History
A small shell company that bought Alberta oil stakes in 2005 was taken over by a Texas oil business in 2010, then turned to convertible debt in 2011 and moved to stop SEC reporting in 2012.
2005: Alberta stakes
The company, then called Paradigm Enterprises, Inc., moved into oil and gas in early 2005. It brought in Robert L. Pek as director and President, while the previous president and secretary resigned. It paid Win Energy Corporation a total of $506,014 for 5% working interests (shares in a well's costs and output) in the Hillsprings and Todd Creek properties in Alberta, with an option on more of Hillsprings.
In July it sold half of its 10% Todd Creek interest back to Win Energy for a net CA $117,442.50, leaving it with 5% of the Todd Creek 13-28 well, which was in final completion. Its auditor resigned, saying it did not audit petroleum companies, and Telford Sadovnick replaced it. The record then goes quiet for several years, and what became of the Alberta interests is not stated.
2010-2011: A Texas takeover and new financing
In January 2010 the company issued 42,000,000 shares for 100% of Integrated Oil and Gas Solutions Inc., which held 100% working interests in four Texas leases covering about 934 net acres, with nine wells that had previously produced. Shares outstanding rose from 188,000 to 42,188,000. Black Pearl Petroleum LLC received 27,594,000 shares, about 65.41%, and took control. Brian Kennedy became director and chief financial officer. Shares on issue stood at 53,287,826 at the end of 2010 and 61,131,457 at the end of 2011.
In October 2011 the company agreed with La Jolla Cove Investors to a $200,000 convertible debenture (a loan that can turn into shares), funded in November, plus an equity purchase facility of up to $2,000,000. Conversion was at the lesser of $0.60 or 70% of a low average share price, so a falling price would mean more shares issued. La Jolla could also buy a second $300,000 debenture and a $3,000,000 facility.
2012: Stepping back from reporting
On June 27, 2012 the company suspended its duty to file periodic reports with the SEC. It withdrew that filing on September 24, 2012 and continued reporting, with Todd Violette as chief executive and an address in Eustace, Texas. A further suspension notice followed on December 27, 2012. As of the latest context, 53 holders of record remained, the La Jolla dilution was still open, and financial statements for the Texas subsidiary had been promised.
Written from the 6 story beats below (2005 to 27 Dec 2012), which come from the company's own announcements and filings.