EX-99.1 2 exh99_1.txt EXHIBIT 99.1 TO FORM 8-K DATED 6/1/2004 MONTHLY OPERATING REPORT CHAPTER 11 CASE NAME: Fortune Natural Resources Corporation CASE NUMBER: 04-14112 ---------------------------- For Period July 1, 2004 to July 31, 2004 -------------------------------------------------------------------------------- THIS REPORT IS DUE 15 DAYS AFTER THE END OF THE MONTH. The debtor must attach each of the following forms unless the United States Trustee has waived the requirement in writing. File with the court and submit a paper copy to UST with an original signature. -------------------------------------------------------------------------------- Report/Document Previously Attached Waived REQUIRED REPORTS/DOCUMENT -------------------------------------------------------------------------------- (mark only one - attached or waived) {X} { } Comparative Balance Sheet (FORM 2-B) {X} { } Profit and Loss Statement (FORM 2-C) {X} { } Cash Receipts & Disbursements Statement (FORM 2-D) {X} { } Supporting Schedules (FORM 2-E) {X} { } Narrative (FORM 2-F) { } { } Copies of Bank Statement(s) and Reconciliations of Bank Balance to Book Balance for all Account(s) -------------------------------------------------------------------------------- I declare under penalty of perjury that the following Monthly Financial Report and any attachments thereto, are true and correct to the best of my knowledge and belief. Executed on: August 13, 2004 Debtor(s)*: Fortune Natural Resources Corporation --------------- ----------------------------------- By:** s/s Dean Drulias ------------------------------------- Position: Corporate Secretary ------------------------------------- Telephone No. of Preparer (210) 275-7042 ------------------------------------- *both debtors must sign if a joint petition ** for corporate or partnership debtor FORM 2-A 01/04 CASE NAME: FORTUNE NATURAL RESOURCES CORPORATION CASE NUMBER: 04-14112 COMPARATIVE BALANCE SHEET

If assets are carried at historical cost on debtor's accounting records and debtor elects to show them as such on the monthly reports, note the change above and include remarks on FORM 2-F (Narrative). All subsequent reports must then carry these assets at that value. Do not use historical cost one month and fair market value the next. FORM 2-B Page 1 of 2 01/04 CASE NAME: FORTUNE NATURAL RESOURCES CORPORATION CASE NUMBER: 04-14112 COMPARATIVE BALANCE SHEET

FORM 2-B Page 2 of 2 01/04 CASE NAME: FORTUNE NATURAL RESOURCES CORPORATION CASE NUMBER: 04-14112 PROFIT AND LOSS STATEMENT

*Requires explanation in NARRATIVE (FORM 2-F) FORM 2-C Page 1 of 1 01/04 CASE NAME: FORTUNE NATURAL RESOURCES CORPORATION CASE NUMBER: 04-14112 CASH RECEIPTS AND DISBURSEMENTS STATEMENTS For Period July 1 to July 31, 2004 CASH RECONCILIATION 1. Beginning Cash Balance (Ending Cash Balance from last month's report) $ 9,701.85 ------------ 2. Cash Receipts (total Cash Receipts from page 2 of all FORM 2-D's) $ 87,345.53 ------------ 3. Cash Disbursements (total Cash Disbursements from Page 3 of all FORM 2-D's) $ 82,960.35 ------------ 4. Net Cash Flow $ 4,385.18 ------------ 5. Ending Cash Balance (to FORM 2-B) $ 14,087.03 ============ CASH SUMMARY - ENDING BALANCE Financial Amount* Institution ------------ ------------ 1. Real Estate Account 2. Trust Account $ 29,982.69 3. Operating and/or Personal Account $ - 4. Payroll Account $ 207.13 5. Tax Account 6. Other Savings (Specify checking or savings) $ 2,852.48 7. Cash Collateral Account 8. Petty Cash $ 69.73 ------------ Total (must agree with line 5 above) $ 33,112.03 *These amounts should be equal to the previous month's balance for the account plus this month's receipts less this month's disbursements. ================================================================================ ADJUSTED CASH DISBRUSEMENTS --------------------------- Cash disbursements on line 3 above less Inter-account transfers & UST fees paid $ 80,045.66 ============ Note: This amount should be used to determine UST quarterly fees due. FORM 2-D Page 1 of 4 01/04 CASE NAME: FORTUNE NATURAL RESOURCES CORPORATION CASE NUMBER: 04-14112 QUARTERLY FEE SUMMARY (1) Payment Cash Quarterly Check Date Disbursements Fee Due No. Date ------------ ----------- --------- ---------- ---------- January - - February - - March - - ----------- --------- 1st Quarter - $ - =========== ========= ---------- ---------- April - - May - - June 15,695 500.00 ----------- --------- 2nd Quarter 15,695 $ 500.00 =========== ========= ---------- ---------- July 80,046 - August - - September - - ----------- --------- 3rd Quarter 80,046 $ - =========== ========= ---------- ---------- October - - November - - December - - ----------- --------- 4th Quarter - $ - =========== ========= ---------- ---------- ================================================================================ FEE SCHEDULE Quarterly Fee Disbursement Category Due Less than $ 15,000.00 $ 250 $ 15,000.00 - $ 74,999.99 $ 500 $ 75,000.99 - $ 149,999.99 $ 750 $ 150,000.00 - $ 224,999.99 $ 1,250 $ 225,000.00 - $ 299,999.99 $ 1,500 $ 300,000.00 - $ 999,999.99 $ 3,750 $1,000,000.00 - $1,999,999.99 $ 5,000 $2,000,000.00 - $2,999,999.99 $ 7,500 $3,000,000.00 - $4,999,999.99 $ 8,000 $5,000,000.00 - and above $10,000 Note that a minimum payment of $250 is due each quarter even if no disbursements are made in the case during the period. -------------------------------------------------------------------------------- (1) This summary is to reflect the current calendar year's information cumulative to the end of the reporting period. (2) Should agree with "adjusted cash disbursements" at bottom of Form 2-D, Page 1 of 4. Disbursements are net of transfers to other debtor in possession bank accounts and net of payments of prior period quarterly fees. FORM 2-D Page 2 of 4 01/04 CASE NAME: FORTUNE NATURAL RESOURCES CORPORATION CASE NUMBER: 04-14112 CASH RECEIPTS AND DISBURSEMENTS STATEMENT (This form should be completed for each type of account listed on page 1 of FORM2-D that the debtor maintained during the month.) For Period July 1 to July 31, 2004. Account Name: ______________________________ Account Number: _______________ CASH RECEIPT JOURNAL (attach additional sheets as necessary) Date Description (Source) Amount SEE ATTACHED CASH AND DISBURSEMENTS SHEET Total Cash Receipts $__________ FORM 2-D Page 3 of 4 01/04 CASE NAME: FORTUNE NATURAL RESOURCES CORPORATION CASE NUMBER: 04-14112 SUPPORTING SCHEDULES For Period July 1 to July 31, 2004. INSURANCE SCHEDULE Date of Premium Type Carrier/Agent Coverage ($) Expiration Paid ---- ------------------ ------------ ------------ -------- Workers' Compensation ------------------ ------------ ------------ -------- General Liability ------------------ ------------ ------------ -------- Property (Fire, Theft) ------------------ ------------ ------------ -------- Vehicle ------------------ ------------ ------------ -------- Other (list): ------------------ ------------ ------------ -------- --------------------- ------------------ ------------ ------------ -------- --------------------- ------------------ ------------ ------------ -------- --------------------- ------------------ ------------ ------------ -------- --------------------- ------------------ ------------ ------------ -------- --------------------- ------------------ ------------ ------------ -------- --------------------- ------------------ ------------ ------------ -------- (1) Attach copy of certificate of insurance or declaration page of policy for any coverage renewed or replaced during the current reporting month. (2) For the period paid column enter "yes" if payment of premium is current or "no" if premium payment is delinquent. If "no", explain on Form 2-F, Narrative. FORTUNE IS IN THE PROCESS OF OBTAINING THE ABOVE REQUIRE INSURANCE. FORM 2-E Page 3 of 3 CASE NAME: Fortune Natural Resources Corporation CASE NUMBER: 04-14112 ------------------------------------- -------- N A R R A T I V E For Period July 1, to July 31, 2004 Please provide a brief description of the significant business and legal action by the debtor, its creditors or the court during the reporting period. Comments should include any change in bank accounts, explanation of extraordinary expenses, and purpose of any new post-petition financing. Comments should also include debtor's efforts during the month to rehabilitate the business and to develop a plan. The Debtor is negotiating with various parties relative to DIP loans, a cure of -------------------------------------------------------------------------------- the rights under the Exploration Agreement and a farmout of rights under the -------------------------------------------------------------------------------- corporation agreement. The matters have been heard by the Bankruptcy Court and -------------------------------------------------------------------------------- future hearings will be held to determine the outcome of the -------------------------------------------------------------------------------- negotiations. -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- FORM 2-F 01/04 BANK ACCOUNTS RECEIPTS AND DISBURSEMENTS Jul-04

FORTUNE NATURAL RESOURCES CORP 8-K