Document_and_Entity_Informatio
Document and Entity Information | 3 Months Ended | |
Mar. 31, 2015 | 15-May-15 | |
Document And Entity Information | ||
Entity Registrant Name | HOLLOMAN ENERGY CORP | |
Entity Central Index Key | 1324736 | |
Document Type | 10-Q | |
Document Period End Date | 31-Mar-15 | |
Amendment Flag | FALSE | |
Current Fiscal Year End Date | -19 | |
Is Entity a Well-known Seasoned Issuer? | No | |
Is Entity a Voluntary Filer? | No | |
Is Entity's Reporting Status Current? | Yes | |
Entity Filer Category | Smaller Reporting Company | |
Entity Common Stock, Shares Outstanding | 112,577,625 | |
Document Fiscal Period Focus | Q1 | |
Document Fiscal Year Focus | 2015 |
CONSOLIDATED_BALANCE_SHEETS_Un
CONSOLIDATED BALANCE SHEETS (Unaudited) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
ASSETS | ||
Cash | $18,233 | $50,883 |
Other receivable | 41,175 | 2,884 |
Prepaid expenses | 13,374 | 15,180 |
Current Assets | 72,782 | 68,947 |
Oil and gas properties, full cost method, unproven | 16,234,119 | 16,227,485 |
Total Assets | 16,306,901 | 16,296,432 |
LIABILITIES AND STOCKHOLDERS' EQUITY | ||
Accounts payable and accrued liabilities | 267,026 | 237,122 |
Total Current Liabilities | 267,026 | 237,122 |
Deferred tax liability | 4,045,259 | 4,314,420 |
Total Liabilities | 4,312,285 | 4,551,542 |
STOCKHOLDERS' EQUITY | ||
Authorized:10,000,000 preferred shares, par value $0.001 per share | 0 | 0 |
Authorized 150,000,000 common shares, par value $0.001 per share Issued and outstanding:112,077,625 common shares (111,952,623 at December 31, 2014) | 112,078 | 111,874 |
Additional paid in capital | 26,290,901 | 26,256,682 |
Accumulated other comprehensive income (loss) | 2,883 | -94 |
Accumulated deficit | -14,411,246 | -14,623,572 |
Total Stockholders' Equity | 11,994,616 | 11,744,890 |
Total Liabilities and Stockholders' Equity | $16,306,901 | $16,296,432 |
CONSOLIDATED_BALANCE_SHEETS_Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) (Unaudited) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
STOCKHOLDERS' EQUITY | ||
Preferred Shares par value | $0.00 | $0.00 |
Preferred Shares Authorized | 10,000,000 | 10,000,000 |
Common Shares par value | $0.00 | $0.00 |
Common Shares authorized | 150,000,000 | 150,000,000 |
Common Shares Issued | 112,077,625 | 111,952,623 |
Common Shares outstanding | 112,077,625 | 111,952,623 |
CONSOLIDATED_STATEMENTS_OF_OPE
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) (Unaudited) (USD $) | 3 Months Ended | |
Mar. 31, 2015 | Mar. 31, 2014 | |
CONTINUING OPERATIONS | ||
Consulting | $0 | $22,523 |
Foreign exchange (gain) loss | -268,465 | 203,012 |
Management and directors' fees | 19,423 | 16,650 |
Office, travel and general | 29,541 | 28,075 |
Professional fees | 6,980 | 3,867 |
Total Expenses | 212,521 | -274,127 |
Other expense | ||
Interest expense | -195 | -5,513 |
Income (Loss) from Continuing Operations | 212,326 | -279,640 |
NET INCOME (LOSS) BEFORE TAXES | 212,326 | -279,640 |
Income tax expense | 0 | 0 |
NET INCOME (LOSS) | 212,326 | -279,640 |
Foreign currency translation (net of tax of $0) | 2,977 | -3,988 |
COMPREHENSIVE INCOME (LOSS) | $215,303 | ($283,628) |
BASIC AND DILUTED NET INCOME (LOSS) FROM CONTINUING OPERATIONS PER COMMON SHARE | $0 | $0 |
BASIC AND DILUTED NET INCOME (LOSS) PER COMMON SHARE | $0 | $0 |
WEIGHTED AVERAGE NUMBER OF BASIC AND DILUTED COMMON SHARES OUTSTANDING | 111,954,012 | 110,433,855 |
CONSOLIDATED_STATEMENTS_OF_CAS
CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) (USD $) | 3 Months Ended | |
Mar. 31, 2015 | Mar. 31, 2014 | |
OPERATING ACTIVITIES | ||
Net income (loss) | $212,326 | ($279,640) |
Adjustments to reconcile net income (loss) to net cash used in operating activities: | ||
Unrealized foreign exchange gain | -266,183 | 198,998 |
Changes in working capital items: | ||
Other receivable | -38,291 | -53 |
Prepaid expenses | 1,806 | -642 |
Accounts payable and accrued liabilities | 57,692 | 60,613 |
Cash used in operating activities | -32,650 | -20,724 |
FINANCING ACTIVITIES | ||
CHANGE IN CASH | -32,650 | -20,724 |
CASH, BEGINNING | 50,883 | 23,260 |
CASH,ENDING | 18,233 | 2,536 |
SUPPLEMENTAL DISCLOSURE: | ||
Cash paid for interest | 195 | 10,612 |
NON-CASH INVESTING ACTIVITIES: | ||
Increase in accrued capital expenditures in oil and gas properties | 6,634 | 15,923 |
NON-CASH FINANCING ACTIVITIES: | ||
Shares issued for management fees | 19,423 | 0 |
Shares issued for services | 15,000 | 15,000 |
ORRI issued for conversion of debt | $0 | $940,000 |
1_BASIS_OF_PRESENTATION
1. BASIS OF PRESENTATION | 3 Months Ended |
Mar. 31, 2015 | |
Basis Of Presentation | |
1. BASIS OF PRESENTATION | Unaudited Interim Consolidated Financial Statements |
The unaudited interim consolidated financial statements of Holloman Energy Corporation (the “Company”) have been prepared in accordance with United States generally accepted accounting principles (“GAAP”) for interim financial information and the rules and regulations of the U.S. Securities and Exchange Commission (“SEC”). They do not include all information and footnotes required by GAAP for complete financial statements. However, except as disclosed herein, there has been no material changes in the information disclosed in the notes to the consolidated financial statements for the year ended December 31, 2014 included in the Company’s Annual Report on Form 10-K filed with the SEC. The unaudited interim consolidated financial statements should be read in conjunction with those consolidated financial statements and footnotes included in the Form 10-K. In the opinion of management, all adjustments considered necessary for fair presentation, consisting solely of normal recurring adjustments, have been made. Operating results for the three month period ended March 31, 2015 are not necessarily indicative of the results that may be expected for the year ending December 31, 2015. | |
Recent Accounting Pronouncements | |
In June 2014, the FASB issued Accounting Standards Update 2014-10, Development Stage Entities (Topic 915): Elimination of Certain Financial Reporting Requirements, Including an Amendment to Variable Interest Entities Guidance in Topic 810, Consolidation (ASU 2014-10), which eliminates the concept of a development stage entity (DSE) from U.S. GAAP. This change rescinds certain financial reporting requirements that have historically applied to DSEs and is intended to result in cost-savings for affected entities. ASU 2014-10 is effective for public entities for annual reporting periods beginning after December 15, 2014 and interim periods therein. | |
The Company adopted ASU 2014-10 on January 1, 2015, and has applied its guidance in the preparation of these unaudited interim consolidated financial statements. The application of ASU 2014-10 resulted in the removal of 1) inception-to-date information in the statements of operations and cash flows, 2) labels on the financial statements indicating the Company’s exploration stage status, 3) certain historic disclosures describing exploration stage activities in which the Company has been engaged. The Company does not believe, however, that the removal of this information will have a material effect on its unaudited interim consolidated financial statements or the related footnote disclosures thereto. | |
Risks and Uncertainties | |
Holloman Energy Corporation is a business that has not commenced planned principal operations. The Company is an oil and gas exploration and production company with assets in the Cooper/Eromanga basin in South Australia. The Company’s activities since inception have consisted of entering into a farm-in agreement with Terra Nova, which has acquired all seismic acquisition and drilling work associated with two Petroleum Exploration Licenses, PEL 112 and PEL 444. | |
Holloman Energy Corporation is a business whose planned principal operations are the exploration and production of oil and gas in South Australia. The Company has participated in the drilling of one well on PEL 112 that was unsuccessful. | |
During fiscal year 2014, the seismic data pertaining to PEL 112 and PEL 444 was reinterpreted to better reflect the formations on the licenses and resulted in the identification of eight possible drilling sites. The Company plans to raise additional capital to support the completion of those wells if they are anticipated to be productive. | |
The Company’s activities are subject to significant risks and uncertainties, including failing to secure additional capital to complete the Company’s possible productive wells. |
2_OIL_AND_GAS_PROPERTIES
2. OIL AND GAS PROPERTIES | 3 Months Ended |
Mar. 31, 2015 | |
Oil And Gas Properties | |
2. OIL AND GAS PROPERTIES | At March 31, 2015, the Company holds a 48.5003% working interest in two onshore Petroleum Exploration Licenses (PELs) in Australia. PEL 112 is comprised of 1,086 square kilometers (268,356 gross acres, 130,155 net acres), and PEL 444 is comprised of 2,358 square kilometers (582,674 gross acres, 282,601 net acres). Both licenses are located on the southwestern flank of the Cooper Basin in the State of South Australia. All of the Company’s oil and gas properties are unproven. As such, the costs capitalized in connection with those properties are not currently subject to depletion. |
3_SUBSEQUENT_EVENTS
3. SUBSEQUENT EVENTS | 3 Months Ended |
Mar. 31, 2015 | |
Subsequent Events [Abstract] | |
3. SUBSEQUENT EVENTS | On April 13, 2015, the Company sold 500,000 shares of common stock to a wholly-owned subsidiary of Holloman Corporation, to certain directors and officers of the Company, and to three non-affiliated persons. The shares were sold at a price of $0.20 each. Proceeds from the private placement totaled $100,000. The entire $100,000 was paid in cash. |
1_BASIS_OF_PRESENTATION_Polici
1. BASIS OF PRESENTATION (Policies) | 3 Months Ended |
Mar. 31, 2015 | |
Basis Of Presentation | |
Unaudited Interim Consolidated Financial Statements | The unaudited interim consolidated financial statements of Holloman Energy Corporation (the “Company”) have been prepared in accordance with United States generally accepted accounting principles (“GAAP”) for interim financial information and the rules and regulations of the U.S. Securities and Exchange Commission (“SEC”). They do not include all information and footnotes required by GAAP for complete financial statements. However, except as disclosed herein, there has been no material changes in the information disclosed in the notes to the consolidated financial statements for the year ended December 31, 2014 included in the Company’s Annual Report on Form 10-K filed with the SEC. The unaudited interim consolidated financial statements should be read in conjunction with those consolidated financial statements and footnotes included in the Form 10-K. In the opinion of management, all adjustments considered necessary for fair presentation, consisting solely of normal recurring adjustments, have been made. Operating results for the three month period ended March 31, 2015 are not necessarily indicative of the results that may be expected for the year ending December 31, 2015. |
Recent Accounting Pronouncements | In June 2014, the FASB issued Accounting Standards Update 2014-10, Development Stage Entities (Topic 915): Elimination of Certain Financial Reporting Requirements, Including an Amendment to Variable Interest Entities Guidance in Topic 810, Consolidation (ASU 2014-10), which eliminates the concept of a development stage entity (DSE) from U.S. GAAP. This change rescinds certain financial reporting requirements that have historically applied to DSEs and is intended to result in cost-savings for affected entities. ASU 2014-10 is effective for public entities for annual reporting periods beginning after December 15, 2014 and interim periods therein. |
The Company adopted ASU 2014-10 on January 1, 2015, and has applied its guidance in the preparation of these unaudited interim consolidated financial statements. The application of ASU 2014-10 resulted in the removal of 1) inception-to-date information in the statements of operations and cash flows, 2) labels on the financial statements indicating the Company’s exploration stage status, 3) certain historic disclosures describing exploration stage activities in which the Company has been engaged. The Company does not believe, however, that the removal of this information will have a material effect on its unaudited interim consolidated financial statements or the related footnote disclosures thereto. | |
Risks and Uncertainties | Holloman Energy Corporation is a business that has not commenced planned principal operations. The Company is an oil and gas exploration and production company with assets in the Cooper/Eromanga basin in South Australia. The Company’s activities since inception have consisted of entering into a farm-in agreement with Terra Nova, which has acquired all seismic acquisition and drilling work associated with two Petroleum Exploration Licenses, PEL 112 and PEL 444. |
Holloman Energy Corporation is a business whose planned principal operations are the exploration and production of oil and gas in South Australia. The Company has participated in the drilling of one well on PEL 112 that was unsuccessful. | |
During fiscal year 2014, the seismic data pertaining to PEL 112 and PEL 444 was reinterpreted to better reflect the formations on the licenses and resulted in the identification of eight possible drilling sites. The Company plans to raise additional capital to support the completion of those wells if they are anticipated to be productive. | |
The Company’s activities are subject to significant risks and uncertainties, including failing to secure additional capital to complete the Company’s possible productive wells. |
2_OIL_AND_GAS_PROPERTIES_Detai
2. OIL AND GAS PROPERTIES (Details Narrative) | Mar. 31, 2015 |
Oil And Gas Properties Details Narrative | |
Working interests in Petroleum Exploration Licenses | 48.50% |