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): November 17, 2003
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 November
17, 2003, reporting operating results for the first fiscal quarter ended
September 30, 2003. The text of that press release is as follows:
FOR IMMEDIATE RELEASE: NEWS
November 17th, 2003 OTCBB-KEST
KESTREL ENERGY REPORTS 38% INCREASE IN FIRST QUARTER REVENUES
Kestrel Energy Inc. (OTCBB: KEST), an oil and gas exploration and
production company today announced its financial results for the first
quarter of fiscal year 2004.
The Company is pleased to report that its oil and gas revenues for the three
months ended September 30, 2003 were $347,510 compared to $252,331 during the
same period of 2002, an increase of $95,179 or 38%. The increase in revenues
was primarily the result of higher oil and gas prices received during the
quarter versus the same period a year ago.
The Company's total expenses for the third quarter ended September 30, 2003
increased $21,315, or 18%, to $436,862 as compared to $415,547 a year ago. The
increase in overall expenses is primarily due to slightly higher lease
operating expenses and higher interest expenses offset by lower general and
administrative costs. The higher lease operating expenses is primarily due to
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 4 additional wells at Hilight and has
continued the development with 3 additional wells, so far this current
quarter.
The Company will report a net loss of $66,798 for the three-month period ended
September 30, 2003, as compared to a net loss of $210,162 during the
comparable period of 2002. The decreased loss in the current period is a
result of higher oil and gas sales versus a year ago along with no loss on
sale of available for sale securities for the three months ended September 30,
2003.
General and administrative costs for the three months ended September 30, 2003
decreased $24,205, or 10%, to $210,384 as compared to $234,589 for the same
period a year ago. These decreases were primarily attributable to a decrease
in salaries and office expenses.
Interest expense and loan fees for the three-month period ended September 30,
2003 increased $2,460, or 16%, to $17,734 from $15,274 a year ago. The
increase is attributable to higher average borrowings outstanding during the
period
At September 30, 2003, the Company had a working capital deficit of $83,382.
This compares to the Company's working capital deficit of $4,643 as of June
30, 2003. The increase in working capital deficit of $78,739 was primarily the
result of a decrease of $189,330 in total current assets including cash and
accounts receivable offset by a decrease in trade accounts payable of
$116,213.
Barry Lasker, President and CEO said "The Company's financial position has
continued to improve this quarter as we continue to increase our revenues. The
activity at our Hilight CBM play continues at a brisk rate and we presently
expect that, once dewatering of these new wells has occurred, there will be
further improvement in our production and revenues. 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. 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 additional wells and further
develop some of
its existing properties, 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 are 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 for the year ended June
30, 2003.
###
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: November 18, 2003 KESTREL ENERGY, INC.
By: /s/BARRY D. LASKER
--------------------------------
Barry D. Lasker, President