|
|||||||
EnerNorth
Industries Inc.
|
|||||||
Consolidated
Balance Sheets
|
|||||||
(Expressed
in Canadian dollars)
|
|||||||
|
December
31, 2005
|
June
30, 2005
|
|||||
|
(unaudited)
|
(audited
|
)
|
||||
|
|||||||
ASSETS
|
|||||||
Current
|
|||||||
Cash
and cash equivalents
|
$
|
1,994,932
|
$
|
5,286,315
|
|||
Marketable
securities (Market value $4,175,955,
|
|||||||
June
30, 2005 - $2,600,725)
|
2,962,602
|
2,394,138
|
|||||
Receivables
|
1,638,969
|
677,704
|
|||||
Total
current assets
|
6,596,503
|
8,358,157
|
|||||
Oil
and gas interests (net of accumulated
|
|||||||
depletion)
|
5,871,961
|
4,068,549
|
|||||
Investment
(Note 5)
|
3,069,872
|
3,281,950
|
|||||
$
|
15,538,336
|
$
|
15,708,656
|
||||
LIABILITIES
AND SHAREHOLDERS' EQUITY
|
|||||||
Current
|
|||||||
Accounts
payable and accrued liabilities
|
587,915
|
465,365
|
|||||
Due
to shareholder
|
18,750
|
37,500
|
|||||
Oakwell
claim (Note 8)
|
7,785,579
|
7,956,349
|
|||||
Total
current liabilities
|
8,392,244
|
8,459,214
|
|||||
Site
Restoration
|
229,701
|
173,204
|
|||||
Total
liabilities
|
8,621,945
|
8,632,418
|
|||||
Shareholders'
equity
|
|||||||
Capital
stock (Note 6)
|
43,339,132
|
43,339,132
|
|||||
Contributed
surplus (Note 6)
|
152,845
|
149,109
|
|||||
Deficit
|
(36,575,586
|
)
|
(36,412,003
|
)
|
|||
Total
shareholders' equity
|
$
|
6,916,391
|
$
|
7,076,238
|
|||
$
|
15,538,336
|
$
|
15,708,656
|
||||
The
accompanying notes are an integral part of these financial
statements
|
|
|||||||||||||
EnerNorth
Industries Inc.
|
|||||||||||||
Consolidated
Statements of Operations and Deficit
|
|||||||||||||
(Unaudited)
|
|||||||||||||
(Expressed
in Canadian dollars)
|
|||||||||||||
|
For
the six months
|
For
the three months
|
|||||||||||
|
ended
December 31,
|
ended
December 31,
|
|||||||||||
2005
|
2004*
|
2005
|
2004*
|
||||||||||
|
|||||||||||||
Revenue
|
|||||||||||||
Oil
and gas revenue
|
$
|
705,112
|
$
|
482,109
|
$
|
379,865
|
$
|
261,352
|
|||||
Less:
royalties
|
91,916
|
91,944
|
53,751
|
34,597
|
|||||||||
613,196
|
390,165
|
326,114
|
226,755
|
||||||||||
Expenses
|
|||||||||||||
Operating
and transportation
|
197,681
|
266,494
|
97,248
|
187,658
|
|||||||||
Depletion
and accretion
|
390,480
|
361,613
|
204,062
|
218,029
|
|||||||||
Administrative
expenses
|
736,997
|
1,123,974
|
311,540
|
527,522
|
|||||||||
Interest
|
1,267
|
1,183
|
646
|
933
|
|||||||||
1,326,425
|
1,753,264
|
613,496
|
934,142
|
||||||||||
Loss
before the following
|
(713,229
|
)
|
(1,363,099
|
)
|
(287,382
|
)
|
(707,387
|
)
|
|||||
Foreign
exchange gain (loss)
|
152,440
|
503,831
|
(96,311
|
)
|
65,066
|
||||||||
Oakwell
claim (Note 8)
|
(197,961
|
)
|
-
|
(99,388
|
)
|
97,642
|
|||||||
Interest
income
|
203,383
|
164,849
|
97,534
|
80,817
|
|||||||||
Cash
distributions from marketable securities
|
109,647
|
-
|
59,463
|
-
|
|||||||||
Other
income
|
-
|
-
|
-
|
(16,822
|
)
|
||||||||
Gain
on sale of marketable securities
|
282,137
|
9,775
|
167,110
|
9,775
|
|||||||||
Net
loss from continuing operations
|
(163,583
|
)
|
(684,644
|
)
|
(158,974
|
)
|
(470,909
|
)
|
|||||
Net
income (loss) from discontinued
|
|||||||||||||
operations
(Notes 4 and 7)
|
-
|
224,988
|
-
|
(77,945
|
)
|
||||||||
Net
loss
|
(163,583
|
)
|
(459,656
|
)
|
(158,974
|
)
|
(548,854
|
)
|
|||||
Deficit,
beginning of period
|
(36,412,003
|
)
|
(36,249,254
|
)
|
(36,416,612
|
)
|
(36,160,056
|
)
|
|||||
Deficit,
end of period
|
($36,575,586
|
)
|
($36,708,910
|
)
|
($36,575,586
|
)
|
($36,708,910
|
)
|
|||||
Net
loss per common share
|
($0.04
|
)
|
($0.11
|
)
|
($0.04
|
)
|
($0.14
|
)
|
|||||
Net
loss from continuing operations per
|
|||||||||||||
common
share
|
($0.04
|
)
|
($0.17
|
)
|
($0.04
|
)
|
($0.12
|
)
|
|||||
Weighted
average common shares
|
|||||||||||||
outstanding
(thousands)
|
4,059
|
4,059
|
4,059
|
4,059
|
|||||||||
Fully
diluted net income per common share
|
antidilutive
|
antidilutive
|
antidilutive
|
antidilutive
|
|||||||||
*Comparative
figures have been reclassified to conform to the current periods
financial
statement presentation
(See Notes 4 and 7).
|
|||||||||||||
|
|||||||||||||
The
accompanying notes are an integral part of these financial
statements
|
|
|||||||||||||
EnerNorth
Industries Inc.
|
|||||||||||||
Consolidated
Statements of Cash Flows
|
|||||||||||||
(Unaudited)
|
|||||||||||||
(Expressed in Canadian dollars) | |||||||||||||
For
the six months
|
For
the three months
|
||||||||||||
ended
December 31,
|
ended
December 31,
|
||||||||||||
2005 | 2004* | 2005 | 2004* | ||||||||||
|
|||||||||||||
Cash
provided by (used in)
|
|||||||||||||
Operating
activities
|
|||||||||||||
Net
loss from continuing operations
|
($163,583
|
)
|
($459,656
|
)
|
($158,974
|
)
|
($548,854
|
)
|
|||||
Adjustments
to reconcile net income to
|
|||||||||||||
net
cash provided by operating activities
|
|||||||||||||
Depletion and accretion
|
390,480
|
361,613
|
204,062
|
218,029
|
|||||||||
Oakwell claim
|
(170,770
|
)
|
-
|
134,120
|
341,123
|
||||||||
Stock option benefit
|
3,736
|
-
|
-
|
-
|
|||||||||
Unrealized foreign exchange (gain) loss
|
212,078
|
(503,831
|
)
|
59,241
|
(605,835
|
)
|
|||||||
Gain on sale of marketable securities
|
(282,137
|
)
|
(9,775
|
)
|
(167,110
|
)
|
(9,775
|
)
|
|||||
(10,196
|
)
|
(611,649
|
)
|
71,339
|
(605,312
|
)
|
|||||||
Net
change in non-cash working capital
|
|||||||||||||
Receivables
|
(961,265
|
)
|
891,709
|
(423,219
|
)
|
1,152,633
|
|||||||
Accounts payable and accrued liabilities
|
122,550
|
253,594
|
(483,627
|
)
|
296,306
|
||||||||
Cash
provided (used) by operating activities
|
|||||||||||||
from continuing operations
|
(848,911
|
)
|
533,654
|
(835,507
|
)
|
843,627
|
|||||||
Cash
provided (used) by operating activities
|
|||||||||||||
of discontinued operations
|
-
|
1,431,490
|
-
|
(632,006
|
)
|
||||||||
(848,911
|
)
|
1,965,144
|
(835,507
|
)
|
211,621
|
||||||||
Financing
activities
|
|||||||||||||
Repayment
to shareholders
|
(18,750
|
)
|
-
|
(18,750
|
)
|
-
|
|||||||
Financing
activities of discontinued operations
|
-
|
(1,401,778
|
)
|
-
|
(380,059
|
)
|
|||||||
(18,750
|
)
|
(1,401,778
|
)
|
(18,750
|
)
|
(380,059
|
)
|
||||||
Investing
activities
|
|||||||||||||
Oil
and gas interests
|
(2,137,395
|
)
|
(476,705
|
)
|
(948,194
|
)
|
(315,959
|
)
|
|||||
Purchase
of marketable securities (net)
|
(286,327
|
)
|
11,375
|
(516,519
|
)
|
11,375
|
|||||||
Investing
activities of discontinued operations
|
-
|
(291,450
|
)
|
-
|
137,705
|
||||||||
(2,423,722
|
)
|
(756,780
|
)
|
(1,464,713
|
)
|
(166,879
|
)
|
||||||
Decrease
in cash
|
(3,291,383
|
)
|
(193,414
|
)
|
(2,318,970
|
)
|
(335,317
|
)
|
|||||
Cash,
beginning of period
|
5,286,315
|
600,313
|
4,313,902
|
742,216
|
|||||||||
Cash,
end of period
|
$
|
1,994,932
|
$
|
406,899
|
$
|
1,994,932
|
$
|
406,899
|
|||||
Cash,
end of period consists of:
|
|||||||||||||
Cash
|
$
|
1,394,605
|
$
|
742,216
|
$
|
1,394,605
|
$
|
742,216
|
|||||
Money
market funds
|
$
|
600,327
|
$
|
-
|
$
|
600,327
|
$
|
-
|
|||||
*Comparative
figures have been reclassified to conform to the current periods
financial
statement
presentation (See Notes 4 and 7) .
|
|||||||||||||
The
accompanying notes are an integral part of these financial
statements
|
2. |
Seasonality
and Trend Information
|
3. |
Segmented
information
|
4. |
Discontinued
Operations
|
5. |
Investment
|
6. |
Share
Capital
|
|
#
|
Consideration
|
Balance, as
at June 30, 2005 and December 31, 2005
|
4,059,009
|
$43,339,132
|
|
|
Value
|
Balance, as
at June 30, 2005
|
|
$149,109
|
Issuance
of options
|
|
3,736
|
Balance,
as at December 31, 2005
|
|
$152,845
|
Exercise
|
Expiry
|
2005
|
2004
|
Price
|
Date
|
#
|
#
|
US$0.75
|
February
28, 2010
|
600,000
|
-
|
US$1.77
|
July
15, 2008
|
15,000
|
-
|
|
|
615,000
|
-
|
Of
the options priced at US$0.75, 5,000 vest March 1, 2006. Of the
options
priced at US$1.77, 10,000 vest July 15, 2006 and 5,000 vest on
July 15,
2007.
|
7. |
Comparative
Figures
|