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 June 30, 1998
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.)
16800 Dallas Parkway
Suite 250
Dallas, Texas 75248
(Address of principle executive offices) (zip code)
(972) 250-4440
(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
requirements 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, August 14, 1998, was 2,963,517 shares
of Class A Common Stock, $.001 par value.
<PAGE>
<TABLE>
GULFWEST OIL COMPANY
FORM 10-Q FOR THE QUARTER ENDED
JUNE 30, 1998
<CAPTION>
Page of
Form 10-Q
<S> <C>
Part I: Financial Information
Item 1. Financial Statements
Consolidated Balance Sheets, June 30, 1998,
and December 31, 1997 3
Consolidated Statements of Operations-for the three months
and six months ended June 30, 1998, and 1997 5
Consolidated Statements of Cash Flows-for the six
months ended June 30, 1998, and 1997 6
Notes to Consolidated Financial Statements 8
Item 2. Management's Discussion and Analysis
of Financial Condition and Results
of Operations 9
Part II: Other Information 12
Signatures 16
</TABLE>
2
<PAGE>
PART I. FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS.
<TABLE>
GULFWEST OIL COMPANY
CONSOLIDATED BALANCE SHEETS
JUNE 30, 1998 AND DECEMBER 31, 1997
(UNAUDITED)
<CAPTION>
June 30, December 31,
1998 1997
<S> <C> <C>
ASSETS
Current Assets:
Cash and Cash Equivalents $ - $ 626,519
Accounts Receivable - Trade, Net of Allowance for Doubtful
Accounts of -0- in 1998 and 1997 588,290 855,383
Prepaid Expenses 137,192 54,494
Total Current Assets 725,482 1,536,396
Oil & Gas Properties, Using the Successful Efforts Method of Accounting:
Undeveloped Properties 4,585 4,585
Developed Properties 21,283,230 17,026,171
Other Property and Equipment 1,310,430 1,171,214
Less - Accumulated Depreciation, Depletion,
and Amortization (3,435,655) (2,874,403)
Net Oil and Gas Properties and
Other Property and Equipment 19,162,590 15,327,567
Deposits on Developed Oil & Gas Properties 18,744 225,892
Total Assets $ 19,906,816 $ 17,089,855
</TABLE>
The accompanying notes are an integral part of these
consolidated financial statements.
3
<PAGE>
<TABLE>
GULFWEST OIL COMPANY
CONSOLIDATED BALANCE SHEETS
JUNE 30, 1998 AND DECEMBER 31, 1997
(UNAUDITED)
<CAPTION>
June 30, December 31,
1998 1997
LIABILITIES AND STOCKHOLDERS' EQUITY
<S> <C> <C>
Current Liabilities:
Payable to Financial Institutions $ 90,449 $ -
Notes Payable 300,000 350,000
Notes Payable - Related Party 150,000 150,000
Current Portion of Long-Term Debt 9,741,716 311,233
Current Portion of Long-Term Debt - Related Parties 245,000 350,000
Accounts Payable - Trade 1,681,805 1,427,661
Accrued Expenses 295,929 290,362
Total Current Liabilities 12,504,899 2,879,256
Long-Term Debt, Net of Current Portion 5,381,664 11,185,055
Long-Term Debt, Related Parties - 1,000,000
Total Long-Term Debt 5,381,664 12,185,055
Commitments and Contingencies - -
Stockholders' Equity:
Preferred Stock, Par Value at $.01, 10,000,000 Shares
Authorized, 5,200 and 5,390 shares Issued and Outstanding
in 1998 and 1997, respectively 52 54
Common Stock, Par Value at $.001, 20,000,000 Shares
Authorized, 2,958,658 and 1,759,185 Shares Issued and Outstanding
in 1998 and 1997, respectively 2,958 1,759
Additional Paid-in Capital 9,319,270 7,583,236
Retained Deficit (7,149,553) (5,407,031)
Long-Term Accounts and Notes Receivable -
Related Parties, Net of Allowance for Doubtful Accounts
of $448,230 in 1998 and 1997 (152,474) (152,474)
Total Stockholders' Equity 2,020,253 2,025,544
Total Liabilities and Stockholders'
Equity $ 19,906,816 $ 17,089,855
</TABLE>
The accompanying notes are an integral part
of these consolidated financial statements.
4
<PAGE>
<TABLE>
GULFWEST OIL COMPANY
CONSOLIDATED STATEMENTS OF OPERATIONS
FOR THE THREE MONTHS AND SIX MONTHS ENDED
JUNE 30, 1998 AND 1997
(UNAUDITED)
<CAPTION>
Three Months Six Months
Ended June 30, Ended June 30,
1998 1997 1998 1997
<S> <C> <C> <C> <C>
Revenues:
Oil and Gas Sales $ 474,874 $ 1,056,002 $ 1,153,133 $ 2,210,623
Well Servicing Revenues 180,000 46,786 307,522 119,841
Operating Overhead and Other Income 53,630 40,010 88,599 117,056
Total Revenues 708,504 1,142,798 1,549,254 2,447,520
Costs and Expenses:
Lease Operating Expenses 436,757 425,093 903,309 822,179
Cost of Well Servicing Operations 170,912 41,649 288,841 86,240
Depreciation, Depletion and Amortization 263,300 318,953 562,263 551,721
General and Administrative 440,995 345,911 784,067 657,550
Total Costs and Expenses 1,311,964 1,131,606 2,538,480 2,117,690
Income (Loss) From Operations (603,460) 11,192 (989,226) 329,830
Other Income and Expense:
Interest Income 6,497 143 6,525 441
Interest Expense (390,639) (250,143) (702,132) (483,057)
Gain (Loss) on Sale of Fixed Assets (5,322) - (5,322) -
Total Other Income and Expense (389,464) (250,000) (700,929) (482,616)
Net Income (Loss) Before Taxes (992,924) (238,808) (1,690,155) (152,786)
Income Tax Provision - - - -
Net (Loss) (992,924) (238,808) (1,690,155) (152,786)
Preferred Stock Dividend Requirement (62,155) (59,929) (124,366) (150,061)
Net (Loss) to Common Shareholders $ (1,055,079) $ (298,737) $ (1,814,521) $ (302,847)
(Loss) Per Share and Common Stock
Equivalents $ (.58) $ (.17) $ (1.01) $ (.18)
Weighted Average Number of Shares 1,824,853 1,735,669 1,792,200 1,695,551
</TABLE>
The accompanying notes are an integral part
of these consolidated financial statements.
5
<PAGE>
<TABLE>
GULFWEST OIL COMPANY
CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE SIX MONTHS ENDED JUNE 30, 1998 AND 1997
(UNAUDITED)
<CAPTION>
1998 1997
<S> <C> <C>
Cash Flows Provided (Used) By Operating Activities:
Net Income (Loss) $ (1,690,155) $ (152,786)
Adjustments to Reconcile Net Income (Loss) to Net
Cash Provided By (Used By) Operating Activities:
Depreciation, Depletion, and Amortization 562,263 551,721
Common Stock Options and Warrants Issued
and Charged to Operations 15,356 20,000
(Increase) Decrease in Accounts Receivable - Trade, Net 267,093 (58,873)
(Increase) Decrease in Prepaid Expenses (82,698) (65,376)
Increase (Decrease) in Accounts Payable 565,644 (135,723)
Increase (Decrease) in Accrued Expenses 105,658 56,323
Net Cash Provided By (Used By) Operating Activities (256,839) 215,286
Cash Flows From Investing Activities:
Purchase of Property and Equipment (1,253,035) (1,352,593)
(Increase) Decrease in Accounts and Notes and Receivable - Related Party - 90,292
Payments Received on Loans to Related Parties - (200,000)
Net Cash Provided (Used) By Investing Activities (1,253,035) (1,462,301)
Cash Flows From Financing Activities:
(Increase) in Notes Receivable - (100,000)
Proceeds From Sale of Common Stock, Net 148,872 155,251
Proceeds From Sale of Preferred Stock, Net - 231,980
Payments on Debt (8,836,799) (985,372)
Proceeds From Debt Issuance 9,526,785 2,184,368
Dividends Paid (45,952) (71,745)
Net Cash Provided (Used) By Financing Activities 792,906 1,414,482
Increase (Decrease) in Cash and Cash Equivalents (716,968) 167,467
Cash and Cash Equivalents, Beginning of Period 626,519 84,477
Cash and Cash Equivalents, End of Period $ (90,449) $ 251,944
Cash Interest Paid $ 606,431 $ 205,167
</TABLE>
The accompanying notes are an integral part
of these consolidated financial statements.
6
<PAGE>
<TABLE>
GULFWEST OIL COMPANY
CONSOLIDATED STATEMENTS OF CASH FLOWS (CONTINUED)
FOR THE SIX MONTHS ENDED JUNE 30, 1998 AND 1997
(UNAUDITED)
<CAPTION>
1998 1997
<S> <C> <C>
Supplemental Schedule of Non Cash Investing and Financing Activities:
Notes payable - Retired by Issuing Common Stock $ 50,000 $ -
Current Portion of Long-Term Debt - Related Parties -
Retired by Issuing Common Stock 105,000 25,000
Accounts Payable - Retired by Issuing Common Stock 311,500 -
Accrued Expenses - Retired by Issuing Common Stock 100,091 -
Long-Term Debt - Related Parties - Retired by Issuing Common Stock 1,000,000 -
Oil and Gas Properties Acquired Through Issue of Debt 2,830,429 -
Other Property and Equipment Acquired Through Issue of Debt 106,676 267,715
Total Non Cash Investing and Financing Activities $ 4,503,696 $ 292,715
</TABLE>
The accompanying notes are an integral part
of these consolidated financial statements.
7
<PAGE>
GULFWEST OIL COMPANY
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
JUNE 30, 1998 AND 1997
(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.
2. The accompanying financial statements include the Company and its
wholly-owned subsidiaries: WestCo Oil Company ("WestCo"), formed in
1995; VanCo Well Service, Inc. ("VanCo"), GulfWest Texas Company
("GWT") and GulfWest Permian Company ("GWP") all formed in 1996; and
DutchWest Oil Company ("DutchWest") formed in 1997. All material
intercompany transactions and balances are eliminated upon
consolidation.
3. 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.
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. The Company's
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.
Management's acquisition strategy is for the Company to be an aggressive
consolidator of small, under-capitalized operators with undeveloped properties
and a purchaser of oil and gas properties that may be non-core to larger
independent and major oil and gas companies.
Results of Operations
Comparative results of operations for the periods indicated are discussed below.
Three Month Period Ended June 30, 1998 compared to Three Month Period Ended June
30, 1997.
Revenues
Oil and gas sales for the second quarter decreased from 55% from $1,056,000
in 1997 to $474,900 in 1998, primarily as a result of lower oil and natural gas
prices. The average prices received for production of oil decreased 37% from
$17.73 per Bbl for the three months of 1997 to $11.26 per Bbl for the period in
1998. Natural gas prices decreased 19% from an average of $2.17 per Mcf for the
three months of 1997 to $1.76 per Mcf for the period in 1998. Oil sales volumes
were 36% less in 1998 compared to 1997 due primarily to management's decision to
curtail production of certain wells due to the low prices.
Operations for third parties produced well servicing revenues of $180,000
less expenses of $170,900 in 1998 compared to revenues of $46,800 less expenses
of $41,600 for the period in 1997.
Revenues from operating overhead and other income increased from $40,000 in
1997 to $53,600 in 1998, due to the operation of additional oil properties which
were acquired during the year.
Costs and Expenses
Lease operating expenses increased slightly from $425,100 in 1997 to
$437,000 in 1998, due to the acquisition of additional properties during the
year.
Interest expense for the second quarter of 1998 compared to 1997 increased
from $250,100 to $390,600 due to borrowing costs related to the acquisition of
additional oil properties and other debt incurred during the year to finance the
operations and development of the Company's properties.
9
<PAGE>
Six-Month Period Ended June 30, 1998 compared to Six Month Period Ended
June 30, 1997.
Revenues
Oil and gas sales for the period decreased from $2,210,600 in 1997 to
$1,153,100 in 1998, primarily as a result of lower oil and natural gas oil
prices. The average prices received for production of oil decreased 36% from
$19.21 per Bbl for the first six months of 1997 to $12.19 per Bbl for the period
in 1998 and for the production of natural gas decreased 15% from $2.39 per Mcf
for the first six months of 1997 to $2.02 per Mcf for the period in 1998. Oil
sales volumes were 26% less in 1998 compared to 1997 due primarily to
management's decision to curtail production of certain wells due to the low
prices.
Operations for third parties produced well servicing revenues of $307,500
less expenses of $288,800 for the period in 1998 compared to $119,800 less
expenses of $86,200 for the period in 1997. The profit margin decrease was due
to increased labor costs and operating expenses.
Revenues from operating overhead and other income decreased from $117,100
for the period in 1997 to $88,600 for the period in 1998, however the revenues
in 1997 included a $37,500 gain on the sale of a lease and no such gains were
recorded for 1998.
Costs and Expenses
Lease operating expenses increased from $822,200 in 1997 to $903,300 in
1998, due to the acquisition of additional properties and expenses associated
with regulatory compliance.
Interest expense increased from $483,100 for the period in 1997 to $702,100
for the period in 1998 due to borrowing costs related to the acquisition of
additional properties and other debt incurred during the year to finance the
operations and development of the Company's properties.
Financial Condition and Capital Resources
During the fourth quarter of 1996, the Company acquired and assumed
operations for additional oil properties in West Texas for a purchase price of
$10,654,000. In connection with these acquisitions, the Company issued senior
debt due October and December, 1999 in the original principal amount of
$7,400,000. On March 20, 1998, the Company obtained a loan from a banking
institution for $10,237,000, which included $7,432,000 for refinancing the
properties and $2,805,000 for payment toward the acquisition of certain other
oil properties with a purchase price of $2,976,000. The Company had also entered
into a purchase and sale agreement for the purchase of additional oil properties
in the same area (subject to various conditions such as title curative matters
and production quotas). Management subsequently determined that it would not be
prudent to purchase the latter properties due to title curative problems and
production levels which did not support the purchase price.
On November 18, 1997, the Company completed a private placement of $500,000
of debentures (the "Debentures"). The Debentures bear interest at a rate of 12%
payable quarterly and are collateralized by certain assets of the Company.
Effective June 30, 1998, the holders of the Debentures have the option for one
year to convert all or a part of the outstanding principal and any accrued and
unpaid interest to GulfWest Common Stock at a strike price of $1.30 per share.
At June 30, 1998, $50,000 of the Debentures had been converted to Common Stock.
10
<PAGE>
On December 15, 1997, the Company obtained a loan from Mr. J. Virgil
Waggoner, a director of the Company, in the amount of $1,000,000 to drill
seventeen developmental wells in the Vaughn Field, as part of its expanded
waterflood operations in that field. On June 29, 1998, Mr. Waggoner converted
the outstanding principal amount of the note and unpaid interest to 643,329
shares of the Company's Common Stock at a price of $1.625 per share, as part of
the Company's private placement discussed below.
On January 7, 1997, the Company established a $2,000,000 revolving
line-of-credit with Southwest Bank of Texas, with part of the proceeds to be
used for payment of short-term notes incurred for acquisitions made during the
fourth quarter of 1996. The revolving line-of-credit was subsequently increased
to $3,000,000 with the additional funds to be used for acquisitions, further
enhancements of the Company's West Texas properties and working capital. The
line-of-credit is guaranteed by Mr. J. Virgil Waggoner, a director of the
Company. The line-of-credit has a maturity date of April 10, 2000.
On March 3, 1998, the Company established a $500,000
revolving-line-of-credit with Compass Bank of Dallas, with the proceeds to be
used for equipment purchases and working capital for its subsidiary, VanCo Well
Service, Inc. ("VanCo"). The line-of-credit is guaranteed by Mr. J. Virgil
Waggoner, a director, and Mr. Marshall A. Smith, III, president of the Company.
At a special meeting of the shareholders of the Company on March 24, 1998,
the shareholders approved the offering, sale and issuance of shares of the
Company's Common Stock through a private placement whereby gross proceeds of at
least $500,000 and up to $5.5 million would be raised. At June 30, 1998, the
Company had received $190,000 in cash proceeds and $1,490,741 through the
conversion of debt to equity as a result of the sale and issuance of 1,034,296
shares of Common Stock at $1.625 per share.
Management has identified seven (7) wells on its Madisonville properties
which can be re-entered by using the horizontal drilling technique which,
according to independent engineering reports, has increased the Company's Proved
Reserves by an additional 400,000 barrels of oil equivalent (BOE). The Company
intends to commence this horizontal drilling program in September, 1998, using
part of the proceeds from a loan obtained from Mr. Waggoner on July 8, 1998.
Management's acquisition strategy is for the Company to be an aggressive
consolidator of small, under-capitalized operators with undeveloped properties
and a purchaser of oil and gas properties that may be non-core to larger
independent and major oil and gas companies. Management intends to continue to
seek additional sources of capital which will enable the Company to carry out
this strategy while continuing to develop the oil and gas properties it
currently owns.
Although management believes the above business strategy will ultimately
provide the Company with the means to become profitable, there can be no
assurance that the necessary funds will be available or that the strategy can be
effectively accomplished. Continued unfavorable oil and/or gas prices and the
inability of the Company to raise the capital necessary for its acquisition and
development programs could have a severe impact on the Company.
Management intends to continue to raise capital through equity offerings
which will allow the Company to remain in compliance with Nasdaq listing
requirements.
11
<PAGE>
PART II. OTHER INFORMATION
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K.
(a) Exhibits -
Number Description
X2.1 Restructuring Agreement Regarding Madisonville Prospect, dated April
18, 1995.
X2.2 Unanimous Consent to First Amendment to Regulations of S.G.C.
Transmission, L.L.C., dated July 17, 1995.
X2.3 Security Agreement RE: Subsequently Acquired Interests, dated July 17,
1995.
&2.4 Purchase and Sale Agreement, with amendments, between Pharaoh Oil and
Gas, Inc, as Seller, and WestCo Producing Company, as Purchaser, dated
June 12, 1996.
&2.5 Addendum of Purchase and Sale Agreement by and between Gary O. Bolen,
Individually and d/b/a Badger Oil Company, Pharaoh Oil and Gas, Inc.,
and GulfWest Texas Company.
&2.6 Assignment of Purchase and Sale Agreement by and between Gary O.
Bolen, Individually and d/b/a Badger Oil Company, Pharaoh Oil and Gas,
Inc., GulfWest Texas Company and WestCo Producing Company.
&2.7 Assignment and Bill of Sale by and between Gary O. Bolen, Individually
and d/b/a Badger Oil Company and Pharaoh Oil and Gas, Inc. as Assignor
and GulfWest Texas Company as Assignee.
@2.8 Purchase and Sale Agreement between Pharaoh Oil and Gas, Inc., Taylor
Link Operating Co. and Gary O. Bolen, Individually and d/b/a Badger
Oil Company (collectively, "Pharaoh"), as Seller, and WestCo Producing
Company, as Purchaser, dated November 6, 1996.
@2.9 Addendum of Purchase and Sale Agreement between Pharaoh and WestCo
Producing Company, dated December 5, 1996.
@.10Assignment of Purchase and Sale Agreement by and between Pharaoh,
GulfWest Permian Company and WestCo Producing Company, dated December
5, 1996.
12
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@2.11Form of Assignment and Bill of Sale by and between Pharaoh as
Assignor and GulfWest Permian Company as Assignee.
*3.1 Articles of Incorporation of the Registrant and Amendments thereto.
*3.2 Bylaws of the Registrant.
&3.3 Statement of Resolution Establishing and Designating the Company's
Class AA Preferred Stock, filed with the Secretary of State of Texas
as an amendment to the Company's Articles of Incorporation on
September 23, 1996.
&3.4 Statement of Resolution Establishing and Designating the Company's
Class AAA Preferred Stock, filed with the Secretary of State of Texas
as an amendment to the Company's Articles of Incorporation on
September 23, 1996.
^4.1 Form of Note Purchase and Sale Agreement for the Company's 1995
Series A 9.5% Subordinated Notes, undated.
^4.2 Subscription and Registration Rights Agreement for the Purchase of
Preferred Stock Between the Company and Eco2, Inc. dated March 13,
1996.
&4.3 Term note in the amount of $1,500,000.00 payable to the order of
Pharaoh Oil and Gas, Inc. and to be executed by GulfWest Texas
Company.
@4.4 Term note in the amount of $5,900,000.00 payable to the order of
Pharaoh Oil and Gas, Inc. and executed by GulfWest Permian Company,
dated December 5, 1996.
@4.5 Term note in the amount of $1,604,000.00 payable to the order of
Pharaoh Oil and Gas, Inc. and executed by GulfWest Permian Company,
dated December 5, 1996.
+10.2GulfWest Oil Company 1994 Stock Option Plan, approved by the Board of
Directors on February 11, 1994.
+10.3Form of Nonqualified Stock Option Agreement, dated February 11, 1994
between the Company and certain officers, directors and advisors of
the Company.
#10.4Letter Agreement between the Company and Madisonville Project,
Limited, dated December 28, 1993 and amendment dated March 28, 1994.
#10.5Investment Letter Subscription Agreement of the Madisonville Project,
Limited, executed by the Company on July 31, 1994.
13
<PAGE>
#10.6The Madisonville Project, Limited Agreement of Limited Partnership,
dated July 31, 1994.
+10.7Warrant Agreement between the Company and Jackson & Walker, L.L.P.,
dated December 21, 1994.
^10.8Stock Option Agreement between the Company and John E. Loehr, dated
May 11, 1995.
^10.9Stock Option Agreement between the Company and Marshall A. Smith III,
dated May 11, 1995.
^10.10 Employment Agreement between the Company and Marshall A Smith III,
dated July 1, 1995.
^10.11 Employment Agreement between the Company and Jim C. Bigham, dated
July 1, 1995.
~16 Letter from Arthur Andersen, L.L.P., dated December 28, 1995 agreeing
with the statements contained in Item 4 of the Form 8-KA report.
?20.1 Letter to Shareholders dated August 12, 1996.
25 Power of Attorney (included on signature page of this Annual Report).
%27.1 Financial Data Schedule.
_______________
@ Previously filed with the Company's Form 8-K, Current Report dated December
5, 1996, filed with the Commission on December 17, 1996.
& Previously filed with the Company's Form 8-K, Current Report dated October
10, 1996, filed with the Commission on October 25, 1996.
? Previously filed with the Company's Quarterly Report on Form 10-Q for the
period ended June 30, 1996, filed with the Commission on August 14, 1996.
^ Previously filed with the Company's Annual Report on Form 10-K for the year
ended December 31, 1995, filed with the Commission on April 12, 1996.
~ Previously filed with the Company's Form 8-K/A, Current Report dated
December 12, 1995, filed with the Commission on December 29, 1995.
X Previously filed with the Company's Form 8-K, Current Report dated July 17,
1995, filed with the Commission on July 31, 1995.
+ Previously filed with the Company's Annual Report on Form 10-K for the year
ended December 31, 1994, filed with the Commission on April 14, 1995.
Z Previously filed with the Company's Quarterly Report on Form 10-Q for the
period ended June 30, 1994, filed with the Commission on August 14, 1994.
* Previously filed with the Company's Registration Statement (on Form S-1,
Reg. No. 33-53526), filed with the Commission on October 21, 1992.
% Filed herewith.
14
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(b) Form 8-K -
None
15
<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: August 14, 1998 By: /s/ Jim C. Bigham
Jim C. Bigham
Executive Vice President
and Secretary
Date: August 14, 1998 By: /s/ Richard L. Creel
Richard L. Creel
Vice President of Finance
16
<PAGE>
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE GULFWEST
OIL COMPANY'S QUARTERLY REPORT FILED ON FORM 10-Q FOR THE QUARTER ENDED JUNE 30,
1998 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> 6-MOS
<FISCAL-YEAR-END> DEC-31-1997
<PERIOD-START> APR-1-1998
<PERIOD-END> JUN-30-1998
<EXCHANGE-RATE> 1
<CASH> 0
<SECURITIES> 0
<RECEIVABLES> 588,290
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 725,482
<PP&E> 22,598,245
<DEPRECIATION> 3,435,655
<TOTAL-ASSETS> 19,906,816
<CURRENT-LIABILITIES> 12,504,899
<BONDS> 0
0
52
<COMMON> 2,958
<OTHER-SE> 2,017,243
<TOTAL-LIABILITY-AND-EQUITY> 19,906,816
<SALES> 474874
<TOTAL-REVENUES> 708,504
<CGS> 0
<TOTAL-COSTS> 1,311,964
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> (389,464)
<INCOME-PRETAX> (992,924)
<INCOME-TAX> 0
<INCOME-CONTINUING> (992,924)
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (992,924)
<EPS-PRIMARY> (.58)
<EPS-DILUTED> (.58)
</TABLE>
