Interesting story here. - HUH? Are you referring to the train wreck shown on the latest financials?:
May 31, 2012 the company had approximately 4,200 holders of record of our common stock.
The good news: the company successfully drilled two wells resulting in revenue of $79k for the year. These two wells have produced 766.3 bbls of oil and have remaining net proven reserves of 24,133 bbls (equivalent).
The bad news:
Outstanding shares exploded yet again from 4.9 million shares (post 1:10 split) to 11.0 million shares (224% increase!).
Operating expenses were $2.6 million, of which $2.2 million was for compensation for the one full time, and one contract employee (must be good work if you can get it!).
Investor Relations costs were $140k - nearly twice the entire net annual revenue of the company ($79k).
Interest expense of nearly $1.1 million
As of March 31, 2012, the Company has accumulated losses of approximately $6,860,000 since inception and has negative working capital of approximately $600,000.
As of March 31, 2012, amounts owed to third parties for services is $96,873.
In July 2011, the Company cancelled the Glaux Agreement and believes that it has no further obligations under this agreement that was to lead to development of prospects in West Texas.
Subsequent events to the above financials:
In April 2012, a shareholder advanced the Company $35,000 in exchange for a convertible note payable due March 31, 2013, bearing interest at 12% and convertible at $0.50 per share. In May 2012, the note was amended to allow for conversion at $0.09 per share [equivalent to 388,889 shares].
In May 2012, the Company completed a private placement of 1,428,981 shares of common stock for net proceeds of approximately $500,000.
In May 2012, the Company made principal payments totaling $12,500 to an officer of the Company on his outstanding convertible note payable.
In May 2012, the Company issued a stock option to the Chairman of the Board to purchase 500,000 shares of the Company’s common stock at a price of $0.10 per share, vesting immediately, with a five year term. The fair market value of the option on the date of grant was $48,348 [translated this option is currently worth $130k net to the COB - almost double the value of the net revenue for all last year]
In May 2012, the Company issued a stock option to the Chief Financial Officer to purchase 200,000 shares of the Company’s common stock at a price of $0.10 per share, vesting as follows: 100,000 shares vest immediately and 100,000 shares vest on January 1, 2013, with a five year term. The fair market value of the option on the date of grant was $19,337 [translated value = $26k immediately plus 100k shares on 1/1/13].
In May 2012, the Company issued 4,206,575 shares of common stock upon the conversion of notes payable and related accrued interest totaling $415,496 and additional consideration of $35,027, for a total of $450,523.
In June 2012, the Company issued 554,105 shares of common stock to a related party upon the conversion of notes payable and related accrued interest totaling $49,869.
In June 2012, the Company acquired the N. Edna field for total consideration of $200,000.
In June 2012, the Company made a payment on a related party payable in the amount of $20,000.
