FORM 10-Q
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
QUARTERLY REPORT UNDER SECTION 13 OR 15 (d) OF
THE SECURITIES EXCHANGE ACT OF 1934
For Quarter ended September 30, 1995 Commission File No. 2-71175
Double River Oil & Gas Co.
(Exact name of registrant as specified in its charter)
Texas 75-1729359
(State or other jurisdiction of incorporation (IRS Employer or I.D.#)
or organization)
9319 LBJ Frwy., Suite 205, Dallas, TX 75243
(Address of principle executive offices) (Zip Code)
(214)644-2581
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 of 15 (d) of the Securities Exchange Act
of 1934 during the preceding twelve 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 ninety (90) days.
YES X NO
Indicate the number of shares outstanding of each of the issuer's classes of
common stock, as of the latest practicable date.
Common Stock - No par value 18,301,158
(Title of Class) (Number of shares Outstanding
on November 9, 1995)
<PAGE>
DOUBLE RIVER OIL & GAS CO. AND SUBSIDIARY
FORM 10-Q September 30, 1995
INDEX
Part I Financial Information: Page No.
Item 1. Financial Statements.
Consolidated Balance Sheets
September 30, 1995 (Unaudited) and December 31, 1994 . . . . .....3
Consolidated Statements of Operations (Unaudited)
Nine Months and Three Months Ended September 30, 1995 and 1994....5
Consolidated Statements of Cash Flows (Unaudited)
Nine Months Ended September 30, 1995 and 1994 . . . . . . . .....6
Notes to Consolidated Financial Statements . . . . . . . . . . ..7
Item 2. Management's Discussion and Analysis of Financial
Condition and Results of Operations...............................8
Part II Other Information:
Item 6. Exhibits and Reports on Form 8-K. . . . . . . . ...........9
<PAGE>
<TABLE>
Part I Financial information
Item 1. Financial statements
DOUBLE RIVER OIL & GAS CO. AND SUBSIDIARY
CONSOLIDATED BALANCE SHEETS
<CAPTION>
September 30 December 31
------------ -----------
1995 1994
------------ -----------
(Unaudited)
<S> <C> <C>
ASSETS
Current Assets
Cash $ 7,000 $ 7,000
Accounts receivable 10,000 3,000
---------- ----------
Total Current Assets 17,000 10,000
Property and Equipment
Oil and gas properties 154,000 135,000
Unevaluated projects in Kazakhstan 37,000 37,000
---------- ----------
191,000 172,000
Accumulated depreciation and
amortization (94,000) (82,000)
---------- ----------
97,000 90,000
TOTAL ASSETS $ 114,000 $ 100,000
========== ==========
<FN>
See notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
DOUBLE RIVER OIL & GAS CO. AND SUBSIDIARY
CONSOLIDATED BALANCE SHEETS
<CAPTION>
September 30 December 31,
------------ ------------
1995 1994
------------ ------------
(Unaudited)
<S> <C> <C>
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities
Accounts payable and accrued
liabilities $ 35,000 $ 19,000
Accounts payable-affiliate 1,000 1,000
---------- ----------
Total Current Liabilities 36,000 20,000
---------- ----------
Shareholder loans, less current portion 16,000 16,000
---------- ----------
Shareholders' Equity
Common stock, no par value;50,000,000
shares authorized;18,301,158 issued
(18,301,158 at December 31, 1994) 206,000 206,000
Accumulated deficit (144,000) (142,000)
---------- ----------
62,000 64,000
---------- ----------
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $ 114,000 $ 100,000
========== ==========
<FN>
See notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
DOUBLE RIVER OIL & GAS CO. AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
<CAPTION>
Nine Months Ended Three Months Ended
September 30, September 30,
---------------------- -------------------
1995 1994 1995 1994
---------------------- -------------------
<S> <C> <C> <C> <C>
Revenues
Oil and gas revenues $ 69,000 $ 76,000 $ 27,000 $ 27,000
Equipment rental - 13,000 - 4,000
Other - 4,000 - -
-------- -------- -------- --------
69,000 93,000 27,000 31,000
-------- -------- -------- --------
Expenses
Pipeline operations - 5,000 - -
Severance tax 4,000 5,000 1,000 2,000
Lease operating expenses 31,000 54,000 6,000 17,000
Depreciation and
amortization 12,000 12,000 4,000 3,000
Gas purchases - - - -
General and
administrative 24,000 13,000 2,000 6,000
-------- -------- -------- --------
71,000 89,000 13,000 28,000
-------- -------- -------- --------
NET INCOME (LOSS) $ (2,000) $ 4,000 $ 14,000 $ 3,000
======== ======== ======== ========
NET INCOME LOSS PER COMMON
SHARE $ -0- $ -0- $ -0- $ -0-
======== ======== ======== ========
<FN>
See accompanying notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
DOUBLE RIVER OIL & GAS CO. AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
<CAPTION>
Nine Months Ended
June 30,
---------------------
1995 1994
-------- --------
<S> <C> <C>
Cash Flows from Operating Activities
Net income (Loss) $ (2,000) $ 4,000
Reconciliation of net income to net cash
provided by operating activities:
Depreciation and amortization 12,000 12,000
(Increase) decrease in accounts receivable (7,000) 2,000
Increase (decrease) in accounts payable 16,000 (94,000)
Gain on sale of subsidiary - (4,000)
-------- --------
Cash provided (used) in operating activities 19,000 (80,000)
-------- --------
Cash Flows from Investing Activities
Capitalized acquisition, exploration and
development costs (19,000) (11,000)
-------- --------
Cash used in investing activities (19,000) (11,000)
-------- --------
Cash Flows from Financing Activities
Issuance of common stock to shareholder - 80,000
Advance from related party - -
Repayment of shareholder loans - (40,000)
Proceeds from sale of subsidiary - 40,000
Reduction of shareholder loan from issuance
of common stock - (80,000)
Increase in shareholder advance from
assignment of debt from related company - 80,000
Other - (3,000)
Proceeds from sale of debentures - -
-------- --------
Cash provided (used) by financing activities - 77,000
-------- --------
Increase (decrease) in cash - (14,000)
Cash at beginning of period 7,000 15,000
-------- --------
Cash at end of period $ 7,000 $ 1,000
======== ========
<FN>
See notes to financial statements.
</TABLE>
<PAGE>
Double River Oil & Gas Co. and Subsidiary
Notes to Consolidated Financial Statements
(Unaudited)
Note 1. Basis of Presentation
The accompanying financial statements are presented in accordance with the
requirements of Form 10-Q and consequently do not include all of the
disclosures normally required by generally accepted accounting principles
or those normally made in the Company's annual Form 10-K filing.
Accordingly, the reader of this form 10-Q may wish to refer to the Company's
Form 10-K for the year ended December 31, 1994 for further information.
In the opinion of management, the accompanying interim financial statements
contain all material adjustments, consisting only of normal recurring
adjustments necessary to present fairly the financial condition, the results
of operations and changes in cash flows of the Company and its consolidated
subsidiary for the interim periods.
<PAGE>
Double River Oil & Gas Co. and Subsidiary
Notes to Consolidated Financial Statements
(Unaudited)
Item 2. Management's Discussion and Analysis
of Financial Condition and Results of Operation
Results of Operations
Nine months ended September 30, 1995 compared with 1994
- -------------------------------------------------------
Equipment rental income and related expenses decreased in 1995 because this
segment of the business was discontinued upon the change of control of the
Company in 1994. See December 31, 1994 Form 10-K for information relating
to the change in control.
Lease operating expenses decreased because in 1994 there was a high amount
of repairs in the second quarter to maintain wells.
Three months ended September 30, 1995 compared with 1994
- --------------------------------------------------------
Equipment rental income and related expenses decreased in 1995 because this
segment of the business was discontinued upon the change of control of the
Company in 1994. See December 31, 1994 Form 10-K for information relating
to the change in control.
Lease operating expenses decreased primarily due to a refund of operating
expenses previously incurred.
Financial Condition and Liquidity
- ---------------------------------
The Company's primary source of liquidity and capital resources has previously
consisted of cash flow provided by operating activities and by borrowings. The
Company will be required to raise additional capital to fund any significant
expenditures. The Company will not be able to fund its proposed international
operations unless it is successful in obtaining additional funding or unless
interests can be sold to other oil companies or investors in such project(s)
in amounts sufficient to fund proposed operations. The Company is currently
seeking financing from investors or third parties to finance its proposed
international activities.
<PAGE>
Double River Oil & Gas Co. and Subsidiary
September 30, 1995
Part II Other Information
Item 6. Exhibits and Reports on Form 8-K
(a) Exhibits - None
(b) Reports on Form 8-K - None
<PAGE>
Signature
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.
DOUBLE RIVER OIL & GAS CO.
(Registrant)
DATE: November 9, 1995 By: Paul E. Cash
Paul E. Cash
Vice-President
DATE: November 9, 1995 By: Paul E. Cash
Paul E. Cash
Chief Financial Officer
<TABLE> <S> <C>
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<S> <C>
<FISCAL-YEAR-END> Dec-31-1995
<PERIOD-START> Jan-01-1995
<PERIOD-END> Sep-30-1995
<PERIOD-TYPE> 9-MOS
<CASH> 7000
<SECURITIES> 0
<RECEIVABLES> 10000
<ALLOWANCES> 0
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<CURRENT-ASSETS> 17000
<PP&E> 191000
<DEPRECIATION> (94000)
<TOTAL-ASSETS> 114000
<CURRENT-LIABILITIES> 52000
<BONDS> 0
<COMMON> 206000
0
0
<OTHER-SE> (144000)
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<TOTAL-REVENUES> 69000
<CGS> 71000
<TOTAL-COSTS> 71000
<OTHER-EXPENSES> 0
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<INCOME-PRETAX> (2000)
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</TABLE>
