EX-99.2 4 v441468_ex99-2.htm EXHIBIT 99.2

 

Exhibit 99.2

 

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 APRIL 30, 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: April 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: April 2016

 

MOR – 1

Schedule of Cash Receipts and Disbursements (1)

For the Period April 1, 2016 through April 30, 2016

(Unaudited)

 

   Total Debtors 
     
Beginning Cash  $4,354,925 
      
Receipts:     
Gross Receipts (2)   7,396,892 
Total Receipts   7,396,892 
      
Disbursements (3):     
      
Operating Expenses   1,346,200 
Royalties   1,310,647 
Payroll, Payroll Taxes and Benefits   563,203 
Severance & Other Taxes   372,195 
Professional Fees   684,527 
Interest and Bank Fees   985,119 
Total Disbursements   5,261,891 
      
Net Cash Flow   2,135,001 
      
Ending Cash Balance  $6,489,926 

 

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 the Debtors 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: April 2016

 

MOR-1a

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

For the Period April 1, 2016 through April 30, 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  $3,638,925   $2,801,169   $4,893   $44,940   $- 
                          
Bank Balance  $5,117,233   $2,801,169   $4,893   $44,940.00   $- 
(+) Deposits in transit (attach list)   -    -    -    -    - 
(-) Outstanding checks (attach list)   1,478,309    -    -    -    - 
Other (attach explanation)   -    -    -    -    - 
Adjusted Bank Balance*  $3,638,925   $2,801,169   $4,893   $44,940.00   $- 

* Adjusted bank balance must equal balance per books

 

Checks Outstanding  Ck. #   Amount 
   900353    19.37 
    1456    38.62 
    211067    246.13 
    211569    851.72 
    211608    104.98 
    211809    104.71 
    112474    35.00 
    212124    3,140.58 
    212180    148.98 
    212233    12,292.37 
    212535    120.83 
    212594    491.66 
    212663    2,426.81 
    112733    30.00 
    212985    167.89 
    213002    205.93 
    213088    516.20 
    213153    1,723.08 
    213191    177.95 
    213195    147.34 
    213206    194.56 
    213321    172.04 
    213374    233.04 
    213380    110.04 
    213386    1,938.81 
    213398    45,285.20 
    213402    3,180.07 
    213450    126.86 
    213462    126.86 

 

FORM MOR-1a
(04/07)

 

 

 

 

Checks Outstanding  Ck. #   Amount 
   213481    105.22 
    213491    227.58 
    213493    110.03 
    213499    320.26 
    213514    7,366.24 
    213518    375.83 
    213522    864.04 
    213530    3,629.97 
    213546    394.82 
    213570    156.46 
    213576    600.62 
    213589    151.41 
    213596    783.68 
    213604    1,035.51 
    213634    147.67 
    213683    2,203.99 
    213688    133.13 
    213702    2,679.85 
    213715    238.73 
    213733    115.99 
    112820    19,128.00 
    112844    6,500.00 
    112845    3,000.00 
    112852    60.72 
    112856    175.00 
    112865    19,736.00 
    112869    348.00 
    112872    3,420.00 
    112881    5,103.00 
    112882    15,366.86 
    112883    720.00 
    112884    6,775.00 
    112885    16,230.00 
    112886    3,000.00 
    112887    52,963.31 
    112888    235.01 
    112889    108.66 
    112890    271.20 
    112891    1,668.72 
    112892    54.46 
    112893    148.79 
    112894    118.92 
    112895    3.96 
    112896    10,286.95 
    112897    16,945.50 
    112901    14,235.78 
    112902    3,323.25 
    112903    14,785.00 
    213758    10,945.57 
    213759    22,445.94 
    213760    7,709.22 
    213761    601.73 
    213762    413.30 
    213763    364.67 
    213764    3,566.27 
    213765    6,849.44 
    213766    396.27 
    213767    132.29 
    213768    301,713.58 
    213769    263.44 
    213770    483.19 

 

FORM MOR-1a
(04/07)

 

 

 

 

Checks Outstanding  Ck. #   Amount 
   213771    4,149.07 
    213772    1,399.98 
    213773    133.06 
    213774    11,629.67 
    213775    4,075.26 
    213776    363.68 
    213777    1,092.28 
    213778    7,331.11 
    213779    4,946.61 
    213780    720.02 
    213781    13,082.05 
    213782    5,886.67 
    213783    308.58 
    213784    985.84 
    213785    985.84 
    213786    1,965.79 
    213787    566.40 
    213790    642.25 
    213791    57,266.89 
    213792    4,970.16 
    213793    5,964.25 
    213794    9,861.77 
    213795    3,859.37 
    213796    16,243.24 
    213798    20,877.13 
    213799    1,586.21 
    213800    536.54 
    213801    521.83 
    213802    2,059.91 
    213803    170.90 
    213804    138.43 
    213805    120.11 
    213806    14,245.59 
    213808    1,330.59 
    213809    11,193.33 
    213810    3,382.27 
    213811    5,840.23 
    213812    5,491.17 
    213813    9,345.65 
    213814    1,823.20 
    213815    106.20 
    213816    2,391.92 
    213817    1,089.20 
    213818    660.53 
    213819    8,993.36 
    213820    196.67 
    213821    106.19 
    213822    330.41 
    213823    118.33 
    213824    121.70 
    213825    3,644.34 
    213826    176.53 
    213827    160.74 
    213828    176.53 
    213829    4,938.75 
    213830    106.21 
    213831    584.29 
    213832    181.54 
    213833    2,046.06 
    213834    101.48 
    213835    101.78 

 

FORM MOR-1a
(04/07)

 

 

 

 

Checks Outstanding  Ck. #   Amount 
   213836    1,570.29 
    213837    106.24 
    213838    129.87 
    213839    465.26 
    213840    7,639.84 
    213841    1,055.23 
    213842    1,752.78 
    213843    1,374.42 
    213844    181.53 
    213845    921.11 
    213846    115.78 
    213847    134.37 
    213848    112.22 
    213849    12,893.48 
    213850    100.35 
    213851    100.34 
    213852    114.42 
    213853    201.56 
    213854    790.31 
    213855    12,893.42 
    213856    101.78 
    213857    191.20 
    213858    8,650.37 
    213859    150.54 
    213860    8,936.39 
    213861    7,226.56 
    213862    849.84 
    213863    115.78 
    213864    106.24 
    213865    330.42 
    213866    316.31 
    213867    129.87 
    213868    3,068.70 
    213869    150.53 
    213870    106.21 
    213871    316.31 
    213872    106.21 
    213873    139.46 
    213874    185.13 
    213875    254.29 
    213876    5,227.51 
    213877    143.48 
    213878    2,664.64 
    213879    106.19 
    213880    104.15 
    213881    176.53 
    213882    1,193.51 
    213883    115.13 
    213884    127.72 
    213885    330.41 
    213886    282.72 
    213887    271.25 
    213888    100.34 
    213889    1,134.51 
    213890    106.19 
    213891    2,988.00 
    213892    190.58 
    213893    159.73 
    213894    159.73 
    213895    222.88 
    213896    473.85 

 

FORM MOR-1a
(04/07)

 

 

 

 

Checks Outstanding  Ck. #   Amount 
   213897    7,122.86 
    213898    1,765.28 
    213899    1,765.28 
    213900    127.86 
    213901    150.53 
    213902    523.09 
    213903    441.63 
    213904    795.95 
    213905    559.84 
    213906    1,356.73 
    213907    559.84 
    213908    1,066.57 
    213910    1,806.83 
    213911    198.64 
    213912    1,617.05 
    213913    4,223.40 
    213914    3,349.87 
    213915    3,148.11 
    213916    1,823.20 
    213917    1,314.43 
    213918    1,313.61 
    213919    9,957.88 
    213920    4,456.67 
    213921    4,456.67 
    213922    4,456.67 
    213923    530.90 
    213924    3,293.59 
    213925    1,511.85 
    213926    1,215.75 
    213927    1,215.75 
    213928    816.01 
    213929    781.58 
    213930    781.58 
    213931    790.91 
    213932    781.58 
    213933    790.91 
    213934    781.58 
    213935    5,107.83 
    213936    1,702.62 
    213937    1,702.62 
    213938    1,756.57 
    213939    2,429.01 
    213940    168.02 
    213941    1,690.30 
    213942    954.30 
    213943    1,154.79 
    213944    473.28 
    213945    279.84 
    213946    171.66 
    213947    332.76 
    213948    320.18 
    213949    399.35 
    213950    332.76 
    213951    399.35 
    213952    473.28 
    213953    559.69 
    213954    221.86 
    213955    187.26 
    213956    332.76 
    213957    2,839.77 
    213958    221.86 

 

FORM MOR-1a
(04/07)

 

 

 

 

Checks Outstanding  Ck. #   Amount 
   213959    473.29 
    213960    129.77 
    213961    221.86 
    213962    162.74 
    213963    162.72 
    213964    133.74 
    213965    221.86 
    213966    726.05 
    213967    473.28 
    213968    279.84 
    213969    1,419.87 
    213970    473.29 
    213971    133.76 
    213972    106.29 
    213973    726.06 
    213974    473.28 
    213975    203.42 
    213976    181.52 
    213977    135.24 
    213978    221.86 
    213979    332.78 
    213980    4,219.31 
    213981    187.26 
    213982    221.86 
    213983    4,219.31 
    213984    749.04 
    213985    168.02 
    213986    473.29 
    213987    221.86 
    213988    720.04 
    213989    174.00 
    213990    221.86 
    213991    203.44 
    213992    473.28 
    213993    2,812.94 
    213994    145.98 
    213995    123.35 
    213996    228.88 
    213997    3,549.69 
    213998    228.88 
    213999    221.86 
    214000    135.24 
    214001    332.76 
    214002    221.86 
    214003    473.29 
    214004    181.52 
    214005    221.86 
    214006    210.03 
    214007    2,812.93 
    214008    138.43 
    214009    138.42 
    214010    109.78 
    214011    109.78 
    214012    109.78 
    214013    132.13 
    214014    137.54 
    214015    481.48 
    214016    511.38 
    214017    191.77 
    214018    1,055.19 
    214019    1,022.68 

 

FORM MOR-1a
(04/07)

 

 

 

 

Checks Outstanding  Ck. #   Amount 
   214020    191.77 
    214021    331.17 
    214022    191.77 
    214023    962.88 
    214024    701.92 
    214025    10,900.36 
    214026    1,690.30 
    214027    12,319.32 
    214028    481.48 
    214029    511.38 
    214030    962.88 
    214031    962.88 
    214032    331.17 
    214033    191.77 
    214034    255.69 
    214035    511.37 
    214036    320.98 
    214037    511.37 
    214038    472.02 
    214039    125.12 
    214040    1,711.49 
    214041    437.40 
    214042    698.43 
    214043    597.22 
    214044    121.57 
    214045    597.23 
    214046    121.57 
    214047    447.93 
    214048    597.23 
    214049    125.11 
    214050    1,791.59 
    214051    1,791.59 
    214052    447.93 
    214053    447.93 
    214054    125.12 
    214055    1,791.59 
    214056    1,504.25 
    214057    447.93 
    214059    11,363.80 
    214060    102.61 
    214061    139.67 
    214062    160.87 
    214063    139.67 
    214064    186.21 
    214065    139.67 
    214066    144.28 
    214067    112.07 
    214068    112.07 
    214069    112.07 
    214070    108.71 
    214071    108.71 
    214072    144.28 
    214073    108.71 
    214074    112.07 
    214075    108.93 
    214076    108.93 
    214077    962.88 
    214078    1,022.68 
    214079    2,617.69 
    214080    152.17 
    214081    197.47 

 

FORM MOR-1a
(04/07)

 

 

 

 

Checks Outstanding  Ck. #   Amount 
   214082    294.97 
    214083    2,164.07 
    214084    2,164.05 
    214085    1,442.71 
    214086    1,442.71 
    214087    1,442.71 
    214088    4,328.10 
    214089    147.54 
    214090    2,852.96 
    214091    396.27 
    214092    39,948.17 
    214093    135.24 
    214094    266.31 
    214095    258.14 
    214096    266.31 
    214097    184.45 
    214098    665.59 
    214099    162.74 
    214100    11,880.65 
    214101    240.75 
    214102    240.75 
    214103    240.75 
    214104    240.75 
    214105    1,460.86 
    214106    1,490.69 
    214107    363.06 
    214108    363.05 
    214109    2,504.07 
    214110    2,430.19 
    214111    4,789.34 
    214112    3,162.52 
    214113    5,580.13 
    214114    5,580.13 
    214115    3,380.36 
    214116    40,844.96 
    214117    1,138.85 
    214118    137.57 
    214119    137.57 
    214120    137.57 
    214121    133.45 
    214122    103.19 
    214123    133.45 
    214124    100.11 
    214125    137.57 
    214126    490.25 
    214127    10,165.62 
    214128    937.39 
    214129    276.01 
    214130    8,936.39 
    214131    1,531.61 
    214132    414.81 
    214133    226.29 
    214134    155.42 
    214135    413.30 
    214136    226.92 
    214137    3,540.41 
    214138    849.84 
    214139    111.38 
    214140    376.36 
    214141    108.93 
    214142    107.18 

 

FORM MOR-1a
(04/07)

 

 

 

 

Checks Outstanding  Ck. #   Amount 
   214143    2,812.94 
    214144    108.93 
    214145    43,658.43 
    214146    197.58 
    214147    197.58 
    214148    4,868.34 
    214149    828.31 
    214150    828.31 
    214151    828.31 
    214152    828.31 
    214153    9,551.44 
    214154    1,123.65 
    214155    276.64 
    214156    1,570.29 
    214157    222.34 
    214158    481.47 
    214159    481.48 
    214160    396.27 
    214161    99.51 
    214162    133.76 
    214163    777.16 
    214164    135.04 
    214165    402.24 
    214166    2,284.60 
    214167    100.55 
    214168    100.55 
    214169    100.55 
    214170    100.55 
    214171    2,504.07 
    214172    5,074.66 
    214173    106.01 
    214174    626.42 
    214175    202.37 
    214176    202.37 
    214177    202.37 
    214178    175.91 
    214179    1,331.68 
    214180    324.00 
    214181    323.30 
    214182    1,473.25 
    5067    256.40 
    5068    198.46 
    5069    300.00 
         1,478,308.90 

 

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: April 1 – 30, 2016

 

May 30, 2016

 

Office of the United States Trustee

 

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

 

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: April 2016

 

MOR - 1b

Schedule of Disbursements by Debtor Entity

For the Period April 1, 2016 through April 30, 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  $1,182,781(1)  $217,372   $-   $437,762   $239,114   $968   $287,566 
Severance Taxes   372,195(1)   -    -    167,745    91,625    -    112,825 
Royalties and other WI   1,310,647    -    -    -    -    -    1,310,647 
Payroll, Payroll Taxes and Benefits   563,203(2)   563,203    -    -    -    -    - 
Rent & Utilities   52,963(3)   52,963    -    -    -    -    - 
Other   110,455(4)   110,455    -    -    -    -    - 
Professional fees   684,527(5)   684,527    -    -    -    -    - 
Interest and Bank Fees   985,119(6)   985,119    -    -    -    -    - 
                                    
Total:  $5,261,891   $2,613,639   $-   $605,507   $330,739   $968   $1,711,038 

 

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 general commercial liability, workers’ compensation and employee benefits, allocated to Emerald Oil, Inc. as the covered items are directly related to the debtor entity.

 

(5) Debtor Professionals employed under Emerald Oil, Inc.

 

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

 

FORM MOR-1b
(04/07)

 

 

 

 

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

 

MOR - 1c

Schedule of Professional Fees and Expenses Paid (1)

For the Period April 1, 2016 through April 30, 2016

(Unaudited)

 

             Check  Amount Paid 
Payee  Period Covered  Amount Approved   Payor  Number  Date  Fees   Expenses 
Debtor Bankruptcy Professionals                    
Kirkland & Ellis LLP      -             -    - 
Donlin Rencano & Company (Notice)      -             -    - 
Donlin Rencano & 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      -             -    - 
Vinson & Elkins LLP      -             -    - 
Womble Carlyle Sandridge & Rice, LLP      -             -    - 
FTI Consulting, Inc.  1/1/16 to 3/20/16   684,527   Emerald Oil, Inc.  Wire  4/1/2016   677,523    7,004 
                            
UCC Professionals                           
Akin Gump Strauss Hauer & Feld LLP      -             -    - 
Whiteford, Taylor & Preston LLC      -             -    - 
Houlihan Lokey, Inc.      -             -    - 
                            
   Total   684,527             677,523    7,004 

 

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: April 2016

 

MOR – 2

Debtor Statement of Operations (1) (2)

For the Period April 1, 2016 through April 30, 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 (5)   Total Debtors 
          (4)   (4)                 
                                
REVENUES, NET OF TRANSPORTATION EXPENSES                                      
Oil Sales    $-   $2,051,010   $-   $-   $4,119,329   $(4,119,329)  $2,051,010 
Natural Gas Sales      -    (53,276)   -    -    -    -    (53,276)
       -    1,997,734    -    -    4,119,329    (4,119,329)   1,997,734 
OPERATING EXPENSES                                      
Cost of Sales      -    -    -    -    4,020,763    (4,020,763)   - 
Production Expenses      -    1,490,830    -    -    -    -    1,490,830 
Production Taxes      -    248,387    -    -    -    -    248,387 
General and Administrative Expenses      847,381    -    -    -    -    -    847,381 
Depletion of Oil and Natural Gas Properties      -    1,198,534    -    -    -    -    1,198,534 
Depreciation and Amortization      -    -    -    -    -    -    - 
Accretion of Discount on Asset Retirement Obligations      -    -    -    -    -    -    - 
Total Expenses      847,381    2,937,751    -    -    4,020,763    (4,020,763)   3,785,132 
                                       
INCOME (LOSS) FROM OPERATIONS      (847,381)   (940,017)             98,566    (98,566)   (1,688,832)
                                       
OTHER INCOME (EXPENSE)                                      
Interest Expense      (714,546)   -    -    -    -    -    (714,546)
Reorganization Items      (3,203,878)   -    -    -    -    -    (3,203,878)
Total Other Expense, Net      (3,918,424)   -    -    -    -    -    (3,918,424)
                                       
INCOME BEFORE INCOME TAXES      (4,765,805)   (940,017)   -    -    98,566    (98,566)   (5,607,256)
                                       
INCOME TAX BENEFIT      -    -    -    -    -    -    - 
                                       
NET LOSS     $(4,765,805)  $(940,017)  $-   $-   $98,566   $(98,566)  $(5,607,256)

 

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) 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) 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: April 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: April 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: April 2016

 

MOR - 3b

Debtor Balance Sheets (1)

As of April 30, 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   $3,688,757   $-   $-   $-   $2,801,169   $-   $6,489,926 
Accounts Receivable — Oil and Natural Gas Sales      2,646,556    -    -    -    -    -    2,646,556 
Accounts Receivable — Joint Interest Partners      5,447,743    -    -    -    -    -    5,447,743 
Other Receivables      921,725    -    -    -    33,852    -    955,577 
Intercompany Receivables      2,702,603    -    -    -    -    (2,702,603)   - 
Prepaid Expenses and Other Current Assets      1,654,019    -    -    -    -    -    1,654,019 
Total Current Assets      17,061,403    -    -    -    2,835,021    (2,702,603)   17,193,821 
                                       
PROPERTY AND EQUIPMENT                                      
Oil and Natural Gas Properties, Full Cost Method                                      
Proved Oil and Natural Gas Properties      -    780,271,003    -    -    -    -    780,271,003 
Unproved Oil and Natural Gas Properties      -    32,093,731    -    -    -    -    32,093,731 
Equipment and Facilities      987,311    14,550,080    -    -    -    -    15,537,391 
Other Property and Equipment      3,483,025    -    -    -    -    -    3,483,025 
Total Property and Equipment      4,470,336    826,914,814    -    -    -         831,385,150 
Less - Accumulated Depreciation, Depletion and Amortization      (1,495,993)   (664,572,975)   -    -    -    -    (666,068,968)
Total Property and Equipment, Net      2,974,343    162,341,839    -    -    -         165,316,182 
Debt Issuance Costs, Net of Amortization      3,556,300    -    -    -    -    -    3,556,300 
Deferred Tax Asset, net      1,813,561    -    -    -    -    -    1,813,561 
Other Non-Current Assets      512,236    -    -    -    -    -    512,236 
Total Assets     $25,917,843   $162,341,839   $-   $-   $2,835,021   $(2,702,603)  $188,392,100 
                                       
LIABILITIES AND STOCKHOLDERS' EQUITY                                      
CURRENT LIABILITIES                                      
Accounts Payable     $2,032,948   $-   $-   $-   $-   $-   $2,032,948 
Debtor-in-possession financing      7,000,000    -    -    -    -    -    7,000,000 
Accrued Expenses      -    -    -    -    354,922    -    354,922 
Professional Fees      3,264,965    -    -    -    -    -    3,264,965 
Total Current Liabilities      12,297,913    -    -    -    354,922    -    12,652,835 
                                       
LIABILITIES SUBJECT TO COMPROMISE (Pre-petition)                                      
Intercompany Payable      -    -    -    -    2,702,603    (2,702,603)   - 
Account Payable      41,286,927    -    -    -    29,673    -    41,316,600 
Accrued Expenses      4,717,926    -    -    -    -    -    4,717,926 
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      725,706    -    -    -    -    -    725,706 
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      313,315,760    -    -`   -    2,732,275    (2,702,603)   313,345,433 
                                       
Total Liabilities      325,613,673    -    -    -    3,087,197    (2,702,603)   325,998,268 
                                       
Commitments and Contingencies                                      
                                       
Series B Voting Preferred Stock (6)      256    -    -    -    -    -    256 
                                       
STOCKHOLDERS' EQUITY                                      
Common Stock (6)      9,583    -    -    -    -    -    9,583 
Additional Paid-In Capital      350,335,150    162,341,839    -    -    -    -    512,676,989 
Accumulated Deficit      (650,040,818)   -    -    -    (252,177)   -    (650,292,995)
Total Stockholders' Equity      (299,696,085)   162,341,839    -    -    (252,177)   -    (137,606,423)
Total Liabilities and Stockholders' Equity     $25,917,843   $162,341,839   $-   $-   $2,835,021   $(2,702,603)  $188,392,100 

 

 

 

 

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

 

MOR - 3b

Debtor Balance Sheets (1)

As of April 30, 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) This does not reflect potential liabilities. The amount of potential liabilities are unknown at this time.

 

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

 

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

 

(7) Oil Sales of EOX Marketing, LLC on behalf of Emerald Oil, Inc. and associated intercompany balances are eliminated for consolidation purposes.

 

 

 

 

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

 

MOR - 4a

Status of Post-Petition Taxes (1)

As of April 30, 2016

Unaudited

 

   Beginning Tax Liability   Amount Withheld or
Accrued		   Amount Paid   Date Paid  Check No. or EFT  Ending Tax Liability 
Federal                          
Withholding  $-   $103,756   $(103,756)  Various  Various  $- 
FICA-Employee   -    30,313    (30,313)  Various  Various   - 
FICA-Employer   -    29,513    (29,513)  Various  Various   - 
Unemployment   -    -    -          - 
Income   -    -    -          - 
Other   -    -    -          - 
Total Federal Taxes  $-   $163,582   $(163,582)        $- 
                           
State and Local                          
Withholding   -    18,647    (18,647)  Various  Various   - 
Sales   -    -    -          - 
Excise   -    -    -          - 
Unemployment   -    68    (68)  Various  Various   - 
Real Property   -    -    -          - 
Personal Property   -    -    -          - 
Other (2)   372,195    354,922    (372,195)  4/21/2016  02836   354,922 
Total State and Local  $372,195   $373,637   $(390,910)        $354,922 
                           
Total Taxes  $372,195   $537,219   $(554,492)        $354,922 

 

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: April 1 - 30, 2016

 

May 30, 2016

 

Office of the United States Trustee

 

Subject: Declaration Regarding Postpetition Taxes – MOR4a (April)

 

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: April 2016

 

MOR - 4b

Summary of Unpaid Post-Petition Debts (1)

As of April 30, 2016

Unaudited

 

   Days Aged 
   Current   0-30   31-60   61-90   Over 90   Total 
Accounts Payable  $2,022,006   $-   $-   $-   $-   $2,022,006 
Wages Payable   -    -    -    -    -    - 
Taxes Payable (2)   354,922    -    -    -    -    354,922 
Rent/Leases-Building   5,239    -    -    -    -    5,239 
Rent/Leases-Equipment   641    -    -    -    -    641 
Secured Debt/Adequate Protection Payments   -    -    -    -    -    - 
Professional Fees   3,264,965    -    -    -    -    3,264,965 
Amounts Due to Insiders (3)   5,062    -    -    -    -    5,062 
Other   -    -    -    -    -    - 
Total Postpetition Debts  $5,652,835   $-   $-   $-   $-   $5,652,835 
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: April 2016

 

MOR - 5

Debtors Account Receivable Reconciliation and Aging (1)

As of April 30, 2016

Unaudited

 

   Days Aged 
Debtors  Current   0-30   31-60   61-90   Over 90   Total 
Emerald Oil, Inc.  $3,107,290   $1,306   $596,719   $295,170   $5,015,540   $9,016,025 
Emerald WB, LLC   -    -    -    -    -    - 
Emerald NWB, LLC   -    -    -    -    -    - 
Emerald DB, LLC   -    -    -    -    -    - 
EOX Marketing, LLC   -    33,851    -    -    -    33,851 
Total  $3,107,290   $35,157   $596,719   $295,170   $5,015,540   $9,049,876 
Percentage of Total   34%   0%   7%   3%   55%     

 

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 (1)    

 

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.