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SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
FORM 11-K
ANNUAL REPORT
PURSUANT TO SECTION 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
(Mark One)
[X] ANNUAL REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES EXCHANGE
ACT OF 1934 (NO FEE REQUIRED EFFECTIVE OCTOBER 7, 1996)
For the fiscal year ended: December 31, 1999
Or
[ ] TRANSITION REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934 (NO FEE REQUIRED)
For the transition period from ________________ to ________________
Commission file number 333-49192
A. Full title of the plan and the address of the plan, if different from that of
the issuer named below:
Esenjay Employee Savings Plan
B. Name of issuer of the securities held pursuant to the plan and the address of
its principal executive office:
Esenjay Exploration, Inc.
500 North Water Street
Suite 1100 S.
Corpus Christi, Texas 78471
REQUIRED INFORMATION
The Esenjay Employee Savings Plan (the "Plan") is subject to the Employee
Retirement Income Security Act of 1974, as amended ("ERISA"). Therefore, in lieu
of the requirements of Items 1-3 of Form 11-K, the financial statements and
schedules prepared in accordance with financial reporting requirements of ERISA
are filed herewith.
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ESENJAY EMPLOYEE SAVINGS PLAN
AUDIT REPORT
December 31, 1999
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TYSON HOPKINS P.O. BOX 12127
CERTIFIED PUBLIC ACCOUNTANT OKLAHOMA CITY, OKLAHOMA 73157
405-789-3617
INDEPENDENT AUDITOR'S REPORT
To: Esenjay Employee Savings Plan
I have audited the accompanying statement of net assets available for benefits
of Esenjay Employee Savings Plan as of December 31, 1999 and the related
statement of changes in net assets available for benefits for the year then
ended. These financial statements are the responsibility of the Plan's
management. My responsibility is to express an opinion of these financial
statements based on my audit.
I conducted my audit in accordance with generally accepted auditing standards.
These standards require that I plan and perform the audit to obtain reasonable
assurance about whether the financial statements are free of material
misstatement. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement presentation.
I believe that my audit provides a reasonable basis for my opinion.
In my opinion, the financial statements referred to above present fairly, in all
material respects, the net asset available for benefits of Esenjay Employee
Savings Plan as of December 31, 1999, and the changes in its net assets
available for benefits for the year than ended in conformity with generally
accepted accounting principles.
/s/ TYSON HOPKINS
Oklahoma City, Oklahoma
October 23, 2000
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ESENJAY EMPLOYEE SAVINGS PLAN
Statement of Net Assets Available for Benefits
December 31, 1999
<TABLE>
<S> <C>
ASSETS
Investments $383,369
Receivables:
Employer's contribution 4,859
Participants contribution 9,750
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14,609
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TOTAL ASSETS 397,978
LIABILITIES
Accounts payable -0-
Accrued expenses -0-
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TOTAL LIABILITIES -0-
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NET ASSETS AVAILABLE FOR BENEFITS $397,978
========
</TABLE>
See accompanying notes to financial statements
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ESENJAY EMPLOYEE SAVINGS PLAN
Statement of changes in Net Assets Available for Benefits
Year Ended December 31, 1999
<TABLE>
<S> <C>
ADDITIONS
Addition (Deductions) to net assets:
Investment income:
Dividends and interest $ 8,207
Net (Decline) in fair market value (11,810)
---------
(3,603)
Contributions by participants and employer 283,264
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TOTAL ADDITIONS 279,661
DEDUCTIONS
Deductions from net assets:
Trustee fees 834
---------
NET INCREASE 278,827
NET ASSETS AVAILABLE FOR BENEFITS
Beginning of year 119,151
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END OF YEAR $ 397,978
=========
</TABLE>
See accompanying notes to financial statements
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ESENJAY EMPLOYEE SAVINGS PLAN
Notes to Financial Statements
NOTE 1 - DESCRIPTION OF PLAN
The following description of the Esenjay Petroleum, Inc. ("Company") 401(K)
Employee Savings Plan ("Plan") provides only general information. Participants
should refer to the Plan Agreement for a more complete description of the Plan's
provisions.
GENERAL - The plan is a defined contribution plan covering all employees who
have completed at least six months of service and are age twenty-one or older.
It is subject to the provisions of the Employee Retirement Income Security Act
(ERISA).
CONTRIBUTIONS - Participants are permitted to make elective contributions in any
amount from 1% up to 10% of their compensation. Participants have the option to
direct the investment of their personal contributions and their share of the
company's contribution among alternate investment options offered by the plan.
The company contributes and allocates to each participant's account an amount
equal to the amount withheld from their compensation pursuant to their savings
agreement. The company's matching contribution is invested directly in it's
common stock.
PARTICIPANT ACCOUNTS - Each participant has a separate account. The account is
credited with their contributions and allocation of (a) the company's
contribution (b) investment earnings and (c) increases in fair market value of
the fund since the last valuation date. It is charged with its allocated share
or administrative expenses and decreases in fair market value. The benefit to
which a participant is entitled is the benefit that can be provided from the
participants vested account.
VESTING - Participants are immediately vested in their contributions plus actual
earnings thereon. Vesting in the company's contribution portion of their
accounts plus earnings theron is based on years of service. A participant is
100% vested after five years of credited service.
PAYMENT OF BENEFITS - A participant may elect to receive either lump sum or
installment payments, as soon as administratively feasible, following the date
of which a distribution is requested or otherwise payable.
FORFEITURES - These accounts are applied to offset administrative expenses of
the plan.
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ESENJAY EMPLOYEE SAVINGS PLAN
Notes to Financial Statements
NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
ESTIMATES - The preparation of financial statements in conformity with generally
accepted accounting principles require the plan administrator to make estimates
and assumptions that may affect certain reported amounts and disclosures.
Accordingly, actual results may differ from those estimates.
INVESTMENT VALUATION AND INCOME RECOGNITION - the plan's investments are stated
at fair value. Quoted market prices are used to value its investments.
Purchases and sales of securities are recorded on a trade-date basis. Dividends
are recorded on the ex-dividend date.
NOTE 3 - INVESTMENTS
The following presents investments at December 31, 1999 that represents 5% or
more of the plan's net assets.
<TABLE>
<S> <C>
Fidelity Money Market Fund,
44,795 units $44,795
Esenjay Common Stock
135,478 shares 254,021
</TABLE>
NOTE 4 - TAX STATUS
The Internal Revenue Service has determined and informed the Company by a letter
dated June 16, 1995 that the Plan and related trust are designed in accordance
with the Internal Revenue Code. Although the Plan was amended on October 1,
1998, the Company believes that the Plan is in compliance with the determination
letter and with all applicable requirements of the Internal Revenue Code.
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CONSENT OF INDEPENDENT AUDITOR
I consent to the incorporation by reference in the Registration
Statement on Form S-8 of Esenjay Exploration, Inc. (filed under Securities
Exchange Commission File No. 333-49192) of my report dated October 23, 2000,
relating to statements of net assets available for plan benefits of the Esenjay
Employee Savings Plan at December 31, 1999 and the related statement of changes
in net assets available for plan benefits for the year ended December 31, 1999,
which report appears in the December 31, 1999 annual report for Form 11-K of the
Esenjay Employee Savings Plan.
/s/ TYSON HOPKINS
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Tyson Hopkins
Certified Public Accountant
Oklahoma City, Oklahoma
November 1, 2000
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SIGNATURES
THE PLAN: Pursuant to the requirements of the Securities Exchange Act of 1934,
the trustees (or other persons who administer the employee benefit plan) have
duly caused this annual report to be signed on its behalf by the undersigned
hereunto duly authorized.
Esenjay Employee Savings Plan
Date: NOVEMBER 2, 2000 /s/ DAVID B. CHRISTOFFERSON
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David B. Christofferson
Senior Vice President, General Counsel,
Chief Financial Officer and Esenjay
Employee Savings Plan Administrative
Committee Member
