Each one in plain English, with the numbers worked through for a shareholder.
16 Nov 2011financial restatement▼ Bad
This amended filing repeats the November 10 restatement notice, responding to SEC staff comments. It adds that the board decided on November 9, 2011 that the June 2011 quarterly statements should not be relied on, and that the amended quarterly report is planned for about December 15, 2011. The adjustment figures are unchanged.
The company said its June 2011 quarterly financials should no longer be relied upon, because audit adjustments to Sandstone's accounts lowered December 31, 2010 total assets by $388,939 to $3,014,363 and shareholders' equity by $427,448 to $1,857,185, mainly from expensing costs previously capitalised as oil and gas properties. It plans to amend the quarterly report. This is a setback for the reliability of the figures after the Sandstone deal.
TDLOG, LLC EIN #, Thomas E. Lipar, Daniel Trombley reported a Eagle Ford Oil & Gas Corp shareholding of 12,179,746 shares (37.60% of votes) in a periodic institutional filing.
Wood Limited Partnership EIN #, Charles D. Wood Jr., LLC EIN:, Charles D. Wood Jr disclosed a new substantial Eagle Ford Oil & Gas Corp shareholding (7.80% of votes).
19 Aug 2011asset acquisition disposition● NeutralMajor
In August 2011 the company bought the remaining ownership of three Sandstone partnerships (SSEP1, 2 and 3) for 8,970,120 new common shares, having held 50% of each since the Sandstone deal. It now owns the whole 38.75% working interest in 2,315 acres in Lee County, Texas. The filing says the Vick No. 1 well was abandoned, the Vick A2 well has had falling output, and the Alexander No. 1 has had stop-start production. The new shares further dilute existing holders and went largely to the same Sandstone-linked owners (e.g. TDLOG, 3,251,189 shares).
On August 5, 2011 the company bought a 1.5% working interest in the Bayou Choctaw Project in Iberville Parish, Louisiana from GFX Energy for $100,000 plus 75% of costs GFX incurred before the July 1, 2011 effective date (excluding the prospect origination and development budget). This adds a small Louisiana position alongside the Lee County, Texas interest from the Sandstone deal.
On June 20, 2011 the company acquired all of Sandstone Energy, L.L.C. for 17,857,113 new common shares, which became 82% of the common stock, so control passed to Sandstone's former owners (mainly TDLOG and Driftwood Resources). Sandstone's one significant asset is a 38.75% working interest in 2,315.6 gross acres in Lee County, Texas, with two producing wells run by a third party. Paul Williams became CEO and Sandy Cunningham President/COO; Tom Lipar became Chairman, and Richard Adams stays as CFO and director. The board authorised a private placement of up to $6 million, and the company expects to rename itself Sandstone Energy. Before the deal, the last preferred stock (Series D) was converted into 363,698 common shares plus warrants for 1,000,000 shares at $0.50. Existing holders were heavily diluted.
On April 7, 2009 the boards of ECCO and Samurai mutually agreed to terminate the Ohio properties purchase and cancel the related notes, citing current market conditions in the oil and gas industry. This reverses the March 2009 report, and the filing says all related financial agreements were cancelled. It does not say what happens to the $1,000,000 pipeline note to M-J Oil Company, so that is unresolved.