SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF
THE SECURITIES EXCHANGE ACT OF 1934
For the quarter ended Commission file number:
March 31, 2000 2-99518-D
Colorado 74-2446999
(State of incorporation) (I.R.S. employer identification number)
GOLD HILL CORPORATION
2233 West Lindsey
Suite 117
Norman, Oklahoma 73069
(Address of principal (Zip code)
executive offices)
Registrant's telephone number, including area code:
(405) 329-0930
Securities registered pursuant to Section 12 (B) of the Act:
Title of each class: None
Name of each exchange on which registered: None
Securities registered pursuant to Section 12 (G) of the Act:
Common Stock, $0.002 Par Value (Title of each class)
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 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.
___XXX_____ ____________
Yes No
The number of shares of the common stock of the registrant outstanding:
4,809,322 shares
PART I
ITEM 1. BUSINESS
Results of Operations: For the quarter ending March 31, 2000, Gold
Hill
Corporation ("the Company") realized a loss which is detailed in the
financial section of this report. Most of the activity was directed
toward oil and gas drilling and studies.
Summary of Business: Quarter ended March 31, 2000.
As stated in our previous reports, Gold Hill abandoned all of its
mining claims and leases in the Elko, Nevada area due to failure to
discover economic amounts of gold to the depths drilled, which were up
to 1,800 feet in some holes.
Plans are presently being made to conduct extensive geological and
geophysical reconnaissance studies in northern Nevada for gold deposits
in the general area of the existing gold trends, such as the Carlin and
Battle Mountain trends. Field geological and geophysical studies will
be carried out during early summer and hopefully followed up with an
aggressive claim staking and drilling program. From our studies to
date, we believe there are many large gold deposits remaining to be
discovered in that area, even whole new trends. The Carlin gold trend
is the most famous with several individual deposits containing in
excess
of 30 million ounces. Although the current price of gold is around
$275
per ounce, we believe this price has a great deal of upside potential,
and that this is a good time to pursue gold exploration, particularly
in
Nevada, while exploration activity is at a low.
General Operations. Gold Hill will continue its conservative policy
of
avoiding debt and maintaining very low overhead costs. No salaries
will
be paid or allowed to accrue at this time, nor will Gold Hill be
charged
for the use of office space currently provided by its principals.
Private Placement. Gold Hill is continuing to make a private
placement
of 450,000 shares of its common stock in order to finance a portion of
the costs of the projects described herein. The price of the shares is
still $1.00 per share.
ITEM 2. PROPERTIES
Oil and Gas Properties. During the year, Gold Hill participated
with
Oil Creek Production to the extent of a 25% working interest in the
acquisition of oil and gas leases covering over 1,000 acres on a
wildcat
prospect located just north of Paden in east-central Oklahoma. The
objective targets were lower Pennsylvanian sands, Hunton lime, and
Wilcox sands of Ordovician age.
During January of this current year (2000), Oil Creek Production
drilled a hole to a depth of approximately 4,600 feet reaching the
Second Wilcox sand. The well was not successful with only slight shows
of gas in the Pennsylvanian sands and a non-commercial show of oil and
gas in the Hunton Lime, a current producer adjoining our leases to the
east. Upon geological review of the drilling results, it is the belief
of management that the well was drilled on the down side of a nearby
fault.
After extensive geological studies, the recommendation was made not to
drill another test on the acreage block. The only zone having any
merit
was probably limited to the Hunton lime which nearly always produces a
great deal of water in this region of Oklahoma where the prospect was
located. The cost of drilling salt water disposal wellwould be
prohibitively expensive, considering the limited economic potential.
The acreage block has been sold to a local exploration company
interested in dewatering the Hunton. Thus, Gold Hill was able to
salvage a small portion of its investment in the prospect.
The Company is currently participating in the search for other oil and
gas prospects in eastern Oklahoma and has identified several targets.
If the acreage is open, the leases thereon will be leased and a well
will be drilled as soon as possible. The minimum potential of any
wildcat prospect must be at least one million barrels of oil in order
to
meet Gold Hill's evaluation criteria. Gold Hill is also studying
prospects located in the West Texas area where the potential is much
greater.
Mining Properties. Gold Hill is continuing to evaluate the gold
potential.
ITEM 3. LEGAL PROCEEDINGS
There are no pending legal proceedings, to which Gold Hill is a party
or of which any of its property is the subject.
<TABLE>
BALANCE SHEET
<CAPTION>
March 31, 2000
Assets
<S> <C> <C>
Current Assets
Total Current Assets (Cash) $ 191,333
Fixed Assets
Furniture and Fixtures 138
Tangible Equipment 31,953
Accumulated Depreciation ( 25,958 )
_________________________
Total Assets $ 197,466
</TABLE>
<TABLE>
Liabilities and Equity
<CAPTION>
<S> <C> <C>
Current Liabilities $ none
Equity
Common Stock $ 597,400
Retained Earnings ( 566,953 )
Paid In Capital 247,904
Current Income (loss) ( 80,885 )
Total Liabilities & Equity $ 197,466
</TABLE>
ITEM 4. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS
Private Placement. Efforts to make private placement of restricted
stock at $1.00 per share will continue. The company plans to maintain
a
minimum price for the private placement restricted stock at $1.00 per
share for an additional six months, and that the effort would be
extended for that time. In the event of drilling successes, Gold Hill
may continue to market restricted stock in a private placement, but at
a
higher price per share, depending upon market conditions. In line with
its conservative policies, the management of Gold Hill will not market
more stock than its immediate capital needs in order to keep the number
of shares outstanding at a minimum.
Oil and Gas Leases. Gold Hill is looking at additional oil and gas
prospects to lease in the current year.
Salaries and Operations Overhead. It was agreed that Gold Hill will
continue its policy of paying no salaries to its officers and
directors,
and that it will continue to use the offices of its directors
rent-free.
Stock Options. It was agreed that no stock options will be offered at
this time.
SIGNATURES
Pursuant to the requirements of Sections 13 and 14 (D) of the
Securities
Exchange Act of 1934, the registrant has duly caused this report to be
signed on its behalf of Undersigned, there unto duly authorized.
GOLD HILL CORPORATION
