United States
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-QSB/A
[X] QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended June 30, 1996
OR
[ ] TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the transition period from...............to...............
Commission file number 0-14250
ENEX OIL & GAS INCOME PROGRAM II - 7, L.P.
(Exact name of small business issuer as specified in its charter)
Texas 76-0163130
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) (Identification No.)
Suite 200, Three Kingwood Place
Kingwood, Texas 77339
(Address of principal executive offices)
Registrant's telephone number:
(713) 358-8401
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
Transitional Small Business Disclosure Format (Check one):
Yes No x
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PART I. FINANCIAL INFORMATION
Item 1. Financial Statements
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ENEX OIL & GAS INCOME PROGRAM II - 7, L.P.
BALANCE SHEET
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JUNE 30,
ASSETS 1996
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(Unaudited)
CURRENT ASSETS:
<S> <C>
Cash and cash equivalents $ 22,991
Accounts receivable - oil & gas sales 42,011
Other current assets 3,416
---------------------
Total current assets 68,418
---------------------
OIL & GAS PROPERTIES
(Successful efforts accounting method) - Proved
mineral interests and related equipment & facili 2,949,427
Less accumulated depreciation and depletion 2,185,321
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Property, net 764,106
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TOTAL $ 832,524
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LIABILITIES AND PARTNERS' CAPITAL
CURRENT LIABILITIES:
Accounts payable $ 9,506
Payable to general partner 3,352
---------------------
Total current liabilities 12,858
---------------------
PARTNERS' CAPITAL:
Limited partners 782,036
General partner 37,630
---------------------
Total partners' capital 819,666
---------------------
TOTAL $ 832,524
=====================
Number of $500 Limited Partner units outstanding 8,870
</TABLE>
See accompanying notes to financial statements.
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Depreciation and depletion expense decreased to $67,982 in the first six months
of 1996 from $98,272 in the first six months of 1995. This represents a decrease
of $30,290 (31%). A 31% decrease in the depletion rate reduced depreciation and
depletion by $30,497. This decrease was slightly offset by the changes in
production, noted above. The decrease in the depletion rate is primarily the
result of an upward revision of the oil and gas reserves during December 1995.
General and administrative expenses increased to $22,874 in the first six months
of 1996 from $14,827 in the first six months of 1995. This increase of $8,047
(54%) is primarily due to more staff time being required to manage the Company's
operations.
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 1995 to 1996 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 cash flow to the
Company's partners. The Company's "available cash flow" is essentially equal to
the net amount of cash provided by operating activities. Company's partners.
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.
Distribution amounts are subject to change if net revenues are greater or less
than expected. Nonetheless, the general partner believes the Company will
continue to have sufficient cash flow to fund operations and to maintain a
regular pattern of distributions.
On August 9, 1996, the Company's General Partner submitted preliminary proxy
material to the Securities Exchange Commission with respect to a proposed
consolidation of the Company with 33 other managed limited partnerships. The
terms and conditions of the proposed consolidation are set forth in such
preliminary proxy material.
As of June 30, 1996, the Company had no material commitments for capital
expenditures. The Company does not intend to engage in any significant
developmental drilling activity.
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SIGNATURES
In accordance with the requirements of the Exchange Act, the registrant
caused this report to be signed on its behalf by the undersigned thereunto duly
authorized.
ENEX OIL & GAS INCOME
PROGRAM II - 7, L.P.
(Registrant)
By:ENEX RESOURCES CORPORATION
General Partner
By: /s/ R. E. Densford
R. E. Densford
Vice President, Secretary
Treasurer and Chief Financial
Officer
November 7, 1996 By: /s/ James A. Klein
-------------------
James A. Klein
Controller and Chief
Accounting Officer
