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 June 30, 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: 0-610
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: 12,751,100
<PAGE>
ITEM I: Financial Statements
EQUITY OIL COMPANY
Statement of Operations
For the Six Months Ended June 30, 1996 and 1995
(Unaudited)
1996 1995
------------ ------------
REVENUES
Oil and gas sales .................. $ 7,568,678 $ 6,128,107
Partnership income ................. 150,000 150,000
Interest income .................... 70,905 125,218
Other .............................. 123,074 307,865
------------ ------------
7,912,657 6,711,190
EXPENSES
Operating costs .................... 2,621,927 2,360,568
Depreciation, depletion and
amortization ..................... 1,800,000 2,250,000
Leasehold abandonments ............. 15,092 25,500
3-D seismic ........................ 304,097 237,604
Exploration ........................ 926,480 697,558
General and administrative ......... 1,218,972 982,262
Interest ........................... -- 29,545
------------ ------------
6,886,568 6,583,037
Income before income taxes .................. 1,026,089 128,153
Provision (benefit) for income taxes ........ 205,033 (44,057)
NET INCOME .................................. $ 821,056 $ 172,210
============ ============
Net income per common share ................. $ 0.06 $ 0.01
============ ============
Weighted average shares outstanding ......... 12,728,834 12,535,130
The accompanying notes are an integral part of these statements.
<PAGE>
EQUITY OIL COMPANY
Statement of Operations
For the Three Months Ended June 30, 1996 and 1995
(Unaudited)
1996 1995
----------- ----------
REVENUES
Oil and gas sales ................... $ 3,910,332 $ 3,105,505
Partnership income .................. 75,000 75,000
Interest income ..................... 32,156 64,959
Other ............................... 62,497 129,312
----------- -----------
4,079,985 3,374,776
EXPENSES
Operating costs ..................... 1,287,931 1,207,430
Depreciation, depletion and
amortization ...................... 900,000 1,100,000
Leasehold abandonments .............. 5,092 14,300
Exploration ......................... 419,980 388,859
General and administrative .......... 597,963 579,817
Interest ............................ -- 15,539
----------- -----------
3,210,966 3,305,945
Income before income taxes ................... 869,019 68,831
Provision for income taxes ................... 153,670 6,726
----------- -----------
NET INCOME ................................... $ 715,349 $ 62,105
=========== ===========
Net income per common share .................. $ 0.06 $ 0.00
Weighted average shares outstanding .......... 12,741,781 12,529,314
The accompanying notes are an integral part of these statements.
<PAGE>
EQUITY OIL COMPANY
Balance Sheet
as of June 30, 1996, and December 31, 1995
(Unaudited)
June 30, December 31,
ASSETS 1996 1995
- ------ ------------ -------
Current assets:
Cash and cash equivalents $ 1,992,912 $ 511,252
Temporary cash investments 256,923 955,967
Accounts and advances receivable 2,997,546 3,016,067
Income taxes receivable 524,976 502,098
Other current assets 325,436 378,594
---------- ----------
6,097,793 5,363,978
Property and equipment 101,816,817 99,242,754
Less accumulated depletion,
depreciation and amortization 59,319,185 57,549,855
---------- ----------
42,497,632 41,692,899
Other assets:
Investment in and note receivable
from Symskaya Exploration 7,738,171 6,160,442
Investment in Raven Ridge
Pipeline Partnership 468,598 540,220
Other assets 168,454 189,511
--------- ----------
8,375,223 6,890,173
TOTAL ASSETS $56,970,648 $53,947,050
========== ==========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 777,536 $ 1,107,925
Accrued liabilities 327,996 219,144
Accrued profit sharing 96,000 148,771
Income taxes payable 240,072 156,293
Deferred taxes 10,796 10,796
--------- ---------
1,452,400 1,642,929
Revolving credit facility 7,128,830 4,918,830
Deferred income taxes 8,650,081 8,654,698
---------- ----------
15,778,911 13,573,528
Stockholders' equity
Common stock 12,751,100 12,711,100
Paid in capital 3,633,175 3,485,487
Retained earnings 23,355,062 22,534,006
---------- ----------
39,739,337 38,730,593
TOTAL LIABILITIES AND
STOCKHOLDERS' EQUITY $56,970,648 $53,947,050
========== ==========
The accompanying notes are an integral part of these statements.
<PAGE>
EQUITY OIL COMPANY
Statement of Cash Flows
For the Six Months Ended June 30, 1996 and 1995
(Unaudited)
1996 1995
----------- --------
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income (loss) ......................... $ 821,056 $ 172,210
Adjustments
Depreciation, depletion and
amortization .......................... 1,800,000 2,250,000
Partnership distribution in
excess of income ...................... 71,622 80,577
Leasehold abandonments .................. 15,092 25,500
Decrease in deferred income taxes ....... (4,617) (287,658)
Change in other assets .............. 21,057 --
Common stock issued for services .... 103,313 --
Increase (decrease) from changes in:
Accounts and advances receivable ...... 18,521 281,685
Other current assets .................. 53,158 (58,490)
Accounts payable and accrued
liabilities ......................... (221,537) (241,310)
Income taxes receivable/payable ....... 60,901 164,997
Deferred lease rental revenue ..... -- (178,553)
Accrued profit sharing ................ (52,771) (91,373)
Net cash provided ----------- -----------
by operating activities ................. 2,685,795 2,117,585
----------- -----------
CASH FLOWS FROM INVESTING ACTIVITIES:
Advances to Symskaya Exploration .......... (1,577,729) (946,742)
Sale of temporary cash investments ........ 699,044 964,184
Capital expenditures ...................... (2,619,825) (1,840,526)
Net cash used in investing --------- ---------
activities .............................. (3,498,510) (1,823,084)
--------- ---------
CASH FLOWS FROM FINANCING ACTIVITIES:
Payment of note payable ................... -- (920,000)
Purchase of treasury stock ................ -- (51,181)
Increase in other assets .................. -- (182,690)
Exercise of incentive stock option ........ 84,375 --
Borrowings under
revolving credit facility ................ 2,210,000 924,830
Net cash provided by (used in) --------- -----------
financing activities ................... 2,294,375 (229,041)
--------- -----------
NET INCREASE (DECREASE) IN CASH .............. 1,481,660 65,460
CASH AND CASH EQUIVALENTS
AT BEGINNING OF PERIOD .................... 511,252 363,342
----------- -----------
CASH AND CASH EQUIVALENTS
AT END OF PERIOD .......................... $ 1,992,912 $ 428,802
=========== ===========
Supplemental disclosures of cash flow information: Cash paid during the period
for:
Income Taxes $ 270,340 $90,950
Interest $ - $29,545
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 ("Equity" or
"the Company") have not been audited by independent accountants, except for the
Balance Sheet at December 31, 1995. 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 June 30, 1996, and the results of its operations for the three and
six month periods ended June 30, 1996 and 1995, and its cash flows for the six
month periods ended June 30, 1996 and 1995.
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 From 10-Q. These financial statements should be read in
conjunction with the Company's 1995 Annual Report on Form 10-K, and the
Company's Form 10-Q for the first quarter of 1996.
The results for the three and six month periods ended June 30, 1996 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 and common share equivalents outstanding during the period.
Primary and fully diluted earnings per share are essentially the same.
Note 3. Accounting for Stock Based Compensation
The Company adopted SFAS #123, Accounting for Stock Based Compensation,
effective January 1, 1996. The Company has elected to follow the disclosure
method of reporting for its stock based compensation.
Note 4. Subsequent events.
On July 3, 1996, the Company purchased 332,000 barrels of proved developed
oil reserves associated with 14 producing oil wells. The wells and reserves were
acquired for a total purchase price of $1.4 million. The purchase was paid for
with funds borrowed under the Company's credit facility.
<PAGE>
PART I
ITEM 2
Management's Discussion and Analysis of Financial Condition and
Results of Operation
RESULTS OF OPERATIONS
Financial Results
Net income for the first six months of 1996 of was $821,056, or $.06 per
share, compared to net income of $172,210, or $.01 per share during the first
half of 1995. Total revenues of $7,912,657 were 18% higher than total revenues
of $6,711,190 recorded in the first half of 1995.
Second quarter 1996 net income was $715,349, or $.06 per share, compared to
second quarter 1995 net income of $62,105, or $.00 per share. Second quarter
revenues in 1996 of $4,079,985 were 21% higher than the $3,374,776 reported in
the second quarter of 1995.
Domestic Exploration Drilling
Drilling at the Company's Orion 3-D seismic project in the Sacramento Basin
is continuing during 1996, with four additional wells drilled through June 30,
1996. The Company expects to complete all four of the wells as producers. The
two most recent wells, the Erdman #2-27 and the Erdman #1-27, tested at a
combined rate of 10 Million cubic feet per day. Subsequent to their completion,
the Company will have completed seven out of eight wells drilled on the project.
The Company is currently planning to drill an additional five wells on this
survey in 1996. Building on the success of the Orion program, the Company will
participate in four additional 3-D seismic surveys in the Sacramento Basin in
1996 that may result in the drilling of seven additional exploratory wells
during the year.
Equity has just completed shooting of a twenty-five square mile 3-D seismic
survey in Dawson County, Montana, surrounding a well that indicated presence of
a Lodgepole Reef mound. The survey was conducted on a 25,000 acre leasehold.
After evaluation of the survey, the Company will drill an exploratory well on
the block. If the 3-D and drilling is successful in identifying Lodgepole
mounds, several development locations could be drilled. Equity's 15% operating
working interest is carried in the shooting of seismic and drilling and
completion of the first well.
Development Drilling
In 1995, Equity participated in the drilling of eight development wells,
completing four gas and four oil wells, a 100% success ratio. Development
drilling during the year focused on the Cessford field in Alberta, Canada and
the Siberia Ridge field in Sweetwater County, Wyoming.
At the Cessford field, four wells were completed as oil wells, bringing the
total producing wells in this 50% owned property to twenty. The field is
currently producing 400 barrels of oil per day. One additional development well
has been drilled at Cessford this year and is awaiting completion.
At the Siberia Ridge field, the Company participated in the drilling and
completion of three gas wells in 1995. Present plans call for the drilling of
three additional wells in the Siberia Ridge Field in 1996 -- one under a farmout
agreement, and two in which the Company will have a 50% working interest.
The Company has begun to focus additional exploitation efforts on certain
of the properties purchased in 1995. The Sage Creek Unit #21, drilled at the
most significant of those properties, the Sage Creek Field in Big Horn County,
Wyoming, was drilled during the first quarter of 1996, and has been completed as
a producing oil well. Equity has a 46.25% working interest in the well. This
well is significant since the success of its completion has the potential to set
up other infill drilling opportunities in the Sage Creek field.
<PAGE>
Acquisitions
In 1995, the Company's first year as an active acquiror of producing
properties, acquisitions were focused on properties in the Rocky Mountains,
where a total of 761,000 barrels of oil and 1.3 billion feet of natural gas were
purchased for a total purchase price of $3.1 million dollars, or $3.18 per BOE.
The purchases were made using funds from the $20 million borrowing base
revolving credit facility established by the Company in March of 1995.
In 1996, the Company is continuing its acquisition efforts. On July 3,
1996, the Company announced the purchase of 332,000 barrels of proved developed
oil reserves, associated with 14 producing oil wells, located adjacent to the
Rangely Weber Sand Unit, site of the Company's main source of oil production.
The wells and reserves were acquired from two private entities for a total
purchase price of $1.4 million, effective July 1, 1996. The Company will operate
the properties, which produce from the Weber sand, with working interests
approaching 100%. Production from the wells will be approximately 100 barrels
per day, which will increase the Company's daily oil production by approximately
6%. In addition to the proved reserves, the Company's analysis indicates these
properties may have upside potential for the development of additional reserves.
While the Company's first efforts in acquisitions have been quite modest,
each of the properties acquired have upside potential in the form of infill
development drilling, additional exploration, equipment upgrades, and/or
possible waterflooding. In 1996, the Company will continue to focus its
producing property acquisition efforts in the Rocky Mountains.
International Exploration in Russia
The cased-hole drill stem tests of four zones selected for testing by
Symskaya Exploration Inc., Equity's 50% owned subsidiary, in the Lemok No. 1
well, flowed salt water with no oil or gas. The tested zones, ranging in depth
from 6,890 to 8,283 feet are in fractured dolomites of probable Cambrian age.
These Cambrian zones were a secondary target in the well, drilled by Symskaya
Exploration, Inc., on its 1.1 million acre license area in the Krasnoyarsk Krai
in Eastern Siberia. Drilling was terminated at a depth of 14,102 feet due to
mechanical problems prior to reaching the primary target in the Vendian
formation at an estimated depth of 14,500 feet. Total direct drilling costs for
the Lemok #1 incurred by Symskaya through June 30, 1996 were approximately $9.0
million.
The test results are disappointing, since oil shows, cores, logs, and other
data accumulated during the course of drilling evidenced the presence of
hydrocarbons in the intervals that were tested. The lack of producible oil in
the tested intervals does not preclude the possibility that the well was drilled
below the oil/water contact for these formations, and that a well drilled at a
structurally higher location may contain productive hydrocarbons in these same
intervals. In addition, the lack of a positive test in the Cambrian zones, which
were secondary targets in the drilling of the Lemok No. 1, does not alter the
possibility for accumulations of recoverable hydrocarbons in the Vendian or
Riphean formations that were not reached in this well. Detailed analysis of the
pressure, flow data and fluid recovered in the tests is being conducted.
Based upon all of the data accumulated from the Lemok No. 1, the drilling
of a second well is under active consideration, as well as various alternatives
for obtaining outside financing for such a well. The feasibility of making a
future attempt to use the Lemok No. 1 well bore to reach the Vendian formation
is also being examined. In the event that Symskaya abandons the Lemok No. 1,
Equity would be required to record a non-cash charge to earnings equal to its
50% share of the direct drilling costs incurred in this well.
If drilled, a second well would be located approximately five miles east of
the Lemok No. 1, and would target the Vendian formation at a depth of
approximately of 11,000 feet, which would be 3,000 feet structurally higher on
the Ishtyskaya anticline. Correspondingly, the four intervals tested in the
Lemok No. 1 should be encountered at depths ranging from approximately 3,900 to
5,300 feet in a second well, and it is possible that producible hydrocarbons
could be encountered in those zones at the higher structural position.
<PAGE>
CAPITAL RESOURCES AND LIQUIDITY
Cash, cash equivalents, and temporary cash investments totaled $2,249,835
as of June 30, 1996, an increase of $782,616 since year-end 1995. Working
capital at June 30, 1996 was $4,645,393, up 25% from $3,721,049 at December 31,
1995. The Company's ratio of current assets to current liabilities improved from
3.26 to 1 at December 31, 1995 to 4.19 to 1 at June 30, 1996. Cash and cash
equivalents at June 30, 1996 include $1.4 million obtained from the Company's
credit facility for the acquisition discussed in Note 4 above. These funds were
disbursed on July 3, 1996.
Cash provided by operating activities was $2,685,795 in the first six
months of 1996, 27% higher than the same period of 1995. Cash provided by
operating activities was aided in 1996 by the higher net income discussed
earlier.
Investment in property and equipment for the first six months of 1996,
coupled with advances the Company made to Symskaya Exploration, totaled
$4,197,554, a 51% increase from the amount recorded during the corresponding six
months of 1995, reflecting the Company's increased drilling activity both
domestically and abroad. This investment activity in both years was partially
funded by the sale of temporary cash investments. 1996 figures do not include
the $1.4 million acquisition discussed in Note 4 above.
During the first half of 1996, the Company borrowed a total of $2,210,000
under its credit facility to pay for acquisitions and for general corporate
purposes, bringing to $7,128,830 the amount outstanding under the facility. At
June 30, 1996, the Company had approximately $12.9 million of availability on
this credit facility. Effective July 11, 1996, the Company amended the terms of
the facility, extending the commitment period until June 30, 1999, after which
time the note becomes payable in quarterly installments over three years. In
1995, the Company used proceeds from its revolving credit facility to retire its
previously outstanding note payable.
The Company believes that existing cash balances, cash flow, and borrowing
capacity under the revolving credit facility will provide adequate resources to
meet its capital, exploration, and acquisition spending objectives.
COMPARISON OF SECOND QUARTER 1996 WITH SECOND QUARTER 1995
Oil and gas sales increased 26% in the second quarter of 1996 to
$3,910,332, compared to $3,105,505 in the same quarter of last year. This
increase was brought about by a combination of higher oil and gas prices that
prevailed during the second quarter of 1996, as well as increases in both oil
and gas production. The average net price for crude oil at the Rangely Weber
Sand Unit during the quarter was $22.62 per barrel, compared to $20.14 during
the second quarter of 1995, an increase of 12%. Average gas prices received
during the second quarter of 1996 were $1.28 per Mcf, compared to $1.09 per Mcf
during the second quarter of 1995.
Total production increased year-to-year on an equivalent barrel basis. Oil
production increased slightly from 156,000 barrels in the second quarter of 1995
to 158,000 during the same quarter of 1996. Gas production rose sharply from
334,000 Mcf in 1995 to 549,000 Mcf in 1996, an increase of 64%. The production
gains in natural gas reflect the initial successes at the Company's
Orion prospect in California.
During the second quarter of 1995, the Company received $71,000 as its
share of a settlement relating to prior production litigation. There was no
corresponding settlement in 1996.
Slight increases in operating costs, exploration expenses, and general and
administrative expenses were more than offset by decreases in depreciation,
depletion, and amortization (DD&A) charges for the current quarter. The majority
of the decrease in DD&A charges is attributable to the adoption of SFAS #121 in
1995, which removed $2.2 million from the DD&A base that was almost entirely
associated with marginally economic, high-cost wells with high depletion rates.
The adoption of SFAS #121 was effective July 1, 1995. There was no property
impairment charge for the second quarter of 1996.
The Company's tax provisions for the second quarter of 1996 and 1995 are
lower than the statutory rate because of percentage depletion deductions.
<PAGE>
COMPARISON OF FIRST HALF 1996 WITH FIRST HALF 1995
Higher oil and gas prices during the first half of 1996 combined with
increases in both oil and gas production to produce an 18% increase in total
revenues over the same period of 1995. Net prices for crude oil at the Rangely
Weber Sand Unit, which accounts for 64% of the Company's total oil production,
averaged $21.60 during the first half of 1996, an increase of 10% from $19.58
during the same period of 1995. Average gas prices received during the first
half of 1996 were $1.37 per Mcf, compared to $1.18 per Mcf during the first half
of 1995. Oil production of 314,000 barrels was up 3% from 1995 production of
305,000 barrels. Natural gas production increased 62% from 645,000 Mcf in 1995
to 1,045,000 Mcf in 1996, the first time the Company has produced in excess of 1
Billion cubic feet of natural gas in the first half of the year.
The 24% increase in oil and gas sales for the period was slightly offset by
decreases in other income and interest income. Other income in 1995 included the
recognition of income arising from a lease option agreement that was deferred in
1994, as well as the litigation settlement proceeds mentioned previously. There
were no corresponding events in 1996, causing a 60% decline in other income.
Interest income declined due to the reduced amount of funds available for
investment during the first half of 1996.
Total expenses increased 4% over 1995 first half levels. Lease operating
costs increased 11%, primarily as a result of increased production and higher
revenue-based production taxes. Conversely, depreciation, depletion, and
amortization (DD&A) charges decreased 20% during the period. The majority of the
decrease is attributable to the adoption of SFAS #121 in 1995, which removed
$2.2 million from the DD&A base that was almost entirely associated with
marginally economic, high-cost wells with high depletion rates. The adoption of
SFAS #121 was effective July 1, 1995. There was no property impairment charge
for the first half of 1996.
Increases in exploration and general and administrative costs are primarily
due to increased exploratory drilling activity, higher compensation expenses, as
well as increased insurance, legal, and investor relations fees. During the
first half of 1996, the Company participated in the drilling of 8 wells,
compared to 4 during the same time period of 1995. Of the 8 wells drilled this
year, 5 wells have been completed as producers, and 3 wells are currently being
tested.
The Company incurred 3-D seismic charges of $304,000 during the first half
of 1996 compared to $237,000 during the same period of 1995. These charges
represent the Company's continued development of its California exploration
programs.
The Company's tax provisions for the first half of 1996 and 1995 are lower
than the statutory rate because of percentage depletion deductions.
<PAGE>
PART II
OTHER INFORMATION
The answers to items listed under Part II are inapplicable or negative,
except as shown below.
Item 4. Submission of Matters to a Vote of Security Holders.
At the Company's annual meeting, held on May 8, 1996, stockholders were
asked to elect Mr. L.E. Buzarde, Jr., and Mr. P.J. "Jack" Bernhisel to serve
three year terms on the Board of Directors. The following votes were recorded.
Buzarde Bernhisel
Affirmative votes 10,611,952 10,602,432
Withhold authority 79,048 88,568
Each director nominee received at least 99% of the shares voted at the meeting.
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: August 12, 1996 By /s/ Paul M. Dougan
---------------------- -------------------
Paul M. Dougan, President
DATE: August 12, 1996 By /s/ Clay Newton
---------------------- ----------------
Clay Newton, Treasurer
<PAGE>
<TABLE> <S> <C>
<ARTICLE> 5
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-START> JAN-01-1996
<PERIOD-END> JUN-30-1996
<CASH> 1,992,912
<SECURITIES> 0
<RECEIVABLES> 3,522,522
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 6,097,793
<PP&E> 101,816,817
<DEPRECIATION> 59,319,185
<TOTAL-ASSETS> 56,970,648
<CURRENT-LIABILITIES> 1,452,400
<BONDS> 0
0
0
<COMMON> 12,751,100
<OTHER-SE> 0
<TOTAL-LIABILITY-AND-EQUITY> 56,970,648
<SALES> 7,568,678
<TOTAL-REVENUES> 7,912,657
<CGS> 0
<TOTAL-COSTS> 6,886,568
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 1,026,089
<INCOME-TAX> 205,033
<INCOME-CONTINUING> 821,056
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 821,056
<EPS-PRIMARY> .06
<EPS-DILUTED> .06
</TABLE>
