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 March 31, 1998
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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 March 31, 1998 was 3,135,795.
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<PAGE>
APPALACHIAN OIL & GAS COMPANY, INC.
Form 10-Q
Nine Months Ended March 31, 1998
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
March 31, 1998 & June 30, 1997
<TABLE>
<CAPTION>
March June
31, 1998 30, 1997
------------ ------------
<S> <C> <C>
Current Assets
- --------------
Cash & Cash Equivalents $ 1,713 $ 36,954
Accounts Receivable - Trade 8,361 17,855
------------ ------------
Total Current Assets 10,074 54,809
Property & Equipment
- --------------------
Oil & Gas Properties 140,184 140,184
Other Property & Equipment 326,574 326,574
------------ ------------
Total Property & Equipment 466,758 466,758
Less Accumulated Depreciation, Depletion
& Amortization 343,416 330,692
------------ ------------
Total 123,342 136,066
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Total Assets $ 133,416 $ 190,875
============ ============
</TABLE>
See Accountant's Note
<PAGE>
Appalachian Oil & Gas Company, Inc.
Balance Sheets -Continued-
March 31, 1998 & June 30, 1997
<TABLE>
<CAPTION>
March June
31, 1998 30, 1997
------------ ------------
<S> <C> <C>
Current Liabilities
- -------------------
Accounts Payable - Trade $ -0- $ 338
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Commitments & Contingencies
- ---------------------------
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 ( 1,712,284) ( 1,655,163)
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Total Stockholders' Equity 133,416 190,537
------------ ------------
Total Liabilities & Stockholders' Equity $ 133,416 $ 190,875
============ ============
</TABLE>
See Accountant's Notes
<PAGE>
Appalachian Oil & Gas Company, Inc.
Statement of Operations
For the Three Month Periods Ended March 31, 1998 & 1997
and the Nine Month Periods Ended March 31, 1998 & 1997
<TABLE>
<CAPTION>
For the Three Month For the Nine Month
Periods Ended March 31, Periods Ended March 31,
1998 1997 1998 1997
------------ ------------ ------------ ------------
<S> <C> <C> <C> <C>
Revenues
- --------
Oil & Gas Sales $ -0- $ 7,311 $ 16,930 $ 26,749
Other 37 600 550 2,855
------------ ------------ ------------ ------------
Total Revenues 37 7,911 17,480 29,604
Costs & Expenses
- ----------------
Other Operating Expenses -0- 609 18,321 8,793
Depreciation, Depletion &
Amortization 4,241 4,241 12,724 12,723
General & Administrative 13,724 23,635 43,555 71,919
------------ ------------ ------------ ------------
Total Costs & Expenses 17,965 28,485 74,600 93,435
------------ ------------ ------------ ------------
Net Income (Loss) ($ 17,928) ($ 20,574) ($ 57,120)($ 63,831)
============ ============ ============ ============
Earnings Per Share $ .00 $ .00 $ .00 $ .00
</TABLE>
See Accompanying Notes
<PAGE>
Appalachian Oil & Gas Company, Inc.
Statement of Cash Flows
For the Nine Month Periods Ended March 31, 1998 & 1997
<TABLE>
<CAPTION>
For the Nine Month
Periods Ended March 31,
1998 1997
------------ ------------
<S> <C> <C>
Cash Flows from Operating Activities
- ------------------------------------
Net Income (Loss) ($ 57,120) ($ 63,831)
Adjustments to Reconcile Net Income
(Loss) to Net Cash Provided by
Operating Activities
Depreciation, Depletion, & Amortization 12,724 12,723
Rounding ( 1) 1
Changes in Operating Assets & Liabilities
(Increase) Decrease in Accounts Receivable 9,494 27,784
Increase (Decrease)in Accounts Payable ( 338) ( 12,345)
Increase (Decrease) in Accrued Expenses -0- ( 1,662)
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Net Cash Provided by Operating Activities ( 35,241) ( 37,330)
Cash Flows from Investing Activities
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Proceeds from Sale of Assets -0- -0-
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Net Cash Used in Investing Activities -0- -0-
Cash Flows from Financing Activities -0- -0-
- ------------------------------------ ------------ ------------
Net Cash Used in Financing Activities -0- -0-
Increase (Decrease) in Cash & Cash Equivalents ( 35,241) ( 37,330)
Cash & Cash Equivalents, Beginning of Period 36,954 104,123
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Cash & Cash Equivalents, End of Period $ 1,713 $ 66,793
============ ============
</TABLE>
<PAGE>
Appalachian Oil & Gas Company, Inc.
Note to Financial Statements
NOTE #1 - Statement Preparation
- -------------------------------
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
- -------------------------------
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
- ---------------------
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 20, 1999 /S/ Raymond A. Connelly
Date:------------------ By: ------------------------
Raymond A. Connelly
<TABLE> <S> <C>
<ARTICLE> 5
<CIK> 0000732814
<NAME> APPALACHIAN OIL & GAS COMPANY, INC.
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> JUN-30-1998
<PERIOD-END> MAR-30-1998
<CASH> 1,713
<SECURITIES> 0
<RECEIVABLES> 0
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 10,074
<PP&E> 466,758
<DEPRECIATION> 343,416
<TOTAL-ASSETS> 133,416
<CURRENT-LIABILITIES> 0
<BONDS> 0
0
0
<COMMON> 31,358
<OTHER-SE> 102,058
<TOTAL-LIABILITY-AND-EQUITY> 133,416
<SALES> 0
<TOTAL-REVENUES> 37
<CGS> 0
<TOTAL-COSTS> 0
<OTHER-EXPENSES> 17,965
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> (17,928)
<INCOME-TAX> 0
<INCOME-CONTINUING> (17,928)
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (17,928)
<EPS-PRIMARY> .00
<EPS-DILUTED> 0
</TABLE>
