QUANTUM ENERGY INC. (QREE) company history: the story so far

History

A cultural-development shell turned to Texas oil and gas in 2006, unwound part of that deal, went quiet, then agreed a Wyoming oil deal in 2019 whose closing is unconfirmed.

2006-2007: A move into Texas oil and gas

The company began as Boomers' Cultural Development Inc., a cultural-development business. On May 19, 2006 it agreed to buy KOKO Petroleum's Texas oil and gas assets for 1.5 million company shares and to take on about $1,500,000 of KOKO's notes. It also agreed to pay $150,000 to JMT Resources for the Corsicana Polymer Flood Pilot Program, and to cover up to $100,000 of KOKO's legal and audit costs for an OTCBB listing. The assets included three producing wells on the McKinney lease, an interest in the Corsicana pilot, and 10% working interests in two Barnett Shale wells. The deal closed on June 12, 2006, and the company became an oil and gas business.

It did not go smoothly. By the end of 2006 the company and other investors had an irreconcilable disagreement with JMT, the operator. On January 31, 2007 it sold its Corsicana interests back to JMT for $308,200 and was released from liabilities on them. It kept its Barnett Shale interests. The record does not say how the $1,500,000 of notes was resolved.

2008-2018: A quiet record

The filings show little for these years. The one event is that in September 2013 the company suspended its duty to file periodic reports with the SEC.

2019-2023: A Wyoming deal and reporting problems

On May 31, 2019 the company agreed to acquire oil and gas leases in Carbon and Fremont Counties, Wyoming, from Looper Family Office and Quay View Partners. It would pay with 100,000 new Series W preferred shares and lend the sellers $250,000. The filing cited production of about 160 barrels a day and 810,000 barrels of oil equivalent of proved reserves. Preferred holders could elect to spin out the Wyoming subsidiary, keeping 90% and giving common shareholders 10%, which would dilute common holders' stake in those assets. Shares on issue stood at 48,491,485 from 2018 to 2020 and rose to 49,491,498 in 2021. The filings seen do not confirm that the deal closed.

In December 2021 the company again suspended its SEC reporting duty. On October 20, 2022 it replaced BF Borgers with Macias Gini & O'Connell as auditor. As of April 5, 2023, it said its unaudited quarterly statements for May 31 to November 30, 2022 should not be relied on, would not be restated, and that it would report through OTC Markets. Auditors have repeatedly noted doubt about its ability to continue as a going concern.

Written from the 6 story beats below (2006 to 5 Apr 2023), which come from the company's own announcements and filings.

Beat by beat

The events that changed the company's story, in plain English, each written against everything known about the company at the time. The dot shows whether it was good, bad or neutral for shareholders.

shares on issue market cap (log scale)

202349.5m shares · US$544m market cap

5 Apr
The board voted on October 20, 2022 to replace BF Borgers with Macias Gini & O'Connell, LLP as auditor for the fiscal year ending December 31, 2022 (which suggests a change of fiscal year-end from February; this is an inference). The company also said its unaudited quarterly financial statements for the periods from May 31, 2022 through November 30, 2022 should not be relied on because the auditor had not reviewed them, and it will not restate them but will report through OTC Markets instead. This is a negative sign about the reliability of recent reporting.
auditor change
49.5m shUS$544m

202149.5m shares · US$20.8m market cap

21 Dec
QUANTUM ENERGY INC. suspended its duty to file periodic reports with the SEC.
listing compliance notice
49.5m shUS$20.8m

201948.5m shares · US$7.2m market cap

31 May
The company agreed to acquire producing oil and gas leases in Carbon and Fremont Counties, Wyoming from Looper Family Office and Quay View Partners in exchange for 100,000 new Series W preferred shares, and to lend the sellers $250,000 in two instalments. The filing states current production of about 160 barrels of oil per day and 810,000 barrels of oil equivalent of proved reserves. The preferred holders can elect a spin-out of the Wyoming subsidiary in which they keep 90% and common shareholders receive 10%, which is a dilution of common holders' stake in those assets. The company says it will stop being a shell company once the deal closes. (The body of the filing says the agreement was dated May 30, 2018, while the report date and press release say 2019; this looks like a typo.)
capital raising announcement
48.5m shUS$7.2m

2013

4 Sept
QUANTUM ENERGY INC. suspended its duty to file periodic reports with the SEC.
listing compliance notice

2007

28 Feb
The company says the KOKO acquisition closed on June 12, 2006, and that by the end of the year it and other investors had an irreconcilable disagreement with the operator, JMT Resources. On January 31, 2007 it sold its Corsicana interests back to JMT for $308,200 and was released from liabilities on those properties. It keeps its Barnett Shale interests. This unwinds the Corsicana part of the 2006 KOKO deal.
material agreement termination

2006

24 May
Boomers Cultural Development (the company's name at the time, later Quantum Energy) agreed on May 19, 2006 to buy KOKO Petroleum's Texas oil and gas assets for 1.5 million company shares, and to take on about $1,500,000 of KOKO's notes. It also agreed to pay $150,000 to JMT Resources for the Corsicana Polymer Flood Pilot Program, to pay $20,000 plus up to $80,000 more toward KOKO's legal and audit costs for an OTCBB listing, and to add a KOKO board member, with closing set for May 31, 2006. The assets include three producing wells on the McKinney lease, a 50% funded interest in the Corsicana pilot (KOKO to earn 23.5% on completion), and 10% working interests in two Barnett Shale wells; this moves the company from its earlier cultural-development business into oil and gas.
material agreement