplemental disclosures of cash flow information: Cash paid during the period
for:
Income Taxes $ 298,093 $ 21,000
Interest $ 66,378 $ 65,551
The accompanying notes are an integral part of these statements.
<PAGE>
NOTES TO FINANCIAL STATEMENTS
Note 1. Interim Financial Statements
The accompanying financial statements of Equity Oil Company (the Company) have
not been audited by independent accountants, except for the Balance Sheet at
December 31, 1994. In the opinion of the Company's management, the financial
statements reflect the adjustments, all of which are of a normal and recurring
nature, necessary to present fairly the financial position of the Company as of
September 30, 1995, and the results of its operations for the three and nine
month periods ended September 30, 1995 and 1994, and its cash flows for the nine
month periods ended September 30, 1995 and 1994.
The financial statements and the accompanying notes to financial statements have
been prepared according to rules and regulations of the Securities and Exchange
Commission. Accordingly, certain notes and other information have been condensed
or omitted from the interim financial statements presented in this Quarterly
Report on Form 10-Q. These financial statements should be read in conjunction
with the Company's 1994 Annual Report on Form 10-K, and the Company's Form
10-Q's for the first and second quarters of 1995.
The results for the three and nine month periods ended September 30, 1995 are
not necessarily indicative of future results.
Note 2. Net Income (Loss) Per Share
Net income (loss) per share is based on the weighted average number of common
shares outstanding during the period. Primary and fully diluted earnings per
share are essentially the same.
Note 3. Reclassifications
Certain balances in the September 30, 1994 financial statements have been
reclassified to conform with the current year presentation. These changes had no
effect on previously reported net income (loss) or cash flows.
Note 4. Revolving Credit Facility
In March of 1995, the Company obtained a $20 million borrowing base credit
facility, with an initial commitment of $10 million. The facility calls for
interest payments only, at the lower of prime or LIBOR plus 2%, for 2 years, at
which time it converts to a 3 year term note. Credit facility fees, which are
reflected as other assets in the accompanying Balance Sheet, will be amortized
on a straight line basis over 60 months.
<PAGE>
Note 5. Adoption of SFAS #121
Included in the Statement of Operations for the three and nine month periods
ended September 30, 1995 is a non-cash charge for the impairment of oil and gas
properties in the amount of $2,274,057 ($1,433,338 after tax), which results
from the Company's adoption of SFAS #121, Accounting for the Impairment of Long
Lived Assets, effective July 1, 1995. SFAS #121 requires successful efforts
companies to evaluate the recoverability of the carrying costs of their oil and
gas assets at a field level, rather than on a company-wide level as before. The
SFAS #121 test compares the expected undiscounted future net revenues from each
producing field with the carrying costs on the books of the Company at the end
of each period. When the carrying costs exceed the undiscounted future net
revenues, the costs are written down to fair value which is determined using
discounted future net revenues from the producing field.
<PAGE>
PART I
ITEM 2
Management's Discussion and Analysis of Financial Condition and
Results of Operation
RESULTS OF OPERATIONS
As discussed in Note 5 to the financial statements, the Company adopted
SFAS #121, Accounting for the Impairment of Long Lived Assets, effective July 1,
1995. The adoption of this new accounting standard resulted in a non-cash charge
in the amount of $2,274,057 ($1,433,338 after taxes). Primarily as a result of
this charge, the Company recorded a net loss for the first nine months of 1995
in the amount of $(1,086,647), or $(.09) per share, on revenues of $9,928,595.
This compares to a net loss of $(86,604), or ($.01) per share, on revenues of
$9,094,390 for the same period of 1994. The third quarter 1995 net loss was
$(1,258,857), or $(.10) per share, on total revenues of $3,217,405. This
compares to net income during the same quarter in 1994 of $126,141, or $.01 per
share, on total revenues of $3,238,253.
Without this charge, the Company would have reported net income for the
third quarter of $36,930, or $.00 cents per share, and net income for the first
nine months of $209,140, or $.02 cents per share. This is a non-cash financial
statement event only. There has been no decrease in the quantity or expected
future net revenue from the Company's reserves, nor is there any impact on the
Company's cash flows. On a prospective basis, the implementation of the
accounting standard will result in lower future DD&A charges, because the
Company has written off $2.3 million of carrying costs that were associated with
high-cost, marginally economic properties that would have been charged off
through DD&A over the next few years.
Growth Strategy
In February, the Company announced a new growth strategy,
encompassing a balanced approach in four areas. Those areas
included 1) acquisitions, 2) focused exploration drilling, 3)
development drilling and exploitation of existing assets, and 4)
international exploration. The Company continues to make progress
in each area.
*FOCUSED EXPLORATION DRILLING
*DEVELOPMENT DRILLING & EXPLOITATION
*ACQUISITION OF PROVED RESERVES IN NORTH AMERICA
*INTERNATIONAL EXPLORATION IN RUSSIA
FOCUSED EXPLORATION DRILLING
The Company expects to drill a total of 12 exploratory wells during
1995, most of which will occur during the 4th quarter of the year. The scheduled
wells include some of the following:
California: Six tests will be drilled on prospects identified by our
Orion 41.5 square mile 3-D seismic program in Sutter County in the Sacramento
Basin.
<PAGE>
The No. 1-34 Putnam well, drilled on the basis of a 2-D seismic anomaly
in Colusa County in the Sacramento Basin, was spudded on October 4, 1995, and is
waiting on completion as an apparent gas discovery in the Kione and Forbes
formations. Equity has a 30% working interest in the well.
Wyoming: The No. 21 Sage Creek, a 4,000 foot Madison test will be
drilled in the Sage Creek Field, Big Horn County, on acreage acquired earlier in
the year by Equity in the Mountain Oil & Gas acquisition. Equity has a 41%
working interest in the well.
Texas: The No. 1 Bodden, a Wilcox sand re-entry of an abandoned well
will be drilled with Coastline Exploration in Goliad County, Texas. Equity has
a 30% working interest.
If successful, each of these wells could lead to additional development
drilling. In particular, drilling success in the Orion 3-D seismic area could
lead to a significant drilling program in 1996.
DEVELOPMENT DRILLING & EXPLOITATION
During the first nine months of the year, the Company drilled a total
of six successful development wells resulting in four oil wells and two gas
wells. The wells included:
Canada: Four development oil wells were drilled in the Cessford Field
in Alberta, Canada, which added an estimated 147,000 BOE's of new proved
developed reserves at a cost of $3.21 per BOE. Equity now has a 50% working
interest in this property as a result of the purchase of an additional 5%
interest reported below.
The Northstar No. 6-24-12-19 Retlaw was drilled and completed as a gas
well early in the year. The well is currently producing 5 million cubic feet per
day. Successful development drilling and removal of production restrictions from
the provincial regulatory agency has increased production in the Retlaw field
from 2 million cubic feet per day to 10 million cubic feet per day. Equity
maintains a 14% working interest in the field.
Colorado: In the Hells Hole area in Rio Blanco County, Colorado, the
Mitchell Energy No. 1-35-2-104 was completed as a development gas well in Hells
Hole during the third quarter. Equity has a 30% working interest in two
completions in the Hells Hole area that are producing at a combined rate of
2.6 million cubic feet per day.
Wyoming: In the Siberia Ridge field in Sweetwater County, Snyder Oil
Company drilled the No. 16-20-22-94 pursuant to a farmout entered into in 1994.
A second well under the Snyder farmout, the No. 1-32 is expected to be drilled
during the fourth quarter. The No. 22-4 Siberia Ridge development well, in
which Equity has a 50% working interest, was spudded on November 4th. The well
is operated by Marathon Oil Company.
<PAGE>
Texas: The No.1 Kolodziejczak, in Goliad County, was drilled and
completed as a development gas condensate well in the Recklaw formation. Equity
has a 19.5% working interest in the well. The well was placed on production
November 7th flowing 900 thousand cubic feet and 7 barrels of condensate per
day.
ACQUISITION OF PROVED RESERVES IN NORTH AMERICA
As reported in our six month report to shareholders, the Company has
made significant progress in its efforts to acquire proved reserves that are
compatible with our geographic and production focus. The 1995 acquisitions are
summarized below:
The purchase of an average 30% working interest in eight fields and
eighty wells from Mountain Oil & Gas of Wyoming and Mountain Oil & Gas of
Montana, for a total purchase price of $2,160,651 added proved developed
reserves of 544,000 barrels of oil and 178 million cubic feet of natural gas,
equivalent to 573,277 BOE's, at a purchase price of $3.77 per BOE. The purchase,
effective July 1, 1995, increases the Company's 1995 production base by
approximately 10%, adding 200 barrels and 153 thousand cubic feet per day to
production. The properties acquired have substantive upside potential in the
form of development drilling, exploration and equipment upgrades.
The purchase of an additional 5% interest in the Cessford field in
Alberta, Canada, effective May 1, 1995, added 72,000 barrels of oil and 127.5
million cubic feet of natural gas of proved developed reserves, equivalent to
93,000 BOE for a price of $411,735 or $4.42 per BOE.
INTERNATIONAL EXPLORATION IN RUSSIA
Equity's most ambitious exploration project, the drilling of the Lemok
No. 1 exploratory well by Symskaya Exploration, Inc. on its 1.1 million acre
License area in eastern Siberia, is continuing. Although recent drilling
problems related to deviation control of the borehole have slowed the drilling
process, evaluation of the drilling results to date are encouraging.
As reported previously, oil shows were encountered in the well between
6,890 and 6,985 feet in a dolomite section of probable Cambrian age. The cores
taken in this interval, and the western logs run from 2,460 to 8,793 feet, the
point at which intermediate casing has been set, continue to be evaluated.
Evaluation of log and sample data to date indicates that, in addition to the
zone previously reported, at least two other zones between 7,760 and 8,793 feet
may be potentially productive. The core and log data is inferential only, and
the extent and productivity of any of the zones must await testing, following
the completion of drilling in the well. The drilling in the well has continued
to encounter periodic hydrocarbon shows in the drill cuttings below the
intermediate casing depth of 8,793 feet. All shows are in dolomites of probable
Cambrian age. The well is currently drilling at 9,728 feet in a controlled
drilling mode in an effort to alleviate bore hole deviation problems. It is now
unlikely that the well will reach total estimated depth of 14,500 feet prior to
year end.
Symskaya Exploration, Inc. is 50% owned by Equity and 50% by
Leucadia National Corporation, and operates in Russia through its Branch under
the terms of a Combined License, giving it exploration, development and
production rights on 1.1 million acres, for a primary term of 25 years.
<PAGE>
CAPITAL RESOURCES AND LIQUIDITY
Cash, cash equivalents, and temporary cash investments totaled
$1,647,272 as of September 30, 1995, a decrease of $1,182,798 since year-end
1994. Working capital at September 30, 1995 was $4,271,044, down 12% from
$4,841,243 at December 31, 1994.
Cash provided by operating activities was $3,000,560 in the first nine
months of 1995, 3% lower than the same period of 1994. The Company's ratio of
current assets to current liabilities improved from 3.25 to 1 at December 31,
1994 to 4.14 to 1 at September 30, 1995.
Investment in property and equipment for the first nine months of 1995,
including advances to Symskaya Exploration and proved property acquisitions,
totaled $7,140,267, a 65% increase from the amount recorded during the
corresponding nine months of 1994. Approximately $2,000,000 was advanced to
Symskaya during the first nine months of 1995, compared to approximately
$1,300,000 during the same period of 1994. The increased level of advances
reflects the commencement of the drilling phase of the project. The Company
expects that advances to Symskaya will continue at their current levels for the
balance of 1995. The higher level of capital expenditures reflects both
increased acquisition and development activities. A portion of the 1995
investment in property and equipment was funded by the sale of $973,855 of
temporary cash investments.
In 1995, the Company used proceeds from its revolving credit facility
to retire its previously outstanding note payable, as well as to make the proved
property acquisitions discussed earlier. Through September 30, 1995, the Company
has spent a total of $2,572,386 on acquisitions. In 1994, the Company made the
scheduled principal payments on this note payable.
The Company believes that existing cash balances, cash flow from
operating activities, and the approximate $6.5 million of borrowing capacity
under the revolving credit facility will provide adequate resources to meet its
remaining 1995 capital, exploration, and acquisition spending objectives.
COMPARISON OF THIRD QUARTER 1995 WITH THIRD QUARTER 1994
Oil and gas sales dropped 1% in the third quarter of 1995 to $2,987,833
versus $3,021,350 in the same quarter of last year. Decreases in oil revenues
were largely offset by increases in gas revenues. Total revenues decreased 2%
from 1994 to 1995.
Oil production dropped from 161,000 barrels in 1994 to 154,000 barrels
in 1995. Gas production increased from 303 Mmcf in 1994 to 353 Mmcf in 1995.
Production on an equivalent barrel basis for the quarter increased slightly,
with 1995 production of 212 MBOE compared to 211 MBOE in 1994.
<PAGE>
Posted prices for Western Colorado crude oil, which accounts for 61% of
the Company's total oil production, decreased 3% during the third quarter of
1995, averaging $18.01 per barrel, compared to $18.58 during the third quarter
of 1994. This decrease was partially offset by an additional $.40 per barrel
premium negotiated for crude oil sales at the Rangely Weber Sand Unit.
Decreases in operating costs were a function of decreased oil
production. Internal costs associated with property acquisition activities, as
well as increases in personnel expenses, legal fees and investor relations
expenses caused administrative costs to increase during the third quarter of
1995 over 1994.
Depreciation and depletion charges decreased by $575,000 in 1995 over
1994 levels. The majority of the decrease is attributable to the adoption of
SFAS #121 mentioned previously, which resulted in writing off $2.3 million of
costs primarily associated with marginally economic, high-cost wells with high
depletion rates. The adoption of SFAS #121 was effective July 1, 1995. In
addition, during 1994 several producing wells reached their economic limit
during the quarter, causing their remaining net book values to be charged to
expense. There was no similar event in 1995.
The income tax benefit of $(640,121) includes the deferred tax benefits
associated with the property impairment charge discussed earlier. The adoption
of SFAS #121 did not result in any other tax consequences to the Company.
COMPARISON OF FIRST NINE MONTHS OF 1995 WITH FIRST NINE MONTHS OF
1994
Oil and gas sales increased 6% in the first nine months of 1995 to
$9,115,940 versus $8,576,173 in the same period of last year. This increase was
brought about principally by stronger oil prices, which were up 11% on average
from year to year. Oil production for the first nine months was 459,000 barrels,
down slightly from 1994 production of 462,000 barrels. Gas production for the
period increased to 963 Mmcf from 857 Mmcf in 1994.
The average posted price for crude at the Rangely Weber Sand Unit
during the first nine months of 1995 was $18.60 per barrel, compared to $16.87
during the same period of 1994.
Other income includes the recognition in the first quarter of 1995 of
income arising from a lease option agreement that was deferred in 1994, as well
as increased overhead income from operated properties during 1995.
As discussed previously, decreases in operating costs were a function
of decreased oil production. Internal costs associated with property acquisition
activities, as well as increases in personnel expenses, legal fees and investor
relations expenses caused administrative costs to increase during the first nine
months of 1995 over 1994.
<PAGE>
Depreciation and depletion charges decreased by $475,000 in 1995 over
1994 levels. The majority of the decrease is attributable to the adoption of
SFAS #121 mentioned previously, which resulted in writing off $2.3 million of
costs primarily associated with marginally economic, high-cost wells with high
depletion rates. In addition, during 1994 several producing wells reached their
economic limit during the period, causing their remaining net book values to be
charged to expense. There was no similar event in 1995.
The income tax benefit of $(684,178) includes the deferred tax benefits
associated with the property impairment charge discussed earlier.
PART II
OTHER INFORMATION
The answers to items listed under Part II are inapplicable or negative.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934,
the Registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
EQUITY OIL COMPANY
(Registrant)
DATE: November 14, 1995 By /s/ Paul M. Dougan
-------------------------
Paul M. Dougan, President
DATE: November 14, 1995 By /s/ Clay Newton
-------------------------
Clay Newton, Treasurer
<TABLE> <S> <C>
<ARTICLE> 5
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> DEC-31-1995
<PERIOD-START> JAN-01-1995
<PERIOD-END> SEP-30-1995
<CASH> 154,399
<SECURITIES> 0
<RECEIVABLES> 3,308,928
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 5,629,534
<PP&E> 97,886,166
<DEPRECIATION> 57,336,588
<TOTAL-ASSETS> 52,352,515
<CURRENT-LIABILITIES> 1,358,490
<BONDS> 0
<COMMON> 12,593,631
0
0
<OTHER-SE> 0
<TOTAL-LIABILITY-AND-EQUITY> 52,352,515
<SALES> 9,115,940
<TOTAL-REVENUES> 9,928,595
<CGS> 0
<TOTAL-COSTS> 11,699,420
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 66,378
<INCOME-PRETAX> (1,770,825)
<INCOME-TAX> (684,178)
<INCOME-CONTINUING> (1,086,647)
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (1,086,647)
<EPS-PRIMARY> (.09)
<EPS-DILUTED> (.09)
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