SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT UNDER TO SECTION 13 OR 15(D) OF
THE SECURITIES EXCHANGE ACT OF 1934
Date of Report (date of earliest event reported): September 3, 1997
Commission File Number: 0-14096
FORELAND CORPORATION
(Exact Name of Registrant as Specified in its Charter)
NEVADA 87-0422812
(State or other jurisdiction of (IRS Employer
incorporation or organization) Identification No.)
12596 W. BAYAUD AVENUE
SUITE 300, LAKEWOOD, COLORADO 80228
(Address of Principal Executive (Zip Code)
Offices)
Registrant's Telephone Number, including Area Code:
(303) 988-3122
N/A
(Former name, former address, and formal fiscal year, if changed since
last report)
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ITEM 5. OTHER EVENTS
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Foreland Corporation ("Foreland") announced on September 3, 1997, significantly
improved operating results and financial condition through the second fiscal
quarter ended June 30, 1997.
Revenues for the six months ending June 30, 1997, increased over 90% to
$1,326,959 as compared to the same period last year of $692,566. Revenues for
2nd Quarter 1997 compared to 2nd Quarter 1996, increased 66% to $626,711.
Foreland's net loss, before preferred stock dividends, of $311,000 for the
second quarter was 60% lower than the $508,885 reported in the second quarter in
the previous year. The second quarter 1997 net loss applicable to the Company
common shareholders was $0.06 per share as compared to $0.33 per share during
the quarter ended June 30, 1996.
Management of Foreland is very pleased with these second quarter results and
believes that the Company is continuing a four year trend of significant growth
in revenues as a result of increasing oil production from its Nevada fields.
In other news, Foreland also announced that preparations for the enhanced oil
recovery (EOR) program at Eagle Springs field are now accelerating. The Company
has received favorable results from test runs on the Eagle Springs crude which
indicates that the EOR program should perform as expected. A recovery forecast
based on the Eagle Springs field oil and reservoir properties indicates 8.8
million net barrels of additional oil can be expected from the EOR program.
Foreland's management believes that its EOR program at Eagle Springs field is a
low risk method to add significant reserves, increase production, and enhance
cash flow at very low cost, with an anticipated equipment and facilities cost of
$3 million, management believes that Foreland can add reserves at a cost of
$0.35 to $0.40 per barrel, less than 10% of the industry average.
Foreland is awaiting a temporary permit from Nevada to begin an injection test.
Equipment will be sized and ordered based on the results of the pilot program.
FINANCIAL HIGHLIGHTS
CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
THREE MONTHS SIX MONTHS
ENDED JUNE 30TH ENDED JUNE 30TH
1997 1996 1997 1996
Revenue $626,711 $376,858 $1,326,959 $ 692,566
Operating loss (308,765) (486,880) (532,981) (1,251,389)
Net loss (311,992) (508,885) (528,689) (1,318,458)
Net loss per common
share (0.06) (0.33) (0.11) (0.50)
Weighted average
number of shares
outstanding 7,342,500 4,891,800 7,296,100 4,890,300
CONSOLIDATED BALANCE SHEETS
JUNE 30, 1997 DEC. 31, 1996
(Unaudited)
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Current Assets $1,367,752 $3,198,703
Property and equipment, net 8,165,506 7,411,412
Other assets 154,161 150,342
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Total assets $9,687,419 $10,760,457
Current liabilities: $537,608 857,845
Long-term debt 765,575 1,018,247
Stockholders' equity 8,384,236 8,884,365
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Total liabilities and stockholders' equity $9,687,419 $10,760,457
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SIGNATURES
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Pursuant to the requirements of the Securities Exchange Act of 1934, as
amended, the Registrant has duly caused this report to be signed on its behalf
by the undersigned hereunto duly authorized.
Dated: September 5, 1997
FORELAND CORPORATION
By /s/ N. Thomas Steele, President
