UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-QSB
(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
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the transition period from ____________ to ______________
Commission file number 0-8609
Future Petroleum Corporation
(Exact name of small business issuer as specified in charter)
Utah 87-0239185
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
2351 West Northwest Highway, Suite 2130, Dallas, Texas 75220
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code:214/350-7602
Check whether the issuer (1) filed all reports required to
be filed by section 13 or 15(d) of the Securities Exchange Act of
1934 during the past 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 [ ]
APPLICABLE ONLY TO CORPORATE ISSUERS:
The Company had approximately 3,376,903 shares of common
stock, par value $0.01 per share, issued and outstanding as of
June 15, 1995.
Transitional Small Business Disclosure Format (Check One):
Yes [ ] No [X]
<PAGE>
PART I
FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS
The condensed consolidated financial statements included
herein have been prepared by the Company, without audit, pursuant to the
rules and regulations of the Securities and Exchange Commission. Certain
information and footnote disclosures normally included in financial
statements prepared in accordance with generally accepted accounting
principles have been condensed or omitted. However, in the opinion of
management, all adjustments (which consist only of normal recurring
adjustments) necessary to present fairly the financial position and results
of operations for the periods presented have been made. These condensed
consolidated financial statements should be read in conjunction with
financial statements and the notes thereto included in the Company's Form
10-KSB filing for the year ended December 31, 1994.
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FUTURE PETROLEUM CORPORATION
Balance Sheets
JUNE 30, 1995
ASSETS
<S> <C>
CURRENT ASSETS:
Current portion of notes receivable $ 455,153
Trade accounts receivable:
Joint interest billings 13,567
Accrued oil and gas sales 19,060
_________
Total Current Assets 487,780
PROPERTY AND EQUIPMENT:
Proved oil and gas properties, using
the full cost method of accounting 1,897,746
Other 43,228
_________
1,940,974
Less accumulated depletion, depreciation,
amortization and impairment (1,388,233)
_________
Net Property and Equipment 552,741
OTHER ASSETS:
Non-current portion of notes receivable 11,400
Mining properties held for sale 34,741
Other 2,424
_________
TOTAL OTHER ASSETS 48,565
TOTAL ASSETS $ 1,089,086
</TABLE>
<PAGE>
<TABLE>
FUTURE PETROLEUM CORPORATION
Balance Sheets
JUNE 30, 1995
LIABILITIES AND STOCKHOLDERS' EQUITY
<S> <C>
CURRENT LIABILITIES:
Trade accounts payable $ 95,464
Advances from shareholder 10,000
Accrued oil and gas proceeds payable 24,143
__________
Total Current Liabilities 129,607
DEFERRED GAIN ON SALE 162,831
STOCKHOLDERS' EQUITY:
Preferred stock, no par value, 200,000 shares
authorized, no shares issued --
Common stock, $.01 par value, 30,000,000
shares authorized, shares issured and
outstanding; 3,376,903 at June 30, 1995 and
3,273,649 at June 30, 1994 33,769
Additional paid-in capital 967,758
Accumulated deficit (204,879)
__________
Total Stockholders' Equity 796,648
Total Liabilities and Stockholders' Equity $ 1,089,086
</TABLE>
<PAGE>
<TABLE>
FUTURE PETROLEUM CORPORATION
Statement of Operations and Accumlated Deficit
Three Months Ended
JUNE 30,
____________________
1995 1994
____________________
<S> <C> <C>
REVENUES:
Oil and gas sales $ 44,122 $ 52,050
Well operation fees 10,197 11,197
Other 604 13,631
Total Revenues 54,923 76,878
COSTS AND EXPENSES:
Lease operations and production taxes 30,439 19,544
General and administrative 23,640 72,996
Depletion, depreciation and
amortization 10,346 9,276
___________________
Total Expenses 64,425 101,816
OTHER INCOME:
Gain on sale of assets 22,092 49,998
Interest income 7,112 8,419
29,204 58,417
___________________
NET INCOME 19,702 33,479
BEGINNING ACCUMULATED DEFICIT (224,582) (220,441)
___________________
ENDING ACCUMULATED DEFICIT $ (204,880) $ (186,962)
NET INCOME PER COMMON SHARE $ 0.01 $ 0.01
WEIGHTED AVERAGE COMMON
SHARES OUTSTANDING 3,377,000 3,274,000
</TABLE>
<PAGE>
<TABLE>
FUTURE PETROLEUM CORPORATION
Statement of Operations and Accumlated
Deficit
Six Months Ended
JUNE 30,
___________________
1995 1994
___________________
<S> <C> <C>
REVENUES:
Oil and gas sales $ 81,538 $ 97,696
Well operation fees 20,394 25,444
Other 1,744 24,129
___________________
Total Revenues 103,677 147,269
COSTS AND EXPENSES:
Lease operations and production taxes 57,221 45,772
General and administrative 49,703 111,363
Depletion, depreciation and
amortization 20,691 17,901
___________________
Total Expenses 127,614 175,036
OTHER INCOME:
Gain on sale of assets 30,969 58,819
Interest income 17,406 8,469
48,374 67,288
___________________
NET INCOME 24,436 39,521
BEGINNING ACCUMULATED DEFICIT (229,316) (226,483)
___________________
ENDING ACCUMULATED DEFICIT $ (204,879) $ (186,962)
NET INCOME PER COMMON SHARE $ 0.01 $ 0.01
WEIGHTED AVERAGE COMMON
SHARES OUTSTANDING 3,377,000 3,274,000
</TABLE>
<PAGE>
<TABLE>
FUTURE PETROLEUM CORPORATION
Statements of Cash Flows
Six Months Ended
JUNE 30,
___________________
1995 1994
____________________
<S> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITES:
Net Income $ 24,436 $ 39,521
Adjustments to reconcile to net
cash from operations:
Depreciation, depletion, and amortization 20,691 17,901
Gains on sale of assets (30,969) (58,819)
Decrease (increase) in receivables 5,400 (16,643)
(Decrease) increase in accounts payable 4,372 (51,022)
Other assets -- 477
Current notes receivable 25,000 --
____________________
Net cash provided by (used in) 48,931 (68,585)
CASH FLOWS FROM INVESTING ACTIVITIES:
Additions to property and equipment (108,931) (35,969)
Proceeds from sale of oil and gas
and mining properties -- 39,955
____________________
Net cash provided by (used in) (108,931) 3,986
CASH FLOWS FROM FINANCING ACTIVITIES:
Collection of notes receivable 60,000 55,000
-------------------
Net cash provided by financing 60,000 55,000
____________________
NET INCREASE (DECREASE) IN CASH -- (9,599)
AND CASH EQUIVALENTS
CASH AND CASH EQUIVALENTS, beginning of
period $ -- $ 19,234
CASH AND CASH EQUIVALENTS, end of period $ -- $ 9635
</TABLE>
<PAGE>
ITEM 2. MANAGEMENT'S DISCUSSION AND
ANALYSIS OR PLAN OF OPERATIONS
General
Because of the nature of the Company's business, the results of
operations for any interim period are not necessarily indicative of the
results of operations that may be expected for an entire fiscal year.
Financial Condition
The Company incurred consolidated net income of $19,702 and $33,479
for the three months ended June 30, 1995 and 1994, respectively.
At June 30, 1995, the Company had working capital of approximately $195,000,
which was a $44,000 improvement over the $151,000 working capital of the
Company as of June 30, 1994. This increase in working capital was due primarily
to the sale of mining properties for cash and notes receivable.
The Company requires capital to continue with its acquisition of
producing oil and gas properties and drilling prospects as well as to
complete drilling on existing properties and to earn an interest in prospects
developed by others under standard industry farmout arrangements.
The Company will continue to rely on drilling and other exploration funds
provided by others, both to spread the risks of individual projects and to
supplement the Company's limited capital resources. In obtaining drilling
funding from others, the Company typically earns a fee out of the third-party
funding provided or retains an overriding royalty or other carried interest
that is not burdened with all of the costs of exploration and development.
The Company anticipates completing a drilling prospect and/or other
explorations during the next 12 months that will require funding through
industry sources.
During the three months ended June 30, 1995, operating activities
required net cash of approximately $54,000 which, when offset by non-cash
expenses for depreciation, depletion, and amortization, increases in accounts
payable and decreases in receivables, resulted in net income of approximately
$19,702 for the period. In the same period during 1994, operations
required net cash of approximately $92,000, which resulted in a net profit
from operations of $33,479. Investing activities required approximately
$37,000 and $10,240 for the three month period ended June 30, 1995, and 1994,
respectively, for the purchase of property and equipment, but was offset for
the 1995 period by collections on a note receivable and sale of mining
properties in the amount of $25,000, resulting in net cash used in investing
activities of approximately $12,000 for the period.
Results of Operations
Total revenues for the three months ended June 30, 1995, decreased
29% over revenues for the preceding year, as well operation fees decreased
by 9% and other income decreased by $13,000.
<PAGE>
Lease operations and production expenses were lower for the three
months interim period ended June 30, 1995, as compared to the corresponding
period a year earlier as a result of the Company's reduced level of
operations. General and administrative expenses decreased by more than 68%
in the three month interim period during 1995, as compared to a year earlier.
PART II
OTHER INFORMATION
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K
a. Exhibits.
None.
b. Reports on Form 8-K.
None.
During the quarter ended June 30, 1995, the Company did not file
any report on Form 8-K.
<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934,
as amended, the registrant has duly caused this report to be signed on its
behalf by the undersigned thereunto duly authorized.
FUTURE PETROLEUM CORPORATION
Registrant
Dated: August 15, 1995 By: /s/ B. Carl Price
B. Carl Price, President,
Principal Financial and Accounting Officer
(Signature)
Dated: August 15, 1995 By: /s/ Danny Matthews
Danny Matthews,
Assistant Secretary and Director
(Signature)
<TABLE> <S> <C>
<ARTICLE> 5
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1995
<PERIOD-END> JUN-30-1995
<CASH> 0
<SECURITIES> 0
<RECEIVABLES> 499,179
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 499,179
<PP&E> 1,978,139
<DEPRECIATION> (1,388,233)
<TOTAL-ASSETS> 1,089,086
<CURRENT-LIABILITIES> 292,438
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<COMMON> 33,769
0
0
<OTHER-SE> 0
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<SALES> 44,122
<TOTAL-REVENUES> 40,004
<CGS> 0
<TOTAL-COSTS> 64,424
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<LOSS-PROVISION> 0
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<DISCONTINUED> 0
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<CHANGES> 0
<NET-INCOME> 19,702
<EPS-PRIMARY> .01
<EPS-DILUTED> .01
</TABLE>
