0001144204-16-111036.txt : 20160701 0001144204-16-111036.hdr.sgml : 20160701 20160701091330 ACCESSION NUMBER: 0001144204-16-111036 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20160629 ITEM INFORMATION: Regulation FD Disclosure ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20160701 DATE AS OF CHANGE: 20160701 FILER: COMPANY DATA: COMPANY CONFORMED NAME: Emerald Oil, Inc. CENTRAL INDEX KEY: 0001283843 STANDARD INDUSTRIAL CLASSIFICATION: CRUDE PETROLEUM & NATURAL GAS [1311] IRS NUMBER: 770639000 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-35097 FILM NUMBER: 161744967 BUSINESS ADDRESS: STREET 1: 200 COLUMBINE STREET STREET 2: SUITE 500 CITY: DENVER STATE: CO ZIP: 80206 BUSINESS PHONE: (303) 595-5600 MAIL ADDRESS: STREET 1: 200 COLUMBINE STREET STREET 2: SUITE 500 CITY: DENVER STATE: CO ZIP: 80206 FORMER COMPANY: FORMER CONFORMED NAME: Voyager Oil & Gas, Inc. DATE OF NAME CHANGE: 20100420 FORMER COMPANY: FORMER CONFORMED NAME: ante4, Inc DATE OF NAME CHANGE: 20091106 FORMER COMPANY: FORMER CONFORMED NAME: WPT ENTERPRISES INC DATE OF NAME CHANGE: 20040316 8-K 1 v443337_8k.htm 8-K

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, DC 20549

 

 

 

FORM 8-K

 

CURRENT REPORT

Pursuant to Section 13 or 15(d) of

The Securities Exchange Act of 1934

 

Date of Report (Date of earliest event reported)

July 1, 2016 (June 29, 2016)

 

 

 

EMERALD OIL, INC.

(Exact name of registrant as specified in its charter)

 

Delaware   1-35097   77-0639000
(State or other jurisdiction of
incorporation)		   (Commission File Number)   (IRS Employer
Identification No.)

 

200 Columbine Street, Suite 500
Denver, CO 80206

(Address of principal executive offices, including zip code)

 

(303) 595-5600

(Registrant’s telephone number, including area code)

 

(Former name or former address, if changed since last report)

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

 

  ¨ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

 

  ¨ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

 

  ¨ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

 

  ¨ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 

 

 

Item 7.01. Regulation FD Disclosure.

 

As previously reported by the Company, on March 22, 2015 Emerald Oil, Inc. (the “Company”) and its subsidiaries each filed a voluntary petition for relief under chapter 11 of title 11 of the United States Bankruptcy Code. On June 29, 2016, the Company filed with the Bankruptcy Court a Monthly Operating Report for the period beginning May 1, 2016 and ending May 31, 2016. This Monthly Operating Report is furnished as Exhibit 99.1 to this Current Report on Form 8-K and is incorporated into this Item 7.01 by reference.

 

Cautionary Statement Regarding the Monthly Operating Report

 

The Company cautions investors and potential investors not to place undue reliance on the information contained in the Monthly Operating Report, which was not prepared for the purpose of providing the basis for an investment decision relating to any of the securities of the Company. The Monthly Operating Report is limited in scope, covers a limited time period, and has been prepared solely for the purpose of complying with the monthly reporting requirements of the Bankruptcy Court. The Monthly Operating Report was not audited or reviewed by an independent registered public accounting firm and was not prepared in accordance with generally accepted accounting principles in the United States. The Monthly Operating Report is in a format prescribed by applicable bankruptcy laws and remains subject to future adjustment and reconciliation. Therefore, the Monthly Operating Report does not necessarily contain all information required in filings pursuant to the Securities Exchange Act of 1934, as amended (the “Exchange Act ”), or may present such information differently from the presentation of information in Exchange Act reports. There can be no assurance that, from the perspective of an investor or potential investor in the Company’s securities, the Monthly Operating Report is complete. The Monthly Operating Report also contains information for periods which are shorter or otherwise different from those required in Exchange Act reports, and such information might not be indicative of the Company’s financial condition or operating results for the period that would be reflected in the Company’s financial statements or in its Exchange Act reports. Results set forth in the Monthly Operating Report should not be viewed as indicative of future results.

 

Exchange Act Reports

 

The Company has suspended the filing of its regular periodic reports on Form 10-K and Form 10-Q with the SEC. The Company, however, intends to furnish copies of the Monthly Operating Report that is required to be submitted to the Bankruptcy Court under cover of Current Reports on Form 8-K and to continue to file Forms 8-K disclosing material developments concerning the Company.

 

Item 9.01. Financial Statements and Exhibits.

 

(d) Exhibits

 

Exhibit    
Number   Description
     
99.1   Monthly Operating Report for the period beginning May 1, 2016 and ending May 31, 2016

 

 2 

 

 

SIGNATURE

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the Company has duly caused this report on Form 8-K to be signed on its behalf by the undersigned hereunto duly authorized.

 

    EMERALD OIL, INC.
     
Date: July 1, 2016 By: /s/ Ryan Smith
    Ryan Smith
    Chief Financial Officer

 

 3 

 

 EX-99.1 2 v443337_ex99-1.htm EXHIBIT 99.1

 

Exhibit 99.1

 

UNITED STATES BANKRUPTCY COURT
DISTRICT OF DELAWARE

 

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

 

Emerald Oil, Inc

 

/s/ Emerald Oil, Inc.   June 29, 2016  
Signature of Debtor   Date  
       
       
Signature of Joint Debtor   Date  
       

/s/ Ryan Smith

   June 29, 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: May 2016

 

MOR – 1

Schedule of Cash Receipts and Disbursements (1)

For the Period May 1, 2016 through May 31, 2016

(Unaudited)

 

   Total Debtors 
     
Beginning Cash  $6,489,926 
      
Receipts:     
Gross Receipts (2)   88,569,030 
Total Receipts   88,569,030 
      
Disbursements (3):     
      
Revolving Credit Facility (4)   80,000,000 
Operating Expenses   1,521,987 
Royalties   1,194,869 
Payroll, Payroll Taxes and Benefits   425,840 
Severance & Other Taxes   354,922 
Professional Fees   436,060 
Interest and Bank Fees   85,544 
Total Disbursements   84,019,222 
      
Net Cash Flow   4,549,807 
      
Ending Cash Balance  $11,039,733 

 

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. For the month of May 2016, this also includes $80 million representing four (4) times the DIP Loan Amount as defined and provided for in the Final Agreed Order Authorizing Limited Use of Cash Collateral, Obtaining Post-Petition Credit Secured by Senior Liens, Granting Adequate Protection To Existing Lienholders and Granting Related Relief (Docket No. 287).

 

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

 

(4) Represents four (4) times the DIP Loan Amount as defined and provided for in the Final Agreed Order Authorizing Limited Use of Cash Collateral, Obtaining Post-Petition Credit Secured by Senior Liens, Granting Adequate Protection To Existing Lienholders and Granting Related Relief (Docket No. 287)

 

 

 

 

 In re: EMERALD OIL, INC., et al.,

 Case No. 16-10704
Debtor Reporting Period: May 2016

 

MOR-1a
Debtors Statement with respect to Bank Account Reconciliations, Bank Statements and Cash Disbursements Journal
For the Period May 1, 2016 through May 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 
Account Number (last 4 digits only)  #0166    #0112    #4612    #6810    #7214 
                          
Balance Per Books  $5,632,810   $2,628,223   $4,317   $44,940   $2,729,443 
                          
Bank Balance  $7,001,348   $2,628,223   $4,317   $44,940   $2,729,443 
(+) Deposits in transit (attach list)   -    -    -    -    - 
(-)  Outstanding checks (attach list)   1,368,538    -    -    -    - 
Other  (attach explanation)   -    -    -    -    - 
Adjusted Bank Balance*  $5,632,810   $2,628,223   $4,317   $44,940   $2,729,443 

* Adjusted bank balance must equal balance per books

 

Checks Outstanding  Ck. #   Amount 
    212535    120.83 
   212594    491.66 
    112733    30.00 
    212985    167.89 
    213088    516.20 
    213191    177.95 
    213195    147.34 
    213206    194.56 
    213374    233.04 
    213386    1,938.81 
    213546    394.82 
    213596    783.68 
    213604    1,035.51 
    112852    60.72 
    112888    235.01 
    112894    118.92 
    213769    263.44 
    213779    4,946.61 
    213790    642.25 
    213810    3,382.27 
    213823    118.33 
    213824    121.70 
    213852    114.42 
    213869    150.53 
    213893    159.73 
    213894    159.73 
    213896    473.85 
    213935    5,107.83 
    213936    1,702.62 
    213952    473.28 
    213981    187.26 
    213983    4,219.31 
    213985    168.02 
    213990    221.86 
    213991    203.44 
    214012    109.78 
    214013    132.13 
    214052    447.93 

 

FORM MOR-1a
(04/07)

 

 

 

 

Checks Outstanding

  Ck. #   Amount 
    214055    1,791.59 
   214080    152.17 
    214081    197.47 
    214114    5,580.13 
    214120    137.57 
    214128    937.39 
    214160    396.27 
    112916    193.23 
    112922    7,187.00 
    112946    5,788.50 
    112956    3,250.00 
    112962    156.39 
    112963    92,501.73 
    112980    14,412.50 
    112981    487.06 
    112982    3,197.65 
    112986    151.27 
    112987    187.79 
    112989    15,964.04 
    112991    82,328.27 
    112992    79.21 
    112997    3,086.49 
    112998    68.00 
    112999    35.79 
    113002    12,036.00 
    113003    20,141.00 
    113004    8,255.00 
    113005    10,418.50 
    113007    24,875.15 
    113008    720.00 
    5072    198.46 
    214183    10,714.82 
    214184    18,242.40 
    214185    514.64 
    214186    119.69 
    214187    5,686.39 
    214188    496.14 
    214189    359.71 
    214190    364.18 
    214191    3,134.53 
    214192    5,686.07 
    214193    348.30 
    214194    111.67 
    214195    109.93 
    214196    269,041.38 
    214197    224.23 
    214198    317.86 
    214199    298.41 
    214200    3,606.13 
    214201    1,217.61 
    214202    118.23 
    214203    131.29 
    214204    9,603.58 
    214205    4,139.10 
    214206    290.57 
    214207    732.74 
    214208    5,088.68 
    214209    1,585.76 
    214210    638.88 
    214211    11,498.46 
    214212    4,871.66 
    214213    223.65 
    214214    785.03 
    214215    785.03 
    214216    1,707.72 
    214217    467.72 
    214218    177.81 
    214219    355.63 
    214220    570.63 
    214221    44,247.33 
    214222    3,449.42 

 

FORM MOR-1a
(04/07)

 

 

 

 

Checks Outstanding

  Ck. #   Amount 
    214223    4,139.31 
   214224    7,286.49 
    214225    2,982.66 
    214226    6,181.41 
    214227    86,903.73 
    214228    12,668.95 
    214229    1,100.90 
    214230    296.60 
    214231    288.15 
    214232    1,700.56 
    214233    141.12 
    214234    12,517.75 
    214236    955.46 
    214237    107.22 
    214238    103.81 
    214239    103.81 
    214240    9,990.06 
    214241    3,148.09 
    214242    4,349.04 
    214243    4,960.28 
    214244    7,611.24 
    214245    957.99 
    214246    132.03 
    214247    100.97 
    214248    1,344.91 
    214249    906.97 
    214250    111.18 
    214251    576.08 
    214252    8,954.30 
    214253    274.77 
    214254    3,084.08 
    214255    189.52 
    214256    180.34 
    214257    4,127.77 
    214258    486.07 
    214259    151.16 
    214260    1,732.31 
    214261    113.76 
    214262    1,349.90 
    214263    118.23 
    214264    405.66 
    214265    6,335.29 
    214266    879.30 
    214267    1,277.84 
    214268    1,142.21 
    214269    151.16 
    214270    786.88 
    214271    122.17 
    214272    1,094.37 
    214273    183.26 
    214274    886.74 
    214275    1,094.37 
    214276    4,540.05 
    214277    100.87 
    214278    4,710.16 
    214279    2,807.14 
    214280    949.27 
    214281    274.77 
    214282    277.42 
    214283    118.23 
    214284    2,548.28 
    214285    104.07 
    214286    277.42 
    214287    115.84 
    214288    225.94 
    214289    4,994.87 
    214290    109.52 
    214291    226.91 
    214292    103.02 
    214293    993.21 
    214294    129.13 

 

FORM MOR-1a
(04/07)

 

 

 

 

Checks Outstanding

  Ck. #   Amount 
    214295    274.77 
   214296    234.50 
    214297    304.36 
    214298    1,274.11 
    214299    2,473.02 
    214300    172.25 
    214301    131.28 
    214302    131.29 
    214303    111.11 
    214304    416.54 
    214305    6,258.91 
    214306    1,493.51 
    214307    1,493.51 
    214308    464.78 
    214309    720.93 
    214310    495.26 
    214311    348.39 
    214312    495.26 
    214313    348.39 
    214314    1,134.52 
    214315    49,650.58 
    214316    2,956.70 
    214317    100.51 
    214318    1,376.36 
    214319    3,318.35 
    214320    3,208.27 
    214321    3,120.75 
    214322    957.99 
    214323    1,046.67 
    214324    1,048.20 
    214325    8,272.57 
    214326    3,606.01 
    214327    3,606.01 
    214328    3,606.01 
    214329    331.14 
    214330    2,349.12 
    214331    1,068.27 
    214332    866.02 
    214333    866.02 
    214334    581.14 
    214335    556.77 
    214336    556.77 
    214337    562.59 
    214338    556.77 
    214339    562.59 
    214340    556.77 
    214341    3,638.62 
    214342    1,212.87 
    214343    1,212.87 
    214344    1,252.86 
    214345    2,290.88 
    214346    1,565.23 
    214347    759.61 
    214348    953.31 
    214349    390.80 
    214350    231.08 
    214351    141.70 
    214352    274.77 
    214353    264.38 
    214354    329.78 
    214355    274.77 
    214356    329.78 
    214357    390.80 
    214358    462.17 
    214359    183.20 
    214360    154.62 
    214361    274.77 
    214362    2,344.78 
    214363    183.20 
    214364    390.80 
    214365    109.34 

 

FORM MOR-1a
(04/07)

 

 

 

 

Checks Outstanding

  Ck. #   Amount 
    214366    183.20 
   214367    183.20 
    214368    599.50 
    214369    390.80 
    214370    231.08 
    214371    1,172.39 
    214372    390.80 
    214373    107.87 
    214374    599.50 
    214375    390.80 
    214376    149.90 
    214377    183.20 
    214378    274.77 
    214379    3,483.93 
    214380    154.62 
    214381    100.39 
    214382    183.20 
    214383    3,483.93 
    214384    618.37 
    214385    390.80 
    214386    183.20 
    214387    594.55 
    214388    145.63 
    214389    183.20 
    214390    390.80 
    214391    2,322.61 
    214392    188.97 
    214393    100.39 
    214394    2,930.96 
    214395    188.97 
    214396    183.20 
    214397    274.77 
    214398    183.20 
    214399    390.80 
    214400    149.90 
    214401    183.20 
    214402    2,322.61 
    214403    113.87 
    214404    382.41 
    214405    394.35 
    214406    147.83 
    214407    814.53 
    214408    788.59 
    214409    147.83 
    214410    263.34 
    214411    147.83 
    214412    764.91 
    214413    576.20 
    214414    9,764.51 
    214415    4,705.81 
    214416    10,948.04 
    214417    382.41 
    214418    394.35 
    214419    764.92 
    214420    764.91 
    214421    263.34 
    214422    147.83 
    214423    197.14 
    214424    394.35 
    214425    255.00 
    214426    1,235.81 
    214427    364.01 
    214428    1,411.21 
    214429    360.53 
    214430    549.17 
    214431    492.24 
    214432    113.91 
   214433    492.24 
    214434    113.91 
    214435    369.24 
    214436    492.24 

 

FORM MOR-1a
(04/07)

 

 

 

 

 

Checks Outstanding

  Ck. #   Amount 
    214437    1,476.83 
    214438    1,476.83 
    214439    369.24 
    214440    369.24 
    214441    1,476.83 
    214442    1,240.37 
    214443    369.24 
    214445    106.36 
    214446    9,906.77 
    214447    141.39 
    214448    139.78 
    214449    764.92 
    214450    788.59 
    214451    2,300.81 
    214452    133.76 
    214453    203.75 
    214454    259.29 
    214455    1,902.73 
    214456    1,902.73 
    214457    1,268.50 
    214458    1,268.50 
    214459    1,268.50 
    214460    3,805.44 
    214461    129.75 
    214462    2,508.44 
    214463    392.26 
    214464    494.04 
    214465    1,394.37 
    214466    160.73 
    214467    1,394.37 
    214468    1,004.23 
    214469    348.29 
    214470    137.91 
    214471    1,004.23 
    214472    219.86 
    214473    213.16 
    214474    219.86 
    214475    162.13 
    214476    1,281.11 
    214477    549.60 
    214478    12,277.66 
    214479    158.92 
    214480    191.18 
    214481    191.18 
    214482    191.18 
    214483    191.18 
    214484    1,013.88 
    214485    1,034.61 
    214486    299.76 
    214487    299.76 
    214488    2,147.21 
    214489    2,083.19 
    214490    3,879.66 
    214491    512.75 
    214492    25,727.67 
    214493    6,419.19 
    214494    6,419.17 
    214495    109.20 
    214496    2,806.38 
    214497    7,691.22 
    214498    802.00 
    214499    1,856.05 
    214500    420.21 
    214501    3,691.08 
    214502    295.16 
    214503    98.38 
    214504    98.18 
    214505    98.18 
    214506    98.18 
    214507    37.03 
    214508    103.56 

 

FORM MOR-1a
(04/07)

 

 

 

 

Checks Outstanding

  Ck. #   Amount 
    214509    103.56 
   214510    450.58 
    214511    4,710.16 
    214512    1,529.57 
    214513    355.58 
    214514    193.94 
    214515    133.28 
    214516    359.71 
    214517    187.35 
    214518    2,921.39 
    214519    103.56 
    214520    949.28 
    214521    124.01 
    214522    422.32 
    214523    120.26 
    214524    2,322.61 
    214525    714.89 
    214526    540.64 
    214527    347.15 
    214528    347.15 
    214529    802.00 
    214530    347.15 
    214531    791.11 
    214532    131.70 
    214533    540.64 
    214534    527.39 
    214535    131.70 
    214536    527.39 
    214537    145.85 
    214538    500.59 
    214539    145.85 
    214540    131.70 
    214541    131.70 
    214542    2,461.18 
    214543    221.69 
    214544    221.69 
    214545    2,115.21 
    214546    574.72 
    214547    574.72 
    214548    574.72 
    214549    574.72 
    214550    7,056.46 
    214551    1,122.02 
    214552    243.25 
    214553    512.75 
    214554    412.30 
    214555    412.30 
    214556    432.43 
    214557    412.30 
    214558    214.32 
    214559    214.32 
    214560    214.32 
    214561    267.93 
    214562    267.93 
    214563    267.93 
    214564    267.89 
    214565    229.65 
    214566    137.43 
    214567    137.43 
    214568    137.43 
    214569    160.99 
    214570    1,349.90 
    214571    183.57 
    214572    382.41 
    214573    382.41 
    214574    348.30 
    214575    666.38 
    214576    344.80 
    214577    1,585.76 
    214578    911.97 
    214579    2,147.21 

 

FORM MOR-1a
(04/07)

 

 

 

 

Checks Outstanding

  Ck. #   Amount 
    214580    4,391.51 
   214581    111.93 
    214582    107.81 
    214583    390.73 
    214584    125.93 
    214585    125.92 
    214586    125.93 
    214587    146.55 
    214588    1,107.25 
    214589    228.96 
    214590    229.44 
    214591    100.43 
    214592    100.38 
         1,368,537.86 

 

FORM MOR-1a
(04/07)

 

 

 

 

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

 

MOR - 1b

Schedule of Disbursements by Debtor Entity

For the Period May 1, 2016 through May 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     
                             
Revolving Credit Facility  $80,000,000(1)  $80,000,000   $-   $-   $-   $-   $- 
Trade   1,449,658(2)   117,283    -    596,848    326,009    8,080    401,438 
Severance Taxes   354,922(2)   -    -    159,960    87,373    -    107,589 
Royalties and other WI   1,194,869    -    -    -    -    -    1,194,869 
Payroll, Payroll Taxes and Benefits   425,840(3)   425,840    -    -    -    -    - 
Rent & Utilities   -(4)   -    -    -    -    -    - 
Other   72,329(5)   24,437    -    18,224    29,668    -    - 
Professional fees   436,060(6)   436,060    -    -    -    -    - 
Interest and Bank Fees   85,544(7)   84,610    -    -    -    934    - 
                                    
Total:  $84,019,222   $81,088,230   $-   $775,032   $443,050   $9,014   $1,703,896 

 

Notes:

 

(1) Debtor in possession financing agreement was entered into by Emerald Oil, Inc.

 

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

 

(3) All individuals employed by Emerald Oil, Inc.

 

(4) Corporate office lease of Emerald Oil, Inc.

 

(5) "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 and Control of Well/Operator's Extra Expense, allocated based on percentage of active wells.

 

(6) Debtor Professionals employed by Emerald Oil, Inc.

 

(7) Revolving Credit Agreement and related fees/interest was entered into by Emerald Oil, Inc.

 

FORM MOR-1b

(04/07)

 

 

 

 

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

 

MOR - 1c

Schedule of Professional Fees and Expenses Paid (1)

For the Period May 1, 2016 through May 31, 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)  3/15/2016 to 3/31/2016   92,502   Emerald Oil, Inc.   112963   5/19/2016   75,672    16,830 
Donlin Rencano & Company (Admin)      -               -    - 
Intrepid Financial Partners, LLC      -               -    - 
Opportune LLP (2)  Retainer   161,513   Emerald Oil, Inc.   Wire   5/25/2016   161,513    - 
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  3/22/2016 to 3/31/2016   4,903   Emerald Oil, Inc.   112965   5/19/2016   4,885    18 
Vinson & Elkins LLP  3/22/2016 to 3/31/2016   81,116   Emerald Oil, Inc.   Various   5/19/2016   77,632    3,484 
Womble Carlyle Sandridge & Rice, LLP      -               -    - 
FTI Consulting, Inc.  3/22/2016 to 04/30/2016   96,026   Emerald Oil, Inc.   Wire   Various   95,960    66 
                              
UCC Professionals                             
Akin Gump Strauss Hauer & Feld LLP      -               -    - 
Whiteford, Taylor & Preston LLC      -               -    - 
Houlihan Lokey, Inc.      -               -    - 
                              
   Total:   436,060               415,662    20,398 

 

Notes:

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

 

(2) The amount paid to Opportune LLP in May represents an increase in the retainer, authorized by the Order Authorizing (I) the Debtors to Employ and Retain (A) Opportune LLP as Crisis Managers and (B) Wade Stubblefield as Chief Restructuring Officer and Certain Additonal Personnel, in Each Instance Nunc Pro Tunc to the Petition Date and (II) Granting Related Relief (Docket No. 302).

 

FORM MOR-1b

(04/07)

 

 

 

 

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

 

MOR – 2

Debtor Statement of Operations (1) (2)

For the Period May 1, 2016 through May 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 (5)   Total Debtors 
           (4)   (4)                 
                                 
REVENUES, NET OF TRANSPORTATION EXPENSES                                        
Oil Sales       $-   $3,790,306   $-   $-   $5,716,012   $(5,716,012)  $3,790,306 
Natural Gas Sales        -    (74,702)   -    -    -    -    (74,702)
         -    3,715,604    -    -    5,716,012    (5,716,012)   3,715,604 
OPERATING EXPENSES                                        
Cost of Sales        -    -    -    -    5,588,495    (5,588,495)   - 
Production Expenses        -    1,755,185    -    -    -    -    1,755,185 
Production Taxes        -    389,482    -    -    -    -    389,482 
General and Administrative Expenses        765,609    -    -    -    -    -    765,609 
Depletion of Oil and Natural Gas Properties        -    1,488,306    -    -    -    -    1,488,306 
Depreciation and Amortization        138,388    -    -    -    -    -    138,388 
Total Expenses        903,997    3,632,973    -    -    5,588,495    (5,588,495)   4,536,970 
                                         
INCOME (LOSS) FROM OPERATIONS        (903,997)   82,631              127,517    (127,517)   (821,366)
                                         
OTHER INCOME (EXPENSE)                                        
Interest Expense        (830,361)   -    -    -    -    -    (830,361)
Reorganization Items        (1,779,920)   -    -    -    -    -    (1,779,920)
Total Other Expense, Net        (2,610,281)   -    -    -    -    -    (2,610,281)
                                         
INCOME BEFORE INCOME TAXES        (3,514,278)   82,631    -    -    127,517    (127,517)   (3,431,647)
                                         
INCOME TAX BENEFIT        -    -    -    -    -    -    - 
                                         
NET LOSS       $(3,514,278)  $82,631   $-   $-   $127,517   $(127,517)  $(3,431,647)

 

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: May 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 
Total Liabilities Subject to Compromise        315,411,070    -    -    -    3,312,672    (3,018,861)   315,704,881 
                                         
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: May 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 shares 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: May 2016

 

MOR - 3b

Debtor Balance Sheets (1)

As of May 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      $8,411,510   $-   $-   $-   $2,628,223   $-   $11,039,733 
Accounts Receivable — Oil and Natural Gas Sales        4,548,810    -    -    -    -    -    4,548,810 
Accounts Receivable — Joint Interest Partners        5,225,288    -    -    -    -    -    5,225,288 
Other Receivables        1,382,778    -    -    -    33,852    -    1,416,630 
Intercompany Receivables        2,529,657    -    -    -    -    (2,529,657)   - 
Prepaid Expenses and Other Current Assets        1,577,925    -    -    -    -    -    1,577,925 
Total Current Assets        23,675,968    -    -    -    2,662,075    (2,529,657)   23,808,386 
                                         
PROPERTY AND EQUIPMENT                                        
Oil and Natural Gas Properties, Full Cost Method                                        
Proved Oil and Natural Gas Properties        -    780,323,736    -    -    -    -    780,323,736 
Unproved Oil and Natural Gas Properties        -    32,095,491    -    -    -    -    32,095,491 
Equipment and Facilities        987,311    14,429,022    -    -    -    -    15,416,333 
Other Property and Equipment        3,483,025    -    -    -    -    -    3,483,025 
Total Property and Equipment        4,470,336    826,848,249    -    -    -         831,318,585 
Less - Accumulated Depreciation, Depletion and Amortization        (1,566,057)   (666,129,605)   -    -    -    -    (667,695,662)
Total Property and Equipment, Net        2,904,279    160,718,644    -    -    -         163,622,923 
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       $32,462,344   $160,718,644   $-   $-   $2,662,075   $(2,529,657)  $193,313,406 
                                         
LIABILITIES AND STOCKHOLDERS' EQUITY                                        
CURRENT LIABILITIES                                        
Accounts Payable       $3,800,914   $-   $-   $-   $-   $-   $3,800,914 
Debtor-in-possession financing        90,500,000    -    -    -    -    -    90,500,000 
Accrued Expenses        -    -    -    -    549,616    -    549,616 
Professional Fees        4,839,079    -    -    -    -    -    4,839,079 
Total Current Liabilities        99,139,993    -    -    -    549,616    -    99,689,609 
                                         
LIABILITIES SUBJECT TO COMPROMISE (Pre-petition)                                        
Intercompany Payable        -    -    -    -    2,529,657    (2,529,657)   - 
Account Payable        41,241,150    -    -    -    29,673    -    41,270,823 
Accrued Expenses        6,089,205    -    -    -    -    -    6,089,205 
Priority Debt (4)        -    -    -    -    -    -    - 
Revolving Credit Facility        31,678,151    -    -    -    -    -    31,678,151 
Convertible Senior Notes        148,500,000    -    -    -    -    -    148,500,000 
Advances from Joint Interest Partners        716,383    -    -    -    -    -    716,383 
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 
Total Liabilities Subject to Compromise        234,631,939    -    -    -    2,559,329    (2,529,657)   234,661,612 
                                         
Total Liabilities        333,771,932    -    -    -    3,108,945    (2,529,657)   334,351,221 
                                         
Series B Voting Preferred Stock (6)        256    -    -    -    -    -    256 
                                         
STOCKHOLDERS' EQUITY                                        
Common Stock (6)        9,583    -    -    -    -    -    9,583 
Additional Paid-In Capital        351,958,345    160,718,644    -    -    -    -    512,676,989 
Accumulated Deficit        (653,277,772)   -    -    -    (446,870)   -    (653,724,642)
Total Stockholders' Equity        (301,309,844)   160,718,644    -    -    (446,870)   -    (141,038,070)
Total Liabilities and Stockholders' Equity       $32,462,344   $160,718,644   $-   $-   $2,662,075   $(2,529,657)  $193,313,406 

 

 

 

 

 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: May 2016

 

MOR - 4a

Status of Post-Petition Taxes (1)

As of May 31, 2016

Unaudited

 

   Beginning Tax Liability   Amount Withheld or
Accrued		   Amount Paid   Date Paid  Check No. or EFT  Ending Tax Liability 
Federal                          
Withholding  $-   $67,811   $(67,811)  Various  Various  $- 
FICA-Employee   -    18,632    (18,632)  Various  Various   - 
FICA-Employer   -    17,678    (17,678)  Various  Various   - 
Unemployment   -    -    -          - 
Income   -    -    -          - 
Other   -    -    -          - 
Total Federal Taxes  $-   $104,121   $(104,121)        $- 
                           
State and Local                          
Withholding   -    13,607    (13,607)  Various  Various   - 
Sales   -    -    -          - 
Excise   -    -    -          - 
Unemployment   -    2    (2)  Various  Various   - 
Real Property   -    -    -          - 
Personal Property   -    -    -          - 
Other (2)   354,922    549,616    (354,922)  5/24/2016  00365   549,616 
Total State and Local  $354,922   $563,225   $(368,531)        $549,616 
                           
Total Taxes  $354,922   $667,346   $(472,652)        $549,616 

 

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 our 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) to the Company that have accrued since the petition date.

 

FORM MOR-4

(04/07)

 

 

 

 

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

 

MOR - 4b

Summary of Unpaid Post-Petition Debts (1)

As of May 31, 2016

Unaudited

 

   Days Aged 
   Current   0-30   31-60   61-90   Over 90   Total 
Trade Payable  $3,410,628   $287,515   $28,154   $-   $-   $3,726,296 
Wages Payable   -    -    -    -    -    - 
Taxes Payable (2)   549,616    -    -    -    -    549,616 
Rent/Leases-Building   66,585    -    -    -    -    66,585 
Rent/Leases-Equipment   5,347    1,297    -    -    -    6,645 
Secured Debt/Adequate Protection Payments   -    -    -    -    -    - 
Professional Fees   1,939,721    2,779,749    119,609    -    -    4,839,079 
Amounts Due to Insiders*   1,388    -    -    -    -    1,388 
Other   -    -    -    -    -    - 
Total Postpetition Debts  $5,973,285   $3,068,561   $147,763   $-   $-   $9,189,609 
Percentage of Total   65%   33%   2%   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 our 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) to the Company that have accrued since the petition date.

 

 

 

 

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

 

MOR - 5

Debtors Account Receivable Reconciliation and Aging (1)

As of May 31, 2016

Unaudited

 

   Days Aged 
Debtors  Current   0-30   31-60   61-90   Over 90   Total 
Emerald Oil, Inc.  $4,031,956   $151,231   $   $395,792   $6,593,328   $11,172,306 
Emerald WB, LLC   -    -    -    -    -    - 
Emerald NWB, LLC   -    -    -    -    -    - 
Emerald DB, LLC   -    -    -    -    -    - 
EOX Marketing, LLC   -    18,422    -    -    -    18,422 
Total  $4,031,956   $169,652   $-   $395,792   $6,593,328   $11,190,728 
Percentage of Total   36%   2%   0%   4%   59%     

 

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