ASRG - new SEC report
9/26/00 - Management`s Discussions: 10KSB, ASPEN GROUP
RESOURCES CORP 5 of 5
The standardized measure of discounted future net cash flows at June 30, 2000 and 1999 relating to
proved oil and gas reserves is set forth below. The assumptions used to compute the standardized
measure are those prescribed by the Financial Accounting Standards Board and as such, do not
necessarily reflect the Company's expectations of actual revenues to be derived from those reserves nor
their present worth. The limitations inherent in the reserve quantity estimation process described above
are equally applicable to the standardized measure computations since these estimates are the basis
for the valuation process.
Standardized measure of discounted future net cash flows relating to proved reserves:
At June 30, 2000
1999
--------------
--------------
Future cash inflows $ 324,553,000 $ 53,
178,000
Future production costs (76,939,000) (
17, 657,000)
Future development costs (17,650,000) (
11, 260,000)
---------------
---------------
Future net cash flows, before income tax 229,964,000 24,
261,000
Future income tax expenses (72,642,000) (
7, 278,000)
---------------
---------------
Future net cash flows 157,322,000 16,
983,000
10% discount to reflect timing of net cash flows (82,801,000) (
5, 661,000)
---------------
---------------
Standardized measure of discounted future net cash flows $ 74,521,000 $ 11,
322,000
===============
===============
ASPEN GROUP RESOURCES CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Changes in standardized measure of discounted future net cash flows relating to proved reserves:
At June 30, 2000
1999
--------------
--------------
Standardized measure, beginning of period $ 11,322,000 $ 25,
733,000
Net change in prices and production costs 43,006,000
746,000
Accretion of discount (77,140,000) 1,
197,000
Sales of oil and gas, net of production costs (2,508,000)
(118,000)
Sales and disposition of reserves in place - (
22, 795,000)
Purchase of reserves, net of future development Costs 152,455,000
-
Development costs which reduced future development costs 647,000
-
Revisions of quantity estimates 12,103,000 (
2, 705,000)
Change in timing of production and other -
-
Net changes in income taxes (65,364,000) 9,
264,000
----------------
---------------
Standardized measure, end of period $ 74,521,000 $ 11,
322,000
================
=============== 12. SUBSEQUENT EVENT
On August 7, 2000, the Company signed an agreement to acquire the oil and gas operations of Crawford
Oil Company and Leiker-Crawford Oil Company for a cash purchase price of $1,375,000. This purchase
includes wells, leases, equipment, licenses, instruments and production. The Company financed the
acquisition with credit available under its credit agreement (see Note 4).
13. EARNINGS PER SHARE
The following data show the amounts used in computing earnings (loss) per share and the effect on
income and the weighted average number of shares of dilutive potential common stock.
At June 30, 2000
1999
--------------
--------------
Net earnings (loss) $ 94,116 $ (
11, 479,086)
Effect of dilutive securities -
-
--------------
--------------
Net earnings (loss) after effect of dilutive securities $ 94,116 $ (
11, 479,086)
==============
============== Weighted average number of common shares
used in basic earnings per share 83,676,588 20,
036,818
Effect of dilutive securities Stock options and warrants 884,895
-
-------------
---------------
Weighted average number of common shares and dilutive potential commons stock used in diluted
earnings per share 84,561,483 20,
036,818
=============
=============== Options and warrants to purchase approximately 9,266,000 shares of the
Company's common stock, with exercise prices of ranging from $.25 to $3.50, were excluded from the
June 30, 2000 diluted earnings (loss) per share calculation because their effects were antidilutive.
ITEM 8. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND
FINANCIAL DISCLOSURE
There are not and have not been any disagreements between the Company and its accountants on any
matter of accounting principles or practices or financial statement disclosure.
(c) 1995-1999 Cybernet Data Systems, Inc. All Rights Reserved.
Received by Edgar Online: Sep. 26, 2000
CIK Code: 0001023947 SEC Accession Number: 0001023947-00-000006
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