FORM 10-QSB
SECURITIES AND EXCHANGE COMMISSION
Washington, D. C. 2054
(X) QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended December 31, 1997
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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 0-11732
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APPALACHIAN OIL & GAS COMPANY, INC
(Exact name of registrant as specified in its charter)
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UTAH 87-0382031
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(State or other jurisdiction of (IRS Employer
Incorporation or organization) identification No.)
511 Second Avenue North, Nashville, TN 37201
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(Address of principal executive offices) (Zip Code)
Registrants telephone number, including area code (615) 254-4789
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Former name, former address and former fiscal year, if changed since last
report.
Indicate by check mark whether the registrant (1) has filed all reports
required to be filed by Section 13 or 15(d) of the Securities Exchange Act
of 1934 during the preceding 12 months (or such shorter period that the
registrant was required to file such report(s), and (2) has been subject to
such filing requirements for the past 90 days.
Yes X No
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The total number of shares outstanding as of December 31, 1997 was
3,135,795. -----------------
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<PAGE>
APPALACHIAN OIL & GAS COMPANY, INC.
Form 10-Q
Six Months Ended December 31, 1997
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<CAPTION>
INDEX
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Page
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PART I Financial Information
ITEM 1 Financial Statements
Balance Sheets . . . . . . . . . . . . . . . . . . . . . . . . 2
Statements of Operations . . . . . . . . . . . . . . . . . . . 4
Statements of Cash Flows . . . . . . . . . . . . . . . . . . . 5
Note to Financial Statements . . . . . . . . . . . . . . . . . 6
Management's Discussion and Analysis of
the Statement of Income. . . . . . . . . . . . . . . . . . . . 7
PART II Other Information
ITEM 1 Legal Proceedings. . . . . . . . . . . . . . . . . . . . . 8
ITEM 2 Changes in Securities. . . . . . . . . . . . . . . . . . . 8
ITEM 3 Defaults upon Senior Securities. . . . . . . . . . . . . . 8
ITEM 4 Submission of Matters to a Vote of Security Holders. . . . 8
ITEM 5 Other Information. . . . . . . . . . . . . . . . . . . . . 8
ITEM 6 Exhibits and Reports on Form 8-K . . . . . . . . . . . . . 8
SIGNATURES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9
<PAGE>
Appalachian Oil & Gas Company, Inc.
Balance Sheets
December 31, 1997 & June 30, 1997
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<TABLE>
<CAPTION>
December June
31, 1997 30, 1997
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Current Assets
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Cash & Cash Equivalents $ 14,616 $ 36,954
Accounts Receivable - Trade 9,145 17,855
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Total Current Assets 23,761 54,809
Property & Equipment
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Oil & Gas Properties 140,184 140,184
Other Property & Equipment 326,574 326,574
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Total Property & Equipment 466,758 466,758
Less Accumulated Depreciation, Depletion
& Amortization 339,175 330,692
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Total 127,583 136,066
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Total Assets $ 151,344 $ 190,875
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</TABLE>
See Accompanying Notes
<PAGE>
Appalachian Oil & Gas Company, Inc.
Balance Sheets -Continued-
December 31, 1997 & June 30, 1997
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<CAPTION>
December June
31, 1997 30, 1997
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Current Liabilities
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Accounts Payable - Trade $ -0- $ 338
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Total Current Liabilities -0- 338
Commitments & Contingencies
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Stockholders' Equity
Common Stock, Par Value $0.01 Per Share,
100,000,000 Shares Authorized, 3,135,795
Shares Issued & Outstanding 31,358 31,358
Additional Paid In Capital 1,814,342 1,814,342
Retained Deficit ( 1,694,356) ( 1,655,163)
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Total Stockholders' Equity 151,344 190,537
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Total Liabilities & Stockholders' Equity $ 151,344 $ 190,875
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</TABLE>
See Accompanying Notes
<PAGE>
Appalachian Oil & Gas Company, Inc.,
Consolidated Statement of Operations (Unaudited)
For the Six Month Periods Ended December 31, 1997 & 1996
and the Three Month Periods Ended December 31, 1997 & 1996
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<CAPTION>
Six Month Periods Ended Three Month Periods Ended
December December December December
31, 1997 31, 1996 31, 1997 31, 1996
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<S> <C> <C> <C> <C>
Revenues
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Oil & Gas Sales $ 16,930 $ 19,438 $ 3,305 $ 8,809
Other 514 2,255 192 1,157
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Total Revenues 17,444 21,693 3,497 9,966
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Costs & Expenses
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Other Operating Expenses 18,321 8,184 10,876 5,176
Depreciation, Depletion
& Amortization 8,483 8,482 4,241 4,241
General & Administrative 29,832 48,284 15,799 28,941
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Total Costs &
Expenses 56,636 64,950 30,916 38,358
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Net Income (Loss) ($ 39,192) ($ 43,257) ($ 27,419) ($ 28,392)
============ ============ ============ ============
Earnings (Loss)
Per Share $ .00 $ .00 $ .00 $ .00
</TABLE>
See Accompanying Notes
<PAGE>
Appalachian Oil & Gas Company, Inc., and Subsidiary
Consolidated Statement of Cash Flows (Unaudited)
For the Six Month Periods Ended December 31, 1997 & 1996
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<CAPTION>
Six-Month Periods
Ended December 31,
1997 1996
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Cash Flows from Operating Activities
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Net Income (Loss) ($ 39,192) ($ 43,257)
Adjustments to Reconcile Net Income (Loss) to
Net Cash Provided by Operating Activities:
Depreciation, Depletion & Amortization 8,483 8,482
Rounding ( 1) 0
Changes in Operating Assets & Liabilities:
(Increase) Decrease in Accounts Receivable 8,710 22,575
Increase (Decrease) in Accounts Payable ( 338) ( 12,345)
Increase (Decrease) in Accrued Expenses -0- ( 1,500)
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Net Cash Provided by Operating Activities ( 22,338) ( 26,045)
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Cash Flows from Investing Activities -0- -0-
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Net Cash Used in Operating Activities -0- -0-
Cash Flows from Financing Activities -0- -0-
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Net Cash Used in Financing Activities -0- -0-
Increase (Decrease) in Cash &
Cash Equivalents ( 22,338) ( 26,045)
Cash & Cash Equivalents,
Beginning of Period 36,954 104,123
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Cash & Cash Equivalents,
End of Period $ 14,616 $ 78,078
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</TABLE>
See Accompanying Notes
<PAGE>
Appalachian Oil & Gas Company, Inc.
Notes to Financial Statements
NOTE #1 - Statement Preparation
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The Company has prepared the accompanying financial statements with interim
financial reporting requirements promulgated by the Securities & Exchange
Commission. The information furnished reflects all adjustments which are,
in the opinion of management, necessary for a fair presentation of
financial position and results of operations.
The financial statements should be read in conjunction with the
consolidated financial statements and notes thereto included in the
Company's June 30, 1997 10-K report.
<PAGE>
MANAGEMENT'S DISCUSSION AND ANALYSIS
Liquidity and Capital Resources
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On February 1, 1996, the Company sold 60.00% of all its rights, title and
interest to its oil leases and related equipment to K. Petroleum, Inc., an
Ohio Corporation. It is the Company's intention to sell the remaining
40.00% of these assets as well.
The Company no longer operates or directs the operations of the oil and gas
wells and is dependent upon K-Petroleum, Inc., for its 40% of revenues
(royalties) from the well production.
The Company hopes to sell the remaining 40% and seeks to find a new
business activity. The Company believes it has sufficient cash for the
next years operations.
Results of Operations
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The Company now has limited cash flows from its 40% interest in the oil and
gas wells. It seeks to obtain from K-Petroleum, Inc., production report to
explain the dramatic decrease in gross revenues. To date K-Petroleum,
Inc., has resisted releasing these reports. The Company continues to use,
as frugally as possible, its cash reserves to meet the current expenses.
<PAGE>
PART II - OTHER INFORMATION
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Item 1 Legal Proceedings. . . . . . . . . . . . . . . . . . . . .None
Item 2 Changes in the Rights of
the Company's Security Holders . . . . . . . . . . . . . .None
Item 3 Defaults by the Company on its Senior Securities . . . . .None
Item 4 Results of Votes of Security Holders . . . . . . . . . . .None
Item 5 Other Information. . . . . . . . . . . . . . . . . . . . .None
Item 6 Exhibits and Reports on Form 8-K . . . . . . . . . . . . .None
<PAGE>
SIGNATURES
Pursuant to the requirements of Section 13 or 15(d) 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.
/S/ April 21, 1999 /S/ Raymond A. Connelly
Date: ------------------- By: -----------------------
Raymond A. Connelly
/TEXT>
<TABLE> <S> <C>
<ARTICLE> 5
<CIK> 0000732814
<NAME> APPALACHIAN OIL AND GAS COMPANY, INC.
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> JUN-30-1997
<PERIOD-END> DEC-31-1997
<CASH> 14,616
<SECURITIES> 0
<RECEIVABLES> 9,145
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 23,761
<PP&E> 466,758
<DEPRECIATION> 339,175
<TOTAL-ASSETS> 151,344
<CURRENT-LIABILITIES> 0
<BONDS> 0
0
0
<COMMON> 31,358
<OTHER-SE> 119,986
<TOTAL-LIABILITY-AND-EQUITY> 151,344
<SALES> 16,930
<TOTAL-REVENUES> 17,444
<CGS> 18,321
<TOTAL-COSTS> 0
<OTHER-EXPENSES> 38,315
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> (39,192)
<INCOME-TAX> 0
<INCOME-CONTINUING> (39,192)
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (39,192)
<EPS-PRIMARY> .00
<EPS-DILUTED> 0
</TABLE>
