SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K/A
CURRENT REPORT
PURSUANT TO
SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported) July 28, 2003
ASSURE ENERGY, INC.
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(Exact name of registrant as specified in its charter)
Delaware 333-61714 13-4125563
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(State or other jurisdiction (Commission File Number) (IRS Employer
of incorporation or organization) Identification No.)
2750-140 4th Avenue, S.W., Calgary, Alberta T2P 3N3
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(Address of principal executive offices) (Zip Code)
(403) 266-2787
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(Registrant's Telephone Number, Including Area Code)
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(Former Name, Former Address, and Former Fiscal Year, if Changed Since
Last Report.)
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ITEM 7. FINANCIAL STATEMENTS AND EXHIBITS.
(b) Pro Forma Financial Information.
(c) Exhibits:
2.1 Share Purchase Agreement dated March 6, 2003 by and among
Assure Energy, Inc., and Al J. Kroontje, Trevor G. Penford,
Karen Brawley-Hogg, Donald J. Brown, Troon Investments, Ltd.,
and Quarry Oil & Gas, Ltd. (1)
2.2 Amending Agreement dated March 26, 2003 to March 6, 2003 Share
Purchase Agreement. (1)
2.3 Amending Agreement No. 2 dated April 11, 2003 to March 6, 2003
Share Purchase Agreement. (1)
(1) Previously filed with Registrant's Form 8K dated July 28, 2003 as
filed with the Securities and Exchange Commission on August 11, 2003.
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SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this Report to be signed on its behalf by the
undersigned hereunto duly authorized.
ASSURE ENERGY, INC.
Dated: October 10, 2003 By: /s/ Harvey Lalach
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Harvey Lalach, President
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ITEM 7(b). PRO FORMA FINANCIAL STATEMENTS (UNAUDITED)
INDEX TO CONSOLIDATED FINANCIAL STATEMENTS
ASSURE ENERGY, INC.
PAGE
----
Introduction - June 30, 2003 Pro Forma Financial Statements ............................ 5
Condensed Consolidated Balance Sheet (Unaudited) as at June 30, 2003 ................... 6
Condensed Consolidated Statement of Operations (Unaudited) for the six months
ended June 30, 2003 .................................................................. 7
Condensed Consolidated Statement of Operations (Unaudited) for the year ended
December 31, 2002 .................................................................... 8
Notes to Condensed Consolidated Financial Statements (Unaudited) as at June 30, 2003 ... 9
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Assure Energy, Inc. And Subsidiaries
Pro Forma Financial Statements
June 30, 2003
The following unaudited pro forma condensed consolidated balance sheet and
results of operations relate to the purchase of Quarry Oil & Gas, Ltd by Assure
Energy, Inc. The pro forma financial information for both Assure Energy, Inc and
Quarry Oil & Gas Ltd is as of and for the six months ended June 30, 2003 and
assumes the acquisition had occurred as of January 1, 2003, giving effect to any
purchase accounting adjustments. In addition, condensed consolidated results of
operations for the year ended December 31, 2002 assuming the acquisition
occurred at January 1 2002, giving effect to any purchase accounting adjustments
is also included.
Assure acquired a total of 6,750,000 shares of Quarry Oil & Gas Ltd. pursuant to
an agreement dated March 6, 2003. These shares together with 169,900 shares
previously purchased by Assure represent approximately 48.5% of the outstanding
common stock of Quarry. The aggregate purchase price for the 6,750,000 Quarry
shares was approximately $6,400,000 which was paid in cash.
The pro forma information is for informational purposes only and may not
necessarily reflect the results of operations had Quarry been operated as part
of the Company since January 1, 2003.
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ASSURE ENERGY, INC. AND SUBSIDIARIES
PRO FORMA CONDENSED CONSOLIDATED BALANCE SHEET
JUNE 30, 2003
(UNAUDITED)
Assure Quarry
Energy, Inc. Oil & Gas Ltd Adjustments Pro Forma
----------------- --------------------- ------------------ ---------------
ASSETS
Total current assets $ 9,827,079 $ 942,040 $ (6,434,107)(2) $ 4,335,012
Restricted cash 64,267 - - 64,267
Marketable securities - available for sale 138,108 - (138,108)(2) -
Investment - 253,482 253,482
Note receivable - 742,700 (742,700)(1) -
Property and equipment, net 4,951,951 13,999,083 (274,564)(1) 22,113,948
3,551,661)(2)
(114,183)(4)
----------------- --------------------- --------------- ---------------
$ 14,981,405 $ 15,937,305 $ (4,152,001) $ 26,766,709
================= ===================== =============== ===============
LIABILITIES AND STOCKHOLDERS' EQUITY
Total current liabilities $ 979,463 $ 8,193,599 $ - $ 9,173,062
Deferred income tax payable 69,611 2,346,405 - 2,416,016
Long term debt 5,191,139 - - 5,191,139
Obligation for site restoration 83,580 133,641 - 217,221
----------------- --------------------- --------------- ---------------
6,323,793 10,673,645 - 16,997,438
----------------- --------------------- --------------- ---------------
Minority interest - - 2,186,894(3) 2,810,921
624,027(5)
Stockholders' Equity
Preferrd stock; 4,977,250 shares authorized Series A;
stated value $100, 5% cumulative dividend,
17,500 shares authorized, issued and outstanding 1,750,000 - - 1,750,000
Series B; stated value $100, 5% cumulative dividend,
5,250 shares authorized, issued and outstanding 525,000 - 525,000
Common stock: $0.001 par value, 100,000,000
shares authorized, 16,433,000 shares issued
and outstanding 16,433 1,374,415 (1,374,415)(2) 16,433
Additional paid in capital 6,635,292 - 6,635,292
Accumulated other comprehensive income 1,506,744 2,241,260 1,846 (2) 3,749,850
Retained earnings (deficit) (1,775,857) 1,647,985 (1,017,264)(1) (5,718,225)
(1,647,985)(2)
(2,186,894)(3)
(738,210)
----------------- --------------------- --------------- ---------------
Total Stockholders' Equity 8,657,612 5,263,660 (6,338,895) 6,958,350
----------------- --------------------- --------------- ---------------
$ 14,981,405 $ 15,937,305 $ (4,152,001) $ 26,766,709
================= ===================== =============== ===============
See accompanying notes to consolidated financial statements.
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ASSURE ENERGY, INC. AND SUBSIDIARIES
PRO FORMA CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS
SIX MONTHS ENDED JUNE 30, 2003
(UNAUDITED)
Assure Quarry
Energy, Inc. Oil & Gas Ltd Adjustments Pro Forma
------------------- -------------------- --------------- ---------------
Total revenue $ 1,958,371 $ 4,950,843 $ - $ 6,909,214
Royalties expense 400,996 953,871 - 1,354,867
------------------- -------------------- --------------- ---------------
Net oil and gas revenue 1,557,375 3,996,972 - 5,554,347
Expenses:
Production 377,010 1,291,675 - 1,668,685
Depreciation, depletion and site restoration 1,087,124 1,000,684 114,183 (4) 2,201,991
Interest 393,791 172,436 - 566,227
General and administrative 559,667 251,807 811,474
Unrealized gain on commodity trading - (504,658) - (504,658)
------------------- -------------------- --------------- ---------------
Total expenses 2,417,592 2,211,944 114,183 4,743,719
------------------- -------------------- --------------- ---------------
Income (loss) before provision for income taxes (860,217) 1,785,028 (114,183) 810,628
and minority interest
Provision for income taxes 54,488 573,325 - 627,813
Minority interest - - 624,027 (5) 565,223
------------------- -------------------- --------------- ---------------
Net income (loss) $ (914,705) $ 1,211,703 $ (733,210) $ (441,212)
=================== ==================== =============== ===============
Basic and diluted net loss per common share $ (0.03)
===============
Basic weighted average shares outstanding 16,096,983
===============
See accompanying notes to consolidated financial statements.
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ASSURE ENERGY, INC. AND SUBSIDIARIES
PRO FORMA CONSOLIDATED STATEMENT OF OPERATIONS
(UNAUDITED)
Year Ended Year Ended
December 31, 2002 September 30, 2002
Assure Quarry
Energy, Inc. Oil & Gas Ltd Adjustments Pro Forma
----------------- --------------------- ------------------ ---------------
Total revenue $ 1,136,896 $ 4,260,020 $ - $ 5,396,916
Royalties expense 174,693 617,871 - 792,564
----------------- --------------------- ---------------- ---------------
Net oil and gas revenue 962,203 3,642,149 - 4,604,352
Expenses:
Production 299,622 1,466,071 - 1,765,693
Depreciation, depletion and site restoration 724,247 642,002 228,367(1) 1,594,616
Interest 24,178 182,532 - 206,710
General and administrative 677,932 319,664 997,596
Unrealized loss on commodity trading - 329,218 - 329,218
----------------- --------------------- ---------------- ---------------
Total expenses 1,725,979 2,939,487 228,367 4,893,833
----------------- --------------------- ---------------- ---------------
Income (loss) before provision for income taxes (763,776) 702,662 (228,367) (289,481)
and minority interest
Provision for income taxes 28,386 232,627 - 261,013
Minority interest - - 124,459(2) 124,459
----------------- --------------------- ---------------- ---------------
Net income (loss) $ (792,162) $ 470,035 $ (352,826) $ (674,953)
================= ===================== ================ ===============
Basic and diluted net loss per common share $ (0.02)
===============
Basic weighted average shares outstanding 27,924,740
===============
See accompanying notes to consolidated financial statements.
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Assure Energy, Inc. And Subsidiaries
Notes To Pro Forma Condensed Consolidated Financial Statements
June 30, 2003
(Unaudited)
Note 1 - The pro forma adjustments to the condensed consolidated balance sheet
and results of operations as of and for the six months ended June 30,
2003, are as follows:
(1) To record spin off of selected Quarry Assets as a dividend
prior to the acquisition.
(2) To record purchase of Quarry.
(3) To record initial minority interest at June 30, 2003.
(4) To record additional depletion based upon the purchase price.
(5) To record minority interest.
Note 2 - The pro forma adjustments to the condensed consolidated results of
operations for the year ended December 31, 2002, are as follows
(1) To record additional depletion based upon purchase price.
(2) To record minority interest for the year ended December 31,
2002.
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