Each one in plain English, with the numbers worked through for a shareholder.
31 May 2017capital raising announcement● NeutralMajor
Petrolia converted $2,000,000 of the debt it owed Jovian (the seller of the SUDS field) into 10,000,000 new shares at $0.20 plus 10,000,000 warrants ($0.20 on 6,000,000 and $0.35 on 4,000,000). That covers the whole $1,000,000 note and $1,000,000 of the $3,000,000 production payment note, leaving $2,000,000 owing. Filing says it cuts debt and expected annual interest by about $50,000, but it dilutes existing shareholders. Jovian is a related party; directors Beasley and Khan abstained. This continues the Jovian debt thread from the October 2016 SUDS purchase.
21 Feb 2017asset acquisition disposition▲ GoodMajor
Petrolia bought Dead Aim Investments' 60% working interest in the Twin Lakes San Andres Unit (New Mexico), taking its stake from 40% to 100%. The price was $639,675: forgiveness of the $316,800 value of the Orbit Petroleum bankruptcy estate note (the $1.3M face value note Dead Aim had assumed) plus a write-off of $322,875 of Dead Aim's receivables owed to Petrolia. No shares or new cash are mentioned as payment. This resolves the open question over the defaulted Orbit note, which is used here as consideration. The board was also enlarged from five to seven seats.
5 Oct 2016asset acquisition disposition● NeutralMajor
The company raised its SUDS field (Creek County, Oklahoma) interest from 10% to 100% by buying 90% from Jovian, the company linked to CEO Zel Khan. It paid with two notes totaling $4,000,000 for 50% (a $1,000,000 note at 5% due December 31, 2016 and a $3,000,000 production payment note) and 24,308,985 restricted shares worth $4,373,186 for 40%. This continues the 2015 SUDS purchase, adds debt secured by the field, and heavily dilutes shareholders. Counterparty is tied to the CEO (related party).
Now named Petrolia Energy Corporation (and a Texas corporation), the company bought a further 25% interest in the Twin Lakes San Andres Unit from Whistler Ventures for 3.5 million restricted shares worth $350,000 ($0.10 per share), bringing its stake to 40% including the 15% bought in 2015. The filing cites internal estimates of about 2.56 million barrels of oil equivalent. It continues the build-up of this field and dilutes shareholders.
The company bought 100% of Askarii Resources, a dormant Texas oil field service company, for one million restricted shares valued at $50,000 ($0.05 per share). The company says it will use it for oilfield services and heavy equipment leasing. It adds a service business alongside its producing interests and slightly dilutes shareholders.
