Financials

v3.10.0.1
Consolidated Balance Sheets - USD ($)
Sep. 30, 2018
Dec. 31, 2017
Current assets:    
Cash $ 4,312,868 $ 536,156
Restricted cash 3,500,000 5,199,103
Accounts receivable - oil and gas 761,472 573,296
Other receivable 232,545 548,714
Prepaid expenses 333,194
Total current assets 9,140,079 6,857,269
Oil and gas properties, full cost method    
Proved developed producing oil and gas properties, net 11,877,554 12,301,141
Undeveloped and non-producing oil and gas properties, net 28,334,328 26,859,634
Total Oil and gas properties, net 40,211,882 39,160,775
Fixed assets, net 213,118 166,741
Other assets 110,194 9,396
TOTAL ASSETS 49,675,273 46,194,181
Current liabilities:    
Accounts payable 1,357,314 2,555,869
Accrued expenses and other current liabilities 749,044 397,070
Undistributed revenues and royalties 1,252,367 1,175,200
Derivative liability 1,575,128 1,052,788
Amount due to directors 503,055 1,192,970
Current portion of long term debt - net of debt discount 9,785,432 3,562,051
Total current liabilities 15,222,340 9,935,948
Long term debt - net of current portion and debt discount 10,948,762 9,742,830
Deferred tax liability 910,827
Asset retirement obligation 2,795,334 3,096,263
TOTAL LIABILITIES 28,966,436 23,685,868
Commitments and contingencies (Note 8)
STOCKHOLDERS' EQUITY    
Preferred stock, $0.001 par value, 5,000,000 shares authorized, 28,092 shares issued and outstanding as of September 30, 2018 and December 31, 2017 28 28
Common stock, $0.001 par value, 500,000,000 shares authorized, 88,398,380 and 72,347,990 shares issued and outstanding as of September 30, 2018 and December 31, 2017 88,398 72,348
Additional paid-in capital 24,847,640 19,029,892
Prepaid equity-based compensation (11,827)
Retained earnings (accumulated deficit) (4,227,229) 3,417,872
TOTAL STOCKHOLDERS' EQUITY 20,708,837 22,508,313
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 49,675,273 $ 46,194,181

Source

v3.10.0.1
Consolidated Statements of Operations and Comprehensive Loss (Unaudited) - USD ($)
3 Months Ended 9 Months Ended
Sep. 30, 2018
Sep. 30, 2017
Sep. 30, 2018
Sep. 30, 2017
Revenue        
Oil and gas sales $ 1,895,932 $ 221,329 $ 6,376,501 $ 588,622
Operating expenses        
Lease operating costs 913,331 172,893 2,957,073 437,477
General and administrative 1,364,779 180,400 3,391,240 666,323
Stock based compensation 680,156 153,155 1,898,255 1,304,175
Accretion - ARO 40,081 10,526 137,858 29,167
Depreciation, depletion and amortization 412,669 59,711 1,362,306 146,602
Total operating expenses 3,411,016 576,685 9,746,732 2,583,744
Loss from operations (1,515,084) (355,356) (3,370,231) (1,995,122)
Other income (expenses)        
Interest expense (1,676,458) (470,614) (5,276,946) (1,160,875)
Change in fair value of derivatives (342,318) 40,370 (1,330,102) 495,468
Loss on sale of investments (7,185)
Gain on disposal of assets 555,548 613,589
Total other income (expense) (1,463,228) (430,244) (5,993,459) (672,592)
Net loss before income taxes (2,978,312) (785,600) (9,363,690) (2,667,714)
Income tax benefit (expense) 33,548   910,827
Net loss (2,944,764) (785,600) (8,452,863) (2,667,714)
Other comprehensive income        
Unrealized gain (loss) on securities available-for-sale 1,446
Net Comprehensive income (loss) $ (2,944,764) $ (785,600) $ (8,452,863) $ (2,666,268)
Earnings (loss) per common share        
Basic $ (0.03) $ (0.01) $ (0.11) $ (0.04)
Weighted average number of common shares outstanding        
Basic 84,561,061 64,051,015 79,979,011 60,723,535

Source

v3.10.0.1
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

Source