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 March 31, 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)
(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 - $.001 par value 18,301,158
(Title of Class) (Number of shares Outstanding
on May 10, 1996)
1
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DOUBLE RIVER OIL & GAS CO.
FORM 10-Q March 31, 1996
INDEX
Part I Financial Information: Page No.
Item 1. Financial Statements.
Balance Sheets
March 31, 1996 (Unaudited) and December 31,1995...............3
Statements of Operations (Unaudited)
Three Months Ended March 31, 1996 and 1995....................5
Statements of Cash Flows (Unaudited)
Three Months Ended March 31, 1996 and 1995....................6
Notes to 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.
BALANCE SHEETS
<TABLE>
<CAPTION>
March 31 December 31
1996 1995
---------- ----------
(Unaudited)
Assets
<S> <C> <C>
Current Assets
Cash $ 1,000 $ 8,000
Accounts receivable 13,000 2,000
---------- ----------
Total Current Assets 14,000 10,000
---------- ----------
Property and Equipment
Oil and gas properties (full cost) 134,000 148,000
Unevaluated projects in Kazakhstan 43,000 43,000
---------- ----------
177,000 191,000
Accumulated depreciation and amortization (97,000) (94,000)
---------- ----------
80,000 97,000
---------- ----------
TOTAL ASSETS $ 94,000 $ 107,000
========== ==========
</TABLE>
See notes to financial statements.
3
<PAGE>
DOUBLE RIVER OIL & GAS CO.
BALANCE SHEETS
<TABLE>
<CAPTION>
March 31 December 31,
1996 1995
---------- ----------
(Unaudited)
LIABILITIES AND SHAREHOLDERS' EQUITY
<S> <C> <C>
Current liabilities
Accounts payable and accrued liabilities $ 35,000 $ 30,000
Accounts payable-affiliates 1,000 3,000
---------- ----------
Total Current Liabilities 36,000 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 (164,000) (148,000)
---------- ----------
42,000 58,000
---------- ----------
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $ 94,000 $ 107,000
========== ==========
</TABLE>
See notes to financial statements.
4
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DOUBLE RIVER OIL & GAS CO.
STATEMENTS OF OPERATIONS
(Unaudited)
<TABLE>
<CAPTION>
Three Months Ended
March 31,
---------------------------
1996 1995
---------- ----------
<S> <C> <C>
Revenues
Oil and gas revenues $ 20,000 $ 22,000
Other income - -
---------- ----------
20,000 22,000
---------- ----------
Expenses
Severance tax 1,000 1,000
Lease operating expenses 18,000 12,000
Depreciation and amortization 3,000 4,000
General and administrative 14,000 20,000
---------- ----------
36,000 37,000
---------- ----------
NET INCOME (LOSS) $ (16,000) $ (15,000)
========== ==========
NET INCOME (LOSS) PER COMMON SHARE $ .00 $ .00
========== ==========
</TABLE>
See notes to financial statements.
5
<PAGE>
DOUBLE RIVER OIL & GAS CO.
STATEMENTS OF CASH FLOWS
(Unaudited)
<TABLE>
<CAPTION>
Three Months Ended
March 31,
------------------------
1996 1995
---------- ----------
<S> <C> <C>
Cash Flows from Operating Activities
Net income (Loss) $ (16,000) $ (15,000)
Reconciliation of net income to net cash
provided by operating activities:
Depreciation and amortization 3,000 4,000
(Increase) decrease in accounts receivable (11,000) (5,000)
Increase (decrease) in accounts payable 3,000 18,000
---------- ----------
Cash provided (used) in operating activities (21,000) 2,000
---------- ----------
Cash Flows from Investing Activities
Capitalized acquisition, exploration and
development costs - -
---------- ----------
Cash used in investing activities - -
---------- ----------
Cash Flows from Financing Activities
Repayment of shareholder loan - -
Sale of oil and gas properties 14,000 -
Proceeds from borrowings - -
---------- ----------
Cash provided (used) by financing activities 14,000 -
---------- ----------
Increase (decrease) in cash (7,000) 2,000
Cash at beginning of period 8,000 7,000
---------- ----------
Cash at end of period $ 1,000 $ 9,000
========== ==========
</TABLE>
See notes to financial statements.
6
<PAGE>
Double River Oil & Gas Co.
Notes to 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 for the interim periods.
7
<PAGE>
Double River Oil & Gas Co.
Notes to Financial Statements
(Unaudited)
Item 2. Management's Discussion and Analysis
of Financial Condition and Results of Operation
Results of Operations
1996 Compared to 1995
- ---------------------
Lease operating expenses increased approximately $6,000 in the first quarter of
1996 primarily due to workovers on existing wells.
General and administration expenses decreased because of a decrease in audit
fees.
1995 Compared to 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 10-K for information relating to the
change in control.
General and administrative expense increased due to an increase in audit fees.
Liquidity and Capital Resources
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 offering shares of its common stock, other
securities 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, investment bankers, or
third parties to finance its proposed international activities.
8
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Double River Oil & Gas Co.
March 31, 1996
Part II Other Information
Item 6. Exhibits and Reports on Form 8-K
(a) Exhibits
27 Financial Data Schedule
(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: May 14, 1996 By: /s/ Paul E. Cash
----------------------
Paul E. Cash
Vice President
DATE: May 14, 1996 By:/s/ Dennis P. McGrath
----------------------
Dennis P. McGrath
Chief Financial Officer
10
<PAGE>
WARNING: THE EDGAR SYSTEM ENCOUNTERED ERROR(S) WHILE PROCESSING THIS SCHEDULE.
<TABLE> <S> <C>
<ARTICLE> 5
<MULTIPLIER> 1
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> Dec-31-1996
<PERIOD-START> Jan-01-1996
<PERIOD-END> Mar-31-1996
<EXCHANGE-RATE> 1
<CASH> 1,000
<SECURITIES> 0
<RECEIVABLES> 13,000
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 14,000
<PP&E> 177,000
<DEPRECIATION> 97,000
<TOTAL-ASSETS> 94,000
<CURRENT-LIABILITIES> 36,000
<BONDS> 0
0
0
<COMMON> 206,000
<OTHER-SE> (164,000)
<TOTAL-LIABILITY-AND-EQUITY> 94,000
<SALES> 20,000
<TOTAL-REVENUES> 20,000
<CGS> 0
<TOTAL-COSTS> 19,000
<OTHER-EXPENSES> 17,000
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> (16,000)
<INCOME-TAX> 0
<INCOME-CONTINUING> (16,000)
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (16,000)
<EPS-PRIMARY> 0
<EPS-DILUTED> 0
</TABLE>
