Financials

v3.19.3
Consolidated Balance Sheets - USD ($)
Sep. 30, 2019
Dec. 31, 2018
Current assets:    
Cash $ 1,555,390 $ 4,009,892
Restricted cash 6,088,859
Accounts receivable - oil and gas - net 2,653,653 258,300
Prepaid expenses 136,404 124,443
Total current assets 10,434,306 4,392,635
Oil and gas properties, full cost method    
Proved developed producing oil and gas properties, net 75,675,548 81,331,986
Proved undeveloped and non-producing oil and gas properties, net 48,143,115 50,492,906
Total oil and gas properties, net 123,818,663 131,824,892
Fixed assets, net 534,829 200,243
Derivative asset 101,726 681,776
Other assets 71,594 110,194
TOTAL ASSETS 134,961,118 137,209,740
Current liabilities:    
Accounts payable 2,431,858 2,549,280
Accrued expenses and other current liabilities 2,145,033 1,014,661
Undistributed revenues and royalties 1,746,255 1,207,605
Derivative liability 1,683,980 2,531,718
Amount due to director 590,555 395,555
Current portion of long-term debt and other short-term borrowings - net of debt discount 40,241,800 11,805,582
Total current liabilities 48,839,481 19,504,401
Long term debt - net of current portion and debt discount 66,231,506 92,076,857
Operating lease liability 323,642
Asset retirement obligation 3,377,424 4,413,465
TOTAL LIABILITIES 118,772,053 115,994,723
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, 2019 and December 31, 2018 28 28
Common stock, $0.001 par value, 500,000,000 shares authorized,96,276,947 and 90,989,025 shares issued and outstanding as of September 30, 2019 and December 31, 2018 respectively. 96,277 90,989
Additional paid-in capital 36,204,678 32,015,913
Accumulated deficit (20,111,918) (10,891,913)
TOTAL STOCKHOLDERS' EQUITY 16,189,065 21,215,017
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 134,961,118 $ 137,209,740

Source

v3.19.3
Consolidated Statements of Operations (Unaudited) - USD ($)
3 Months Ended 9 Months Ended
Sep. 30, 2019
Sep. 30, 2018
Sep. 30, 2019
Sep. 30, 2018
Revenue        
Oil and gas sales $ 9,000,591 $ 1,895,932 $ 27,081,506 $ 6,376,501
Operating expenses        
Lease operating costs 3,547,662 913,331 9,004,334 2,957,073
General and administrative 1,076,287 1,364,779 3,367,591 3,391,240
Stock based compensation 402,451 680,156 444,533 1,898,255
Depreciation, depletion and amortization 2,379,725 412,669 6,978,604 1,362,306
Accretion - ARO 72,042 40,081 230,269 137,858
Total operating expenses 7,478,167 3,411,016 20,025,331 9,746,732
Income (loss) from operations 1,522,424 (1,515,084) 7,056,175 (3,370,231)
Other income (expense)        
Interest expense (3,278,555) (255,999) (9,602,522) (1,217,383)
Amortization of debt discount 2,364,357 1,420,459 (6,947,607) (4,059,563)
Change in fair value of derivatives 5,539,255 (342,318) 267,688 (1,330,102)
Gain on disposal of assets 555,548 613,589
Interest and other income 363 6,261
Total other income (expense) (103,294) (1,463,228) (16,276,180) (5,993,459)
Net income (loss) before income taxes 1,419,130 (2,978,312) (9,220,005) (9,363,690)
Income tax benefit (expense) 33,548 910,827
Net Income (loss) $ 1,419,130 $ (2,944,764) $ (9,220,005) $ (8,452,863)
Earnings (loss) per common share        
Basic $ 0.02 $ (0.03) $ (0.10) $ (0.11)
Weighted average number of common shares outstanding        
Basic 92,586,983 84,561,061 91,632,904 79,979,011

Source

v3.19.3
Consolidated Statements of Cash Flows (Unaudited) - USD ($)
9 Months Ended
Sep. 30, 2019
Sep. 30, 2018
Cash flows from operating activities    
Net loss $ (9,220,005) $ (8,452,863)
Adjustments to reconcile net loss to cash provided by (used in) operating activities:    
Change in fair value of derivative liability (267,688) 1,330,102
Stock based compensation 444,533 1,898,255
Depreciation, depletion and amortization 6,978,604 1,362,306
Amortization of operational right-of-use assets 2,997
Gain on disposal of assets (613,589)
Accretion - Asset retirement obligation 230,269 137,858
Amortization of debt discount 6,947,607 4,059,563
Changes in operating assets and liabilities    
Accounts receivable (2,307,266) (154,772)
Prepaid expenses and other assets 26,639 (368,542)
Other receivable 548,714
Accounts payable (806,594) (1,198,555)
Accrued expenses and other current liabilities 1,753,034 349,156
Deferred tax liability (910,827)
Undistributed revenues and royalties 538,650 77,167
Amounts due to directors 39,993
Net cash provided by (used) in operating activities 4,320,780 (1,896,034)
Cash flows from investing activities:    
Investment in and acquisition of oil and gas properties (4,641,453) (3,600,528)
Acquisition of fixed assets (130,000)
Proceeds from sale of fixed assets 45,000
Proceeds from sale of oil and gas interests 552,966 1,332,995
Net cash used in investing activities (4,088,487) (2,352,533)
Cash flows from financing activities:    
Proceeds from amount due to director 195,000 583,000
Repayment of amount due to director (1,312,908)
Proceeds from long term debt 6,372,383 16,047,458
Debt issuance costs (791,385)
Short term advance 693,706
Repayment of long-term debt (3,859,025) (8,199,989)
Net cash provided by financing activities 3,402,064 6,326,176
Net increase (decrease) in cash 3,634,357 2,077,609
Cash and Restricted Cash, beginning of period 4,009,892 5,735,259
Cash and Restricted Cash, end of period 7,644,249 7,812,868
Supplemental Cash Flow Information:    
Cash paid for: Interest 7,664,537 1,059,616
Cash paid for: Income taxes
Supplemental disclosure of Non-Cash Investing and Financing Activities:    
Recognition of asset retirement obligation 94,796 231,053
Recognition of right-of-use asset and lease liability 367,365
Amortization of right-of-use asset and lease liability 43,723
Purchase of transportation equipment through direct financing 56,760
Proceeds from sale of oil and gas properties paid directly to reduce debt 3,800,000
Elimination of asset retirement obligation associated with sale of assets 1,361,106
Issuance of shares as discount on debt 2,231,331
Issuance of shares as payment of interest on debt 620,508
Issuance of warrants for services 167,151
Issuance of warrants as discount on debt 3,129,012 1,716,039
Accrual of debt issuance costs 1,187,428
Debt refinanced through new credit facility 3,310,000 7,633,389
Private placement debt exchanged for new private placement 5,314,000
Purchase of working interest through new debt 165,000
Issuance of shares for contract services 55,000
Cashless exercise of warrants 447
Accrued expenses exchanged for long term debt $ 177,771

Source