Each one in plain English, with the numbers worked through for a shareholder.
6 Feb 2019capital raising announcement● NeutralMajor
On January 31, 2019 the company sold 178,101 units of new Series A preferred stock plus five-year warrants (strike $0.50) for $3,562,014.95 to new investors and to debt holders (Scot Cohen, converting $300,000, and Fortis Oil & Gas, converting $321,836). It also swapped about $2.3 million and $2.8 million of the senior secured notes (including interest) held by Petro Exploration Funding and Funding II for 116,374 and 140,130 Series A shares, cancelling those notes in full, and cut the strike on their 2017 warrants to $0.50 and extended them to five years. Net cash is stated as about "$3.0" (units missing in the filing), to fund ten more Osage County wells and a North Sea venture with Horizon Energy Partners. Investors get a 75% share of profits from those ten wells. The Series A ranks ahead of common stock and converts at $0.40 per common share (Series A holders' conversion gives about 8.9 million common shares for the units sold), so existing common holders face dilution (inference). This resolves the $2.0m and $2.5m related-party note thread and the MegaWest-era Fortis relationship now includes Fortis as a debt holder converting.
3 Oct 2018capital raising announcement● NeutralMajor
Effective September 24, 2018 (signed October 2, 2018) the company bought a 66.67% membership interest in LBE Partners, which owns working interests in wells in the Hardin oil field in Liberty, Texas, by issuing 300,000 shares to ICO Liquidating Trust. Both ICO and LBE are managed by Scot Cohen, the Executive Chairman, so this is a related-party deal. It adds a Texas asset to a portfolio previously centred on Oklahoma and California, and the filing gives no figures on the wells' production or value.
8 Nov 2017capital raising announcement● NeutralMajor
On November 6, 2017 the $2.5 million note to Petro Exploration Funding II closed on the terms announced in September, with a 1.25 million-share warrant at $2.00 and a 2% Osage County royalty. The company paid Scot Cohen $250,000 for that royalty, which he had bought from third parties on August 14, 2017. Cohen controls 41.20% of Funding Corp. II. The same day the company issued 1,466,667 shares to Pearsonia West Investments in exchange for its 46.81% membership interest in Bandolier Energy, which holds the 106,500-acre Osage concession. This resolves the open question over the Pearsonia West option and increases the company's stake in Osage; it also dilutes existing shareholders by the new shares.
16 June 2017capital raising announcement▼ BadMajor
On June 13, 2017 the company issued a $2.0 million senior secured note to Petro Exploration Funding, LLC for working capital, at 10% interest, maturing June 30, 2020, and secured on all company assets. Funding Corp. also received a warrant for 840,336 shares at $2.38 (three years) and a 2% overriding royalty on Osage County production held through Spyglass. Scot Cohen controls 31.25% of the lender, so this is a related-party financing.
5 Mar 2015capital raising announcement● NeutralMajor
The Havelide purchase closed on Feb 27, 2015 with 13,333,333 shares and the $0.25 warrant for 26,666,667 shares issued, resolving the pending condition from the earlier filing. A second Petro Spring deal also closed the same day, buying Coalthane Tech's methane-reduction technology for 20.0 million shares. Together this adds 33,333,333 new shares plus the warrant, so existing holders are diluted in exchange for early-stage technology assets.
16 Dec 2013capital raising announcement▲ GoodMajor
On December 12, 2013 the company agreed to sell 81,250,000 shares at $0.08 ($6.5 million) to Petrol Lakes Holding Limited, a non-U.S. buyer, plus a warrant for up to 40,625,000 more shares at $0.1356 (another $6.5 million if fully used) expiring December 12, 2015. After a $650,000 finder's fee, net proceeds are $5,850,000. Petrol Lakes may appoint one director. The press release says proceeds will fund development and that a potential joint venture in the 85,000 net Kansas acres is being discussed (no assurance); new shares dilute existing holders.
What it means for a shareholder
81.3m new shares at $0.080 to raise about $6.5m. That's 9.0% dilution: every existing holder's slice gets 9.0% smaller. If you held $1,000 of shares (12,500 at the issue price), your slice goes from 0.00153% to 0.00139% of the company. To keep it you'd need 1,241 more shares - about $99 at the issue price.
10 May 2013capital raising announcement● NeutralMajor
Effective May 6-7, 2013 the company issued new shares: 200,000 to a former employee in a lawsuit settlement, and shares on conversion of series B preferred stock (19,165,061 shares) and convertible debentures and notes (26,241,392, 25,577,986 and 45,480,165 shares). Shares outstanding rose to 737,317,748, continuing the dilution that followed the April share exchange and clearing out the older convertible securities.
