EX-99.4 5 a12-15044_1ex99d4.htm EX-99.4

Exhibit 99.4

 

 

Monthly Operating Report

 

 

CASE NAME: Square One Energy, Inc.

ACCRUAL BASIS

 

CASE NUMBER: 12-31552-bjh-11

 

JUDGE:          Barbara J. Houser

 

UNITED STATES BANKRUPTCY COURT

 

NORTHERN AND EASTERN

DISTRICT OF

TEXAS

 

DIVISION 6

 

MONTHLY OPERATING REPORT

 

MONTH ENDING: May 31st, 2012

 

IN ACCORDANCE WITH TITLE 28, SECTION 1746, OF THE UNITED STATES CODE, I DECLARE UNDER PENALTY OF PERJURY THAT I HAVE EXAMINED THE FOLLOWING MONTHLY OPERATING REPORT (ACCRUAL BASIS-1 THROUGH ACCRUAL BASIS-7) AND THE ACCOMPANYING ATTACHMENTS AND, TO THE BEST OF MY KNOWLEDGE, THESE DOCUMENTS ARE TRUE, CORRECT AND COMPLETE. DECLARATION OF THE PREPARER (OTHER THAN RESPONSIBLE PARTY): IS BASED ON ALL INFORMATION OF WHICH PREPARER HAS ANY KNOWLEDGE.

 

RESPONSIBLE PARTY:

 

/s/ John H. Homier

 

CFO

ORIGINAL SIGNATURE OF RESPONSIBLE PARTY

 

TITLE

 

 

 

John H. Homier

 

6/20/2012

PRINTED NAME OF RESPONSIBLE PARTY

 

DATE

 

 

 

 

 

 

PREPARER:

 

 

 

 

 

/s/ Adrian Lamberti

 

Controller

ORIGINAL SIGNATURE OF PREPARER

 

TITLE

 

 

 

Adrian Lamberti

 

6/20/2012

PRINTED NAME OF PREPARER

 

DATE

 


 

 

Monthly Operating Report

 

 

CASE NAME: Square One Energy, Inc.

ACCRUAL BASIS-1

 

CASE NUMBER: 12-31552-bjh-11

 

COMPARATIVE BALANCE SHEET

 

 

 

 

 

SCHEDULE

 

MONTH

 

MONTH

 

MONTH

 

 

 

 

 

AMOUNT

 

March 2012

 

April 2012

 

May 2012

 

ASSETS

 

 

 

 

 

 

 

 

 

1.

 

UNRESTRICTED CASH

 

 

 

$

22,675

 

$

30,065

 

$

(1,425

)

2.

 

RESTRICTED CASH

 

 

 

 

 

 

 

 

 

3.

 

TOTAL CASH

 

$

0

 

$

22,675

 

$

30,065

 

$

(1,425

)

4.

 

ACCOUNTS RECEIVABLE (NET)

 

$

49,000

 

$

43,000

 

$

41,000

 

$

22,000

 

5.

 

INVENTORY (3)

 

$

50,100

 

$

18,905

 

$

22,148

 

$

20,580

 

6.

 

NOTES RECEIVABLE

 

 

 

 

 

 

 

 

 

7.

 

PREPAID EXPENSES

 

 

 

$

27,371

 

$

44,280

 

$

41,806

 

8.

 

OTHER (1) MOR-1c

 

$

520,000

 

$

270,000

 

$

270,000

 

$

270,000

 

9.

 

TOTAL CURRENT ASSETS

 

$

619,100

 

$

381,951

 

$

407,493

 

$

352,903

 

10.

 

PROPERTY, PLANT & EQUIPMENT

 

$

105,733

 

$

42,468,270

 

$

42,468,270

 

$

42,468,270

 

11.

 

LESS: ACCUMULATED DEPRECIATION / DEPLETION

 

 

 

$

42,514,068

 

$

42,546,425

 

$

42,575,653

 

12.

 

NET PROPERTY, PLANT & EQUIPMENT

 

$

105,733

 

$

(45,798

)

$

(78,155

)

$

(107,383

)

13.

 

DUE FROM INSIDERS

 

 

 

 

 

 

 

 

 

14.

 

OTHER ASSETS - NET OF AMORTIZATION (ATTACH LIST)

 

 

 

 

 

 

 

 

 

15.

 

OTHER (ATTACH LIST)

 

 

 

 

 

 

 

 

 

16.

 

TOTAL ASSETS

 

$

724,833

 

$

336,153

 

$

329,338

 

$

245,578

 

 

 

 

 

 

 

 

 

 

 

 

 

POSTPETITION LIABILITIES

 

 

 

 

 

 

 

 

 

17.

 

ACCOUNTS PAYABLE

 

 

 

$

7,973

 

$

46,269

 

$

49,212

 

18.

 

TAXES PAYABLE (3)

 

 

 

$

2,295

 

$

4,976

 

$

6,162

 

19.

 

NOTES PAYABLE

 

 

 

 

 

 

 

 

 

20.

 

PROFESSIONAL FEES

 

 

 

 

 

 

 

 

 

21.

 

SECURED DEBT

 

 

 

 

 

 

 

 

 

22.

 

OTHER MOR-1D

 

 

 

$

(7,919

)

$

12,055

 

$

1,057

 

23.

 

TOTAL POSTPETITION LIABILITIES

 

 

 

$

2,349

 

$

63,300

 

$

56,431

 

PREPETITION LIABILITIES

 

 

 

 

 

 

 

 

 

24.

 

SECURED DEBT (2)

 

$

80,995,000

 

 

 

 

 

 

 

25.

 

PRIORITY DEBT (4)

 

$

43,188

 

$

43,188

 

$

41,000

 

$

40,068

 

26.

 

UNSECURED DEBT

 

$

145,835

 

$

145,838

 

$

145,838

 

$

145,838

 

27.

 

OTHER (MOR-1 A and MOR-1 B)

 

 

 

$

45,033,338

 

$

45,033,338

 

$

45,033,338

 

28.

 

TOTAL PREPETITION LIABILITIES

 

$

81,184,022

 

$

45,222,364

 

$

45,220,176

 

$

45,220,176

 

29.

 

TOTAL LIABILITIES

 

$

81,184,022

 

$

45,224,713

 

$

45,283,476

 

$

45,276,575

 

EQUITY

 

 

 

 

 

 

 

 

 

30.

 

PREPETITION OWNERS’ EQUITY

 

 

 

$

(44,895,341

)

$

(44,895,341

)

$

(44,895,341

)

31.

 

POSTPETITION CUMULATIVE PROFIT OR (LOSS)

 

 

 

$

6,782

 

$

(58,796

)

$

(134,757

)

32.

 

DIRECT CHARGES TO EQUITY (ATTACH EXPLANATION)

 

 

 

 

 

 

 

 

 

33.

 

TOTAL EQUITY

 

$

(80,459,189

)

$

(44,888,559

)

$

(44,954,137

)

$

(45,030,098

)

34.

 

TOTAL LIABILITIES & OWNERS’ EQUITY

 

$

724,833

 

$

336,153

 

$

329,338

 

$

245,578

 

 

(1) Includes consolidated retainer of $250,000 for Cano Petroleum, Inc. and its related debtor entities

(2) For balance sheet purposes, the secured debt for Cano Petroleum, Inc. and its subsidiaries is carried in total by Cano Petroleum, Inc.

(3) Estimated

(4) Severance taxes of $2,187.86 paid in April 2012 for December 2011 and January 2012 severance taxes and $931.61 paid in May 2012 for February 2012 severance taxes

 


 

 

Monthly Operating Report

 

 

CASE NAME: Square One Energy, Inc.

ACCRUAL BASIS-2

 

CASE NUMBER: 12-31552-bjh-11

 

INCOME STATEMENT

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

MONTH

 

MONTH

 

MONTH

 

MONTH

 

 

 

 

 

March 2012

 

April 2012

 

May 2012

 

 

 

REVENUES

 

 

 

 

 

 

 

 

 

1.

 

GROSS REVENUES (1)

 

$

36,059

 

$

31,600

 

$

17,700

 

 

 

2.

 

LESS: RETURNS & DISCOUNTS

 

 

 

 

 

 

 

 

 

3.

 

NET REVENUE

 

$

36,059

 

$

31,600

 

$

17,700

 

$

0

 

COST OF GOODS SOLD

 

 

 

 

 

 

 

 

 

4.

 

MATERIAL

 

 

 

 

 

 

 

 

 

5.

 

DIRECT LABOR (LOE)

 

$

4,024

 

$

45,749

 

$

58,892

 

 

 

6.

 

DIRECT OVERHEAD

 

 

 

 

 

 

 

 

 

7.

 

TOTAL COST OF GOODS SOLD

 

$

4,024

 

$

45,749

 

$

58,892

 

$

0

 

8.

 

GROSS PROFIT

 

$

32,035

 

$

(14,149

)

$

(41,192

)

$

0

 

OPERATING EXPENSES

 

 

 

 

 

 

 

 

 

9.

 

OFFICER / INSIDER COMPENSATION

 

 

 

 

 

 

 

 

 

10.

 

SELLING & MARKETING

 

 

 

 

 

 

 

 

 

11.

 

GENERAL & ADMINISTRATIVE

 

 

 

$

14,100

 

$

1,105

 

 

 

12.

 

RENT & LEASE

 

 

 

 

 

 

 

 

 

13.

 

OTHER (3) (MOR-2a)

 

$

950

 

$

1,000

 

$

400

 

 

 

14.

 

TOTAL OPERATING EXPENSES

 

$

950

 

$

15,100

 

$

1505

 

$

0

 

15.

 

INCOME BEFORE NON-OPERATING INCOME & EXPENSE

 

$

31,085

 

$

(29,249

)

$

(42,697

)

$

0

 

OTHER INCOME & EXPENSES

 

 

 

 

 

 

 

 

 

16.

 

NON-OPERATING INCOME (ATT. LIST)

 

 

 

 

 

 

 

 

 

17.

 

NON-OPERATING EXPENSE (ATT. LIST)

 

 

 

 

 

 

 

 

 

18.

 

INTEREST EXPENSE

 

$

667

 

$

2,291

 

$

2,299

 

 

 

19.

 

DEPRECIATION / DEPLETION

 

$

21,967

 

$

32,357

 

$

29,228

 

 

 

20.

 

AMORTIZATION

 

 

 

 

 

 

 

 

 

21.

 

OTHER (2) (MOR-2b)

 

$

1,345

 

$

1,681

 

$

1,737

 

 

 

22.

 

NET OTHER INCOME & EXPENSES

 

$

23,979

 

$

36,329

 

$

33,264

 

$

0

 

REORGANIZATION EXPENSES

 

 

 

 

 

 

 

 

 

23.

 

PROFESSIONAL FEES

 

 

 

 

 

 

 

 

 

24.

 

U.S. TRUSTEE FEES

 

$

325

 

 

 

 

 

 

 

25.

 

OTHER (ATTACH LIST)

 

 

 

 

 

 

 

 

 

26.

 

TOTAL REORGANIZATION EXPENSES

 

$

325

 

$

0

 

$

0

 

$

0

 

27.

 

INCOME TAX

 

 

 

 

 

 

 

 

 

28.

 

NET PROFIT (LOSS)

 

$

6,782

 

$

(65,578

)

$

(75,961

)

$

0

 

 

(1) Net of royalties, estimated and/or paid..

(2) Estimated Property Taxes

(3) Estimated SeveranceTaxes

 


 

 

Monthly Operating Report

 

 

CASE NAME: Square One Energy, Inc.

ACCRUAL BASIS-3

 

CASE NUMBER: 12-31552-bjh-11

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

MONTH

 

MONTH

 

MONTH

 

QUARTER

 

 

 

 

 

3/8/12 to 3/31/12

 

April 2012

 

May 2012

 

TOTAL

 

CASH RECEIPTS AND DISBURSEMENTS

 

 

 

 

 

 

 

 

 

1.

 

CASH - BEGINNING OF MONTH

 

$

0

 

$

22,675

 

$

30,065

 

$

0

 

RECEIPTS FROM OPERATIONS

 

 

 

 

 

 

 

 

 

2.

 

CASH SALES

 

 

 

 

 

 

 

 

 

COLLECTION OF ACCOUNTS RECEIVABLE

 

 

 

 

 

 

 

 

 

3.

 

PREPETITION

 

$

45,662

 

 

 

 

 

$

45,662

 

4.

 

POSTPETITION

 

 

 

$

47,593

 

$

46,417

 

$

94,009

 

5.

 

TOTAL OPERATING RECEIPTS

 

$

45,662

 

$

47,593

 

$

46,417

 

$

139,671

 

NON-OPERATING RECEIPTS

 

 

 

 

 

 

 

 

 

6.

 

LOANS & ADVANCES (ATTACH LIST)

 

 

 

 

 

 

 

$

0

 

7.

 

SALE OF ASSETS

 

 

 

 

 

 

 

$

0

 

8.

 

OTHER (ATTACH LIST)

 

 

 

 

 

 

 

$

0

 

9.

 

TOTAL NON-OPERATING RECEIPTS

 

$

0

 

$

0

 

$

0

 

$

0

 

10.

 

TOTAL RECEIPTS

 

$

45,662

 

$

47,593

 

$

46,417

 

$

139,671

 

11.

 

TOTAL CASH AVAILABLE

 

$

45,662

 

$

70,267

 

$

76,482

 

$

139,671

 

OPERATING DISBURSEMENTS

 

 

 

 

 

 

 

 

 

12.

 

NET PAYROLL

 

$

3,305

 

$

7,701

 

$

7,580

 

$

18,585

 

13.

 

PAYROLL TAXES PAID

 

$

235

 

$

471

 

$

471

 

$

1,177

 

14.

 

SALES, USE & OTHER TAXES PAID

 

$

240

 

$

2,188

 

$

2,057

 

$

4,484

 

15.

 

SECURED / RENTAL / LEASES

 

 

 

 

 

 

 

$

0

 

16.

 

UTILITIES (2)

 

$

14

 

$

25,011

 

$

20,509

 

$

45,534

 

17.

 

INSURANCE

 

 

 

 

 

 

 

$

0

 

18.

 

INVENTORY PURCHASES

 

 

 

 

 

 

 

$

0

 

19.

 

VEHICLE EXPENSES

 

$

3,472

 

 

 

 

 

$

3,472

 

20.

 

TRAVEL

 

 

 

 

 

 

 

$

0

 

21.

 

ENTERTAINMENT

 

 

 

 

 

 

 

$

0

 

22.

 

REPAIRS & MAINTENANCE

 

$

1,384

 

 

 

 

 

$

1,384

 

23.

 

SUPPLIES

 

 

 

 

 

 

 

$

0

 

24.

 

ADVERTISING

 

 

 

 

 

 

 

$

0

 

25.

 

OTHER (3) (ATTACH LIST)MOR-3a

 

$

14,338

 

$

4,832

 

$

47,024

 

$

66,135

 

26.

 

TOTAL OPERATING DISBURSEMENTS

 

$

22,987

 

$

40,202

 

$

77,640

 

$

140,771

 

REORGANIZATION EXPENSES

 

 

 

 

 

 

 

 

 

27.

 

PROFESSIONAL FEES

 

 

 

 

 

 

 

$

0

 

28.

 

U.S. TRUSTEE FEES

 

 

 

 

 

$

325

 

$

325

 

29.

 

OTHER (ATTACH LIST)

 

 

 

 

 

 

 

$

0

 

30.

 

TOTAL REORGANIZATION EXPENSES

 

$

0

 

$

0

 

$

325

 

$

325

 

31.

 

TOTAL DISBURSEMENTS

 

$

22,987

 

$

40,202

 

$

77,965

 

$

141,154

 

32.

 

NET CASH FLOW

 

$

22,675

 

$

7,391

 

$

(31,548

)

$

(1,425

)

33.

 

CASH - END OF MONTH (1)

 

$

22,675

 

$

30,065

 

$

(1,483

)

$

(1,425

)

 

(1) Exclusive of cash sweep from zero balance accounts to concentration account at Cano Petroleum, Inc.

(2) Includes Utility Deposits paid of $14,422

(3) Including royalties, estimated and/ or paid.

 


 

 

Monthly Operating Report

 

 

CASE NAME: Square One Energy, Inc.

ACCRUAL BASIS-4

 

CASE NUMBER: 12-31552-bjh-11

 

 

 

 

 

SCHEDULE

 

MONTH

 

MONTH

 

MONTH

 

ACCOUNTS RECEIVABLE AGING

 

AMOUNT

 

03/31/12

 

April 2012

 

May 2012

 

1.

 

0-30

 

$

49,000

 

$

43,000

 

$

41,000

 

$

22,000

 

2.

 

31-60

 

 

 

 

 

 

 

 

 

3.

 

61-90

 

 

 

 

 

 

 

 

 

4.

 

91+

 

 

 

 

 

 

 

 

 

5.

 

TOTAL ACCOUNTS RECEIVABLE

 

$

49,000

 

$

43,000

 

$

41,000

 

$

22,000

 

6.

 

AMOUNT CONSIDERED UNCOLLECTIBLE

 

 

 

 

 

 

 

 

 

7.

 

ACCOUNTS RECEIVABLE (NET)

 

$

49,000

 

$

43,000

 

$

41,000

 

$

22,000

 

 

AGING OF POSTPETITION TAXES AND PAYABLES (1)

MONTH:

May 2012

 

 

 

 

 

0-30

 

31-60

 

61-90

 

91+

 

 

 

TAXES PAYABLE

 

DAYS

 

DAYS

 

DAYS

 

DAYS

 

TOTAL

 

1.

 

FEDERAL

 

 

 

 

 

 

 

 

 

 

 

2.

 

STATE

 

 

 

 

 

 

 

 

 

 

 

3.

 

LOCAL

 

 

 

 

 

 

 

 

 

 

 

4.

 

OTHER (ATTACH LIST) MOR-4a

 

$

400

 

$

1,000

 

 

 

 

 

$

1,400

 

5.

 

TOTAL TAXES PAYABLE

 

$

400

 

$

1,000

 

$

0

 

$

0

 

$

1,400

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

6.

 

ACCOUNTS PAYABLE

 

$

49,212

 

 

 

 

 

 

 

$

49,212

 

 

STATUS OF POSTPETITION TAXES (1)

MONTH:

May 2012

 

 

 

 

 

BEGINNING

 

AMOUNT

 

 

 

ENDING

 

 

 

 

 

TAX

 

WITHHELD AND/

 

AMOUNT

 

TAX

 

 

 

 

 

LIABILITY*

 

0R ACCRUED

 

PAID

 

LIABILITY

 

FEDERAL

 

 

 

 

 

 

 

 

 

1.

 

WITHHOLDING**

 

 

 

 

 

 

 

 

 

2.

 

FICA-EMPLOYEE**

 

 

 

 

 

 

 

 

 

3.

 

FICA-EMPLOYER**

 

 

 

 

 

 

 

 

 

4.

 

UNEMPLOYMENT

 

 

 

 

 

 

 

 

 

5.

 

INCOME

 

 

 

 

 

 

 

 

 

6.

 

OTHER (ATTACH LIST)

 

 

 

 

 

 

 

 

 

7.

 

TOTAL FEDERAL TAXES

 

$

0

 

$

0

 

$

0

 

$

0

 

STATE AND LOCAL

 

 

 

 

 

 

 

 

 

8.

 

WITHHOLDING

 

 

 

 

 

 

 

 

 

9.

 

SALES

 

 

 

 

 

 

 

 

 

10.

 

EXCISE

 

 

 

 

 

 

 

 

 

11.

 

UNEMPLOYMENT

 

 

 

 

 

 

 

 

 

12.

 

REAL PROPERTY

 

$

3,026

 

$

1,737

 

 

 

$

4,762

 

13.

 

PERSONAL PROPERTY

 

 

 

 

 

 

 

 

 

14.

 

OTHER (ATTACH LIST) MOR-4a

 

$

2,100

 

$

1,357

 

$

1,125

 

$

1,400

 

15.

 

TOTAL STATE & LOCAL

 

$

5,126

 

$

3,094

 

$

1,125

 

$

6,162

 

16.

 

TOTAL TAXES

 

$

5,126

 

$

3,094

 

$

1,125

 

$

6,162

 

 

*                 The beginning tax liability should represent the liability from the prior month or, if this is the first operating report, the amount should be zero.

**   Attach photocopies of IRS Form 6123 or your FTD coupon and payment receipt to verify payment or deposit.

(1) Only taxes paid directly by Cano Petroleum, Inc. and its subsidiaries; taxes paid on their behalf by others (e.g. first purchasers and PEO — Resourcing Edge) are not shown

 


 

 

Monthly Operating Report

 

 

CASE NAME: Square One Energy, Inc.

ACCRUAL BASIS-5

 

 

CASE NUMBER: 12-31552-bjh-11

 

 

The debtor in possession must complete the reconciliation below for each bank account, including all general, payroll and tax accounts, as well as all savings and investment accounts, money market accounts, certificates of deposit, government obligations, etc. Accounts with restricted funds should be identified by placing an asterisk next to the account number. Attach additional sheets if necessary.

 

 

 

 

MONTH: May 2012

 

 

BANK RECONCILIATIONS

 

 

 

 

 

Account #1

 

Account #2

 

Account #3

 

 

 

A. BANK:

 

Bank of Texas N.A

 

 

 

 

 

 

 

B. ACCOUNT NUMBER:

 

31013023

 

 

 

 

 

 

 

C. PURPOSE (TYPE):

 

Checking

 

 

 

 

 

TOTAL

 

1.

BALANCE PER BANK STATEMENT

 

$

0

 

 

 

 

 

$

0

 

2.

ADD: TOTAL DEPOSITS NOT CREDITED

 

 

 

 

 

 

 

$

0

 

3.

SUBTRACT: OUTSTANDING CHECKS

 

$

15,728

 

 

 

 

 

$

15,728

 

4.

OTHER RECONCILING ITEMS

 

 

 

 

 

 

 

$

0

 

5.

MONTH END BALANCE PER BOOKS (1)

 

$

(15,728

)

$

0

 

$

0

 

$

(15,728

)

6.

NUMBER OF LAST CHECK WRITTEN

 

1004000830

 

 

 

 

 

 

 

 

INVESTMENT ACCOUNTS

 

 

 

DATE OF

 

TYPE OF

 

PURCHASE

 

CURRENT

 

BANK, ACCOUNT NAME & NUMBER

 

PURCHASE

 

INSTRUMENT

 

PRICE

 

VALUE

 

7.

 

 

 

 

 

 

 

 

 

 

8.

 

 

 

 

 

 

 

 

 

 

9.

 

 

 

 

 

 

 

 

 

 

10.

 

 

 

 

 

 

 

 

 

 

11.

TOTAL INVESTMENTS

 

 

 

 

 

$

0

 

$

0

 

 

CASH

 

 

 

 

 

 

 

 

 

 

12.

CURRENCY ON HAND

 

$

0

 

 

 

 

 

 

13.

TOTAL CASH — END OF MONTH

 

$

(15,728

)

 

(1) Includes effect of cash sweeps from zero balance accounts to concentration account at Cano Petroleum, Inc.

 


 

 

Monthly Operating Report

 

 

CASE NAME: Square One Energy, Inc.

ACCRUAL BASIS-6

 

 

CASE NUMBER: 12-31552-bjh-11

 

 

 

MONTH: May 2012

 

PAYMENTS TO INSIDERS AND PROFESSIONALS

 

OF THE TOTAL DISBURSEMENTS SHOWN FOR THE MONTH, LIST THE AMOUNT PAID TO INSIDERS (AS DEFINED IN SECTION 101 (31) (A)-(F) OF THE U.S. BANKRUPTCY CODE) AND TO PROFESSIONALS. ALSO, FOR PAYMENTS TO INSIDERS, IDENTIFY THE TYPE OF COMPENSATION PAID (e.g. SALARY, BONUS, COMMISSIONS, INSURANCE, HOUSING ALLOWANCE, TRAVEL, CAR ALLOWANCE, ETC.). ATTACH ADDITIONAL SHEETS IF NECESSARY.

 

INSIDERS

 

 

 

TYPE OF

 

AMOUNT

 

TOTAL PAID

 

NAME

 

PAYMENT

 

PAID

 

TO DATE

 

1.

 

 

 

 

 

 

 

2.

 

 

 

 

 

 

 

3.

 

 

 

 

 

 

 

4.

 

 

 

 

 

 

 

5.

 

 

 

 

 

 

 

6. TOTAL PAYMENTS TO INSIDERS

 

 

 

$

0

 

$

0

 

 

PROFESSIONALS

 

 

 

DATE OF COURT

 

 

 

 

 

 

 

TOTAL

 

 

 

ORDER AUTHORIZING

 

AMOUNT

 

AMOUNT

 

TOTAL PAID

 

INCURRED

 

NAME

 

PAYMENT

 

APPROVED

 

PAID

 

TO DATE

 

& UNPAID *

 

1.

 

 

 

 

 

 

 

 

 

 

 

2.

 

 

 

 

 

 

 

 

 

 

 

3.

 

 

 

 

 

 

 

 

 

 

 

4.

 

 

 

 

 

 

 

 

 

 

 

5.

 

 

 

 

 

 

 

 

 

 

 

6. TOTAL PAYMENTS TO PROFESSIONALS

 

$

0

 

$

0

 

$

0

 

$

0

 

 

* INCLUDE ALL FEES INCURRED, BOTH APPROVED AND UNAPPROVED

 

POSTPETITION STATUS OF SECURED NOTES, LEASES PAYABLE AND ADEQUATE PROTECTION PAYMENTS

 

 

 

SCHEDULED

 

AMOUNTS

 

 

 

 

 

MONTHLY

 

PAID

 

TOTAL

 

 

 

PAYMENTS

 

DURING

 

UNPAID

 

NAME OF CREDITOR

 

DUE

 

MONTH

 

POSTPETITION

 

1.

 

 

 

 

 

 

 

2.

 

 

 

 

 

 

 

3.

 

 

 

 

 

 

 

4.

 

 

 

 

 

 

 

5.

 

 

 

 

 

 

 

6. TOTAL

 

$

0

 

$

0

 

$

0

 

 


 

 

Monthly Operating Report

 

 

CASE NAME: Square One Energy, Inc.

ACCRUAL BASIS-7

 

 

CASE NUMBER: 12-31552-bjh-11

 

 

 

MONTH: May 2012

 

QUESTIONNAIRE

 

 

 

 

YES

 

NO

1.

HAVE ANY ASSETS BEEN SOLD OR TRANSFERRED OUTSIDE THE NORMAL COURSE OF BUSINESS THIS REPORTING PERIOD?

 

 

 

X

2.

HAVE ANY FUNDS BEEN DISBURSED FROM ANY ACCOUNT OTHER THAN A DEBTOR IN POSSESSION ACCOUNT?

 

 

 

X

3.

ARE ANY POSTPETITION RECEIVABLES (ACCOUNTS, NOTES, OR LOANS) DUE FROM RELATED PARTIES?

 

 

 

X

4.

HAVE ANY PAYMENTS BEEN MADE ON PREPETITION LIABILITIES THIS REPORTING PERIOD?

 

X

 

 

5.

HAVE ANY POSTPETITION LOANS BEEN RECEIVED BY THE DEBTOR FROM ANY PARTY?

 

 

 

X

6.

ARE ANY POSTPETITION PAYROLL TAXES PAST DUE?

 

 

 

X

7.

ARE ANY POSTPETITION STATE OR FEDERAL INCOME TAXES PAST DUE?

 

 

 

X

8.

ARE ANY POSTPETITION REAL ESTATE TAXES PAST DUE?

 

 

 

X

9.

ARE ANY OTHER POSTPETITION TAXES PAST DUE?

 

 

 

X

10.

ARE ANY AMOUNTS OWED TO POSTPETITION CREDITORS DELINQUENT?

 

 

 

X

11.

HAVE ANY PREPETITION TAXES BEEN PAID DURING THE REPORTING PERIOD?

 

X

 

 

12.

ARE ANY WAGE PAYMENTS PAST DUE?

 

 

 

X

 

IF THE ANSWER TO ANY OF THE ABOVE QUESTIONS IS “YES,” PROVIDE A DETAILED EXPLANATION OF EACH ITEM. ATTACH ADDITIONAL SHEETS IF NECESSARY.

A payment of $931.69 was paid to the Texas State Controller for February 2012 severance taxes due

 

INSURANCE

 

 

 

 

YES

 

NO

1.

ARE WORKER’S COMPENSATION, GENERAL LIABILITY AND OTHER NECESSARY INSURANCE COVERAGES IN EFFECT?

 

X

 

 

2.

ARE ALL PREMIUM PAYMENTS PAID CURRENT?

 

X

 

 

3.

PLEASE ITEMIZE POLICIES BELOW.

 

 

 

 

 

IF THE ANSWER TO ANY OF THE ABOVE QUESTIONS IS “NO,” OR IF ANY POLICIES HAVE BEEN CANCELLED OR NOT RENEWED DURING THIS REPORTING PERIOD, PROVIDE AN EXPLANATION BELOW. ATTACH ADDITIONAL SHEETS IF NECESSARY.

 

 

INSTALLMENT PAYMENTS

 

TYPE OF

 

 

 

 

 

PAYMENT AMOUNT

POLICY

 

CARRIER

 

PERIOD COVERED

 

& FREQUENCY

General Liability Insurance

 

ACE American Insurance

 

8/16/2011 to 8/16/2012

 

Fully paid at time of

Business Auto

 

ACE American Insurance

 

8/16/2011 to 8/16/2012

 

preparation

Umbrella

 

ACE Property & Casualty

 

8/16/2011 to 8/16/2012

 

 

Umbrella Extension

 

Gotham Insurance Company

 

8/16/2011 to 8/16/2012

 

 

Marine Insurance

 

AGCS Marine Insurance Co.

 

8/16/2011 to 8/16/2012

 

 

COW

 

Lloyds of London

 

8/16/2011 to 8/16/2012

 

 

 


 

MOR-1A

 

PREPETITION INTERCOMPANY

 

 

 

1160000000 Intercompany Receivable/Payable Account

 

$

(41,869,457

)

1160001001 Intercompany Receivable/Payable CC 1001

 

$

(1,750,599

)

1160001003 Intercompany Receivable/Payable CC 1003

 

$

(898

)

1160001005 Intercompany Receivable/Payable CC 1005

 

$

17,152

 

1160001010 Intercompany Receivable/Payable CC 1010

 

$

505

 

 

 

 

 

Total

 

$

(43,603,297

)

 


 

MOR-1 Exhibit B

 

PREPETITION

 

 

 

 

3800000000 Asset Retirement Obligation Short Term

 

$

(9,808

)

4800000000 Asset Retirement Obligation Long Term

 

$

(1,420,233

)

 

 

 

 

Total

 

$

(1,430,041

)

 


 

MOR-1C

 

Railroad Commission of Texas Blanket Bond

 

250,000

 

License and Performance Bond

 

20,000

 

Total

 

270,000

 

 


 

MOR-1D

 

March Adjustments to Inter Company

 

$

(7,919

)

 

 

 

 

April Adjustments to Inter Company

 

$

12,055

 

 

 

 

 

May Adjustments to Inter Company

 

$

1,024

 

 

 

 

 

Net Total

 

$

5,193

 

 


 

MOR-2a

 

March Severance Taxes

 

950

 

 

 

 

 

April Severance Taxes

 

1,000

 

 

 

 

 

May Severance Taxes (includes $957adj. on March taxes)

 

400

 

 

 

 

 

Total

 

2350

 

 


 

MOR-2b

 

March Property Taxes

 

1,345

 

 

 

 

 

April Property Taxes

 

1,681

 

 

 

 

 

May Property Taxes (includes $957adj. on March taxes)

 

1,737

 

 

 

 

 

Total

 

4,762

 

 


 

MOR-3a

 

Line 25 - Other Expenses

 

March 2012

 

Royalty Checks - Dec 2011 & Jan 2012 Sales

 

14,338

 

 

 

 

 

Lease Operating Expense LOE

 

14,338

 

 

April 2012

 

Royalty Checks - Feb 2012 Sales

 

4,832

 

 

 

 

 

Lease Operating Expense LOE

 

4,832

 

 

May 2012

 

LOE Payments General

 

40,025

 

 

 

 

 

March Sales Royalty Checks

 

6,941

 

 

 

 

 

Lease Operating Expense LOE

 

46,966

 

 


 

MOR 4a

 

April Estimated Severance taxes

 

1,000

 

May Estimated Severance taxes

 

400

 

Total Taxes Due

 

1,400