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Isramco Inc – ‘10QSB’ for 6/30/97

As of: Thursday, 8/14/97 · For: 6/30/97 · Accession #: 1000096-97-570 · File #: 0-12500

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

 8/14/97  Isramco Inc                       10QSB       6/30/97    2:25K                                    Mitchell Fi… Printing/FA

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

Document/Exhibit                   Description                      Pages   Size 

 1: 10QSB       Quarterly Report -- Small Business                    13     54K 
 2: EX-27       Financial Data Schedule                                1      6K

10QSB — Quarterly Report — Small Business
Document Table of Contents

Page	(sequential)	\|	(alphabetic)	Top
			Alternative Formats (Word, et al.) Financial statements Management's Discussion and Analysis of Financial Condition and Results of Operations Management's discussion and analysis of financial statements 6-10 Other Information Reports on Form 8-K
1	1st Page - Filing Submission
2	Item 1. Financial statements
"	Item 2. Management's discussion and analysis of financial statements 6-10
8	Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations
12	Item 5. Other Information
"	Item 6. Reports on Form 8-K

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SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

 FORM 10-QSB

QUARTERLY REPORT UNDER SECTION 13 OR 15 (d) OF
 THE SECURITIES EXCHANGE ACT OF 1934

For six months ended June 30, 1997                   Commission File No.  283574

 ISRAMCO, INC.
--------------------------------------------------------------------------------
(Exact name of registrant as specified in its charter)

DELAWARE                                    13-3145265  
--------------------------------------------------------------------------------
(State or other jurisdiction of              (I.R.S. Employer I.D. No.)     
incorporation or organization)                                            

575 Madison Avenue, Suite 1006, New York, New York 10022
--------------------------------------------------------------------------------
 (Address of principal executive offices) (Zip Code)

Registrant's telephone number, including area code: 212-605-0417

NOT APPLICABLE
--------------------------------------------------------------------------------
(Former name, former address and formal fiscal year if changed
since last report)

Indicate by check mark whether the registrant (1) has filed all reports required
to be filed  by  Section  13 or 15 (d) of the  Securities  Exchange  Act of 1934
during  the  preceding  twelve  months  (or for  such  shorter  period  that the
registrant  was  required  to such  reports),  and (2) has been  subject to such
filing requirements for the past 90 days.                                       

Yes     X             No                    
-------              -------      

26,398,523 Common Shares were outstanding as of June 30, 1997.                  

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 ISRAMCO, INC.

 INDEX

                                                                        PAGE NO.
                                                                        --------

Part I.   Financial Information                                                 

Item 1.   Financial statements                                                  

Condensed consolidated balance sheets:                      

-  June 30, 1997 (unaudited)                      
            -  December 31, 1996                                         1

Condensed consolidated statements of operations:            

      -  Three months ended June 30, 1997 and 1996 (unaudited)
            -  Six months ended June 30, 1997 and 1996 (unaudited)       2

Condensed consolidated statements of cash flows:            

             -  Six months ended June 30, 1997 and 1996 (unaudited)      3

        Notes to condensed consolidated financial statements             4-5

Item 2.   Management's discussion and analysis of financial statements    6-10  

Part II.  Other information                                                     
        Signatures                                                        11

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ISRAMCO, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS 

                                                     June 30,     December 31,
              ASSETS                              1997          1996
                   ------                         ------------    ------------
                                 (Unaudited)

Current assets:                                                                 
        Cash including cash equivalents           $ 14,576,060    $ 15,999,022
Accounts receivable - oil and gas sales        198,852        
        Marketable securities, at market             7,317,055       6,477,954
        Prepaid expenses and other                     301,974         338,318
                                                  ------------    ------------

                 Total current assets               22,393,941      22,815,294

Oil and gas properties, net                           4,404,375                 
Equipment, net                                          131,203          65,172 
Covenants not to compete, net                           317,500         382,500 
Other assets                                             94,238                 
                                                  ------------    ------------

                 T O T A L                        $ 27,341,257    $ 23,262,966
                                                  ============    ============

LIABILITIES AND SHAREHOLDERS' EQUITY                          
------------------------------------                          

Current Liabilities:                                                            
        Accounts payable and accrued expenses     $    396,445    $    334,422
Current portion of long-term debt              781,200        
                                                  ------------    ------------

                 Total current liabilities           1,177,645         334,422

Long-term debt                                        3,086,834                 
                                                  ------------    ------------

                                                     4,264,479         334,422

Minority interest                                       204,511                 
                                                  ------------    ------------

                                                     4,468,990         334,422

Shareholders' equity:                                                           

Common stock, $.01 par value:                                 
authorized 75,000,000                                     
          shares: issued 26,691,198                    266,912         266,912
        Additional paid-in-capital                  25,927,635      25,927,635
         Accumulated deficit                         (3,158,382)     (3,102,105)
         Treasury stock; 292,675 shares                (163,898)       (163,898)
                                                  ------------    ------------
                                                    22,872,267      22,928,544
                                                  ------------    ------------

                 T O T A L                        $ 27,341,257    $ 23,262,966
                                                  ============    ============

See notes to financial statements.

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                                            ISRAMCO, INC. AND SUBSIDIARIES                                          
                                   CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS                                  
                                                     (Unaudited)                                                    

                                                               Three Months Ended            Six Months Ended       
                                                                    June 30,                     June 30,           
                                                         ----------------------------  ---------------------------- 
                                                              1997            1996         1997            1996     
                                                         ----------------------------  ---------------------------- 
Revenues:                                                                                                           
                                                                                                                    
         Operator fees from related party                $    108,000    $    126,000  $    216,000    $    252,252 
         Oil and gas sales                                    483,158                     1,040,227                 
         Interest income                                      255,726         262,803       540,246         570,409 
         Gain(loss) on marketable securities                 (571,770)      1,583,090      (236,244)      1,749,012 
         Office services to affiliates and other              136,467         120,094       255,731         252,470 
                                                         ------------    ------------  ------------    ------------ 
                  Total revenue                               411,581       2,091,987     1,815,960       2,824,143 
                                                         ------------    ------------  ------------    ------------ 

Expenses:                                                                                                           
         Interest expense                                     129,834           1,517       160,158           1,993 
         Depreciation,depletion and amortization              125,551           9,927       305,719          20,062 
         Lease operating expenses                             205,485                       379,056                 
         Operator costs                                       113,697         185,646       329,855         353,428 
         General and administrative - in part to                                                                    
            related parties                                   439,925         480,282       667,242         697,450 
         Research and development                                                                            (1,041)
                                                         ------------    ------------  ------------    ------------ 
                   Total expenses                           1,014,492         677,372     1,842,030       1,071,892 
                                                         ------------    ------------  ------------    ------------ 

Income (loss) before taxes and minority interest             (602,911)      1,414,615       (26,070)      1,752,251 

Provision (benefit) for income taxes                                                                                
                                                         ------------    ------------  ------------    ------------ 

Income (loss) from operations before minority interest       (602,911)      1,414,615       (26,070)      1,752,251 

Minority interest                                               3,671                       (30,207)                
                                                         ------------    ------------  ------------    ------------ 

NET INCOME (LOSS)                                        $   (599,240)   $  1,414,615  $    (56,277)   $  1,752,251 
                                                         ============    ============  ============    ============ 

Earnings (loss) per share                                $      (0.02)   $       0.05  $      --       $       0.07 
                                                         ============    ============  ============    ============ 

Weighted average number of shares                          26,398,523      26,495,009    26,398,523      26,592,562 
                                                         ============    ============  ============    ============ 

                                        See notes to financial statements.                                          

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                                           ISRAMCO, INC. AND SUBSIDIARIES                                         
                                   CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS                                
                                                     (Unaudited)                                                  

                                                                                        Six Months Ended          
                                                                                             June 30,             
                                                                                 -------------------------------- 
                                                                                      1997               1996     
                                                                                 ------------        ------------ 
Cash flow from operating activities:                                                                              
                                                                                                                  
         Net income (loss)                                                       $    (56,277)       $  1,752,251 
         Adjustment to reconcile net income (loss) to net                                                         
         cash (used in) operating activities                                                                      
         Depreciation, depletion and amortization                                     305,719              29,264 
         Minority interest                                                             30,207                     
         (Gain) Loss on marketable securities                                         236,244          (1,749,012)
         (Gain) Loss on sale of property and equipment                                 (2,984)              6,588 
         Changes in assets and liabilities:                                                                       
                  Accounts receivable                                                 (39,364)                    
                  Prepaid expenses and other current assets                           107,544            (253,489)
                  Other assets                                                        207,293            (447,500)
                  Accounts payable and accrued expenses                               (26,937)             30,075 
                  Purchase of marketable securities                                (2,070,281)         (1,211,073)
                  Proceeds from sale of marketable securities                         994,936             887,163 
                                                                                 ------------        ------------ 

                           Net cash (used in) operating activities                   (313,900)           (955,733)

Cash flows from investing activities:                                                                             
         Purchase of oil and gas properties                                        (2,774,842)             (9,202)
         Purchase of equipment                                                        (69,868)             (2,120)
         Proceeds from sale of equipment                                                5,616                 460 
         Purchase of Jay Petroleum LLP from                                        (1,035,673)                    
           affiliate, net of cash acquired                                                                        
         Other                                                                         27,360                     
                                                                                 ------------        ------------ 

                           Net cash (used in) investing activities                 (3,847,407)            (10,862)
                                                                                 ------------        ------------ 

Cash flows from financing activities:                                                                             
         Purchase of treasury stock                                                                      (163,898)
         Proceeds of borrowings, net                                                2,785,534                     
         Payment of loan cost                                                         (47,189)                    
                                                                                 ------------        ------------ 

                           Net cash provided by (used in) financing activities      2,738,345            (163,898)
                                                                                 ------------        ------------ 

NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS                               (1,422,962)         (1,130,493)

Cash and cash equivalents, beginning of period                                     15,999,022          16,506,242 
                                                                                 ------------        ------------ 

CASH AND CASH EQUIVALENTS, END OF PERIOD                                         $ 14,576,060        $ 15,375,749 
                                                                                 ============        ============ 

Supplemental disclosure of cash flow information:                                                                 
         Cash paid during the period for interest                                $    160,158        $      1,993 

                                               See notes to financial statements.                                 

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ISRAMCO, INC. AND SUBSIDIARIES

 NOTES TO CONDENSED FINANCIAL STATEMENTS
 (Unaudited)

(NOTE 1):                                                                       
---------                                                                       

     As used in  these  financial  statements,  the  term  "Company"  refers  to
Isramco, Inc. and subsidiaries.                                                 

(NOTE 2):                                                                       
---------                                                                       

     The accompanying unaudited condensed consolidated financial statements have
been prepared in accordance with generally  accepted  accounting  principles for
interim  financial  information  and  with  the  instructions  to  Form  10-QSB.
Accordingly,  they do not include all of the information and footnotes  required
by generally accepted accounting  principles for complete financial  statements.
In the  opinion  of  management,  all  adjustments  (consisting  of only  normal
recurring  adjustments)  considered  necessary for a fair presentation have been
included. Operating results for the six-month period ended June 30, 1997 are not
necessarily  indicative  of the results that may be expected for the year ending
December 31, 1997. For further information,  refer to the consolidated financial
statements  and  footnotes  thereto  incorporated  by reference in the Company's
Annual Report on Form 10-K for the year ended December 31, 1996.                

(NOTE 3)- Consolidation:                                                        
------------------------                                                        

     The consolidated  financial statements include the accounts of the Company,
its direct and indirect wholly owned subsidiaries,  Isramco Oil & Gas Ltd. ("Oil
&  Gas")  and  Isramco  Underwriters,  Ltd.,  both  Israeli  companies,  Isramco
Resources,   Inc.,  a  British  Virgin  Islands  company,   its  majority  owned
subsidiary,  Jay Petroleum,  LLC ("Jay") and an immaterial  foreign wholly owned
subsidiary.  All intercompany  balances and  transactions  have been eliminated.
Another wholly owned subsidiary of the Company,  Isramco Management (1988) Ltd.,
an Israeli company, is not included in the consolidation because the Company has
no voting  rights.  This entity  serves as the nominee for the unit holders of a
limited partnership and has no significant assets or operations.                

(NOTE 4) - Acquisition of Oil and Gas Properties:                               
-------------------------------------------------                               

     On February 5, 1997 the Company  acquired an 82.9%  membership  interest in
Jay at an aggregate  cost of $1.2 million;  $677,500 for a 50% interest from NIR
Resources,  Inc. ("NIR"),  $363,750 for a 25% interest from Stonewall Resources,
LLC,  and $132,650 as a capital  contribution  to Jay for a 7.9%  interest.  The
Company's share of profits after recovery of its investment is 70.06%.  NIR is a
wholly owned subsidiary of Naphtha Israel Petroleum Corporation Limited,  holder
of 36% of the Company's outstanding common stock.                               

(continued)                                                                     

4 

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ISRAMCO, INC. AND SUBSIDIARIES

 NOTES TO CONDENSED FINANCIAL STATEMENTS
 (Unaudited)

(NOTE 4) - Acquisition of Oil and Gas Properties:  (continued)                  
-------------------------------------------------                               

     On February  13, 1997 Jay  acquired  from  Snyder Oil  Corporation  of Fort
Worth, Texas, various operated and nonoperated interests in oil and gas wells in
Louisiana,  Texas and Wyoming for a cost of $3.1 million.  The  acquisition  was
financed  primarily  with bank  financing  obtained by Jay through a $10 million
Master Note Facility with Comerica Bank - Texas,  Houston,  Texas. Isramco, Inc.
is not a borrower or guarantor under this Master Note Facility.                 

     The  acquisitions  have been accounted for as purchases.  Accordingly,  the
consolidated  financial  statements  include  the  operations  of  the  acquired
entities from the dates of acquisition.                                         

(NOTE 5) - Income Taxes:                                                        
------------------------                                                        

     The  provision  (benefit)  for income taxes  (current or deferred)  for the
three and six month periods presented was fully offset by a decrease or increase
in the valuation allowance.                                                     

(NOTE 6) - Long-term Debt:                                                      
--------------------------                                                      

         At June 30, 1997, Jay has outstanding  indebtedness of $3,868,000 under
a bank loan facility of $10 million.  The loan bears interest at prime plus 1.5%
with monthly payments of $65,000 plus interest and matures in February 2000. The
loan is secured by oil and gas  properties and shall never exceed the "Borrowing
Base", as defined, which is subject to annual redetermination.                  

5 

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Item 2.   MANAGEMENT'S DISCUSSION AND ANALYSIS OF                               
FINANCIAL CONDITION AND RESULTS OF OPERATIONS               
---------------------------------------------               

During the six month period ended June 30, 1997 the Company  invested in certain
oil and gas  activities in the United  States  through Jay Petroleum LLC ("Jay")
and continued to participate in work programs in the Negev Med Venture,  the Yam
Ashdod Carveout and the Shederot Venture in Israel as hereinafter discussed.    

The  consolidated  financial  statements for the six month period ended June 30,
1997 include the operations of Jay from the date of acquisition.                

Liquidity and Capital Resources                                                 
-------------------------------                                                 

The  decrease  in the  Company's  consolidated  cash  and  cash  equivalents  of
$1,422,962  from December 31, 1996 to $14,576,060 at June 30, 1997 is the result
of net cash  outflows of $3,847,407  from  investing  activities,  $313,900 from
operating activities and $2,738,345 cash inflows from financing activities.  The
investing activities consist principally of approximately $1,000,000 used by the
Company to purchase its membership interest in Jay and approximately  $2,770,000
used  by Jay to  acquire  from  Snyder  Oil  Corporation  of Fort  Worth,  Texas
("Snyder")  various operated and  non-operated  interest in oil and gas wells in
Louisiana,  Texas and Wyoming.  The financing  activities relate to non-recourse
bank  financing of the Snyder  acquisition.  Isramco,  Inc. is not a borrower or
guarantor under this bank financing.                                            

In the six month  periods  ended June 30, 1997 and 1996 the Company had net cash
outflow from the purchase and sale of marketable  securities  of $1,075,345  and
$323,910,  respectively.  As of June 30,  1997,  the  Company  owned 5.5% of the
issued  shares of J.O.E.L.  -  Jerusalem  Oil  Exploration  Ltd.  ("JOEL"),  the
controlling  shareholder of Naphtha Israel Petroleum  Company Ltd.  ("Naphtha"),
Naphtha  through  a  wholly  owned  subsidiary  holds  approximately  37% of the
Company's outstanding common stock. Shares of JOEL and Naphtha are traded on the
Tel Aviv Stock Market.                                                          

Jay has  outstanding  indebtedness  of $3,868,000  under a credit  facility with
Comerica Bank - Houston,  Texas.  The credit  facility  provides for an interest
rate of prime plus 1.25% with  payments of $65,000 plus  interest  monthly.  The
loan is due on February 5, 2000.  Additional  draw downs under the Comerica Bank
Credit  Facility  require  bank  approval  and the loan is  subject to an annual
borrowing base redetermination review.                                          

The Company believes that it has sufficient funds to fulfill its present capital
requirements.                                                                   

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Oil and Gas Revenues                                                            
--------------------                                                            

                                 Three Months Ended         Six Months Ended
                              June 30, 1997              June 30, 1997
                                 -------------------------------------------

Oil Volume Sold (Barrels)                                                       

Farmers                          3,921                        8,921   
Snyder                           5,811                        9,411   
Total                            9,732                       18,332   

Gas Volume Sold (MCF)                                                           

Farmers                         67,027                      122,827   
Snyder                          96,423                      189,323   
Total                          163,450                      312,150   

Oil Sales ($)                                                                   

Farmers                         77,851                      186,851   
Snyder                         107,698                      186,698   
Total                          185,549                      373,549   

Gas Sales ($)                                                                   

Farmers                        121,236                      266,236   
Snyder                         176,443                      400,443   
Total                          297,679                      666,679   

Average Unit Price                                                              

Oil ($/Bbl) *                   $19.07                      $20.38    
Gas ($/MCF) **                  $ 1.82                      $ 2.14    

*   Bbl - Stock Market Barrel Equivalent to 42 U.S. Gallons                   
**   MCF - 1,000 Cubic Feet                                                     

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Results of Operations                                                           
---------------------                                                           

United States                                                                   
-------------                                                                   

During the second  quarter Jay  completed  the  installation  of the water flood
project in Jack County, Texas. Jay is monitoring response of the producing wells
to the water injection.  Drilling of the gas well in Garfield County,  Oklahoma,
which was originally  scheduled for the second quarter was delayed. Jay plans to
drill the well in the fourth quarter of 1997.                                   

Israel                                                                          
------                                                                          

Negev Med Venture                                                               
-----------------                                                               

During the six month period  ended June 30, 1997 the Negev Med Venture  extended
$219,976. The Company's share is 1.0043% or $2,209.                             

Yam Ashdod Venture (within the Med Ashdod License)                              
--------------------------------------------------                              

During the six month  period  ended June 30,  1997,  the work program in the Yam
Ashdod Carveout Venture consisted of searching for suitable rig for re-entry and
deepening  the Yam 2 well  and/or  another  deep well and  continue  attempts of
coordination with Ministry of Defense.  The Company as of this date has not been
successful  with its  efforts  in this  regard.  In this  period  a  survey  and
inspection of the wellhead of the Yam 2 well were carried out. The findings were
sent to an engineering company for valuation and for preparing a risk analysis. 

During the six month period ended June 30, 1997 the Yam Ashdod Carveout  Venture
expended $113,311. The Company's share is 1.0043% or $1,138.                    

Shederot Venture                                                                
----------------                                                                

During the six month  period  ended June 30,  1997,  the Company as the operator
continued the preparatory  work of the drilling  prospect,  the drilling program
(including  locating the  availability of equipment and materials in Israel) and
surveying the proposed well site.                                               

On July 24, 1997 the Company as the  Operator  signed a drilling  contract  with
Lapidoth Israel Oil Prospectors Corporation, Ltd. to drill the Gevim 1 well. The
well is planned to a depth of approximately  14,700 feet at an estimated cost of
$6.3 million  including  production tests. The spud date is planned for November
1997 with the length of  drilling  expected  to be  approximately  three to four
months.  The  participants  in the  license  have been  requested  to approve an
authorization for expenditure (AFE) for $6.3 million to drill the well by August
31, 1997. The Company's  share is 1.0043% of $63,271.  Isramco - Negev 2 Limited
Partnership  has notified  the Company  that in case there is not full  response
from all the participants  for the AFE, it will issue a sole risk  announcement,
which will enable it to enlarge  its  percentage  in order to complete  the full
100% participation in the well.                                                 

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During the six month period ended June 30, 1997, the Shederot  Venture  expended
$80,645.  The Company's share is 1.0043% or $810. The total AFEs approved by the
participants  from  inception  date until June 1997 is $441,000.  The  Company's
share is 1.0043% of $4,429.                                                     

Operator's Fees                                                                 
---------------                                                                 

In the six month  periods  ended  June 30,  1997 and 1996,  the  Company  earned
$216,000 and  $252,252,  respectively,  which were based on the minimum  monthly
compensation  for each period.  The Company believes that operator's fees during
July - December 1997 will be  approximately  $130,000 above the minimum  monthly
compensation  which at present is $36,000 per month, as a result of the spudding
of the Gevim 1 well.                                                            

Oil and Gas Revenues                                                            
--------------------                                                            

In the six month and three month periods ended June 30, 1997 the Company had oil
and gas revenues of $1,040,227 and $483,158, respectively. There were no oil and
gas revenues for the comparable period.                                         

Lease Operating Expenses                                                        
------------------------                                                        

In the six month  period  ended June 30,  1997,  the oil and gas  expenses  were
mainly in connection  with oil and gas fields in the United States,  as compared
to the same  period  in 1996 in which  all  these  expenses  were  mainly in the
various  ventures in Israel and are  included  in  depreciation,  depletion  and
amortization expenses. Oil and gas lease operating expenses in the United States
in the six and three  month  periods  ended  June 30,  1997  were  approximately
$379,000 and $205,000, respectively.                                            

Interest Income                                                                 
---------------                                                                 

Interest  income  decreased in the six month period ended June 30, 1997 compared
to  interest  income in the six month  period  June 30, 1996 mainly due to lower
average investment balances.                                                    

Loss on Marketable Securities                                                   
-----------------------------                                                   

In the six and three  month  periods  ended June 30,  1997 the  Company  had net
realized and unrealized losses of $236,244 and $571,770, respectively,  compared
to gains of $1,749,012 and  $1,583,090 in the same periods in 1996,  mainly as a
result of the change in the dollar rate  exchange to the Israeli  shekel and the
decrease  in JOEL share  price in the Tel Aviv Stock  Market.  The loss for 1997
includes an unrealized  loss of $121,709  from the Company's  investment in JOEL
(in the six month period ended June 30, 1996 - unrealized  gain of  $1,884,716).
As of August 10, 1997, that loss increased by approximately $187,000.           

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Increase  or decrease in the gains and losses  from  marketable  securities  are
dependent on the market prices in general and the  composition  of the portfolio
of the Company.                                                                 

Operator Costs                                                                  
--------------                                                                  

Operator's  costs  decreased in the six and three month  periods  ended June 30,
1997 as  compared  to the six and  three  month  periods  ended  June 30,  1996,
primarily as a result of lower  manpower costs and rent payments for the Company
offices in Israel.  Part of the  decrease  was offset by expenses  from  foreign
currency exchange and legal expenses.                                           

General and Administrative Expenses                                             
-----------------------------------                                             

General and  Administrative  expenses during the six month period ended June 30,
1997 in the aggregate were comparable to those during the six month period ended
June 30, 1996.                                                                  

General and administrative expenses for the six month period ended June 30, 1997
includes   approximately   $119,000   added  from  the  operations  of  Jay  and
approximately   $65,000  of  charges  resulting  from  non-compete   agreements.
Officers'  salaries  and office  services in New York  decreased  during the six
month  period  ended June 30, 1997 as  compared to the same period of 1996.  Tax
payments during the six month period ended June 30, 1997 were higher than in the
same period ended June 30, 1996.                                                

Minority Interest                                                               
-----------------                                                               

Minority  interest for the six month period ended June 30, 1997  represents  the
minority share (17.1%) of Jay's net income.                                     

PART II. OTHER INFORMATION

Item 5. OTHER INFORMATION                                                       
-----------------                                               

In July 1997 Haim Tsuff,  the Chairman of the Board of Isramco,  Inc.,  acquired
control of United  Kingsway  Ltd.  from Robert  Arckens.  United  Kingsway  Ltd.
controls  74% of YHK Limited  Partnership  ("YHK").  YHK owns 44.5% of Pass-port
Ltd.  Pass-port  Ltd. owns 43.4% of J.O.E.L.  - Jerusalem Oil  Exploration  Ltd.
("JOEL"). JOEL owns 9.6% of Pass-port Ltd. and 86.6% of Naphtha Israel Petroleum
Company Ltd.  ("Naphtha").  Naphtha owns 100% of Naphtha  Holdings Ltd.  Naphtha
Holdings Ltd. owns of record  approximately 37% of the outstanding  common stock
of the Company.  Naphtha  Holdings  also holds  2,500,000  Class A and 2,500,000
Class B Warrants.  The Company  holds 5.5% of the shares of JOEL. As a result of
the foregoing, Haim Tsuff may be deemed to control the Company.                 

Item 6. REPORTS ON FORM 8-K                                                     
-------------------                                             

Form 8-K for the month of May, 1997 dated May 21, 1997.               

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 ISRAMCO, INC.

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 hereunto duly authorized.                                           

               ISRAMCO, INC.

                                         ---------------------------------------
                        (Registrant)

Date:   August 14, 1997                                                         

                      By:  /s/  Haim Tsuff
                                             -----------------------------------
                     (Signature)

                      Haim Tsuff
                                     Chairman of the Board and
                                   Chief Executive Officer

                        By:  /s/  Daniel Avner
                                             -----------------------------------
                   (Signature)

                      Daniel Avner
                       President and
                                      Principal Accounting Officer

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Dates Referenced Herein and Documents Incorporated by Reference

		Referenced-On Page
This ‘10QSB’ Filing	Date	First	Last	Other Filings

	2/5/00	8
	12/31/97	6		10KSB
	8/31/97	10
	8/19/97
Filed on:	8/14/97	13
	8/10/97	11
	7/24/97	10
For Period End:	6/30/97	1	12
	5/21/97	12		8-K
	2/13/97	7
	2/5/97	6
	12/31/96	6	8	10-K
	6/30/96	2	12	10-Q, 8-K
				List all Filings

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Filing Submission 0001000096-97-000570 – Alternative Formats (Word / Rich Text, HTML, Plain Text, et al.)

Isramco Inc – ‘10QSB’ for 6/30/97

As of: Thursday, 8/14/97 · For: 6/30/97 · Accession #: 1000096-97-570 · File #: 0-12500

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Quarterly Report — Small Business — Form 10-QSBFiling Table of Contents

10QSB — Quarterly Report — Small BusinessDocument Table of Contents

Dates Referenced Herein and Documents Incorporated by Reference

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

10QSB — Quarterly Report — Small Business
Document Table of Contents