<PAGE> 1
U.S. SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-QSB
OMB Approval
OMB Number: xxxx-xxxx
Expires: Approval Pending
Estimated Average Burden Hours Per Response: 1.0
(Mark One)
[xx] Quarterly report under Section 13 or 15(d) of the Securities
Exchange Act of 1934
For the quarterly period ended: March 31, 1996
[ ] Transition report under Section 13 or 15(d) of the Exchange Act
For the transition period from _________________ to ____________________
Commission file number: 0-3912
PETROL INDUSTRIES, INC.
(Exact Name of Small Business Issuer as Specified in its Charter)
NEVADA 75-1282449
(State or Other Jurisdiction of (IRS Employer Identification No.)
Incorporation or Organization)
202 N. THOMAS, SUITE 4 SHREVEPORT, LA 71107-6539
(Address of Principal Executive Offices)
(318) 424-6396
(Issuer's Telephone Number, Including Area Code)
N/A
(Former Name, Former Address and Former Fiscal Year,
if Changed Since Last Report)
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 [XX] NO [ ]
APPLICABLE ONLY TO ISSUERS INVOLVED IN BANKRUPTCY
PROCEEDINGS DURING THE PRECEDING FIVE YEARS
Check whether the registrant filed all documents and reports required to
be filed by Section 12, 13 or 15(d) of the Exchange Act after the distribution
of securities under a plan confirmed by a court.
YES [ ] NO [ ]
APPLICABLE ONLY TO CORPORATE ISSUERS
State the number of shares outstanding of each of the issuer's classes of
common equity, as of the latest practicable date: 1,599,741
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<TABLE>
Item 1. Financial Statements
PETROL INDUSTRIES, INC. & SUBSIDIARIES
Consolidated Balance Sheets
March 31, December 31,
1996 1995
(unaudited)
--------- ------------
<S> <C> <C>
ASSETS
Current assets:
Cash and cash equivalents $ 173,901 170,012
Accounts receivable:
Trade 85,815 79,136
Other 9,498 11,852
--------- ---------
95,313 90,988
Inventory 37,184 29,990
Prepaid expenses 17,385 15,208
--------- ---------
Total current assets 323,783 306,198
--------- ---------
Property and equipment, at cost:
Land 7,000 7,000
Developed and undeveloped oil and gas properties-
successful efforts method 4,366,904 4,366,904
Trucks and other operating equipment 327,041 327,041
Furniture and fixtures 37,072 37,072
--------- ---------
4,738,017 4,738,017
Less accumulated depreciation, depletion and
amortization 4,688,730 4,687,020
--------- ---------
49,287 50,997
--------- ---------
Cash surrender value of life insurance, net 42,151 39,376
Other assets 1,107 1,107
--------- ---------
$ 416,328 397,678
========= =========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 41,177 42,219
Payable to interest owners 251,467 244,078
Payable to officer, net 151,312 110,708
Accrued expenses 96,263 82,355
--------- ---------
Total current liabilities 540,219 479,360
Stockholders' equity:
Preferred stock-no par value. Authorized 1,000,000
shares; no shares issued or outstanding --- ---
Common stock-$.10 par value. Authorized 10,000,000
shares; issued and oustanding 1,597,241 shares
in 1995 and 1994 159,724 159,724
Accumulated deficit (283,615) (241,406)
--------- ---------
Total stockholders' equity (deficit) (123,891) (81,682)
--------- ---------
$ 416,328 397,678
========= =========
</TABLE>
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<TABLE>
PETROL INDUSTRIES, INC. & SUBSIDIARIES
Consolidated Statements of Operations
Three months ended March 31, 1996 and 1995
(unaudited)
1996 1995
---- ----
<S> <C> <C>
Revenues:
Oil and gas sales $ 210,452 218,085
Other operating income 3,573 2,630
--------- ---------
214,025 220,715
--------- ---------
Expenses:
Lease operating expense 165,311 153,979
General and administrative 86,926 84,619
Depreciation, depletion and amortization 1,710 3,525
--------- ---------
253,947 242,123
--------- ---------
Operating loss (39,922) (21,408)
Other income and (expense):
Gain on sale of assets --- 4,212
Interest income 2,321 2,576
Interest expense (4,608) (3,722)
--------- ---------
(2,287) 3,066
--------- ---------
Net loss (42,209) (18,342)
========= =========
Net loss per share (.03) (.02)
========= =========
Average common shares outstanding 1,597,241 1,597,241
========= =========
</TABLE>
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<TABLE>
PETROL INDUSTRIES, INC. & SUBSIDIARIES
Consolidated Statements of Cash Flows
Three months ended March 31, 1996 and 1995
(unaudited)
1996 1995
---- ----
<S> <C> <C>
Operating activities:
Net loss $ (42,209) (18,342)
Adjustments to reconcile net loss to net cash
used by operating activities:
Depreciation, depletion and amortization 1,710 3,525
Gain on sale of assets --- (4,212)
Losses on retirements of property and
equipment included in lease operating expenses --- 4,847
Decrease (increase) in cash surrender value
of life insurance (2,775) (2,775)
Other --- ---
Decrease (increase) in accounts receivable (4,325) (6,532)
Decrease (increase) in inventory (7,194) (19,417)
Decrease (increase) in prepaid expenses (2,177) 904
Increase (decrease) in accounts payable, accrued
expenses, payable to interest owners and
and officer 60,859 31,288
--------- ---------
Net cash used (provided) by operating 3,889 (10,714)
activities
Investing activities:
Purchases of property and equipment --- (8,352)
Proceeds from sale of property and equipment --- 12,550
--------- ---------
Net cash (used) provided by investing
activities --- 4,198
Financing activities-purchase and retirement of
common stock --- ---
Increase (decrease) in cash and cash equivalents 3,889 (6,516)
Cash and cash equivalents at beginning of period 170,012 292,795
--------- ---------
Cash and cash equivalents at end of period $ 173,901 286,279
========= =========
</TABLE>
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<TABLE>
PETROL INDUSTRIES, INC. & SUBSIDIARIES
Consolidated Statements of Changes in Stockholders' Equity
Three months ended March 31, 1996 and 1995
(unaudited)
1996 1995
---- ----
<S> <C> <C>
Stockholders' equity at January 1 $ (81,682) 89,938
Retirement of stock --- ---
Net loss for the three-month period (42,209) (18,342)
--------- --------
Stockholders' equity at March 31 $ (123,891) 71,596
========= =========
</TABLE>
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PETROL INDUSTRIES, INC. & SUBSIDIARIES
Notes to Consolidated Financial Statements
(unaudited)
1. The accompanying unaudited consolidated financial statements have been
prepared by the Registrant in accordance with generally accepted
accounting principles, pursuant to the rules and regulations of the
Securities and Exchange Commission. Certain information and footnote
disclosures normally included in financial statements have been condensed
or omitted pursuant to such rules and regulations, although management
believes that the disclosures are adequate to make the information
presented not misleading. In the opinion of management, the accompanying
financial statements contain all adjustments necessary for a fair state-
ment of the results for the interim periods presented. It is suggested
that these consolidated financial statements be used in conjunction with
the consolidated financial statements and the notes thereto included in
the Registrant's 1995 Annual Report on Form 10-KSB.
2. The consolidated financial statements included herein are consolidated
with the accounts of Petrolind Drilling Funds, Inc. and Realco, Inc.,
both wholly owned subsidiaries of the Registrant, neither of which was
active during 1995 or 1994.
3. Net income per share of common stock is computed on the weighted average
number of shares outstanding during the three months ended March 31. The
weighted average number of shares outstanding was determined by totaling
the number of shares outstanding at the end of each month and dividing
that total by the number of months.
Total Number of
Shares Outstanding
1996 1995
---- ----
January 31 1,597,241 1,597,241
February 28 1,597,241 1,597,241
March 31 1,597,241 1,597,241
4. The expected tax benefit resulting from operating losses for the first
three months of 1996 has not been recorded because it is not expected to
be realizable. Additionally, there were no significant changes in the
temporary differences that give rise to significant portions of the
deferred tax assets and deferred tax liabilities at March 31, 1996.
<PAGE> 7
Item 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS
Oil and gas sales revenues were essentially lower during the first
quarter of 1996, caused principally by a slight decline in production as
compared to the 1995 period. The Company's net loss increased to $42,209, or
($.03) per share, compared to a net loss of $18,342, or ($.02) per share in
the 1995 period.
With an approximate 3.2% decrease in revenues and an approximate 4.9%
increase in expenses, the Company sustained an operating loss of $39,922 in
the first quarter of 1996, compared to an operating loss of $21,408 in the
first quarter of 1995. Oil prices averaged $18.00 per barrel ($17.88
including the barrel equivalent of gas sold by the Company during the period)
during the first quarter of 1996, compared to an average of $16.75 per barrel
in the 1995 period ($16.65 including the barrel equivalent of gas sold during
the period).
The Company had cash and cash equivalents at March 31, 1996 of $173,901,
compared to $170,012 at the end of the 1995 fiscal year.
Management estimates that it owes $251,467 from the settlement of the
Horne Lease dispute with Oryx to owners of other interests in the Horne Lease.
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SIGNATURE
Pursuant to the requirements of the Securities and Exchange Act of 1934,
the Registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
Dated: May 13, 1996
PETROL INDUSTRIES, INC.
By: Joseph M. Rodano
--------------------------------
Joseph M. Rodano
President and Treasurer
<PAGE> 9
EXHIBIT INDEX
Exhibit
No. Description
------- -----------
27 Financial Data Schedule
<TABLE> <S> <C>
<ARTICLE> 5
<MULTIPLIER> 1
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1995
<PERIOD-START> JAN-01-1996
<PERIOD-END> MAR-31-1996
<CASH> 173,901
<SECURITIES> 0
<RECEIVABLES> 85,815
<ALLOWANCES> 0
<INVENTORY> 37,184
<CURRENT-ASSETS> 323,783
<PP&E> 4,738,017
<DEPRECIATION> 4,688,730
<TOTAL-ASSETS> 416,318
<CURRENT-LIABILITIES> 540,219
<BONDS> 0
<COMMON> 159,724
0
0
<OTHER-SE> (123,891)
<TOTAL-LIABILITY-AND-EQUITY> 416,328
<SALES> 210,452
<TOTAL-REVENUES> 214,025
<CGS> 165,311
<TOTAL-COSTS> 165,311
<OTHER-EXPENSES> 88,636
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 4,608
<INCOME-PRETAX> (42,209)
<INCOME-TAX> 0
<INCOME-CONTINUING> (42,209)
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (42,209)
<EPS-PRIMARY> (.03)
<EPS-DILUTED> (.03)
</TABLE>
