EX-99.1 3 v441468_ex99-1.htm EXHIBIT 99.1

 

Exhibit 99.1

 

UNITED STATES BANKRUPTCY COURT

FOR THE DISTRICT OF DELAWARE

 

  )  
In re: ) Chapter 11
  )  
EMERALD OIL, INC., et al.,1 ) Case No. 16-10704
  )  
Debtors. ) (Jointly Administered)
  )  
     
EMERALD OIL, INC., ET AL., MONTHLY OPERATING REPORT FOR THE PERIOD ENDING MARCH 31, 2016
     
     
DEBTOR’S ADDRESS: 200 Columbine Street, Suite 500
  Denver, CO 80206
   
DEBTORS’ ATTORNEYS: Laura Davis Jones
  Colin R. Robinson
  Joseph M. Mulvihill
  Pachulski Stang Ziehl & Jones LLP
  919 North Market Street, 17th Floor
  P.O. Box 8705
  Wilmington, DE 19899-8705 (Courier 19801)
  Tel: (302) 652-4100
  Fax: (302) 652-4400
   
  ̵  and  ̵
   
  James H.M. Sprayregen, P.C. 
  Ryan Blaine Bennett (admitted pro hac vice)
  Travis M. Bayer (admitted pro hac vice)
  Kirkland & Ellis LLP
Kirkland & Ellis International LLP
  300 North LaSalle
  Chicago, IL 60654
  Tel: (312) 862-2000
  Fax: (312) 862-2200

 

 

1 The Debtors in these chapter 11 cases, along with the last four digits of each Debtor’s federal tax identification number, include: Emerald Oil, Inc. (9000); Emerald DB, LLC (2933); Emerald NWB, LLC (7528); Emerald WB LLC (8929); and EOX Marketing, LLC (4887). The location of the Debtors’ service address is: 200 Columbine Street, Suite 500, Denver, Colorado 80206.

 

 

 

 

REPORT PREPARER: Emerald Oil, Inc., et al.

 

GENERAL NOTES:

 

The Monthly Operating Report includes activity for the following Debtors:

 

Debtor   Case Number
Emerald Oil, Inc.   16-10704
Emerald DB, LLC   16-10705
Emerald NWB, LLC   16-10706
Emerald WB LLC   16-10707
EOX Marketing, LLC   16-10708

 

This Monthly Operating Report (“MOR”) has been prepared solely for the purpose of complying with the monthly reporting requirements applicable in these chapter 11 cases and is in a format acceptable to the United States Trustee. The financial information contained herein is limited in scope and covers a limited time period. Moreover, such information is preliminary and unaudited, and is not prepared in accordance with generally accepted accounting principles (“GAAP”) in the United States. In addition, the financial statements and supplemental information contained herein represent condensed combined information.

 

The unaudited consolidated financial statements have been derived from the books and records of the Debtors. This information, however, has not been subject to certain procedures that would typically be applied to financial information in accordance with GAAP, and upon application of such procedures the financial information could be subject to material change.

 

The financial information contained herein is presented on a preliminary and unaudited basis and remains subject to future adjustment.

 

The results of operations contained herein are not necessarily indicative of results which may be expected for any other period or for the full year and may not necessarily reflect the consolidated results of operations and financial position of the Debtors in the future.

 

[Remainder of Page Intentionally Left Blank]

 

 

 

 

The undersigned, having reviewed the attached report and being familiar with the Debtors’ financial affairs, verifies, under penalty of perjury, that the information contained herein is complete, accurate and truthful to the best of my knowledge.

 

DATE: May 30, 2016 /s/ Ryan Smith
  Ryan Smith
  Chief Financial Officer

 

 

 

 

UNITED STATES BANKRUPTCY COURT

DISTRICT OF DELAWARE

 

In re: EMERALD OIL, INC., et al., Case No. 16-10704
  Reporting Period: March 2016

 

MONTHLY OPERATING REPORT

File with Court and submit copy to United States Trustee within 20 days after end of month

 

Submit copy of report to any official committee appointed in the case.

 

        Document   Explanation   Affidavit/Supplement
REQUIRED DOCUMENTS   Form No.   Attached   Attached   Attached
Schedule of Cash Receipts and Disbursements   MOR-1   X        
Bank Reconciliation (or copies of debtor's bank reconciliations)   MOR-1a   X        
Schedule of Disbursements by Debtor Entity   MOR-1b   X        
Schedule of Professional Fees and Expenses Paid   MOR-1c   X        
Copies of bank statements   MOR-1d   X        
Cash disbursements journals   MOR-1e   X        
Statement of Operations   MOR-2   X        
Balance Sheet as of Petition Date   MOR-3a   X        
Balance Sheet as of Month End   MOR-3b   X        
Status of Postpetition Taxes   MOR-4a   X        
Copies of IRS Form 6123 or payment receipt           X    
Copies of tax returns filed during reporting period           X    
Summary of Unpaid Postpetition Debts   MOR-4b   X        
Listing of aged accounts payable   MOR-4b   X        
Accounts Receivable Reconciliation and Aging   MOR-5   X        
Debtor Questionnaire   MOR-5   X        

 

I declare under penalty of perjury (28 U.S.C. Section 1746) that this report and the attached documents are true and correct to the best of my knowledge and belief.

 

     
Signature of Debtor   Date
     
     
Signature of Joint Debtor   Date
     
     
/s/ Ryan Smith   5/30/2016
Signature of Authorized Individual*   Date
     
Ryan Smith   Chief Financial Officer
Printed Name of Authorized Individual   Title of Authorized Individual

 

*Authorized individual must be an officer, director or shareholder if debtor is a corporation; a partner if debtor is a partnership; a manager or member if debtor is a limited liability company.

 

MOR
(04/07)

 

 

 

 

In re: EMERALD OIL, INC., et al., Case No. 16-10704
Debtor Reporting Period: March 2016

 

MOR - 1

Schedule of Cash Receipts and Disbursements (1)

For the Period March 22, 2016 through March 31, 2016

(Unaudited)

 

   Total Debtors 
     
Beginning Cash  $3,535,835 
      
Receipts:     
Gross Receipts (2)   3,177,640 
Total Receipts   3,177,640 
      
Disbursements (3):     
      
Operating Expenses   178,486 
Royalties   1,004,056 
Payroll and Payroll Taxes   193,442 
Severance & Other Taxes   - 
Professional Fees   484,866 
Interest   497,701 
Total Disbursements   2,358,550 
      
Net Cash Flow   819,090 
      
Ending Cash Balance  $4,354,925 

 

Notes:

 

 

(1) This statement includes all entities controlled by the Debtors and therefore represents the consolidated financial results of Emerald Oil, Inc. Due to the consolidated cash management reporting system, certain cash payments may be paid out of a legal entity that is different than the legal entity where the expenses were incurred. Total disbursements by entity are provided in Schedule 1b.

 

(2) Gross Receipts include receipts of revenue from the production of oil, natural gas, and NGLs, including revenue receipts on properties in which we have joint ownership. The operating receipts are presented on a gross basis, which includes third party revenue that is subsequently disbursed by the Company to the working interest owners for their portion of the revenue.

 

(3) Disbursements are presented on a gross basis and include outstanding post-petition checks from operating accounts as of the reporting date.

 

 

 

 

In re: EMERALD OIL, INC., et al., Case No. 16-10704
Debtor Reporting Period: March 2016

 

MOR-1a

Debtors Statement with respect to Bank Account Reconciliations, Bank Statements and Cash Disbursements Journal

For the Period March 22, 2016 through March 31, 2016

(Unaudited)

 

Bank Account Reconciliations and Cash Disbursements

The Debtors affirm that bank reconciliations are prepared for all open and active bank accounts on a monthly basis. The Debtors affirm that within its financial accounting systems, check registers and/or disbursement journals are maintained for each disbursement account.

 

Bank Statements

The Debtors affirm that bank statements for all open and active bank accounts are retained by the Debtors. The Debtors affirm that no bank accounts were closed during the current reporting period.

 

   16-10704   16-10708   16-10704   16-10704   16-10704 
Debtor  Emerald Oil, Inc.   EOX Marketing, LLC   Emerald Oil, Inc.   Emerald Oil, Inc.   Emerald Oil, Inc. 
Type  Operating   Operating   Utility   Employee Medical Claims   Professional Fees (1) 
Account Number (last 4 digits only)   #0166   # 0112   # 4612   # 6810   #7214 
                          
Balance Per Books  $1,198,608   $3,100,307   $56,009   $-   $- 
                          
Bank Balance  $2,312,924   $3,100,307   $56,009   $-   $- 
(+) Deposits in transit (attach list)   -    -    -    -    - 
(-) Outstanding checks (attach list)   1,114,316    -    -    -    - 
Other (attach explanation)   -    -    -    -    - 
Adjusted Bank Balance*  $1,198,608   $3,100,307   $56,009   $-   $- 

* Adjusted bank balance must equal balance per books

 

FORM MOR-1a
(04/07)

 

 

 

 

Checks Outstanding  Ck. #   Amount 
   900353    19.37 
    1456    38.62 
    211067    246.13 
    211398    2,113.11 
    211569    851.72 
    211608    104.98 
    211809    104.71 
    112474    35.00 
    211896    219.15 
    211918    130.69 
    211971    171.94 
    212124    3,140.58 
    212180    148.98 
    212233    12,292.37 
    212306    110.14 
    212336    141.72 
    212427    71,602.77 
    212495    209.93 
    212535    120.83 
    212584    312.90 
    212594    491.66 
    212663    2,426.81 
    212756    9,999.46 
    212792    309.78 
    112733    30.00 
    212909    2,662.01 
    212933    186.37 
    212940    3,465.69 
    212945    125.85 
    212955    768.89 
    212964    276.42 
    212985    167.89 
    212992    235.60 
    212998    164.19 
    213002    205.93 
    213006    105.85 
    213026    6,197.54 
    213031    128.62 
    213039    570.55 
    213047    111.16 
    213057    6,151.12 
    213071    6,238.61 
    213084    348.14 
    213088    516.20 
    213092    362.96 
    213093    3,097.29 
    213106    791.90 
    213107    123.06 
    213123    241.97 
    213126    3,067.93 
    213139    104.85 
    213140    165.90 
    213153    1,723.08 
    213164    471.44 
    213168    671.57 
    213191    177.95 
    213195    147.34 
    213206    194.56 

 

FORM MOR-1a
(04/07)

 

 

 

 

Checks Outstanding  Ck. #   Amount 
   213224    109.63 
    213230    224.52 
    213251    5,367.24 
    213261    937.39 
    213267    910.38 
    213287    736.47 
    213307    177.24 
    213321    172.04 
    213330    110.34 
    213344    113.82 
    213345    113.82 
    213349    165.99 
    213353    664.82 
    112809    232.21 
    112813    74.00 
    5060    198.46 
    213359    140.56 
    213360    21,865.66 
    213361    1,102.24 
    213362    259.74 
    213363    6,576.37 
    213365    433.25 
    213366    283.72 
    213367    357.64 
    213368    2,625.89 
    213369    6,222.09 
    213370    291.76 
    213371    126.37 
    213372    351.30 
    213373    254,433.98 
    213374    233.04 
    213375    447.62 
    213376    336.11 
    213377    3,054.58 
    213378    1,034.22 
    213379    112.77 
    213380    110.04 
    213381    9,699.71 
    213382    3,902.59 
    213383    301.60 
    213384    888.71 
    213385    6,221.64 
    213386    1,938.81 
    213387    609.53 
    213388    9,632.57 
    213389    4,868.35 
    213390    222.82 
    213391    747.31 
    213392    747.31 
    213393    1,445.74 
    213394    472.28 
    213395    120.16 
    213396    240.48 
    213397    544.41 
    213398    45,285.20 
    213399    4,219.33 
    213400    5,063.18 
    213401    7,986.97 
    213402    3,180.07 
    213403    6,385.12 

 

FORM MOR-1a
(04/07)

 

 

 

 

Checks Outstanding  Ck. #   Amount 
   213404    94,333.82 
    213405    13,478.75 
    213406    1,346.60 
    213407    557.68 
    213408    542.10 
    213409    1,721.21 
    213410    130.64 
    213411    142.53 
    213412    101.22 
    213413    101.24 
    213414    102.53 
    213415    110.53 
    213416    10,452.10 
    213418    942.00 
    213419    131.39 
    213420    7,178.52 
    213421    2,081.61 
    213422    5,052.56 
    213423    4,846.48 
    213424    6,014.77 
    213425    1,385.14 
    213426    111.63 
    213427    1,976.81 
    213428    1,099.28 
    213429    154.43 
    213430    497.44 
    213431    9,886.12 
    213432    320.21 
    213433    2,781.79 
    213434    114.69 
    213435    206.43 
    213436    3,860.71 
    213437    181.26 
    213438    522.31 
    213439    183.19 
    213440    1,842.12 
    213441    1,068.10 
    213442    171.20 
    213443    402.40 
    213444    5,759.34 
    213445    1,063.67 
    213446    1,686.45 
    213447    1,304.67 
    213448    183.19 
    213449    744.29 
    213450    126.86 
    213451    176.98 
    213452    391.98 
    213453    175.30 
    213454    265.47 
    213455    1,014.97 
    213456    391.98 
    213457    6,478.92 
    213458    163.43 
    213459    6,721.76 
    213460    4,526.25 
    213461    1,094.06 
    213462    126.86 
    213463    320.21 
    213464    101.13 

 

FORM MOR-1a
(04/07)

 

 

 

 

Checks Outstanding  Ck. #   Amount 
   213465    232.36 
    213466    143.61 
    213467    171.20 
    213468    2,749.54 
    213469    128.93 
    213470    232.36 
    213471    122.50 
    213472    215.53 
    213473    3,910.23 
    213474    115.91 
    213475    102.75 
    213476    106.09 
    213477    130.80 
    213478    700.09 
    213479    204.51 
    213480    143.06 
    213481    105.22 
    213482    1,162.84 
    213483    147.84 
    213484    103.52 
    213485    320.21 
    213486    260.31 
    213487    348.36 
    213488    1,456.28 
    213489    1,442.04 
    213490    2,626.26 
    213491    227.58 
    213492    110.04 
    213493    110.03 
    213494    349.62 
    213495    5,226.08 
    213496    1,344.38 
    213497    1,344.38 
    213498    443.37 
    213499    320.26 
    213500    560.78 
    213501    394.44 
    213502    560.78 
    213503    394.44 
    213504    958.20 
    213505    40,746.64 
    213506    2,011.83 
    213507    1,262.74 
    213508    2,446.55 
    213509    2,510.33 
    213510    2,345.96 
    213511    1,385.14 
    213512    996.36 
    213513    984.83 
    213514    7,366.24 
    213515    3,279.98 
    213516    3,279.98 
    213517    3,279.98 
    213518    375.83 
    213519    2,353.75 
    213520    1,061.20 
    213521    864.04 
    213522    864.04 
    213523    583.02 
    213524    555.43 

 

FORM MOR-1a
(04/07)

 

 

 

 

Checks Outstanding  Ck. #   Amount 
   213525    555.43 
    213526    561.97 
    213527    555.43 
    213528    561.97 
    213529    555.43 
    213530    3,629.97 
    213531    1,210.02 
    213532    1,210.02 
    213533    1,255.33 
    213534    1,717.18 
    213535    1,035.51 
    213536    717.67 
    213537    964.94 
    213538    394.82 
    213539    233.42 
    213540    143.42 
    213541    277.61 
    213542    267.56 
    213543    333.12 
    213544    277.62 
    213545    333.12 
    213546    394.82 
    213547    466.87 
    213548    185.06 
    213549    156.46 
    213550    277.61 
    213551    2,368.91 
    213552    185.06 
    213553    394.82 
    213554    115.34 
    213555    185.06 
    213556    110.55 
    213557    185.06 
    213558    605.67 
    213559    394.82 
    213560    233.42 
    213561    1,184.46 
    213562    394.82 
    213563    110.71 
    213564    605.67 
    213565    394.82 
    213566    151.41 
    213567    185.06 
    213568    277.60 
    213569    3,519.70 
    213570    156.46 
    213571    185.06 
    213572    3,519.70 
    213573    625.87 
    213574    394.82 
    213575    185.06 
    213576    600.62 
    213577    145.76 
    213578    185.06 
    213579    107.66 
    213580    394.82 
    213581    2,346.50 
    213582    191.24 
    213583    2,961.13 
    213584    191.24 

 

FORM MOR-1a
(04/07)

 

 

 

 

Checks Outstanding  Ck. #   Amount 
   213585    185.06 
    213586    277.61 
    213587    185.06 
    213588    394.82 
    213589    151.41 
    213590    185.06 
    213591    2,346.49 
    213592    114.92 
    213593    356.20 
    213594    378.83 
    213595    142.04 
    213596    783.68 
    213597    757.62 
    213598    142.04 
    213599    245.66 
    213600    142.04 
    213601    712.38 
    213602    518.51 
    213603    6,965.14 
    213604    1,035.51 
    213605    8,157.92 
    213606    356.20 
    213607    378.83 
    213608    712.38 
    213609    712.38 
    213610    245.66 
    213611    142.04 
    213612    189.36 
    213613    378.82 
    213614    237.48 
    213615    378.83 
    213616    349.71 
    213617    1,232.25 
    213618    313.83 
    213619    507.62 
    213620    1,024.88 
    213621    115.88 
    213622    428.50 
    213623    115.88 
    213624    321.39 
    213625    428.50 
    213626    1,285.59 
    213627    1,285.59 
    213628    321.39 
    213629    321.39 
    213630    1,285.59 
    213631    1,083.04 
    213632    321.39 
    213634    147.67 
    213635    8,370.78 
    213636    118.42 
    213637    103.11 
    213638    712.38 
    213639    757.62 
    213640    1,927.53 
    213641    112.34 
    213642    213.11 
    213643    217.19 
    213644    1,597.97 
    213645    1,597.97 

 

FORM MOR-1a
(04/07)

 

 

 

 

Checks Outstanding  Ck. #   Amount 
   213646    1,065.27 
    213647    1,065.27 
    213648    1,065.27 
    213649    3,195.82 
    213650    108.97 
    213651    2,106.64 
    213652    642.24 
    213653    1,795.41 
    213654    1,795.41 
    213655    1,299.71 
    213656    291.76 
    213657    188.22 
    213658    1,299.71 
    213659    222.55 
    213660    215.37 
    213661    222.56 
    213662    136.19 
    213663    581.55 
    213664    555.23 
    213665    12,956.70 
    213666    178.03 
    213667    178.04 
    213668    178.03 
    213669    178.03 
    213670    1,240.22 
    213671    104.46 
    213672    1,265.46 
    213673    302.83 
    213674    302.84 
    213675    1,675.73 
    213676    1,618.39 
    213677    4,266.47 
    213678    146.93 
    213679    12,438.38 
    213680    4,787.35 
    213681    4,787.35 
    213682    3,180.27 
    213683    2,203.99 
    213684    133.39 
    213685    828.18 
    213686    326.46 
    213687    4,040.05 
    213688    133.13 
    213689    160.67 
    213690    1,444.93 
    213691    160.66 
    213692    182.15 
    213693    200.18 
    213694    6,721.76 
    213695    114.19 
    213696    1,502.11 
    213697    276.24 
    213698    150.66 
    213699    104.01 
    213700    283.72 
    213701    189.26 
    213702    2,679.85 
    213703    1,094.06 
    213704    483.37 
    213705    1,762.05 

 

FORM MOR-1a
(04/07)

 

 

 

 

Checks Outstanding  Ck. #   Amount 
   213706    137.63 
    213707    2,346.50 
    213708    256.77 
    213709    245.43 
    213710    157.13 
    213711    157.13 
    213712    157.13 
    213713    358.07 
    213714    245.43 
    213715    238.73 
    213716    238.73 
    213717    179.81 
    213718    705.27 
    213719    253.74 
    213720    253.74 
    213721    3,514.76 
    213722    704.53 
    213723    704.53 
    213724    704.53 
    213725    704.53 
    213726    7,701.96 
    213727    1,118.18 
    213728    204.30 
    213729    146.93 
    213730    115.99 
    213731    115.99 
    213732    115.99 
    213733    115.99 
    213734    115.99 
    213735    1,068.10 
    213736    185.50 
    213737    100.73 
    213738    356.20 
    213739    356.20 
    213740    291.76 
    213741    520.03 
    213742    267.90 
    213743    102.55 
    213744    102.55 
    213745    102.55 
    213746    102.55 
    213747    1,938.81 
    213748    1,675.73 
    213749    3,743.78 
    213750    443.46 
    213751    142.59 
    213752    142.56 
    213753    142.45 
    213754    177.28 
    213755    1,262.07 
    213756    581.52 
    213757    581.58 
    5063    300.00 
    5064    198.46 
         1,114,315.81 

 

Notes:

 

 

(1) The Professional Fees account was created on April 13, 2016 specifically for the purpose of payment management of professional fees related to the bankruptcy process. There is no activity for the reporting period.

 

FORM MOR-1a
(04/07)

 

 

 

 

UNITED STATES BANKRUPTCY COURT

FOR THE DISTRICT OF DELAWARE

 

In re: EMERALD OIL, INC., et al., Case No. 16-10704
Debtor Reporting Period: March 22 – 31, 2016

 

May 30, 2016

 

Office of the United States Trustee

 

Subject: Declaration Regarding Bank Account Reconciliations – MOR1a (March)

 

The debtors, Emerald Oil, Inc. et al., submit this a declaration regarding bank account reconciliations in lieu of providing copies of bank statements and copies of all account reconciliations.

 

The debtors have, on a timely basis, performed all bank account reconciliation in the ordinary course of its business. Copies of bank account statements and reconciliations are available for inspection upon request by the United States Trustee’s Office.

 

Pursuant to 28 U.S.C. § 1746, I declare under penalty of perjury that the foregoing is true and correct to the best of my knowledge and belief.

 

  /s/ Ryan Smith
  Name:  Ryan Smith
  Position:  Chief Financial Officer

 

 

 

 

In re: EMERALD OIL, INC., et al., Case No. 16-10704
Debtor Reporting Period: March 2016

 

MOR - 1b

Schedule of Disbursements by Debtor Entity

For the Period March 22, 2016 through March 31, 2016

Unaudited

 

       Allocation 
   Total Disbursements   Emerald Oil, Inc.   Emerald DB, LLC   Emerald NWB, LLC   Emerald WB, LLC   EOX Marketing,
LLC		   On Behalf of 3rd
Parties		 
       16-10704   16-10705   16-10706   16-10707   16-10708     
                             
Trade  $33,595(1)(5)  $17,112   $-   $330   $16,152   $-   $- 
Royalties and other WI   1,004,056    -    -    -    -    -    1,004,056 
Payroll and Payroll Taxes   193,442(2)   193,442    -    -    -    -    - 
Benefits   -(2)   -    -    -    -    -    - 
Rent & Utilities   52,963(3)   52,963    -    -    -    -    - 
Other   91,928(4)   -    -    34,981    56,947    -    - 
Professional Fees   484,866(5)   484,866    -    -    -    -    - 
Interest   497,701(6)   497,701    -    -    -    -    - 
Bank Fees   -(6)   -    -    -    -    -    - 
                                    
Total:  $2,358,550   $1,246,084   $-   $35,312   $73,099   $-   $1,004,056 

 

Notes:

 

 

(1) Allocated to the Debtors based on the estimate ownership of the underlying working interest in the properties.

 

(2) All individuals employed under Emerald Oil, Inc.

 

(3) Corporate office lease engaged under Emerald Oil, Inc.

 

(4) "Other' represents Insurance, which includes Control of Well/Operator's Extra Expense, allocated based on percentage of active wells.

 

(5) Debtor Professionals employed under Emerald Oil, Inc. An earlier version of March Disbursement Allocations provided to the U.S. Trustee inadvertently included a non-professional in this category. The disbursement to this vendor was reclassified as a Trade disbursement made by Emerald Oil, Inc. This reclassification did not change total disbursements by Debtor.

 

(6) Revolving Credit Agreement and related fees/interest were entered into under Emerald Oil, Inc.

 

MOR
(04/07)

 

 

 

 

In re: EMERALD OIL, INC., et al., Case No. 16-10704
Debtor Reporting Period: March 2016

 

MOR - 1c

Schedule of Professional Fees and Expenses Paid (1)

For the Period March 22, 2016 through March 31, 2016

(Unaudited)

 

      Amount      Check  Amount Paid 
Payee  Period Covered  Approved   Payor  Number  Date  Fees   Expenses 
Debtor Professionals                  
Kirkland & Ellis LLP      -             -    - 
Donlin Recano & Company (Notice)      -             -    - 
Donlin Recano & Company (Admin)      -             -    - 
Intrepid Financial Partners, LLC      -             -    - 
Opportune LLP      -             -    - 
Pachulski Stang Ziehl &Jones LLP      -             -    - 
BDO LLP      -             -    - 
                            
Debtor Ordinary Course Professionals      -             -    - 
EKS&H LLP      -             -    - 
Fredrickson & Byron, P.A.      -             -    - 
Vogel Law Firm      -             -    - 
Husch Blackwell LLP      -             -    - 
Taylor Anderson LLP      -             -    - 
Mayer Brown LLP      -             -    - 
                            
Lender Professionals                           
Luskin, Stern & Eisler LLP  2/1/16 to 3/24/116   29,712   Emerald Oil, Inc.  Wire  3/31/2016   29,663    49 
Vinson & Elkins LLP  3/1/16 to 3/21/16   453,384   Emerald Oil, Inc.  Wire  3/31/2016   451,647    1,737 
Womble Carlyle Sandridge & Rice, LLP  3/21/2016   1,770   Emerald Oil, Inc.  Wire  3/31/2016   1,770    - 
FTI Consulting, Inc.      -             -    - 
                            
UCC Professionals                           
Akin Gump Strauss Hauer & Feld LLP      -             -    - 
Whiteford, Taylor & Preston LLC      -             -    - 
Houlihan Lokey, Inc.      -             -    - 
                            
   Total   484,866             483,080    1,786 

 

Notes:

 

(1) Professional payments listed herein include payments made by the Debtors to retained professionals.

 

FORM MOR-1b
(04/07)

 

 

 

 

In re: EMERALD OIL, INC., et al., Case No. 16-10704
Debtor Reporting Period: March 2016

 

MOR – 2

Debtor Statement of Operations (1) (2)

For the Period March 22, 2016 through March 31, 2016

(Unaudited)

 

    Case #    16-10704   16-10707   16-10706   16-10705   16-10708         
    Debtors (3):    Emerald Oil, Inc.   Emerald WB, LLC   Emerald NWB, LLC   Emerald DB, LLC   EOX Marketing, LLC   Eliminations (6)   Total Debtors 
             (5)   (5)                 
                                   
REVENUES, NET OF TRANSPORTATION EXPENSES                                         
Oil Sales        $-   $1,171,908   $-   $-   $1,276,900   $(1,276,900)  $1,171,908 
Natural Gas Sales         -    (34,388)   -    -    -    -    (34,388)
          -    1,137,520    -    -    1,276,900    (1,276,900)   1,137,520 
OPERATING EXPENSES                                         
Cost of Sales         -    -    -    -    1,243,581    (1,243,581)   - 
Production Expenses         -    244,655    -    -    -         244,655 
Production Taxes         -    75,013    -    -    -    -    75,013 
General and Administrative Expenses         626,535    -    -    -    -    -    626,535 
Depletion of Oil and Natural Gas Properties         -    64,546    -    -    -    -    64,546 
Impairment of Oil and Natural Gas Properties (4)         -    75,188,000    -    -    -    -    75,188,000 
Depreciation and Amortization         20,674    -    -    -    -    -    20,674 
Accretion of Discount on Asset Retirement Obligations         -    6,967    -    -    -    -    6,967 
Total Expenses         647,209    75,579,181    -    -    1,243,581    (1,243,581)   76,226,390 
                                          
INCOME (LOSS) FROM OPERATIONS         (647,209)   (74,441,661)             33,319    (33,319)   (75,088,870)
                                          
OTHER INCOME (EXPENSE)                                         
Interest Expense         (618,786)   -    -    -    -    -    (618,786)
Warrant Revaluation Income (Expense)         90,000    -    -    -    -    -    90,000 
Reorganization Items         (817,888)   -    -    -    -    -    (817,888)
Total Other Expense, Net         (1,346,674)   -    -    -    -    -    (1,346,674)
                                          
INCOME BEFORE INCOME TAXES         (1,993,883)   (74,441,661)   -    -    33,319    (33,319)   (76,435,544)
                                          
INCOME TAX BENEFIT         -    -    -    -    -    -    - 
                                          
NET LOSS        $(1,993,883)  $(74,441,661)  $-   $-   $33,319   $(33,319)  $(76,435,544)

 

Notes:

 

 

(1) The information contained herein is provided to fulfill the requirements of the Office of the United States Trustee, and is unaudited and subject to future adjustment. Certain totals may not sum due to rounding.

 

(2) The Statement of Operations is prepared on an accrual basis. The accrual basis of accounting recognizes revenue when it is realized and expenses when they are incurred, regardless of when cash is actually received or paid.

 

(3) This statement includes all entities controlled by the Debtors and therefore represents the consolidated financial results of Emerald Oil, Inc.

 

(4) The Debtors follow the full cost method of accounting for oil and natural gas operations whereby all costs related to the exploration and development of oil and natural gas properties are initially capitalized into a single cost center. Capitalized costs (net of related deferred income taxes) are limited to a ceiling based on the present value of future net revenues using the 12-month unweighted average of first-day-of-the-month price (the “12-month average price”), discounted at 10%, plus the lower of cost or fair market value of unproved properties. If the ceiling is not greater than or equal to the total capitalized costs, then the Debtors are required to write down capitalized costs to the ceiling. The Debtors perform this ceiling test calculation each quarter. Any required write downs are included in the condensed consolidated statements of operations as an impairment charge.

 

The Debtors recognized $75,188,000 of impairment expense in the first quarter of 2016. The impairment expense is primarily due to the sustained reduction in the price of crude oil beginning in the fourth quarter of 2014 and its impact on the value of the Debtors' undeveloped, non-producing oil and natural gas properties.

 

(5) Although title ownership in oil and gas properties is owned by both Emerald WB, LLC (16-10707) and Emerald NWB, LLC (16-10706), the Company has not historically accounted for these interests separately and, instead, have reflected all oil and gas activities within Emerald WB, LLC (16-10707).

 

(6) The crude oil purchases by EOX Marketing, LLC, from Emerald Oil, Inc., are eliminated for consolidation purposes.

 

 

 

 

In re: EMERALD OIL, INC., et al., Case No. 16-10704
Debtor Reporting Period: March 2016

 

MOR - 3a

Debtor Balance Sheets (1)

As of the Petition Date (2)

(Unaudited)

 

   Case #  16-10704   16-10707   16-10706   16-10705   16-10708         
   Debtors (3):  Emerald Oil, Inc.   Emerald WB,
LLC (4)		   Emerald NWB,
LLC (4)		   Emerald DB,
LLC		   EOX Marketing, LLC   Eliminations (8)   Total Debtors 
                                
ASSETS                                      
CURRENT ASSETS                                      
Cash and Cash Equivalents    $435,528   $-   $-   $-   $3,100,307   $-   $3,535,835 
Accounts Receivable — Oil and Natural Gas Sales      1,957,354    -    -    -    -    -    1,957,354 
Accounts Receivable — Joint Interest Partners      5,852,643    -    -    -    -    -    5,852,643 
Other Receivables      700,705    -    -    -    31,871    -    732,576 
Intercompany Receivable      3,018,861    -    -    -    -    (3,018,861)   - 
Prepaid Expenses and Other Current Assets      1,734,745    -    -    -    -    -    1,734,745 
Total Current Assets      13,699,836    -    -    -    3,132,178    (3,018,861)   13,813,153 
                                       
PROPERTY AND EQUIPMENT                                      
Oil and Natural Gas Properties, Full Cost Method                                      
Proved Oil and Natural Gas Properties      -    733,069,244    -    -    -    -    733,069,244 
Unproved Oil and Natural Gas Properties      -    79,272,070    -    -    -    -    79,272,070 
Equipment and Facilities      987,311    14,552,936    -    -    -    -    15,540,247 
Other Property and Equipment      3,483,025    -    -    -    -    -    3,483,025 
Total Property and Equipment      4,470,336    826,894,250    -    -    -         831,364,586 
Less - Accumulated Depreciation, Depletion and Amortization      (1,406,996)   (588,210,892)   -    -    -    -    (589,617,888)
Total Property and Equipment, Net      3,063,340    238,683,358    -    -    -         241,746,698 
Debt Issuance Costs, Net of Amortization      2,697,568    -    -    -    -    -    2,697,568 
Deferred Tax Asset, net      1,813,561    -    -    -    -    -    1,813,561 
Other Non-Current Assets      290,084    -    -    -    -    -    290,084 
Total Assets     $21,564,389   $238,683,358   $-   $-   $3,132,178   $(3,018,861)  $260,361,064 
                                       
LIABILITIES AND STOCKHOLDERS' EQUITY                                      
                                       
LIABILITIES SUBJECT TO COMPROMISE (Pre-petition)                                      
Intercompany Payables     $-   $-   $-   $-   $3,018,861   $(3,018,861)  $- 
Account Payable      42,542,980    -    -    -    29,673    -    42,572,653 
Accrued Expenses      5,473,146    -    -    -    264,138    -    5,737,284 
Priority Debt (5)      -    -    -    -    -    -    - 
Revolving Credit Facility      111,678,151    -    -    -    -    -    111,678,151 
Convertible Senior Notes      148,500,000    -    -    -    -    -    148,500,000 
Advances from Joint Interest Partners      726,710    -    -    -    -    -    726,710 
Asset Retirement Obligations      4,582,522    -    -    -    -    -    4,582,522 
Warrant Liability      94,000    -    -    -    -    -    94,000 
Deferred Tax Liability, net      1,813,561    -    -    -    -    -    1,813,561 
Other Liabilities      -    -    -    -    -    -    - 
Total Liabilities Subject to Compromise      315,411,070    -    -    -    3,312,672    (3,018,861)   315,704,881 
                                       
Commitments and Contingencies                                      
                                       
Series B Voting Preferred Stock (6)      256    -    -    -    -    -    256 
                                       
STOCKHOLDERS' EQUITY                                      
Common Stock (7)      9,583    -    -    -    -    -    9,583 
Additional Paid-In Capital      273,945,998    238,683,358    -    -    -    -    512,629,356 
Accumulated Deficit      (567,802,519)   -    -    -    (180,493)   -    (567,983,012)
Total Stockholders' Equity      (293,846,938)   238,683,358    -    -    (180,493)   -    (55,344,073)
Total Liabilities and Stockholders' Equity     $21,564,389   $238,683,358   $-   $-   $3,132,178   $(3,018,861)  $260,361,064 

 

 

 

 

In re: EMERALD OIL, INC., et al., Case No. 16-10704
Debtor Reporting Period: March 2016

 

MOR - 3a

Debtor Balance Sheets (1)

As of the Petition Date (2)

(Unaudited)

 

Notes:

 

 

(1) The information contained herein is provided to fulfill the requirements of the Office of the United States Trustee, and is unaudited and subject to future adjustment. Certain totals may not sum due to rounding.

 

(2) The petition date was March 22, 2016.

 

(3) This statement includes all entities controlled by the Debtors and therefore represents the consolidated financial results of Emerald Oil, Inc.

 

(4) Although title ownership in oil and gas properties is owned by both Emerald WB, LLC (16-10707) and Emerald NWB, LLC (16-10706), the Company has not historically accounted for these interests separately and, instead, have reflected all of their oil and gas activities within Emerald WB, LLC (16-10707).

 

(5) While the amount of priority debt as of the petition date is zero, this does not reflect potential liabilities. The amount of these potential liabilities are unknown at this time.

 

(6) 255,732 issued and outstanding with a liquidation preference value of $256 as of the petition date.

 

(7) Par Value $.001, 500,000,000 shares authorized, 9,582,970 shares issued and outstanding.

 

(8) Intercompany balances between EOX Marketing, LLC and Emerald Oil, Inc., are eliminated for consolidation purposes.

 

 

 

 

In re: EMERALD OIL, INC., et al., Case No. 16-10704
Debtor Reporting Period: March 2016

 

MOR - 3b

Debtor Balance Sheets (1)

As of March 31, 2016

(Unaudited)

 

   Case #  16-10704   16-10707   16-10706   16-10705   16-10708         
   Debtors (2):  Emerald Oil, Inc.   Emerald WB,
LLC (3)		   Emerald NWB,
LLC (3)		   Emerald DB,
LLC		   EOX Marketing, LLC   Eliminations (7)   Total Debtors 
                                
ASSETS                                      
CURRENT ASSETS                                      
Cash and Cash Equivalents    $1,254,618   $-   $-   $-   $3,100,307   $-   $4,354,925 
Accounts Receivable — Oil and Natural Gas Sales      3,082,951    -    -    -    -    -    3,082,951 
Accounts Receivable — Joint Interest Partners      5,846,175    -    -    -    -    -    5,846,175 
Other Receivables      746,724    -    -    -    31,871    -    778,595 
Intercompany Receivable      2,985,542    -    -    -    -    (2,985,542)   - 
Prepaid Expenses and Other Current Assets      1,766,962    -    -    -    -    -    1,766,962 
Total Current Assets      15,682,972    -    -    -    3,132,178    (2,985,542)   15,829,608 
                                       
PROPERTY AND EQUIPMENT                                      
Oil and Natural Gas Properties, Full Cost Method                                      
Proved Oil and Natural Gas Properties      -    780,393,472    -    -    -    -    780,393,472 
Unproved Oil and Natural Gas Properties      -    32,052,985    -    -    -    -    32,052,985 
Equipment and Facilities      987,311    14,552,936    -    -    -    -    15,540,247 
Other Property and Equipment      3,483,025    -    -    -    -    -    3,483,025 
Total Property and Equipment      4,470,336    826,999,393    -    -    -         831,469,729 
Less - Accumulated Depreciation, Depletion and Amortization      (1,427,669)   (663,442,765)   -    -    -    -    (664,870,434)
Total Property and Equipment, Net      3,042,667    163,556,628    -    -    -    -    166,599,295 
Debt Issuance Costs, Net of Amortization      3,070,042    -    -    -    -    -    3,070,042 
Deferred Tax Asset, net      1,813,561    -    -    -    -    -    1,813,561 
Other Non-Current Assets      374,736    -    -    -    -    -    374,736 
Total Assets     $23,983,978   $163,556,628   $-   $-   $3,132,178   $(2,985,542)  $187,687,242 
                                       
LIABILITIES AND STOCKHOLDERS' EQUITY                                      
CURRENT LIABILITIES                                      
Accounts Payable     $340,447   $-   $-   $-   $-   $-   $340,447 
Debtor-in-possession financing      3,500,000    -    -    -    -    -    3,500,000 
Accrued Expenses      -    -    -    -    108,057    -    108,057 
Professional Fees      817,888    -    -    -    -    -    817,888 
Total Current Liabilities      4,658,335    -    -    -    108,057    -    4,766,392 
                                       
LIABILITIES SUBJECT TO COMPROMISE (Pre-petition)                                      
Intercompany Payable      -    -    -    -    2,985,542    (2,985,542)   - 
Account Payable      42,455,066    -    -    -    29,673    -    42,484,739 
Accrued Expenses      4,639,423    -    -    -    264,138    -    4,903,561 
Priority Debt (4)      -    -    -    -    -    -    - 
Revolving Credit Facility      111,678,151    -    -    -    -    -    111,678,151 
Convertible Senior Notes      148,500,000    -    -    -    -    -    148,500,000 
Advances from Joint Interest Partners      726,710    -    -    -    -    -    726,710 
Asset Retirement Obligations      4,589,489    -    -    -    -    -    4,589,489 
Warrant Liability      4,000    -    -    -    -    -    4,000 
Deferred Tax Liability, net      1,813,561    -    -    -    -    -    1,813,561 
Other Liabilities      -    -    -    -    -    -    - 
Total Liabilities Subject to Compromise      314,406,400    -    -    -    3,279,353    (2,985,542)   314,700,211 
                                       
Total Liabilities      319,064,735    -    -    -    3,387,410    (2,985,542)   319,466,603 
                                       
Commitments and Contingencies                                      
                                       
Series B Voting Preferred Stock (5)      256    -    -    -    -    -    256 
                                       
STOCKHOLDERS' EQUITY                                      
Common Stock (6)      9,583    -    -    -    -    -    9,583 
Additional Paid-In Capital      349,120,361    163,556,628    -    -    -    -    512,676,989 
Accumulated Deficit      (644,210,957)   -    -    -    (255,232)   -    (644,466,189)
Total Stockholders' Equity      (295,081,013)   163,556,628    -    -    (255,232)   -    (131,779,617)
Total Liabilities and Stockholders' Equity     $23,983,978   $163,556,628   $-   $-   $3,132,178   $(2,985,542)  $187,687,242 

 

 

 

 

In re: EMERALD OIL, INC., et al., Case No. 16-10704
Debtor Reporting Period: March 2016

 

MOR - 3b

Debtor Balance Sheets (1)

As of March 31, 2016

(Unaudited)

 

Notes:

 

 

(1) The information contained herein is provided to fulfill the requirements of the Office of the United States Trustee, and is unaudited and subject to future adjustment. Certain totals may not sum due to rounding.

 

(2) This statement includes all entities controlled by the Debtors and therefore represents the consolidated financial results of Emerald Oil, Inc.

 

(3) Although title ownership in oil and gas properties is owned by both Emerald WB, LLC (16-10707) and Emerald NWB, LLC (16-10706), the Company has not historically accounted for these interests separately and, instead, have reflected all of their oil and gas activities within Emerald WB, LLC (16-10707).

 

(4) While the amount of priority debt as of the petition date is zero, this does not reflect potential liabilities. The amount of these potential liabilities are unknown at this time.

 

(5) 255,732 issued and outstanding with a liquidation preference value of $256 as of the March 31, 2016.

 

(6) Par Value $.001, 500,000,000 shares authorized, 9,582,970 shares issued and outstanding.

 

(7) Intercompany balances between EOX Marketing, LLC and Emerald Oil, Inc., are eliminated for consolidation purposes.

 

 

 

 

In re: EMERALD OIL, INC., et al., Case No. 16-10704
Debtor Reporting Period: March 2016

 

MOR - 4a

Status of Post-Petition Taxes (1)

As of March 31, 2016

Unaudited

 

   Beginning Tax Liability   Amount Withheld or
Accrued		   Amount Paid   Date Paid  Check No. or EFT   Ending Tax Liability 
Federal                            
Withholding  $-   $13,035   $(13,035)  3/30/2016   033116   $- 
FICA-Employee   -    5,309    (5,309)  3/30/2016   033116    - 
FICA-Employer   -    5,081    (5,081)  3/30/2016   033116    - 
Unemployment   -    -    -            - 
Income   -    -    -            - 
Other   -    -    -            - 
Total Federal Taxes  $-   $23,425   $(23,425)          $- 
                             
State and Local                            
Withholding   -    3,214    (3,214)  3/30/2016   033116    - 
Sales   -    -    -            - 
Excise   -    -    -            - 
Unemployment   -    -    -            - 
Real Property   -    -    -            - 
Personal Property   -    -    -            - 
Other (2)   264,138    108,057    -            372,195 
Total State and Local  $-   $111,271   $(3,214)          $372,195 
                             
Total Taxes  $-   $134,696   $(26,639)          $372,195 

 

Notes:

 

 

(1) No tax returns including IRS Form 6123 were filed during the reporting period.

 

(2) Severance and extraction taxes are paid on a monthly basis to the respective state in which the Debtors' producing oil and gas properties are located. The amount represents the estimated portion of gross state taxes (including those remitted on behalf of third parties) the Debtors have accrued since the petition date.

 

FORM MOR-4
(04/07)

 

 

 

 

UNITED STATES BANKRUPTCY COURT

FOR THE DISTRICT OF DELAWARE

 

In re: EMERALD OIL, INC., et al., Case No. 16-10704
Debtor Reporting Period: March 22 – 31, 2016

 

May 30, 2016

 

Office of the United States Trustee

 

Subject: Declaration Regarding Postpetition Taxes – MOR4a (March)

 

The debtors, Emerald Oil, Inc. et al., hereby submit this declaration regarding postpetition taxes.

 

All postpetition taxes for the debtors, which are not subject to dispute or reconciliation, are current. There are no material tax disputes or reconciliations.

 

Pursuant to 28 U.S.C. § 1746, I declare under penalty of perjury that the foregoing is true and correct to the best of my knowledge and belief.

 

  /s/ Ryan Smith
  Name:  Ryan Smith
  Position:  Chief Financial Officer

 

 

 

 

In re: EMERALD OIL, INC., et al., Case No. 16-10704
Debtor Reporting Period: March 2016

 

MOR - 4b

Summary of Unpaid Post-Petition Debts (1)

As of March 31, 2016

Unaudited

 

   Days Aged 
   Current   0-30   31-60   61-90   Over 90   Total 
Accounts Payable  $334,421   $-   $-   $-   $-   $334,421 
Wages Payable   -    -    -    -    -    - 
Taxes Payable (2)   108,057    -    -    -    -    108,057 
Rent/Leases-Building   1,179    -    -    -    -    1,179 
Rent/Leases-Equipment   1,486    -    -    -    -    1,486 
Secured Debt/Adequate Protection Payments   -    -    -    -    -    - 
Professional Fees   817,888    -    -    -    -    817,888 
Amounts Due to Insiders (3)   3,362    -    -    -    -    3,362 
Other   -    -    -    -    -    - 
Total Postpetition Debts  $1,266,393   $-   $-   $-   $-   $1,266,393 
Percentage of Total   100%   0%   0%   0%   0%     

 

Notes:

 

 

(1) The post petition accounts payable reported represents open and outstanding trade vendor invoices that have been entered into the Debtor's accounts payable system. This summary includes accruals for invoices not yet received and for invoices not yet entered into the Debtor's accounts payable system.

 

(2) Severance and extraction taxes are paid on a monthly basis to the respective state in which the Debtors' producing oil and gas properties are located. The amount represents the estimated portion of gross state taxes (including those remitted on behalf of third parties)the Debtors have accrued since the petition date.

 

(3) "Insider" is defined in 11 U.S.C. Section 101(31).

 

 

 

 

In re: EMERALD OIL, INC., et al., Case No. 16-10704
Debtor Reporting Period: March 2016

 

MOR – 5

Debtors Account Receivable Reconciliation and Aging (1)

As of March 31, 2016

Unaudited

 

   Days Aged 
Debtors  Current   0-30   31-60   61-90   Over 90   Total 
Emerald Oil, Inc.  $3,258,328   $917,798   $351,328   $(114,726)  $5,263,122   $9,675,850 
Emerald WB, LLC   -    -    -    -    -    - 
Emerald NWB, LLC   -    -    -    -    -    - 
Emerald DB, LLC   -    -    -    -    -    - 
EOX Marketing, LLC   -    31,871    -    -    -    31,871 
Total  $3,258,328   $949,669   $351,328   $(114,726)  $5,263,122   $9,707,721 
Percentage of Total   34%   10%   4%   -1%   54%     

 

Notes:

 

 

(1) Aging is primarily for the Debtors' joint interest billing and oil and gas sales receivables and does not include intercompany receivables. All amounts are included on a gross basis before any adjustment for estimated bad debts and other uncollectible amounts.

 

FORM MOR-5
(04/07)

 

 

 

 

DEBTOR QUESTIONNAIRE

 

Must be completed each month   Yes   No
1.  Have any assets been sold or transferred outside the normal course of business  this reporting period? If yes, provide an explanation below.       X
2.  Have any funds been disbursed from any account other than a debtor in possession  account this reporting period? If yes, provide an explanation below.       X
3.  Have all postpetition tax returns been timely filed? If no, provide an explanation  below.   X    
4.  Are workers compensation, general liability and other necessary insurance  coverages in effect? If no, provide an explanation below.   X    
5.  Has any bank account been opened during the reporting period? If yes, provide  documentation identifying the opened account(s). If an investment account has been opened   provide the required documentation pursuant to the Delaware Local Rule 4001-3.       X