FORM 10-Q
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF
THE SECURITIES EXCHANGE ACT OF 1934
For Quarter Ended March 31, 1997
Commission File No. 0-10286
General Energy Resources and Technology Corporation
(Exact name of registrant as specified in its charter)
Michigan 38-2266968
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
401 W. Front Street
Traverse City, Michigan 49684
(Address of principal executive offices)
616-946-1473
(Registrant's telephone number, including area code)
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 a 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 Corporate Issuers:
Indicate the number of shares outstanding of each of the issuer's
classes of common stock as of the latest practicable date.
Common Stock, Par Value $.10 - 7,991,870 shares, as of March 31,
1997.<PAGE>
GENERAL ENERGY RESOURCES AND TECHNOLOGY CORPORATION
Index to Form 10-Q
PART I - Financial Information Page
Item 1 Balance Sheets. . . . . . . . . . . . . . . . . . .3
Statements of Operations. . . . . . . . . . . . . .5
Statement of Cash Flows . . . . . . . . . . . . . .6
Notes to Financial Statements . . . . . . . . . . .7
Item 2 Management's Discussion and Analysis of Financial
Conditions and Results of Operations. . . . . . .8
PART II - Other Information
Signatures. . . . . . . . . . . . . . . . . . . . .10
<PAGE>
PART I - FINANCIAL INFORMATION
General Energy Resources and Technology Corporation
Balance Sheets
Item 1
ASSETS
March 31, December 31,
1997 1996
(Unaudited) (Unaudited)
CURRENT ASSETS
Cash $ 6,261 $ 8,858
Accounts Receivable Trade, Less
Allowance for Doubtful Accounts
of $8,698 110,624 121,220
Prepaid Expenses 1,872 500
_________ _________
Total Current Assets 118,757 130,578
PROPERTY AND EQUIPMENT, AT COST
Proved Oil and Gas Properties,
Successful Efforts Method of
Accounting 2,726,399 2,726,399
Unproved Leasehold and Minerals 85,106 85,106
Drilling Contracts in Progress 10,070 10,070
_________ _________
Total Property and Equipment 2,821,575 2,821,575
Less Accumulated Depreciation,
Depletion, and Amortization 2,539,814 2,536,810
_________ _________
Net Property and Equipment 281,761 284,765
OTHER ASSETS
Investments (net of unrealized
loss of $288,950) 1,050 1,050
_________ _________
$ 401,568 $ 416,393
========= =========
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES
Current Installments of
Long-Term Debt $ 3,000 $ 3,000
Accounts Payable Trade 461,360 464,012
Notes Payable 36,500 21,500
Salaries Payable 53,692 53,692
_________ _________
Total Current Liabilities 554,552 542,204
LONG-TERM DEBT 45,795 47,521
STOCKHOLDERS' EQUITY
Common Stock ($.10 Par Value,
18,000,000 Shares Authorized,
7,991,870 Shares Issued and
Outstanding) 799,187 799,187
Additional Paid-in Capital 7,435,012 7,435,012
Deficit (8,432,978) (8,407,531)
_________ _________
Total Stockholders' Equity (198,779) (173,332)
$ 401,568 $ 416,393
========= =========
See Accompanying Notes to Financial Statements
<PAGE>
General Energy Resources and Technology Corporation
Statements of Operations
Three Months Ended March 31, (Unaudited)
1997 1996
____ ____
REVENUES
Oil and Gas Sales
Working Interest $ 25,825 $ 15,917
Royalty Interest 18,598 15,753
Consulting Fees 0 577
Administrative Overhead 4,200 4,200
Write-off of Expired Credits 0 66,116
_________ _________
Total Revenues 48,623 102,563
COSTS AND EXPENSES
Lease and Operating Expenses 18,944 17,759
Taxes Other Than on Income 2,810 1,986
Dry Holes and Abandonments (182) 56
Depreciation, Depletion and
Amortization 3,004 3,181
General and Administrative 48,637 76,158
Interest Expense 857 0
_________ _________
Total Expenses 74,070 99,140
_________ _________
NET INCOME (LOSS) $ (25,447) $ 3,423
========= =========
NET INCOME (LOSS) PER WEIGHTED
AVERAGE SHARE OF COMMON STOCK $ (.003) $ .0004
_________ _________
WEIGHTED AVERAGE NUMBER OF SHARES
OUTSTANDING 7,991,870 7,991,870
_________ _________
See Accompanying Notes to Financial Statements
<PAGE>
General Energy Resources and Technology Corporation
Statement of Cash Flows
Three Months Ended March 31, (Unaudited)
1997 1996
____ ____
CASH FLOWS FROM OPERATING ACTIVITIES
Net Income (Loss) $ (25,447) $ 3,423
Adjustments to Reconcile Net
Earnings to Net Cash Provided by
Operating Activities
Depreciation, Depletion and
Amortization 3,004 3,181
Abandonments, Expired and
Surrendered Leases 0 0
(Gain)Loss on Sale of Oil and
Gas Properties 0 0
(Increase)Decrease in Current Assets:
Trade Accounts Receivable 10,596 (106,584)
Prepaid Expenses (1,372) 188
Increase(Decrease) in Current Liabilities:
Trade Accounts Payable (2,652) 76,650
Notes Payable 15,000 0
Joint Interest Prepayments 0 (79,515)
Expired Credits - Stock Purchase
Overpayment 0 (25,603)
_________ _________
NET CASH FROM OPERATING
ACTIVITIES (871) (128,260)
CASH FLOWS FROM INVESTING ACTIVITIES
Acquisition of Property and
Equipment 0 (622)
_________ _________
NET CASH FROM INVESTING
ACTIVITIES 0 (622)
CASH FLOWS FROM FINANCING ACTIVITIES
Increase(Decrease) in Long-Term Debt (1,726) 2,345
_________ _________
NET CASH FROM FINANCING
ACTIVITIES (1,726) 2,345
_________ _________
NET INCREASE(DECREASE) IN
CASH (2,597) (126,537)
CASH AT BEGINNING OF PERIOD 8,858 136,108
_________ _________
CASH AT END OF PERIOD $ 6,261 $ 9,571
========= =========
<PAGE>
General Energy Resources and Technology Corporation
Notes to Financial Statements
NOTE 1
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Property and Equipment
The Company utilizes the successful efforts method of accounting
for its oil and gas exploration and development program. Under
this method of accounting, costs of drilling and completing
successful wells are capitalized, while costs of dry hole are
charged to expense when incurred. Depletion and amortization of
producing leasehold and mineral interests and related intangible
development costs are provided by the unit-of-production method
based on estimates of recoverable oil and gas reserves prepared
by independent petroleum engineers. Lease and well equipment is
depreciated over its estimated useful life (seven years) by the
straight-line method.
Costs of nonproducing leasehold and mineral interests are not
amortized but are charged to operations when such properties are
abandoned, surrendered, determined to be worthless or transferred
to producing properties and depleted when successfully developed.
Maintenance and repairs are charged to expense when incurred.
Renewals and betterments are capitalized. When assets are sold,
retired or otherwise disposed of, applicable costs and
accumulated depreciation and depletion are removed from the
accounts and the resulting gain or loss is recognized.
Interest Capitalization
Interest costs applicable to the drilling and equipment of in-
progress and shut-in oil and gas wells are capitalized until such
time as the wells begin producing. There were no entries for
interest capitalization during 1996 and 1995.
Earnings Per Share
Earnings per share is based on the weighted average number of
shares outstanding.
NOTE 2
NON CASH TRANSACTIONS
The Company had the following non March 31, Dec. 31,
cash transactions during the 1997 1996
periods ending March 31, 1997
and December 31, 1996 -0- -0-
NOTE 3
LONG-TERM DEBT
On June 1, 1990, the Company signed a $292,814 promissory note
with Mosbacher Energy Company (MEC) for the amount owed MEC by
General Energy Corporation for well operations as of May 7, 1990.
The note is secured by the Company's interest in eleven producing
properties operated by MEC and bears interest at 7 1/4 percent
per annum. Additional terms of the agreement call for monthly
payments of the lesser of $20,000 or the month's production to
MEC. Based on current production estimates, management expects to
reduce this loan by approximately $250 per month.
NOTE 4
INTERIM STATEMENTS
The Company believes that the accompanying unaudited financial
statements contain all adjustments (including appropriate
provision for depreciation, depletion and amortization normally
determined at year end) necessary to present fairly the financial
position as of March 31, 1997 and December 31, 1996, and the
results of operations for the three months ended March 31, 1997
and 1996. All adjustments are of a normal recurring nature,
except as follows:
March 31, Dec. 31,
1997 1996
____ ____
Write-offs of Expired Credits $ 0 66,116
Interim financials should not necessarily be considered to be
indicative of the results of operations for the entire year.
NOTE 5
CONTINGENCIES
The prices of the Company's natural gas production are subject to
the regulations of the Federal Energy Regulatory Commission
(FERC). The Company believes it has substantially complied with
regulations as issued.
Item 2 - Management's Discussion and Analysis of Financial
Conditions and Results of Operations
Results of Operations
The Company's total earned revenue for the quarter ended March
31, 1997 totaled $48,623. This represents a decrease of ($53,940)
from the same quarter in 1996 and is largely the result of income
in the first quarter of 1996 from the write-off of expired
credits in the amount of $66,116.
Total expenses decreased ($25,070) from $99,140 at March 31, 1996
to $74,070 at March 31, 1997.
The Company's net profit for the three months ended March 31,
1997 decreased $28,870 from $3,423 at March 31, 1996 to ($25,447)
at March 31, 1997.
Liquidity/Capital Resources
Net cash from operating activities increased $127,389 to ($871)
at March 31, 1997 compared to ($128,260) at March 31, 1996.
Management feels that cash flows will be sufficient to pay
current operating liabilities and to amortize the remaining
current portion of it's long-term debt.
Management has developed contingency plans to obtain additional
capital by the issuance of debt or sale of equities to the extent
that these actions become necessary in the future.
<PAGE>
PART II - OTHER INFORMATION
General Energy Resources and Technology Corporation
Signatures
Pursuant to the requirements of the Securities and Exchange Act
of 1934, the registrant has duly caused this report to be signed
on its behalf by the undersigned thereunto duly authorized, on
the 22nd day of October, 1997.
GENERAL ENERGY RESOURCES AND
TECHNOLOGY CORPORATION
By: H. TERRY SNOWDAY, JR.
_______________________________
H. Terry Snowday, Jr.
President and Director
(Principal Executive Officer)
<TABLE> <S> <C>
<ARTICLE> 5
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1997
<PERIOD-END> MAR-31-1997
<CASH> 6,261
<SECURITIES> 0
<RECEIVABLES> 119,322
<ALLOWANCES> 8,698
<INVENTORY> 0
<CURRENT-ASSETS> 118,757
<PP&E> 2,821,575
<DEPRECIATION> 2,539,814
<TOTAL-ASSETS> 401,568
<CURRENT-LIABILITIES> 554,552
<BONDS> 0
0
0
<COMMON> 799,187
<OTHER-SE> (997,966)
<TOTAL-LIABILITY-AND-EQUITY> 401,568
<SALES> 44,423
<TOTAL-REVENUES> 48,623
<CGS> 0
<TOTAL-COSTS> 21,754
<OTHER-EXPENSES> 52,316
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> (25,447)
<INCOME-TAX> 0
<INCOME-CONTINUING> (25,447)
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (25,447)
<EPS-PRIMARY> (003)
<EPS-DILUTED> (003)
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