Each one in plain English, with the numbers worked through for a shareholder.
31 July 2007drilling progress report● NeutralMajor
A shareholder update says Scott Zimmerman (President) and Bill Zeltwanger (Vice-President) were retained effective June 18, 2007. It reports May 2007 gross production of 576 bopd and 1,338 mcfd including Colorado, and says wells on the Leexus-acquired Bastrop acreage are being drilled and completed (Bastrop 2 shut in for recompletion). It also says the Colorado purchase of the full 20,000 acres has not yet closed, pending an evaluation and fairness opinion, and that the $1.8 million Giddings interests were bought using the credit facility. This is a company-prepared update, not audited results.
19 July 2007asset acquisition disposition● Neutral
The company agreed on June 18, 2007 to buy oil and gas interests from Senora Resources, Inc. and James D. Dobos, II for $1.8 million. The filing states no material relationship with the seller.
The company said its 2004 and 2005 annual financial statements should no longer be relied upon and restated them, mainly for asset retirement obligations, expensed workover costs and a switch to the depletion method. The 2005 loss rose by $109,110, from $911,458 to $1,020,568 ($0.20 to $0.22 per share); 2004 income was unaffected. The filing says the statements have since been amended and may be relied upon.
This amendment says the Leexus deal was completed as a merger on April 20, 2007, with Leexus Properties Corp merged into Leexus Operating Company, a newly formed subsidiary. The consideration is unchanged: 2,000,000 restricted shares, $3 million cash and a $4 million note to Leexus's selling shareholders.
14 Mar 2007asset acquisition disposition● NeutralMajor
On March 7, 2007 the company agreed to acquire all the oil and gas interests and certain related assets of Leexus Properties Corp., paying 2,000,000 restricted shares, $3 million in cash and a $4 million note. The filing says there is no material relationship with the seller.
On January 31, 2007 the company received a 3-year, $15 million revolving credit facility at prime plus 4%, for acquisitions, well workovers and drilling. The lender gets 1,000,000 warrants at $10.00 per share, which could dilute shareholders if exercised.
21 Dec 2006asset acquisition disposition● NeutralMajor
On December 20, 2006 the company acquired a 37.5% working interest, half of the 75% it intends to buy, in about 20,000 acres of leases in the DJ basin in Northeast Colorado from Doud Oil & Gas Company, paying with 2,419,335 restricted shares valued at $7.5 million. The remaining 37.5% is expected in January 2007; the full 75% would cost $15 million under the November 2006 letter of intent.
On July 28, 2005 the company agreed to raise $2.3 million from investors in two tranches ($1.3 million at signing, $1.0 million after a registration statement becomes effective or sooner on milestones), through secured convertible notes and warrants issued to Longview funds. If both tranches are received, the notes convert into 45% of fully diluted shares, which would heavily dilute existing holders. CEO Conradie and CFO Griffith agreed not to sell their shares for 12 months or until milestones are met.
South Texas Oil set April 27, 2005 as the record date to distribute 957,349 restricted shares, valued at $1,003,831, to shareholders of Datascension Inc., its former parent, at about one share per 18 Datascension shares. The filing describes this as a distribution of shares Datascension has an interest in; it does not say new money is raised.
The company, now named South Texas Oil Company (formerly Nutek Oil), completed on April 1, 2005 the purchase of five Atascosa County, Texas leases and related well equipment from JGM Oil Investments, LLC for $307,426. Payment is 512,377 restricted shares at $0.30 (half the price) plus $153,713 paid monthly over 36 months at 7%, capped at prior-month income from the interests. The seller is majority-owned by CEO Conradie and CFO Griffith, a related-party deal in which they and other JGM owners received the shares (256,189, 128,094 and 128,094 respectively). The filing also re-reports the Nov 2004 appointment of director Conrad Humbke and his stock option agreement.
