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, 1995
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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
(State or other jurisdiction of (IRS Employer
Incorporation or organization) identification No.)
701 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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511 Second Avenue North, Nashville, TN. 37201
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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, 1995 was
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3,135,795.
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<PAGE>
APPALACHIAN OIL & GAS COMPANY, INC.
Form 10-Q
Six Months Ended December 31, 1995
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., and Subsidiary
Consolidated Balance Sheets
December 31, 1995 and June 30, 1995
<TABLE>
<CAPTION>
(Unaudited)
December June
31, 1995 30, 1995
------------ ------------
<S> <C> <C>
Assets
Current Assets:
Cash & Cash Equivalents $ -0- $ 12,602
Accounts Receivable Trade 125,419 72,648
------------ ------------
Total Current Assets 125,419 85,250
------------ ------------
Property & Equipment:
Oil & Gas Properties 626,095 626,095
Other Property & Equipment 776,444 747,053
------------ ------------
Total Property & Equipment 1,402,539 1,373,148
Less Accumulated Depreciation,
Depletion & Amortization (859,589) (824,865)
------------ ------------
542,950 548,283
------------ ------------
Total Assets $ 668,369 $ 633,533
============ ============
Liabilities & Stockholders' Equity
Current Liabilities:
Cash in Bank Overdraft $ 45,535 $ -0-
Current Portion of Long-Term Debt 30,000 32,628
Notes Payable - Related Parties 176,200 138,500
Accounts Payable:
Trade 29,756 24,674
Royalties 7,625 44,193
Transported Gas 10,608 51,418
Accrued Expenses 4,233 5,352
------------ ------------
Total Current Liabilities 303,957 296,765
Long Term Debt Less Current Portion 84,491 96,862
------------ ------------
Total Liabilities 388,448 393,627
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Commitments & Contingencies:
Stockholders' Equity:
Common Stock, Par Value $.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 (1,565,779) (1,605,794)
------------ ------------
Total Stockholders' Equity 279,921 239,906
------------ ------------
$ 668,369 $ 633,533
============ ============
</TABLE>
See Accompanying Notes
<PAGE>
Appalachian Oil & Gas Company, Inc., and Subsidiary
Consolidated Statement of Operations
(Unaudited)
<TABLE>
<CAPTION>
Three-month Periods Six-month Periods
Ended December 31, Ended December 31,
1995 1994 1995 1994
------------ ------------ ------------ ------------
<S> <C> <C> <C> <C>
Revenues:
Oil & Gas Sales $ 115,707 $ 111,058 $ 215,385 $ 250,063
Drilling Programs -0- -0- -0- 2,418
Other 35 863 1,752 5,868
------------ ------------ ------------ ------------
Total Revenues 115,742 111,921 217,137 258,349
------------ ------------ ------------ ------------
Costs & Expenses:
Cost of Drilling Programs -0- -0- -0- -0-
Other Operating Expenses 23,661 41,360 61,316 94,150
Depreciation, Depletion &
Amortization 17,362 21,187 34,724 43,119
Interest 4,018 5,347 9,502 11,014
General & Administrative 25,644 89,638 71,581 160,108
Loss on Sale of Assets -0- 11,545 -0- 11,545
------------ ------------ ------------ ------------
Total Costs & Expenses 70,685 169,077 177,123 319,936
------------ ------------ ------------ ------------
Net Income (Loss) Before
Minority Interest 45,057 (57,156) 40,014 (61,587)
Minority Interest -0- (9) -0- (10)
------------ ------------ ------------ ------------
Net Income (Loss) $ 45,057 $ (57,165) $ 40,014 $ (61,597)
============ ============ ============ ============
Earnings (Loss)
per Share $ .01 $ (0.0177) $ 0.01 $ (0.02)
------------ ------------ ------------ ------------
</TABLE>
See Accompanying Notes
<PAGE>
Appalachian Oil & Gas Company, Inc., and Subsidiary
Consolidated Statement of Cash Flows
(Unaudited)
<TABLE>
<CAPTION>
Six-Month Periods
Ended December 31,
1995 1994
------------ ------------
<S> <C> <C>
Cash Flows from Operating Activities
- ------------------------------------
Net Income (Loss) $ 40,014 $ (61,597)
Adjustments to Reconcile Net Income (Loss) to
Net Cash Provided by Operating Activities:
Depreciation, Depletion & Amortization 34,724 43,119
Rounding 1 -0-
Undistributed Income of Limited Partnership -0- 10
(Gain) Loss on Sale of Asset -0- 11,545
Changes in Operating Assets & Liabilities:
(Increase) Decrease in Accounts Receivable (52,771) 55,689
(Increase Decrease in Accounts Payable (72,296) (16,282)
Accrued Expenses (1,119) 513
Drilling Advances -0- -0-
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Net Cash Provided by Operating Activities (51,447) 32,997
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Cash Flows from Investing Activities
- ------------------------------------
Purchases of Property & Equipment (29,391) (11,810)
Purchases of Oil & Gas Properties -0- (11,550)
Investment in Joint Venture -0- (48,000)
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Net Cash Used in Operating Activities (29,391) (71,360)
------------ ------------
Cash Flows from Financing Activities
- ------------------------------------
Increase in Note Payable Stockholder 37,700 -0-
Proceeds from Notes Payable (2,628) -0-
Proceeds from Long-Term Debt (12,371) -0-
Principal Payments on Notes Payable -0- (7,500)
Principal Payments on Long-term Debt -0- (14,032) Dividends Paid -0- -0-
Increase in Cash in Bank-Overdraft 45,535 -0- ------------------------
Net Cash Used in Financing Activities 68,236 (21,532)
------------ ------------
Increase (Decrease) in Cash &
Cash Equivalents (12,602) (59,895)
Cash & Cash Equivalents,
Beginning of Period 12,602 66,602
------------ ------------
Cash & Cash Equivalents,
End of Period $ -0- $ 6,707
============ ============
</TABLE>
See Accompanying Notes
<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 December 31, 1996 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
----------------------------
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:------------------------
April 21, 1999 Raymond A. Connelly
<TABLE> <S> <C>
<ARTICLE> 5
<CIK> 0000732814
<NAME> APPALACHIAN OIL AND GAS COMPANY, INC.
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> JUN-30-1995
<PERIOD-END> DEC-31-1995
<CASH> 0
<SECURITIES> 0
<RECEIVABLES> 125,419
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 125,419
<PP&E> 1,402,539
<DEPRECIATION> 859,589
<TOTAL-ASSETS> 668,369
<CURRENT-LIABILITIES> 303,957
<BONDS> 0
0
0
<COMMON> 31,358
<OTHER-SE> 248,563
<TOTAL-LIABILITY-AND-EQUITY> 663,369
<SALES> 115,707
<TOTAL-REVENUES> 115,742
<CGS> 23,661
<TOTAL-COSTS> 0
<OTHER-EXPENSES> 47,024
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 45,057
<INCOME-TAX> 0
<INCOME-CONTINUING> 45,057
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 45,057
<EPS-PRIMARY> .01
<EPS-DILUTED> 0
</TABLE>
