<PAGE>
FORM 10-Q
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
(Mark One)
[ X ] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended: December 31, 1994
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 1-8979
HONDO OIL & GAS COMPANY
(Exact name of registrant as specified in its charter)
Delaware 95-1998768
(State or other jurisdiction (I.R.S. Employer
of incorporation or organization) Identification No.)
410 East College Blvd, Roswell, New Mexico 88201
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (505) 625-8700
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 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 registrant has one class of common stock outstanding. As of February
10, 1995, 13,039,776 shares of registrant's $1 par value common stock
were outstanding.
1
HONDO OIL & GAS COMPANY
INDEX TO QUARTERLY REPORT ON FORM 10-Q
FOR THE THREE MONTHS ENDED DECEMBER 31, 1994
PAGE
----
PART I - FINANCIAL INFORMATION
ITEM 1 Financial Statements
Consolidated Balance Sheets as of
December 31, 1994 and September 30, 1994 3
Consolidated Statements of Operations for the
three months ended December 31, 1994 and 1993 4
Consolidated Statements of Cash Flows for the
three months ended December 31, 1994 and 1993 5
Notes to Consolidated Financial Statements 7
ITEM 2 Management's Discussion and Analysis of Financial
Condition and Results of Operations 12
PART II - OTHER INFORMATION
ITEM 6 Exhibits and Reports on Form 8-K 17
17
SIGNATURES
2
PART I
Item 1 FINANCIAL STATEMENTS
HONDO OIL & GAS COMPANY
CONSOLIDATED BALANCE SHEETS
(In Thousands Except Share Information)
December 31, September 30,
1994 1994
------------- -------------
(Unaudited)
ASSETS
Current assets:
Cash and cash equivalents $174 $1,141
Accounts receivable (Note 2) 473 5,477
Prepaid expenses and other 414 33
------------- -------------
Total current assets 1,061 6,651
Properties, net 10,865 10,855
Net assets of discontinued
operations (Note 3) 6,965 6,851
Other assets 522 551
------------- -------------
$19,413 $24,908
============= =============
LIABILITIES AND SHAREHOLDERS' EQUITY (DEFICIT)
Current liabilities:
Accounts payable $120 $196
Current portion of long-term debt 235 220
Accrued expenses and other (Note 4) 3,762 3,822
------------- -------------
Total current liabilities 4,117 4,238
Long-term debt, including $75,509 and
$77,755, respectively, payable to a
related party (Note 2) 79,414 81,888
Other liabilities, including $1,157 and
$2,354, respectively, payable to a related
party (Note 5) 4,071 5,463
------------- -------------
87,602 91,589
Shareholders' equity (deficit):
Common stock, $1 par value, 30,000,000
shares authorized; shares issued and
outstanding: 13,039,776 and 13,032,276,
respectively 13,040 13,032
Additional paid-in capital 44,021 43,972
Accumulated deficit (125,250) (123,685)
------------- -------------
(68,189) (66,681)
------------- -------------
$19,413 $24,908
============= =============
The accompanying notes are an integral part of these financial statements.
3
HONDO OIL & GAS COMPANY
CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)
(In Thousands Except Share and Per Share Data)
For the three months ended
December 31,
-----------------------------
1994 1993
------------- -------------
REVENUES
Sales and operating revenue $2 $329
Overhead reimbursement and other income 6 84
------------- -------------
8 413
------------- -------------
COSTS AND EXPENSES
Operating costs (reimbursements) (15) 304
Depreciation and amortization 42 78
General and administrative 389 693
Interest on indebtedness including $1,157 and
$1,131, respectively, to a related party 1,157 1,131
Loss on sale of assets -- 295
------------- -------------
1,573 2,501
------------- -------------
Loss from continuing operations
before income taxes (1,565) (2,088)
Income tax expense -- --
------------- -------------
Loss from continuing operations (1,565) (2,088)
Loss from discontinued operations (Note 3) -- --
------------- -------------
Net Loss ($1,565) ($2,088)
============= =============
Loss per share:
Continuing operations ($0.12) ($0.16)
Discontinued operations 0.00 0.00
------------- -------------
Loss per share ($0.12) ($0.16)
============= =============
Weighted average common shares outstanding 13,039,776 13,006,892
The accompanying notes are an integral part of these financial statements.
4
<TABLE>
<CAPTION>
HONDO OIL & GAS COMPANY
CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)
(In Thousands)
For the three months ended
December 31,
-----------------------------
1994 1993
------------- -------------
<S> <C> <C>
Cash flows from operating activities:
Pretax loss from continuing operations ($1,565) ($2,088)
Adjustments to reconcile pretax loss from continuing
operations to net cash used by continuing operations:
Depreciation and amortization 42 78
Loss on sale of assets -- 295
Accrued interest added to long-term debt 2,361 7
Changes in operating assets and liabilities:
Decrease (increase) in:
Accounts receivable 200 1,656
Inventory -- 468
Prepaid expenses and other (381) (252)
Other assets (1) (6)
Increase (decrease) in:
Accounts payable (76) (1,311)
Accrued expenses and other (34) (609)
Other liabilities (1,392) 1,697
------------- -------------
Net cash used by continuing operations (846) (65)
------------- -------------
Pretax loss from discontinued operations -- --
Adjustments to reconcile pretax loss from discontinued
operations to net cash used by discontinued operations:
Depreciation and amortization -- --
Gain on sale of assets -- --
Utilization of loss provisions (140) (118)
------------- -------------
Net cash used by discontinued operations (140) (118)
------------- -------------
Net cash used by operating activities (986) (183)
------------- -------------
</TABLE>
(Continued)
5
<TABLE>
<CAPTION>
HONDO OIL & GAS COMPANY
CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) (continued)
(In Thousands)
For the three months ended
December 31,
-----------------------------
1994 1993
------------- -------------
<S> <C> <C>
Cash flows from investing activities:
Proceeds from sale of assets 4,804 1,383
Capital expenditures (21) (672)
------------- -------------
Net cash provided by investing activities 4,783 711
------------- -------------
Cash flows from financing activities:
Proceeds from long-term borrowings 400 --
Principal payments on long-term debt (5,220) (210)
Issuance of common stock 56 --
------------- -------------
Net cash used by financing activities (4,764) (210)
------------- -------------
Net increase (decrease) in cash and cash equivalents
from all operations (967) 318
Cash and cash equivalents at the beginning of the period 1,141 601
------------- -------------
Cash and cash equivalents at the end of the period $174 $919
============= =============
</TABLE>
The accompanying notes are an integral part of these financial statements.
6
HONDO OIL & GAS COMPANY
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
December 31, 1994
(All Dollar Amounts in Thousands)
1) Summary of Significant Accounting Policies
------------------------------------------
(a) Basis of Consolidation and Presentation
---------------------------------------
The consolidated financial statements of Hondo Oil & Gas Company
(hereinafter referred to as "Hondo Oil" or "the Company") include the
accounts of all subsidiaries, all of which are wholly-owned. All
significant intercompany transactions have been eliminated. The
Hondo Company owns 78% of Hondo Oil's common stock. Lonrho Plc, an
English company, owns 50% of The Hondo Company.
The accompanying consolidated financial statements have been prepared
in accordance with generally accepted accounting principles for
interim financial information and with the instructions to Form 10-Q
and Article 10 of Regulation S-X. Accordingly, they do not include
all of the information and footnotes required by generally accepted
accounting principles for complete financial statements. There has
not been any change in the Company's significant accounting policies
for the periods presented. There have not been any significant devel-
opments or changes in contingent liabilities and commitments since
September 30, 1994, including the contingency described in Note 7.
In the opinion of management, all adjustments (consisting of normal
recurring accruals) considered necessary for a fair presentation have
been included. The results for these interim periods are not
necessarily indicative of results for the entire year. These
statements should be read in conjunction with the financial
statements and notes thereto included in the Company's Form 10-K for
the fiscal year ended September 30, 1994.
(b) Earnings Per Share
------------------
Net income (loss) per share amounts are computed using the weighted
average number of common shares and dilutive common equivalent shares
outstanding. The effect of common stock equivalents is not included
for periods with losses. Fully diluted per share amounts are the
same as primary per share amounts and, accordingly, are not presented.
7
HONDO OIL & GAS COMPANY
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
December 31, 1994
(All Dollar Amounts in Thousands)
1) Summary of Significant Accounting Policies (continued)
------------------------------------------------------
(c) Income Taxes
------------
As required by the provisions of SFAS No. 109, the Company changed
its method of accounting for income taxes from the provisions of SFAS
No. 96, "Accounting For Income Taxes", to the provisions of SFAS No.
109, "Accounting For Income Taxes", effective October 1, 1993. The
change in accounting method has had no material effect on the
Company's financial position, results of operations, or components of
income tax expense for the current or previous periods. Accordingly,
no cumulative effect of a change in accounting principle has been
recognized and the footnote disclosures required by SFAS No. 109 have
been omitted.
Under Statement 109, the liability method is used in accounting for
income taxes. Under this method, deferred tax assets and liabilities
are determined based on reversals of differences between financial
reporting and tax bases of assets and liabilities and are measured
using the enacted effective tax rates and laws that will be in effect
when the differences are expected to reverse.
The Company provides for income taxes in interim periods based on
estimated annual effective rates. The Company records current income
tax expense to the extent that federal, state or alternative minimum
tax is projected to be owed. The Company has investment tax credit
carryforwards of $3,665 which are accounted for by the flow-through
method.
Accounts Receivable and Long-term Debt
2) --------------------------------------
Under the terms of a Farmout Agreement, Amoco Colombia paid the
Company $5,000 (less withholding taxes of $200) in October 1994.
This amount was included in accounts receivable by the Company at
September 30, 1994. Also in October 1994, the Company paid $5,000 to
Lonrho Plc to reduce the balance of a loan from Lonrho Plc. At the
same time, Lonrho Plc made available $5,000 in the form of a facility
loan that may be drawn as needed by the Company. The Company has
drawn $400 as of December 31, 1994.
The balances of the Company's long-term debts to Lonrho Plc were also
increased by the addition of accrued interest of $2,354 during the
three months ended December 31, 1994. See Note 5.
8
HONDO OIL & GAS COMPANY
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
December 31, 1994
(All Dollar Amounts in Thousands)
3) Discontinued Operations
-----------------------
Effective March 31 and September 4, 1991, respectively, the Company
adopted plans of disposal for its refining and marketing and real
estate segments. On September 15, 1993, the Company executed an
agreement for the sale of substantially all of its refining and
marketing segment. The transaction closed on October 1, 1993.
Further proceeds are to be received when certain components of the
refinery equipment are sold by the buyer. See Note 7.
Operating losses of discontinued operations for the quarters ended
December 31, 1994 and 1993 were $114 and $119, respectively, and
were charged against loss provisions established in earlier periods.
The Company recorded no loss provisions for discontinued operations
for the quarters ended December 31, 1994 and 1993, respectively.
Interest expense included in the losses from discontinued operations
pertains only to debt directly attributable to the discontinued
segments. The operating losses from discontinued operations for the
quarters ended December 31, 1994 and 1993 include interest expense of
$69 and $72, respectively.
The balance of net assets of discontinued operations is comprised
solely of two parcels of land in the real estate segment. Changes in
this balance for the three months ended December 31, 1994 are as
follows:
Balance at September 30, 1994 $6,851
Valuation provisions recorded --
Valuation provisions used 114
-------------
Balance at December 31, 1994 (unaudited) $6,965
=============
9
HONDO OIL & GAS COMPANY
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
December 31, 1994
(All Dollar Amounts in Thousands)
4) Accrued Expenses
----------------
Accrued expenses consist of the following:
December 31, September 30,
1994 1994
------------- -------------
(Unaudited)
Drilling costs (a) $2,000 $2,000
Refining and marketing costs (Note 7) 1,518 1,544
Other 244 278
------------- -------------
$3,762 $3,822
============= =============
(a) Under the terms of a Farmout Agreement with Amoco Colombia,
the Company is obligated to pay $2,000 (approximately 10%) of
the costs to drill the Opon No. 4 well in Colombia. Drilling
is expected to commence in February 1995. The Company plans
to fund its obligation through draws on the facility loan
described in Note 2.
5) Other Liabilities
-----------------
In accordance with the terms of the Company's debts to Lonrho Plc,
accrued interest is either added to the outstanding principal or paid
by issuance of the Company's common stock on the interest due date,
at the option of Lonrho Plc. Accrued interest of $2,354 for the
six-month period ended September 30, 1994 was added to the
outstanding principal balances on October 1, 1994.
Other liabilities consist of the following:
December 31, September 30,
1994 1994
------------- -------------
(Unaudited)
Interest payable to Lonrho Plc $1,157 $2,354
City of Long Beach 1,534 1,534
Other 1,380 1,575
------------- -------------
$4,071 $5,463
============= =============
10
HONDO OIL & GAS COMPANY
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
December 31, 1994
(All Dollar Amounts in Thousands)
6) Cash Flow Information
---------------------
Cash interest expense paid, all of which arises from discontinued
operations, was $90 and $96 for the three months ended December 31,
1994 and 1993, respectively.
7) Contingencies
-------------
In the agreement for the sale of the Fletcher refinery, the Company
indemnified the buyer as to liabilities in excess of $300 for certain
federal and state excise taxes arising from periods prior to the
sale. Fletcher notified the Company in July 1994 that an audit for
California Motor Vehicle Fuels Tax was underway and a preliminary
review by present Fletcher employees indicated that a significant
liability might exist. The Company retained a consultant to evaluate
the contingent liability. In September 1994, the Company accrued
$1,400 as a result of the consultant's evaluation. The State of
California's audit is still in process and could result in a
liability different from the amount accrued when concluded.
11
Item 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS
GENERAL DISCUSSION
The Company's principal asset is its interest in the Opon Association
Contract (the "Opon Contract"), an exploration concession for an area in
the Middle Magdalena Valley in Colombia, South America. No revenues are
currently being generated and none are expected until the spring of 1996 at
the earliest.
Opon Exploration
----------------
Hondo Magdalena Oil & Gas Limited ("Hondo Magdalena"), a wholly-owned
subsidiary, became involved in the Opon Contract through a farmout
agreement with Opon Development Company ("ODC") in 1991. In August 1993,
Hondo Magdalena and ODC entered into a Farmout Agreement under which Amoco
Colombia Petroleum Company ("Amoco Colombia") earned a participating
interest in the Opon Contract. Amoco Colombia, Hondo Magdalena and ODC now
have interests of 60%, 30% and 10%, respectively. Amoco Colombia assumed
the role of operator from Hondo Magdalena on March 1, 1994.
In September 1994, Amoco Colombia and Hondo Magdalena announced the test
results of the Opon No. 3 well. The well tested at a rate of 45 million
cubic feet of natural gas and 2,000 barrels of condensate daily through a
42/64-inch opening at the surface with 6,000 pounds-per-square-inch flowing
tubing pressure. The well was drilled to a depth of 12,710 feet and
produced from 1,118 feet of perforations over the interval from 10,018 feet
to 12,348 feet within the La Paz formation. Downhole restrictions
prevented the well from testing at higher rates.
Amoco Colombia will pay all but $2.0 million of Hondo Magdalena's costs
related to the sixth-year obligations under the Opon Contract, a La Paz
formation well which must commence drilling by July 13, 1995. Site
preparation for this well, the Opon No. 4 well, is nearly complete and
drilling is expected to commence in February 1995. Amoco Colombia will
have an option to withdraw and relinquish its interest in the Association
Contract after the drilling of the Opon No. 4 well.
With completion of the Opon No. 3 well, which discovered potentially
significant reserves of natural gas and condensate, the first obstacle in
securing the Company's future has been overcome. Efforts have begun
towards timely and successful completion of the Opon No. 4 well, assessment
of the size of the hydrocarbon resources, obtaining facilities for
processing and transporting the production, securing contracts for sale of
the production, and further exploration and development activities.
However, each of these activities needs to be successfully completed before
the Company's long-term future can be secure. Most of these activities
will require additional capital which the Company does not have at present.
See Liquidity and Capital Resources.
12
Domestic Activities
-------------------
The Company sold substantially all of its U.S. oil and gas assets in June
1992. During the subsequent three years, the Company has continually
reduced the scope of its domestic operations. The Company now employs five
persons and has no significant domestic oil and gas properties or owned
office facilities. Management believes the Company's overhead costs have
been reduced to the minimum level that will allow the efficient
administration of its continuing business.
See Liquidity and Capital Resources for a description of recent changes in
the terms and amounts of the Company's long-term debt.
Discontinued Operations
-----------------------
The Company has completed the disposal of its discontinued refining and
marketing assets. Further proceeds, currently estimated at $0.4 million,
are to be received when certain components of the refinery equipment are
sold by the buyer. In the agreement for the sale of the Fletcher refinery,
the Company indemnified the buyer as to liabilities in excess of $0.3
million for certain federal and state excise taxes arising from periods
prior to the sale. In September 1994, the Company accrued a contingent
liability of $1.4 million for the indemnification because of the
preliminary results of an audit for California Motor Vehicle Fuels Tax.
The audit could result in a liability different from the amount accrued,
when concluded. See Liquidity and Capital Resources, below.
Included in the Company's discontinued real estate operations are two
parcels of real estate in California: the 11 acre Via Verde Bluffs property
in the City of San Dimas and the 105 acre Valley Gateway property in the
City of Santa Clarita. Management began an effort to sell these properties
in 1991. The Company executed a contract for the sale of Via Verde Bluffs
effective September 30, 1994 for a minimum purchase price of $2.8 million.
The transaction is subject to certain contingencies and is scheduled to
close in the summer of 1995. In 1993, the Company suspended a development
plan for the Valley Gateway property, a former refinery site, due to the
Company's limited cash resources and poor market conditions in California.
As described in Item 1 of the Company's 1994 Annual Report on Form 10-K and
Part II, Item 1 of this Form 10-Q, the Company estimates that $2.0 million
would be incurred in completing existing environmental remediation plans
for the Valley Gateway property. Management intends to sell the property
without incurring these costs by reducing the purchase price. The Company
listed the Valley Gateway property with a broker during 1994. The Company
has had several inquiries, but no offers have been received.
13
Other
-----
As more fully described in Item 5 of the Company's 1994 Annual Report on
Form 10-K, the Company does not fully meet all of the guidelines of the
American Stock Exchange for continued listing of its shares because of
continuing losses and decreases in shareholders' equity. Management has
kept the American Stock Exchange fully informed regarding the Company's
present status and future plans. Although the Company does not or may not
meet all of the guidelines, to date, the American Stock Exchange has chosen
to allow the Company's shares to remain listed. However, no assurances can
be given that the Company's shares will remain listed on the Exchange in
the future.
RESULTS OF OPERATIONS
Results of continuing operations for the quarter ended December 31, 1994
amounted to a net loss of $1.6 million, or 12 cents per share. The Company
reported a net loss from continuing operations of $2.1 million, or 16 cents
per share, for the quarter ended December 31, 1993. No losses from
discontinued operations were reported for either period.
The Company sold substantially all of its domestic oil and gas operations
in June 1992 and has continued to reduce the scope of its domestic
operations since that time. As a result, historical results of continuing
operations (primarily domestic in nature) are not indicative of the
Company's expected future operating results (primarily foreign in nature).
Significant variances in the components of results of operations between
the quarters ended December 31, 1994 and 1993 result primarily from non-
recurring transactions in the quarter ended December 31, 1993, including
the following:
- Sales and operating revenue includes recoupment of $0.3 million in
oil and gas revenues from a single payor arising from periods prior
to the asset sale in June 1992.
- Loss on sale of assets includes $0.2 million from the sale of the
last significant oil and gas asset not included in the June 1992
asset sale.
- Overhead reimbursement and other income includes $0.1 million for
services as operator of the Opon Association Contract.
- Operating expenses (reimbursement) includes $0.3 million arising
from a pipe inventory obsolescence charge.
The decrease in general and administrative expense of $0.3 million between
the quarters arises primarily from reductions in the number of employees
and insurance costs.
Operating losses of discontinued operations, which are charged against loss
provisions established in earlier periods, amounted to $0.1 million for
each of the quarters ended December 31. No new loss provisions have been
recorded in either quarter.
14
LIQUIDITY AND CAPITAL RESOURCES
During the three months ended December 31, 1994, cash inflows of $4.8
million, $0.4 million, and $0.1 million arose from the sale of assets,
borrowings from Lonrho Plc under existing loan agreements, and issuance of
common stock as a result of the exercise of stock options, respectively.
The Company utilized cash of $0.9 million and $0.1 million to finance
continuing and discontinued operations, respectively, $5.0 million to
reduce the balance of loans from Lonrho Plc (see below), and made scheduled
debt repayments of $0.2 million. At December 31, 1994, the Company had
cash balances of $0.2 million.
In October 1994, the Company received $4.8 million, net of withholding
taxes, from Amoco Colombia in accordance with the Farmout Agreement. Also
in October 1994, the Company paid $5.0 million to Lonrho Plc to reduce the
balance of outstanding loans from Lonrho Plc, and future interest expense.
At the same time, Lonrho Plc made available $5.0 million in the form of a
facility loan that may be drawn as needed by the Company. This facility
loan will be used to fund Hondo Magdalena's $2.0 million contribution to
the costs of drilling the Opon No. 4 well, to satisfy any liability which
may ultimately arise from the state excise tax audit described above, and
for other business activities. As of December 31, 1994, the Company has
drawn $0.4 million of the facility loan and has $4.6 million available for
future use.
In November 1994, the Company obtained extensions of the maturity of its
debts to Lonrho Plc. The maturity of all loans from Lonrho Plc has been
extended from 1995 to not earlier than October 1, 1996. Approximately
$49.0 million of the Company's long-term debt becomes due in fiscal year
1997 under the revised terms. The Company does not have funds to meet
these obligations, or subsequent long-term debt obligations, at present.
Management believes that the Company will be able to repay, refinance, or
restructure these amounts subsequent to establishing proven reserves and
production at the Opon project.
Based upon the Company's budget and current projections, existing cash and
available facilities are expected to be sufficient to finance the Company's
capital expenditure obligations under the Opon Contract and the Farmout
Agreement, and other business activities, during fiscal 1995. However,
subsequent to the completion of the Opon No. 4 well (estimated in the
summer of 1995), significant additional funds will be required for the
Company's share of future capital expenditures for facilities for
processing and transporting the production, operator's overhead costs, and
further exploration and development activities. Cash from operations are
not expected to be a source of funds until the Opon Project begins
commercial production.
15
Management has held preliminary discussions with a number of lenders
regarding financing of the Company's future obligations for the Opon
project. The Company's management believes that, subject to successful
completion of the Opon No. 4 well and securing a market for the Opon
project's production, additional debt or equity funds will become available
to the Company. Obtaining additional sources of funds is vital to the
Company's long-term ability to successfully develop the Opon Project.
The Company believes that the Opon Project has significant potential to be
developed in conjunction with Colombia's planned natural gas transmission
network and that the Company's future revenues will be derived from this
source. A number of challenges remain, the most important of which is
obtaining permanent financing, before the Company's long-term future can be
secure. There can be no assurance that the Opon Project will be
successfully developed or that additional debt or equity funds will become
available in the future.
16
PART II
Item 6 EXHIBITS AND REPORTS ON FORM 8-K
(a) Exhibits required by Item 601 of Regulations S-K are incorporated
by reference. Refer to Exhibit Index below.
(b) One report on Form 8-K was filed during the quarter ended
December 31, 1994:
1) Form 8-K filed November 29, 1994 reported deferrals of the
maturities of the Company's debts to Lonrho Plc to not earlier
than October 1, 1996 and the creation of a $5.0 million loan
facility from Lonrho Plc.
SIGNATURES
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.
HONDO OIL & GAS COMPANY
(Registrant)
Date: February 13, 1995 /s/ Stanton J. Urquhart
_________________ _______________________
Stanton J. Urquhart
Vice President and
Controller
The above officer of the registrant has signed this report as its duly
authorized representative and as its chief accounting officer.
EXHIBIT INDEX
Exhibit
Number Subject
_______ __________________________________
27 Financial Data Schedule
17
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND> This schedule contains summary financial
information extracted from Hondo Oil & Gas
Company's Form 10-Q for the period identified
below. This information is qualified in its
entirety by reference to such financial statements.
</LEGEND>
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> SEP-30-1995
<PERIOD-END> DEC-31-1994
<CASH> 174
<SECURITIES> 0
<RECEIVABLES> 473
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 1,061
<PP&E> 10,865
<DEPRECIATION> 0
<TOTAL-ASSETS> 19,413
<CURRENT-LIABILITIES> 4,117
<BONDS> 79,414
<COMMON> 13,040
0
0
<OTHER-SE> (81,229)
<TOTAL-LIABILITY-AND-EQUITY> 19,413
<SALES> 2
<TOTAL-REVENUES> 8
<CGS> 0
<TOTAL-COSTS> (15)
<OTHER-EXPENSES> 431
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 1,157
<INCOME-PRETAX> (1,565)
<INCOME-TAX> 0
<INCOME-CONTINUING> (1,565)
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (1,565)
<EPS-PRIMARY> (0.12)
<EPS-DILUTED> 0.00
</TABLE>
