Tiger Oil & Energy, Inc. company history: the story so far

History

A shell company that sold its old business became a small Kansas oil explorer, failed to complete its Montana plan, relied on convertible notes for funding, and deregistered in 2021.

2009-2010: From shell to oil explorer

The company began as UTEC, Inc. In April 2009 it agreed to sell all its assets to Energetic Systems Inc. LLC, keeping only the Ceramatec Agreement and the waste destruction business built on that technology. Energetic Systems paid by returning the 22,500,000 company shares it held.

By 2010 the company, renamed Tiger Oil and Energy, Inc., turned to oil. On September 28, 2010 it bought Jett Rink Oil, LLC, a Kansas oil and gas company, from its sole owner Bill Herndon for 10,000,000 new shares. The filing said it was no longer a shell company, and it outlined a Montana project. A month later it signed a deal with Black Hawk Exploration and Tiger Oil & Gas, LLC to develop leases of about 2,553 acres in Cowley County, Kansas. Black Hawk paid a $40,000 commission, and Tiger could earn a 40% working interest in the #1 Baker well by investing $400,000.

2011-2013: Small properties and unfunded plans

The Montana plan did not survive. A September 2011 filing said the company tried to acquire the project but could not complete it. In its place came smaller holdings: two shut-in wells (not producing) in Creek County, Oklahoma; three Southern Kansas leases of 400 acres, bought in February 2011 for a note and 250,000 shares; and two shut-in wells in Ness County, Kansas, bought at auction for cash. The company said about $400,000 was needed to restart the Kansas wells, with no funding agreement signed. Shares on issue fell by 10,000,000 in 2012, though the record does not explain why. The record is quiet on 2012 and most of 2013.

In December 2013 the company elected to join the first of three Cowley County wells run by TOTO Energy LLC, taking a 30% working interest. Cold weather lifted the well's cost to $630,000, making its share $189,000. Twelve days later it announced a commitment from Chancery Lane Investment Group for $600,000, in three $200,000 tranches on a convertible note at 5% interest. The note could be repaid in shares at $0.50 each, which would dilute shareholders.

2014-2021: Convertible notes and deregistration

The record is silent for several years after 2013, so it does not show whether the TOTO wells were drilled. In January 2018 the company agreed to sell Adar Bays seven convertible notes totaling $300,000 at 8% interest, due January 22, 2019. Only the first $75,000 note was funded at signing. The notes could convert into shares at 50% of the lowest recent bid price, and shares on issue rose from 37,105,062 at the end of 2017 to 129,229,835 at the end of 2018. The beats do not explain that rise.

On March 31, 2021 Tiger Oil & Energy deregistered its securities, ending its obligation to file reports with the SEC.

Written from the 9 story beats below (2009 to 31 Mar 2021), 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)

20211.25bn shares · US$998k market cap

31 Mar
Tiger Oil & Energy, Inc. deregistered its securities, ending its obligation to file reports with the SEC.
listing compliance notice
1.25bn shUS$998k

201837.1m shares · US$664k market cap

8 Mar
On January 22, 2018 the company agreed with Adar Bays to sell seven convertible notes totaling $300,000 at 8% interest, all maturing January 22, 2019. The first note is $75,000, funded that day less $3,750 in legal fees, and six further $37,500 notes are to be funded monthly from August 22, 2018, each less $2,000 in legal fees. The notes convert after 180 days at 50% of the lowest closing bid price over a 20-day period (40% if a DTC 'chill' applies), so conversions could dilute shareholders heavily. The terms include default interest of 24% and other penalties. The text is cut off, and the filing's Item 4.01 reference is not covered in the text shown.
capital raising announcement
37.1m shUS$664k

201342.7m shares · US$8.5m market cap

24 Dec
The company says it has a commitment from Chancery Lane Investment Group, Inc. for the $600,000 needed for the Cowley County drilling with TOTO Energy. It would receive three tranches of $200,000 on a callable convertible note at 5% interest for one year. The investor can keep receiving interest or have the company issue shares at $0.50 each to retire the debt, so shareholders could be diluted. This addresses the funding question left open in the earlier Cowley County filing.
material agreement
42.7m shUS$8.5m
12 Dec
The company signed an election to take part in the first of three wells with TOTO Energy LLC in Cowley County, Kansas, earning a 30% working interest and a 24.45% net royalty interest. The first well's cost rose to $630,000 because of cold weather, so the company's 30% share is $189,000, with work planned for early spring. TOTO is the operator. This moves the Cowley County drilling thread forward, but the filing does not say how the $189,000 will be funded.
material agreement
42.7m shUS$8.5m

201152.7m shares · US$7.9m market cap

21 Sept
A fourth amendment states the company attempted to acquire the Montana project but was unable to complete the transaction, resolving the earlier Montana thread negatively. It says the Oklahoma wells are shut-in and will be evaluated against restart cost, that about $400,000 is needed to put the Kansas wells back into production, and that no funding agreement has been signed. Further programs would need private placements.
asset acquisition disposition
52.7m shUS$7.9m
23 Aug
A third amendment replaces the Montana plan with a list of smaller properties: two shut-in wells on about 50 acres in Creek County, Oklahoma (no revenue); three Southern Kansas leases totaling 400 acres bought on February 9, 2011 for a note and 250,000 shares, with an 81.5% working interest; and two shut-in oil wells in Ness County, Kansas bought at auction for cash on March 31, 2011. The Montana project is no longer described, and no price for the Kansas leases is given beyond the note and shares.
asset acquisition disposition
52.7m shUS$7.9m

2010

19 Nov
On October 27, 2010 the company signed an agreement with Black Hawk Exploration (BHWX) and Tiger Oil & Gas, LLC to jointly develop oil and gas leases of about 2,553 gross acres in Cowley County, Kansas, with Tiger LLC as operator. Black Hawk paid the company a $40,000 commission, and the company can earn a 40% working interest in the #1 Baker well by investing $400,000 in a drilling program.
material agreement
4 Oct
On September 28, 2010 the company, now named Tiger Oil and Energy, Inc. (formerly UTEC), closed its purchase of Jett Rink Oil, LLC, a Kansas oil and gas company, from its sole owner Bill Herndon for 10,000,000 new common shares. The filing says the company is no longer a shell company and describes a plan for a Montana (Kevin-Sunburst Dome) project; these are management's targets and estimates, not results. Existing shareholders are diluted by the new shares (inference from the share issuance).
asset acquisition disposition

2009

4 May
The company (then named UTEC, Inc.) agreed on April 30, 2009 to sell all its assets to Energetic Systems Inc. LLC, except the Ceramatec Agreement and the waste destruction business built on that technology. In payment, Energetic Systems will return the 22,500,000 UTEI common shares it holds.
material agreement