Harbinger Group Inc.
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SEC Filings

8-K
HRG GROUP, INC. filed this Form 8-K on 11/13/1995
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<PAGE>
 
            NOTES TO CONSOLIDATED FINANCIAL STATEMENTS--(CONTINUED)
 
NOTE 15. OIL AND GAS OPERATIONS (UNAUDITED)--(CONTINUED)
 
                        NATURAL GAS AND LIQUIDS RESERVES
 

<TABLE>
<CAPTION>
                             UNITED STATES               BOLIVIA                    TOTAL
                         ------------------------  -----------------------  ------------------------
                           LIQUIDS       GAS         LIQUIDS      GAS         LIQUIDS       GAS
                         ------------ -----------  ------------ ----------  ------------ -----------
                         (LIQUIDS IN MILLIONS OF BARRELS, GAS IN BILLIONS OF CUBIC FEET)
<S>                      <C>          <C>          <C>          <C>         <C>          <C>
Proved reserves as of
   September 30, 1991...          .6         61.8           .7        23.7          1.3         85.5
  Revisions of previous
   estimates............         (.1)        (3.1)                     (.8)         (.1)        (3.9)
  Production............         (.1)       (10.2)                    (1.7)         (.1)       (11.9)
                           ---------  -----------    ---------  ----------    ---------  -----------
Proved reserves as of
   September 30, 1992...          .4         48.5           .7        21.2          1.1         69.7
  Revisions of previous
   estimates............                     (1.1)                     3.0                       1.9
  Production............                     (7.0)                    (1.7)                     (8.7)
  Purchase of reserves
   in place.............                       .4                                                 .4
                           ---------  -----------    ---------  ----------    ---------  -----------
Proved reserves as of
   September 30, 1993...          .4         40.8           .7        22.5          1.1         63.3
  Revisions of previous
   estimates............          .1         (2.8)          .1         6.7           .2          3.9
  Production............         (.1)        (3.3)         (.1)       (1.9)         (.2)        (5.2)
                           ---------  -----------    ---------  ----------    ---------  -----------
Proved reserves as of
   September 30, 1994...          .4         34.7           .7        27.3          1.1         62.0
                           =========  ===========    =========  ==========    =========  ===========
Proved developed re-
   serves as of
   September 30, 1991...          .4         53.5           .7        23.7          1.1         77.2
  September 30, 1992....          .3         41.0           .7        21.2          1.0         62.2
  September 30, 1993....          .2         28.2           .7        22.5           .9         50.7
  September 30, 1994....          .2         27.4           .7        27.3           .9         54.7
</TABLE>

 
 Standardized measure of discounted future net cash flows
 
  The information presented below concerning the net present value of aftertax
cash flows for Zapata's oil and gas producing operations is required by SFAS
No. 69 in an attempt to make comparable information concerning oil and gas
producing operations available for financial statement users. The information
is based on proved reserves as of September 30 for each fiscal year and has
been prepared in the following manner:
 
  1. Estimates were made of the future periods in which proved reserves would
be produced based on year-end economic conditions.
 
  2. The estimated future production streams of proved reserves have been
priced using year-end prices with the exception that future prices of gas have
been increased for fixed and determinable escalation provisions in existing
contracts.
 
  3. The resulting future gross cash inflows have been reduced by the estimated
future costs to develop and produce the proved reserves at year-end cost
levels.
 
  4. Income tax payments have been computed at statutory rates based on the net
future cash inflows, the remaining tax basis in oil and gas properties and
permanent differences between book and tax income and tax credits or other tax
benefits available related to the oil and gas operations.
 
  5. The resulting after-tax future net cash flows are discounted to present
value amounts by applying a 10% annual discount factor.
 
                                       38

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