Austin, TX, Aug. 13, 2014 (GLOBE NEWSWIRE) -- Texas Vanguard Oil Company has prepared its second quarter 2014 Unaudited Finanical Information ending June 30, 2014, and its Condensed Financial Statements are as follows:
TEXAS VANGUARD OIL COMPANY
Condensed Balance Sheets
| Assets | |||||||||
| June 30, | December 31, | ||||||||
| 2014 | 2013 | ||||||||
| (Unaudited) | (Audited) | ||||||||
| Current assets: | |||||||||
| Cash and cash equivalents (including certificates of deposit of $250,000 in 2014 and $1,250,000 pledged in 2013) | $ | 18,635,524 | $ | 12,212,690 | |||||
| Trade accounts receivable | 94,705 | 193,395 | |||||||
| Prepaid expense | 89,429 | 100,813 | |||||||
| Note receivable | -0- | 8,000,000 | |||||||
| Total current assets | 18,819,658 | 20,506,898 | |||||||
| Property and equipment, at cost: | |||||||||
| Oil and gas properties - successful efforts method of accounting | 3,783,536 | 3,926,210 | |||||||
| Office furniture and vehicles | 156,871 | 156,871 | |||||||
| 3,940,407 | 4,083,081 | ||||||||
| Less accumulated depreciation, depletion and amortization | (1,658,575 | ) | (1,792,771 | ) | |||||
| Total property and equipment, net | 2,281,832 | 2,290,310 | |||||||
| Other assets | 1,000 | 1,000 | |||||||
| TOTAL ASSETS | $ | 21,102,490 | $ | 22,798,208 | |||||
| Liabilities and Stockholders' Equity | |||||||||
| Current liabilities: | |||||||||
| Trade accounts payable | $ | 201,564 | $ | 477,528 | |||||
| Taxes payable | 1,520,510 | 770,943 | |||||||
| Deferred federal income tax liability | -0- | 1,757,882 | |||||||
| Asset retirement obligation, current portion | 12,750 | 6,678 | |||||||
| Notes payable | -0- | 150,000 | |||||||
| Total current liabilities | 1,734,824 | 3,163,031 | |||||||
| Asset retirement obligation, less current portion | 92,239 | 93,089 | |||||||
| Total liabilities | 1,827,063 | 3,256,120 | |||||||
| Stockholders' equity: | |||||||||
| Common stock, par value $.05; authorized 12,500,000 shares; 1,416,587 issued and outstanding in 2014 and 2013, respectively | 70,828 | 70,828 | |||||||
| Additional paid-in capital | 1,888,528 | 1,888,528 | |||||||
| Accumulated earnings | 17,316,071 | 17,582,732 | |||||||
| Total stockholders' equity | 19,275,427 | 19,542,088 | |||||||
| TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ | 21,102,490 | $ | 22,798,208 | |||||
See accompanying notes to condensed financial statements.
TEXAS VANGUARD OIL COMPANY
Condensed Statements of Earnings
(Unaudited)
| Three months ended | Six months ended | |||||||||||||||||||||||||||
| June 30, | June 30, | |||||||||||||||||||||||||||
| 2014 | 2013 | 2014 | 2013 | |||||||||||||||||||||||||
| Revenue: | ||||||||||||||||||||||||||||
| Operating revenue | $ | 222,312 | $ | 1,256,864 | $ | 442,572 | $ | 2,726,030 | ||||||||||||||||||||
| Other income | 2,974 | 13,444 | 7,159 | 26,563 | ||||||||||||||||||||||||
| Total revenue | 225,286 | 1,270,308 | 449,731 | 2,752,593 | ||||||||||||||||||||||||
| Costs and expenses: | ||||||||||||||||||||||||||||
| Production cost | 224,838 | 755,357 | 296,842 | 1,553,846 | ||||||||||||||||||||||||
| Depreciation, depletion and amortization | 52,996 | 102,359 | 105,991 | 204,719 | ||||||||||||||||||||||||
| General and administrative | 192,834 | 148,504 | 404,027 | 310,258 | ||||||||||||||||||||||||
| Plug and abandonment of oil and gas property | 30,401 | 108,710 | 46,056 | 108,710 | ||||||||||||||||||||||||
| Interest | 201 | 654 | 849 | 1,525 | ||||||||||||||||||||||||
| Doubtful account expense | -0- | 59 | -0- | 18,743 | ||||||||||||||||||||||||
| Total costs and expenses | 501,270 | 1,115,643 | 853,765 | 2,197,801 | ||||||||||||||||||||||||
| Earnings (loss) before taxes | (275,984) | 154,665 | (404,034 | ) | 554,792 | |||||||||||||||||||||||
| Federal and state taxes: | ||||||||||||||||||||||||||||
| Provision for federal income tax (benefit) | (93,835) | 50,103 | (137,372) | 183,248 | ||||||||||||||||||||||||
| Provision for state margin tax | -0- | 7,304 | -0- | 15,827 | ||||||||||||||||||||||||
| Net earnings (loss) | $ | (182,149) | $ | 97,258 | $ | (266,662) | $ | 355,717 | ||||||||||||||||||||
| Weighted average number of shares outstanding | 1,416,587 | 1,416,587 | 1,416,587 | 1,416,587 | ||||||||||||||||||||||||
| Basic earnings (loss) per share | $ | (.13) | $ | .07 | $ | (.19) | $ | .25 | ||||||||||||||||||||
| Diluted earnings (loss) per share | $ | (.13) | $ | .07 | $ | (.19) | $ | .25 | ||||||||||||||||||||
TEXAS VANGUARD OIL COMPANY
Condensed Statements of Cash Flows
(Unaudited)
| Six months ended | ||||||||
| June 30, | ||||||||
| 2014 | 2013 | |||||||
| Net cash provided by (used in) operating activities | $ | (1,315,917) | $ | 592,263 | ||||
| Cash flows used in investing activities: | ||||||||
| Additions to oil and gas properties | (111,249) | (47,450) | ||||||
| Proceeds from collection of note receivable | 8,000,000 | -0- | ||||||
| Net cash provided by (used in) investing activities | 7,888,751 | (47,450 | ) | |||||
| Net cash used in financing activities | (150,000) | --- | ||||||
| Net change in cash and cash equivalents | 6,422,834 | 544,813 | ||||||
| Cash and cash equivalents at beginning of period | 12,212,690 | 9,036,449 | ||||||
| Cash and cash equivalents at end of period | $ | 18,635,524 | $ | 9,581,262 | ||||
See accompanying notes to condensed financial statements.
TEXAS VANGUARD OIL COMPANY
Notes to Condensed Financial Statements
(Unaudited)
June 30, 2014
Note 1: Basis of Financial Statement Presentation
These unaudited condensed financial statements should be read in the context of the financial statements and notes thereto filed with the Securities and Exchange Commission in the Company's 2013 Annual Report on Form 10-K.
Note 2: Oil and Gas Properties
Texas Vanguard Oil Company (the "Company") follows the "successful efforts" method of accounting for oil and gas exploration and production operations. Accordingly, costs incurred in the acquisition and exploratory drilling of oil and gas properties are initially capitalized and either subsequently expensed if the properties are determined not to have proved reserves, or reclassified as a proven property if proved reserves are discovered. Costs of drilling development wells are capitalized. Geological, geophysical, carrying and production costs are charged to expense as incurred.
The Company performs a periodic review for impairment of proved properties. The Company determines if impairment has occurred through either adverse changes or as a result of its periodic review for impairment. Upon abandonment of properties, the reserves are deemed fully depleted and any unamortized costs are recorded in the statement of income under impairment expense. Upon the sale of oil and gas reserves in place, costs less accumulated amortization of such property are removed from the accounts and resulting gain or loss on sale is reflected in operations.
Impairment of unproved properties is assessed periodically and any impairment in value is currently charged to expense. Loss is recognized to the extent that such impairment is indicated. When an entire interest in an unproved property is sold, gain or loss is recognized, taking into consideration any recorded impairment.
Depreciation, depletion and amortization of proved oil and gas property costs, including related equipment and facilities, are provided using the units-of-production method.
Note 3: Income Taxes
The Company uses the "asset and liability method" of income tax accounting, which bases the amount of current and future taxes payable on the events recognized in the financial statements and on tax laws existing at the balance sheet date. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes enactment date.
Note 4: Statement of Cash Flows
Cash and cash equivalents as used in the Condensed Statements of Cash Flows include cash in banks and certificates of deposits owned.
Note 5: Recently Issued Accounting Standards
The Company has reviewed the updates issued by the Financial Accounting Standards Board (FASB) during the six-month period ended June 30, 2014, and determined that the updates are either not applicable to the Company or will not have a material impact upon the Company.
