WEST CANYON ENERGY CORP. (WCYN) company history: the story so far

History

A former shell bought Colombian oil interests in 2007, funded itself with Stealth Energy Ventures debt, then sold most assets by 2010 and stopped SEC reporting in 2022.

2007-2008: Colombian stakes and borrowed money

West Canyon Energy, which described itself as a former shell, began its oil and gas push in October 2007. It bought the British Virgin Islands company PetroSouth Energy Corp. BVI by issuing 28,266,666 shares and the same number of warrants (rights to buy more shares at US$1.25). That left 99,533,333 shares outstanding and gave the company a 20% stake in Colombia's Talora Block and a 16% stake in the Buenavista Block, both early-stage exploration, with going-concern doubt noted in the risk factors. Later that month it paid US$420,000 for a 6% interest in the Carbonera Contract, a Colombian concession producing gas and condensate.

In 2008 the company turned to debt. Stealth Energy Ventures AG lent it money through a series of 9% convertible notes, starting with $500,000 in January, which Stealth could convert into shares at a recent average price. A $750,000 note followed in April. In February the company also signed a farmout in Kern County, California (the North Semitropic Prospect), and in July Shane Reeves became president, paid $8,000 a month plus 500,000 shares on signing and on each renewal. In September it agreed to sell its Buenavista interest to Delavaco Energy for $4,000,000, of which only $200,000 was paid, and closing conditions might not be met.

2009-2010: Selling down

The record for 2009 shows the company shrinking its position. In September it agreed to sell Carbonera to Delavco Energy Colombia for $750,000, and the sale closed on October 2, 2009. The same month it settled $1,956,250 of Stealth debt with a $1,050,000 promissory note, with $450,000 tied to the Carbonera sale and $600,000 to a Buenavista sale. The Buenavista sale appears not to have closed. The Stealth settlement produced a $906,250 gain on debt forgiveness, helping the company report net income of $356,818 for the year to June 2010, although it had no revenue. The share count of 21,206,667 at September 30, 2010 is far below the earlier figure, and the filings do not explain the drop beyond an apparent split.

On December 1, 2010 the company sold PetroSouth Energy Corp. BVI, including Talora but not Buenavista, to Petrodorado Energy for $1.5 million, all advanced when the letter agreement was signed in October. At September 30, 2010 it had total assets of $3,881,320, and its pro forma balance sheet still showed an unproved interest of $2,243,680.

2011-2022: A quiet record

Shares on issue were 21,706,667 at the end of 2011 and 22,206,667 at the end of 2012 and 2013; the beats do not explain the increases. Little else is recorded. On January 7, 2022 the company suspended its duty to file periodic reports with the SEC. As of that date, its only remaining asset named in the record was the Buenavista interest, whose sale status is unclear.

Written from the 10 story beats below (2007 to 7 Jan 2022), 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)

202222.2m shares · US$2k market cap

7 Jan
WEST CANYON ENERGY CORP. suspended its duty to file periodic reports with the SEC.
listing compliance notice
22.2m shUS$2k

2010

6 Dec
On December 1, 2010 the company completed the sale of its subsidiary PetroSouth Energy Corp. BVI, including the Talora block interest but excluding Buenavista, to Petrodorado Energy for $1.5 million, all advanced when the October 27, 2010 letter agreement was signed. This disposes of the assets acquired in the October 2007 BVI deal. The filing also says the Carbonera sale to Delavco closed October 2, 2009 for $750,000. After the sales the pro forma balance sheet shows the company still holding Unproved Interest of $2,243,680 and 21,206,667 shares outstanding at September 30, 2010 (a much lower count than before, consistent with a split).
asset acquisition disposition

2009

25 Sept
On September 22, 2009 the company agreed to sell its 6% Carbonera interest, bought in October 2007 for US$420,000, to Delavco Energy Colombia for $750,000, subject to conditions; its CFO Pimienta is also a consultant to Delavco. It also issued Stealth Energy Ventures a $1,050,000 promissory note at 9% to settle a $1,956,250 debt, repayable $450,000 on the Carbonera sale (by November 1, 2009) and $600,000 on a Buenavista sale (by May 31, 2010). This settles part of the Stealth debt for less than owed. The Buenavista sale agreed in September 2008 is still described as a future disposition, so it appears not to have closed (inference).
capital raising announcement

2008

19 Sept
Effective September 16, 2008 the company agreed to sell its 16% Buenavista interest in Colombia to Delavaco Energy for $4,000,000, of which $200,000 has been paid. The remaining $3,800,000 is due 30 days after a Delavaco liquidity event or by December 31, 2008, whichever is earlier, and the interest reverts to the company if it is not paid. Closing is subject to conditions the company says may not be met.
material agreement
29 July
Effective July 2, 2008 the company signed a consulting agreement with Summit Consulting Limited for Shane Reeves to serve as president and director, at $8,000 a month plus 500,000 shares on signing and 500,000 on each annual renewal. 500,000 shares were approved for Reeves on July 22, 2008. Reeves signs the filings from here on in place of Fred Zaziski (inference: he has replaced Zaziski as president; the filing does not mention Zaziski).
capital raising announcement
2 May
On April 30, 2008 the company entered into a $750,000 convertible note with Stealth Energy Ventures AG, dated for reference February 5, 2008, due February 5, 2010 at 9% interest paid semi-annually. Stealth can convert it into shares at the 10-day average closing price, and the company can repay it at any time without penalty. This is a third Stealth note after the $500,000 and $300,000 notes, adding to possible dilution; the filing does not say whether it is secured.
capital raising announcement
12 Feb
On February 1, 2008 the company signed a farmout with Transco Oil & Gas for about 3,290 acres in Kern County, California (North Semitropic Prospect). It pays 100% of the first test well's costs to earn a 100% working interest in that well, which becomes 85% after Transco keeps a 15% back-in and a 6% overriding royalty; Transco delivers a 77% net revenue interest. This adds a California prospect to its Colombian holdings.
material agreement
4 Feb
On January 24, 2008 the company issued a $500,000 convertible note to Stealth Energy Ventures AG, due February 17, 2010 with 9% interest paid semi-annually. Stealth can convert it into shares at the average closing price over the 10 trading days before conversion, and the note is secured against all the company's assets. This is the first debt financing in the record, after earlier share placements.
capital raising announcement

2007

29 Oct
The company bought a 6% interest in the Carbonera Contract, a 64,000-acre concession in northern Colombia, for US$420,000 plus other consideration from Omega Energy Colombia, which is already its partner on other Colombian concessions. The filing says the concession currently produces gas (4.0 MMCF/day) and condensate (60 BBL/day) and is operated by Well Logging Ltda, which makes it a producing interest beside the earlier exploration-stage blocks.
material agreement
3 Oct
On October 2, 2007 the company, which describes itself as a former shell, acquired all of private British Virgin Islands company PetroSouth Energy Corp. BVI by issuing 28,266,666 shares and 28,266,666 warrants (US$1.25) to its shareholders' nominee, Johann Roland Vetter. That gives the sellers about 29% of the company (about 45% if the warrants are exercised), with 99,533,333 shares outstanding. The deal brings a 20% stake in Colombia's Talora Block and a 16% stake in the Buenavista Block, which the filing describes as early-stage exploration with going-concern doubt noted in its risk factors.
asset acquisition disposition