-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, BQu4aQHASsZfJLq68az1Rsi4PzIjv/M5vzjio8/Vn4wzvfK5R9RQBB3ZAmMCTmyO VoLJkzLdDYB+C/cp8agv6Q== 0001007941-00-000021.txt : 20000414 0001007941-00-000021.hdr.sgml : 20000414 ACCESSION NUMBER: 0001007941-00-000021 CONFORMED SUBMISSION TYPE: 10QSB PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20000229 FILED AS OF DATE: 20000413 FILER: COMPANY DATA: COMPANY CONFORMED NAME: DOUBLE EAGLE PETROLEUM & MINING CO CENTRAL INDEX KEY: 0000029834 STANDARD INDUSTRIAL CLASSIFICATION: CRUDE PETROLEUM & NATURAL GAS [1311] IRS NUMBER: 830214692 STATE OF INCORPORATION: WY FISCAL YEAR END: 0831 FILING VALUES: FORM TYPE: 10QSB SEC ACT: SEC FILE NUMBER: 000-06529 FILM NUMBER: 599993 BUSINESS ADDRESS: STREET 1: 777 OVERLAND TRAIL STREET 2: PO BOX 766 CITY: CASPER STATE: WY ZIP: 82602 BUSINESS PHONE: 3072379330 MAIL ADDRESS: STREET 1: DOUBLE EAGLE PETROLEUM & MINING CO STREET 2: P O BOX 766 CITY: CASPER STATE: WY ZIP: 82601 10QSB 1 U.S. SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-QSB (Mark One) x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) -------- OF THE SECURITIES EXCHANGE ACT OF 1934 For Quarterly period ended Commission File February 29, 2000 Number 0-6529 TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) -------- OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to ------------------------ ------------ DOUBLE EAGLE PETROLEUM AND MINING CO. (Exact name of small business issuer as specified in its charter) WYOMING 83-0214692 (State or other jurisdiction of (I.R.S. Employer incorporation or organization) Identification No.) 777 Overland Trail, P.O. Box 766 Casper, Wyoming 82602 (Address of principal executive offices) 307-237-9330 (Issuer's telephone number) NOT APPLICABLE (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 -------- ---- Common stock, 4,797,641 shares having a par value of $.10 per share were outstanding as of April 14, 2000. Transitional Small Business Disclosure format (check one): Yes No X --------- ------ DOUBLE EAGLE PETROLEUM AND MINING COMPANY
INDEX Page PART I. FINANCIAL INFORMATION: Item 1. Financial Statements Balance Sheets as of February 29, 2000 and August 31, 1999 I. Statements of Operations for the three and six months ended February 29, 2000 and February 28, 1999 II. Statements of Cash Flows for the six months ended February 29, 2000 and February 28, 1999 III. Notes to Financial Statements IV. Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations V. PART II. OTHER INFORMATION Item 4. Submission of Matters to a Vote of Security Holders VI. Item 6. Exhibits and Report on Form 8-K VI. Signatures VII.
PART I FINANCIAL INFORMATION
I. DOUBLE EAGLE PETROLEUM AND MINING COMPANY BALANCE SHEETS FEBRUARY 29, 2000 AND AUGUST 31, 1999 February 29, August 31, 2000 1999 ASSETS (Unaudited) CURRENT ASSETS Cash and cash equivalents $ 144,507 $ 237,755 Accounts receivable 456,025 295,985 Prepaid expenses and deposits 4,684 9,369 Total Current Assets 605,216 543,109 PROPERTIES AND EQUIPMENT Undeveloped properties 739,925 721,109 Developed properties 6,155,304 5,091,135 Corporate and other 262,317 254,295 7,157,546 6,066,539 Less accumulated depreciation, depletion, and amortization (2,527,446 ) (2,322,360 ) Net Properties and Equipment 4,630,100 3,744,179 INVESTMENTS AND OTHER ASSETS 75,684 70,884 TOTAL ASSETS $ 5,311,000 $ 4,358,172 LIABILITIES CURRENT LIABILITIES Accounts payable $ 86,192 $ 225,732 Accrued production taxes 21,430 17,289 Line of credit 500,000 307,898 Long-term debt - current portion - 41,728 Total Current Liabilities 607,622 592,647 LONG-TERM DEBT - 158,773 Total Liabilities 607,622 751,420 STOCKHOLDERS' EQUITY Common stock, $.10 par value; - 10,000,000 shares, authorized; issued and outstanding 4,797,641 shares as of February 29, 2000 and 4,365,401 shares as of August 31, 1999 479,764 436,540 Capital in excess of par value 3,747,488 2,667,276 Retained earnings 476,126 502,936 Total Stockholders' Equity 4,703,378 3,606,752 TOTAL LIABILITIES AND STOCKHOLDER'S EQUITY $ 5,311,000 $ 4,358,172 See accompanying notes to financial statements.
II. DOUBLE EAGLE PETROLEUM AND MINING COMPANY STATEMENTS OF OPERATIONS (UNAUDITED) For the Three Months Ended For the Six Months Ended February 29, February 28, February 29, February 28, 2000 1999 2000 1999 REVENUES Oil and gas sales $ 405,495 $ 167,719 $ 707,514 $ 348,867 Sales of nonproducing leases - - 4,125 97,619 Other income 12,931 358 13,210 423 Total 418,426 168,077 724,849 446,909 COSTS AND EXPENSES Production costs 75,796 54,180 123,485 76,350 Production taxes 49,770 22,277 91,711 46,374 Cost of leases sold - - 1,060 - Exploration expenses 37,558 34,856 61,300 117,397 Write offs and abandonments 1,190 256 1,440 11,048 General and administrative 171,213 116,353 274,721 205,877 Depreciation and depletion 116,043 49,455 205,086 98,910 Total 451,570 277,377 758,803 555,956 (LOSS) FROM OPERATIONS (33,144) (109,300) (33,954) (109,047) OTHER INCOME (EXPENSE) Interest income 3,600 2,712 12,074 4,641 Interest expense (1,889) (1,661) (4,930) (1,661) 1,711 1,051 7,144 2,980 (LOSS) BEFORE INCOME TAXES (31,433) (108,249) (26,810) (106,067) INCOME TAX (BENEFIT) Current - - - - Deferred - - - - Total - - - - NET (LOSS) $ (31,433) $ (108,249) $ (26,810) $ (106,067) BASIC/DILUTED (LOSS) PER SHARE $ - $ (.03) $ - $ (.03) AVERAGE SHARES OUTSTANDING 4,771,150 4,253,320 4,688,143 4,092,100 DIVIDENDS PER SHARE OF COMMON STOCK $ .00 $ .00 $ .00 $ .00 See accompanying notes to financial statements.
III. DOUBLE EAGLE PETROLEUM AND MINING COMPANY STATEMENTS OF CASH FLOWS FOR THE SIX MONTHS ENDED FEBRUARY 29, 2000 AND FEBRUARY 28, 1999 2000 1999 OPERATING ACTIVITIES: Net (loss) $ (26,810) $ (106,067) Charges to income not requiring cash: Depreciation and depletion 205,086 98,910 Gain on sale of properties (3,065) - Abandoned properties 1,440 11,048 Decrease (increase) in operating assets: Accounts receivable (160,040) 11,363 Prepaid expenses and deposits (115) 20,000 Increase (decrease) in operating liabilities: Accounts payable (139,540) 10,805 Accrued production taxes 4,141 (5,527) Net cash (used in) provided by operating activities (118,903) 40,532 INVESTING ACTIVITIES: Proceeds from sale of properties 4,125 - Purchases of properties (1,093,507) (510,720) Net cash (used in) investing activities (1,089,382) (510,720) FINANCING ACTIVITIES: Proceeds from private placement 1,115,248 514,688 Issuance of common stock 8,188 62,500 Borrowings on line of credit arrangement 192,102 - Payments on long-term debt (200,501) - Net cash provided by financing activities 1,115,037 577,188 (DECREASE) INCREASE IN CASH (93,248) 107,000 CASH AND CASH EQUIVALENTS Beginning of period 237,755 97,429 End of period $ 144,507 $ 204,429 SUPPLEMENTAL DISCLOSURES OF CASH AND NON-CASH TRANSACTIONS Cash paid during the period for interest $ 4,930 $ 1,661 See accompanying notes to financial statements.
IV. DOUBLE EAGLE PETROLEUM AND MINING COMPANY NOTES TO FINANCIAL STATEMENTS 1.Summary of Significant Accounting Policies Refer to the Company's annual financial statements for the year ended August 31, 1999, for a description of the accounting policies which have been continued without change. Also, refer to the footnotes with those annual statements for additional details of the Company's financial condition, results of operations, and cash flows. The details in those notes have not changed except as a result of normal transactions in the interim. 2.Management Representation In management's opinion, all adjustments necessary for a fair presentation are reflected in the interim financial statements. Such adjustments are of a normal recurring nature. 3.Interim Results of Operations The results of operations for the six months ended February 29, 2000 are not necessarily indicative of the operating results for the full year. 4.Common Stock and Warrants During the six months ended February 29, 2000, the Company offered through private placement a maximum of 400,000 shares for $2.75 per share. All shares were sold during the period. V. DOUBLE EAGLE PETROLEUM AND MINING COMPANY ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS RESULTS OF OPERATIONS - --------------------- Year to Date Results of Operations Compared to Prior Year to Date Results - ------------------------------------------------------------------------- Oil and gas sales increased by $358,647 or 103%, as a result of a combination of an increase in production and an increase in oil and gas pricing. Sales of non- producing properties decreased by $93,494. Production costs and taxes and depreciation and depletion experienced a corresponding increase of $198,648 or 90%. Exploration costs declined by $56,097 or 52%. Current Quarter Compared to Previous Quarter - -------------------------------------------- Revenues from oil and gas sales increased by $103,476 or 34% over the previous quarter, due primarily to an increase in production. Production costs and taxes and depreciation and depletion increased by $62,936 or 35%. Shareholder related expenses were the primary cause of a 65% increase in general and administrative expenses. Current Quarter Compared to Corresponding Quarter of Prior Year - --------------------------------------------------------------- The Company experienced a net loss of $31,433 for the current quarter as compared to a net loss of $109,300 for the corresponding quarter of one year ago. Oil and gas sales increased by $237,776 or 142% over the corresponding quarter of the prior year as a result of an increase in production and an increase in oil and gas pricing. Production costs and taxes and depreciation and depletion experienced a corresponding increase of $115,697 or 92%. Financial Condition - ------------------- The Company received $1,115,000 in proceeds from the private placement of shares of the Company's stock. The primary use of these funds was the acquisition and development of oil and gas properties. The Company paid off $200,000 of long- term debt while borrowing a net $192,000 against its line of credit. Overall, the Company's working capital increased by $47,000. VI. PART II. OTHER INFORMATION ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS During the annual stockholders' meeting on January 26, 2000 the following directors were elected: Stephen H. Hollis Ken M. Daraie Thomas J. Vessels Lovelett, Hargens & Skogen, P.C. was approved as auditor for the year ending August 31, 2000, with 3,240,444 votes for, 758 votes against, and 11,198 abstaining. ITEM 6. EXHIBITS AND REPORT ON FORM 8-K No reports on Forms 8-K were filed during the period covered by this report. VII. SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized. DOUBLE EAGLE PETROLEUM AND MINING COMPANY (Registrant) /s/ Stephen H. Hollis --------------------- Stephen H. Hollis Treasurer and Principal Financial Officer Date: April 14, 2000 EX-27 2
5 6-MOS AUG-31-2000 FEB-29-2000 144,507 0 456,025 0 0 605,216 7,157,546 2,527,446 5,311,000 607,622 0 0 0 479,764 4,223,614 5,311,000 707,514 724,849 758,803 758,803 0 0 4,930 (26,810) 0 (26,810) 0 0 0 (26,810) 0 0
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