FORM 10Q
UNITED STATES
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, 1998
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: 12,615,440
<PAGE>
ITEM I: Financial Statements
EQUITY OIL COMPANY
Statement of Operations
For the Six Months Ended June 30, 1998 and 1997
(Unaudited)
1998 1997
------------ -------------
REVENUES
Oil and gas sales ............ $ 6,517,271 $ 8,745,718
Partnership income ........... 15,500 150,000
Interest income .............. 40,326 83,518
Other ........................ 101,705 552,157
------------ ------------
6,674,802 9,531,393
EXPENSES
Operating costs .............. 3,030,862 3,038,935
Depreciation, depletion and
amortization ............... 2,450,000 2,200,000
Equity loss in
Symskaya Exploration ....... 319,113 143,837
Leasehold abandonments ....... 164,091 40,952
3D seismic ................... 430,773 --
Exploration .................. 745,882 1,228,047
General and administrative ... 1,097,139 1,108,018
Interest ..................... 569,905 324,172
------------ ------------
8,807,765 8,083,961
Income (loss) before income taxes ..... (2,132,963) 1,447,432
Provision (benefit) for income taxes .. (597,229) 505,847
NET INCOME (LOSS) ..................... $(1,535,734) $ 941,585
============ ============
Basic and diluted net
income (loss) per common share $ (0.12) $ 0.07
============ ============
Weighted average shares outstanding ... 12,612,824 12,704,840
The accompanying notes are an integral part of these statements.
<PAGE>
EQUITY OIL COMPANY
Statement of Operations
For the Three Months Ended June 30, 1998 and 1997
(Unaudited)
1998 1997
----------- ------------
REVENUES
Oil and gas sales ............ $ 3,016,811 $ 3,903,440
Partnership income ........... 7,500 75,000
Interest income .............. 6,297 28,592
Other ........................ 66,749 437,357
------------ ------------
3,097,357 4,444,389
EXPENSES
Operating costs .............. 1,381,932 1,496,167
Depreciation, depletion and
amortization ............... 1,200,000 1,100,000
Equity loss in
Symskaya Exploration ....... 235,615 58,112
Leasehold abandonments ....... 164,091 22,512
3D seismic ................... 21,030 --
Exploration .................. 355,754 589,630
General and administrative ... 658,561 549,201
Interest ..................... 290,371 173,849
------------ ------------
4,307,354 3,989,471
Income (loss) before income taxes ..... (1,209,997) 454,918
Provision (benefit) for income taxes .. (316,269) 293,708
NET INCOME (LOSS) ..................... $ (893,728) $ 161,210
============ ============
Basic and diluted net
income (loss) per common share $ (0.07) $ 0.01
============ ============
Weighted average shares outstanding ... 12,615,440 12,692,693
The accompanying notes are an integral part of these statements.
<PAGE>
EQUITY OIL COMPANY
Balance Sheet
as of June 30, 1998, and December 31, 1997
June 30, December 31,
ASSETS 1998 1997
(Unaudited)
Current assets: ------------ -------------
Cash and cash equivalents .................. $ 18,274 $ 378,801
Accounts and advances receivable ........... 3,221,261 3,641,535
Income taxes receivable .................... 31,093 88,174
Deferred income taxes ...................... 18,934 18,934
Other current assets ....................... 529,766 514,713
------------ -------------
3,819,328 4,642,157
Property and equipment ....................... 115,367,603 113,371,891
Less accumulated depreciation,
depletion and amortization .................. 67,199,254 64,846,514
------------ -------------
48,168,349 48,525,377
Other assets:
Investment in Raven Ridge
Pipeline Partnership ..................... 221,640 268,821
Other assets ............................... 84,227 105,284
------------- -------------
305,867 374,105
TOTAL ASSETS ................................. $ 52,293,544 $ 53,541,639
============= =============
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable ........................... $ 1,324,634 $ 1,327,120
Accrued liabilities ........................ 185,533 120,039
Federal, state and foreign
income taxes payable ..................... 413,856 354,002
Accrued profit sharing ..................... 96,000 188,973
------------- -------------
2,020,023 1,990,134
Revolving credit facility .................... 15,000,000 13,978,830
Deferred income taxes ........................ 4,041,195 4,851,966
------------- -------------
19,041,195 18,830,796
Stockholders' Equity:
Common stock ............................... 12,780,040 12,761,100
Paid in capital ............................ 3,696,118 3,667,707
Less cost of treasury stock ................ (528,302) (528,302)
Retained earnings .......................... 15,284,470 16,820,204
------------- -------------
31,232,326 32,720,709
TOTAL LIABILITIES AND
STOCKHOLDERS' EQUITY ....................... $ 52,293,544 $ 53,541,639
============= =============
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, 1998 and 1997
(Unaudited)
1998 1997
---------- ----------
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income (loss) .................... $(1,535,734) $ 941,585
Adjustments
Depreciation, depletion and
amortization ..................... 2,450,000 2,200,000
Partnership distributions in
excess of income ................. 47,181 73,861
(Gain) loss on
property dispositions ............ 164,091 (284,105)
Decrease in deferred income taxes .. (810,771) (144,790)
Equity loss in
Symskaya Exploration ......... 319,113 143,837
Change in other assets ......... 21,057 21,057
Common stock issued for services 47,351 29,375
Net cash provided before changes in ---------- ----------
working capital items ............. 702,288 2,980,820
Increase (decrease) from changes in:
Accounts and advances receivable . 420,274 363,886
Other current assets ............. (15,053) 61,961
Accounts payable and accrued
liabilities .................... 63,008 (972,501)
Income taxes receivable/payable .. 116,935 440,473
Accrued profit sharing ........... (92,973) (83,100)
---------- ----------
Net cash provided
by operating activities ............ 1,194,479 2,791,539
---------- ----------
CASH FLOWS FROM INVESTING ACTIVITIES:
Advances to Symskaya Exploration ..... (319,113) (143,837)
Sale of temporary cash investments ... -- 49,802
Proceeds from sale of properties ..... -- 339,384
Capital expenditures ................. (2,257,063) (3,142,196)
---------- ----------
Net cash used in investing
activities ......................... (2,576,176) (2,896,847)
---------- ----------
CASH FLOWS FROM FINANCING ACTIVITIES:
Purchase of treasury stock ........... -- (106,547)
Borrowings under
revolving credit facility ........... 1,021,170 --
---------- ----------
Net cash provided by (used in)
financing activities .............. 1,021,170 (106,547)
---------- ----------
NET DECREASE IN CASH .................... (360,527) (211,855)
CASH AND CASH EQUIVALENTS
AT BEGINNING OF PERIOD ............... 378,801 787,961
---------- ----------
CASH AND CASH EQUIVALENTS
AT END OF PERIOD ..................... $ 18,274 $ 576,106
========== ==========
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 as of December 31, 1997. 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, 1998, and the results of its operations
for the three and six month periods ended June 30, 1998 and 1997, and its cash
flows for the six month periods ended June 30, 1998 and 1997.
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 1997 Annual Report on Form 10-K, and the
Company's Form 10-Q for the first quarter of 1998.
The results for the three and six month periods ended June 30, 1998 are not
necessarily indicative of future results.
NOTE 2. NET INCOME (LOSS) PER SHARE
Earnings per share for all periods presented has been restated to reflect
the adoption of Statement of Financial Accounting Standards No. 128, EARNINGS
PER SHARE ("SFAS 128"). SFAS 128 requires companies to present basic earnings
per share, and if applicable, diluted earnings per share, instead of primary and
fully diluted earnings per share. Basic earnings per share excludes dilution and
is computed by dividing net earnings available to common stockholders by the
weighted average number of common shares outstanding for the period. Diluted
earnings per share reflects the potential dilution that could occur if options
to issue common stock were exercised into common stock.
Options to purchase approximately 912,000 shares of common stock at prices
of $3.56 to $6.00 per share were outstanding during the first half of 1998, but
were not included in the computation of diluted earnings per share because the
exercise prices of the options were greater than the average market price of the
Company's common shares during the period. Basic and diluted earnings per share
are the same for each of the periods presented.
<PAGE>
PART I
ITEM 2
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATION
RESULTS OF OPERATIONS
FINANCIAL RESULTS
As a result of continued depressed oil prices, which reached a 12 year low
during the second quarter, the Company recorded a net loss for the first six
months of 1998 of $(1,535,734), or $(.12) per share, compared to net income of
$941,585, or $.07 per share during the same period of 1997. Total revenues of
$6,674,802 were 30% lower than total revenues of $9,531,393 recorded in the
first half of 1997.
The Company also recorded a net loss in the second quarter of 1998 of
$(893,728), or $(.07) per share, compared to second quarter 1997 net income of
$161,210, or $.01 per share. Second quarter revenues in 1998 of $3,097,357 were
30% lower than the $4,444,389 reported in the second quarter of 1997.
OPERATING RESULTS
Sharply reduced cash flows have caused the Company to decrease the number
of wells drilled in 1998 from the prior year. During the first half of 1998, the
Company participated in a total of 8 wells, 6 of which have been completed as
oil and gas wells. During the first half of 1997, the Company participated in 16
wells, 11 of which were completed as producing wells. Despite the smaller number
of wells drilled in 1998, the wells drilled and completed have added measurably
to the Company's reserves.
Included in the 1998 well count is an exploratory well drilled in
California on the Company's 16 square mile Merlin 3-D seismic project. The #1-15
Henning, located in Glenn County, California, tested at a rate of 1.4 million
cubic feet per day from perforations at 5,565 - 5,568 feet in the Cretaceous
Forbes formation and 5.9 million cubic feet per day from 5,518 to 5,556 feet.
The well is currently on production at a rate of 2.3 MMCFD. Equity operates and
has a 50% working interest in the well and the Merlin project.
A second consecutive gas discovery on the Merlin project, the Equity #1-22
Otto Lohse tested 2.4 million cubic feet per day from perforations at
5,525-5,540 feet, in the Cretaceous Forbes formation. In addition, a second
Forbes reservoir from 5,414 - 5,463 feet, which drill stem tested 6.5 million
cubic feet per day, represents proved behind pipe reserves. This well is
currently on production at a rate of 1.8 MMCFD.
At the Company's Davis Ranch prospect, also located in the Sacramento
Basin, the Equity #1-8 Westcott drill stem tested 7.5 million cubic feet per day
from the Cretaceous Forbes formation at a depth of 7,507-7,524 feet. This well
will go on production during August of 1998. The Company has a 60% working
interest at Davis Ranch.
Slawson Exploration production tested the #1-18 Armstrong at 4 million
cubic feet of gas per day from a Forbes perforation interval at 8,574-8,583
feet. Equity is a 25% working interest participant in the well and the 16 square
mile West Orion Sacramento Basin 3D project, where the well was drilled. This
well is also scheduled to go on production in August.
Following the successful production testing of a second pay zone in the
Westport Oil and Gas Company #24-15 Beaver Creek in Golden Valley County, North
Dakota, the well produced at an average rate of 1,150 barrels of oil per day
during the month of June. Equity has a 32.5% working interest in the well.
Westport Oil and Gas Company operates the well and holds the remaining working
interest.
The Company also participated in an additional successful development well
in 1998 at its Siberia Ridge field in Sweetwater County, Wyoming. The well was
placed on production at a rate of 700 MMCFD. The Company has a 50% interest in
the well.
<PAGE>
The Company is continuing to pursue additional outside financing for its
Symskaya project in Russia. The Company recently announced that its 50% owned
subsidiary, Symskaya Exploration, Inc. has entered into a Bottom Hole
Contribution Agreement with the Committee for Natural Resources of the
Krasnoyarsk Krai in Eastern Siberia to support the drilling of the Averinskaya -
150 well, an exploratory well that is being drilled near the town of Yeniseysk.
The well is adjacent to the southern block of acreage that Symskaya holds as
part of its 1.1 million acre exploration, development and production License.
The well is being drilled to evaluate the oil and gas potential of the same
geologic section that Symskaya targeted in the drilling of its Lemok No. 1 well
on the northern acreage block of its License area.
In exchange for a nominal payment, Symskaya will receive all pre-drilling
data from the well, drilling data acquired during the drilling of the well, and
all final reports on the well including logs, test results, core and drill
cutting samples, and samples of any oil, water or gas recovered during drilling.
In addition, Symskaya personnel will have complete access to the drill site
during drilling, the right to collect drill cuttings and other samples, and the
right to witness all coring and testing. The well is currently drilling below
4,000 feet, and is projected to be drilled to a total depth of 11,500 feet.
CAPITAL RESOURCES AND LIQUIDITY
Cash and cash equivalents totaled $18,274 as of June 30, 1998, a decrease
of $360,527 since year-end 1997. Working capital at June 30, 1998 was
$1,799,305, compared to $2,652,023 at December 31, 1997. The Company's ratio of
current assets to current liabilities was 1.89 to 1 at June 30, 1998, compared
to 2.33 to 1 at December 31, 1997. Cash provided by operating activities,
negatively impacted by low oil prices, was $1,194,479 in the first six months of
1998, 57% lower than the $2,791,539 recorded during the same period of 1997.
Investment in property and equipment for the first six months of 1998 of
$2,257,063 was 28% lower than the investment made during the first half of 1997,
reflecting the Company's decreased drilling activity. As a result of the
severely depressed oil prices, and their negative effects on cash flows, the
Company has reduced its 1998 capital budget to ensure that the bulk of its
projects will be paid from discretionary cash flows. The Company has high-graded
both exploratory and development projects based on their assumed risks and
rewards, and balanced this with projects that have specific lease related
drilling commitments. Other projects have been delayed or deferred until oil
prices strengthen and cash flows increase.
The Company purchased 35,000 shares of its stock on the open market during
the first half of 1997, at an average price of $3.04 per share. No treasury
stock was purchased during the first half of 1998.
During the first half of 1997, the Company did not increase borrowings
under its credit facility, compared to borrowings of $1,021,170 in 1998, which
were used to fund investments in property and equipment and for working capital
purposes. On March 30, 1998, the Company amended its credit agreement,
increasing the current commitment from $15 million to $18 million. In addition,
on June 24, 1998, the facility was further amended in order to set the first
principal payment date under the facility to July 1, 2001 from July 1, 1999. At
June 30, 1998, the Company had approximately $3 million of availability on the
facility, and was in compliance with all its covenants.
The Company believes that existing cash balances, cash flow, and funds
available under the Company's credit facility will provide adequate resources to
meet all of its current capital and exploration spending objectives for 1998.
COMPARISON OF SECOND QUARTER 1998 WITH SECOND QUARTER 1997
Oil and gas sales in the second quarter of 1998 of $3,016,811 were sharply
lower than the $3,903,440 recorded for the same quarter of last year, a result
of 1998's depressed oil environment. These lower prices offset increases in both
oil and gas production. The average net price for crude oil received by the
Company during the quarter was $11.58 per barrel, compared to $18.64 during the
second quarter of 1997, a decrease of 38%. Average gas prices received during
the second quarter of 1998 were $1.95 per Mcf, compared to $1.85 per Mcf during
the second quarter of 1997. Oil production increased from 163,000 barrels in the
second quarter of 1997 to 170,000 barrels during the same quarter of 1998, while
gas production rose from 526,000 Mcf in 1997 to 550,000 Mcf in 1998.
During the second quarter of 1997, the Company recorded a gain on the sale
of certain oil and gas properties of approximately $325,000. There was no
corresponding event in 1998.
<PAGE>
Total expenses in 1998 increased 8% over 1997 second quarter levels.
Despite higher production levels, lease operating costs declined by 8% over the
prior year. This decline was a combination of high-cost, marginal production
being shut-in during the quarter due to low prices and lower value-based
production taxes. The increase in production did contribute to higher
depreciation, depletion, and amortization (DD&A) charges. In addition, DD&A per
unit charges increased slightly from $4.50 per BOE to $4.57 per BOE in 1998.
The decrease in exploration expense was primarily due to lower dry hole
costs in 1998. During the second quarter of 1997, the Company participated in
five dry holes, compared to only two dry holes during 1998. General and
administrative expenses increased over 1997 second quarter levels due to
increased expenses related to the Company's annual meeting, increased
compensation expenses, and other fees and expenses. Higher interest costs in
1998 reflect the higher amount of debt outstanding under the Company's credit
facility.
The Company abandoned certain undeveloped leaseholds during the second
quarter of 1998 associated with a Lodgepole prospect that were acquired in 1995
and 1996. The Company did not renew selected leases in the area on their renewal
date due to a lack of prospectivity.
The equity loss in Symskaya Exploration increased by $177,503 during the
second quarter of 1998. This increase included a writedown of approximately
$125,000 in interest income on a senior note between Symskaya and the Company
that had been accrued in prior periods. In addition, the 1998 increase included
the Company's share of a bottom hole contribution discussed earlier. Neither of
these two events are recurring.
COMPARISON OF FIRST HALF 1998 WITH FIRST HALF 1997
Lower oil prices during the first half of 1998 offset increases in both oil
and gas production to produce an 30% decrease in total revenues compared to the
same period of 1997. Average oil prices received by the Company during the first
half of 1998 were $12.51 per barrel, compared to $19.47 per barrel during the
first half of 1997. Average gas prices received during the first half of 1998
were $1.97 per Mcf, which compared to $2.22 per Mcf during the first half of
1997. Oil production of 340,000 barrels was up 5% from 1997 production of
324,000 barrels. Natural gas production increased 14% to 1,170,000 Mcf in 1998
from 1,028,000 Mcf in 1997.
During the first half of 1997, the Company recorded a gain on the sale of
certain oil and gas properties of approximately $325,000. There was no
corresponding event in 1998.
Total expenses in 1998 increased 9% over 1997 first half levels. Lease
operating costs remained flat, while depreciation, depletion and amortization
increased 11%, primarily due to increased oil and gas production in 1998.
Exploration expense decreased from 1997 levels due to the smaller number of
dry holes drilled in 1998. During the first half of 1997, the Company
participated in five dry holes, compared to only two dry holes during 1998. The
Company incurred 3D seismic charges of $430,773 in 1998 associated with its
Sequoia project in the San Joaquin Basin of California. The initial well at
Sequoia is scheduled to drill during the second half of 1998. The Company did
not participate in any 3D seismic programs during the first half of 1997.
The Company abandoned certain undeveloped leaseholds during the first half
of 1998 associated with a Lodgepole prospect that were acquired in 1995 and
1996. This resulted in a charge to expense of $164,091. The Company did not
renew selected leases in the area on their renewal date due to a lack of
prospectivity.
Higher interest costs in 1998 reflect the higher amount of debt outstanding
under the Company's credit facility.
The equity loss in Symskaya Exploration increased by $175,276 during the
first half of 1998. This increase included a writedown of approximately $125,000
in accrued interest income on a senior note between Symskaya and the Company
that had been recognized in prior periods. In addition, the 1998 increase
included the Company's share of a bottom hole contribution discussed earlier.
Neither of these two events are recurring.
<PAGE>
OTHER ITEMS
In June of 1997, the Financial Accounting Standards Board issued Statement
of Financial Accounting Standards No. 130, REPORTING COMPREHENSIVE INCOME. The
Statement establishes standards for reporting and display of comprehensive
income and its components (revenues, expenses, gains, and losses) in a full set
of general-purpose financial statements. This Statement is effective for fiscal
years beginning after December 15, 1997. The adoption of this Statement did not
have a material effect on the Company's financial statements.
The Company has reviewed all recently issued, but not yet adopted,
accounting standards in order to determine their effects, if any, on the results
of operations or financial position of the Company. Based on that review, the
Company believes that none of these pronouncements will have a significant
effect on current or future earnings or operations.
YEAR 2000
The Company uses computers principally for processing and analyzing
geophysical and geological data, map making, and administrative functions such
as word processing, accounting, and financial reporting. The Company's principal
computer systems have been purchased since December 31, 1995. The Company has an
ongoing program to ensure that its operational and financial systems will not be
adversely affect by year 2000 software failures. While the Company believes it
is taking all appropriate steps to assure year 2000 compliance, it is dependent
substantially on vendor compliance. The Company intends to modify or replace
those systems that are not year 2000 compliant. The Company is requiring its
systems and software vendors to represent that the services and products
provided are, or will be, year 2000 compliant, and has planned a program to test
compliance. The Company anticipates completing that test no later than year-end
1998. The Company estimates that the cost to redevelop, replace, or repair its
technology will not be material.
FORWARD LOOKING STATEMENTS
Forward-looking statements in this Form 10-Q, future filings by the Company
with the Securities and Exchange Commission, the Company's press releases and
oral statements by authorized officers of the Company are intended to be subject
to the safe harbor provisions of the Private Securities Litigation Reform Act of
1995. Investors are cautioned that all forward-looking statements involve risks
and uncertainty, including without limitation, the risk of a significant natural
disaster, the inability of the Company to ensure against certain risks, the
adequacy of its loss reserves, fluctuations in commodity prices, the inherent
limitations in the inability to estimate oil and gas reserves, changing
government regulations, as well as general market conditions, competition and
pricing. The Company believes that forward-looking statements made by it are
based upon reasonable expectations. However, no assurances can be given that
actual results will not differ materially from those contained in such
forward-looking statements. The words "estimate", "anticipate",
"expect","predict", "believe" and similar expressions are intended to identify
forward-looking statements.
ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK.
The answers to items listed under Item 3 are inapplicable or negative.
<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 13, 1998, three Directors were
elected to the staggered board to serve three year terms, expiring in 2001, and
one Director was elected to serve a two year term, expiring in 2000. Paul M.
Dougan, Douglas W. Brandrup, and Joseph C. Bennett were elected to three year
terms. William P. Hartl, appointed to the Board in November of 1997, was elected
to a two year term. The following votes were recorded.
Dougan Brandrup
Affirmative votes 9,758,776 9,756,955
Withhold authority 140,074 141,895
Bennett Hartl
Affirmative votes 9,735,555 9,727,661
Withhold authority 163,295 171,189
Each director nominee received at least 98% 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, 1998 By /s/ Paul M. Dougan
---------------------- ------------------
Paul M. Dougan, President
DATE: August 12, 1998 By /s/ Clay Newton
---------------------- ---------------
Clay Newton, Treasurer
Principal Accounting
Officer
<TABLE> <S> <C>
<ARTICLE> 5
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1998
<PERIOD-START> JAN-01-1998
<PERIOD-END> JUN-30-1998
<CASH> 18,274
<SECURITIES> 0
<RECEIVABLES> 3,221,261
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 3,819,328
<PP&E> 115,367,603
<DEPRECIATION> 67,199,254
<TOTAL-ASSETS> 52,293,544
<CURRENT-LIABILITIES> 2,020,023
<BONDS> 0
0
0
<COMMON> 12,780,040
<OTHER-SE> 0
<TOTAL-LIABILITY-AND-EQUITY> 52,293,544
<SALES> 6,517,271
<TOTAL-REVENUES> 6,674,802
<CGS> 0
<TOTAL-COSTS> 8,237,860
<OTHER-EXPENSES> 0
<LOSS-PROVISION> (1,563,058)
<INTEREST-EXPENSE> 569,905
<INCOME-PRETAX> (2,132,963)
<INCOME-TAX> (597,229)
<INCOME-CONTINUING> (1,535,734)
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (1,535,734)
<EPS-PRIMARY> (.12)
<EPS-DILUTED> (.12)
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