Each one in plain English, with the numbers worked through for a shareholder.
16 Dec 2016material agreement▲ GoodMajor
On December 12, 2016 the company agreed with Magna Operating, LLC to take part in the Labokay prospect (about 240 acres, Calcasieu Parish, Louisiana), its first Gulf Coast project. Its subsidiary owed Magna $144,000 for land, lease and admin costs, will drill and operate a test well, and earns 100% before payout with Magna backing in for 20% after; the company expects to start drilling in early Q1 2017 and gets a five-year area of mutual interest with access to Magna's 3D seismic data.
Now named Foothills Exploration, Inc. (FTXP), the company signed a farmout with Koch Exploration Company on the Ironwood and Paw Paw prospects in Wyoming's Big Horn Basin (about 10,583 acres combined). It gets 100% of the first Paw Paw well until payout, after which Koch backs in for 25%, and can earn 75% of Ironwood by paying all costs of a test well by July 1, 2017. The company says it plans to drill its first well before the end of 2016; the 7 million barrel figure is a possible recoverable estimate, not proven reserves.
This amendment corrects the audit years referenced in the July 22 notice (now 2015 and 2014) and gives the board approval date for RBSM as July 15, 2016. The auditor change itself (LBB out, RBSM in, no disagreements) is unchanged.
On July 18, 2016 the board dismissed its auditor LBB & Associates and hired RBSM LLP. The filing says there were no disagreements, and LBB's earlier reports carried a going-concern doubt; this followed the Foothills Petroleum takeover. The filing contained wrong year references that were corrected in the next amendment.
7 July 2016capital raising announcement● NeutralMajor
On June 30, 2016 the company agreed to sell 3,007,519 new shares to Berwin Trading Limited at $0.665 per share, raising $2 million. This is the first new money raised since the Foothills Petroleum share exchange and adds new shares for existing holders (dilution).
What it means for a shareholder
3.0m new shares at $0.665 to raise about $2.0m. That's 21% dilution: every existing holder's slice gets 21% smaller. If you held $1,000 of shares (1,504 at the issue price), your slice goes from 0.013% to 0.0103% of the company. To keep it you'd need 392 more shares - about $261 at the issue price.
10 June 2016asset acquisition disposition● NeutralMajor
Key Link Assets Corp., a shell that had planned to buy grocery stores, acquired all of Foothills Petroleum, Inc. on May 27, 2016 in a share exchange, issuing 6,003,759 new shares (4,500,000 to Wilshire Energy Partners and 1,503,759 to Alternus Capital Holdings). Foothills Petroleum's holders now own about 71.8% of roughly 8,363,759 shares outstanding, and the company's business becomes oil and gas acquisition and development. Foothills Petroleum has no revenue and holds Wyoming leases (38,120 acres Springs Prospect, a 35% working interest in the 3,061-acre Ladysmith prospect) and about $1,000,000 of 8% convertible notes owed to Alternus; the filing also says Wilshire got 700,000 warrants and 14.1 million shares bought earlier by Foothills (about 96%) are cancelled.
