Q' and K's...
But it's impossible to figure out what whom and where...
Here's what you get...
During the first quarter, we converted some of this debt through issuances of stock. The conversion of 10,593,313 shares for relief of $62,500 of principal and interest resulted in a loss of $76,065.
Promissory Note Issued for Cash Deposit (principal of $ 150,000 and $150,000 as of June 30, 2013 and December 31, 2012, respectively, and accrued interest of $50,000 and $77,500 as of June 30, 2013 and December 31, 2012, respectively)
On January 30, 2012, we issued a promissory note in the amount of $100,000 in return for a cash advance. Payments are interest only at 5% per month for one year at which time the principal amount is due and payable. This note is collateralized with 10,000,000 common shares of the Company. In the event the Company defaults on the note these shares would be owed to the lender. The agreement requires that the Company provide additional collateral if the fair value of the shares decreases below $200,000 while the note is outstanding. As of June 30, 2013, the collateral exceeded $200,000. At December 31, 2012, in accordance with the terms of the contract we added $50,000 to the note as a penalty for delinquent payments. During the quarter ended June 30, 2013, no payments of principal or interest were made.
During the first quarter, we converted some of this debt through issuances of stock. The conversion of 12,598,360 shares valued at $144,228 for relief of $72,500 of principal and interest, resulted in a loss of $71,278.
Promissory Note Issued for Cash Deposit (principal of $744,577 and $746,071 as of June 30, 2013 and December 31, 2012, respectively, and a discount of $77,411 and $111,816 as of June 30, 2013 and December 31, 2012, respectively)
On August 12, 2012, we issued a promissory note in the amount of $750,000 in return for a cash advance. Payments are structured to be paid at a rate of 7% of royalties earned on three of the East Texas leases, plus one-half (1/2) of the net income derived from those wells until the note is paid in full. The note specifies that repayment must be completed within 24 months.
14
There is no stated interest rate on the note; however, the Company has assigned a 7% royalty interest to the lender that will continue after the note is paid in full. The Company has recognized the royalty interest as a discount on the note for $137,620 and is amortizing it over a 24 month period. Amortization of $ 34,900 and $23,983 was recognized for the six months ended June 30, 2013 and June 30, 2012, respectively. During the six months ended June 30, 2013, $1,494 of principal was repaid on this loan.
Promissory Note Issued for Purchase of property (principal of $-0- and $258,368 as of June 30, 2013 and December 31, 2012, respectively, and accrued interest of $-0- and $198 as of June 30, 2013and December 31, 2012, respectively)
On September 21, 2012, the Company purchased the Converse lease and issued a promissory note in the amount of $328,012. The note requires two (2) $20,000 payments in October, 2012, and $20,000 per month thereafter. Interest accrues at a rate of 7%. As of December 31, 2012, the Company was in default by $2,500 on the December payment. During the quarter ended March 31, 2013, the Company returned the property to the lender and was released from further obligations. The carrying value on the Converse lease was zero and the debt relief and ARO were $258,566 and $166,882 resulting in a gain of $425,448.
Promissory Note Issued for Cash Deposit (principal of $ 110,000 and $110,000 as of June 30, 2013 and December 31, 2012, respectively, and accrued interest of $6,618 and $1,009 as of June 30, 2013 and December 31, 2012, respectively)
On November 28, 2012 and December 31, 2012, we received $40,000 and $70,000 from the same lender. Interest accrues at the rate of 12% per annum. The terms of this note required payment by February 28, 2013, which the Company did not make. The note is considered to be in default.
Promissory Note Issued for Cash Deposit (principal of $ -0- and $37,120 as of June 30, 2013 and December 31, 2012, respectively, and accrued interest of $-0- and $-0- as of June 30, 2013 and2013and December 31, 2012, respectively)
On December 11, 2012, we issued a note for a cash advance of $20,000. The note bears an interest rate of 18%. Per the terms, payment was due on December 21, 2012, after which, in addition to interest on the outstanding amount, the Company is obligated to issue 100,000 shares per day until it is paid in full. As of December 31, 2012, we have accrued $100 in interest and $17,110 for the value of the stock that was due on that date. The stock was priced at the closing price of the stock on each day of accrual. During January, 2013, a cash payment of $12,500 was made on this note, and on February 19, 2013, $65,100 was converted to 4,650,000 shares valued at $72,700 resulted in a $7,600 loss. An additional gain of $45,914 was recognized for amounts forgiven by the holder with the extinguishment, resulting in a net gain with settlement of $38,314.
Promissory Note Issued for Cash Deposit (principal of $300,000 and $ -0- as of June 30, 2013 and December 31, 2012, respectively, and accrued interest of $12,362 and $-0- as of June 30, 2013 and December 31, 2012, respectively)
On March 28, 2013, we issued a note for a cash advance of $300,000. $275,000 of the related proceeds from this note was used to pay off the aforementioned note in default relating to the Great 8 leases. The remaining $25,000 was received in cash. The note is collateralized by the note receivable we have from the sale of the Great 8 leases. The balance of this note is due on 7/1/13 or when the leases are sold, whichever comes sooner. As noted above, the leases have been sold; however, payment from the buyer has not been received as of June 30, 2013.
Payable related to 5% NRI in Belize Well ($45,000 and $0 as of June 30, 2013 and December 31, 2012)
During the first quarter of 2013 the Company sold a 5% net revenue interest within the San Juan #3 well located within the Company’s Belize lease for $45,000. The well is currently being drilled and is unproved at the time of this filing. The agreement entails that the Company return the $45,000 to the investor within 60 days if the well is considered to be a dry hole. Based on the uncertainty of the well at this time the $45,000 was accrued within debt as of June 30, 2013.
15
Equipment Loan ($13,001 as of June 30, 2013 and December 31, 2012)
On May 1, 2012, we purchased wire-line truck for $73,101, and issued a promissory note for $67,101. The purchase was treated as a rent to own agreement and in lieu of interest, rental payments of $9,138 were paid in 2012. As of December 31, 2012 and June 30, 2013 this note was in default.
Borrowing from Princess Entertainment for Belize interest ($30,245 and $14,435 as of June 30, 2013 and December 31, 2012)
During 2012 and 2013, Princess Entertainment, our concession partner in Belize has advanced us operating funds. There is no stated interest rate or terms on these advances. Imputed interest for these advances was considered to be immaterial. The balance is held as a current liability and is considered to be due upon demand.
Promissory Note Issued for Cash Deposit (principal of $10,000 and $ -0- as of June 30, 2013 and December 31, 2012, respectively, and accrued interest of $2,500 and $-0- as of June 30, 2013 and December 31, 2012, respectively)
On April 8, 2013, we issued a note for a cash advance of $10,000. The terms called for interest of $2,500 and 2,000,000 shares of the Company’s common stock. At June 30, 2013, we accrued the $2,500 of stated interest and $17,000 of interest attributable to the valuation of the stock. Terms of the note required payment of principal, interest and issuance of stock within 15 days. We are currently in default on this note.
NOTE 8 – SHAREHOLDERS’ EQUITY
We are authorized to issue 1.25 Billion shares of our common stock. At December 31, 2012, we had 945,249,192 shares issued and outstanding. During the six months ended June 30, 2013, we issued 305,799,844 shares.
During the quarter ended March 31, 2013, the Company issued 108,034,016 shares to relieve stock payable valued at $1,112,243. No gain or loss was recorded for these issuances as the number of shares issued was consistent with the amounts owed.
During the quarter ended March 31, 2013, the Company issued 25,341,673 shares to extinguish notes and accrued interest payable of $187,600. The shares were valued at the closing stock price on the conversion agreement date equal to $330,493. A loss of $142,893 was recorded due to the value of the shares exceeding the amount converted.
During the quarter ended March 31, 2013, the Company issued 35,024,370 shares to extinguish related party notes and accrued interest payable of $374,500. The shares were valued at the closing stock price on the conversion agreement date equal to $464,571. Any gains on individual conversions were recorded to additional paid in capital rather than gain based on the related party relationship. As a result of the conversions, an additional $66,129 beyond the shares value was recorded to additional paid in capital and a loss of $156,200 was recorded.
During the quarter ended March 31, 2013, the Company issued 400,000 shares to extinguish accounts payable of $3,000. The shares were valued at the closing stock price on the conversion agreement date equal to $5,400. A loss of $2,400 was recorded due to the value of the shares exceeding the amount converted.
During the quarter ended March 31, 2013, the Company issued 113,310,345 shares for services. The shares were expensed for the value at the closing stock price on the grant date equal to $2,329,404.
During the quarter ended March 31, 2013, an additional 4% ORRI in a lease already held by the Company was repurchased. The 1,000,000 shares issued with the acquisition were valued at $38,000 based on the closing price of the stock on the acquisition date, but were immediately impaired and expensed based on the December 31, 2012 reserve report.
During the quarter ended June 30, 2013, the Company issued 12,949,440 shares to relieve stock payable valued at $112,688. No gain or loss was recorded for these issuances as the number of shares issued was consistent with the amounts owed, with 425,000 shares for services.
But it's impossible to figure out what whom and where...
Here's what you get...
During the first quarter, we converted some of this debt through issuances of stock. The conversion of 10,593,313 shares for relief of $62,500 of principal and interest resulted in a loss of $76,065.
Promissory Note Issued for Cash Deposit (principal of $ 150,000 and $150,000 as of June 30, 2013 and December 31, 2012, respectively, and accrued interest of $50,000 and $77,500 as of June 30, 2013 and December 31, 2012, respectively)
On January 30, 2012, we issued a promissory note in the amount of $100,000 in return for a cash advance. Payments are interest only at 5% per month for one year at which time the principal amount is due and payable. This note is collateralized with 10,000,000 common shares of the Company. In the event the Company defaults on the note these shares would be owed to the lender. The agreement requires that the Company provide additional collateral if the fair value of the shares decreases below $200,000 while the note is outstanding. As of June 30, 2013, the collateral exceeded $200,000. At December 31, 2012, in accordance with the terms of the contract we added $50,000 to the note as a penalty for delinquent payments. During the quarter ended June 30, 2013, no payments of principal or interest were made.
During the first quarter, we converted some of this debt through issuances of stock. The conversion of 12,598,360 shares valued at $144,228 for relief of $72,500 of principal and interest, resulted in a loss of $71,278.
Promissory Note Issued for Cash Deposit (principal of $744,577 and $746,071 as of June 30, 2013 and December 31, 2012, respectively, and a discount of $77,411 and $111,816 as of June 30, 2013 and December 31, 2012, respectively)
On August 12, 2012, we issued a promissory note in the amount of $750,000 in return for a cash advance. Payments are structured to be paid at a rate of 7% of royalties earned on three of the East Texas leases, plus one-half (1/2) of the net income derived from those wells until the note is paid in full. The note specifies that repayment must be completed within 24 months.
14
There is no stated interest rate on the note; however, the Company has assigned a 7% royalty interest to the lender that will continue after the note is paid in full. The Company has recognized the royalty interest as a discount on the note for $137,620 and is amortizing it over a 24 month period. Amortization of $ 34,900 and $23,983 was recognized for the six months ended June 30, 2013 and June 30, 2012, respectively. During the six months ended June 30, 2013, $1,494 of principal was repaid on this loan.
Promissory Note Issued for Purchase of property (principal of $-0- and $258,368 as of June 30, 2013 and December 31, 2012, respectively, and accrued interest of $-0- and $198 as of June 30, 2013and December 31, 2012, respectively)
On September 21, 2012, the Company purchased the Converse lease and issued a promissory note in the amount of $328,012. The note requires two (2) $20,000 payments in October, 2012, and $20,000 per month thereafter. Interest accrues at a rate of 7%. As of December 31, 2012, the Company was in default by $2,500 on the December payment. During the quarter ended March 31, 2013, the Company returned the property to the lender and was released from further obligations. The carrying value on the Converse lease was zero and the debt relief and ARO were $258,566 and $166,882 resulting in a gain of $425,448.
Promissory Note Issued for Cash Deposit (principal of $ 110,000 and $110,000 as of June 30, 2013 and December 31, 2012, respectively, and accrued interest of $6,618 and $1,009 as of June 30, 2013 and December 31, 2012, respectively)
On November 28, 2012 and December 31, 2012, we received $40,000 and $70,000 from the same lender. Interest accrues at the rate of 12% per annum. The terms of this note required payment by February 28, 2013, which the Company did not make. The note is considered to be in default.
Promissory Note Issued for Cash Deposit (principal of $ -0- and $37,120 as of June 30, 2013 and December 31, 2012, respectively, and accrued interest of $-0- and $-0- as of June 30, 2013 and2013and December 31, 2012, respectively)
On December 11, 2012, we issued a note for a cash advance of $20,000. The note bears an interest rate of 18%. Per the terms, payment was due on December 21, 2012, after which, in addition to interest on the outstanding amount, the Company is obligated to issue 100,000 shares per day until it is paid in full. As of December 31, 2012, we have accrued $100 in interest and $17,110 for the value of the stock that was due on that date. The stock was priced at the closing price of the stock on each day of accrual. During January, 2013, a cash payment of $12,500 was made on this note, and on February 19, 2013, $65,100 was converted to 4,650,000 shares valued at $72,700 resulted in a $7,600 loss. An additional gain of $45,914 was recognized for amounts forgiven by the holder with the extinguishment, resulting in a net gain with settlement of $38,314.
Promissory Note Issued for Cash Deposit (principal of $300,000 and $ -0- as of June 30, 2013 and December 31, 2012, respectively, and accrued interest of $12,362 and $-0- as of June 30, 2013 and December 31, 2012, respectively)
On March 28, 2013, we issued a note for a cash advance of $300,000. $275,000 of the related proceeds from this note was used to pay off the aforementioned note in default relating to the Great 8 leases. The remaining $25,000 was received in cash. The note is collateralized by the note receivable we have from the sale of the Great 8 leases. The balance of this note is due on 7/1/13 or when the leases are sold, whichever comes sooner. As noted above, the leases have been sold; however, payment from the buyer has not been received as of June 30, 2013.
Payable related to 5% NRI in Belize Well ($45,000 and $0 as of June 30, 2013 and December 31, 2012)
During the first quarter of 2013 the Company sold a 5% net revenue interest within the San Juan #3 well located within the Company’s Belize lease for $45,000. The well is currently being drilled and is unproved at the time of this filing. The agreement entails that the Company return the $45,000 to the investor within 60 days if the well is considered to be a dry hole. Based on the uncertainty of the well at this time the $45,000 was accrued within debt as of June 30, 2013.
15
Equipment Loan ($13,001 as of June 30, 2013 and December 31, 2012)
On May 1, 2012, we purchased wire-line truck for $73,101, and issued a promissory note for $67,101. The purchase was treated as a rent to own agreement and in lieu of interest, rental payments of $9,138 were paid in 2012. As of December 31, 2012 and June 30, 2013 this note was in default.
Borrowing from Princess Entertainment for Belize interest ($30,245 and $14,435 as of June 30, 2013 and December 31, 2012)
During 2012 and 2013, Princess Entertainment, our concession partner in Belize has advanced us operating funds. There is no stated interest rate or terms on these advances. Imputed interest for these advances was considered to be immaterial. The balance is held as a current liability and is considered to be due upon demand.
Promissory Note Issued for Cash Deposit (principal of $10,000 and $ -0- as of June 30, 2013 and December 31, 2012, respectively, and accrued interest of $2,500 and $-0- as of June 30, 2013 and December 31, 2012, respectively)
On April 8, 2013, we issued a note for a cash advance of $10,000. The terms called for interest of $2,500 and 2,000,000 shares of the Company’s common stock. At June 30, 2013, we accrued the $2,500 of stated interest and $17,000 of interest attributable to the valuation of the stock. Terms of the note required payment of principal, interest and issuance of stock within 15 days. We are currently in default on this note.
NOTE 8 – SHAREHOLDERS’ EQUITY
We are authorized to issue 1.25 Billion shares of our common stock. At December 31, 2012, we had 945,249,192 shares issued and outstanding. During the six months ended June 30, 2013, we issued 305,799,844 shares.
During the quarter ended March 31, 2013, the Company issued 108,034,016 shares to relieve stock payable valued at $1,112,243. No gain or loss was recorded for these issuances as the number of shares issued was consistent with the amounts owed.
During the quarter ended March 31, 2013, the Company issued 25,341,673 shares to extinguish notes and accrued interest payable of $187,600. The shares were valued at the closing stock price on the conversion agreement date equal to $330,493. A loss of $142,893 was recorded due to the value of the shares exceeding the amount converted.
During the quarter ended March 31, 2013, the Company issued 35,024,370 shares to extinguish related party notes and accrued interest payable of $374,500. The shares were valued at the closing stock price on the conversion agreement date equal to $464,571. Any gains on individual conversions were recorded to additional paid in capital rather than gain based on the related party relationship. As a result of the conversions, an additional $66,129 beyond the shares value was recorded to additional paid in capital and a loss of $156,200 was recorded.
During the quarter ended March 31, 2013, the Company issued 400,000 shares to extinguish accounts payable of $3,000. The shares were valued at the closing stock price on the conversion agreement date equal to $5,400. A loss of $2,400 was recorded due to the value of the shares exceeding the amount converted.
During the quarter ended March 31, 2013, the Company issued 113,310,345 shares for services. The shares were expensed for the value at the closing stock price on the grant date equal to $2,329,404.
During the quarter ended March 31, 2013, an additional 4% ORRI in a lease already held by the Company was repurchased. The 1,000,000 shares issued with the acquisition were valued at $38,000 based on the closing price of the stock on the acquisition date, but were immediately impaired and expensed based on the December 31, 2012 reserve report.
During the quarter ended June 30, 2013, the Company issued 12,949,440 shares to relieve stock payable valued at $112,688. No gain or loss was recorded for these issuances as the number of shares issued was consistent with the amounts owed, with 425,000 shares for services.
