SEC Info  
    Home      Search      My Interests      Help      Sign In      Please Sign In

Hallador Energy Co – ‘10QSB’ for 9/30/95

As of:  Tuesday, 11/14/95   ·   For:  9/30/95   ·   Accession #:  788965-95-10   ·   File #:  0-14731

Previous ‘10QSB’:  ‘10QSB’ on 8/14/95 for 6/30/95   ·   Next:  ‘10QSB’ on 5/14/96 for 3/31/96   ·   Latest:  ‘10QSB’ on 11/14/07 for 9/30/07

  in   Show  &   Hints

  As Of                Filer                Filing    For·On·As Docs:Size

11/14/95  Hallador Energy Co                10QSB       9/30/95    2:21K

Quarterly Report — Small Business   —   Form 10-QSB
Filing Table of Contents

Document/Exhibit                   Description                      Pages   Size 

 1: 10QSB       Third Quarter Form 10-Qsb                             13     46K 
 2: EX-27       Article 5 Financial Data Schedule                      2±     8K 


10QSB   —   Third Quarter Form 10-Qsb
Document Table of Contents

Page (sequential) | (alphabetic) Top
 
11st Page   -   Filing Submission
6Consolidated Statement of Operations
7Consolidated Statement of Cash Flows
8Notes to Financial Statements
9Management's Discussion and Analysis or Plan of Operation
13Item 1. Legal Proceedings
"Item 6. Exhibits and Reports on Form 8-K
"Signature
10QSB1st Page of 13TOCTopPreviousNextBottomJust 1st
 

United States SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D. C. 20549 FORM 10-QSB [X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 1995 OR [ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission File Number 0-14731 HALLADOR PETROLEUM COMPANY (Exact name of small business issuer as specified in its charter) COLORADO 84-1014610 (State or other jurisdiction of (IRS Employer incorporation or organization) Identification No.) 1660 Lincoln St., Suite 2700, Denver, Colorado 80264 (Address of principal executive offices) (Zip Code) 303-839-5504 FAX 303-832-3013 (Issuer's telephone number, including area code) Check whether the issuer (1) filed all reports required to be filed by Section 13 or 15(d) of the Exchange Act during the past 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes [X] No [ ] As of November 13, 1995 7,661,264 shares of the issuer's common stock were outstanding. This report contains 13 pages. There are no exhibits. 1
10QSB2nd Page of 13TOC1stPreviousNextBottomJust 2nd
HALLADOR PETROLEUM COMPANY FORM 10-QSB INDEX [Download Table] Page PART I. Financial Information: No. Consolidated Balance Sheet - September 30, 1995 and December 31, 1994............................ 3 Pro Forma Condensed Consolidated Balance Sheet - September 30, 1995................................ 5 Consolidated Statement of Operations - three and nine months ended September 30, 1995 and 1994.... 6 Consolidated Statement of Cash Flows - nine months ended September 30, 1995 and 1994................ 7 Notes to Financial Statements...................... 8 Management's Discussion and Analysis or Plan of Operation........................................ 9 PART II. Other Information: Legal Proceedings.................................. 13 Exhibits and Reports on Form 8-K................... 13 Signature.......................................... 13 2
10QSB3rd Page of 13TOC1stPreviousNextBottomJust 3rd
PART I. FINANCIAL INFORMATION: HALLADOR PETROLEUM COMPANY Consolidated Balance Sheet (in thousands) ASSETS [Download Table] September 30, December 31, 1995 1994 * (unaudited) ------------- ------------ Current assets: Cash and cash equivalents $ 1,020 $ 438 Accounts receivable- Oil and gas sales 339 504 Well operations 332 251 -------- ------- Total current assets 1,691 1,193 -------- ------- Oil and gas properties (full cost accounting), at cost: Evaluated properties 39,470 39,352 Less - accumulated depreciation, depletion, amortization (31,968) (31,154) -------- -------- 7,502 8,198 -------- -------- Other assets 156 156 -------- -------- $ 9,349 $ 9,547 ======== ======== *Derived from the Form 10-KSB. See accompanying notes. 3
10QSB4th Page of 13TOC1stPreviousNextBottomJust 4th
HALLADOR PETROLEUM COMPANY Consolidated Balance Sheet (in thousands, except share data) LIABILITIES AND STOCKHOLDERS' DEFICIT [Download Table] September 30, December 31, 1995 1994* (unaudited) ------------- ------------ Current liabilities: Accounts payable and accrued liabilities $ 268 $ 262 Oil and gas sales payable 178 114 Convertible debt to related parties including accrued interest of $154 5,115 Debt with recourse only to the South Cuyama Field 561 826 ------- ------- Total current liabilities 1,007 6,317 ------- ------- Convertible debt to related parties including accrued interest of $374 5,307 ------- Debt with recourse only to the South Cuyama Field 6,362 6,497 ------- ------- Key Employee Bonus Plan 122 102 ------- ------- Other 65 65 ------- ------- Stockholders' deficit: Common stock, $.01 par value; 100,000,000 shares authorized; 7,661,264 shares issued 77 77 Preferred stock, $.10 par value; 10,000,000 shares authorized; no shares issued Additional paid-in capital 9,995 9,995 Accumulated deficit (13,586) (13,506) ------- ------- (3,514) (3,434) ------- ------- $ 9,349 $ 9,547 ======= ======= *Derived from the Form 10-KSB. See accompanying notes. 4
10QSB5th Page of 13TOC1stPreviousNextBottomJust 5th
HALLADOR PETROLEUM COMPANY Pro Forma Condensed Consolidated Balance Sheet September 30, 1995 (unaudited-in thousands, except share data) [Download Table] Current assets: Cash and cash equivalents $ 3,920 Receivables 671 -------- Total current assets 4,591 Oil and gas properties, net 7,502 Other assets 156 -------- $ 12,249 ======== Current liabilities: Payables $ 446 Debt with recourse only to the South Cuyama Field 561 -------- Total current liabilities 1,007 -------- Debt with recourse only to the S. C. Field 6,362 -------- Key Employee Bonus Plan and other 187 -------- Stockholders' equity: Common stock, $.01 par value; 100,000,000 shares authorized; 72,078,000 shares issued 721 Additional paid-in capital 17,558 Accumulated deficit (13,586) -------- 4,693 -------- $ 12,249 ======== BASIS OF PRESENTATION The pro forma balance sheet has been prepared to give effect to the proposed recapitalization discussed in the Management's Discussion and Analysis on page 9, as if it occurred on September 30, 1995. There can be no assurances that the proposed transactions will occur. 5
10QSB6th Page of 13TOC1stPreviousNextBottomJust 6th
HALLADOR PETROLEUM COMPANY Consolidated Statement of Operations (in thousands) (unaudited) [Download Table] Nine months ended Three months ended September 30, September 30, 1995 1994 1995 1994 -------- -------- -------- ------- Revenue: Oil $ 2,717 $ 2,483 $ 843 $ 908 Gas 368 746 88 187 NGLs 363 346 105 106 Interest and other 33 16 15 7 ------- ------- ------- ------- 3,481 3,591 1,051 1,208 ------- ------- ------- ------- Costs and expenses: Lease operating 2,105 2,011 599 683 Depreciation, depletion and amortization 460 504 139 172 General and administrative 285 367 96 132 Interest 711 754 240 252 ------- ------- ------- ------- 3,561 3,636 1,074 1,239 ------- ------- ------- ------- Net loss $ (80) $ (45) $ (23) $ (31) ======= ======= ======= ======= Per share amounts are not meaningful Weighted average shares outstanding 7,661 6,733 7,661 6,733 ======= ======= ======= ======= See accompanying notes. 6
10QSB7th Page of 13TOC1stPreviousNextBottomJust 7th
HALLADOR PETROLEUM COMPANY Consolidated Statement of Cash Flows (in thousands) (unaudited) [Download Table] Nine months ended September 30, 1995 1994 --------- --------- Cash flows from operating activities $ 746 $ 554 ------- ------- Cash flows from investing activities: Proceeds from property sales 354 Additions to oil and gas properties (118) (105) ------- ------- Net cash provided (used in) investing activities 236 (105) ------- ------- Cash flows from financing activities: Repayments of debt (400) (446) ------- ------- Net increase in cash and cash equivalents 582 3 Cash and cash equivalents, beginning of period 438 369 ------- ------- Cash and cash equivalents, end of period $ 1,020 $ 372 ======= ======= See accompanying notes. 7
10QSB8th Page of 13TOC1stPreviousNextBottomJust 8th
HALLADOR PETROLEUM COMPANY NOTES TO FINANCIAL STATEMENTS (unaudited) 1. The interim financial data is unaudited; however, in the opinion of management, the interim data includes all adjustments, consisting only of normal recurring adjustments necessary for a fair statement of the results for the interim periods. The financial statements included herein have been prepared by the Company pursuant to the rules and regulations of the Securities and Exchange Commission. Certain information and footnote disclosures normally included in financial statements prepared in accordance with generally accepted accounting principals have been condensed or omitted pursuant to such rules and regulations, although the Company believes that the disclosures included herein are adequate to make the information presented not misleading. The organization and business of the Company, accounting policies followed by the Company and other information are contained in the notes to the Company's financial statements filed as part of the Company's December 31, 1994 Form 10-KSB. This quarterly report should be read in conjunction with such annual report. 2. As previously reported in 1992, the Company was named a defendant in an action styled Kenneth Eugene Hahn, et al. v. Love Process Engineering, Inc., et al (Case Number SM074020) filed in the Santa Barbara Superior Court, North County Santa Maria Branch, Santa Maria, California. This matter has been settled with no material monetary affect to the Company. 8
10QSB9th Page of 13TOC1stPreviousNextBottomJust 9th
HALLADOR PETROLEUM COMPANY MANAGEMENT'S DISCUSSION AND ANALYSIS OR PLAN OF OPERATION LIQUIDITY AND CAPITAL RESOURCES During second quarter 1995, the Company reached an agreement to extend the debt with its majority shareholder, the Robert C. Hardie family, and certain other investors in the original bridge loan from December 16, 1994 to December 31, 1997. The notes, bearing 6% interest per annum, are collateralized (second to TCW, see below) by the Company's interest in its California property. The notes are convertible into company common stock at a price of $.15 per share, which approximated fair market value at the time of the agreement. Interest is payable, at the option of the Company, either in cash or common stock using a fixed price of $.15 per share. Warrants previously issued in conjunction with the notes to purchase 5,000,000 shares of common stock were extended to September 30, 1998. The exercise price of the warrants was lowered to $.20 from $.25. Approximately 35,667,000 new common shares would be issued assuming total conversion of the bridge loan plus interest through November 13, 1995. See proposed recapitalization. PROPOSED RECAPITALIZATION ------------------------- On November 2, 1995, the Company announced an agreement in principal to sell approximately $2.9 million of its common stock at ten cents per share to an investor group including Dillon, Read & Co., Inc. As part of this transaction, scheduled to close during early January 1996, current holders of the Company's convertible notes and warrants have agreed to convert their notes and cancel their warrants in the amount of approximately $5,350,000 for approximately 35,667,000 shares of common stock. At the conclusion of the transaction, the Company will increase its cash position by approximately $2.9 million and will have no notes, warrants or recourse debt outstanding. Present holders of the Company's common stock will own approximately 60% of the Company and the Dillon, Read group will own approximately 40%. The Company's float will be approximately 5%. Members of the Robert C. Hardie family of Sacramento, California will continue to own the majority of the common stock of the Company. As a result of the recapitalization, the board will be expanded to include Mr. Bryan Lawrence of Dillon, Read and Mr. Cortlandt Dietler, a private investor in Denver. 9
10QSB10th Page of 13TOC1stPreviousNextBottomJust 10th
With the additional funds from the proposed recapitalization, the Company plans to engage in the trading and acquisition of non- producing oil and gas mineral leases and fee-simple minerals in addition to its oil and gas exploration and production activities. Management plans to increase the Company's reserves and cash flows through "drill bit" carried interests as opposed to acquisitions of producing properties. Management is planning to effect a one-for-ten reverse stock split sometime during the first half of 1996. TCW DEBT -------- The South Cuyama Field (the "Field"), the Company's primary asset which accounts for over 94% of the Company's revenue and reserves, is pledged by non-recourse debt to Trust Company of the West (TCW). The Company owns 92% of Santa Barbara Partners (SBP), an Oklahoma general partnership, which in turn owns an 84% working interest (69% net revenue interest) in the Field subject to an 18% net profits interest. Eighty-five percent of SBP's cash flow from the property is used to service the TCW debt. Interest at 9% on the TCW debt is paid monthly. The other 15% of SBP's cash flow from the Field is distributed monthly to SBP's partners. PROPERTIES SOLD IN JULY In July the Company sold its interest in certain non-operated Texas properties for $354,000. Lease operating expenses (LOE) for each of the nine-month periods ended September 30, 1995 and 1994 were approximately $60,000 and $77,000, respectively. LOE for the three- month period ended September 30, 1994 was approximately $26,000. Sales data are set forth in the following tables: Nine Months Sales for Sold Properties 1995 1994 Volume Value Volume Value ---------- --------- ---------- --------- Oil - barrels 2,895 $50,000 4,819 $ 74,000 Gas - MCF 34,698 57,000 55,035 121,000 Third Quarter Sales for Sold Properties 1995 1994 Volume Value Volume Value ---------- --------- ---------- --------- Oil - barrels -- -- 1,367 $23,000 Gas - MCF -- -- 17,102 32,000 10
10QSB11th Page of 13TOC1stPreviousNextBottomJust 11th
RESULTS OF OPERATIONS YEAR-TO-DATE COMPARISON ----------------------- Revenue decreased slightly due primarily to declining gas production and prices offset by higher prices for oil and NGLs. As reported in the Company's 1994 Form 10-KSB, gas reserves were reduced by approximately 40%. Since current gas production is less than expected, during the second quarter of 1995 management decided to further reduce the gas reserves by 20%. This second reduction equates to 716 MMCF net to the Company. Average product prices and volumes are set forth in the following table: 1995 1994 Sales Volume Average Price Sales Volume Average Price ------------ ------------- ------------ ------------- Oil - barrels 169,220 $16.06 177,383 $14.00 Gas - MCF 262,155 1.40 413,469 1.80 NGLs- barrels 33,177 10.95 38,026 9.10 LOE increased due to fractionation costs of approximately $168,000 for five wells during the first half of 1995; there were no such costs in 1994. As a result of a brush fire in the third quarter of 1994, the Company incurred costs of $76,000. The Company accounts for fractionation costs similar to well workover expense as opposed to capitalizing such costs. General and administrative expenses decreased due to a reduction in compensation costs as a result of the resignation of the Company's Chief Operating Officer in 1994 and such position has since been eliminated. QUARTER-TO-DATE COMPARISON -------------------------- Revenue decreased slightly because of the July 1995 property sale and for the reasons discussed above (except oil prices remained about the same). The table below provides sales data and average prices for the two periods. 1995 1994 Sales Volume Average Price Sales Volume Average Price ------------ ------------- ------------ ------------- Oil - barrels 54,230 $15.54 58,309 $15.58 Gas - MCF 68,945 1.28 122,200 1.53 NGLs- barrels 10,897 9.65 12,768 8.27 LOE decreased because of non-recurring costs associated with the late July 1994 brush fire. 11
10QSB12th Page of 13TOC1stPreviousNextBottomJust 12th
OUTLOOK FOR REMAINDER OF 1995 FRACTIONATION PROJECT --------------------- The Company initiated a study to fractionate(frac) certain wells in the Field as reported in the 1994 Form 10-KSB. Through September 30, 1995 five wells have been fractionated. Although the results from the first frac job were encouraging; the results from the additional four frac jobs were unsuccessful. The Company continues to evaluate frac opportunities in the Field and on November 8, 1995, an additional well was fracted; the results from this latest endeavor will not be known until early December 1995. HEDGING ------- The Company continues to evaluate hedging strategies for its oil production. There are several strategies available that may be implemented when the price of oil, as reflected in the futures market, is higher. As of November 10, 1995, the Company is receiving $15.25 per barrel for its California production as compared to an average price of $15.54 during the third quarter of 1995. Currently, the Company is receiving approximately $1.40/MCF for its California gas production which is more than the average price received of $1.32 during the third quarter 1995. LIQUIDITY AND CAPITAL RESOURCES ------------------------------- Cash from operations is expected to enable the Company to meet its obligations as they become due through the next 12 months. FUTURE RESULTS OF OPERATIONS ---------------------------- Assuming stable production and prices, a small loss is expected for the fourth quarter. STATEMENTS OF FINANCIAL ACCOUNTING STANDARDS NOT YET ADOPTED ------------------------------------------------------------ In March 1995, the Financial Accounting Standards Board issued Statement of Financial Accounting Standards (SFAS) No. 121, "Accounting for the Impairment of Long-Lived Assets and for Long- Lived Assets to Be Disposed Of." The Company will have to implement SFAS No. 121 by the quarterly period ending March 31, 1996. The provisions will require the Company to review long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. If it is determined that an impairment loss has occurred based on expected future cash flows, then the loss should be recognized in the income statement and certain disclosures regarding the impairment should be made in the financial statements. Because the Company uses the full cost method of accounting, the provisions of SFAS No. 121 are not expected to apply. 12
10QSBLast Page of 13TOC1stPreviousNextBottomJust 13th
PART II. OTHER INFORMATION ITEM 1. LEGAL PROCEEDINGS As previously reported in 1992, the Company was named a defendant in an action styled KENNETH EUGENE HAHN, ET AL. V. LOVE PROCESS ENGINEERING, INC., ET AL (CASE NUMBER SM074020) filed in the Santa Barbara Superior Court, North County Santa Maria Branch, Santa Maria, California. This matter has been settled with no material monetary affect to the Company. ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K (a) Exhibits No reports on Form 8-K were filed by the Company during the quarter ended September 30, 1995. SIGNATURE In accordance with the requirements of the Exchange Act, the registrant caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. HALLADOR PETROLEUM COMPANY Date: November 13, 1995 By: /s/ VICTOR P. STABIO Victor P. Stabio Chief Executive Officer and Chief Financial Officer Signing on behalf of the registrant and as principal financial and accounting officer.

Dates Referenced Herein   and   Documents Incorporated by Reference

Referenced-On Page
This ‘10QSB’ Filing    Date First  Last      Other Filings
9/30/98910QSB,  10QSB/A
12/31/97910KSB40,  NT 10-K
3/31/961210QSB
Filed on:11/14/95
11/13/95913
11/10/9512
11/8/9512
11/2/959
For Period End:9/30/95113
12/31/9428
12/16/949
9/30/94210
 List all Filings 
Top
Filing Submission 0000788965-95-000010   –   Alternative Formats (Word / Rich Text, HTML, Plain Text, et al.)

Copyright © 2018 Fran Finnegan & Company.  All Rights Reserved.
AboutPrivacyRedactionsHelp — Sat., Nov. 17, 1:43:39.0am ET