SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-QSB
[X] QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended: December 31, 1997
OR
[ ] TRANSITION REPORT UNDER SECTION 13 OR 15(d)
OF THE EXCHANGE ACT
For the transition period from __________ to __________
Commission File No. 33-32685
LEXICO ENERGY EXPLORATION, INC.
___________________________________________________________
(Exact name of small business issuer as specified in its
charter)
Delaware 84-1080261
________ ____________
(State or other jurisdiction of (I.R.S. Employer
Incorporation or organization) Identification No.)
12835 E. Arapahoe Rd, Tower 1, Ste 210
Englewood, Colorado 80112
_____________________________________________________________
(Address of principal executive offices, including zip code)
Issuer's Telephone Number: (303) 792-0416
______________________________________________________
(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 X No
____ ____
As of December 31, 1997, 11,277,000 shares of common stock
were outstanding.
Transitional Small Business Disclosure Format:
Yes X No
____ ____
<PAGE>
TABLE OF CONTENTS
Form 10-QSB
1st Quarter Ended December 31, 1997
Lexico Energy Exploration, Inc.
Page
PART I: FINANCIAL INFORMATION
Item 1.
Balance Sheet 2
Statement Of Operations 3
Statement Of Cash Flows 4
Notes To Financial Statements 5
Item 2.
Management's Discussion And
Analysis Or Plan Of Operation 6
PART II: OTHER INFORMATION 8
SIGNATURES 9
<PAGE>
PART I. FINANCIAL INFORMATION
<PAGE> 1
ITEM 1. LEXICO ENERGY EXPLORATION, INC.
(A Development Stage Company)
BALANCE SHEET
December 31, 1997
(UNAUDITED)
ASSETS
Cash $ 30
_____________
Total current assets 30
Office equipment (net) 983
Oil and gas properties $ 320,000
_____________
Total Assets $ 321,013
=============
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities
Accounts payable $ 68,031
Interest payable 38,084
Related party notes payable 40,000
____________
Total current liabilities 146,115
____________
Total Liabilities 146,115
____________
Stockholders' equity
Common stock: $.001 par
value, 50,000,000 shares
authorized, 11,277,000
shares issued
& outstanding 11,277
Preferred stock: $.01 par
value, 5,000,000 shares
authorized, 0 shares
issued & outstanding -
Additional paid in capital 494,788
Deficit accumulated during
the development stage ( 331,167)
____________
Stockholders' Equity 174,898
____________
Total Liabilities And
Stockholders' Equity $ 321,013
============
The accompanying notes are an integral part of the financial statements.
<PAGE> 2
LEXICO ENERGY EXPLORATION, INC.
(A Development Stage Company)
STATEMENT OF OPERATIONS
(UNAUDITED)
Dec. 31, 1987
Three Months Ended (inception)
December 31 to Dec. 31,
1997 1996 1997
____ ____ _____________
Sales $ - $ - $ -
Operating expenses 39,737 200 304,070
________ ________ _________
Income (loss) from
operations (39,737) ( 200) (304,070)
Other income (expense)
Interest income - - 10,987
Interest expense ( 1,676) ( 1,676) ( 38,084)
_________ ________ _________
Total other income ( 1,676) ( 1,676) ( 27,097)
_________ ________ _________
Income (loss) before
provision for income taxes
and extraordinary ( 41,413) ( 1,876) (331,167)
_________ ________ _________
Provision for income tax - - -
_________ ________ _________
Net income (loss) $( 41,413) $( 1,876) $(331,167)
========= ======== =========
Net income (loss) per share $( * ) $( * ) $( .033 )
======== ======== =========
Weighted average number of
common shares outstanding 11,277,000 11,277,000 10,059,967
========== ========== ==========
*Less than $.01 per share
The accompanying notes are an integral part of the financial statements.
<PAGE> 3
LEXICO ENERGY EXPLORATION, INC.
(A Development Stage Company)
STATEMENT OF CASH FLOWS
(UNAUDITED)
Dec.31,1987
Three Months Ended (inception)
December 31 to Dec. 31,
1997 1996 1997
____ ____ ___________
Cash Flows From Operating Activities:
Net income (loss) $(41,413) $( 1,876) $(331,167)
Adjustments to reconcile net
income (loss) to net cash
provided by (used for)
operating activities:
Depreciation 17 - 17
Increase in accounts payable - 200 68,031
Increase in interest payable 1,676 1,676 38,084
-------- -------- ---------
Net cash provided
by (used for)
operating activities (39,720) - (225,035)
-------- -------- ---------
Cash Flows From Investing Activities:
(Purchase) of equipment ( 1,000) - ( 1,000)
(Purchase) of oil and gas interests - - (220,000)
-------- -------- ---------
Net cash provided
by (used for)
investing activities ( 1,000) - (221,000)
-------- -------- ---------
Cash Flows From Financing Activities:
Sale of common stock - - 11,277
Increase in rel. party notes payable 40,000 - 40,000
Increase in paid in capital 750 - 394,788
-------- -------- ---------
Net cash provided
by (used for)
financing activities 40,750 - 446,065
________ ________ _________
Net Increase (Decrease) In Cash 30 - 30
Cash At The Beginning Of The Period - - -
________ ________ _________
Cash At The End Of The Period $ 30 $ - $ 30
======== ======== =========
The accompanying notes are an integral part of the financial statements.
<PAGE> 4
LEXICO ENERGY EXPLORATION, INC.
(A Development Stage Company)
Notes to Financial Statements
(Unaudited)
Note 1. Basis of Presentation
The accompanying unaudited financial statements have been
prepared in accordance with the instructions to
Form 10-QSB and do not include all of the information and
disclosures required by generally accepted accounting
principles for complete financial statements. All
adjustments which are, in the opinion of management,
necessary for a fair presentation of the results of
operations for the interim periods have been made and are
of a recurring nature unless otherwise disclosed herein.
The results of operations for such interim periods are not
necessarily indicative of operations for a full year.
<PAGE> 5
LEXICO ENERGY EXPLORATION, INC.
ITEM 2. Management's Discussion and Analysis or Plan of
Operation
The Company effected the acquisition of 50% of United Stratum
AUS PTY Ltd ("USAPL") on December 18, 1997 through a common stock
trade of 1 million shares of Lexico Energy Exploration, Inc. common
shares for 50% of USAPL stock. USAPL holds a 3/8 interest in VAP1
Petroleum Prospecting License, a Vanuatu 3,728,000 acre oil and gas
concession. The concession includes almost all of Malakula Island
and Espiritu Santo Island, Republic of Vanuatu, S.W. Pacific, as
well as offshore areas.
Formal commitments are in process from Coastal and/or its subsidiary
to buy all the oil and gas in the Uintah Basin from Lexico's wells.
Drilling bids have been solicited from several drilling companies
to complete and bring on-line Conoco Well 13-1, in Uintah County,
Utah.
Mr. Edison F. Baldwin was added to the Board of Directors on
October 24, 1997. Mr. Baldwin holds a B.S. in Construction Management
from Colorado State University, and a Masters of Business Administration
from the University of Colorado. He has extensive experience in
construction estimating, cost control, scheduling owner-architect-
contractor liason, labor relations, construction management, and
overall company management on individual projects of $75 million
and an aggregate of $200 million. Mr. Baldwin has a diverse affiliation
with business and professional organizations including development
authorities, executive committees, and serving as a Director for
Norwest Bank of Fort Collins.
Mr. John P. Gold serves as the Company's Chief Consultant. Mr. Gold
has very extensive qualifications and experience in the oil and gas
industry. He holds a M.A. in Geology from Cambridge University
and a D.I.C. in Petroleum Geology from Royal School of Mines,
Imperial College, London. He has more than 30 years experience in oil
and gas exploration, development and production.
Mr. Gold has provided technical work and/or decision making that
resulted in employers' participation in the discovery of 27 oil and
gas fields in five countries with reserves exceeding 500 million
barrels of oil and 10 trillion cubic feet of gas, worth over
$30 billion at current prices.
Mr. Gold has also managed exploration programs for independent,
public exploration and production companies in Indonesia, Australia,
Canada and the Rocky Mountain region of the U.S.A.
<PAGE> 6
LEXICO ENERGY EXPLORATION, INC.
Security Ownership of Certain Beneficial Owners and Management
The following table sets forth, as of the date of this Report,
the stock ownership of each person known by the Registrant to be the
beneficial owner of five percent or more of the Registrant's
common stock, each Officer and Director individually and all Directors
and Officers of the Registrant as a group:
Number of Percentage of
Name and Address Common shares Total outstanding
L. Lex Dolton 7,020,000 62.25%
6614 N. Pinewood Dr.
Parker, CO 80134
Vanco Investments 930,000 8.25%
6535 S. Dayton
Englewood, CO 80111
Edison Baldwin 750,000 6.65%
4255 Woody Creek Lane
Ft. Collins, CO 80524
Clarey D. Zingler 169,000 1.50%
7193 Christopher Ct.
Niwot, CO 80503
All Officers and Directors
as a Group (three persons) 7,939,000 70.40%
<PAGE> 7
PART II. OTHER INFORMATION
Item 1. Legal Proceedings - None
Item 2. Changes in Securities - None
Item 3. Defaults Upon Senior Securities - None
Item 4. Submission of Matters To A Vote of Securities Holders - None
Item 5. Other Information - None
Item 6. Exhibits and Reports on Form 8-K - None
<PAGE> 8
SIGNATURES
In accordance with the requirements of the Exchange
Act, the Registrant has duly caused this Report to be
signed on its behalf by the undersigned, thereunto duly
authorized.
LEXICO ENERGY EXPLORATION, INC.
By: /s/Lex Dolton
Lex Dolton, President
and Director
Date: February 19, 1998
<PAGE>
WARNING: THE EDGAR SYSTEM ENCOUNTERED ERROR(S) WHILE PROCESSING THIS SCHEDULE.
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION
EXTRACTED FROM THE BALANCE SHEET AT 12/31/97 (UNAUDITED)
AND STATEMENT OF OPERATIONS FOR THE QUARTER ENDED 12/31/97
(UNAUDITED). IT IS QUALIFIED IN ITS ENTIRETY BY REFERENCE
TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> 09/30/98
<PERIOD-END> 12/31/97
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<CURRENT-LIABILITIES> 146115
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0
0
<COMMON> 11277
<OTHER-SE> 163621
<TOTAL-LIABILITY-AND-EQUITY> 321013
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<INCOME-PRETAX> (41413)
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