U.S. SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-KSB
(Mark One)
(X) ANNUAL REPORT UNDER SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934 [FEE REQUIRED]
For the fiscal year ended December 31, 1994
( ) TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934 (NO FEE REQUIRED)
For the transition period from...............to...............
Commission file number 0-14233
ENEX PROGRAM I PARTNERS, L.P.
(Name of small business issuer in its charter)
New Jersey 76-0175128
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
800 Rockmead Drive
Three Kingwood Place
Kingwood, Texas 77339
(Address of principal executive offices) (Zip Code)
Issuer's telephone number, including area code: (713) 358-8401
Securities registered under Section 12(b) of the Exchange Act: None
Securities registered under Section 12(g) of the Exchange Act:
Limited Partnership Interest
Check whether the issuer (1) filed all reports required to be filed by
Section 13 or 15(d) of the Exchange Act during the past 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
Check if there is no disclosure of delinquent filers in response to Item
405 of Regulation S-B is not contained in this form, and no disclosure will
be contained, to the best of registrant's knowledge, in definitive proxy or
information statements incorporated by reference in Part III of this Form 10-
KSB or any amendment to this Form 10-KSB.[x]
State issuer's revenues for its most recent fiscal year. $ 3,245,603
State the aggregate market value of the voting stock held by non-
affiliates computed by reference to the price at which the stock was sold, or
the average bid and asked prices of such stock as of a specified date within
the past 60 days (See definition of affiliate in Rule 12b-2 of the Exchange
Act):
Not Applicable
Documents Incorporated By Reference:
None
TABLE OF CONTENTS
FORM 10-KSB ANNUAL REPORT
FOR THE YEAR ENDED DECEMBER 31, 1994
ENEX PROGRAM I PARTNERS, L.P.
Item No. Part I Page
1 Description of Business I-1
2 Description of Property I-3
3 Legal Proceedings I-6
4 Submission of Matters to a Vote
of Security Holders I-6
Part II
5 Market for Common Equity and
Related Security Holder Matters II-1
6 Management's Discussion and Analysis
or Plan of Operation II-2
7 Financial Statements and Supplementary
Data II-4
8 Changes In and Disagreements With Accountants
on Accounting and Financial Disclosure II-14
Part III
9 Directors, Executive Officers, Promoters and
Control Persons; Compliance with Section 16(a)
of the Exchange Act III-1
10 Executive Compensation III-3
11 Security Ownership of Certain
Beneficial Owners and Management III-4
12 Certain Relationships and Related
Transactions III-4
13 Exhibits and Reports on Form 8-K III-4
Signatures S-1
Item 1. Description of Business
General
Enex Program I Partners, L.P. (the "Company") was formed under the New
Jersey Uniform Limited Partnership Law (1976) on October 10, 1985 for the
purpose of combining the twelve Enex Oil and Gas Income Program I Texas
Limited Partnerships (the "Partnerships"). On December 31, 1985, all twelve
partnerships contributed all their assets, subject to liabilities, to the
Company. The Company is continuing to operate on a combined basis in the same
manner as the original individual Partnerships. The total exchange value
(which does not purport to be market value) of the net assets transferred to
the Company was approximately $68,991,000. Units of limited partnership
interest in the Company ("Units") were allocated to the Partnerships based
upon the relative exchange value of the net assets transferred to the Company.
The limited partners and general partner, Enex Resources Corporation ("Enex"),
of the Partnerships were allocated units in the Company in accordance with the
dissolution and termination provisions of each Partnerships' agreement of
limited partnership.
The Company is engaged in the oil and gas business through the
ownership of various interests in producing oil and gas properties. If
warranted, the Company may further develop its oil and gas properties.
However, the Company does not intend to engage in significant drilling
activities. Such activities may be conducted, however, as an incidental part
of the management of producing properties or with a view toward enhancing the
value of producing properties. In no event will the Company engage in
exploratory drilling, or use any of the limited partners' net subscriptions
to fund drilling activities. Any developmental drilling will be financed
primarily through third party borrowings or with funds provided from
operations. The expenses of drilling, completing and equipping and operating
development wells are allocated 90% to the limited partners and 10% to the
general partner. See Note 1 to the Financial Statements for information
relating to the allocation of costs and revenues between the limited partners
and the general partner, Enex. The Company's operations are concentrated in
a single industry segment.
The principal executive office of the Company is maintained at Suite
200, Three Kingwood Place, Kingwood, Texas 77339. The telephone number at
this office is (713) 358-8401. The Company has no regional offices.
The Company has no employees. On March 1, 1995, Enex and its
subsidiaries employed 26 persons.
Marketing
The marketing of oil and gas produced by the Company is affected by a
number of factors which are beyond the Company's control, the exact nature of
which cannot be accurately predicted. These factors include the quantity and
price of crude oil imports, fluctuating supply and demand, pipeline and other
transportation facilities, the marketing of competitive fuels, state and
federal regulation of oil and gas production and distribution and other
matters affecting the availability of a ready market. All of these factors
are extremely volatile.
Environmental and Conservation Regulation
State regulatory authorities in the states in which the Company owns
producing properties are empowered to make and enforce regulations to prevent
waste of oil and gas and to protect correlative rights and opportunities to
produce oil and gas as between owners of a common reservoir. Each of such
regulatory authorities also regulates the amount of oil and gas produced by
assigning allowable rates of production, which may be increased or decreased
in accordance with supply and demand. Requirements regarding the prevention
and clean-up of pollution and similar environmental matters are also generally
applicable. The costs, if any, the Company may incur in this regard cannot
be predicted.
The existence of such regulations has had no material adverse effects
on the Company's operations to date, and the cost of compliance has not yet
been material. There are no material administrative or judicial proceedings
arising under such laws or regulations pending against the Company. The
Company is unable to assess or predict the impact that compliance with
environmental and pollution control laws and regulations may have on its
future operations, capital expenditures, earnings or competitive position.
Tax Laws
The operations of the Company are affected by the federal income tax
laws contained in the Internal Revenue Code of 1986, as amended (the "Code").
Under the Code, generally, the Company will report income from the sale of oil
and gas, against which it may deduct its ordinary business expenses,
depletion, depreciation and intangible drilling and development costs.
It is anticipated that most of the Company's income, if any, will be
from a "passive activity" for purposes of the Code. A passive activity
includes an activity in which the taxpayer does not materially participate,
including the ownership of a limited partnership interest, such as an interest
in the Company. "Passive income," however, does not include portfolio income
(i.e. dividend, interest, royalties, etc.). Although taxpayers generally may
not deduct losses or use tax credits derived from passive activities in an
amount greater than their income derived from such activities, if and to the
extent that the Company generates passive income, it will be available to
offset the limited partners' passive losses from other sources.
Partnerships with interests that are "publicly traded" are taxed as
corporations unless at least 90% of their income is "qualifying income."
Because the Company's income will be qualifying income for this purpose, the
Company will not be taxed as a corporation under this rule. Passive income
or losses from publicly traded partnerships that are not taxed as corporations
generally cannot be used to offset passive income or losses from other
sources. Enex believes that the Company is not publicly traded.
Consequently, limited partners should continue to be able to utilize their
income and losses from the Company to offset losses and income from their
other passive activities.
In order to prevent the adverse tax consequences that would affect the
limited partners if the Company's limited partnership interests were to become
publicly traded in the future, the general partner may, after final
regulations have been issued by the Internal Revenue Service, submit to a vote
of limited partners a proposal to amend the Company's agreement of limited
partnership to provide, among other things, (a) that Enex shall have the right
to refuse to recognize any transfer of limited partnership interests if it
believes that such transfer occurred on a secondary market or the substantial
equivalent thereof; and (b) that all assignors and assignees of the limited
partnership interests shall be required to represent to Enex that any transfer
of limited partnership interests did not, to the best of their knowledge,
occur on a secondary market or the substantial equivalent thereof.
Item 2. Description of Property
On December 31, 1985, the Partnerships transferred all of their assets
to the Company, subject to corresponding liabilities. These properties
continue to be operated by the Company as they were operated by the
Partnerships. Presented below is a brief description of the Company's
property holdings, all of which were transferred to it by the Partnerships.
CHOATE, OAK GROVE AND LEACOCK acquisitions. The Enex Oil and Gas Income
Program I - Series 1 and 2 Partnerships each owned (a) fifty percent of the
interest acquired from Choate Oil Co. in 254 wells, three-quarters of which
are oil wells and all but two of which are located in Oklahoma, and four gas
plants, of which three are in Oklahoma and one is in Michigan; (b) both a
working and a royalty interest in a gas unit in Oak Grove Field, Simpson
County, Mississippi; and (c) an interest in the Leacock 2-21 gas well in
Otsego County, Michigan, which feeds the Michigan gas plant. The Oak Grove
and Leacock acquisitions were retired in 1989 and 1992 respectively.
GRASS ISLAND acquisition. Series 1, 2 and 3 Partnerships owned working
interests, and contains 13 oil wells located in Calhoun County, Texas.
SHELL acquisition. The Series 3 Partnership owned working interests in six
individual oil wells and two large Smackover oil units, and royalty interests
in one gas and nine oil wells in six counties in Mississippi acquired from
Shell Oil Company.
BLACKHAWK acquisition. The Series 3 and 4 Partnerships each owned working
interests in six oil wells in the Blackhawk Field, Concordia Parish,
Louisiana.
H.N.G. acquisition. The H.N.G. acquisition began with the purchase of
overriding royalty interests in over 300 gas wells in Texas, New Mexico, and
Oklahoma and culminated five transactions later with the last purchase of
overriding royalty interests in these properties. The Series 3, 7, 8, 9, 10,
11 and 12 Partnerships had each participated in one or more of these
transactions.
ARNOLD AND WOOLF acquisition. The Series 4, 5, 6 and 7 Partnerships each
owned a portion of the working interests of Arnold and Woolf in 154 oil wells
and 129 gas wells located in Texas, Louisiana, Mississippi, Alabama and
Florida, and one gas plant in Monroe County, Mississippi.
SECOND BAYOU AND SCHLENSKER acquisition. The Series 4, 5, 6, 7 and 8
Partnerships each owned part of (a) an overriding royalty interest in
approximately 27,000 acres in the Second Bayou Field, Cameron Parish,
Louisiana, which at December 31,1984 included 30 gas wells; and (b) the
working interests in 16 oil and 41 gas wells located in five Texas counties
and Vermilion Parish, Louisiana, plus a production payment.
ESPERANCE POINT acquisition. The Series 5, 6, and 7 Partnerships each owned
working interests in four oil wells located in the Esperance Point Field in
Concordia Parish, Louisiana.
BLUE HOLE acquisition. The Series 7, 8, 9 and 10 Partnerships had each
acquired working interests in three oil wells, the Board of Education 1-S, 2-S
and 3-S, in Adams County, Mississippi. The Blue Hole acquisition was retired
in 1991.
EL TORO AND NORTHWEST ESPERANCE POINT acquisition. The Series 8 and 9
Partnerships' interests in the Northwest Esperance Point acquisition in
Concordia Parish, Louisiana each consisted of both royalty and working
interests in nine oil wells operated by El Toro Production Company.
LAKE COCODRIE acquisition. The Series 8, 9 and 10 Partnerships each owned a
portion of the working interest of D&D Drilling Company, et. al in the
Cocodrie Lake acquisition in Concordia Parish, Louisiana.
EAST SEVEN SISTERS acquisition. The Series 8, 9, 10, 11 and 12 Partnerships
had each participated in one or more of a series of six transactions in which
parts of a mineral interest and the associated royalty interest in the Gorman
Gas Unit in the East Seven Sisters Field, Duval County, Texas were acquired.
COMITE acquisition. The series 10, 11 and 12 partnerships each owned
overriding royalty interests in four gas wells in the Comite Field acquisition
in East Baton Rouge Parish, Louisiana.
SHAMROCK, SUNBELT AND BURKHOLDER acquisitions. The Series 11 and 12
Partnerships each owned (a) working and overriding royalty interests in nine
oil wells operated by Meng Operating and Exploration Company in Concordia
Parish, Louisiana; (b) a portion of the working interests in five oil wells
operated by O'Malley Production Company, Inc. in Concordia Parish, Louisiana
and Adams and Wilkinson Counties, Mississippi; and (c) a working interest in
the Perkins 200 #1 Gas Unit in Ward County, Texas. The Shamrock and Sunbelt
acquisitions were retired in 1987 and 1989, respectively.
Oil and Gas Reserves
For quantitative information regarding the Company's oil and gas
reserves, please see Supplementary Oil and Gas Information and related tables
which follow the Notes to Financial Statements in Item 7 of this report. The
Company has not filed any current oil and gas reserve estimates or included
any such estimates in reports to any federal or foreign governmental authority
or agency, including the Securities and Exchange Commission.
Proved oil and gas reserves reported herein are based on engineering
reports prepared by the petroleum engineering consulting firm of H. L. Gruy
& Associates, Inc. The reserves included in this report are estimates only
and should not be construed as exact quantities. Future conditions may affect
recovery of estimated reserves and revenue, and all reserves may be subject
to revision as more performance data become available. The proved reserves
used in this report conform to the applicable definitions promulgated by the
Securities and Exchange Commission. No major discovery or other favorable or
adverse event that could potentially cause a significant change in the
estimated proved reserves has occurred since December 31, 1994.
<PAGE>
Net Oil and Gas Production
The following table shows for the years ended December 31, 1994 and
1993, the approximate production attributable to the Company's oil and gas
interests. The figures in the table represent "net production"; i.e.,
production owned by the Company and produced to its interest after deducting
royalty and other similar interests. All production occurred in the United
States.
1994 1993
Crude oil and condensate (Bbls) . 74,694 73,631
Natural gas (Mcf) . . . . . . . . 708,621 750,303
Natural gas liquids (Bbls) (1) . 36,624 38,660
Natural gas - gas plant sales
(Mcf) (1) . . . . . . 247,598 218,871
The following table sets forth the Company's average sales price per
barrel of oil, per Mcf of gas, and average production cost per equivalent
barrel of production for the years ended December 31, 1994 and 1993.
1994 1993
Average sales price per barrel of oil $ 14.73 $ 16.14
Average sales price per Mcf of
gas . . . . . . . . . 2.01 2.36
Average production cost per
equivalent barrel of production . . . . 4.24 4.64
Average sales price per barrel of
natural gas liquids (1) . . . . . . . 8.11 9.73
Average sales price per Mcf of
gas plant gas sales (1) . . . . . . . . 1.70 1.67
Average production cost per
equivalent barrel of gas plant
production (1)(2) . . . . . . 9.82 6.65
(1) Natural gas liquid production was obtained through gas processing
plant ownership rather than through leasehold ownership.
(2) Includes cost of gas purchases.
Item 3. Legal Proceedings
There are no material pending legal proceedings to which the Company is
a party or to which any of their properties are subject.
Item 4. Submission of Matters to a Vote of Security Holders
No matter was submitted to a vote of security holders during the fourth
quarter of the fiscal year covered by this report.
PART II
Item 5. Market for Common Equity and Related Security Holder Matters
Market Information
There is no established public trading market for the Company's
outstanding limited partnership interests.
Number of Equity Security Holders
Number of Record Holders
Title of Class (as of March 1, 1995)
General Partner's Interests 1
Limited Partnership Interests 4,813
Dividends
The Company made no cash distributions to partners in 1993 or 1994.
The payment of future distributions will depend on the Company's earnings,
financial condition, working capital requirements and other factors,
although it is anticipated that distributions will be reinstated in the
future.
Item 6. Management's Discussion and Analysis or Plan of Operation
Results of Operations
This discussion should be read in conjunction with the financial
statements of the Company and the notes thereto included in this Form 10-KSB.
Oil, gas and gas plant sales decreased to $3,245,603 in 1994 from
$3,702,424 in 1993. This represents a decrease of $456,821 or 12%. Oil
sales decreased by $166,969 or 11%. A 1% decrease in oil production due to
natural production declines caused sales to decrease by $13,557. A 10%
decrease in average oil prices reduced sales by an additional $153,412.
Gas sales decreased by $289,852 or 14%. A 1% decrease in gas production
due to natural production declines decreased sales by $28,576. A 12%
decrease in average gas prices reduced sales by an additional $261,276.
The changes in average prices correspond with changes in the overall market
for the sale of oil and gas.
Lease operating expenses increased to $1,415,711 in 1994 from
$1,222,601 in 1993. The increase of $193,110 or 16% was primarily due to
$232,322 of non-recurring processing charges in 1994.
Depreciation and depletion expense decreased to $758,359 in 1994
from $944,370 in 1993. This represents a decrease of $186,011 or 20%. The
changes in production, noted above, reduced depreciation and depletion
expense by $10,802. A 19% decrease in the depletion rate reduced
depreciation and depletion expense by an additional $175,209. The decrease
in the depletion rate was primarily a result of an upward revision of the
oil reserves at December 31, 1994, partially offset by a downward revision
of the gas reserves.
General and administrative expenses decreased to $379,544 in 1994
from $1,324,664 in 1993. This represents a decrease of $945,120 or 71%.
The 1993 total included a $504,350 litigation expense related to a
judgement granted against the Company by the 101st District Court of Texas.
In 1994, this verdict was reversed by the Fifth District Court of Appeals
and a judgement granted in favor of the Company for $163,019 plus interest
of $91,569. Accordingly, the 1994 total included a $758,938 credit to
expense related to the accrual reversal and recognition of a receivable.
(See Note 6 to the Notes to the Financial Statements.) Absent this
accrual, general and administrative expenses would have been $1,046,913 and
$820,314 in 1994 and 1993, respectively, an increase of $226,599 or 28%.
This increase was primarily a result of more staff time being required to
manage the Company's operations.
The Company sold certain interests in low margin, nonoperated
properties in 1994 and 1993. Such sales yielded proceeds of $45,000 and
$10,710 in 1994 and 1993, respectively. The Company recorded a net gain on
such sales of $6,937 and $8,293 in 1994 and 1993, respectively.
Capital Resources and Liquidity
The Company's cash flow from operations is a direct result of the
amount of net proceeds realized from the sale of oil and gas production.
Accordingly, the changes in cash flow from 1993 to 1994 are primarily due
to the changes in oil and gas sales described above. It is the general
partner's intention to distribute substantially all of the Company's
available net cash flow to the Company's partners.
The Company discontinued the payment of the distributions during
1990. Future distributions are dependent upon, among other things, future
prices received for oil and gas remaining at satisfactory levels. The
Company will continue to recover its reserves and reduce its debt in 1995.
It is anticipated that the Company's distributions will be reinstated in
1995.
At December 31, 1994, the Company had no material commitments for
capital expenditures. The Company does not intend to engage in any
significant developmental drilling activity.
Item 7.Financial Statements and Supplementary Data
INDEPENDENT AUDITORS' REPORT
The Partners
Enex Program I Partners, L.P.:
We have audited the accompanying balance sheet of Enex Program I Partners,
L.P. (a New Jersey limited partnership) as of December 31, 1994 and the
related statements of operations, changes in partners' capital, and cash
flows for each of the two years in the period ended December 31, 1994.
These financial statements are the responsibility of the general partner of
Enex Program I Partners, L.P. Our responsibility is to express an opinion
on the financial statements based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to
obtain reasonable assurance about whether the financial statements are free
of material misstatement. An audit includes examining, on a test basis,
evidence supporting the amounts and disclosures in the financial
statements. An audit also includes assessing the accounting principles
used and significant estimates made by management, as well as evaluating
the overall financial statement presentation. We believe that our audits
provide a reasonable basis for our opinion.
In our opinion, such financial statements present fairly, in all material
respects, the financial position of Enex Program I Partners, L.P. at
December 31, 1994 and the results of its operations and its cash flows for
each of the two years in the period ended December 31, 1994 in conformity
with generally accepted accounting principles.
DELOITTE & TOUCHE, LLP
Houston, Texas
March 17, 1995
ENEX PROGRAM I PARTNERS, L.P.
NOTES TO FINANCIAL STATEMENTS
FOR THE TWO YEARS ENDED DECEMBER 31, 1994
1. PARTNERSHIP ORGANIZATION
Enex Program I Partners, L.P. (the "Company"), a New Jersey limited
partnership, was formed on October 10, 1985 to effect a
consolidation of twelve existing partnerships. Total limited
partner contributions were $96,814,500, of which $976,378 was
contributed by Enex Resources Corporation ("Enex"), the general
partner.
Enex has been the general partner of the Company since its
inception, except for the period from April 18, 1990 until August
17, 1991 when Energy Development Company, an unrelated company in
Denver, Colorado was the general partner.
In accordance with the partnership agreement, the Company paid
commissions of $9,357,600 for solicited subscriptions to Enex
Securities Corporation, a subsidiary of Enex, and reimbursed Enex
for organization expenses of approximately $3,265,000.
Information relating to the allocation of costs and revenues between
Enex, as general partner, and the limited partners is as follows:
Limited
Enex Partners
Commissions and selling expenses 100%
Company reimbursement of organization
expense 100%
Company property acquisition 100%
General and administrative costs 10% 90%
Costs of drilling and completing
development wells 10% 90%
Revenues from temporary investment of
partnership capital 100%
Revenues from producing properties 10% 90%
Operating costs (including general and
administrative costs associated with
operating producing properties) 10% 90%
At the point in time when the cash distributions to the limited
partners equal their subscriptions ("payout"), the costs of drilling
and completing development wells, revenues from producing
properties, general and administrative costs and operating costs
will be allocated 15% to the general partner and 85% to the limited
partners.
In May 1994, as the aggregate purchase price of the interests in the
Company plus the cumulative distributions to the limited partners
did not equal limited partner subscriptions (the "Deficiency"), the
general partner forfeited its 10% share of the Company's net
revenues. The foregone net revenues will be allocated to the
limited partners until such time as no Deficiency exists.
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Oil and Gas Properties - The Company uses the successful efforts
method of accounting for its oil and gas operations. Under this
method, the costs of all development wells are capitalized.
Capitalized costs are amortized on the units-of-production method
based on estimated total proved reserves. The acquisition costs of
proved oil and gas properties are capitalized and periodically
assessed for impairments.
Cash Flows - The Company has presented its cash flows using the
indirect method and considers all highly liquid investments with an
original maturity of three months or less to be cash equivalents.
General and Administrative Expenses - The Company reimburses the
General Partner for direct costs and administrative costs incurred
on its behalf. Administrative costs allocated to the Company are
computed on a cost basis in accordance with standard industry
practices by allocating the time spent by the General Partner's
personnel among all projects and by allocating rent and other
overhead on the basis of the relative direct time charges.
3. FEDERAL INCOME TAXES
General - The Company is not a taxable entity for federal income tax
purposes. Such taxes are liabilities of the individual partners and
the amounts thereof will vary depending on the individual situation
of each partner. Accordingly, there is no provision for income
taxes in the accompanying financial statements.
4. SIGNIFICANT PURCHASERS
American Exploration and Exxon Company, USA accounted for 15% and 14%,
respectively, of the Company's total sales in 1994. American
Exploration and Exxon Company, USA accounted for 17% and 11%,
respectively, of the Company's total sales in 1993. No other
purchaser individually accounted for more than 10% of such sales.
5. NOTE PAYABLE TO BANK
The Company has a $700,000 line-of-credit with a bank. At December
31, 1993 the amount outstanding was $410,000. The note payable, which
was completely repaid in 1994, had a stated interest rate of prime
plus three fourths of one percent. Principal payments of $410,000 and
$1,531,500 were made on the note during 1994 and 1993, respectively.
The weighted average outstanding principal during 1994 and 1993 was
$237,370 and $1,115,749, respectively, and bore interest at a weighted
average rate of 7.47% and 6.49%, respectively, (6.75% at December 31,
1993).
6. LITIGATION SETTLEMENTS
The Company was named as a party to a suit filed by Texas Crude, Inc.
("Texas Crude"). In the suit, Texas Crude sought to recover legal and
other fees totaling $600,000. In August 1993, a judgement was granted
in favor of Texas Crude for $414,203 plus interest by the 101st
Judicial District Court of Texas. The Company recognized a
contingent liability at December 31, 1993 for $504,350.
The Company appealed the verdict and filed a counterclaim for funds
that were wrongfully withheld by Texas Crude. In December 1994, the
Fifth District Court of Appeals reversed the judgement of the trial
court and rendered judgement in favor of the Company, in which the
Company will recover $163,019 from Texas Crude plus interest.
Accordingly, the contingent liability, initially recognized in 1993,
was reversed in December 1994 and a receivable for $254,588 was
established.
7. PROPERTY TRANSACTIONS
The Company sold certain interests in low margin, nonoperated
properties in 1994 and 1993. Such sales yielded proceeds of $45,000
and $10,710 in 1994 and 1993, respectively. The Company recorded a
net gain on such sales of $6,937 and $8,293 in 1994 and 1993,
respectively.
Item 8. Changes In and Disagreements with Accountants on Accounting and
Financial Disclosure
Not Applicable
ENEX PROGRAM I PARTNERS, L.P.
BALANCE SHEET, DECEMBER 31, 1994
ASSETS
1994
CURRENT ASSETS:
Cash $ 12,269
Accounts receivable - oil & gas sales 360,082
Receivable from litigation settlement 254,588
Other current assets 95,565
Total current assets 722,504
OIL & GAS PROPERTIES
(Successful efforts accounting method) - Proved
mineral interests and related equipment & facilities 91,720,516
Less accumulated depreciation and depletion 87,116,369
Property, net 4,604,147
TOTAL $ 5,326,651
LIABILITIES AND PARTNERS' CAPITAL
CURRENT LIABILITIES:
Accounts payable $ 234,226
Payable to general partner 85,327
Total current liabilities 319,553
PARTNERS' CAPITAL:
Limited partners 4,033,607
General partner 973,491
Total partners' capital 5,007,098
TOTAL $ 5,326,651
See accompanying notes to financial statements.
II-5
ENEX PROGRAM I PARTNERS, L.P.
STATEMENTS OF OPERATIONS
FOR THE TWO YEARS ENDED DECEMBER 31, 1994
1994 1993
REVENUES:
Oil, gas and gas plant sales $ 3,245,603 $ 3,702,424
EXPENSES:
Depreciation and depletion 758,359 944,370
Lease operating expenses 1,415,711 1,222,601
Production taxes 167,102 199,518
General and administrative:
Allocated from general partner 905,089 691,946
Direct expense 141,824 128,368
Litigation expense (income) (758,938) 504,350
Total expenses 2,629,147 3,691,153
INCOME FROM OPERATIONS 616,456 11,271
OTHER INCOME (EXPENSE):
Interest expense (17,727) (74,870)
Interest Income 19,671 -
Gain on sale of property 6,937 8,293
Other income (expense), net 8,881 (66,577)
NET INCOME (LOSS) $ 625,337 $ (55,306)
See accompanying notes to financial statements.
II-6
ENEX PROGRAM I PARTNERS, L.P.
STATEMENTS OF CHANGES IN PARTNERS' CAPITAL
FOR THE TWO YEARS ENDED DECEMBER 31, 1994
<TABLE>
<CAPTION>
PER $500
LIMITED
PARTNER
GENERAL LIMITED UNIT OUT-
TOTAL PARTNER PARTNERS STANDING
<S> <C> <C> <C> <C>
BALANCE JANUARY 1, 1993 $ 4,437,067 $ 848,135 $ 3,588,932 $ 19
NET INCOME (LOSS) (55,306) 88,909 (144,215) (1)
BALANCE, DECEMBER 31, 1993 4,381,761 937,044 3,444,717 18
NET INCOME 625,337 36,447 588,890 3
BALANCE, DECEMBER 31, 1994 $ 5,007,098 $ 973,491 $ 4,033,607 (1)$ 21
</TABLE>
(1) Includes 101,291 units purchased by the general partner as a limited
partner.
See accompanying notes to financial statements.
II-7
ENEX PROGRAM I PARTNERS, L.P.
STATEMENTS OF CASH FLOWS
FOR THE TWO YEARS ENDED DECEMBER 31, 1994
1994 1993
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income (loss) $ 625,337 $ (55,306)
Adjustments to reconcile net income (loss)
to net cash provided by operating activities
Depreciation and depletion 758,359 944,370
Litigation settlement (850,507) 504,350
Gain on sale of property (6,937) (8,293)
(Increase) decrease in:
Accounts receivable - oil & gas sales 82,513 4,324
Other current assets (49,952) 5,845
Increase (decrease) in:
Accounts payable (54,302) 64,260
Payable to general partner 13,246 41,718
Total adjustments (107,580) 1,556,574
Net cash provided by operating activities 517,757 1,501,268
CASH FLOWS FROM INVESTING ACTIVITIES:
Proceeds from sale of property 45,000 10,710
Property additions - development costs (234,233) (51,507)
Net cash used by investing activities (189,233) (40,797)
CASH FLOWS FROM FINANCING ACTIVITIES:
Reduction in note payable to bank (410,000) (1,531,500)
NET INCREASE (DECREASE) IN CASH (81,476) (71,029)
CASH AT BEGINNING OF YEAR 2,176 73,205
CASH AT END OF YEAR $ (79,300) $ 2,176
Cash paid during the year for interest $ 17,727 $ 74,870
See accompanying notes to financial statements.
II-8
NOTES TO FINANCIAL STATEMENTS
FOR THE TWO YEARS ENDED DECEMBER 31, 1994
1. PARTNERSHIP ORGANIZATION
Enex Program I Partners, L.P. (the "Company"), a New Jersey limited
partnership, was formed on October 10, 1985 to effect a
consolidation of twelve existing partnerships. Total limited
partner contributions were $96,814,500, of which $976,378 was
contributed by Enex Resources Corporation ("Enex"), the general
partner.
Enex has been the general partner of the Company since its
inception, except for the period from April 18, 1990 until August
17, 1991 when Energy Development Company, an unrelated company in
Denver, Colorado was the general partner.
In accordance with the partnership agreement, the Company paid
commissions of $9,357,600 for solicited subscriptions to Enex
Securities Corporation, a subsidiary of Enex, and reimbursed Enex
for organization expenses of approximately $3,265,000.
Information relating to the allocation of costs and revenues between
Enex, as general partner, and the limited partners is as follows:
Limited
Enex Partners
Commissions and selling expenses 100%
Company reimbursement of organization
expense 100%
Company property acquisition 100%
General and administrative costs 10% 90%
Costs of drilling and completing
development wells 10% 90%
Revenues from temporary investment of
partnership capital 100%
Revenues from producing properties 10% 90%
Operating costs (including general and
administrative costs associated with
operating producing properties) 10% 90%
At the point in time when the cash distributions to the limited
partners equal their subscriptions ("payout"), the costs of drilling
and completing development wells, revenues from producing
properties, general and administrative costs and operating costs
will be allocated 15% to the general partner and 85% to the limited
partners.
In May 1994, as the aggregate purchase price of the interests in the
Company plus the cumulative distributions to the limited partners
did not equal limited partner subscriptions (the "Deficiency"), the
general partner forfeited its 10% share of the Company's net
revenues. The foregone net revenues will be allocated to the
limited partners until such time as no Deficiency exists.
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Oil and Gas Properties - The Company uses the successful efforts
method of accounting for its oil and gas operations. Under this
method, the costs of all development wells are capitalized.
Capitalized costs are amortized on the units-of-production method
based on estimated total proved reserves. The acquisition costs of
proved oil and gas properties are capitalized and periodically
assessed for impairments.
Cash Flows - The Company has presented its cash flows using the
indirect method and considers all highly liquid investments with an
original maturity of three months or less to be cash equivalents.
General and Administrative Expenses - The Company reimburses the
General Partner for direct costs and administrative costs incurred
on its behalf. Administrative costs allocated to the Company are
computed on a cost basis in accordance with standard industry
practices by allocating the time spent by the General Partner's
personnel among all projects and by allocating rent and other
overhead on the basis of the relative direct time charges.
3. FEDERAL INCOME TAXES
General - The Company is not a taxable entity for federal income tax
purposes. Such taxes are liabilities of the individual partners and
the amounts thereof will vary depending on the individual situation
of each partner. Accordingly, there is no provision for income
taxes in the accompanying financial statements.
Set forth below is a reconciliation of net income as reflected in the
accompanying financial statements and net income (loss) for federal income
tax purposes for the year ended December 31, 1994:
<TABLE>
<CAPTION>
Allocable toPer $500 Limited
General Limited Partner Unit
TOTAL Partner Partners Outstanding
<S> <C> <C> <C> <C>
Net income as reflected in the
accompanying financial statements $ 625,337 $ 36,447 $ 588,890 $ 3
Reconciling items:
Intangible drilling costs capitalized
for financial reporting purposes
which were charged-off for federal
income tax purposes (145,976) - (145,976) -
Difference in depreciation and depletion
computed for federal income tax
purposes and the amount computed
for financial reporting purposes (1,248,992) - (1,248,992) (6)
Litigation accrual reversal (758,938) - (758,938) (4)
Net income (loss) for federal
income tax purposes $(1,528,569) $ 36,447 $ (1,565,016) $ (7)
</TABLE>
Net income (loss) for federal income tax purposes is a summation of ordinary
income (loss), portfolio inc(loss), cost depletion and intangible drilling
costs as presented in the Company's federal income tax return.
Set forth below is a reconciliation between partners' capital as reflected in
the accompanying financial statements and partners' capital for federal
income tax purposes as of December 31, 1994:
<TABLE>
<CAPTION>
Allocable toPer $500 Limited
General Limited Partner Unit
TOTAL Partner Partners Outstanding
<S> <C> <C> <C> <C>
Partners' capital as reflected in the
accompanying financial statements $ 5,007,098 $ 973,491 $ 4,033,607 $ 21
Reconciling items:
Intangible drilling costs capitalized
for financial reporting purposes
which were charged-off for federal
income tax purposes (1,244,956) (109,494) (1,135,462) (6)
Difference in accumulated depreciation,
depletion and amortization for financial
reporting purposes and federal
tax purposes 16,691,849 - 16,691,849 86
Commissions and syndication
fees capitalized for federal
income tax purposes 9,357,600 - 9,357,600 48
Costs of consolidation 485,435 48,544 436,891 2
Other timing differences (180,770) 123,424 (304,194) (2)
Partners' capital for federal
income tax purposes $30,116,256 $1,035,965 $ 29,080,291 $ 149
</TABLE>
II-11
4. SIGNIFICANT PURCHASERS
American Exploration and Exxon Company, USA accounted for 15% and 14%,
respectively, of the Company's total sales in 1994. American
Exploration and Exxon Company, USA accounted for 17% and 11%,
respectively, of the Company's total sales in 1993. No other
purchaser individually accounted for more than 10% of such sales.
5. NOTE PAYABLE TO BANK
The Company has a $700,000 line-of-credit with a bank. At December
31, 1993 the amount outstanding was $410,000. The note payable, which
was completely repaid in 1994, had a stated interest rate of prime
plus three fourths of one percent. Principal payments of $410,000 and
$1,531,500 were made on the note during 1994 and 1993, respectively.
The weighted average outstanding principal during 1994 and 1993 was
$237,370 and $1,115,749, respectively, and bore interest at a weighted
average rate of 7.47% and 6.49%, respectively, (6.75% at December 31,
1993).
6. LITIGATION SETTLEMENTS
The Company was named as a party to a suit filed by Texas Crude, Inc.
("Texas Crude"). In the suit, Texas Crude sought to recover legal and
other fees totaling $600,000. In August 1993, a judgement was granted
in favor of Texas Crude for $414,203 plus interest by the 101st
Judicial District Court of Texas. The Company recognized a
contingent liability at December 31, 1993 for $504,350.
The Company appealed the verdict and filed a counterclaim for funds
that were wrongfully withheld by Texas Crude. In December 1994, the
Fifth District Court of Appeals reversed the judgement of the trial
court and rendered judgement in favor of the Company, in which the
Company will recover $163,019 from Texas Crude plus interest.
Accordingly, the contingent liability, initially recognized in 1993,
was reversed in December 1994 and a receivable for $254,588 was
established.
7. PROPERTY TRANSACTIONS
The Company sold certain interests in low margin, nonoperated
properties in 1994 and 1993. Such sales yielded proceeds of $45,000
and $10,710 in 1994 and 1993, respectively. The Company recorded a
net gain on such sales of $6,937 and $8,293 in 1994 and 1993,
respectively.
ENEX PROGRAM I PARTNERS, L.P.
SUPPLEMENTARY OIL AND GAS INFORMATION
FOR THE TWO YEARS ENDED DECEMBER 31, 1994
Proved Oil and Gas Reserve Quantities (Unaudited)
The following presents an estimate of the Company's proved oil and gas
reserve quantities and changes therein for each of the two years in the
period ended December 31, 1994. Oil reserves are stated in barrels ("BBLS")
and natural gas in thousand cubic feet ("MCF"). The amounts per $500 limited
partner unit do not include a potential 5% reduction after payout. All of
the Company's reserves are located within the United States.
Per $500 Per $500
Limited Natural Limited
Oil Partner Uni Gas Partner Unit
(BBLS) Outstanding (MCF) Outstanding
PROVED DEVELOPED AND
UNDEVELOPED RESERVES:
January 1, 1993 291,755 1 8,332,307 39
Revisions of previous e 23,167 - (182,127) (1)
Sales of minerals in pl (694) - (972) -
Production (73,631) - (750,303) (3)
December 31, 1993 240,597 1 7,398,905 35
Revisions of previous e 81,662 - (118,499) (1)
Sales of minerals in pl (170) - (38,587) -
Production (74,694) - (708,621) (4)
December 31, 1994 247,395 1 6,533,198 30
PROVED DEVELOPED RESERVES:
January 1, 1993 291,755 1 8,332,307 39
December 31, 1993 240,597 1 7,398,905 35
December 31, 1994 247,395 1 6,533,198 30
II-13
Item 8. Changes In and Disagreements with Accountants on Accounting and
Financial Disclosure
Not Applicable
PART III
Item 9. Directors, Executive Officers, Promoters and Control
Persons;
Compliance with Section 16(a) of the Exchange Act
The Company's sole General Partner is Enex Resources Corporation, a
Colorado corporation. The Company has no Directors or executive officers.
The Directors of Enex are:
Gerald B. Eckley. Mr. Eckley, age 68, has served as a Director,
President and Chief Executive Officer of the General Partner since its
formation in 1979. He was employed by Shell Oil Company from 1951 to 1967
and served in managerial capacities from 1959 to 1967. From 1967 to 1969,
he was Director of Fund Raising at the University of Oklahoma and from 1969
to 1971, was Vice President of Land and Operations for Imperial American
Management Company. In 1971, Mr. Eckley was a petroleum consultant and in
1972-1973 was General Counsel and Executive Director of the Oil Investment
Institute. From 1973 to 1974, he was Manager of Oil Properties, Inc. and
from 1974 to 1976, was Vice President, Land and Joint Ventures for Petro-
Lewis Corporation. From 1977 to August 1979, Mr. Eckley was President of
Eckley Energy, Inc., a company engaged in purchasing and selling oil and
gas properties. Mr. Eckley received an L.L.B. degree from the University
of Oklahoma in 1951 and a Juris Doctor degree from the University of
Oklahoma in 1970.
William C. Hooper, Jr. Mr. Hooper, age 57, has been a Director of
the General Partner since its formation in 1979 and is a member of the
General Partner's Audit and Compensation and Options Committees. In 1960
he was a staff engineer in the Natural Gas Department of the Railroad
Commission of Texas, with principal duties involving reservoir units and
gas proration. In 1961 he was employed by the California Company as a
Drilling Engineer and Supervisor. In 1963 he was employed by the
California Company as a Drilling Engineer and Supervisor. In 1963 he was
employed as a Staff Engineer by California Research Corporation and in 1964
rejoined the California Company as a project manager having various duties
involving drilling and reservoir evaluations. In 1966 he was Executive
Vice President for Moran Bros. Inc., coordinating and managing all company
activities, drilling operations, bidding and engineering. From 1970 until
the present, he has been self-employed as a consulting petroleum engineer
providing services to industry and government and engaged in business as an
independent oil and gas operator and investor. From 1975 to 1987 he was
also a Director and President of Verna Corporation, a drilling contractor
and service organization. He received a B.S. degree in Petroleum
Engineering in 1960 from the University of Texas and an M.S. degree in
Petroleum Engineering from that same University in 1961.
Stuart Strasner. Mr. Strasner, age 65, was a Director of the
General Partner from its formation until October of 1986. He was
reappointed to the Board on April 19, 1990 to fill a vacancy. He is a
member of the Audit Committee. He is a professor of business law at
Oklahoma City University and was Dean of the law school at Oklahoma City
University from July 1984 until June 1991. Prior to July 1984, Mr.
Strasner was an attorney in private practice with McCollister, McCleary,
Fazio and Holliday in Oklahoma City, Oklahoma. From 1959 to 1974, he was
employed by various banks, bank holding companies and an insurance company
in executive capacities. From 1974 to 1978, he was a consultant to various
corporations such as insurance companies, bank holding companies and small
business investment companies. From 1978 until late 1981, he was Executive
Director of the Oklahoma Bar Association, and from 1981 to 1983 was a
Director and President of PRST Enterprises, Inc., a real estate development
company. Mr. Strasner holds an A.B. degree from Panhandle A&M College,
Oklahoma, and a J.D. degree from the University of Oklahoma. He is a
member of the Fellows of the American Bar Association and a member of the
Oklahoma Bar Association. Mr. Strasner is also a director of Health
Images, Inc., a public company which provides fixed site magnetic resonance
imaging ("MRI") services.
Martin J. Freedman. Mr. Freedman, age 70, was one of the General
Partner's founders and a member of its Board of Directors as well as a
board member of Enex Securities Corporation until June of 1986. He was
reappointed to the Board on April 19, 1990 to fill a vacancy. He is a
member of the Compensation and Options Committee. He is currently
President of Freedman Oil & Gas Company, engaged primarily in the
management of its exploration and producing properties, and the managing
partner of MJF Energy which has an interest in several gas pipelines and
gas wells. Mr. Freedman is a lifetime member of the Denver Petroleum Club.
He was an officer and Director and/or founder of several former private and
public companies, among which were Valex Petroleum and Kissinger Drilling
and Exploration. Mr. Freedman entered the oil and gas business in 1954
when he joined Mr. Marvin Davis of the Davis Oil Company. In 1956, he
became President of Central Oil Corporation, a company engaged in oil and
gas exploration. From 1958 on, Mr. Freedman operated as Martin J. Freedman
Oil Properties and was President of Oil Properties, Inc., a private
corporation. Mr. Freedman attended Long Island University and New York
University. He received a bachelor's degree in Psychology and also
attended New York University's graduate school.
James Thomas Shorney. Mr. Shorney, age 69, has been a Director of
the General Partner since April of 1990 and is a member of the Compensation
and Options Committee. He has been a petroleum consultant and
Secretary/Treasurer of the Shorney Company, a privately held oil and gas
exploration company, from 1970 to date. From 1970 to 1976, he also served
as a petroleum consultant in Land and Lease Research Analysis Studies for
the GHK Company. He was an oil and gas lease broker from 1962 to 1970 and
employed by Shell Oil Company in the Land Department from 1954 to 1962.
Before joining Shell Oil Company, he served as Public Information Officer
in the U.S. Army Air Force from 1950 to 1953 including attending Georgetown
University Graduate School in 1952. Mr. Shorney graduated from the
University of Oklahoma with a B.A. degree in Journalism in 1950. From 1943
to 1945, he served in the U.S. Army Air Force as an air crew member on a B-
24 Bomber. Mr. Shorney is a member of the Oklahoma City Association of
Petroleum Landmen on which he has served as Director and
Secretary/Treasurer. He is an active member of the American Association of
Petroleum Landmen. In 1975, Mr. Shorney was first listed in the London
Financial Times' Who's Who in World Oil and Gas.
Robert D. Carl, III. Mr. Carl, age 41, was appointed a Director of
the General Partner on July 30, 1991 and is a member of the Audit
Committee. He is Chief Executive Officer and Chairman of the Board of
Health Images, Inc., a public company whose securities are traded on NYSE,
which provides fixed site magnetic resonance imaging ("MRI") services.
From 1978 to 1981, Mr. Carl also served as President of Carl Investment
Associates, Inc. a registered investment advisor. In 1981, Mr. Carl joined
Cardio-Tech, Inc., as general counsel and as an officer and Director. Upon
the sale and reorganization of Cardio-Tech, Inc. into Cardiopul
Technologies in 1982, he served as its Executive Vice President and as a
Director. In March, 1985 he was elected President, Chief Executive Officer
and Chairman of Cardiopul Technologies which spun off its non-imaging
medical services business and changed its name to Health Images, Inc. Mr.
Carl received a B.A. in History from Franklin and Marshall College,
Lancaster, Pennsylvania in 1975 and a J.D. from Emory University School of
Law, Atlanta, Georgia in 1978 and is a member of the State Bar of Georgia.
Robert E. Densford. Mr. Densford, age 37, was appointed a Director
of the General Partner on September 11, 1991. He joined the General
Partner as Controller on May 1, 1985 and became Vice President-Finance,
Secretary and Treasurer on March 1, 1989. From January 1983 to April 1985,
he was Senior Accountant for Deloitte Haskins & Sells in Houston, Texas,
auditing both closely held and publicly owned oil and gas companies. From
September 1981 to December 1982, he was a staff accountant for Coopers &
Lybrand in Houston. Mr. Densford is a C.P.A. and holds a B.B.A. degree in
Accounting and an M.S. degree in Oil and Gas Accounting from Texas Tech
University and is a member of the American Institute of Certified Public
Accountants and the Texas Society of Certified Public Accountants.
The other executive officers of Enex are:
Jesse Q. Ozbolt. Mr. Ozbolt, age 53, was appointed Vice President-
Engineering of the General Partner on March 31, 1984 and Vice President-
Engineering and Operations on July 1, 1985. He joined the General Partner
in March 1982 as Manager of Engineering and Acquisitions. Prior thereto,
he was Manager of Houston operations of Core Laboratories, Inc., a Dallas-
based engineering and consulting organization. From October 1978 through
May 1981, he was Chief Petroleum Engineer and Vice President at First City
National Bank of Houston. From May 1973 to October 1978, he was Manager of
Engineering of the Exploration and Production Division of Texas Eastern
Corporation. From 1969 to 1973, he was Senior Project Engineer in the
Production Department of Exxon Company, U.S.A. Mr. Ozbolt holds a B.S.
degree in Civil Engineering, Magna Cum Laude, from Duke University.
James A. Klein. Mr. Klein, age 32, joined the General Partner as
Controller in February 1991. In June 1993, he was appointed President and
Principal of Enex Securities Corporation. From June 1988 to February 1991,
he was employed by Positron Corporation in Houston. From July 1987 to May
1988, he was employed by Transworld Oil Company in Houston and from
September 1985 until July 1987, he was an accountant with Deloitte Haskins
& Sells in Houston, Texas, auditing oil and gas and oil service companies.
Mr. Klein is a Certified Public Accountant and holds a B.A. in Accounting
(1985) from the University of Iowa. He is a member of the American
Institute of Certified Public Accountants and the Iowa Society of Certified
Public Accountants.
Item 10. Executive Compensation
The Company has no Directors or executive officers.
The Company does not pay a proportional or fixed share of the
compensation paid to the officers of the General Partner.
The Company reimburses the General Partner for direct costs and
administrative costs incurred on its behalf. Administrative costs
allocated to the Company are computed on a cost basis in accordance with
standard industry practices by allocating the time spent by the General
Partner's personnel among all projects and by allocating rent and other
overhead on the basis of the relative direct time charges.
Item 11. Security Ownership of Certain Beneficial Owners and
Management
$500 Limited
Name of Partner Units Percent
Title of Class Beneficial Owner Owned Directly of
Class
Limited Partner Enex Resources 101.291 52.3119%
Item 12. Certain Relationships and Related Transactions
See the Statements of Operations included in the Financial
Statements in Item 7 of this report for information concerning general and
administrative costs incurred by Enex and allocated to the Company, and
Note 1 to such Financial Statements for information concerning payments to
Enex Securities Corporation, a wholly owned subsidiary of Enex and to Enex
for certain offering and organization expenses incurred by the Company.
Item 13. Exhibits and Reports on Form 8-K
Sequential
Page No.
(a) Exhibits
(3) a.
Certificate of Limited Partnership of the Company as
currently in effect. Incorporated by reference to Exhibit
3(3) to the Company's Registration Statement under the
Securities Exchange Act of 1934 on Form 8-B filed with the
Securities and Exchange Commission on February 15, 1986.
b.
Articles of Limited Partnership of the Company as currently
in effect. Incorporated by reference to Appendix B to the
Prospectus/Proxy Statement that appeared as Exhibit 2 to the
Company's Registration Statement under the Securities
Exchange Act of 1934 on Form 8-B filed with the Securities
and Exchange Commission on February 15, 1986.
(4) Not Applicable
(10) Not Applicable
(11) Not Applicable
(12) Not Applicable
(13) Not Applicable
(18) Not Applicable
(19) Not Applicable
(22) Not Applicable
(23) Not Applicable
(24) Not Applicable
(25) Not Applicable
(28) Not Applicable
(b) Reports on Form 8-K
No reports on Form 8-K were filed during the last
quarter of the period covered by this report.
Item 11. Security Ownership of Certain Beneficial Owners and Management
$500 Limited
Name of Partner Units Percent
Title of Class Beneficial Owner Owned Directly of
Class
Limited Partner Enex Resources 101,291 52.3119%
Item 12. Certain Relationships and Related Transactions
See the Statements of Operations included in the Financial
Statements in Item 7 of this report for information concerning general and
administrative costs incurred by Enex and allocated to the Company, and
Note 1 to such Financial Statements for information concerning payments to
Enex Securities Corporation, a wholly owned subsidiary of Enex and to Enex
for certain offering and organization expenses incurred by the Company.
Item 13. Exhibits and Reports on Form 8-K
Sequential
Page No.
(a) Exhibits
(3) a.
Certificate of Limited Partnership of the Company as
currently in effect. Incorporated by reference to Exhibit
3(3) to the Company's Registration Statement under the
Securities Exchange Act of 1934 on Form 8-B filed with the
Securities and Exchange Commission on February 15, 1986.
b.
Articles of Limited Partnership of the Company as currently
in effect. Incorporated by reference to Appendix B to the
Prospectus/Proxy Statement that appeared as Exhibit 2 to the
Company's Registration Statement under the Securities
Exchange Act of 1934 on Form 8-B filed with the Securities
and Exchange Commission on February 15, 1986.
(4) Not Applicable
(10) Not Applicable
(11) Not Applicable
(12) Not Applicable
(13) Not Applicable
(18) Not Applicable
(19) Not Applicable
(22) Not Applicable
(23) Not Applicable
(24) Not Applicable
(25) Not Applicable
(28) Not Applicable
(b) Reports on Form 8-K
No reports on Form 8-K were filed during the last
quarter of the period covered by this report.
SIGNATURES
In accordance with Section 13 or 15 (d) of the Exchange Act,
the registrant caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized.
ENEX PROGRAM I PARTNERS, L.P.
By: ENEX RESOURCES CORPORATION
the General Partner
March 17, 1995 By: /s/ G. B. Eckley
G. B. Eckley, President
In accordance with the Exchange Act, this report has been
signed below on March 17, 1995, by the following persons in the
capacities indicated.
ENEX RESOURCES CORPORATION General Partner
By: /s/ G. B. Eckley
G. B. Eckley, President
/s/ G. B. Eckley President, Chief Executive
G. B. Eckley Officer and Director
/s/ R. E. Densford Vice President, Secretary,
R. E. Densford Treasurer, Chief Financial
Officer and Director
/s/ James A. Klein Controller and Chief
James A. Klein Accounting Officer
<TABLE> <S> <C>
<ARTICLE> 5
<S> <C>
<PERIOD-TYPE> 12-MOS
<FISCAL-YEAR-END> DEC-31-1994
<PERIOD-END> DEC-31-1994
<CASH> 12,269
<SECURITIES> 0
<RECEIVABLES> 614,670
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 722,504
<PP&E> 91,720,516
<DEPRECIATION> 87,116,639
<TOTAL-ASSETS> 5,326,651
<CURRENT-LIABILITIES> 319,553
<BONDS> 0
<COMMON> 0
0
0
<OTHER-SE> 5,007,098
<TOTAL-LIABILITY-AND-EQUITY> 5,326,651
<SALES> 3,245,603
<TOTAL-REVENUES> 3,272,211
<CGS> 2,341,172
<TOTAL-COSTS> 2,629,147
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 17,727
<INCOME-PRETAX> 625,337
<INCOME-TAX> 0
<INCOME-CONTINUING> 625,337
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 625,337
<EPS-PRIMARY> 0
<EPS-DILUTED> 0
</TABLE>
