History
Maverick Minerals lost its Texas lease, fell under a controlling shareholder who converted debt into shares, and by late 2012 had turned from oil and gas toward a Canadian barite option.
2005-2008: The S. Neill lease and its unwinding
In 2005 Maverick's subsidiary, Eskota Energy, bought the S. Neill oil and gas lease in Texas, backed by a $1,400,000 note. In December 2005 the note-holder, who also operated a lease where the subsidiary held a royalty interest, demanded full repayment over unpaid bills. By March 2006 Eskota had stopped paying interest and received a formal foreclosure notice. It reached an accord, agreeing to pay interest arrears and assign its interest in another lease toward the roughly $90,000 of unpaid bills.
That deal did not last. In July 2006 Eskota gave the lease back. The vendor released the $1,400,000 note and took over the unpaid bills. Maverick said rising service and equipment costs and operating difficulties made the burden unacceptable. In April 2008 the board also concluded that its 2005 accounts, and several quarterly reports, could not be relied on. They included a $419,959 impairment (a write-down) of the oil and gas leases. Restated filings were promised by May 15, 2008.
2009-2010: Change of control and a new Texas farm-out
In February 2009 Maverick took a revolving loan of up to US$1,000,000 from Senergy Partners LLC at 8%. It also issued Senergy 89,500,000 shares to settle a US$447,500 debt, giving Senergy 92.3% of the stock and a change in control. The company described itself as exploration-stage, with no property, and was weighing joint ventures in Texas and Saskatchewan.
In December 2009 it signed a farm-out with Southeastern Pipe Line Company for leases in Fort Bend and Wharton Counties, Texas. It needed to pay a non-refundable $350,000 fee, start a test well by December 14, 2010, and drill at least four wells. In September 2010 it issued 725,971 shares at $1.05 to Art Brokerage to settle $762,269 of debt.
2010-2011: Selling down the test well
In December 2010 Maverick sold part of the working interest in its first test well, Lankford Trust No. 1. John F. Kearney paid $500,000 for 15%, and Arrowdog, LLP paid $150,000 for 3% and was carried at no cost. Kearney's side also bought 500,000 shares at $0.50. Maverick stayed operator. The filings reviewed do not report the well's result, and the record is quiet on the Texas project afterwards.
2012: Debt cleared and a turn to barite
The head office moved from Saskatoon to Toronto in April 2012. In June Maverick took an option from Energold Minerals Inc. to earn up to 51% of the Jarvis Island Property, a barite claim group near Thunder Bay, Ontario. The first 30% required shares and $200,000 of spending by September 2014, and the options lapse if the first is not exercised by September 15, 2013.
In August it settled large debts owed to lenders owned by Donna Rose, who held about 80.18% of the company. It issued 650,000 shares to Art Brokerage against a defaulted $2,633,799.40 loan, and 100,000 shares to Senergy against a $434,435.93 loan. Art Brokerage also forgave two loans totalling $675,855.62. The share count is far below the 2010 figure. The filings do not explain this, though it may reflect a consolidation. In September Energold bought a CDN$300,000 convertible debenture, which was converted on October 29, 2012 into 3,039,057 shares at $0.10. As of that date Maverick held a Jarvis option and a Texas farm-out right, and the going-concern doubts noted in earlier reports remained.
Written from the 12 story beats below (2005 to 2 Nov 2012), which come from the company's own announcements and filings.