x |
QUARTERLY
REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
ACT OF
1934
|
o |
TRANSITION
REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF
1934
|
Nevada
|
98-0422451
|
(State
or other jurisdiction of incorporation or organization)
|
(I.R.S.
Employer Identification No.)
|
PART
I - FINANCIAL INFORMATION
|
|||
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Page
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Item
1.
|
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Financial
Statements
|
|
|
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Consolidated
Balance Sheets as of September 30, 2007 and March 31, 2007
|
1
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|
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Consolidated
Statements of Operations for the Three Months ended September 30,
2007 and
2006
|
2
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|
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Consolidated
Statements of Operations for the Six Months ended September 30, 2007
and
2006
|
3
|
|
|
|
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|
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Consolidated
Statement of Changes in Stockholders’ Equity for the Six Months ended
September 30, 2007
|
4
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|
|
|
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|
|
Consolidated
Statements of Cash Flows for the Six Months ended September 30, 2007
and
2006
|
5
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|
|
|
|
|
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Notes
to Consolidated Financial Statements
|
7
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|
|
|
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Item
2.
|
|
Management's
Discussion and Analysis of Financial Condition and Results of
Operations
|
13
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|
|
|
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Item
3.
|
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Quantitative
and Qualitative Disclosures About Market Risk
|
20
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Item
4.
|
|
Controls
and Procedures
|
20
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Item
1A.
|
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Risk
Factors
|
22
|
Item
2.
|
|
Unregistered
Sales of Equity Securities and Use of Proceeds
|
22
|
|
|
|
|
|
Exhibits
|
22
|
|
|
|
|
|
25
|
|
September
30,
2007
|
March
31,
2007
|
|||||
ASSETS
|
|
|
|||||
|
|
|
|||||
Current
assets:
|
|||||||
Cash
and cash equivalents
|
$
|
1,444,420
|
$
|
5,129,883
|
|||
Accounts
receivable
|
633,029
|
453,709
|
|||||
Prepaid
expenses
|
49,857
|
-
|
|||||
Total
current assets
|
2,127,306
|
5,583,592
|
|||||
|
|||||||
Oil
& gas properties, at cost (successful efforts method):
|
|||||||
Unproved
|
56,998,862
|
56,079,133
|
|||||
Proved
|
18,667,591
|
18,552,188
|
|||||
Less:
Accumulated depletion, depreciation, and amortization
|
(966,951
|
)
|
(347,821
|
)
|
|||
Net
oil & gas properties
|
74,699,502
|
74,283,500
|
|||||
|
|||||||
Other
assets, net of accumulated depreciation of $109,006 and $27,880,
respectively
|
2,144,502
|
1,610,939
|
|||||
Total
assets
|
$
|
78,971,310
|
$
|
81,478,031
|
|||
LIABILITIES
AND STOCKHOLDERS’ EQUITY
|
|||||||
|
|||||||
Current
liabilities:
|
|||||||
Accounts
payable and accrued liabilities
|
$
|
1,535,611
|
$
|
1,542,840
|
|||
Accrued
oil & gas property costs
|
291,867
|
250,000
|
|||||
Asset
retirement obligation
|
180,260
|
196,000
|
|||||
Liquidated
damages pursuant to registration rights arrangement
|
1,227,
626
|
2,705,531
|
|||||
Total
current liabilities
|
3,235,364
|
4,694,371
|
|||||
|
|||||||
Long-term
liabilities:
|
|||||||
Accrued
liabilities
|
306,160
|
-
|
|||||
Asset
retirement obligation
|
1,090,723
|
1,025,567
|
|||||
Total
long-term liabilities
|
1,396,883
|
1,025,567
|
|||||
Commitments
and contingencies
|
|||||||
|
|||||||
Stockholders’
equity:
|
|||||||
Common
stock, $0.00001 par value, 275,000,000 shares authorized,
111,608,158 and 102,041,432 shares issued and outstanding at
September 30, 2007 and March 31, 2007, respectively
|
1,117
|
1,021
|
|||||
Additional
paid-in capital
|
89,973,759
|
84,985,934
|
|||||
Accumulated
deficit
|
(15,635,813
|
)
|
(9,228,862
|
)
|
|||
Total
stockholders’ equity
|
74,339,063
|
75,758,093
|
|||||
|
|||||||
Total
liabilities and stockholders’ equity
|
$
|
78,971,310
|
$
|
81,478,031
|
|
Three
Months Ended
September
30,
|
||||||
|
2007
|
2006
|
|||||
|
|
|
|||||
Revenues:
|
|||||||
Oil
& gas sales
|
$
|
1,650,628
|
$
|
-
|
|||
|
|||||||
Operating
expenses:
|
|||||||
Production
taxes
|
201,182
|
-
|
|||||
Lease
operating expenses
|
712,195
|
-
|
|||||
Depreciation,
depletion, and amortization
|
368,724
|
-
|
|||||
Impairment
of unproved properties
|
-
|
395,785
|
|||||
Accretion
expense
|
31,618
|
-
|
|||||
Exploration
expense
|
89,670
|
-
|
|||||
General
and administrative expense
|
1,545,734
|
395,214
|
|||||
Total
operating expenses
|
2,949,123
|
790,999
|
|||||
|
|||||||
Loss
from operations
|
(1,298,495
|
)
|
(790,999
|
)
|
|||
|
|||||||
Other
income (expense):
|
|||||||
Liquidated
damages pursuant to registration rights arrangement
|
(1,268,283
|
)
|
-
|
||||
Interest
expense
|
(41,941
|
)
|
1,644
|
||||
Write-off
of deferred financing costs
|
(99,254
|
)
|
|||||
Interest
and other income
|
78,943
|
22,120
|
|||||
Total
other income (expense)
|
(1,330,535
|
)
|
23,764
|
||||
|
|||||||
Net
loss
|
$
|
(2,629,030
|
)
|
$
|
(767,235
|
)
|
|
|
|||||||
Basic
and fully diluted net loss per share
|
$
|
(0.02
|
)
|
$
|
(0.02
|
)
|
|
|
|||||||
Basic
and fully diluted weighted average shares outstanding
|
108,018,888
|
37,598,545
|
|
Six
Months Ended
September
30,
|
||||||
|
2007
|
2006
|
|||||
|
|
|
|||||
Revenues:
|
|||||||
Oil
& gas sales
|
$
|
2,981,107
|
$
|
-
|
|||
|
|||||||
Operating
expenses:
|
|||||||
Production
taxes
|
362,651
|
-
|
|||||
Lease
operating expenses
|
1,312,109
|
-
|
|||||
Depreciation,
depletion, and amortization
|
700,256
|
-
|
|||||
Impairment
of unproved properties
|
-
|
395,785
|
|||||
Accretion
expense
|
77,608
|
-
|
|||||
Exploration
expense
|
130,828
|
-
|
|||||
General
and administrative expense
|
4,130,160
|
966,282
|
|||||
Total
operating expenses
|
6,713,612
|
1,362,067
|
|||||
|
|||||||
Loss
from operations
|
(3,732,505
|
)
|
(1,362,067
|
)
|
|||
|
|||||||
Other
income (expense):
|
|||||||
Liquidated
damages pursuant to registration rights arrangement
|
(2,645,393
|
)
|
-
|
||||
Interest
expense
|
(113,180
|
)
|
(33,000
|
)
|
|||
Write-off
of deferred financing costs
|
(99,254
|
)
|
-
|
||||
Interest
and other income
|
183,381
|
23,485
|
|||||
Total
other income (expense)
|
(2,674,446
|
)
|
(9,515
|
)
|
|||
|
|||||||
Net
loss
|
$
|
(6,406,951
|
)
|
$
|
(1,371,582
|
)
|
|
|
|||||||
Basic
and fully diluted net loss per share
|
$
|
(0.06
|
)
|
$
|
(0.04
|
)
|
|
|
|||||||
Basic
and fully diluted weighted average shares outstanding
|
105,888,646
|
33,336,427
|
|
Shares
|
Amount
|
Additional
Paid- In Capital
|
Accumulated
Deficit
|
Total
Stockholders’
Equity
|
|||||||||||
|
|
|
|
|
|
|||||||||||
Balance,
April 1, 2007
|
102,041,432
|
$
|
1,021
|
$
|
84,985,934
|
$
|
(9,228,862
|
)
|
$
|
75,758,093
|
||||||
|
||||||||||||||||
Liquidated
damages and imputed interest pursuant to registration rights arrangement,
settled in shares
|
7,426,772
|
75
|
4,235,712
|
-
|
4,235,787
|
|||||||||||
Stock
issued upon exercise of stock options
|
1,250,000
|
12
|
-
|
-
|
12
|
|||||||||||
Restricted
stock awards
|
500,000
|
5
|
155,095
|
-
|
155,100
|
|||||||||||
Common
stock exchanged for services - non-employee directors
|
282,811
|
3
|
148,497
|
-
|
148,500
|
|||||||||||
Common
stock exchanged for services - non-employee
|
107,143
|
1
|
112,499
|
-
|
112,500
|
|||||||||||
Stock-based
compensation
|
-
|
-
|
570,034
|
-
|
570,034
|
|||||||||||
Offering
costs
|
-
|
-
|
(234,012
|
)
|
-
|
(234,012
|
)
|
|||||||||
Net
loss
|
-
|
-
|
-
|
(6,406,951
|
)
|
(6,406,951
|
)
|
|||||||||
|
||||||||||||||||
Balance,
September 30, 2007
|
111,608,158
|
$
|
1,117
|
$
|
89,973,759
|
$
|
(15,635,813
|
)
|
$
|
74,339,063
|
|
Six
Months Ended
September
30,
|
||||||
|
2007
|
2006
|
|||||
Cash
flows from operating activities:
|
|||||||
Net
loss
|
$
|
(6,406,951
|
)
|
$
|
(1,371,582
|
)
|
|
Adjustments
to reconcile net loss to cash used for operating
activities:
|
|||||||
Depreciation,
depletion, and amortization
|
700,256
|
1,800
|
|||||
Impairment
of unproved properties
|
-
|
395,785
|
|||||
Accretion
expense
|
77,608
|
-
|
|||||
Settlement
of asset retirement obligation
|
(46,665
|
)
|
-
|
||||
Liquidated
damages pursuant to registration rights arrangement
|
2,645,393
|
-
|
|||||
Imputed
interest expense
|
112,488
|
33,453
|
|||||
Stock-based
compensation expense
|
570,034
|
529,375
|
|||||
Restricted
stock compensation expense
|
155,095
|
-
|
|||||
Services
exchanged for common stock - non-employee directors
|
148,497
|
-
|
|||||
Services
exchanged for common stock - non-employee
|
112,499
|
-
|
|||||
Other
|
-
|
2,284
|
|||||
Changes
in operating assets and liabilities:
|
|||||||
Accounts
receivable
|
(179,320
|
)
|
-
|
||||
Prepaid
expenses
|
(49,857
|
)
|
|||||
Other
assets
|
6,416
|
-
|
|||||
Accounts
payable and accrued liabilities
|
298,930
|
86,290
|
|||||
Net
cash used for operating activities
|
(1,855,577
|
)
|
(322,595
|
)
|
|||
|
|||||||
Cash
flows from investing activities:
|
|||||||
Capital
expenditures for oil & gas properties
|
(1,466,291
|
)
|
(2,800,167
|
)
|
|||
Proceeds
from conveyance of unproved oil & gas properties
|
491,500
|
-
|
|||||
Increase
in other assets
|
(619,144
|
)
|
(37,709
|
)
|
|||
Net
cash used for investing activities
|
(1,593,935
|
)
|
(2,837,875
|
)
|
|||
Cash
flows from financing activities:
|
|||||||
Payment
of deferred financing costs
|
(1,951
|
)
|
-
|
||||
Proceeds
from issuance of convertible notes payable
|
-
|
150,000
|
|||||
Payments
of convertible notes payable
|
-
|
(150,000
|
)
|
||||
Proceeds
from notes payable converted to common stock
|
-
|
500,000
|
|||||
Proceeds
from sale of common stock and warrants
|
-
|
8,093,397
|
|||||
Proceeds
from issuance of common stock upon exercise of stock
options
|
12
|
-
|
|||||
Payment
of offering costs
|
(234,012
|
)
|
-
|
||||
Net
cash provided by (used for) financing activities
|
(235,951
|
)
|
8,593,397
|
||||
|
|||||||
Increase
(decrease) in cash and cash equivalents
|
(3,685,463
|
)
|
5,432,926
|
||||
Cash
and cash equivalents, beginning of period
|
5,129,883
|
46,081
|
|||||
Cash
and cash equivalents, end of period
|
$
|
1,444,420
|
$
|
5,479,007
|
|
Six
Months Ended
September
30,
|
||||||
|
2007
|
2006
|
|||||
Non-cash
investing and financing activities:
|
|
|
|||||
Payables
for purchase of oil & gas properties
|
$
|
41,867
|
$
|
603,537
|
|||
Asset
retirement asset and obligation
|
$
|
18,473
|
$
|
-
|
|||
Common
stock and warrants issued on payment of liquidated damages pursuant
to
registration rights arrangement
|
$
|
4,235,787
|
$
|
-
|
For
the Three Months Ended
September
30,
|
For
the Six Months Ended
September
30,
|
||||||||||||
|
2007
|
2006
|
2007
|
2006
|
|||||||||
|
|
|
|||||||||||
Net
loss
|
$
|
(2,629,030
|
)
|
$
|
(767,235
|
)
|
$
|
(6,406,951
|
)
|
$
|
(1,371,582
|
)
|
|
Basic
weighted-average common shares outstanding
|
108,018,888
|
37,598,545
|
105,888,646
|
33,336,427
|
|||||||||
Basic
and fully-diluted net loss per common share
|
$
|
(0.02
|
)
|
$
|
(0.02
|
)
|
$
|
(0.06
|
)
|
$
|
(0.04
|
)
|
Three
Months Ended
September
30, 2006
|
Six
Months Ended
September
30, 2006
|
||||||
Revenue
|
$
|
1,576,578
|
$
|
2,780,723
|
|||
Net
loss
|
(685,571
|
)
|
(1,196,390
|
)
|
|||
Net
loss per basic and fully-diluted share
|
(0.01
|
)
|
(0.02
|
)
|
Balance,
April 1, 2007
|
$
|
1,221,567
|
||
Liabilities
incurred
|
18,473
|
|||
Liabilities
settled
|
(46,665
|
)
|
||
Accretion
expense
|
77,608
|
|||
Balance,
September 30, 2007
|
$
|
1,270,983
|
||
|
||||
Current
|
$
|
180,260
|
||
Long-term
|
1,090,723
|
|||
|
$
|
1,270,983
|
Payment
Date
|
90%
of Volume Weighted Average Price for 10 Days
Preceding Payment
|
Shares
Issued
|
Closing
Price at
Payment
Date
|
Value
of
Shares
Issued
|
|||||||||
May
18, 2007
|
$
|
0.85
|
933,458
|
$
|
1.04
|
$
|
970,797
|
||||||
June
19, 2007
|
$
|
0.84
|
946,819
|
$
|
0.88
|
833,201
|
|||||||
July
19, 2007
|
$
|
0.60
|
1,321,799
|
$
|
0.66
|
872,387
|
|||||||
August
17, 2007
|
$
|
0.45
|
1,757,212
|
$
|
0.41
|
720,457
|
|||||||
September
17, 2007
|
$
|
0.32
|
2,467,484
|
$
|
0.34
|
838,945
|
|||||||
7,426,772
|
$
|
4,235,787
|
|||||||||||
October
17, 2007
|
$
|
0.55
|
1,443,712
|
$
|
0.57
|
$
|
822,916
|
||||||
October
31, 2007
|
$
|
0.43
|
861,085
|
$
|
0.47
|
404,710
|
|||||||
2,304,797
|
$
|
1,227,626
|
Balance,
April 1, 2007
|
$
|
2,705,531
|
||
Obligations
incurred
|
2,645,393
|
|||
Imputed
interest expense
|
112,489
|
|||
Common
stock issued in payment of obligations
|
(4,235,787
|
)
|
||
Balance,
September 30, 2007
|
$
|
1,227,626
|
||
|
·
|
Common
stock is designated for quotation on OTC Bulletin Board, the New
York
Stock Exchange, the NASDAQ Global Select Market, the NASDAQ Global
Market,
the NASDAQ Capital Market, or the American Stock
Exchange;
|
·
|
Common
stock has not been suspended from trading, other than for two days
due to
business announcements; and
|
·
|
Delisting
or suspension has not been threatened, or is not
pending.
|
·
|
Shares
of common stock have been delivered upon conversion of Notes and
Warrants
on a timely basis;
|
·
|
Shares
may be issued in full without violating the rules and regulations
of the
exchange or market upon which they are listed or
quoted;
|
·
|
Payments
have been made within five business days of when due pursuant to
the
Securities Purchase Agreement, the Convertible Notes, the Registration
Rights Agreement, the Transfer Agent Instructions, or the Warrants
(Transaction Documents);
|
·
|
There
has not been a change in control of the company, a merger of the
company
or an event of default as defined in the Notes;
and
|
There
is material compliance with the provisions, covenants, representations
or
warranties of all Transaction
Documents.
|
Volatility
|
76.00%
|
|
Expected
option term
|
Five
to 10 years
|
|
Risk-free
interest rate
|
4.63%
to 4.68%
|
|
Expected
dividend yield
|
0.00%
|
|
·
|
|
business
strategy;
water
availability and waterflood production targets
|
|
·
|
|
carbon
dioxide (CO
2
)
availability, deliverability, and tertiary production
targets;
|
·
|
construction
of a CO
2
pipeline
and surface facilities;
|
||
|
·
|
|
inventories,
projects, and programs;
|
|
·
|
|
other
anticipated capital expenditures and budgets;
|
|
·
|
|
future
cash flows and borrowings;
|
|
·
|
|
the
availability and terms of financing;
|
|
·
|
|
oil
reserves;
|
|
·
|
|
reservoir
response to CO
2
injection;
|
|
·
|
|
ability
to obtain permits and governmental approvals;
|
|
·
|
|
technology;
|
|
·
|
|
financial
strategy;
|
|
·
|
|
realized
oil prices;
|
|
·
|
|
production;
|
|
·
|
|
lease
operating expenses, general and administrative costs, and finding
and
development costs;
|
|
·
|
|
availability
and costs of drilling rigs and field services;
|
|
·
|
|
future
operating results; and
|
|
·
|
|
plans,
objectives, expectations, and intentions.
|
· |
To
utilize a portion of the funds raised in the October 2007 short term
financing to enhance production in two of our fields, to initiate
waterflood operations on one of our fields and to continue permitting
for
our
CO
2
pipeline
project;
|
· |
Borrow
additional funds on a long-term fixed rate basis to conduct 3-D seismic
surveys on our fields and to complete our waterflood plan on our
Big Muddy
Field;
|
· |
Continue
to seek long-term financing for our CO
2
pipeline and EOR development plan for all our
fields.
|
· |
Pursue
additional asset and project opportunities that are expected to be
accretive to stockholder value.
|
· |
Install
down-hole pumps in six wells in our Cole Creek South Field that are
currently flowing oil wells, at an estimated cost of approximately
$1.7
million;
|
· |
Drill
two wells in our Big Muddy Field as part of the waterflood plan and
evaluation to be conducted later in the year, at a cost of approximately
$2.1 million;
|
· |
Drill
one well in our South Glenrock B Field to access oil reserves that
are
currently classified as proved undeveloped, at a cost of approximately
$1
million;
|
· |
Continue
permit process for CO
2
pipeline project at a cost of approximately $0.5 million;
and
|
· |
Allocate
the remainder of the funds to working capital, general corporate
purposes,
and cash reserves.
|
· |
Conduct
up to 100 square miles of 3-D seismic surveys and processing to
better
determine injection pattern locations and alignment
of
the waterflood and CO
2
EOR
project, at a cost of approximately $3.5
million;
|
· |
Drill,
complete and equip 70 wells as water injectors or oil producers at
a cost
of approximately $46 million; and
|
· |
Acquire
and construct waterflood surface facilities, at a cost of approximately
$11.5 million.
|
· |
Construct
a pipeline to transport CO
2
from
the source to our Big Muddy Field at a cost of approximately $50
to $100
million;
|
· |
Acquire
and construct surface and compression facilities at our Big Muddy
Field to
compress, inject and recycle CO
2
at
a cost of approximately $20 to $30
million;
|
· |
Drill,
complete and equip 70-80 wells as CO
2
injectors or oil producers on our Big Muddy Field at a cost of
approximately $48 million.
|
|
Three
Months Ended
September
30,
|
||||||
|
2007
|
2006
|
|||||
|
|
|
|||||
Revenues:
|
|
|
|||||
Oil
production (in barrels)
|
23,622
|
-
|
|||||
Oil
price (per barrel)
|
$
|
69.88
|
$
|
-
|
|||
Oil
sales
|
1,650,628
|
-
|
|||||
|
|||||||
Operating
expenses:
|
|||||||
Production
taxes
|
201,182
|
-
|
|||||
Lease
operating expenses
|
712,195
|
-
|
|||||
Depreciation,
depletion, and amortization
|
368,724
|
-
|
|||||
Impairment
of unproved properties
|
-
|
395,785
|
|||||
Accretion
expense
|
31,618
|
-
|
|||||
Exploration
expense
|
89,670
|
-
|
|||||
General
and administrative expense
|
1,545,734
|
395,214
|
|||||
Total
operating expenses
|
2,949,123
|
790,999
|
|||||
|
|||||||
Loss
from operations
|
(1,298,495
|
)
|
(790,999
|
)
|
|||
|
|||||||
Other
income (expense):
|
|||||||
Liquidated
damages pursuant to registration rights arrangement
|
(1,268,283
|
)
|
-
|
||||
Interest
expense
|
(41,941
|
)
|
1,644
|
||||
Write-off
of deferred financing costs
|
(99,254
|
)
|
-
|
||||
Interest
and other income
|
78,943
|
22,120
|
|||||
Total
other income (expense)
|
(1,330,535
|
)
|
23,764
|
||||
|
|||||||
Net
loss
|
$
|
(2,629,030
|
)
|
$
|
(767,235
|
)
|
|
Six
Months Ended
September
30,
|
||||||
|
2007
|
2006
|
|||||
|
|
|
|||||
Revenues:
|
|
|
|||||
Oil
production (in barrels)
|
46,056
|
-
|
|||||
Oil
price (per barrel)
|
$
|
64.73
|
$
|
-
|
|||
Oil
sales
|
2,981,107
|
-
|
|||||
|
|||||||
Operating
expenses:
|
|||||||
Production
taxes
|
362,651
|
-
|
|||||
Lease
operating expenses
|
1,312,109
|
-
|
|||||
Depreciation,
depletion, and amortization
|
700,256
|
-
|
|||||
Impairment
of unproved properties
|
-
|
395,785
|
|||||
Accretion
expense
|
77,608
|
-
|
|||||
Exploration
expense
|
130,828
|
-
|
|||||
General
and administrative expense
|
4,130,160
|
966,282
|
|||||
Total
operating expenses
|
6,713,612
|
1,362,067
|
|||||
|
|||||||
Loss
from operations
|
(3,732,505
|
)
|
(1,362,067
|
)
|
|||
|
|||||||
Other
income (expense):
|
|||||||
Liquidated
damages pursuant to registration rights arrangement
|
(2,645,393
|
)
|
-
|
||||
Interest
expense
|
(113,180
|
)
|
(33,000
|
)
|
|||
Write-off
of deferred financing costs
|
(99,254
|
)
|
-
|
||||
Interest
and other income
|
183,381
|
23,485
|
|||||
Total
other income (expense)
|
(2,674,446
|
)
|
(9,515
|
)
|
|||
|
|||||||
Net
loss
|
$
|
(6,406,951
|
)
|
$
|
(1,371,582
|
)
|
1. |
The
appointment of a Chief Accounting Officer with significant experienced
in
financial reporting:
|
2. |
The
implementation of quarterly fraud assessments carried out by management
as
part of our financial closing process;
|
3. |
The
appointment of an independent, experienced accounting and business
advisory firm to review public filings for completeness and to consult
on
complex or emerging accounting issues;
|
4. |
The
appointment of an experienced consulting firm to assist in the development
of internal control process documentation and to conduct independent
testing of such controls and processes;
|
5. |
The
implementation of a new accounting software system, with significantly
enhanced segregation of duties and formal authority
processes.
|
1. |
The
appointment of four new independent
directors;
|
2. |
The
establishment of an Audit Committee;
|
3. |
The
establishment of a Compensation
Committee;
|
4. |
The
establishment of a Nominating and Corporate Governance
Committee;
|
5. |
The
adoption of an updated Code of Business Conduct and Ethics;
and
|
6. |
The
adoption of an Insider Trading Policy,
and:
|
7. |
The
appointment of a Chief Accounting
Officer.
|
Exhibit
|
Description
|
|
3.1
|
Amended
and Restated Articles of Incorporation
(17)
|
|
3.2
|
Articles
of Correction
(22)
|
|
3.3
|
Amended
and Restated Bylaws
(2)
|
|
4.1
|
Form
of Stock Certificate for Fully Paid, Non-Assessable Common Stock
of the
Company
(1)
|
|
4.2
|
Form
of Unit Purchase Agreement
(2)
|
|
4.3
|
Form
of Warrant Certificate
(2)
|
|
4.4
|
Form
of Registration Rights Agreement, dated December 21, 2006
(3)
|
Exhibit
|
Description
|
|
4.5
|
Form
of Warrant to Purchase Common Stock
(3)
|
|
10.1
|
Burke
Ranch Unit Purchase and Participation Agreement between Hot Springs
Resources Ltd. and PIN Petroleum Partners Ltd., dated February 6,
2006
(4)
|
|
10.2
|
Employment
Agreement between John Works and Rancher Energy Corp., dated June 1,
2006
(5)
|
|
10.3
|
Assignment
Agreement between PIN Petroleum Partners Ltd. and Rancher Energy
Corp.,
dated June 6, 2006
(5)
|
|
10.4
|
Loan
Agreement between Enerex Capital, Corp. and Rancher Energy Corp.,
dated
June 6, 2006
(5)
|
|
10.5
|
Letter
Agreement between NITEC LLC and Rancher Energy Corp., dated June 7,
2006
(5)
|
|
10.6
|
Loan
Agreement between Venture Capital First LLC and Rancher Energy Corp.,
dated June 9, 2006
(6)
|
|
10.7
|
Exploration
and Development Agreement between Big Snowy Resources, LP and Rancher
Energy Corp., dated June 15, 2006
(5)
|
|
10.8
|
Assignment
Agreement between PIN Petroleum Partners Ltd. and Rancher Energy
Corp.,
dated June 21, 2006
(5)
|
|
10.9
|
Purchase
and Sale Agreement between Wyoming Mineral Exploration, LLC and Rancher
Energy Corp., dated August 10, 2006
(4)
|
|
10.10
|
South
Glenrock and South Cole Creek Purchase and Sale Agreement by and
between
Nielson & Associates, Inc. and Rancher Energy Corp., dated
October 1, 2006
(7)
|
|
10.11
|
Rancher
Energy Corp. 2006 Stock Incentive Plan
(7)
|
|
10.12
|
Rancher
Energy Corp. 2006 Stock Incentive Plan Form of Option Agreement
(7)
|
|
10.13
|
Employment
Agreement by and between John Dobitz and Rancher Energy Corp., dated
October 2, 2006
(7)
|
|
10.14
|
Denver
Place Office Lease between Rancher Energy Corp. and Denver Place
Associates Limited Partnership, dated October 30, 2006
(8)
|
|
10.15
|
Employment
Agreement between Andrew Casazza and Rancher Energy Corp., dated
October 23, 2006
(9)
|
|
10.16
|
Finder’s
Fee Agreement between Falcon Capital and Rancher Energy Corp.
(10)
|
|
10.17
|
Amendment
to Purchase and Sale Agreement between Wyoming Mineral Exploration,
LLC
and Rancher Energy Corp.
(11)
|
|
10.18
|
Letter
Agreement between Certain Unit Holders and Rancher Energy Corp.,
dated
December 8, 2006
(2)
|
|
10.19
|
Letter
Agreement between Certain Option Holders and Rancher Energy Corp.,
dated
December 13,
2006
(2)
|
|
10.20
|
Product
Sale and Purchase Contract by and between Rancher Energy Corp. and
the
Anadarko Petroleum Corporation, dated December 15, 2006
(12)
|
|
10.21
|
Amendment
to Purchase and Sale Agreement between Nielson & Associates, Inc. and
Rancher Energy Corp.
(13)
|
|
10.22
|
Securities
Purchase Agreement by and among Rancher Energy Corp. and the Buyers
identified therein, dated December 21, 2006
(3)
|
|
10.23
|
Lock-Up
Agreement between Rancher Energy Corp. and Stockholders identified
therein, dated December 21, 2006
(3)
|
|
10.24
|
Voting
Agreement between Rancher Energy Corp. and Stockholders identified
therein, dated as of December 13, 2006
(3)
|
|
10.25
|
Form
of Convertible Note
(14)
|
|
10.26
|
Employment
Agreement between Daniel Foley and Rancher Energy Corp., dated
January 12, 2007
(15)
|
|
10.27
|
First
Amendment to Securities Purchase Agreement by and among Rancher Energy
Corp. and the Buyers identified therein, dated as of January 18, 2007
(16)
|
|
10.28
|
Rancher
Energy Corp. 2006 Stock Incentive Plan Form of Restricted Stock Agreement
(19)
|
|
10.29
|
First
Amendment to Employment Agreement by and between John Works and Rancher
Energy Corp., dated March 14, 2007
(18)
|
|
10.30
|
Employment
Agreement between Richard Kurtenbach and Rancher Energy Corp., dated
August 3, 2007
(20)
|
|
10.31
|
Term
Credit Agreement between Rancher Energy Corp. and GasRock Capital
LLC,
dated as of October 16, 2007
(22)
|
|
10.32
|
Term
Note made by Rancher Energy Corp. in favor of GasRock Capital LLC,
dated
October 16, 2007
(22)
|
|
10.33
|
Mortgage,
Security Agreement, Financing Statement and Assignment of Production
and
Revenues from Rancher Energy Corp. to GasRock Capital LLC, dated
as of
October 16, 2007
(22)
|
Exhibit
|
Description
|
|
10.34
|
Security
Agreement between Rancher Energy Corp. and GasRock Capital LLC, dated
as
of October 16, 2007
(22)
|
|
10.35
|
Conveyance
of Overriding Royalty Interest by Rancher Energy Corp. in favor of GasRock
Capital LLC, dated as of October 16, 2007
(22)
|
|
10.36
|
ISDA
Master Agreement between Rancher Energy Corp. and BP Corporation
North
America Inc., dated as of October 16, 2007
(22)
|
|
10.37
|
Restricted
Account and Securities Account Control Agreement by and among Rancher
Energy Corp., GasRock Capital LLC, and Wells Fargo Bank, National
Association, dated as of October 16, 2007
(22)
|
|
10.38
|
Intercreditor
Agreement by and among Rancher Energy Corp., GasRock Capital LLC,
and BP
Corporation North America Inc., dated as of October 16, 2007
(22)
|
|
31.1
|
Certification
Pursuant to Rule 13a-14(a)/15d-14(a) (Chief Executive Officer)
(21)
|
|
31.2
|
Certification
Pursuant to Rule 13a-14(a)/15d-14(a) (Chief Accounting
Officer)
(21)
|
|
32.1
|
Certification
pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section
906 of
the Sarbanes-Oxley Act of 2002
(21)
|
|
32.2
|
Certification
pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section
906 of
the Sarbanes-Oxley Act of 2002
(21)
|
(1) |
Incorporated
by reference from our Form SB-2 Registration Statement filed on
June 9, 2004 (File No.
333-116307).
|
(2) |
Incorporated
by reference from our Current Report on Form 8-K filed on
December 18, 2006 (File No.
000-51425).
|
(3) |
Incorporated
by reference from our Current Report on Form 8-K filed on
December 27, 2006 (File No.
000-51425).
|
(4) |
Incorporated
by reference from our Quarterly Report on Form 10-Q/A filed on
August 28, 2006 (File No.
000-51425).
|
(5) |
Incorporated
by reference from our Annual Report on Form 10-K filed on June 30,
2006 (File No. 000-51425).
|
(6) |
Incorporated
by reference from our Current Report on Form 8-K filed on June 21,
2006 (File No. 000-51425).
|
(7) |
Incorporated
by reference from our Current Report on Form 8-K filed on October 6,
2006 (File No. 000-51425).
|
(8) |
Incorporated
by reference from our Current Report on Form 8-K filed on November 9,
2006 (File No. 000-51425).
|
(9) |
Incorporated
by reference from our Current Report on Form 8-K filed on
November 14, 2006 (File No.
000-51425).
|
(10) |
Incorporated
by reference from our Current Report on Form 8-K/A filed on
November 14, 2006 (File No.
000-51425).
|
(11) |
Incorporated
by reference from our Current Report on Form 8-K filed on December 4,
2006 (File No. 000-51425).
|
(12) |
Incorporated
by reference from our Current Report on Form 8-K filed on
December 22, 2006 (File No.
000-51425).
|
(13) |
Incorporated
by reference from our Current Report on Form 8-K filed on
December 27, 2006 (File No.
000-51425).
|
(14) |
Incorporated
by reference from our Current Report on Form 8-K filed on January 8,
2007 (File No. 000-51425).
|
(15) |
Incorporated
by reference from our Current Report on Form 8-K filed on January 16,
2007 (File No. 000-51425).
|
(16) |
Incorporated
by reference from our Current Report on Form 8-K filed on January 25,
2007 (File No. 000-51425).
|
(17) |
Incorporated
by reference from our Current Report on Form 8-K filed on April 3,
2007 (File No. 000-51425).
|
(18) |
Incorporated
by reference from our Current Report on Form 8-K filed on March 20,
2007 (File No. 000-51425).
|
(19) |
Incorporated
by reference from our Annual Report on Form 10-K filed on June 29,
2007 (File No. 000-51425).
|
(20) |
Incorporated
by reference from our Current Report on Form 8-K filed on August
7, 2007
(File No. 000-51425
|
(21) |
Incorporated
by reference from our Current Report on Form 8-K filed on October
17, 2007
(File No. 000-51425).
|
(22) |
Filed
herewith.
|
RANCHER
ENERGY CORP.
(Registrant)
|
||
|
|
|
Dated:
November 8, 2007
|
By: |
/s/
John Works
|
John
Works
|
||
President,
Chief Executive Officer,
Chief
Financial
Officer, Secretary and Treasurer
(Principal
Executive Officer)
|
Dated:
November 8, 2007
|
By: |
/s/
Richard Kurtenbach
|
Chief
Accounting Officer
(Principal
Accounting Officer)
|
(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
|
(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:
|
November
8, 2007
|
|
|
|
|
Signature:
|
/s/
John Works
|
|
Title:
|
Chief
Executive Officer
|
(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
|
(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:
|
November
8, 2007
|
|
|
|
|
Signature:
|
/s/
John Works
John
Works
|
|
Title:
|
Chief
Financial Officer
|
|
|
|
(1)
|
The
Company’s Quarterly Report on Form 10-Q for the quarterly period ended
September 30, 2007, as filed with the Securities and Exchange Commission
on the date hereof (the Report) fully complies with the requirements
of
Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as
amended;
and
|
|
|
|
|
(2)
|
Information
contained in the Report fairly presents, in all material respects,
the
financial condition and results of operations of the Company as of
the
dates and for the periods expressed in the
Report.
|
/s/ John Works | |||
John
Works
Chief
Executive Officer
November
8, 2007
|
(1)
|
The
Company’s Quarterly Report on Form 10-Q for the quarterly period ended
September 30, 2007, as filed with the Securities and Exchange Commission
on the date hereof (the Report) fully complies with the requirements
of
Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as
amended;
and
|
|
|
|
|
(2)
|
Information
contained in the Report fairly presents, in all material respects,
the
financial condition and results of operations of the Company as of
the
dates and for the periods expressed in the
Report.
|
/s/ John Works | |||
John
Works
Chief
Financial Officer
November
8, 2007
|