On September 18, 2015 New Western granted an unnamed creditor, who is already a shareholder, options over 50,000,000 shares at a $0.00 exercise price (expiring September 18, 2020) in return for cancelling the 10% Secured Debenture of November 12, 2013 ($1,500,000 original amount) with all related interest and penalties and releasing its security. The claims released were valued at $2,000,000 for settlement; this clears the November 2013 debenture financing but could add up to 50 million new shares if the options are exercised, which would dilute existing holders.
On September 5, 2014 New Western sold two Wilson County, Kansas leases to an unrelated purchaser who had taken over the $1,040,000 owed to Hillair Capital, and the debt was cancelled in exchange. The company says this removed $1,040,000 of debt and produced a gain on the sale; the press release adds that the leases were bought in December 2013 for $470,000 and that Hillair's first-priority security over company assets is cancelled.
On April 30, 2014 New Western and Legend Oil and Gas mutually terminated their January 2014 merger agreement, with no further liability on either side. This ends the Legend acquisition thread; the company says it will keep looking at other acquisitions, and the filing gives no reason for the termination.
On January 23, 2014 New Western agreed to acquire Legend Oil and Gas Ltd. through a merger, issuing one New Western share for every three Legend shares (about 40.9 million shares in total), with closing expected in the second quarter of 2014. It needed Legend shareholder approval and an SEC registration statement, and would add Legend's Canadian production (about 117 barrels of oil equivalent a day) and Kansas properties.
On December 2, 2013 New Western bought the 80-acre Winchester II lease in Rogers County, Oklahoma from Tenoak Oil Co. LLC for $97,500 ($60,000 cash plus 150,000 shares). The lease has 5 oil and gas wells and a water injection well producing about 4 barrels a day, taking the company's Oklahoma leasehold to roughly 1,830 acres; it fits a water-flood programme the company says it has planned for 2014.
The financing closed three days later at $1.5 million of principal for only $1.2 million of new cash, the rest being old debt rolled in, plus warrants over 7.5 million shares at 25 cents. Management presented it as funding for Kansas and Oklahoma drilling.
New Western agreed to sell convertible debentures with warrants attached to a group of private investors on terms that booked $1.12 of debt for every dollar it received. Expensive money for a small Kansas and Oklahoma operator.
4 Jan 2013asset acquisition disposition▲ GoodMajor
On December 31, 2012 New Western bought 8 oil and gas leases (1,520 acres, 106 oil wells and 8 disposal wells) in Rogers County, Oklahoma from Pioneer Oil Development LLC for $600,000, paid as 400,000 shares plus $300,000 cash over 12 months via two promissory notes. The company says it intends to fund work to bring the wells into production and drill more, which adds to its Oklahoma position (Phillips Lease) and will require development spending.
New Western brought in Carroll Energy, a Kansas operator of thirty years' standing, to prepare the engineering, reserves and geological reports on its 1,700-acre B&W Ranch lease - its largest holding. A very small company buying in the technical work it could not do itself.
6 Jan 2012asset acquisition disposition▲ GoodMajor
New Western completed its purchase of Royal Texan Energy Co. on January 2, 2012, for 1,000,000 new shares plus $35,000 cash, a $55,000 promissory note ($10,000 a month) and a guarantee of about $50,000 of RTE's bank debt. RTE holds leases on about 1,280 acres in Shackelford and Stephens Counties, Texas, with 43 wells of which three are active, and also oversees the company's Jones County, Texas well; it will run as a separate subsidiary.
Amended report of an October 24, 2011 agreement: New Western signed a joint venture and operating agreement with PEMCO, LLC, an unrelated party, to oversee operations at the Phillips Lease in Rogers County, Oklahoma, where it owns a 75% net working interest (150 acres, seven-well re-completion project). New Western agreed to pay its 75% share of operating, maintenance and work-over costs.
An amended 8-K (8-K/A) was filed on 2011-12-14 under Items 1.01 and 9.01, but no text was provided for this filing. Its content cannot be summarised; it appears to be one of three same-day amendments, one of which (the third) covers the PEMCO joint venture.
An amended 8-K (8-K/A) was filed on 2011-12-14 under Items 1.01 and 9.01, but no text was provided for this filing. Its content cannot be summarised; it appears to be one of three same-day amendments, one of which (the third) covers the PEMCO joint venture.
