History
Century Petroleum raised money repeatedly at falling prices from 2006 to 2008 to buy Louisiana and Texas oil and gas interests, then deregistered from SEC reporting in 2018.
2006: Raising cash and buying Louisiana acreage
The company, a Nevada registrant that first filed as Som Resources Inc. and later as Century Petroleum Corp., began its recorded story in June 2006. It closed a private placement of 658,571 units for $2,205,000, each unit being one share plus a warrant (a right to buy another share later) at $10.50. Two days later it paid $2,000,000 cash to Site Drilling Force Limited for a 100% working interest and 75% net revenue interest in 32 leases covering 1,224 gross acres in Beauregard Parish, Louisiana. Those leases expire between November 2008 and March 2009.
In August it took an assignment of leases in DeWitt County, Texas from Falcon Natural Gas Corporation, and sold 425,000 units for $425,000 with warrants at $1.50. The Falcon deal was terminated by November, with no reason given. In October it sold another 600,000 units for $750,000. The falling unit prices, from a $10.50 warrant strike to $1.75, showed up early. In December it signed an agreement with E&P Investments GmbH, which would advance up to $5,000,000 in tranches of at least $500,000 in return for units.
2007-2008: Drawing on E&P
The E&P money began flowing in January 2007, when 248,756 units at $2.01 were issued for $500,000. The same filing recorded an amended employment deal for president James B. Hersch (US$11,000 a month) and an issue to him of 5,000,000 restricted shares held in escrow, vesting 250,000 every three months from October 1, 2006. In February the company signed a non-binding letter of intent with Houston Energy and Red Willow Offshore to buy an interest of about 8.9% in the Shadyside Prospect in St. Mary Parish, Louisiana. No completion was reported.
In July 2007 it completed the purchase of a 10% interest in the Alligator Bayou Prospect from CTC Minerals for $800,000, and took a $1,000,000 E&P advance, issuing 1,785,714 units at $0.56. Later draws came at similar or lower prices, the last in the record being $350,000 at $0.43 in March 2008. In April 2008 the company agreed to sell 4% of its Alligator Bayou interest to three parties, but the outcome is not reported.
2008-2018: A small raise, then deregistration
On November 6, 2008 the company closed a private placement of 2,000,000 units at $0.15 for $300,000 with one US person. Each unit carried 1.5 warrants, 3,000,000 in all, exercisable at $0.20 for twelve months. The price was far below the 2006 and 2007 raises, so existing holders were diluted heavily. The record does not say what happened to the Beauregard leases as they neared expiry.
The record then goes quiet for nearly a decade. In February 2018 Century Petroleum deregistered its securities, ending its obligation to file reports with the SEC.
Written from the 10 story beats below (2006 to 20 Feb 2018), which come from the company's own announcements and filings.