<PAGE>
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
----------------------
FORM 10-Q SB
[ ] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE
ACT OF 1934
FOR THE QUARTERLY PERIOD ENDED MARCH 31, 1996
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES
EXCHANGE ACT OF 1934
COMMISSION FILE NUMBER 1-9933
-----------------------------
AMERAC ENERGY CORPORATION
(Exact name of Registrant as specified in its charter)
STATE OF DELAWARE 75-2181442
(State or other incorporation) (I.R.S. Employer
Identification No.)
700 LOUISIANA, SUITE 3330
HOUSTON, TEXAS 77002
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (713) 223-1833
Indicate by check mark whether the registrant (1) has filed all reports
required 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
----- -----
The number of shares of Common Stock, $.05 par value, outstanding on April
30, 1996 was 24,034,153.
<PAGE>
AMERAC ENERGY CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEET
<TABLE>
<CAPTION>
DECEMBER 31, MARCH 31,
1995 1996
-------------- -------------
(Unaudited)
<S> <C> <C>
A S S E T S
Current Assets
Cash and equivalents $ 144,000 $ 98,000
Receivables
Receivable from Property Sale 1,005,000 -
Trade Receivables 1,104,000 1,501,000
------------- ------------
Total current assets 2,253,000 1,599,000
------------- ------------
Property and Equipment (using successful efforts accounting)
Oil and gas properties at cost 20,614,000 28,950,000
Less accumulated depreciation, depletion
and amortization (12,020,000) (12,527,000)
------------- ------------
Net property and equipment 8,594,000 16,423,000
------------- ------------
Other Assets 347,000 284,000
------------- ------------
TOTAL ASSETS $ 11,194,000 $ 18,306,000
============= ============
L I A B I L I T I E S A N D S T O C K H O L D E R S' E Q U I T Y
Current Liabilities
Accrued liabilities and payables $ 606,000 $ 175,000
Current portion of Notes Payable Banks - 2,200,000
Contract obligation - 618,000
------------- ------------
Total current liabilities 606,000 2,993,000
------------- ------------
Long-term Liabilities
Notes Payable Banks 3,547,000 7,630,000
Contract Obligation 641,000 -
Other long-term liabilities 406,000 324,000
------------- ------------
Total long-term liabilities 4,594,000 7,954,000
------------- ------------
Commitments and contingencies (Note 7)
Stockholders' Equity
Preferred stock, $1 par value
10,000,000 shares authorized - -
$4.00 Senior Preferred, outstanding
1,786,347 at March 31, 1996 and 1,786,347 at December 31, 1995 1,786,000 1,827,000
Common Stock, $.05 par value;
50,000,000 shares authorized; outstanding
20,629,416 shares at December 31, 1995
and 24,034,153 at March 31, 1996 1,031,000 1,202,000
Additional paid-in capital 142,211,000 142,873,000
Accumulated deficit (139,034,000) (138,543,000)
------------- ------------
Total stockholders' equity 5,994,000 7,359,000
------------- ------------
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 11,194,000 $ 18,306,000
============= ============
</TABLE>
The accompanying notes are an integral part of these financial statements.
2
<PAGE>
AMERAC ENERGY CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF OPERATION
(Unaudited)
<TABLE>
<CAPTION>
THREE MONTHS ENDED
MARCH 31,
-----------------------
1995 1996
---------- -----------
<S> <C> <C>
REVENUE
Oil and gas $ 824,000 $2,254,000
Other 64,000 72,000
---------- ----------
888,000 2,326,000
---------- ----------
EXPENSES
Lease operations 200,000 480,000
Exploration 7,000 2,000
Depreciation, depletion and amortization 275,000 515,000
General and Administrative 345,000 423,000
Interest and other 54,000 200,000
---------- ----------
881,000 1,620,000
---------- ----------
Income before taxes 7,000 706,000
Provision for taxes - -
---------- ----------
NET INCOME $ 7,000 $ 706,000
---------- ----------
Preferred dividends (194,000) (215,000)
---------- ----------
NET INCOME (LOSS) APPLICABLE
TO COMMON STOCKHOLDERS $ (187,000) $ 491,000
========== ==========
NET INCOME (LOSS) PER COMMON STOCK $ (.01) $ .02
========== ==========
Weighted average Common Stock outstanding 16,390,000 23,960,000
========== ==========
</TABLE>
The accompanying notes are an integral part of these financial statements.
3
<PAGE>
AMERAC ENERGY CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOW
(Unaudited)
<TABLE>
<CAPTION>
THREE MONTHS ENDED
MARCH 31,
-----------------------
1995 1996
---------- ----------
<S> <C> <C>
CASH FLOW FROM OPERATING:
Net Income $ 7,000 $ 706,000
Adjustments needed to reconcile to net cash flows:
Depreciation, depletion and amortization 275,000 515,000
Amortization of discount 6,000 -
Gain on sale of properties (8,000) (53,000)
Stock for Directors fees - 15,000
Recognition of deferred revenue (37,000) (23,000)
Changes in current items relating to operations:
Oil and gas receivables and other 52,000 (398,000)
Accounts payables (7,000) (260,000)
Accrued and other long-term liabilities (69,000) (251,000)
Other assets - (63,000)
---------- -----------
NET CASH FLOW PROVIDED BY OPERATIONS 219,000 188,000
---------- -----------
CASH FLOW FROM INVESTING:
Proceeds from sale of assets 16,000 1,050,000
Oil and gas expenditures and acquisitions (29,000) (7,694,000)
Option exercised - 2,000
---------- -----------
NET CASH FLOW USED FOR INVESTING (13,000) (6,642,000)
---------- -----------
CASH FLOW FROM FINANCING:
Bank borrowing, net - 6,283,000
---------- -----------
NET CASH FLOW USED FOR FINANCING - 6,283,000
---------- -----------
NET INCREASE(DECREASE)IN CASH AND EQUIVALENTS 206,000 (171,000)
Cash and equivalents at beginning of period 3,437,000 269,000
---------- -----------
CASH AND EQUIVALENTS AT END OF PERIOD $3,643,000 $ 98,000
========== ===========
SUPPLEMENTAL DISCLOSURE:
Cash for interest paid during the period $ 55,000 $ 200,000
========== ===========
SUPPLEMENTAL SCHEDULE OF NON-CASH INVESTING
AND FINANCING:
Paid dividends in-kind on the Senior Preferred Stock $ 194,000 $ 215,000
Paid compensation in Common Stock $ 0 $ 53,000
Common stock issued in Fremont acquisition $ - $ 640,000
</TABLE>
The accompanying notes are an integral part of these financial statements.
4
<PAGE>
AMERAC ENERGY CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS EQUITY
JANUARY 1, 1996 TO MARCH 31, 1996
(unaudited)
<TABLE>
<CAPTION>
$4.00 SENIOR COMMON SHARES
PREFERRED STOCK ($.05 PAR VALUE) ADDITIONAL
--------------------------------- ----------------------- PAID-IN ACCUMULATED
SHARES AMOUNT SHARES AMOUNT CAPITAL DEFICIT TOTAL
--------------- ---------------- ---------- ----------- ----------- --------------- ------------
<S> <C> <C> <C> <C> <C> <C> <C>
BALANCE-
January 1, 1996 1,786,347 $1,786,000 20,629,416 $1,031,000 $142,211,000 $(139,034,000) $ 5,994,000
--------------- --------------- ---------- ----------- ------------ -------------- -----------
NET INCOME
Fremont Acquisition 3,293,310 165,000 475,000 640,000
Stock issued for
Director's fees 71,427 4,000 11,000 - 15,000
Option Exercised 40,000 2,000 2,000
$4.00 Senior Preferred
Stock dividend 40,166 41,000 176,000 (215,000) 2,000
Net Income - - - - 706,000 706,000
--------------- --------------- ---------- ----------- ------------ -------------- ------------
BALANCE -
March 31, 1996 1,826,513 $ 1,827,000 24,034,153 $1,202,000 $142,873,000 $(138,543,000) $ 7,359,000
=============== =============== ========== =========== ============ ============== ============
</TABLE>
(See the accompanying notes to these statements.)
5
<PAGE>
AMERAC ENERGY CORPORATION
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
1. ORGANIZATION AND NATURE OF BUSINESS
Amerac Energy Corporation, ("Amerac" or the "Company") was formed
in 1969 and is headquartered in Houston, Texas. The Company is engaged in
the acquisition, development and enhancement of oil and gas properties in
the United States.
2. SUMMARY OF SIGNIFICATION ACCOUNTING POLICIES
The results of operations for the interim periods shown in this
report are not necessarily indicative of results to be expected for the
year. In the opinion of management, the accompanying unaudited financial
statements contain all adjustments necessary to present fairly the
financial position as of March 31, 1996, and the results of operations for
the three months ended March 31, 1995 and 1996, and cash flow for the three
months ended March 31, 1995 and 1996. These financial statements and the
notes thereto should be read in conjunction with the Company's annual
report on Form 10-K for the year ended December 31, 1995.
Net income (loss) per share is computed by dividing the net
income or loss attributable to common shareholders by the weighted average
number of shares of Common Stock outstanding. In determining the net income
(loss) attributable per share, the Company decreased income by the
preferred stock dividend and accretion discount. The stock options and
convertible debts are either not material or are anti-dilutive and were not
included in the average shares outstanding during the periods presented.
Since 1991, the Company has accounted for its investment in
Petroleum Financial Inc. ("PFI") (in which it owns a 26% interest) on the
cost method of accounting. PFI performs accounting, tax, administrative,
computer operations and shareholder relations activities for Amerac. In
July 1995, the Company's interest in PFI increased from 15% to 26%; thus,
commencing in 1996, the Company began accounting for its investment in PFI
on the equity method of accounting.
3. INDEBTEDNESS
On May 12, 1995, the Company entered into a $15 million revolving
line of credit agreement with BankOne, Texas National Association ("Bank
Credit Agreement"). The Bank Credit Agreement is a two-year facility with
interest due monthly and principal due at May 31, 1997. The Bank Credit
Agreement is secured by all of the Company's oil and gas properties, and
contains various restrictive covenants which may, if not met, cause the
company to be in default or reduce its access to additional borrowings. At
March 31, 1996, $9,547,000 was outstanding under the Bank Credit Agreement,
accruing interest at the BankOne Texas Base Rate plus three quarter percent
(9.25%) at March 31, 1996).
In conjunction with a January 1996 acquisition of Fremont Energy
Corporation (the "Fremont Acquisition"), the Bank Credit Agreement was
amended on January 16, 1996, to, among other things, increase the borrowing
base to $10.6 million and a mandatory reduction of $185,000 each month,
commencing February 1, 1996. At May 10, 1996, the Company had $9.7 million
outstanding under the Bank Credit Agreement. See Note 5.
6
<PAGE>
4. SHAREHOLDER'S EQUITY
COMMON STOCK
On March 19, the Company filed its 1996 proxy statement which includes
two significant issues to be votes on by the stockholders. The first item
relates to a proposal to convert Preferred Stock to Common Stock and is
discussed in detail in the following section related to Preferred Stock.
The second item included in the proxy statement is a proposal to increase
the number of authorized shares from 50 million to 100 million. As the
Company continues its acquisition efforts, shares of the Company's Common
Stock may be used to enhance the Company's ability to make acquisitions and
reduce risk from over-leveraging with debt. The Company, for example,
successfully used equity in the Fremont acquisition. Assuming the
successful conversion of the Senior Preferred, the Company will have,
issued and outstanding, 40.5 million shares of Common Stock.
PREFERRED STOCK
The Senior Preferred provides, among other things, that the Company
has the option to pay the quarterly dividends, which commenced January
1,1995, for the first two years in either cash or additional shares of
Senior Preferred. The Company currently plans to pay these dividends in
shares of Senior Preferred for the remainder of 1996. The Company issued
40,166 shares of Senior Preferred for the first quarter of 1996. Beginning
January 1, 1997, the Company has, under certain conditions, the option to
pay the dividends in cash or Common Stock. The annual dividend rate
increases from $.36 per share to $.60 at January 1, 2000. The Company has
the option of redeeming the Senior Preferred at face value at anytime. If
the Company fails to pay a quarterly dividend on the Senior Preferred, then
the holders of the Senior Preferred have the right to elect 80% of the
Board of Directors.
The first item included in the proxy statement is an amendment to the
Certificate of Designations of the Company's outstanding preferred stock.
This amendment provides for the conversion of each outstanding share of the
Senior Preferred into nine (9) shares of Common Stock. The Board of
Directors determined that it would be in the Company's best interest to
eliminate the Senior Preferred for the following reasons: (i) commencing in
1997, the Company will have to start paying dividends on the Senior
Preferred in cash except in certain circumstances, which diminishes cash
available for acquisitions, (ii) if the Company misses a dividend payment,
the holders of the Senior Preferred will have the right to elect 80% of the
Company's Board of Directors, (iii) the terms of the Senior Preferred
prohibit the Company from issuing any new preferred stock that is either
pari-passu or senior to it, (iv) conversion of the Senior Preferred into
Common Stock will increase the Common Stock float in the market and (v)
eliminate the liquidating value of the Senior Preferred.
5. ACQUISITION AND DIVESTITURE OF ASSETS
In May 1996, the Company signed an agreement of its intent to
acquire an interest in 12 wells in the Texas Gardens Field located in
Hidalgo County, Texas for $1.9 million. Working interests vary from 100% to
50.0387% with revenue interest varying from 70.3281% to 33.8581%. The
Company estimates net reserves attributable to the acquired interest to be
4.4 billion cubic feet equivalent. The Texas Gardens field is located in
the prolific Vicksburg Trend of the Texas Gulf Coast region and produces
from multiple sands. The Company plans a 3D seismic survey to locate
additional undrilled fault blocks.
7
<PAGE>
In January 1996, the Company acquired the Common Stock of Fremont
Energy Corporation ("Fremont"), an Oklahoma-based oil and gas company, for
$7 million paid in cash and 3.3 million shares of Common Stock of the
Company. Fremont has 131 wells located predominately in central Oklahoma
and Kansas concentrated in three major fields. Fremont's estimated net
proved reserves at December 31, 1995, totaled approximately 13.4 billion
cubic feet equivalent.
Also in January 1996, the Company announced the execution of an
agreement with American Trading and Production Corporation ("Atapco") for
the evaluation and development of the Company's 22,000 acre Sacatosa
project. Over 35 million barrels of oil has been produced from the
adjacent Sacatosa field, a shallow waterflood project. Atapco has acquired
50% of Amerac's interest in the acreage and has assumed operations.
These acquisitions will be accounted for under the purchase method and
results of operations related to these properties will be consolidated
beginning on the date the acquisition was effected.
The pro forma affect of the Fremont acquisition would not have had a
material impact on the results of operations for the three months ended
March 31, 1996. The pro forma impact of the Fremont acquisition, the 1995
Cosden acquisition, and the December 1995 sale of N.W. Arapahoe, assuming
the transactions had occurred at January 1, 1995, would have been as
follows for the three months ended March 31, 1995:
<TABLE>
<CAPTION>
March 31, 1995
--------------
<S> <C>
Revenues $ 1,337,000
Net Loss $ (33,000)
Net Loss per share $ (.01)
</TABLE>
8
<PAGE>
6. DEVELOPMENT ACTIVITIES
In 1996, the Company has completed three wells as a result of its 1996
development program. The Company has budgeted $4.7 million for additional
exploitation activities for the remainder of 1996. The development wells
recently completed were in the North Blackwell, Truby and Myrtle B Field
and initially tested at a combined total of 248 barrels of oil per day
("BOPD"). These wells represent the initial phase of the Company's
continuing strategy of enhancing its acquisitions through exploitation.
In the North Blackwell Field, the Company completed the Whiteaker #6 well
in the Ellenburger zone. This well was drilled as a result of the
Company's 3D seismic study and establishes additional development drilling
sites. The well tested at 153 BOPD. The Company has budgeted seven
additional wells to be drilled in 1996 in this field.
In the Truby Field, the Reeves #3 well was completed in the Strawn zone.
The well tested at 55 BOPD. The Company has budgeted four additional
wells in this field in 1996.
In the Myrtle B Field, the Leland #2 well was completed in the Cherry
Canyon zone. The well tested at 40 BOPD. The Company has budgeted three
additional wells in this field in 1996.
7. CONTINGENCIES
The Shurley Ranch Properties were the subject of litigation related to
the proper settlement of take-or-pay monies received by the Company from El
Paso Natural Gas Company (El Paso). The lower courts ruled in favor of the
Company, but this decision was appealed by El Paso to the Texas Supreme
Court. The Texas Supreme Court denied the appeal on December 9, 1993;
however, El Paso had 30 days to request a rehearing on the issue, which
they did not do. Therefore, on January 8, 1994, the aforementioned
litigation was finalized. The Company is obligated under the settlement
agreement to allow El Paso to recover the prepayment by delivering 65% of
the monthly gas production volumes at an imputed price of $3.25 per MMBTU
through February 1997. Beginning in March 1997, the company has the option
of 1) continuing to deliver gas until it is unable to meet the minimum
delivery requirement or 2) pay the remaining unrecovered balance, not to
exceed $360,000. Due to the uncertainty of El Paso's gas requirements, the
Company has reviewed, in conjunction with the annual year end reserve
analysis prepared by an independent petroleum engineering firm, the current
economic reserve life and production capabilities of the properties to
determine their ability to deliver the volumes necessary to satisfy the
remaining prepayment. The Company believes that its current contract
obligation of $618,000 is sufficient to cover any remaining obligation
under the settlement agreement at March 31, 1996.
The Company is subject to various contingencies which arise
primarily from interpretation of federal and state laws, and regulations
affecting the oil and gas industry. Such contingencies include differing
interpretations as to the prices at which oil and gas sales may be made,
the prices at which royalty owners may be paid for production from their
leases and other matters. Although management believes it has complied
with the various laws and regulations, administrative rulings and
interpretations thereof, adjustment could be required as new
interpretations and regulations are issued. In addition, production rates,
marketing and environmental matters are subject to regulation by various
federal and state agencies.
9
<PAGE>
AMERAC ENERGY CORPORATION
MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
FUTURE STRATEGY
With consummation of the Exchange Offer and if the conversion of
the Senior Preferred takes place, the Company expects to be in a better
position to raise new capital. The Company plans to concentrate initially
on acquisitions where a substantial portion of the value is in proved
developed producing reserves which are currently generating cash flow.
Management is relatively impartial as to the acquisition of gas versus oil.
Although management would prefer operatorship of the properties, they do
not intend to pass up any opportunities for that reason. At this point,
the Company has not restricted itself to seeking acquisitions in specific
geographical regions.
Along with the acquisition of properties, the Company will look
for ways to exploit existing and acquired reserves by increasing production
rates, accelerating reserve recoveries and, improving and extending the
economic viability of the properties. Exploitation activities may include
workovers, recompletions, new stimulation technology, development drilling,
horizontal drilling, pressure maintenance projects, and other methods of
enhanced recovery.
While the Company is actively pursuing these avenues, there can
be no assurance that it will have successful results in its acquisition,
exploitation and exploration efforts. There is a tremendous amount of
competition in the industry and the prices paid for in-place reserves make
it difficult to achieve attractive rates of return.
Results of Operations
---------------------
THREE MONTHS ENDED MARCH 31, 1995 COMPARED WITH THREE MONTHS ENDED MARCH
31, 1996
Oil and gas revenues increased from $824 thousand in the first
three months of 1995 to $2.3 million during the comparable period in 1996
as a result of an increase in oil and gas production and prices. Gas
production increased for the three months increased from approximately 2.97
Mmcf per day in the first three months of 1995 to approximately 6.5 Mmcf
per day for the comparable period in 1996, primarily as a result of the
acquisitions. Oil production increased for the three months increased from
approximately 179 barrels per day in the first three months of 1995 to
approximately 427 barrels per day for the comparable period in 1996,
primarily as a result of the acquisitions. The average prices received for
production increased for oil from $15.09 per Bbl during the first three
months of 1995 to $17.73 per Bbl during the comparable period in 1996 and
gas prices increased from an average of $1.38 per Mcf for the first three
months of 1995 production to an average of $2.43 per Mcf for the first
three months of 1996 production.
Lease operating expenses increased from $200 thousand in the
first three months of 1995 to $480 thousand for the comparable period in
1996. Operating expenses increased as a result of the additional wells
added through the acquisitions. Depreciation and amortization expense also
increased from $275 thousand during the first three months of 1995 to $515
thousand for the comparable period in 1996 as a result of an increase in
production and a decline in gas reserve from its offshore properties.
Administrative expenses increased from$345 thousand for the
first three months of 1995 to $423 thousand for the comparable period in
1996 primarily as a result of the increase in the operated wells.
10
<PAGE>
Interest expense increased from $54 thousand in the first three
months of 1995 to $200 thousand for the comparable period in 1996 as a
result of the incurrance of additional bank indebtedness to fund the
acquisitions and development drilling.
LIQUIDITY AND CAPITAL RESOURCES
The Company has improved its overall financial condition in the
last three years through restructuring its equity and its financing
capabilities with its bank. The Company however, must continually seek
additional sources of financing in order to support its acquisition
activities. The Company, as a result of its 1995 and 1996 acquisition
activities, has improved the overall reserve-to-production ratio of its
properties from 5.7 years to 6.7 years. The Company financed these
acquisitions, including the Fremont Acquisition, through the use of working
capital, bank borrowings and equity. The Company intends to finance the
acquisition of Texas Gardens with bank borrowings. The Company intends to
continue this process to add stockholder value. The Company's planned
capital expenditure for development and exploration in 1996 is
approximately $5.5 million. The Company currently plans to utilize
internally generated cash flows and bank financing to support this activity
together with other types of financing, which may be more expensive, such
as mezzanine, production payments and additional equity financing.
However, there is no assurance that the Company will be successful in
obtaining such additional financing. At this date, the Company has
essentially fully utilized its bank financing capabilities and, therefore,
future bank borrowings will be limited by its additions to its borrowing
base.
To provide additional capital for the Company to utilize in its
acquisition and exploitation program, the Company may seek to sell
additional equity. The market for the Company's equity is competitive and,
due to the size of the Company, the results of any such offering may not be
successful. Without such additional capital, the growth rate of the
Company may be restricted. Also, the sale of additional equity and the
utilization of equity in acquisitions may further limit the Company's
utilization of its tax net operating loss carryforward.
NEW ACCOUNTING STANDARDS
In March 1995, the FASB issued SFAS No. 121, "Accounting for the
Impairment of Long-Lived Assets and for Long-Lived Assets to be Disposed
Of" ("SFAS 121"), which is effective for fiscal years beginning after
December 15, 1995. Effective January 1, 1996, the Company adopted SFAS 121
which requires that long-lived assets (i.e., property, plant and equipment)
held and used by an entity be reviewed for impairment whenever events or
changes in circumstances indicate that the net book value of the asset may
not be recoverable. The Company did not have a material impact upon
adoption of SFAS 121 in the first quarter of 1996.
11
<PAGE>
PART II. OTHER INFORMATION
---------------------------
ITEM 1. LEGAL PROCEEDINGS
---------------------------
See Note 6 - The Consolidated Financial Statements.
ITEM 6. REPORTS ON FORM 8-K DURING THE FIRST QUARTER OF 1996
-------------------------------------------------------------
Form 8K filed on March 31, 1996 with respect to the acquisition of
Fremont Energy Corporation.
12
<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.
AMERAC ENERGY CORPORATION
(Registrant)
By: /s/ JEFFREY L. STEVENS
-----------------------------
Jeffrey L. Stevens
Senior Vice President and Chief
Financial Officer
Date: May 20, 1996
13
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM 10-QSB AND
IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1995
<PERIOD-START> JAN-01-1996
<PERIOD-END> MAR-31-1996
<CASH> 98,000
<SECURITIES> 0
<RECEIVABLES> 1,501,000
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 1,599,000
<PP&E> 29,234,000
<DEPRECIATION> 12,527,000
<TOTAL-ASSETS> 18,306,000
<CURRENT-LIABILITIES> 2,993,000
<BONDS> 7,954,000
0
1,827,000
<COMMON> 1,202,000
<OTHER-SE> 4,330,000
<TOTAL-LIABILITY-AND-EQUITY> 18,306,000
<SALES> 2,254,000
<TOTAL-REVENUES> 2,326,000
<CGS> 997,000
<TOTAL-COSTS> 997,000
<OTHER-EXPENSES> 423,000
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 200,000
<INCOME-PRETAX> 706,000
<INCOME-TAX> 0
<INCOME-CONTINUING> 706,000
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 706,000
<EPS-PRIMARY> .020
<EPS-DILUTED> .020
</TABLE>
