Each one in plain English, with the numbers worked through for a shareholder.
14 May 2014asset acquisition disposition▲ GoodMajor
After the federal ocean energy regulator (BOEM) awarded it leases, GulfSlope completed three Gulf of Mexico leases in May 2014 (Eugene Island South Addition 371, Ship Shoal South Addition 335, Grand Isle South Addition 103). The three together cost $1,119,910, with annual rentals of $105,000, cover 15,000 acres and expire in May 2019. This is the first lease ownership after the earlier cost write-off, which was tied to not yet owning properties. It also agreed to buy $3 million of seismic reprocessing before May 2015, $1.5 million in cash and the rest in 2 million shares, and a registration for resale of 63,240,335 shares became effective.
GULFSLOPE ENERGY, INC. shareholders approved the routine matters put to a vote at the company's annual meeting (director elections, auditor ratification, and the executive-pay advisory vote).
GULFSLOPE ENERGY, INC. shareholders approved the routine matters put to a vote at the company's annual meeting (director elections, auditor ratification, and the executive-pay advisory vote).
On March 10, 2014 the company signed a farm-out letter agreement with Texas South Energy: Texas South can acquire up to a 20% working interest in five prospects for up to $10 million, payable by April 11, 2014, and shares rental costs. GulfSlope must refund all or part if it cannot obtain the leases and cannot substitute similar prospects, and stays as operator. Director James Askew (8.8% holder) is CEO and a 10%+ holder of Texas South, so this is a related-party deal.
The company said its earlier quarterly results for March and June 2013 should no longer be relied on. Previously capitalised seismic-related costs were written off as impairments of $12,582,927 for the March quarter and $14,542,055 for the nine months to June 30, 2013, increasing the reported net loss by the same amounts. The filing says the cost was reclassified because the company did not yet own the properties the costs related to; it is an accounting correction, not a statement about cash.
Now named GulfSlope Energy and incorporated in Delaware, the company held an initial closing of a new private placement on June 1, 2012, issuing 16,500,000 shares at $0.01 for gross proceeds of $165,000, for general corporate purposes. More shares in issue dilutes existing holders; the filing calls this an initial closing, so more may follow.
What it means for a shareholder
16.5m new shares at US$0.010 to raise about US$165,000. That's 41% dilution: every existing holder's slice gets 41% smaller. If you held US$1,000 of shares (100,000 at the issue price), your slice goes from 0.423% to 0.249% of the company. To keep it you'd need 69,767 more shares - about US$698 at the issue price.
