FORM 10-Q
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
(X) QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF
THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended September 30, 1996
OR
( ) TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF
THE SECURITIES EXCHANGE ACT OF 1934
for the transition period from ______ to ______
Commission file number 1-12108
GULFWEST OIL COMPANY
(Exact name of Registrant as specified in its charter)
Texas 87-0444770
(State or other jurisdiction (IRS Employer
of incorporation) Identification No.)
2644 Sherwood Forest Plaza
Suite 229
Baton Rouge, Louisiana 70816
(Address of principal executive offices) (zip code)
(504) 293-1100
(Registrant's telephone number, including area code)
Indicate by check mark whether the registrant (1) has filed all reports required
to be filed by Section 13 or 15(D) of the Securities Exchange Act of 1934 during
the preceding 12 months (or for such shorter period that the registrant was
required to file such reports), and (2) has been subject to such filing require-
ments for the past 90 days.
NO ___ YES X
The number of shares outstanding of each of the issuer's classes of common
stock, as of the latest practicable date, November 14, 1996, was 1,521,154
shares of Class A Common Stock, $.001 par value.
<PAGE>
<TABLE>
GULFWEST OIL COMPANY
FORM 10-Q FOR THE QUARTER ENDED
SEPTEMBER 30, 1996
<CAPTION>
Page of
Form 10-Q
<S> <C>
Part I: Financial Statements
Item 1. Financial Statements
Balance Sheets, September 30, 1996,
and December 31, 1995 3
Statements of Operations-for the three months
and nine months ended September 30, 1996, and 1995 5
Statements of Cash Flows-for the nine
months ended September 30, 1996, and 1995 6
Notes to Financial Statements 7
Item 2. Management's Discussion and Analysis
of Financial Condition and Results
of Operations 10
Part II: Other Information
Item 4. Submission of Matters to a Vote of Security Holders 13
Item 6. Exhibits and Reports on 8-K 13
Signatures 14
</TABLE>
2
<PAGE>
PART I. FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS.
<TABLE>
GULFWEST OIL COMPANY AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
SEPTEMBER 30, 1996 AND DECEMBER 31, 1995
(UNAUDITED)
<CAPTION>
September 30, December 31,
1996 1995
ASSETS
<S> <C> <C>
Current Assets:
Cash and Cash Equivalents $ 138,907 $ 10,548
Accounts Receivable - Trade 265,772 153,619
Accounts and Notes Receivable - Related Parties 14,900 15,100
Prepaid Expenses 14,567 37,592
----------- ----------
Total Current Assets 434,146 216,859
Oil & Gas Properties, Using the Successful Efforts Method of Accounting:
Undeveloped Properties 37,910 37,910
Developed Properties 4,017,359 3,340,419
Gathering Systems 20,048 20,048
Other Property and Equipment 339,274 278,864
Less - Accumulated Depreciation, Depletion,
and Amortization (1,064,939) (783,375)
----------- --------
Net Oil and Gas Properties and
Other Property and Equipment 3,349,652 2,893,866
Long-Term Notes Receivable - Related Party, Net of Current Portion 168,453 98,675
--------- ---------
Total Assets $ 3,952,251 $3,209,400
=========== ==========
</TABLE>
The accompanying notes are an integral part of these consolidated
financial statements.
3
<PAGE>
<TABLE>
GULFWEST OIL COMPANY AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
SEPTEMBER 30, 1996 AND DECEMBER 31, 1995
(UNAUDITED)
<CAPTION>
September 30, December 31,
1996 1995
LIABILITIES AND STOCKHOLDERS' EQUITY
<S> <C> <C>
Current Liabilities:
Current Portion of Long-Term Debt $ 478,115 $ 59,906
Current Portion of Long-Term Debt - Related Parties 306,863 -
Notes Payable 203,189 87,675
Accounts Payable - Trade 416,792 329,495
Accrued Expenses 59,697 66,489
----------- -----------
Total Current Liabilities 1,464,656 543,565
Long-Term Debt, Net of Current Portion 907,087 1,451,938
Long-Term Debt, Related Parties - 226,101
Commitments and Contingencies - -
Stockholders' Equity:
Preferred Stock, Par Value at $.01, 10,000,000 Shares
Authorized, 900 and -0- Shares Issued and Outstanding
In 1996 and 1995, respectively 402,103 -
Common Stock, Par Value at $.001, 20,000,000 Shares
Authorized, 1,517,904 and 1,086,125 Shares Issued and Outstanding
in 1996 and 1995, respectively 1,518 1,086
Additional Paid-in Capital 4,525,288 3,596,514
Retained Deficit (3,348,401) (2,609,804)
---------- ----------
Total Stockholders' Equity 1,580,508 987,796
--------- ----------
Total Liabilities and Stockholders'
Equity $ 3,952,251 $3,209,400
=========== ==========
</TABLE>
The accompanying notes are an integral part of these consolidated
financial statements.
4
<PAGE>
<TABLE>
GULFWEST OIL COMPANY AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
FOR THE THREE MONTHS AND NINE MONTHS ENDED
SEPTEMBER 30, 1996 AND 1995
(UNAUDITED)
<CAPTION>
Three Months Nine Months
Ended Sept. 30, Ended Sept. 30,
1996 1995 1996 1995
<S> <C> <C> <C> <C>
------------------------------ -----------------------------
Revenues:
Oil and Gas Sales $ 283,340 $ 102,653 $ 757,937 $ 340,505
Gathering System Income 2,402 6,662 5,373 25,605
Prospect Generation Fees - - - 30,000
Management Fees 54,095 24,000 136,536 24,000
----------- ----------- ----------- -----------
Total Revenues 339,837 133,315 899,846 420,110
----------- ----------- ----------- -----------
Costs and Expenses:
Lease Operating Expenses 176,711 88,724 387,888 256,904
Lease Abandonments - - 85,696 -
Depreciation and Depletion 99,813 93,279 281,565 228,242
General and Administrative 261,271 227,935 719,779 671,797
----------- ----------- ---------- -----------
Total Costs and Expenses 537,795 409,938 1,474,928 1,156,943
----------- ----------- ---------- -----------
Income (Loss) From Operations (197,958) (276,623) (575,082) (736,833)
Other Income and Expense:
Interest Income 11,210 8,389 26,827 42,665
Interest Expense (57,108) (44,069) (172,671) (79,352)
----------- ----------- ---------- -----------
Total Other Income and Expense (45,898) (35,680) (145,844) (36,687)
----------- ----------- ---------- -----------
Net Income (Loss) Before Taxes (243,856) (312,303) (720,926) (773,520)
Income Tax Provision - - - -
----------- ----------- ----------- -----------
Net Income (Loss) $ (243,856) $ (312,303) $ (720,926) $ (773,520)
=========== =========== =========== ===========
Earnings Per Share and Common Stock
Equivalents $ (.18) $ (.31) $ (.61) $ (.77)
Weighted Average Number of Shares 1,360,931 1,000,000 1,184,393 1,000,000
=========== =========== =========== ===========
</TABLE>
The accompanying notes are an integral part of these consolidated
financial statements.
5
<PAGE>
<TABLE>
GULFWEST OIL COMPANY AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 1996 AND 1995
(UNAUDITED)
<CAPTION>
1996 1995
------------ ----------
<S> <C> <C>
Cash Flows Provided (Used) By Operating Activities:
Net Income (Loss) $ (720,926) $ (773,520)
Adjustments to Reconcile Net Income (Loss) to Net
Cash Provided (Used) by Operating Activities:
Depreciation, Depletion, and Amortization 281,564 228,242
Lease Abandonments 85,696 -
(Increase) Decrease in Accounts Receivable - Other, Net (112,153) (153,851)
(Increase) Decrease in Prepaid Expenses 23,025 (4,489)
Increase (Decrease) in Accounts Payable - Trade 87,297 138,012
Increase (Decrease) in Accrued Expenses (6,792) 76,000
----------- ----------
Net Cash Provided (Used) By Operating Activities (362,289) (489,606)
----------- ----------
Cash Flows Provided (Used) By Investing Activities:
Purchase of Oil and Gas Properties (762,636) (948,888)
Sale of Oil and Gas Properties - 35,125
Sale of Gathering System - 166,338
Purchase of Other Equipment (60,410) (29,720)
----------- -----------
Net Cash Provided (Used) By Investing Activities (823,046) (777,145)
----------- ----------
Cash Provided (Used) By Financing Activities:
Amortization Prepaid Interest 25,002 -
(Payments) on Notes Payable -Related Parties (119,238) -
(Increase) Decrease in Notes Receivable - Related Party (69,578) 121,042
(Increase) Decrease in Other Assets - (42,139)
Proceeds From Long-Term Debt 49,344 657,507
(Payments) on Long-Term Debt - (5,098)
Proceeds From Notes Payable - Related Parties 200,000 75,000
Proceeds From Notes Payable - Other 109,000 459,000
(Payment) on Notes Payable - Other (185,474) -
Proceeds From Sale of Common Stock 402,535 -
Proceeds From Sale of Preferred Stock 902,103 -
----------- ----------
Net Cash Provided (Used) By Financing Activities 1,313,694 1,265,312
----------- ----------
Increase (Decrease) in Cash and Cash Equivalents 128,359 (1,439)
Cash and Cash Equivalents, Beginning of Period 10,548 30,861
----------- ----------
Cash and Cash Equivalents, End of Period $ 138,907 $ 29,422
=========== ==========
Cash Interest Paid $ 168,911 $ 49,748
=========== ==========
</TABLE>
The accompanying notes are an integral part of these consolidated
financial statements.
6
<PAGE>
GULFWEST OIL COMPANY AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
SEPTEMBER 30, 1996 AND 1995
(UNAUDITED)
1. During interim periods, GulfWest Oil Company ("the Company") follows the
accounting policies set forth in its Annual Report on Form 10-K filed with
the Securities and Exchange Commission. Users of financial information
produced for interim periods are encouraged to refer to the footnotes
contained in the Annual Report when reviewing interim financial results.
In management's opinion, the accompanying interim financial statements
contain all material adjustments, consisting only of normal recurring
adjustments necessary to present fairly the financial condition, the
results of operations, and the statements of cash flows of GulfWest Oil
Company for the interim periods.
The Company has two wholly-owned subsidiaries, WestCo Producing Company
("WestCo") and GulfWest Texas Company ("GulfWest Texas"), both Texas
corporations. WestCo was organized July 14, 1995 and operates properties in
which the Company owns working interests. GulfWest Texas was organized
September 23, 1996 and is the owner of record for certain properties
acquired on October 10, 1996. WestCo has one wholly-owned subsidiary, VanCo
Well Service, Inc. ("VanCo") which was organized September 5, 1996 and
operates well servicing equipment under contract to the Company and third
parties. All material intercompany transactions and balances are eliminated
upon consolidation.
2. As of September 30, 1996, the Company had two note receivables from The
Holifield Companies ("Holifield") in the gross amount of $184,000 and a net
amount of $13,000, after reserves for bad debt. Management is currently in
negotiations with Holifield to settle these notes for cash or the transfer
of assets.
3. On January 23, 1996, the Company received $100,000 as final funding of a
$150,000 note payable to an individual due in July 1997. The initial
funding of $50,000 was received in December 1995. At the completion of the
funding, the individual received warrants to purchase 15,000 shares of
Common Stock at a price of $1.00 per share. The warrants were exercised
during March 1996.
4. On January 25, 1996, the Company issued warrants to purchase up to 175,000
shares of Common Stock at $1.50 per share to a financial advisor for
assistance in arranging additional financing for the Company. Also, on
February 5, 1996, the Company issued warrants to purchase up to 40,000
shares of Common Stock at $2.25 per share to a public relations consultant.
None of these warrants has been exercised to date.
7
<PAGE>
5. On March 1, 1996, the Company completed a Private Offering of Cumulative
Convertible Class A Preferred Stock with a stated dividend rate of 10% of
purchase price per share, payable quarterly as declared. During the first
quarter, 1,000 shares of the Preferred Stock were sold for $500,000. In
August 1996, the Preferred Stock was converted to 142,857 shares of Common
Stock. On August 22, 1996, the Board of Directors declared a dividend on
the Class A Preferred Stock for the period during which the Preferred Stock
was outstanding and authorized the issuance of Common Stock, with a set
value of $1.75 per share, as payment of the dividend. On August 31, 1996,
the Company issued 10,097 shares of Restricted Common Stock to the holder
of the Class A Preferred Stock in lieu of cash for declared dividends of
$17,671.23. (See "Item 2. Management's Discussion and Analysis of Financial
Condition and Results of Operations-Financial Condition and Capital
Resources".)
6. On March 27, 1996, the Company entered into agreements with two of its
officers to convert deferred compensation in the amount of $47,340 to notes
payable due April 1, 1997. Additionally, it entered into agreements with
ten existing note holders to extend the due date on their notes to April 1,
1997 and pay accrued interest of $28,450 on that date.
7. During the second and third quarters, the Company sold 30,000 and 176,000
shares, respectively, of Common Stock at a net price of $1.58 per share in
a private offering. The holders were also issued a warrant to purchase one
share of Common Stock at an exercise price of $1.75 for each two shares of
Common Stock purchased. The Company also issued warrants to purchase 75,000
shares of Common Stock at an exercise price of $1.75 per share to a
financial advisor for assistance in this offering.
8. In a Private Placement to a group of investors completed in May 1996, the
Company sold 2,000 shares of Cumulative Convertible Participating Class AA
Preferred Stock, with a stated dividend rate of 10% of purchase price per
share, payable annually on a cumulative basis as declared. Each shares of
the Preferred Stock is convertible to 100 shares of Common Stock, subject
to antidilution provisions. In addition to dividends, the Class AA
Preferred Stockholders are entitled to a distribution of up to 25% of the
Company's net profits from the properties purchased with their funds, with
the combined return on their investment not to exceed 20%. The holders were
also issued warrants to purchase up to 50,000 shares of Common Stock at
$5.75 per share. Funding of $450,000 has been drawn and was used to
purchase interests in oil and gas properties. The remainder of the funds
will be drawn as needed to purchase additional oil and gas interests, or to
enhance properties the Company currently owns.
9. During the second quarter, the Company issued 11,000 shares of Common Stock
and warrants to purchase up to 175,000 shares of Common Stock at $1.50 per
share, 75,000 shares of Common Stock at $2.00 per share, and 50,000 shares
of Common Stock at $5.00 per share to various financial consultants for
assistance in raising additional capital.
10. During the second quarter, the Company entered into an agreement to
purchase working interests in a group of oil properties in West Texas for
$3,100,000 and tendered a non- refundable deposit of $200,000. The purchase
of this property was completed on October 10, 1996, with the Company paying
$1,600,000 in cash and giving the seller a note for $1,500,000.
To fund the $1,600,000 in cash, the Company used the net proceeds at
October 10, 1996 from the Company's Private Offering of Class AAA Preferred
Stock and warrants. The Preferred Stock and warrants were sold in $500
units, each unit consisting of one share of Preferred Stock, a warrant to
purchase up to 50 shares of Common Stock at $1.75 per share and a warrant
to purchase up to 50 shares of Common Stock at $4.50 per share. The holders
of the Preferred Stock are entitled to receive dividends on a cumulative
basis, as declared, at the rate of 9% per annum of purchase price per
share. The Preferred Stock is convertible, in whole or in part, to Common
Stock at a conversion rate equal to the aggregate liquidation price of $500
per share, plus accrued and unpaid dividends, divided by a price which is
the lesser of 70% of the average closing bid price of the Company's Common
Stock, as reported by the Nasdaq, for the fifteen trading days that end on
the third day preceding the date of the conversion or $3.50 per share. If
the Preferred Stock has not been converted to Common Stock and the
dividends are in arrears for more than four quarters, on any dividend
payment date after January 1, 1998, the holder may elect to exchange the
Preferred Stock on a prorata basis for Common Stock of GulfWest Texas, the
subsidiary which owns the properties acquired with the proceeds of the
offering.
11. On September 4, 1996, the Company received $200,000 from a company whose
president is a director of GulfWest and issued a 60-day note bearing
interest at the rate of 10% per annum. The note proceeds were used as a
non-refundable deposit on the West Texas properties and the note was repaid
subsequent to September 30, 1996 from proceeds of the Class AAA Preferred
Stock Offering (See Note 10 above).
12. On September 30, 1996, the Company's principal financial advisor exercised
warrants it had previously been issued to purchase 45,625 shares of Common
Stock at the purchase price of $.50 per share. The financial advisor had
been issued warrants to purchase 20,625 shares as a commission for the sale
of units of the Company's 1995 Private Offering of Debentures and the
remaining warrants for 25,000 shares were issued for the advisor's
assistance in raising additional capital.
8
<PAGE>
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS
OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
Overview
GulfWest Oil Company ("GulfWest" or the "Company") is an independent oil
and gas company primarily engaged in the acquisition of producing oil and gas
properties with proved reserves which have the potential for increased value
through continued development and enhanced recovery technology. Its objective is
to significantly increase the production of such properties through workovers of
the wells, horizontal drilling from existing wellbores, development drilling or
other enhancement operations. At September 30, 1996, the Company owned working
interests in 65 gross producing oil and gas wells and royalty interests in 2
additional wells.
The Company's subsidiary, WestCo Producing Company ("WestCo"), currently
operates approximately one-half of the properties in which the Company owns
interests. As the Company continues to grow through acquisitions, it intends to
purchase a significant working interest in each property so that WestCo can
become the operator.
On July 17, 1995, the Company acquired from Sikes Producing, Inc. ("SPI"),
beneficial ownership of an additional 42.5% of the working interests in 31
proved producing oil and gas properties located in the Madisonville Field,
Texas. Under a Restructuring Agreement, GulfWest contributed its 37.5% ownership
in a gas pipeline gathering system and assumed a $640,000 nonrecourse note as
payment for the working interests. GulfWest also purchased certain additional
working interests in Madisonville from SPI for a purchase price of $100,000,
with $20,000 paid in cash at closing and a promissory note for $80,000 which was
subsequently paid in full in 1996. It was also agreed that the Company's
subsidiary, WestCo would assume operations of the 31 wells, effective August 1,
1995. These actions increased the Company's proved reserves by 44% over December
31, 1994 and provided additional operating income to the subsidiary, in that
WestCo receives a management fee of $500 per month per producing well.
On June 6, 1996, the Company bought a 70% working interest in two fields in
Polk and Hardin Counties, Texas that had 16 producing wells for approximately
$120,000 and purchased a 50% working interest in a field in Brazoria County,
Texas containing 6 wells for approximately $90,000. The Company's WestCo
subsidiary is managing the wells in Polk and Hardin Counties for a fee of $250
per well.
Subsequent to September 30, 1996, the Company purchased a 100% working
interest in a field in Crockett County, Texas (the Vaughn Field) for $3,100,000.
This acquisition includes approximately 280 oil wells on 5,100 acres. Currently
82 of the wells are active, producing an aggregate of 230 barrels per day. The
Company plans to place 80 of the inactive wells back in production by the end of
the first quarter of 1997 through enhancement and recompletions, increasing
production to approximately 420 barrels of oil per day. The properties have
proved developed producing and non-producing oil reserves estimated at 1.3
million barrels.
9
<PAGE>
Results of Operations
Comparative results of operations for the periods indicated are discussed below.
Three-Month Period Ended September 30, 1996 compared to Three Month Period Ended
September 30, 1995.
Oil and gas sales for the third quarter increased from $102,653 in 1995 to
$283,340 in 1996, due primarily to the acquisition of the additional working
interests from SPI discussed above and increases in the price of oil from $17 to
$22 per barrel and the price of natural gas from $1.26 to $1.85 per Mcf. In
1996, WestCo received $54,095 in management fees for operating the producing
wells compared to $24,000 in 1995. The increase is due to a full quarter in 1996
versus two months in 1995 and the additional wells being managed in 1996.
Lease operating expenses for the period in 1996 increased by 100% over
1995, while revenues increased 180%. The increase in operating expenses for the
newly acquired interests was offset by decreases due to 1) certain unproductive
wells being plugged and abandoned in 1995; 2) successful workovers and
recompletions on certain wells in 1995; and, 3) cost control and reduction
measures implemented by WestCo following the assumption of operations of August
1, 1995.
Depreciation and depletion increased for the period due to the acquisition
of the additional working interests from SPI and other smaller acquisitions.
Interest expense for the third quarter of 1996 compared to 1995 increased
due to the issuance of $500,000 in debentures with an annual interest rate of 9
1/2%, a $150,000 note payable to an individual with an annual interest rate of
7%, and the assumption of a $640,000 nonrecourse note with an annual interest
rate of 8% in conjunction with the purchase of the interests from SPI.
Nine-Month Period Ended September 30, 1996 compared to Nine Month Period
Ended September 30, 1995.
Oil and gas revenues increased by $474,597 in the first nine months of 1996
compared to the same period in 1995 due to the acquisition of the additional
working interests and the increase in oil and gas prices discussed above.
Gathering system income declined by $19,000 as a result of the Company's
contributing its interest in the pipeline in exchange for working interests in
the Madisonville wells.
The Company recorded $30,000 of prospect generation fees from the sale of a
partial interest in three producing properties during the first nine months of
1995. During 1996, the Company received $136,536 in management fees for
operating the producing wells compared to $24,000 during the period in 1995.
Operations did not commence until August 1, 1995.
10
<PAGE>
Lease operating expenses, depreciation and depletion all increased for the
period in 1996 compared to 1995, due to the additional working interests
acquired effective August 1, 1995. The increase in lease operating expenses was
offset by decreases due to factors discussed above. Interest expense increased
for the reasons cited above.
Financial Conditions and Capital Resources
During the first nine months of 1996, the cash needs of the Company have
been met by the receipt of $1,663,000 in net proceeds, including $358,000 from
notes payable, $902,000 from the sale of Preferred Stock and $403,000 from the
sale of Common Stock. Of these proceeds, the Company used approximately $362,000
to offset negative operating cash flow, $175,000 to pay off note holders,
$763,000 for the acquisition and enhancement of oil and gas properties, and the
remainder is to be used as a cash reserve while the Company continues its
efforts to increase cash flow. At September 30, 1996, the Company had total
assets of $3,952,251, negative working capital of $1,030,510 and shareholders'
equity of $1,392,401, compared to December 31, 1995 when the Company had total
assets of $3,209,400, negative working capital of $326,706 and shareholders'
equity of $987,796. (See "Notes to the Consolidated Financial Statements").
Management's plans for growth and profitability during the remainder of
1996 include taking several measures to increase production and operating
revenues: 1) acquiring ownership and operations of additional oil and gas
properties; 2) increasing cash flow from properties currently owned by
recompleting and enhancing certain wells; and, 3) drilling horizontally from
existing wellbores to develop proved reserves. The Company intends to raise the
necessary capital for these projects through the sale of additional shares of
preferred and/or Common Stock, the arrangement of joint ventures with outside
investors, and the securing of nonrecourse financing. The Company's ability to
succeed in these goals is subject to a number of variables, including production
levels, oil and gas market prices, and the availability of funds. There can be
no assurances that operations and other capital resources will increase
sufficiently to allow the Company to become cash flow positive in 1996.
11
<PAGE>
PART II. OTHER INFORMATION
ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.
The Company's annual meeting was held on July 2, 1996. The only matter
submitted to a vote of the shareholders was the election of directors. All 5 of
the serving directors were re- elected.
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K.
(a) Exhibits -
None
(b) Form 8-K -
None
12
<PAGE>
SIGNATURES
Pursuant to the requirements of Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
GULFWEST OIL COMPANY
(Registrant)
Date: November 14, 1996 By: /s/ Jim C. Bigham
-----------------------
Jim C. Bigham
Executive Vice President
and Secretary
Date: November 14, 1996 By: /s/ John F. Bendure
-----------------------
John F. Bendure
Vice President of Finance
and Treasurer
13
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM GULFWEST OIL
COMPANY'S QUARTERLY REPORT FILED ON FORM 10-Q FOR THE QUARTER ENDED SEP-30-96
AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<CIK> 0000813779
<NAME> 0
<MULTIPLIER> 1
<CURRENCY> 0
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> DEC-31-1995
<PERIOD-START> JUL-01-1996
<PERIOD-END> SEP-30-1996
<EXCHANGE-RATE> 1
<CASH> 138,907
<SECURITIES> 0
<RECEIVABLES> 265,772
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 434,146
<PP&E> 4,075,317
<DEPRECIATION> (1,064,939)
<TOTAL-ASSETS> 3,952,251
<CURRENT-LIABILITIES> 1,464,656
<BONDS> 0
0
402,103
<COMMON> 1,518
<OTHER-SE> 1,176,887
<TOTAL-LIABILITY-AND-EQUITY> 3,952,251
<SALES> 757,937
<TOTAL-REVENUES> 899,846
<CGS> 0
<TOTAL-COSTS> 1,474,928
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> (172,671)
<INCOME-PRETAX> (720,926)
<INCOME-TAX> 0
<INCOME-CONTINUING> (720,926)
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (720,926)
<EPS-PRIMARY> (.61)
<EPS-DILUTED> (.61)
</TABLE>
