16 Oct 2019listing compliance notice▼ Bad
PetroShare Corp. withdrew a registration statement, abandoning the offering it covered.
Announcements, explained
Each one in plain English, with the numbers worked through for a shareholder.
11 Sept 2019bankruptcy or receivership● Neutral
A second amendment-style repeat of the September 4, 2019 Chapter 11 filing (PetroShare and CFW Resources, D. Colo. Case No. 19-17633), filed to change the link for court documents to bmcgroup.com/petroshare. The rest restates the original: the Feb 2018 secured loan and unsecured notes are in default (the secured loan was already accelerated and the unsecured notes matured Dec 31, 2018), enforcement is stayed, the company may recapitalise or sell some or all assets, and trading in its stock is 'highly speculative' with prices that may bear little or no relation to any shareholder recovery. No new substance and no outcome for shareholders is stated.
10 Sept 2019bankruptcy or receivership● Neutral
This is an amendment to the September 4, 2019 bankruptcy filing that only changes the web link for court documents (now bmcgroup.com/petroshare). The rest repeats the original: the Chapter 11 filing and the warning that stock recoveries are uncertain. No new substance.
4 Sept 2019bankruptcy or receivership▼ BadMajor
On September 4, 2019 PetroShare and its subsidiary CFW Resources, LLC filed for Chapter 11 bankruptcy in Colorado (Case No. 19-17633). This triggered default and acceleration on the February 2018 secured loan and the unsecured notes, although the filing says the secured loan had already been accelerated and the unsecured notes matured December 31, 2018. The company says it may recapitalise, possibly selling some or all assets, and blames Colorado's new regulatory environment and weak investment conditions. It warns that stock trading is highly speculative and prices may bear little relation to any recovery for shareholders. No outcome for shareholders is stated yet.
14 Aug 2019quarterly activities report● Neutral
PetroShare Corp. reported quarterly revenue of $5.9 million and net income of $1.5 million for the period ended 2019-06-30.
15 May 2019quarterly activities report▼ Bad
PetroShare Corp. reported quarterly revenue of $5.0 million and a net loss of $5.6 million for the period ended 2019-03-31.
2 Apr 2019late filing notice▼ Bad
PetroShare Corp. notified the SEC that its annual report would be filed late.
5 Mar 2019asset acquisition disposition● NeutralMajor
The sale of all non-operated horizontal wells to Grizzly Petroleum Company, LLC closed on February 27, 2019 for about $15.5 million net cash, below the $16.5 million headline price, after closing costs and adjustments. The Shook Pad operated wells were kept. The lenders consented only on condition the proceeds go into a bank account they control, and they decide how it is used, which may include paying payables, repaying part of the secured loan, or working capital.
28 Jan 2019substantial holder notice● Neutral
CamCap Resources Offshore Master Fund, L.P, CamCap Resources Partners, LLC, Cambrian Capital, L.P, Cambrian Capital, LLC, Ernst von Metzsch, Roland von Metzsch reported a PetroShare Corp. shareholding of 1,260,000 shares (4.50% of votes) in a periodic institutional filing.
22 Jan 2019material agreement● NeutralMajor
On January 15, 2019 PetroShare agreed to sell its interests in all non-operated horizontal wells in the Wattenberg Field to an unnamed buyer for $16.5 million cash, effective January 1, 2019, with closing scheduled for February 25, 2019. The operated Shook Pad is excluded. Price can be adjusted for title and environmental issues, either side can decline to close if those exceed 15% of price, and the company needs consent from its secured lenders. This looks like one result of the strategic review begun with Seaport in 2018 (inference).
13 Nov 2018quarterly activities report▼ Bad
PetroShare Corp. reported quarterly revenue of $5.2 million and a net loss of $1.4 million for the period ended 2018-09-30.
14 Aug 2018quarterly activities report▼ Bad
PetroShare Corp. reported quarterly revenue of $4.6 million and a net loss of $110 thousand for the period ended 2018-06-30.
20 June 2018material agreement● NeutralMajor
On June 14, 2018 PetroShare hired Seaport Global Securities LLC to advise on strategic and financing alternatives, which the filing says could include selling part, all or substantially all of the assets, a business combination, or a merger into another entity. No specific transaction or terms are given.
11 May 2018quarterly activities report▼ Bad
PetroShare Corp. reported quarterly revenue of $2.1 million and a net loss of $1.5 million for the period ended 2018-03-31.
7 Feb 2018capital raising announcement● NeutralMajor
On February 1, 2018 PetroShare signed a $25 million secured term credit agreement with Providence Wattenberg, LP and 5NR Wattenberg, LLC, made up of the $5 million advanced in December 2017 plus $20 million funded at closing. This is the second funding expected in the earlier context, and it completed. It is due February 1, 2020, with interest at 14% plus the greater of 3-month LIBOR or 1% (capped at 17%), and is secured on all assets. The lenders can convert it to stock at $1.15 (20% of principal) and $1.55 (the rest), and received 1,500,000 penny warrants, rights to buy up to 50% of future offerings through 2018 (25% after), and an option to buy up to $25 million of stock from the maturity date. The company also agreed to lender board seats and consent rights over equity, debt, asset sales and key hires. Proceeds repaid the PEO line ($5.5 million) and part of the PEP III line ($1.5 million plus $500,000 interest), leaving $2.1 million due June 30, 2018, and $1.25 million commitment fee was paid with another $1.25 million underwriting fee due before February 1, 2019. The press release says the Shook pad wells are drilled, cased and cemented and completion plans are being finalised
27 Dec 2017capital raising announcement▼ BadMajor
On December 21, 2017 PetroShare borrowed $5 million from Providence Energy Ltd. (an affiliate of its existing Providence lender), secured on all its assets, at the greater of 3-month LIBOR or 1% plus 14%, and used it to pay overdue accounts payable. The lenders also got warrants for 1,500,000 shares at $0.01 and can name up to three directors, and the company needs their consent for new equity or debt, mergers, asset sales or key hires or firings. A further $20 million loan is expected around January 28, 2018, but is not certain; if it fails the $5 million is due by February 16, 2018 and a $250,000 fee is payable if the failure is not the lenders' fault. This is a significant shift of control toward lenders and the penny warrants could dilute shareholders.
14 Nov 2017quarterly activities report▼ Bad
PetroShare Corp. reported quarterly revenue of $2.8 million and a net loss of $1.7 million for the period ended 2017-09-30.
1 Nov 2017capital raising announcement● NeutralMajor
The Series B offering ended with a final closing on October 26, 2017 ($405,000 from six investors), for $4,724,900 in total, of which ten officers and directors bought $570,000; commissions to GVC Capital totalled $204,203. The company also says it converted $5,166,800 of principal and $137,706 of interest into about 4.82 million shares at $1.10 when the stock was worth $1.38, and will book a loss in Q4 2017 for the cheaper conversion price. This completes the raise and conversion described earlier, and the figures differ slightly from the October 20 filing (4,936,799 and 4,488,000 shares).
20 Oct 2017capital raising announcement● NeutralMajor
On October 17, 2017 PetroShare sold another $2,624,900 of 15% Series B convertible notes to 53 investors, with a final closing expected October 23. Holders of the earlier 10% notes could convert twice their Series B purchase at $1.10 per share (instead of $1.50) by October 15; $4,936,799 of those notes were converted into 4,488,000 shares. This continues the Series B raise, and the conversions cut the 10% note debt but add shares for existing holders.
11 Oct 2017agm notice● Neutral
PetroShare Corp. shareholders approved the routine matters put to a vote at the company's annual meeting (director elections, auditor ratification, and the executive-pay advisory vote).
25 Sept 2017securities registration● Neutral
PetroShare Corp. filed notice of an exempt private placement.
25 Sept 2017capital raising announcement▼ BadMajor
On September 25, 2017 PetroShare sold $1,695,000 of new 15% unsecured convertible notes (due December 31, 2018, convertible at $1.50) to 27 investors, including five officers and directors who bought $380,000. The Providence lenders consented and waived any default over the offering; in exchange the company must use the money only for drilling costs and upkeep on wells securing the Providence loans, issue 250,000 shares to Providence Energy Operators, raise the interest on the $5,000,000 initial credit line to 10% from September 1, and start paying interest in Q4 2017 and meet Providence at least twice a month on working capital. The filing also shows the supplemental line was cut by a $3,552,500 repayment on April 12 and its maturity extended to December 27, 2017. This is new, costlier borrowing on top of the 10% notes, and the stock issue and conversion rights could dilute holders.
14 Aug 2017quarterly activities report▼ Bad
PetroShare Corp. reported quarterly revenue of $4.5 million and a net loss of $300 thousand for the period ended 2017-06-30.
14 Aug 2017quarterly activities report▼ Bad
PetroShare Corp. reported quarterly revenue of $4.5 million and a net loss of $300 thousand for the period ended 2017-06-30.
16 June 2017auditor change● Neutral
On June 13, 2017 PetroShare's audit committee dismissed its auditor SingerLewak LLP and hired Eide Bailly LLP. The filing says SingerLewak's reports for 2016 and 2015 had no adverse opinion or qualification, and there were no disagreements or reportable events.
9 June 2017material agreement▼ BadMajor
On June 8, 2017 PetroShare agreed with its Providence lenders to push the supplemental credit line (about $3.6 million outstanding) from a June 13 maturity to July 18, 2017, with possible extension to December 27, 2017, and the interest rate rose from 8% to 10%. In return, Providence's option to take part in the company's acquisitions is widened to more townships and extended to June 1, 2019; if the line is not repaid by July 18, the option is expanded further and a second Providence affiliate gets an option on up to 10%. This shows the line was not repaid at its prior due date and the company gave up more of its acquisition rights to extend it.
19 May 2017securities registration● Neutral
PetroShare Corp. registered a securities offering with the SEC.
15 May 2017quarterly activities report▼ Bad
PetroShare Corp. reported quarterly revenue of $1.5 million and a net loss of $2.0 million for the period ended 2017-03-31.
7 Apr 2017securities registration● Neutral
PetroShare Corp. filed notice of an exempt private placement.
6 Apr 2017asset acquisition disposition● NeutralMajor
PetroShare closed the Morning Gun purchase on April 3, 2017, which resolves the February agreement. Providence Energy Operators took 50% of the interest for about $1.3 million, leaving PetroShare about 1,462 net acres; its net price was $1,284,589 after a title-defect reduction, paid by the $258,250 deposit, $216,339 in cash and 450,000 new shares valued at $1.80 each. The shares are restricted from resale and add to the share count.