SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF
THE SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of Earliest Event Reported): February 12, 2004
KESTREL ENERGY, INC.
(Exact Name of Registrant as Specified in its Charter)
Colorado 0-9261 84-0772451
(State of Incorporation) (Commission File (IRS Employer ID
Number) Number)
1726 Cole Boulevard, Suite 210
Lakewood, Colorado 80401
(Address of Principal Executive Offices)
(303) 295-0344
(Registrant's Telephone Number,
including Area Code)
ITEM 12. RESULTS OF OPERATIONS AND FINANCIAL CONDITION
Kestrel Energy, Inc., the Registrant, issued a press release on
February 12, 2004, reporting operating results for the second fiscal quarter
ended December 31, 2003. The text of that press release is as follows:
FOR IMMEDIATE RELEASE: NEWS
February 12th, 2004 OTCBB-KEST
KESTREL ENERGY REPORTS 64% INCREASE IN SECOND QUARTER REVENUES
Kestrel Energy Inc. (OTCBB: KEST), an oil and gas exploration and production
company today announced its financial results for the second quarter of
fiscal year 2004. The Company is reporting a net loss of $54,604 for the
three-month period ended December 31, 2003, as compared to a net loss of
$203,630 during the comparable period of 2002.
The improved results are largely attributable to improved oil and gas revenues
for the three months ended December 31, 2003 of $391,938 compared to $249,659
during the same period of 2002, an increase of $142,279 or 64%. The increase in
revenues was primarily the result of higher oil and gas prices received during
the quarter and improved production from the Company's Hilight CBM project
versus the same period a year ago.
The Company's total expenses for the third quarter ended December 31, 2003
increased $40,044, or 9%, to $510,019 as compared to $469,975 a year ago. The
increase in overall expenses is primarily due to higher lease operating expenses
and higher dry hole expenses offset by lower general and administrative costs
and lower interest expenses. The higher lease operating expenses are primarily
due to higher taxes on higher revenues and a greater number of operating wells
at the Company's Hilight CBM field, located in Campbell County, Wyoming. During
the quarter the Company participated in the development of 3 additional wells at
Hilight and expects to continue development at this pace in the near future.
General and administrative costs for the three months ended December 31, 2003
decreased $43,938, or 21%, to $166,746 as compared to $210,684 for the same
period a year ago. This decrease was primarily attributable to lower office
expense, lower accounting fees and zero Nasdaq fees offset by higher insurance
costs.
Interest expense and loan fees for the three-month period ended December 31,
2003 decreased $46,737, or 72%, to $17,802 from $64,539 a year ago. The decrease
is attributable to lower average borrowings outstanding during the period.
At December 31, 2003, the Company had a working capital deficit of $151,835.
This compares to the Company's working capital deficit of $4,643 as of June 30,
2003. The increase in working capital deficit of $147,192 was primarily the
result of a decrease of $151,955 in total current assets including cash and
accounts receivable against similar current liabilities.
Barry Lasker, President and CEO said "The Company's financial position has
further improved this quarter as we continue to increase our revenues and cut
our costs. The successful development of our Hilight CBM field has continued
during the quarter and we are now beginning to develop an additional, shallower,
coal seam with excellent initial results. In addition, our recent farmout of
30,000 acres near Rock Springs, Wyoming for coal bed methane development, though
unproven, may provide a significant upside for our shareholders if the play
proves to be commercial. We currently anticipate that the first well will be
drilled during the second quarter of calendar year 2004. We look forward to
reporting our results to you next Quarter."
Headquartered in Denver, Kestrel has producing properties in Wyoming, Oklahoma,
New Mexico and Texas.
Statements made in this press release that are not historical facts may be
forward looking statements, including but not limited to statements using
words like "may", "believe", "expect", "anticipate", "should" or "will".
Actual results may differ materially from those projected in any
forward-looking statement. There are a number of important factors that could
cause actual results to differ materially from those anticipated or estimated
by any forward looking information. In addition, while the Company's current
plans are to drill a number of wells and develop the properties cited herein
at the time and in the manner described, various factors, including but not
limited to actual drilling results, equipment availability or breakage,
limited financial resources, or other problems, could change those plans. A
description of the risks and uncertainties which generally attendant to
Kestrel Energy and its industry and other factors which could affect the
Company's financial results are included in the Company's report to the
Securities and Exchange Commission on Form 10-KSB.
###
CONTACTS:
Kestrel Energy
Barry Lasker, President
303/295-0344
E-mail: mtemple@kestrelenergy.com
* * * * * *
In accordance with General Instruction B.6 of Form 8-K, the information in
this Current Report on Form 8-K is being furnished under Item 12 and shall not
be deemed "filed" for the purposes of Section 18 of the Securities Exchange Act
of 1934 ("Exchange Act") or otherwise subject to the liability of that section,
nor shall such information be deemed incorporated by reference in any filing
under the Securities Act of 1933 or the Exchange Act, regardless of the general
incorporation language of such filing, except as shall be expressly set forth by
specific reference in such filing.
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.
Date: February 12, 2004 KESTREL ENERGY, INC.
By: /S/BARRY D. LASKER
--------------------------------
Barry D. Lasker, President