U.S. SECURITIES AND EXCHANGE COMMISSION


Washington, D.C. 20549





**FORM 10-KSB**


[X] ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d)


OF THE SECURITIES EXCHANGE ACT OF 1934





**FOR THE FISCAL YEAR ENDED DECEMBER 31, 2004**


(Unaudited)


or


[ ] TRANSITION REPORT UNDER SECTION 13 OR 15(d)


OF THE SECURITIES EXCHANGE ACT OF 1934





COMMISSION FILE NO. 0-4686





**HIKO BELL MINING & OIL COMPANY**


(Name of small business issuer in its charter)





Utah
87-0267432(state of incorporation)
(IRS Employer I.D. Number)


P.O. Box 1845, 1635E. 1500S. Vernal, UT 84078





Securities registered under Section 12(g) of the Exchange Act:





Common Stock $0.01 par value


(Title of class)





Over-the Counter (Pink Sheets)


(Name of each exchange on which registered)





Check whether the issuer (1) filed all reports required to be filed by Section 13 or 15(d) of the Exchange Act during the past 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 [ ]





State the aggregate market value of the voting and non-voting common equity held by non-affiliates computed by reference to the price at which the common equity was sold, or the average bid and asked price of such common equity, as of a specified date within the past 60 days prior to the date of filing: $711,343.










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**ITEM 1: BUSINESS**





A. General Description of Business





Hiko Bell Mining & Oil Company (registrant) is a Utah corporation organized in 1942 to mine tungsten for the World War II strategic metals plan on an 80 acre tract of patented land which the Company still owns, located in northwestern Box Elder County, Utah. The principal business of the registrant is exploring for, developing and producing oil, gas and minerals, including the acquisition of leases, farmouts, mining properties or other valuable mineral lands. Registrants current portfolio is more fully described in ITEM 3 hereafter.





Registrants source of the properties is state lease, federal oil and gas leases and fee (patented) lands, principally in the Rocky Mountain area.





Initial development of an oil and gas or mining prospect originates within the geologic department. The feasibility of acquiring such lands is checked in state land offices, county court houses, with the Bureau of Land Management and other governmental agencies. Management then works up the economic viability of the project with an Authority for Expenditure (AFE). If the economics are favorable and the acreage is available, a review is made of the costs of acquisition, of geologic and geophysical work, the cost of the drilling or exploration work, the cost of completion of putting into production and the current and future market conditions. If all of these varied factors are favorable, the plan is then approached from the standpoint of funding the project.





All of the above operations are conducted by registrant and require various degrees of skill, knowledge and experience, combined with a high degree of group effort and motivation.





B. Competition





Registrant operates in a highly competitive industry where success is dependent upon the ability to generate excellent projects which are financially within the limits and range of registrant, to move quickly and decisively and to obtain the required financing and follow the project through from beginning to end. Management is fortunate in having a highly motivated staff with more than 75 years of combined industry experience.





C. Patents and Trademarks





Although registrant has no material patents or trademarks or concessions, it does have all of the required business licenses, bonds and permits necessary to carry out its various functions.





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D. Environmental Regulations





In the course of the development of oil, gas or mining projects, the registrant works closely with all of the appropriate governmental agencies which have jurisdiction on lands where development is to occur. All guidelines are laid down by these agencies and are adhered to in the regular course of business.





E. Financial Information About Foreign and Domestic Operations and Export Sales





All Sales are domestic and are located within the western United States. For financial information regarding this geographic area see ITEM 2 (B) of this report.





F. Number of Employees





The number of full time employees of registrant averaged three (3) during this reporting period.





G. Business Done and Intended to be Done by Registrant





Registrant is primarily in the oil, gas and mining business. The Company works up and develops oil and gas exploration projects for development. Most of the registrants mining projects have been developed on company owned property. Oil and gas exploration in the United States, onshore, has been at a low ebb during the past four years, due in part to the drastic decrease in oil and gas prices. This has now turned around, with oil recently maintaining a price of around $28.50 per barrel from a low of $15.40 several years ago. The price paid per thousand cubic feet of natural gas has risen to $5.15 per MCF in the Uintah Basin. This price increase will enable registrant to rework its Dirty Devil 22-27 well and get it back into production, increasing cash flow. The Company is working on an Agreement to sell part of its working interest in the Dirty Devil 22-27 for funding sufficient to pay its share of the cost of new 22X-27. Further exploration work will be done on the companys placer gold claims, now that the price of gold has risen to over $420 per ounce.





In 2005, Hiko Bell and officers of the company will concentrate on increasing revenue and profits by drilling the newly staked and surveyed Dirty Devil 22X-27 well and completing it as a producing as well; and through the drilling and the completion of the nine additional gas wells needed to fully develop this 400-acre lease on 40-acre spacing. A deep test is planned during 2005, to prove up the potential gas reserves of the Dakota, Morrison, Curtis and Entrada formations at a depth of 16,000 feet.





3


**ITEM 2: PROPERTIES**





A. Mining Properties





UTAH: Box Elder County. Registrant owns 80 acres of patented land located in the Grouse Creek Mountains of Northwestern Utah in Box Elder County. This property was the reason for the founding of Strategic Minerals, Inc., the original name of the Company prior to the time when the name was changed to Hiko Bell Mining & Oil Company. The Company was founded in 1942. The property contains potential for the mining of tungsten.


UTAH: Uintah County. Registrant owns 10 placer mining claims located along the Green River in northeastern Utah, 8 miles northeast of the town of Jensen. The claims are accessible year round by a gravel road that is maintained by Uintah County. The gold content of the gravels range from .05 to .08 ounce per ton. The gravels on the property have been calculated to contain 2.5 million ounces of gold in the 20 million cubic yards of material. The ore also contains an estimated 25 million ounces of silver. Engineering data indicates that the average value of the ore, screened to a minus 1⁄4 is $121.46 per ton, using the price of gold at $380 per ounce. The cost of mining, concentrating and refining, using that parameter, is estimated to be $32.25/ton. This would give the operation a net profit of $89.20/ton, before taxes. Based on a 2500 ton per day operation, utilizing 300 working days per year, annual pre-tax revenue should be around $40,000,000. Estimated plant and equipment costs are $8,360,000.





The economic feasibility of the project should be preceded with a bench scale model to determine the economic viability of a large-scale operation. The efficiency of the four gold recovery process will be the determining factor as to whether or not the project will be economically viable, a factor yet to be determined. Technical and environmental studies will have to be conducted. The plans will have to be submitted to the Bureau of Land Management, the State of Utah Geological Survey, the state Office of Water Quality and other appropriate governmental agencies for approval, before mining operations can be undertaken. The time frame for this work is estimated to be one year at an estimated cost of $350,000, including Federal and State environmental bonding.





B. Oil & Gas Properties





UTAH: Uintah County. Registrant owns the Dirty Devil 22-27 gas well which can be recompleted since the production casing has parted at 2600 feet and the well had to be plugged and abandoned. A new well application was filed and approved by the BLM in December, 2004. Drilling should be under way the Second Quarter of the year to begin development of the 11.2 billion cubic feet of proved and probable proved gas under the 400-acre lease.





4


UTAH: Uintah County. Registrant has a three (3) percent working interest in 6,118.93 acres in the Eight Mile Flat oil field in western Uintah County, Utah. The leases are in Township 9 South - Range 18 East and the operator is Inland Production Company. Two oil wells are drilled and completed on the leases. They have been shut in until recently. With the acquisition of these leases by Newfield Production, gas and oil development will not be undertaken in the Eight Mile Flat Field.





**ITEM 3: LEGAL PROCEDURES**





None.





**ITEM 4: SUBMISSION OF MATTERS TO VOTE OF SECURITY HOLDERS**





None.





**ITEM 5: MARKET FOR REGISTRANTS COMMON STOCK & RELATED SECURITY HOLDERS**





YEAR
FIRST
SECOND
THIRD
FOURTH2001 High
.01
.01
.01
.012001 Low
.005
.005
.005
.0052002 High
.01
.01
.01
.012002 Low
.005
.005
.005
.0052003 High
.01
.01
.02
.052003 Low
.005
.005
.01
.022004 High
.02
.02
.04
.062004 Low
.01
.01
.02
.02


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**ITEM 6: SELECTED FINANCIAL DATA FOR THE YEAR ENDING DECEMBER 31**





2004

2003

2002

2001

2000

1999OperatingRevenue


5,704


42,621


20,875


22,757


9,170


7,530Net Income(Loss)


(46,544
)

(81,986
)

(3,639
)

(5,268
)

(15,705
)

3,725Earnings(loss)


(.00184
)

(.00012
)

(.00025
)

(.00023
)

(.00015
)

.0001Total Assets

$
711,343

$
567,077

$
740,389

$
726,452

$
740,657

$
722,810





**ITEM 7: MANAGEMENTS DISCUSSION & ANALYSIS OF STATEMENT OF OPERATIONS**





No significant changes in the accounting procedures of the Company have been made during the past year in registrants methods of operations. Registrants principal source of income was the Companys Dirty Devil 22-27 gas well. Hiko Bell was shut in, in 1986, due to a problem with water incursion that flooded the production casing bore, resulting in the natural gas flow being shut off. Analysis of the water indicated that it was fresh, cold and contained flecks of gilsonite. These data were proof that the water flow was coming from the basal sands of the Uinta formation oat a depth of from 1,000 to 1,400 feet uphole.





Hiko Bells Chief Executive officer, Craig Caldwell, an experienced well completion engineer, originally felt that the cement job between the casing and the well bore had broken and thus no longer sealed off surface waters. Two re-completion attempts were made in the period 1987 and in 1990 to swab the well to deplete the water and bring on the gas, but both were unsuccessful. Registrant had calculated an AFE (Authority for Expenditure) for the required rework to shut off the uphole water inflow to be $191,000. The Company had been financially strapped for funds in trying to recover from a very long and expensive lawsuit on the will. This lawsuit stripped the registrant of its patented Montana and Nevada mining properties and a large block of treasure stock. Registrant did not have the funds to put the well back into production until September of 2003. The Board of Directors sold a 50% Working Interest to Curton Capital Corporation, Dallas, Texas.




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A workover rig was moved over the wells and the reworking began with the pulling of the production tubing. Workover operations enabled the consulting engineer to determine that there was a large hole in the production casing that was not capable of being repaired so the well had to be plugged and abandoned. Despite the fact that there was over 3,000 feet of water in the casing, the gas was blowing out, spraying gas and water all over the location and the well. Mr. Caldwell told Mr. Covington that the well just didnt want to die. An offset well has been staked and surveyed. An application for Permit to drill has been submitted to the BLM for approval. An on-site inspection by the BLM has been completed as of this date. Drilling the new production well to tap the five gas zones that were gas productive in the plugged well should be commenced in late May or early June, depending upon rig availability and on obtaining the financing for the drilling and completion. The AFE cost for this is estimated at $843,714.
 
 Registrant already has a tie into the main Questar natural Gas pipeline which crossed the north end of the lease. With the present price of $5.25 per thousand cubic feet of gas, and with daily gas production for the new well estimated at 500MCG/day, monthly Net Revenue to be 100% working interest should be about $100,000 per month for a 12-month payback of the investment. Hiko Bells share of production from this and the other nine wells that can be drilled on the lease should give it a substantial monthly revenue in the coming years.


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**ITEM 8: FINANCIAL STATEMENTS AND SUPPLEMENTAL DATA**





Consolidated Balance Sheet for the year ended


December 31, 2004 and 2003 (unaudited)


Statement of Operation and Retained Earnings


for the year ended December 31,


2004 and 2003 (unaudited)


Notes to Financial Statements (unaudited)







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**HIKO BELL MINING & OIL COMPANY**


Consolidated Balance Sheet


Unaudited








For the year ended December 31:

2004

2003Current AssetsCash

$
9,048

$
47,567Current Receivables LessAllowance for Bad Debt


114,475


88,874Investments


209,592


62,408Other Assets


52,054


42,054TOTAL


385,169


240,903Properties, Building & EquipmentAssigned Non-producing Leases


6,690


6,690Assigned Producing Leases


21,875


21,875Producing Gas & Oil Properties


188,944


188,944Non-producing Gas & Oil Leases


49,162


49,162Working Interest


21,383


21,383Mining Property


38,120


38,120TOTAL


326,174


326,174TOTAL ASSETS

$
711,343

$
567,077




Note: Oil and gas leases and Working Interest were reevaluated in 2004, partially based upon the sale of 50% Working Interest in SL 071725-C in the Dirty Devil Gas Field and in part upon reevaluation of the other leases.


8


**HIKO BELL MINING & OIL COMPANY**


Consolidated Balance Sheet (continued)


Unaudited







For the year ended December 31:

2004

2003Current LiabilitiesAccounts Payable

$
13,652

$
16,864Property & Other Taxes


-


-Royalty Payments


12,034


9,424Notes Payable


86,200


86,200Related Parties


4,693


4,693TOTAL


116,579


117,181Stockholders EquityCommon Stock, 25,000,000Authorized $.01 par value


248,872


222,229Capital paid in excess of par value


3,258,560


3,093,791Retained Earning (deficit)


(2,912,668
)

(2,866,124
)TOTAL


594,764


449,896TOTAL LIABILITY AND SHAREHOLDERS EQUITY

$
711,343

$
567,077


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**HIKO BELL MINING & OIL COMPANY**


Statement of Operations and Retained Earnings


Unaudited











For the year ended December 31:

2004

2003INCOMEConsulting Income

$
4,725

$
-Production Income


1,039


42,621TOTAL


5,764


42,621EXPENSESOperating Costs


52,308


116,551Depreciation & Depletion


-


-Interest


-


539TOTAL


52,308


117,090Income (loss) Before Taxes


(46,544
)

(74,469
)Net Income (loss)

$
(46,544
)
$
(74,469
)Retained Earnings (deficit)

$
(2,912,668
)
$
(2,866,124
)Income (loss) per share

$
(0.00184
)
$
(0.00012
)





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**ITEM 9: DISAGREEMENT OF ACCOUNTING AND FINANCIAL DISCLOSURES**





None.





**ITEM 10: DIRECTORS AND EXECUTIVE OFFICERS**





A and B.





Name and Address
Title
Office TermCraig Caldwell
Chief Executive Officer
Until next stockholders meeting1273 South 1500 East
President
President since 1964Vernal, UT 84078
DirectorJames C. Caldwell
Vice President
Until next stockholders meeting1835 North 1500 East
Director
Vice President since 1986Vernal, UT 84078Robert E. Covington
Secretary/Treasurer
Until next stockholders meeting45 North 200 West
Director
Secretary/Treasurer since 1964Vernal, UT 84078





None of the above was selected pursuant to any arrangements or understanding between him and any other person.





C. Identification of Certain Significant Employees





None.





D. Resume of Experience





The professional work experience of the three officers of registrant have a combined total, in the oil, gas and mining business of more than 70 years.





Craig Caldwell, President, has been in the oil and gas business since 1952. He started in leasing and trading minerals and leases, then in the actual business of drilling, completing and producing gas and oil wells. Craig is highly experienced in making deals, in farmouts and in joint-venture wells and programs of lease and mineral acquisitions. His ability to engineer a project from its inception to completion is outstanding.





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Robert E. Bud Covington is a graduate of the University of Colorado (Class of 1947) with a BA in geology. He did a year of postgraduate work at the Colorado School of Mines in 1948. Since that time he has worked for Phillips Petroleum, Carter Oil Company (Exxon) and many other independents both in the oil and gas business and the mining division. He has written many articles on the geology of the Uinta Basin that have been published in geologic guidebooks of the Rocky Mountain area, especially on bituminous sands, gilsonite and other hydrocarbons that are unique to the Uinta Basin.





Harvey Bryant was elected to the Board of Directors in June, 2002. James C, Caldwell who had been Vice president since 1986, resigned to permit Mr. Bryant to be a Board Member. Mr. Bryant, after serving 18 months as President, resigned the Fourth Quarter of 2003. he lives in Oklahoma city and the work, being mostly in Utah and Colorado, were not convenient for Mr. Bryant and his wife.





James C. Caldwell, who was reelected to the office upon Mr. Bryants resignation has over 10 years experience in the oil business and is an experienced operator of heavy oil field equipment and in oil field location building.





E. Involvement in Certain Legal Proceedings.





None.





**ITEM 11: MANAGEMENTS REMUNERATION AND TRANSACTIONS**





No officer of the Company has received remuneration, salary, stock or other benefits during 2003, or during the last 15 years, except for Harvey Bryant, who received $10,000 and except for the following:





On December 12, 2004,  at a Regular Meeting of the Board of Directors of Hiko Bell  Mining and Oil Company, the Board authorized the issuance of the following shares of Treasury Stock, with the certificates to be stamped and registered with the "Restricted" Notation, to the officers of the Company for their unpaid work for the past 12 years:





Craig Caldwell
President
950,000 sharesJames C. Caldwell
Vice President
750,000 sharesRobert E. Covington
Secretary-Treasurer
950,000 shares





In addition, the Board authorized the Company to pay the following sums, if and when the cash is available, effective as of January 1, 2005:


Craig Caldwell
President and CEO
$75,000James C. Caldwell
Vice President
$25,000Robert E. Covington
Secretary-Treasurer
$50,000




12


Securities or property, insurance or reimbursement of expenses: None.





Aggregate of contingent form of remuneration: None.





Registrant has no retirement plans or other employee benefit plans.





There are not existing plans or arrangements regarding future remuneration payments to officers, directors or significant employees.





**ITEM 12: SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS**





A. The following information is set forth with respect to any person or group who is known to registrant to be beneficial owner of more than five (5) percent of the registrants voting stock:





Title or Class
Name and Address
Amount Owned
Percent of ClassCommon
J. William Powell, Jr.
2,908,900
13.09%166 Bay CourtCross River, NY 10518Common
Craig Caldwell
2,230,000
9.00%1273 South 1500 EastVernal, UT 84078Common
James C. Caldwell
2,092,036
8.00%1835 North 1500 EastVernal, UT 84078Common
Robert E. Covington
2,485,265
10.00%1273 South 1500 EastVernal, UT 84078





B: Security Ownership of Management





Title or Class
Name and Address
Amount
Percent of ClassCommon
Craig Caldwell
2,230,000
9.00%1273 South 1500 EastVernal, UT 84078Common
James C. Caldwell
2,092,036
8.00%1835 North 1500 EastVernal, UT 84078Common
Robert E. Covington
2,485,265
10.00%1273 South 1500 EastVernal, UT 84078


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C. Changes in Control





There are no arrangements known to registrant, including pledges by any person or securities, the operation of which may, at a subsequent date, result in a change of control of registrant.





**ITEM 13: TRANSACTIONS WITH MANAGEMENT AND OTHERS**





None.





**ITEM 14: EXHIBITS, FINANCIAL STATEMENTS AND REPORTS**





Form 10-KSB





A. Financial statements included in this filing: 12/31/2004





B. Financial statements schedules in this filing:





Standardized Measures of discounted Future Net Cash Flow Relating to Proved, recoverable Oil and gas reserves See Item 2: Oil and Gas properties for details.





Natural Gas
MMCF Gross
Hiko Bell ShareDirty Devil 22-27
2.7 BCFG
1.35 BCFG








C. Reports on Form 10-K





None





Additional Information


Registrant transfers its own stock.


Business Address:
Suite 21, 3 West Main StreetVernal, UT 84078Mailing Address:
P.O. Box 1845Vernal, UT 84078Phone: (435) 789-3233Fax: (435) 789-4560





Corporate Counsel:
Hatch, James & Dodge10 West Broadway, Suite 400Slat Lake City, UT 84101Phone: (801) 363-6363


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**SIGNATURES**





In accordance with Section 13 or 15(d) of the Exchange Act, the Registrant caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.


HIKO BELL MINING & OIL COMPANYDate: March 29, 2005
By:
/s/ *Craig Caldwell*Craig CaldwellChief Executive Officer, President





In accordance with the Exchange Act, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.





****Date: March 29, 2005
By:
/s/ *Craig Caldwell*Craig CaldwellPresident and Director


****Date: March 29, 2005
By:
/s/ *Robert E. Covington*Robert E. CovingtonSecretary-Treasurer and Director





**


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