Nevada | 20-8428738 | |||
(State or other jurisdiction of incorporation or organization) | (IRS Employer Identification Number) | |||
3880 Hulen St., Ste 500, Fort Worth, TX | 76107 |
(Address of principal executive offices) | (Zip Code) |
• | Barnett Shale. Our main area of interest in the Barnett Shale play is located in the "oil window" of the Barnett in southwest Cooke County, Texas. We completed, and began production in the | |
• | Corsicana Enhanced Oil Recovery | |
• | Corsicana deeper zone exploration. We successfully drilled | |
• |
March 31, | March 31, | December 31, | ||||||||||||||||||||||
Years Ending | 2009 | 2008 | 2006 | 2005 | March 31, 2010 | March 31, 2009 | March 31, 2008 | |||||||||||||||||
Production | ||||||||||||||||||||||||
Oil (Bbl) | 45,105 | 33,602 | 34,607 | 8,965 | 23,949 | 45,105 | 33,602 | |||||||||||||||||
Gas (Mcf) | 479,180 | 351,538 | 199,282 | 94,358 | 404,131 | 479,180 | 351,538 | |||||||||||||||||
Revenues | ||||||||||||||||||||||||
Crude Oil | $ | 4,034,376 | $ | 2,704,468 | $ | 1,772,649 | $ | 555,097 | $ | 1,613,235 | $ | 4,034,376 | $ | 2,704,468 | ||||||||||
Gas | 2,523,693 | 2,197,604 | 1,101,642 | 554,102 | 1,406,275 | 2,523,693 | 2,197,604 | |||||||||||||||||
Total | 6,558,069 | 4,902,072 | 2,874,291 | 1,109,199 | 3,019,510 | 6,558,069 | 4,902,072 | |||||||||||||||||
Average Sale Price per Bbl | 89.44 | $ | 80.49 | $ | 51.22 | $ | 61.92 | 67.36 | 89.44 | $ | $80.49 | |||||||||||||
Average Sale Price per MCF | 5.27 | $ | 6.25 | $ | 5.53 | $ | 5.87 | 3.48 | 5.27 | $ | 6.25 | |||||||||||||
Lease Operating Costs (per BOE) | 20.79 | $ | 23.05 | $ | 16.68 | $ | 22.59 | 20.13 | 20.79 | $ | 23.05 | |||||||||||||
Severance Taxes (per BOE) | 3.00 | $ | 3.13 | $ | 2.41 | $ | 2.67 | 1.71 | 3.00 | $ | 3.13 | |||||||||||||
Average Sale Price (per BOE) | 52.48 | $ | 53.17 | $ | 42.38 | $ | 44.92 | 33.07 | 52.48 | $ | 53.17 | |||||||||||||
Average Sale Price (per MCFE) | 8.75 | $ | 8.86 | $ | 7.06 | $ | 7.49 | 5.51 | 8.75 | $ | 8.86 |
• | the domestic and foreign supply of oil and gas; | |
• | the price and availability of alternative fuels; | |
• | weather conditions; | |
• | the level of consumer demand; | |
• | the price of foreign imports; | |
• | world-wide economic conditions; | |
• | political conditions in oil and gas producing regions; and | |
• | domestic and foreign governmental regulations. |
• | injury or loss of life; | |
• | severe damage to or destruction of property, natural resources, and equipment; | |
• | pollution or other environmental damage; | |
• | clean-up responsibilities; | |
• | regulatory investigations and penalties; or | |
• | suspension of operations. |
• | we may be required to dedicate a substantial portion of our cash flows from operations to the payment of our indebtedness, reducing the funds available for our operations; | |
• | a portion of our borrowings are at variable rates of interest, making us vulnerable to increases in interest rates; | |
• | we may be more highly leveraged than some of our competitors, which could place us at a competitive disadvantage; | |
• | our degree of leverage may make us more vulnerable to a downturn in our business or the general economy; | |
• | the terms of our credit arrangements could contain numerous financial and other restrictive covenants; | |
• | our debt level could limit our flexibility in planning for, or reacting to, changes in our business and the industry in which we operate; and | |
• | we may have difficulties borrowing money in the future. |
• | changes in oil and natural gas prices; | |
• | variations in quarterly drilling, re-completions, acquisitions and operating results; | |
• | changes in financial estimates by securities analysts; | |
• | changes in market valuations of comparable companies; | |
• | additions or departures of key personnel; or | |
• | future sales of our stock. |
Estimated Proved Reserves | Barnett Shale | Corsicana Field | E. Texas Field | Total | Barnett Shale | Corsicana Field | Total | |||||||||
Proved Developed (MBOE) | 688 | 187 | 13 | 888 | 392 | 32 | 424 | |||||||||
Proved Undeveloped (MBOE) | 2,072 | 33 | - | 2,105 | 3,446 | 40 | 3,486 | |||||||||
Total Proven Reserves at March 31, 2009 | 2,760 | 220 | 13 | 2,993 | ||||||||||||
Total Proven Reserves at March 31, 2010 | 3,838 | 72 | 3,910 | |||||||||||||
Benchmark Pricing | ||||||||||||||||
Natural Gas per mmbtu | $3.58 | $3.99 | ||||||||||||||
Crude Oil per barrel | $49.65 | $70.03 |
• | customary royalty interests; | |
• | liens incident to operating agreements and for current taxes; | |
• | obligations or duties under applicable laws; | |
• | development obligations under oil and gas leases; or | |
• | burdens such as net profit interests. |
Fiscal 2009 | High | Low | |
30-Jun-09 | $0.51 | $0.06 | |
30-Sep-09 | $0.50 | $0.10 | |
31-Dec-09 | $0.49 | $0.11 | |
31-Mar-10 | $0.39 | $0.08 | |
Fiscal 2009 | High | Low | |
30-Jun-08 | $0.95 | $0.20 | |
30-Sep-08 | $0.74 | $0.20 | |
31-Dec-08 | $0.50 | $0.10 | |
31-Mar-09 | $0.30 | $0.05 |
Fiscal 2009 | High | Low | |
30-Jun-08 | $0.95 | $0.20 | |
30-Sep-08 | $0.74 | $0.20 | |
31-Dec-08 | $0.50 | $0.10 | |
31-Mar-09 | $0.30 | $0.05 | |
Fiscal 2008 | High | Low | |
30-Jun-07 | $1.28 | $1.05 | |
30-Sep-07 | $1.30 | $1.02 | |
31-Dec-07 | $1.42 | $0.80 | |
31-Mar-08 | $1.04 | $0.62 |
Fiscal year ended March 31 | Fiscal year ended March 31 | |||||||||||||||||||||||
In thousands | 2010 | 2011 | 2012 | Thereafter | 2011 | 2012 | 2013 | Thereafter | ||||||||||||||||
Office Lease | $ | 131,000 | $ | - | $ | - | $ | - | $ | 149,270 | $ | - | $ | - | $ | - | ||||||||
Senior Credit Facility | - | - | 9,800,000 | - | 10,800,000 | - | - | - | ||||||||||||||||
Related Party Notes | - | - | - | 3,518,924 | - | - | 3,518,924 | - |
March 31, 2009 | March 31, 2008 | March 31, 2010 | March 31, 2009 | |||||||||||
ASSETS | ||||||||||||||
Current Assets: | ||||||||||||||
Cash | $ | 426,430 | $ | 592,665 | $ | 277,307 | $ | 426,430 | ||||||
Accounts Receivable: | ||||||||||||||
Oil & Gas - Related Party | 337,879 | 868,406 | ||||||||||||
Oil and Gas - Related Party | 639,738 | 337,879 | ||||||||||||
Related Party | 1,107,854 | - | 561,169 | 1,107,854 | ||||||||||
Other | 15,760 | - | - | 15,760 | ||||||||||
Inventory | 7,514 | 4,748 | 130,886 | 7,514 | ||||||||||
Other Current Assets | 6,317 | 13,062 | 248,759 | 6,317 | ||||||||||
Total Current Assets | 1,901,754 | 1,478,881 | 1,857,859 | 1,901,754 | ||||||||||
Note Receivable | 553,536 | 1,355,228 | ||||||||||||
Notes Receivable | 213,619 | 553,536 | ||||||||||||
Oil and Gas Properties - successful efforts method | 25,254,777 | 17,832,931 | 26,847,329 | 25,254,777 | ||||||||||
Less Accumulated Depletion and Depreciation | (6,206,558 | ) | (4,139,337 | ) | (9,034,348 | ) | (6,206,558 | ) | ||||||
Oil & Gas Properties (net) | 19,048,219 | 13,693,594 | ||||||||||||
Oil and Gas Properties (net) | 17,812,981 | 19,048,219 | ||||||||||||
Other Depreciable Assets: | 2,171,654 | 1,641,806 | 2,028,487 | 2,171,654 | ||||||||||
Less Accumulated Depreciation | (315,093 | ) | (121,113 | ) | (427,013 | ) | (315,093 | ) | ||||||
Other Depreciable Assets (net) | 1,856,561 | 1,520,693 | 1,601,474 | 1,856,561 | ||||||||||
Other Related Party Receivable | - | 80,395 | ||||||||||||
Leasehold Held for Sale | 150,000 | 1,680,813 | - | 150,000 | ||||||||||
Investment in Equity Method Investment | - | 142,395 | ||||||||||||
Total Assets | $ | 23,510,070 | $ | 19,951,999 | $ | 21,485,933 | $ | 23,510,070 | ||||||
LIABILITIES | ||||||||||||||
Current Liabilities: | ||||||||||||||
Accounts Payable | $ | 22,033 | $ | 103,479 | $ | 278,233 | $ | 22,033 | ||||||
Notes Payable to Related Parties | - | 324,330 | ||||||||||||
Revenue Payable | 20,912 | - | ||||||||||||
Payable to Related Parties | 148,550 | 1,547,136 | 148,550 | 148,550 | ||||||||||
Other Current Liabilities | 93,923 | - | ||||||||||||
Accrued Expenses | 106,141 | 915,372 | 140,390 | 106,141 | ||||||||||
Accrued Expenses - Related Parties | 130,870 | 171,788 | 88,458 | 130,870 | ||||||||||
Current Portion of Long-Term Debt | - | 14,960 | 10,283,339 | - | ||||||||||
Total Current Liabilities | 407,594 | 3,077,065 | 11,053,805 | 407,594 | ||||||||||
Notes Payable | 8,955,202 | 1,647,769 | - | 8,955,202 | ||||||||||
Notes Payable - Related Parties | 3,518,924 | 3,194,594 | 3,518,924 | 3,518,924 | ||||||||||
Other Related Party Payables | - | 490,840 | ||||||||||||
Less Current Portion of Notes Payable | - | (14,960 | ) | |||||||||||
Total Long-Term Debt | 12,474,126 | 5,318,243 | 3,518,924 | 12,474,126 | ||||||||||
Asset Retirment Obligation | 344,079 | - | 324,773 | 344,079 | ||||||||||
Deferred Tax Liability | 1,702,782 | 2,163,183 | 639,034 | 1,702,782 | ||||||||||
Total Liabilities | 14,928,581 | 10,558,491 | 15,536,536 | 14,928,581 | ||||||||||
Commitments & Contingencies: | - | - | ||||||||||||
Contingent Stock Based Compensation | - | 214,976 | ||||||||||||
Stockholders' Equity | ||||||||||||||
Common Stock, $.001 par,200,000,000 shares authorized and 80,353,912 and 80,181,310 shares outstanding on March 31, 2009 and 2008, respectively | 80,353 | 80,181 | ||||||||||||
Common Stock, $.001 par,200,000,000 shares authorized and 80,743,912 and 80,353,912 shares outstanding on March 31, 2010 and 2009, respectively | 80,743 | 80,353 | ||||||||||||
Additional Paid-In-Capital | 10,959,965 | 9,553,346 | 11,460,893 | 10,959,965 | ||||||||||
Treasury Stock, at cost | (12,240 | ) | - | |||||||||||
Retained Deficit | (2,458,829 | ) | (454,995 | ) | (5,579,999 | ) | (2,458,829 | ) | ||||||
Total Stockholders' Equity | 8,581,489 | 9,178,532 | 5,949,397 | 8,581,489 | ||||||||||
Total Liabilities & Stockholders' Equity | $ | 23,510,070 | $ | 19,951,999 | $ | 21,485,933 | $ | 23,510,070 | ||||||
Years Ended | |||||||
Mar. 31, 2009 | Mar. 31, 2008 | ||||||
Revenues | |||||||
Oil & Gas Sales | $ | 6,558,069 | $ | 4,902,072 | |||
Sale of Leases | 18,005 | 307,028 | |||||
Other Income | 458,365 | 281,231 | |||||
7,034,439 | 5,490,331 | ||||||
Costs and Expenses | |||||||
Oil & Gas Lease Operating Expenses | 2,598,208 | 2,125,261 | |||||
Workover Expenses | 114,683 | 356,342 | |||||
Severance & Ad Valorem Taxes | 427,307 | 318,785 | |||||
Geologic & Geophysical | - | 8,993 | |||||
Delay Rentals | 2,975 | 52,186 | |||||
Plugging Costs & Expired Leases | 433,976 | 290,959 | |||||
Depletion & Depreciation | 3,487,440 | 1,520,406 | |||||
General & Administrative: | |||||||
Salaries & Benefits | 874,418 | 1,104,785 | |||||
Legal & Professional | 720,771 | 584,765 | |||||
Other General & Administrative | 701,687 | 332,009 | |||||
Interest, net of capitalized interest of $537,024 and $488,299 for the years ended March 31, 2009 and March 31, 2008, respectively | 3,780 | - | |||||
9,365,245 | 6,694,491 | ||||||
Other Income (Expense) | |||||||
Interest Income | 79,876 | 210,938 | |||||
Other Expense | (6,745 | ) | (16,938 | ) | |||
Loss on Equity Method Investments | (206,561 | ) | (32,605 | ) | |||
(Loss) from continuing operations before income taxes and discontinued operations | (2,464,236 | ) | (1,042,765 | ) | |||
Income Tax Benefit | 460,402 | 364,930 | |||||
Loss before discontinued operations | (2,003,834 | ) | (677,835 | ) | |||
Income from discontinued operations, net of income taxes: | |||||||
Pipeline Income | - | 22,930 | |||||
Gain on Sale of Pipeline | - | 1,450,805 | |||||
Income from discontinued operations | - | 1,473,735 | |||||
Net Income (Loss) | $ | (2,003,834 | ) | $ | 795,900 | ||
Basic & Diluted (Loss) Income per Common Share: | |||||||
Loss from continuing operations | $ | (0.02 | ) | $ | (0.01 | ) | |
Income from discontinued operations | $ | - | $ | 0.02 | ) | ||
Net Income (Loss) per Common Share | $ | (0.02 | ) | $ | 0.01 | ||
Weighted Average Common Shares Outstanding | 80,300,804 | 78,800,618 | |||||
Years Ended | |||||||
Mar. 31, 2010 | Mar. 31, 2009 | ||||||
Revenues | |||||||
Oil and Gas Sales | $ | 3,019,510 | $ | 6,558,069 | |||
Sale of Leases | 170,174 | 18,005 | |||||
Other Income | 344,038 | 458,365 | |||||
3,533,722 | 7,034,439 | ||||||
Costs and Expenses | |||||||
Oil and Gas Lease Operating Expenses | 1,840,151 | 2,598,208 | |||||
Workover Expenses | 90,736 | 114,683 | |||||
Severance and Ad Valorem Taxes | 233,367 | 427,307 | |||||
Delay Rentals | 5,000 | 2,975 | |||||
Plugging Costs and Expired Leases | 43,594 | 433,976 | |||||
Depletion and Depreciation | 3,589,316 | 3,487,440 | |||||
ARO Accretion | 40,567 | - | |||||
General and Administrative: | |||||||
Salaries and Benefits | 840,782 | 874,418 | |||||
Legal and Professional | 732,047 | 720,771 | |||||
Other General and Administrative | 495,967 | 701,687 | |||||
Interest, net of capitalized interest of $555,575 and $537,024 for the years ended March 31, 2010 and March 31, 2009, respectively | - | 3,780 | |||||
7,911,527 | 9,365,245 | ||||||
Other Income (Expense) | |||||||
Interest Income | 18,445 | 79,876 | |||||
Hedging Gains (Losses) | 174,442 | (6,745 | ) | ||||
Loss on Equity Method Investments | - | (206,561 | ) | ||||
Loss from operations before income taxes | (4,184,918 | ) | (2,464,236 | ) | |||
Income Tax Benefit | 1,063,748 | 460,402 | |||||
Net Loss | $ | (3,121,170 | ) | $ | (2,003,834 | ) | |
Basic and Diluted Loss per Common Share: | |||||||
Net Loss per Common Share | $ | (0.04 | ) | $ | (0.02 | ) | |
Weighted Average Common Shares Outstanding | 80,593,912 | 80,300,804 | |||||
Common Stock | ||||||||||||||||||
Number of Shares | Amount | Paid-In Capital | Retained Deficit | Total | ||||||||||||||
Balance, March 31, 2007 | 71,954,262 | $ | 71,954 | $ | 1,970,795 | ) | $ | (1,250,895 | ) | $ | 791,854 | ) | ||||||
Sale of Common Stock | 7,637,048 | 7,637 | 6,877,717 | - | 6,885,354 | |||||||||||||
Common Stock Issued for Wilson Energy Acquisition | 240,000 | 240 | 298,560 | - | 298,800 | |||||||||||||
Common Stock Issued for Employee Compensation | 350,000 | 350 | 406,274 | - | 406,624 | |||||||||||||
Net Income 2008 | - | - | - | 795,900 | 795,900 | |||||||||||||
Balance, March 31, 2008 | 80,181,310 | 80,181 | 9,553,346 | (454,995 | ) | 9,178,532 | ||||||||||||
Common Stock Issued for Penalty Shares | 172,602 | 172 | 172,430 | - | 172,602 | |||||||||||||
Warrants Issued for short-term note payable | - | - | 36,967 | - | 36,967 | |||||||||||||
Warrants Issued in connection with consulting contract | - | - | 300,000 | - | 300,000 | |||||||||||||
Warrants Issued for success fee related to senior secured credit facility | - | - | 375,000 | - | 375,000 | |||||||||||||
Employee and director stock options granted | - | - | 522,222 | - | 522,222 | |||||||||||||
Net Loss 2009 | - | - | - | (2,003,834 | ) | (2,003,834 | ) | |||||||||||
Balance, March 31, 2009 | 80,353,912 | $ | 80,353 | $ | 10,959,965 | $ | (2,458,829 | ) | $ | 8,581,489 | ||||||||
Common Stock | ||||||||||||||||||||||
Number of Shares | Amount | Paid-In Capital | Treasury Stock | Retained Deficit | Total | |||||||||||||||||
Balance, March 31, 2008 | 80,181,310 | $ | 80,181 | $ | 9,553,346 | $ | - | $ | (454,995 | ) | $ | 9,178,532 | ||||||||||
Common Stock Issued for Penalty Shares | 172,602 | 172 | 172,430 | - | - | 172,602 | ||||||||||||||||
Warrants Issued for short-term note payable | - | - | 36,967 | - | - | 36,967 | ||||||||||||||||
Warrants Issued in connection with consulting contract | - | - | 300,000 | - | - | 300,000 | ||||||||||||||||
Warrants Issued for success fee related to senior secured credit facility | - | - | 375,000 | - | 375,000 | |||||||||||||||||
Employee and director stock options granted | - | - | 522,222 | - | - | 522,222 | ||||||||||||||||
Net Loss 2009 | - | - | - | - | (2,003,834 | ) | (2,003,834 | ) | ||||||||||||||
Balance, March 31, 2009 | 80,353,912 | 80,353 | 10,959,965 | - | (2,458,829 | ) | 8,581,489 | |||||||||||||||
Common Stock Issued with consulting contracts | 390,000 | 390 | 175,110 | - | - | 175,500 | ||||||||||||||||
Treasury Stock | - | - | - | (12,240 | ) | - | (12,240 | ) | ||||||||||||||
Employee and director stock options granted | - | - | 325,818 | - | - | 325,818 | ||||||||||||||||
Net Loss 2009 | - | - | - | - | (3,121,170 | ) | (3,121,170 | ) | ||||||||||||||
�� | ||||||||||||||||||||||
Balance, March 31, 2009 | 80,743,912 | $ | 80,743 | $ | 11,460,893 | $ | (12,240 | ) | $ | (5,579,999 | ) | $ | 5,949,397 | |||||||||
Fiscal Year Ended | Fiscal Year Ended | |||||||||||||
Operating Activities: | Mar. 31, 2009 | Mar. 31, 2008 | Mar. 31, 2010 | Mar. 31, 2009 | ||||||||||
Net Income (Loss) | $ | (2,003,834 | ) | $ | 795,900 | |||||||||
Adjustments to reconcile net income to net cash from operating activities: | ||||||||||||||
Discontinued Operations | - | (22,930 | ) | |||||||||||
Deferred Income Tax Expense | (460,402 | ) | (364,930 | ) | ||||||||||
Net Loss | $ | (3,121,170 | ) | $ | (2,003,834 | ) | ||||||||
Adjustments to reconcile net loss to net cash from operating activities: | ||||||||||||||
Deferred Income Tax Benefit | (1,063,748 | ) | (460,402 | ) | ||||||||||
Depletion, Depreciation, & Amortization | 3,487,440 | 1,520,406 | 3,589,316 | 3,487,440 | ||||||||||
Expired Leases | 433,976 | 280,400 | 43,594 | 433,976 | ||||||||||
Non-employee stock based compensation | 300,000 | - | 175,500 | 300,000 | ||||||||||
Stock based compensation | 307,240 | 621,600 | 325,818 | 307,240 | ||||||||||
Penalty shares | 172,602 | - | - | 172,602 | ||||||||||
Loss on Equity Method Investment | 206,561 | 32,605 | - | 206,561 | ||||||||||
Gain on Sale of Pipeline (net of income taxes) | - | (1,450,805 | ) | |||||||||||
Gain on Leases Sold | - | (307,028 | ) | |||||||||||
ARO Accretion | 40,567 | - | ||||||||||||
ARO on Sold Properties | (87,516 | ) | - | |||||||||||
Treasury Stock Received for Asset Sale Proceeds | (12,240 | ) | - | |||||||||||
Changes in Operating Assets and Liabilities | ||||||||||||||
Changes in Accrued Liabilities | (685,671 | ) | 25,514 | (8,163 | ) | (685,671 | ) | |||||||
Change in Inventory | (2,766 | ) | (4,748 | ) | (123,372 | ) | (2,766 | ) | ||||||
Change in Related Party Receivables/Payables | (1,369,752 | ) | (10,000 | ) | (56,143 | ) | (1,369,752 | ) | ||||||
Changes in Other Receivables | (15,760 | ) | 63,389 | 15,760 | (15,760 | ) | ||||||||
Changes in Other Current Assets | 6,745 | (13,062 | ) | - | 6,745 | |||||||||
Changes in Hedging Activity | (148,519 | ) | - | |||||||||||
Change in Revenue Receivables | 530,527 | (373,206 | ) | (301,859 | ) | 530,527 | ||||||||
Change in Revenue Payable | 20,912 | - | ||||||||||||
Changes in Accounts Payable | (81,446 | ) | (406,061 | ) | 256,200 | (81,446 | ) | |||||||
Net Cash provided by (used in) Operating Activities | 825,460 | 387,044 | ||||||||||||
Net Cash provided by (used in) Discontinued Operations | - | 79,373 | ||||||||||||
Net Cash provided (used) from operating activities | (455,063 | ) | 825,460 | |||||||||||
Investing Activities: | ||||||||||||||
Oil & Gas Drilling, Completing and Leasehold Acquisition Costs | (8,706,952 | ) | (7,748,556 | ) | (2,024,820 | ) | (8,706,952 | ) | ||||||
Change in Related Party Payable related to drilling | (1,547,136 | ) | (2,073,212 | ) | 602,828 | (1,547,136 | ) | |||||||
Proceeds from the Sale of Leases | - | 412,913 | ||||||||||||
Net Investment in Leasehold Sold | 350,690 | - | ||||||||||||
Investment in Other Depreciable Assets | (534,287 | ) | (1,641,806 | ) | (184,633 | ) | (534,287 | ) | ||||||
Net Investment in Other Depreciable Assets Sold | 221,957 | - | ||||||||||||
Investment in Equity Method Investment | (64,166 | ) | (175,000 | ) | - | (64,166 | ) | |||||||
Note Receivable (Advances) | (213,619 | ) | - | |||||||||||
Note Receivable Collections | 801,692 | 258,990 | 553,537 | 801,692 | ||||||||||
Net Cash provided by (used in) Continuing Activities | (10,050,849 | ) | (10,966,671 | ) | ||||||||||
Net Cash provided by (used in) Discontinued Activities | - | 14,002,552 | ||||||||||||
Net Cash used in continuing activities | (694,060 | ) | (10,050,849 | ) | ||||||||||
Financing Activities | ||||||||||||||
Financing Activities Notes Payable Advances Net of Loan Fees | 10,401,254 | 54,898 | ||||||||||||
Financing Activities: | ||||||||||||||
Notes Payable Advances Net of Loan Fees | 1,000,000 | 10,401,254 | ||||||||||||
Notes Payable Principal Payments | (1,342,100 | ) | (2,153,066 | ) | - | (1,342,100 | ) | |||||||
Changes in Notes Payable Related Party | - | (100,000 | ) | |||||||||||
Net cash received from common stock subscriptions | - | 6,885,353 | ||||||||||||
Net Cash provided by (used in) Continuing Activities | 9,059,154 | 4,687,185 | ||||||||||||
Net Cash provided by (used in) Discontinued Activities | - | (7,809,073 | ) | |||||||||||
Net Increase (Decrease) in Cash | (166,235 | ) | 380,410 | |||||||||||
Cash - Beginning of the Year | 592,665 | 212,254 | ||||||||||||
Cash - End of the Year | $ | 426,430 | $ | 592,664 | ||||||||||
Related Party Note (Payments) | (200,000 | ) | - | |||||||||||
Related Party Note Advances | 200,000 | - | ||||||||||||
Net Cash provided by continuing activities | 1,000,000 | 9,059,154 | ||||||||||||
Net Decrease in cash | (149,123 | ) | (166,235 | ) | ||||||||||
Cash - Beginning of the year | 426,430 | 592,665 | ||||||||||||
Cash - End of the year | $ | 277,307 | $ | 426,430 | ||||||||||
Year Ended | Year Ended | |||||||||||||
Mar. 31, 2008 | Mar. 31, 2008 | Mar. 31, 2010 | Mar. 31, 2009 | |||||||||||
Supplemental Disclosure of Cash Flow Information | ||||||||||||||
Cash paid during period for: | ||||||||||||||
Interest | $ | 466,792 | $ | 204,217 | $ | 621,107 | $ | 466,792 | ||||||
Income Taxes | $ | - | $ | - | $ | - | $ | - | ||||||
Non Cash Investing and Financing Activities | ||||||||||||||
Stock Based Property Acquisition | $ | - | $ | 298,800 | ||||||||||
Treasury Stock Received for Asset Sale | $ | (12,240 | ) | $ | - | |||||||||
Stock Based Loan Costs | $ | 375,000 | $ | - | $ | - | $ | 375,000 | ||||||
Stock Based Interest Payment | $ | 36,967 | $ | - | ||||||||||
Stock Issued for Interest | $ | - | $ | 36,967 | ||||||||||
Stock Based Compensation | $ | 522,222 | $ | 406,624 | $ | 325,818 | $ | 522,222 | ||||||
Stock Based Consulting Fees | $ | 300,000 | $ | - | $ | 175,500 | $ | 300,000 | ||||||
2010 | 2009 | |||||||
Producing Leasehold | $ | 23,999,312 | $ | 22,159,295 | ||||
Non-Producing Leasehold | 1,063,346 | 1,081,482 | ||||||
Well in Process | 229,476 | 1,014,380 | ||||||
Capitalized Interest | 1,555,195 | 999,620 | ||||||
26,847,329 | 25,254,777 | |||||||
Less accumulated depletion and amortization | (9,034,348 | ) | (6,206,558 | ) | ||||
$ | 17,812,981 | $ | 19,048,219 | |||||
2010 | 2009 | |||||||
Buildings | $ | 409,764 | $ | 409,764 | ||||
Office Equipment | 130,256 | 130,256 | ||||||
Property and Equipment | 1,488,467 | 1,631,634 | ||||||
2,028,487 | 2,171,654 | |||||||
Less accumulated depreciation | (427,013 | ) | (315,093 | ) | ||||
$ | 1,601,474 | $ | 1,856,561 | |||||
March 31, 2010 | March 31, 2009 | |||||
Federal Statutory Tax Rate | 35% | 35% | ||||
State | 0% | 0% | ||||
Consolidated Effective Tax Rate | 35% | 35% | ||||
March 31, | ||||||
2009 | 2008 | |||||
Federal Statutory Tax Rate | 35% | 35% | ||||
State | 0% | 0% | ||||
Consolidated Effective Tax Rate | 35% | 35% | ||||
Years Ended March 31, | Years Ended March 31, | |||||||||||||||
2009 | 2008 | 2010 | 2009 | |||||||||||||
Current income tax expense | ||||||||||||||||
Federal | $ | - | - | $ | - | $ | - | |||||||||
State | - | - | - | - | ||||||||||||
Total current tax expense | - | - | - | - | ||||||||||||
Deferred income tax (benefit) from continuing operations | ||||||||||||||||
Federal | (460,402 | ) | (364,930 | ) | (1,063,748 | ) | (460,402 | ) | ||||||||
State | - | - | - | - | ||||||||||||
Total income tax (benefit) from continuing operations | (460,402 | ) | (364,930 | ) | ||||||||||||
Income tax (expense) from discontinued operations | - | 793,550 | ||||||||||||||
Total income tax (benefit) expense | $ | (460,402 | ) | $ | 428,620 | ) | ||||||||||
Total income tax benefit | $ | (1,063,748 | ) | $ | (460,402 | ) | ||||||||||
Years Ended March 31, | Years Ended March 31, | |||||||||||||||
2009 | 2008 | 2010 | 2009 | |||||||||||||
Rate | 35% | 35% | 35% | 35% | ||||||||||||
Tax on Income from Continuing Operations at Statutory Rate | $ | (862,483 | ) | $ | (364,968 | ) | $ | (1,464,721 | ) | $ | (862,483 | ) | ||||
Increase (decrease) resulting from: | ||||||||||||||||
Permanent differences | 402,081 | 38 | 400,973 | 402,081 | ||||||||||||
Income tax (benefit) from continuing operations | (460,402 | ) | (364,930 | ) | ||||||||||||
Income tax expense from discontinued operations | - | 793,550 | ||||||||||||||
Income Tax (Benefit) Provision | $ | (460,402 | ) | $ | 428,620 | |||||||||||
Income Tax Provision | $ | (1,063,748 | ) | $ | (460,402 | ) | ||||||||||
March 31, | ||||||||||||||||
2009 | 2008 | March 31, 2010 | March 31, 2009 | |||||||||||||
Deferred Tax Assets: | ||||||||||||||||
Net Operating Loss Carryforward | $ | 751,045 | $ | 2,188 | $ | 1,950,405 | $ | 751,045 | ||||||||
Other Deferred Tax Assets | - | - | 146,544 | - | ||||||||||||
Total Deferred Tax Assets | 751,045 | 2,188 | 2,096,949 | 751,045 | ||||||||||||
Deferred Tax Liabilities | ||||||||||||||||
Oil & Gas Properties Basis | 2,086,984 | 1,922,321 | ||||||||||||||
Oil and Gas Properties Basis | 2,475,875 | 2,086,984 | ||||||||||||||
Other Deferred Tax Liabilities | 366,843 | 243,050 | 260,108 | 366,843 | ||||||||||||
Total Deferred Liabilites | 2,453,827 | 2,165,371 | 2,735,983 | 2,453,827 | ||||||||||||
Net Deferred Tax Liability | $ | 1,702,782 | $ | 2,163,183 | $ | 639,034 | $ | 1,702,782 | ||||||||
March 31, | ||||||||||||||||
2009 | 2008 | March 31, 2010 | March 31, 2009 | |||||||||||||
Numerator | ||||||||||||||||
Net Income (Loss) | $ | (2,003,834 | ) | $ | 795,900 | $ | (3,121,170 | ) | $ | (2,003,834 | ) | |||||
Denominator | ||||||||||||||||
Weighted Average Shares Outstanding - Basic | 80,300,804 | 78,800,618 | 80,593,912 | 80,300,804 | ||||||||||||
Basic - Net Income | $ | (0.02 | ) | $ | 0.01 | $ | (0.04 | ) | $ | (0.02 | ) |
Fiscal Years Ending March 31, | |||||||||||||||||
2010 | 2011 | 2012 | 2013 | Thereafter | Total | ||||||||||||
Note Payable - Shareholder | $ | - | $ | - | $ | - | $ | 324,330 | $ | - | $ | 324,330 | |||||
Note Payable - Shareholder | - | - | - | 3,194,594 | - | 3,194,594 | |||||||||||
Senior Secured Credit Facility | - | - | 9,800,000 | - | - | 9,800,000 | |||||||||||
$ | - | $ | - | $ | 9,800,000 | $ | 3,518,924 | $ | - | $ | 13,318,924 | ||||||
Fiscal Years Ending March 31, | |||||||||||||||||
2011 | 2012 | 2013 | 2014 | Thereafter | Total | ||||||||||||
Note Payable - Shareholder | - | - | 324,330 | - | - | 324,330 | |||||||||||
Note Payable - Shareholder | - | - | 3,194,594 | - | - | 3,194,594 | |||||||||||
Senior Secured Credit Facility | 10,800,000 | - | - | - | - | 10,800,000 | |||||||||||
$ | 10,800,000 | $ | - | $ | 3,518,924 | $ | - | $ | - | $ | 14,318,924 | ||||||
Shares Outstanding | |||
Shares Outstanding March 31, | |||
80,181,310 | |||
Shares issued as penalty for late registration of private placement shares | 172,602 | ||
Balance at March 31, 2009 | 80,353,912 | ||
Shares issued as compensation to consultants | 390,000 | ||
Balance at March 31, 2010 | 80,743,912 | ||
• | Level 1 - Quoted prices for identical instruments in active markets; | |
• | Level 2 - Quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active, and model-derived valuations in which all significant inputs and significant value drivers are observable in active markets; and | |
• | Level 3 - Valuations derived from valuation techniques in which one or more significant inputs or significant value drivers are unobservable. |
Type of Contract | Balance Sheet Location | Estimated Fair Value | |||||
Natural Gas Swaps | Other Current Assets | $ | 98,856 | ||||
Natural Gas Collars | Other Current Assets | 143,587 | |||||
Total Current Derivative Assets | 242,443 | ||||||
Crude Oil Swaps | Other Current Liabilities | - | |||||
Crude Oil Collars | Other Current Liabilities | (93,923 | ) | ||||
Total Current Derivative Liabilities | (93,923 | ) | |||||
Crude Oil Collars | Other Non-Current Liabilities | - | |||||
Natural Gas Collars | Other Non-Current Liabilities | - | |||||
Total Non-Current Derivative Liabilities | - | ||||||
Total Net Derivative Assets | $ | 148,520 | |||||
Quoted Prices in Active Markets for Identical Assets | Significant Other Observable Inputs | Significant Unobservable Inputs | |||||||||||||
(Level 1) | (Level 2) | (Level 3) | Total | ||||||||||||
Options | $ | - | $ | 325,818 | $ | - | $ | 325,818 | |||||||
Derivative Assets and Liabilities, net | $ | 148,520 | $ | - | $ | - | $ | 148,520 |
Quoted Prices in Active Markets for Identical Assets | Significant Other Observable Inputs | Significant Unobservable Inputs | Quoted Prices in Active Markets for Identical Assets | Significant Other Observable Inputs | Significant Unobservable Inputs | |||||||||||||||||||||||||
(Level 1) | (Level 2) | (Level 3) | Total | (Level 1) | (Level 2) | (Level 3) | Total | |||||||||||||||||||||||
Options and Warrants | $ | - | $ | 1,234,189 | $ | - | $ | 1,234,189 | $ | - | $ | 1,234,189 | $ | - | $ | 1,234,189 | ||||||||||||||
Long-lived Assets Held For Sale | $ | - | $ | 150,000 | $ | - | $ | 150,000 | $ | - | $ | 150,000 | $ | - | $ | 150,000 |
Total Proceeds | $ | 15,000,000 | ||
Closing adjustment for unpaid capital calls | (900,000 | ) | ||
Net Proceeds | 14,100,000 | |||
Basis in the pipeline | (8,827,299 | ) | ||
Total Gain on sale | 5,272,701 | |||
Less Allocations to Minority Interest | (3,040,693 | ) | ||
Less Income Tax on Gain | (781,203 | ) | ||
Net Gain on Sale of Pipeline | $ | 1,450,805 | ||
Settlement Period | Monthly Volumes | Fixed Price | Price Floor | Price Ceiling | ||||||||
Natural Gas Swaps | ||||||||||||
1/01/10 - 6/30/10 | 20,000 | MMBTU | $ | 5.54 | N/A | N/A | ||||||
Crude Oil Collars | ||||||||||||
1/01/10 - 12/31/10 | 2,000 | BBLS | N/A | $ | 65.00 | $ | 85.00 | |||||
Natural Gas Collars | ||||||||||||
7/1/10 - 12/31/10 | 20,000 | MMBTU | N/A | $ | 5.50 | $ | 6.50 |
Year Ended March 31, 2008 | ||||
Pipeline Revenue | $ | 125,801 | ||
Pipeline Operating Expenses | (46,428 | ) | ||
Minority Interest Expense | (44,096 | ) | ||
Income Tax Expense | (12,347 | ) | ||
Net Income from Discontinued Operations | $ | 22,930 | ||
Fiscal Year Ended March 31, | ||||||||
2010 | 2009 | |||||||
Unproved oil and gas properties | $ | 564,804 | $ | 484,198 | ||||
Proved oil and gas properties | 24,727,330 | 23,770,959 | ||||||
Support Equipment and facilities | - | - | ||||||
Capitalized Interest | 1,555,195 | 999,620 | ||||||
Total Capitalized Cost of Oil and Gas Properties | 26,847,329 | 25,254,777 | ||||||
Less accumulated depletion, depreciation, and amortization | (9,034,348 | ) | (6,206,558 | ) | ||||
Net Capitalized Costs | $ | 17,812,981 | $ | 19,048,219 | ||||
Fiscal Year Ended March 31, | ||||||||
2010 | 2009 | |||||||
Property Acquisition Costs | ||||||||
Proved | $ | 422,963 | $ | 427,676 | ||||
Unproved | 91,810 | 15,472 | ||||||
Exploration Costs | 235,003 | 267,212 | ||||||
Development Costs | 719,470 | 7,393,929 | ||||||
Asset retirement costs recognized | 27,643 | 344,079 | ||||||
Total Costs Incurred | $ | 1,496,889 | $ | 8,448,368 | ||||
Fiscal Year Ended March 31, | ||||||||
2009 | 2008 | |||||||
Unproved oil and gas properties | $ | 484,198 | $ | 2,445,556 | ||||
Proved oil and gas properties | 23,920,960 | 14,456,967 | ||||||
Support Equipment and facilities | - | - | ||||||
Capitalized Interest | 999,620 | 930,408 | ||||||
Total Capitalized Cost of Oil and Gas Properties | 25,404,778 | 17,832,931 | ||||||
Less accumulated depletion, depreciation, and amortization | (6,206,558 | ) | (4,139,337 | ) | ||||
Net Capitalized Costs | $ | 19,198,220 | $ | 13,693,594 | ||||
Fiscal Year Ended March 31, | ||||||||
2009 | 2008 | |||||||
Property Acquisition Costs | ||||||||
Proved | $ | 427,676 | $ | 1,814,718 | ||||
Unproved | 15,472 | 271,151 | ||||||
Exploration Costs | 267,212 | 4,933,277 | ||||||
Development Costs | 7,393,929 | 696,594 | ||||||
Asset retirement costs recognized according to SFAS No. 143 | 344,079 | - | ||||||
Total Costs Incurred | $ | 8,448,368 | $ | 7,715,740 | ||||
Oil & Gas Production | ||||||||
Oil (Bbl) | Gas (Mcf) | Total BOE | ||||||
Fiscal Year Ended | 3/31/2008 | 33,602 | 351,538 | 92,192 | ||||
Fiscal Year Ended | 3/31/2009 | 45,105 | 479,180 | 124,968 |
Fiscal Year Ended March 31, | Fiscal Year Ended March 31, | |||||||||||||||
2009 | 2008 | 2010 | 2009 | |||||||||||||
Oil & Gas Revenue | $ | 6,558,069 | $ | 4,902,072 | $ | 3,019,510 | $ | 6,558,069 | ||||||||
Gain on Sale of Oil & Gas Leases | 18,005 | 307,028 | 170,174 | 18,005 | ||||||||||||
Production Costs | 3,140,198 | 2,800,388 | 2,164,254 | 3,140,198 | ||||||||||||
Exploration Costs | 2,975 | 61,179 | 5,000 | 2,975 | ||||||||||||
Expired Leases and Plugging Costs | 433,969 | 290,959 | 43,594 | 433,969 | ||||||||||||
Depreciation, Depletion, & Amortization | 4,591,131 | 1,399,293 | 2,765,126 | 2,968,429 | ||||||||||||
(1,592,199 | ) | 657,281 | (1,788,290 | ) | 30,503 | |||||||||||
Income Taxes | 557,270 | (230,048 | ) | |||||||||||||
Income Taxes at 35% | 625,902 | (10,676 | ) | |||||||||||||
Results of operations for oil and gas producing activities (excluding corporate overhead and financing costs) | $ | (1,034,929 | ) | $ | 427,233 | $ | (1,162,389 | ) | $ | 19,827 | ||||||
Oil (MBBL) | Gas (MMCF) | Oil (MBBL) | Gas (MMCF) | |||||||||||||
Reserves at March 31, 2007 | 11,677 | 3,392 | ||||||||||||||
Correction of Error | (11,293 | ) | - | |||||||||||||
Revisions of previous estimates | 323 | (133 | ) | |||||||||||||
Improved recovery | 124 | 4,786 | ||||||||||||||
Purchases of minerals in place | 24 | 525 | ||||||||||||||
Extensions and discoveries | 590 | 10,591 | ||||||||||||||
Production | (34 | ) | (351 | ) | ||||||||||||
Sales of minerals in place | - | - | ||||||||||||||
Reserves at March 31, 2008 | 1,411 | 18,809 | 1,411 | 18,809 | ||||||||||||
Revisions of previous estimates | (739 | ) | (11,269 | ) | (739 | ) | (11,269 | ) | ||||||||
Improved recovery | - | - | - | - | ||||||||||||
Purchases of minerals in place | 1 | 25 | 1 | 25 | ||||||||||||
Extensions and discoveries | 397 | 4,725 | 397 | 4,725 | ||||||||||||
Production | (45 | ) | (479 | ) | (45 | ) | (479 | ) | ||||||||
Sales of minerals in place | - | - | - | - | ||||||||||||
Reserves at March 31, 2009 | 1,025 | 11,811 | 1,025 | 11,811 | ||||||||||||
Revisions of previous estimates | (650 | ) | (3,735 | ) | ||||||||||||
Improved recovery | - | - | ||||||||||||||
Purchases of minerals in place | - | - | ||||||||||||||
Extensions and discoveries | 442 | 11,101 | ||||||||||||||
Production | (24 | ) | (404 | ) | ||||||||||||
Sales of minerals in place | (12 | ) | - | |||||||||||||
Reserves at March 31, 2010 | 781 | 18,773 | ||||||||||||||
Barnett Shale Project | Corsicana Project | East Texas Project | |||||||
Crude Oil (MBBL) | Natural Gas (MMCF) | Crude Oil Equivalents (MBOE) | Crude Oil (MBBL) | Crude Oil Equivalents (MBOE) | |||||
Proved Developed Producing | 94 | 2,812 | 563 | 100 | 11 | ||||
Proved Developed Non-Producing | 43 | 494 | 125 | 87 | 2 | ||||
Proved Undeveloped | 655 | 8,505 | 2,073 | 33 | - | ||||
Total Proved Reserves at April 1, 2009 | 792 | 11,811 | 2,761 | 220 | 13 | ||||
• | Estimates are made of quantities of proved reserves and future amounts expected to be produced based on current year-end economic conditions. | |
• | Estimated future cash inflows are calculated by applying | |
• | Future cash flows are reduced by estimated production costs, costs to develop and produce the proved reserves and abandonment costs, all based on current year-end economic conditions. | |
• | The resulting future net cash flows are discounted to present value by applying a discount rate of 10%. |
As of March 31, | As of March 31, | |||||||||||||||
In thousands | 2009 | 2008 | ||||||||||||||
In Thousands | 2010 | 2009 | ||||||||||||||
Future Cash Inflows | $ | 90,391 | $ | 311,067 | $ | 127,486 | $ | 90,391 | ||||||||
Future Production and Development Costs | (55,865 | ) | (107,195 | ) | (89,762 | ) | (55,865 | ) | ||||||||
Income Taxes | (12,084 | ) | (71,355 | ) | (13,204 | ) | (12,084 | ) | ||||||||
Future Net Cash Flows | 22,442 | 132,517 | 24,520 | 22,442 | ||||||||||||
10% Annual Discount | (12,120 | ) | (64,216 | ) | (17,359 | ) | (12,120 | ) | ||||||||
Standardized Measure of Discounted Future Net Cash Flow | $ | 10,322 | $ | 68,301 | $ | 7,161 | $ | 10,322 | ||||||||
Year Ended March 31, | ||||||||
In thousands | 2009 | 2008 | ||||||
Balance at beginning of year | $ | 68,301 | $ | 117,629 | ||||
Correction of error | - | (451,003 | ) | |||||
Net change in prices and production costs | (194,933 | ) | 19,348 | |||||
Net changes in future development costs | 6,807 | (14,805 | ) | |||||
Sales of oil & gas produced net of production costs | (3,533 | ) | (2,458 | ) | ||||
Extensions and discoveries | 23,664 | 98,476 | ||||||
Previously estimated development costs incurred | 8,243 | 2,188 | ||||||
Revisions of previous quantity estimates | (10,020 | ) | 78,631 | |||||
Purchases of reserves | 427 | 1,815 | ||||||
Net change in income taxes | 59,271 | 93,733 | ||||||
Accretion of discount | 52,095 | 124,747 | ||||||
End of Year | $ | 10,322 | $ | 68,301 | ||||
Total | Barnett Project | Corsicana Project | East Texas Project | ||||||||||||
In thousands | April 1, 2009 | April 1, 2009 | April 1, 2009 | April 1, 2009 | |||||||||||
Future Cash Inflows | $ | 90,391 | $ | 79,631 | $ | 10,095 | $ | 665 | |||||||
Future Production and Development Costs | (55,865 | ) | (48,034 | ) | (7,588 | ) | (243 | ) | |||||||
Income Taxes | (12,084 | ) | (11,059 | ) | (878 | ) | (147 | ) | |||||||
Future Net Cash Flows | 22,442 | 20,538 | 1,629 | 275 | |||||||||||
10% Annual Discount | (12,120 | ) | (11,366 | ) | (668 | ) | (86 | ) | |||||||
Standardized Measure of Discounted Future Net Cash Flow | $ | 10,322 | $ | 9,172 | $ | 961 | $ | 189 | |||||||
Year Ended March 31, | ||||||||
In Thousands | 2010 | 2009 | ||||||
Balance at beginning of yea | $ | 10,322 | $ | 68,301 | ||||
Net change in prices and production costs | 11,145 | (194,933 | ) | |||||
Net changes in future development costs | (20,306 | ) | 6,807 | |||||
Sales of oil & gas produced net of production costs | (452 | ) | (3,533 | ) | ||||
Extensions and discoveries | 20,698 | 23,664 | ||||||
Previously estimated development costs incurred | 532 | 8,243 | ||||||
Revisions of previous quantity estimates | (8,419 | ) | (10,020 | ) | ||||
Purchases of reserves | - | 427 | ||||||
Net change in income taxes | (1,120 | ) | 59,271 | |||||
Accretion of discount | (5,239 | ) | 52,095 | |||||
End of Year | $ | 7,161 | $ | 10,322 | ||||
Number | Exhibit Description | |
3(i).1 | Articles of Incorporation filed with the Nevada Secretary of State on November 29, 2004. (Incorporated by reference from the registrant's registration statement on Form SB-2 filed on September 8, 2005.) | |
3(i).2 | Certificate of Change filed with the Nevada Secretary of State on November 21, 2006. (Incorporated by reference from the registrant's registration statement on Form 8-K filed on November 30, 2006.) | |
3(i).3 | Certificate of Amendment filed with the Nevada Secretary of State on February 7, 2007. (Incorporated by reference from the registrant's registration statement on Form SB-2 filed on August 1, 2007.) | |
3(ii).1 | Bylaws. (Incorporated by reference from the registrant's registration statement on Form SB-2 filed on August 1, 2007.) | |
10.2 | Contribution Agreement by and among the registrant, JMT Resources, Ltd., REO Energy, Ltd., and Benco Operating, Inc. dated February 1, 2007. (Incorporated by reference from the registrant's current report on Form 8-K filed on February 6, | |
10.5 | Joint Operating Agreement dated February 1, 2007 by Rife Energy Operating, Inc. and the registrant. (Incorporated by reference from the registrant's registration statement on Form SB-2 filed on August 1, 2007.) | |
10.6 | Joint Operating Agreement by and between the registrant and Texas MOR, Inc. dated February 1, 2007. (Incorporated by reference from the registrant's registration statement on Form SB-2 filed on August 1, 2007.) | |
10.7 | Employee Confidentiality and Property Agreement by and between the registrant and Scott Allen. (Incorporated by reference from the registrant's registration statement on Form SB-2 filed on August 1, 2007.) |
10.8 | Employee Confidentiality and Property Agreement by and between the registrant and Mark S. Zouvas. (Incorporated by reference from the registrant's registration statement on Form SB-2 filed on August 1, 2007.) | |
10.9 | Employee Confidentiality and Property Agreement by and between the registrant and Brett Bennett. (Incorporated by reference from the registrant's registration statement on Form SB-2 filed on August 1, 2007.) | |
10.10 | ||
21.1 | List of Subsidiaries of the | |
23.1 | ||
31.1 | Certification by the CEO Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. | |
31.2 | Certification by the CFO Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. | |
32.1 | Certification by the CEO Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. | |
32.2 | Certification by the CFO Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. | |
REOSTAR ENERGY CORPORATION | ||
Date: | By: | /s/ Mark S. Zouvas |
Mark S. Zouvas | ||
President, Chief Executive Officer and Director |
SIGNATURE | TITLE | DATE | ||
/s/ Mark S. Zouvas | President, Chief Executive Officer and Director | |||
Mark S. Zouvas | (Principal Executive Officer) | |||
/s/ Scott Allen | Chief Financial Officer and Director July 14, 2008 | |||
Scott Allen | (Principal Financial Officer) | |||
/s/ M. O. Rife III | Chairman of the Board of Directors | |||
M. O. Rife III | ||||
/s/ Jean-Baptiste Heinzer | Director | |||
Jean-Baptiste Heinzer | ||||
/s/ Alan Rae | Director | |||
Alan Rae | ||||