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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
(X) QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF
THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended March 31, 2003
OR
( ) TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF
THE SECURITIES EXCHANGE ACT OF 1934
for the transition period from____ to ____
Commission file number 1-12108
GULFWEST ENERGY INC.
--------------------
(Exact name of Registrant as specified in its charter)
Texas 87-0444770
(State or other jurisdiction (IRS Employer
of incorporation) Identification No.)
480 North Sam Houston Parkway East
Suite 300
Houston, Texas 77060
(Address of principal executive offices) (zip code)
(281) 820-1919
(Registrant's telephone number, including area code)
Indicate by check mark whether the registrant (1) has filed all reports required
to be filed by Section 13 or 15(D) of the Securities Exchange Act of 1934 during
the preceding 12 months (or for such shorter period that the registrant was
required to file such reports), and (2) has been subject to such filing
requirements for the past 90 days.
YES X NO ____
The number of shares outstanding of each of the issuer's classes of common
stock, as of the latest practicable date, May 14, 2003, was 18,492,541 shares of
Class A Common Stock, $.001 par value.
GULFWEST ENERGY INC.
FORM 10-Q FOR THE QUARTER ENDED
MARCH 31, 2003
Page of
Form 10-Q
---------
Part I: Financial Statements
Item 1. Financial Statements
Consolidated Balance Sheets, March 31, 2003,
and December 31, 2002 3
Consolidated Statements of Operations-for the three
months ended March 31, 2003, and 2002 5
Consolidated Statements of Cash Flows-for the three
months ended March 31, 2003, and 2002 6
Notes to Consolidated Financial Statements 7
Item 2. Management's Discussion and Analysis
of Financial Condition and Results
of Operations 9
Item 3. Quantitative and Qualitative Disclosures about Market Risk 11
Item 4. Controls and Procedures 11
Part II: Other Information
Item 4. Submission of Matters to a Vote of Security Holders 12
Item 6. Exhibits and Reports on 8-K 12
Signatures 13
PART I. FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS.
- ------- ---------------------
GULFWEST ENERGY INC.
CONSOLIDATED BALANCE SHEETS
MARCH 31, 2003 AND DECEMBER 31, 2002
ASSETS
March 31, December 31,
2003 2002
(Unaudited) (Audited)
-------------------- --------------------
-------------------- --------------------
CURRENT ASSETS:
Cash and cash equivalents $ 654,178 $ 687,694
Accounts receivable - trade, net of allowance for doubtful
accounts of -0- in 2003 and 2002 2,050,306 1,361,446
Prepaid expenses 249,162 303,906
-------------------- --------------------
Total current assets 2,953,646 2,353,046
-------------------- --------------------
OIL AND GAS PROPERTIES,
using the successful efforts method of accounting 57,056,426 56,786,043
OTHER PROPERTY AND EQUIPMENT 2,121,410 2,121,410
Less accumulated depreciation, depletion,
and amortization (9,048,675) (8,498,497)
-------------------- --------------------
Net oil and gas properties and
other property and equipment 50,129,161 50,408,956
-------------------- --------------------
OTHER ASSETS
Deposits 37,442 37,442
Debt issue cost, net 235,731 289,497
-------------------- --------------------
Total other assets 273,173 326,939
-------------------- --------------------
TOTAL ASSETS $ 53,355,980 $ 53,088,941
==================== ====================
The Notes to Consolidated Financial Statements are an integral part of these statements.
3
GULFWEST ENERGY INC.
CONSOLIDATED BALANCE SHEETS
MARCH 31, 2003 AND DECEMBER 31, 2002
LIABILITIES AND STOCKHOLDERS' EQUITY
March 31, December 31,
2003 2002
(Unaudited) (Audited)
-------------------- --------------------
-------------------- --------------------
CURRENT LIABILITIES
Notes payable $ 5,229,111 $ 4,936,088
Notes payable - related parties 1,290,000 1,290,000
Current portion of long-term debt 32,955,523 33,128,447
Current portion of long-term debt - related parties 197,307 256,967
Accounts payable - trade 4,048,552 3,928,477
Accrued expenses 440,394 458,587
-------------------- --------------------
Total current liabilities 44,160,887 43,998,566
-------------------- --------------------
NONCURRENT LIABILITIES
Long-term debt, net of current portion 115,223 126,552
Long-term debt, related parties 11,256
-------------------- --------------------
Total noncurrent liabilities 115,223 137,808
-------------------- --------------------
OTHER LIABILITIES
Derivative instruments 1,110,137 1,128,993
-------------------- --------------------
COMMITMENTS AND CONTINGENCIES
STOCKHOLDERS' EQUITY
Preferred stock 170 170
Common stock 18,493 18,493
Additional paid-in capital 28,283,712 28,258,212
Retained deficit (20,332,642) (20,453,301)
-------------------- --------------------
Total stockholders' equity 7,969,733 7,823,574
-------------------- --------------------
TOTAL LIABILITIES AND
STOCKHOLDERS' EQUITY $ 53,355,980 $ 53,088,941
==================== ====================
The Notes to Consolidated Financial Statements are an integral part of these statements.
4
GULFWEST ENERGY INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
FOR THE THREE MONTHS ENDED MARCH 31, 2003 AND 2002
(UNAUDITED)
2003 2002
------------------- --------------------
OPERATING REVENUES
Oil and gas sales $ 3,204,863 $ 2,526,242
Well servicing revenues 12,122
Operating overhead and other income 45,740 110,509
------------------- --------------------
Total operating revenues 3,250,603 2,648,873
------------------- --------------------
OPERATING EXPENSES
Lease operating expenses 1,369,935 1,376,683
Cost of well servicing operations 18,561
Depreciation, depletion and amortization 603,944 606,641
General and administrative 414,041 407,076
------------------- --------------------
Total operating expenses 2,387,920 2,408,961
------------------- --------------------
INCOME FROM OPERATIONS 862,683 239,912
------------------- --------------------
OTHER INCOME AND EXPENSE
Interest expense (760,880) (691,875)
Gain on sale of assets 11,061
Unrealized gain (loss) on derivative instruments 18,856 (1,494,983)
------------------- --------------------
Total other income and expense (742,024) (2,175,797)
------------------- --------------------
INCOME (LOSS) BEFORE INCOME TAXES 120,659 (1,935,885)
INCOME TAXES
------------------- --------------------
NET INCOME (LOSS) 120,659 (1,935,885)
DIVIDENDS ON PREFERRED STOCK
(PAID 2003 - 0; 2002 - $28,125) (28,125)
------------------- --------------------
NET INCOME (LOSS) AVAILABLE TO COMMON
SHAREHOLDERS $ 120,659 $ (1,964,010)
=================== ====================
NET INCOME (LOSS) PER COMMON SHARE,
BASIC AND DILUTED $ .01 $ (.11)
=================== ====================
The Notes to Consolidated Financial Statements are an integral part of these statements.
5
GULFWEST ENERGY INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE THREE MONTHS ENDED MARCH 31, 2003 AND 2002
(UNAUDITED)
2003 2002
------------------- --------------------
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income (loss) $ 120,659 $ (1,935,885)
Adjustments to reconcile net income (loss) to net cash
provided by (used in) operating activities:
Depreciation, depletion, and amortization 603,944 606,641
Warrants issued and charged to operations 25,500
Gain on sale of assets (11,061)
Unrealized (gain) loss on derivative instruments (18,856) 1,494,983
(Increase) decrease in accounts receivable - trade, net (688,860) (121,624)
(Increase) decrease in prepaid expenses 54,744 (197,608)
Increase in accounts payable and accrued expenses 101,882 743,772
------------------- --------------------
Cash provided by operating activities 199,013 579,218
------------------- --------------------
CASH FLOWS FROM INVESTING ACTIVITIES:
Proceeds from sale of property and equipment 668,247
Purchase of property and equipment (270,383) (712,025)
------------------- --------------------
Net cash used in investing activities (270,383) (43,778
------------------- --------------------
CASH FLOWS FROM FINANCING ACTIVITIES:
Payments on debt (262,146) (1,126,856)
Proceeds from debt issuance 300,000 461,918
Dividends paid (28,125)
------------------- --------------------
Net cash provided by (used in) financing activities 37,854 (693,063)
------------------- --------------------
DECREASE IN CASH AND CASH EQUIVALENTS (33,516) (157,623)
CASH AND CASH EQUIVALENTS, beginning of period 687,694 689,030
------------------- --------------------
CASH AND CASH EQUIVALENTS, end of period $ 654,178 $ 531,407
=================== ====================
CASH PAID FOR INTEREST $ 548,641 $ 688,856
=================== ====================
The Notes to Consolidated Financial Statements are an integral part of these statements.
6
GULFWEST ENERGY INC. AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
MARCH 31, 2003 AND 2002
(UNAUDITED)
1. During interim periods, we follow the accounting policies set forth in our
Annual Report on Form 10-K filed with the Securities and Exchange
Commission. Users of financial information produced for interim periods are
encouraged to refer to the footnotes contained in the Annual Report when
reviewing interim financial results.
2. The accompanying financial statements include the Company and its
wholly-owned subsidiaries: RigWest Well Service, Inc. formed September 5,
1996; GulfWest Texas Company formed September 23, 1996; DutchWest Oil
Company formed July 28, 1997; Southeast Texas Oil and Gas Company, L.L.C.
acquired September 1, 1998; SETEX Oil and Gas Company formed August 11,
1998; GulfWest Oil and Gas Company formed February 8, 1999; LTW Pipeline
Co. formed April 19, 1999; GulfWest Development Company formed November 9,
2000; and, GulfWest Oil and Gas Company (Louisiana) LLC formed July 31,
2001. All material intercompany transactions and balances are eliminated
upon consolidation.
3. In management's opinion, the accompanying interim financial statements
contain all material adjustments, consisting only of normal recurring
adjustments necessary to present fairly the financial condition, the
results of operations, and the cash flows of GulfWest Energy Inc. for the
interim periods.
4. Non-cash Investing and Financing Activities
During the three month period ended March 31, 2002, we acquired $48,224 of
other property and equipment through notes payable to financial
institutions. We also acquired $182,742 of oil producing properties in
exchange of accounts receivable from a related party.
5. As a result of a financing agreement with an energy lender, we were
required to enter into an oil and gas hedging agreement with the lender. It
has been determined this agreement meets the definition of SFAS 133
"Accounting for Derivative Instruments and Hedging Activities" and is
accounted for as a derivative instrument.
We entered into the agreement, commencing in May 2000, to hedge a portion
of our oil and gas sales for the period of May 2000 through April 2004. The
agreement calls for initial volumes of 7,900 barrels of oil and 52,400 Mcf
of gas per month, declining monthly thereafter. We entered into a second
agreement with the energy lender, commencing September 2001, to hedge an
additional portion of our oil and gas sales for the periods of September
2001 through July 2004 and September 2001 through December 2002,
respectively. The agreement calls for initial volumes of 15,000 barrels of
oil and 50,000 Mmbtu of gas per month, declining monthly thereafter. As a
result of these agreements, we realized a reduction in revenues of $560,378
for the three-month period ended March 31, 2003 and an increase in revenues
of $251,200 for the three-month period ended March 31, 2002, which is
included in oil and gas sales.
The estimated change in fair value of the derivatives is reported in Other
Income and Expense as unrealized (gain) loss on derivative instruments. The
estimated fair value of the derivatives is reported in Other Assets (or
Other Liabilities) as derivative instruments.
7
6. Stock Based Compensation
In October 1995, SFAS No. 123, "Stock Based Compensation," (SFAS 123) was
issued. This statement requires that we choose between two different
methods of accounting for stock options and warrants. The statement defines
a fair-value-based method of accounting for stock options and warrants but
allows an entity to continue to measure compensation cost for stock options
and warrants using the accounting prescribed by APB Opinion No. 25 (APB
25), "Accounting for Stock Issued to Employees." Use of the APB 25
accounting method results in no compensation cost being recognized if
options are granted at an exercise price at the current market value of the
stock or higher. We will continue to use the intrinsic value method under
APB 25 but are required by SFAS 123 to make pro forma disclosures of net
income (loss) and earnings (loss) per share as if the fair value method had
been applied in its 2003 and 2002 financial statements.
There were no options or warrants issued as stock-based employee
compensation in the three month period ended March 31, 2003 and 2002.
7. As shown in the financial statements, we had a working capital deficiency
of $41,207,200 at March 31, 2003 and $41,645,520 for the year ended
December 31, 2003. This and other conditions raise substantial doubt about
our ability to continue as a going concern.
8
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
OF OPERATIONS
------------------------------------------------------------------------
Overview
- --------
We are engaged primarily in the acquisition, development, exploitation,
exploration and production of crude oil and natural gas. Our focus is on
increasing production from our existing properties through further exploitation,
development and exploration, and on acquiring additional interests in crude oil
and natural gas properties. Our gross revenues are derived from the following
sources:
1. Oil and gas sales that are proceeds from the sale of crude oil and
natural gas production to midstream purchasers;
2. Operating overhead and other income that consists of earnings from
operating crude oil and natural gas properties for other working
interest owners, and marketing and transporting natural gas. This also
includes earnings from other miscellaneous activities.
3. Well servicing revenues that are earnings from the operation of well
servicing equipment under contract to third party operators.
Results of Operations
- ---------------------
The factors which most significantly affect our results of operations are
(1) the sales price of crude oil and natural gas, (2) the level of total sales
volumes of crude oil and natural gas, (3) depletion and depreciation of oil and
gas property costs and related equipment, (4) the level of and interest rates on
borrowings and, (5) the level and success of new acquisitions and development of
existing properties.
Comparative results of operations for the periods indicated are discussed below.
Three-Month Period Ended March 31, 2003 compared to Three Month Period Ended
March 31, 2002.
Revenues
Oil and Gas Sales. Revenues from the sale of crude oil and natural gas for
the first quarter increased 27% from $2,526,200 in 2002 to $3,204,900 in 2003.
This was due to a significant increase in oil and gas prices, which offset a
decrease in volume.
Operating Overhead and Other Income. Revenues from these activities
decreased 59% from $110,500 in 2002 to $45,700 in 2003, due primarily to the
expiration of a natural gas marketing contract.
Costs and Expenses
Lease Operating Expenses. Lease operating expenses decreased less than 1%
from $1,376,700 in 2002 to $1,369,900 in 2003.
Depreciation, Depletion and Amortization (DD and A). DD and A increased
less than 1% from $606,600 in 2002 to $603,900 in 2003.
General and Administrative (G and A) Expenses. Our G and A expenses
increased 2% from $407,100 in 2002 to $414,000 in 2003.
9
Interest Expense. Interest expense increased 10% from $691,900 in 2002 to
$760,900 in 2003, primarily due to increased debt for funding of capital
development projects.
Financial Condition and Capital Resources
- -----------------------------------------
At March 31, 2003, our current liabilities exceeded our current assets by
$41,207,200, as almost all of our debt in this quarter is now classified as
short term. To address this, we are currently negotiating with various financial
institutions to refinance our debt, as well as provide funds for our $6.4
million capital development plan for 2003. As part of our financing effort, on
February 28, 2003, we entered into an agreement with our major lender to buy-out
its loan, which has a current balance of $27.9 million, for a cash payment of
$20 million. The agreement expires on May 29, 2003 and should we not close the
transaction by that date, we will, within thirty days, issue to the lender $1
million of preferred stock convertible to common stock at $1.00 per share.
During the first quarter of 2003, we had net income of $120,700 compared to
a net loss of $1,964,000 for the period in 2002. We sold 61,209 barrels of crude
oil and 317,547 Mcf of natural gas compared to 78,360 barrels of crude oil and
357,519 Mcf of natural gas in the first quarter of 2002. Revenue for crude oil
sales for the quarter was $1,501,723 in 2003 compared to $1,520,289 in 2002 and
for natural gas sales was $1,703,140 in 2003 compared to $1,005,953 in 2002. Oil
and natural gas sales volumes were lower due to the natural decline of
production in a few fields, and the lack of funding for development activity to
increase production.
10
ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
- ------- ----------------------------------------------------------
The following market rate disclosures should be read in conjunction with
the quantitative disclosures about market risk contained in the Company's 2002
annual report on Form 10-K, as well as with the consolidated financial
statements and notes thereto included in this quarterly report on Form 10-Q.
All of the Company's financial instruments are for purposes other than
trading. The Company only enters derivative financial instruments in conjunction
with its oil and gas hedging activities.
Hypothetical changes in interest rates and prices chosen for the following
stimulated sensitivity effects are considered to be reasonably possible
near-term changes generally based on consideration of past fluctuations for each
risk category. It is not possible to accurately predict future changes in
interest rates and product prices. Accordingly, these hypothetical changes may
not be an indicator of probable future fluctuations.
Interest Rate Risk
The Company is exposed to interest rate risk on debt with variable interest
rates. At March 31, 2003, the Company carried variable rate debt of $37,425,617.
Assuming a one percentage point change at March 31, 2003 on the Company's
variable rate debt, the annual pretax income would change by $374,256.
Commodity Price Risk
The Company hedges a portion of its price risks associated with its oil and
natural gas sales which are classified as derivative instruments. As of March
31, 2003, these derivative instruments' liabilities had a fair value of
$1,110,137. A hypothetical change in oil and gas prices could have an effect on
oil and gas futures prices, which are used to estimate the fair value of our
derivative instrument. However, it is not practicable to estimate the resultant
change, in any, in the fair value of our derivative instrument.
ITEM 4. CONTROLS AND PROCEDURES
- ------- -----------------------
Based on an evaluation of the Company's disclosure controls and procedures
performed by the Company's management within 90 days of the filing date of this
report, the Company's Chief Executive Officer and Chief Financial Officer
believe that the Company has appropriate disclosure controls and procedures to
ensure that information required to be disclosed by the Company in its periodic
reports is recorded, processed, summarized and reported within the time periods
specified in the rules and forms of the Securities and Exchange Commission.
Since the date of such evaluation, there have been no significant changes
in the Company's internal controls or in other factors that could significantly
affect these controls, including any corrective actions with regard to
significant deficiencies and material weaknesses.
11
PART II. OTHER INFORMATION
ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.
- ------- ----------------------------------------------------
No matter was submitted to a vote of our security holders during the
first quarter.
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K.
- ------- ---------------------------------
(a) Exhibits -
Number Description
------ -----------
*3.1 Articles of Incorporation of the Registrant and
Amendments thereto.
*3.2 Bylaws of the Registrant.
#10.1 GulfWest Oil Company 1994 Stock Option and
Compensation Plan, amended and restated as of
April 15, 1998 and approved by the shareholders on
May 28, 1998.
---------------
* Previously filed with the Company's Registration
Statement (on Form S-1, Reg. No. 33-53526),
filed with the Commission on October 21, 1992.
# Previously filed with the Company's Definitive
Proxy Statement dated April 24, 1998, filed
with the Commission on April 24, 1998.
(b) Form 8-K -
None.
12
SIGNATURES
Pursuant to the requirements of Securities Exchange Act of 1934, the registrant
has duly caused this report to be signed on its behalf by the undersigned
thereunto duly authorized.
GULFWEST ENERGY INC.
(Registrant)
Date: May 13, 2003 By: /s/ Thomas R. Kaetzer
---------------------------------
Thomas R. Kaetzer
President
Date: May 13, 2003 By: /s/ Jim C. Bigham
---------------------------------
Jim C. Bigham
Executive Vice President
and Secretary
Date: May 13, 2003 By: /s/ Richard L. Creel
---------------------------------
Richard L. Creel
Vice President of Finance
13
CERTIFICATIONS
I, Thomas R. Kaetzer, certify that:
1. I have reviewed this amended quarterly report on Form 10-Q of GulfWest
Energy Inc.;
2. Based on my knowledge, this quarterly report does not contain any
untrue statement of a material fact or omit to state a material fact
necessary to make the statements made, in light of the circumstances
under which such statements were made, not misleading with respect to
the period covered by this quarterly report;
3. Based on my knowledge, the financial statements, and other financial
information included in this quarterly report, fairly present in all
material respects the financial condition, results of operations and
cash flows of the registrant as of, and for, the periods presented in
this quarterly report;
4. The registrant's other certifying officers and I are responsible for
establishing and maintaining disclosure controls and procedures (as
defined in Exchange Act Rules 13a-14 and 15d-14) for the registrant
and have:
a) designed such disclosure controls and procedures to ensure that
material information relating to the registrant, including its
consolidated subsidiaries, is made known to us by others within
those entities, particularly during the period in which this
quarterly report is being prepared;
b) evaluated the effectiveness of the registrant's disclosure
controls and procedures as of a date within 90 days prior to the
filing date of this quarterly report (the "Evaluation Date"); and
c) presented in this quarterly report our conclusions about the
effectiveness of the disclosure controls and procedures based on
our evaluation as of the Evaluation Date.
5. The registrant's other certifying officers and I have disclosed, based
on our most recent evaluation, to the registrant's auditors and the
audit committee of registrant's board of directors (or persons
performing the equivalent functions):
a) all significant deficiencies in the design or operation of
internal controls which could adversely affect the registrant's
ability to record, process, summarize and report financial data
and have identified for the registrant's auditors any material
weaknesses in internal controls; and
b) any fraud, whether or not material, that involves management or
other employees who have a significant role in the registrant's
internal controls; and
i
6. The registrant's other certifying officers and I have indicated in
this quarterly report whether there were significant changes in
internal controls or in other factors that could significantly affect
internal controls subsequent to the date of our most recent
evaluation, including any corrective actions with regard to
significant deficiencies and material weaknesses.
Date: May 13, 2003
/s/ Thomas R. Kaetzer
-----------------------------------
Thomas R. Kaetzer
President and Chief Executive Officer
ii
CERTIFICATIONS
I, Richard L. Creel, certify that:
1. I have reviewed this amended quarterly report on Form 10-Q of GulfWest
Energy Inc.;
2. Based on my knowledge, this quarterly report does not contain any
untrue statement of a material fact or omit to state a material fact
necessary to make the statements made, in light of the circumstances
under which such statements were made, not misleading with respect to
the period covered by this quarterly report;
3. Based on my knowledge, the financial statements, and other financial
information included in this quarterly report, fairly present in all
material respects the financial condition, results of operations and
cash flows of the registrant as of, and for, the periods presented in
this quarterly report;
4. The registrant's other certifying officers and I are responsible for
establishing and maintaining disclosure controls and procedures (as
defined in Exchange Act Rules 13a-14 and 15d-14) for the registrant
and have:
a) designed such disclosure controls and procedures to ensure that
material information relating to the registrant, including its
consolidated subsidiaries, is made known to us by others within
those entities, particularly during the period in which this
quarterly report is being prepared;
b) evaluated the effectiveness of the registrant's disclosure
controls and procedures as of a date within 90 days prior to the
filing date of this quarterly report (the "Evaluation Date"); and
c) presented in this quarterly report our conclusions about the
effectiveness of the disclosure controls and procedures based on
our evaluation as of the Evaluation Date.
5. The registrant's other certifying officers and I have disclosed, based
on our most recent evaluation, to the registrant's auditors and the
audit committee of registrant's board of directors (or persons
performing the equivalent functions):
a) all significant deficiencies in the design or operation of
internal controls which could adversely affect the registrant's
ability to record, process, summarize and report financial data
and have identified for the registrant's auditors any material
weaknesses in internal controls; and
b) any fraud, whether or not material, that involves management or
other employees who have a significant role in the registrant's
internal controls; and
i
6. The registrant's other certifying officers and I have indicated
in this quarterly report whether there were significant changes
in internal controls or in other factors that could significantly
affect internal controls subsequent to the date of our most
recent evaluation, including any corrective actions with regard
to significant deficiencies and material weaknesses.
Date: May 13, 2003
/s/ Richard L. Creel
-----------------------------------
Richard L. Creel
Vice President of Finance
ii
May 13, 2003
Securities and Exchange Commission
450 Fifth Street, N.W.
Washington, D.C. 20549
Re: Certification Required Under Section 906 of Sarbanes-Oxley Act of 2002
In connection with the accompanying report on Form 10-Q for the period ended
March 31, 2003, and filed with the Securities and Exchange Commission on the
date hereof (the "Report"), We, Thomas R. Kaetzer, President and CEO of GulfWest
Energy Inc. (the "Company"), and Richard L. Creel, Vice President of Finance of
the Company hereby certify that:
1. The report fully complies with the requirements of Section 13(a) or
15(d) of the Securities Exchange Act of 1934; and
2. The information contained in the Report fairly presents, in all
material respects, the financial condition and results of operations
of the Company.
GulfWest Energy Inc.
/s/ Thomas R. Kaetzer
- ------------------------------------
By: Thomas R. Kaetzer
President and Chief Executive Officer
/s/ Richard L. Creel
- ------------------------------------
By: Richard L. Creel
Vice President of Finance