The following table sets forth the standardized measure
<br />of the Company's discounted suture net cash (sou" relating to
<br />proved oil and gas reserves as vi lone 30, 1986 and 1986:
<br /> luny' NI, 198D
<br /> Tidal Untied 71ams Canada
<br />Rnure Gi,h Inllrnv. $14.M4,4 U' $14,lifi~l iUi $ -
<br />Fulure Pmdu~lion Gsl, (3,59 i,7U.'1 13.5`1'.'Ilil -
<br />FulureDerelopn,enlCmP 119 i,2tf4 11'1 i,!ell -
<br />Fulure Income Tor Eytrn,es -
<br />Fulure Nel Ca,h Fluor, I I.U93,71'I 11,119 1,419 -
<br />I(1^L Annuul Dlsarunl sin
<br />Cn6maied Timing ui
<br />(.ash Flao', (3.1160,54_'1 I i,l lid 1,592) -
<br />-
<br />Standartl¢erl Atcasure ul
<br />Dnanlnied Fulure Nei
<br />Cash Floor: $ 8.U33, i!; > till i3, i^_i $ -
<br /> lo ne ill. 1'185
<br /> h,ldl Unnrd 51a1c, Cdnmld
<br />Fulure Cash Intluo'> 541, NS.000 %4J.145.UIIU $ -
<br />FulureProdmlluoCu~l, Ifi,354,1111U1 16,{54 AUUI -
<br />FunurDeeelupmenlCusl. 11.3n5,0007 II.SUS.UUIU -
<br />Rlmre Income Tns Ecprnse, IIII,438,000I I IU 4.i 8.000) -
<br />Fumrc Nrl Cash Fluor. !4,048.011(1 _'d t)gH,000
<br />lIl"o Annual Di>i, nlni iur
<br />E,Ilmuled Timing ul
<br />Ca,h Flrnr. 6.985,11U1h 1,ru•.5.uuul _-
<br />Slandardi~ed Alramre ul
<br />DPCOU nIed Fulure Nel
<br />La,h Flows 818.U4 1,000 Diti J)n i.U(10 S -
<br />~ Fuiure net cash flows were computed usln;, year-end
<br />~, price's and costs, anti year-end statutory income tax rates
<br />ladjusted for permanent dillerences and tax ueditsl Thal
<br />relate to existing proved oil and gas reserves in which the
<br />(.Olllpall \' has all Inleresl.
<br />The follrnving are the principal soure es of changes in
<br />the standardized measure of discounted iuulre tie! cash lows
<br />for the years ended tune 30. 1986, 1985 and 14184:
<br />rln6 rui5 1484
<br />St,mdnrdizrd Aleasurc,
<br />Regmnin); of Perod $IS.l163,I10U $31,35 t, 1'19 $H.Ii6.543
<br />E\ICn!IUnb Jnd
<br />Dlicoterie,,
<br />Nei of f:cloied CUSP lfill,'1`1? .-.:-_! i8 3'18,490
<br />kl'\'ICIOn$ lu Prrviuu,
<br />(~uanlnv E.Innale, I6 '186,'1651 1_'11.'(li .n751 (I,848,R°41
<br />Nel Change, In Price,
<br />allr{ PfOd UCllnll
<br />c~,a Iln,'?x.0461 1n1,~a7s6n sJlsa.4ls
<br />Fu rchase ul htmera 1.
<br />in Place ;6,313 1, 45!,fllll -
<br />Sale tit Mlncral>
<br />In Place - CUB,vU i) -
<br />Aicreliun nl Di>nxull 2.4'fi,710 4.18v.11 I 5,146, 7J?
<br />Change, in Dc~elupn,ent
<br />Cnpis (1111.110) 41!,SIAI 3,7!4,077
<br />Sales ui l )il and
<br />Gay Produced, net
<br />ul Vruducliun Cost, 11,863,916) lS.US'!,1441 111,'_'75,h?2i
<br />Ncl Change in
<br />Inwn,e Tate. 1,442,'44 9,'_;4.585 13.156,6'!1
<br />Sunda«I¢ed Measure,
<br />End of Period $ 8.1133,31 $IIi.II63.1IU11 $ 41, 15:4.199
<br />11. Interim Financial Information (Unauriltedj:
<br />Interim financial information for the years ended lone 30,
<br />1986 and 1986 is as follows:
<br />Ctuarlen Ended In 1986
<br />Sepiembar 3U, December 31, nlmch 31, tune ill,
<br />Kevrnues $1,510,461 $1,_'811,1?i $h83,1!x5 $ I4?8.381
<br />Lny:
<br />Reiore
<br />income
<br />Ta c
<br />Bencrrt 1173]64) Ii S, fBa„'181111 14'!1,1581 15,57'.87illtl)
<br />Nel Luss II 13,7691 (4 (1`11,LR81 C26'i,i4fl1 IS 194,?91)
<br />Nei Lus,
<br />Per
<br />Share LU3) 11.481 13141 1.891
<br />
<br />$rplember 311. cleaner, hided In Ivas
<br />December 31, March 31,
<br />lone 3U,
<br />Revenue. $3, T1_4,i!8 $l,i R4, '94 $'16_',958 $1.'_;8.633
<br />Inrume
<br />Ilu4.)
<br />Belure
<br />Income
<br />Tme, ?,I~S,i 89 SUB,q_'8 611,765 (58'11041
<br />Nel
<br />tontine
<br />flea,) 1,2 18)89 3fl9!128 14Y,765 67,2(1411'_')
<br />Nel
<br />Inr unre
<br />llo~~l
<br />Per
<br />Share .?P .U5 U6 f 017
<br />lU Dunnp the gunners ended December il, 1485 and tune 1U, 1986, the
<br />Cumpanq recorded ,rriledowns of $14.464.I1Un and $4,861,U11U lu tl~
<br />United Stale, and Auarallnn oil and po, pmperlles See Nule I.
<br />l21 Nel inum,c iur the quaver ended lone 30. 1485 was benetiied by a
<br />revs>IOn ul the ewmaierl income lay tine ui a3y„ iur the nine munlh,
<br />ended March 31, 1985 lu an elleclive Inr unID lac rase nl 3!YS, iur the vear
<br />ended lone 3U, 1985.
<br />12. AcqulsiHons:
<br />In May 1986, the Company executed a Letter of Intent with
<br />an unrelated entity to acquire a 25`;5, individual working
<br />Interest in patented and unpatented mining claims and
<br />unpatented rnillsite claims (the "Property"). In accordance
<br />with the Letter of Intent, the Company has deposited
<br />$300,000 with an esuow agent as of lone 30, 1986.
<br />Additional payments of approximately 83.9 million will be
<br />required to purchase the Property.
<br />In August 1986, [he Company and other entities (the
<br />"Lessees") executed a lease and option agreement whereby
<br />the Lessees v,'ould lease a certaut mining property (or an
<br />approximate two-year period with an option to acquire such
<br />property at the expiration of that period. The initial cost (o
<br />the Company Is approximately $140,000.
<br />
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