FORM 6-K
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Report of Foreign Private Issuer
Pursuant to Rule 13a-16 or 15d-16 of
the Securities Exchange Act of 1934
For the month of October 1996
PRAIRIE PACIFIC ENERGY CORPORATION
(Translation of registrant's name into English)
302, 1168 Hamilton Street, Vancouver, British Columbia, Canada, V6B 2S2
(Address of principal executive offices)
[Indicate by check mark whether the registrant files or will file
annual reports under cover Form 20-F or Form 40-F.]
Form 20-F X Form 40-F
[Indicate by check mark whether the registrant by furnishing the
information contained in this Form is also thereby furnishing the information
to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange
Act of 1934.]
Yes No X
[If "Yes" is marked, indicate below the file number assigned to the
registrant in connection with Rule 12g3-2(b): 82- ]
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934,
the registrant has duly caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized.
PRAIRIE PACIFIC ENERGY CORPORATION
(Registrant)
Date December 12, 1996 By /s/ Malcolm F.W. Todd
Malcolm F.W. Todd, President
(Signature)*
*Print the name and title of the signing officer under his signature.
Page 1 of 8 Pages
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BRAZEAU RIVER WELL ENCOUNTERS HYDROCARBONS IN TWO ZONES
Calgary, September 12th, 1996 - An oil-and-gas reef test near Zeta Lake,
Alberta has encountered natural gas in the Mississippian zone and oil in the
Nisku, Prairie Pacific Energy Corporation announced today.
An extended test of the Nisku zone will be conducted in the Brazeau
12-29-48-12 W5M discovery, said Prairie Pacific Energy's president Malcom Todd.
The test will be conducted when appropriate permits are received.
Prairie Pacific holds a 10 per cent interest in the location operation by
Gulf Canada Resources Limited, which has an 80 per cent working interest. Inspan
Investments Limited, a Prairie Pacific affiliate holds the remaining 10 per
cent. Zeta Lake is located 90 miles west of Edmonton Alberta, and has been the
venue of significant Nisku reef oil in the Brazeau area by Gulf. The previous
two wells in the program, in which Prairir Pacific and Inspan have no interest,
struck commercial volumes of natural gas and condensate.
Prairie Pacific Energy Corporation has oil and natural gas producing and
processing interest in northeast British Columbia and Alberta, and a strong land
position with prospects in Alberta, B.C., Montana and North Dakota.
For further information, please contact:
Prairie Pacific Energy Corporation
Malcolm F.W. Todd, President
Tel: (403) 237-6761
(604) 684-2356
The Alberta Stock Exchange has neither approved nor disapproved the
information contained herein.
Page 2 of 8 Pages
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PRAIRIE PACIFIC ENERGY CORPORATION
3
INTERIM CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
June 30, 1996 and 1995
[Logo of oil well]
RESOURCE DEVELOPMENT FOR NORTH AMERICANS
Page 3 of 8 Pages
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PRAIRIE PACIFIC ENERGY CORPORATION
CONSOLIDATED BALANCE SHEETS
(Unaudited)
June 30, June 30,
1996 1995
ASSETS
CURRENT ASSETS
Cash and short-term deposits $ 634,903 $ 615,569
Marketable securities 51,797 20,091
Accounts receivable 98,408 124,727
Share subscriptions receivable - Note 2 220,000 -
Prepaid expenses 11,370 11,043
Deferred prospectus costs 132,499 -
1,148,977 771,430
PROPERTY AND EQUIPMENT 2,505,341 2,839,104
$3,654,318 $3,610,534
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES
Accounts payable and accrued liabilities $ 605,062 $ 720,739
LONG-TERM BANK LOAN 1,000,000 980,000
INSPAN DEBENTURE PAYABLE - Note 1 150,000 -
ADVANCES FROM DRILLING PROGRAMS - 69,866
LIABILITY UNDER EMPLOYMENT CONTRACT 687,075 -
RESERVE FOR ABANDONMENT AND SITE RESTORATION 231,427 201,851
LIABILITY UNDER EMPLOYMENT CONTRACT 687,075 -
NON-CONTROLLING INTEREST 40,583 -
SHAREHOLDERS' EQUITY
Share capital - Note 2 7,792,650 7,508,229
Contributed surplus 1,921,896 1,921,896
9,714,546 9,430,125
Deficit (8,774,375) (7,792,047)
940,171 1,638,078
$3,654,318 $3,610,534
See accompanying notes.
Page 4 of 8 Pages
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PRAIRIE PACIFIC ENERGY CORPORATION
CONSOLIDATED STATEMENTS OF EARNINGS
(Unaudited)
Nine months ended
June 30, June 30,
1996 1995
REVENUES
Oil and gas net of crown royalties
of $84,130, ($82,239 - 1995) $ 680,967 $ 626,749
Processing income 161,535 163,598
Interest 4,372 4,645
846,874 794,992
EXPENSES
Production and lease rentals 453,337 477,924
Administrative 470,555 462,930
Interest 59,678 20,145
Reclamation and abandonment costs 39,069 -
Loss (Gain) on marketable securities (22,660) 10,574
999,979 971,573
WORKING CAPITAL USED IN OPERATIONS (153,105) (176,581)
CHARGES (CREDIT) NOT REQUIRING WORKING CAPITAL
Depletion 176,420 113,478
Depreciation 64,982 55,753
Provision for abandonment and site restoration 24,150 27,200
Gain on sale of Inspan - Note 1 (300,140) -
(34,588) 196,431
Loss before minority interest (118,517) (373,012)
MINORITY INTEREST IN (LOSS) OF SUBSIDIARY (10,611) -
Loss $ (107,906) $ (373,012)
Loss per share $ (0.02)$ (0.07)
Fully diluted loss per share $ (0.02)$ (0.07)
CONSOLIDATED STATEMENTS OF DEFICIT
Nine months ended
June 30, June 30,
1996 1995
DEFICIT, beginning of period $(8,666,469) $(7,419,035)
Loss (107,906) (373,012)
DEFICIT, end of period $(8,774,375) $(7,792,047)
See accompanying notes.
Page 5 of 8 Pages
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PRAIRIE PACIFIC ENERGY CORPORATION
CONSOLIDATED STATEMENTS OF CHANGES IN FINANCIAL POSITION
(Unaudited)
Nine months ended
June 30, June 30,
1996 1995
OPERATING ACTIVITIES
Working capital used in operations $(153,105) $(176,581)
FINANCING ACTIVITIES
Flow-through shares issued - Note 2 220,000 -
Shares issued on private placement 102,000 -
Repurchase of shares (32,755) (111,636)
Shares issued by Inspan 40,196 -
Sale of Inspan shares - Note 1 312,258 -
Sale of Inspan debenture - Note 1 150,000 -
Advance (repayment) of bank indebtedness - (20,000)
Net change in non-cash working capital (295,511) 346,976
496,188 215,340
INVESTING ACTIVITIES
Purchase of oil and gas properties (59,448) -
Development of oil and gas properties (40,392) (41,916)
Purchase of office equipment (8,441) (2,917)
(108,281) (44,833)
Increase (decrease) in cash 234,802 (6,074)
CASH, beginning of period 400,101 621,643
CASH, end of period $634,903 $ 615,569
See accompanying notes.
Page 6 of 8 Pages
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PRAIRIE PACIFIC ENERGY CORPORATION
NOTES
NOTE 1 - INVESTMENT IN SUBSIDIARY
In June 1996 Prairie sold 600,000 shares of Inspan on the open market for
a gain of $300,140 reducing Prairie's ownership of Inspan to 74.9%.
In April 1996, Prairie sold the $150,000 in debentures of Inspan it held
for $150,000.
NOTE 2 - SHARE CAPITAL
In June 1996, Prairie issued 200,000 common shares for $220,000 and
renounced $220,000 of exploration expenditures for tax purposes to the
investors.
Payment for the shares is due in December 1996.
NOTE 3 - SUBSEQUENT EVENTS
In June 1996, Prairie's wholly owned subsidiary Six Mile Resources Ltd.
acquired 600,000 shares of Inspan for $300,000 through a private placement.
In July and August 1996, Prairie sold an additional 5,500,000 shares of
Inspan on the open market reducing its ownership of Inspan to 17.5% of outstand-
ing shares at August 31, 1996.
CORPORATE INFORMATION
This report to the shareholders for the period ended June 30, 1996, is
presented on behalf of the directors by Malcolm F.W. Todd, President, Praririe
Pacific Energy Corporation.
Vancouver Office Calgary Office Field Office
302, 1168 Hamilton St. 400, 441 Fifth Ave,. S.W. Box 5
Vancouver, B.C. V6B 2S2 Calgary, Alberta, T2P 2V1 Cecil Lake, B.C. V0C 1G0
Tel: (604) 684-2356 Tel: (403) 237-6761 Tel: (604) 785-5177
Fax: (604) 684-4265 Fax: (403) 233-0398 Fax: (604) 785-5177
Officers & Directors
Malcolm F.W. Todd, President & Director.........................Vancouver, B.C.
Robert H.O. Todd, Secretary-Treasurer & Director................Vancouver, B.C.
Benjamin A. Ward, Vice President-Exploration....................Calgary, Alberta
Douglas H. Mitchell, Q.C., Director.............................Calgary, Alberta
Murrary K. Scalf, Director......................................Calgary, Alberta
Steven J.S. Mitchell, Director..................................Vancouver, B.C.
Oil and Gas Properties
Canada..............................................British Columbia and Alberta
U.S.A. .....................................Montana, North Dakota and California
Registrar and Transfer Agent
The Montreal Trust Company of Canada at its offices in Calgary, Vancouver and
Toronto.
530 Eighth Avenue, Southwest, Calgary, Alberta
510 Burrard Street, Vancouver, British Columbia
15 King Street West, Toronto, Ontario
Page 7 of 8 Pages
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Auditors
Ramsay, Dalton & Co.
1100, 800 Sixth Avenue, Southwest, Calgary, Alberta
Legal Counsel
Howard, Mackie Douglas, Symes & Brissenden
1000 Canterra Tower 2100 One Bentall Centre
400 Third Avenue Southwest 505 Burrard Street
Calgary, Alberta Vancouver, British Columbia
Piper & Marbury L.L.P.
1251 Avenue of the Americas
New York, New York
U.S.A.
Registered Office
Douglas Symes & Brissenden
2100 One Bentall Centre
505 Burrard Street
Vancouver, British Columbia
Banking
The Alberta Treasury Branches
Main Branch, Stephen Avenue, Calgary, Alberta
Engineering Consultants
Norwest Engineering Ltd. Chapman Petroleum Engineering Ltd.
902, 1015 Fourth Street S.W. 750, 840 Sixth Avenue S.W.
Calgary, Alberta Calgary, Alberta
Subsidiary Companies
Ballinderry Royalties Corporation (U.S.A.) 100%
Six Mile Resources Ltd. (Canada) 100%
Inspan Investments Limitd 75%
The Alberta Stock Exchange Symbol: NY
Stock Exchanges
The shares of the Company are listed on the Alberta stock Exchange, symbol, PRP
and also trade through the facilities of NASDAQ OTC Bulletin Board, symbol,
PRPEF.
Prairie Pacific's Annual Form 20-F Filing with the S.E.C., Washington, D.C. is
available from our offices upon request.
Prairie Pacific is listed in Standard & Poor's Corporate Records and Stock
Guide.
Page 8 of 8 Pages
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