THREE-MONTH PERIOD ENDED JUNE 30, 2003 COMPARED TO THREE-MONTH PERIOD ENDED JUNE
30, 2002
The Company's net losses during the three-month period ended June 30, 2003 were approximately ($390,989) compared to a net loss of approximately ($32,848) during the three-month period ended June 30, 2002 (an increase of $358,141). During the three-month periods ended June 30, 2003 and 2002, the Company recorded $-0- in revenue.
During the three-month period ended June 30, 2003, the Company recorded operating expenses of approximately $390,989 compared to $32,848 of operating expenses recorded in the same period for 2002.
As of the nine-month period ended June 30, 2003, the Company's current assets were $278,666 and its current liabilities were $1,312,171, resulting in a working capital deficit of $1,033,505.
Stockholders' deficit increased from ($107,336) for fiscal year ended September 30, 2002 to ($508,602) for the nine-month period ended June 30, 2003.
For the nine-month period ended June 30, 2003, net cash used in operating activities was ($465,709) compared to net cash used in operating activities of ($68,255) for the period November 15, 2001 (inception) ended June 30, 2002
As of the date of this Quarterly Report, management of the Company believes that an estimated $2,000,000 to $5,000,000 is required over the next two years for payment of expenses associated with the ongoing oil and gas exploration, development and production operations of the Company. Management believes that the Company can satisfy its cash requirements for approximately the next six months based
ICI resigned its tenure as management consultant to the Company, effective August 8, 2003. In accordance with the terms of a certain memorandum
of agreement dated August 8, 2003, the Consulting Agreement has been terminated. Therefore, effective August 8, 2003, ICI no longer performs managerial, administrative or consulting services to the Company.
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