Quarterly report pursuant to Section 13 or 15(d)

Consolidated Statements of Cash Flows (Unaudited)

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Consolidated Statements of Cash Flows (Unaudited) - USD ($)
9 Months Ended
Sep. 30, 2018
Sep. 30, 2017
Cash flows from operating activities:    
Net loss $ (8,452,863) $ (2,667,714)
Adjustments to reconcile net loss to cash used in operating activities:    
Derivative (gain) loss 1,330,102 (495,468)
Amortization of prepaid expenses 180,983
Stock based compensation 1,898,255 1,304,175
Loss on sale of investments 7,185
Depreciation, depletion and amortization 1,362,306 146,602
Gain on disposal of assets (613,589)
Accretion - Asset retirement obligation 137,858 29,167
Amortization of debt discount 4,059,563 817,431
Changes in operating assets and liabilities    
Accounts receivable (154,772) 2,919
Prepaid expenses and other assets (368,542)
Other receivables 548,714
Accounts payable (1,198,555) (5,480)
Accrued expenses and other current liabilities 349,156 90,975
Deferred tax liability (910,827)
Undistributed revenues and royalties 77,167
Amounts due to directors 39,993 121,755
Net cash used in operating activities (1,896,034) (467,470)
Cash flows from investing activities:    
Investment in, and acquisition of oil and gas properties (3,600,528) (360,000)
Acquisition of fixed assets (130,000)
Proceeds from sale of fixed assets 45,000
Proceeds from sale of oil and gas interests 1,332,995
Proceeds from sale of investments 101,191
Net cash used in investing activities (2,352,533) (258,809)
Cash flows from financing activities:    
Proceeds from amount due to directors 583,000 5,350
Repayments of amount due to directors (1,312,908) (348,438)
Proceeds from sale of common stock 331,667
Proceeds from long term debt 16,047,458 3,288,650
Debt issuance costs (791,385) (216,000)
Repayment of long-term debt (8,199,989) (1,785,333)
Net cash provided by financing activities 6,326,176 1,275,896
Net increase (decrease) in cash 2,077,609 549,617
Cash, beginning of period 5,735,259 18,605
Cash, end of period 7,812,868 568,222
Supplemental Cash Flow Information:    
Cash paid for: Interest 1,059,616 209,307
Cash paid for: Income taxes
Supplemental disclosure of Non-Cash Investing and Financing Activities:    
Recognition of asset retirement obligation 231,053
Issuance of shares as discount on debt 2,231,331
Issuance of warrants as discount on debt 1,716,039
Accrual of debt issuance costs 1,187,428
Prepayment of contract through amounts due directors 100,000
Debt refinanced through new credit facility 7,633,389
Private placement debt exchanged for new private placement debt 5,314,000
Purchase of working interest through new debt 165,000
Long term debt paid through amounts due directors 104,904
Issuance of shares for contract services 55,000 700,920
Cashless exercise of warrants 447
Sale of shares through satisfaction of unrelated notes payable 127,215
Accrued expenses exchanged for long term debt 177,771 9,500
Increase in oil and gas properties due to asset retirement obligation 205,048
Issuances of shares and warrants as discount on debt $ 684,411