Financials

v3.10.0.1
Consolidated Balance Sheets - USD ($)
Jun. 30, 2018
Dec. 31, 2017
Current assets:    
Cash $ 5,806,479 $ 536,156
Restricted cash 5,199,103
Accounts receivable - oil and gas 559,682 573,296
Other receivable - related party 548,714
Prepaid expenses 65,761
Total current assets 6,431,922 6,857,269
Oil and gas properties, full cost method    
Proved developed producing oil and gas properties, net 11,577,814 12,301,141
Undeveloped and non-producing oil and gas properties, net 28,001,852 26,859,634
Total Oil and gas properties, net 39,579,666 39,160,775
Fixed assets, net 267,576 166,741
Other assets 32,083 9,396
TOTAL ASSETS 46,311,247 46,194,181
Current liabilities:    
Accrued expenses and other current liabilities 819,287 397,070
Accounts payable 622,808 2,555,869
Undistributed revenues and royalties 1,253,934 1,175,200
Derivative liability 1,232,810 1,052,788
Amount due to directors 509,007 1,192,970
Current portion of long term debt - net of debt discount 4,732,565 3,562,051
Total current liabilities 9,170,411 9,935,948
Long term debt - net of current portion and debt discount 13,149,005 9,742,830
Deferred tax liability 33,548 910,827
Asset retirement obligation 3,367,052 3,096,263
TOTAL LIABILITIES 25,720,016 23,685,868
Commitments and contingencies (Note 8)
Capital Stock    
Preferred stock, $0.001 par value, 5,000,000 shares authorized, 28,092 shares issued and outstanding as of June 30, 2018 and December 31, 2017 28 28
Common stock, $0.001 par value, 100,000,000 shares authorized,with 83,464,906 and 72,347,991 shares issued and outstanding as of June 30, 2018 and December 31, 2017 respectively. 83,465 72,348
Additional Paid-In Capital 21,790,203 19,029,892
Prepaid equity-based compensation (11,827)
Retained earnings (accumulated deficit) (1,282,465) 3,417,872
TOTAL STOCKHOLDERS' EQUITY 20,591,231 22,508,313
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 46,311,247 $ 46,194,181

Source

v3.10.0.1
Consolidated Statements of Operations and Comprehensive Loss (Unaudited) - USD ($)
3 Months Ended 6 Months Ended
Jun. 30, 2018
Jun. 30, 2017
Jun. 30, 2018
Jun. 30, 2017
Revenue        
Oil and gas sales $ 2,318,622 $ 160,430 $ 4,480,569 $ 367,293
Operating expenses        
Lease operating costs 1,035,474 104,066 2,043,742 264,584
General and administrative 1,125,936 215,582 2,026,461 485,923
Stock based compensation 1,044,612 803,616 1,218,099 1,151,020
Accretion - ARO 49,346 9,804 97,777 18,641
Depreciation, depletion and amortization 459,951 35,609 949,637 86,891
Total operating expenses 3,715,319 1,168,677 6,335,716 2,007,059
Loss from operations (1,396,697) (1,008,247) (1,855,147) (1,639,766)
Other income (expenses)        
Interest expense (2,531,178) (433,551) (3,600,488) (690,261)
Change in fair value of derivatives (632,831) 119,085 (987,784) 455,098
Loss on sale of investments (7,185)
Gain on ARO settlement 58,041
Total other income (expense) (3,164,009) (314,466) (4,530,231) (242,348)
Net loss before income taxes (4,560,706) (1,322,713) (6,385,378) (1,882,114)
Income tax benefit (expense) 605,490   877,279
Net loss (3,955,216) (1,322,713) (5,508,099) (1,882,114)
Other comprehensive income (loss)        
Unrealized gain (loss) on securities available-for-sale 1,446
Net Comprehensive income loss $ (3,955,216) $ (1,322,713) $ (5,508,099) $ (1,880,668)
Earnings (loss) per common share        
Basic $ (0.05) $ (0.02) $ (0.07) $ (0.03)
Weighted average number of common shares outstanding        
Basic 80,957,111 61,272,870 77,650,012 59,032,220

Source

v3.10.0.1
Consolidated Statements of Cash Flows (Unaudited) - USD ($)
3 Months Ended 6 Months Ended 12 Months Ended
Jun. 30, 2018
Jun. 30, 2017
Jun. 30, 2018
Jun. 30, 2017
Dec. 31, 2017
Cash flows from operating activities:          
Net loss $ (3,955,216) $ (1,322,713) $ (5,508,099) $ (1,882,114)  
Adjustments to reconcile net loss to cash used in operating activities:          
Derivative gain (loss) 632,831 (119,085) 987,784 (455,098)  
Amortization of prepaid expenses     162,914  
Stock based compensation 1,044,612 803,616 1,218,099 1,151,020  
Loss on sale of investments     7,185  
Depreciation, depletion and amortization 459,951 35,609 949,637 86,891  
Gain on ARO settlement (58,041)
Accretion - Asset retirement obligation 49,346 9,804 97,777 18,641  
Amortization of debt discount     2,639,104 514,540  
Changes in operating assets and liabilities          
Accounts receivable     13,614 (4,328)  
Prepaid expenses and other assets     (88,448)  
Other receivables     548,714  
Accounts payable     (1,933,061) (48,898)  
Accrued expenses and other current liabilities     446,928 88,429  
Deferred tax liability     (877,279)  
Undistributed revenues and royalties     78,734  
Amounts due to directors     39,993 94,871  
Net cash used in operating activities     (1,444,544) (265,947)  
Cash flows from investing activities:          
Investment in, and acquisition of oil and gas properties     (2,088,262)  
Acquisition of fixed assets     (130,000)  
Proceeds from sale of oil and gas interests     1,144,953  
Proceeds from sale of investments     101,191  
Net cash (used in) provided by investing activities     (1,073,309) 101,191  
Cash flows from financing activities:          
Proceeds from amount due to directors     583,000 5,350  
Repayments of amount due to directors     (1,306,956) (300,024)  
Proceeds from sale of common stock     331,667  
Proceeds from long term debt     10,078,018 331,667  
Repayment of long term debt     (6,764,989) (222,500)  
Net cash provided by financing activities     2,589,073 146,160  
Net increase (decrease) in cash     71,220 (18,596)  
Cash, beginning of period     5,735,259 18,605 18,605
Cash, end of period $ 5,806,479 $ 9 5,806,479 9 $ 5,735,259
Supplemental Cash Flow Information:          
Cash paid for: Interest     866,380 99,909  
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     1,237,416  
Issuance of warrants as discount on debt     327,740  
1st Global debt discount and loan fees     324,000  
Payment in kind interest added to debt     140,757  
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     2,085,000  
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     60  
Sale of shares through satisfaction of unrelated notes payable     127,215  
Accrued expenses exchanged for long term debt     $ 24,712 $ 9,500  

Source