<PAGE> 1
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
------------------------
FORM 11-K
/X/ ANNUAL REPORT PURSUANT TO SECTION 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
or
/ / TRANSITION REPORT PURSUANT TO SECTION 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
For the fiscal year ended December 31, 1996
Commission File No: 0-25058
A. Full title of the plan and the address of the plan, if different from that
of the issuer named below:
FLORES & RUCKS, INC. 401(K) SAVINGS PLAN
B. Name of issuer of the securities held pursuant to the plan and the address
of its principal executive office:
Flores & Rucks, Inc.
8440 Jefferson Highway, Suite 420
Baton Rouge, Louisiana 70809
(504) 927-1450
<PAGE> 2
[PROVOST SALTER HARPER & ALFORD LLC LETTERHEAD]
FLORES & RUCKS, INC.
401(k) SAVINGS PLAN
FINANCIAL REPORT
DECEMBER 31, 1996
<PAGE> 3
===============================================================================
FLORES & RUCKS, INC. 401(k) SAVINGS PLAN
- -------------------------------------------------------------------------------
TABLE OF CONTENTS DECEMBER 31, 1996
<TABLE>
<S> <C>
INDEPENDENT AUDITOR'S REPORT ON THE FINANCIAL STATEMENTS 1
FINANCIAL STATEMENTS
Statement of Net Assets Available for Benefits - December 31, 1996 2
Statement of Net Assets Available for Benefits - December 31, 1995 5
Statement of Changes in Net Assets Available for Benefits - December 31, 1996 8
Statement of Changes in Net Assets Available for Benefits - December 31, 1995 11
Notes to Financial Statements 15
INDEPENDENT AUDITOR'S REPORT ON THE SUPPLEMENTARY INFORMATION 21
SUPPLEMENTARY INFORMATION
Assets Held for Investment Purposes Schedule 1 22
Reportable Transactions Schedule 2 24
</TABLE>
Note: There were no prohibited party-in-interest transactions, no leases,
and no loans or fixed income obligations in default or classified as
uncollectible during the year ended December 31, 1996. A schedule of
investment assets which were both acquired and disposed of within the
Plan year is not necessary since all such transactions involve either
common investment funds or instruments for short term money management
(such as interests in mutual funds and short term commercial paper
ranked in the highest rating category).
<PAGE> 4
[PROVOST SALTER HARPER & ALFORD LLC LETTERHEAD]
INDEPENDENT AUDITOR'S REPORT
To the Trustees
Flores & Rucks, Inc. 401(k) Savings Plan
Baton Rouge, Louisiana
We have audited the accompanying statements of net assets available for
benefits with fund information of the Flores & Rucks, Inc. 401(k) Savings Plan
as of December 31, 1996 and 1995, and the related statements of changes in net
assets available for benefits with fund information for the years ended
December 31, 1996 and 1995. These financial statements are the representation
of the Plan's management. Our responsibility is to express an opinion on these
financial statements based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we 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. We believe that our audits provide a reasonable basis
for our opinion.
In our opinion, the financial statements referred to above present fairly, in
all material respects, the net assets available for benefits of the Flores &
Rucks, Inc. 401(k) Savings Plan as of December 31, 1996 and 1995, and the
changes in its net assets available for benefits for the years ended December
31, 1996 and 1995, in conformity with generally accepted accounting principles.
PROVOST, SALTER, HARPER & ALFORD, L.L.C.
/s/ PROVOST, SALTER, HARPER & ALFORD, L.L.C.
May 2, 1997
<PAGE> 5
===============================================================================
FLORES & RUCKS, INC. 401(k) SAVINGS PLAN
- -------------------------------------------------------------------------------
STATEMENT OF NET ASSETS AVAILABLE FOR BENEFITS DECEMBER 31, 1996
<TABLE>
<CAPTION>
PARTICIPANT DIRECTED
-----------------------------------------------------------------------
GUARANTEED MONEY GOVERNMENT BOND AND BOND STOCK
INTEREST MARKET SECURITIES MORTGAGE EMPHASIS EMPHASIS
ASSETS ACCOUNT ACCOUNT ACCOUNT ACCOUNT ACCOUNT ACCOUNT
- ------ --------- --------- --------- --------- --------- ---------
<S> <C> <C> <C> <C> <C> <C>
INVESTMENTS
At fair value
Shares of registered investment companies $ -- $ -- $ -- $ -- $ -- $ --
Shares of pooled separate accounts -- 134,983 1,103 21,956 83,108 148,954
Insurance company unallocated contracts 132,606 -- -- -- -- --
Participant loans -- -- -- -- -- --
Common stock -- -- -- -- -- --
--------- --------- --------- --------- --------- ---------
Total investments at fair value 132,606 134,983 1,103 21,956 83,108 148,954
--------- --------- --------- --------- --------- ---------
RECEIVABLES
Contributions - employer 2,373 2,417 229 1,303 2,493 2,913
Contributions - employee 2,873 3,010 230 3,191 2,293 3,640
--------- --------- --------- --------- --------- ---------
Total receivables 5,246 5,427 459 4,494 4,786 6,553
--------- --------- --------- --------- --------- ---------
BENEFITS PAYABLE (10,078) -- -- -- -- --
--------- --------- --------- --------- --------- ---------
NET ASSETS AVAILABLE FOR BENEFITS $ 127,774 $ 140,410 $ 1,562 $ 26,450 $ 87,894 $ 155,507
========= ========= ========= ========= ========= =========
</TABLE>
Continued on next page.
See Notes to Financial Statements.
2
<PAGE> 6
===============================================================================
FLORES & RUCKS, INC. 401(k) SAVINGS PLAN
- -------------------------------------------------------------------------------
STATEMENT OF NET ASSETS AVAILABLE FOR BENEFITS, CONTINUED DECEMBER 31, 1996
<TABLE>
<CAPTION>
PARTICIPANT DIRECTED
-------------------------------------------------------------------------
STOCK U. S. MEDIUM MEDIUM SMALL
INDEX STOCK COMPANY COMPANY COMPANY INTERNATIONAL
ASSETS ACCOUNT ACCOUNT VALUE BLEND BLEND STOCK
- ------ --------- --------- --------- --------- --------- -------------
<S> <C> <C> <C> <C> <C> <C>
INVESTMENTS
At fair value
Shares of registered investment companies $ -- $ -- $ -- $ -- $ -- $ --
Shares of pooled separate accounts 87,845 50,155 62,309 268,051 266,466 128,582
Insurance company unallocated contracts -- -- -- -- -- --
Participant loans -- -- -- -- -- --
Common stock -- -- -- -- -- --
--------- --------- --------- --------- --------- ---------
Total investments at fair value 87,845 50,155 62,309 268,051 266,466 128,582
--------- --------- --------- --------- --------- ---------
RECEIVABLES
Contributions - employer 2,918 2,577 6,562 6,115 8,532 3,302
Contributions - employee 3,397 3,322 3,792 7,738 11,763 4,624
--------- --------- --------- --------- --------- ---------
Total receivables 6,315 5,899 10,354 13,853 20,295 7,926
--------- --------- --------- --------- --------- ---------
BENEFITS PAYABLE (5,795) -- -- -- (13,476) (2,847)
--------- --------- --------- --------- --------- ---------
NET ASSETS AVAILABLE FOR BENEFITS $ 88,365 $ 56,054 $ 72,663 $ 281,904 $ 273,285 $ 133,661
========= ========= ========= ========= ========= =========
</TABLE>
Continued on next page.
See Notes to Financial Statements.
3
<PAGE> 7
===============================================================================
FLORES & RUCKS, INC. 401(k) SAVINGS PLAN
- -------------------------------------------------------------------------------
STATEMENT OF NET ASSETS AVAILABLE FOR BENEFITS, CONTINUED DECEMBER 31, 1996
<TABLE>
<CAPTION>
PARTICIPANT DIRECTED
---------------------------------------------------------
THE WASHINGTON
REAL INVESTMENT NEW MUTUAL
ESTATE COMPANY OF PERSPECTIVE INVESTORS
ASSETS ACCOUNT AMERICA FUND FUND
- ------ ----------- ----------- ----------- -----------
<S> <C> <C> <C> <C>
INVESTMENTS
At fair value
Shares of registered investment
companies $ -- $ 958,818 $ 1,100,388 $ 1,717,273
Shares of pooled separate accounts 1,967 -- -- --
Insurance company unallocated
contracts -- -- -- --
Participant loans -- -- -- --
Common stock -- -- -- --
----------- ----------- ----------- -----------
Total investments at fair value 1,967 958,818 1,100,388 1,717,273
----------- ----------- ----------- -----------
RECEIVABLES
Contributions - employer 15 14,097 12,344 24,756
Contributions - employee 16 20,262 19,413 36,738
----------- ----------- ----------- -----------
Total receivables 31 34,359 31,757 61,494
----------- ----------- ----------- -----------
BENEFITS PAYABLE (976) (16,542) (20,487) (17,539)
----------- ----------- ----------- -----------
NET ASSETS AVAILABLE FOR BENEFITS $ 1,022 $ 976,635 $ 1,111,658 $ 1,761,228
=========== =========== =========== ===========
<CAPTION>
PARTICIPANT DIRECTED
----------------------------------------
FLORES AND PARTICIPANTS
RUCKS, INC. NOTES
ASSETS STOCK FUND TOTAL
- ------ ----------- ------------- -----------
<S> <C> <C> <C>
INVESTMENTS
At fair value
Shares of registered investment
companies $ -- $ -- $ 3,776,479
Shares of pooled separate accounts -- -- 1,255,479
Insurance company unallocated
contracts -- -- 132,606
Participant loans -- 326,632 326,632
Common stock 2,458,467 -- 2,458,467
----------- ----------- -----------
Total investments at fair value 2,458,467 326,632 7,949,663
----------- ----------- -----------
RECEIVABLES
Contributions - employer 29,350 -- 122,296
Contributions - employee 37,872 8,092 172,266
----------- ----------- -----------
Total receivables 67,222 8,092 294,562
----------- ----------- -----------
BENEFITS PAYABLE (66,810) -- (154,550)
----------- ----------- -----------
NET ASSETS AVAILABLE FOR BENEFITS $ 2,458,879 $ 334,724 $ 8,089,675
=========== =========== ===========
</TABLE>
Continued on next page.
See Notes to Financial Statements.
4
<PAGE> 8
===============================================================================
FLORES & RUCKS, INC. 401(k) SAVINGS PLAN
- -------------------------------------------------------------------------------
STATEMENT OF NET ASSETS AVAILABLE FOR BENEFITS DECEMBER 31, 1995
<TABLE>
<CAPTION>
PARTICIPANT DIRECTED
-------------------------------------------------------------------------
GUARANTEED MONEY GOVERNMENT BOND AND BOND STOCK
INTEREST MARKET SECURITIES MORTGAGE EMPHASIS EMPHASIS
ASSETS ACCOUNT ACCOUNT ACCOUNT ACCOUNT ACCOUNT ACCOUNT
- ------ ---------- --------- ---------- --------- --------- ---------
<S> <C> <C> <C> <C> <C> <C>
INVESTMENTS
At fair value
Shares of registered investment companies $ -- $ -- $ -- $ -- $ -- $ --
Shares of pooled separate accounts -- 49,203 2,524 28,013 59,866 96,729
Insurance company unallocated contracts 114,697 -- -- -- -- --
Participant loans -- -- -- -- -- --
Common stock -- -- -- -- -- --
--------- --------- --------- --------- --------- ---------
Total investments at fair value 114,697 49,203 2,524 28,013 59,866 96,729
--------- --------- --------- --------- --------- ---------
RECEIVABLES
Contributions - employer 560 1,192 65 842 1,793 1,737
Contributions - employee 1,276 1,918 144 1,140 1,993 2,340
--------- --------- --------- --------- --------- ---------
Total receivables 1,836 3,110 209 1,982 3,786 4,077
--------- --------- --------- --------- --------- ---------
BENEFITS PAYABLE (9,569) (68) -- (279) -- (141)
--------- --------- --------- --------- --------- ---------
NET ASSETS AVAILABLE FOR BENEFITS $ 106,964 $ 52,245 $ 2,733 $ 29,716 $ 63,652 $ 100,665
========= ========= ========= ========= ========= =========
</TABLE>
See Notes to Financial Statements. Continued on next page.
5
<PAGE> 9
===============================================================================
FLORES & RUCKS, INC. 401(k) SAVINGS PLAN
- -------------------------------------------------------------------------------
STATEMENT OF NET ASSETS AVAILABLE FOR BENEFITS, CONTINUED DECEMBER 31, 1995
<TABLE>
<CAPTION>
PARTICIPANT DIRECTED
--------------------------------------------------------------------------
STOCK U. S. MEDIUM MEDIUM SMALL
INDEX STOCK COMPANY COMPANY COMPANY INTERNATIONAL
ASSETS ACCOUNT ACCOUNT VALUE BLEND BLEND STOCK
- ------ --------- --------- --------- --------- --------- -------------
<S> <C> <C> <C> <C> <C> <C>
INVESTMENTS
At fair value
Shares of registered investment companies $ -- $ -- $ -- $ -- $ -- $ --
Shares of pooled separate accounts 49,618 15,863 31,399 73,852 95,783 63,045
Insurance company unallocated contracts -- -- -- -- -- --
Participant loans -- -- -- -- -- --
Common stock -- -- -- -- -- --
--------- --------- --------- --------- --------- ---------
Total investments at fair value 49,618 15,863 31,399 73,852 95,783 63,045
--------- --------- --------- --------- --------- ---------
RECEIVABLES
Contributions - employer 1,989 1,500 1,132 3,246 5,546 1,655
Contributions - employee 2,918 2,546 1,480 4,739 10,227 2,986
--------- --------- --------- --------- --------- ---------
Total receivables 4,907 4,046 2,612 7,985 15,773 4,641
--------- --------- --------- --------- --------- ---------
BENEFITS PAYABLE (4,333) -- (3,256) -- (2,178) (2,097)
--------- --------- --------- --------- --------- ---------
NET ASSETS AVAILABLE FOR BENEFITS $ 50,192 $ 19,909 $ 30,755 $ 81,837 $ 109,378 $ 65,589
========= ========= ========= ========= ========= =========
</TABLE>
See Notes to Financial Statements. Continued on next page.
6
<PAGE> 10
===============================================================================
FLORES & RUCKS, INC. 401(k) SAVINGS PLAN
- -------------------------------------------------------------------------------
STATEMENT OF NET ASSETS AVAILABLE FOR BENEFITS, CONTINUED DECEMBER 31, 1995
<TABLE>
<CAPTION>
PARTICIPANT DIRECTED
--------------------------------------------------------
THE WASHINGTON
REAL INVESTMENT NEW MUTUAL
ESTATE COMPANY OF PERSPECTIVE INVESTORS
ASSETS ACCOUNT AMERICA FUND FUND
- ------ ----------- ----------- ----------- -----------
<S> <C> <C> <C> <C>
INVESTMENTS
At fair value
Shares of registered investment companies $ -- $ 636,332 $ 727,173 $ 1,059,178
Shares of pooled separate accounts 1,456 -- -- --
Insurance company unallocated contracts -- -- -- --
Participant loans -- -- -- --
Common stock -- -- -- --
----------- ----------- ----------- -----------
Total investments at fair value 1,456 636,332 727,173 1,059,178
----------- ----------- ----------- -----------
RECEIVABLES
Contributions - employer 18 11,542 10,682 18,856
Contributions - employee 19 18,879 19,116 31,538
----------- ----------- ----------- -----------
Total receivables 37 30,421 29,798 50,394
----------- ----------- ----------- -----------
BENEFITS PAYABLE (907) (21,134) (24,615) (21,663)
----------- ----------- ----------- -----------
NET ASSETS AVAILABLE FOR BENEFITS $ 586 $ 645,619 $ 732,356 $ 1,087,909
=========== =========== =========== ===========
<CAPTION>
PARTICIPANT DIRECTED
----------------------------------------
FLORES AND PARTICIPANTS
RUCKS, INC. NOTES
ASSETS STOCK FUND TOTAL
- ------ ----------- ------------ -----------
<S> <C> <C> <C>
INVESTMENTS
At fair value
Shares of registered investment companies $ -- $ -- $ 2,422,683
Shares of pooled separate accounts -- -- 567,351
Insurance company unallocated contracts -- -- 114,697
Participant loans -- 187,742 187,742
Common stock 454,254 -- 454,254
----------- ----------- -----------
Total investments at fair value 454,254 187,742 3,746,727
----------- ----------- -----------
RECEIVABLES
Contributions - employer 15,132 -- 77,487
Contributions - employee 26,128 4,281 133,668
----------- ----------- -----------
Total receivables 41,260 4,281 211,155
----------- ----------- -----------
BENEFITS PAYABLE (19,764) -- (110,004)
----------- ----------- -----------
NET ASSETS AVAILABLE FOR BENEFITS $ 475,750 $ 192,023 $ 3,847,878
=========== =========== ===========
</TABLE>
See Notes to Financial Statements. Continued on next page.
7
<PAGE> 11
================================================================================
FLORES & RUCKS, INC. 401(k) SAVINGS PLAN
- --------------------------------------------------------------------------------
STATEMENT OF CHANGES IN NET ASSETS AVAILABLE YEAR ENDED DECEMBER 31, 1996
FOR BENEFITS
<TABLE>
<CAPTION>
PARTICIPANT DIRECTED
-------------------------------------------------------------------------
GUARANTEED MONEY GOVERNMENT BOND AND BOND STOCK
INTEREST MARKET SECURITIES MORTGAGE EMPHASIS EMPHASIS
ACCOUNT ACCOUNT ACCOUNT ACCOUNT ACCOUNT ACCOUNT
---------- --------- ---------- --------- --------- ---------
<S> <C> <C> <C> <C> <C> <C>
INVESTMENT INCOME
Net appreciation in fair value of investments $ 261 $ 3,795 $ 72 $ 1,167 $ 7,177 $ 19,345
Interest 6,923 -- -- -- -- --
Dividends -- -- -- -- -- --
Capital Gains -- -- -- -- -- --
--------- --------- --------- --------- --------- ---------
Total investment income 7,184 3,795 72 1,167 7,177 19,345
--------- --------- --------- --------- --------- ---------
CONTRIBUTIONS
Employer 10,808 6,242 1,060 4,826 8,449 12,831
Participants 16,834 10,596 1,360 8,715 9,068 17,957
Rollovers 15,947 2,830 -- -- -- --
LOAN PAYMENTS 3,424 210 199 369 334 6,339
--------- --------- --------- --------- --------- ---------
47,013 19,878 2,619 13,910 17,851 37,127
--------- --------- --------- --------- --------- ---------
TOTAL ADDITIONS 54,197 23,673 2,691 15,077 25,028 56,472
--------- --------- --------- --------- --------- ---------
DEDUCTIONS FROM NET ASSETS
New loans 529 2,409 -- 1,508 136 12,660
Loan expenses 932 4,090 21 67 37 340
Benefits paid 1,172 12,699 115 -- -- 568
--------- --------- --------- --------- --------- ---------
TOTAL DEDUCTIONS 2,633 19,198 136 1,575 173 13,568
--------- --------- --------- --------- --------- ---------
NET INCREASE PRIOR TO INTERFUND TRANSFERS 51,564 4,475 2,555 13,502 24,855 42,904
Transfers (to) from other funds (30,753) 83,690 (3,726) (16,768) (613) 11,938
--------- --------- --------- --------- --------- ---------
NET INCREASE 20,811 88,165 (1,171) (3,266) 24,242 54,842
NET ASSETS AVAILABLE FOR BENEFITS
Beginning of year 106,963 52,245 2,733 29,716 63,652 100,665
--------- --------- --------- --------- --------- ---------
End of year $ 127,774 $ 140,410 $ 1,562 $ 26,450 $ 87,894 $ 155,507
========= ========= ========= ========= ========= =========
</TABLE>
See Notes to Financial Statements. Continued on next page.
8
<PAGE> 12
===============================================================================
FLORES & RUCKS, INC. 401(k) SAVINGS PLAN
- -------------------------------------------------------------------------------
STATEMENT OF CHANGES IN NET ASSETS AVAILABLE YEAR ENDED DECEMBER 31, 1996
FOR BENEFITS, CONTINUED
<TABLE>
<CAPTION>
PARTICIPANT DIRECTED
---------------------------------------------------------------------------
STOCK U.S. MEDIUM MEDIUM SMALL
INDEX STOCK COMPANY COMPANY COMPANY INTERNATIONAL
ACCOUNT ACCOUNT VALUE BLEND BLEND STOCK
--------- --------- --------- --------- --------- -------------
<S> <C> <C> <C> <C> <C> <C>
INVESTMENT INCOME
Net appreciation in fair value of investments $ 14,250 $ 6,195 $ 6,767 $ 25,785 $ 27,066 $ 19,557
Interest -- -- -- -- -- --
Dividends -- -- -- -- -- --
Capital Gains -- -- -- -- -- --
--------- --------- --------- --------- --------- ---------
Total investment income 14,250 6,195 6,767 25,785 27,066 19,557
--------- --------- --------- --------- --------- ---------
CONTRIBUTIONS
Employer 10,715 9,659 16,678 19,861 31,542 13,144
Participants 15,207 16,405 21,997 30,441 50,520 23,478
Rollovers 4,142 12,800 4,142 151,712 33,727 13,573
LOAN PAYMENTS 718 512 408 2,849 3,170 2,308
--------- --------- --------- --------- --------- ---------
30,782 39,376 43,225 204,863 118,959 52,503
--------- --------- --------- --------- --------- ---------
TOTAL ADDITIONS 45,032 45,571 49,992 230,648 146,025 72,060
--------- --------- --------- --------- --------- ---------
DEDUCTIONS FROM NET ASSETS
New loans 4,496 2,059 601 13,394 7,659 1,314
Loan expenses 240 94 21 276 568 210
Benefits paid 2,067 203 -- 1,261 13,117 1,104
--------- --------- --------- --------- --------- ---------
TOTAL DEDUCTIONS 6,803 2,356 622 14,931 21,344 2,628
--------- --------- --------- --------- --------- ---------
NET INCREASE PRIOR TO INTERFUND TRANSFERS 38,229 43,215 49,370 215,717 124,681 69,432
Transfers (to) from other funds (56) (7,070) (7,462) (15,650) 39,226 (1,360)
--------- --------- --------- --------- --------- ---------
NET INCREASE 38,173 36,145 41,908 200,067 163,907 68,072
NET ASSETS AVAILABLE FOR BENEFITS
Beginning of year 50,192 19,909 30,755 81,837 109,378 65,589
--------- --------- --------- --------- --------- ---------
End of year $ 88,365 $ 56,054 $ 72,663 $ 281,904 $ 273,285 $ 133,661
========= ========= ========= ========= ========= =========
</TABLE>
See Notes to Financial Statements. Continued on next page.
9
<PAGE> 13
===============================================================================
FLORES & RUCKS, INC. 401(k) SAVINGS PLAN
- -------------------------------------------------------------------------------
STATEMENT OF CHANGES IN NET ASSETS AVAILABLE YEAR ENDED DECEMBER 31, 1996
FOR BENEFITS, CONTINUED
<TABLE>
<CAPTION>
PARTICIPANT DIRECTED
-------------------------------------------------------------------------------------
THE WASHINGTON
REAL INVESTMENT NEW MUTUAL FLORES AND PARTICIPANTS
ESTATE COMPANY OF PERSPECTIVE INVESTORS RUCKS, INC. NOTES
ACCOUNT AMERICA FUND FUND STOCK FUND TOTAL
------- ---------- ----------- ---------- ---------- ------------ ----------
<S> <C> <C> <C> <C> <C> <C> <C>
INVESTMENT INCOME
Net appreciation in fair value of
investments $ 160 $89,873 $91,340 $146,123 $1,525,360 $ -- $1,984,293
Interest -- -- -- -- -- 18,179 25,102
Dividends -- 17,444 18,107 37,178 -- -- 72,729
Capital Gains -- 38,913 38,200 78,407 -- -- 155,520
------ -------- ---------- ---------- ---------- -------- ----------
Total investment income 160 146,230 147,647 261,708 1,525,360 18,179 2,237,644
------ -------- ---------- ---------- ---------- -------- ----------
CONTRIBUTIONS
Employer 182 90,727 98,585 138,480 109,186 -- 582,975
Participants 182 147,669 160,827 241,560 169,815 -- 942,631
Rollovers -- 4,142 35,039 143,503 250,025 -- 671,582
LOAN PAYMENTS -- 9,334 12,219 19,139 8,625 (70,157) --
------ -------- ---------- ---------- ---------- -------- ----------
364 251,872 306,670 542,682 537,651 (70,157) 2,197,188
------ -------- ---------- ---------- ---------- -------- ----------
TOTAL ADDITIONS 524 398,102 454,317 804,390 2,063,011 (51,978) 4,434,832
------ -------- ---------- ---------- ---------- -------- ----------
DEDUCTIONS FROM NET ASSETS
New loans -- 37,747 25,201 64,243 20,723 (194,679) --
Loan expenses 18 3,876 2,636 3,077 1,814 -- 18,317
Benefits paid 69 21,276 26,116 11,685 83,266 -- 174,718
------ -------- ---------- ---------- ---------- -------- ----------
TOTAL DEDUCTIONS 87 62,899 53,953 79,005 105,803 (194,679) 193,035
------ -------- ---------- ---------- ---------- -------- ----------
NET INCREASE PRIOR TO INTERFUND
TRANSFERS 437 335,203 400,364 725,385 1,957,208 142,701 4,241,797
Transfers (to) from other funds -- (4,187) (21,063) (52,067) 25,921 -- --
------ -------- ---------- ---------- ---------- -------- ----------
NET INCREASE 437 331,016 379,301 673,318 1,983,129 142,701 4,241,797
NET ASSETS AVAILABLE FOR BENEFITS
Beginning of year 585 645,619 732,357 1,087,910 475,750 192,023 3,847,878
------ -------- ---------- ---------- ---------- -------- ----------
End of year $1,022 $976,635 $1,111,658 $1,761,228 $2,458,879 $334,724 $8,089,675
====== ======== ========== ========== ========== ======== ==========
</TABLE>
See Notes to Financial Statements. Continued on next page.
10
<PAGE> 14
===============================================================================
FLORES & RUCKS, INC. 401(k) SAVINGS PLAN
- -------------------------------------------------------------------------------
STATEMENT OF CHANGES IN NET ASSETS AVAILABLE YEAR ENDED DECEMBER 31, 1995
FOR BENEFITS
<TABLE>
<CAPTION>
PARTICIPANT DIRECTED
---------------------------------------------------------------------------------
THE WASHINGTON THE CASH
NEW INVESTMENT MUTUAL THE INCOME THE BOND MANAGEMENT
PERSPECTIVE COMPANY OF INVESTORS FUND OF FUND OF TRUST OF
FUND AMERICA FUND AMERICA AMERICA AMERICA
----------- ---------- ---------- ---------- ---------- ----------
<S> <C> <C> <C> <C> <C> <C>
INVESTMENT INCOME
Net appreciation (depreciation) in fair
value of investments $ 61,463 $ 92,311 $ 181,784 $ 35,189 $ 6,148 $ --
Interest -- -- -- -- 4,660 3,474
Dividends 47,547 48,033 79,677 7,739 -- --
---------- ---------- ---------- ---------- ---------- -------
Total investment income 109,010 140,344 261,461 42,928 10,808 3,474
---------- ---------- ---------- ---------- ---------- -------
CONTRIBUTIONS
Employer 105,436 97,789 129,908 30,642 11,376 3,473
Participants 168,652 153,690 217,542 47,795 16,141 6,567
Rollovers 21,675 11,738 36,444 22,859 18,006 18,006
LOAN PAYMENTS 6,332 5,807 8,920 5,528 222 150
---------- ---------- ---------- ---------- ---------- -------
302,095 269,024 392,814 106,824 45,745 28,196
---------- ---------- ---------- ---------- ---------- -------
TOTAL ADDITIONS 411,105 409,368 654,275 149,752 56,553 31,670
---------- ---------- ---------- ---------- ---------- -------
DEDUCTIONS FROM NET ASSETS
New loans 36,766 26,836 44,605 21,540 3,470 2,000
Loan expenses -- -- -- -- -- --
Benefits paid 39,396 43,419 54,308 -- 21,117 --
---------- ---------- ---------- ---------- ---------- -------
TOTAL DEDUCTIONS 76,162 70,255 98,913 21,540 24,587 2,000
---------- ---------- ---------- ---------- ---------- -------
NET INCREASE PRIOR TO INTERFUND TRANSFERS 334,943 339,113 555,362 128,212 31,966 29,670
Transfers (to) from other funds (112,863) (102,846) 2,834 (343,537) (125,506) (92,433)
---------- ---------- ---------- ---------- ---------- -------
NET INCREASE 222,080 236,267 558,196 (215,325) (93,540) (62,763)
NET ASSETS AVAILABLE FOR BENEFITS
Beginning of year 510,276 409,352 529,713 215,325 93,540 62,763
---------- ---------- ---------- ---------- ---------- -------
End of year $ 732,356 $ 645,619 $1,087,909 $ -- $ -- $ --
========== ========== ========== ========== ========== =======
</TABLE>
See Notes to Financial Statements. Continued on next page.
11
<PAGE> 15
================================================================================
FLORES & RUCKS, INC. 401(k) SAVINGS PLAN
- --------------------------------------------------------------------------------
STATEMENT OF CHANGES IN NET ASSETS AVAILABLE YEAR ENDED DECEMBER 31, 1995
FOR BENEFITS, CONTINUED
<TABLE>
<CAPTION>
PARTICIPANT DIRECTED
-----------------------------------------------------------------------
PARTICIPANTS FLORES AND GUARANTEED U.S. MONEY REAL
NOTES RUCKS, INC. INTEREST STOCK MARKET ESTATE
FUND STOCK ACCOUNT ACCOUNT ACCOUNT ACCOUNT
------------ ----------- ---------- --------- --------- ---------
<S> <C> <C> <C> <C> <C> <C>
INVESTMENT INCOME
Net appreciation (depreciation) in fair
value of investments $ -- $ 31,108 $ -- $ 669 $ 2,181 $ 16
Interest 9,929 -- 1,073 -- 3,521 --
Dividends -- 11,784 -- 428 -- 3
--------- --------- --------- --------- --------- ---------
Total investment income 9,929 42,892 1,073 1,097 5,702 19
--------- --------- --------- --------- --------- ---------
CONTRIBUTIONS
Employer -- 40,364 2,631 4,176 2,909 124
Participants -- 68,226 5,929 7,239 4,580 124
Rollovers -- 33,323 75,248 -- -- --
LOAN PAYMENTS (33,848) 2,081 2,349 -- -- --
--------- --------- --------- --------- --------- ---------
(33,848) 143,994 86,157 11,415 7,489 248
--------- --------- --------- --------- --------- ---------
TOTAL ADDITIONS (23,919) 186,886 87,230 12,512 13,191 267
--------- --------- --------- --------- --------- ---------
DEDUCTIONS FROM NET ASSETS
New loans (145,860) 3,781 -- 280 -- --
Loan expenses -- -- 80 11 -- --
Benefits paid 3,206 19,764 15,750 -- 4,804 907
--------- --------- --------- --------- --------- ---------
TOTAL DEDUCTIONS (142,654) 23,545 15,830 291 4,804 907
--------- --------- --------- --------- --------- ---------
NET INCREASE PRIOR TO INTERFUND TRANSFERS 118,735 163,341 71,400 12,221 8,387 (640)
Transfers (to) from other funds 1,701 312,409 35,564 7,688 43,858 1,226
--------- --------- --------- --------- --------- ---------
NET INCREASE 120,436 475,750 106,964 19,909 52,245 586
NET ASSETS AVAILABLE FOR BENEFITS
Beginning of year 71,587 -- -- -- -- --
--------- --------- --------- --------- --------- ---------
End of year $ 192,023 $ 475,750 $ 106,964 $ 19,909 $ 52,245 $ 586
========= ========= ========= ========= ========= =========
</TABLE>
See Notes to Financial Statements. Continued on next page.
12
<PAGE> 16
===============================================================================
FLORES & RUCKS, INC. 401(k) SAVINGS PLAN
- -------------------------------------------------------------------------------
STATEMENT OF CHANGES IN NET ASSETS AVAILABLE YEAR ENDED DECEMBER 31, 1995
FOR BENEFITS, CONTINUED
<TABLE>
<CAPTION>
PARTICIPANT DIRECTED
---------------------------------------------------------------------------
BOND AND INTERNATIONAL GOVERNMENT STOCK VALUE SMALL
MORTGAGE STOCK SECURITIES INDEX STOCK COMPANY
ACCOUNT ACCOUNT ACCOUNT ACCOUNT ACCOUNT ACCOUNT
---------- ---------- ---------- ---------- ---------- ----------
<S> <C> <C> <C> <C> <C> <C>
INVESTMENT INCOME
Net appreciation (depreciation) in
fair value of investments $ 600 $ 934 $ 16 $ 995 $ 857 $ 1,482
Interest 507 -- 173 -- -- --
Dividends -- 3,037 -- 3,388 966 1,275
---------- ---------- ---------- ---------- ---------- ----------
Total investment income 1,107 3,971 189 4,383 1,823 2,757
---------- ---------- ---------- ---------- ---------- ----------
CONTRIBUTIONS
Employer 2,338 4,643 172 4,660 3,003 13,643
Participants 3,803 9,206 415 6,731 3,573 24,354
Rollovers -- 1,129 -- -- -- 2,257
LOAN PAYMENTS 148 517 -- 148 45 649
---------- ---------- ---------- ---------- ---------- ----------
6,289 15,495 587 11,539 6,621 40,903
---------- ---------- ---------- ---------- ---------- ----------
TOTAL ADDITIONS 7,396 19,466 776 15,922 8,444 43,660
---------- ---------- ---------- ---------- ---------- ----------
DEDUCTIONS FROM NET ASSETS
New loans 128 1,246 128 -- 280 61
Loan expenses 11 62 9 -- 11 76
Benefits paid 279 2,097 -- 4,333 3,256 2,178
---------- ---------- ---------- ---------- ---------- ----------
TOTAL DEDUCTIONS 418 3,405 137 4,333 3,547 2,315
---------- ---------- ---------- ---------- ---------- ----------
NET INCREASE PRIOR TO INTERFUND TRANSFERS 6,978 16,061 639 11,589 4,897 41,345
Transfers (to) from other funds 22,738 49,528 2,094 38,603 25,858 68,033
---------- ---------- ---------- ---------- ---------- ----------
NET INCREASE 29,716 65,589 2,733 50,192 30,755 109,378
NET ASSETS AVAILABLE FOR BENEFITS
Beginning of year -- -- -- -- -- --
---------- ---------- ---------- ---------- ---------- ----------
End of year $ 29,716 $ 65,589 $ 2,733 $ 50,192 $ 30,755 $ 109,378
========== ========== ========== ========== ========== ==========
</TABLE>
See Notes to Financial Statements. Continued on next page.
13
<PAGE> 17
===============================================================================
FLORES & RUCKS, INC. 401(k) SAVINGS PLAN
- -------------------------------------------------------------------------------
STATEMENT OF CHANGES IN NET ASSETS AVAILABLE YEAR ENDED DECEMBER 31, 1995
FOR BENEFITS, CONTINUED
<TABLE>
<CAPTION>
PARTICIPANT DIRECTED
-------------------------------------------------
GROWTH BOND STOCK
STOCK EMPHASIS EMPHASIS
ACCOUNT ACCOUNT ACCOUNT TOTAL
---------- ---------- ---------- ----------
<S> <C> <C> <C> <C>
INVESTMENT INCOME
Net appreciation in fair value of investments $ 1,619 $ 1,549 $ 3,484 $ 422,405
Interest -- 764 -- 24,101
Dividends 2,511 -- 1,548 207,936
---------- ---------- ---------- ----------
Total investment income 4,130 2,313 5,032 654,442
---------- ---------- ---------- ----------
CONTRIBUTIONS
Employer 7,146 3,826 5,428 473,687
Participants 10,878 4,241 7,578 767,264
Rollovers 2,257 17,307 15,051 275,300
LOAN PAYMENTS 454 30 468 --
---------- ---------- ---------- ----------
20,735 25,404 28,525 1,516,251
---------- ---------- ---------- ----------
TOTAL ADDITIONS 24,865 27,717 33,557 2,170,693
---------- ---------- ---------- ----------
DEDUCTIONS FROM NET ASSETS
New loans 1,502 219 3,018 --
Loan expenses 71 15 70 416
Benefits paid -- -- 141 214,955
---------- ---------- ---------- ----------
TOTAL DEDUCTIONS 1,573 234 3,229 215,371
---------- ---------- ---------- ----------
NET INCREASE PRIOR TO INTERFUND TRANSFERS 23,292 27,483 30,328 1,955,322
Transfers (to) from other funds 58,545 36,169 70,337 --
---------- ---------- ---------- ----------
NET INCREASE 81,837 63,652 100,665 1,955,322
NET ASSETS AVAILABLE FOR BENEFITS
Beginning of year -- -- -- 1,892,556
---------- ---------- ---------- ----------
End of year $ 81,837 $ 63,652 $ 100,665 $3,847,878
========== ========== ========== ==========
</TABLE>
See Notes to Financial Statements. Continued on next page.
14
<PAGE> 18
===============================================================================
FLORES & RUCKS, INC. 401(k) SAVINGS PLAN
- -------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 1996
1. DESCRIPTION OF PLAN
The following description of the Flores & Rucks, Inc. ("Company")
401(k) 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 was established September 1, 1993. The Plan is a
defined contribution plan covering all full time employees who have
six months of service and are age twenty one or older. It is subject
to the provisions of the Employee Retirement Income Security Act of
1974 (ERISA).
CONTRIBUTIONS. Each year, participants may contribute from a minimum
of 2% up to a maximum of 15% of pretax annual compensation, as defined
in the Plan. Participants may also contribute amounts representing
distributions from other qualified defined benefit or contribution
plans. The Company may contribute to the Plan an amount to be
determined annually by the Board of Directors (discretionary profit
sharing contribution). Under the 401(k) provisions, the Company may
also make a matching contribution not to exceed 5% of participants'
compensation.
PARTICIPANT ACCOUNTS. Each participant's account is credited with the
participant's contribution and allocations of (a) the Company's
contribution and, (b) Plan earnings. Allocations are based on
participant earnings or account balances, as defined. The benefit to
which a participant is entitled is the benefit that can be provided
from the participant's vested account.
VESTING. Participants are immediately vested in their contributions,
plus actual earnings thereon. Participants also vest in the Company's
matching and discretionary contribution portion of their accounts plus
actual earnings thereon based on a five year schedule as outlined in
the Plan's trust document. A participant is 100 percent vested after
five years of credited service.
INVESTMENT OPTIONS. Upon enrollment in the Plan, a participant may
direct employee and employer contributions in percentage increments
in any of eighteen investment funds.
Investments held by Principal Financial Group are as follows.
The Guaranteed Interest Account. A part of Principal Mutual
Life's General Account. The underlying assets in the General
Account are invested mostly in private placement bonds,
commercial mortgages, and residential mortgages. The Guaranteed
Interest Account provides a guaranteed interest rate for a
specified period of time as determined, or allowed, by the Plan.
Money Market Account. A pooled investment account which invests
in money market instruments.
15
<PAGE> 19
===============================================================================
FLORES & RUCKS, INC. 401(k) SAVINGS PLAN
- -------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS, CONTINUED DECEMBER 31, 1996
Government Securities Account. A pooled investment account
invested in obligations issued or guaranteed by the U.S.
Government or its agencies.
Bond and Mortgage Account. A pooled investment account invested
in intermediate term, fixed income loans.
Bond Emphasis Account. A pooled investment account invested in
other separate accounts of Principal Mutual Life Insurance
Company, weighted toward fixed income accounts.
Stock Emphasis Account. A pooled investment account invested in
other separate accounts of Principal Mutual Life Insurance
Company, weighted toward equity accounts.
Stock Index Account. A pooled investment account primarily
invested in the common stock of those firms included in the
Standards and Poor 500 Stock Index.
U.S. Stock Account. A pooled investment account invested in U.S.
securities, primarily common stocks.
Medium Company Value. A pooled investment account invested
primarily in income producing common stocks that are undervalued
in the marketplace according to traditional measures of value.
Medium Company Blend. A pooled investment account invested
primarily in common stocks of large established companies whose
earnings are expected to grow at above average rates.
Small Company Blend. A pooled investment account invested
primarily in common stocks of smaller companies whose earnings
are expected to grow at above average rates.
International Stock. A pooled investment account invested
primarily in common stocks of corporations located outside the
United States.
Real Estate Account. A pooled investment account invested in
owned commercial property.
The Investment Company of America. A fund investing in equity
securities.
New Perspective Fund. A fund investing in domestic and foreign
equity securities.
Washington Mutual Investors Fund. A fund investing in equity
securities.
Flores & Rucks, Inc. Stock. Corporate Common Stock.
Participants Notes Fund. Loans to participants in the Plan.
16
<PAGE> 20
===============================================================================
FLORES & RUCKS, INC. 401(k) SAVINGS PLAN
- -------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS, CONTINUED DECEMBER 31, 1996
PAYMENT OF BENEFITS. For termination of service due to death,
retirement or other reasons, a participant may receive the value of
the vested interest in his or her account as a lump sum distribution.
ADMINISTRATIVE EXPENSE. Costs of Plan administration are paid by the
Company.
PARTICIPANT NOTES RECEIVABLE. Participants may borrow from their fund
accounts a minimum of $1,000 and to a maximum equal to the lesser of
$50,000 or 50% of their account balance. Loan transactions are treated
as a transfer to (from) the investment fund from (to) the Participant
Notes Funds. Loan terms range from one to five years or up to twenty
five years for the purchase of a primary residence. The loans are
secured by the balance in the participant's account and bear interest
at a rate commensurate with local prevailing rates as determined
quarterly by the Plan administrator. Interest rates range from 7% to
11.75%. Principal and interest are paid ratably through monthly
payroll deductions. During the year ended December 31, 1996, there
were 43 loans made totaling $194,679, repayments were $70,157, and the
ending balance was $394,724.
FORFEITED ACCOUNTS. At December 31, 1996, forfeited nonvested accounts
totaled $6,741. These accounts will be used to reduce future employer
contributions. Also, in 1996, employer contributions were reduced by
$13,777 from forfeited nonvested accounts.
2. SUMMARY OF ACCOUNTING POLICIES
BASIS OF ACCOUNTING. The financial statements of the Plan are
prepared under the accrual method of accounting.
INVESTMENT VALUATION AND INCOME RECOGNITION. The Plan's investments
are stated at fair value. Shares of registered investment companies
are valued at quoted market prices which represent the net asset value
of shares held by the Plan at year end. The Company's stock is valued
at its quoted market price. Participant notes receivable are valued at
cost which approximates fair value.
Purchases and sales of securities are recorded on a trade-date basis.
Interest income is recorded on the accrual basis. Dividends are
recorded on the ex-dividend date.
PAYMENT OF BENEFITS
Benefits are recorded when paid.
17
<PAGE> 21
===============================================================================
FLORES & RUCKS, INC. 401(k) SAVINGS PLAN
- -------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS, CONTINUED DECEMBER 31, 1996
ESTIMATES
The preparation of financial statements in conformity with generally
accepted accounting principles requires the Plan's management to make
estimates and assumptions that affect certain reported amounts and
disclosures. Accordingly, actual results may differ from those
estimates.
3. RECONCILIATION OF FINANCIAL STATEMENTS TO FORM 5500
The following is a reconciliation of net assets available for benefits
per the financial statements to the Form 5500.
<TABLE>
<CAPTION>
DECEMBER 31,
1996 1995
---------- ----------
<S> <C> <C>
Net assets available for benefits per the financial statements $8,089,675 $3,847,878
Amounts allocated to withdrawing participants 154,550 110,004
---------- ----------
Net assets available for benefits per the Form 5500 $8,244,225 $3,957,882
========== ==========
</TABLE>
The following is a reconciliation of benefits paid to participants per
the financial statements for the years ended December 31, 1996 and
1995 to Form 5500.
<TABLE>
<CAPTION>
DECEMBER 31,
1996 1995
---------- ----------
<S> <C> <C>
Benefits paid to participants per the financial statements $ 174,718 $ 214,955
Add: Amounts allocated to withdrawing participants at
December 31, 1995 110,004 (110,004)
Less: Amounts allocated to withdrawing participants at
December 31, 1996 (154,550) -
Taxable loan distributions 37,187 -
---------- ----------
Benefits paid to participants per Form 5500 $ 167,359 $ 104,951
========== ==========
</TABLE>
4. PLAN TERMINATION
Although it has not expressed any intent to do so, the Company has the
right under the Plan to discontinue its contributions at any time and
to terminate the Plan subject to the provisions of ERISA. In the event
of Plan termination, participants will become 100% vested in their
accounts.
18
<PAGE> 22
===============================================================================
FLORES & RUCKS, INC. 401(k) SAVINGS PLAN
- -------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS, CONTINUED DECEMBER 31, 1996
5. TAX STATUS
The Internal Revenue Service has determined and informed the trustee by
a letter dated August 8, 1996, that the Plan is designed in accordance
with applicable sections of the Internal Revenue Code (IRC).
6. RELATED PARTY TRANSACTIONS
Certain Plan investments are shares of pooled separate accounts managed
by Principal Mutual Life Insurance Company and mutual fund shares in
registered investment companies managed by American Family Funds. While
no direct fees are paid to Principal Mutual Life Insurance Company or
American Family Funds, certain management expenses which are netted
against interest and dividend income are charged to the funds and
allocated to all share owners. Also, participants may invest up to 50%
of their account in employer (Flores & Rucks, Inc.) common stock.
7. CHANGE OF TRUSTEE
Effective August 1, 1995, management changed the contract trustee and
administrator to enable the offering of company stock as an investment
option in the Plan. The Plan also increased the investment options from
six to seventeen different funds.
8. INVESTMENTS
The investment assets of the Plan are held by Bankers Trust Company.
The following table presents the aggregate fair values for each of the
Plan's significant investments, all of which represent 5% or more of
the Plan's net assets.
<TABLE>
<CAPTION>
DECEMBER 31,
1996 1995
------------------- -------------------
SHARES VALUE SHARES VALUE
------ ---------- ------ ----------
<S> <C> <C> <C> <C>
New Perspective Fund 60,561 $1,100,388 44,394 $ 727,173
The Investment Company of America 39,572 958,818 29,446 636,332
Washington Mutual Investors Fund 69,979 1,717,273 48,210 1,059,178
---------- ----------
Total shares of registered investment
companies 3,776,479 2,422,683
Participant loans 326,632 187,742
Flores & Rucks, Inc. common stock 2,458,467 454,254
Other 1,388,085 682,048
---------- ----------
$7,949,663 $3,746,727
========== ==========
</TABLE>
19
<PAGE> 23
===============================================================================
FLORES & RUCKS, INC. 401(k) SAVINGS PLAN
- -------------------------------------------------------------------------------
SUPPLEMENTARY INFORMATION DECEMBER 31, 1996
20
<PAGE> 24
[PROVOST SALTER HARPER & ALFORD LLC LETTERHEAD]
INDEPENDENT AUDITOR'S REPORT ON THE SUPPLEMENTARY INFORMATION
To the Trustees
Flores & Rucks, Inc. 401(k) Savings Plan
Baton Rouge, Louisiana
Our report on our audits of the financial statements of Flores & Rucks, Inc.
401(k) Savings Plan appears on page 1. Our audits were conducted for the
purpose of forming an opinion on the basic financial statements taken as a
whole. The supplemental schedules of (1) assets held for investment purposes,
and (2) reportable transactions are presented for the purpose of additional
analysis and are not a required part of the basic financial statements but are
supplementary information required by the Department of Labor's Rules and
Regulations for Reporting and Disclosure under the Employee Retirement Income
Security Act of 1974. The supplemental schedules have been subjected to the
auditing procedures applied in the audits of the basic financial statements
and, in our opinion are fairly stated in all material respects in relation to
the basic financial statements taken as a whole.
PROVOST, SALTER, HARPER & ALFORD, L.L.C.
/s/ PROVOST, SALTER, HARPER & ALFORD, L.L.C.
May 2, 1997
21
<PAGE> 25
===============================================================================
FLORES & RUCKS, INC. 401(k) SAVINGS PLAN SCHEDULE 1
- -------------------------------------------------------------------------------
LINE 27a - ASSETS HELD FOR INVESTMENT PURPOSES DECEMBER 31, 1996
EMPLOYER IDENTIFICATION NUMBER (EIN) 72-1210660
PLAN NUMBER (PN)001
<TABLE>
<CAPTION>
(e)
(b) (c) (d) FAIR
(a) IDENTITY OF PARTY INVOLVED DESCRIPTION SHARES COST VALUE
- ------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
COMMON INVESTMENT FUNDS
* The American Funds Group New Perspective Fund 60,561 $1,027,860 $1,100,388
* The American Funds Group The Investment Company of America 39,572 863,095 958,818
* The American Funds Group Washington Mutual Investors Fund 69,979 1,531,856 1,717,273
---------- ----------
TOTAL COMMON INVESTMENT FUNDS 3,422,811 3,776,479
---------- ----------
GENERAL FUND ACCOUNT
* Principal Mutual Life
Insurance Company Guaranteed Interest Account -- 132,627 132,606
---------- ----------
POOLED SEPARATE ACCOUNTS
* Principal Mutual Life
Insurance Company Money Market Account 4,049 132,524 134,983
* Principal Mutual Life
Insurance Company Government Securities Account 92 1,070 1,103
* Principal Mutual Life
Insurance Company Bond and Mortgage Account 53 20,815 21,956
* Principal Mutual Life
Insurance Company Bond Emphasis Account 6,317 74,422 83,108
* Principal Mutual Life
Insurance Company Stock Emphasis Account 10,076 127,791 148,954
</TABLE>
Continued on next page
22
<PAGE> 26
===============================================================================
FLORES & RUCKS, INC. 401(k) SAVINGS PLAN SCHEDULE 1
- -------------------------------------------------------------------------------
LINE 27A - ASSETS HELD FOR INVESTMENT PURPOSES DECEMBER 31, 1996
EMPLOYER IDENTIFICATION NUMBER (EIN) 72-1210660
PLAN NUMBER (PN)001
<TABLE>
<CAPTION>
(b) (e)
IDENTITY OF (c) (d) FAIR
(a) PARTY INVOLVED DESCRIPTION SHARES COST VALUE
- -------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
* Principal Mutual Life
Insurance Company Stock Index Account 3,496 73,145 87,845
* Principal Mutual Life
Insurance Company U. S. Stock Account 165 44,217 50,155
* Principal Mutual Life
Insurance Company Medium Company Value 2,354 55,062 62,309
* Principal Mutual Life
Insurance Company Medium Company Blend 11,029 242,632 268,051
* Principal Mutual Life
Insurance Company Small Company Blend 8,809 239,311 266,466
* Principal Mutual Life
Insurance Company International Stock 4,751 109,174 128,582
* Principal Mutual Life
Insurance Company Real Estate Account 9 1,804 1,967
---------- ----------
TOTAL POOLED SEPARATE ACCOUNTS 1,121,967 1,255,479
---------- ----------
* FLORES & RUCKS, INC. COMMON STOCK 67,757 1,009,689 2,458,466
---------- ----------
* PARTICIPANT LOANS INTEREST RATES RANGE FROM 7.0% TO 11.75% -- 326,633
---------- ----------
TOTAL ASSETS HELD FOR INVESTMENT PURPOSES $5,687,094 $7,949,663
========== ==========
</TABLE>
23
<PAGE> 27
===============================================================================
FLORES & RUCKS, INC. 401(k) SAVINGS PLAN SCHEDULE 2
- -------------------------------------------------------------------------------
LINE 27D - REPORTABLE TRANSACTIONS YEAR ENDED DECEMBER 31, 1996
EMPLOYER IDENTIFICATION NUMBER (EIN) 72-1210660
PLAN NUMBER (PN)001
<TABLE>
<CAPTION>
(h)
(a) (f) CURRENT
IDENTITY OF (b) (c) (d) (e) EXPENSE (g) VALUE OF ASSET (i)
PARTY DESCRIPTION PURCHASE SELLING LEASE INCURRED WITH COST ON TRANSACTION NET GAIN
INVOLVED OF ASSET PRICE PRICE RENTAL TRANSACTION OF ASSET DATE OR (LOSS)
- ----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Principal Mutual Life
Insurance Company Money Market Account $163,028 $ -- $ -- $ -- $163,028 $163,028 $ --
Principal Mutual Life
Insurance Company Medium Company Blend 202,115 -- -- -- 202,115 202,115 --
The American Funds The Investment Company of
America 318,101 -- -- -- 318,101 318,101 --
The American Funds New Perspective Fund 392,534 -- -- -- 392,534 392,534 --
The American Funds Washington Mutual Investors
Fund 673,647 -- -- -- 673,647 673,647 --
Flores & Rucks Stock Common Stock 674,227 -- -- -- 674,227 674,227 --
Principal Mutual Life
Insurance Company Money Market Account -- 80,839 -- -- 79,115 80,839 1,724
Principal Mutual Life
Insurance Company Medium Company Blend -- 33,701 -- -- 31,716 33,701 1,985
The American Funds The Investment Company of
America -- 84,593 -- -- 77,591 84,593 7,002
The American Funds New Perspective Fund -- 110,223 -- -- 106,083 110,223 4,140
The American Funds Washington Mutual Investors
Fund -- 161,056 -- -- 146,187 161,056 14,869
Flores & Rucks Stock Common Stock -- 169,866 -- -- 87,738 169,866 82,128
</TABLE>
24
<PAGE> 28
[PROVOST SALTER HARPER & ALFORD LLC LETTERHEAD]
FLORES & RUCKS, INC.
401(k) SAVINGS PLAN
FINANCIAL REPORT
DECEMBER 31, 1994
<PAGE> 29
===============================================================================
FLORES & RUCKS, INC. 401(k) SAVINGS PLAN
- -------------------------------------------------------------------------------
TABLE OF CONTENTS DECEMBER 31, 1994
<TABLE>
<S> <C>
INDEPENDENT AUDITOR'S REPORT ON THE FINANCIAL STATEMENTS 1
FINANCIAL STATEMENTS
Statement of Net Assets Available for Benefits - December 31, 1994 3
Statement of Net Assets Available for Benefits - December 31, 1993 4
Statement of Changes in Net Assets Available for Benefits - December 31, 1994 5
Statement of Changes in Net Assets Available for Benefits - December 31, 1993 6
Notes to Financial Statements 7
INDEPENDENT AUDITOR'S REPORT ON THE SUPPLEMENTARY INFORMATION 12
SUPPLEMENTARY INFORMATION
Assets Held For Investment Purposes Schedule 1 13
Reportable Transactions Schedule 2 14
</TABLE>
Note: There were no prohibited party-in-interest transactions, no leases, and
no loans or fixed income obligations in default or classified as uncollectible
during the year ended December 31, 1994. A schedule of investment assets which
were both acquired and disposed of within the plan year is not necessary since
all such transactions involve either common investment funds or instruments for
short-term money management (such as interests in mutual funds and short-term
commercial paper ranked in the highest rating category).
<PAGE> 30
[PROVOST SALTER HARPER & ALFORD LLC LETTERHEAD]
INDEPENDENT AUDITOR'S REPORT
To the Plan Administrator
Flores & Rucks, Inc. 401(k) Savings Plan
Baton Rouge, Louisiana
We have audited the accompanying statements of net assets available for
benefits with fund information of the Flores & Rucks, Inc. 401(k) Savings Plan
as of December 31, 1994 and 1993, and the related statements of changes in net
assets available for benefits with fund information for the year ended December
31, 1994 and the period September 1, 1993 through December 31, 1993. These
financial statements are the representation of the Plan's management. Our
responsibility is to express an opinion on these financial statements based on
our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we 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. We believe that our audits provide a reasonable basis
for our opinion.
In our report dated July 14, 1995, we did not express an opinion on the
financial statements and schedules taken as a whole, because of scope
limitations as permitted by 29 CFR 2520.103-8 of the Department of Labor's
Rules and Regulations for Reporting and Disclosure under the Employee
Retirement Income Security Act of 1974. We have since determined that such
limitations are not permitted for filings with the Securities Exchange
Commission included with a Form 11-K. Accordingly, our present opinion on the
December 31, 1994 and 1993 financial statements, as presented herein, is
different from that expressed in our previous report.
<PAGE> 31
In our opinion, the financial statements referred to above present fairly, in
all material respects, the net assets available for benefits of the Flores &
Rucks, Inc. 401(k) Savings Plan as of December 31, 1994 and 1993, and the
changes in its net assets available for benefits for the year ended December
31, 1994 and the period September 1, 1993 through December 31, 1993, in
conformity with generally accepted accounting principles.
PROVOST, SALTER, HARPER & ALFORD, L.L.C.
/s/ PROVOST, SALTER, HARPER & ALFORD, L.L.C.
May 2, 1997
2
<PAGE> 32
==============================================================================
FLORES & RUCKS, INC. 401(k) SAVINGS PLAN
- ------------------------------------------------------------------------------
STATEMENT OF NET ASSETS AVAILABLE FOR BENEFITS DECEMBER 31, 1994
<TABLE>
<CAPTION>
PARTICIPANT DIRECTED
-----------------------------------------------------------------------------------------------------
THE THE CASH
NEW INVESTMENT WASHINGTON THE INCOME THE BOND MANAGEMENT PARTICIPANTS
PERSPECTIVE COMPANY OF MUTUAL FUND OF FUND OF TRUST OF NOTES
ASSETS FUND AMERICA INVESTORS FUND AMERICA AMERICA AMERICA FUND TOTAL
- ------ ----------- ---------- -------------- ---------- ---------- ---------- ----------- ----------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
INVESTMENTS
At fair value
Shares of registered
investment companies $ 470,282 $ 370,459 $ 479,839 $ 191,994 $ 83,575 $ 135,650 $ -- $1,731,799
Participant loans -- -- -- -- -- -- 71,587 71,587
Allocations required
between the funds 18,552 18,000 23,039 11,232 4,527 (75,350) -- --
---------- ---------- ---------- ---------- ---------- ---------- ---------- ----------
Total investments 488,834 388,459 502,878 203,226 88,102 60,300 71,587 1,803,386
---------- ---------- ---------- ---------- ---------- ---------- ---------- ----------
RECEIVABLES
Contributions 21,442 20,893 26,835 12,099 5,438 2,463 -- 89,170
---------- ---------- ---------- ---------- ---------- ---------- ---------- ----------
Total receivables 21,442 20,893 26,835 12,099 5,438 2,463 -- 89,170
---------- ---------- ---------- ---------- ---------- ---------- ---------- ----------
NET ASSETS AVAILABLE
FOR BENEFITS $ 510,276 $ 409,352 $ 529,713 $ 215,325 $ 93,540 $ 62,763 $ 71,587 $1,892,556
========== ========== ========== ========== ========== ========== ========== ==========
</TABLE>
See Notes to Financial Statements.
3
<PAGE> 33
==============================================================================
FLORES & RUCKS, INC. 401(k) SAVINGS PLAN
- ------------------------------------------------------------------------------
STATEMENT OF NET ASSETS AVAILABLE FOR BENEFITS DECEMBER 31, 1993
<TABLE>
<CAPTION>
PARTICIPANT DIRECTED
--------------------------------------------------------------------------------------------
THE THE CASH
NEW INVESTMENT WASHINGTON THE INCOME THE BOND MANAGEMENT
PERSPECTIVE COMPANY OF MUTUAL FUND OF FUND OF TRUST OF
ASSETS FUND AMERICA INVESTORS FUND AMERICA AMERICA AMERICA TOTAL
- ------ ----------- ---------- -------------- ---------- --------- ---------- ---------
<S> <C> <C> <C> <C> <C> <C> <C>
INVESTMENTS
At fair value
Shares of registered
investment companies $ 79,304 $ 91,046 $ 87,008 $ 48,613 $ 64,263 $ 113,638 $ 483,872
Allocations required
between the funds 16,587 16,576 18,546 7,926 4,921 (64,556) --
--------- --------- --------- --------- --------- --------- ---------
Total investments 95,891 107,622 105,554 56,539 69,184 49,082 483,872
--------- --------- --------- --------- --------- --------- ---------
RECEIVABLES
Contributions 23,418 23,371 26,203 11,155 6,798 2,122 93,067
--------- --------- --------- --------- --------- --------- ---------
Total receivables 23,418 23,371 26,203 11,155 6,798 2,122 93,067
--------- --------- --------- --------- --------- --------- ---------
NET ASSETS AVAILABLE
FOR BENEFITS $ 119,309 $ 130,993 $ 131,757 $ 67,694 $ 75,982 $ 51,204 $ 576,939
========= ========= ========= ========= ========= ========= =========
</TABLE>
See Notes to Financial Statements.
4
<PAGE> 34
==============================================================================
FLORES & RUCKS, INC. 401(k) SAVINGS PLAN
- ------------------------------------------------------------------------------
STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS DECEMBER 31, 1994
<TABLE>
<CAPTION>
PARTICIPANT DIRECTED
--------------------------------------------------------------
THE
NEW INVESTMENT WASHINGTON THE INCOME
PERSPECTIVE COMPANY OF MUTUAL FUND OF
FUND AMERICA INVESTORS FUND AMERICA
----------- ----------- -------------- -----------
<S> <C> <C> <C> <C>
INVESTMENT INCOME
Net appreciation (depreciation)
in fair value of investments $ (21,986) $ (17,037) $ (16,894) $ (10,447)
Interest 680 513 752 253
Dividends 30,698 18,158 22,252 8,610
----------- ----------- ----------- -----------
Total investment income 9,392 1,634 6,110 (1,584)
----------- ----------- ----------- -----------
CONTRIBUTIONS
Employer 105,107 103,862 126,227 53,509
Participants 160,914 162,817 205,417 85,068
Rollovers 99,048 38,707 91,439 16,227
LOAN PAYMENTS 2,608 2,503 3,043 2,661
----------- ----------- ----------- -----------
367,677 307,889 426,126 157,465
----------- ----------- ----------- -----------
TOTAL ADDITIONS 377,069 309,523 432,236 155,881
----------- ----------- ----------- -----------
DEDUCTIONS FROM NET ASSETS
Benefits paid 6,264 4,999 4,784 1,676
----------- ----------- ----------- -----------
TOTAL DEDUCTIONS 6,264 4,999 4,784 1,676
----------- ----------- ----------- -----------
NET INCREASE PRIOR TO INTERFUND TRANSFERS 370,805 304,524 427,452 154,205
Transfers (to) from other funds 20,162 (26,165) (29,496) (6,574)
----------- ----------- ----------- -----------
NET INCREASE 390,967 278,359 397,956 147,631
NET ASSETS AVAILABLE FOR BENEFITS
Beginning of year 119,309 130,993 131,757 67,694
----------- ----------- ----------- -----------
End of year $ 510,276 $ 409,352 $ 529,713 $ 215,325
=========== =========== =========== ===========
<CAPTION>
PARTICIPANT DIRECTED
--------------------------------------------------------------
THE CASH
THE BOND MANAGEMENT PARTICIPANTS
FUND OF TRUST OF NOTES
AMERICA AMERICA FUND TOTAL
----------- ----------- ------------ -----------
<S> <C> <C> <C> <C>
INVESTMENT INCOME
Net appreciation (depreciation)
in fair value of investments $ (9,663) $ -- $ -- $ (76,027)
Interest 6,019 1,477 1,655 11,349
Dividends -- -- -- 79,718
----------- ----------- ----------- -----------
Total investment income (3,644) 1,477 1,655 15,040
----------- ----------- ----------- -----------
CONTRIBUTIONS
Employer 23,744 10,407 -- 422,856
Participants 35,845 26,366 -- 676,427
Rollovers 1,067 729 -- 247,217
LOAN PAYMENTS 50 -- (10,865) --
----------- ----------- ----------- -----------
60,706 37,502 (10,865) 1,346,500
----------- ----------- ----------- -----------
TOTAL ADDITIONS 57,062 38,979 (9,210) 1,361,540
----------- ----------- ----------- -----------
DEDUCTIONS FROM NET ASSETS
Benefits paid 10,202 17,998 -- 45,923
----------- ----------- ----------- -----------
TOTAL DEDUCTIONS 10,202 17,998 -- 45,923
----------- ----------- ----------- -----------
NET INCREASE PRIOR TO INTERFUND TRANSFERS 46,860 20,981 (9,210) 1,315,617
Transfers (to) from other funds (29,302) (9,422) 80,797 --
----------- ----------- ----------- -----------
NET INCREASE 17,558 11,559 71,587 1,315,617
NET ASSETS AVAILABLE FOR BENEFITS
Beginning of year 75,982 51,204 -- 576,939
----------- ----------- ----------- -----------
End of year $ 93,540 $ 62,763 $ 71,587 $ 1,892,556
=========== =========== =========== ===========
</TABLE>
See Notes to Financial Statements.
5
<PAGE> 35
==============================================================================
FLORES & RUCKS, INC. 401(k) SAVINGS PLAN
- ------------------------------------------------------------------------------
STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS DECEMBER 31, 1993
<TABLE>
<CAPTION>
PARTICIPANT DIRECTED
-----------------------------------------------------
THE
NEW INVESTMENT WASHINGTON THE INCOME
PERSPECTIVE COMPANY OF MUTUAL FUND OF
FUND AMERICA INVESTORS FUND AMERICA
----------- ---------- -------------- ----------
<S> <C> <C> <C> <C>
INVESTMENT INCOME
Net appreciation (depreciation)
in fair value of investments $ 788 $ (1,308) $ (883) $ (542)
Interest 194 218 210 119
Dividends 585 2,059 1,333 661
--------- --------- --------- ---------
Total investment income 1,567 969 660 238
--------- --------- --------- ---------
CONTRIBUTIONS
Employer 36,726 40,389 45,202 18,369
Participants 56,137 66,475 76,424 32,181
Rollovers 163 163 163 --
TRANSFERS (TO) FROM OTHER FUNDS 24,751 23,091 9,376 16,965
--------- --------- --------- ---------
TOTAL ADDITIONS 119,344 131,087 131,825 67,753
BENEFITS PAID 35 94 68 59
--------- --------- --------- ---------
NET INCREASE 119,309 130,993 131,757 67,694
NET ASSETS AVAILABLE FOR BENEFITS
Beginning of year -- -- -- --
--------- --------- --------- ---------
End of year $ 119,309 $ 130,993 $ 131,757 $ 67,694
========= ========= ========= =========
<CAPTION>
PARTICIPANT DIRECTED
---------------------------------------
THE CASH
THE BOND MANAGEMENT
FUND OF TRUST OF
AMERICA AMERICA TOTAL
--------- ---------- ---------
<S> <C> <C> <C>
INVESTMENT INCOME
Net appreciation (depreciation)
in fair value of investments $ (357) $ -- $ (2,302)
Interest 162 184 1,087
Dividends 377 -- 5,015
--------- --------- ---------
Total investment income 182 184 3,800
--------- --------- ---------
CONTRIBUTIONS
Employer 11,388 4,053 156,127
Participants 18,370 7,668 257,255
Rollovers 33,857 125,667 160,013
TRANSFERS (TO) FROM OTHER FUNDS 12,185 (86,368) --
--------- --------- ---------
TOTAL ADDITIONS 75,982 51,204 577,195
BENEFITS PAID -- -- 256
--------- --------- ---------
NET INCREASE 75,982 51,204 576,939
NET ASSETS AVAILABLE FOR BENEFITS
Beginning of year -- -- --
--------- --------- ---------
End of year $ 75,982 $ 51,204 $ 576,939
========= ========= =========
</TABLE>
See Notes to Financial Statements.
6
<PAGE> 36
===============================================================================
FLORES & RUCKS, INC. 401(k) SAVINGS PLAN
- -------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 1994
1. DESCRIPTION OF PLAN
The following description of the Flores & Rucks, Inc. ("Company")
401(k) 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 was established September 1, 1993. The Plan is a
defined contribution plan covering all full-time employees who have
one year of service and are age twenty one or older. It is subject to
the provisions of the Employee Retirement Income Security Act of 1974
(ERISA).
CONTRIBUTIONS. Each year, participants may contribute from a minimum
of 2% up to a maximum of 15% of pretax annual compensation, as defined
in the Plan. Participants may also contribute amounts representing
distributions from other qualified defined benefit or contribution
plans. The Company may contribute to the Plan an amount to be
determined annually by the Board of Directors (discretionary profit
sharing contribution). Under the 401(k) provisions, the Company may
also make a matching contribution not to exceed 5% of participants'
compensation.
PARTICIPANT ACCOUNTS. Each participant's account is credited with the
participant's contribution and allocations of (a) the Company's
contribution and, (b) Plan earnings. Allocations are based on
participant earnings or account balances, as defined. The benefit to
which a participant is entitled is the benefit that can be provided
from the participant's vested account.
VESTING. Participants are immediately vested in their contributions,
plus actual earnings thereon. Participants also vest in the Company's
matching and discretionary contributions portion of their accounts
plus actual earnings thereon based on a five year schedule as outlined
in the Plan's trust document. A participant is 100 percent vested
after five years of credited service.
INVESTMENT OPTIONS. Upon enrollment in the Plan, a participant may
direct employee and employer contributions in percentage increments in
any of six investment funds managed by the trustee, Capital Guardian
Trust Company.
New Perspective Fund. A fund investing in domestic and foreign
equity securities.
The Investment Company of America Fund. A fund investing in equity
securities.
Washington Mutual Investors Fund. A fund investing in equity
securities.
The Income Fund of America. A balanced fund investing in
equities, bonds and short term securities.
7
<PAGE> 37
===============================================================================
FLORES & RUCKS, INC. 401(k) SAVINGS PLAN
- -------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS, CONTINUED DECEMBER 31, 1994
The Bond Fund of America. A bond fund investing in long-term
government and corporate bonds.
The Cash Management Trust of America. A money market fund
investing in money market instruments.
PAYMENT OF BENEFITS. For termination of service due to death,
retirement or other reasons, a participant may receive the value of
the vested interest in his or her account as a lump sum distribution.
ADMINISTRATIVE EXPENSE. Costs of plan administration are paid by the
Company.
PARTICIPANT NOTES RECEIVABLE. Participants may borrow from their fund
accounts a minimum of $1,000 and to a maximum equal to the lesser of
$50,000 or 50 percent of their account balance. Loan transactions are
treated as a transfer to (from) the investment fund from (to) the
Participant Notes fund. Loan terms range from one to five years or up
to twenty-five years for the purchase of a primary residence. The
loans are secured by the balance in the participant's account and bear
interest at a rate commensurate with local prevailing rates as
determined quarterly by the Plan administrator. Interest rates range
from 7% to 9 1/2%. Principal and interest are paid ratably throuGH
monthly payroll deductions. During the year ended December 31, 1994,
there were sixteen loans made totaling $80,797, repayments were $9,210
and the ending balance was $71,587.
2. SUMMARY OF ACCOUNTING POLICIES
BASIS OF ACCOUNTING. The financial statements of the Plan are
prepared under the accrual method of accounting.
INVESTMENT VALUATION AND INCOME RECOGNITION. The Plan's investments
are stated at fair value. Shares are valued at quoted market prices
which represent the net asset value of shares held by the Plan at year
end.
Purchases and sales of securities are recorded on a trade date basis.
Interest income is recorded on the accrual basis. Dividends are
recorded on the ex-dividend date.
PAYMENT OF BENEFITS. Benefits are recorded when paid.
8
<PAGE> 38
===============================================================================
FLORES & RUCKS, INC. 401(k) SAVINGS PLAN
- -------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS, CONTINUED DECEMBER 31, 1994
3. PLAN TERMINATION
Although it has not expressed any intent to do so, the Company has the
right under the Plan to discontinue its contributions at any time and
to terminate the Plan subject to the provisions of ERISA. In the event
of Plan termination, participants will become 100% vested in their
accounts.
4. RECONCILIATION OF FINANCIAL STATEMENTS TO FORM 5500
The following is a reconciliation of net assets available for benefits
per the financial statements to the Form 5500:
<TABLE>
<CAPTION>
DECEMBER 31,
1994 1993
---------- ----------
<S> <C> <C>
Net assets available for benefits per the financial statements $1,892,556 $ 576,939
========== ==========
Net assets available for benefits per the Form 5500 $1,892,556 $ 576,939
========== ==========
</TABLE>
5. TAX STATUS
The Internal Revenue Service has determined and informed the trustee
by a letter dated January 26, 1994, that the Plan is designed in
accordance with applicable sections of the Internal Revenue Code
(IRC).
6. INVESTMENTS
The investment assets of the Plan are held by Capital Guardian Trust
Company.
9
<PAGE> 39
===============================================================================
FLORES & RUCKS, INC. 401(k) SAVINGS PLAN
- -------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS, CONTINUED DECEMBER 31, 1994
The following table presents the aggregate fair values for each of the
Plan's significant investments, all of which represent 5% or more of
the Plan's net assets.
<TABLE>
<CAPTION>
DECEMBER 31,
---------------------------------------------
1994 1993
------------------- -------------------
SHARES VALUE SHARES VALUE
------ ---------- ------ ----------
<S> <C> <C> <C> <C>
New Perspective Fund 32,727 $ 470,282 5,283 $ 79,304
The Investment Company of America 20,965 370,459 4,864 91,046
Washington Mutual Investors Fund 28,494 479,839 4,894 87,008
The Income Fund of America 14,611 191,994 3,378 48,613
The Bond Fund of America 6,586 83,575 4,447 64,263
The Cash Management Trust of
America 135,650 135,650 113,638 113,638
---------- ----------
Total shares of registered
investment companies 1,731,799 483,872
Participant loans 71,587 -
---------- ----------
$1,803,386 $ 483,372
========== ==========
</TABLE>
7. RELATED PARTY TRANSACTIONS
Certain Plan investments are shares of mutual funds managed by The
American Funds Group. The Plan Trustee is Capital Guardian Trust
Company which is also part of the American Funds Group. Therefore,
transactions with The American Funds Group mutual funds qualify as
party in interest. While no direct fees are paid to Capital Guardian
Trust Company or to The American Funds Group, certain management
expenses which are netted against interest and dividend income are
charged to the funds and allocated to all share owners.
8. SUBSEQUENT EVENTS
Effective August 1, 1995, management plans to change the contract
trustee and administrator to enable the offering of company stock as
an investment option in the Plan. The Plan will also offer a total of
17 different investment options.
10
<PAGE> 40
===============================================================================
FLORES & RUCKS, INC. 401(k) SAVINGS PLAN
- -------------------------------------------------------------------------------
SUPPLEMENTARY INFORMATION DECEMBER 31, 1994
11
<PAGE> 41
[PROVOST SALTER HARPER & ALFORD LLC LETTERHEAD]
INDEPENDENT AUDITOR'S REPORT ON THE SUPPLEMENTARY INFORMATION
To the Trustees
Flores & Rucks, Inc. 401(k) Savings Plan
Baton Rouge, Louisiana
Our report on our audits of the financial statements of Flores & Rucks, Inc.
401(k) Savings Plan appears on page 1. Our audits were conducted for the
purpose of forming an opinion on the basic financial statements taken as a
whole. The supplemental schedules of (1) assets held for investment purposes,
and (2) reportable transactions are presented for the purpose of additional
analysis and are not a required part of the basic financial statements but are
supplementary information required by the Department of Labor's Rules and
Regulations for Reporting and Disclosure under the Employee Retirement Income
Security Act of 1974. The supplemental schedules have been subjected to the
auditing procedures applied in the audits of the basic financial statements
and, in our opinion are fairly stated in all material respects in relation to
the basic financial statements taken as a whole.
PROVOST, SALTER, HARPER & ALFORD, L.L.C.
/s/ PROVOST, SALTER, HARPER & ALFORD, L.L.C.
May 2, 1997
12
<PAGE> 42
==============================================================================
FLORES & RUCKS, INC. 401(k) SAVINGS PLAN SCHEDULE 1
- ------------------------------------------------------------------------------
ASSETS HELD FOR INVESTMENT PURPOSES DECEMBER 31, 1994
<TABLE>
<CAPTION>
IDENTITY OF FAIR
PARTY INVOLVED DESCRIPTION SHARES COSTS VALUE
- ---------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Cash equivalents:
The American Funds Group The Cash management Trust of America 135,650 $ 135,650 $ 135,650
Common Investment Funds:
The American Funds Group New Perspective Fund 32,727 491,700 470,282
The American Funds Group The Investment Company of America 20,965 388,613 370,459
The American Funds Group Washington Mutual Investors Fund 28,494 497,285 479,839
The American Funds Group The Income Fund of America 14,611 202,656 191,994
The American Funds Group The Bond Fund of America 6,586 91,257 83,575
---------- ----------
$1,807,161 $1,731,799
========== ==========
</TABLE>
13
<PAGE> 43
==============================================================================
FLORES & RUCKS, INC. 401(k) SAVINGS PLAN SCHEDULE 2
- ------------------------------------------------------------------------------
REPORTABLE TRANSACTIONS DECEMBER 31, 1994
<TABLE>
<CAPTION>
NUMBER OF TOTAL TOTAL NET
------------------ PURCHASE SELLING GAINS
PURCHASES SALES PRICE PRICE (LOSS)
--------- ----- ----- ----- ------
<S> <C> <C> <C> <C> <C>
New Perspective Fund 56 $ 424,128 $ -- $
The Investment Company of America 44 329,315 -- --
Washington Mutual Investors Fund 47 449,151 -- --
The Income Fund of America 47 163,950 -- --
The Bond Fund of America 42 70,691 -- --
The Cash Management Trust of America 145 1,544,221 -- --
New Perspective Fund 10 10,968 11,164 196
The Investment Company of America 23 32,894 32,864 (30)
Washington Mutual Investors Fund 19 39,656 39,426 (230)
The Income Fund of America 7 10,415 10,122 (293)
The Bond Fund of America 22 43,903 41,715 (2,188)
The Cash Management Trust of America 63 1,522,209 1,522,209 --
</TABLE>
14
<PAGE> 44
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.
FLORES & RUCKS, INC. 401(k) SAVINGS PLAN
By: Flores & Rucks, Inc.,
Plan Administrator
/s/ Robert L. Belk June 27, 1997
- -------------------------------------------------
Robert L. Belk
Senior Vice President and Chief Financial Officer
<PAGE> 45
EXHIBIT A
CONSENT OF INDEPENDENT ACCOUNTANTS
We hereby consent to the incorporation by reference in the Registration
Statement on Form S-8 of Flores & Rucks, Inc., dated July 18, 1995, of our
report dated May 2, 1997, included in this Annual Report on Form 11-K.
/s/ Provost, Salter, Harper & Alford, L.L.C.
Baton Rouge, Louisiana
June 27, 1997
