UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-Q
(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, 1995
OR
[ ] TRANSACTION REPORT PURSUANT TO SECTION 13 OR
15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from _________ to _______________
COMMISSION FILE NUMBER 0-9946
GOLDEN OIL COMPANY
(Exact name of registrant as specified in its charter)
DELAWARE 84-0836562
(State or other jurisdiction of incorporation (I.R.S. Employer
or organization) Identification No.)
550 POST OAK BOULEVARD, SUITE 550, HOUSTON, TEXAS 77027
(Address of principal executive offices) (Zip Code)
(713) 622-8492
(Registrants 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 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 [ ]
As of August 1, 1995, the Registrant had outstanding 1,404,291 shares of
Common Stock, par value $.01 per share and 22,254 shares of Class B Common
Stock, par value $.01 per share.
Page 1 of 19
<PAGE>
CONTENTS
Page
----
PART I. FINANCIAL INFORMATION
Item 1. Financial Statements
- Consolidated Statements of Operations ......................... 3
- Consolidated Balance Sheets .................................... 5
- Consolidated Statements of Cash Flows .......................... 7
- Notes to Consolidated Financial Statements ..................... 9
Item 2. Management's Discussion and Analysis of
Financial Condition and Results of Operations .................... 12
PART II. OTHER INFORMATION
Item 6. Exhibits and Reports on Form 8-K ................................. 18
Page 2 of 19
<PAGE>
GOLDEN OIL COMPANY
PART I. FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS.
CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED)
THREE MONTHS ENDED
JUNE 30,
------------------------------
1995 1994
----------- -----------
Revenues:
Oil and gas production ................ $ 308,693 $ 466,897
Other ................................. 8,680 10,365
----------- -----------
Total revenues ................... 317,373 477,262
----------- -----------
Costs and expenses:
Production costs ...................... 205,920 353,275
Depreciation, depletion and
amortization ........................ 130,221 149,513
General and administrative ............ 95,606 149,759
----------- -----------
Total costs and expenses ......... 431,747 652,547
----------- -----------
(114,374) (175,285)
Gain (loss) on sale of property,
equipment and other assets ............ 337 8,119
Interest expense ......................... (9,795) (10,588)
Other income (expense) ................... (753) --
----------- -----------
Net earnings (loss) ...................... $ (124,585) $ (177,754)
----------- -----------
Net earnings(loss) per
common share .......................... $ (.09) $ (.13)
----------- -----------
Weighted average number of
common shares and common
share equivalents outstanding ......... 1,404,291 1,404,291
----------- -----------
See Notes to Consolidated Financial Statements
Page 3 of 19
<PAGE>
CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED)
SIX MONTHS ENDED
JUNE 30,
------------------------------
1995 1994
----------- -----------
Revenues:
Oil and gas production ................ $ 636,046 $ 829,112
Other ................................. 16,900 16,496
----------- -----------
Total revenues ................... 652,946 845,608
----------- -----------
Costs and expenses:
Production costs ...................... 404,506 628,620
Depreciation, depletion and
amortization ........................ 260,410 325,490
General and administrative ............ 187,607 283,769
----------- -----------
Total costs and expenses ......... 852,523 1,237,879
----------- -----------
(199,577) (392,271)
Gain (loss) on sale of property,
equipment and other assets ............ 8,337 7,690
Interest expense ......................... (19,011) (24,473)
Other income (expense) ................... (2,041) (12,759)
----------- -----------
Net earnings (loss) ...................... $ (212,292) $ (421,813)
----------- -----------
Net earnings(loss) per
common share .......................... $ (.15) $ (.30)
----------- -----------
Weighted average number of
common shares and common
share equivalents outstanding ......... 1,404,291 1,404,291
----------- -----------
See Notes to Consolidated Financial Statements.
Page 4 of 19
<PAGE>
CONSOLIDATED BALANCE SHEETS
(UNAUDITED)
JUNE 30, DECEMBER 31,
ASSETS 1995 1994
----------- -----------
Current assets:
Cash and cash equivalents ................. $ 85,803 $ 92,609
Short-term investments .................... 24,030 23,528
Accounts receivable, net .................. 430,939 461,619
Prepaid expenses and other ................ 51,508 44,183
----------- -----------
Total current assets ................... 592,280 621,939
----------- -----------
Property and equipment, at cost:
Oil and gas properties
(using the successful efforts
methods of accounting)
Producing properties ............... 5,866,276 5,994,169
Non-producing properties ........... 105,000 105,000
----------- -----------
Total oil and gas properties ......... 5,971,276 6,099,169
----------- -----------
Pipeline, field and other well
equipment ................................. 280,004 280,982
Other property and equipment ................. 460,975 455,610
----------- -----------
6,712,255 6,835,761
Less accumulated depreciation,
depletion and amortization ................ (3,206,078) (3,085,838)
----------- -----------
Net property and equipment ................ 3,506,177 3,749,923
----------- -----------
Investment in commercial realty .............. 224,051 228,076
Other assets ................................. 1,481 1,481
----------- -----------
$ 4,323,989 $ 4,601,419
----------- -----------
(Continued)
See Notes to Consolidated Financial Statements.
Page 5 of 19
<PAGE>
CONSOLIDATED BALANCE SHEETS (CONTINUED)
(UNAUDITED)
JUNE 30, DECEMBER 31,
LIABILITIES AND STOCKHOLDERS' EQUITY 1995 1994
------------ -------------
Current liabilities:
Notes payable and
current portion of long-term debt ....... $ 174,908 $ 389,237
Accounts payable .......................... 1,287,536 1,222,417
Accrued expenses .......................... 93,028 112,285
------------ ------------
Total current liabilities ............ 1,555,472 1,723,939
------------ ------------
Long-term debt ............................... 103,329 --
Other liabilities ............................ 37,214 37,214
Commitments and contingencies
Stockholders' equity:
Preferred stock, par value $.01;
authorized 10,000,000 shares,
none issued ............................. -- --
Common stock, par value $.01;
authorized 15,000,000 shares,
issued and outstanding 1,404,291
shares at June 30, 1995 and
December 31, 1994 ....................... 14,043 14,043
Class B common stock,
par value $.01; authorized 3,500,000
shares, issued and outstanding
22,254 shares at June 30, 1995
and December 31, 1994 ................... 223 223
Additional paid-in capital ................... 13,819,679 13,819,679
Accumulated deficit .......................... (11,205,971) (10,993,679)
------------ ------------
Total stockholders' equity ........... 2,627,974 2,840,266
------------ ------------
$ 4,323,989 $ 4,601,419
------------ ------------
See Notes to Consolidated Financial Statements.
Page 6 of 19
<PAGE>
CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED)
SIX MONTHS ENDED
JUNE 30,
-------------------------
1995 1994
--------- ---------
Cash flow from operating activities:
Net earnings (loss) ............................ $(212,292) $(421,813)
Adjustments to reconcile net
income to net cash provided
by operating activities:
Depreciation, depletion
and amortization ........................... 260,410 325,490
Equity in net loss of
investments in commercial realty ........... 4,025 --
(Gain) loss on sale of property
and equipment .............................. (8,337) (7,690)
(Gain) loss on sale of long term
investments ................................ -- 12,759
Changes in components of working
capital:
(Increase) decrease in accounts
receivable, net .......................... 30,680 (124,103)
(Increase) decrease in prepaid
expenses and other ....................... (7,325) (25,840)
Increase (decrease) in accounts
payable .................................. 65,119 49,106
Increase (decrease) in other
liabilities .............................. -- (2,067)
Increase (decrease) in accrued
expenses ................................. (19,257) 5,736
--------- ---------
Net cash provided by (used
in) operating activities ..................... $ 113,023 $(188,422)
--------- ---------
(Continued)
See Notes to Consolidated Financial Statements.
Page 7 of 19
<PAGE>
CONSOLIDATED STATEMENTS OF CASH FLOWS (CONTINUED)
(UNAUDITED)
SIX MONTHS ENDED
JUNE 30,
-------------------------
1995 1994
--------- ---------
Cash flows from investing activities:
Proceeds from sale of property
and equipment ............................. $ 9,500 $ 162,976
Additions of oil and gas properties ......... (12,277) --
Additions of other property and
equipment ................................. (5,550) (18,226)
Decrease (increase) in short-term
investments ............................... (502) (381)
Decrease (increase) in other assets ......... -- 30,573
--------- ---------
Net cash provided by (used in)
investing activities ......................... $ (8,829) $ 174,942
--------- ---------
Cash flows from financing activities:
Proceeds from issuance of
long-term debt ............................ -- 25,000
Payment of long-term debt ................... (111,000) (155,500)
--------- ---------
Net cash provided by (used in)
financing activities ......................... $(111,000) $(130,500)
--------- ---------
Net increase (decrease) in cash and
cash equivalents ............................ (6,806) (143,980)
Cash and cash equivalents at
beginning of period ......................... 92,609 262,553
--------- ---------
Cash and cash equivalents at
end of period ............................... $ 85,803 $ 118,573
--------- ---------
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION:
Cash paid for interest expense was $24,722 and $20,920 for the six months
ended June 30, 1995 and 1994, respectively. No cash was paid for income taxes
during the corresponding periods.
See Notes to Consolidated Financial Statements.
Page 8 of 19
<PAGE>
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(1) SUMMARY OF SIGNIFICANT ACCOUNTING PRINCIPLES
For a summary of significant accounting principles, see Notes to
Consolidated Financial Statements and Note 1 thereof contained in the
Annual Report on Form 10-K of Golden Oil Company ("Golden" or "Company")
for the year ended December 31, 1994, which is incorporated herein by
reference. The Company follows the same accounting policies during interim
periods as it does for annual reporting purposes.
The accompanying consolidated financial statements are condensed and
unaudited and have been prepared pursuant to the rules and regulations of
the Securities and Exchange Commission ("SEC"). In the opinion of
management, the unaudited interim financial statements reflect all
adjustments of a normal recurring nature which are necessary to present a
fair statement of the results for the interim periods presented. Interim
results are not necessarily indicative of a full year of operations.
Certain information and note disclosures normally included in annual
financial statements prepared in accordance with generally accepted
accounting principles have been condensed or omitted pursuant to SEC rules
and regulations; however, the Company believes that the disclosures made
are adequate to make the information presented not misleading. These
financial statements should be read in conjunction with the financial
statements and the notes thereto included in the Company's Form 10-K for
the year ended December 31, 1994.
RECLASSIFICATIONS
Certain amounts from prior periods have been reclassified to conform
to the presentation format for the 1995 Consolidated Financial Statements
with no effect on reported results of operations.
ACCOUNTS RECEIVABLE
Amounts shown as accounts receivable are net of $35,000 at June 30,
1995 and December 31, 1994 to reflect estimated provisions for doubtful
collection of certain non-recourse obligations primarily in connection
with certain working interest participants and drilling arrangements of a
Company subsidiary.
Page 9 of 19
INVESTMENTS
The Company adopted the provision of Statement of Financial
Accounting Standards No. 115, Accounting for Certain Investments in Debt
and Equity Securities ("SFAS" 115) effective January 1, 1994. There was no
impact resulting from the adoption of this standard as aggregate cost of
investments approximates market value. The Company's short-term
investments at December 31, 1994 and 1993 consisted of a certificate of
deposit held by a federally insured bank.
Prior to the adoption of SFAS 115, investment securities were
carried at the lower of average cost or market.
The Company holds approximately a 23% interest in its headquarters
office building. The Company accounts for its investment using the equity
method and recognizes its pro rata share of net income or loss in its
current operating statements.
(2) CERTAIN FIXED PRICE SALE AGREEMENTS
In order to better plan the Company's operations and to protect
against sudden declines in oil and gas prices as experienced in late 1993
and the first half of 1994, during the first quarter of 1995 the Company
entered into fixed price agreements with two principal purchasers of its
oil production. Under such agreements, the Company has contracted for the
sale of approximately eighty percent of its current average daily oil
production at prices, net of all transport charges or "basis differential"
adjustments, of $17.00 per barrel. The agreements, which may be extended
or modified, are for an initial term through at least March 1, 1996.
(3) DEVELOPMENT OF SOUTH DOG CREEK FIELD
During the second quarter of 1995, the Company began the initial
field work to implement a waterflood development program at its South Dog
Creek field in Osage County, Oklahoma. The Company has issued invoices to
all working interest owners for payment of their pro-rata share of such
initial costs. Gross capital expenditures for the initial phase are
expected to be approximately $135,000. Fieldwork on the initial phase of
the waterflood plan will continue through the third quarter. Although
fieldwork has begun, the Company does not anticipate increases in
production volumes from the South Dog Creek field until further
development occurs.
Page 10 of 19
(4) AGREEMENTS TO PURCHASE OIL AND GAS PROPERTIES
During the fourth quarter of 1993, the Company entered into an
agreement to purchase proved producing reserves in the State of New
Mexico. The New Mexico properties are located, respectively, adjacent to
and within acreage operated by Golden Operating Company, a subsidiary of
the Company, in its South Lindrith Field.
The Company intends to close the purchase of the New Mexico
properties using its own funds, including borrowings, formation of joint
ventures, sales of interests to limited or industry partners or other
financing methods, if necessary. However, there can be no guarantee that
the Company will be able to perform as required. If the Company were to
fail to complete the purchase, it would forfeit non-refundable deposits on
the properties of $42,000 of its total purchase price. The purchase price
is currently subject to adjustment for production since the original
effective date of the agreement and other factors.
If none of the foregoing transactions are completed the Company
would recognize charges to operations of approximately $66,000 incurred in
connection with such acquisition.
(5) STRATEGIC CONSIDERATIONS
In earlier stages of its development, the Company's strategic
emphasis focused on oil and gas exploration. As a result of this strategy,
in the mid 1970's the South Dog Creek field was discovered by Mr. A.M.
Alloway, the founder of Golden Oil Company and a leading explorationist,
in Osage County, Oklahoma. In recent years, the Company has concentrated
on plans for secondary development of reserves in Osage County, while also
establishing a broader scope of operations and greater geographic and
production diversity. As a result, the Company has completed extensive
engineering and regulatory work related to the South Dog Creek field, and
has diversified through the acquisition of operations and production in
other areas, particularly the San Juan Basin of New Mexico.
Page 11 of 19
During late 1993 and 1994, the Company further diversified through
acquisition of a limited interest in the commercial office building in
Houston, Texas where the Company maintains its principal offices. The
Company is actively reviewing more substantial transactions outside the
energy sector, including real estate and financial services. While these
sectors appear to offer more attractive long-term opportunities than are
offered by the oil and gas sector currently, the Company's ability to
enter into a material transaction in those or other sectors involves a
number of factors which at this time are unresolved. Such factors include
the degree of success in the Company's development of its reserves
classified in the Company's development of its reserves classified as
proved undeveloped, the trends of both oil and gas prices, and the
availability of financing.
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS.
LIQUIDITY AND CAPITAL RESOURCES
Golden Oil Company is a diversified company whose current operations
emphasize oil and gas production and development. Over the last several years,
the Company increased the size and scope of its oil and gas operations through a
number of corporate transactions, primarily involving asset purchases and
mergers. Corporate transactions also have been undertaken or considered in other
business sectors, including real estate and financial services. To date, limited
investment has been made in such business sectors. However, the Company is
actively reviewing more substantial transactions outside the energy sector.
The Company's operations during 1994 and to date during 1995 were funded
primarily through existing working capital, borrowings under its credit
facilities, sale of scattered nonstrategic oil and gas properties, and
internally generated funds from operating activities. Management anticipates
that the Company will meet ordinary operating needs for working capital from
internal sources. However, in order to complete development of its present
undeveloped reserves, pending and anticipated acquisitions and to further its
business plan, the Company will require additional financing. The Company may
arrange new financing through public or private offerings of the Company's
securities, asset sales, joint ventures, or other means. If the Company is
successful in its financing efforts, one use of proceeds will be to improve the
Company's working capital position. In addition, during the second quarter of
1995, the Company restructured and extended its scheduled maturities of
indebtedness.
Page 12 of 19
The Company maintains credit agreements with certain banks for the purpose
of acquiring oil and gas properties, maintaining working capital and outlays for
capital expenditures. The Company had received a credit from a commercial bank
in the aggregate principal amount of $525,000 of which $58,500 remained
outstanding at June 30, 1995. The terms of the credit agreement require
payments, including principal and interest, of $18,500 each month through
November 1, 1995. The Company also maintains a $100,000 line of credit with the
same bank. At June 30, 1995, the Company has borrowed $70,000 under the line of
credit. Upon expiration of this line of credit, the Company expects that the
principal amount outstanding will be amortized over a period of not less than
one year. The Company also maintains a $150,000 line of credit with another
bank, under which it had borrowed $149,737 at June 30, 1995. Upon expiration of
this credit line, the Company is obligated to amortize the principal outstanding
over a period not to exceed two years.
Cash flows generated by operating activities was $113,021 for the first
six months of 1995 compared to ($188,422) for the first six months of 1994. The
increase from the first six months of 1994 primarily reflects an increase in
average oil prices received in the first six months of 1995 from the first six
months of 1994, partially offset by a decline in production volumes due to the
sale of certain nonstrategic properties during 1994. In addition, the Company
has made substantial reductions in corporate overhead, both through reductions
in personnel and fees for outside services.
During the first quarter of 1995, the Company obtained fixed prices at an
average net price of approximately $17.00 per barrel on the majority of its oil
production. The fixed price of $17.00 represents an increase of $1.70 per barrel
compared to an average price of $15.30 per barrel received in the first six
months of 1994. The Company believes revenues generated under the fixed price
arrangements and the effect of reductions in corporate overhead during the past
two quarters will generate cash flows sufficient to meet its operating and
capital requirements.
During the second quarter of 1995, the Company began the initial field
work to implement the South Dog Creek waterflood plan. The Company has issued
invoices to all working interest owners for their pro rata share of waterflood
costs for the initial fieldwork. Gross capital expenditures for the initial
phase are expected to be approximately $135,000. Field work on the initial phase
of the waterflood plan will continue through the third quarter. Although
fieldwork has begun, the Company does not anticipate any significant increases
in production volumes from the South Dog Creek field until further development
occurs.
Page 13 of 19
At June 30, 1995, the Company had a working capital deficit of $963,192
and a current ratio of .38 to 1.00 compared to a working capital deficit of
$1,102,000 and a current ratio of .36 to 1.00 as of December 31, 1994. The
decrease in the working capital deficit at June 30, 1995 primarily results from
reduction in the Company's current portion of long-term debt. At June 30, 1995,
the Company's remaining debt obligations are reflected in current liabilities.
Accordingly, ongoing payments of its scheduled principal reductions of
approximately $18,500 per month are expected to continue to reduce the working
capital deficit in 1995. Additionally, the Company signed an agreement to
amortize one line of credit over a period of two years beginning in November
1995. As a result, only the principal payments due through June 30, 1996 are
included in the current portion of long-term debt.
Due to factors including changes in tax laws, adverse changes in the
economics of exploration drilling and the availability to the Company of
alternative uses of capital, during the late 1980s the Company curtailed
exploration activities. If the Company commences such programs in the future, it
intends to continue its previous policy of sharing exploration risks with third
party drilling participants. Certain of the Company's oil and gas leases provide
for ongoing drilling arrangements for periodic development of proved reserves.
The Company's principal development obligations under such agreements have been
suspended pending clarification of title assignments on certain federal leases.
The Company expects to obtain drilling participations from industry partners so
as to reduce the amount of the Company's required drilling commitments. The
Company believes that conditions in the independent oil and gas industry may
continue to generate opportunities to expand its scope of operations through
corporate transactions.
Page 14 of 19
RESULTS OF OPERATIONS
COMPARISON OF THE THREE MONTHS ENDED JUNE 30, 1995 WITH THE THREE MONTHS ENDED
JUNE 30, 1994.
REVENUES
Revenues from oil and gas production decreased from $466,897 during the
second quarter of 1994 to $308,693 in the comparable 1995 quarter, a decrease of
$158,204 (34%). The decrease is primarily attributable to the sale of certain
scattered nonstrategic properties during the second, third, and fourth quarters
in 1994. Additionally, gas price decreased $.62 per mcf from $1.57 per mcf
during the second quarter of 1994 to $.95 per mcf during the second quarter of
1995. This was partially offset by the increase of average oil postings of $2.27
per barrel from $14.87 per barrel for the second quarter of 1994 to $17.14 for
the same period in 1995.
Other revenue was $8,680 for the second quarter of 1995 compared to
$10,365 for the comparable period in 1994, primarily due to a decrease in
gathering fees as a result of the decline in production volumes.
COSTS AND EXPENSES
Oil and gas production costs decreased by $147,355 from $353,275 for the
second quarter of 1994 to $205,920 for the same period in 1995 due primarily to
decreases in field operating expenses as a result of the sale of certain
scattered, nonstrategic wells during the second, third and fourth quarters of
1994. General and administrative expenses decreased by $54,153 from $149,759 for
the second quarter of 1994 to $95,606 for the same period in 1995. The decrease
is primarily attributable to reductions in personnel and corporate overhead made
during the fourth quarter of 1994 and the first quarter of 1995.
Depreciation, depletion and amortization expenses decreased from $149,513
for the second quarter of 1994 to $130,221 for the comparable period of 1995 due
primarily to disposal of certain nonstrategic properties during the second,
third and fourth quarters of 1994. In addition, during the second quarter of
1994, certain properties became fully depleted for book purposes although such
wells have continuing production.
Gain on sale of property and equipment during the second quarter of 1995
of $337 reflects the sale of field equipment. Interest expense decreased by $793
from $10,588 for the second quarter of 1994 to $9,795 for the same period in
1994.
Primarily reflecting the factors discussed above, the Company reported a
net loss for the three months ended June 30, 1995 of $124,585 compared to a net
loss of $177,754 for the same period of 1994.
Page 15 of 19
RESULTS OF OPERATIONS
COMPARISON OF THE SIX MONTHS ENDED JUNE 30, 1995 WITH THE SIX MONTHS ENDED JUNE
30, 1994.
REVENUES
Revenues from oil and gas production decreased from $829,112 during the
first six months of 1994 to $636,046 in the first six months of 1995, a decrease
of $193,066 (23%). The primary reason for the decrease was due to a decline in
the average production volumes in the first six months of 1995 as a result of
the sale of certain scattered nonstrategic properties during the second, third,
and fourth quarters in 1994. The production volume declines and gas price
declines were partially offset by the increase in average oil price postings of
$3.32 per barrel from $14.10 per barrel for the first six months of 1994 to
$17.42 per barrel in the first six months of 1995. Additionally, during February
and March 1995 the Company entered into certain fixed price arrangements at an
average net price of approximately $17.00 per barrel for the majority of its oil
production for a period through March 1996. Also, the average price per mcf of
gas decreased by approximately $.47 per mcf from $1.42 per mcf for the first six
months of 1994 to $.95 per mcf for the same period in 1995.
COSTS AND EXPENSES
Oil and gas production costs decreased from $628,620 for the first six
months of 1994 to $404,506 for the first six months of 1995, a decrease of
$224,114, reflecting decreases in field operating expenses related to properties
sold in 1994. General and administrative expenses decreased from $283,769 for
the first six months of 1994 to $187,607 for the same period in 1995, a decrease
of $96,162. The decrease is primarily attributable to reductions in personnel
and corporate overhead made during the fourth quarter of 1994 and the first
quarter of 1995.
Depreciation, depletion, and amortization expense decreased $65,080 from
$325,490 for the first six months of 1994 to $260,410 for the comparable period
of 1995 due primarily to disposals of certain nonstrategic properties during
1994 and the first quarter of 1995.
Gain on sale of property and equipment during the first six months of 1995
of $8,337 is due to the sale of certain scattered, nonstrategic properties in
1995. Net proceeds to the Company from such sales were $9,500.
Page 16 of 19
The decrease in interest expense of $5,462 from $24,473 for the first six
months of 1994 compared to $19,011 for the first six months of 1995 is due to a
decrease in average aggregate amounts outstanding for borrowings under the
Company's financing arrangements.
Other income (expense) reflects a net expense of $2,041 for the first six
months of 1995, compared to net expense of $12,759 for the first six months of
1994. The net expense of ($12,759) during the first quarter of 1994 is due to a
loss on the sale of a long-term investment.
Primarily reflecting the factors discussed above, the Company reported a
net loss for the six months ended June 30, 1995 of $212,292 compared to a net
loss of $421,813 for the same period of 1994.
Page 17 of 19
PART II. OTHER INFORMATION
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K.
(a) Exhibits
None.
(b) Reports on Form 8-K
None.
Page 18 of 19
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.
GOLDEN OIL COMPANY
Date: By: /s/ RALPH T. MCELVENNY, JR.
Chief Executive Officer
By: /s/ JEFFREY V. HOUSTON
Chief Financial and Accounting Officer
Page 19 of 19
<PAGE>
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
THE FINANCIAL DATA SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED
FROM THE COMPANY'S QUARTERLY REPORT ON FORM 10-Q FOR THE QUARTER ENDED JUNE 30,
1995 AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1995
<PERIOD-END> JUN-30-1995
<CASH> 85,803
<SECURITIES> 23,528
<RECEIVABLES> 430,939
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 592,280
<PP&E> 6,712,255
<DEPRECIATION> (3,206,078)
<TOTAL-ASSETS> 4,396,990
<CURRENT-LIABILITIES> 1,555,472
<BONDS> 0
<COMMON> (14,266)
0
0
<OTHER-SE> (2,613,708)
<TOTAL-LIABILITY-AND-EQUITY> (4,323,989)
<SALES> (308,693)
<TOTAL-REVENUES> (317,373)
<CGS> 205,920
<TOTAL-COSTS> 431,747
<OTHER-EXPENSES> 416
<LOSS-PROVISION> 0
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<INCOME-TAX> 0
<INCOME-CONTINUING> 124,585
<DISCONTINUED> 0
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<CHANGES> 0
<NET-INCOME> 124,585
<EPS-PRIMARY> 124,585
<EPS-DILUTED> 124,585
</TABLE>
