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Texas Vanguard Oil Company releases 2nd Quarter 2014 Unaudited Interim Financial Statements

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.

Source:Texas Vanguard Oil Company