Indicate by check mark whether the registrant is a shell company as defined in Rule 12b-2 of the Exchange Act: Yes ¨ No x
Issuer’s revenues for the fiscal year ended March 31, 2008, were $67,802.
At July 11, 2008, 3,072,836 shares of common stock, no par value, the registrant’s only class of voting stock were outstanding. The aggregate market value of the 1,416,256 common shares of the registrant held by nonaffiliates was approximately $191,195 at July 11, 2008, based on the mean between the bid and asked prices on the OTC Bulletin Board of $.09 and $.18, respectively. See Item 5 herein for additional information in this regard.
Documents incorporated by reference: None
Transitional Small Business Disclosure Format: Yes ¨ No x
Table of Contents
PART I
| Item 1. | Description of Business |
Nature of Business and Management’s Plan
Eagle Exploration Company’s history of operations includes the purchase and development of residential and commercial real estate. In 1992 the Company began to change its focus from oil and gas exploration to real estate development and in connection with this change subsequently sold most of its oil and gas interests and investments. However, the Company continues to hold minor interests in oil and gas properties. The Company is also investigating various potential acquisitions and other business opportunities.
All statements other than statements of historical fact included in this annual report regarding the Company’s financial position and operating and strategic initiatives and addressing industry developments are forward-looking statements. Where, in any forward-looking statement, the Company, or its management, expresses an expectation or belief as to future results, such expectation or belief is expressed in good faith and believed to have a reasonable basis, but there can be no assurance that the statement of expectation or belief will result or be achieved or accomplished. Factors which could cause actual results to differ materially from those anticipated, include but are not limited to general economic, financial and business conditions; particularly including interest rates and the status of the housing industry; the business abilities and judgments of management; the impact of unusual items on ongoing evaluations of business strategies; and changes in business strategy.
Employees
As of July 11, 2008, the Company had one full-time employee. The Company has and may retain independent consultants from time to time on a limited basis.
| Item 2. | Description of Property |
The Company’s assets consist of cash and cash equivalents, marketable securities, accounts receivable, property and equipment, equity investment in LLC, and minor interests in oil and gas properties including one lease operated by the Company. See Management’s Discussion and Analysis of Financial Condition and Results of Operations in Item 6 below and the Consolidated Financial Statements and Notes related thereto in Item 7 below.
| Item 3. | Legal Proceedings |
No litigation is pending or threatened by or against the Company.
| Item 4. | Submissions of Matters to a Vote of Security Holders |
No matters were submitted during the fourth quarter of fiscal 2008 to a vote of the Company’s security holders.
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Table of Contents
PART II
| Item 5. | Market for Common Equity and Related Stockholder Matters and Small Business Issuer Purchase of Equity Securities |
The table below presents the range of high and low bid quotations for the Company’s common stock on a calendar quarter basis as reported on the OTC Bulletin Board. The Company’s trading symbol is EGXP.OB. There is little or no trading in the Company’s common stock, hence the quotations set forth below may not represent actual transactions and do not represent transactions in any material number of the Company’s shares.
| High Bid | Low Bid | |||||
| 2006 |
||||||
| 1st quarter |
$ | .35 | $ | .25 | ||
| 2nd quarter |
$ | .22 | $ | .22 | ||
| 3rd quarter |
$ | .60 | $ | .15 | ||
| 4th quarter |
$ | .30 | $ | .15 | ||
| 2007 |
||||||
| 1st quarter |
$ | .20 | $ | .15 | ||
| 2nd quarter |
$ | .25 | $ | .15 | ||
| 3rd quarter |
$ | .25 | $ | .15 | ||
| 4th quarter |
$ | .20 | $ | .08 | ||
| 2008 |
||||||
| 1st quarter |
$ | .25 | $ | .08 | ||
| 2nd quarter |
$ | .18 | $ | .09 | ||
As of July 11, 2008, the Company had approximately 484 shareholders of record of its common stock and an undetermined number of beneficial owners.
The Company did not sell any of its equity securities during the fiscal year ended March 31, 2008, nor did it repurchase any such securities during that period.
Holders of common stock are entitled to receive such dividends as may be declared by the Company’s Board of Directors. The Company has paid no dividends on its common stock, nor does the Company anticipate that such dividends will be paid in the foreseeable future.
| Item 6. | Management’s Discussion and Analysis of Financial Condition and Results of Operations |
The following discussion should be read in conjunction with the Consolidated Financial Statements and Notes thereto in Item 7 below particularly with respect to our critical accounting policies and certain recent accounting pronouncements.
Overview
The Company’s cash and cash equivalents at March 31, 2008 were $415,692 compared to $550,460 for the prior year ended March 31, 2007. The Company’s marketable securities available-for-sale for the year ended March 31, 2008 was $42,900. For the previous year ended March 31, 2007, the marketable securities available-for-sale was $90,335. The decrease in cash and cash equivalents for the fiscal year ended March 31, 2008, was due to operating costs and a contribution to equity of an investment.
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Table of Contents
Eagle Development Company, a wholly owned subsidiary of Eagle Exploration Company, (the Company) owns a 25 percent membership interest in, and is co-manager of, Buffalo Highlands, LLC, a Colorado Limited Liability Company, (the LLC). The Annual Report on Form 10-KSB for the year ended March 31, 2007, described in detail the Company’s primary business of developing single family and multi-family subdivisions including the summary of the Company’s process of acquiring approximately 320 acres of undeveloped land in Adams County, Colorado, located immediately northeast of Denver, Colorado, (the Property). The LLC acquired the Property on January 19, 2007. Also in the prior year’s Annual Report, the Company reported the metro Denver housing market, much like the national housing market was suffering from declining sales, rising inventories and flat home prices resulting in little or no demand from the national building community for undeveloped lots as future sites for new home construction. Concurrently with these poor market conditions and no assurance of when the market conditions will improve, the Company was faced with the decision to either walk away from the Property and cut its losses or to continue its ownership in the Property and preserve its investment of nearly 20 percent of the purchase price and capitalize on its negotiated sale of a portion of the properties water rights for approximately 30 percent of the purchase price. After careful consideration the decision was made to purchase the Property. The Seller accepted the proceeds from the sale of the water rights as a down payment toward the purchase price and agreed to carry the balance of the remaining purchase price for three years ending January 19, 2010.
As a result the challenge for the fiscal year ended March 31, 2008, and beyond is to successfully manage the Company’s limited resources and to continue to hold the Property until market conditions improve. The Company does have the resources to hold the Property and pay its share of expenses through the term of the Note. However, it does not have the financial resources to pay its share of the remaining purchase price, water payments and the cost of the final plat without first securing a sales contract with a home builder prior to the due date of the Note.
In an effort to preserve the Company’s capital, management agreed along with the other members of the LLC to secure a $1,000,000 line of credit to be used for the quarterly installment payments on the Promissory Note to the Seller of the land held by the LLC, the annual water payments and other miscellaneous costs while holding the property. The Company and one other member of the LLC guaranteed the line of credit. The line of credit with the bank is due approximately 30 days prior to the time when both the Promissory Note to the Seller and the line of credit with the bank are due and payable.
The decision to finance these expenses allowed the Company to preserve its cash necessary for overhead as well as the possibility to extend the Note in the event a contract could not be secured on the Property prior to the due date of the Note. Market conditions for selling in fiscal 2008 have not improved from the previous period. The possibility that market conditions would not improve by the end of the Note became more apparent. Having limited alternatives, management also made the decision to suspend the salary for Paul M. Joeckel, including associated benefits and reduce the salary for the one full time employee until such time the Property is successfully divested.
Paul M. Joeckel has agreed to continue his executive role with the Company, including co-management of the LLC, review due diligence and negotiations with merger candidates and Company reporting obligations without compensation. Likewise the full-time employee has agreed to continue the accounting and reporting obligations until the Property is sold or until such time other capitalization is provided. As consideration for this deferral of wages both Paul M. Joeckel and the Company’s employee will be compensated for their continued service in the form of a commission on the sale of the property, stock grant or cash bonus to be determined by management at the appropriate time.
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The net effect of these cost reductions have positioned the Company to pay all of its expenses including the interest expense on its share of the line of credit with its current cash flow generated from the Company’s producing oil and gas properties and interest and dividend income. The posturing of the Company in this manner is intended to preserve the Company’s cash through the term of the Note. This effort may help to facilitate the Company’s success
Stockholders’ equity decreased from $1,367,546 at March 31, 2007, to $1,228,362 at March 31, 2008 or $139,184. The Company incurred unrealized loss on investments available-for-sale as of March 31, 2008 of $5,440 as compared to unrealized loss on investments available-for-sale of $5,187 as of March 31, 2007.
Results of Operations
Fiscal 2008 Compared with Fiscal 2007
Oil and gas royalties for the year ended March 31, 2008, were $67,802 as compared to $49,147 for the year ended March 31, 2007. This increase is primarily due to higher oil and gas prices. Other income included interest and dividend income for the year ended March 31, 2008 was $19,775, and for the year ended March 31, 2007 interest and dividend income was $29,543. This decrease in interest and dividend income is a result of lower interest and dividend rates. At March 31, 2008 a gain on the sale of an investment was $39,376. Equity in loss of the LLC for the year ended March 31, 2008 was $52,891. This was a result of operating costs of the LLC. For the prior period ended March 31, 2007, the Company’s equity gain of the earnings of the LLC was $371,607 due primarily to the water sale of that year.
Total expenses for the year ended March 31, 2008 were $175,185 and $265,280 for the year ended March 31, 2007. This decrease in expenses is primarily due to the Company’s efforts to reduce operating costs of approximately $60,000, the prior year’s loss on disposal of property of approximately $20,000 and accounting fees of approximately $10,000. Unrealized loss on investments available-for-sale for the year ended March 31, 2008, was $5,440 compared to an unrealized loss on investments available-for-sale for the period ended March 31, 2007, of $5,187.
Financial Condition, Liquidity and Capital Resources
The Company believes its working capital position will enable it to meet its cash operating requirements during the next 12 months. However, see the discussion above, which describes the long-term challenges the Company faces in financing its share of the LLC costs relating to its property development.
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Table of Contents
| Item 7. | Financial Statements |
| Page | ||
| F-1 | ||
| Consolidated Financial Statements |
||
| F-2 | ||
| Consolidated Statements of Operations and Comprehensive Loss |
F-3 | |
| F-4 | ||
| F-5 | ||
| F-6 | ||
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Table of Contents
EAGLE EXPLORATION COMPANY AND SUBSIDIARIES
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
Board of Directors and Stockholders
Eagle Exploration Company and Subsidiaries
Denver, Colorado
We have audited the accompanying consolidated balance sheet of Eagle Exploration Company and Subsidiaries as of March 31, 2008, and the related consolidated statements of operations and comprehensive loss, changes in stockholders' equity and cash flows for the years ended March 31, 2008 and 2007. These consolidated financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on these consolidated financial statements based on our audits.
We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the consolidated financial statements are free of material misstatement. The Company is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. Our audit included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company’s internal control over financial reporting. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Eagle Exploration Company and Subsidiaries as of March 31, 2008, and the results of its operations and cash flows for the years ended March 31, 2008 and 2007, in conformity with accounting principles generally accepted in the United States of America.
June 26, 2008
Denver, Colorado
/s/ COMISKEY & COMPANY
PROFESSIONAL CORPORATION
See notes to consolidated financial statements.
F - 1
Table of Contents
EAGLE EXPLORATION COMPANY AND SUBSIDIARIES
Consolidated Balance Sheet
March 31, 2008
| Assets | ||||
| Current assets |
||||
| Cash and cash equivalents |
$ | 415,692 | ||
| Investments, available-for-sale |
42,900 | |||
| Accounts receivable |
8,590 | |||
| Total current assets |
467,182 | |||
| Non-current assets |
||||
| Office furniture, equipment and other, net of accumulated depreciation of $215,953 |
19,600 | |||
| Equity investment in LLC |
841,290 | |||
| Other assets |
24,250 | |||
| Total non-current assets |
885,140 | |||
| Total assets |
$ | 1,352,322 | ||
| Liabilities and Stockholders’ Equity | ||||
| Current liabilities |
||||
| Accounts payable |
$ | 510 | ||
| Guarantee on LLC line of credit |
123,450 | |||
| Total liabilities |
123,960 | |||
| Commitments |
||||
| Stockholders’ equity |
||||
| Common stock, no par value; authorized 10,000,000 shares; 3,072,836 shares issued and outstanding |
6,632,998 | |||
| Accumulated deficit |
(5,397,536 | ) | ||
| Unrealized loss on investments available-for-sale |
(7,100 | ) | ||
| Total stockholders’ equity |
1,228,362 | |||
| Total liabilities and stockholders’ equity |
$ | 1,352,322 | ||
See notes to consolidated financial statements.
F - 2
Table of Contents
EAGLE EXPLORATION COMPANY AND SUBSIDIARIES
Consolidated Statements of Operations and Comprehensive Loss
| For the Years Ended March 31, |
||||||||
| 2008 | 2007 | |||||||
| Revenues |
||||||||
| Oil and gas |
$ | 67,802 | $ | 49,147 | ||||
| Total revenues |
67,802 | 49,147 | ||||||
| Expenses |
||||||||
| Depreciation |
3,676 | 3,665 | ||||||
| General and administrative expenses |
171,509 | 261,615 | ||||||
| Total expenses |
175,185 | 265,280 | ||||||
| Loss from operations |
(107,383 | ) | (216,133 | ) | ||||
| Other income (expense) |
||||||||
| Interest and dividend income |
19,775 | 29,543 | ||||||
| Gain on sale of investment |
39,376 | — | ||||||
| Equity in gains (losses) in LLC |
(52,891 | ) | 371,607 | |||||
| Other |
— | 9,700 | ||||||
| Total other income |
6,260 | 410,850 | ||||||
| Net gain (loss) before other comprehensive income |
(101,123 | ) | 194,717 | |||||
| Other comprehensive income |
||||||||
| Unrealized (loss) on investments available-for-sale during the year |
(5,440 | ) | (5,187 | ) | ||||
| Less reclassification adjustment |
(32,621 | ) | — | |||||
| Comprehensive gain (loss) |
$ | (139,184 | ) | $ | 189,530 | |||
| Basic and diluted weighted average common shares outstanding |
3,072,836 | 3,072,836 | ||||||
| Basic and diluted gain (loss) per common share |
$ | (0.04 | ) | $ | 0.06 | |||
See notes to consolidated financial statements.
F - 3
Table of Contents
EAGLE EXPLORATION COMPANY AND SUBSIDIARIES
Consolidated Statement of Changes in Stockholders’ Equity
For the Years Ended March 31, 2008 and 2007
| Common Stock | Accumulated Deficit |
Other Accumulated Comprehensive Income |
Total Stockholders’ Equity |
||||||||||||||
| Shares | Amount | ||||||||||||||||
| Balance - March 31, 2006 |
3,072,836 | $ | 6,632,998 | (5,491,130 | ) | $ | 36,148 | $ | 1,178,016 | ||||||||
| Net income |
— | — | 194,717 | — | 194,717 | ||||||||||||
| Unrealized gain on investments available-for-sale |
— | — | — | (5,187 | ) | (5,187 | ) | ||||||||||
| Balance - March 31, 2007 |
3,072,836 | 6,632,998 | (5,296,413 | ) | 30,961 | 1,367,546 | |||||||||||
| Net loss |
— | — | (101,123 | ) | — | (101,123 | ) | ||||||||||
| Reclassification adjustment |
— | — | — | (32,621 | ) | (32,621 | ) | ||||||||||
| Unrealized loss on investments available-for-sale |
— | — | — | (5,440 | ) | (5,440 | ) | ||||||||||
| Balance – March 31, 2008 |
3,072,836 | $ | 6,632,998 | $ | (5,397,536 | ) | $ | (7,100 | ) | $ | 1,228,362 | ||||||
See notes to consolidated financial statements.
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EAGLE EXPLORATION COMPANY AND SUBSIDIARIES
Consolidated Statements of Cash Flows
| For the Years Ended March 31, |
||||||||
| 2008 | 2007 | |||||||
| Cash flows from operating activities |
||||||||
| Net income (loss) |
$ | (101,123 | ) | $ | 194,717 | |||
| Adjustments to reconcile net income (loss) to net cash flows from operating activities |
||||||||
| Depreciation |
3,676 | 3,665 | ||||||
| Equity in (gains) losses in LLC |
52,891 | (371,607 | ) | |||||
| Gain on sale of investment |
(39,376 | ) | — | |||||
| (Gain) loss on disposal of property and equipment |
— | 16,789 | ||||||
| Change in assets and liabilities: |
||||||||
| Accounts receivable |
(2,612 | ) | 1,231 | |||||
| Prepaid expenses and other current assets |
— | 587 | ||||||
| Accounts payable |
(2,228 | ) | 1,678 | |||||
| Accrued expenses and interest |
(2,048 | ) | (9,337 | ) | ||||
| Net cash flows from operating activities |
(90,820 | ) | (162,277 | ) | ||||
| Cash flows from investing activities |
||||||||
| Purchase of certificate of deposit |
(37,500 | ) | ||||||
| Payment of contribution to equity investment in LLC |
(55,198 | ) | (41,359 | ) | ||||
| Proceeds from sale of investments |
48,750 | 3,253 | ||||||
| Net cash flows from investing activities |
(43,948 | ) | (38,106 | ) | ||||
| Net decrease in cash |
(134,768 | ) | (200,383 | ) | ||||
| Cash and cash equivalents, beginning of year |
550,460 | 750,843 | ||||||
| Cash and cash equivalents, end of year |
$ | 415,692 | $ | 550,460 | ||||
Supplemental disclosure of non-cash activity:
The Company incurred unrealized (loss) on investments available-for-sale for the years ended March 31, 2008 and 2007 of $(5,440) and $(5,187), respectively.
See notes to consolidated financial statements.
F - 5
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EAGLE EXPLORATION COMPANY AND SUBSIDIARIES
Notes to Consolidated Financial Statements
Note 1 - Description of Business and Summary of Significant Accounting Policies
Eagle Exploration Company and Subsidiaries (the "Company") primary operations currently include the purchase and development of residential and commercial real estate. In 1992 the Company began to change its focus from oil and gas exploration to real estate development and in connection with this change subsequently sold most of its oil and gas interests and investments. However, the Company continues to hold minor interests in oil and gas properties and indirect interests by acquiring equity in other oil and gas companies. The Company is also investigating various potential acquisitions and other business opportunities.
Principles of Consolidation
The accompanying consolidated financial statements include the accounts of Eagle Exploration Company and its subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation. The following is a listing of the wholly owned subsidiaries of Eagle Exploration Company: Colorado Eagle Exploration Company, Emsen Energy, Inc., Eagle Development Company and Overland Energy, Inc.
Cash and Cash Equivalents
The Company considers all highly liquid instruments purchased with an original maturity of three months or less to be cash equivalents. The Company continually monitors its positions with, and the credit quality of, the financial institutions with which it invests. As of the balance sheet date, and periodically throughout the year, the Company has maintained balances in various operating accounts in excess of federally insured limits.
Investments
The Company classifies its investment securities in one of three categories: trading, available-for-sale, or held-to-maturity. Trading securities are bought and held principally for the purpose of selling them in the near term. Held-to-maturity securities are those securities in which the Company has the ability and intent to hold the security until maturity. All other securities not included in trading or held-to-maturity are classified as available-for-sale.
Held-to-maturity securities are recorded at amortized cost, adjusted for the amortization or accretion of premiums or discounts. Trading and available-for-sale securities are recorded at fair value. Unrealized holding gains and losses on trading securities are included in earnings. Unrealized holding gains and losses on available-for-sale securities are excluded from earnings and are reported as a separate component of stockholder's equity until realized. Transfers of securities between categories are recorded at fair value at the date of transfers.
Realized gains and losses for securities classified as available-for-sale and held-to-maturity are recognized in earnings upon sale or redemption at maturity. The specific identification method is used to determine the cost of securities sold. Discounts or premiums are accreted or amortized using the level-interest-yield method to the earlier of the call date or maturity of the related held-to-maturity security.
See notes to consolidated financial statements.
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EAGLE EXPLORATION COMPANY AND SUBSIDIARIES
Notes to Consolidated Financial Statements
Note 1 - Description of Business and Summary of Significant Accounting Policies (continued)
Property and Equipment
Property and equipment is stated at cost. Depreciation is provided utilizing straight-line and accelerated methods over the estimated useful lives of five years for owned assets.
Equity Investment in LLC
The Company accounts for its investment in the LLC on the equity method in accordance with Accounting Principles Board Opinion No. 18, “The Equity Method of Accounting for Investments in Common Stock” (APB No 18). Under the equity method, the Company recognizes its share of the net earnings or losses of the LLC as they occur. The investment is reviewed for impairment on a quarterly basis. No impairment has been recorded as of March 31, 2008.
Fair Value of Financial Instruments
The carrying amounts of financial instruments including cash and cash equivalents, receivables and accounts payable approximated fair value as of March 31, 2008 because of the relatively short maturity of these instruments.
The carrying amounts of investments available-for-sale are based on quoted market values.
Long-Lived Assets
The Company reviews its long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of the asset may not be recovered. The Company looks primarily to the undiscounted future cash flows in its assessment of whether or not long-lived assets have been impaired.
Income Taxes
The Company recognizes deferred tax liabilities and assets based on the differences between the tax basis of assets and liabilities and their reported amounts in the financial statements that will result in taxable or deductible amounts in future years. The Company's temporary differences result primarily from property and equipment, oil and gas property and net operating loss carryforwards.
Revenue Recognition
The Company recognizes revenue from oil and gas royalties when received on a cash basis. The Company recognizes revenues related to some minor working interests in oil and gas wells as the oil and gas is produced and sold.
See notes to consolidated financial statements.
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EAGLE EXPLORATION COMPANY AND SUBSIDIARIES
Notes to Consolidated Financial Statements
The Company does not have any capitalized costs relating to oil and gas producing activities and is not currently engaged in any acquisition, exploration or development activities where these types of costs would be incurred. Additionally, the Company has not commissioned a reserve study and does not anticipate commissioning such a study for the interests that it still holds due the minor nature of these holdings.
Note 1 - Description of Business and Summary of Significant Accounting Policies (continued)
Comprehensive Income
Statement of Financial Accounting Standards No. 130, "Reporting Comprehensive Income," requires the disclosure of comprehensive income to reflect changes in equity that result from transactions and economic events from non-owner sources. Accumulated other comprehensive income for the periods presented represents unrealized holding gains associated with investments available-for-sale. There was no tax expense or tax benefit associated with these items.
Basic and Diluted Earnings per Common Share
In accordance with SFAS 128, basic earnings per share are computed by dividing net income by the number of weighted average common shares outstanding during the year. Diluted earnings per share is computed by dividing net income by the number of weighted average common shares outstanding during the year, including potential common shares, which consisted of 275,000 stock options. These potentially dilutive common shares were not included in computing diluted earnings per share, as their effects would be antidilutive.
Stock-Based Compensation
In December 2004, the FASB issued revised SFAS No. 123 (revised 2004), “Share-Based Payment” (“SFAS No. 123R”), which replaces SFAS no. 123 and supersedes APB 25. SFAS 123R requires all share-based payments to employees, including grants of employee stock options, to be recognized in the financial statements based on their estimated fair values beginning with the first annual period that begins after December 15, 2005, although early adoption is encouraged. The pro forma disclosures previously permitted under SFAS 123 no longer will be an alternative to financial statement recognition. The Company adopted SFAS 123R for the year ended March 31, 2008. Due to the nature of the options outstanding as of March 31, 2008, the adoption of SFAS 123R did not have a material impact on the Company’s results of operations.
Use of Estimates
The preparation of consolidated financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.
See notes to consolidated financial statements.
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EAGLE EXPLORATION COMPANY AND SUBSIDIARIES
Notes to Consolidated Financial Statements
Recent Accounting Pronouncement
In December, 2007, the Financial Accounting Standards Board (“FSAB”)