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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, 1995
[ ] 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 the 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. $2,862,275
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
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<PAGE>
TABLE OF CONTENTS
FORM 10-KSB ANNUAL REPORT
FOR THE YEAR ENDED DECEMBER 31, 1995
ENEX PROGRAM I PARTNERS, L.P.
Item No. Part I Page
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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
<PAGE>
PART I
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, 1996, Enex and its subsidiaries
employed 24 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.
I-1
<PAGE>
Exxon Company, USA Koch Hydrocarbons, Inc. accounted for 14% and 10%,
respectively, of the Company's total sales in 1995. American Exploration and
Exxon Company, USA accounted for 15% and 14%, respectively, of the Company's
total sales in 1994. No other purchaser individually accounted for more than 10%
of such sales. Although the Company marketed a significant portion of its sales
to the above noted companies, such a concentration does not pose a significant
risk due to the commodity nature of the Company's products.
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 for 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.
I-2
<PAGE>
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, in 13 oil wells located in Calhoun County, Texas. The Grass Island
acquisition is operated by Petro Guard Co. The Company owns a 6.25% working
interest in the Grass Island acquisition.
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. The Shell acquisition is operated by eight different oil and gas
companies. The Company owns working interests ranging from 11.14% to 24.91%.
BLACKHAWK acquisition. The Series 3 and 4 Partnerships each owned working
interests in six oil wells in the Blackhawk Field, Concordia Parish, Louisiana.
The Blackhawk acquisition is operated by Guido Production Co. Inc. The Company
owns a 25% working interest in the Blackhawk acquisition at December 31, 1995.
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
each participated in one or more of these transactions. Effective September 1,
1995, the Company sold 85% of its future assignments from the HNG Drilling
Program to American Exploration Corp and Louis Dreyfus Natural Gas Corp. for
$742,662. A gain of $427,964 was recognized from the sale.The H.N.G. acquisition
is operated by eight different oil and gas companies. The Company owns working
interests ranging from .104% to 8.999% in the H.N.G. acquisition at December 31,
1995.
I-3
<PAGE>
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. The Arnold & Woolf acquisition is
operated by seven different oil and gas companies. The Company owns working
interests ranging from 2.50% to 6.25% in the Arnold & Woolf acquisition at
December 31, 1995.
SECOND BAYOU AND SCHLENSKER acquisition. The Series 4, 5, 6, 7 and 8
Partnerships each owned part of (a) an overriding royalty interests 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. The Second Bayou acquisition is operated
by Fina Oil & Gas Co. The Company owned a 5% overriding royalty interest in the
Second Bayou acquisition at December 31, 1995. The Schlensker acquisition is
operated by five different oil and gas companies. The Company owns working
interests ranging from 5.49% to 19.32% in the acquisition at December 31, 1995.
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. The Esperance Point acquisition was sold to Wilcox
Energy Inc. effective July 1, 1995.
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. The Company owns a
5.77% royalty interest in the acquisition.
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. The Lake Cocodrie acquisition
is operated by Enex Resources Corporation. The Company owns working interests
ranging from 42.00% to 46.25% in the Lake Cocodrie acquisition.
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. The
East Seven Sisters acquisition is operated by Vastar Resources Inc. The Company
owns a 9.81% royalty interest in the East Seven Sisters acquisition at December
31, 1995.
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. The Comite acquisition is operated by TGX
Corp. The Company owns overriding royalty interests ranging from 1.81% to 5.87%
in the Comite acquisition at December 31, 1995.
I-4
<PAGE>
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. The Burkholder acquisition is operated
by Samson Resources Co. The Company owns a 3.96% working interest in the
acquisition at December 31, 1995.
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. J. Gruy and
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, 1995.
Net Oil and Gas Production
The following table shows for the years ended December 31, 1995 and 1994,
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.
1995 1994
Crude oil and condensate (Bbls) . . . . . . 60,875 74,694
Natural gas (Mcf) . . . . . . . . . . . . . 705,517 708,621
Natural gas liquids (Bbls) (1) . . . . . . . 35,581 36,624
Natural gas - gas plant sales (Mcf) (1) . . 230,902 247,598
I-5
<PAGE>
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, 1995 and 1994.
1995 1994
Average sales price per barrel of oil . . . . $16.24 $14.73
Average sales price per Mcf of gas . . . . . . 1.71 2.01
Average production cost per equivalent
barrel of production . . . . . . . . . . . 5.05 4.24
Average sales price per barrel of natural
gas liquids (1) . . . . . . . . . . . . . . 9.07 8.11
Average sales price per Mcf of gas plant
gas sales (1) . . . . . . . . . . . . . . . 1.51 1.70
Average production cost per equivalent
barrel of gas plant production (1)(2) . . . 6.60 9.82
(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.
I-6
<PAGE>
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, 1996)
-------------- --------------------------
General Partner's Interests 1
Limited Partnership Interests 4,739
Dividends
The Company made cash distributions to partners of $4 per $500
investment in 1995. The Company made no cash distributions to limited partners
in 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 periodic distributions will be in the future as
cash becomes available.
II-1
<PAGE>
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 $2,862,275 in 1995 from
$3,245,603 in 1994. This represents a decrease of $383,328 or 12%. Oil sales
decreased by $111,822 or 10%. A 19% decrease in oil production due to natural
production declines caused sales to decrease by $203,554. This decrease was
partially offset by a 10% increase in the average oil sales price. Gas sales
decreased by $224,269 or 16%. A 15% decrease in the average gas sales price
reduced revenues by $218,022. A 1% decrease in gas production reduced sales by
an additional $6,247. Sales of natural gas liquids and gas plant gas decreased
by $47,237 or 7%. A 5% decrease in the production of gas plant products reduced
sales by $35,321. A 2% decrease in the average gas plant products sales price
reduced sales by an additional $11,916. The decreases in oil production and the
production of gas plant products were primarily a result of natural production
declines. The slight decrease in gas production was primarily the result of
natural production declines, partially offset by new gas wells drilled on the
Schlensker and Dent acquisitions. The changes in average sales prices correspond
with changes in the overall market for the sale of oil, gas and gas plant
products.
Lease operating expenses decreased to $1,249,648 in 1995 from $1,415,711 in
1994. The decrease of $166,063 or 12% was primarily due to $232,322 of
non-recurring gas plant processing charges incurred in 1994.
Depreciation and depletion expense increased to $768,485 in 1995 from
$758,359 in 1994. This represents an increase of $10,126 or 1%. A 9% increase in
the depletion rate increased depreciation and depletion expense by $66,517. This
increase was partially offset by the changes in production, noted above. The
increase in the depletion rate was primarily a result of downward revisions of
the oil and gas reserves during 1995.
General and administrative expenses decreased to $915,527 in 1995 from
$1,046,913 in 1994. This represents a decrease of $131,386 or 13% from 1994 to
1995. This decrease was primarily a result of less staff time being required to
manage the Company's operations.
In 1994 the Company recognized a $758,938 credit to expense related to the
a litigation accrual reversal and recognition of a receivable related to a
judgement originally granted against the Company by the 101st District Court of
Texas in 1993. 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. (See Note 6 to the Notes to the Financial Statements.)
Effective September 1, 1995, the Company sold 85% of its future assignments
from the HNG Drilling Program to American Exploration Corp and Louis Dreyfus
Natural Gas Corp. for $742,662. A gain of $427,964 was recognized from the sale.
Effective July 1, 1995, the Company sold its interests in the Esperance Point
acquisition to Wilcox Energy Co. for $1,465. A gain of $952 was recognized from
the sale. In 1994, the Company sold certain interests in low margin, nonoperated
properties for $45,000. The Company recorded a net gain on such sales of $6,937
in 1994.
II-2
<PAGE>
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 1994 to 1995 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. In
the fourth quarter of 1995, the Company paid a distribution of $730,913 to its
limited partners. The distribution in 1995 was primarily a result of the
$744,127 of proceeds from the sale of properties, as noted above. 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 distribute to the limited partners, the net proceeds
realized from the sale of oil and gas production after payment of debt
obligations. The Company plans to repay the amount owed to the general partner
in 1996. It is anticipated that periodic distributions will be in the future as
cash becomes available.
At December 31, 1995, the Company had no material commitments for capital
expenditures. The Company does not intend to engage in any significant
developmental drilling activity.
II-3
<PAGE>
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, 1995 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, 1995. 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, 1995 and the results of its operations and its cash flows for each of the
two years in the period ended December 31, 1995 in conformity with generally
accepted accounting principles.
DELOITTE & TOUCHE LLP
Houston, Texas
March 18, 1996
II-4
<PAGE>
<PAGE>
ENEX PROGRAM I PARTNERS, L.P.
BALANCE SHEET, DECEMBER 31, 1995
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ASSETS
<TABLE>
<CAPTION>
1995
-------------
CURRENT ASSETS:
<S> <C>
Cash $ 380,368
Accounts receivable - oil & gas sales 380,407
Receivable from litigation settlement 280,050
Other current assets 131,440
-------------
Total current assets 1,172,265
-------------
OIL & GAS PROPERTIES
(Successful efforts accounting method) - Proved
mineral interests and related equipment & facilities 85,553,852
Less accumulated depreciation and depletion 81,898,978
-------------
Property, net 3,654,874
-------------
TOTAL $ 4,827,139
=============
LIABILITIES AND PARTNERS' CAPITAL
CURRENT LIABILITIES:
Accounts payable $ 275,455
Payable to general partner 26,985
-------------
Total current liabilities 302,440
-------------
PARTNERS' CAPITAL:
Limited partners 3,551,208
General partner 973,491
-------------
Total partners' capital 4,524,699
-------------
TOTAL $ 4,827,139
=============
</TABLE>
See accompanying notes to financial statements.
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II-5
<PAGE>
ENEX PROGRAM I PARTNERS, L.P..
STATEMENTS OF OPERATIONS
FOR THE TWO YEARS ENDED DECEMBER 31, 1995
- -------------------------------------------------------------------------
1995 1994
----------- ----------
<TABLE>
<CAPTION>
REVENUES:
<S> <C> <C>
Oil and gas sales $2,862,275 $3,245,603
----------- ----------
EXPENSES:
Depreciation, depletion 768,485 758,359
Lease operating expenses 1,249,648 1,415,711
Production taxes 150,248 167,102
General and administrative:
Allocated from general partner 766,060 905,089
Direct expense 149,467 141,824
Litigation (income) - (758,938)
----------- ----------
Total expenses 3,083,908 2,629,147
----------- ----------
INCOME(LOSS)FROM OPERATIONS $ (221,633) $ 616,456)
OTHER INCOME(EXPENSE):
Other income 12,091 -
Interest expense - (17,727)
Interest income 29,140 19,671
Gain on sale of property 428,916 6,937
----------- ----------
Other income, net 470,147 8,881
----------- ----------
NET INCOME 248,514 625,337
=========== ==========
</TABLE>
See accompanying notes to financial statements.
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II-6
<PAGE>
ENEX PROGRAM I PARTNERS, L.P..
STATEMENTS OF CHANGES IN PARTNERS' CAPITAL
FOR THE TWO YEARS ENDED DECEMBER 31, 1995
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<TABLE>
<CAPTION>
PER $500
LIMITED
PARTNER
GENERAL LIMITED UNIT OUT-
TOTAL PARTNER PARTNERS STANDING
---------- ---------- ---------- ----------
<S> <C> <C> <C> <C>
BALANCE, JANUARY 1, 1994 $4,381,761 $937,044 $3,444,717 $ 18
NET INCOME (LOSS) 625,337 36,447 588,890 3
---------- ---------- ---------- ----------
BALANCE, DECEMBER 31, 1994 5,007,098 973,491 4,033,607 21
CASH DISTRIBUTIONS (730,913) - (730,913) (4)
NET INCOME (LOSS) 248,514 - 248,514 1
---------- ---------- ---------- ----------
BALANCE, DECEMBER 31, 1995 $4,524,699 $973,491 $3,551,208 (1) $ 18
========== ========== ========== ==========
</TABLE>
(1) Includes 103,067 units purchased by the general partner as a limited
partner.
See accompanying notes to financial statements.
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II-7
<PAGE>
ENEX PROGRAM I PARTNERS, L.P.
STATEMENTS OF CASH FLOWS
FOR THE TWO YEARS ENDED DECEMBER 31, 1995
- ----------------------------------------------------------------------
<TABLE>
<CAPTION>
1995 1994
------------ ----------
CASH FLOWS FROM OPERATING ACTIVITIES:
<S> <C> <C>
Net income $ 248,514 $ 625,337
------------ ----------
Adjustments to reconcile net income to net cash
provided by operating activities
Depreciation and depletion 768,485 758,359
Litigation settlement - (758,938)
Gain on sale of property (428,916) (6,937)
(Increase) decrease in:
Accounts receivable - oil & gas sales (20,325) 82,513
Other current assets (61,337) (49,952)
Increase (decrease) in:
Accounts payable 41,229 (54,302)
Payable to general partner (58,342) 13,246
------------ ----------
Total adjustments 240,794 (16,011)
------------ ----------
Net cash provided by operating activities 489,308 609,326
------------ ----------
CASH FLOWS FROM INVESTING ACTIVITIES:
Proceeds from sale of properties 744,127 45,000
Property additions - development costs (134,423) (234,233)
------------ ----------
Net cash provided (used) by investing activities 609,704 (189,233)
------------ ----------
CASH FLOWS FROM FINANCING ACTIVITIES:
Cash distributions (730,913) -
Reduction in note payable to bank - (410,000)
------------ ----------
Net cash provided (used) by financing activities (730,913) (410,000)
NET INCREASE IN CASH 368,099 10,093
CASH AT BEGINNING OF YEAR 12,269 2,176
------------ ----------
CASH AT END OF YEAR $ 380,368 $ 12,269
============ ==========
Cash paid during the year for interest $ - $ 17,727
============ ==========
</TABLE>
See accompanying notes to financial statements.
- ---------------------------------------------------------------------------
II-8
<PAGE>
ENEX PROGRAM I PARTNERS, L.P.
NOTES TO FINANCIAL STATEMENTS
FOR THE TWO YEARS ENDED DECEMBER 31, 1995
- --------------------------------------------------------------------------
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
II-9
<PAGE>
"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.
The Financial Accounting Standards Board has issued
Statement of Financial Accounting Standards No. 121,
"Accounting for the Impairment of Long Lived Assets and for
Long-Lived Assets to Be Disposed Of." This statement
requires that long-lived assets and certain identifiable
intangibles held and used by the Company be reviewed for
impairment whenever events or changes in circumstances
indicate that the carrying amount of an asset may not be
recoverable.
The Company has not determined the effect, if any, on its
financial position or results of operations which may
result from the adoption of this statement in the first
quarter of 1996.
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.
Uses of Estimates - The preparation of the financial
statements in conformity with generally accepted accounting
principles requires management to make estimates and
assumptions that affect the reported amounts of assets and
liabilities and disclosure of contigent assets and
liabilities at the date of the financial statements and the
reported amounts of revenue and expenses during the
reporting periods. Actual results could differ from these
estimates.
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.
II-10
<PAGE>
Set forth below is a reconciliation of net income as reflected in the
accompanying financial statements and net (loss) for federal income tax purposes
for the year ended December 31, 1995:
<TABLE>
<CAPTION>
Allocable to
------------------- Per $500 Limited
General Limited Partner Unit
TOTAL Partner Partners Outstanding
----------- -------- --------- --------------
Net income as reflected in the
<S> <C> <C> <C> <C>
accompanying financial statements $ 248,514 $ 0 $248,514 $ 1
Reconciling item:
Intangible drilling costs
capitalized for financial
reporting purposes which
were charged-off for federal
income tax purposes (85,254) - (85,254) -
Difference in depreciation,
depletion and amortization
computed for federal income
tax purposes and the amount
computed for financial
reporting purposes (2,273,303) - (2,273,303) (12)
Litigation accrual reversal (25,462) - (25,462) -
----------- -------- ---------- --------------
Net (loss) for federal
income tax purposes $(2.135.505) $ 0 $(2,135,505) $ (11)
=========== ======== =========== ===============
</TABLE>
Net (loss) for federal income tax purposes is a summation of ordinary income
(loss), portfolio income (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, 1995:
<TABLE>
<CAPTION>
Allocable to
--------------------- Per $500 Limited
General Limited Partner Unit
TOTAL Partner Partners Outstanding
----------- --------- ---------- ----------------
Partners' capital as reflected in the
<S> <C> <C> <C> <C>
accompanying financial statements $4,524,699 $973,491 $3,551,208 $ 18
Reconciling items:
Intangible drilling costs
capitalized for financial
reporting purposes which
were charged-off for federal
income tax purposes (1,330,210) (109,494) (1,220,716) (6)
Difference in accumulated
depreciation, depletion and
amortization for financial
reporting and federal income
tax purposes 14,759,748 - 14,759,748 77
Commissions and syndication
fees capitalized for federal
income tax purposes 9,357,600 - 9,357,600 48
Costs of consolidation 458,435 48,544 436,891 2
Other timing differences (547,396) 123,424 (670,820) (3)
----------- --------- ------------ ----------------
Partners' capital for federal
income tax purposes $27,249,876 $1,035,965 $26,213,911 $ 135
============ ========= ========== ================
</TABLE>
II-11
<PAGE>
4. SIGNIFICANT PURCHASERS
Exxon Company, USA, Koch Hydrocarbons, Inc. accounted for 14% and
10%, respectively, of the Company's total sales in 1995. American
Exploration and Exxon Company, USA accounted for 15% and 14%,
respectively, of the Company's total sales in 1994. 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. The weighted average
outstanding principal during 1994 was $237,370 and bore interest
at a weighted average rate of 7.47%.
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.
Both the Company and Texas Crude have filed Motions for Rehearing,
which have been pending for more than a year. The accrued
receivable balance at December 31, 1995 was $280,050, including
$25,462 of additional interest earned during 1995.
7. PROPERTY TRANSACTIONS
Effective September 1, 1995, the Company sold 85% of its future
assignments from the HNG Drilling Program to American Exploration
Corp. and Louis Dreyfus Natural Gas Corp. for $742,662. A gain of
$427,964 was recognized from the sale. Effective July 1, 1995,
the Company sold its interests in the Esperance Point acquisition
to Wilcox Energy Co. for $1,465. gain of $952 was recognized from
the sale.
The Company sold certain interests in low margin, nonoperated
properties in 1994. Such sales yielded proceeds of $45,000. The
Company recorded a net gain on such sales of $6,937 in 1994.
II-12
<PAGE>
ENEX PROGRAM I PARTNERS, L.P.
SUPPLEMENTARY OIL AND GAS INFORMATION
FOR THE TWO YEARS ENDED DECEMBER 31, 1995
- ---------------------------------------------------------------------------
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, 1995. 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.
<TABLE>
Per $500 Per $500
Limited Natural Limited
Oil Partner Unit Gas Partner Unit
(BBLS) Outstanding (MCF) Outstanding
--------- ----------- ----------- -----------
PROVED DEVELOPED AND
UNDEVELOPED RESERVES:
<S> <C> <C> <C> <C>
January 1, 1994 240,597 1 7,398,905 38
Revisions of previous estimates 81,662 - (118,499) -
Sales of minerals in place (170) - (38,587) -
Production (74,694) - (708,621) (4)
--------- ----------- ----------- -----------
December 31, 1994 247,395 1 6,533,198 34
Revisions of previous estimates (4,722) - (172,631) (1)
Sales of minerals in place (285) - (580,261) (3)
Production (60,875) - (705,517) (4)
--------- ----------- ----------- -----------
December 31, 1995 181,513 1 5,074,789 26
========= =========== =========== ===========
PROVED DEVELOPED RESERVES:
January 1, 1994 240,597 1 7,398,905 38
========= =========== =========== ===========
December 31, 1994 247,395 1 6,533,198 34
========= =========== =========== ===========
December 31, 1995 181,513 1 5,074,789 26
========= =========== =========== ===========
</TABLE>
II-13
<PAGE>
Item 8. Changes In and Disagreements With Accountants on Accounting and
Financial Disclosure
II-14
<PAGE>
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
Delaware corporation. The Company has no Directors or executive officers. The
Directors and executive officers of Enex are:
Gerald B. Eckley. Mr. Eckley, age 69, 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 58, 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 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 66, 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.
III-1
<PAGE>
Martin J. Freedman. Mr. Freedman, age 71, 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 Martin J. Freedman & Company which has an interest in
approximately one hundred producing oil and/or gas wells. Mr. Freedman is a
lifetime member of the Denver Petroleum Club as well as being a lifetime member
of the Denver Association of Petroleum Landmen. He was an officer and Director
and/or founder of several former private and public companies. 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 70, 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 42, was appointed a Director of the
General Partner on July 30, 1991 and is a member of the Audit Committee. He is
President, 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. Mr. Carl is a trustee of
Franklin & Marshall College and is a member of the State Bar of Georgia.
On January 4, 1996, the SEC filed a complaint in the United States District
Court for the District of Columbia against Mr. Carl alleging that Mr. Carl
violated Section 16(a) of the Securities Exchange Act of 1934 ("Exchange Act"),
and Rule 16a-2 and 16a-3 (and former Rule 16a-1) thereunder, by failing to
timely file reports concerning thirty-eight securities transactions in his
mother's brokerage accounts involving shares of Health Images, Inc. stock.
Although Mr. Carl's mother apparently did not
III-2
<PAGE>
live in his household, the SEC took the position that because Mr. Carl (1)
provided substantial financial support to his mother, (2) commingled his
mother's assets with his own, (3) provided a substantial portion of the funds
used to purchase the shares in question, and (4) received from his mother a
substantial portion of the sales proceeds, he, therefore, had a pecuniary
interest in, and was a beneficial owner of, the shares in question.
In response to the SEC's action, Mr. Carl disgorged to Health Images, Inc.
approximately $92,400 in short-swing profits from the trading in his mother's
account, plus interest thereon of approximately $52,600. The SEC further
requested the court to impose a $10,000 civil penalty against Mr. Carl pursuant
to Section 21(d)(3) of the Exchange Act. Without admitting or denying the
allegations in the complaint, Mr. Carl consented to the entry of a final
judgement imposing the $10,000 penalty. On January 12, 1996, a federal judge
entered the final judgement in this matter, and Mr. Carl has since filed amended
reports on Forms 4 and 5 reflecting these transactions in his mother's accounts.
In relation to the same matter, the SEC has issued an administrative Order
pursuant to Section 21C of the Exchange Act against Mr. Carl, finding that he
violated Section 16(a) and the rules thereunder and requiring him to cease and
desist from committing or causing any violation or future violation of those
provisions. Without admitting or denying allegations in the SEC's Order, Mr.
Carl consented to the entry of the Order.
Robert E. Densford. Mr. Densford, age 38, 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.
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.
III-3
<PAGE>
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 103,067 53.2291%
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
Commmission on February 15, 1986.
(4) Not Applicable
(10) Not Applicable
(11) Not Applicable
(12) Not Applicable
(13) Not Applicable
III-4
<PAGE>
(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.
III-5
<PAGE>
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 18, 1996 By: /s/ G. B. Eckley
-------------------
G. B. Eckley, President
In accordance with the Exchange Act, this report has been
signed below on March 18, 1996, 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
------------------ Officer and Director
G. B. Eckley
/s/ R. E. Densford Vice President, Secretary, Treasurer,
Chief Financial Officer and Director
-------------------
R. E. Densford
/s/ James A. Klein Controller and Chief Accounting Officer
-----------------
James A. Klein
S-1
<PAGE>
/s/ Robert D. Carl, III
--------------------------
Robert D. Carl, III Director
/s/ Martin J. Freedman
--------------------------
Martin J. Freedman Director
/s/ William C. Hooper, Jr.
--------------------------
William C. Hooper, Jr. Director
/s/ Tom Shorney
--------------------------
Tom Shorney Director
/s/ Stuart Strasner
--------------------------
Stuart Strasner Director
S-2
WARNING: THE EDGAR SYSTEM ENCOUNTERED ERROR(S) WHILE PROCESSING THIS SCHEDULE.
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
(Replace this text with the legend)
</LEGEND>
<CIK> 0000842832
<NAME> Enex Program I Partners, L.P.
<S> <C>
<PERIOD-TYPE> year
<FISCAL-YEAR-END> dec-31-1995
<PERIOD-START> jan-01-1995
<PERIOD-END> dec-31-1995
<CASH> 380368
<SECURITIES> 0
<RECEIVABLES> 660457
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 1172265
<PP&E> 85553852
<DEPRECIATION> 81898978
<TOTAL-ASSETS> 4827139
<CURRENT-LIABILITIES> 302440
<BONDS> 0
0
0
<COMMON> 0
<OTHER-SE> 4524699
<TOTAL-LIABILITY-AND-EQUITY> 4827139
<SALES> 2862275
<TOTAL-REVENUES> 3332422
<CGS> 1399896
<TOTAL-COSTS> 2168381
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 0
<INCOME-TAX> 0
<INCOME-CONTINUING> 0
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 248514
<EPS-PRIMARY> 0
<EPS-DILUTED> 0
</TABLE>
