Colorado
|
84-0811034
|
|
(State or Other Jurisdiction of Incorporation or Organization)
|
(I.R.S. Employer Identification No.)
|
609 Castle Ridge Road, Suite 335
|
Austin, Texas 78746
|
(512) 579-3560
|
Large accelerated filer ☐
|
Accelerated filer ☐
|
Non-accelerated filer ☐ (Do not check if a smaller reporting company)
|
Smaller reporting company ☒
|
ITEM 1-
|
BUSINESS
|
• | require the acquisition of various permits before drilling begins; |
• | require the installation of expensive pollution controls or emissions monitoring equipment; |
• | restrict the types, quantities and concentration of various substances that can be released into the environment in connection with oil and gas drilling, completion, production, transportation and processing activities; |
• | suspend, limit or prohibit construction, drilling and other activities in certain lands lying within wilderness, wetlands, endangered species habitat, and other protected areas; and |
• | require remedial measures to mitigate and remediate pollution from historical and ongoing operations, such as the closure of waste pits and plugging of abandoned wells. |
ITEM 1A –
|
RISK FACTORS.
|
• | changes in the supply of and demand for oil and natural gas; |
• | storage availability; |
• | weather conditions; |
• | market uncertainty; |
• | domestic and foreign governmental regulations; |
• | the availability and cost of alternative fuel sources; |
• | the domestic and foreign supply of oil and natural gas; |
• | the price of foreign oil and natural gas; |
• | refining capacity; |
• | political conditions in oil and natural gas producing regions, including the Middle East; and |
• | overall economic conditions. |
•
|
historical production from the area compared with production from other similar producing areas;
|
•
|
the assumed effects of regulations by governmental agencies;
|
•
|
assumptions concerning future oil, NGL and gas prices; and
|
•
|
assumptions concerning future operating costs, severance and excise taxes, development costs and workover and remedial costs.
|
•
|
the quantities of oil, NGL and gas that are ultimately recovered;
|
•
|
the production and operating costs incurred;
|
•
|
the amount and timing of future development expenditures; and
|
•
|
future oil, NGL and gas prices.
|
• | Value of the properties and likelihood of future production; |
• | Recoverable reserves; |
• | Operating costs; |
• | Potential environmental and other liabilities; |
• | Drilling and production difficulties; and |
• | Other factors beyond our control |
• | Fires; |
• | Explosions; |
• | Blowouts; |
• | Encountering formations with abnormal pressures; |
• | Spills |
• | Natural disasters; |
• | Pipeline ruptures; |
• | Cratering |
• | injury or loss of life; |
• | severe damage to or destruction of property, natural resources and equipment; |
• | pollution or other environmental damage; |
• | clean-up responsibilities; |
• | regulatory investigation and penalties; and |
• | other losses resulting in suspension of our operations. |
• | from a well or drilling equipment at a drill site; |
• | leakage from gathering systems, pipelines, transportation facilities and storage tanks; |
• | damage to oil and natural gas wells resulting from accidents during normal operations; and |
• | blowouts, cratering, and explosions. |
• | landing our wellbore in the desired drilling zone; |
• | staying in the desired drilling zone while drilling horizontally through the formation; |
• | running our casing the entire length of the wellbore; and |
• | being able to run tools and other equipment consistently through the horizontal wellbore. |
• | the ability to fracture stimulate the planned number of stages; |
• | the ability to run tools the entire length of the wellbore during completion operations; and |
• | the ability to successfully clean out the wellbore after completion of the final fracture stimulation stage. |
• | repeal of the percentage depletion allowance for oil and gas properties; |
• | elimination of current deductions for intangible drilling costs; |
• | elimination of the domestic manufacturing deduction for oil and gas companies; and |
• | extension of the amortization period for certain geological and geophysical expenditures. |
• | domestic and foreign supply of oil, NGLs and gas; |
• | domestic and foreign consumer demand for oil, NGLs and gas; |
• | overall United States and global economic conditions impacting the global supply of and demand for oil, NGLs and gas; |
• | the willingness and ability of OPEC to set and maintain oil price and production controls; |
• | commodity processing, gathering and transportation availability, the availability of refining capacity and other factors that result in differentials to benchmark prices; |
• | price and availability of alternative fuels; |
• | price and quantity of foreign imports; |
• | domestic and foreign governmental regulations; |
• | political conditions in or affecting other oil and natural gas producing countries; |
• | weather conditions, including unseasonably warm winter weather and tropical storms; and |
• | technological advances affecting oil, NGL and gas consumption. |
• | Cash flows would be reduced, decreasing funds available for capital expenditures needed to maintain or increase production and replace reserves; |
• | Future net cash flows from our properties would decrease, which could result in significant impairment expenses; |
• | Some reserves would no longer be economic to produce, leading to lower proved reserves, production and cash flows; and |
• | Access to capital, such as equity or long-term debt markets and current reserve-based lending levels, would be severely limited or unavailable. |
• | Permits for drilling operations; |
• | The production and disposal of water; |
• | Reports concerning operations; |
• | Unitization and pooling of properties; |
• | Road and pipeline construction; |
• | The spacing of wells; |
• | Taxation; |
• | Production rates; |
• | The conservation of oil and natural gas; and |
• | Drilling bonds. |
ITEM 1B. –
|
UNRESOLVED STAFF COMMENTS.
|
ITEM 2-
|
PROPERTIES
|
Oil (bbl)
|
Gas (mcf)
|
|||||||||||||||
Production by State
|
2014
|
2013
|
2014
|
2013
|
||||||||||||
Louisiana
|
28
|
18
|
9,441
|
8,616
|
||||||||||||
New Mexico
|
39,313
|
55,327
|
94,038
|
113,559
|
||||||||||||
Oklahoma
|
28,771
|
30,189
|
29,733
|
32,458
|
||||||||||||
Texas
|
25,119
|
12,552
|
14,874
|
25,104
|
||||||||||||
Wyoming
|
4,399
|
3,666
|
-
|
-
|
||||||||||||
TOTAL
|
97,630
|
101,752
|
148,086
|
179,737
|
Productive Wells
|
||||||||||||||||
Oil
|
Gas
|
|||||||||||||||
State
|
Gross
(1)
|
Net
(2)
|
Gross
(1)
|
Net
(2)
|
||||||||||||
Louisiana
|
-
|
-
|
2
|
.24
|
||||||||||||
New Mexico
|
10
|
6.13
|
4
|
.61
|
||||||||||||
Oklahoma
|
253
|
33.14
|
37
|
4.59
|
||||||||||||
Texas
|
163
|
44.06
|
7
|
4.10
|
||||||||||||
Wyoming
|
3
|
2.57
|
-
|
-
|
||||||||||||
Total
|
429
|
85.90
|
50
|
9.54
|
Exploratory Wells
|
Development Wells
|
|||||||||||||||
State
|
Productive
|
Dry
|
Productive
|
Dry
|
||||||||||||
Louisiana
|
--
|
--
|
--
|
--
|
||||||||||||
New Mexico
|
--
|
--
|
--
|
--
|
||||||||||||
Oklahoma
|
--
|
--
|
--
|
--
|
||||||||||||
Texas
|
--
|
1
|
4
|
--
|
||||||||||||
Wyoming
|
--
|
--
|
--
|
--
|
||||||||||||
Total
|
--
|
1
|
4
|
--
|
Proved Reserves
|
Oil (Bbls)
|
Gas (Mcf)
|
||||||
Estimated quantity, January 1, 2013
|
1,224,926
|
2,348,335
|
||||||
Revisions of previous estimates
|
(202,450
|
)
|
(322,413
|
)
|
||||
Extensions and discoveries
|
99,988
|
143,343
|
||||||
Production
|
(101,752
|
)
|
(179,737
|
)
|
||||
Estimated quantity, December 31, 2013
|
1,020,712
|
1,989,528
|
||||||
Revisions of previous estimates
|
(25,391
|
)
|
(51,075
|
)
|
||||
Extensions and discoveries
|
216,930
|
118,880
|
||||||
Production
|
(97,630
|
)
|
(148,086
|
)
|
||||
Estimated quantity, December 31, 2014
|
1,114,621
|
1,909,247
|
Developed
|
Undeveloped
|
Total
|
||||||||||
Oil (Bbls)
|
||||||||||||
December 31, 2014
|
937,416
|
177,205
|
1,114,621
|
|||||||||
December 31, 2013
|
916,139
|
104,573
|
1,020,712
|
|||||||||
Gas (Mcf)
|
||||||||||||
December 31, 2014
|
1,652,014
|
257,233
|
1,909,247
|
|||||||||
December 31, 2013
|
1,834,899
|
154,629
|
1,989,528
|
Oil (Bbls)
|
Gas (Mcf)
|
Total (BOE)
|
||||||||||
Balance – December 31, 2013
|
104,573
|
154,629
|
130,344
|
|||||||||
Extensions and discoveries
|
63,410
|
38,840
|
69,884
|
|||||||||
Revisions to previous estimates
|
9,222
|
63,764
|
19,849
|
|||||||||
Conversion to proved developed reserves
|
-
|
-
|
-
|
|||||||||
Balance – December 31, 2014
|
177,205
|
257,233
|
220,077
|
Proved Undeveloped Reserves Converted
to Proved Developed Reserves
|
Investment in
Conversion of
Proved Undeveloped
Reserves to Proved
Developed Reserves
|
|||||||||||||||
Year Ended December 31,
|
Oil (Bbls)
|
Gas (Mcf)
|
Total (BOE)
|
|||||||||||||
2013
|
113,678
|
253,344
|
155,902
|
$
|
3,000,000
|
|||||||||||
2014
|
-
|
-
|
-
|
-
|
||||||||||||
Total
|
113,678
|
253,344
|
155,902
|
$
|
3,000,000
|
Year Ended December 31,
|
Estimated Future Development Costs
|
|||
2015
|
$
|
3,158,825
|
||
2016
|
3,122,160
|
|||
2017
|
-
|
|||
2018
|
-
|
|||
Total
|
$
|
6,280,985
|
Developed
|
Undeveloped
|
|||||||||||||||
State
|
Gross
(1)
|
Net
(2)
|
Gross
(1)
|
Net
(2)
|
||||||||||||
Louisiana
|
160
|
20
|
1,120
|
137
|
||||||||||||
New Mexico
|
2,600
|
2,400
|
2,400
|
2,400
|
||||||||||||
Oklahoma
|
6,640
|
906
|
720
|
175
|
||||||||||||
Texas
|
7,108
|
2,255
|
975
|
620
|
||||||||||||
Wyoming
|
320
|
260
|
2,581
|
2,375
|
||||||||||||
Total
|
16,828
|
5,841
|
7,796
|
5,707
|
ITEM 3-
|
LEGAL PROCEEDINGS
|
ITEM 4-
|
SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
|
ITEM 5-
|
MARKET FOR REGISTRANT’S COMMON EQUITY AND RELATED STOCKHOLDER MATTERS
|
FISCAL 2013
|
CLOSING PRICE
|
|||||||
HIGH
|
LOW
|
|||||||
First Quarter
|
4.20
|
3.74
|
||||||
Second Quarter
|
4.20
|
3.40
|
||||||
Third Quarter
|
4.74
|
3.71
|
||||||
Fourth Quarter
|
5.18
|
3.90
|
FISCAL 2014
|
||||||||
HIGH
|
LOW
|
|||||||
First Quarter
|
4.84
|
4.05
|
||||||
Second Quarter
|
5.78
|
4.69
|
||||||
Third Quarter
|
5.50
|
3.86
|
||||||
Fourth Quarter
|
3.96
|
1.79
|
Number of securities to
be issued upon
exercise of outstanding
options, warrants and
rights
|
Weighted average
exercise price
of outstanding
options, warrants and
rights
|
Number of securities
remaining available for
future issuances
under equity
compensation
plans (excluding
securities reflected in
column
|
||||||||||
Equity compensation plans approved by security holders
|
-
|
-
|
-
|
|||||||||
Equity compensation plans not approved by security holders
|
-
|
-
|
-
|
|||||||||
Total
|
-
|
-
|
-
|
ITEM 6
|
SELECTED FINANCIAL DATA
|
Years Ended December 31,
|
||||||||
2014
|
2013
|
|||||||
Statements of Operations Data:
|
||||||||
Total revenues
|
$
|
9,232,297
|
$
|
10,541,231
|
||||
Operating expenses
|
11,945,345
|
8,245,675
|
||||||
Net income (loss)
|
(1,947,940
|
)
|
1,278,997
|
|||||
Basic earnings (loss) per share
|
$
|
(0.24
|
)
|
$
|
0.16
|
|||
Shares used in computing basic earnings per share
|
8,095,731
|
8,062,167
|
||||||
Diluted earnings (loss) per share
|
$
|
(0.24
|
)
|
$
|
0.15
|
|||
Shares used in computing diluted earnings per share
|
8,095,731
|
8,385,253
|
||||||
December 31,
|
||||||||
Balance Sheet Data:
|
2014
|
2013
|
||||||
Working capital
|
$
|
1,567,853
|
$
|
3,459,051
|
||||
Total assets
|
22,897,629
|
24,962,828
|
||||||
Total liabilities
|
11,929,728
|
12,412,766
|
||||||
Stockholders' equity
|
10,967,901
|
12,550,062
|
ITEM 7.
|
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATION
|
Years Ended December 31,
|
||||||||
2014
|
2013
|
|||||||
Revenues:
|
||||||||
Oil sales
|
$
|
8,401,759
|
$
|
9,520,591
|
||||
Natural gas sales
|
704,724
|
804,789
|
||||||
Total
|
$
|
9,106,483
|
$
|
10,325,380
|
||||
Sales volumes:
|
||||||||
Oil (Bbls)
|
97,630
|
101,752
|
||||||
Natural gas (Mcf)
|
148,086
|
179,737
|
||||||
Total (BOE)
|
122,311
|
131,708
|
||||||
Average sales prices
|
||||||||
Oil ($/Bbl)
|
$
|
86.06
|
$
|
93.57
|
||||
Natural gas ($/Mcf)
|
4.76
|
4.48
|
||||||
Total ($/BOE)
|
$
|
74.45
|
$
|
78.40
|
||||
Costs and expenses ($/BOE)
|
||||||||
Lease operating expense (lifting costs)
|
$
|
25.16
|
$
|
21.59
|
||||
Production taxes
|
6.93
|
8.10
|
||||||
Depletion and depreciation
|
21.47
|
18.18
|
||||||
Exploration expense
|
3.78
|
1.16
|
||||||
Impairment of oil and natural gas properties
|
25.23
|
3.69
|
||||||
Accretion of discount on asset retirement obligations
|
0.85
|
0.73
|
||||||
General and administrative
|
14.24
|
9.16
|
||||||
Total
|
$
|
97.66
|
$
|
62.61
|
Obligation Due in Period
|
||||||||||||||||
Cash Contractual
Obligations
|
2015
|
2016
|
Thereafter
|
Total
|
||||||||||||
(in thousands)
|
||||||||||||||||
Credit facility (secured)
|
$
|
-
|
$
|
7,240
|
$
|
-
|
$
|
7,240
|
||||||||
Interest on credit facility
|
264
|
197
|
-
|
461
|
||||||||||||
Office lease
|
36
|
3
|
-
|
39
|
||||||||||||
Total
|
$
|
300
|
$
|
7,440
|
$
|
-
|
$
|
7,740
|
ITEM 7A.
|
QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
|
ITEM 8
|
FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA
|
Page
|
|
Report of Independent Registered Public Accounting Firm
|
F-2
|
Consolidated Balance Sheets
|
F-3
|
Consolidated Statements of Operations
|
F-4
|
Consolidated Statements of Changes in Stockholders' Equity
|
F-5
|
Consolidated Statements of Cash Flows
|
F-6
|
Notes to Consolidated Financial Statements
|
F-7
|
Supplemental Oil and Natural Gas Information (Unaudited)
|
F-20
|
December 31,
|
||||||||
2014
|
2013
|
|||||||
REVENUE:
|
||||||||
Oil and natural gas sales
|
$
|
9,106,483
|
$
|
10,325,380
|
||||
Well operational and pumping fees
|
25,011
|
25,877
|
||||||
Disposal fees
|
100,803
|
189,974
|
||||||
Total revenue
|
9,232,297
|
10,541,231
|
||||||
COSTS AND EXPENSES:
|
||||||||
Production expense
|
3,925,481
|
3,909,637
|
||||||
Depletion and depreciation
|
2,626,300
|
2,395,000
|
||||||
Exploration expense
|
462,302
|
152,650
|
||||||
Impairment of oil and natural gas properties
|
3,085,787
|
485,999
|
||||||
Accretion of discount on asset retirement obligations
|
104,000
|
96,000
|
||||||
General and administrative
|
1,741,475
|
1,206,389
|
||||||
Total costs and expenses
|
11,945,345
|
8,245,675
|
||||||
OPERATING INCOME (LOSS)
|
(2,713,048
|
)
|
2,295,556
|
|||||
OTHER INCOME (EXPENSE):
|
||||||||
Interest income
|
1,219
|
2,783
|
||||||
Interest expense
|
(263,060
|
)
|
(259,016
|
)
|
||||
Unrealized gain (loss) on commodity derivatives
|
4,000
|
(4,000
|
)
|
|||||
Gain on sale of oil and natural gas property
|
-
|
4,000
|
||||||
Miscellaneous
|
5,443
|
6,744
|
||||||
Total other expense
|
(252,398
|
)
|
(249,489
|
)
|
||||
INCOME (LOSS) BEFORE INCOME TAXES
|
(2,965,446
|
)
|
2,046,067
|
|||||
INCOME TAX EXPENSE –
CURRENT
|
(1,000
|
)
|
(129,070
|
)
|
||||
INCOME TAX BENEFIT (EXPENSE) –
DEFERRED
|
1,018,506
|
(638,000
|
)
|
|||||
TOTAL INCOME TAX BENEFIT (PROVISION)
|
1,017,506
|
(767,070
|
)
|
|||||
NET INCOME (LOSS)
|
$
|
(1,947,940
|
)
|
$
|
1,278,997
|
|||
EARNINGS (LOSS) PER SHARE
:
|
||||||||
BASIC
|
$
|
(0.24
|
)
|
$
|
0.16
|
|||
DILUTED
|
$
|
(0.24
|
)
|
$
|
0.15
|
|||
WEIGHTED AVERAGE SHARES OUTSTANDING:
|
||||||||
BASIC
|
8,095,731
|
8,062,167
|
||||||
DILUTED
|
8,095,731
|
8,385,253
|
Common Stock
|
Additional
Paid-in
|
Retained
|
Treasury Stock
|
|||||||||||||||||||||||||
Shares
|
Amount
|
Capital
|
Earnings
|
Shares
|
Amount
|
Total
|
||||||||||||||||||||||
BALANCES
, January 1, 2013
|
8,970,936
|
$
|
89,709
|
$
|
11,661,922
|
$
|
1,396,726
|
927,000
|
$
|
(1,966,892
|
)
|
$
|
11,181,465
|
|||||||||||||||
Common stock issued from exercise of warrants
|
22,400
|
224
|
89,376
|
-
|
-
|
-
|
89,600
|
|||||||||||||||||||||
Net income
|
-
|
-
|
-
|
1,278,997
|
-
|
-
|
1,278,997
|
|||||||||||||||||||||
BALANCES
, December 31, 2013
|
8,993,336
|
89,933
|
11,751,298
|
2,675,723
|
927,000
|
(1,966,892
|
)
|
12,550,062
|
||||||||||||||||||||
Common stock issued from exercise of warrants
|
49,049
|
490
|
195,705
|
-
|
-
|
-
|
196,195
|
|||||||||||||||||||||
Stock compensation
|
10,000
|
100
|
169,484
|
-
|
-
|
-
|
169,584
|
|||||||||||||||||||||
Net loss
|
-
|
-
|
-
|
(1,947,940
|
)
|
-
|
-
|
(1,947,940
|
)
|
|||||||||||||||||||
BALANCES
, December 31, 2014
|
9,052,385
|
$
|
90,523
|
$
|
12,116,487
|
$
|
727,783
|
927,000
|
$
|
(1,966,892
|
)
|
$
|
10,967,901
|
December 31,
|
||||||||
2014
|
2013
|
|||||||
CASH FLOWS FROM OPERATING ACTIVITIES:
|
||||||||
Net income (loss)
|
$
|
(1,947,940
|
)
|
$
|
1,278,997
|
|||
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
|
||||||||
Gain on sale of oil and natural gas properties
|
-
|
(4,000
|
)
|
|||||
Unrealized (gain)/loss on commodity derivatives
|
(4,000
|
)
|
4,000
|
|||||
Depletion and depreciation
|
2,626,300
|
2,395,000
|
||||||
Exploration expense
|
462,302
|
152,650
|
||||||
Impairment of oil and natural gas properties
|
3,085,787
|
485,999
|
||||||
Deferred income tax (benefit) expense
|
(1,018,506
|
)
|
638,000
|
|||||
Accretion of discount on asset retirement obligations
|
104,000
|
96,000
|
||||||
Stock compensation expense
|
169,584
|
-
|
||||||
Changes in current assets and liabilities:
|
||||||||
Accounts receivable
|
406,016
|
117,825
|
||||||
Income taxes receivable
|
78,117
|
(122,542
|
)
|
|||||
Prepaid expenses and other current assets
|
(43,281
|
)
|
(22,402
|
)
|
||||
Accounts payable and accrued expenses
|
(241,792
|
)
|
(291,205
|
)
|
||||
Oil and natural gas revenues payable
|
75,366
|
(45,646
|
)
|
|||||
Other
|
13,906
|
(19
|
)
|
|||||
Net cash provided by operating activities
|
3,765,859
|
4,682,657
|
||||||
CASH FLOWS FROM INVESTING ACTIVITIES:
|
||||||||
Additions to oil and natural gas properties and other equipment
|
(6,132,396
|
)
|
(3,536,845
|
)
|
||||
Proceeds from the sale of oil and natural gas properties
|
-
|
5,000
|
||||||
Net cash used in investing activities
|
(6,132,396
|
)
|
(3,531,845
|
)
|
||||
CASH FLOWS FROM FINANCING ACTIVITIES:
|
||||||||
Proceeds from long term debt
|
500,000
|
-
|
||||||
Proceeds received from the exercise of warrants
|
196,195
|
89,600
|
||||||
Net cash provided by financing activities
|
696,195
|
89,600
|
||||||
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS
|
(1,670,342
|
)
|
1,240,412
|
|||||
CASH AND CASH EQUIVALENTS
, beginning of year
|
2,648,487
|
1,408,075
|
||||||
CASH AND CASH EQUIVALENTS
, end of the year
|
$
|
978,145
|
$
|
2,648,487
|
||||
SUPPLEMENTAL INFORMATION:
|
||||||||
Cash paid during the year for interest
|
$
|
258,254
|
$
|
199,405
|
||||
Cash paid during the year for income taxes
|
$
|
48,007
|
$
|
334,595
|
||||
Capital items in accounts payable
|
$
|
46,030
|
$
|
143,902
|
1. | Summary of Significant Accounting Policies |
2014
|
2013
|
|||||||
Mineral interests in properties:
|
||||||||
Unproved properties
|
$
|
850,000
|
$
|
850,000
|
||||
Proved properties
|
13,399,016
|
14,250,230
|
||||||
Wells and related equipment and facilities
|
26,624,596
|
20,156,524
|
||||||
Total costs
|
40,873,612
|
35,256,754
|
||||||
Less accumulated depletion, depreciation and impairment
|
(20,466,053
|
)
|
(14,763,266
|
)
|
||||
$
|
20,407,559
|
$
|
20,493,488
|
2014
|
2013
|
|||||||
Asset retirement obligation at January 1,
|
$
|
1,712,685
|
$
|
1,595,935
|
||||
Accretion of discount
|
104,000
|
96,000
|
||||||
Liabilities incurred during the year
|
20,000
|
22,000
|
||||||
Liabilities settled during the year
|
(73,642
|
)
|
(1,250
|
)
|
||||
Asset retirement obligation at December 31,
|
$
|
1,763,043
|
$
|
1,712,685
|
2. | Oil and Natural Gas Properties |
3. | Related Party Transactions |
4. | Commodity Derivatives |
Period
|
Volume (Barrels)
|
$/Barrel
|
||||||||||||||
Daily
|
Total
|
Floor
|
Ceiling
|
|||||||||||||
NYMEX –WTI Collars Jan – March 2014
|
200
|
18,000
|
$
|
87.00
|
$
|
108.00
|
Liability Derivatives
|
|||||||||
Fair Value
|
|||||||||
Balance Sheet
|
December 31,
|
December 31,
|
|||||||
Location
|
2014
|
2013
|
|||||||
Derivatives not designated as hedging instruments
|
|||||||||
Commodity derivatives
|
Current Liabilities
|
$
|
-
|
$
|
4,000
|
Income Statement
|
12 Months Ended
December 31,
|
||||||||
Location
|
2014
|
2013
|
|||||||
Derivatives not designated as hedging instruments
|
|||||||||
Unrealized loss on commodity derivatives
|
Other Income (Expense)
|
$
|
4,000
|
$
|
(4,000
|
)
|
|||
Realized gain on commodity derivatives
|
Other Income (Expense)
|
$
|
(882
|
)
|
$
|
-
|
· | Level 1 – Quoted prices are available in active markets for identical assets or liabilities as of the reporting date. At December 31, 2014, we had no Level 1 measurements |
· | Level 2 – Pricing inputs are other than quoted prices in active markets included in Level 1, which are either directly or indirectly observable as of the reporting date. Level 2 includes those financial instruments that are valued using models or other valuation methodologies. These models are primarily industry-standard models that consider various assumptions, including quoted forward prices for commodities, time value, volatility factors and current market and contractual prices for the underlying instruments, as well as other relevant economic measures. Our derivatives, which consist of commodity collars, are valued using commodity market data which is derived by combining raw inputs and quantitative models and processes to generate forward curves. Where observable inputs are available, directly or indirectly, for substantially the full term of the asset or liability, the instrument is categorized in Level 2. At December 31, 2014, we had no Level 2 measurements. |
· | Level 3 – Pricing inputs include significant inputs that are generally less observable from objective sources. These inputs may be used with internally developed methodologies that result in management’s best estimate of fair value. At December 31, 2014, we had no Level 3 measurements. |
5. | Line of Credit |
6. | Income Taxes |
2014
|
2013
|
|||||||
Current:
|
||||||||
Federal
|
$
|
-
|
$
|
(109,000
|
)
|
|||
State
|
(1,000
|
)
|
(20,070
|
)
|
||||
Total current
|
(1,000
|
)
|
(129,070
|
)
|
||||
Deferred:
|
||||||||
Federal
|
1,008,000
|
(590,000
|
)
|
|||||
State
|
10,506
|
(48,000
|
)
|
|||||
Total deferred
|
1,018,506
|
(638,000
|
)
|
|||||
Total income tax provision
|
$
|
1,017,506
|
$
|
(767,070
|
)
|
2014
|
2013
|
|||||||
Statutory rate (benefit)
|
(34%)
|
|
34%
|
|
||||
State taxes, net of federal benefit
|
0%
|
|
3%
|
|
||||
Effective rate (benefit)
|
(34%)
|
|
37%
|
|
December 31,
|
||||||||
2014
|
2013
|
|||||||
Deferred tax assets:
|
||||||||
Asset retirement obligation
|
$
|
640,000
|
$
|
393,000
|
||||
Allowance for doubtful accounts
|
63,000
|
63,000
|
||||||
Stock compensation and other
|
34,000
|
-
|
||||||
Unrealized loss on commodity derivatives
|
-
|
1,000
|
||||||
Alternative minimum tax credit carryforward
|
128,000
|
80,000
|
||||||
Net operating loss carryforward
|
1,001,000
|
-
|
||||||
Total deferred tax assets
|
1,866,000
|
537,000
|
||||||
Deferred tax liability:
|
||||||||
Difference in depreciation, depletion and capitalization methods – oil and gas properties
|
(3,832,000
|
)
|
(3,446,000
|
)
|
||||
Total deferred tax liabilities
|
(3,832,000
|
)
|
(3,446,000
|
)
|
||||
Net deferred tax liability
|
$
|
(1,966,000
|
)
|
$
|
(2,909,000
|
)
|
2014
|
2013
|
|||||||
Current asset
|
$
|
98,000
|
$
|
64,000
|
||||
Non-current liability
|
(2,064,000
|
)
|
(2,973,000
|
)
|
||||
Total
|
$
|
(1,966,000
|
)
|
$
|
(2,909,000
|
)
|
7. | Earnings Per Share |
December 31,
|
||||||||
2014
|
2013
|
|||||||
Net income (loss)
|
$
|
(1,947,940
|
)
|
$
|
1,278,997
|
|||
Weighted average common stock outstanding
|
8,095,731
|
8,062,167
|
||||||
Weighted average dilutive effect of stock warrants
|
-
|
323,086
|
||||||
Dilutive weighted average shares
|
8,095,731
|
8,385,253
|
||||||
Earnings (loss) per share:
|
||||||||
Basic
|
$
|
(0.24
|
)
|
$
|
0.16
|
|||
Diluted
|
$
|
(0.24
|
)
|
$
|
0.15
|
8.
|
Stockholders’ Equity
|
Warrants
|
Weighted
Average Exercise
Price
|
Weighted Average
Expected Life
(Years)
|
||||||||||
Outstanding, December 31, 2013
|
7,960,775
|
$
|
4.00
|
4.25
|
||||||||
Issued
|
-
|
-
|
||||||||||
Exercised
|
(49,049
|
)
|
$
|
4.00
|
||||||||
Expired
|
-
|
-
|
||||||||||
Outstanding, September 30, 2014
|
7,911,726
|
$
|
4.00
|
3.25
|
9.
|
Environmental Issues
|
10. | Commitments |
2015
|
$
|
36,000
|
||
2016
|
3,000
|
|||
$
|
39,000
|
11. |
Oil and Gas Producing Activities
|
Years Ended December 31,
|
||||||||
2014
|
2013
|
|||||||
Costs incurred in oil and natural gas producing activities:
|
||||||||
Acquisition of unproved properties
|
$
|
-
|
$
|
-
|
||||
Acquisition of proved properties
|
-
|
-
|
||||||
Exploration costs
|
462,302
|
152,650
|
||||||
Development costs
|
5,635,098
|
3,479,135
|
||||||
Total costs incurred
|
$
|
6,097,400
|
$
|
3,631,785
|
Years Ended December 31,
|
||||||||
2014
|
2013
|
|||||||
Revenues
|
$
|
9,106,483
|
$
|
10,325,380
|
||||
Expenses
|
||||||||
Production expense
|
3,925,481
|
3,909,637
|
||||||
Depletion and depreciation
|
2,626,300
|
2,395,000
|
||||||
Exploration expense
|
462,302
|
152,650
|
||||||
Impairment of oil and natural gas properties
|
3,085,787
|
485,999
|
||||||
Accretion of discount on asset retirement obligations
|
104,000
|
96,000
|
||||||
Total expenses
|
10,203,870
|
7,039,286
|
||||||
Income (loss) before income taxes
|
(1,097,387
|
)
|
3,286,094
|
|||||
Income tax benefit (expense) (1)
|
373,112
|
(1,215,855
|
)
|
|||||
Results of operations for oil and natural gas producing activities (excluding corporate overhead and interest costs)
|
$
|
(724,275
|
)
|
$
|
2,070,239
|
(1)
|
Reflects the Company’s effective tax rate.
|
12.
|
Disclosures About Oil and Gas Producing Activities (Unaudited)
|
Oil
(Barrels)
|
Gas
(MCF)
|
|||||||
Balance, January 1, 2013
|
1,224,926
|
2,348,335
|
||||||
Revisions of previous estimates
|
(202,450
|
)
|
(322,413
|
)
|
||||
Extensions and discoveries
|
99,988
|
143,343
|
||||||
Sale of reserves
|
-
|
-
|
||||||
Purchase of minerals in place
|
-
|
-
|
||||||
Production
|
(101,752
|
)
|
(179,737
|
)
|
||||
Balance, December 31, 2013
|
1,020,712
|
1,989,528
|
||||||
Revisions of previous estimates
|
(25,391
|
)
|
(51,075
|
)
|
||||
Extensions and discoveries
|
216,930
|
118,880
|
||||||
Sale of reserves
|
-
|
-
|
||||||
Purchase of minerals in place
|
-
|
-
|
||||||
Production
|
(97,630
|
)
|
(148,086
|
)
|
||||
Balance, December 31, 2014
|
1,114,621
|
1,909,247
|
||||||
Proved developed reserves, December 31, 2014
|
937,416
|
1,652,014
|
||||||
Proved developed reserves, December 31, 2013
|
916,139
|
1,834,899
|
Years Ended December 31,
|
||||||||
(in thousands)
|
||||||||
2014
|
2013
|
|||||||
Future cash inflows
|
$
|
111,664
|
$
|
101,289
|
||||
Future production costs
|
(41,322
|
)
|
(38,667
|
)
|
||||
Future development cost
|
(6,733
|
)
|
(3,681
|
)
|
||||
Future income taxes
|
(20,712
|
)
|
(18,115
|
)
|
||||
Future net cash flows
|
42,897
|
40,826
|
||||||
10% annual discount
|
(19,908
|
)
|
(20,455
|
)
|
||||
,
|
||||||||
Standardized measure of discounted future net cash flows
|
$
|
22,989
|
$
|
20,371
|
Years Ended December 31,
|
||||||||
2014
|
2013
|
|||||||
Balance, beginning of year
|
$
|
20,371
|
$
|
25,100
|
||||
Sales of oil and natural gas produced, net of production costs
|
(5,181
|
)
|
(6,416
|
)
|
||||
Sale of reserves
|
-
|
-
|
||||||
Extensions and discoveries
|
6,477
|
3,040
|
||||||
Net changes in prices and production costs
|
2,139
|
525
|
||||||
Net changes in future development costs
|
(2,209
|
)
|
(1,227
|
)
|
||||
Revisions and other changes
|
551
|
(6,556
|
)
|
|||||
Accretion of discount
|
3,210
|
3,736
|
||||||
Net change in income taxes
|
(2,369
|
)
|
2,169
|
|||||
Balance, end of year
|
$
|
22,989
|
$
|
20,371
|
13.
|
Subsequent Event (unaudited)
|
ITEM 9
|
CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE
|
ITEM 9A.
|
CONTROLS AND PROCEDURES
|
a) | Our Principal Executive Officer, Roger D. Bryant, and our Principal Financial Officer, Phillip H. Roberson, have established and are currently maintaining disclosure controls and procedures for the Company. The disclosure controls and procedures have been designed to provide reasonable assurance that the information required to be disclosed by the Company in reports that it files under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the rules and forms of the SEC and to ensure that information required to be disclosed by the Company is accumulated and communicated to the Company's management as appropriate to allow timely decisions regarding required disclosure. |
b) | There has been no change in our internal control over financial reporting during the fourth quarter ended December 31, 2014, that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting. |
ITEM 9B.
|
OTHER INFORMATION
|
ITEM 10
|
DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE.
|
(a) | Identification of Directors and Executive Officers. The following table sets forth the names and ages of the Directors and Executive Officers of the Company, all positions and offices with the Company held by such person, and the time during which each such person has served: |
Name
|
Age
|
Position with Company
|
Period Served
|
Roger D. Bryant
|
72
|
Principal Executive Officer,
Director,
|
June 9, 2013-present
July 1997-present
|
Phillip H. Roberson
|
46
|
President,
Principal Financial Officer, Director
|
December 2013-present
July 2013-present
November 11, 2014 - present
|
Ray D. Reaves
|
51
|
Director, President,
Chairman, Principal
Executive Officer
|
May 1997-June 6, 2013
|
Karl W. Reimers
|
73
|
Director
|
October 2004-present
|
Dan Robinson
|
67
|
Director
|
August 2004-present
|
Debra Funderburg
|
56
|
Director
|
February 2006 – November 7, 2014
|
Nancy Stephenson
|
61
|
Director
|
October 2012 - present
|
a.
|
had any bankruptcy petition filed by or against any business of which such person was a general partner or executive officer either at the time of the bankruptcy or within two years prior to that time;
|
b. | been convicted in a criminal proceeding or subject to a pending criminal proceeding; |
c. | been subject to any order, judgment, or decree, not subsequently reversed, suspended or vacated, of any court of competent jurisdiction, permanently or temporarily enjoining, barring, suspending or otherwise limiting his involvement in any type of business, securities or banking activities; or |
d. | been found by a court of competent jurisdiction in a civil action, the Commission or the Commodity Futures Trading Commission to have violated a federal or state securities or commodities law, and the judgment has not been reversed, suspended, or vacated. |
a . | Meetings of the Board of Directors |
b
.
|
Committees
|
- | reviews with management, the external consultants and the independent auditors policies and procedures with respect to internal controls; |
- | reviews significant accounting matters; |
- | approves any significant changes in accounting principles of financial reporting practices; |
- | reviews independent auditor services; and |
- | recommends to the Board of Directors the firm of independent auditors to audit our consolidated financial statements. |
- | Recommends to the Board of Directors the compensation and cash bonus opportunities based on the achievement of objectives set by the Compensation Advisory Committee with respect to our Chairman of the Board and President, our Chief Executive Officer and the other executive officers; |
- | administers our compensation plans for the same executives; |
- | determines equity compensation for all employees; |
- | reviews and approves the cash compensation and bonus objectives for the executive officers; and |
- | reviews various matters relating to employee compensation and benefits. |
ITEM 11
|
EXECUTIVE COMPENSATION
|
· | Pay levels are evaluated and calibrated relative to other companies of comparable size operating in the oil and gas exploration business (the “Peer Group”) as the primary market reference point. In addition, general industry data is reviewed as an additional market reference and to ensure robust competitive data. |
· | Target total direct compensation (target total cash compensation plus the annualized expected value of long-term incentives) levels for NEOs are calibrated relative to the Peer Group. |
· | Base salary and target total cash compensation levels (base salary plus target annual incentive) for NEOs are calibrated to the Peer Group. |
· | The long-term incentive component of the executive compensation program is discretionary and viewed in light of the target total direct compensation level. |
• | job level and responsibilities, |
• | relevant experience, |
• | individual performance, |
• | recent corporate performance. |
Name
and
Principal
Position
|
Year
|
Salary ($)
|
Bonus
|
Stock
Awards
|
Options
Awards
|
Non
equity
Incentive
Plan
Compensa
-tion
|
Nonqualified
Deferred
Compensation
Earnings
|
All Other
Compensa-
tion
|
Total
|
||||||||||||||||||||||||
Phillip H. Roberson, President, and CFO
|
2014
|
$
|
200,000
|
$
|
-
|
$
|
55,000
|
-
|
-
|
-
|
-
|
$
|
255,000
|
||||||||||||||||||||
Phillip H. Roberson, President, and CFO
|
2013
|
$
|
75,000
|
$
|
35,000
|
-
|
-
|
-
|
-
|
-
|
$
|
110,000
|
|||||||||||||||||||||
Ray D. Reaves, CEO, President
|
2013
|
$
|
140,000
|
$
|
-
|
-
|
-
|
-
|
-
|
-
|
$
|
140,000
|
|||||||||||||||||||||
Ray D. Reaves, CEO, President
|
2012
|
$
|
351,400
|
$
|
300,000
|
-
|
-
|
-
|
-
|
-
|
$
|
651,400
|
Option Awards
|
Stock Awards
|
|||||||||||||||||||||||||||||||||||
Name
|
Number of
Securities
Underlying
Unexercised
Options
Exercisable
|
Number of
Securities
Underlying
Unexercised
Options
Unexercisable
|
Equity
Incentive
Plan
Awards;
Number of
Securities
Underlying
Unexercised
Unearned
Options
|
Option
Exercise
Price
|
Option
Exercise
Date
|
Number
of
Shares
or
Units of
Stock
That
Have
Not
Vested
|
Market
Value
of
Shares
of
Units
That
Have
Not
Vested
|
Equity
Incentive
Plan
Awards;
Number
of
Unearned
Shares,
Units or
Other
Rights
That
Have
Not
Vested
|
Equity
Incentive
Plan
Awards;
Market or
Payout
Value of
Unearned
Shares,
Units or
Other
Rights
That
Have
Not
Vested
|
|||||||||||||||||||||||||||
Ray Reaves
|
- 0 -
|
- 0 -
|
-
|
-
|
-
|
- 0 -
|
-
|
-
|
-
|
|||||||||||||||||||||||||||
Roger Bryant
|
- 0 -
|
- 0 -
|
-
|
-
|
-
|
- 0 -
|
-
|
-
|
-
|
|||||||||||||||||||||||||||
Phillip Roberson
|
- 0 -
|
- 0 -
|
-
|
-
|
-
|
40,000
|
$
|
71,600
|
-
|
-
|
Name
|
Fees
Earned
or Paid
in Cash
|
Stock
Awards
|
Option
Awards
|
Non-Equity
Incentive Plan
Compensation
|
Nonqualified
Deferred
Compensation
Earnings
|
All Other
Compensation
|
Total
|
|||||||||||||||||||||
Roger Bryant
|
$
|
122,000
|
-
|
-
|
-
|
-
|
-
|
$
|
122,000
|
|||||||||||||||||||
Karl Reimers
|
$
|
39,500
|
-
|
-
|
-
|
-
|
-
|
$
|
39,500
|
|||||||||||||||||||
Dan Robinson
|
$
|
39,500
|
-
|
-
|
-
|
-
|
-
|
$
|
39,500
|
|||||||||||||||||||
Debra Funderburg
|
$
|
32,625
|
-
|
-
|
-
|
-
|
-
|
$
|
32,625
|
|||||||||||||||||||
Nancy Stephenson
|
$
|
39,500
|
-
|
-
|
-
|
-
|
-
|
$
|
39,500
|
ITEM 12
|
SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS
|
· | * each person who beneficially owns more than 5% of the common stock; |
· | * each of our executive officers named in the Management section; |
· | * each of our directors; and |
· | * all executive officers and directors as a group. |
Name and Address
Of Beneficial Owner
(2)
|
Amount and Nature
of Beneficial Owner
|
Percent of Class
(1)
|
||||||
Estate of Ray D. Reaves
|
2,952,709
|
36.3
|
%
|
|||||
Roger D. Bryant
|
34,000
|
*
|
||||||
Dan Robinson
|
96,000
|
1.2
|
%
|
|||||
Karl Reimers
|
58,100
|
*
|
||||||
Nancy Stephenson
|
2,500
|
*
|
||||||
Phillip Roberson
|
20,500
|
*
|
||||||
All Officers and Directors as a Group (5 persons)
|
211,100
|
2.6
|
%
|
ITEM 13.
|
CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR INDEPENDENCE
.
|
ITEM 14.
|
PRINCIPAL ACCOUNTANT FEES AND SERVICES
|
2014
|
2013
|
|||||||
Audit fees - audit of annual financial statements and review of financial statements included in our quarterly reports, services normally provided by the accountant in connection with statutory and regulatory filings.
|
$
|
135,100
|
$
|
117,300
|
||||
Audit-related fees - related to the performance of audit or review of financial statements not reported under "audit fees" above
|
-
|
-
|
||||||
Tax fees - tax compliance, tax advice and tax planning
|
35,300
|
23,900
|
||||||
All other fees - services provided by our principal accountants other than those identified above
|
-
|
-
|
||||||
Total fees paid or accrued to our principal accountants
|
$
|
170,400
|
$
|
141,200
|
ITEM 15
|
EXHIBITS AND FINANCIAL STATEMENT SCHEDULES
|
(a)
|
Exhibits
|
3.1
|
Articles of Incorporation (incorporated by reference to Amendment No. 1 to Form S-2 dated August 1, 1980.)
|
|
3.2(b)
|
Articles of Amendment of Articles of Incorporation, dated December 31, 1997 (incorporated by reference to the Company's 10KSB for the year ended December 31, 1997.)
|
|
3.3
|
Bylaws (incorporated by reference to Amendment No. 1 to Form S-2 dated August 1, 1980.)
|
|
4.1
|
Plan of Exchange (incorporated by reference to the Company's definitive proxy statement dated December 8, 1997).
|
|
4.2
|
Indenture (Term Loan) dated June 21, 1999 by and among the Company and Union Planters Bank (incorporated by reference to the Company's 10KSB for the year ended December 31, 1999.)
|
|
4.3
|
Indenture (Term Loan) dated August 18, 1999 by and among the Company and Union Planters Bank (incorporated by reference to the Company's 10KSB for the year ended December 31, 1999.)
|
|
4.4.
|
Stock Option Agreement (incorporated by reference to the Company’s Form S-8 dated May 27, 2005 as filed with the Commission on May 27, 2005.)
|
|
4.5
|
Warrant Agreement and Form of Warrant Certificate (incorporated by reference to the Company’s Form S-3 as filed with the Commission on November 22, 2011.)
|
|
10.1
|
Consulting Agreement dated May 9, 2000 between FieldPoint Petroleum Corp. and Parrish Brian & Co. (incorporated by reference to the Company's 10QSB/A for the quarter ended September 30, 2000)
|
|
10.2
|
Executive Employment Agreement, dated March 28, 2001, by and among FieldPoint Petroleum Corp. and Ray D. Reaves (incorporated by reference to the Company's 10KSB for the year ended December 31, 2000.)
|
|
10.3
|
Credit Agreement (Revolving Credit Note) dated December 14, 2000 by and among FieldPoint Petroleum Corp. and Union Planters Bank (incorporated by reference to the Company's 10KSB for the year ended December 31, 2000.)
|
|
10.4
|
Audit Committee Charter adopted by the Company on March 28, 2001(incorporated by reference to the Company's 10KSB for the year ended December 31, 2000.)
|
|
10.5
|
Consulting Agreement dated November 13, 2001 between FieldPoint Petroleum Corp. and TRG Group LLC. (incorporated by reference to the Company's 10QSB for the quarter ended September 30, 2001)
|
|
10.6
|
Loan and Security Agreement with CitiBank, N.A., dated October 18, 2006 (incorporated by reference from the Company’s current report on Form 8k dated October 18, 2006 as filed with the Commission on October 20, 2006.)
|
14.
|
Code of Ethics (incorporated by reference to the Company’s Annual Report on Form 10-KSB for the year ended December 31, 2003 as filed with the Commission on April 14, 2004.)
|
|
Certification of Principal Executive Officer required by Section 13a-14(a) of the Exchange Act.
|
||
Certification of Principal Operating Officer and Principal Financial Officer required by Section 13a-14(a) of the Exchange Act.
|
||
Certification of Principal Executive Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
|
||
Certification of Principal Operating Officer and Principal Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
|
||
Reserve and Economic Evaluation by Fletcher Lewis Engineering, Inc.
|
||
Estimates of Proved Reserves & Revenues by PGH Petroleum & Environmental Engineers, LLC
|
||
Evaluation of Oil and Gas Reserves by Joe C. Neal & Associates
|
||
2014 Year-End SEC Reserve Evaluation of Pinnacle Energy Services, L.L.C.
|
||
Letter Report and Certificate of Qualification of Fletcher Lewis Engineering, Inc.
|
||
Letter Report and Certificate of Qualification of PGH Petroleum & Environmental Engineers, L.L.C.
|
||
Letter Report and Certificate of Qualification of Joe C. Neal & Associates
|
||
Letter Report and Certificate of Qualification of Pinnacle Energy Services, L.L.C.
|
FIELDPOINT PETROLEUM CORPORATION
|
|||||
(Registrant)
|
|||||
Date: |
March 30, 2015
|
By:
|
/s/ Roger D. Bryant
|
||
Roger D. Bryant, Principal Executive Officer
|
|||||
Date: |
March 30, 2015
|
By
:
|
/s/ Phillip H. Roberson
|
||
Phillip H. Roberson, Principal Financial Officer
|
By:
|
/s/ Roger D. Bryant
|
Date: March 30, 2015
|
|
Roger D. Bryant
|
|||
Principal Executive Officer,
|
|||
Director
|
|||
By:
|
/s/ Phillip H. Roberson
|
Date: March 30, 2015
|
|
Phillip H. Roberson
|
|||
President,
|
|||
Principal Operating Officer, Principal Financial Officer,
|
|||
and Director | |||
By:
|
/s/ Dan Robinson
|
Date: March 30, 2015
|
|
Dan Robinson
|
|||
Director
|
|||
By:
|
/s/ Karl W. Reimers
|
Date: March 30, 2015
|
|
Karl W. Reimers
|
|||
Director
|
|||
By:
|
/s/Nancy Stephenson
|
Date: March 30, 2015
|
|
Nancy Stephenson
|
|||
Director
|
1. | SERVICES AND DUTIES |
2. | TERM |
3. | COMPENSATION AND RELATED MATTERS |
4. | TERMINATION |
5. | COMPENSATION AND PAYMENTS UPON TERMINATION |
6. | NON-DISCLOSURE |
7. | RETURN OF COMPANY PROPERTY |
8. | NON-SOLICITATION OF EMPLOYEES |
9. | REMEDIES |
10. | SUCCESSORS; BINDING AGREEMENT |
11. | COMPLETE AGREEMENT |
12. | NOTICE |
If to the Executive:
|
Phillip
H.
Roberson
|
609 Castle Ridge Road, Suite 335
|
|
Austin, Texas
78746
|
|
If to Company:
|
Roger D. Bryant, Executive Chairman
|
1124 Comanche Drive
|
|
Allen, TX 75013
|
13. | MISCELLANEOUS |
14.
|
GOVERNING LAW AND VENUE |
15.
|
ATTORNEY FEES
|
16.
|
VOLUNTARY AGREEMENT
|
EXECUTIVE:
|
||
Phillip H. Roberson
|
||
COMPANY:
|
||
Roger D. Bryant – Executive Chairman
|
1. | I have reviewed this Annual Report on Form 10-K of FieldPoint Petroleum Corporation; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the small business issuer as of, and for, the periods presented in this report; |
4. | The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
(a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
(b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
(c) | Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
(d) | Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and |
5. | The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions): |
(a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and |
(b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. |
Date
March 30, 2015
|
By:
|
/
s/ Roger D. Bryant
|
Roger D. Bryant, Principal Executive Officer
|
1. | I have reviewed this Annual Report on Form 10-K of FieldPoint Petroleum Corporation; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the small business issuer as of, and for, the periods presented in this report; |
4. | The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
(a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
(b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
(c) | Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
(d) | Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and |
5. | The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions): |
(a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and |
(b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. |
Date:
March 30, 2015
|
By
:
|
/
s/ Phillip H. Roberson
|
Phillip H. Roberson, Principal Operating Officer and
|
||
Principal Financial Officer
|
(1) | The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and |
(2) | The information contained in the Report fairly presents, in all material respects, the financial condition and result of operations of the Company. |
By: |
/s/
Roger D. Bryant
|
||
Roger D. Bryant
|
|||
Principal Executive Officer
|
|||
March 30, 2015
|
(1) | The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and |
(2) | The information contained in the Report fairly presents, in all material respects, the financial condition and result of operations of the Company. |
By: |
/
s/ Phillip H. Roberson
|
||
Phillip H. Roberson
|
|||
Principal Operating Officer and
|
|||
Principal Financial Officer
|
|||
March 30, 2015
|
|
||
5001 N
.
P
E
NNSYLVANI
A
.
SU
I
T
E
300
|
||
PENN
PARK
O
FF
ICE
CENT
E
R
|
||
OKLAHOMA
CITY
.
OK
LAHOMA
7311
2
|
||
(4
0
5)
84
0
·
5
67
5
|
|
RE
:
|
Reserve
and Economic Evaluation
|
|
|
Fieldpoint Petr
o
leum
Co
r
poration
|
|
|
S
E
C
Case
Econo
m
i
c
s
|
As
o
f
January
1
,
2
0
1
5
|
NET OIL
|
NET GAS
|
FUTURE
|
DISCOUNTED
|
|||||||||||||
(BBLS)
|
(MCF)
|
NET
|
PRESENT
|
|||||||||||||
REVENUE
|
WORTH 10%
|
|||||||||||||||
$ | $ | |||||||||||||||
Proved Developed P
r
oducing
|
54
,
88
1
|
144
,
332
|
3,
58
1
,
697
|
2
,
1
99,02
1
|
||||||||||||
Behind-Pipe
|
112
,
89
5
|
33
4
,
4
50
|
8
,
0
1
5
,
425
|
4
,
0
12
,4
2
1
|
||||||||||||
Summa
r
y
|
1
6
7,77
6
|
47
8
,7
82
|
11
,
5
97,
1
2
2
|
6
,
211
,
44
2
|
OIL PRICE$/BBL
|
GAS PRICE$/MCF
|
|||||||
JAN
1
,
2014
|
91
.
63
|
4.31
|
||||||
FEB
1
,
2014
|
90
.
70
|
5
.
10
|
||||||
MAR 1, 2014
|
95
.
80
|
5
.
14
|
||||||
APR
1
,
20
1
4
|
92.95
|
4.25
|
||||||
MAY
1
,
2
014
|
91.39
|
4.41
|
||||||
JUN
1
,
20
1
4
|
94
.
6
2
|
4
.
14
|
||||||
JUL
1,
2014
|
9
7
.
2
5
|
4
.
3
2
|
||||||
AUG
1
,
2014
|
89.
7
9
|
3
.49
|
||||||
SEP
1
,
2
014
|
87
.
8
7
|
3
.
72
|
||||||
O
CT
1,
2014
|
8
2.
6
4
|
3
.
7
1
|
||||||
NOV
1
,
2014
|
72.
45
|
3.7
3
|
||||||
D
E
C
1
,
2
014
|
60
.
9
1
|
4
.
2
8
|
||||||
AVERAGE
|
87.33
|
4.21
|
WELL NAME
|
LOCATION
|
COUNTY
|
Working Interest %
|
Net Revenue Interest %
|
||||||||||||
ALEXANDER #1-3
|
3 B&B SUR
|
HEMPHILL
|
0.0585
|
0.0180
|
||||||||||||
BARGER #1-11
|
11-9N-11
|
W
|
CADDO
|
0.1953
|
0.1587
|
|||||||||||
BARGER #2-11
|
11-9N-11
|
W
|
CADDO
|
0.1953
|
0.1485
|
|||||||||||
BARROW #1-31
|
31-10N-11
|
W
|
CADDO
|
0.0974
|
0.0842
|
|||||||||||
BARROW #2-31
|
31-10N-11
|
W
|
CADDO
|
0.3516
|
0.3039
|
|||||||||||
BRITT LEASE
|
20- 4N- 7
|
E
|
PONTOTOC
|
25.0000
|
18.5797
|
|||||||||||
BRITT 10 LEASE
|
20- 4N- 7
|
E
|
PONTOTOC
|
25.0000
|
20.3125
|
|||||||||||
LOWINDA BROWN #6-8
|
7-1N-8
|
E
|
COAL
|
21.8750
|
9.5703
|
|||||||||||
BUTLER LEASE
|
30-5N-8
|
E
|
PONTOTOC
|
25.0000
|
20.9003
|
|||||||||||
CHANUTE LEASE
|
36-5N-7
|
E
|
PONTOTOC
|
25.0000
|
21.8750
|
|||||||||||
CITY OF ARDMORE #1-3
|
3-5S-2
|
E
|
CARTER
|
0.8536
|
0.6651
|
|||||||||||
DEVAUGHAN #1-31
|
31-10N-11
|
W
|
CADDO
|
0.3516
|
0.3039
|
|||||||||||
DIAMOND LEASE
|
30- 5N- BE
|
PONTOTOC
|
25.0000
|
20.8840
|
||||||||||||
ECKROAT #1-15
|
15-12N-2
|
W
|
OKLAHOMA
|
16.7637
|
13.4109
|
|||||||||||
FRANK EDGE #1-11
|
11-9N-11
|
W
|
CADDO
|
0.1953
|
0.1587
|
|||||||||||
IDA EDGE #1-11
|
11-9N-11
|
W
|
CADDO
|
0.1953
|
0.1587
|
|||||||||||
FOLMAR #1-27
|
27-12N-2
|
W
|
OKLAHOMA
|
17.1875
|
14.9274
|
|||||||||||
DORA HELMS #3-2
|
2-1N-7
|
E
|
OKLAHOMA
|
18.8423
|
15.7478
|
|||||||||||
DORA HELMS #4-2
|
2-1N-7
|
E
|
PONTOTOC
|
18.8423
|
17.1831
|
|||||||||||
HENDRICKS #1-15
|
15-6N-9
|
W
|
CADDO
|
0.1094
|
0.0634
|
|||||||||||
HENDRICKS TRUST #1-27
|
27-12N-2
|
W
|
OKLAHOMA
|
25.0000
|
20.3125
|
|||||||||||
IDA HOLLIE #1-20
|
20-7N-23
|
E
|
LEFLORE
|
0.5207
|
0.4232
|
|||||||||||
IDA HOLLIE #2-20
|
20-7N-23
|
E
|
LEFLORE
|
0.5207
|
0.4232
|
|||||||||||
E E HOUSE #1-12
|
12-1N-7
|
E
|
PONTOTOC
|
21.8750
|
9.5704
|
|||||||||||
E E HOUSE #10-12
|
12-1N-7
|
E
|
PONTOTOC
|
21.8750
|
9.5704
|
|||||||||||
JESSIE #1-24
|
24-12N-13
|
W
|
CADDO
|
0.4035
|
0.3531
|
|||||||||||
JESSIE TOWNSITE #1-2
|
2-1N-7
|
E
|
PONTOTOC
|
18.8064
|
17.0021
|
|||||||||||
KOLB #1-15
|
15-12N-2
|
W
|
OKLAHOMA
|
21.8750
|
17.7734
|
|||||||||||
LEWIS #1-11
|
11-5N-2
|
W
|
MCCLAIN
|
11.2386
|
9.6085
|
|||||||||||
LIVELY #1-6
|
6-5N-20
|
E
|
LATIMER
|
0.3906
|
0.2930
|
|||||||||||
MCBRIDE #1-8
|
8-9N-11
|
W
|
CADDO
|
0.0977
|
0.0794
|
|||||||||||
MCCURTAIN #1-1
|
1-1N-7
|
E
|
PONTOTOC
|
20.5625
|
17.9922
|
|||||||||||
MCDONALD LEASE
|
19-5N-8
|
E
|
PONTOTOC
|
25.0000
|
21.8750
|
|||||||||||
MCINTOSH #1-11
|
11-4N-9
|
W
|
COMANCHE
|
0.1297
|
0.0979
|
|||||||||||
MOONEY #1-29
|
29-6N-2
|
W
|
MCCLAIN
|
17.1875
|
13.6211
|
|||||||||||
MOUNT GILCREASE #3-12
|
36-5N-7
|
E
|
PONTOTOC
|
25.0000
|
21.8750
|
|||||||||||
MOUNT GILCREASE #8-6
|
36-5N-7
|
E
|
PONTOTOC
|
25.0000
|
21.8750
|
|||||||||||
MOUNT GILCREASE #8-9
|
36-5N-7
|
E
|
PONTOTOC
|
25.0000
|
21.8750
|
|||||||||||
MOUNT GILCREASE UNIT
|
25,26&35-5N-7
|
E
|
PONTOTOC
|
25.0000
|
21.7707
|
|||||||||||
MUSE #1-33
|
33-2N-7
|
E
|
PONTOTOC
|
6.2500
|
5.4688
|
|||||||||||
NAN #1-30
|
30-5N-8
|
E
|
PONTOTOC
|
25.0000
|
19.8242
|
|||||||||||
NAN #2-30
|
30-5N-8
|
E
|
PONTOTOC
|
25.0000
|
19.8242
|
|||||||||||
NORTHEAST FITTS UNIT
|
22 & 23-2N-7
|
E
|
PONTOTOC
|
0.0009
|
0.0008
|
|||||||||||
PARMENTER #2-4
|
4-18N-15
|
W
|
DEWEY
|
2.8438
|
2.2395
|
|||||||||||
K 0 PAYNE #1-10
|
10-17N-12
|
W
|
BLAINE
|
1.1349
|
0.9431
|
|||||||||||
PETTYJOHN B
|
1- 1N- 7
|
E
|
PONTOTOC
|
25.0000
|
20.5078
|
|||||||||||
CE PETTYJOHN
|
1- 1N- 7
|
E
|
PONTOTOC
|
25.0000
|
20.5078
|
|||||||||||
GLADYS PETTYJOHN
|
1- 1N- 7
|
E
|
PONTOTOC
|
25.0000
|
21.0937
|
|||||||||||
POLLARD #2-31
|
31-19N-4
|
W
|
LOGAN
|
4.5921
|
3.7411
|
|||||||||||
POWELL D #1-22
|
22-7N-8
|
W
|
GRADY
|
3.1250
|
2.5000
|
|||||||||||
PROVENCE #1-2
|
2-1N-7
|
E
|
PONTOTOC
|
25.0000
|
20.8733
|
|||||||||||
PROVENCE A LEASE
|
2-1N-7
|
E
|
PONTOTOC
|
25.0000
|
20.8733
|
|||||||||||
ROSSER #1-31
|
31-10N-11
|
W
|
CADDO
|
0.3039
|
0.3516
|
|||||||||||
ROZIE #1-31
|
31-10N-11
|
W
|
CADDO
|
0.0974
|
0.0760
|
|||||||||||
ROZIE #2-31
|
31-10N-11
|
W
|
CADDO
|
0.0974
|
0.0760
|
|||||||||||
SANDY A #1-8
|
8-1N-8
|
E
|
COAL
|
4.9781
|
4.0771
|
|||||||||||
SHAW #1-11
|
11-9N-11
|
W
|
CADDO
|
0.1953
|
0.1587
|
|||||||||||
R W SIMPSON #1-12
|
12-1N-7
|
E
|
PONTOTOC
|
21.8750
|
19.1407
|
|||||||||||
TEX #1-14
|
14-4N-16
|
E
|
PITTSBURG
|
0.8203
|
0.6768
|
|||||||||||
THOMAS #1-20
|
20-2N-7
|
E
|
PONTOTOC
|
21.8750
|
18.8241
|
|||||||||||
GEORGE THOMPSON #1-1.
|
1-1N-7
|
E
|
PONTOTOC
|
15.1563
|
12.3145
|
NAME
|
STATUS
|
NET OIL BBLS
|
NET GAS MCF
|
FUTURE NET
|
DISCOUNTED
|
|||||||||||||||
|
BBLS
|
MCF
|
CASHFLOW
|
10
|
%$
|
|||||||||||||||
ALEXANDER #1-3
|
PDP
|
0
|
81
|
53
|
44
|
|||||||||||||||
BARGER #1-11
|
PDP
|
0
|
0
|
0
|
0
|
|||||||||||||||
BARGER #2-11
|
PDP
|
1
|
18
|
13
|
12
|
|||||||||||||||
BARROW #1-31
|
PDP
|
2
|
217
|
485
|
371
|
|||||||||||||||
BARROW #2-31
|
PDP
|
4
|
1,272
|
1,692
|
1,448
|
|||||||||||||||
BRITT LEASE
|
PDP
|
0
|
0
|
0
|
0
|
|||||||||||||||
BRITT LEASE
|
BHP
|
6,799
|
0
|
493,726
|
278,515
|
|||||||||||||||
BRITT 10 LEASE
|
PDP
|
0
|
0
|
0
|
0
|
|||||||||||||||
LOWINDA BROWN #6-8
|
PDP
|
563
|
5,659
|
47,325
|
34,337
|
|||||||||||||||
BUTLER LEASE
|
PDP
|
5,214
|
0
|
352,713
|
227,886
|
|||||||||||||||
BHP
|
565
|
61,239
|
155,312
|
118,628
|
||||||||||||||||
CHANUTE LEASE
|
PDP
|
1,159
|
0
|
42,502
|
30,293
|
|||||||||||||||
CITY OF ARDMORE #1-3
|
PDP
|
0
|
1,173
|
3,711
|
2,766
|
|||||||||||||||
DEVAUGHAN #1-31
|
PDP
|
3
|
1,042
|
1,167
|
946
|
|||||||||||||||
DIAMOND LEASE
|
PDP
|
11,570
|
0
|
743,760
|
457,614
|
|||||||||||||||
ECKROAT #1-15
|
PDP
|
384
|
0
|
17,829
|
11,652
|
|||||||||||||||
FRANK EDGE #1-11
|
PDP
|
4
|
79
|
129
|
111
|
|||||||||||||||
IDA EDGE #1-11
|
PDP
|
6
|
265
|
620
|
475
|
|||||||||||||||
FOLMAR #1-27
|
PDP
|
1,540
|
0
|
67,936
|
50,202
|
|||||||||||||||
DORA HELMS #3-2
|
PDP
|
207
|
0
|
2,491
|
2,250
|
|||||||||||||||
DORA HELMS #4-2
|
PDP
|
0
|
0
|
0
|
0
|
|||||||||||||||
HENDRICKS #1-15
|
PDP
|
3
|
310
|
676
|
464
|
|||||||||||||||
HENDRICKS TRUST #1-27
|
PDP
|
181
|
0
|
2,646
|
2,304
|
|||||||||||||||
IDA HOLLIE #1-20
|
PDP
|
0
|
2,264
|
7,384
|
4,614
|
|||||||||||||||
IDA HOLLIE #2-20
|
PDP
|
0
|
517
|
1,135
|
773
|
|||||||||||||||
E E HOUSE #1-12
|
PDP
|
0
|
5,036
|
12,896
|
10,535
|
|||||||||||||||
E E HOUSE #10-12
|
PDP
|
0
|
0
|
0
|
0
|
|||||||||||||||
JESSIE #1-24
|
PDP
|
0
|
0
|
0
|
0
|
|||||||||||||||
JESSIE TOWNSITE #1-2
|
PDP
|
2,408
|
0
|
157,254
|
99,830
|
|||||||||||||||
KOLB #1-15
|
PDP
|
0
|
0
|
0
|
0
|
|||||||||||||||
LEWIS #1-11
|
PDP
|
370
|
113,765
|
68,229
|
36,667
|
|||||||||||||||
LIVELY #1-6
|
PDP
|
0
|
574
|
2,616
|
2,004
|
|||||||||||||||
MCBRIDE #1-8
|
PDP
|
0
|
0
|
0
|
0
|
|||||||||||||||
MCCURTAIN #1-1
|
PDP
|
0
|
0
|
0
|
0
|
|||||||||||||||
MCDONALD LEASE
|
PDP
|
0
|
0
|
0
|
0
|
|||||||||||||||
BHP
|
6,265
|
16,615
|
423,788
|
284,297
|
||||||||||||||||
MCINTOSH #1-11
|
PDP
|
0
|
125
|
282
|
227
|
|||||||||||||||
MOONEY #1-29
|
PDP
|
951
|
0
|
31,694
|
21,252
|
|||||||||||||||
MOUNT GILCREASE #3-12
|
PDP
|
0
|
2,579
|
1,058
|
874
|
|||||||||||||||
MOUNT GILCREASE #8-6
|
PDP
|
0
|
0
|
0
|
0
|
|||||||||||||||
MOUNT GILCREASE #8-9
|
PDP
|
0
|
0
|
0
|
0
|
|||||||||||||||
MOUNT GILCREASE UNIT
|
PDP
|
14,228
|
0
|
978,992
|
580,699
|
|||||||||||||||
BHP
|
0
|
234,286
|
487,644
|
368,577
|
||||||||||||||||
BHP
|
84,099
|
0
|
5,649,672
|
2,494,587
|
||||||||||||||||
MUSE #1-33
|
PDP
|
921
|
0
|
51,894
|
31,000
|
|||||||||||||||
NAN LEASE
|
PDP
|
105
|
0
|
1,352
|
1,198
|
|||||||||||||||
NAN #1-30
|
BHP
|
0
|
22,310
|
29,293
|
22,584
|
|||||||||||||||
NAN #2-30
|
BHP
|
2,799
|
0
|
50,297
|
35,655
|
|||||||||||||||
NORTHEAST FITTS UNIT
|
PDP
|
136
|
0
|
4,873
|
3,505
|
|||||||||||||||
PARMENTER #2-4
|
PDP
|
9
|
728
|
819
|
693
|
|||||||||||||||
K 0 pAYNE #1-10
|
PDP
|
0
|
0
|
0
|
0
|
|||||||||||||||
PETTYJOHN B
|
PDP
|
0
|
0
|
0
|
0
|
|||||||||||||||
CE PETTYJOHN
|
PDP
|
31
|
858
|
1,167
|
1,065
|
|||||||||||||||
GLADYS PETTYJOHN
|
PDP
|
0
|
0
|
0
|
0
|
|||||||||||||||
POLLARD #2-31
|
PDP
|
0
|
0
|
0
|
0
|
|||||||||||||||
POWELL D #1-22
|
PDP
|
0
|
3,969
|
7,666
|
5,310
|
|||||||||||||||
PROVENCE #1-2
|
PDP
|
100
|
0
|
1,036
|
958
|
|||||||||||||||
PROVENCE A LEASE
|
PDP
|
0
|
0
|
0
|
0
|
|||||||||||||||
BHP
|
12,368
|
0
|
725,691
|
409,580
|
||||||||||||||||
ROSSER #1-31
|
PDP
|
4
|
817
|
873
|
656
|
|||||||||||||||
ROZIE #1-31
|
PDP
|
4
|
292
|
834
|
603
|
|||||||||||||||
ROZIE #2-31
|
PDP
|
4
|
671
|
2,677
|
1,714
|
|||||||||||||||
SANDY A #1-8
|
PDP
|
0
|
0
|
0
|
0
|
|||||||||||||||
SHAW #1-11
|
PDP
|
0
|
0
|
0
|
0
|
|||||||||||||||
R W SIMPSON #1-12
|
PDP
|
0
|
0
|
0
|
0
|
|||||||||||||||
TEX #1-14
|
PDP
|
0
|
1,619
|
1,986
|
1,459
|
|||||||||||||||
THOMAS #1-20
|
PDP
|
10,622
|
0
|
742,767
|
449,212
|
|||||||||||||||
GEORGE THOMPSON #1-1
|
PDP
|
581
|
0
|
24,743
|
18,005
|
|||||||||||||||
PHARR THOMPSON #1-2
|
PDP
|
0
|
0
|
0
|
0
|
|||||||||||||||
THOMPSON HEIRS #4 & 5-1
|
PDP
|
3,567
|
0
|
191,045
|
102,473
|
|||||||||||||||
TROGDEN #1-15
|
PDP
|
0
|
146
|
155
|
130
|
|||||||||||||||
VIRGINIA #1-31
|
PDP
|
1
|
257
|
526
|
390
|
|||||||||||||||
PROVED DEVELOPED PRODUCING
|
54,881
|
144,332
|
3,581,697
|
2,199,021
|
||||||||||||||||
BEHIND-PIPE
|
112,895
|
334,450
|
8,015,425
|
4,012,421
|
||||||||||||||||
SUMMARY
|
167,776
|
478,782
|
11,597,122
|
6,211,442
|
SEC Price Guideline Case
|
Proved
Developed
Producing
|
Proved
Behind
Pipe
|
Proved
Undeveloped
|
Total Proved
|
||||||||||||
Estimated Future Net Oil, MBbl
|
235.88
|
8.64
|
244.52
|
|||||||||||||
Estimated Future Net NGL, Mgal
|
1,185.21
|
1,185.21
|
||||||||||||||
Estimated Future Net Gas, MMcf
|
520.9
|
119.31
|
640.2
|
|||||||||||||
Total Future Gross Revenue, M$
|
25,109.31
|
1,442.65
|
26,551.96
|
|||||||||||||
Severance Taxes, M$
|
1,704.14
|
87.14
|
1,791.29
|
|||||||||||||
Ad Valorem Taxes, M$
|
1,503.35
|
43.94
|
1,547.29
|
|||||||||||||
Lease Operating Costs, M$
|
10623.57
|
882.79
|
11,506.35
|
|||||||||||||
Capital Expenditures, M$
|
45.00
|
45.00
|
||||||||||||||
Net Revenue (“FNR”), M$
|
11,278.25
|
383.79
|
11,662.04
|
|||||||||||||
Discounted FNR at 10%, M$
|
6,119.49
|
291.76
|
6,411.25
|
|||||||||||||
Discounted FNR at 15%, M$
|
5,037.51
|
257.19
|
5,294.70
|
FieldPoint Petroleum Corporation
|
March 3, 2015
|
|
|
|
David N. Dennard, P.E.
Reservoir Engineer
|
FieldPoint Petroleum Corporation
|
March 3, 2015
|
Date :
|
3/27/2015
|
|
Time :
|
9:44:48 AM
|
|
File :
|
Fieldpoint Reserves 2015-01.Phd
|
Re: | Evaluation of Oil and Gas Reserves to the interest of FieldPoint Petroleum Corporation Effective January 1, 2015 based on SEC Guidelines |
Classification of Reserves
|
Oil and
Condensate
(MBBL)
|
Gas
(MMCF)
|
Future Net
Revenue
(M$)
|
Present Value
Discounted at 10 %
(M$)
|
||||||||||||
Proved Developed:
|
||||||||||||||||
Producing
|
322
|
250
|
20,762
|
11,994
|
||||||||||||
Non-Producing
|
89
|
17
|
5,551
|
3,481
|
||||||||||||
Proved Developed
|
411
|
267
|
26,313
|
15,475
|
||||||||||||
Proved Undeveloped
|
114
|
218
|
6,240
|
2,852
|
||||||||||||
Total Proved
|
525
|
485
|
32,553
|
18,327
|
Net Liquid
(MBBL)
|
Net Gas
(MMCF)
|
|||||||
Total Proved Reserves Developed and Undeveloped:
|
||||||||
Beginning of Period January 1, 2014
|
470
|
269
|
||||||
Revisions of Previous Estimates
|
107
|
305
|
||||||
Beginning of Period as Revised
|
577
|
574
|
||||||
Additions from Drilling and Purchase
|
0
|
0
|
||||||
Extensions
|
0
|
0
|
||||||
Sales of Minerals-in-Place
|
0
|
0
|
||||||
Production
|
(52
|
)
|
(89
|
)
|
||||
End of Period January 1, 2015
|
525
|
485
|
||||||
Proved Developed Reserves:
|
||||||||
Beginning of Period January 1, 2014
|
276
|
182
|
||||||
End of Period January 1, 2015
|
411
|
267
|
Year
|
Proved Developed
Future Net Revenue $
|
Discounted at 10% $
|
|||||||
2015
|
|
3,818,661
|
3,635,398
|
||||||
2016
|
|
3,197,068
|
2,778,798
|
||||||
2017
|
|
2,480,607
|
1,958,699
|
||||||
Remaining
|
|
16,816,899
|
7,101,608
|
||||||
Total
|
|
26,313,235
|
15,474,503
|
Yours Very Truly,
|
|||
Joe C. Neal & Associates
|
|||
Licensed Professional Engineer
|
|||
Registration Number: 23238
|
|||
Registered Professional Engineering Firm
|
|||
Registration Number: F-001308
|
TABLE
|
Gross
|
Gross
|
Net
|
Net
|
Revenue
|
Oper
|
Sev
|
Ad Val
|
Net
|
Net
|
Net
|
|||||||||||||||||||||||||||||||||||
NUMBER |
Lease Name
|
OIL
|
GAS
|
OIL
|
GAS
|
to Int.
|
Expense
|
Tax
|
Tax
|
Investment
|
Income
|
Income
|
||||||||||||||||||||||||||||||||||
7
|
EAST LUSK 15 FEDERAL COM #01Y
|
103.129
|
205.101
|
37.416
|
74.413
|
3782.572
|
841.050
|
268.834
|
0.000
|
0.000
|
2672.688
|
1717.945
|
||||||||||||||||||||||||||||||||||
8
|
EAST LUSK 15 FEDERAL COM #02
|
68.953
|
97.982
|
25.017
|
35.549
|
2450.629
|
645.750
|
173.995
|
0.000
|
0.000
|
1630.884
|
1189.030
|
||||||||||||||||||||||||||||||||||
9
|
EAST LUSK 15 FEDERAL COM #03H
|
127.717
|
340.190
|
46.337
|
123.425
|
4857.144
|
919.800
|
345.590
|
0.000
|
0.000
|
3591.754
|
2265.163
|
||||||||||||||||||||||||||||||||||
10
|
JENNINGS FEDERAL #01
|
109.402
|
11.637
|
79.384
|
8.444
|
7106.861
|
1873.550
|
503.216
|
0.000
|
0.000
|
4730.093
|
2503.117
|
||||||||||||||||||||||||||||||||||
11
|
JENNINGS SWD
|
0.000
|
0.000
|
0.000
|
0.000
|
999.606
|
0.000
|
0.000
|
0.000
|
0.000
|
999.606
|
416.328
|
||||||||||||||||||||||||||||||||||
12
|
KORCZAK FEDERAL #01
|
107.930
|
72.804
|
11.872
|
8.008
|
1114.042
|
143.534
|
78.985
|
0.000
|
0.000
|
891.524
|
520.795
|
||||||||||||||||||||||||||||||||||
13
|
QUINOCO SULIMAR #01
|
58.643
|
0.000
|
50.140
|
0.000
|
4616.872
|
1113.600
|
326.875
|
0.000
|
0.000
|
3176.398
|
1441.431
|
||||||||||||||||||||||||||||||||||
6
|
TOTAL NM PROVED DEVELOPED PRODUCING
|
575.774
|
727.714
|
250.167
|
249.840
|
24927.726
|
5537.284
|
1697.494
|
0.000
|
0.000
|
17692.947
|
10053.809
|
||||||||||||||||||||||||||||||||||
15
|
ARROWHEAD
|
2.919
|
0.000
|
2.335
|
0.000
|
209.444
|
164.250
|
9.634
|
6.993
|
0.000
|
28.566
|
26.481
|
||||||||||||||||||||||||||||||||||
16
|
NORTH BLOCK 12 UNIT
|
80.718
|
0.000
|
69.141
|
0.000
|
6201.973
|
2669.161
|
285.291
|
207.084
|
0.000
|
3040.436
|
1913.333
|
||||||||||||||||||||||||||||||||||
17
|
STATE OF TEXAS -Z-
|
0.000
|
0.000
|
0.000
|
0.000
|
0.000
|
0.000
|
0.000
|
0.000
|
0.000
|
0.000
|
0.000
|
||||||||||||||||||||||||||||||||||
14
|
TOTAL TX PROVED DEVELOPED PRODUCING
|
83.636
|
0.000
|
71.476
|
0.000
|
6411.417
|
2833.411
|
294.925
|
214.077
|
0.000
|
3069.003
|
1939.814
|
||||||||||||||||||||||||||||||||||
3
|
TOTAL PROVED DEVELOPED PRODUCING
|
659.410
|
727.714
|
321.644
|
249.840
|
31339.142
|
8370.695
|
1992.420
|
214.077
|
0.000
|
20761.950
|
11993.622
|
||||||||||||||||||||||||||||||||||
19
|
PDNP KORCZAK FEDERAL #01
|
113.286
|
156.421
|
12.461
|
17.206
|
1217.933
|
47.314
|
86.467
|
0.000
|
5.169
|
1078.983
|
45.916
|
||||||||||||||||||||||||||||||||||
18
|
TOTAL NM PROVED DEVELOPED NON PRODUCING
|
113.286
|
156.421
|
12.461
|
17.206
|
1217.933
|
47.314
|
86.467
|
0.000
|
5.169
|
1078.983
|
45.916
|
||||||||||||||||||||||||||||||||||
21
|
PDNP ARROWHEAD #01
|
45.982
|
0.000
|
36.786
|
0.000
|
3314.745
|
896.500
|
152.478
|
110.679
|
50.000
|
2105.088
|
1594.373
|
||||||||||||||||||||||||||||||||||
22
|
PDNP N. BLK 12 #09 (D)
|
46.697
|
0.000
|
39.999
|
0.000
|
3587.942
|
926.087
|
165.045
|
119.801
|
9.790
|
2367.220
|
1840.593
|
||||||||||||||||||||||||||||||||||
20
|
TOTAL TX PROVED DEVELOPED NON PRODUCING
|
92.679
|
0.000
|
76.785
|
0.000
|
6902.687
|
1822.587
|
317.524
|
230.481
|
59.790
|
4472.308
|
3434.965
|
||||||||||||||||||||||||||||||||||
4
|
TOTAL PROVED DEVELOPED NON PRODUCING
|
205.965
|
156.421
|
89.246
|
17.206
|
8120.620
|
1869.901
|
403.991
|
230.481
|
64.958
|
5551.290
|
3480.881
|
||||||||||||||||||||||||||||||||||
24
|
PU E. LUSK 15 FED COM #04H
|
246.854
|
523.933
|
89.562
|
190.089
|
9120.279
|
1077.300
|
648.341
|
0.000
|
2818.025
|
4576.613
|
1998.394
|
||||||||||||||||||||||||||||||||||
25
|
PU KORCZAK FEDERAL #02
|
220.303
|
257.308
|
24.233
|
28.304
|
2339.990
|
169.775
|
166.062
|
0.000
|
340.800
|
1663.352
|
854.055
|
||||||||||||||||||||||||||||||||||
23
|
TOTAL NM PROVED UNDEVELOPED
|
467.157
|
781.241
|
113.795
|
218.393
|
11460.269
|
1247.075
|
814.403
|
0.000
|
3158.825
|
6239.964
|
2852.448
|
||||||||||||||||||||||||||||||||||
5
|
TOTAL PROVED UNDEVELOPED
|
467.157
|
781.241
|
113.795
|
218.393
|
11460.269
|
1247.075
|
814.403
|
0.000
|
3158.825
|
6239.964
|
2852.448
|
||||||||||||||||||||||||||||||||||
1
|
GRAND TOTAL ALL CATEGORIES
|
1332.532
|
1665.376
|
524.685
|
485.440
|
50920.031
|
11487.671
|
3210.813
|
444.558
|
3223.783
|
32553.204
|
18326.951
|
Re:
|
2014 Year-End SEC Reserve Evaluation
FieldPoint Petroleum Corporation
Lee & Bastrop Counties, Texas
|
Net Reserves
|
Net
|
Net
|
NPV
|
|||||||||||||||||||||
Number of
|
Oil
|
Gas
|
Capital
|
Cashflow
|
Disc @ 10%
|
|||||||||||||||||||
Reserve
Class
|
Cases
|
MBBL
|
MMCF
|
M$
|
M$
|
M$
|
||||||||||||||||||
PDP
|
5
|
114
|
97
|
$
|
0
|
$
|
5,753
|
$
|
3,753
|
|||||||||||||||
PUD
|
4
|
63
|
39
|
$
|
3,122
|
$
|
2,043
|
$
|
745
|
|||||||||||||||
Total Proved
|
9
|
178
|
136
|
$
|
3,122
|
$
|
7,796
|
$
|
4,498
|
Disclaimer: Pinnacle Energy Services, L.L.C. nor any of its subsidiaries, affiliates, officers, directors, shareholders, employees, consultants, advisors, agents, or representatives make any representation or warranty, express or impl ied , in connection with any of the information made available herein, i ncl uding, but not li mited to, the past, present or future value of the anticipated reserves, cash flows, income, costs, expense, liabil ities and profits, if any, to be derived from the properties described herein. All statem ents, estimates, projections and impl ications as to future operations are based upon bestjudgments of Pinnacle Energy Services; however, there is no assurance that such statements, estimates, projections or implications w ill prove to be accurate. Accordingly, any company, or other party receiving such information will rely solely upon its own independent examination and assessment of said information. Neither Pinnacle Energy Services nor any of its subsidiaries, affil iates, officers, directors, shareholders, employees, consultants, advisors, agents, or representatives shall have any liabil ity to any party recei ving the information herein, nor to any affil iate, partner, member, officer, director, shareholder, employee, consultant, advisor, agent or representative of such party from any use of such information. The property descri ption and other information attached hereto are for the sole, confidentia l use of the person to whom this copy has been made available. It may not be disseminated or reproduced in any matter whatsoever, whether in full or in part, without the prior written consent of Pinnacle Energy Services, L.L.C. This evaluation and all descriptions and other information attached hereto are for information purposes only and do not constitute an evaluation of or offer to sell or a sol icitation of an offer to buy any securities.
|
Net Reserves
|
Net Revenue
|
||||||||||||||||||||||||||||||||||||||||
Lease Name
|
Expense |
Cash Flow
|
|||||||||||||||||||||||||||||||||||||||
Reserve Category
|
Oil
(Mbbl) |
Gas
(MMcf) |
Oil
(M$) |
Gas
(M$) |
Other
(M$) |
& Tax
(M$) |
Invest.
(M$) |
Non-Disc.
(M$) |
Disc. CF
(M$) |
Life
(years) |
|||||||||||||||||||||||||||||||
Risked
/ UnRisked
|
|||||||||||||||||||||||||||||||||||||||||
Grand Total
|
|||||||||||||||||||||||||||||||||||||||||
Total
|
177.65
|
135.51
|
16,666.55
|
1,230.64
|
0.00
|
6,978.69
|
3,122.16
|
7,796.34
|
4,497.96
|
32.36
|
|||||||||||||||||||||||||||||||
Proved Producing Rsv Class & Category
|
|||||||||||||||||||||||||||||||||||||||||
Total
|
114.23
|
96.67
|
10,693.73
|
777.84
|
0.00
|
5,718.08
|
0.00
|
5,753.49
|
3,752.99
|
32.36
|
|||||||||||||||||||||||||||||||
All Vertical Wells (143)
|
P-DP
|
46.14
|
54.60
|
4,280.29
|
287.40
|
0.00
|
3,651.16
|
0.00
|
916.52
|
628.52
|
15.88
|
||||||||||||||||||||||||||||||
Ranger 08A #1H
|
P-DP
|
18.02
|
8.76
|
1,697.11
|
102.11
|
0.00
|
534.98
|
0.00
|
1,264.23
|
814.07
|
31.23
|
||||||||||||||||||||||||||||||
Ranger 08A#2H
|
P-DP
|
16.44
|
8.38
|
1,548.95
|
97.74
|
0.00
|
493.06
|
0.00
|
1,153.63
|
784.99
|
28.82
|
||||||||||||||||||||||||||||||
Ranger 08A#3H
|
P-DP
|
18.05
|
9.35
|
1,700.07
|
109.00
|
0.00
|
518.34
|
0.00
|
1,290.73
|
859.36
|
30.49
|
||||||||||||||||||||||||||||||
Ranger 11A #1H
|
P-DP
|
15.58
|
15.58
|
1,467.31
|
181.60
|
0.00
|
520.54
|
0.00
|
1,128.37
|
666.05
|
32.36
|
||||||||||||||||||||||||||||||
Proved Undeveloped Rsv Class & Category
|
|||||||||||||||||||||||||||||||||||||||||
Total
|
63.41
|
38.84
|
5,972.82
|
452.80
|
0.00
|
1,260.61
|
3,122.16
|
2,042.86
|
744.97
|
19.74
|
|||||||||||||||||||||||||||||||
Ranger 03A#1H 4000' Single
|
P-UD
|
16.35
|
16.01
|
1,540.01
|
186.61
|
0.00
|
327.31
|
627.06
|
772.24
|
362.42
|
19.74
|
||||||||||||||||||||||||||||||
Ranger 07A#1H 6000' Single
|
P-UD
|
19.31
|
9.38
|
1,819.04
|
109.29
|
0.00
|
377.88
|
927.46
|
623.00
|
204.76
|
19.15
|
||||||||||||||||||||||||||||||
Ranger 09A#1H 4000' Single
|
P-UD
|
13.87
|
6.73
|
1,306.89
|
78.45
|
0.00
|
277.71
|
783.82
|
323.81
|
88.90
|
14.33
|
||||||||||||||||||||||||||||||
Ranger 10A#1H 4000' Single
|
P-UD
|
13.87
|
6.73
|
1,306.89
|
78.45
|
0.00
|
277.71
|
783.82
|
323.81
|
88.90
|
14.33
|
Submitted,
|
||
Fletcher Lewis Engineering, Inc
|
||
Oklahoma Registered Engineering
|
||
Firm CA-804
|
||
Oklahoma Registration ID # 11663
|
Fetcher Lewis, P.E.
|
||
President
|
||
Fletcher Lewis Engineering, Inc.
|
1. | That I am a principal with Fletcher Lewis Engineering, Inc. which firm prepared an Evaluation of Reserves, owned by Fieldpoint Petroleum Corporation This report was prepared as of January 1, 2015, at the request of Fieldpoint Petroleum Corporation . |
2. | That Fletcher Lewis Engineering, Inc. their officers and their employees have no direct or indirect interest, nor do they expect to receive any direct or indirect interest in the properties of or in any securities of Fieldpoint Petroleum Corporation . |
3. | That I attended The University of Nebraska and graduated with a Bachelor of Science Degree in Geology, University of Oregon with a Masters in Geology, and University of Oklahoma with a Masters in Petroleum Engineering; and that I am a Registered Professional Engineer in Oklahoma and have in excess of 40 years experience in geologic and engineering evaluations and operations of oil and gas fields. |
4. | That I am the person directly responsible for the preparation of this report, that the basic well and reservoir data employed in the preparation of the aforementioned report were provided by the Company, or were obtained from public sources and from the files of Fieldpoint Petroleum Corporation . |
5. | That a personal field inspection of the properties was not made; however, such an inspection was not considered necessary in view of the available information. |
Fletcher Lewis, P.E.
|
|||
Oklahoma ID #11663
|
Ref: | FieldPoint Petroleum Corporation |
1. | That I am President with PGH, which company did prepare the letter report addressed to FieldPoint dated March 3, 2015, and that I, as President, was responsible for the preparation of this report. |
2. | That I attended The University of Texas at Austin, and that I graduated with a Bachelor of Science degree in Petroleum Engineering in the year 1980; that I am a Registered Professional Engineer in the State of Texas; that I am a member of the International Society of Petroleum Engineers and the Society of Professional Well Log Anallysts; and that I have in excess of 30 years of experience in the oil and gas reservoir studies and reserves evaluations. |
Yours Very Truly,
|
||
Joe C. Neal & Associates
|
||
Licensed Professional Engineer
|
||
Registration Number: 23238
|
||
Registered Professional Engineering Firm
|
||
Registration Number: F-001308
|
1. | That I am the owner of JOE C. NEAL & ASSOCIATES, which company did prepare the letter report addressed to FieldPoint dated March 24, 2015, and that I, as owner, was responsible for the preparation of this report. |
2. | That I attended Oklahoma State University, and that I graduated with a Bachelor of Science degree in Mechanical Engineering in the year 1956; that I am a Registered Professional Engineer in the State of Texas; that I am a member of the International Society of Petroleum Engineers and that I have in excess of 50 years of experience in the oil and gas reservoir studies and reserves evaluations. |
Joe C. Neal & Associates
|
||
Licensed Professional Engineer
|
||
Registration Number: 23238
|
||
Registered Professional Engineering Firm
|
||
Registration Number: F-001308
|
1. | That I am a petroleum engineer employed by Pinnacle Energy Services, LLC, which company did prepare the reserve report addressed to FieldPoint Petroleum Corporation dated March 5, 2015, and that I was responsible for the preparation of this report. |
2. | That I attended The University of Kansas, and that I graduated with a Bachelor of Science degree in Petroleum Engineering in the year 1976; that I am a Registered Professional Engineer in the States of Oklahoma and Wyoming; that I am a member of the Society of Petroleum Engineers International; and that I have in excess of 30 years of experience in oil and gas reservoir studies and reserves evaluations. |
/s/ Richard J. Morrow (March 26, 2015)
|
||
Richard J. Morrow, P.E.
|
||
Petroleum Engineer
|
||
Pinnacle Energy Services, LLC
|
Very truly yours,
|
||
J.P. Dick, P.E.
|
||
PINNACLE ENERGY SERVICES, LLC
|
||
TBPE Firm License No. F6204
|