EX-99.2
9
exhibit99-2.htm
INTERIM FINANCIAL STATEMENTS
Filed by sedaredgar.com - Doral Energy Corporation - Exhibit 99.2
EDDY COUNTY PROPERTIES
Oil and Gas Properties
Purchased by Doral Energy Corp. from Hanson Energy in Eddy County, NM
Statements of Combined Revenues and Direct Operating Expenses
For the
three months ended May 31, 2008 and 2007
(Unaudited)
2008
2007
Revenue
$
816,098
$
425,392
Direct operating expense
226,889
145,324
Excess of revenues over direct operating expense
$
589,209
$
280,068
The accompanying notes are an integral part of these financial
statements.
EDDY COUNTY PROPERTIES
(Oil and Gas Properties
Purchased by Doral Energy Corp. from Hanson Energy in Eddy, NM
Notes
to Unaudited Statements of Combined Revenues and Direct Operating Expenses
For the three months ended May 31, 2008 and 2007
(Unaudited)
Note 1 - The Properties
Effective August 1, 2008, Doral Energy Corp. ("the Company" or
"Doral") purchased an approximately 96% average working interest in 62 fields
located in the Eddy County in Eddy County, New Mexico (the "Eddy County
Properties") pursuant to a Purchase and Sale Agreement dated April 25, 2008 and
amended July XX, 2008 between Hanson Energy, and Doral Energy Corp. (formerly
Language Enterprises Corp.).
Doral acquired all of Hanson Energy's working interest in
approximately 8,000 acres and 186 wells (both producing and non producing) which
are currently producing approximately 115 barrels of oil per day and 45 mcf of
natural gas per day net to Doral's interest. Doral is the operator of the
Eddy County Properties.
As consideration for the working interest, Doral paid $5
million and the Company issued 7,000,000 shares of its common stock to the
owners of Hanson Energy. In addition Doral has assigned Hanson Energy a 2.5%
overriding royalty on all production from the Eddy County Properties.
Note 2 - Basis of Presentation
During the periods presented, Hanson Energy did not account for
the Eddy County Properties in accordance with generally accepted accounting
principles. Hanson Energy accounted for their operations under the tax basis of
accounting, did not capitalize many of the costs that would otherwise be
capitalized under the full cost method of accounting for oil and gas properties
and did not conduct any reserve studies nor calculate an amortization rate per
equivalent unit of production. Accordingly, full separate financial statements
prepared in accordance with generally accepted accounting principles do not
exist and are not practicable to obtain in these circumstances.
Revenues and direct operating expenses included in the
Statements of Combined Revenues and Direct Operating Expenses of the Eddy Country Properties represent Doral's interest in the properties acquired for the
periods prior to the closing date and are presented on the accrual basis of
accounting and in accordance with generally accepted accounting principles.
Depreciation, depletion and amortization, interest, accretion of asset
retirement obligation, general and administrative expenses and corporate income
taxes have been excluded. The financial statements presented are not indicative
of the results of operations of the acquired properties going forward due to
changes in the business and inclusion of the above mentioned expenses.
Note 3 - Contribution of services
During the three months ended May 31, 2008 and 2007, the sole
shareholder of Hanson Energy provided well supervision and other field services
valued at $6,000 per month. The sole shareholder was not compensated for the
value of these contributed services; however, the cost has been included in the
direct operating expense of the Eddy County Properties for the periods
presented.
Note 4 - Commitments and Contingencies
The Company is not aware of any legal, environmental or other
commitments or contingencies that would have a material effect on the statements
of combined revenues and direct operating expenses.

EX - 99 . 2 9 exhibit99 - 2 . htm INTERIM FINANCIAL STATEMENTS Filed by sedaredgar.com - Doral Energy Corporation - Exhibit 99 . 2 EDDY COUNTY PROPERTIES Oil and Gas Properties Purchased by Doral Energy Corp . from Hanson Energy in Eddy County , NM Statements of Combined Revenues and Direct Operating Expenses For the three months ended May 31 , 2008 and 2007 ( Unaudited ) 2008 2007 Revenue $ 816,098 $ 425,392 Direct operating expense 226,889 145,324 Excess of revenues over direct operating expense $ 589,209 $ 280,068 The accompanying notes are an integral part of these financial statements . EDDY COUNTY PROPERTIES ( Oil and Gas Properties Purchased by Doral Energy Corp . from Hanson Energy in Eddy , NM Notes to Unaudited Statements of Combined Revenues and Direct Operating Expenses For the three months ended May 31 , 2008 and 2007 ( Unaudited ) Note 1 - The Properties Effective August 1 , 2008 , Doral Energy Corp . ( " the Company " or " Doral " ) purchased an approximately 96 % average working interest in 62 fields located in the Eddy County in Eddy County , New Mexico ( the " Eddy County Properties " ) pursuant to a Purchase and Sale Agreement dated April 25 , 2008 and amended July XX , 2008 between Hanson Energy , and Doral Energy Corp . ( formerly Language Enterprises Corp . ) . Doral acquired all of Hanson Energy 's working interest in approximately 8,000 acres and 186 wells ( both producing and non producing ) which are currently producing approximately 115 barrels of oil per day and 45 mcf of natural gas per day net to Doral 's interest . Doral is the operator of the Eddy County Properties . As consideration for the working interest , Doral paid $ 5 million and the Company issued 7,000,000 shares of its common stock to the owners of Hanson Energy . In addition Doral has assigned Hanson Energy a 2 . 5 % overriding royalty on all production from the Eddy County Properties . Note 2 - Basis of Presentation During the periods presented , Hanson Energy did not account for the Eddy County Properties in accordance with generally accepted accounting principles . Hanson Energy accounted for their operations under the tax basis of accounting , did not capitalize many of the costs that would otherwise be capitalized under the full cost method of accounting for oil and gas properties and did not conduct any reserve studies nor calculate an amortization rate per equivalent unit of production . Accordingly , full separate financial statements prepared in accordance with generally accepted accounting principles do not exist and are not practicable to obtain in these circumstances . Revenues and direct operating expenses included in the Statements of Combined Revenues and Direct Operating Expenses of the Eddy Country Properties represent Doral 's interest in the properties acquired for the periods prior to the closing date and are presented on the accrual basis of accounting and in accordance with generally accepted accounting principles . Depreciation , depletion and amortization , interest , accretion of asset retirement obligation , general and administrative expenses and corporate income taxes have been excluded . The financial statements presented are not indicative of the results of operations of the acquired properties going forward due to changes in the business and inclusion of the above mentioned expenses . Note 3 - Contribution of services During the three months ended May 31 , 2008 and 2007 , the sole shareholder of Hanson Energy provided well supervision and other field services valued at $ 6,000 per month . The sole shareholder was not compensated for the value of these contributed services ; however , the cost has been included in the direct operating expense of the Eddy County Properties for the periods presented . Note 4 - Commitments and Contingencies The Company is not aware of any legal , environmental or other commitments or contingencies that would have a material effect on the statements of combined revenues and direct operating expenses .