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, 1996 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)
(972) 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 11, 1996)
1
<PAGE>
DOUBLE RIVER OIL & GAS CO. AND SUBSIDIARY
FORM 10-Q September 30, 1996
INDEX
Part I Financial Information: Page No.
Item 1. Financial Statements.
Consolidated Balance Sheets
September 30, 1996 (Unaudited) and December 31, 1995.................3
Consolidated Statements of Operations (Unaudited)
Nine Months and Three Months Ended September 30, 1996 and 1995.......5
Consolidated Statements of Cash Flows (Unaudited)
Nine Months Ended September 30, 1996 and 1995........................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
2
<PAGE>
Part I Financial information
Item 1. Financial statements
DOUBLE RIVER OIL & GAS CO. AND SUBSIDIARY
CONSOLIDATED BALANCE SHEETS
<TABLE>
<CAPTION>
September 30, December 31,
-----------------------------
1996 1995
----------- -----------
(Unaudited)
Assets
<S> <C> <C>
Current Assets
Cash $ - $ 8,000
Accounts receivable - 2,000
----------- ----------
Total Current Assets - 10,000
----------- ----------
Property and Equipment
Oil and gas properties 134,000 148,000
Unevaluated projects in Kazakhstan 43,000 43,000
----------- ----------
177,000 191,000
Accumulated depreciation and amortization (101,000) (94,000)
----------- ----------
76,000 97,000
---------- ----------
TOTAL ASSETS $ 76,000 $ 107,000
=========== ==========
</TABLE>
See notes to financial statements.
3
<PAGE>
DOUBLE RIVER OIL & GAS CO. AND SUBSIDIARY
CONSOLIDATED BALANCE SHEETS
<TABLE>
<CAPTION>
September 30, December 31,
-----------------------------
1996 1995
----------- -----------
(Unaudited)
LIABILITIES AND SHAREHOLDERS' EQUITY
<S> <C> <C>
Current liabilities
Accounts payable and accrued liabilities $ 30,000 $ 30,000
Accounts payable-affiliate 1,000 3,000
----------- -----------
Total Current Liabilities 31,000 33,000
----------- -----------
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, 1995) 206,000 206,000
Accumulated deficit (177,000) (148,000)
----------- -----------
29,000 58,000
----------- -----------
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $ 76,000 $ 107,000
=========== ===========
</TABLE>
See notes to financial statements.
4
<PAGE>
DOUBLE RIVER OIL & GAS CO. AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
<TABLE>
<CAPTION>
Nine Months Ended Three Months Ended
September 30, September 30,
------------------------- -----------------------
1996 1995 1996 1995
----------- ----------- ----------- -----------
<S> <C> <C> <C> <C>
Revenues
Oil and gas revenues $ 48,000 $ 69,000 $ 15,000 $ 27,000
Other - - - -
----------- ----------- ----------- -----------
48,000 69,000 15,000 27,000
----------- ----------- ----------- -----------
Expenses
Severance tax 3,000 4,000 1,000 1,000
Lease operating expenses 46,000 31,000 11,000 6,000
Depreciation and amortization 7,000 12,000 2,000 4,000
General and administrative 21,000 24,000 3,000 2,000
----------- ----------- ----------- ----------
77,000 71,000 17,000 13,000
----------- ----------- ----------- ----------
NET INCOME (LOSS) $ (29,000) $ (2,000) $ (2,000) $ 14,000
=========== =========== =========== ==========
NET INCOME LOSS PER
COMMON SHARE $ 0 $ 0 $ 0 $ 0
=========== =========== =========== ==========
</TABLE>
See accompanying notes to financial statements.
5
<PAGE>
DOUBLE RIVER OIL & GAS CO. AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
<TABLE>
<CAPTION>
Nine Months Ended
September 30,
-----------------------------
1996 1995
----------- -----------
<S> <C> <C>
Cash Flows from Operating Activities
Net income (Loss) $ (29,000) $ (2,000)
Reconciliation of net income to net cash
provided by operating activities:
Depreciation and amortization 7,000 12,000
(Increase) decrease in accounts receivable 2,000 (7,000)
Increase (decrease)in accounts payable (2,000) 16,000
----------- -----------
Cash provided (used) in operating activities 22,000) 19,000
----------- -----------
Cash Flows from Investing Activities
Capitalized acquisition, exploration
and development costs - (19,000)
----------- -----------
Cash used in investing activities - (19,000)
----------- -----------
Cash Flows from Financing Activities
Repayment of shareholder loans - -
Proceeds from sale of properties 14,000 -
----------- -----------
Cash provided (used) by financing activities - -
----------- -----------
Increase (decrease) in cash (8,000) -
Cash at beginning of period 8,000 7,000
----------- -----------
Cash at end of period $ - $ 7,000
=========== ===========
</TABLE>
See notes to financial statements.
6
<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, 1995 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.
7
<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, 1996 compared with 1995
Oil and gas revenues decreased in 1996 primarily due to the sale of oil and gas
properties.
Lease operating expenses increased in 1996 due to workovers on existing wells.
Three months ended September 30, 1996 compared with 1995
Oil and gas revenues decreased in 1996 primarily due to the sale of oil and gas
properties.
Lease operating expenses increased in 1996 due to workovers on existing wells.
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.
8
<PAGE>
Double River Oil & Gas Co. and Subsidiary
September 30, 1996
Part II Other Information
Item 6. Exhibits and Reports on Form 8-K
(a) Exhibits - 27 Financial Data Schedue
(b) Reports on Form 8-K - None
9
<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 13, 1996 By: /s/ Paul E. Cash
--------------------
Paul E. Cash
Vice-President
DATE: November 13, 1996 By: /s/ Paul E. Cash
--------------------
Paul E. Cash
Chief Financial Officer
WARNING: THE EDGAR SYSTEM ENCOUNTERED ERROR(S) WHILE PROCESSING THIS SCHEDULE.
<TABLE> <S> <C>
<ARTICLE> 5
<MULTIPLIER> 1
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> Dec-31-1996
<PERIOD-START> Jan-01-1996
<PERIOD-END> Sep-30-1996
<EXCHANGE-RATE> 1
<CASH> 0
<SECURITIES> 0
<RECEIVABLES> 0
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 0
<PP&E> 177,000
<DEPRECIATION> 101,000
<TOTAL-ASSETS> 76,000
<CURRENT-LIABILITIES> 31,000
<BONDS> 0
0
0
<COMMON> 206,000
<OTHER-SE> (177,000)
<TOTAL-LIABILITY-AND-EQUITY> 76,000
<SALES> 48,000
<TOTAL-REVENUES> 48,000
<CGS> 0
<TOTAL-COSTS> 46,000
<OTHER-EXPENSES> 31,000
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> (29,000)
<INCOME-TAX> 0
<INCOME-CONTINUING> (29,000)
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (29,000)
<EPS-PRIMARY> 0
<EPS-DILUTED> 0
</TABLE>
