0001354488-15-005027.txt : 20151113 0001354488-15-005027.hdr.sgml : 20151113 20151113123904 ACCESSION NUMBER: 0001354488-15-005027 CONFORMED SUBMISSION TYPE: 10-Q/A PUBLIC DOCUMENT COUNT: 10 CONFORMED PERIOD OF REPORT: 20150630 FILED AS OF DATE: 20151113 DATE AS OF CHANGE: 20151113 FILER: COMPANY DATA: COMPANY CONFORMED NAME: Brushy Resources, Inc. CENTRAL INDEX KEY: 0001554970 STANDARD INDUSTRIAL CLASSIFICATION: CRUDE PETROLEUM & NATURAL GAS [1311] IRS NUMBER: 455634053 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10-Q/A SEC ACT: 1934 Act SEC FILE NUMBER: 000-54967 FILM NUMBER: 151228034 BUSINESS ADDRESS: STREET 1: 300 E. SONTERRA BLVD. STREET 2: SUITE 1220 CITY: SAN ANTONIO STATE: TX ZIP: 78258 BUSINESS PHONE: 210-999-5400 MAIL ADDRESS: STREET 1: 300 E. SONTERRA BLVD. STREET 2: SUITE 1220 CITY: SAN ANTONIO STATE: TX ZIP: 78258 FORMER COMPANY: FORMER CONFORMED NAME: Starboard Resources Inc. DATE OF NAME CHANGE: 20141112 FORMER COMPANY: FORMER CONFORMED NAME: Integra Oil & Gas, Inc. DATE OF NAME CHANGE: 20141029 FORMER COMPANY: FORMER CONFORMED NAME: Starboard Resources, Inc. DATE OF NAME CHANGE: 20120726 10-Q/A 1 stbrd_10qa.htm AMENDED QUARTERLY REPORT stbrd_10qa.htm


UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
 
FORM  10-Q/A
Amendment No. 1
 
x
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
 
For the quarterly period ended June 30. 2015
 
OR
 
¨
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
 
For the transition period from                     to                    
 
Commission file number 000-54967  
 
BRUSHY RESOURCES, INC.
(Exact name of registrant as specified in its charter)
 
Delaware
 
45-5634053
(State or other jurisdiction of
incorporation or organization)
 
(I.R.S. Employer
Identification No.)
 
300 E. Sonterra Blvd, Suite 1220
San Antonio, Texas
 
78258
(Address of principal executive offices)
 
(Zip Code)
 
(210) 999-5400
(Registrant’s telephone number, including area code)
 
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.        x    Yes         ¨    No
 
Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).     x    Yes    ¨    No
 
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer or a smaller reporting company. See the definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act.
 
Large accelerated filer
¨
 
Accelerated filer
¨
         
Non-accelerated filer
¨
 
Smaller reporting company
x
(Do not check if a smaller reporting company)
 
 
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).     ¨   Yes     x   No
 
As of August 12, 2015 there were 12,711,986 shares of the registrant’s common stock, par value $0.001 per share, outstanding. 
 


 
 

 
 
BRUSHY  RESOURCES, INC.
FORM 10-Q/A
FOR THE QUARTER ENDED JUNE 30, 2015
 
INDEX
 
EXPLANTORY NOTE
   
Page
PART I — FINANCIAL INFORMATION
 
1
Item 1. — Financial Statements
 
1
Condensed Consolidated Balance Sheets at June 30, 2015 and December 31, 2014
 
1
Condensed Consolidated Statements of Operations for the Three and Six Months Ended June 30, 2015and 2014
 
3
     
Condensed Consolidated Statements of Cash Flows for the Six Months Ended June 30, 2015 and 2014
 
4
Notes to the Condensed Consolidated Financial Statements
 
6
Item 2. — Management’s Discussion and Analysis of Financial Condition and Results of Operations
 
14
Item 3. — Quantitative and Qualitative Disclosures About Market Risk
 
22
Item 4. — Controls and Procedures
 
22
PART II — OTHER INFORMATION
 
24
Item 1. — Legal Proceedings
 
24
Item 2. — Unregistered Sales of Equity Securities and Use of Proceeds
 
25
Item 3. — Defaults Upon Senior Securities
 
26
Item 4. — Mine Safety Disclosures
 
26
Item 5. — Other Information
 
26
Item 6. — Exhibits and Reports on Form 8-K
 
26
SIGNATURES
 
28

 
 

 
 
EXPLANATORY NOTE
 
Brushy Resources, Inc. (the “Company” – formerly known as “Starboard Resources, Inc.”) is filing this Amendment No. 1 on Form 10-Q/A (the “Amended Report“) to the Quarterly Report on form 10-Q of Starboard Resources for the quarterly period ended June 30, 2015 (the “Original Report”), originally filed with the Securities and Exchange Commission on August 14, 2015.  The purpose of the Amended Report is to correct certain errors related to the impairment of the Company’s Oklahoma properties contained in the financial statements and related disclosures contained in the Original Report, as described in Note 1 – Restatement.
 
In November 2015, the Company discovered an error in computation of impairment regarding the Oklahoma properties for the quarterly period ended June 30, 2015.  Specifically, the impairment calculation included in the Company’s financial statements for period ended June 30, 2015 did not take into account previously recorded impairment on the Oklahoma properties resulting in improper recording of $1,350,000 in impairment.  The changes in the impairment resulted in a non-cash reduction of loss to the financial statements.  The Company has determined that the impact of non-cash item on its quarterly financial statements for the quarters ended June 30, 2015 to be sufficiently material to warrant restatement of the Company’s Quarterly Reports on Form 10-Q.
 
The line items that have been amended and restated are set forth below:
 
Balance Sheets
 
   
June 30, 2015
 
   
As Previously
             
   
Reported
   
Adjustment
   
As Restated
 
ASSETS
                 
Oil and natural gas properties, successful efforts method, net of accumulated depletion
  $ 88,955       1,350     $ 90,305  
Total oil and natural gas properties and other equipment, net
                       
Total assets
  $ 96,809       1,350     $ 98,159  
                         
LIABILITIES AND STOCKHOLDERS' EQUITY
                       
Accumulated deficit
  $ (19,176 )     1,350     $ (17,826 )
Total stockholders' equity
    37,469       1,350       38,819  
Total liabilities and stockholders' equity
  $ 96,809       1,350     $ 98,159  
 
 Statements of Operations
 
   
Three Months Ended June 30, 2015
   
Six Months Ended June 30, 2015
 
   
As Previously
               
As Previously
             
   
Reported
   
Adjustment
   
As Restated
   
Reported
   
Adjustment
   
As Restated
 
                                     
Impairment of oil and gas properties
  $ 1,350       (1,350 )   $ -     $ 1,350       (1,350 )   $ -  
Net income (loss)
  $ (2,354 )     1,350     $ (1,004 )   $ (5,043 )     1,350     $ (3,693 )
Net income (loss) per basic and diluted common share
  $ (0.19 )           $ (0.08 )   $ (0.40 )           $ (0.29 )
 
Statements of Cash Flows
 
 
Six Months Ended June 30, 2015
 
 
As Previously
           
 
Reported
   
Adjustment
 
As Restated
 
                   
Net loss
  $ (5,043 )     1,350     $ (3,693 )
Impairment of oil and gas properties
    1,350       (1,350 )   $ -  
 
No attempt has been made in this Amended Report to modify or updated other disclosures presented in the Original Report, except as required to reflect the effects of the restatement. Information not affected by the restatement is unchanged and reflects the disclosure made at the time of the filing of the Original Report on August 14, 2015. Accordingly, this Amended Report should be read in conjunction with our filings made with the Securities and Exchange Commission subsequent to the filing of the Original Report, including any amendments to those filings.
 
As a result of the restatement described above, the Company’s Chief Executive Officer and Chief Accounting Officer, with the assistance of other members of management, re-evaluated the effectiveness of the Company’s internal control over financial reporting as of June 30, 2015 using the criteria in Internal Control – Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission. Based on this re-evaluation, we have determined that an additional material weakness in internal controls over financial reporting existed as of June 30, 2015. (See Item 4 – Controls and Procedures).
 
Currently dated certifications from Brushy Resources, Inc.’s Chief Executive Officer and Chief Accounting Officer have also been included as exhibits to this Form 10-Q/A.
 
 
 

 
Part I – Financial Information
 
Item 1.   Financial Statements

STARBOARD RESOURCES, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
(In thousands, except par value and share data)
 
   
June 30,
   
December 31,
 
   
2015
   
2014
 
   
(Unaudited)
   
(Audited)
 
ASSETS
  Restated        
             
Current assets
           
Cash
 
$
3,729
   
$
3,574
 
Trade receivables
   
1,019
     
1,860
 
Joint interest receivables
   
203
     
508
 
Current derivative assets
   
596
     
1,699
 
Prepaid expenses
   
378
     
284
 
                 
Total current assets
   
5,925
     
7,925
 
                 
Oil and natural gas properties and other equipment
               
Oil and natural gas properties, successful efforts method, net of accumulated depletion
   
90,305
     
91,766
 
Other property and equipment, net of depreciation
   
83
     
104
 
                 
Total oil and natural gas properties and other equipment, net
   
90,388
     
91,870
 
                 
Other assets
               
                 
Goodwill
   
960
     
960
 
Derivative assets
   
-
     
67
 
Other
   
886
     
981
 
                 
Total other assets
   
1,846
     
2,008
 
                 
Total assets
 
$
98,159
   
$
101,803
 
 
The accompanying notes are an integral part of these condensed consolidated financial statements.
 
 
1

 
 
STARBOARD RESOURCES, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
(In thousands, except par value and share data)
 
   
June 30,
   
December 31,
 
   
2015
   
2014
 
   
(Unaudited)
   
(Audited)
 
LIABILITIES AND STOCKHOLDERS’ EQUITY
  Restated        
             
Current liabilities
           
Accounts payable and accrued liabilities
 
$
5,557
   
$
5,835
 
Joint interest revenues payable
   
752
     
829
 
Current maturities of related party notes payable
   
16,768
     
-
 
Current maturities of notes payable
   
21,021
     
2,353
 
Current asset retirement obligations
   
444
     
428
 
                 
Total current liabilities
   
44,542
     
9,445
 
                 
Long-term liabilities
               
Derivative liabilities
   
39
     
-
 
Notes payable
   
46
     
23,162
 
Related party note payable
   
-
     
10,180
 
Deferred tax liabilities
   
11,423
     
14,040
 
Asset retirement obligations
   
3,290
     
3,177
 
                 
Total long-term liabilities
   
14,798
     
50,559
 
                 
Commitments and contingencies
               
                 
Stockholders’ equity
               
Preferred stock, $.001 par value, authorized 10,000,000 shares;
               
none issued and outstanding
   
-
     
-
 
Common stock, $.001 par value, authorized 150,000,000 shares;
               
12,711,986 shares issued at June 30, 2015 and 12,362,336 shares issued at December 31, 2014
   
13
     
12
 
Paid-in capital
   
56,632
     
55,920
 
Accumulated deficit
   
(17,826
)    
(14,133
)
                 
Total stockholders’ equity
   
38,819
     
41,799
 
                 
Total liabilities and stockholders’ equity
 
$
98,159
   
$
101,803
 
 
The accompanying notes are an integral part of these condensed consolidated financial statements.

 
2

 
 
STARBOARD RESOURCES, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
(In thousands, except share data)
 
   
Three Months Ended June 30,
   
Six Months Ended June 30,
 
   
2015
   
2014
   
2015
   
2014
 
    Restated           Restated        
                         
Oil, natural gas, and related product sales
 
$
2,527
   
$
5,895
   
$
5,284
   
$
9,702
 
                                 
Expenses
                               
Depreciation, depletion and amortization
   
2,135
     
2,776
     
4,642
     
4,518
 
Lease operating
   
953
     
1,394
     
2,079
     
2,313
 
General and administrative
   
747
     
805
     
2,089
     
1,781
 
Professional fees
   
218
     
240
     
429
     
517
 
Production taxes
   
103
     
229
     
206
     
339
 
Accretion of discount on asset retirement obligation
   
65
     
152
     
128
     
189
 
Exploration
   
19
     
19
     
41
     
33
 
                                 
Total expenses
   
4,240
     
5,615
     
9,614
     
9,690
 
                                 
Operating income (loss)
   
(1,713
)
   
280
     
(4,330
)
   
12
 
                                 
Other income (expense)
                               
Interest expense
   
(973
)
   
(717
)
   
(1,745
)
   
(929
)
Gain (loss) from derivative contracts
   
(647
)
   
115
     
(233
)
   
113
 
Gain on sale of assets, net
   
4
     
719
     
2
     
719
 
Total other income (expense)
   
(1,616)
     
117
     
(1,976
)
   
(97
)
                                 
Income (loss) before income taxes
   
(3,329
)
   
397
     
(6,306
)
   
(85
)
                                 
Income tax benefit / (expense):
                               
Current income tax benefit / (expense)
   
-
     
-
     
-
     
-
 
Deferred income tax benefit / (expense)
   
2,325
     
(141
)
   
2,613
     
84
 
Net income (loss)
 
$
(1,004
)
 
$
256
   
$
(3,693
)
 
$
(1
)
                                 
Net income (loss) per basic and diluted
                               
common share
 
$
(0.08
)
 
$
0.02
   
$
(0.29
)
 
$
0.00
 
                                 
Weighted average basic
                               
common shares outstanding
   
12,711,986
     
12,362,336
     
12,711,986
     
12,362,336
 
                                 
Weighted average diluted
                               
common shares outstanding
   
12,711,986
     
12,711,986
     
12,711,986
     
12,362,336
 
 
The accompanying notes are an integral part of these condensed consolidated financial statements.
 
 
3

 
 
STARBOARD RESOURCES, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
(In thousands, except per share amounts)
 
   
Six Months Ended
June 30,
 
   
2015
   
2014
 
    Restated        
Cash flows from operating activities
           
Net loss
 
$
(3,693
)
 
$
(1
)
Adjustments to reconcile net loss to net cash
               
 provided by operating activities:
               
Depreciation and depletion
   
4,642
     
4,430
 
Deferred income taxes
   
(2,613
)
   
(84
)
Stock-based compensation
   
712
     
600
 
Accretion of asset retirement obligation
   
128
     
189
 
Cash received (paid) for settlement of derivative instruments
   
-
     
(57
)
Unrealized loss (gain) from derivative contracts
   
1,209
     
(113
)
(Gain)on asset sales
   
(2
)
   
(719
)
Amortization of debt issuance costs
   
168
     
88
 
Increase (decrease) in cash attributable to
               
 changes in operating assets and liabilities:
               
Trade receivables
   
841
     
(442
)
Joint interest receivables
   
305
     
(1,337
)
Prepaid expenses and other assets
   
(11
)
   
(64
)
Accounts payable and accrued liabilities
   
(1,109
)
   
(3,080
)
Joint interest revenues payable
   
(77
)
   
692
 
Net cash provided by operating activities
   
500
     
102
 
                 
Cash flows from investing activities
               
Acquisition and development of oil and natural gas properties
   
(1,244
)
   
(8,405
)
Acquisition of White Oak Resources VI, LLC and Permian Atlantis LLC oil and natural gas properties
   
-
     
(17,078
)
Proceeds from sales of oil and natural gas properties
   
7
     
-
 
Oil and natural gas abandonment costs
   
-
     
(3
)
Net cash (used) in investing activities
   
(1,237
)
   
(25,486
)
                 
Cash flows from financing activities
               
Proceeds from notes payable
   
5,500
     
23,560
 
Debt issuance costs
   
(153
)
   
(206
)
Repayments of notes payable
   
(4,448
)
   
(513
)
Deferred offering costs
   
(7)
   
 
(56
)
Net cash provided by financing activities
   
892
     
22,785
 
                 
Net increase (decrease) in cash
   
155
     
(2,599
)
Cash, beginning of period
   
3,574
     
5,794
 
Cash, end of period
 
$
3,729
   
$
3,195
 
 
The accompanying notes are an integral part of these condensed consolidated financial statements.
 
 
4

 
 
STARBOARD RESOURCES, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
(In thousands)
 
   
Six Months Ended June 30,
 
   
2015
   
2014
 
             
Supplemental disclosure of cash flow information
           
Cash paid during the period for interest
 
$
432
   
$
851
 
                 
Supplemental disclosure of non-cash investing transactions
               
Payables related to oil and natural gas capitalized expenditures
 
$
1,916
   
$
523
 
Capitalized asset retirement cost
 
$
-
   
$
843
 
       Settlement of accounts payable through sale of oil and natural gas properties
 
$
-
   
$
3,873
 

The accompanying notes are an integral part of these condensed consolidated financial statements.
 
 
5

 
 
STARBOARD RESOURCES, INC. AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
 
NOTE 1 – RESTATEMENT
 
In November 2015, during the preparation of our condensed financial statements for the nine months ended September 30, 2015, the Company discovered an error in the computation of impairment of Oklahoma properties for the quarterly period ended June 30, 2015.  Specifically, the impairment calculation included in the Company’s financial statements for period ended June 30, 2015 did not take into account previously recorded impairment on the Oklahoma properties resulting in improper recording of $1,350,000 in impairment.  The changes in the impairment resulted in a non-cash reduction of loss to the financial statements.  The Company has determined that the impact of non-cash item on its quarterly financial statements for the quarters ended June 30, 2015 to be sufficiently material to warrant restatement of the Company’s Quarterly Reports on Form 10-Q.
 
The line items that have been amended and restated are set forth below:
 
Balance Sheets
 
   
June 30, 2015
 
   
As Previously
             
   
Reported
   
Adjustment
   
As Restated
 
ASSETS
                 
Oil and natural gas properties, successful efforts method, net of accumulated depletion
  $ 88,955       1,350     $ 90,305  
Total oil and natural gas properties and other equipment, net
                       
Total assets
  $ 96,809       1,350     $ 98,159  
                         
LIABILITIES AND STOCKHOLDERS' EQUITY
                       
Accumulated deficit
  $ (19,176 )     1,350     $ (17,826 )
Total stockholders' equity
    37,469       1,350       38,819  
Total liabilities and stockholders' equity
  $ 96,809       1,350     $ 98,159  
 
 Statements of Operations
 
   
Three Months Ended June 30, 2015
   
Six Months Ended June 30, 2015
 
   
As Previously
               
As Previously
             
   
Reported
   
Adjustment
   
As Restated
   
Reported
   
Adjustment
   
As Restated
 
                                     
Impairment of oil and gas properties
  $ 1,350       (1,350 )   $ -     $ 1,350       (1,350 )   $ -  
Net income (loss)
  $ (2,354 )     1,350     $ (1,004 )   $ (5,043 )     1,350     $ (3,693 )
Net income (loss) per basic and diluted common share
  $ (0.19 )           $ (0.08 )   $ (0.40 )           $ (0.29 )
 
Statements of Cash Flows
 
   
Six Months Ended June 30, 2015
 
   
As Previously
             
   
Reported
   
Adjustment
   
As Restated
 
                   
Net loss
  $ (5,043 )     1,350     $ (3,693 )
Impairment of oil and gas properties
    1,350       (1,350 )   $ -  
 
 
 

 
 
NOTE 2 - NATURE OF OPERATIONS

Starboard Resources LLC was formed in Delaware on June 2, 2011 as a limited liability company to acquire, own, operate, produce, and develop oil and natural gas properties primarily in Texas and Oklahoma. On June 28, 2012, Starboard converted from a Delaware limited liability company to a Delaware C-Corporation and was named Starboard Resources, Inc. (the “Company”). The membership units of Starboard Resources LLC were exchanged on a 1:1 basis for common shares of the Company. On July 28, 2015 we filed with the Securities and Exchange Commission and distributed to stockholders of record a definitive Schedule 14C Information Statement that notified the Company’s stockholders that it was changing its name to Brushy Resources, Inc. and could file the amendment to its certificate of incorporation 20 days or more after the distribution of the Schedule 14C Information Statement.  That Schedule 14C Information Statement was distributed on or about August 4, 2015 and the Company intends to file a Certificate of Amendment to change its name to Brushy Resources, Inc. on or about August 25, 2015.

NOTE 3 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Basis of Presentation

The condensed consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (“GAAP”). Additionally, the accompanying unaudited condensed consolidated financial statements as of June 30, 2015 and for the six months ended June 30, 2015 and 2014 have been prepared in accordance with accounting principles generally accepted in the United States of America for interim financial statements and with the instructions to Form 10-Q, and reflect, in the opinion of management, all adjustments, which are of a normal and recurring nature, necessary for a fair presentation of the results for such periods. Operating results for the six months ended June 30, 2015 are not necessarily indicative of the results that may be expected for the year ending December 31, 2015. Certain information and footnote disclosures normally included in the consolidated financial statements prepared in accordance with U.S. GAAP have been condensed or omitted in this Form 10-Q pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”). These consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto included in our Form 10-K for the year ended December 31, 2014.

Principles of Consolidation

The accompanying condensed consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries, ImPetro Resources, LLC (“ImPetro”) and ImPetro Operating (“Operating”) (Collectively the “Company”). All intercompany transactions and balances have been eliminated in consolidation.

Oil and Gas Natural Gas Properties

The Company uses the successful efforts method of accounting for oil and natural gas producing activities, as further defined under ASC 932, Extractive Activities - Oil and Natural Gas.  Under these provisions, costs to acquire mineral interests in oil and natural gas properties, to drill exploratory wells that find proved reserves, and to drill and equip development wells are capitalized. 

Exploratory drilling costs are capitalized when incurred pending the determination of whether a well has found proved reserves.  A determination of whether a well has found proved reserves is made shortly after drilling is completed.  The determination is based on a process that relies on interpretations of available geologic, geophysic and engineering data.  If a well is determined to be successful, the capitalized drilling costs will be reclassified as part of the cost of the well.  Capitalized costs of producing oil and natural gas interests are depleted on a unit-of-production basis at the field level.

If an exploratory well is determined to be unsuccessful, the capitalized drilling costs are charged to expense in the period the determination is made.  If a determination cannot be made as to whether the reserves that have been found can be classified as proved, the cost of drilling the exploratory well is not carried as an asset for more than one year following completion of drilling.  If, after that year has passed, a determination that proved reserves exist cannot be made, the well is assumed to be impaired and its costs are charged to expense.  Its cost can, however, continue to be capitalized if a sufficient quantity of reserves is discovered in the well to justify its completion as a producing well and the Company is making sufficient progress assessing the reserves and the economic and operating viability of the project.

The carrying value of oil and gas properties is assessed for possible impairment on a field by field basis and on at least an annual basis, or as circumstances warrant, based on geological analysis or changes in proved reserve estimates. When impairment occurs, an adjustment is recorded as a reduction of the asset carrying value. For the six months ended June 30, 2015 and the year December 31, 2014, the Company’s impairment charge was $0 and $4,428,378
 
 
6

 
 
Other Property and Equipment

Other property and equipment, which includes field equipment, vehicles, and office equipment, is stated at cost less accumulated depreciation and amortization.  Depreciation and amortization is computed using the straight-line method over the estimated useful lives of the assets.  Vehicles and office equipment are generally depreciated over a useful life of five years and field equipment is generally depreciated over a useful life of twenty years.


Revenue Recognition and Natural Gas Imbalances

The Company utilizes the accrual method of accounting for natural gas and crude oil revenues, whereby revenues are recognized based on the Company’s net revenue interest in the wells upon delivery to third parties.  The Company will also enter into physical contract sale agreements through its normal operations.

Gas imbalances are accounted for using the sales method.  Under this method, revenues are recognized based on actual volumes of oil and gas sold to purchasers.  However, the Company has no history of significant gas imbalances.

Income Taxes

Deferred income tax assets and liabilities are computed for differences between the financial statement and tax basis of assets and liabilities that will result in future taxable or deductible amounts, based on enacted tax laws and rates applicable to the periods in which the differences are expected to affect taxable income. Valuation allowances are established, when necessary, to reduce deferred income tax assets to the amount expected to be realized.

The Company is required to determine whether its tax positions are more likely than not to be sustained upon examination by the applicable taxing authority, including resolution of any related appeals or litigation processes, based on the technical merits of the position. The tax benefit recognized is measured as the largest amount of benefit that has a greater than fifty percent likelihood of being realized upon ultimate settlement with the relevant taxing authority. De-recognition of a tax benefit previously recognized results in the Company recording a tax liability that increases expense in that period. Based on its analysis, the Company has determined that it has not incurred any liability for unrecognized tax benefits as of June 30, 2015. The Company’s conclusions may be subject to review and adjustment at a later date based on factors including, but not limited to, on-going analyses of and changes to tax laws, regulations and interpretations thereof.

The Company recognizes interest and penalties related to unrecognized tax benefits in interest expense and other expenses, respectively. No interest expense or penalties have been recognized as of June 30, 2015.
 
 Net Income (Loss) Per Common Share

Basic net income (loss) per common share is computed by dividing the net income (loss) attributable to stockholders by the weighted average number of common shares outstanding during the period.  Diluted net income (loss) per common share is calculated in the same manner, but also considers the impact to common shares for the potential dilution from stock options, non-vested share appreciation rights, non-vested restricted shares and warrants. For the six month period ended June 30, 2015, there were 900,000 potentially dilutive non-vested stock options and 2,542,379 warrants. For the six month period ended June 30, 2014, there were 349,650 potentially dilutive non-vested restricted shares and stock options. The potentially dilutive options and warrants, for June 30, 2015, are considered antidilutive since the Company is in a net loss position and thus result in the basic net income (loss) per common share equaling the diluted net income (loss) per common share.
 
Use of Estimates

The preparation of condensed consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the condensed consolidated financial statements and the reported amounts of revenues and expenses during the reporting period.  Actual results could differ from those estimates.

The Company’s estimates of oil and natural gas reserves are, by necessity, projections based on geologic and engineering data, and there are uncertainties inherent in the interpretation of such data as well as the projection of future rates of production and the timing of development expenditures. Reserve engineering is a subjective process of estimating underground accumulations of natural gas and oil that are difficult to measure. The accuracy of any reserve estimate is a function of the quality of available data, engineering and geological interpretation and judgment. Estimates of economically recoverable natural gas and oil reserves and future net cash flows necessarily depend upon a number of variable factors and assumptions, such as historical production from the area compared with production from other producing areas, the assumed effect of regulations by governmental agencies, and assumptions governing future natural gas and oil prices, future operating costs, severance taxes, development costs and workover costs, all of which may in fact vary considerably from actual results. The future drilling costs associated with reserves assigned to prove undeveloped locations may ultimately increase to the extent that these reserves are later determined to be uneconomic. For these reasons, estimates of the economically recoverable quantities of expected natural gas and oil attributable to any particular group of properties, classifications of such reserves based on risk of recovery, and estimates of the future net cash flows may vary substantially. Any significant variance in the assumptions could materially affect the estimated quantity of the reserves, which could affect the carrying value of the Company’s oil and natural gas properties and/or the rate of depletion related to the oil and natural gas properties.
 
 
7

 
 
New Accounting Pronouncement

 In May 2014, the Financial Accounting Standards Board issued a new accounting pronouncement regarding revenue from contracts with customers. This new standard provides guidance on recognizing revenue, including a five step model to determine when revenue recognition is appropriate.  The standard requires that an entity recognizes revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services.  Adoption of the new standard is effective for reporting periods beginning after December 15, 2017 with early adoption not permitted.  The Company is currently evaluating the potential impact that the adoption of this standard will have on its financial position, results of operations, and related disclosures, and will adopt the provisions of this new standard in the first quarter of 2018.


NOTE 4 – FAIR VALUE MEASUREMENTS

The following tables present information about the Company’s financial assets and liabilities measured at fair value as of June 30, 2015 and December 31, 2014:

                     
Balance as of
 
                     
June 30,
 
($ in thousands)
 
Level 1
   
Level 2
   
Level 3
   
2015
 
Assets (at fair value):
                       
Derivative assets (oil collar and put options)
 
$
-
   
$
596
   
$
-
   
$
596
 
                                 
                                 
Liabilities (at fair value):                                
Derivative liabilities (oil collar and put options)
  $ -     $ 39     $ -     $ 39  
 
                     
Balance as of
 
                     
December 31,
 
($ in thousands)
 
Level 1
   
Level 2
   
Level 3
   
2014
 
Assets (at fair value):
                       
Derivative assets (oil put options)
 
$
-
   
$
1,766
   
$
-
   
$
1,766
 

NOTE 5 – PROPERTY ACQUISITION AND SALE

On March 26, 2014 (the “Acquisition Date”), the Company completed the purchase of oil and natural gas leases and leasehold interests (the “Oil and Natural Gas Properties”) from White Oak Resources VI, LLC and Permian Atlantis LLC (collectively the “Seller”) for the purpose of increasing the Company’s oil and natural gas operations in the Permian Basin. The assets acquired are: (a) oil and natural gas leases and leasehold interests in Winkler and Loving Counties in Texas and Lea County, New Mexico; (b) twenty-nine wellbores; and (c) any contracts or agreements related to the foregoing lands, leases and wells. The Oil and Natural Gas Properties include total acreage held by production of 5,160 gross developed acres (1,983.61 net developed acres). Additionally, producing wells and surrounding acreage have been unitized under Texas Railroad Commission regulations. Under the terms of the agreement, the Company purchased the Oil and Natural Gas Properties for $16,803,000 in cash, including before purchase price adjustments.

Subsequent Event

On July 31, 2015, the Company sold all of its Oklahoma properties, which were located in Logan and Kingfisher Counties, Oklahoma, to Remora Petroleum, LP (Austin, TX) for $7,249,390.  The purchaser is not affiliated with any Company officers, directors or material stockholders.
 
The following table summarized the results of operation from the properties sold:
 
 
8

 
 
($ in thousands)
 
Six Month Period Ended June 30, 2015
   
Six Month Period Ended June 30, 2014
 
Oil, natural gas, and related product sales
  $ 1,350     $ 3,046  
Expenses
    269       398  
Operating income
  $ 1,081     $ 2,648  
 
As part of this transaction, the Company entered into the Fifth Amendment to its Credit Agreement with Independent Bank (“Amendment”).  The Amendment provides that $4,000,000 of the purchase price was paid to Independent Bank to pay down its credit facility with Independent Bank.  The Amendment requires that an additional $2,000,000 would be held by Independent Bank in a control account.
 
The Amendment further states that the Credit Agreement’s $21,000,000 borrowing base is reduced to $17,000,000 and that the Company cannot demand further funds under this Credit Agreement until the next redetermination of the borrowing base and the cure of any deficiency loan amount over the adjusted borrowing base.
 
The Amendment also places limits on the use of the $2,000,000 in the control account.  It provides that the control account funds shall be applied, first, to any borrowing base deficiency after redetermination, and second, to any remaining amount on the loan or to the Company in the sole discretion of Independent Bank.  The Amendment also requires the Company to use the funds it has received from the Oklahoma properties transaction (after payment of the $4,000,000 to Independent Bank and the $2,000,000 to the control account) to its outstanding third party accounts payables.
 
NOTE 6 – OIL AND NATURAL GAS PROPERTIES

The following table presents a summary of the Company’s oil and natural gas properties at June 30, 2015 and December 31, 2014:
 
($ in thousands)
 
Six month period Ended
June 30, 2015
   
Year Ended
December 31, 2014
 
Oil and natural gas properties
               
   Proved-developed producing properties
 
$
97,729
   
$
96,691
 
   Proved-developed non-producing properties
   
3,660
     
2,880
 
   Proved-undeveloped properties
   
13,274
     
13,330
 
   Unproved properties
   
2,045
     
1,996
 
   Less: Accumulated depletion
   
(26,403
)
   
(23,131
)
Total oil and natural gas properties, net of  accumulated depletion
 
$
90,305
   
$
91,766
 

NOTE 7 – ASSET RETIREMENT OBLIGATIONS
 
The Company has recognized the fair value of its asset retirement obligations related to the future costs of plugging, abandonment, and remediation of oil and natural gas producing properties.  The present value of the estimated asset retirement obligations has been capitalized as part of the carrying amount of the related oil and natural gas properties.  The liability has been accreted to its present value as of the end of each period.  At June 30, 2015 and December 31, 2014, the Company has determined a range of abandonment dates through March 2061.  The following table represents a reconciliation of the asset retirement obligations:

($ in thousands)
Six month period Ended
June 30, 2015
   
Year Ended
December 31, 2014
 
Asset retirement obligations, beginning of period
 
$
3,606
   
$
2,437
 
Additions  to asset retirement obligation
   
-
     
859
 
Liabilities settled during the period
   
-
     
-
 
Accretion of discount
   
128
     
320
 
Revision of estimate
   
-
     
(10
)
Asset retirement obligations, end of period
 
$
3,734
   
$
3,606
 

The asset retirement liability is measured using primarily Level 3 inputs. The significant unobservable inputs to this fair value measurement include estimates of plugging costs, remediation costs, inflation rate and well life. The inputs are calculated based on historical data as well as current estimated costs.
 
 
9

 

NOTE 8 – GOING PUBLIC DELAY FEE

We entered a “Securities Purchase and Exchange Agreement” dated June 10, 2011, with Longview Marquis Master Fund, L.P., Summerview Marquis Fund, L.P., Longview Marquis Fund, L.P., LMIF Investments, LLC, SMF Investments, LLC, and Summerline Capital Partners, LLC (collectively “Summerline”).  The Agreement provides that the Company, for any reason, does not go public on or before that date that is one hundred fifty days after the June 13, 2011 (the “Going Public Delay Date”), the Company shall pay to each applicable stockholder an aggregate amount equal to the product of (i) such stockholder’s allocation percentage multiplied by (ii) $60,715 (the “Going Public Delay Fee”) on the last business day of each calendar month, for each such calendar month following the Going Public Delay Date through and including the date of going public (the “Going Public Delay Period”). For any partial calendar months during the Going Public Delay Period, the Going Public Delay Fee shall be pro-rated appropriately. For the year ended December 31, 2013, the Company incurred a delay fee of approximately $425,000 which is currently included in accrued liabilities on the accompanying condensed consolidated balance sheets.

Effective August 6, 2013, the Company ceased to incur Going Public Delay Fees due to an effective Form 10 filing.

NOTE 9 – DERIVATIVES

We use derivatives to hedge our oil production.  Our current hedge position consists of put options, of which some have deferred premiums paid at settlement. These contracts and any future hedging arrangements may expose us to risk of financial loss in certain circumstances, including instances where production is less than expected or oil prices increase.  In addition, these arrangements may limit the benefit to us of increases in the price of oil.  Accordingly, our earnings may fluctuate significantly as a result of changes in the fair value of our derivative instrument, which we utilize entirely to hedge our production and do not enter into for speculative purposes. We have not designated the derivative contracts as hedges for accounting purposes, and accordingly, we record the derivative contracts at fair value and recognize changes in fair value in earnings as they occur.

            At June 30, 2015, we had the following open crude oil derivative contracts:
 
         
June 30, 2015
 
         
Volume
 
Floor
Ceilings
 
Purchased Put
   
Fair Value
 
 
Instrument
 
Commodity
 
(bbl/month)
 
Price
Price
 
Option Price
   
(in thousands)
 
July 2015 - October 2015
Put
 
Crude Oil
    6,000           50.00 - 80.00       296  
November 2015 - December 2015
Put
 
Crude Oil
    2,800           80.00       92  
July 2015 - December 2015
Put
 
Crude Oil
    4,000           70.00       203  
January 2016 - March 2016
Put
 
Crude Oil
    1,500           75.00       52  
January 2016 - December 2016
Put
 
Crude Oil
    3,000           50.00       (25 )
January 2016 - December 2016
Collar
 
Crude Oil
    3,000  
      54.00
        79.30
            (61 )
 
The following tables identify the fair value amounts of derivative instruments included in the accompanying consolidated balance sheets as derivative contracts, categorized by primary underlying risk. Balances are presented on a gross basis, prior to the application of the impact of counterparty and collateral netting. The following tables also identify the net gain (loss) amounts included in the accompanying consolidated statements of operations as gain (loss) from derivative contracts.

Fair Value of Derivative Financial Instruments

 
($ in thousands)
 
June 30,
2015
   
December 31, 2014
 
Derivative financial instruments - Current asset
  $ 596     $ 1,699  
Derivative financial instruments - Long-term assets
    -       67  
Derivative financial instruments - Current liabilities
    (39     -  
Derivative financial instruments - Long-term liabilities
    -       -  
Net derivative financial instruments
  $ 557     $ 1,766  

 Effect of Derivative Financial Instruments

($ in thousands)
 
June 30,
2015
   
June 30,
2014
 
Realized gain/(loss) on settlement of derivative contracts
 
$
976
   
$
(57
)
Unrealized gain/(loss) from derivative contracts
   
(1,209
)
   
170
 
Realized/Unrealized gain/(loss) from derivative contracts
 
 $
(233
)
   
113
 
 
 
10

 
 
NOTE 10 – NOTES PAYABLE
 
On June 27, 2013, the Company entered into a credit agreement (“Credit Agreement”) with Independent Bank to borrow up to $100,000,000 at a current rate of 4.00% annum. The Credit Agreement was obtained to fund the development of the Company’s oil and natural gas properties and refinance the prior bank facility.  At June 30, 2015 and December 31, 2014, the Company had approximately $21,000,000 and $22,500,000 in borrowings outstanding under the Credit Agreement, respectively.
 
The Credit Agreement provides for a borrowing base of $21,250,000 as of June 30, 2015, which is re-determined semi-annually and upon requested special redeterminations.  Further, under the April 15, 2015 Amendment to the Credit Agreement, the borrowing base is reduced by $250,000 per month before September 1, 2015 and $350,000 per month thereafter, unless re-determined after 150 days from the date of the Amendment. The Company is obligated to provide Independent Bank an engineering report acceptable to the Bank as of September 1, 2015 showing proven and producing and proven undeveloped oil and gas reserves, discounted present value of future net income for the Company’s oil and gas properties as of September 1, 2015, projections of annual rate of production, gross income and net income relating to these reserves and take-or-pay, prepayment and gas balancing obligations. Additionally, the borrowing base may be adjusted at the financial institution’s discretion which is based in part upon external factors over which the Company has no control. If the re-determined borrowing base were to be less than outstanding borrowings under the Credit Agreement, the Company would be required to repay the deficit. The Company incurs a commitment fee of 0.5% on the unused portion of the credit facility or if less, the borrowing base. The Credit Agreement matures on June 1, 2016.
 
Loans under the Credit Agreement bear interest at the greater of: (1) the prime rate, the annual rate of interest announced by the Wall Street Journal as its “prime rate”, or (2) the floor rate of 4.00%.
 
The Credit Agreement is collateralized by the oil and natural gas properties and contains several restrictive covenants including, among others:  (1) a requirement to maintain a current ratio, of not less than 1.0 to 1.0; (2) a maximum permitted ratio of debt to adjusted EBITDAX of not more than 3.5 to 1.0; (3) a maximum permitted ratio of adjusted EBITDAX to interest expense of not more than 3.0 to 1.0; and (4) a prohibition against incurring debt, subject to permitted exceptions. The Company is not in compliance with its debt covenants at June 30, 2015 however, it is currently working with Independent bank on a waiver for these violations.
 
The Amendment also allows the assignment of an overriding royalty interest as stated in the related amendment to the Intercreditors’ Agreement between Independent Bank, the Company and SOSventures, LLC.
 
The Company is obligated to commence drilling a well in the Crittenden Field within 45 days of the date of the Amendment and a second well in the Crittenden Field within 90 days of the date of the Amendment.
 
The Amendment includes a suspension of Independent Bank’s rights to exercise its remedies prior to 150 days after the Amendment caused solely by the occurrence of a borrowing base deficiency. It also includes a suspension of Independent Bank’s obligation to extend loans, letters of credit or renewals or extensions of letters of credit agreement under the Credit Agreement for 150 days after the date of the Amendment.
 
The Amendment further provides that the Company will be required execute and maintain crude oil hedges on a minimum of 80.0% of Projected Production on a rolling 20 months basis.
 
The Company repaid its term loan at closing with both principal and interest, repaid the note principal to reduce the note to no more than the borrowing base, including the repayment of interest, pay certain fees, deposit $5,000,000 into a special account and SOSventures provided an additional $2,000,000 of availability under the Subordinated credit facility with SOSventures, LLC for drilling capital.

 On March 26, 2014, the Company entered into a term loan agreement with Independent Bank totaling $4,000,000 at a current rate of 6.75% annum.  The agreement was obtained to fund the development of the Company’s acquisition of oil and natural gas properties. The term loan had an outstanding balance of approximately $2,941,000 outstanding at December 31, 2014. The term loan was paid in full on April 15, 2015.

NOTE 11 – STOCK BASED COMPENSATION AND CONDITIONAL PERFORMANCE AWARDS
 
On April 1, 2012, the Company entered into employment agreements (the “Employment Agreement”) which provided a restricted stock grant and a conditional performance award to key members of management.
 
The restricted stock grant of 349,650 shares had a grant date fair value of $10.00 per share and vests in full upon the earlier of an initial public offering (“IPO”) which includes the sale of shares to the public, a business combination whereas 50% or more of the voting power is transferred to the new owners, or March 1, 2015.  Those 349,650 shares were earned by the employee recipients and issued to them during the three month period ending March 31, 2015.
 
 
11

 

During the six months ended June 30, 2015 and 2014, the Company incurred a stock-based compensation expense of approximately $300,000 and $600,000, respectively, related to the restricted stock grant, which is included in the accompanying condensed consolidated statements of operations in general and administrative expenses.   

Additionally, the employment agreements provide for a conditional performance award where if an IPO occurs, the employee will receive: (1) a cash payment of 1% of the difference between the Company market capital and the book value at the time of the IPO, (2) common stock options to purchase 1.0% of the fully-diluted capital stock as of the IPO date and IPO price which will vest over a four year period and contain a cashless exercise, (3) common stock options to purchase 1.0% of the fully-diluted capital stock as of the 2nd anniversary of the IPO date at the closing price of the common stock on the 2nd anniversary date of the IPO and will vest six years after the grant and contain a cashless exercise.  As of the six month period ended June 30, 2015 and 2014, the conditional performance feature is not probable and as such, no compensation expense related to the conditional performance feature has been recognized.
 
On August 30, 2014, the Company amended and restated the Employment Agreement which provided for additional stock options.
 
The equity award of options to purchase 900,000 shares at the exercise price of $4.75 per share and vesting over three years from September 4, 2014 with a one-year cliff (in respect of 300,000 shares) and monthly vesting thereafter of 25,000 shares over the remaining two years. During the six months ended June 30, 2015, the Company incurred a stock-based compensation expense of approximately $413,000 related to stock option, which is included in the accompanying condensed consolidated statements of operations in general and administrative expenses.  As of June 30, 2015, there was approximately $1,800,000 of unrecognized stock-based compensation related to the non-vested stock options.
 
The assumptions used in the Black-Scholes Option Pricing Model for the stock options granted were as follows:

   
2014
 
Risk-free interest rate
   
1.87
%
Expected volatility of common stock
   
92
%
Dividend yield
 
$
0.00
 
Expected life of options
 
5.72 years
 
 
The following table summarizes information about stock option activity and related information for the six months ended June 30, 2015
 
   
Number of Shares Underlying Options
   
Weighted Average Exercise Price per Share
   
Weighted Average Grant Date Fair Value per Share
   
Weighted Average Remaining Contractual Life (in Years)
 
Outstanding at December 31, 2014
   
900,000
   
$
-
   
$
-
     
-
 
Granted
   
-
     
4.75
     
2.75
     
10
 
Exercised
   
-
     
-
     
-
     
-
 
Forfeited
   
-
     
-
     
-
     
-
 
Outstanding at June 30, 2015
   
900,000
    $
4.75
    $
2.75
     
10
 
Exercisable at June 30, 2015
   
-
     
-
     
-
     
-
 
 
NOTE 12 – RELATED PARTY TRANSACTIONS

Related Party Credit Agreement
 
On March 29, 2013, the Company entered a credit agreement with SOSventures, LLC providing for a term loan through February 16, 2016 in an amount up to $10,000,000 at a 17.00% interest rate through March 29, 2014 and 22.00% interest rate thereafter.   The Company may not incur further indebtedness beyond this loan and the Credit Agreement without the consent of SOSventures, until such time as the SOSventures loan is fully repaid.
 
On May 30, 2014, the Company amended its credit agreement with SOSventures, LLC providing for a term loan through February 1, 2016 in an amount up to $20,000,000 at an 18.00% interest rate.  As of June 30, 2015, the Company has borrowed $15,500,000 under this agreement.
 
The term loan is collateralized under a second lien by the oil and natural gas properties and contains several restrictive covenants including, among others:  (1) a requirement to maintain a current ratio, of not less than 1.0 to 1.0; (2) a maximum permitted ratio of debt to adjusted EBITDAX of not more than 4.0 to 1.0; (3) a maximum permitted ratio of adjusted EBITDAX to interest expense of not more than 3.0 to 1.0; and (4) a prohibition against incurring debt, subject to permitted exceptions.
 
 
12

 
 
On April 15, 2015 the Company entered the Second Amendment to the First Amendment and Restated Credit Agreement and several other agreements which provided that SOSventures, LLC will provide an additional $3 million on its credit facility to be used to pay the outstanding balance of the Independent Bank term loan, pay on the Independent Bank credit facility and for operations. Additionally, SOSventures deposit $5 million into a controlled account at Independent Bank to be used to drill two wells in the Crittenden Field referenced in the Independent Bank Amendment. Further, SOSventures, LLC will receive interest on its credit facility and a 1% overriding royalty interest on the Company’s Crittenden Field properties effective upon the drilling of these two oil and gas wells until such time as the credit facility is repaid. Finally, SOSventures, LLC shall receive warrants to purchase 2,542,397 of the Company's common shares for $1.00 per share with a two-year term. If fully purchased 2,542,397 would equal 20% of our currently outstanding common stock.

NOTE 13 – LEGAL PROCEEDINGS
 
From time-to-time, the Company may become subject to proceedings, lawsuits and other claims in the ordinary course of business including proceedings related to environmental and other matters. Such matters are subject to many uncertainties, and outcomes are not predictable with assurance.
 
The Company is subject to various possible contingencies that arise primarily from interpretation of federal and state laws and regulations affecting the oil and natural gas industry. Such contingencies include differing interpretations as to the prices at which oil and natural gas sales may be made, the prices at which royalty owners may be paid for production from their leases, environmental issues and other matters. Although management believes that it has complied with the various laws and regulations, administrative rulings and interpretations thereof, adjustments could be required as new interpretations and regulations are issued. In addition, environmental matters are subject to regulation by various federal and state agencies. 

Shareholder Lawsuit

On April 17, 2015, the Company was served with a lawsuit filed in Bexar County, Texas by William F. Pettinati, Jr., Nicholas Garofolo, Sigma Gas Barbastella Fund and Sigma Gas Antrozous Fund against Starboard Resources, Inc., its directors, its Chief Operating Officer, Edward Shaw, its former Chief Financial Officer, Eric Alfuth, our stockholder, Bradford Higgins, and Sean O’Sullivan, the managing director of our stockholder, SOSventures, LLC.   Mr. Pettinati, Mr. Garofalo and the Sigma Gas Antrozous Fund are stockholders.  Mr. Pettinati owns 145,112 shares, Mr. Garofalo owns 226,680 common stock shares and Sigma Gas Antrozous Fund owns 44,610 common stock shares. Combined these stockholders account for approximately 3.3% of our outstanding common stock.  These stockholders became our stockholders in February 2014.
 
The Plaintiffs allege several derivative and direct causes of action, many of which relate to alleged actions that pre-date their becoming stockholders in February 2014.  These derivative claims include, breach of fiduciary duty, waste of corporate assets, concerted action and conspiracy, joint enterprise, agency, alter ego, exemplary damages, and unjust enrichment. The direct claims include, breach of fiduciary duty, conversion, shareholder oppression, concerted action and conspiracy, declaratory judgment that the distribution of stock to the plaintiffs was invalid, joint enterprise, agency, alter ego, exemplary damages, concerted action and conspiracy and failure to allow for inspection of books and records.
 
Many of the allegations relate to events that allegedly happened before the plaintiffs became stockholders, including the distributions from certain partnerships that led to the Plaintiffs becoming stockholders in February 2014.  For actions after February 2014, Plaintiffs complain that our common stock still lacks a trading venue, that a books and records request was not honored, that we “delayed” our public offering, that SOSventures LLC had allegedly taken steps to “foreclose” on our assets under our subordinated credit agreement with SOSventures, LLC and that we filed for an extension to the filing date for our Form 10-K for the year ending December 31, 2014.
 
The matter is styled Sigma Barbastella Fund et al v. Charles S. Henry, III et al. and it is Cause No. 20105-CI-05672 in the 224th District Court in Bexar County, Texas.
 
NOTE 14 – SUBSEQUENT EVENT
 
In November 2015, the Company discovered an error in the impairment taken on the Oklahoma properties sold in July 2015.  The Company determined that the impact of this impairment was sufficiently material to warrant restatement of the financial results contained in the Company’s Quarterly Reports of Form 10-Q for June 30, 2015. (See Note 1 – Restatement).
 
 
13

 
 
Item 2— Management’s Discussion and Analysis of Financial Condition and Results of Operations
 
The following discussion and analysis should be read in conjunction with the condensed consolidated financial statements and the notes thereto included elsewhere in this Quarterly Report on Form 10-Q and with our audited consolidated financial statements included in our 10-K filed under the Securities Act of 1934, as amended, with the Securities and Exchange Commission on April 16, 2015.  Our discussion and analysis includes forward-looking information that involves risks and uncertainties, and should be read in conjunction with the below section entitled “Forward-Looking Statements.”  For a discussion about the risks and uncertainties that could cause our actual results to be materially different than our forward-looking statements, see Part II. Item 1A. “Risk Factors.”
 
In this Quarterly Report on Form 10-Q, references to “we,” “our” or “the Company” refer to  Brushy  Resources Inc. and its subsidiaries.

Forward-Looking Statements

This Quarterly Report includes “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward-looking statements are statements other than historical fact and give our current expectations or forecasts of future events. They may include estimates of natural gas and oil reserves, expected natural gas and oil production and future expenses, assumptions regarding future natural gas and oil prices, planned capital expenditures, and anticipated asset acquisitions and sales, as well as statements concerning anticipated cash flow and liquidity, business strategy and other plans and objectives for future operations.
 
Although we believe the expectations and forecasts reflected in these and other forward-looking statements are reasonable, we can give no assurance they will prove to have been correct. They can be affected by inaccurate assumptions or by known or unknown risks and uncertainties. Factors that could cause actual results to differ materially from expected results include, but are not limited to: any statements regarding personnel, business strategy, estimated current and future net reserves and present values of such reserves, drilling and completion of wells including our identified locations, financial strategy, budget projections, operating results, marketing and realized prices for oil, natural gas and natural gas liquids, timing and amount of future production of oil and natural gas, availability and cost of drilling and production equipment, availability and cost of oilfield labor, the amount, nature and timing of capital expenditures, including future development costs, our ability to fund our 2014 and 2015 capital expenditure budget, liquidity, capital resources, the cost and availability of transportation of our hydrocarbon products, available refinery capacity, amount of stockpiles of hydrocarbon products, the cost and availability of competing sources of energy such as wind, solar, nuclear and hydro energy, technology developments affecting users of hydrocarbon products, such as electric cars, government transportation policies, availability and terms of capital, development results from our identified drilling locations, property acquisitions, property development and operating costs, general economic conditions, the commodity price environment, the effectiveness and extent of our risk management activities, our insurance coverage, estimates of future potential impairments, environmental liabilities, technology, counterparty credit risk, government regulation of and tax treatment for the oil and gas industry, non-historical plans, objectives, expectations and intentions contained in this report, future revenues, future costs and expenses, earnings, earnings per share, margins, cash flows, liquidity and dividends. Important factors which may affect the actual results include, but are not limited to, the resolution of the litigation involving Giddings Oil & Gas LP, Hunton Oil Partners LP and Asym Energy Fund III LP, political developments, market and economic conditions, changes in raw material, transportation and energy costs, inflation, industry competition, lack of availability of drilling and production equipment and services, environmental risks, drilling and other operating risks, regulatory changes, the uncertainty inherent in estimating oil and natural gas reserves and in projecting future rates of production, cash flow and access to capital, the timing of development expenditures, cost of services, service and equipment providers and the ability to execute and realize the expected benefits from strategic initiatives, including revenue and reserve growth plans, mergers and acquisitions and their integration, changes in financial markets and changing legislation and regulations, including changes in tax law or tax regulations.

Reserve engineering is a process of estimating underground accumulations of oil and natural gas that cannot be measured in an exact way. The accuracy of any reserve estimate depends on the quality of available data, the interpretation of such data and price and cost assumptions made by reservoir engineers. In addition, the results of drilling, testing and production activities may justify revisions of estimates that were made previously. If significant, such revisions would change the schedule of any further production and development drilling. Accordingly, reserve estimates may differ significantly from the quantities of oil and natural gas that are ultimately recovered.

We caution you not to place undue reliance on these forward-looking statements, which speak only as of the date of this Quarterly Report, and we undertake no obligation to update this information. Should one or more of the risks or uncertainties described in this report occur, or should underlying assumptions prove incorrect, our actual results and plans could differ materially from those expressed in any forward-looking statements.  All forward-looking statements, expressed or implied, included in this report are expressly qualified in their entirety by this cautionary statement. This cautionary statement should also be considered in connection with any subsequent written or oral forward-looking statements that we or persons acting on our behalf may issue. All forward-looking statements in this report are expressly qualified by the statements in this section to reflect events or circumstances after the date of this report. Forward-looking statements are not guarantees of future performance and actual results may differ significantly from the results discussed in the forward-looking statements. We assume no obligation to revise or update any forward-looking statements for any reason, except as required by law.
 
 
14

 
 
We urge you to carefully review and consider the disclosures made in this Quarterly Report and our other filings with the Securities and Exchange Commission that attempt to advise interested parties of the risks and factors that may affect our business.
 
Restatement
 
In November 2015, during the preparation of our condensed financial statements, the Company discovered an error in the computation of impairment of Oklahoma properties for the quarterly period ended June 30, 2015.  Specifically, the impairment calculation included in the Company’s financial statements for period ended June 30, 2015 did not take into account previously recorded impairment on the Oklahoma properties resulting in improper recording of $1,350,000 in impairment.  The changes in the impairment resulted in a non-cash reduction of loss to the financial statements.  The Company has determined that the impact of non-cash item on its quarterly financial statements for the quarters ended June 30, 2015 to be sufficiently material to warrant restatement of the Company’s Quarterly Reports on Form 10-Q.
 
Overview
 
Brushy Resources, Inc.  is an independent energy company engaged primarily in the exploration for, and development of, natural gas and crude oil reserves. We generate our revenues and cash flows from two primary sources: investing activities and the proceeds from the sale of oil and gas production on properties we hold or participate in.
 
As of August 10, 2015, we owned interests in 119 producing oil and natural gas wells. We operate 116 or 97% of those wells. Our oil and natural gas production for 2014 consisted of 180,898 bbls of oil and 779,012 Mcf of gas.  
 
We began 2014 with estimated proved reserves of 5,091 MBOE and ended the year with 6,264 MBOE.
 
 Strategy
 
We produce from operated oil and natural gas wells in the liquids rich, oil-bearing window of the Eagle Ford trend of South Texas and the nearby, oil-prone Giddings field where in combination we control 16,189 gross acres (15,880 net acres). We also completed a transaction to acquire acreage in West Texas, which we call the Crittenden Field and where we control 5,160 gross acres (2,759 net acres). In addition, we have material non-operated working interests in producing properties and conventional prospects located throughout Logan and McClain counties in Oklahoma, which account for 5,055 gross acres (1,229 net acres). The combined reserve base and net production are each over 70% oil-weighted and are currently approximately 82% held by production.
 
Our total proved reserves, based on our January 1, 2015 independent reserve estimate report, were 5,788 MBOE, consisting of 10,771 MMcf of natural gas, 3,993 Mbbl of oil. The PV-10 of our proved reserves at January 1, 2015 was $128.4 million based on the average of the beginning of each month prices through December 2014 of $95.28 per Bbl for oil and condensate and $4.36 per MMBtu for natural.  At January 1, 2015, 23% of our estimated proved reserves were proved developed reserves and 69% of our estimated proved reserves were oil and condensate.  Our average daily production for the six month period ending June 30, 2015 was 914 BOE per day.
 
PV-10 estimated proved reserves is a non-GAAP financial measure as defined in Item 10(e) of Regulation S-K and is defined on page 32 of the annual report on Form 10-K. Reconciliation to the most directly comparable GAAP financial measure (standardized measure of discounted future net cash flows) is found in the table on page 33 of the annual report on Form 10-K.  We believe that PV-10 value provides useful information to investors because it is widely used by professional analysts and sophisticated investors in evaluating oil and natural gas companies.
 
At January 1, 2015, based on the reserves estimated by our independent reservoir engineers, we had 5,788 MBOE of estimated proved reserves with a PV-10 of $128.4 million. At January 1, 2015, 23% of our estimated proved reserves were proved developed reserves and 69% of our estimated proved reserves were oil and condensate. We grew our average daily production 76% from 563 BOE per day at year-end 2013 to 990 BOE per day at year-end 2014.
 
As part of this strategy, we focus on the following areas:
 
Bigfoot - Texas
 
We control about 3,000 gross acres across Frio and Atascosa counties in southern Texas, comprising less than 1% of our total proved reserves.
 
 Giddings – Bastrop - Texas

Giddings is our largest acreage position with just over 13,000 gross acres located within the Eagle Ford trend.  Our acreage is spread across Bastrop, Burleson, Brazos, Fayette, Lee, and Gonzales counties.  From a reserve perspective, Giddings comprises the largest portion of our total proved reserves at 81%. 
 
 
15

 
 
Crittenden - Winkler County - Texas

In Winkler County we control about 5,160 gross acres. Our position comprises 19% of our total proved reserves.
 
Results of Operations

Our revenue is principally derived from the sale of oil and natural gas and generally attributable to working interests owned and held directly by us in wells on producing oil and gas properties (which generate monthly revenue to the extent such wells produce natural gas and oil) and carried working interests in such wells (which also generate monthly revenue to the extent such wells produce natural gas and oil), as well as overriding royalty interests and reversionary interests (which may generate additional monthly revenue to the extent such wells produce natural gas and oil).

Total Revenues. Total revenues decreased $4,418 thousand to $5,284 thousand for the six months ended June 30, 2015 from $9,702 thousand for the six months ended June 30, 2014, driven primarily by decrease in oil and natural gas price. Our average sales price received for natural gas decreased to $3.63 per Mcf for the six months ending June 30, 2015 from $4.75 per Mcf for the same period in 2014. Our average sales price received for oil decreased to $49.92 per bbl for the six months ending June 30, 2015 from $95.31 per bbl for the same period in 2014. Changes in natural gas and oil prices can significantly impact our natural gas and oil sales and related cash flows. Lower prices may materially adversely affect the sales prices we receive and our revenues and cash flow.

  Total natural gas and oil production for the six months ending June 30, 2015 consisted of 454,581 Mcf of natural gas and 81,900 bbls of oil, as compared to total natural gas and oil production for six months ending June 30, 2014, which consisted of 313,931 Mcf of natural gas and 79,328 bbls of oil.

Costs and Expenses. Total costs and expenses (excluding depreciation, depletion, and impairment) increased $1,512 thousand to $6,781 thousand for the six months ending June 30, 2015 from $5,269 thousand for the same period in 2014, due to increased production expenses associated with the Crittenden field acquisition and to increased interest expense derived from our increased debt.  This increased debt includes debt incurred to finance our March 2014 purchase of the White Oak Resources VI, LLC and Permian Atlantis LLC oil and natural gas properties.  Lease operating expenses decreased $234 thousand to $2,079 thousand for the six months ending June 30, 2015 from $2,313 thousand for the same period in 2014.  General and administrative expenses and professional fees increased $220 thousand to $2,518 thousand for the six month period ending June 30, 2015 from $2,298 thousand for the same period in 2014, due primarily to increased staffing, legal and administrative due to greater production activity. Depletion and depreciation expense increased to $4,809 thousand for the six month period ending June 30, 2015 from $4,518 thousand for the same period in 2014, due primarily to increased depletion expenses associated with new property acquisitions and increased sales of our oil and gas production.

Net Income. Net loss was ($3,693) thousand, or ($0.29) per basic and diluted common share, for the six month period ending June 30, 2015 as compared to ($1) thousand, or ($0.0) per  basic and diluted common share, for the same period in 2014. The increase in net loss was attributable primarily to lower oil and natural gas price and increase in depletion expenses.   
 
Liquidity and Capital Resources
 
During the six months ended June 30, 2015 net cash flow provided by operating activities increased by $398 thousand from $102 thousand for the six months ended June 30, 2014 to $500 thousand for the six months ending June 30, 2015.   Changes in cash flows from operations are largely due to the same factors that affect our net income, excluding various non-cash items such as depreciation, depletion and amortization and deferred income taxes. For example, changes in production volumes and market prices for natural gas and oil directly impact the level of our cash flow from operations. See the discussion under "Results of Operations."

Cash outflow from investing activities decreased by $24,249 thousand from the six months ending June 30, 2015 from the same period last year.  The decrease was due to cash outflow of $1,244 thousand used to purchase oil and natural gas properties during the six months ending June 30, 2015 as compared to $25,486 thousand for the same period in 2014.

Net cash provided by financing activities was $892 thousand for the six month period ending June 30, 2015, compared to $22,785 thousand for the six month period ending June 30, 2014. These financing activities primarily reflect refinancing of the term loan for the six months ended June 30, 2015 compared to proceeds from loans for the six month period ending June 30, 2014.
  
    As of June 30, 2015, we had a working capital deficit of $38,617 thousand, which consisted $5,925 thousand of current assets offset by $44,542 thousand of current liabilities. Current assets as of June 30, 2015 included cash of $3,729 thousand and accounts receivable of $1,019 thousand compared to cash of $3,574 thousand and accounts receivable of $1,860 thousand at December 31, 2014. Current liabilities as of June 30, 2015 included accounts payable and accrued liabilities of $5,557 thousand and revenue payable of $752 thousand as compared to accounts payable and accrued liabilities of $5,835 and revenue payable of $829 at December 31, 2014. Included in the current liabilities are the Independent Bank note of $21,021 thousand and SOSventure note and interest of $16,768 thousand as of June 30, 2015.
 
 
16

 

Our primary sources of liquidity are cash provided by operating activities, a subordinated credit facility, sales of non-core properties and access to capital markets.
 
The consolidated financial statements continue to reflect an ongoing drilling program which amounted to $1,244 thousand during the six month period ending June 30, 2015. On April 15, 2015 we obtained the capital to drill two new wells in the Crittenden Field through are amended agreements with SOSventures, LLC. Our capital program is designed to increase production through exploration and workovers within our fields and through joint venture programs. This strategy will involve industry partners in these efforts so as to reduce our upfront cash requirements and reduce risk dollars expended.
  
Although we typically retain a significant degree of control over the timing of our capital expenditures, we may not always be able to defer or accelerate certain capital expenditures to address any potential liquidity issues. In addition, changes in drilling and field operating costs, drilling results that alter planned development schedules, acquisitions or other factors could cause us to revise our drilling program, which is largely discretionary.
   
 Senior Secured Credit Facility with Independent Bank
 
On June 27, 2013 we entered into a senior secured credit facility from Independent Bank, providing for a $100.0 million revolving credit facility, subject to scheduled or elective collateral borrowing base redeterminations based on our oil and natural gas reserves. The credit facility matures on June 1, 2016.  As of June 30, 2015, our borrowing base was $23.5 million.  The outstanding borrowings bear interest at a rate that is currently based on the prime with a 4.00% floor.  We also must pay an unused commitment fee of 0.5% per year on the undrawn amount of the borrowing base.  As of June 30, 2015 we have borrowed approximately $21 million on the credit facility.
 
On April 15, 2015 we entered into the Fourth Amendment to the Credit Agreement with Independent Bank (“Amendment”),. The agreement provides that the borrowing base is $21,750,000 as of the date of the Amendment that will be reduced by $250,000 per month before September 1, 2015 and $350,000 per month thereafter, unless re-determined after 150 days from the date of the Amendment. The Company is obligated to provide Independent Bank an engineering report acceptable to the Bank before September 1, 2015 showing proven and producing and proven undeveloped oil and gas reserves, discounted present value of future net income for the Company’s oil and gas properties as of September 1, 2015, projections of annual rate of production, gross income and net income relating to these reserves and take-or-pay, prepayment and gas balancing obligations. Forrest Garb & Associates is deemed to be acceptable to the Bank for an engineering report.

The Amendment also allows the assignment of an overriding royalty interest as stated in the related amendment to the Intercreditors’ Agreement between Independent Bank, the Company and SOSventures, LLC.

The Company is obligated to commence drilling a well in the Crittenden Field within 45 days of the date of the Amendment and a second well in the Crittenden Field within 90 days of the date of the Amendment.
 
17

 

The April 15, 2015 Amendment also requires us to obtain the following hedges.
 
 
Period
Commodity
Hedge Product
Bbl Vol (Per Month)
Price
 
% Hedge
Average Floor PCrice
                 
 
2015
         
2015
 
March '15 - Oct '15
Crude
Swap
2,200 bbl
$77.00
 
84.5%  (includes executed and required hedges)
$72.60   (includes executed and required hedges)
 
March '15 - Dec '15
Crude
Put
4,000 bbl
$70.00
 
 
March '15 - Dec '15
Crude
Put
2,800 bbl
$80.00
 
Additional Required
March '15 - Oct '15
Crude
Put, Collar, Swap
1,000 bbl
$50.00 Floor
 
                 
 
2016
         
2016
 
Jan. '16 - Mar '16
Crude
Swap
1.500 bbl
$75.00
 
83.7%  (includes executed and required hedges)
 $53.35  (includes executed and required hedges)
 
Calendar 2016
Crude
Collar
3,000 bbl
$54.00
 
Additional Required
Calendar 2016
Crude
Put, Collar, Swap
3,000 bbl
$50.00 Floor
 
 
On July 31, 2015, we sold all of our Oklahoma properties, which were located in Logan and Kingfisher Counties, Oklahoma, to Remora Petroleum, LP for $7,249,390.  As part of this transaction, the Company entered into the Fifth Amendment to its Credit Agreement with Independent Bank (“Amendment”).  (Exhibit 10.6.16). The Amendment provides that $4,000,000 of the purchase price was paid to Independent Bank to pay down its credit facility with Independent Bank.  The Amendment requires that an additional $2,000,000 would be held by Independent Bank in a control account.
 
The Amendment further states that the Credit Agreement’s $21,000,000 borrowing base is reduced to $17,000,000 and that the Company cannot demand further funds under this Credit Agreement until the next redetermination of the borrowing base and the cure of any deficiency loan amount over the adjusted borrowing base.
 
The Amendment also places limits on the use of the $2,000,000 in the control account.  It provides that the control account funds shall be applied, first, to any borrowing base deficiency after redetermination, and second, to any remaining amount on the loan or to the Company in the sole discretion of Independent Bank.  The Amendment also requires the Company to use the funds it has received from the Oklahoma properties transaction (after payment of the $4,000,000 to Independent Bank and the $2,000,000 to the control account) to its outstanding third party accounts payables.

We expect that Independent Bank will make a new determination of our borrowing base under the credit facility before September 30, 2015 based on the impact of lower oil and gas prices on our proved developed reserves.  If our then current loan balance, less the $2,000,000 in the control account, exceeds such new borrowing base, we will be required to promptly pay cash to reduce our loan amount to the approved borrowing base.  If this happens we may need to seek other sources of liquidity in the form of debt or equity.
 
On March 26, 2014, we entered into a term loan agreement with Independent Bank totaling $4,000,000 at a current rate of 6.75% per annum. The Company has repaid its term loan at closing on April 15, 2015 with both principal and interest. It also repaid the note principal to reduce the note to no more than the borrowing base, including the repayment of interest, payment of certain fees, deposited $5,000,000 into a special account and deliver a commitment letter from SOSventures to provide an additional $2,000,000 of availability under the Subordinated credit facility with SOSventures, LLC for drilling capital.

 Subordinated Credit Facility with SOSventures, LLC
 
On June 3, 2014 we agreed to amend our credit agreement with SOSventures, LLC, originally entered into on July 25, 2013, providing for a term loan through February 16, 2016 in an amount up to $20,000,000 at an 18.00% interest rate for drilling activities.  The loan under this agreement is secured by a second lien on our assets.

The SOSventures, LLC credit agreement requires us to maintain certain financial ratios.  First, we must maintain an interest coverage ratio of 3:1 at the end of each quarter so that our consolidated net income less our fees under the credit facility, lender expenses, non-cash charges relating to the hedge agreements, interest, income taxes, depreciation, depletion, amortization, exploration expenditures and costs and other non-cash charges (netted for noncash income) (“EBITDAX”) is greater than 3 times our interest expense under the credit facility.  Second, we must maintain a debt to EBITDAX ratio of less than 3.5:1 at the end of each quarter. Third, we must maintain a current ratio of greater than 1:1 at the end of each quarter, meaning that our consolidated current assets (including the unused amount of the credit facility by excluding non-cash assets under ASC 410 and 815) must be greater than our consolidated current liabilities (excluding non-cash obligations under ASC 410 and 815 and current maturities under the credit facility.)
 
 
18

 

The credit agreement prevents us from incurring indebtedness to banks or lenders, other than Independent Bank, without the consent of SOSventures, LLC. It also prevents us from incurring most contingent obligations or liens (other than to Independent Bank). It restricts our ability to pay dividends, issue options and warrants and repurchase our common stock shares. The options and warrants limitations do not apply to equity compensation plans.

On April 15, 2015 we entered the Second Amendment to the First Amendment and Restated Credit Agreement and several other agreements which provided that SOSventures, LLC will provide an additional $3 million on its credit facility to be used to pay the outstanding balance of the Independent Bank term loan, pay on the Independent Bank credit facility and for operations. Additionally, SOSventures deposit $5 million into a controlled account at Independent Bank to be used to drill two wells in the Crittenden Field referenced in the Independent Bank Amendment. Further, SOSventures, LLC will receive interest on its credit facility and a 1% overriding royalty interest on the Company’s Crittenden Field properties effective upon the drilling of these two oil and gas wells until such time as the credit facility is repaid. Finally, SOSventures, LLC shall receive warrants to purchase 2,542,397 of our common shares for $1.00 per share with a two-year term. If fully purchased 2,542,397 would equal 20% of our currently outstanding common stock.  

As of June 30, 2015, we have approximately $16 million drawn against the SOSventures, LLC credit facility.  As of August 12, 2015 we have an approximate $20 million balance on the SOSventures, LLC credit facility.  The SOSventures, LLC borrowing base is also subject to possible redetermination and corresponding liquidity issues as stated above in connection with the Independent Bank.

Hedging Activities
 
Our current hedge position consists of put options. These contracts and any future hedging arrangements may expose us to risk of financial loss in certain circumstances, including instances where production is less than expected or oil prices increase.  In addition, these arrangements may limit the benefit to us of increases in the price of oil.  Accordingly, our earnings may fluctuate significantly as a result of changes in the fair value of our derivative instrument, which we use entirely to hedge our production and do not enter into for speculative purposes.
 
At June 30, 2015, we had the following open crude oil derivative contracts:
 
 
  
     
June 30, 2015
 
Instrument
 
Commodity
 
Volume
(bbl / month)
 
Floor
Price
Ceilings
Price
 
Purchased Put Option
Price
July 2015 – October 2015
Put
 
Crude Oil
   
6,000
       
50.00 – 80.00
November 2015 – December 2015
Put
 
Crude Oil
   
2,800
       
80.00
April 2015 – December 2015
Put
 
Crude Oil
   
4,000
       
70.00
January 2016 – March 2016
Put
 
Crude Oil
   
1,500
       
75.00
January 2016 – December 2016
Collar
 
Crude Oil
   
3,000
 
54.00
 
7.93
 
January 2016 – March 2016
Put
 
Crude Oil
   
3,000
       
50.00

Outlook

Our ability to meet our debt covenants and our capacity to incur additional indebtedness will depend on our future performance, which will be affected by financial, business, economic, regulatory and other factors. For example, lower oil and natural gas prices could result in a redetermination of the borrowing base under our Bank Credit Facility and SOSventures, LLC.  Indeed, our borrowing base with Independent Bank is slated for redetermination in the near future using a reserve estimate as of September 1, 2015.  Credit Agreement at a lower level and reduce our adjusted consolidated EBITDA, and thus could reduce our ability to incur indebtedness and may requires us to sell assets to pay down the credit facility. Investing in undeveloped acreage, coupled with our drilling plans, may also impact our near-term ability to comply with our debt covenants. Of course, over the longer term, we expect that our strategy and our investments will result in increased production and reserves, lower lease operating costs and more abundant drilling opportunities. As a consequence, we constantly monitor our liquidity and capital resources, endeavor to anticipate potential covenant compliance issues and work with the lenders under our Bank Credit Facility and SOSventures, LLC Credit Agreement to address any such issues ahead of time. 

If, in the future, we are unable to comply with these covenants and the lenders under our Bank Credit Facility and SOSventures, LLC Credit Agreement are unwilling to provide us with covenant flexibility, we may be forced to repay or refinance amounts then outstanding under the Bank Credit Facility and SOSventures, LLC Credit Agreement and seek alternative sources of capital to fund our business and anticipated capital expenditures. In the event that we are unable to access sufficient capital to fund our business and planned capital expenditures, we may be required to curtail our drilling, development, land acquisition and other activities, which could result in a decrease in our production of oil and natural gas, may be subject to forfeitures of leasehold interests to the extent we are unable or unwilling to renew them, and may be forced to sell some of our assets on an untimely or unfavorable basis, each of which could adversely affect our results of operations and financial condition. Further, the failure to comply with the restrictive covenants relating to our indebtedness could result in the declaration of a default and cross default under the instruments governing our indebtedness, potentially resulting in acceleration of our obligations and adversely impacting our financial condition.
 
 
19

 
 
Our future capital resources and liquidity depend, in part, on our success in developing our leasehold interests, growing reserves and production and finding additional reserves.  We may sell assets to achieve liquidity in pursuit of these goals.  Cash is required to fund capital expenditures necessary to offset inherent declines in our production and proven reserves, which is typical in the capital-intensive oil and natural gas industry. We therefore continuously monitor our liquidity and the capital markets and evaluate our development plans in light of a variety of factors, including, but not limited to, our cash flows, capital resources, acquisition opportunities and drilling success. 

We strive to maintain financial flexibility while pursuing our drilling plans and evaluating potential acquisitions, and will therefore consider accessing capital markets (if on acceptable terms) as necessary to, among other things, maintain substantial borrowing capacity under our Bank Credit Facility and SOSventures, LLC Credit Agreement, facilitate drilling on our undeveloped acreage position and permit us to selectively expand our acreage position while sustaining sufficient operating cash levels. Our ability to complete future debt and equity offerings and maintain or increase our borrowing base is subject to a number of variables, including our level of oil and natural gas production, reserves and commodity prices, as well as various economic and market conditions that have historically affected the oil and natural gas industry. Prices for oil and natural gas have historically been subject to seasonal fluctuations characterized by peak demand and higher prices in the winter heating season; however, the impact of other risks and uncertainties have influenced prices throughout recent years. Even if we are otherwise successful in growing our reserves and production, if oil and natural gas prices decline for a sustained period of time, our ability to fund our capital expenditures, complete acquisitions, reduce debt, meet our financial obligations and become profitable may be materially impacted.

Critical Accounting Policies and Estimates
 
The following discussion and analysis of financial condition and results of operations are based upon our consolidated financial statements, which have been prepared in accordance with accounting principles generally accepted in the United States.  The preparation of these financial statements requires us to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses.  Certain accounting policies involve judgments and uncertainties to such an extent that there is reasonable likelihood that materially different amounts could have been reported under different conditions, or if different assumptions had been used.  We evaluate such estimates and assumptions on a regular basis.  We base our estimates on historical experience and various other assumptions that are believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources.  Actual results may differ from these estimates and assumptions used in preparation of our consolidated financial statements.  Below, we have provided expanded discussion of the more significant accounting policies, estimates and judgments.  We believe these accounting policies reflect the more significant estimates and assumptions used in preparation of our consolidated financial statements.  Please read the notes to our most recent audited consolidated financial statements filed with the SEC for a discussion of additional accounting policies and estimates made by management.
 
Oil and Gas Producing Activities
 
 Our oil and gas producing activities were accounted for using the successful efforts method of accounting as further defined under FASB ASC 932, Extractive Activities – Oil and Natural Gas. Costs to acquire leasehold rights in oil and gas properties, to drill and equip exploratory wells that find proved reserves, and to drill and equip development wells are capitalized.  Costs to drill exploratory wells that do not find proved reserves, delay rentals and geological and geophysical costs are expensed.
 
Depletion and Depreciation
 
Estimates of natural gas and oil reserves utilized in the calculation of depletion are prepared using certain assumptions. Reserve estimates are based upon existing economic and operating conditions with no provision for price and cost escalations except by contractual arrangements.  Natural gas and oil reserve estimates are inherently imprecise and are subject to change as more current information becomes available. Capitalized costs are depleted and amortized using the units of production method, based upon reserve estimates. 

Impairments

 The carrying value of oil and gas properties is assessed for possible impairment on a field by field basis and on at least an annual basis, or as circumstances warrant, based on geological analysis, changes in proved reserve estimates or the sale of the properties. When impairment occurs, an adjustment is recorded as a reduction of the asset carrying value.
 
 
20

 

Asset Retirement Obligations
 
 The Company accrues for the estimated liability for the plugging and abandonment of natural gas and oil wells at the end of their productive lives following the provisions of ASC 410-20, Asset Retirement Obligations. Asset retirement obligations are estimated at the present value of expected future net cash flows based on reserve estimates and federal and state regulatory requirements and are discounted using the Company’s credit adjusted risk free rate.  Because the Company uses unobservable inputs in estimating asset retirement obligations, it considers such obligations a Level 3 measurement under ASC 820.  At the time of abandonment, we recognize a gain or loss on abandonment to the extent that actual costs do not equal the estimated costs.

Goodwill
 
At June 30, 2015 and December 31, 2014 the Company had goodwill of $960 thousand.
 
Goodwill represents the excess of the purchase price over the fair value of the net assets acquired.  The Company follows FASB ASC Topic 350 Goodwill and Intangible Asset Impairment Testing. Our analysis consists of two steps. Step 1 tests the company for impairment by comparing the fair value of equity to the book value of equity. If the fair value is less than the book value, then Step 2 analysis must be performed. If the fair value of goodwill is less than its carrying amount, impairment is recorded based on the difference. The Company annually assesses the carrying value of goodwill for impairment.  

Pricing mechanism for oil and gas reserves estimation
 
The SEC’s rules require reserve estimates to be calculated using a 12-month average price. Price changes can still be incorporated to the extent defined by contractual arrangements. The use of a 12-month average price rather than a single-day price is expected to reduce the impact on reserve estimates.
 
The SEC rules also amend the definition of proved oil and gas reserves to include reserves located beyond development spacing areas that are immediately adjacent to developed spacing areas if economic recoverability can be established with reasonable certainty. These revisions are designed to permit the use of alternative technologies to establish proved reserves in lieu of requiring companies to use specific tests. In addition, they establish a uniform standard of reasonable certainty that applies to all proved reserves, regardless of location or distance from producing wells. Because the revised rules generally expand the definition of proved reserves, proved reserve estimates could increase in the future based upon adoption of the revised rules.
 
 Estimated proved oil and gas reserves
 
The evaluation of our oil and gas reserves is critical to management of our operations and ultimately our economic success. Decisions such as whether development of a property should proceed and what technical methods are available for development are based on an evaluation of reserves. These oil and gas reserve quantities are also used as the basis of calculating the unit-of-production rates for depreciation, evaluating impairment and estimating the life of our producing oil and gas properties in our asset retirement obligations. Our total reserves are classified as proved, possible and probable. Proved reserves are classified as either proved developed or proved undeveloped. Proved developed reserves are those reserves which can be expected to be recovered through existing wells with existing equipment and operating methods. Estimated proved undeveloped reserves include reserves expected to be recovered from new wells from undrilled proven reservoirs or from existing wells where a significant major expenditure is required for completion and production. Probable reserves are those additional reserves that are less certain to be recovered than proved reserves and when probabilistic methods are used, there should be at least a 50% probability that the actual quantities recovered will equal or exceed the proved plus probable estimates. Possible reserves are those additional reserves that are less certain to be recovered than probable reserves and when probabilistic methods are used, there should be at least a 10% probability that the total quantities ultimately recovered will equal or exceed proved plus probable plus possible reserve estimates.
  
Independent reserve engineers prepare the estimates of our oil and gas reserves presented in this quarterly report based on guidelines promulgated under GAAP and in accordance with the rules and regulations of the Securities and Exchange Commission. The evaluation of our reserves by the independent reserve engineers involves their rigorous examination of our technical evaluation and extrapolations of well information such as flow rates and reservoir pressure declines as well as other technical information and measurements. Reservoir engineers interpret these data to determine the nature of the reservoir and ultimately the quantity of total oil and gas reserves attributable to a specific property. Our total reserves in this quarterly report include only quantities that we expect to recover commercially using current prices, costs, existing regulatory practices and technology. While we are reasonably certain that the total reserves will be produced, the timing and ultimate recovery can be affected by a number of factors including completion of development projects, reservoir performance, regulatory approvals and changes in projections of long-term oil and gas prices. Revisions can include upward or downward changes in the previously estimated volumes or proved reserves for existing fields due to evaluation of (1) already available geologic, reservoir or production data or (2) new geologic or reservoir data obtained from wells. Revisions can also include changes associated with significant changes in development strategy, oil and gas prices or production equipment/facility capacity.
 
 
21

 
 
Standardized measure of discounted future net cash flows

The standardized measure of discounted future net cash flows relies on these estimates of oil and gas reserves using commodity prices and costs at year-end. The benchmark oil and gas prices used are the preceding 12-month averages of the first-day-of-the month spot prices posted for the WTI oil and Henry Hub natural gas.  Oil prices are based on a benchmark price of $96.90 per barrel and have been adjusted by lease for gravity, transportation fees, and regional price differentials.  Gas prices per thousand cubic feet are based on a benchmark price of $3.67 per million British thermal units and have been adjusted by lease for Btu content, transportation fees, and regional price differentials.  The adjustments are based on the differential between historic oil and gas sales and the corresponding benchmark price.  While we believe that future operating costs can be reasonably estimated, future prices are difficult to estimate since the market prices are influenced by events beyond our control. Future global economic and political events will most likely result in significant fluctuations in future oil prices.

Consent requirements for material Company actions before we obtain an exchange listing
 
We have yet to apply for a listing on a national securities exchange.  Under Section 6 of the put option waiver agreement referenced at Exhibit 4.3, until such time as we obtain a listing on a national securities exchange, we are required to obtain the consent of the Longview Marquis Master Fund, L.P., LMIF Investments, LLC and SMF Investments, LLC to take any of the following actions:
 
a. consummate a sale of the equity securities of the Company to the extent that the valuation of all equity securities of the Company at the time of such sale is more than thirty percent (30%) below the then present value of the Company’s estimated proved future oil and gas net revenues calculated at an annual discount rate of ten percent (10%);
 
b. issue, or authorize the issuance of, any class of equity security that is not identical to the class of equity securities held by the Summerline Parties;
 
c. issue any equity securities without providing preemptive rights to Longview Marquis Master Fund, L.P., LMIF Investments, LLC, SMF Investments, LLC and Summerline Capital Partners, LLC as will enable them to maintain, post-issuance, their percentage equity ownership of the Company owned pre-issuance;
 
d. amend, modify or waive any provision of the Company’s certificate of incorporation or bylaws; or
 
e. sell all or substantially all of the assets of the Company or its subsidiaries

Item 3. Quantitative and Qualitative Disclosures About Market Risk.
 
The Company is a Smaller Reporting Company as defined by SEC Rules 405 and 12b-2 and is not required to disclose the information required by Regulation S-K, Item 305 pursuant to the Smaller Reporting Company exemption in Regulation S-K, Item 305(e).
 
Item 4.  Controls and Procedures

Management’s Evaluation of Internal Control over Financial Reporting

Our management is responsible for establishing and maintaining adequate internal control over financial reporting, as such term is defined in Rule 13a-15(f) of the Exchange Act. This system is designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of the consolidated financial statements for external purposes in accordance with generally accepted accounting principles. Our internal control over financial reporting includes those policies and procedures that: (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect our transactions and disposition of our assets; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of consolidated financial statements in accordance with generally accepted accounting principles, and that our receipts and expenditures are being made only in accordance with authorizations of our management and directors; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use or disposition of our assets that could have a material effect on the consolidated financial statements.

Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate. All internal control systems, no matter how well designed, have inherent limitations. Therefore, even those systems determined to be effective can provide only reasonable assurance with respect to financial statement preparation and presentation. The scope of management’s assessment of the effectiveness of internal control over financial reporting includes all of our Company’s subsidiaries.

The Company’s Chief Executive Officer and Chief Accounting Officer evaluated the Company’s disclosure controls and procedures as of June 30, 2015. In making their assessment, the Company's Chief Executive Officer and Chief Financial Officer were guided by the releases issued by the SEC and to the extent applicable was based upon the framework in Internal Control – Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission.
 
 
22

 

Our Annual Report on Form 10-K filed April 16, 2015 does not include an attestation report of the Company’s independent registered public accounting firm regarding internal control over financial reporting.  Management’s report was not subject to attestation by the Company’s independent registered public accounting firm pursuant to an exemption for smaller reporting companies under Section 989G of the Dodd-Frank Wall Street Reform and Consumer Protection Act and the exemption for an Emerging Growth Company under Section 404(b) of the Sarbanes-Oxley Act of 2002 (as amended by Section 103 of the JOBS Act.).

Disclosure controls and procedures. As of June 30, 2015, the Company was obligated to be a reporting company and file periodic or current reports with the Securities and Exchange Commission pursuant to the provisions of the Securities Exchange Act of 1934.  Thus, the Company must assess its disclosure controls and procedures in connection with its presentation of its information for the year ending June 30, 2015, as defined in Rules 13a-15(e) and 15d-15(e) of the Exchange Act, which is presented in this Form 10-Q.  The Company maintains controls and procedures designed to ensure that it is able to collect the information it is required to disclose in the reports it files with the SEC, and to process, summarize and disclose this information within the time periods specified in the rules of the SEC.  The Company’s Chief Executive Officer and Chief Accounting Officer are responsible for establishing and maintaining these procedures and, as required by the rules of the SEC, evaluating their effectiveness.

Based on their evaluation the Company’s disclosure controls and procedures which took place as of the end of the period covered by this report, the Chief Executive Officer and Chief Accounting Officer have concluded that, as of such date, our disclosure controls and procedures were ineffective, due to the material weaknesses in our internal control over financial reporting described below.

Material weakness in internal control over financial reporting. A material weakness is a deficiency, or combination of deficiencies, in internal control over financial reporting such that there is a reasonable possibility that a material misstatement of Brushy Resources's annual or interim financial statements will not be prevented or detected on a timely basis. During the preparation of our condensed consolidated financial statements for the quarter ended September 30, 2014, we identified that our processes and procedures for the computation of deferred income taxes and stock option expenses were not effective. This control deficiency would have resulted in a material error in our condensed consolidated financial statements for the three months ended September 30, 2014.  Accordingly, management has concluded this deficiency in internal control over financial reporting constituted a material weakness.

    Further, while preparing our Form 10-K annual report, filed April 16, 2015, we identified an additional material weakness in the preparation of the reserve report for December 31, 2014. Specifically, an impairment of our reserves relates to the adoption of our development plan for our undeveloped oil and gas reserves which, for the purpose of booking such undeveloped reserves, must show that such reserves are scheduled to be drilled within five years under SEC Regulation S-X Rule 4-10(a)(31)(ii). We identified the impairment amount at $4,428,378 which has a material impact on our financial statements. This impairment is connected with the impact of lower oil and gas prices in the amount of capital available for the development plan.
 
During the preparation of our condensed financial statements for the nine months ending September 30, 2015 we identified that our process and procedures for the computation of impairment were not effective.  The control deficiency resulted in a material error in our condensed consolidated financial statements for the six months ended June 30, 2015. The control failure allowed for the improper recording of $1,350,000 in impairment of our Oklahoma properties.
 
    Moreover, on September 15, 2014, the Company's Chief Financial Officer informed the Company he was resigning, effective immediately. The open Chief Financial Officer position led to an insufficient number of experienced personnel to provide reasonable assurance that transactions are being recorded as necessary to ensure timely preparation of financial statements in accordance with GAAP, including the preparation of these interim financial statements. Management is in the process of evaluating various remedial actions relating to this material weakness, including hiring a new Chief Financial Officer. In the interim, management has hired a national accounting firm to serve as a technical resource during the financial statement close process and as needed until a qualified Chief Financial Officer is hired.
 
 Management's remediation initiatives. The stock option expense matter relates to FASB 718-10-20, which requires that the stock option expense be determined in the quarter in which the contract is signed rather than the quarter in which stockholder approval of the stock option approval of the compensation (and the equity compensation plan under which the relevant stock options are to be issued) is obtained if stockholder approval is “essentially a formality or perfunctory.” The relevant employment agreements and the Company’s 2014 Equity Compensation Plan were approved by the Board of Directors in the quarter ending September 30, 2014, but were not voted on by stockholders until the Company’s annual meeting on October 28, 2014.  It was subsequently determined that the stockholder approval was “essentially a formality or perfunctory” because the Company has two shareholder groups which control a majority of the Company’s common stock when combined and that our Chairman, Bill Liao, is an employee of one such stockholder group and our director, Peter Benz, is affiliated with the other such stockholder group. Thus, the Company is required to record the stock option compensation in the quarter ending September 30, 2014 rather than at the time of the stockholder meeting. Had this error not been caught in the review process, it would have resulted in a material understatement of our expenses for the six month period ending September 30, 2014.  But, this error would not have resulted in a material change for the full year presentation for the year ending December 31, 2014.

The deferred tax matter relates to the Company using the incorrect tax basis for certain assets and liabilities as well as understating the net operating loss deferred tax asset.  These errors relate to year ended December 31, 2013 and impacted the three and six months ended June 30, 2014.  We have made adjustments for these errors as stated in our financial statements. We have also hired an outside national accounting firm to consult on deferred tax matters.
 
 
23

 

    The Company's accounting staff will be trained on the limits of capital available for five year development plans under SEC Regulation S-X Rule 4-10(a) (31)(ii) and we will add this issue as an item to review with petroleum engineers used for reserve estimates. But, the conditions that led to the material weakness, including the lack of a Chief Financial Officer, remain.

            Changes in control over financial reporting. In the six months ending June 30, 2015 there have no changes in control over financial reporting that will have a material impact in control over financial reporting except as reported above.
 
Part II—Other Information
 
Item 1. Legal Proceedings
 
In addition to the below, see Part I, Item 1 – “Financial Statements,” “Note 13 – “Legal Proceedings” of this Quarterly Report on Form 10-Q which is incorporated by reference into this Part II, Item 1 – “Legal Proceedings.”

Shareholder Lawsuit

On April 17, 2015, Starboard Resources, Inc. was served with a lawsuit filed in Bexar County, Texas by William F. Pettinati, Jr., Nicholas Garofolo, Sigma Gas Barbastella Fund and Sigma Gas Antrozous Fund against Starboard Resources, Inc., its directors, its Chief Operating Officer, Edward Shaw, its former Chief Financial Officer, Eric Alfuth, our stockholder, Bradford Higgins, and Sean O’Sullivan, the managing director of our stockholder, SOSventures, LLC.   Mr. Pettinati, Mr. Garofalo and the Sigma Gas Antrozous Fund are stockholders.  Mr. Pettinati owns 145,112 shares, Mr. Garofalo owns 226,680 common stock shares and Sigma Gas Antrozous Fund owns 44,610 common stock shares. Combined these stockholders account for approximately 3.3% of our outstanding common stock.  These stockholders became our stockholders in February 2014.
 
The Plaintiffs allege several derivative and direct causes of action, many of which relate to alleged actions that pre-date their becoming stockholders in February 2014.  These derivative claims include, breach of fiduciary duty, waste of corporate assets, concerted action and conspiracy, joint enterprise, agency, alter ego, exemplary damages, and unjust enrichment. The direct claims include, breach of fiduciary duty, conversion, shareholder oppression, concerted action and conspiracy, declaratory judgment that the distribution of stock to the plaintiffs was invalid, joint enterprise, agency, alter ego, exemplary damages, concerted action and conspiracy and failure to allow for inspection of books and records.
 
Many of the allegations relate to events that allegedly happened before the plaintiffs became stockholders, including the distributions from certain partnerships that led to the Plaintiffs becoming stockholders in February 2014.  For actions after February 2014, Plaintiffs complain that our common stock still lacks a trading venue, that a books and records request was not honored, that we “delayed” our public offering, that SOSventures LLC had allegedly taken steps to “foreclose” on the our assets under our subordinated credit agreement with SOSventures, LLC and that we filed for an extension to the filing date for our Form 10-K for the year ending December 31, 2014.
 
The matter is styled Sigma Barbastella Fund et al v. Charles S. Henry, III et al. and it is Cause No. 20105-CI-05672 in the 224th District Court in Bexar County, Texas.
 
 Lawsuit and Arbitration Relating to 17.23% of Our Common Stock Shares
 
We have interpleaded 2,190,891 common stock shares or approximately 17.2348% of our common stock shares into Connecticut Superior Court for the Judicial District of Stamford/Norwalk at Stamford, Cause No. FST-CV12-6015112-S.  These are the residual common stock shares that belonged to Giddings Oil & Gas LP, Asym Energy Fund III LP and Hunton Energy Partners LP. after the distribution of the partnerships shares.

Additionally, in a related case in Connecticut Superior Court there is ongoing litigation and an arbitration.  The lawsuit is styled Charles Henry III, Ahmed Ammar, John P. Vaile as Trustee of John P. Vaile Living Trust, John Paul Otieno, SOSventures, LLC, Bradford Higgins, William Mahoney, Robert J. Conrads, Edward M. Conrads, William F. Pettinati, Jr. individually and derivatively on behalf of Giddings Oil & Gas LP, Hunton Oil Partners LP and Asym Energy Fund LP v. Gregory Imbruce, Giddings Investments LLC, Giddings Genpar LLC, Hunton Oil Genpar LLC, Asym Capital III LLC, Starboard Resources, Inc., Glenrose Holdings LLC and Asym Energy Investments LLC.  This lawsuit was originally filed on July 18, 2012.  The Plaintiffs allege fiduciary duty breaches, conversion, civil theft, violations of Connecticut Unfair Trade Practices Act, unjust enrichment, common law fraud, negligence, fraudulent conveyance and civil conspiracy and seek damages, injunctive relief, a constructive trust and an accounting.  These allegations focus on the issuance of 550,000 Starboard Resources LLC Units to “Giddings Investments, LLC.”  The allegations claim that this issuance was derived from the conversion of participation rights in Company wells that belong to Giddings Oil & Gas LP.  The lawsuit makes several other claims of breaches of duties by Defendants in connection with Defendants or their affiliates serving as general partners of Giddings Oil & Gas LP, Asym Energy Fund III LP, and Hunton Oil Partners LP.  Defendants deny the allegations.
 
 
24

 

Finally, On March 18, 2014, Gregory Imbruce, Giddings Investments, LLC, Giddings Genpar LLC, Hunton Oil Genpar, LLC, Asym Capital III LLC, Glenrose Holdings, LLC and Asym Energy Investment LLC filed a claim through the American Arbitration Association against Charles S. Henry, III, John P. Vaile, as Trustee of John P. Vaile Living Trust, John Paul Otierno, SOSventures LLC, Bradford Higgins, William Mahoney, Edwards M. Conrads, Robert J. Conrads, Giddings Oil & Gas LP, Hunton Oil Partners LP and Asym Energy Fund III LP and named other limited partners in the partnerships as relief defendants.  Claimants seek remedies for (i) breach  of limited partnership agreements; (ii) breach of implied covenant of good faith and fair dealing; (iii) violations of the Connecticut Unfair Trade Practices Act (SOSventures, LLC only); (iv) conversion of stock certificates subject to Company’s Amended Interpleader action includes as Exhibit 99.1.5; (v) theft of stock certificates subject to Company’s Amended Interpleader action includes as Exhibit 99.1.5; (vi) unjust enrichment; (vii) violations of the Delaware Uniform Limited Partnership Act (Charles S. Henry III only); (viii) breach of fiduciary duty (Charles S. Henry III only); and (ix) defamation  and violation of confidentiality duty (SOSventures, LLC only).   The claimants seek declaratory and injunctive relief as to who has authority to act as general partner of the partnerships, constructive trust on our common stock shares previously distributed to limited partners in the partnerships and damages.  The arbitration hearing has been concluded and submitted.  The parties expect a ruling from the arbitrator by September 11, 2015.

The above-described litigation may lead to a material reallocation or change of control of up to 17.2348% of our common stock shares.  Such new shareholders may vote for a new slate of directors and may lead to a significant change of our common stock ownership structure.  Finally, tying up 17.2348% of our common stock shares in litigation will likely have a materially negative effect on our trading liquidity should we obtain an exchange listing or an over-the-counter quotation.

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds
 
Employee Compensation:

Under our employment agreements dated April 1, 2012, with Michael Pawelek, Edward Shaw and Kim Vo each earned 116,550 common stock shares as of March 1, 2015 under the employment agreements with the Company.  These common stock grants were not made pursuant to an equity compensation or stock grant plan.  The stock awards were valued at $10 per share under FASB ASC Topic 718 in 2012 when we were a private company. We currently had no market for its common stock shares at the time of the stock awards. Our stockholders ratified these common stock grants at our October 28, 2014 stockholder meeting.

SOSventures, LLC Credit Agreement Amendment – Issuance of Warrants
 
On July 25, 2013 we entered into an amended credit agreement with SOSventures, LLC providing for a term loan through February 16, 2016 in an amount up to $10,000,000 at a 17.00% interest rate through May 29, 2014 and 22.00% interest rate thereafter.  The loan under this Agreement will be secured by a second lien on the Company’s assets.  The credit agreement and the related intercreditor agreement are attached as Exhibits 10.6.1 and 10.6.2.
 
The SOSventures, LLC credit agreement requires us to maintain certain financial ratios.  First, we must maintain an interest coverage ratio of 3:1 at the end of each quarter so that our consolidated net income less our fees under the credit facility, lender expenses, non-cash charges relating to the hedge agreements, interest, income taxes, depreciation, depletion, amortization, exploration expenditures and costs and other non-cash charges (netted for noncash income) (“EBITDAX”) is greater than 3 times our interest expense under the credit facility.  Second, we must maintain a debt to EBITDAX ratio of less than 3.5:1 at the end of each quarter. Third, we must maintain a current ratio of at greater than 1:1 at the end of each quarter, meaning that our consolidated current assets (including the unused amount of the credit facility by excluding non-cash assets under ASC 410 and 815) must be greater than our consolidated current liabilities (excluding non-cash obligations under ASC 410 and 815 and current maturities under the credit facility.)
 
The credit agreement prevents us from incurring indebtedness to banks or lenders, other than Independent Bank, without the consent of SOSventures, LLC.  It also prevents us from incurring most contingent obligations or liens (other than to Independent Bank).  It also restricts our ability to pay dividends, issue options and warrants and repurchase our common stock shares.  The limitation on options and warrants does not apply to equity compensation plans.

As of August 12, 2015, with accrued and unpaid interest we have a $20 million balance on the SOSventures, LLC credit facility.
 
On April 15, 2015 we entered the Second Amendment to the First Amendment and Restated Credit Agreement (Exhibit 10.6.4) and several other agreements which provided that SOSventures, LLC will provide an additional $3 million on its credit facility to be used to pay the outstanding balance of the Independent Bank term loan, pay on the Independent Bank credit facility and for operations. Additionally, SOSventures deposit $5 million into a controlled account at Independent Bank to be used to drill two wells in the Crittenden Field referenced in the Independent Bank Amendment. Further, SOSventures, LLC will receive interest on its credit facility and a 1% overriding royalty interest on the Company’s Crittenden Field properties effective upon the drilling of these two oil and gas wells until such time as the credit facility is repaid. Finally, SOSventures, LLC shall receive warrants to purchase 2,542,397 of our common shares for $1.00 per share with a two-year term. If fully purchased 2,542,397 would equal 20% of our currently outstanding common stock.  
 
 
25

 

SOSventures, LLC is part of a group that currently owns approximately 38% of our Company stock.  SOSventures, LLC now has sufficient warrants to be able to increase its group ownership to a point where the SOSventures, LLC group becomes the Company’s controlling stockholder.

Item 3. Defaults Upon Senior Securities
 
None.
 
Item 4. Mine Safety Disclosures
 
Not applicable.
 
Item 5. Other Information
 
None.

Item 6.  Exhibits and Reports on Form 8-K
 
(a)           The following documents are filed as part of this report:

1.  Financial Statements.  See Item 1.

2.  Financial Statement Schedules.  Not applicable.

All other schedules have been omitted because the required information is shown in the consolidated financials or notes thereto, or they are not applicable.
 
3.  Exhibits.  See Index to Exhibits for listing of exhibits which are filed herewith or incorporated by reference

(b)           Reports on Form 8-K.

On April 15, 2015 the Company disclosed in its Item 9B “Other Information” in its Form 10-K the following:

Material Agreements

Independent Bank Credit Agreement

As stated above in Part II, the Company has entered into the Fourth Amendment to the Credit Agreement with Independent Bank Exhibit 10.5.15), the Fifth Amendment to the Credit Agreement with Independent Bank (Exhibit 10.5.16) the Second Amendment to the Credit Agreement with SOSventures, LLC (Exhibit 10.6.4) and the related Intercreditor Agreement amendment (Exhibit 10.6.5).  These are material definitive agreements.  These agreements are further described in Item 7 herein relating to Management’s Discussion and Analysis or Plan of Operations.

            SOSventures, LLC Credit Agreement
 
On July 25, 2013 we entered into an amended credit agreement with SOSventures, LLC providing for a term loan through February 16, 2016 in an amount up to $10,000,000 at a 17.00% interest rate through May 29, 2014 and 22.00% interest rate thereafter. The loan under this Agreement will be secured by a second lien on the Company’s assets.  The credit agreement and the related intercreditor agreement are attached as Exhibits 10.6.1 and 10.6.2.  These agreements are further described in Item 7 herein relating to Management’s Discussion and Analysis or Plan of Operations.

On April 15, 2015 we entered the Second Amendment to the First Amendment and Restated Credit Agreement (Exhibit 10.6.4) and several other agreements which provided that SOSventures, LLC will provide an additional $3 million on its credit facility to be used to pay the outstanding balance of the Independent Bank term loan, pay on the Independent Bank credit facility and for operations. Additionally, SOSventures deposit $5 million into a controlled account at Independent Bank to be used to drill two wells in the Crittenden Field referenced in the Independent Bank Amendment. Further, SOSventures, LLC will receive interest on its credit facility and a 1% overriding royalty interest on the Company’s Crittenden Field properties effective upon the drilling of these two oil and gas wells until such time as the credit facility is repaid. Finally, SOSventures, LLC shall receive warrants to purchase 2,542,397 of our common shares for $1.00 per share with a two-year term. If fully purchased 2,542,397 would equal 20% of our currently outstanding common stock.  
 
 
26

 

SOSventures, LLC is part of a group that currently owns approximately 38% of our Company stock.  SOSventures, LLC now has sufficient warrants to be able to increase its group ownership to a point where the SOSventures, LLC group becomes the Company’s controlling stockholder.

Unregistered Sales of Equity Securities
 
In connection with the Second Amendment to our Credit Agreement with SOSventures, LLC, SOSventures, LLC will be issued warrants to purchase up to 2,542,397 of our common stock common stock shares at $1.00 per share with a two year term. If fully purchased, 2,542,397 common stock shares would equal 20% of our currently outstanding common stock.
 
Material Impairments
 
We reported an impairment of $4,428,378, which is material, in our Form 10-K for the year ending December 31, 2014. In the Form 10-K, the Company also reported a material weakness in its internal controls in connection with its accounting for this material impairment.
 
Changes in Control of Registrant
 
SOSventures, LLC is part of a group that currently owns approximately 38% of our Company stock.  As described above, SOSventures, LLC now has warrants that could allow it to purchase a controlling interest in the Company.

Forms 8-K

On April 22, 2015 we filed a Form 8-K disclosing service of a stockholder lawsuit further described in Part II, Item 1 above.

On May 12, 2015, we disclosed the engagement of Akin Doherty Klein & Feuge, P.C. of San Antonio, Texas to be our independent registered public accounting firm, effective immediately and the corresponding dismissal of KPMG LLP from being our independent registered public accounting firm.

On August 5, 2015, we disclosed the sale of our Oklahoma properties for $7,249,390, the use of the proceeds of this sale, and the entry into the Fifth Amendment to our credit agreement with Independent Bank.

Schedule 14C Information Statement

On July 28, 2015 we distributed to stockholders and filed with the Securities and Exchange Commission our Schedule 14C Information Statement which notified stockholders of the election of Bill Liao, Peter Benz, Charles S. Henry, III, Craig Dermody and Michael J. Pawelek to our Board of Directors, our name change to Brushy Resources, Inc. through a Certificate of Amendment to our Certificate of Incorporation and an amendment to our by-laws to provide mandatory venue for stockholder derivative lawsuits against our officers and directors in the Delaware Chancery Court. We can file the Certificate of Amendment on the name change 20 days after the distribution of the Information Statement.
 
 
27

 
 
SIGNATURES

Pursuant to the requirements of the Exchange Act, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized. 
 
 
Brushy   Resources, Inc.
   
(Registrant)
     
Date: November 13, 2015
By:
/s/ Michael J. Pawelek
   
Chief Executive Officer
   
(Principal Executive Officer)
     
Date: November 13, 2015
By:
/s/ N. Kim Vo
   
Controller
   
(Chief Accounting Officer)
 
 
28

 

EXHIBITS
 EXHIBIT LIST
 
The following exhibits are included as part of this Form 10-K. References to “the Company” in this Exhibit List mean  Brushy Resources, Inc., a Delaware corporation.
 
 Exhibit
No.
Description
   
Certificate of Incorporation(1)
   
Certificate of Conversion(2)
   
3.1.3
Certificate of Amendment(3)
   
Amended and Restated Bylaws(4)
   
3.2.2
Starboard Resources Amended and Restated Operating Agreement dated January 20, 2012(5)
   
4.1
Securities Purchase and Exchange Agreement between Starboard Resources, LLC, Longview Marquis Master Marquis Fund, L.P., Summerview Marquis Fund, L.P., Longview Marquis Fund, L.P., LMIF Investments, LLC, SMF Investments, LLC, and Summerline Capital Partners, LLC dated June 10, 2011(6)
   
4.2
Agreement between Asym Capital III LLC, Giddings Genpar LLC, Hunton Oil Genpar LLC and SOSventures, LLC regarding Starboard Resources, LLC dated January 20, 2012(7)
   
4.3
Agreement between Starboard Resources, LLC, Longview Marquis Master Marquis Fund, L.P., Summerview Marquis Fund, L.P., Longview Marquis Fund, L.P., LMIF Investments, LLC, SMF Investments, LLC, and Summerline Capital Partners, LLC dated July 20, 2012 (Relating to Waiver of Put Option)(8)
   
4.4
2014 Equity Compensation Plan(9)
   
10.1
Amended and Restated Employment Agreement, dated as of August 14, 2014, between Starboard Resources, Inc. and Michael Pawelek.(10)
   
10.2
Amended and Restated Employment Agreement, dated as of August 14, 2014, between Starboard Resources, Inc. and Edward Shaw.(11)
   
10.3
Employment Agreement, dated as of April 1, 2012, between Starboard Resources, Inc. and N. Kim Vo.(12)
   
10.4
Participation Agreement with Husky Ventures, LLC.(13)
   
10.5.01
Credit Agreement dated as of June 27, 2013 between Starboard Resources, Inc. as borrower and Independent Bank as lender.(14)
   
10.5.02
Security Agreement dated as of June 27, 2013 between Starboard Resources, Inc. as debtor and Independent Bank as secured party. (15)
   
10.5.03
Mortgage, Deed of Trust, Security Agreement, Fixture Filing and Financing Statement for Texas oil and gas properties from Starboard Resources, Inc., Mortgagor, to John E. Davis, Trustee, and Independent Bank, mortgagee.(16)
   
10.5.04
Note from Starboard Resources, Inc. to Independent Bank dated July 27, 2012.(17)
   
10.5.05
Certificate of Ownership Interests – Starboard Resources, Inc. dated June 27, 2013.(18)
 
10.5.06
Omnibus Certificate – Starboard Resources, Inc. dated June 27, 2013.(19)
   
10.5.07
Guaranty dated June 27, 2013 from ImPetro Operating, LLC.(20)
   
10.5.08
Security Agreement dated June 27, 2013 between ImPetro Operating, LLC and Independent Bank.(21)
 
 
29

 
 
Exhibit
No.
Description
10.5.09
Omnibus Certificate – ImPetro Operating, LLC dated June 27, 2013.(22)
   
10.5.10
Waiver of Operator’s Lien – ImPetro Operating, LLC dated June 27, 2013.(23)
   
10.5.11
Guaranty dated June 27, 2013 from ImPetro Resources, LLC.(24)
   
10.5.12
Security Agreement dated June 27, 2013 between ImPetro Resources, LLC and Independent Bank.(25)
   
10.5.13
Omnibus Certificate – ImPetro Resources, LLC dated June 27, 2013.(26)
   
10.5.14
Note dated June 27, 2013 – Starboard Resources, Inc.(27)
   
10.5.15
Fourth Amendment to Credit Agreement with Independent Bank dated April 15, 2015(28)
   
10.5.16
Fifth Amendment to Credit Agreement with Independent Bank dated July 31, 2015(29)
   
10.6.1
Credit Agreement dated July 25, 2013 between Starboard Resources, Inc. and SOSventures, LLC(30)
   
10.6.2
Intercreditor Agreement dated July 25, 2013 between Independent Bank, and SOSventures LLC(31)
   
10.6.3
Second Amendment to Credit Agreement between SOSventures, LLC and Starboard Resources dated April 15, 2015(32)
   
10.6.4
Amendment to Intercreditor Agreement between Independent Bank, SOSventures, LLC and Starboard Resources, Inc. dated April 15, 2015(33)
   
10.7.1
Sunoco – Texon LP Crude Purchase Agreement(34)
   
10.7.2
Sunoco – Texon LP Crude Purchase Agreement Amendment(35)
   
10.8
DCP Midstream, LP Gas Purchase Agreement(36)
   
14
Code of Ethics.(37)
   
21
List of subsidiaries(38)
   
23.2
Consent of Forrest A. Garb & Associates, Inc., independent petroleum engineers.(39)
   
31.1
Management Certification – Principal Executive Officer.
   
31.2
Management Certification – Principal Accounting Officer.
   
32.1
Section 1350 Certification.
   
99.2
Reserve Report as of January 1, 2015 from Forrest Garb & Associates, Inc.(40)
   
99.3
Reserve Report as of January 1, 2014 from Forrest Garb & Associates, Inc.(41)

 
30

 
 
Reference
No.
Reference Description
(1)
Incorporated by reference to Exhibit 3.1.1 of the Company’s Form 10 filed with the SEC on June 7, 2013 which became effective August 6, 2013.
   
(2)
Incorporated by reference to Exhibit 3.1.2 of the Company’s Form 10 filed with the SEC on June 7, 2013 which became effective August 6, 2013.
   
(3)
Incorporated by reference to Exhibit 3.1 of the Company’s Form 8-K filed with the SEC on November 13, 2014.
   
(4)
Incorporated by reference to Exhibit 3.2 of the Company’s Form 8-K filed with the SEC on October 31, 2014.
 
(5)
Incorporated by reference to Exhibit 3.2.3 of the Company’s Form 10 filed with the SEC on June 7, 2013 which became effective August 6, 2013.

(6)
Incorporated by reference to Exhibit 4.1 of the Company’s Form 10 filed with the SEC on June 7, 2013 which became effective August 6, 2013.
   
(7)
Incorporated by reference to Exhibit 4.2 of the Company’s Form 10 filed with the SEC on June 7, 2013 which became effective August 6, 2013.
   
(8)
Incorporated by reference to Exhibit 4.3 of the Company’s Form 10 filed with the SEC on June 7, 2013 which became effective August 6, 2013.
   
(9)
Incorporated by reference to Exhibit 3.2 of the Company’s Form 8-K filed October 31, 2014.
   
(10)
Incorporated by reference to Exhibit 10.1 of the Company’s Form 8-K filed with the SEC on September 4, 2014.
   
(11)
Incorporated by reference to Exhibit 10.2 of the Company’s Form 8-K filed with the SEC on September 4, 2014.
   
(12)
Incorporated by reference to Exhibit 10.3 of the Company’s Form 10 filed with the SEC on June 7, 2013 which became effective August 6, 2013.
   
(13)
Incorporated by reference to Exhibit 10.4 of the Company’s Form 10 filed with the SEC on June 7, 2013 which became effective August 6, 2013.
 
(14)
Incorporated by reference to Exhibit 10.5.01 of the Company’s Form 10/A filed with the SEC on July 26, 2013 which became effective August 6, 2013.
   
(15)
Incorporated by reference to Exhibit 10.5.02 of the Company’s Form 10/A filed with the SEC on July 26, 2013 which became effective August 6, 2013.
 
(16)
Incorporated by reference to Exhibit 10.5.03 of the Company’s Form 10/A filed with the SEC on July 26, 2013 which became effective August 6, 2013.
   
(17)
Incorporated by reference to Exhibit 10.5.04 of the Company’s Form 10/A filed with the SEC on July 26, 2013 which became effective August 6, 2013.
   
(18)
Incorporated by reference to Exhibit 10.5.05 of the Company’s Form 10/A filed with the SEC on July 26, 2013 which became effective August 6, 2013.
   
(19)
Incorporated by reference to Exhibit 10.5.06 of the Company’s Form 10/A filed with the SEC on July 26, 2013 which became effective August 6, 2013.
   
(20)
Incorporated by reference to Exhibit 10.5.07 of the Company’s Form 10/A filed with the SEC on July 26, 2013 which became effective August 6, 2013.
   
(21)
Incorporated by reference to Exhibit 10.5.08 of the Company’s Form 10/A filed with the SEC on July 26, 2013 which became effective August 6, 2013.
 
 
31

 
 
Reference
No.
Reference Description
(22)
Incorporated by reference to Exhibit 10.5.09 of the Company’s Form 10/A filed with the SEC on July 26, 2013 which became effective August 6, 2013.
   
(23)
Incorporated by reference to Exhibit 10.5.10 of the Company’s Form 10/A filed with the SEC on July 26, 2013 which became effective August 6, 2013.
   
(24)
Incorporated by reference to Exhibit 10.5.11 of the Company’s Form 10/A filed with the SEC on July 26, 2013 which became effective August 6, 2013.
 
(25)
Incorporated by reference to Exhibit 10.5.12 of the Company’s Form 10/A filed with the SEC on July 26, 2013 which became effective August 6, 2013.
   
(26)
Incorporated by reference to Exhibit 10.5.13 of the Company’s Form 10/A filed with the SEC on July 26, 2013 which became effective August 6, 2013.

(27)
Incorporated by reference to Exhibit 10.5.14 of the Company’s Form 10/A filed with the SEC on July 26, 2013 which became effective August 6, 2013.
   
(28)
Incorporated by reference to Exhibit 10.5.15 of the Company’s Form 10-K filed with the SEC on April 16, 2015.
   
(29)
Incorporated by reference to Exhibit 99.1 of the Company’s Form 8- filed with the SEC on August 5, 2015
   
(30)
Incorporated by reference to Exhibit 10.6.1 of the Company’s Form 10/A filed with the SEC on July 26, 2013 which became effective August 6, 2013.
   
(31)
Incorporated by reference to Exhibit 10.6.2 of the Company’s Form 10/A filed with the SEC on July 26, 2013 which became effective August 6, 2013.
   
(32)
Incorporated by reference to Exhibit 10.6.3 of the Company’s Form 10-K filed with the SEC on April 16, 2015.
   
(33)
Incorporated by reference to Exhibit 10.6.4 of the Company’s Form 10-K filed with the SEC on April 16, 2015.
   
(34)
Incorporated by reference to Exhibit 10.7.1 of the Company’s Form 10/A filed with the SEC on July 26, 2013 which became effective August 6, 2013.
   
(35)
Incorporated by reference to Exhibit 10.7.2 of the Company’s Form 10/A filed with the SEC on July 26, 2013 which became effective August 6, 2013.

(36)
Incorporated by reference to Exhibit 10.8 of the Company’s Form 10/A filed with the SEC on July 26, 2013 which became effective August 6, 2013.
   
(37)
Incorporated by reference to Annex 3 of the Company’s Schedule 14A filed with the SEC on September 26, 2014.
   
(38)
Incorporated by reference to Exhibit 21 of the Company’s Form 10-K filed with the SEC on April 16, 2015.
 
(39)
Incorporated by reference to Exhibit 23.2 of the Company’s Form 10-K filed with the SEC on April 16, 2015.
   
(40)
Incorporated by reference to Exhibit 99.2 of the Company’s Form 10-K filed with the SEC on April 16, 2015.
   
(41)
Incorporated by reference to Exhibit 99.3 of the Company’s Form 10-K/A filed with the SEC on April 30, 2014
 
 
 
32




EX-31.1 2 stbrd_ex311.htm CERTIFICATION stbrd_ex311.htm
EXHIBIT 31.1
 
Rules 13a-15(e) and 15d-15(e) and Rules 13a-15(f)
 Certification of Chief Executive Officer

I, Michael J. Pawelek, certify that:

1.  
I have reviewed this quarterly report on Form 10-Q/A of  Brushy Resources , Inc. for the period ending June 30, 2015;
 
2.  
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statement were made, not misleading with respect to the period covered by this report;
 
3.  
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
 
4.  
The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) for the registrant and have:
 
a.  
designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
 
b.  
designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
 
c.  
evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
 
d.  
disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s first fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
 
5.  
The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
 
a.  
all significant deficiencies and material weaknesses in the design or operation of internal control over  financial reporting which are reasonable likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
 
b.  
any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
 

Date:   November 13, 2015
 
/s/ Michael J. Pawelek
Michael J. Pawelek
Chief Executive Officer and Principal Executive Officer

EX-31.2 3 stbrd_ex312.htm CERTIFICATION stbrd_ex312.htm
EXHIBIT 31.2
 
Rules 13a-15(e) and 15d-15(e) and Rules 13a-15(f)
 Certification of Chief Accounting Officer


I, N. Kim Vo, certify that:

1.  
I have reviewed this quarterly report on Form 10-Q/A of Brushy Resources, Inc. for the period ending June 30, 2015;
 
2.  
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statement were made, not misleading with respect to the period covered by this report;
 
3.  
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
 
4.  
The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) for the registrant and have:
 
a.  
designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
 
b.  
designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
 
c.  
evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
 
d.  
disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s first fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
 
5.  
The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
 
a.  
all significant deficiencies and material weaknesses in the design or operation of internal control over  financial reporting which are reasonable likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
 
b.  
any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
 

Date:
November  13, 2015
 
 
/s/ N. Kim Vo
 
N. Kim Vo
  Chief Accounting Officer

EX-32.1 4 stbrd_ex321.htm CERTIFICATION stbrd_ex321.htm
EXHIBIT 32.1

Section 1350 Certification


In connection with the quarterly report of Brushy Resources. Inc. (the “Company”) on Form 10-Q/A for the quarter ended June 30, 2015, as filed with the Securities and Exchange Commission on the date hereof (the “Report”), the undersigned Chief Executive Officer and Chief Financial Officer of the Company certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 that, to their knowledge:

(1)  
The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
 
(2)  
The information contained in the Report fairly presents, in all material respects, the financial condition and results of operation of the Company.

 
/s/ Michael J. Pawelek                     
Michael J. Pawelek
Chief Executive Officer


/s/ N. Kim Vo                             
N. Kim Vo
Chief Accounting Officer
EX-101.INS 5 starb-20150630.xml 0001554970 2015-01-01 2015-06-30 0001554970 2015-06-30 0001554970 2014-12-31 0001554970 2013-12-31 0001554970 us-gaap:FairValueInputsLevel1Member 2015-06-30 0001554970 us-gaap:FairValueInputsLevel1Member 2014-12-31 0001554970 us-gaap:FairValueInputsLevel2Member 2015-06-30 0001554970 us-gaap:FairValueInputsLevel2Member 2014-12-31 0001554970 us-gaap:FairValueInputsLevel3Member 2015-06-30 0001554970 us-gaap:FairValueInputsLevel3Member 2014-12-31 0001554970 2014-01-01 2014-06-30 0001554970 2014-06-30 0001554970 2014-01-01 2014-12-31 0001554970 starb:Instrument1Member 2015-01-01 2015-06-30 0001554970 starb:Instrument1Member 2015-06-30 0001554970 starb:Instrument2Member 2015-01-01 2015-06-30 0001554970 starb:Instrument2Member 2015-06-30 0001554970 starb:Instrument3Member 2015-01-01 2015-06-30 0001554970 starb:Instrument3Member 2015-06-30 0001554970 starb:Instrument4Member 2015-01-01 2015-06-30 0001554970 starb:Instrument4Member 2015-06-30 0001554970 starb:Instrument5Member 2015-01-01 2015-06-30 0001554970 starb:Instrument5Member 2015-06-30 0001554970 starb:Instrument6Member 2015-01-01 2015-06-30 0001554970 starb:Instrument6Member 2015-06-30 0001554970 starb:IndependentBankMember 2015-06-30 0001554970 starb:IndependentBankMember 2014-12-31 0001554970 starb:IndependentBank2Member 2014-12-31 0001554970 2015-04-01 2015-06-30 0001554970 2014-04-01 2014-06-30 0001554970 2015-08-12 0001554970 starb:OklahomaPropertiesMember 2015-01-01 2015-06-30 0001554970 us-gaap:ScenarioPreviouslyReportedMember 2015-06-30 0001554970 us-gaap:ScenarioPreviouslyReportedMember 2015-04-01 2015-06-30 0001554970 us-gaap:ScenarioPreviouslyReportedMember 2015-01-01 2015-06-30 0001554970 us-gaap:RestatementAdjustmentMember 2015-06-30 0001554970 us-gaap:RestatementAdjustmentMember 2015-04-01 2015-06-30 0001554970 us-gaap:RestatementAdjustmentMember 2015-01-01 2015-06-30 0001554970 starb:RestatementMember 2015-06-30 0001554970 starb:RestatementMember 2015-04-01 2015-06-30 0001554970 starb:RestatementMember 2015-01-01 2015-06-30 iso4217:USD xbrli:shares iso4217:USD xbrli:shares xbrli:pure Brushy Resources, Inc. 0001554970 10-Q 2015-06-30 true --12-31 No No Yes Smaller Reporting Company Q2 2015 0.001 0.001 10000000 10000000 0.001 0.001 150000000 150000000 0 0 0 0 12711986 12362336 596000 1766000 0 0 596000 1766000 0 0 90305000 91766000 -26403000 -23131000 2045000 1996000 13274000 13330000 3660000 2880000 97729000 96691000 3734000 3606000 2437000 0 -10000 128000 320000 0 0 0 859000 50.00-80.00 80.00 70.00 75.00 50.00 54.00-79.30 -39000 0 557000 1766000 21000000000 22500000000 2941000000 .04 12711986 90388000 91870000 83000 104000 90305000 91766000 88955000 1350000 90305000 5925000 7925000 378000 284000 596000 1699000 203000 508000 1019000 1860000 3729000 3574000 98159000 101803000 96809000 1350000 98159000 1846000 2008000 886000 981000 67000 960000 960000 44542000 9445000 444000 428000 21021000 2353000 16768000 752000 829000 5557000 5835000 14798000 50559000 3290000 3177000 11423000 14040000 10180000 46000 23162000 39000 98159000 101803000 96809000 1350000 98159000 38819000 41799000 37469000 1350000 38819000 -17826000 -14133000 -19176000 1350000 -17826000 56632000 55920000 13000 12000 -4330000 12000 -1713000 280000 9614000 9690000 4240000 5615000 41000 33000 19000 19000 128000 189000 65000 152000 206000 339000 103000 229000 429000 517000 218000 240000 2089000 1781000 747000 805000 2079000 2313000 953000 1394000 4642000 4518000 2135000 2776000 5284000 9702000 2527000 5895000 -6306000 -85000 -3329000 397000 -1976000 -97000 -1616000 117000 2000 719000 4000 719000 -.29 0 -.08 0.02 -0.19 -0.40 -0.08 -0.29 -3693000 -1000 -1004000 256000 -2354000 -5043000 1350000 1350000 -1004000 -3693000 2613000 84000 2325000 -141000 12711986 12362336 12711986 12362336 12711986 12362336 12711986 12711986 500000 102000 77000 -692000 -1109000 -3080000 11000 64000 305000 -1337000 841000 -442000 -168000 -88000 -1209000 113000 -57000 128000 189000 712000 600000 -2613000 -84000 4642000 4430000 -3693000 -1000 -5043000 1350000 -3693000 -1237000 -25486000 3000 -7000 17078000 1244000 8405000 892000 22785000 7000 56000 4448000 513000 153000 206000 5500000 23560000 3729000 3574000 5794000 3195000 155000 -2599000 432000 851000 1916000 523000 843000 3873000 39000 0 39000 0 976000 -57000 -1209000 170000 -233000 113000 21250000000 P5Y8M19D 0.092 0.0187 900000 900000 0 0 0 4.75 0 4.75 0 0 2.75 0 2.75 0 0 P10Y P10Y 0.00 0 0 <p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">Starboard Resources LLC was formed in Delaware on June 2, 2011 as a limited liability company to acquire, own, operate, produce, and develop oil and natural gas properties primarily in Texas and Oklahoma. On June 28, 2012, Starboard converted from a Delaware limited liability company to a Delaware C-Corporation and was named Starboard Resources, Inc. (the &#147;Company&#148;). The membership units of Starboard Resources LLC were exchanged on a 1:1 basis for common shares of the Company. On July 28, 2015 we filed with the Securities and Exchange Commission and distributed to stockholders of record a definitive Schedule 14C Information Statement that notified the Company&#146;s stockholders that it was changing its name to Brushy Resources, Inc. and could file the amendment to its certificate of incorporation 20 days or more after the distribution of the Schedule 14C Information Statement. That Schedule 14C Information Statement was distributed on or about August 4, 2015 and the Company intends to file a Certificate of Amendment to change its name to Brushy Resources, Inc. on or about August 25, 2015.</p> <p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><b>Basis of Presentation</b></p> <p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p> <p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">The condensed consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (&#147;GAAP&#148;). Additionally, the accompanying unaudited condensed consolidated financial statements as of June 30, 2015 and for the six months ended June 30, 2015 and 2014 have been prepared in accordance with accounting principles generally accepted in the United States of America for interim financial statements and with the instructions to Form 10-Q, and reflect, in the opinion of management, all adjustments, which are of a normal and recurring nature, necessary for a fair presentation of the results for such periods. Operating results for the six months ended June 30, 2015 are not necessarily indicative of the results that may be expected for the year ending December 31, 2015. Certain information and footnote disclosures normally included in the consolidated financial statements prepared in accordance with U.S. GAAP have been condensed or omitted in this Form 10-Q pursuant to the rules and regulations of the Securities and Exchange Commission (&#147;SEC&#148;). These consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto included in our Form 10-K for the year ended December 31, 2014.</p> <p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><b><i>&#160;</i></b></p> <p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><b>Principles of Consolidation</b></p> <p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p> <p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">The accompanying condensed consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries, ImPetro Resources, LLC (&#147;ImPetro&#148;) and ImPetro Operating (&#147;Operating&#148;) (Collectively the &#147;Company&#148;). All intercompany transactions and balances have been eliminated in consolidation.</p> <p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p> <p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><b>Oil and Gas Natural Gas Properties</b></p> <p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p> <p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">The Company uses the successful efforts method of accounting for oil and natural gas producing activities, as further defined under ASC 932,<i>&#160;Extractive Activities - Oil and Natural Gas</i>.&#160;&#160;Under these provisions, costs to acquire mineral interests in oil and natural gas properties, to drill exploratory wells that find proved reserves, and to drill and equip development wells are capitalized.&#160;</p> <p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p> <p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">Exploratory drilling costs are capitalized when incurred pending the determination of whether a well has found proved reserves.&#160;&#160;A determination of whether a well has found proved reserves is made shortly after drilling is completed.&#160;&#160;The determination is based on a process that relies on interpretations of available geologic, geophysic and engineering data.&#160;&#160;If a well is determined to be successful, the capitalized drilling costs will be reclassified as part of the cost of the well.&#160;&#160;Capitalized costs of producing oil and natural gas interests are depleted on a unit-of-production basis at the field level.</p> <p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p> <p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">If an exploratory&#160;well is determined to be unsuccessful, the capitalized drilling costs are charged to expense in the period the determination is made.&#160;&#160;If a determination cannot be made as to whether the reserves that have been found can be classified as proved, the cost of drilling the exploratory well is not carried as an asset for more than one year following completion of drilling.&#160;&#160;If, after that year has passed, a determination that proved reserves exist cannot be made, the well is assumed to be impaired and its costs are charged to expense.&#160;&#160;Its cost can, however, continue to be capitalized if a sufficient quantity of reserves is discovered in the well to justify its completion as a producing well and the Company is making sufficient progress assessing the reserves and the economic and operating viability of the project.</p> <p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p> <p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">The carrying value of oil and gas properties is assessed for possible impairment on a field by field basis and on at least an annual basis, or as circumstances warrant, based on geological analysis or changes in proved reserve estimates. When impairment occurs, an adjustment is recorded as a reduction of the asset carrying value.&#160;For the six months ended June 30, 2015 and the year December 31, 2014, the Company&#146;s impairment charge was $0 and $4,428,378. </p> <p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&#160;</p> <p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><b>Other Property and Equipment</b></p> <p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p> <p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">Other property and equipment, which includes field equipment, vehicles, and office equipment, is stated at cost less accumulated depreciation and amortization.&#160;&#160;Depreciation and amortization is computed using the straight-line method over the estimated useful lives of the assets.&#160;&#160;Vehicles and office equipment are generally depreciated over a useful life of five years and field equipment is generally depreciated over a useful life of twenty years.</p> <p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p> <p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"></p> <p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><b>Revenue Recognition and Natural Gas Imbalances</b></p> <p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p> <p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">The Company utilizes the accrual method of accounting for natural gas and crude oil revenues, whereby revenues are recognized based on the Company&#146;s net revenue interest in the wells upon delivery&#160;to third parties.&#160; The Company will also enter into physical contract sale agreements through its normal operations.</p> <p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p> <p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">Gas imbalances are accounted for using the sales method.&#160; Under this method, revenues are recognized based on actual volumes of oil and gas sold to purchasers.&#160; However, the Company has no history of significant gas imbalances.</p> <p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p> <p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><b>Income Taxes</b></p> <p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p> <p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">Deferred income tax assets and liabilities are computed for differences between the financial statement and tax basis of assets and liabilities that will result in future taxable or deductible amounts, based on enacted tax laws and rates applicable to the periods in which the differences are expected to affect taxable income. Valuation allowances are established, when necessary, to reduce deferred income tax assets to the amount expected to be realized.</p> <p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&#160;</p> <p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">The Company is required to determine whether its tax positions are more likely than not to be sustained upon examination by the applicable taxing authority, including resolution of any related appeals or litigation processes, based on the technical merits of the position. The tax benefit recognized is measured as the largest amount of benefit that has a greater than fifty percent likelihood of being realized upon ultimate settlement with the relevant taxing authority. De-recognition of a tax benefit previously recognized results in the Company recording a tax liability that increases expense in that period. Based on its analysis, the Company has determined that it has not incurred any liability for unrecognized tax benefits as of June 30, 2015. The Company&#146;s conclusions may be subject to review and adjustment at a later date based on factors including, but not limited to, on-going analyses of and changes to tax laws, regulations and interpretations thereof.</p> <p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p> <p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">The Company recognizes interest and penalties related to unrecognized tax benefits in interest expense and other expenses, respectively. No interest expense or penalties have been recognized as of June 30, 2015.</p> <p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&#160;</p> <p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><b>&#160;Net Income (Loss) Per Common Share</b></p> <p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p> <p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"></p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">Basic net income (loss) per common share is computed by dividing the net income (loss) attributable to stockholders by the weighted average number of common shares outstanding during the period.&#160;&#160;Diluted net income (loss) per common share is calculated in the same manner, but also considers the impact to common shares for the potential dilution from stock options, non-vested share appreciation rights, non-vested restricted shares and warrants. For the six month period ended June 30, 2015, there were 900,000 potentially dilutive non-vested stock options and 2,542,379 warrants. For the six month period ended June 30, 2014, there were 349,650 potentially dilutive non-vested restricted shares and stock options. The potentially dilutive options and warrants, for June 30, 2015, are considered antidilutive since the Company is in a net loss position&#160;and thus result in the basic net income (loss) per common share equaling the diluted net income (loss) per common share.</p> <p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"></p> <p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p> <p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><b>Use of Estimates</b></p> <p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p> <p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">The preparation of condensed consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the condensed consolidated financial statements and the reported amounts of revenues and expenses during the reporting period.&#160;&#160;Actual results could differ from those estimates.</p> <p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p> <p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">The Company&#146;s estimates of oil and natural gas reserves are, by necessity, projections based on geologic and engineering data, and there are uncertainties inherent in the interpretation of such data as well as the projection of future rates of production and the timing of development expenditures. Reserve engineering is a subjective process of estimating underground accumulations of natural gas and oil that are difficult to measure. The accuracy of any reserve estimate is a function of the quality of available data, engineering and geological interpretation and judgment. Estimates of economically recoverable natural gas and oil reserves and future net cash flows necessarily depend upon a number of variable factors and assumptions, such as historical production from the area compared with production from other producing areas, the assumed effect of regulations by governmental agencies, and assumptions governing future natural gas and oil prices, future operating costs, severance taxes, development costs and workover costs, all of which may in fact vary considerably from actual results. The future drilling costs associated with reserves assigned to prove undeveloped locations may ultimately increase to the extent that these reserves are later determined to be uneconomic. For these reasons, estimates of the economically recoverable quantities of expected natural gas and oil attributable to any particular group of properties, classifications of such reserves based on risk of recovery, and estimates of the future net cash flows may vary substantially. Any significant variance in the assumptions could materially affect the estimated quantity of the reserves, which could affect the carrying value of the Company&#146;s oil and natural gas properties and/or the rate of depletion related to the oil and natural gas properties.</p> <p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p> <p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><b>New Accounting Pronouncement</b><i> </i></p> <p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><i>&#160;</i></p> <p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">In May 2014, the Financial Accounting Standards Board issued a new accounting pronouncement regarding revenue from contracts with customers. This new standard provides guidance on recognizing revenue, including a five step model to determine when revenue recognition is appropriate. The standard requires that an entity recognizes revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. Adoption of the new standard is effective for reporting periods beginning after December 15, 2017 with early adoption not permitted. The Company is currently evaluating the potential impact that the adoption of this standard will have on its financial position, results of operations, and related disclosures, and will adopt the provisions of this new standard in the first quarter of 2018.</p> <p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in; background-color: white">The following tables present information about the Company&#146;s financial assets and liabilities measured at fair value as of June 30, 2015 and December 31, 2014:</p> <p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0">&#160;</p> <table cellspacing="0" cellpadding="0" style="font: 8pt Calibri, Helvetica, Sans-Serif; width: 100%"> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="line-height: 115%">&#160;</td> <td nowrap="nowrap" style="line-height: 115%">&#160;</td> <td colspan="2" nowrap="nowrap" style="line-height: 115%">&#160;</td> <td nowrap="nowrap" style="line-height: 115%">&#160;</td> <td nowrap="nowrap" style="line-height: 115%">&#160;</td> <td colspan="2" nowrap="nowrap" style="line-height: 115%">&#160;</td> <td nowrap="nowrap" style="line-height: 115%">&#160;</td> <td nowrap="nowrap" style="line-height: 115%">&#160;</td> <td colspan="2" nowrap="nowrap" style="line-height: 115%">&#160;</td> <td nowrap="nowrap" style="line-height: 115%">&#160;</td> <td nowrap="nowrap" style="line-height: 115%">&#160;</td> <td colspan="2" nowrap="nowrap" style="text-align: center; line-height: 115%"><font style="font: 8pt Times New Roman, Times, Serif"><b>Balance as of</b></font></td> <td nowrap="nowrap" style="line-height: 115%">&#160;</td></tr> <tr style="vertical-align: bottom"> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td colspan="2" style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td colspan="2" style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td colspan="2" style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td colspan="2" style="text-align: center; line-height: 115%"><font style="font: 8pt Times New Roman, Times, Serif"><b>June 30,</b></font></td> <td style="line-height: 115%">&#160;</td></tr> <tr style="vertical-align: bottom"> <td style="line-height: 115%"><font style="font: 8pt Times New Roman, Times, Serif"><b>($ in thousands)</b></font></td> <td style="line-height: 115%">&#160;</td> <td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center; line-height: 115%"><font style="font: 8pt Times New Roman, Times, Serif"><b>Level 1</b></font></td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center; line-height: 115%"><font style="font: 8pt Times New Roman, Times, Serif"><b>Level 2</b></font></td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center; line-height: 115%"><font style="font: 8pt Times New Roman, Times, Serif"><b>Level 3</b></font></td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center; line-height: 115%"><font style="font: 8pt Times New Roman, Times, Serif"><b>2015</b></font></td> <td style="line-height: 115%">&#160;</td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td style="line-height: 115%"><font style="font: 8pt Times New Roman, Times, Serif">Assets<b>&#160;</b>(at fair value):</font></td> <td style="line-height: 115%">&#160;</td> <td colspan="2" style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td colspan="2" style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td colspan="2" style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td colspan="2" style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="text-indent: 27pt; line-height: 115%; width: 54%"><font style="font: 8pt Times New Roman, Times, Serif">Derivative assets (oil collar and put options)</font></td> <td style="line-height: 115%; width: 1%">&#160;</td> <td style="border-bottom: black 1.5pt solid; line-height: 115%; width: 1%"><font style="font: 8pt Times New Roman, Times, Serif">$</font></td> <td style="border-bottom: black 1.5pt solid; text-align: right; line-height: 115%; width: 8%"><font style="font: 8pt Times New Roman, Times, Serif">-</font></td> <td style="line-height: 115%; width: 1%">&#160;</td> <td style="text-align: right; line-height: 115%; width: 1%">&#160;</td> <td style="border-bottom: black 1.5pt solid; line-height: 115%; width: 1%"><font style="font: 8pt Times New Roman, Times, Serif">$</font></td> <td style="border-bottom: black 1.5pt solid; text-align: right; line-height: 115%; width: 8%"><font style="font: 8pt Times New Roman, Times, Serif">596</font></td> <td style="line-height: 115%; width: 1%">&#160;</td> <td style="line-height: 115%; width: 1%">&#160;</td> <td style="border-bottom: black 1.5pt solid; line-height: 115%; width: 1%"><font style="font: 8pt Times New Roman, Times, Serif">$</font></td> <td style="border-bottom: black 1.5pt solid; text-align: right; line-height: 115%; width: 8%"><font style="font: 8pt Times New Roman, Times, Serif">-</font></td> <td style="line-height: 115%; width: 1%">&#160;</td> <td style="text-align: right; line-height: 115%; width: 1%">&#160;</td> <td style="border-bottom: black 1.5pt solid; line-height: 115%; width: 1%"><font style="font: 8pt Times New Roman, Times, Serif">$</font></td> <td style="border-bottom: black 1.5pt solid; text-align: right; line-height: 115%; width: 10%"><font style="font: 8pt Times New Roman, Times, Serif">596</font></td> <td style="line-height: 115%; width: 1%">&#160;</td></tr> <tr> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td></tr> </table> <p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; background-color: white; text-indent: 0.5in">&#160;</p> <table cellspacing="0" cellpadding="0" style="font: 8pt Calibri, Helvetica, Sans-Serif; width: 100%"> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td style="line-height: 115%"><font style="font: 8pt Times New Roman, Times, Serif">Liabilities<b>&#160;</b>(at fair value):</font></td> <td style="line-height: 115%">&#160;</td> <td colspan="2" style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td colspan="2" style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td colspan="2" style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td colspan="2" style="line-height: 115%">&#160;</td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="text-indent: 27pt; line-height: 115%; width: 55%"><font style="font: 8pt Times New Roman, Times, Serif">Derivative liabilities (oil collar and put options)</font></td> <td style="line-height: 115%; width: 1%">&#160;</td> <td style="border-bottom: black 1.5pt solid; line-height: 115%; width: 1%"><font style="font: 8pt Times New Roman, Times, Serif">$</font></td> <td style="border-bottom: black 1.5pt solid; text-align: right; line-height: 115%; width: 8%"><font style="font: 8pt Times New Roman, Times, Serif">-</font></td> <td style="line-height: 115%; width: 1%">&#160;</td> <td style="text-align: right; line-height: 115%; width: 1%">&#160;</td> <td style="border-bottom: black 1.5pt solid; line-height: 115%; width: 1%"><font style="font: 8pt Times New Roman, Times, Serif">$</font></td> <td style="border-bottom: black 1.5pt solid; text-align: right; line-height: 115%; width: 8%"><font style="font: 8pt Times New Roman, Times, Serif">39</font></td> <td style="line-height: 115%; width: 1%">&#160;</td> <td style="line-height: 115%; width: 1%">&#160;</td> <td style="border-bottom: black 1.5pt solid; line-height: 115%; width: 1%"><font style="font: 8pt Times New Roman, Times, Serif">$</font></td> <td style="border-bottom: black 1.5pt solid; text-align: right; line-height: 115%; width: 8%"><font style="font: 8pt Times New Roman, Times, Serif">-</font></td> <td style="line-height: 115%; width: 1%">&#160;</td> <td style="text-align: right; line-height: 115%; width: 1%">&#160;</td> <td style="border-bottom: black 1.5pt solid; line-height: 115%; width: 1%"><font style="font: 8pt Times New Roman, Times, Serif">$</font></td> <td style="border-bottom: black 1.5pt solid; text-align: right; line-height: 115%; width: 10%"><font style="font: 8pt Times New Roman, Times, Serif">39</font></td></tr> <tr> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td></tr> </table> <p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; background-color: white">&#160;</p> <table cellspacing="0" cellpadding="0" style="font: 8pt Calibri, Helvetica, Sans-Serif; width: 100%"> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="line-height: 115%">&#160;</td> <td nowrap="nowrap" style="line-height: 115%">&#160;</td> <td colspan="2" nowrap="nowrap" style="line-height: 115%">&#160;</td> <td nowrap="nowrap" style="line-height: 115%">&#160;</td> <td nowrap="nowrap" style="line-height: 115%">&#160;</td> <td colspan="2" nowrap="nowrap" style="line-height: 115%">&#160;</td> <td nowrap="nowrap" style="line-height: 115%">&#160;</td> <td nowrap="nowrap" style="line-height: 115%">&#160;</td> <td colspan="2" nowrap="nowrap" style="line-height: 115%">&#160;</td> <td nowrap="nowrap" style="line-height: 115%">&#160;</td> <td nowrap="nowrap" style="line-height: 115%">&#160;</td> <td colspan="2" nowrap="nowrap" style="text-align: center; line-height: 115%"><font style="font: 8pt Times New Roman, Times, Serif"><b>Balance as of</b></font></td> <td nowrap="nowrap" style="line-height: 115%">&#160;</td></tr> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="line-height: 115%">&#160;</td> <td nowrap="nowrap" style="line-height: 115%">&#160;</td> <td colspan="2" nowrap="nowrap" style="line-height: 115%">&#160;</td> <td nowrap="nowrap" style="line-height: 115%">&#160;</td> <td nowrap="nowrap" style="line-height: 115%">&#160;</td> <td colspan="2" nowrap="nowrap" style="line-height: 115%">&#160;</td> <td nowrap="nowrap" style="line-height: 115%">&#160;</td> <td nowrap="nowrap" style="line-height: 115%">&#160;</td> <td colspan="2" nowrap="nowrap" style="line-height: 115%">&#160;</td> <td nowrap="nowrap" style="line-height: 115%">&#160;</td> <td nowrap="nowrap" style="line-height: 115%">&#160;</td> <td colspan="2" nowrap="nowrap" style="text-align: center; line-height: 115%"><font style="font: 8pt Times New Roman, Times, Serif"><b>December 31,</b></font></td> <td nowrap="nowrap" style="line-height: 115%">&#160;</td></tr> <tr style="vertical-align: bottom"> <td style="line-height: 115%"><font style="font: 8pt Times New Roman, Times, Serif"><b>($ in thousands)</b></font></td> <td style="line-height: 115%">&#160;</td> <td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center; line-height: 115%"><font style="font: 8pt Times New Roman, Times, Serif"><b>Level 1</b></font></td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center; line-height: 115%"><font style="font: 8pt Times New Roman, Times, Serif"><b>Level 2</b></font></td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center; line-height: 115%"><font style="font: 8pt Times New Roman, Times, Serif"><b>Level 3</b></font></td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center; line-height: 115%"><font style="font: 8pt Times New Roman, Times, Serif"><b>2014</b></font></td> <td style="line-height: 115%">&#160;</td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td style="line-height: 115%"><font style="font: 8pt Times New Roman, Times, Serif">Assets<b>&#160;</b>(at fair value):</font></td> <td style="line-height: 115%">&#160;</td> <td colspan="2" style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td colspan="2" style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td colspan="2" style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td colspan="2" style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="text-indent: 27pt; line-height: 115%; width: 54%"><font style="font: 8pt Times New Roman, Times, Serif">Derivative assets (oil put options)</font></td> <td style="line-height: 115%; width: 1%">&#160;</td> <td style="border-bottom: black 1.5pt solid; line-height: 115%; width: 1%"><font style="font: 8pt Times New Roman, Times, Serif">$</font></td> <td style="border-bottom: black 1.5pt solid; text-align: right; line-height: 115%; width: 8%"><font style="font: 8pt Times New Roman, Times, Serif">-</font></td> <td style="line-height: 115%; width: 1%">&#160;</td> <td style="text-align: right; line-height: 115%; width: 1%">&#160;</td> <td style="border-bottom: black 1.5pt solid; line-height: 115%; width: 1%"><font style="font: 8pt Times New Roman, Times, Serif">$</font></td> <td style="border-bottom: black 1.5pt solid; text-align: right; line-height: 115%; width: 8%"><font style="font: 8pt Times New Roman, Times, Serif">1,766</font></td> <td style="line-height: 115%; width: 1%">&#160;</td> <td style="line-height: 115%; width: 1%">&#160;</td> <td style="border-bottom: black 1.5pt solid; line-height: 115%; width: 1%"><font style="font: 8pt Times New Roman, Times, Serif">$</font></td> <td style="border-bottom: black 1.5pt solid; text-align: right; line-height: 115%; width: 8%"><font style="font: 8pt Times New Roman, Times, Serif">-</font></td> <td style="line-height: 115%; width: 1%">&#160;</td> <td style="line-height: 115%; width: 1%">&#160;</td> <td style="border-bottom: black 1.5pt solid; line-height: 115%; width: 1%"><font style="font: 8pt Times New Roman, Times, Serif">$</font></td> <td style="border-bottom: black 1.5pt solid; text-align: right; line-height: 115%; width: 10%"><font style="font: 8pt Times New Roman, Times, Serif">1,766</font></td> <td style="line-height: 115%; width: 1%">&#160;</td></tr> </table> <p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">On March 26, 2014 (the &#147;Acquisition Date&#148;), the Company completed the purchase of oil and natural gas leases and leasehold interests (the &#147;Oil and Natural Gas Properties&#148;) from White Oak Resources VI, LLC and Permian Atlantis LLC (collectively the &#147;Seller&#148;) for the purpose of increasing the Company&#146;s oil and natural gas operations in the Permian Basin. The assets acquired are: (a) oil and natural gas leases and leasehold interests in Winkler and Loving Counties in Texas and Lea County, New Mexico; (b) twenty-nine wellbores; and (c) any contracts or agreements related to the foregoing lands, leases and wells. The Oil and Natural Gas Properties include total acreage held by production of 5,160 gross developed acres (1,983.61 net developed acres). Additionally, producing wells and surrounding acreage have been unitized under Texas Railroad Commission regulations. Under the terms of the agreement, the Company purchased the Oil and Natural Gas Properties for $16,803,000 in cash, including before purchase price adjustments.</p> <p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&#160;</p> <p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><b>Subsequent Event</b></p> <p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&#160;</p> <p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">On July 31, 2015, the Company sold all of its Oklahoma properties, which were located in Logan and Kingfisher Counties, Oklahoma, to Remora Petroleum, LP&#160;(Austin, TX)&#160;for $7,249,390.&#160;&#160;The purchaser is not affiliated with any Company officers, directors or material stockholders.</p> <p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&#160;&#160;</p> <p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">The following table summarized the results of operation from the properties sold:</p> <p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&#160;</p> <table cellspacing="0" cellpadding="0" style="font: 8pt Calibri, Helvetica, Sans-Serif; width: 100%; border-collapse: collapse"> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="width: 39%; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%"><font style="font: 8pt Times New Roman, Times, Serif"><b>($ in thousands)</b></font></td> <td nowrap="nowrap" style="width: 9%; padding-right: 5.4pt; padding-left: 5.4pt">&#160;</td> <td nowrap="nowrap" style="width: 7%; padding-right: 5.4pt; padding-left: 5.4pt">&#160;</td> <td style="width: 20%; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; line-height: 115%"><font style="font: 8pt Times New Roman, Times, Serif"><b>Six Month Period Ended June 30, 2015</b></font></td> <td nowrap="nowrap" style="width: 5%; padding-right: 5.4pt; padding-left: 5.4pt">&#160;</td> <td style="width: 20%; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; line-height: 115%"><font style="font: 8pt Times New Roman, Times, Serif"><b>Six Month Period Ended June 30, 2014</b></font></td></tr> <tr style="background-color: #CCEEFF"> <td nowrap="nowrap" colspan="2" style="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%"><font style="font: 8pt Times New Roman, Times, Serif">Oil, natural gas, and related product sales</font></td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&#160;</td> <td nowrap="nowrap" style="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 115%"><font style="font: 8pt Times New Roman, Times, Serif">&#160;$&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;1,350 </font></td> <td nowrap="nowrap" style="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 115%">&#160;</td> <td nowrap="nowrap" style="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 115%"><font style="font: 8pt Times New Roman, Times, Serif">&#160;$&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;3,046 </font></td></tr> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%"><font style="font: 8pt Times New Roman, Times, Serif">Expenses</font></td> <td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt">&#160;</td> <td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt">&#160;</td> <td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 115%"><font style="font: 8pt Times New Roman, Times, Serif">269</font></td> <td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt">&#160;</td> <td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 115%"><font style="font: 8pt Times New Roman, Times, Serif">398</font></td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%"><font style="font: 8pt Times New Roman, Times, Serif">Operating income</font></td> <td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; line-height: 115%">&#160;</td> <td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; line-height: 115%">&#160;</td> <td nowrap="nowrap" style="border-top: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 115%"><font style="font: 8pt Times New Roman, Times, Serif">&#160;$&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;1,081 </font></td> <td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 115%">&#160;</td> <td nowrap="nowrap" style="border-top: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 115%"><font style="font: 8pt Times New Roman, Times, Serif">&#160;$&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;2,648 </font></td></tr> </table> <p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;&#160;</p> <p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">As part of this transaction, the Company entered into the Fifth Amendment to its Credit Agreement with Independent Bank (&#147;Amendment&#148;).&#160;&#160;The Amendment provides that $4,000,000 of the purchase price was paid to Independent Bank to pay down its credit facility with Independent Bank.&#160;&#160;The Amendment requires that an additional $2,000,000 would be held by Independent Bank in a control account.</p> <p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&#160;</p> <p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">The Amendment further states that the Credit Agreement&#146;s $21,000,000 borrowing base is reduced to $17,000,000 and that the Company cannot demand further funds under this Credit Agreement until the next redetermination of the borrowing base and the cure of any deficiency loan amount over the adjusted borrowing base.</p> <p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&#160;</p> <p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">The Amendment also places limits on the use of the $2,000,000 in the control account.&#160;&#160;It provides that the control account funds shall be applied, first, to any borrowing base deficiency after redetermination, and second, to any remaining amount on the loan or to the Company in the sole discretion of Independent Bank.&#160;&#160;The Amendment also requires the Company to use the funds it has received from the Oklahoma properties transaction (after payment of the $4,000,000 to Independent Bank and the&#160;$2,000,000 to the control account)&#160;to its outstanding third party accounts payables.</p> <p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in; background-color: white">The following table presents a summary of the Company&#146;s oil and natural gas properties at June 30, 2015 and December 31, 2014:</p> <p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; background-color: white; text-indent: 0.5in">&#160;</p> <p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in; background-color: white"></p> <table cellspacing="0" cellpadding="0" style="font: 8pt Calibri, Helvetica, Sans-Serif; width: 100%; border-collapse: collapse"> <tr> <td nowrap="nowrap" style="vertical-align: bottom; text-align: justify; line-height: 115%"><font style="font: 8pt Times New Roman, Times, Serif"><b>($ in thousands)</b></font></td> <td nowrap="nowrap" style="vertical-align: top; text-align: justify; line-height: 115%">&#160;</td> <td colspan="2" nowrap="nowrap" style="vertical-align: bottom"> <p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center"><b>Six month period Ended</b></p> <p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center"><b>June 30, 2015</b></p></td> <td nowrap="nowrap" style="vertical-align: top; text-align: justify; line-height: 115%">&#160;</td> <td nowrap="nowrap" style="vertical-align: top; text-align: center; line-height: 115%">&#160;</td> <td colspan="2" nowrap="nowrap" style="vertical-align: top"> <p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center"><b>Year Ended</b></p> <p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center"><b>December 31, 2014</b></p></td> <td nowrap="nowrap" style="vertical-align: top; text-align: justify; line-height: 115%">&#160;</td></tr> <tr style="background-color: #CCECFF"> <td style="vertical-align: bottom; width: 53%; padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify; line-height: 115%"><font style="font: 8pt Times New Roman, Times, Serif">Oil and natural gas properties</font></td> <td style="vertical-align: top; width: 2%; padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify; line-height: 115%">&#160;</td> <td style="vertical-align: top; width: 4%; text-align: justify; line-height: 115%">&#160;</td> <td style="vertical-align: top; width: 14%; text-align: right; line-height: 115%">&#160;</td> <td style="vertical-align: top; width: 2%; padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify; line-height: 115%">&#160;</td> <td style="vertical-align: top; width: 3%; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 115%">&#160;</td> <td style="vertical-align: top; width: 4%; text-align: right; line-height: 115%">&#160;</td> <td style="vertical-align: top; width: 16%; text-align: right; line-height: 115%">&#160;</td> <td style="vertical-align: top; width: 2%; padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify; line-height: 115%">&#160;</td></tr> <tr> <td style="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify; line-height: 115%"><font style="font: 8pt Times New Roman, Times, Serif">&#160;&#160;&#160;Proved-developed producing properties</font></td> <td style="vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify; line-height: 115%">&#160;</td> <td style="vertical-align: top; text-align: justify; line-height: 115%"><font style="font: 8pt Times New Roman, Times, Serif">$</font></td> <td style="vertical-align: top; text-align: right; line-height: 115%"><font style="font: 8pt Times New Roman, Times, Serif">97,729</font></td> <td style="vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify; line-height: 115%">&#160;</td> <td style="vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 115%">&#160;</td> <td style="vertical-align: top; text-align: left; line-height: 115%"><font style="font: 8pt Times New Roman, Times, Serif">$</font></td> <td style="vertical-align: top; text-align: right; line-height: 115%"><font style="font: 8pt Times New Roman, Times, Serif">96,691</font></td> <td style="vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify; line-height: 115%">&#160;</td></tr> <tr style="background-color: #CCECFF"> <td style="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify; line-height: 115%"><font style="font: 8pt Times New Roman, Times, Serif">&#160;&#160;&#160;Proved-developed non-producing properties</font></td> <td style="vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify; line-height: 115%">&#160;</td> <td style="vertical-align: top; text-align: justify; line-height: 115%">&#160;</td> <td style="vertical-align: top; text-align: right; line-height: 115%"><font style="font: 8pt Times New Roman, Times, Serif">3,660</font></td> <td style="vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify; line-height: 115%">&#160;</td> <td style="vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 115%">&#160;</td> <td style="vertical-align: top; text-align: right; line-height: 115%">&#160;</td> <td style="vertical-align: top; text-align: right; line-height: 115%"><font style="font: 8pt Times New Roman, Times, Serif">2,880</font></td> <td style="vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify; line-height: 115%">&#160;</td></tr> <tr> <td style="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify; line-height: 115%"><font style="font: 8pt Times New Roman, Times, Serif">&#160;&#160;&#160;Proved-undeveloped properties</font></td> <td style="vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify; line-height: 115%">&#160;</td> <td style="vertical-align: top; text-align: justify; line-height: 115%">&#160;</td> <td style="vertical-align: top; text-align: right; line-height: 115%"><font style="font: 8pt Times New Roman, Times, Serif">13,274</font></td> <td style="vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify; line-height: 115%">&#160;</td> <td style="vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 115%">&#160;</td> <td style="vertical-align: top; text-align: right; line-height: 115%">&#160;</td> <td style="vertical-align: top; text-align: right; line-height: 115%"><font style="font: 8pt Times New Roman, Times, Serif">13,330</font></td> <td style="vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify; line-height: 115%">&#160;</td></tr> <tr style="background-color: #CCECFF"> <td style="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify; line-height: 115%"><font style="font: 8pt Times New Roman, Times, Serif">&#160;&#160;&#160;Unproved properties</font></td> <td style="vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify; line-height: 115%">&#160;</td> <td style="vertical-align: top; text-align: justify; line-height: 115%">&#160;</td> <td style="vertical-align: top; text-align: right; line-height: 115%"><font style="font: 8pt Times New Roman, Times, Serif">2,045</font></td> <td style="vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify; line-height: 115%">&#160;</td> <td style="vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 115%">&#160;</td> <td style="vertical-align: top; text-align: right; line-height: 115%">&#160;</td> <td style="vertical-align: top; text-align: right; line-height: 115%"><font style="font: 8pt Times New Roman, Times, Serif">1,996</font></td> <td style="vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify; line-height: 115%">&#160;</td></tr> <tr style="background-color: white"> <td style="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify; line-height: 115%"><font style="font: 8pt Times New Roman, Times, Serif">&#160;&#160;&#160;Less: Accumulated depletion</font></td> <td style="vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify; line-height: 115%">&#160;</td> <td style="vertical-align: top; border-bottom: Black 1.5pt double; text-align: justify; line-height: 115%">&#160;</td> <td style="vertical-align: top; border-bottom: Black 1.5pt double; text-align: right; line-height: 115%"><font style="font: 8pt Times New Roman, Times, Serif">(26,403</font></td> <td style="vertical-align: top; border-bottom: Black 1.5pt double; padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify; line-height: 115%; text-indent: -5.4pt"><font style="font: 8pt Times New Roman, Times, Serif">)</font></td> <td style="vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 115%">&#160;</td> <td style="vertical-align: top; border-bottom: Black 1.5pt double; text-align: right; line-height: 115%">&#160;</td> <td style="vertical-align: top; border-bottom: Black 1.5pt double; text-align: right; line-height: 115%"><font style="font: 8pt Times New Roman, Times, Serif">(23,131</font></td> <td style="vertical-align: top; border-bottom: Black 1.5pt double; padding-right: 5.4pt; padding-left: 5.4pt; text-indent: -5.4pt; line-height: 115%"><font style="font: 8pt Times New Roman, Times, Serif">)</font></td></tr> <tr style="background-color: #CCECFF"> <td style="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify; line-height: 115%"><font style="font: 8pt Times New Roman, Times, Serif">Total oil and natural gas properties, net of accumulated depletion</font></td> <td style="vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify; line-height: 115%">&#160;</td> <td style="vertical-align: top; border-bottom: Black 1.5pt double; text-align: justify; line-height: 115%"><font style="font: 8pt Times New Roman, Times, Serif">$</font></td> <td style="vertical-align: top; border-bottom: Black 1.5pt double; text-align: right; line-height: 115%"><font style="font: 8pt Times New Roman, Times, Serif">90,305</font></td> <td style="vertical-align: top; border-bottom: Black 1.5pt double; padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify; line-height: 115%">&#160;</td> <td style="vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 115%">&#160;</td> <td style="vertical-align: top; border-bottom: Black 1.5pt double; text-align: left; line-height: 115%"><font style="font: 8pt Times New Roman, Times, Serif">$</font></td> <td style="vertical-align: top; border-bottom: Black 1.5pt double; text-align: right; line-height: 115%"><font style="font: 8pt Times New Roman, Times, Serif">91,766</font></td> <td style="vertical-align: top; border-bottom: Black 1.5pt double; padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify; line-height: 115%">&#160;</td></tr> </table> <p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in; background-color: white">The Company has recognized the fair value of its asset retirement obligations related to the future costs of plugging, abandonment, and remediation of oil and natural gas producing properties.&#160;&#160;The present value of the estimated asset retirement obligations has been capitalized as part of the carrying amount of the related oil and natural gas properties.&#160;&#160;The liability has been accreted to its present value as of the end of each period.&#160; At June 30, 2015 and December 31, 2014, the Company has determined a range of abandonment dates through March 2061.&#160;&#160;The following table represents a reconciliation of the asset retirement obligations:</p> <p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in; background-color: white">&#160;</p> <table cellspacing="0" cellpadding="0" style="font: 8pt Calibri, Helvetica, Sans-Serif; width: 100%; border-collapse: collapse"> <tr> <td style="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify; line-height: 115%"><font style="font: 8pt Times New Roman, Times, Serif"><b>($ in thousands)</b></font></td> <td colspan="3" style="vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt"> <p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center"><b>Six month period Ended</b></p> <p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center"><b>June 30, 2015</b></p></td> <td style="vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify; line-height: 115%">&#160;</td> <td style="vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; line-height: 115%">&#160;</td> <td colspan="2" style="vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt"> <p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center"><b>Year Ended</b></p> <p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center"><b>December 31, 2014</b></p></td> <td style="vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify; line-height: 115%">&#160;</td></tr> <tr style="vertical-align: top; background-color: #CCECFF"> <td style="width: 53%; padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify; line-height: 115%"><font style="font: 8pt Times New Roman, Times, Serif">Asset retirement obligations, beginning of period</font></td> <td style="width: 2%; padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify; line-height: 115%">&#160;</td> <td style="width: 4%; padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify; line-height: 115%"><font style="font: 8pt Times New Roman, Times, Serif">$</font></td> <td style="width: 14%; padding-right: -2.6pt; text-align: right; line-height: 115%"><font style="font: 8pt Times New Roman, Times, Serif">3,606</font></td> <td style="width: 2%; padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify; line-height: 115%">&#160;</td> <td style="width: 3%; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 115%">&#160;</td> <td style="width: 4%; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 115%"><font style="font: 8pt Times New Roman, Times, Serif">$</font></td> <td style="width: 16%; padding-right: -5.4pt; text-align: right; line-height: 115%"><font style="font: 8pt Times New Roman, Times, Serif">2,437</font></td> <td style="width: 2%; padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify; line-height: 115%">&#160;</td></tr> <tr style="vertical-align: top"> <td style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify; line-height: 115%"><font style="font: 8pt Times New Roman, Times, Serif">Additions&#160;&#160;to asset retirement obligation</font></td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify; line-height: 115%">&#160;</td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify; line-height: 115%">&#160;</td> <td style="padding-right: -2.6pt; text-align: right; line-height: 115%"><font style="font: 8pt Times New Roman, Times, Serif">-</font></td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify; line-height: 115%">&#160;</td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 115%">&#160;</td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 115%">&#160;</td> <td style="padding-right: -5.4pt; text-align: right; line-height: 115%"><font style="font: 8pt Times New Roman, Times, Serif">859</font></td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify; line-height: 115%">&#160;</td></tr> <tr style="vertical-align: top; background-color: #CCECFF"> <td style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify; line-height: 115%"><font style="font: 8pt Times New Roman, Times, Serif">Liabilities settled during the period</font></td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify; line-height: 115%">&#160;</td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify; line-height: 115%">&#160;</td> <td style="padding-right: -2.6pt; text-align: right; line-height: 115%"><font style="font: 8pt Times New Roman, Times, Serif">-</font></td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify; line-height: 115%">&#160;</td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 115%">&#160;</td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 115%">&#160;</td> <td style="padding-right: -5.4pt; text-align: right; line-height: 115%"><font style="font: 8pt Times New Roman, Times, Serif">-</font></td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify; line-height: 115%">&#160;</td></tr> <tr style="vertical-align: top"> <td style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify; line-height: 115%"><font style="font: 8pt Times New Roman, Times, Serif">Accretion of discount</font></td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify; line-height: 115%">&#160;</td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify; line-height: 115%">&#160;</td> <td style="padding-right: -2.6pt; text-align: right; line-height: 115%"><font style="font: 8pt Times New Roman, Times, Serif">128</font></td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify; line-height: 115%">&#160;</td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 115%">&#160;</td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 115%">&#160;</td> <td style="padding-right: -5.4pt; text-align: right; line-height: 115%"><font style="font: 8pt Times New Roman, Times, Serif">320</font></td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify; line-height: 115%">&#160;</td></tr> <tr style="vertical-align: top; background-color: #CCECFF"> <td style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify; line-height: 115%"><font style="font: 8pt Times New Roman, Times, Serif">Revision of estimate</font></td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify; line-height: 115%">&#160;</td> <td style="border-bottom: Black 1.5pt double; padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify; line-height: 115%">&#160;</td> <td style="border-bottom: Black 1.5pt double; padding-right: -2.6pt; text-align: right; line-height: 115%"><font style="font: 8pt Times New Roman, Times, Serif">-</font></td> <td style="border-bottom: Black 1.5pt double; padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify; line-height: 115%">&#160;</td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 115%">&#160;</td> <td style="border-bottom: Black 1.5pt double; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 115%">&#160;</td> <td style="border-bottom: Black 1.5pt double; padding-right: -5.4pt; text-align: right; line-height: 115%"><font style="font: 8pt Times New Roman, Times, Serif">(10</font></td> <td style="border-bottom: Black 1.5pt double; padding-right: 5.4pt; padding-left: 5.4pt; text-indent: -5.4pt; line-height: 115%"><font style="font: 8pt Times New Roman, Times, Serif">)</font></td></tr> <tr style="vertical-align: top"> <td style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify; line-height: 115%"><font style="font: 8pt Times New Roman, Times, Serif">Asset retirement obligations, end of period</font></td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify; line-height: 115%">&#160;</td> <td style="border-bottom: Black 1.5pt double; padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify; line-height: 115%"><font style="font: 8pt Times New Roman, Times, Serif">$</font></td> <td style="border-bottom: Black 1.5pt double; padding-right: -2.6pt; text-align: right; line-height: 115%"><font style="font: 8pt Times New Roman, Times, Serif">3,734</font></td> <td style="border-bottom: Black 1.5pt double; padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify; line-height: 115%">&#160;</td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 115%">&#160;</td> <td style="border-bottom: Black 1.5pt double; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 115%"><font style="font: 8pt Times New Roman, Times, Serif">$</font></td> <td style="border-bottom: Black 1.5pt double; padding-right: -5.4pt; text-align: right; line-height: 115%"><font style="font: 8pt Times New Roman, Times, Serif">3,606</font></td> <td style="border-bottom: Black 1.5pt double; padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify; line-height: 115%">&#160;</td></tr> </table> <p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in; background-color: white">&#160;</p> <p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in; background-color: white">The asset retirement liability is measured using primarily Level 3 inputs.&#160;The significant unobservable inputs to this fair value measurement include estimates of plugging costs, remediation costs, inflation rate and well life.&#160;The inputs are calculated based on historical data as well as current estimated costs.</p> <p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">We entered a &#147;Securities Purchase and Exchange Agreement&#148; dated June 10, 2011, with Longview Marquis Master Fund, L.P., Summerview Marquis Fund, L.P., Longview Marquis Fund, L.P., LMIF Investments, LLC, SMF Investments, LLC, and Summerline Capital Partners, LLC (collectively &#147;Summerline&#148;).&#160;&#160;The Agreement provides that the Company, for any reason, does not go public on or before that date that is one hundred fifty days after the June 13, 2011 (the &#147;Going Public Delay Date&#148;), the Company shall pay to each applicable stockholder an aggregate amount equal to the product of (i) such stockholder&#146;s allocation percentage multiplied by (ii) $60,715 (the &#147;Going Public Delay Fee&#148;) on the last business day of each calendar month, for each such calendar month following the Going Public Delay Date through and including the date of going public (the &#147;Going Public Delay Period&#148;). For any partial calendar months during the Going Public Delay Period, the Going Public Delay Fee shall be pro-rated appropriately.&#160;For the year ended December 31, 2013, the Company incurred a delay fee of approximately $425,000&#160;which is currently included in accrued liabilities on the accompanying condensed consolidated balance sheets.</p> <p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p> <p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><font style="font: 8pt Times New Roman, Times, Serif">Effective August 6, 2013, the Company ceased to incur Going Public Delay Fees due to an effective Form 10 filing.</font></p> <p style="margin: 0pt"></p> <p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">We use derivatives to hedge our oil production.&#160;&#160;Our current hedge position consists of put options, of which some have deferred premiums paid at settlement. These contracts and any future hedging arrangements may expose us to risk of financial loss in certain circumstances, including instances where production is less than expected or oil prices increase.&#160;&#160;In addition, these arrangements may limit the benefit to us of increases in the price of oil.&#160;&#160;Accordingly, our earnings may fluctuate significantly as a result of changes in the fair value of our derivative instrument, which we utilize entirely to hedge our production and do not enter into for speculative purposes. We have not designated the derivative contracts as hedges for accounting purposes, and accordingly, we record the derivative contracts at fair value and recognize changes in fair value in earnings as they occur.</p> <p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&#160;</p> <p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&#160;&#9;At June 30, 2015, we had the following open crude oil derivative contracts:</p> <p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&#160;</p> <p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0"></p> <table cellspacing="0" cellpadding="0" style="font: 8pt Calibri, Helvetica, Sans-Serif; width: 100%; background-color: white"> <tr style="vertical-align: bottom"> <td style="line-height: 115%">&#160;</td> <td style="text-align: center; line-height: 115%">&#160;</td> <td style="text-align: center; line-height: 115%">&#160;</td> <td style="text-align: center; line-height: 115%">&#160;</td> <td style="text-align: right; line-height: 115%">&#160;</td> <td colspan="9" style="border-bottom: black 1.5pt solid; text-align: center; line-height: 115%"><font style="font: 8pt Times New Roman, Times, Serif"><b>June 30, 2015</b></font></td> <td nowrap="nowrap" style="line-height: 115%">&#160;</td></tr> <tr style="vertical-align: bottom"> <td style="width: 27%; line-height: 115%">&#160;</td> <td style="width: 11%; border-bottom: black 1.5pt solid; text-align: center; line-height: 115%"><font style="font: 8pt Times New Roman, Times, Serif">&#160;<b>Instrument</b></font></td> <td style="width: 1%; text-align: center; line-height: 115%">&#160;</td> <td style="width: 13%; border-bottom: black 1.5pt solid; text-align: center; line-height: 115%"><font style="font: 8pt Times New Roman, Times, Serif">&#160;<b>Commodity</b></font></td> <td style="width: 1%; text-align: right; line-height: 115%">&#160;</td> <td style="width: 9%; border-bottom: black 1.5pt solid"> <p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center"><b>Volume</b></p> <p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center"><b>(bbl / month)</b></p></td> <td nowrap="nowrap" style="width: 1%; line-height: 115%">&#160;</td> <td style="width: 8%; border-bottom: black 1.5pt solid"> <p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center"><b>Floor</b></p> <p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center"><b>Price</b></p></td> <td nowrap="nowrap" style="width: 1%; line-height: 115%">&#160;</td> <td style="width: 8%; border-bottom: black 1.5pt solid"> <p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center"><b>Ceilings</b></p> <p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center"><b>Price</b></p></td> <td nowrap="nowrap" style="width: 1%; line-height: 115%">&#160;</td> <td style="width: 8%; border-bottom: black 1.5pt solid"> <p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center"><b>Purchased Put Option</b></p> <p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center"><b>Price</b></p></td> <td nowrap="nowrap" style="width: 1%; line-height: 115%">&#160;</td> <td style="width: 9%; border-bottom: black 1.5pt solid"> <p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center"><b>Fair Value</b></p> <p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center"><b>(in thousands)</b></p></td> <td nowrap="nowrap" style="width: 1%; line-height: 115%">&#160;</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="line-height: 115%"><font style="font: 8pt Times New Roman, Times, Serif">July 2015 &#150; October 2015</font></td> <td style="text-align: center; line-height: 115%"><font style="font: 8pt Times New Roman, Times, Serif">Put</font></td> <td style="line-height: 115%">&#160;</td> <td style="text-align: center; line-height: 115%"><font style="font: 8pt Times New Roman, Times, Serif">Crude Oil</font></td> <td style="text-align: right; line-height: 115%">&#160;</td> <td style="text-align: right; line-height: 115%"><font style="font: 8pt Times New Roman, Times, Serif">6,000</font></td> <td nowrap="nowrap" style="line-height: 115%">&#160;</td> <td style="text-align: right; line-height: 115%">&#160;</td> <td nowrap="nowrap" style="line-height: 115%">&#160;</td> <td style="text-align: right; line-height: 115%">&#160;</td> <td nowrap="nowrap" style="line-height: 115%">&#160;</td> <td nowrap="nowrap" style="text-align: right; line-height: 115%"><font style="font: 8pt Times New Roman, Times, Serif">50.00 &#150; 80.00</font></td> <td nowrap="nowrap" style="line-height: 115%">&#160;</td> <td style="text-align: right; line-height: 115%"><font style="font: 8pt Times New Roman, Times, Serif">296</font></td> <td nowrap="nowrap" style="line-height: 115%">&#160;</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="line-height: 115%"><font style="font: 8pt Times New Roman, Times, Serif">November 2015 &#150; December 2015</font></td> <td style="text-align: center; line-height: 115%"><font style="font: 8pt Times New Roman, Times, Serif">Put</font></td> <td style="line-height: 115%">&#160;</td> <td style="text-align: center; line-height: 115%"><font style="font: 8pt Times New Roman, Times, Serif">Crude Oil</font></td> <td style="text-align: right; line-height: 115%">&#160;</td> <td style="text-align: right; line-height: 115%"><font style="font: 8pt Times New Roman, Times, Serif">2,800</font></td> <td nowrap="nowrap" style="line-height: 115%">&#160;</td> <td style="text-align: right; line-height: 115%">&#160;</td> <td nowrap="nowrap" style="line-height: 115%">&#160;</td> <td style="text-align: right; line-height: 115%">&#160;</td> <td nowrap="nowrap" style="line-height: 115%">&#160;</td> <td style="text-align: right; line-height: 115%"><font style="font: 8pt Times New Roman, Times, Serif">80.00</font></td> <td nowrap="nowrap" style="line-height: 115%">&#160;</td> <td style="text-align: right; line-height: 115%"><font style="font: 8pt Times New Roman, Times, Serif">92</font></td> <td nowrap="nowrap" style="line-height: 115%">&#160;</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="line-height: 115%"><font style="font: 8pt Times New Roman, Times, Serif">July 2015 &#150; December 2015</font></td> <td style="text-align: center; line-height: 115%"><font style="font: 8pt Times New Roman, Times, Serif">Put</font></td> <td style="line-height: 115%">&#160;</td> <td style="text-align: center; line-height: 115%"><font style="font: 8pt Times New Roman, Times, Serif">Crude Oil</font></td> <td style="text-align: right; line-height: 115%">&#160;</td> <td style="text-align: right; line-height: 115%"><font style="font: 8pt Times New Roman, Times, Serif">4,000</font></td> <td nowrap="nowrap" style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td nowrap="nowrap" style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td nowrap="nowrap" style="line-height: 115%">&#160;</td> <td style="text-align: right; line-height: 115%"><font style="font: 8pt Times New Roman, Times, Serif">70.00</font></td> <td nowrap="nowrap" style="line-height: 115%">&#160;</td> <td style="text-align: right; line-height: 115%"><font style="font: 8pt Times New Roman, Times, Serif">203</font></td> <td nowrap="nowrap" style="line-height: 115%">&#160;</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="line-height: 115%"><font style="font: 8pt Times New Roman, Times, Serif">January 2016 &#150; March 2016</font></td> <td style="text-align: center; line-height: 115%"><font style="font: 8pt Times New Roman, Times, Serif">Put</font></td> <td style="line-height: 115%">&#160;</td> <td style="text-align: center; line-height: 115%"><font style="font: 8pt Times New Roman, Times, Serif">Crude Oil</font></td> <td style="text-align: right; line-height: 115%">&#160;</td> <td style="text-align: right; line-height: 115%"><font style="font: 8pt Times New Roman, Times, Serif">1,500</font></td> <td nowrap="nowrap" style="line-height: 115%">&#160;</td> <td style="text-align: right; line-height: 115%">&#160;</td> <td nowrap="nowrap" style="line-height: 115%">&#160;</td> <td style="text-align: right; line-height: 115%">&#160;</td> <td nowrap="nowrap" style="line-height: 115%">&#160;</td> <td style="text-align: right; line-height: 115%"><font style="font: 8pt Times New Roman, Times, Serif">75.00</font></td> <td nowrap="nowrap" style="line-height: 115%">&#160;</td> <td style="text-align: right; line-height: 115%"><font style="font: 8pt Times New Roman, Times, Serif">52</font></td> <td nowrap="nowrap" style="line-height: 115%">&#160;</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="line-height: 115%"><font style="font: 8pt Times New Roman, Times, Serif">January 2016 &#150; December 2016</font></td> <td style="text-align: center; line-height: 115%"><font style="font: 8pt Times New Roman, Times, Serif">Put</font></td> <td style="line-height: 115%">&#160;</td> <td style="text-align: center; line-height: 115%"><font style="font: 8pt Times New Roman, Times, Serif">Crude Oil</font></td> <td style="text-align: right; line-height: 115%">&#160;</td> <td style="text-align: right; line-height: 115%"><font style="font: 8pt Times New Roman, Times, Serif">3,000</font></td> <td nowrap="nowrap" style="line-height: 115%">&#160;</td> <td>&#160;</td> <td nowrap="nowrap" style="line-height: 115%">&#160;</td> <td>&#160;</td> <td nowrap="nowrap" style="line-height: 115%">&#160;</td> <td style="text-align: right; line-height: 115%"><font style="font: 8pt Times New Roman, Times, Serif">50.00&#160;</font></td> <td nowrap="nowrap" style="line-height: 115%">&#160;</td> <td style="text-align: right; line-height: 115%"><font style="font: 8pt Times New Roman, Times, Serif">(25</font></td> <td nowrap="nowrap" style="line-height: 115%"><font style="font: 8pt Times New Roman, Times, Serif">)&#160;</font></td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="line-height: 115%"><font style="font: 8pt Times New Roman, Times, Serif">January 2016 &#150; December 2016</font></td> <td style="text-align: center; line-height: 115%"><font style="font: 8pt Times New Roman, Times, Serif">Collar</font></td> <td style="line-height: 115%">&#160;</td> <td style="text-align: center; line-height: 115%"><font style="font: 8pt Times New Roman, Times, Serif">Crude Oil</font></td> <td style="text-align: right; line-height: 115%">&#160;</td> <td style="text-align: right; line-height: 115%"><font style="font: 8pt Times New Roman, Times, Serif">3,000</font></td> <td nowrap="nowrap" style="line-height: 115%">&#160;</td> <td style="text-align: right; line-height: 115%"><font style="font: 8pt Times New Roman, Times, Serif">54.00</font></td> <td nowrap="nowrap" style="line-height: 115%">&#160;</td> <td style="text-align: right; line-height: 115%"><font style="font: 8pt Times New Roman, Times, Serif">79.30</font></td> <td nowrap="nowrap" style="line-height: 115%">&#160;</td> <td style="text-align: right; line-height: 115%">&#160;</td> <td nowrap="nowrap" style="line-height: 115%">&#160;</td> <td style="text-align: right; line-height: 115%"><font style="font: 8pt Times New Roman, Times, Serif">(61</font></td> <td nowrap="nowrap" style="line-height: 115%"><font style="font: 8pt Times New Roman, Times, Serif">)</font></td></tr> </table> <p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0">&#160;</p> <p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">The following tables identify the fair value amounts of derivative instruments included in the accompanying consolidated balance sheets as derivative contracts, categorized by primary underlying risk. Balances are presented on a gross basis, prior to the application of the impact of counterparty and collateral netting. The following tables also identify the net gain (loss) amounts included in the accompanying consolidated statements of operations as gain (loss) from derivative contracts.</p> <p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p> <p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">Fair Value of Derivative Financial Instruments</p> <p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0">&#160;</p> <table cellspacing="0" cellpadding="0" style="font: 8pt Calibri, Helvetica, Sans-Serif; width: 100%; border-collapse: collapse"> <tr style="vertical-align: top"> <td style="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%"><font style="font: 8pt Times New Roman, Times, Serif"><b>($ in thousands)</b></font></td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&#160;</td> <td colspan="3" style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; line-height: 115%"><font style="font: 8pt Times New Roman, Times, Serif"><b>June 30, 2015</b></font></td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; line-height: 115%">&#160;</td> <td colspan="2" style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; line-height: 115%"><font style="font: 8pt Times New Roman, Times, Serif"><b>December 31, 2014</b></font></td></tr> <tr style="vertical-align: top; background-color: #CCECFF"> <td style="width: 48%; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%"><font style="font: 8pt Times New Roman, Times, Serif">Derivative financial instruments - Current asset</font></td> <td style="width: 2%; padding-right: -5.65pt; text-align: right; line-height: 115%"><font style="font: 8pt Times New Roman, Times, Serif">$</font></td> <td style="width: 24%; padding-right: -2.8pt; text-align: right; line-height: 115%"><font style="font: 8pt Times New Roman, Times, Serif">596</font></td> <td style="width: 4%; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&#160;</td> <td style="width: 3%; padding-right: -5.65pt; text-align: right; line-height: 115%">&#160;</td> <td style="width: 2%; padding-right: -5.65pt; text-align: right; line-height: 115%"><font style="font: 8pt Times New Roman, Times, Serif">$</font></td> <td style="width: 15%; padding-right: -2.8pt; text-align: right; line-height: 115%"><font style="font: 8pt Times New Roman, Times, Serif">1,699</font></td> <td style="width: 2%; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&#160;</td></tr> <tr style="vertical-align: top; background-color: white"> <td style="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%"><font style="font: 8pt Times New Roman, Times, Serif">Derivative financial instruments - Long-term assets</font></td> <td style="padding-right: -5.65pt; text-align: right; line-height: 115%">&#160;</td> <td style="padding-right: -2.8pt; text-align: right; line-height: 115%"><font style="font: 8pt Times New Roman, Times, Serif">-</font></td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&#160;</td> <td style="padding-right: -5.65pt; text-align: right; line-height: 115%">&#160;</td> <td style="padding-right: -5.65pt; text-align: right; line-height: 115%">&#160;</td> <td style="padding-right: -2.8pt; text-align: right; line-height: 115%"><font style="font: 8pt Times New Roman, Times, Serif">67</font></td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&#160;</td></tr> <tr style="vertical-align: top; background-color: #CCECFF"> <td style="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%"><font style="font: 8pt Times New Roman, Times, Serif">Derivative financial instruments - Current liabilities</font></td> <td style="padding-right: -5.65pt; text-align: right; line-height: 115%">&#160;</td> <td style="padding-right: -2.8pt; text-align: right; line-height: 115%; vertical-align: top"><font style="font: 8pt Times New Roman, Times, Serif">(39</font></td> <td style="padding-right: 5.4pt; line-height: 115%; text-align: left; vertical-align: top; padding-left: -10pt">)&#160;</td> <td style="padding-right: -5.65pt; text-align: right; line-height: 115%">&#160;</td> <td style="padding-right: -5.65pt; text-align: right; line-height: 115%">&#160;</td> <td style="padding-right: -2.8pt; text-align: right; line-height: 115%"><font style="font: 8pt Times New Roman, Times, Serif">-</font></td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&#160;</td></tr> <tr style="vertical-align: top; background-color: white"> <td style="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%"><font style="font: 8pt Times New Roman, Times, Serif">Derivative financial instruments - Long-term liabilities</font></td> <td style="border-bottom: Black 1.5pt double; padding-right: -5.65pt; text-align: right; line-height: 115%">&#160;</td> <td style="border-bottom: Black 1.5pt double; padding-right: -2.8pt; text-align: right; line-height: 115%"><font style="font: 8pt Times New Roman, Times, Serif">-</font></td> <td style="border-bottom: Black 1.5pt double; padding-left: 1pt; text-indent: -1pt; line-height: 115%">&#160;</td> <td style="padding-right: -5.65pt; text-align: right; line-height: 115%">&#160;</td> <td style="border-bottom: Black 1.5pt double; padding-right: -5.65pt; text-align: right; line-height: 115%">&#160;</td> <td style="border-bottom: Black 1.5pt double; padding-right: -2.8pt; text-align: right; line-height: 115%"><font style="font: 8pt Times New Roman, Times, Serif">-</font></td> <td style="border-bottom: Black 1.5pt double; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&#160;</td></tr> <tr style="vertical-align: top; background-color: #CCECFF"> <td style="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%"><font style="font: 8pt Times New Roman, Times, Serif">Net derivative financial instruments</font></td> <td style="border-bottom: Black 1.5pt double; padding-right: -5.65pt; text-align: right; line-height: 115%"><font style="font: 8pt Times New Roman, Times, Serif">$</font></td> <td style="border-bottom: Black 1.5pt double; padding-right: -2.8pt; text-align: right; line-height: 115%"><font style="font: 8pt Times New Roman, Times, Serif">557</font></td> <td style="border-bottom: Black 1.5pt double; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&#160;</td> <td style="padding-right: -5.65pt; text-align: right; line-height: 115%">&#160;</td> <td style="border-bottom: Black 1.5pt double; padding-right: -5.65pt; text-align: right; line-height: 115%"><font style="font: 8pt Times New Roman, Times, Serif">$</font></td> <td style="border-bottom: Black 1.5pt double; padding-right: -2.8pt; text-align: right; line-height: 115%"><font style="font: 8pt Times New Roman, Times, Serif">1,766</font></td> <td style="border-bottom: Black 1.5pt double; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&#160;</td></tr> </table> <p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0">&#160;</p> <p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&#160;Effect of Derivative Financial Instruments</p> <p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0">&#160;</p> <table cellspacing="0" cellpadding="0" style="font: 8pt Calibri, Helvetica, Sans-Serif; width: 100%"> <tr style="vertical-align: bottom"> <td style="line-height: 115%"><font style="font: 8pt Times New Roman, Times, Serif"><b>($ in thousands)</b></font></td> <td style="line-height: 115%">&#160;</td> <td colspan="2" style="border-bottom: black 1.5pt solid"> <p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center"><b>June 30,</b></p> <p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center"><b>2015</b></p></td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td colspan="3" style="border-bottom: black 1.5pt solid"><p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center"><b>June 30,</b></p> <p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center"><b>2014</b></p> </td></tr> <tr style="vertical-align: bottom"> <td style="width: 62%; line-height: 115%"><font style="font: 8pt Times New Roman, Times, Serif">Realized gain/(loss) on settlement of derivative contracts</font></td> <td style="width: 3%; line-height: 115%">&#160;</td> <td style="width: 2%; line-height: 115%"><font style="font: 8pt Times New Roman, Times, Serif">$</font></td> <td style="width: 11%; text-align: right; line-height: 115%"><font style="font: 8pt Times New Roman, Times, Serif">976</font></td> <td style="width: 1%; line-height: 115%">&#160;</td> <td style="width: 3%; line-height: 115%">&#160;</td> <td style="width: 5%; text-align: right; line-height: 115%"><font style="font: 8pt Times New Roman, Times, Serif">$</font></td> <td style="width: 8%; text-align: right; line-height: 115%"><br /> <font style="font: 8pt Times New Roman, Times, Serif">(57</font></td> <td style="width: 5%; line-height: 115%"><font style="font: 8pt Times New Roman, Times, Serif">)</font></td></tr> <tr style="vertical-align: bottom; background-color: #CCECFF"> <td style="line-height: 115%"><font style="font: 8pt Times New Roman, Times, Serif">Unrealized gain/(loss) from derivative contracts</font></td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="border-bottom: Black 1pt solid; text-align: right; line-height: 115%"><font style="font: 8pt Times New Roman, Times, Serif">(1,209</font></td> <td style="border-bottom: Black 1pt solid; line-height: 115%"><font style="font: 8pt Times New Roman, Times, Serif">)</font></td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="border-bottom: Black 1pt solid; text-align: right; line-height: 115%"><font style="font: 8pt Times New Roman, Times, Serif">170</font></td> <td style="border-bottom: Black 1pt solid; line-height: 115%">&#160;</td></tr> <tr style="vertical-align: bottom"> <td style="line-height: 115%"><font style="font: 8pt Times New Roman, Times, Serif">Realized/Unrealized gain/(loss) from derivative contracts</font></td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%"><font style="font: 8pt Times New Roman, Times, Serif">$</font></td> <td style="border-top: Black 1pt solid; border-bottom: Black 1.5pt double; text-align: right; line-height: 115%"><font style="font: 8pt Times New Roman, Times, Serif">(233</font></td> <td style="border-top: Black 1pt solid; border-bottom: Black 1.5pt double; line-height: 115%"><font style="font: 8pt Times New Roman, Times, Serif">)</font></td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="border-top: Black 1pt solid; border-bottom: Black 1.5pt double; text-align: right; line-height: 115%"><font style="font: 8pt Times New Roman, Times, Serif">113</font></td> <td style="border-top: Black 1pt solid; border-bottom: Black 1.5pt double; line-height: 115%"><font style="font: 8pt Times New Roman, Times, Serif"></font></td></tr> </table> <p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in; background-color: white">On June 27, 2013, the Company entered into a credit agreement (&#147;Credit Agreement&#148;) with Independent Bank to borrow up to $100,000,000 at a current rate of 4.00% annum. The Credit Agreement was obtained to fund the development of the Company&#146;s oil and natural gas properties and refinance the prior bank facility.&#160;&#160;At June 30, 2015 and December 31, 2014, the Company had approximately $21,000,000 and $22,500,000 in borrowings outstanding under the Credit Agreement, respectively.</p> <p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in; background-color: white">&#160;</p> <p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in; background-color: white">The Credit Agreement provides for a borrowing base of $21,250,000 as of June 30, 2015, which is re-determined semi-annually and upon requested special redeterminations.&#160;&#160;Further, under the April 15, 2015 Amendment to the Credit Agreement, the borrowing base is reduced by $250,000 per month before September 1, 2015 and $350,000 per month thereafter, unless re-determined after 150 days from the date of the Amendment. The Company is obligated to provide Independent Bank an engineering report acceptable to the Bank as of September 1, 2015 showing proven and producing and proven undeveloped oil and gas reserves, discounted present value of future net income for the Company&#146;s oil and gas properties as of September 1, 2015, projections of annual rate of production, gross income and net income relating to these reserves and take-or-pay, prepayment and gas balancing obligations. Additionally, the borrowing base may be adjusted at the financial institution&#146;s discretion which is based in part upon external factors over which the Company has no control. If the re-determined borrowing base were to be less than outstanding borrowings under the Credit Agreement, the Company would be required to repay the deficit. The Company incurs a commitment fee of 0.5% on the unused portion of the credit facility or if less, the borrowing base. The Credit Agreement matures on June 1, 2016.</p> <p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in; background-color: white">&#160;</p> <p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in; background-color: white">Loans under the Credit Agreement bear interest at the greater of: (1) the prime rate, the annual rate of interest announced by the Wall Street Journal as its &#147;prime rate&#148;, or (2) the floor rate of 4.00%.</p> <p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in; background-color: white">&#160;</p> <p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in; background-color: white">The Credit Agreement is collateralized by the oil and natural gas properties and contains several restrictive covenants including, among others:&#160;&#160;(1) a requirement to maintain a current ratio, of not less than 1.0 to 1.0; (2) a maximum permitted ratio of debt to adjusted EBITDAX of not more than 3.5 to 1.0; (3) a maximum permitted ratio of adjusted EBITDAX to interest expense of not more than 3.0 to 1.0; and (4) a prohibition against incurring debt, subject to permitted exceptions. The Company is not in compliance with its debt covenants at June 30, 2015 however, it is currently working with Independent bank on a waiver for these violations.</p> <p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; background-color: white; text-indent: 0.5in">&#160;</p> <p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in; background-color: white">The Amendment also allows the assignment of an overriding royalty interest as stated in the related amendment to the Intercreditors&#146; Agreement between&#160;Independent Bank, the Company and SOSventures, LLC.</p> <p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; background-color: white; text-indent: 0.5in">&#160;</p> <p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in; background-color: white">The Company is obligated to commence drilling a well in the Crittenden Field within 45 days of the date of the Amendment and a second well in the&#160;Crittenden Field within 90 days of the date of the Amendment.</p> <p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; background-color: white; text-indent: 0.5in">&#160;</p> <p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in; background-color: white">The Amendment includes a suspension of Independent Bank&#146;s rights to exercise its remedies prior to 150 days after the Amendment caused solely by the&#160;occurrence of a borrowing base deficiency. It also includes a suspension of Independent Bank&#146;s obligation to extend loans, letters of credit or renewals or extensions of letters of credit agreement under the Credit Agreement for 150 days after the date of the Amendment.</p> <p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; background-color: white; text-indent: 0.5in">&#160;</p> <p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in; background-color: white">The Amendment further provides that the Company will be required execute and maintain crude oil hedges on a minimum of 80.0% of Projected Production&#160;on a rolling 20 months basis.</p> <p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; background-color: white; text-indent: 0.5in">&#160;</p> <p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in; background-color: white">The Company repaid its term loan at closing with both principal and interest, repaid the note principal to reduce the note to no more than&#160;the borrowing base, including the repayment of interest, pay certain fees, deposit $5,000,000 into a special account and SOSventures provided an additional $2,000,000 of availability under the Subordinated credit facility with SOSventures, LLC for drilling capital.</p> <p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in; background-color: white">&#160;</p> <p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in; background-color: white">&#160;On March 26, 2014, the Company entered into a term loan agreement with Independent Bank totaling $4,000,000 at a current rate of 6.75% annum.&#160;&#160;The agreement was obtained to fund the development of the Company&#146;s acquisition of oil and natural gas properties. The term loan had an outstanding balance of approximately $2,941,000 outstanding at December 31, 2014. The term loan was paid in full on April 15, 2015.</p> <p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in; background-color: white">On April 1, 2012, the Company entered into employment agreements (the &#147;Employment Agreement&#148;) which provided a restricted stock grant and a conditional performance award to key members of management.</p> <p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in; background-color: white">&#160;</p> <p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in; background-color: white">The restricted stock grant of 349,650 shares had a grant date fair value of $10.00 per share and vests in full upon the earlier of an initial public offering (&#147;IPO&#148;) which includes the sale of shares to the public, a business combination whereas 50% or more of the voting power is transferred to the new owners, or March 1, 2015.&#160;&#160;Those 349,650 shares were earned by the employee recipients and issued to them during the three month period ending March 31, 2015.</p> <p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in; background-color: white">&#160;</p> <p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in; background-color: white">During the six months ended June 30, 2015 and 2014, the Company incurred a stock-based compensation expense of approximately $300,000 and $600,000, respectively, related to the restricted stock grant, which is included in the accompanying condensed consolidated statements of operations in general and administrative expenses.&#160;&#160;&#160;</p> <p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in; background-color: white">&#160;</p> <p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in; background-color: white">Additionally, the employment agreements provide for a conditional performance award where if an IPO occurs, the employee will receive: (1) a cash payment of 1% of the difference between the Company market capital and the book value at the time of the IPO, (2) common stock options to purchase 1.0% of the fully-diluted capital stock as of the IPO date and IPO price which will vest over a four year period and contain a cashless exercise, (3) common stock options to purchase 1.0% of the fully-diluted capital stock as of the 2nd anniversary of the IPO date at the closing price of the common stock on the 2nd anniversary date of the IPO and will vest six years after the grant and contain a cashless exercise.&#160;&#160;As of the six month period ended June 30, 2015 and 2014, the conditional performance feature is not probable and as such, no compensation expense related to the conditional performance feature has been recognized.</p> <p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in; background-color: white">&#160;</p> <p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in; background-color: white">On August 30, 2014, the Company amended and restated the Employment Agreement which provided for additional stock options.</p> <p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in; background-color: white">&#160;</p> <p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in; background-color: white">The equity award of options to purchase 900,000 shares at the exercise price of $4.75 per share and vesting over three years from September 4, 2014 with a one-year cliff (in respect of 300,000 shares) and monthly vesting thereafter of 25,000 shares over the remaining two years. During the six months ended June 30, 2015, the Company incurred a stock-based compensation expense of approximately $413,000 related to stock option, which is included in the accompanying condensed consolidated statements of operations in general and administrative expenses.&#160;&#160;As of June 30, 2015, there was approximately $1,800,000 of unrecognized stock-based compensation related to the non-vested stock options.</p> <p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in; background-color: white">&#160;</p> <p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in; background-color: white">The assumptions used in the Black-Scholes Option Pricing Model for the stock options granted were as follows:</p> <p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; background-color: white">&#160;</p> <table cellspacing="0" cellpadding="0" style="font: 8pt Calibri, Helvetica, Sans-Serif; width: 100%"> <tr style="vertical-align: bottom"> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center; line-height: 115%"><font style="font: 8pt Times New Roman, Times, Serif"><b>2014</b></font></td> <td nowrap="nowrap" style="line-height: 115%">&#160;</td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td style="width: 63%; line-height: 115%"><font style="font: 8pt Times New Roman, Times, Serif">Risk-free interest rate</font></td> <td style="width: 7%; line-height: 115%">&#160;</td> <td style="width: 10%; line-height: 115%">&#160;</td> <td style="width: 18%; text-align: right; line-height: 115%"><font style="font: 8pt Times New Roman, Times, Serif">1.87</font></td> <td nowrap="nowrap" style="width: 2%; line-height: 115%"><font style="font: 8pt Times New Roman, Times, Serif">%</font></td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="line-height: 115%"><font style="font: 8pt Times New Roman, Times, Serif">Expected volatility of common stock</font></td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="text-align: right; line-height: 115%"><font style="font: 8pt Times New Roman, Times, Serif">92</font></td> <td nowrap="nowrap" style="line-height: 115%"><font style="font: 8pt Times New Roman, Times, Serif">%</font></td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td style="line-height: 115%"><font style="font: 8pt Times New Roman, Times, Serif">Dividend yield</font></td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%"><font style="font: 8pt Times New Roman, Times, Serif">$</font></td> <td style="text-align: right; line-height: 115%"><font style="font: 8pt Times New Roman, Times, Serif">0.00</font></td> <td nowrap="nowrap" style="line-height: 115%">&#160;</td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="line-height: 115%"><font style="font: 8pt Times New Roman, Times, Serif">Expected life of options</font></td> <td style="line-height: 115%">&#160;</td> <td colspan="2" style="text-align: center; line-height: 115%"><font style="font: 8pt Times New Roman, Times, Serif">5.72 years</font></td> <td nowrap="nowrap" style="line-height: 115%">&#160;</td></tr> </table> <p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; background-color: white; text-indent: 0.5in">&#160;</p> <p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in; background-color: white">The following table summarizes information about stock option activity and related information for the six months ended June 30, 2015</p> <p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; background-color: white; text-indent: 0.5in">&#160;</p> <table cellspacing="0" cellpadding="0" style="font: 8pt Calibri, Helvetica, Sans-Serif; width: 100%"> <tr style="vertical-align: bottom"> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center; line-height: 115%"><font style="font: 8pt Times New Roman, Times, Serif"><b>Number of Shares Underlying Options</b></font></td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center; line-height: 115%"><font style="font: 8pt Times New Roman, Times, Serif"><b>Weighted Average Exercise Price per Share</b></font></td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center; line-height: 115%"><font style="font: 8pt Times New Roman, Times, Serif"><b>Weighted Average Grant Date Fair Value per Share</b></font></td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center; line-height: 115%"><font style="font: 8pt Times New Roman, Times, Serif"><b>Weighted Average Remaining Contractual Life (in Years)</b></font></td> <td style="line-height: 115%">&#160;</td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td style="width: 44%; line-height: 115%"><font style="font: 8pt Times New Roman, Times, Serif">Outstanding at December 31, 2014</font></td> <td style="width: 1%; line-height: 115%">&#160;</td> <td style="width: 1%; line-height: 115%">&#160;</td> <td style="width: 11%; text-align: right; line-height: 115%"><font style="font: 8pt Times New Roman, Times, Serif">900,000</font></td> <td style="width: 1%; line-height: 115%">&#160;</td> <td style="width: 1%; line-height: 115%">&#160;</td> <td style="width: 1%; line-height: 115%"><font style="font: 8pt Times New Roman, Times, Serif">$</font></td> <td style="width: 11%; text-align: right; line-height: 115%"><font style="font: 8pt Times New Roman, Times, Serif">-</font></td> <td style="width: 1%; line-height: 115%">&#160;</td> <td style="width: 1%; line-height: 115%">&#160;</td> <td style="width: 1%; line-height: 115%"><font style="font: 8pt Times New Roman, Times, Serif">$</font></td> <td style="width: 11%; text-align: right; line-height: 115%"><font style="font: 8pt Times New Roman, Times, Serif">-</font></td> <td style="width: 1%; line-height: 115%">&#160;</td> <td style="width: 1%; line-height: 115%">&#160;</td> <td style="width: 1%; line-height: 115%">&#160;</td> <td style="width: 11%; text-align: right; line-height: 115%"><font style="font: 8pt Times New Roman, Times, Serif">-</font></td> <td style="width: 1%; line-height: 115%">&#160;</td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="text-indent: 0.5in; line-height: 115%"><font style="font: 8pt Times New Roman, Times, Serif">Granted</font></td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="text-align: right; line-height: 115%"><font style="font: 8pt Times New Roman, Times, Serif">-</font></td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="text-align: right; line-height: 115%"><font style="font: 8pt Times New Roman, Times, Serif">4.75</font></td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="text-align: right; line-height: 115%"><font style="font: 8pt Times New Roman, Times, Serif">2.75</font></td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="text-align: right; line-height: 115%"><font style="font: 8pt Times New Roman, Times, Serif">10</font></td> <td style="line-height: 115%">&#160;</td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td style="text-indent: 0.5in; line-height: 115%"><font style="font: 8pt Times New Roman, Times, Serif">Exercised</font></td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="text-align: right; line-height: 115%"><font style="font: 8pt Times New Roman, Times, Serif">-</font></td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="text-align: right; line-height: 115%"><font style="font: 8pt Times New Roman, Times, Serif">-</font></td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="text-align: right; line-height: 115%"><font style="font: 8pt Times New Roman, Times, Serif">-</font></td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="text-align: right; line-height: 115%"><font style="font: 8pt Times New Roman, Times, Serif">-</font></td> <td style="line-height: 115%">&#160;</td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="text-indent: 0.5in; line-height: 115%"><font style="font: 8pt Times New Roman, Times, Serif">Forfeited</font></td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="text-align: right; line-height: 115%"><font style="font: 8pt Times New Roman, Times, Serif">-</font></td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="text-align: right; line-height: 115%"><font style="font: 8pt Times New Roman, Times, Serif">-</font></td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="border-bottom: Black 1.5pt double; text-align: right; line-height: 115%"><font style="font: 8pt Times New Roman, Times, Serif">-</font></td> <td style="border-bottom: Black 1.5pt double; line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="border-bottom: Black 1.5pt double; text-align: right; line-height: 115%"><font style="font: 8pt Times New Roman, Times, Serif">-</font></td> <td style="border-bottom: Black 1.5pt double; line-height: 115%">&#160;</td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td style="line-height: 115%"><font style="font: 8pt Times New Roman, Times, Serif">Outstanding at June 30, 2015</font></td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="border-top: Black 1pt solid; border-bottom: Black 1.5pt double; text-align: right; line-height: 115%"><font style="font: 8pt Times New Roman, Times, Serif">900,000</font></td> <td style="border-top: Black 1pt solid; border-bottom: Black 1.5pt double; line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="border-top: Black 1pt solid; border-bottom: Black 1.5pt double; text-align: right; line-height: 115%"><font style="font: 8pt Times New Roman, Times, Serif">4.75</font></td> <td style="border-top: Black 1pt solid; border-bottom: Black 1.5pt double; line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="border-bottom: Black 1.5pt double; text-align: right; line-height: 115%"><font style="font: 8pt Times New Roman, Times, Serif">2.75</font></td> <td style="border-bottom: Black 1.5pt double; line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="border-bottom: Black 1.5pt double; text-align: right; line-height: 115%"><font style="font: 8pt Times New Roman, Times, Serif">10</font></td> <td style="border-bottom: Black 1.5pt double; line-height: 115%">&#160;</td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="line-height: 115%"><font style="font: 8pt Times New Roman, Times, Serif">Exercisable at June 30, 2015</font></td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="text-align: right; line-height: 115%"><font style="font: 8pt Times New Roman, Times, Serif">-</font></td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="text-align: right; line-height: 115%"><font style="font: 8pt Times New Roman, Times, Serif">-</font></td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="text-align: right; line-height: 115%"><font style="font: 8pt Times New Roman, Times, Serif">-</font></td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="text-align: right; line-height: 115%"><font style="font: 8pt Times New Roman, Times, Serif">-</font></td> <td style="line-height: 115%">&#160;</td></tr> </table> <p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; background-color: white"><b>Related Party Credit Agreement</b></p> <p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; background-color: white; text-indent: 0.5in">&#160;</p> <p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in; background-color: white">On March 29, 2013, the Company entered a credit agreement with SOSventures, LLC providing for a term loan through February 16, 2016 in an amount up to $10,000,000 at a 17.00% interest rate through March 29, 2014 and 22.00% interest rate thereafter.&#160;&#160; The Company may not incur further indebtedness beyond this loan and the Credit Agreement without the consent of SOS Ventures, until such time as the SOS Ventures loan is fully repaid.</p> <p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in; background-color: white">&#160;</p> <p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in; background-color: white">On May 30, 2014, the Company amended its credit agreement with SOSventures, LLC providing for a term loan through February 1, 2016 in an amount up to $20,000,000 at an 18.00% interest rate.&#160;&#160;As of June 30, 2015, the Company has borrowed $15,500,000 under this agreement.</p> <p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in; background-color: white">&#160;</p> <p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in; background-color: white">The term loan is collateralized under a second lien&#160;by the oil and natural gas properties and contains several restrictive covenants including, among others:&#160;&#160;(1) a requirement to maintain a current ratio, of not less than 1.0 to 1.0; (2) a maximum permitted ratio of debt to adjusted EBITDAX of not more than 4.0 to 1.0; (3) a maximum permitted ratio of adjusted EBITDAX to interest expense of not more than 3.0 to 1.0; and (4) a prohibition against incurring debt, subject to permitted exceptions.</p> <p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in; background-color: white">&#160;</p> <p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in; background-color: white">On April 15, 2015 the Company entered the Second Amendment to the First Amendment and Restated Credit Agreement and several other agreements which provided that SOSventures, LLC will provide an additional $3 million on its credit facility to be used to pay the outstanding balance of the Independent Bank term loan, pay on the Independent Bank credit facility and for operations. Additionally, SOSventures deposit $5 million into a controlled account at Independent Bank to be used to drill two wells in the Crittenden Field referenced in the Independent Bank Amendment. Further, SOSventures, LLC will receive interest on its credit facility and a 1% overriding royalty interest on the Company&#146;s Crittenden Field properties effective upon the drilling of these two oil and gas wells until such time as the credit facility is repaid. Finally, SOSventures, LLC shall receive warrants to purchase 2,542,397 of the Company's common shares for $1.00 per share with a two-year term. If fully purchased 2,542,397 would equal 20% of our currently outstanding common stock.</p> <p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in; background-color: white">From time-to-time, the Company may become subject to proceedings, lawsuits and other claims in the ordinary course of business including proceedings related to environmental and other matters. Such matters are subject to many uncertainties, and outcomes are not predictable with assurance.</p> <p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in; background-color: white">&#160;</p> <p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in; background-color: white">The Company is subject to various possible contingencies that arise primarily from interpretation of federal and state laws and regulations affecting the oil and natural gas industry. Such contingencies include differing interpretations as to the prices at which oil and natural gas sales may be made, the prices at which royalty owners may be paid for production from their leases, environmental issues and other matters. Although management believes that it has complied with the various laws and regulations, administrative rulings and interpretations thereof, adjustments could be required as new interpretations and regulations are issued. In addition, environmental matters are subject to regulation by various federal and state agencies.&#160;</p> <p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in; background-color: white">&#160;</p> <p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; background-color: white"><b>Shareholder Lawsuit</b></p> <p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in; background-color: white">&#160;</p> <p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in; background-color: white">On April 17, 2015, the Company was served with a lawsuit filed in Bexar County, Texas by William F. Pettinati, Jr., Nicholas Garofolo, Sigma Gas Barbastella Fund and Sigma Gas Antrozous Fund against Starboard Resources, Inc., its directors, its Chief Operating Officer, Edward Shaw, its former Chief Financial Officer, Eric Alfuth, our stockholder, Bradford Higgins, and Sean O&#146;Sullivan, the managing director of our stockholder, SOSventures, LLC.&#160;&#160;&#160;Mr. Pettinati, Mr. Garofalo and the Sigma Gas Antrozous Fund are stockholders.&#160;&#160;Mr. Pettinati owns 145,112 shares, Mr. Garofalo owns 226,680 common stock shares and Sigma Gas Antrozous Fund owns 44,610 common stock shares. Combined these stockholders account for approximately 3.3% of our outstanding common stock.&#160;&#160;These stockholders became our stockholders in February 2014.</p> <p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; background-color: white; text-indent: 0.5in">&#160;</p> <p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in; background-color: white">The Plaintiffs allege several derivative and direct causes of action, many of which relate to alleged actions that pre-date their becoming stockholders in February 2014.&#160;&#160;These derivative claims include, breach of fiduciary duty, waste of corporate assets, concerted action and conspiracy, joint enterprise, agency, alter ego, exemplary damages, and unjust enrichment. The direct claims include, breach of fiduciary duty, conversion, shareholder oppression, concerted action and conspiracy, declaratory judgment that the distribution of stock to the plaintiffs was invalid, joint enterprise, agency, alter ego, exemplary damages, concerted action and conspiracy and failure to allow for inspection of books and records.</p> <p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; background-color: white; text-indent: 0.5in">&#160;</p> <p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in; background-color: white">Many of the allegations relate to events that allegedly happened before the plaintiffs became stockholders, including the distributions from certain partnerships that led to the Plaintiffs becoming stockholders in February 2014.&#160;&#160;For actions after February 2014, Plaintiffs complain that our common stock still lacks a trading venue, that a books and records request was not honored, that we &#147;delayed&#148; our public offering, that SOSventures LLC had allegedly taken steps to &#147;foreclose&#148; on our assets under our subordinated credit agreement with SOSventures, LLC and that we filed for an extension to the filing date for our Form 10-K for the year ending December 31, 2014.</p> <p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; background-color: white; text-indent: 0.5in">&#160;</p> <p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in; background-color: white">The matter is styled Sigma Barbastella Fund et al v. Charles S. Henry, III et al. and it is Cause No. 20105-CI-05672 in the 224th District Court in Bexar County, Texas.</p> <p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">The condensed consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (&#147;GAAP&#148;). Additionally, the accompanying unaudited condensed consolidated financial statements as of June 30, 2015 and for the six months ended June 30, 2015 and 2014 have been prepared in accordance with accounting principles generally accepted in the United States of America for interim financial statements and with the instructions to Form 10-Q, and reflect, in the opinion of management, all adjustments, which are of a normal and recurring nature, necessary for a fair presentation of the results for such periods. Operating results for the six months ended June 30, 2015 are not necessarily indicative of the results that may be expected for the year ending December 31, 2015. Certain information and footnote disclosures normally included in the consolidated financial statements prepared in accordance with U.S. GAAP have been condensed or omitted in this Form 10-Q pursuant to the rules and regulations of the Securities and Exchange Commission (&#147;SEC&#148;). These consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto included in our Form 10-K for the year ended December 31, 2014.</p> <p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">The accompanying condensed consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries, ImPetro Resources, LLC (&#147;ImPetro&#148;) and ImPetro Operating (&#147;Operating&#148;) (Collectively the &#147;Company&#148;). All intercompany transactions and balances have been eliminated in consolidation.</p> <p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">Other property and equipment, which includes field equipment, vehicles, and office equipment, is stated at cost less accumulated depreciation and amortization.&#160;&#160;Depreciation and amortization is computed using the straight-line method over the estimated useful lives of the assets.&#160;&#160;Vehicles and office equipment are generally depreciated over a useful life of five years and field equipment is generally depreciated over a useful life of twenty years.</p> <p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">The Company utilizes the accrual method of accounting for natural gas and crude oil revenues, whereby revenues are recognized based on the Company&#146;s net revenue interest in the wells upon delivery&#160;to third parties.&#160; The Company will also enter into physical contract sale agreements through its normal operations.</p> <p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p> <p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">Gas imbalances are accounted for using the sales method.&#160; Under this method, revenues are recognized based on actual volumes of oil and gas sold to purchasers.&#160; However, the Company has no history of significant gas imbalances.</p> <p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">Deferred income tax assets and liabilities are computed for differences between the financial statement and tax basis of assets and liabilities that will result in future taxable or deductible amounts, based on enacted tax laws and rates applicable to the periods in which the differences are expected to affect taxable income. Valuation allowances are established, when necessary, to reduce deferred income tax assets to the amount expected to be realized.</p> <p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&#160;</p> <p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">The Company is required to determine whether its tax positions are more likely than not to be sustained upon examination by the applicable taxing authority, including resolution of any related appeals or litigation processes, based on the technical merits of the position. The tax benefit recognized is measured as the largest amount of benefit that has a greater than fifty percent likelihood of being realized upon ultimate settlement with the relevant taxing authority. De-recognition of a tax benefit previously recognized results in the Company recording a tax liability that increases expense in that period. Based on its analysis, the Company has determined that it has not incurred any liability for unrecognized tax benefits as of June 30, 2015. The Company&#146;s conclusions may be subject to review and adjustment at a later date based on factors including, but not limited to, on-going analyses of and changes to tax laws, regulations and interpretations thereof.</p> <p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p> <p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">The Company recognizes interest and penalties related to unrecognized tax benefits in interest expense and other expenses, respectively. No interest expense or penalties have been recognized as of June 30, 2015.</p> <p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">The preparation of condensed consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the condensed consolidated financial statements and the reported amounts of revenues and expenses during the reporting period.&#160;&#160;Actual results could differ from those estimates.</p> <p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p> <p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">The Company&#146;s estimates of oil and natural gas reserves are, by necessity, projections based on geologic and engineering data, and there are uncertainties inherent in the interpretation of such data as well as the projection of future rates of production and the timing of development expenditures. Reserve engineering is a subjective process of estimating underground accumulations of natural gas and oil that are difficult to measure. The accuracy of any reserve estimate is a function of the quality of available data, engineering and geological interpretation and judgment. Estimates of economically recoverable natural gas and oil reserves and future net cash flows necessarily depend upon a number of variable factors and assumptions, such as historical production from the area compared with production from other producing areas, the assumed effect of regulations by governmental agencies, and assumptions governing future natural gas and oil prices, future operating costs, severance taxes, development costs and workover costs, all of which may in fact vary considerably from actual results. The future drilling costs associated with reserves assigned to prove undeveloped locations may ultimately increase to the extent that these reserves are later determined to be uneconomic. For these reasons, estimates of the economically recoverable quantities of expected natural gas and oil attributable to any particular group of properties, classifications of such reserves based on risk of recovery, and estimates of the future net cash flows may vary substantially. Any significant variance in the assumptions could materially affect the estimated quantity of the reserves, which could affect the carrying value of the Company&#146;s oil and natural gas properties and/or the rate of depletion related to the oil and natural gas properties.</p> <p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">In May 2014, the Financial Accounting Standards Board issued a new accounting pronouncement regarding revenue from contracts with customers. This new standard provides guidance on recognizing revenue, including a five step model to determine when revenue recognition is appropriate. The standard requires that an entity recognizes revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. Adoption of the new standard is effective for reporting periods beginning after December 15, 2017 with early adoption not permitted. The Company is currently evaluating the potential impact that the adoption of this standard will have on its financial position, results of operations, and related disclosures, and will adopt the provisions of this new standard in the first quarter of 2018.</p> <table cellspacing="0" cellpadding="0" style="font: 8pt Calibri, Helvetica, Sans-Serif; width: 100%"> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="line-height: 115%">&#160;</td> <td nowrap="nowrap" style="line-height: 115%">&#160;</td> <td colspan="2" nowrap="nowrap" style="line-height: 115%">&#160;</td> <td nowrap="nowrap" style="line-height: 115%">&#160;</td> <td nowrap="nowrap" style="line-height: 115%">&#160;</td> <td colspan="2" nowrap="nowrap" style="line-height: 115%">&#160;</td> <td nowrap="nowrap" style="line-height: 115%">&#160;</td> <td nowrap="nowrap" style="line-height: 115%">&#160;</td> <td colspan="2" nowrap="nowrap" style="line-height: 115%">&#160;</td> <td nowrap="nowrap" style="line-height: 115%">&#160;</td> <td nowrap="nowrap" style="line-height: 115%">&#160;</td> <td colspan="2" nowrap="nowrap" style="text-align: center; line-height: 115%"><font style="font: 8pt Times New Roman, Times, Serif"><b>Balance as of</b></font></td> <td nowrap="nowrap" style="line-height: 115%">&#160;</td></tr> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="line-height: 115%">&#160;</td> <td nowrap="nowrap" style="line-height: 115%">&#160;</td> <td colspan="2" nowrap="nowrap" style="line-height: 115%">&#160;</td> <td nowrap="nowrap" style="line-height: 115%">&#160;</td> <td nowrap="nowrap" style="line-height: 115%">&#160;</td> <td colspan="2" nowrap="nowrap" style="line-height: 115%">&#160;</td> <td nowrap="nowrap" style="line-height: 115%">&#160;</td> <td nowrap="nowrap" style="line-height: 115%">&#160;</td> <td colspan="2" nowrap="nowrap" style="line-height: 115%">&#160;</td> <td nowrap="nowrap" style="line-height: 115%">&#160;</td> <td nowrap="nowrap" style="line-height: 115%">&#160;</td> <td colspan="2" nowrap="nowrap" style="text-align: center; line-height: 115%"><font style="font: 8pt Times New Roman, Times, Serif"><b>June 30,</b></font></td> <td nowrap="nowrap" style="line-height: 115%">&#160;</td></tr> <tr style="vertical-align: bottom"> <td style="line-height: 115%"><font style="font: 8pt Times New Roman, Times, Serif"><b>($ in thousands)</b></font></td> <td style="line-height: 115%">&#160;</td> <td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center; line-height: 115%"><font style="font: 8pt Times New Roman, Times, Serif"><b>Level 1</b></font></td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center; line-height: 115%"><font style="font: 8pt Times New Roman, Times, Serif"><b>Level 2</b></font></td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center; line-height: 115%"><font style="font: 8pt Times New Roman, Times, Serif"><b>Level 3</b></font></td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center; line-height: 115%"><font style="font: 8pt Times New Roman, Times, Serif"><b>2015</b></font></td> <td style="line-height: 115%">&#160;</td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td style="line-height: 115%"><font style="font: 8pt Times New Roman, Times, Serif">Assets<b>&#160;</b>(at fair value):</font></td> <td style="line-height: 115%">&#160;</td> <td colspan="2" style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td colspan="2" style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td colspan="2" style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td colspan="2" style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="text-indent: 27pt; line-height: 115%; width: 54%"><font style="font: 8pt Times New Roman, Times, Serif">Derivative assets (oil collar and put options)</font></td> <td style="line-height: 115%; width: 1%">&#160;</td> <td style="border-bottom: black 1.5pt solid; line-height: 115%; width: 1%"><font style="font: 8pt Times New Roman, Times, Serif">$</font></td> <td style="border-bottom: black 1.5pt solid; text-align: right; line-height: 115%; width: 8%"><font style="font: 8pt Times New Roman, Times, Serif">-</font></td> <td style="line-height: 115%; width: 1%">&#160;</td> <td style="text-align: right; line-height: 115%; width: 1%">&#160;</td> <td style="border-bottom: black 1.5pt solid; line-height: 115%; width: 1%"><font style="font: 8pt Times New Roman, Times, Serif">$</font></td> <td style="border-bottom: black 1.5pt solid; text-align: right; line-height: 115%; width: 8%"><font style="font: 8pt Times New Roman, Times, Serif">596</font></td> <td style="line-height: 115%; width: 1%">&#160;</td> <td style="line-height: 115%; width: 1%">&#160;</td> <td style="border-bottom: black 1.5pt solid; line-height: 115%; width: 1%"><font style="font: 8pt Times New Roman, Times, Serif">$</font></td> <td style="border-bottom: black 1.5pt solid; text-align: right; line-height: 115%; width: 8%"><font style="font: 8pt Times New Roman, Times, Serif">-</font></td> <td style="line-height: 115%; width: 1%">&#160;</td> <td style="text-align: right; line-height: 115%; width: 1%">&#160;</td> <td style="border-bottom: black 1.5pt solid; line-height: 115%; width: 1%"><font style="font: 8pt Times New Roman, Times, Serif">$</font></td> <td style="border-bottom: black 1.5pt solid; text-align: right; line-height: 115%; width: 10%"><font style="font: 8pt Times New Roman, Times, Serif">596</font></td> <td style="line-height: 115%; width: 1%">&#160;</td></tr> <tr> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td></tr> </table> <p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; background-color: white; text-indent: 0.5in">&#160;</p> <table cellspacing="0" cellpadding="0" style="font: 8pt Calibri, Helvetica, Sans-Serif; width: 100%"> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td style="line-height: 115%"><font style="font: 8pt Times New Roman, Times, Serif">Liabilities<b>&#160;</b>(at fair value):</font></td> <td style="line-height: 115%">&#160;</td> <td colspan="2" style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td colspan="2" style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td colspan="2" style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td colspan="2" style="line-height: 115%">&#160;</td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="text-indent: 27pt; line-height: 115%; width: 55%"><font style="font: 8pt Times New Roman, Times, Serif">Derivative liabilities (oil collar and put options)</font></td> <td style="line-height: 115%; width: 1%">&#160;</td> <td style="border-bottom: black 1.5pt solid; line-height: 115%; width: 1%"><font style="font: 8pt Times New Roman, Times, Serif">$</font></td> <td style="border-bottom: black 1.5pt solid; text-align: right; line-height: 115%; width: 8%"><font style="font: 8pt Times New Roman, Times, Serif">-</font></td> <td style="line-height: 115%; width: 1%">&#160;</td> <td style="text-align: right; line-height: 115%; width: 1%">&#160;</td> <td style="border-bottom: black 1.5pt solid; line-height: 115%; width: 1%"><font style="font: 8pt Times New Roman, Times, Serif">$</font></td> <td style="border-bottom: black 1.5pt solid; text-align: right; line-height: 115%; width: 8%"><font style="font: 8pt Times New Roman, Times, Serif">39</font></td> <td style="line-height: 115%; width: 1%">&#160;</td> <td style="line-height: 115%; width: 1%">&#160;</td> <td style="border-bottom: black 1.5pt solid; line-height: 115%; width: 1%"><font style="font: 8pt Times New Roman, Times, Serif">$</font></td> <td style="border-bottom: black 1.5pt solid; text-align: right; line-height: 115%; width: 8%"><font style="font: 8pt Times New Roman, Times, Serif">-</font></td> <td style="line-height: 115%; width: 1%">&#160;</td> <td style="text-align: right; line-height: 115%; width: 1%">&#160;</td> <td style="border-bottom: black 1.5pt solid; line-height: 115%; width: 1%"><font style="font: 8pt Times New Roman, Times, Serif">$</font></td> <td style="border-bottom: black 1.5pt solid; text-align: right; line-height: 115%; width: 10%"><font style="font: 8pt Times New Roman, Times, Serif">39</font></td></tr> </table> <p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; background-color: white">&#160;</p> <table cellspacing="0" cellpadding="0" style="font: 8pt Calibri, Helvetica, Sans-Serif; width: 100%"> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="line-height: 115%">&#160;</td> <td nowrap="nowrap" style="line-height: 115%">&#160;</td> <td colspan="2" nowrap="nowrap" style="line-height: 115%">&#160;</td> <td nowrap="nowrap" style="line-height: 115%">&#160;</td> <td nowrap="nowrap" style="line-height: 115%">&#160;</td> <td colspan="2" nowrap="nowrap" style="line-height: 115%">&#160;</td> <td nowrap="nowrap" style="line-height: 115%">&#160;</td> <td nowrap="nowrap" style="line-height: 115%">&#160;</td> <td colspan="2" nowrap="nowrap" style="line-height: 115%">&#160;</td> <td nowrap="nowrap" style="line-height: 115%">&#160;</td> <td nowrap="nowrap" style="line-height: 115%">&#160;</td> <td colspan="2" nowrap="nowrap" style="text-align: center; line-height: 115%"><font style="font: 8pt Times New Roman, Times, Serif"><b>Balance as of</b></font></td> <td nowrap="nowrap" style="line-height: 115%">&#160;</td></tr> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="line-height: 115%">&#160;</td> <td nowrap="nowrap" style="line-height: 115%">&#160;</td> <td colspan="2" nowrap="nowrap" style="line-height: 115%">&#160;</td> <td nowrap="nowrap" style="line-height: 115%">&#160;</td> <td nowrap="nowrap" style="line-height: 115%">&#160;</td> <td colspan="2" nowrap="nowrap" style="line-height: 115%">&#160;</td> <td nowrap="nowrap" style="line-height: 115%">&#160;</td> <td nowrap="nowrap" style="line-height: 115%">&#160;</td> <td colspan="2" nowrap="nowrap" style="line-height: 115%">&#160;</td> <td nowrap="nowrap" style="line-height: 115%">&#160;</td> <td nowrap="nowrap" style="line-height: 115%">&#160;</td> <td colspan="2" nowrap="nowrap" style="text-align: center; line-height: 115%"><font style="font: 8pt Times New Roman, Times, Serif"><b>December 31,</b></font></td> <td nowrap="nowrap" style="line-height: 115%">&#160;</td></tr> <tr style="vertical-align: bottom"> <td style="line-height: 115%"><font style="font: 8pt Times New Roman, Times, Serif"><b>($ in thousands)</b></font></td> <td style="line-height: 115%">&#160;</td> <td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center; line-height: 115%"><font style="font: 8pt Times New Roman, Times, Serif"><b>Level 1</b></font></td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center; line-height: 115%"><font style="font: 8pt Times New Roman, Times, Serif"><b>Level 2</b></font></td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center; line-height: 115%"><font style="font: 8pt Times New Roman, Times, Serif"><b>Level 3</b></font></td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center; line-height: 115%"><font style="font: 8pt Times New Roman, Times, Serif"><b>2014</b></font></td> <td style="line-height: 115%">&#160;</td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td style="line-height: 115%"><font style="font: 8pt Times New Roman, Times, Serif">Assets<b>&#160;</b>(at fair value):</font></td> <td style="line-height: 115%">&#160;</td> <td colspan="2" style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td colspan="2" style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td colspan="2" style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td colspan="2" style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="width: 54%; text-indent: 27pt; line-height: 115%"><font style="font: 8pt Times New Roman, Times, Serif">Derivative assets (oil put options)</font></td> <td style="width: 1%; line-height: 115%">&#160;</td> <td style="width: 1%; border-bottom: black 1.5pt solid; line-height: 115%"><font style="font: 8pt Times New Roman, Times, Serif">$</font></td> <td style="width: 8%; border-bottom: black 1.5pt solid; text-align: right; line-height: 115%"><font style="font: 8pt Times New Roman, Times, Serif">-</font></td> <td style="width: 1%; line-height: 115%">&#160;</td> <td style="width: 1%; text-align: right; line-height: 115%">&#160;</td> <td style="width: 1%; border-bottom: black 1.5pt solid; line-height: 115%"><font style="font: 8pt Times New Roman, Times, Serif">$</font></td> <td style="width: 8%; border-bottom: black 1.5pt solid; text-align: right; line-height: 115%"><font style="font: 8pt Times New Roman, Times, Serif">1,766</font></td> <td style="width: 1%; line-height: 115%">&#160;</td> <td style="width: 1%; line-height: 115%">&#160;</td> <td style="width: 1%; border-bottom: black 1.5pt solid; line-height: 115%"><font style="font: 8pt Times New Roman, Times, Serif">$</font></td> <td style="width: 8%; border-bottom: black 1.5pt solid; text-align: right; line-height: 115%"><font style="font: 8pt Times New Roman, Times, Serif">-</font></td> <td style="width: 1%; line-height: 115%">&#160;</td> <td style="width: 1%; line-height: 115%">&#160;</td> <td style="width: 1%; border-bottom: black 1.5pt solid; line-height: 115%"><font style="font: 8pt Times New Roman, Times, Serif">$</font></td> <td style="width: 10%; border-bottom: black 1.5pt solid; text-align: right; line-height: 115%"><font style="font: 8pt Times New Roman, Times, Serif">1,766</font></td> <td style="width: 1%; line-height: 115%">&#160;</td></tr> </table> <table cellspacing="0" cellpadding="0" style="font: 8pt Calibri, Helvetica, Sans-Serif; width: 100%; border-collapse: collapse"> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="width: 39%; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%"><font style="font: 8pt Times New Roman, Times, Serif"><b>($ in thousands)</b></font></td> <td nowrap="nowrap" style="width: 9%; padding-right: 5.4pt; padding-left: 5.4pt">&#160;</td> <td nowrap="nowrap" style="width: 7%; padding-right: 5.4pt; padding-left: 5.4pt">&#160;</td> <td style="width: 20%; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; line-height: 115%"><font style="font: 8pt Times New Roman, Times, Serif"><b>Six Month Period Ended June 30, 2015</b></font></td> <td nowrap="nowrap" style="width: 5%; padding-right: 5.4pt; padding-left: 5.4pt">&#160;</td> <td style="width: 20%; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; line-height: 115%"><font style="font: 8pt Times New Roman, Times, Serif"><b>Six Month Period Ended June 30, 2014</b></font></td></tr> <tr style="background-color: #CCEEFF"> <td nowrap="nowrap" colspan="2" style="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%"><font style="font: 8pt Times New Roman, Times, Serif">Oil, natural gas, and related product sales</font></td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&#160;</td> <td nowrap="nowrap" style="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 115%"><font style="font: 8pt Times New Roman, Times, Serif">&#160;$&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;1,350 </font></td> <td nowrap="nowrap" style="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 115%">&#160;</td> <td nowrap="nowrap" style="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 115%"><font style="font: 8pt Times New Roman, Times, Serif">&#160;$&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;3,046 </font></td></tr> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%"><font style="font: 8pt Times New Roman, Times, Serif">Expenses</font></td> <td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt">&#160;</td> <td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt">&#160;</td> <td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 115%"><font style="font: 8pt Times New Roman, Times, Serif">269</font></td> <td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt">&#160;</td> <td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 115%"><font style="font: 8pt Times New Roman, Times, Serif">398</font></td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%"><font style="font: 8pt Times New Roman, Times, Serif">Operating income</font></td> <td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; line-height: 115%">&#160;</td> <td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; line-height: 115%">&#160;</td> <td nowrap="nowrap" style="border-top: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 115%"><font style="font: 8pt Times New Roman, Times, Serif">&#160;$&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;1,081 </font></td> <td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 115%">&#160;</td> <td nowrap="nowrap" style="border-top: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 115%"><font style="font: 8pt Times New Roman, Times, Serif">&#160;$&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;2,648 </font></td></tr> </table> <table cellspacing="0" cellpadding="0" style="font: 8pt Calibri, Helvetica, Sans-Serif; width: 100%; border-collapse: collapse"> <tr> <td nowrap="nowrap" style="vertical-align: bottom; text-align: justify; line-height: 115%"><font style="font: 8pt Times New Roman, Times, Serif"><b>($ in thousands)</b></font></td> <td nowrap="nowrap" style="vertical-align: top; text-align: justify; line-height: 115%">&#160;</td> <td colspan="2" nowrap="nowrap" style="vertical-align: bottom"> <p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center"><b>Six month period Ended</b></p> <p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center"><b>June 30, 2015</b></p></td> <td nowrap="nowrap" style="vertical-align: top; text-align: justify; line-height: 115%">&#160;</td> <td nowrap="nowrap" style="vertical-align: top; text-align: center; line-height: 115%">&#160;</td> <td colspan="2" nowrap="nowrap" style="vertical-align: top"> <p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center"><b>Year Ended</b></p> <p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center"><b>December 31, 2014</b></p></td> <td nowrap="nowrap" style="vertical-align: top; text-align: justify; line-height: 115%">&#160;</td></tr> <tr style="background-color: #CCECFF"> <td style="vertical-align: bottom; width: 53%; padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify; line-height: 115%"><font style="font: 8pt Times New Roman, Times, Serif">Oil and natural gas properties</font></td> <td style="vertical-align: top; width: 2%; padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify; line-height: 115%">&#160;</td> <td style="vertical-align: top; width: 4%; text-align: justify; line-height: 115%">&#160;</td> <td style="vertical-align: top; width: 14%; text-align: right; line-height: 115%">&#160;</td> <td style="vertical-align: top; width: 2%; padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify; line-height: 115%">&#160;</td> <td style="vertical-align: top; width: 3%; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 115%">&#160;</td> <td style="vertical-align: top; width: 4%; text-align: right; line-height: 115%">&#160;</td> <td style="vertical-align: top; width: 16%; text-align: right; line-height: 115%">&#160;</td> <td style="vertical-align: top; width: 2%; padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify; line-height: 115%">&#160;</td></tr> <tr> <td style="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify; line-height: 115%"><font style="font: 8pt Times New Roman, Times, Serif">&#160;&#160;&#160;Proved-developed producing properties</font></td> <td style="vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify; line-height: 115%">&#160;</td> <td style="vertical-align: top; text-align: justify; line-height: 115%"><font style="font: 8pt Times New Roman, Times, Serif">$</font></td> <td style="vertical-align: top; text-align: right; line-height: 115%"><font style="font: 8pt Times New Roman, Times, Serif">97,729</font></td> <td style="vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify; line-height: 115%">&#160;</td> <td style="vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 115%">&#160;</td> <td style="vertical-align: top; text-align: left; line-height: 115%"><font style="font: 8pt Times New Roman, Times, Serif">$</font></td> <td style="vertical-align: top; text-align: right; line-height: 115%"><font style="font: 8pt Times New Roman, Times, Serif">96,691</font></td> <td style="vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify; line-height: 115%">&#160;</td></tr> <tr style="background-color: #CCECFF"> <td style="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify; line-height: 115%"><font style="font: 8pt Times New Roman, Times, Serif">&#160;&#160;&#160;Proved-developed non-producing properties</font></td> <td style="vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify; line-height: 115%">&#160;</td> <td style="vertical-align: top; text-align: justify; line-height: 115%">&#160;</td> <td style="vertical-align: top; text-align: right; line-height: 115%"><font style="font: 8pt Times New Roman, Times, Serif">3,660</font></td> <td style="vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify; line-height: 115%">&#160;</td> <td style="vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 115%">&#160;</td> <td style="vertical-align: top; text-align: right; line-height: 115%">&#160;</td> <td style="vertical-align: top; text-align: right; line-height: 115%"><font style="font: 8pt Times New Roman, Times, Serif">2,880</font></td> <td style="vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify; line-height: 115%">&#160;</td></tr> <tr> <td style="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify; line-height: 115%"><font style="font: 8pt Times New Roman, Times, Serif">&#160;&#160;&#160;Proved-undeveloped properties</font></td> <td style="vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify; line-height: 115%">&#160;</td> <td style="vertical-align: top; text-align: justify; line-height: 115%">&#160;</td> <td style="vertical-align: top; text-align: right; line-height: 115%"><font style="font: 8pt Times New Roman, Times, Serif">13,274</font></td> <td style="vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify; line-height: 115%">&#160;</td> <td style="vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 115%">&#160;</td> <td style="vertical-align: top; text-align: right; line-height: 115%">&#160;</td> <td style="vertical-align: top; text-align: right; line-height: 115%"><font style="font: 8pt Times New Roman, Times, Serif">13,330</font></td> <td style="vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify; line-height: 115%">&#160;</td></tr> <tr style="background-color: #CCECFF"> <td style="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify; line-height: 115%"><font style="font: 8pt Times New Roman, Times, Serif">&#160;&#160;&#160;Unproved properties</font></td> <td style="vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify; line-height: 115%">&#160;</td> <td style="vertical-align: top; text-align: justify; line-height: 115%">&#160;</td> <td style="vertical-align: top; text-align: right; line-height: 115%"><font style="font: 8pt Times New Roman, Times, Serif">2,045</font></td> <td style="vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify; line-height: 115%">&#160;</td> <td style="vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 115%">&#160;</td> <td style="vertical-align: top; text-align: right; line-height: 115%">&#160;</td> <td style="vertical-align: top; text-align: right; line-height: 115%"><font style="font: 8pt Times New Roman, Times, Serif">1,996</font></td> <td style="vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify; line-height: 115%">&#160;</td></tr> <tr style="background-color: white"> <td style="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify; line-height: 115%"><font style="font: 8pt Times New Roman, Times, Serif">&#160;&#160;&#160;Less: Accumulated depletion</font></td> <td style="vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify; line-height: 115%">&#160;</td> <td style="vertical-align: top; border-bottom: Black 1.5pt double; text-align: justify; line-height: 115%">&#160;</td> <td style="vertical-align: top; border-bottom: Black 1.5pt double; text-align: right; line-height: 115%"><font style="font: 8pt Times New Roman, Times, Serif">(26,403</font></td> <td style="vertical-align: top; border-bottom: Black 1.5pt double; padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify; line-height: 115%; text-indent: -5.4pt"><font style="font: 8pt Times New Roman, Times, Serif">)</font></td> <td style="vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 115%">&#160;</td> <td style="vertical-align: top; border-bottom: Black 1.5pt double; text-align: right; line-height: 115%">&#160;</td> <td style="vertical-align: top; border-bottom: Black 1.5pt double; text-align: right; line-height: 115%"><font style="font: 8pt Times New Roman, Times, Serif">(23,131</font></td> <td style="vertical-align: top; border-bottom: Black 1.5pt double; padding-right: 5.4pt; padding-left: 5.4pt; text-indent: -5.4pt; line-height: 115%"><font style="font: 8pt Times New Roman, Times, Serif">)</font></td></tr> <tr style="background-color: #CCECFF"> <td style="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify; line-height: 115%"><font style="font: 8pt Times New Roman, Times, Serif">Total oil and natural gas properties, net of accumulated depletion</font></td> <td style="vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify; line-height: 115%">&#160;</td> <td style="vertical-align: top; border-bottom: Black 1.5pt double; text-align: justify; line-height: 115%"><font style="font: 8pt Times New Roman, Times, Serif">$</font></td> <td style="vertical-align: top; border-bottom: Black 1.5pt double; text-align: right; line-height: 115%"><font style="font: 8pt Times New Roman, Times, Serif">90,305</font></td> <td style="vertical-align: top; border-bottom: Black 1.5pt double; padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify; line-height: 115%">&#160;</td> <td style="vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 115%">&#160;</td> <td style="vertical-align: top; border-bottom: Black 1.5pt double; text-align: left; line-height: 115%"><font style="font: 8pt Times New Roman, Times, Serif">$</font></td> <td style="vertical-align: top; border-bottom: Black 1.5pt double; text-align: right; line-height: 115%"><font style="font: 8pt Times New Roman, Times, Serif">91,766</font></td> <td style="vertical-align: top; border-bottom: Black 1.5pt double; padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify; line-height: 115%">&#160;</td></tr> </table> <table cellspacing="0" cellpadding="0" style="font: 8pt Calibri, Helvetica, Sans-Serif; width: 100%; border-collapse: collapse"> <tr> <td nowrap="nowrap" style="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify; line-height: 115%"><font style="font: 8pt Times New Roman, Times, Serif"><b>($ in thousands)</b></font></td> <td colspan="3" nowrap="nowrap" style="vertical-align: top"> <p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center"><b>Six month period Ended</b></p> <p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center"><b>June 30, 2015</b></p></td> <td nowrap="nowrap" style="vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify; line-height: 115%">&#160;</td> <td nowrap="nowrap" style="vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; line-height: 115%">&#160;</td> <td colspan="2" nowrap="nowrap" style="vertical-align: top"> <p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center"><b>Year Ended</b></p> <p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center"><b>December 31, 2014</b></p></td> <td nowrap="nowrap" style="vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify; line-height: 115%">&#160;</td></tr> <tr style="vertical-align: top; background-color: #CCECFF"> <td style="width: 53%; padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify; line-height: 115%"><font style="font: 8pt Times New Roman, Times, Serif">Asset retirement obligations, beginning of period</font></td> <td style="width: 2%; text-align: justify; line-height: 115%">&#160;</td> <td style="width: 4%; text-align: justify; line-height: 115%"><font style="font: 8pt Times New Roman, Times, Serif">$</font></td> <td style="width: 14%; text-align: right; line-height: 115%"><font style="font: 8pt Times New Roman, Times, Serif">3,606</font></td> <td style="width: 2%; padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify; line-height: 115%">&#160;</td> <td style="width: 3%; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 115%">&#160;</td> <td style="width: 4%; text-align: left; line-height: 115%"><font style="font: 8pt Times New Roman, Times, Serif">$</font></td> <td style="width: 16%; text-align: right; line-height: 115%"><font style="font: 8pt Times New Roman, Times, Serif">2,437</font></td> <td style="width: 2%; padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify; line-height: 115%">&#160;</td></tr> <tr style="vertical-align: top"> <td style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify; line-height: 115%"><font style="font: 8pt Times New Roman, Times, Serif">Additions&#160;&#160;to asset retirement obligation</font></td> <td style="text-align: justify; line-height: 115%">&#160;</td> <td style="text-align: justify; line-height: 115%">&#160;</td> <td style="text-align: right; line-height: 115%"><font style="font: 8pt Times New Roman, Times, Serif">-</font></td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify; line-height: 115%">&#160;</td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 115%">&#160;</td> <td style="text-align: right; line-height: 115%">&#160;</td> <td style="text-align: right; line-height: 115%"><font style="font: 8pt Times New Roman, Times, Serif">859</font></td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify; line-height: 115%">&#160;</td></tr> <tr style="vertical-align: top; background-color: #CCECFF"> <td style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify; line-height: 115%"><font style="font: 8pt Times New Roman, Times, Serif">Liabilities settled during the period</font></td> <td style="text-align: justify; line-height: 115%">&#160;</td> <td style="text-align: justify; line-height: 115%">&#160;</td> <td style="text-align: right; line-height: 115%"><font style="font: 8pt Times New Roman, Times, Serif">-</font></td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify; line-height: 115%">&#160;</td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 115%">&#160;</td> <td style="text-align: right; line-height: 115%">&#160;</td> <td style="text-align: right; line-height: 115%"><font style="font: 8pt Times New Roman, Times, Serif">-</font></td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify; line-height: 115%">&#160;</td></tr> <tr style="vertical-align: top"> <td style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify; line-height: 115%"><font style="font: 8pt Times New Roman, Times, Serif">Accretion of discount</font></td> <td style="text-align: justify; line-height: 115%">&#160;</td> <td style="text-align: justify; line-height: 115%">&#160;</td> <td style="text-align: right; line-height: 115%"><font style="font: 8pt Times New Roman, Times, Serif">128</font></td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify; line-height: 115%">&#160;</td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 115%">&#160;</td> <td style="text-align: right; line-height: 115%">&#160;</td> <td style="text-align: right; line-height: 115%"><font style="font: 8pt Times New Roman, Times, Serif">320</font></td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify; line-height: 115%">&#160;</td></tr> <tr style="vertical-align: top; background-color: #CCECFF"> <td style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify; line-height: 115%"><font style="font: 8pt Times New Roman, Times, Serif">Revision of estimate</font></td> <td style="text-align: justify; line-height: 115%">&#160;</td> <td style="border-bottom: Black 1.5pt double; text-align: justify; line-height: 115%">&#160;</td> <td style="border-bottom: Black 1.5pt double; text-align: right; line-height: 115%"><font style="font: 8pt Times New Roman, Times, Serif">-</font></td> <td style="border-bottom: Black 1.5pt double; padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify; line-height: 115%">&#160;</td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 115%">&#160;</td> <td style="border-bottom: Black 1.5pt double; text-align: right; line-height: 115%">&#160;</td> <td style="border-bottom: Black 1.5pt double; text-align: right; line-height: 115%"><font style="font: 8pt Times New Roman, Times, Serif">(10</font></td> <td style="border-bottom: Black 1.5pt double; padding-right: 5.4pt; padding-left: 5.4pt; text-indent: -5.4pt; line-height: 115%"><font style="font: 8pt Times New Roman, Times, Serif">)</font></td></tr> <tr style="vertical-align: top"> <td style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify; line-height: 115%"><font style="font: 8pt Times New Roman, Times, Serif">Asset retirement obligations, end of period</font></td> <td style="text-align: justify; line-height: 115%">&#160;</td> <td style="border-bottom: Black 1.5pt double; text-align: justify; line-height: 115%"><font style="font: 8pt Times New Roman, Times, Serif">$</font></td> <td style="border-bottom: Black 1.5pt double; text-align: right; line-height: 115%"><font style="font: 8pt Times New Roman, Times, Serif">3,734</font></td> <td style="border-bottom: Black 1.5pt double; padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify; line-height: 115%">&#160;</td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 115%">&#160;</td> <td style="border-bottom: Black 1.5pt double; text-align: left; line-height: 115%"><font style="font: 8pt Times New Roman, Times, Serif">$</font></td> <td style="border-bottom: Black 1.5pt double; text-align: right; line-height: 115%"><font style="font: 8pt Times New Roman, Times, Serif">3,606</font></td> <td style="border-bottom: Black 1.5pt double; padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify; line-height: 115%">&#160;</td></tr> </table> <table cellspacing="0" cellpadding="0" style="font: 8pt Times New Roman, Times, Serif; width: 100%; background-color: white"> <tr style="vertical-align: bottom; font: 8pt Times New Roman, Times, Serif"> <td style="font: 8pt Times New Roman, Times, Serif">&#160;</td> <td style="text-align: center; font: 8pt Times New Roman, Times, Serif">&#160;</td> <td style="text-align: center; font: 8pt Times New Roman, Times, Serif">&#160;</td> <td style="text-align: center; font: 8pt Times New Roman, Times, Serif">&#160;</td> <td style="text-align: right; font: 8pt Times New Roman, Times, Serif">&#160;</td> <td colspan="9" style="border-bottom: black 1.5pt solid; font: 8pt Times New Roman, Times, Serif; text-align: center"><font style="font: 8pt Times New Roman, Times, Serif"><b>June 30, 2015</b></font></td> <td nowrap="nowrap" style="font: 8pt Times New Roman, Times, Serif">&#160;</td></tr> <tr style="vertical-align: bottom; font: 8pt Times New Roman, Times, Serif"> <td style="width: 27%; font: 8pt Times New Roman, Times, Serif">&#160;</td> <td style="width: 11%; border-bottom: black 1.5pt solid; font: 8pt Times New Roman, Times, Serif; text-align: center"><font style="font: 8pt Times New Roman, Times, Serif">&#160;<b>Instrument</b></font></td> <td style="width: 1%; text-align: center; font: 8pt Times New Roman, Times, Serif">&#160;</td> <td style="width: 13%; border-bottom: black 1.5pt solid; font: 8pt Times New Roman, Times, Serif; text-align: center"><font style="font: 8pt Times New Roman, Times, Serif">&#160;<b>Commodity</b></font></td> <td style="width: 1%; text-align: right; font: 8pt Times New Roman, Times, Serif">&#160;</td> <td style="width: 9%; border-bottom: black 1.5pt solid; font: 8pt Times New Roman, Times, Serif"> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>Volume</b></p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>(bbl / month)</b></p></td> <td nowrap="nowrap" style="width: 1%; font: 8pt Times New Roman, Times, Serif">&#160;</td> <td style="width: 8%; border-bottom: black 1.5pt solid; font: 8pt Times New Roman, Times, Serif"> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>Floor</b></p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>Price</b></p></td> <td nowrap="nowrap" style="width: 1%; font: 8pt Times New Roman, Times, Serif">&#160;</td> <td style="width: 8%; border-bottom: black 1.5pt solid; font: 8pt Times New Roman, Times, Serif"> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>Ceilings</b></p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>Price</b></p></td> <td nowrap="nowrap" style="width: 1%; font: 8pt Times New Roman, Times, Serif">&#160;</td> <td style="width: 8%; border-bottom: black 1.5pt solid; font: 8pt Times New Roman, Times, Serif"> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>Purchased Put Option</b></p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>Price</b></p></td> <td nowrap="nowrap" style="width: 1%; font: 8pt Times New Roman, Times, Serif">&#160;</td> <td style="width: 9%; border-bottom: black 1.5pt solid; font: 8pt Times New Roman, Times, Serif"> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>Fair Value</b></p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>(in thousands)</b></p></td> <td nowrap="nowrap" style="width: 1%; font: 8pt Times New Roman, Times, Serif">&#160;</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255); font: 8pt Times New Roman, Times, Serif"> <td style="font: 8pt Times New Roman, Times, Serif"><font style="font: 8pt Times New Roman, Times, Serif">July 2015 &#150; October 2015</font></td> <td style="text-align: center; font: 8pt Times New Roman, Times, Serif"><font style="font: 8pt Times New Roman, Times, Serif">Put</font></td> <td style="font: 8pt Times New Roman, Times, Serif">&#160;</td> <td style="text-align: center; font: 8pt Times New Roman, Times, Serif"><font style="font: 8pt Times New Roman, Times, Serif">Crude Oil</font></td> <td style="text-align: right; font: 8pt Times New Roman, Times, Serif">&#160;</td> <td style="text-align: right; font: 8pt Times New Roman, Times, Serif"><font style="font: 8pt Times New Roman, Times, Serif">6,000</font></td> <td nowrap="nowrap" style="font: 8pt Times New Roman, Times, Serif">&#160;</td> <td style="text-align: right; font: 8pt Times New Roman, Times, Serif">&#160;</td> <td nowrap="nowrap" style="font: 8pt Times New Roman, Times, Serif">&#160;</td> <td style="text-align: right; font: 8pt Times New Roman, Times, Serif">&#160;</td> <td nowrap="nowrap" style="font: 8pt Times New Roman, Times, Serif">&#160;</td> <td nowrap="nowrap" style="text-align: right; font: 8pt Times New Roman, Times, Serif"><font style="font: 8pt Times New Roman, Times, Serif">50.00 &#150; 80.00</font></td> <td nowrap="nowrap" style="font: 8pt Times New Roman, Times, Serif">&#160;</td> <td style="text-align: right; font: 8pt Times New Roman, Times, Serif"><font style="font: 8pt Times New Roman, Times, Serif">296</font></td> <td nowrap="nowrap" style="font: 8pt Times New Roman, Times, Serif">&#160;</td></tr> <tr style="vertical-align: bottom; background-color: White; font: 8pt Times New Roman, Times, Serif"> <td style="font: 8pt Times New Roman, Times, Serif"><font style="font: 8pt Times New Roman, Times, Serif">November 2015 &#150; December 2015</font></td> <td style="text-align: center; font: 8pt Times New Roman, Times, Serif"><font style="font: 8pt Times New Roman, Times, Serif">Put</font></td> <td style="font: 8pt Times New Roman, Times, Serif">&#160;</td> <td style="text-align: center; font: 8pt Times New Roman, Times, Serif"><font style="font: 8pt Times New Roman, Times, Serif">Crude Oil</font></td> <td style="text-align: right; font: 8pt Times New Roman, Times, Serif">&#160;</td> <td style="text-align: right; font: 8pt Times New Roman, Times, Serif"><font style="font: 8pt Times New Roman, Times, Serif">2,800</font></td> <td nowrap="nowrap" style="font: 8pt Times New Roman, Times, Serif">&#160;</td> <td style="text-align: right; font: 8pt Times New Roman, Times, Serif">&#160;</td> <td nowrap="nowrap" style="font: 8pt Times New Roman, Times, Serif">&#160;</td> <td style="text-align: right; font: 8pt Times New Roman, Times, Serif">&#160;</td> <td nowrap="nowrap" style="font: 8pt Times New Roman, Times, Serif">&#160;</td> <td style="text-align: right; font: 8pt Times New Roman, Times, Serif"><font style="font: 8pt Times New Roman, Times, Serif">80.00</font></td> <td nowrap="nowrap" style="font: 8pt Times New Roman, Times, Serif">&#160;</td> <td style="text-align: right; font: 8pt Times New Roman, Times, Serif"><font style="font: 8pt Times New Roman, Times, Serif">92</font></td> <td nowrap="nowrap" style="font: 8pt Times New Roman, Times, Serif">&#160;</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255); font: 8pt Times New Roman, Times, Serif"> <td style="font: 8pt Times New Roman, Times, Serif"><font style="font: 8pt Times New Roman, Times, Serif">July 2015 &#150; December 2015</font></td> <td style="text-align: center; font: 8pt Times New Roman, Times, Serif"><font style="font: 8pt Times New Roman, Times, Serif">Put</font></td> <td style="font: 8pt Times New Roman, Times, Serif">&#160;</td> <td style="text-align: center; font: 8pt Times New Roman, Times, Serif"><font style="font: 8pt Times New Roman, Times, Serif">Crude Oil</font></td> <td style="text-align: right; font: 8pt Times New Roman, Times, Serif">&#160;</td> <td style="text-align: right; font: 8pt Times New Roman, Times, Serif"><font style="font: 8pt Times New Roman, Times, Serif">4,000</font></td> <td nowrap="nowrap" style="font: 8pt Times New Roman, Times, Serif">&#160;</td> <td style="font: 8pt Times New Roman, Times, Serif">&#160;</td> <td nowrap="nowrap" style="font: 8pt Times New Roman, Times, Serif">&#160;</td> <td style="font: 8pt Times New Roman, Times, Serif">&#160;</td> <td nowrap="nowrap" style="font: 8pt Times New Roman, Times, Serif">&#160;</td> <td style="text-align: right; font: 8pt Times New Roman, Times, Serif"><font style="font: 8pt Times New Roman, Times, Serif">70.00</font></td> <td nowrap="nowrap" style="font: 8pt Times New Roman, Times, Serif">&#160;</td> <td style="text-align: right; font: 8pt Times New Roman, Times, Serif"><font style="font: 8pt Times New Roman, Times, Serif">203</font></td> <td nowrap="nowrap" style="font: 8pt Times New Roman, Times, Serif">&#160;</td></tr> <tr style="vertical-align: bottom; background-color: White; font: 8pt Times New Roman, Times, Serif"> <td style="font: 8pt Times New Roman, Times, Serif"><font style="font: 8pt Times New Roman, Times, Serif">January 2016 &#150; March 2016</font></td> <td style="text-align: center; font: 8pt Times New Roman, Times, Serif"><font style="font: 8pt Times New Roman, Times, Serif">Put</font></td> <td style="font: 8pt Times New Roman, Times, Serif">&#160;</td> <td style="text-align: center; font: 8pt Times New Roman, Times, Serif"><font style="font: 8pt Times New Roman, Times, Serif">Crude Oil</font></td> <td style="text-align: right; font: 8pt Times New Roman, Times, Serif">&#160;</td> <td style="text-align: right; font: 8pt Times New Roman, Times, Serif"><font style="font: 8pt Times New Roman, Times, Serif">1,500</font></td> <td nowrap="nowrap" style="font: 8pt Times New Roman, Times, Serif">&#160;</td> <td style="text-align: right; font: 8pt Times New Roman, Times, Serif">&#160;</td> <td nowrap="nowrap" style="font: 8pt Times New Roman, Times, Serif">&#160;</td> <td style="text-align: right; font: 8pt Times New Roman, Times, Serif">&#160;</td> <td nowrap="nowrap" style="font: 8pt Times New Roman, Times, Serif">&#160;</td> <td style="text-align: right; font: 8pt Times New Roman, Times, Serif"><font style="font: 8pt Times New Roman, Times, Serif">75.00</font></td> <td nowrap="nowrap" style="font: 8pt Times New Roman, Times, Serif">&#160;</td> <td style="text-align: right; font: 8pt Times New Roman, Times, Serif"><font style="font: 8pt Times New Roman, Times, Serif">52</font></td> <td nowrap="nowrap" style="font: 8pt Times New Roman, Times, Serif">&#160;</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255); font: 8pt Times New Roman, Times, Serif"> <td style="font: 8pt Times New Roman, Times, Serif"><font style="font: 8pt Times New Roman, Times, Serif">January 2016 &#150; December 2016</font></td> <td style="text-align: center; font: 8pt Times New Roman, Times, Serif"><font style="font: 8pt Times New Roman, Times, Serif">Put</font></td> <td style="font: 8pt Times New Roman, Times, Serif">&#160;</td> <td style="text-align: center; font: 8pt Times New Roman, Times, Serif"><font style="font: 8pt Times New Roman, Times, Serif">Crude Oil</font></td> <td style="text-align: right; font: 8pt Times New Roman, Times, Serif">&#160;</td> <td style="text-align: right; font: 8pt Times New Roman, Times, Serif"><font style="font: 8pt Times New Roman, Times, Serif">3,000</font></td> <td nowrap="nowrap" style="font: 8pt Times New Roman, Times, Serif">&#160;</td> <td style="font: 8pt Times New Roman, Times, Serif">&#160;</td> <td nowrap="nowrap" style="font: 8pt Times New Roman, Times, Serif">&#160;</td> <td style="font: 8pt Times New Roman, Times, Serif">&#160;</td> <td nowrap="nowrap" style="font: 8pt Times New Roman, Times, Serif">&#160;</td> <td style="text-align: right; font: 8pt Times New Roman, Times, Serif"><font style="font: 8pt Times New Roman, Times, Serif">50.00&#160;</font></td> <td nowrap="nowrap" style="font: 8pt Times New Roman, Times, Serif">&#160;</td> <td style="text-align: right; font: 8pt Times New Roman, Times, Serif"><font style="font: 8pt Times New Roman, Times, Serif">(25</font></td> <td nowrap="nowrap" style="font: 8pt Times New Roman, Times, Serif"><font style="font: 8pt Times New Roman, Times, Serif">)&#160;</font></td></tr> <tr style="vertical-align: bottom; background-color: White; font: 8pt Times New Roman, Times, Serif"> <td style="font: 8pt Times New Roman, Times, Serif"><font style="font: 8pt Times New Roman, Times, Serif">January 2016 &#150; December 2016</font></td> <td style="text-align: center; font: 8pt Times New Roman, Times, Serif"><font style="font: 8pt Times New Roman, Times, Serif">Collar</font></td> <td style="font: 8pt Times New Roman, Times, Serif">&#160;</td> <td style="text-align: center; font: 8pt Times New Roman, Times, Serif"><font style="font: 8pt Times New Roman, Times, Serif">Crude Oil</font></td> <td style="text-align: right; font: 8pt Times New Roman, Times, Serif">&#160;</td> <td style="text-align: right; font: 8pt Times New Roman, Times, Serif"><font style="font: 8pt Times New Roman, Times, Serif">3,000</font></td> <td nowrap="nowrap" style="font: 8pt Times New Roman, Times, Serif">&#160;</td> <td style="text-align: right; font: 8pt Times New Roman, Times, Serif"><font style="font: 8pt Times New Roman, Times, Serif">54.00</font></td> <td nowrap="nowrap" style="font: 8pt Times New Roman, Times, Serif">&#160;</td> <td style="text-align: right; font: 8pt Times New Roman, Times, Serif"><font style="font: 8pt Times New Roman, Times, Serif">79.30</font></td> <td nowrap="nowrap" style="font: 8pt Times New Roman, Times, Serif">&#160;</td> <td style="text-align: right; font: 8pt Times New Roman, Times, Serif">&#160;</td> <td nowrap="nowrap" style="font: 8pt Times New Roman, Times, Serif">&#160;</td> <td style="text-align: right; font: 8pt Times New Roman, Times, Serif"><font style="font: 8pt Times New Roman, Times, Serif">(61</font></td> <td nowrap="nowrap" style="font: 8pt Times New Roman, Times, Serif"><font style="font: 8pt Times New Roman, Times, Serif">)</font></td></tr> </table> <p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">Fair Value of Derivative Financial Instruments</p> <p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0">&#160;</p> <table cellspacing="0" cellpadding="0" style="font: 8pt Calibri, Helvetica, Sans-Serif; width: 100%; border-collapse: collapse"> <tr style="vertical-align: top"> <td style="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%"><font style="font: 8pt Times New Roman, Times, Serif"><b>($ in thousands)</b></font></td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&#160;</td> <td colspan="3" style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; line-height: 115%"><font style="font: 8pt Times New Roman, Times, Serif"><b>June 30, 2015</b></font></td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; line-height: 115%">&#160;</td> <td colspan="2" style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; line-height: 115%"><font style="font: 8pt Times New Roman, Times, Serif"><b>December 31, 2014</b></font></td></tr> <tr style="vertical-align: top; background-color: #CCECFF"> <td style="width: 58%; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%"><font style="font: 8pt Times New Roman, Times, Serif">Derivative financial instruments - Current asset</font></td> <td style="width: 3%; padding-right: -5.65pt; text-align: right; line-height: 115%"><font style="font: 8pt Times New Roman, Times, Serif">$</font></td> <td style="width: 15%; padding-right: -2.8pt; text-align: right; line-height: 115%"><font style="font: 8pt Times New Roman, Times, Serif">596</font></td> <td style="width: 2%; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&#160;</td> <td style="width: 3%; padding-right: -5.65pt; text-align: right; line-height: 115%">&#160;</td> <td style="width: 2%; padding-right: -5.65pt; text-align: right; line-height: 115%"><font style="font: 8pt Times New Roman, Times, Serif">$</font></td> <td style="width: 15%; padding-right: -2.8pt; text-align: right; line-height: 115%"><font style="font: 8pt Times New Roman, Times, Serif">1,699</font></td> <td style="width: 2%; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&#160;</td></tr> <tr style="vertical-align: top; background-color: white"> <td style="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%"><font style="font: 8pt Times New Roman, Times, Serif">Derivative financial instruments - Long-term assets</font></td> <td style="padding-right: -5.65pt; text-align: right; line-height: 115%">&#160;</td> <td style="padding-right: -2.8pt; text-align: right; line-height: 115%"><font style="font: 8pt Times New Roman, Times, Serif">-</font></td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&#160;</td> <td style="padding-right: -5.65pt; text-align: right; line-height: 115%">&#160;</td> <td style="padding-right: -5.65pt; text-align: right; line-height: 115%">&#160;</td> <td style="padding-right: -2.8pt; text-align: right; line-height: 115%"><font style="font: 8pt Times New Roman, Times, Serif">67</font></td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&#160;</td></tr> <tr style="vertical-align: top; background-color: #CCECFF"> <td style="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%"><font style="font: 8pt Times New Roman, Times, Serif">Derivative financial instruments - Current liabilities</font></td> <td style="padding-right: -5.65pt; text-align: right; line-height: 115%">&#160;</td> <td style="padding-right: -2.8pt; text-align: right; line-height: 115%; vertical-align: top"><font style="font: 8pt Times New Roman, Times, Serif">(39</font></td> <td style="padding-right: 5.4pt; line-height: 115%; text-align: left; vertical-align: top; padding-left: -10pt">)&#160;</td> <td style="padding-right: -5.65pt; text-align: right; line-height: 115%">&#160;</td> <td style="padding-right: -5.65pt; text-align: right; line-height: 115%">&#160;</td> <td style="padding-right: -2.8pt; text-align: right; line-height: 115%"><font style="font: 8pt Times New Roman, Times, Serif">-</font></td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&#160;</td></tr> <tr style="vertical-align: top; background-color: white"> <td style="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%"><font style="font: 8pt Times New Roman, Times, Serif">Derivative financial instruments - Long-term liabilities</font></td> <td style="border-bottom: Black 1.5pt double; padding-right: -5.65pt; text-align: right; line-height: 115%">&#160;</td> <td style="border-bottom: Black 1.5pt double; padding-right: -2.8pt; text-align: right; line-height: 115%"><font style="font: 8pt Times New Roman, Times, Serif">-</font></td> <td style="border-bottom: Black 1.5pt double; padding-left: 1pt; text-indent: -1pt; line-height: 115%">&#160;</td> <td style="padding-right: -5.65pt; text-align: right; line-height: 115%">&#160;</td> <td style="border-bottom: Black 1.5pt double; padding-right: -5.65pt; text-align: right; line-height: 115%">&#160;</td> <td style="border-bottom: Black 1.5pt double; padding-right: -2.8pt; text-align: right; line-height: 115%"><font style="font: 8pt Times New Roman, Times, Serif">-</font></td> <td style="border-bottom: Black 1.5pt double; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&#160;</td></tr> <tr style="vertical-align: top; background-color: #CCECFF"> <td style="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%"><font style="font: 8pt Times New Roman, Times, Serif">Net derivative financial instruments</font></td> <td style="border-bottom: Black 1.5pt double; padding-right: -5.65pt; text-align: right; line-height: 115%"><font style="font: 8pt Times New Roman, Times, Serif">$</font></td> <td style="border-bottom: Black 1.5pt double; padding-right: -2.8pt; text-align: right; line-height: 115%"><font style="font: 8pt Times New Roman, Times, Serif">557</font></td> <td style="border-bottom: Black 1.5pt double; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&#160;</td> <td style="padding-right: -5.65pt; text-align: right; line-height: 115%">&#160;</td> <td style="border-bottom: Black 1.5pt double; padding-right: -5.65pt; text-align: right; line-height: 115%"><font style="font: 8pt Times New Roman, Times, Serif">$</font></td> <td style="border-bottom: Black 1.5pt double; padding-right: -2.8pt; text-align: right; line-height: 115%"><font style="font: 8pt Times New Roman, Times, Serif">1,766</font></td> <td style="border-bottom: Black 1.5pt double; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&#160;</td></tr> </table> <p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">Effect of Derivative Financial Instruments</p> <p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0">&#160;</p> <table cellspacing="0" cellpadding="0" style="font: 8pt Calibri, Helvetica, Sans-Serif; width: 100%"> <tr style="vertical-align: bottom"> <td style="line-height: 115%"><font style="font: 8pt Times New Roman, Times, Serif"><b>($ in thousands)</b></font></td> <td style="line-height: 115%">&#160;</td> <td colspan="2" style="border-bottom: black 1.5pt solid"> <p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center"><b>June 30,</b></p> <p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center"><b>2015</b></p></td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td colspan="3" style="border-bottom: black 1.5pt solid"><p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center"><b>June 30,</b></p> <p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center"><b>2014</b></p> </td></tr> <tr style="vertical-align: bottom"> <td style="width: 62%; line-height: 115%"><font style="font: 8pt Times New Roman, Times, Serif">Realized gain/(loss) on settlement of derivative contracts</font></td> <td style="width: 3%; line-height: 115%">&#160;</td> <td style="width: 2%; line-height: 115%"><font style="font: 8pt Times New Roman, Times, Serif">$</font></td> <td style="width: 11%; text-align: right; line-height: 115%"><font style="font: 8pt Times New Roman, Times, Serif">976</font></td> <td style="width: 1%; line-height: 115%">&#160;</td> <td style="width: 3%; line-height: 115%">&#160;</td> <td style="width: 5%; text-align: right; line-height: 115%"><font style="font: 8pt Times New Roman, Times, Serif">$</font></td> <td style="width: 8%; text-align: right; line-height: 115%"><br /> <font style="font: 8pt Times New Roman, Times, Serif">(57</font></td> <td style="width: 5%; line-height: 115%"><font style="font: 8pt Times New Roman, Times, Serif">)</font></td></tr> <tr style="vertical-align: bottom; background-color: #CCECFF"> <td style="line-height: 115%"><font style="font: 8pt Times New Roman, Times, Serif">Unrealized gain/(loss) from derivative contracts</font></td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="border-bottom: Black 1pt solid; text-align: right; line-height: 115%"><font style="font: 8pt Times New Roman, Times, Serif">(1,209</font></td> <td style="border-bottom: Black 1pt solid; line-height: 115%"><font style="font: 8pt Times New Roman, Times, Serif">)</font></td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="border-bottom: Black 1pt solid; text-align: right; line-height: 115%"><font style="font: 8pt Times New Roman, Times, Serif">170</font></td> <td style="border-bottom: Black 1pt solid; line-height: 115%">&#160;</td></tr> <tr style="vertical-align: bottom"> <td style="line-height: 115%"><font style="font: 8pt Times New Roman, Times, Serif">Realized/Unrealized gain/(loss) from derivative contracts</font></td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%"><font style="font: 8pt Times New Roman, Times, Serif">$</font></td> <td style="border-top: Black 1pt solid; border-bottom: Black 1.5pt double; text-align: right; line-height: 115%"><font style="font: 8pt Times New Roman, Times, Serif">(233</font></td> <td style="border-top: Black 1pt solid; border-bottom: Black 1.5pt double; line-height: 115%"><font style="font: 8pt Times New Roman, Times, Serif">)</font></td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="border-top: Black 1pt solid; border-bottom: Black 1.5pt double; text-align: right; line-height: 115%"><font style="font: 8pt Times New Roman, Times, Serif">113</font></td> </tr></table> <table cellspacing="0" cellpadding="0" style="font: 8pt Calibri, Helvetica, Sans-Serif; width: 100%"> <tr style="vertical-align: bottom"> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center; line-height: 115%"><font style="font: 8pt Times New Roman, Times, Serif"><b>2014</b></font></td> <td nowrap="nowrap" style="line-height: 115%">&#160;</td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td style="width: 71%; line-height: 115%"><font style="font: 8pt Times New Roman, Times, Serif">Risk-free interest rate</font></td> <td style="width: 7%; line-height: 115%">&#160;</td> <td style="width: 2%; line-height: 115%">&#160;</td> <td style="width: 18%; text-align: right; line-height: 115%"><font style="font: 8pt Times New Roman, Times, Serif">1.87</font></td> <td nowrap="nowrap" style="width: 2%; line-height: 115%"><font style="font: 8pt Times New Roman, Times, Serif">%</font></td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="line-height: 115%"><font style="font: 8pt Times New Roman, Times, Serif">Expected volatility of common stock</font></td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="text-align: right; line-height: 115%"><font style="font: 8pt Times New Roman, Times, Serif">92</font></td> <td nowrap="nowrap" style="line-height: 115%"><font style="font: 8pt Times New Roman, Times, Serif">%</font></td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td style="line-height: 115%"><font style="font: 8pt Times New Roman, Times, Serif">Dividend yield</font></td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%"><font style="font: 8pt Times New Roman, Times, Serif">$</font></td> <td style="text-align: right; line-height: 115%"><font style="font: 8pt Times New Roman, Times, Serif">0.00</font></td> <td nowrap="nowrap" style="line-height: 115%">&#160;</td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="line-height: 115%"><font style="font: 8pt Times New Roman, Times, Serif">Expected life of options</font></td> <td style="line-height: 115%">&#160;</td> <td colspan="2" style="text-align: center; line-height: 115%"><font style="font: 8pt Times New Roman, Times, Serif">5.72 years</font></td> <td nowrap="nowrap" style="line-height: 115%">&#160;</td></tr> </table> <table cellspacing="0" cellpadding="0" style="font: 8pt Calibri, Helvetica, Sans-Serif; width: 100%"> <tr style="vertical-align: bottom"> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center; line-height: 115%"><font style="font: 8pt Times New Roman, Times, Serif"><b>Number of Shares Underlying Options</b></font></td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center; line-height: 115%"><font style="font: 8pt Times New Roman, Times, Serif"><b>Weighted Average Exercise Price per Share</b></font></td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center; line-height: 115%"><font style="font: 8pt Times New Roman, Times, Serif"><b>Weighted Average Grant Date Fair Value per Share</b></font></td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center; line-height: 115%"><font style="font: 8pt Times New Roman, Times, Serif"><b>Weighted Average Remaining Contractual Life (in Years)</b></font></td> <td style="line-height: 115%">&#160;</td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td style="width: 44%; line-height: 115%"><font style="font: 8pt Times New Roman, Times, Serif">Outstanding at December 31, 2014</font></td> <td style="width: 1%; line-height: 115%">&#160;</td> <td style="width: 1%; line-height: 115%">&#160;</td> <td style="width: 11%; text-align: right; line-height: 115%"><font style="font: 8pt Times New Roman, Times, Serif">900,000</font></td> <td style="width: 1%; line-height: 115%">&#160;</td> <td style="width: 1%; line-height: 115%">&#160;</td> <td style="width: 1%; line-height: 115%"><font style="font: 8pt Times New Roman, Times, Serif">$</font></td> <td style="width: 11%; text-align: right; line-height: 115%"><font style="font: 8pt Times New Roman, Times, Serif">-</font></td> <td style="width: 1%; line-height: 115%">&#160;</td> <td style="width: 1%; line-height: 115%">&#160;</td> <td style="width: 1%; line-height: 115%"><font style="font: 8pt Times New Roman, Times, Serif">$</font></td> <td style="width: 11%; text-align: right; line-height: 115%"><font style="font: 8pt Times New Roman, Times, Serif">-</font></td> <td style="width: 1%; line-height: 115%">&#160;</td> <td style="width: 1%; line-height: 115%">&#160;</td> <td style="width: 1%; line-height: 115%">&#160;</td> <td style="width: 11%; text-align: right; line-height: 115%"><font style="font: 8pt Times New Roman, Times, Serif">-</font></td> <td style="width: 1%; line-height: 115%">&#160;</td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="text-indent: 0.5in; line-height: 115%"><font style="font: 8pt Times New Roman, Times, Serif">Granted</font></td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="text-align: right; line-height: 115%"><font style="font: 8pt Times New Roman, Times, Serif">-</font></td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="text-align: right; line-height: 115%"><font style="font: 8pt Times New Roman, Times, Serif">4.75</font></td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="text-align: right; line-height: 115%"><font style="font: 8pt Times New Roman, Times, Serif">2.75</font></td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="text-align: right; line-height: 115%"><font style="font: 8pt Times New Roman, Times, Serif">10</font></td> <td style="line-height: 115%">&#160;</td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td style="text-indent: 0.5in; line-height: 115%"><font style="font: 8pt Times New Roman, Times, Serif">Exercised</font></td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="text-align: right; line-height: 115%"><font style="font: 8pt Times New Roman, Times, Serif">-</font></td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="text-align: right; line-height: 115%"><font style="font: 8pt Times New Roman, Times, Serif">-</font></td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="text-align: right; line-height: 115%"><font style="font: 8pt Times New Roman, Times, Serif">-</font></td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="text-align: right; line-height: 115%"><font style="font: 8pt Times New Roman, Times, Serif">-</font></td> <td style="line-height: 115%">&#160;</td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="text-indent: 0.5in; line-height: 115%"><font style="font: 8pt Times New Roman, Times, Serif">Forfeited</font></td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="text-align: right; line-height: 115%"><font style="font: 8pt Times New Roman, Times, Serif">-</font></td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="text-align: right; line-height: 115%"><font style="font: 8pt Times New Roman, Times, Serif">-</font></td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="border-bottom: Black 1.5pt double; text-align: right; line-height: 115%"><font style="font: 8pt Times New Roman, Times, Serif">-</font></td> <td style="border-bottom: Black 1.5pt double; line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="border-bottom: Black 1.5pt double; text-align: right; line-height: 115%"><font style="font: 8pt Times New Roman, Times, Serif">-</font></td> <td style="border-bottom: Black 1.5pt double; line-height: 115%">&#160;</td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td style="line-height: 115%"><font style="font: 8pt Times New Roman, Times, Serif">Outstanding at June 30, 2015</font></td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="border-top: Black 1pt solid; border-bottom: Black 1.5pt double; text-align: right; line-height: 115%"><font style="font: 8pt Times New Roman, Times, Serif">900,000</font></td> <td style="border-top: Black 1pt solid; border-bottom: Black 1.5pt double; line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="border-top: Black 1pt solid; border-bottom: Black 1.5pt double; text-align: right; line-height: 115%"><font style="font: 8pt Times New Roman, Times, Serif">4.75</font></td> <td style="border-top: Black 1pt solid; border-bottom: Black 1.5pt double; line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="border-bottom: Black 1.5pt double; text-align: right; line-height: 115%"><font style="font: 8pt Times New Roman, Times, Serif">2.75</font></td> <td style="border-bottom: Black 1.5pt double; line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="border-bottom: Black 1.5pt double; text-align: right; line-height: 115%"><font style="font: 8pt Times New Roman, Times, Serif">10</font></td> <td style="border-bottom: Black 1.5pt double; line-height: 115%">&#160;</td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="line-height: 115%"><font style="font: 8pt Times New Roman, Times, Serif">Exercisable at June 30, 2015</font></td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="text-align: right; line-height: 115%"><font style="font: 8pt Times New Roman, Times, Serif">-</font></td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="text-align: right; line-height: 115%"><font style="font: 8pt Times New Roman, Times, Serif">-</font></td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="text-align: right; line-height: 115%"><font style="font: 8pt Times New Roman, Times, Serif">-</font></td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="text-align: right; line-height: 115%"><font style="font: 8pt Times New Roman, Times, Serif">-</font></td> <td style="line-height: 115%">&#160;</td></tr> </table> 296000 92000 203000 52000 -25000 -61000 300000 600000 413000 1800000 1350000 3046000 269000 398000 1081000 2648000 1745000 929000 973000 717000 233000 -113000 647000 -115000 0 4428378000 1349693000 900000 349650 7249390000 425000 <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">Brushy Resources, Inc. (the &#147;Company&#148; &#150; formerly known as &#147;Starboard Resources, Inc.&#148;) is filing this Amendment No. 1 on Form 10-Q/A (the &#147;Amended Report&#147;) to the Quarterly Report on form 10-Q of Starboard Resources for the quarterly period ended June 30, 2015 (the &#147;Original Report&#148;), originally filed with the Securities and Exchange Commission on August 14, 2015.&#160;&#160;The purpose of the Amended Report is to correct certain errors related to the impairment of the Company&#146;s Oklahoma properties contained in the financial statements and related disclosures contained in the Original Report, as described in Note 1 &#150; Restatement.</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&#160;</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">In November 2015, the Company discovered an error in computation of impairment regarding the Oklahoma properties for the quarterly period ended June 30, 2015.&#160;&#160;Specifically, the impairment calculation included in the Company&#146;s financial statements for period ended June 30, 2015 did not take into account previously recorded impairment on the Oklahoma properties resulting in improper recording of $1,350,000 in impairment.&#160;&#160;The changes in the impairment resulted in a non-cash reduction of loss to the financial statements.&#160;&#160;The Company has determined that the impact of non-cash item on its quarterly financial statements for the quarters ended June 30, 2015 to be sufficiently material to warrant restatement of the Company&#146;s Quarterly Reports on Form 10-Q.</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">In November 2015, during the preparation of our condensed financial statements for the nine months ended September 30, 2015, the Company discovered an error in the computation of impairment of Oklahoma properties for the quarterly period ended June 30, 2015. Specifically, the impairment calculation included in the Company&#146;s financial statements for period ended June 30, 2015 did not take into account previously recorded impairment on the Oklahoma properties resulting in improper recording of $1,350,000 in impairment. The changes in the impairment resulted in a non-cash reduction of loss to the financial statements. The Company has determined that the impact of non-cash item on its quarterly financial statements for the quarters ended June 30, 2015 to be sufficiently material to warrant restatement of the Company&#146;s Quarterly Reports on Form 10-Q.</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&#160;</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The line items that have been amended and restated are set forth below:</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b>Balance Sheets</b></p> <table cellspacing="0" cellpadding="0" style="font: 8pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr> <td colspan="4" style="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&#160;</td> <td colspan="10" style="vertical-align: bottom; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><font style="font-size: 8pt">June 30, 2015</font></td> <td style="font-size: 12pt">&#160;</td></tr> <tr style="vertical-align: bottom"> <td colspan="4" style="padding-right: 5.4pt; padding-left: 5.4pt">&#160;</td> <td colspan="2" style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><font style="font-size: 8pt">As Previously </font></td> <td colspan="2" style="padding-right: 5.4pt; padding-left: 5.4pt">&#160;</td> <td colspan="2" style="padding-right: 5.4pt; padding-left: 5.4pt">&#160;</td> <td colspan="2" style="padding-right: 5.4pt; padding-left: 5.4pt">&#160;</td> <td colspan="3" style="padding-right: 5.4pt; padding-left: 5.4pt">&#160;</td></tr> <tr style="vertical-align: bottom"> <td colspan="4" style="padding-right: 5.4pt; padding-left: 5.4pt">&#160;</td> <td colspan="2" style="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><font style="font-size: 8pt">Reported</font></td> <td colspan="2" style="padding-right: 5.4pt; padding-left: 5.4pt">&#160;</td> <td colspan="2" style="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><font style="font-size: 8pt">Adjustment</font></td> <td colspan="2" style="padding-right: 5.4pt; padding-left: 5.4pt">&#160;</td> <td colspan="3" style="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><font style="font-size: 8pt">As Restated</font></td></tr> <tr> <td colspan="2" style="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&#160;</td> <td style="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&#160;</td> <td colspan="2" style="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&#160;</td> <td colspan="2" style="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&#160;</td> <td colspan="2" style="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&#160;</td> <td colspan="2" style="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&#160;</td> <td colspan="2" style="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&#160;</td> <td style="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&#160;</td> <td style="font-size: 12pt">&#160;</td></tr> <tr> <td style="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt"><font style="font-size: 8pt"><b>ASSETS</b></font></td> <td colspan="4" style="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&#160;</td> <td colspan="2" style="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&#160;</td> <td colspan="2" style="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&#160;</td> <td colspan="2" style="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&#160;</td> <td colspan="2" style="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&#160;</td> <td style="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&#160;</td> <td style="font-size: 12pt">&#160;</td></tr> <tr> <td nowrap="nowrap" style="vertical-align: bottom; background-color: #CCEEFF; padding-right: 5.4pt; padding-left: 5.4pt"><font style="font-size: 8pt">Oil and natural gas properties, successful efforts method, net of accumulated depletion</font></td> <td colspan="2" style="vertical-align: bottom; background-color: #CCEEFF; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font-size: 8pt">$</font></td> <td colspan="2" style="vertical-align: bottom; background-color: #CCEEFF; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font-size: 8pt">88,955</font></td> <td colspan="2" style="vertical-align: bottom; background-color: #CCEEFF; padding-right: 5.4pt; padding-left: 5.4pt">&#160;</td> <td colspan="2" style="vertical-align: bottom; background-color: #CCEEFF; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font-size: 8pt">1,350</font></td> <td colspan="2" style="vertical-align: bottom; background-color: #CCEEFF; padding-right: 5.4pt; padding-left: 5.4pt">&#160;</td> <td colspan="2" style="vertical-align: bottom; background-color: #CCEEFF; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font-size: 8pt">$</font></td> <td style="vertical-align: bottom; background-color: #CCEEFF; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font-size: 8pt">90,305</font></td> <td style="font-size: 12pt">&#160;</td></tr> <tr> <td nowrap="nowrap" style="vertical-align: bottom; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt"><font style="font-size: 8pt">Total oil and natural gas properties and other equipment, net</font></td> <td colspan="2" style="vertical-align: bottom; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&#160;</td> <td colspan="2" style="vertical-align: bottom; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&#160;</td> <td colspan="2" style="vertical-align: bottom; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&#160;</td> <td colspan="2" style="vertical-align: bottom; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&#160;</td> <td colspan="2" style="vertical-align: bottom; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&#160;</td> <td colspan="2" style="vertical-align: bottom; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&#160;</td> <td style="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&#160;</td> <td style="font-size: 12pt">&#160;</td></tr> <tr> <td nowrap="nowrap" style="vertical-align: bottom; background-color: #CCEEFF; padding-right: 5.4pt; padding-left: 5.4pt"><font style="font-size: 8pt">Total assets</font></td> <td colspan="2" style="vertical-align: bottom; background-color: #CCEEFF; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font-size: 8pt">$</font></td> <td colspan="2" style="vertical-align: bottom; background-color: #CCEEFF; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font-size: 8pt">96,809</font></td> <td colspan="2" style="vertical-align: bottom; background-color: #CCEEFF; padding-right: 5.4pt; padding-left: 5.4pt">&#160;</td> <td colspan="2" style="vertical-align: bottom; background-color: #CCEEFF; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font-size: 8pt">1,350</font></td> <td colspan="2" style="vertical-align: bottom; background-color: #CCEEFF; padding-right: 5.4pt; padding-left: 5.4pt">&#160;</td> <td colspan="2" style="vertical-align: bottom; background-color: #CCEEFF; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font-size: 8pt">$</font></td> <td style="vertical-align: bottom; background-color: #CCEEFF; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font-size: 8pt">98,159</font></td> <td style="font-size: 12pt">&#160;</td></tr> <tr> <td nowrap="nowrap" style="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&#160;</td> <td colspan="2" style="vertical-align: bottom; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&#160;</td> <td colspan="2" style="vertical-align: bottom; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&#160;</td> <td colspan="2" style="vertical-align: bottom; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&#160;</td> <td colspan="2" style="vertical-align: bottom; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&#160;</td> <td colspan="2" style="vertical-align: bottom; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&#160;</td> <td colspan="2" style="vertical-align: bottom; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&#160;</td> <td style="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&#160;</td> <td style="font-size: 12pt">&#160;</td></tr> <tr> <td nowrap="nowrap" style="vertical-align: bottom; background-color: #CCEEFF; padding-right: 5.4pt; padding-left: 5.4pt"><font style="font-size: 8pt"><b>LIABILITIES AND STOCKHOLDERS' EQUITY</b></font></td> <td colspan="2" style="vertical-align: bottom; background-color: #CCEEFF; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&#160;</td> <td colspan="2" style="vertical-align: bottom; background-color: #CCEEFF; padding-right: 5.4pt; padding-left: 5.4pt">&#160;</td> <td colspan="2" style="vertical-align: bottom; background-color: #CCEEFF; padding-right: 5.4pt; padding-left: 5.4pt">&#160;</td> <td colspan="2" style="vertical-align: bottom; background-color: #CCEEFF; padding-right: 5.4pt; padding-left: 5.4pt">&#160;</td> <td colspan="2" style="vertical-align: bottom; background-color: #CCEEFF; padding-right: 5.4pt; padding-left: 5.4pt">&#160;</td> <td colspan="2" style="vertical-align: bottom; background-color: #CCEEFF; padding-right: 5.4pt; padding-left: 5.4pt">&#160;</td> <td style="vertical-align: bottom; background-color: #CCEEFF; padding-right: 5.4pt; padding-left: 5.4pt">&#160;</td> <td style="font-size: 12pt">&#160;</td></tr> <tr> <td nowrap="nowrap" style="vertical-align: bottom; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt"><font style="font-size: 8pt">Accumulated deficit</font></td> <td colspan="2" style="vertical-align: bottom; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font-size: 8pt">$</font></td> <td colspan="2" style="vertical-align: bottom; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font-size: 8pt">(19,176)</font></td> <td colspan="2" style="vertical-align: bottom; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&#160;</td> <td colspan="2" style="vertical-align: bottom; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font-size: 8pt">1,350</font></td> <td colspan="2" style="vertical-align: bottom; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&#160;</td> <td colspan="2" style="vertical-align: bottom; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font-size: 8pt">$</font></td> <td style="vertical-align: bottom; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font-size: 8pt">(17,826)</font></td> <td style="font-size: 12pt">&#160;</td></tr> <tr> <td nowrap="nowrap" style="vertical-align: bottom; background-color: #CCEEFF; padding-right: 5.4pt; padding-left: 5.4pt"><font style="font-size: 8pt">Total stockholders' equity</font></td> <td colspan="2" style="vertical-align: bottom; background-color: #CCEEFF; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&#160;</td> <td colspan="2" style="vertical-align: bottom; background-color: #CCEEFF; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font-size: 8pt">37,469</font></td> <td colspan="2" style="vertical-align: bottom; background-color: #CCEEFF; padding-right: 5.4pt; padding-left: 5.4pt">&#160;</td> <td colspan="2" style="vertical-align: bottom; background-color: #CCEEFF; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font-size: 8pt">1,350</font></td> <td colspan="2" style="vertical-align: bottom; background-color: #CCEEFF; padding-right: 5.4pt; padding-left: 5.4pt">&#160;</td> <td colspan="2" style="vertical-align: bottom; background-color: #CCEEFF; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&#160;</td> <td style="vertical-align: bottom; background-color: #CCEEFF; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font-size: 8pt">38,819</font></td> <td style="font-size: 12pt">&#160;</td></tr> <tr> <td nowrap="nowrap" style="vertical-align: bottom; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt"><font style="font-size: 8pt">Total liabilities and stockholders' equity</font></td> <td colspan="2" style="vertical-align: bottom; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font-size: 8pt">$</font></td> <td colspan="2" style="vertical-align: bottom; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font-size: 8pt">96,809 </font></td> <td colspan="2" style="vertical-align: bottom; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&#160;</td> <td colspan="2" style="vertical-align: bottom; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font-size: 8pt">1,350</font></td> <td colspan="2" style="vertical-align: bottom; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&#160;</td> <td colspan="2" style="vertical-align: bottom; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font-size: 8pt">$</font></td> <td style="vertical-align: bottom; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font-size: 8pt">98,159 </font></td> <td style="font-size: 12pt">&#160;</td></tr> <tr> <td style="width: 343px">&#160;</td> <td style="width: 5px">&#160;</td> <td>&#160;</td> <td style="width: 25px">&#160;</td> <td style="width: 44px">&#160;</td> <td style="width: 20px">&#160;</td> <td style="width: 13px">&#160;</td> <td style="width: 4px">&#160;</td> <td style="width: 68px">&#160;</td> <td style="width: 5px">&#160;</td> <td style="width: 13px">&#160;</td> <td style="width: 5px">&#160;</td> <td style="width: 16px">&#160;</td> <td>&#160;</td> <td>&#160;</td></tr> </table> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><b>Statements of Operations</b></p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0"><b>&#160;</b></p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0"><b>&#160;</b></p> <table cellspacing="0" cellpadding="0" style="width: 100%; font: 8pt Times New Roman, Times, Serif; border-collapse: collapse"> <tr style="vertical-align: top"> <td style="padding-right: 5.4pt; padding-left: 5.4pt">&#160;</td> <td colspan="9" style="border-bottom: Black 1.5pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><font style="font-size: 8pt">Three Months Ended June 30, 2015</font></td> <td colspan="9" style="border-bottom: Black 1.5pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><font style="font-size: 8pt">Six Months Ended June 30, 2015</font></td></tr> <tr> <td style="vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt">&#160;</td> <td colspan="3" style="vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt"><font style="font-size: 8pt">As Previously</font></td> <td style="vertical-align: top; border-top: Black 1.5pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&#160;</td> <td style="vertical-align: top; border-top: Black 1.5pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&#160;</td> <td style="vertical-align: top; border-top: Black 1.5pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&#160;</td> <td style="vertical-align: top; border-top: Black 1.5pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&#160;</td> <td style="vertical-align: top; border-top: Black 1.5pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&#160;</td> <td style="vertical-align: top; border-top: Black 1.5pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&#160;</td> <td colspan="3" style="vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><font style="font-size: 8pt">As Previously</font></td> <td style="vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">&#160;</td> <td style="vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">&#160;</td> <td style="vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">&#160;</td> <td style="vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">&#160;</td> <td style="vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">&#160;</td> <td style="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">&#160;</td></tr> <tr style="vertical-align: top"> <td style="padding-right: 5.4pt; padding-left: 5.4pt">&#160;</td> <td colspan="3" style="border-bottom: Black 1.5pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><font style="font-size: 8pt">Reported</font></td> <td colspan="3" style="border-bottom: Black 1.5pt solid; padding-right: 5.4pt; padding-left: 5.4pt"><font style="font-size: 8pt">Adjustment</font></td> <td colspan="3" style="border-bottom: Black 1.5pt solid; padding-right: 5.4pt; padding-left: 5.4pt"><font style="font-size: 8pt">As Restated</font></td> <td colspan="3" style="border-bottom: Black 1.5pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><font style="font-size: 8pt">Reported</font></td> <td colspan="3" style="border-bottom: Black 1.5pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><font style="font-size: 8pt">Adjustment</font></td> <td colspan="3" style="border-bottom: Black 1.5pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><font style="font-size: 8pt">As Restated</font></td></tr> <tr style="vertical-align: bottom"> <td style="width: 36%; padding-right: 5.4pt; padding-left: 5.4pt">&#160;</td> <td style="width: 3%; padding-right: 5.4pt; padding-left: 5.4pt">&#160;</td> <td style="width: 6%; border-top: Black 1.5pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&#160;</td> <td style="width: 2%; border-top: Black 1.5pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&#160;</td> <td style="width: 7%; padding-right: 5.4pt; padding-left: 5.4pt">&#160;</td> <td style="width: 2%; padding-right: 5.4pt; padding-left: 5.4pt">&#160;</td> <td style="width: 2%; padding-right: 5.4pt; padding-left: 5.4pt">&#160;</td> <td style="width: 3%; padding-right: 5.4pt; padding-left: 5.4pt">&#160;</td> <td style="width: 5%; padding-right: 5.4pt; padding-left: 5.4pt">&#160;</td> <td style="width: 2%; padding-right: 5.4pt; padding-left: 5.4pt">&#160;</td> <td style="width: 3%; padding-right: 5.4pt; padding-left: 5.4pt">&#160;</td> <td style="width: 6%; padding-right: 5.4pt; padding-left: 5.4pt">&#160;</td> <td style="width: 2%; padding-right: 5.4pt; padding-left: 5.4pt">&#160;</td> <td style="width: 6%; padding-right: 5.4pt; padding-left: 5.4pt">&#160;</td> <td style="width: 2%; padding-right: 5.4pt; padding-left: 5.4pt">&#160;</td> <td style="width: 2%; padding-right: 5.4pt; padding-left: 5.4pt">&#160;</td> <td style="width: 3%; padding-right: 5.4pt; padding-left: 5.4pt">&#160;</td> <td style="width: 6%; padding-right: 5.4pt; padding-left: 5.4pt">&#160;</td> <td style="width: 2%; padding-right: 5.4pt; padding-left: 5.4pt">&#160;</td></tr> <tr style="vertical-align: bottom; background-color: #CCECFF"> <td style="padding-right: 5.4pt; padding-left: 5.4pt"><font style="font-size: 8pt">Impairment of oil and gas properties</font></td> <td style="padding-right: 5.4pt; padding-left: 5.4pt"><font style="font-size: 8pt">$</font></td> <td style="padding-right: -0.05in; padding-left: 5.4pt; text-align: right"><font style="font-size: 8pt">1,350</font></td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify">&#160;</td> <td style="padding-right: -0.05in; padding-left: 5.4pt; text-align: right"><font style="font-size: 8pt">(1,350</font></td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; text-indent: -4.65pt"><font style="font-size: 8pt">)</font></td> <td style="padding-right: 5.4pt; padding-left: 5.4pt">&#160;</td> <td style="padding-right: 5.4pt; padding-left: 5.4pt"><font style="font-size: 8pt">$</font></td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font-size: 8pt">-</font></td> <td style="padding-right: 5.4pt; padding-left: 5.4pt">&#160;</td> <td style="padding-right: 5.4pt; padding-left: 5.4pt"><font style="font-size: 8pt">$</font></td> <td style="padding-right: -5.4pt; padding-left: 5.4pt; text-align: right"><font style="font-size: 8pt">1,350</font></td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; text-indent: -4.65pt">&#160;</td> <td style="padding-right: -5.4pt; padding-left: 5.4pt; text-align: right"><font style="font-size: 8pt">(1,350</font></td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; text-indent: -4.65pt"><font style="font-size: 8pt">)</font></td> <td style="padding-right: 5.4pt; padding-left: 5.4pt">&#160;</td> <td style="padding-right: 5.4pt; padding-left: 5.4pt"><font style="font-size: 8pt">$</font></td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font-size: 8pt">-</font></td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; text-indent: -5.4pt">&#160;</td></tr> <tr style="vertical-align: bottom"> <td style="padding-right: 5.4pt; padding-left: 5.4pt"><font style="font-size: 8pt">Net income (loss)</font></td> <td style="padding-right: 5.4pt; padding-left: 5.4pt"><font style="font-size: 8pt">$</font></td> <td style="padding-right: -0.05in; padding-left: 5.4pt; text-align: right"><font style="font-size: 8pt">(2,354</font></td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify; text-indent: -2.7pt"><font style="font-size: 8pt">)</font></td> <td style="padding-right: -0.05in; padding-left: 5.4pt; text-align: right"><font style="font-size: 8pt">1,350</font></td> <td style="padding-right: 5.4pt; padding-left: 5.4pt">&#160;</td> <td style="padding-right: 5.4pt; padding-left: 5.4pt">&#160;</td> <td style="padding-right: 5.4pt; padding-left: 5.4pt"><font style="font-size: 8pt">$</font></td> <td style="padding-right: -5.4pt; padding-left: 5.4pt; text-align: right"><font style="font-size: 8pt">(1,004</font></td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; text-indent: -4.65pt"><font style="font-size: 8pt">)</font></td> <td style="padding-right: 5.4pt; padding-left: 5.4pt"><font style="font-size: 8pt">$</font></td> <td style="padding-right: -5.4pt; padding-left: 5.4pt; text-align: right"><font style="font-size: 8pt">(5,043</font></td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; text-indent: -4.65pt"><font style="font-size: 8pt">)</font></td> <td style="padding-right: -5.4pt; padding-left: 5.4pt; text-align: right"><font style="font-size: 8pt">1,350</font></td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; text-indent: -4.65pt">&#160;</td> <td style="padding-right: 5.4pt; padding-left: 5.4pt">&#160;</td> <td style="padding-right: 5.4pt; padding-left: 5.4pt"><font style="font-size: 8pt">$</font></td> <td style="padding-right: -5.4pt; padding-left: 5.4pt; text-align: right"><font style="font-size: 8pt">(3,693</font></td> <td style="padding-right: -5.4pt; padding-left: 5.4pt; text-indent: -5.4pt"><font style="font-size: 8pt">)</font></td></tr> <tr style="vertical-align: bottom; background-color: #CCECFF"> <td style="padding-right: 5.4pt; padding-left: 5.4pt"><font style="font-size: 8pt">Net income (loss) per basic and diluted common share</font></td> <td style="padding-right: 5.4pt; padding-left: 5.4pt"><font style="font-size: 8pt">$</font></td> <td style="padding-right: -0.05in; padding-left: 5.4pt; text-align: right"><font style="font-size: 8pt">(0.19</font></td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify; text-indent: -5.15pt"><font style="font-size: 8pt">)</font></td> <td style="padding-right: 5.4pt; padding-left: 5.4pt">&#160;</td> <td style="padding-right: 5.4pt; padding-left: 5.4pt">&#160;</td> <td style="padding-right: 5.4pt; padding-left: 5.4pt">&#160;</td> <td style="padding-right: 5.4pt; padding-left: 5.4pt"><font style="font-size: 8pt">$</font></td> <td style="padding-right: -5.4pt; padding-left: 5.4pt; text-align: right"><font style="font-size: 8pt">(0.08</font></td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; text-indent: -4.65pt"><font style="font-size: 8pt">)</font></td> <td style="padding-right: 5.4pt; padding-left: 5.4pt"><font style="font-size: 8pt">$</font></td> <td style="padding-right: -5.4pt; padding-left: 5.4pt; text-align: right"><font style="font-size: 8pt">(0.40</font></td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; text-indent: -4.65pt"><font style="font-size: 8pt">)</font></td> <td style="padding-right: -5.4pt; padding-left: 5.4pt; text-align: right">&#160;</td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; text-indent: -4.65pt">&#160;</td> <td style="padding-right: 5.4pt; padding-left: 5.4pt">&#160;</td> <td style="padding-right: 5.4pt; padding-left: 5.4pt"><font style="font-size: 8pt">$</font></td> <td style="padding-right: -5.4pt; padding-left: 5.4pt; text-align: right"><font style="font-size: 8pt">(0.29</font></td> <td style="padding-right: -5.4pt; padding-left: 5.4pt; text-indent: -5.4pt"><font style="font-size: 8pt">)</font></td></tr> </table> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0"><b>&#160;</b></p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0"><b>&#160;</b></p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b>&#160;</b></p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b>&#160;</b></p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0"><b>Statements of Cash Flows</b></p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0"><b>&#160;</b></p> <table cellspacing="0" cellpadding="0" style="font: 8pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="vertical-align: bottom"> <td style="padding-right: 5.4pt; padding-left: 5.4pt">&#160;</td> <td colspan="7" style="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><font style="font-size: 8pt">Six Months Ended June 30, 2015</font></td></tr> <tr style="vertical-align: bottom"> <td style="padding-right: 5.4pt; padding-left: 5.4pt">&#160;</td> <td colspan="2" style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><font style="font-size: 8pt">As Previously </font></td> <td style="padding-right: 5.4pt; padding-left: 5.4pt">&#160;</td> <td style="padding-right: 5.4pt; padding-left: 5.4pt">&#160;</td> <td style="padding-right: 5.4pt; padding-left: 5.4pt">&#160;</td> <td colspan="2" style="padding-right: 5.4pt; padding-left: 5.4pt">&#160;</td></tr> <tr style="vertical-align: bottom"> <td style="padding-right: 5.4pt; padding-left: 5.4pt">&#160;</td> <td colspan="2" style="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><font style="font-size: 8pt">Reported</font></td> <td style="padding-right: 5.4pt; padding-left: 5.4pt">&#160;</td> <td style="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><font style="font-size: 8pt">Adjustment</font></td> <td style="padding-right: 5.4pt; padding-left: 5.4pt">&#160;</td> <td colspan="2" style="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><font style="font-size: 8pt">As Restated</font></td></tr> <tr style="vertical-align: bottom"> <td style="width: 58%; padding-right: 5.4pt; padding-left: 5.4pt">&#160;</td> <td style="width: 4%; padding-right: 5.4pt; padding-left: 5.4pt">&#160;</td> <td style="width: 10%; padding-right: 5.4pt; padding-left: 5.4pt">&#160;</td> <td style="width: 3%; padding-right: 5.4pt; padding-left: 5.4pt">&#160;</td> <td style="width: 10%; padding-right: 5.4pt; padding-left: 5.4pt">&#160;</td> <td style="width: 3%; padding-right: 5.4pt; padding-left: 5.4pt">&#160;</td> <td style="width: 3%; padding-right: 5.4pt; padding-left: 5.4pt">&#160;</td> <td style="width: 9%; padding-right: 5.4pt; padding-left: 5.4pt">&#160;</td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt"><font style="font-size: 8pt">Net loss</font></td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font-size: 8pt">$</font></td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font-size: 8pt">(5,043)</font></td> <td style="padding-right: 5.4pt; padding-left: 5.4pt">&#160;</td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font-size: 8pt">1,350 </font></td> <td style="padding-right: 5.4pt; padding-left: 5.4pt">&#160;</td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font-size: 8pt">$</font></td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font-size: 8pt">(3,693)</font></td></tr> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt"><font style="font-size: 8pt">Impairment of oil and gas properties</font></td> <td style="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&#160;</td> <td style="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font-size: 8pt">1,350 </font></td> <td style="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&#160;</td> <td style="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font-size: 8pt">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;(1,350)</font></td> <td style="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&#160;</td> <td style="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font-size: 8pt">$</font></td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font-size: 8pt">-</font></td></tr> </table> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0"><b>&#160;</b></p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0"><b>&#160;</b></p> <p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">The Company uses the successful efforts method of accounting for oil and natural gas producing activities, as further defined under ASC 932,<i>&#160;Extractive Activities - Oil and Natural Gas</i>.&#160;&#160;Under these provisions, costs to acquire mineral interests in oil and natural gas properties, to drill exploratory wells that find proved reserves, and to drill and equip development wells are capitalized.&#160;</p> <p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p> <p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">Exploratory drilling costs are capitalized when incurred pending the determination of whether a well has found proved reserves.&#160;&#160;A determination of whether a well has found proved reserves is made shortly after drilling is completed.&#160;&#160;The determination is based on a process that relies on interpretations of available geologic, geophysic and engineering data.&#160;&#160;If a well is determined to be successful, the capitalized drilling costs will be reclassified as part of the cost of the well.&#160;&#160;Capitalized costs of producing oil and natural gas interests are depleted on a unit-of-production basis at the field level.</p> <p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p> <p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">If an exploratory&#160;well is determined to be unsuccessful, the capitalized drilling costs are charged to expense in the period the determination is made.&#160;&#160;If a determination cannot be made as to whether the reserves that have been found can be classified as proved, the cost of drilling the exploratory well is not carried as an asset for more than one year following completion of drilling.&#160;&#160;If, after that year has passed, a determination that proved reserves exist cannot be made, the well is assumed to be impaired and its costs are charged to expense.&#160;&#160;Its cost can, however, continue to be capitalized if a sufficient quantity of reserves is discovered in the well to justify its completion as a producing well and the Company is making sufficient progress assessing the reserves and the economic and operating viability of the project.</p> <p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p> <p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">The carrying value of oil and gas properties is assessed for possible impairment on a field by field basis and on at least an annual basis, or as circumstances warrant, based on geological analysis or changes in proved reserve estimates. When impairment occurs, an adjustment is recorded as a reduction of the asset carrying value.&#160;For the six months ended June 30, 2015 and the year December 31, 2014, the Company&#146;s impairment charge was $0 and $4,428,378. </p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">Basic net income (loss) per common share is computed by dividing the net income (loss) attributable to stockholders by the weighted average number of common shares outstanding during the period.&#160;&#160;Diluted net income (loss) per common share is calculated in the same manner, but also considers the impact to common shares for the potential dilution from stock options, non-vested share appreciation rights, non-vested restricted shares and warrants. For the six month period ended June 30, 2015, there were 900,000 potentially dilutive non-vested - stock options and 2,542,379 warrants. For the six month period ended June 30, 2014, there were 349,650 potentially dilutive non-vested restricted shares and stock options. The potentially dilutive options and warrants, for June 30, 2015, are considered antidilutive since the Company is in a net loss position&#160;and thus result in the basic net income (loss) per common share equaling the diluted net income (loss) per common share.</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">In November 2015, the Company discovered an error in the impairment taken on the Oklahoma properties sold in July 2015. The Company determined that the impact of this impairment was sufficiently material to warrant restatement of the financial results contained in the Company&#146;s Quarterly Reports of Form 10-Q for June 30, 2015. (See Note 1 &#150; Restatement).</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0"><b>Balance Sheets</b></p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&#160;</p> <table cellspacing="0" cellpadding="0" style="font: 8pt Times New Roman, Times, Serif; width: 100%"> <tr style="vertical-align: bottom"> <td style="padding-bottom: 1.5pt">&#160;</td> <td style="padding-bottom: 1.5pt">&#160;</td> <td colspan="10" style="border-bottom: black 1.5pt solid; text-align: center"><font style="font-size: 8pt"><b>June 30, 2015</b></font></td> <td nowrap="nowrap" style="padding-bottom: 1.5pt">&#160;</td></tr> <tr style="vertical-align: bottom"> <td>&#160;</td> <td>&#160;</td> <td colspan="2" style="text-align: center"><font style="font-size: 8pt"><b>As Previously</b></font></td> <td nowrap="nowrap">&#160;</td> <td>&#160;</td> <td colspan="2">&#160;</td> <td nowrap="nowrap">&#160;</td> <td>&#160;</td> <td colspan="2">&#160;</td> <td nowrap="nowrap">&#160;</td></tr> <tr style="vertical-align: bottom"> <td style="padding-bottom: 1.5pt">&#160;</td> <td style="padding-bottom: 1.5pt">&#160;</td> <td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center"><font style="font-size: 8pt"><b>Reported</b></font></td> <td nowrap="nowrap" style="padding-bottom: 1.5pt">&#160;</td> <td style="padding-bottom: 1.5pt">&#160;</td> <td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center"><font style="font-size: 8pt"><b>Adjustment</b></font></td> <td nowrap="nowrap" style="padding-bottom: 1.5pt">&#160;</td> <td style="padding-bottom: 1.5pt">&#160;</td> <td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center"><font style="font-size: 8pt"><b>As Restated</b></font></td> <td nowrap="nowrap" style="padding-bottom: 1.5pt">&#160;</td></tr> <tr style="vertical-align: bottom"> <td><font style="font-size: 8pt"><b>ASSETS</b></font></td> <td>&#160;</td> <td colspan="2">&#160;</td> <td nowrap="nowrap">&#160;</td> <td>&#160;</td> <td colspan="2">&#160;</td> <td nowrap="nowrap">&#160;</td> <td>&#160;</td> <td colspan="2">&#160;</td> <td nowrap="nowrap">&#160;</td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td style="width: 67%"><font style="font-size: 8pt">Oil and natural gas properties, successful efforts method, net of accumulated depletion</font></td> <td style="width: 1%; text-align: right">&#160;</td> <td style="width: 1%"><font style="font-size: 8pt">$</font></td> <td style="width: 8%; text-align: right"><font style="font-size: 8pt">88,955</font></td> <td nowrap="nowrap" style="width: 1%">&#160;</td> <td style="width: 1%; text-align: right">&#160;</td> <td style="width: 1%">&#160;</td> <td style="width: 8%; text-align: right"><font style="font-size: 8pt">1,350</font></td> <td nowrap="nowrap" style="width: 1%">&#160;</td> <td style="width: 1%; text-align: right">&#160;</td> <td style="width: 1%"><font style="font-size: 8pt">$</font></td> <td style="width: 8%; text-align: right"><font style="font-size: 8pt">90,305</font></td> <td nowrap="nowrap" style="width: 1%">&#160;</td></tr> <tr style="vertical-align: bottom; background-color: white"> <td><font style="font-size: 8pt">Total oil and natural gas properties and other equipment, net</font></td> <td style="text-align: right">&#160;</td> <td>&#160;</td> <td style="text-align: right">&#160;</td> <td nowrap="nowrap">&#160;</td> <td style="text-align: right">&#160;</td> <td>&#160;</td> <td style="text-align: right">&#160;</td> <td nowrap="nowrap">&#160;</td> <td>&#160;</td> <td>&#160;</td> <td style="text-align: right">&#160;</td> <td nowrap="nowrap">&#160;</td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td><font style="font-size: 8pt">Total assets</font></td> <td style="text-align: right">&#160;</td> <td><font style="font-size: 8pt">$</font></td> <td style="text-align: right"><font style="font-size: 8pt">96,809</font></td> <td nowrap="nowrap">&#160;</td> <td style="text-align: right">&#160;</td> <td>&#160;</td> <td style="text-align: right"><font style="font-size: 8pt">1,350</font></td> <td nowrap="nowrap">&#160;</td> <td style="text-align: right">&#160;</td> <td><font style="font-size: 8pt">$</font></td> <td style="text-align: right"><font style="font-size: 8pt">98,159</font></td> <td nowrap="nowrap">&#160;</td></tr> <tr style="vertical-align: bottom; background-color: white"> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td style="text-align: right">&#160;</td> <td nowrap="nowrap">&#160;</td> <td style="text-align: right">&#160;</td> <td>&#160;</td> <td style="text-align: right">&#160;</td> <td nowrap="nowrap">&#160;</td> <td>&#160;</td> <td>&#160;</td> <td style="text-align: right">&#160;</td> <td nowrap="nowrap">&#160;</td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td><font style="font-size: 8pt"><b>LIABILITIES AND STOCKHOLDERS' EQUITY</b></font></td> <td>&#160;</td> <td>&#160;</td> <td style="text-align: right">&#160;</td> <td nowrap="nowrap">&#160;</td> <td>&#160;</td> <td>&#160;</td> <td style="text-align: right">&#160;</td> <td nowrap="nowrap">&#160;</td> <td>&#160;</td> <td>&#160;</td> <td style="text-align: right">&#160;</td> <td nowrap="nowrap">&#160;</td></tr> <tr style="vertical-align: bottom; background-color: white"> <td><font style="font-size: 8pt">Accumulated deficit</font></td> <td style="text-align: right">&#160;</td> <td><font style="font-size: 8pt">$</font></td> <td style="text-align: right"><font style="font-size: 8pt">(19,176</font></td> <td nowrap="nowrap"><font style="font-size: 8pt">)</font></td> <td style="text-align: right">&#160;</td> <td>&#160;</td> <td style="text-align: right"><font style="font-size: 8pt">1,350</font></td> <td nowrap="nowrap">&#160;</td> <td style="text-align: right">&#160;</td> <td><font style="font-size: 8pt">$</font></td> <td style="text-align: right"><font style="font-size: 8pt">(17,826</font></td> <td nowrap="nowrap"><font style="font-size: 8pt">)</font></td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td><font style="font-size: 8pt">Total stockholders' equity</font></td> <td style="text-align: right">&#160;</td> <td>&#160;</td> <td style="text-align: right"><font style="font-size: 8pt">37,469</font></td> <td nowrap="nowrap">&#160;</td> <td style="text-align: right">&#160;</td> <td>&#160;</td> <td style="text-align: right"><font style="font-size: 8pt">1,350</font></td> <td nowrap="nowrap">&#160;</td> <td style="text-align: right">&#160;</td> <td>&#160;</td> <td style="text-align: right"><font style="font-size: 8pt">38,819</font></td> <td nowrap="nowrap">&#160;</td></tr> <tr style="vertical-align: bottom; background-color: white"> <td><font style="font-size: 8pt">Total liabilities and stockholders' equity</font></td> <td style="text-align: right">&#160;</td> <td><font style="font-size: 8pt">$</font></td> <td style="text-align: right"><font style="font-size: 8pt">96,809</font></td> <td nowrap="nowrap">&#160;</td> <td style="text-align: right">&#160;</td> <td>&#160;</td> <td style="text-align: right"><font style="font-size: 8pt">1,350</font></td> <td nowrap="nowrap">&#160;</td> <td style="text-align: right">&#160;</td> <td><font style="font-size: 8pt">$</font></td> <td style="text-align: right"><font style="font-size: 8pt">98,159</font></td> <td nowrap="nowrap">&#160;</td></tr> </table> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&#160;</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><b>&#160;Statements of Operations</b></p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&#160;</p> <table cellspacing="0" cellpadding="0" style="font: 8pt Times New Roman, Times, Serif; width: 100%"> <tr style="vertical-align: bottom"> <td style="padding-bottom: 1.5pt">&#160;</td> <td style="padding-bottom: 1.5pt">&#160;</td> <td colspan="10" style="border-bottom: black 1.5pt solid; text-align: center"><font style="font-size: 8pt"><b>Three Months Ended June 30, 2015</b></font></td> <td nowrap="nowrap" style="padding-bottom: 1.5pt">&#160;</td> <td style="padding-bottom: 1.5pt">&#160;</td> <td colspan="10" style="border-bottom: black 1.5pt solid; text-align: center"><font style="font-size: 8pt"><b>Six Months Ended June 30, 2015</b></font></td> <td nowrap="nowrap" style="padding-bottom: 1.5pt">&#160;</td></tr> <tr style="vertical-align: bottom"> <td>&#160;</td> <td style="text-align: center">&#160;</td> <td colspan="2" style="text-align: center"><font style="font-size: 8pt"><b>As Previously</b></font></td> <td nowrap="nowrap">&#160;</td> <td>&#160;</td> <td colspan="2">&#160;</td> <td nowrap="nowrap">&#160;</td> <td>&#160;</td> <td colspan="2">&#160;</td> <td nowrap="nowrap">&#160;</td> <td>&#160;</td> <td colspan="2" style="text-align: center"><font style="font-size: 8pt"><b>As Previously</b></font></td> <td nowrap="nowrap">&#160;</td> <td>&#160;</td> <td colspan="2">&#160;</td> <td nowrap="nowrap">&#160;</td> <td>&#160;</td> <td colspan="2">&#160;</td> <td nowrap="nowrap">&#160;</td></tr> <tr style="vertical-align: bottom"> <td style="padding-bottom: 1.5pt">&#160;</td> <td style="padding-bottom: 1.5pt">&#160;</td> <td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center"><font style="font-size: 8pt"><b>Reported</b></font></td> <td nowrap="nowrap" style="padding-bottom: 1.5pt">&#160;</td> <td style="padding-bottom: 1.5pt">&#160;</td> <td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center"><font style="font-size: 8pt"><b>Adjustment</b></font></td> <td nowrap="nowrap" style="padding-bottom: 1.5pt">&#160;</td> <td style="padding-bottom: 1.5pt">&#160;</td> <td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center"><font style="font-size: 8pt"><b>As Restated</b></font></td> <td nowrap="nowrap" style="padding-bottom: 1.5pt">&#160;</td> <td style="padding-bottom: 1.5pt">&#160;</td> <td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center"><font style="font-size: 8pt"><b>Reported</b></font></td> <td nowrap="nowrap" style="padding-bottom: 1.5pt">&#160;</td> <td style="padding-bottom: 1.5pt">&#160;</td> <td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center"><font style="font-size: 8pt"><b>Adjustment</b></font></td> <td nowrap="nowrap" style="padding-bottom: 1.5pt">&#160;</td> <td style="padding-bottom: 1.5pt">&#160;</td> <td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center"><font style="font-size: 8pt"><b>As Restated</b></font></td> <td nowrap="nowrap" style="padding-bottom: 1.5pt">&#160;</td></tr> <tr style="vertical-align: bottom"> <td>&#160;</td> <td>&#160;</td> <td colspan="2">&#160;</td> <td nowrap="nowrap">&#160;</td> <td>&#160;</td> <td colspan="2">&#160;</td> <td nowrap="nowrap">&#160;</td> <td>&#160;</td> <td colspan="2">&#160;</td> <td nowrap="nowrap">&#160;</td> <td>&#160;</td> <td colspan="2">&#160;</td> <td nowrap="nowrap">&#160;</td> <td>&#160;</td> <td colspan="2">&#160;</td> <td nowrap="nowrap">&#160;</td> <td>&#160;</td> <td colspan="2">&#160;</td> <td nowrap="nowrap">&#160;</td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td style="width: 28%"><font style="font-size: 8pt">Impairment of oil and gas properties</font></td> <td style="width: 1%; text-align: right">&#160;</td> <td style="width: 1%"><font style="font-size: 8pt">$</font></td> <td style="width: 9%; text-align: right"><font style="font-size: 8pt">1,350</font></td> <td nowrap="nowrap" style="width: 1%">&#160;</td> <td style="width: 1%; text-align: right">&#160;</td> <td style="width: 1%">&#160;</td> <td style="width: 9%; text-align: right"><font style="font-size: 8pt">(1,350</font></td> <td nowrap="nowrap" style="width: 1%"><font style="font-size: 8pt">)</font></td> <td style="width: 1%; text-align: right">&#160;</td> <td style="width: 1%"><font style="font-size: 8pt">$</font></td> <td style="width: 9%; text-align: right"><font style="font-size: 8pt">-</font></td> <td nowrap="nowrap" style="width: 1%">&#160;</td> <td style="width: 1%; text-align: right">&#160;</td> <td style="width: 1%"><font style="font-size: 8pt">$</font></td> <td style="width: 9%; text-align: right"><font style="font-size: 8pt">1,350</font></td> <td nowrap="nowrap" style="width: 1%">&#160;</td> <td style="width: 1%; text-align: right">&#160;</td> <td style="width: 1%">&#160;</td> <td style="width: 9%; text-align: right"><font style="font-size: 8pt">(1,350</font></td> <td nowrap="nowrap" style="width: 1%"><font style="font-size: 8pt">)</font></td> <td style="width: 1%; text-align: right">&#160;</td> <td style="width: 1%"><font style="font-size: 8pt">$</font></td> <td style="width: 9%; text-align: right"><font style="font-size: 8pt">-</font></td> <td nowrap="nowrap" style="width: 1%">&#160;</td></tr> <tr style="vertical-align: bottom; background-color: white"> <td><font style="font-size: 8pt">Net income (loss)</font></td> <td style="text-align: right">&#160;</td> <td><font style="font-size: 8pt">$</font></td> <td style="text-align: right"><font style="font-size: 8pt">(2,354</font></td> <td nowrap="nowrap"><font style="font-size: 8pt">)</font></td> <td style="text-align: right">&#160;</td> <td>&#160;</td> <td style="text-align: right"><font style="font-size: 8pt">1,350</font></td> <td nowrap="nowrap">&#160;</td> <td style="text-align: right">&#160;</td> <td><font style="font-size: 8pt">$</font></td> <td style="text-align: right"><font style="font-size: 8pt">(1,004</font></td> <td nowrap="nowrap"><font style="font-size: 8pt">)</font></td> <td style="text-align: right">&#160;</td> <td><font style="font-size: 8pt">$</font></td> <td style="text-align: right"><font style="font-size: 8pt">(5,043</font></td> <td nowrap="nowrap"><font style="font-size: 8pt">)</font></td> <td style="text-align: right">&#160;</td> <td>&#160;</td> <td style="text-align: right"><font style="font-size: 8pt">1,350</font></td> <td nowrap="nowrap">&#160;</td> <td style="text-align: right">&#160;</td> <td><font style="font-size: 8pt">$</font></td> <td style="text-align: right"><font style="font-size: 8pt">(3,693</font></td> <td nowrap="nowrap"><font style="font-size: 8pt">)</font></td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td><font style="font-size: 8pt">Net income (loss) per basic and diluted common share</font></td> <td style="text-align: right">&#160;</td> <td><font style="font-size: 8pt">$</font></td> <td style="text-align: right"><font style="font-size: 8pt">(0.19</font></td> <td nowrap="nowrap"><font style="font-size: 8pt">)</font></td> <td>&#160;</td> <td>&#160;</td> <td style="text-align: right">&#160;</td> <td nowrap="nowrap">&#160;</td> <td style="text-align: right">&#160;</td> <td><font style="font-size: 8pt">$</font></td> <td style="text-align: right"><font style="font-size: 8pt">(0.08</font></td> <td nowrap="nowrap"><font style="font-size: 8pt">)</font></td> <td style="text-align: right">&#160;</td> <td><font style="font-size: 8pt">$</font></td> <td style="text-align: right"><font style="font-size: 8pt">(0.40</font></td> <td nowrap="nowrap"><font style="font-size: 8pt">)</font></td> <td>&#160;</td> <td>&#160;</td> <td style="text-align: right">&#160;</td> <td nowrap="nowrap">&#160;</td> <td style="text-align: right">&#160;</td> <td><font style="font-size: 8pt">$</font></td> <td style="text-align: right"><font style="font-size: 8pt">(0.29</font></td> <td nowrap="nowrap"><font style="font-size: 8pt">)</font></td></tr> </table> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&#160;</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0"><b>Statements of Cash Flows</b></p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&#160;</p> <table cellspacing="0" cellpadding="0" style="font: 8pt Times New Roman, Times, Serif; width: 100%"> <tr style="vertical-align: bottom"> <td style="padding-bottom: 1.5pt">&#160;</td> <td style="padding-bottom: 1.5pt">&#160;</td> <td colspan="10" style="border-bottom: black 1.5pt solid; text-align: center"><font style="font-size: 8pt"><b>Six Months Ended June 30, 2015</b></font></td> <td nowrap="nowrap" style="padding-bottom: 1.5pt">&#160;</td></tr> <tr style="vertical-align: bottom"> <td>&#160;</td> <td>&#160;</td> <td colspan="2" style="text-align: center"><font style="font-size: 8pt"><b>As Previously</b></font></td> <td nowrap="nowrap">&#160;</td> <td>&#160;</td> <td colspan="2">&#160;</td> <td nowrap="nowrap">&#160;</td> <td>&#160;</td> <td colspan="2">&#160;</td> <td nowrap="nowrap">&#160;</td></tr> <tr style="vertical-align: bottom"> <td style="padding-bottom: 1.5pt">&#160;</td> <td style="padding-bottom: 1.5pt">&#160;</td> <td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center"><font style="font-size: 8pt"><b>Reported</b></font></td> <td nowrap="nowrap" style="padding-bottom: 1.5pt">&#160;</td> <td style="padding-bottom: 1.5pt">&#160;</td> <td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center"><font style="font-size: 8pt"><b>Adjustment</b></font></td> <td nowrap="nowrap" style="padding-bottom: 1.5pt">&#160;</td> <td style="padding-bottom: 1.5pt">&#160;</td> <td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center"><font style="font-size: 8pt"><b>As Restated</b></font></td> <td nowrap="nowrap" style="padding-bottom: 1.5pt">&#160;</td></tr> <tr style="vertical-align: bottom"> <td>&#160;</td> <td>&#160;</td> <td colspan="2">&#160;</td> <td nowrap="nowrap">&#160;</td> <td>&#160;</td> <td colspan="2">&#160;</td> <td nowrap="nowrap">&#160;</td> <td>&#160;</td> <td colspan="2">&#160;</td> <td nowrap="nowrap">&#160;</td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td style="width: 67%"><font style="font-size: 8pt">Net loss</font></td> <td style="width: 1%; text-align: right">&#160;</td> <td style="width: 1%"><font style="font-size: 8pt">$</font></td> <td style="width: 8%; text-align: right"><font style="font-size: 8pt">(5,043</font></td> <td nowrap="nowrap" style="width: 1%"><font style="font-size: 8pt">)</font></td> <td style="width: 1%; text-align: right">&#160;</td> <td style="width: 1%">&#160;</td> <td style="width: 8%; text-align: right"><font style="font-size: 8pt">1,350</font></td> <td nowrap="nowrap" style="width: 1%">&#160;</td> <td style="width: 1%; text-align: right">&#160;</td> <td style="width: 1%"><font style="font-size: 8pt">$</font></td> <td style="width: 8%; text-align: right"><font style="font-size: 8pt">(3,693</font></td> <td nowrap="nowrap" style="width: 1%"><font style="font-size: 8pt">)</font></td></tr> <tr style="vertical-align: bottom; background-color: white"> <td><font style="font-size: 8pt">Impairment of oil and gas properties</font></td> <td style="text-align: right">&#160;</td> <td>&#160;</td> <td style="text-align: right"><font style="font-size: 8pt">1,350</font></td> <td nowrap="nowrap">&#160;</td> <td style="text-align: right">&#160;</td> <td>&#160;</td> <td style="text-align: right"><font style="font-size: 8pt">(1,350</font></td> <td nowrap="nowrap"><font style="font-size: 8pt">)</font></td> <td style="text-align: right">&#160;</td> <td><font style="font-size: 8pt">$</font></td> <td style="text-align: right"><font style="font-size: 8pt">-</font></td> <td nowrap="nowrap">&#160;</td></tr> </table> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&#160;</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&#160;</p> 1350000 1350000 -1350000 -1350000 0 0 EX-101.SCH 6 starb-20150630.xsd 00000001 - Document - Document and Entity Information link:presentationLink link:calculationLink link:definitionLink 00000002 - Statement - CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) link:presentationLink link:calculationLink link:definitionLink 00000003 - Statement - CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) link:presentationLink link:calculationLink link:definitionLink 00000004 - Statement - CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) link:presentationLink link:calculationLink link:definitionLink 00000005 - Statement - CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) link:presentationLink link:calculationLink link:definitionLink 00000006 - Disclosure - 1. RESTATEMENT link:presentationLink link:calculationLink link:definitionLink 00000007 - Disclosure - 2. NATURE OF OPERATIONS link:presentationLink link:calculationLink link:definitionLink 00000008 - Disclosure - 3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES link:presentationLink link:calculationLink link:definitionLink 00000009 - Disclosure - 4. FAIR VALUE MEASUREMENTS link:presentationLink link:calculationLink link:definitionLink 00000010 - Disclosure - 5. PROPERTY ACQUISITION AND SALE link:presentationLink link:calculationLink link:definitionLink 00000011 - Disclosure - 6. OIL AND NATURAL GAS PROPERTIES link:presentationLink link:calculationLink link:definitionLink 00000012 - Disclosure - 7. ASSET RETIREMENT OBLIGATIONS link:presentationLink link:calculationLink link:definitionLink 00000013 - Disclosure - 8. GOING PUBLIC DELAY FEE link:presentationLink link:calculationLink link:definitionLink 00000014 - Disclosure - 9. DERIVIATIVES link:presentationLink link:calculationLink link:definitionLink 00000015 - Disclosure - 10. NOTES PAYABLE link:presentationLink link:calculationLink link:definitionLink 00000016 - Disclosure - 11. STOCK BASED COMPENSATION AND CONDITIONAL PERFORMANCE AWARDS link:presentationLink link:calculationLink link:definitionLink 00000017 - Disclosure - 12. RELATED PARTY TRANSACTIONS link:presentationLink link:calculationLink link:definitionLink 00000018 - Disclosure - 13. LEGAL PROCEEDINGS link:presentationLink link:calculationLink link:definitionLink 00000019 - Disclosure - 14. SUBSEQUENT EVENT link:presentationLink link:calculationLink link:definitionLink 00000020 - Disclosure - 3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) link:presentationLink link:calculationLink link:definitionLink 00000021 - Disclosure - 1. RESTATEMENT (Tables) link:presentationLink link:calculationLink link:definitionLink 00000022 - Disclosure - 4. FAIR VALUE MEASUREMENTS (Tables) link:presentationLink link:calculationLink link:definitionLink 00000023 - Disclosure - 5. PROPERTY ACQUISITION AND SALE (Tables) link:presentationLink link:calculationLink link:definitionLink 00000024 - Disclosure - 6. OIL AND NATURAL GAS PROPERTIES (Tables) link:presentationLink link:calculationLink link:definitionLink 00000025 - Disclosure - 7. ASSET RETIREMENT OBLIGATIONS (Tables) link:presentationLink link:calculationLink link:definitionLink 00000026 - Disclosure - 9. DERIVIATIVES (Tables) link:presentationLink link:calculationLink link:definitionLink 00000027 - Disclosure - 11. STOCK BASED COMPENSATION AND CONDITIONAL PERFORMANCE AWARDS (Tables) link:presentationLink link:calculationLink link:definitionLink 00000028 - Disclosure - 1. RESTATEMENT (Details) link:presentationLink link:calculationLink link:definitionLink 00000029 - Disclosure - 3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Narrative) link:presentationLink link:calculationLink link:definitionLink 00000030 - Disclosure - 4. FAIR VALUE MEASUREMENTS (Details) link:presentationLink link:calculationLink link:definitionLink 00000031 - Disclosure - 5. PROPERTY ACQUISITION AND SALE (Details) link:presentationLink link:calculationLink link:definitionLink 00000032 - Disclosure - 6. OIL AND NATURAL GAS PROPERTIES (Details) link:presentationLink link:calculationLink link:definitionLink 00000033 - Disclosure - 7. ASSET RETIREMENT OBLIGATIONS (Details) link:presentationLink link:calculationLink link:definitionLink 00000034 - Disclosure - 8. GOING PUBLIC DELAY FEE (Details Narratives) link:presentationLink link:calculationLink link:definitionLink 00000035 - Disclosure - 9. DERIVIATIVES (Details) link:presentationLink link:calculationLink link:definitionLink 00000036 - Disclosure - 9. DERIVIATIVES - Fair value (Details 1) link:presentationLink link:calculationLink link:definitionLink 00000037 - Disclosure - 9. DERIVATIVES - Effect (Details 2) link:presentationLink link:calculationLink link:definitionLink 00000038 - Disclosure - 10. NOTES PAYABLE (Details Narrative) link:presentationLink link:calculationLink link:definitionLink 00000039 - Disclosure - 11. STOCK BASED COMPENSATION AND CONDITIONAL PERFORMANCE AWARDS (Details) link:presentationLink link:calculationLink link:definitionLink 00000040 - Disclosure - 11. STOCK BASED COMPENSATION AND CONDITIONAL PERFORMANCE AWARDS (Details 1) link:presentationLink link:calculationLink link:definitionLink 00000041 - Disclosure - 11. STOCK BASED COMPENSATION AND CONDITIONAL PERFORMANCE AWARDS (Details Narrative) link:presentationLink link:calculationLink link:definitionLink EX-101.CAL 7 starb-20150630_cal.xml EX-101.DEF 8 starb-20150630_def.xml EX-101.LAB 9 starb-20150630_lab.xml Level 1 Fair Value, Hierarchy [Axis] Level 2 Level 3 Common Stock Equity Components [Axis] Paid-In Capital in Excess of Par Accumulated Deficit Minimum [Member] Range [Axis] Maximum [Member] Starboard Resources, Inc. Historical Business Acquisition [Axis] Oil and Natural Gas Properties Acquired Historical Pro Forma Adjustments Pro Forma Combined Instrument 1 Derivative Instrument [Axis] Instrument 2 Instrument 3 Instrument 4 Instrument 5 Instrument 6 Instrument 7 Independent Bank Debt Instrument [Axis] Independent Bank 2 Oklahoma properties [Member] Related Party Transaction [Axis] As Previously Reported Adjustments for Error Corrections [Axis] Adjustment As Restated Document And Entity Information Entity Registrant Name Entity Central Index Key Document Type Document Period End Date Amendment Flag Amendment Description Current Fiscal Year End Date Is Entity a Well-known Seasoned Issuer? Is Entity a Voluntary Filer? Is Entity's Reporting Status Current? Entity Filer Category Entity Public Float Entity Common Stock, Shares Outstanding Document Fiscal Period Focus Document Fiscal Year Focus Statement of Financial Position [Abstract] ASSETS Current assets Cash Trade receivables Joint interest receivables Current derivative assets Prepaid expenses Total current assets Oil and natural gas properties and other equipment Oil and natural gas properties, successful efforts method, net of accumulated depletion Other property and equipment, net of depreciation Total oil and natural gas properties and other equipment, net Other assets Goodwill Derivative assets Other Total other assets Total assets LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities Accounts payable and accrued liabilities Joint interest revenues payable Current maturities of related party notes payable Current maturities of notes payable Current asset retirement obligations Total current liabilities Long-term liabilities Derivative liabilities Notes payable Related party note payable Deferred tax liabilities Asset retirement obligations Total long-term liabilities Commitments and contingencies Stockholders' equity Preferred stock, $.001 par value, authorized 10,000,000 shares; none issued and outstanding Common stock, $.001 par value, authorized 150,000,000 shares; 12,711,986 shares issued at June 30, 2015 and 12,362,336 shares issued at December 31, 2014 Paid-in capital Accumulated deficit Total stockholders' equity Total liabilities and stockholders' equity Preferred Stock, par value Preferred Stock, Authorized Preferred Stock, Shares issued Preferred Stock, Shares Outstanding Common Stock, par value Common Stock, Authorized Common Stock, Issued Income Statement [Abstract] Oil, natural gas, and related product sales Expenses Depreciation, depletion and amortization Lease operating General and administrative Professional fees Production taxes Accretion of discount on asset retirement obligation Exploration Impairment of oil and gas properties Total expenses Operating income (loss) Other income (expense) Interest expense Gain (loss) from derivative contracts Gain on sale of assets, net Total other income (expense) Income (loss) before income taxes Income tax benefit / (expense): Current income tax benefit / (expense) Deferred income tax benefit / (expense) Net income (loss) Net income (loss) per basic and diluted common share Weighted average basic common shares outstanding Weighted average diluted common shares outstanding Statement of Cash Flows [Abstract] Cash flows from operating activities Net loss Adjustments to reconcile net loss to net cash providedby operating activities: Depreciation and depletion Deferred income taxes Stock-based compensation Accretion of asset retirement obligation Cash received (paid) for settlement of derivative instruments Unrealized loss(gain) from derivative contracts (Gain)on asset sales Amortization of debt issuance costs Increase (decrease) in cash attributable to changes in operating assets and liabilities: Trade receivables Joint interest receivables Prepaid expenses and other assets Accounts payable and accrued liabilities Joint interest revenues payable Net cash providedby operating activities Cash flows from investing activities Acquisition and development of oil and natural gas properties Acquisition of White Oak Resources VI, LLC and Permian Atlantis LLC oil and natural gas properties Proceeds from sales of oil and natural gas properties Oil and natural gas abandonment costs Net cash (used) in investing activities Cash flows from financing activities Proceeds from notes payable Debt issuance costs Repayments of notes payable Deferred offering costs Net cash provided by financing activities Net increase (decrease) in cash Cash, beginning of period Cash, end of period Supplemental disclosure of cash flow information Cash paid during the period for interest Supplemental disclosure of non-cash investing transactions Payables related to oil and natural gas capitalized expenditures Capitalized asset retirement cost Settlement of accounts payable through sale of oil and natural gas properties Restatement 1. RESTATEMENT Organization, Consolidation and Presentation of Financial Statements [Abstract] 2. NATURE OF OPERATIONS Accounting Policies [Abstract] 3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Fair Value Disclosures [Abstract] 4. FAIR VALUE MEASUREMENTS Business Combinations [Abstract] 5. PROPERTY ACQUISITION AND SALE Extractive Industries [Abstract] 6. OIL AND NATURAL GAS PROPERTIES Asset Retirement Obligation Disclosure [Abstract] 7. ASSET RETIREMENT OBLIGATIONS Notes to Financial Statements 8. GOING PUBLIC DELAY FEE Derivative Instruments and Hedging Activities Disclosure [Abstract] 9. DERIVATIVES Debt Disclosure [Abstract] 10. NOTES PAYABLE Equity [Abstract] 11. STOCK BASED COMPENSATION AND CONDITIONAL PERFORMANCE AWARDS Related Party Transactions [Abstract] 12. RELATED PARTY TRANSACTIONS Commitments and Contingencies Disclosure [Abstract] 13. LEGAL PROCEEDINGS Subsequent Event 14. SUBSEQUENT EVENT Summary Of Significant Accounting Policies Policies Basis of Presentation Reclassifications Principles of Consolidation Fair Value Measurements Oil and Gas Natural Gas Properties Other Property and Equipment Revenue Recognition and Natural Gas Imbalances Income Taxes Net Income (Loss) Per Common Share Use of Estimates Recent Accounting Pronouncements Restatement Tables Restatement of financials Fair Value Measurements Tables Schedule of fair value measurements Property Acquisition And Sale Tables Schedule of property acquisition and sale Oil And Natural Gas Properties Tables Schedule of oil and gas properties Asset Retirement Obligations Tables Schedule of Asset Retirement Obligations Oil derivative contracts Fair Value of Derivative Financial Instruments Effect of Derivative Financial Instruments Stock Based Compensation And Conditional Performance Awards Tables Assumptions used in Black-Scholes Model Stock Option Activity Statement [Table] Statement [Line Items] Balance Sheet Total oil and natural gas properties and other equipment, net Total assets Total stockholders' equity Total liabilities and stockholders' equity Statements of Operations Statements of Cash Flows Impairment charge Potentially dilutive non-vested restricted shares Potentially dilutive options Properties sold Assets (at fair value): Derivative assets (oil collar and put options) Liabilities (at fair value): Derivative liabilities (oil collar and put options) Oil, natural gas, and related product sales Expenses Operating income Oil And Natural Gas Properties Details Oil and natural gas properties Proved-developed producing properties Proved-developed non-producing properties Proved-undeveloped properties Unproved properties Less: Accumulated depletion Total oil and natural gas properties, net of accumulated depletion Asset Retirement Obligations Details Asset retirement obligations, beginning of period Additions to asset retirement obligation Liabilities settled during the period Accretion of discount Revision of estimate Asset retirement obligations, end of period Penalty for going public delay Derivative Fair value Deriviatives - Fair Value Details 1 Derivative financial instruments - Current asset Derivative financial instruments - Long-term assets Derivative financial instruments - Current liabilities Derivative financial instruments - Long-term liabilities Net derivative financial instruments Derivatives - Effect Details 2 Realized gain/(loss) on settlement of derivative contracts Unrealized gain/(loss) from derivative contracts Realized/Unrealized gain/(loss) from derivative contracts Borrowings outstanding Borrowing base Interest rate Risk-free interest rate Expected volatility of common stock Dividend yield Expected life of options Summary of option activity Number of options, Outstanding Beginning Number of options, Granted Number of options, Exercised Number of options, Forfeited Number of options, Outstanding Ending Number of options, Exercisable Weighted Average Exercise Price per Share, Beginning Weighted Average Exercise Price per Share, Granted Weighted Average Exercise Price per Share, Exercised Weighted Average Exercise Price per Share, Forfeited Weighted Average Exercise Price per Share, Ending Weighted Average Exercise Price per Share, Exercisable Weighted Average Grant Date Fair Value, Beginning Weighted Average Grant Date Fair Value, Granted Weighted Average Grant Date Fair Value, Exercised Weighted Average Grant Date Fair Value, Forfeited Weighted Average Grant Date Fair Value, Ending Weighted Average Remaining Contractual Life (in Years), Granted Weighted Average Remaining Contractual Life (in Years), Outstanding Stock-based compensation expense related to restricted stock Stock-based compensation expense related to stock options Unrecognized stock-based compensation related to the non-vested stock options Custom Element. Custom Element. Custom Element. Custom Element. Custom Element. Custom Element. Custom Element. Custom Element. Custom Element. Custom Element. Custom Element. Custom Element. Custom Element. Custom Element. Custom Element. Custom Element. Custom Element. Custom Element. Custom Element. Custom Element. Custom Element. Custom Element. Custom Element. Custom Element. Custom Element. Custom Element. Custom Element. Custom Element. Custom Element. Custom Element. Custom Element. Custom Element. Custom Element. Custom Element. Custom Element. Custom Element. Custom Element. Custom Element. Custom Element. Custom Element. Custom Element. Custom Element. Custom Element. Custom Element. Custom Element. Custom Element. Custom Element. Custom Element. Custom Element. Custom Element. Custom Element. Custom Element. Custom Element. Custom Element. Other Assets Liabilities, Current Liabilities Operating Expenses Operating Income (Loss) Interest Expense IncomeLossFromDerivativeContracts Nonoperating Income (Expense) Income (Loss) from Continuing Operations before Equity Method Investments, Income Taxes, Extraordinary Items, Noncontrolling Interest Gain (Loss) on Sale of Derivatives AccretionOfDebtIssuanceCosts TradeReceivable1 JointInterestReceivable1 Increase (Decrease) in Prepaid Expense and Other Assets Increase (Decrease) in Accounts Payable and Accrued Liabilities JointInterestRevenuesPayable1 Net Cash Provided by (Used in) Operating Activities Payments to Acquire Oil and Gas Property AcquisitionOfWhiteOakResourcesViLlcAndPermianAtlantisLlcOilAndNaturalGasProperties ProceedsFromSalesOfOilAndNaturalGasProperties OilAndNaturalGasAbandonmentCosts Net Cash Provided by (Used in) Investing Activities, Continuing Operations Payments of Debt Issuance Costs Repayments of Notes Payable DeferredOfferingCosts1 Net Cash Provided by (Used in) Financing Activities, Continuing Operations Cash and Cash Equivalents, at Carrying Value Business Acquisition, Pro Forma Revenue BusinessAcquisitionsProFormaExpenses Asset Retirement Obligation Derivative Asset, Fair Value, Gross Liability Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Number Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Weighted Average Exercise Price ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingWeightedAverageGrantDateFairValue EX-101.PRE 10 starb-20150630_pre.xml XML 11 R39.htm IDEA: XBRL DOCUMENT v3.3.0.814
11. STOCK BASED COMPENSATION AND CONDITIONAL PERFORMANCE AWARDS (Details)
6 Months Ended
Jun. 30, 2015
Equity [Abstract]  
Risk-free interest rate 1.87%
Expected volatility of common stock 9.20%
Dividend yield 0.00%
Expected life of options 5 years 8 months 19 days
EXCEL 12 Financial_Report.xlsx IDEA: XBRL DOCUMENT begin 644 Financial_Report.xlsx M4$L#!!0````(``UE;4?SW$M9R0$``$H:```3````6T-O;G1E;G1?5'EP97-= M+GAM;,V9RT[#,!!%?Z7*%C6N[?(494/9`A+\@$FFC=4XMFRWE+_'3@%!51"O M2G>31^]X[DW&.9N>WS\Y"H.U:;LP*9H8W1ECH6K(J%!:1UU29M8;%=.MGS.G MJH6:$Q.CT1&K;!>IB\.8>Q07YS;"/7X4C?)4WT6?YKO[VWA? ML+\<>:[]]6=#[\7`^M,>(?&C'`(DAP3),0;)<0B2XP@DQS%(CA.0'*<@.?@( M)0@*43D*4CD*4SD*5#D*53D*5CD*5SD*6#D*604*604*604*604*604*604* M604*604*604*604*624*624*624*624*624*624*624*624*624*624*6<[%````*P(```L```!?.0Q(OW[CMB` MPD.MQ-*O>X^NO`ZIK`XTHO8<4M?'5$Q^#*G*_=ITJK$"2+8CCVG!D4*>-BP> M-9?20D0[8$NP+,L5R*V.V:SGVL7.U49V[M,41Y26M#;3"&>6X9MY6&3I//B) M]!=C;IK>TI;MR5/0!_ZS#0//>997'L=V+YRO+0O]C^AY%.!)T:'B1?4C9@,2 M[2F]@OIZ`(4QOCLEFI2"(S>C@KN_V/P"4$L#!!0````(``UE;4<;CBH[JP$` M`(@9```:````>&PO7W)E;',O=V]R:V)O;VLN>&UL+G)E;'/%V<>$5==>.V[0L$'8UH+F2FM+Y]4Q?%7N:C"^';)"0#9_X0^!&291/R MQ9,_E_'8-J$Z=F'T7I^;L!CNK[(JQF[A7-A6OB[#0]OY9EC=MWU=QN&R/[BN MW)[*@W>:YQ/7W\[)ULN?LT>;W2KK-SO)1B]E?_!QE;VU_2E4WL?@KB=YX MEB^=_\_V[7Y_W/K'=OM:^R;^4>&^-LA<.DC304H)LG2048**=%!!"1JG@\:4 MH$DZ:$()FJ:#II2@63IH1@F:IX/FE"#)@8PY)PEAS=%:`-?"\5H`V,(16P#9 MPC%;`-K"45L`V\)Q6P#RM%;@=Y*>M=&+]LBM'+T5Z*TBM'+T5Z*TAM'+T-Z&TAC"4=O`WH;1V\#>AM';P-Z&T=O`WH;1V\#>AM';P-Z&T?O`NA=#G[^Z=(^_739?T!4$L#!!0````(``UE;4`HDDVEJ%JQ-&E%L$`NN5Q@F.D M@F`Q$RO9K]\&U%6#E.2P7AR:][JG7[\!>K%H=B=ILN&I#+F`]W44BRX&'QLK M*3==517!BJ^94!`2X]UEDJZ9Q,OT14V6RS#@@R1X6_-8JEJS>:?R=\GC!5_< M;`Y)&WHOJT(VFR@,F`R36!^'09J(9"F!O@<\ZJGG@)R!F3T>O*6A_-";!>8X ME&.\@$7!UV]$XK1^#J%*D>.M-WLIWT MG47\4$9<.,L)2^5_DB+O:2]$I]4XZGZ?`EB\`!I+M".8<5$*AW+/K&(;5#X`J==A^/Y^#>F]A.;+-H6D0VP=B&,ZTE--18$A,%V;$ MFE(84^)AK6PWY25N%9BXV3;\.29]FIJ>F>T'B(VM$JN4`8UHY)&^%6#`B MWCZ/6W_4&#DF/8()E-$&C"@%IG#D-)2](." M`-> MRBTR(9F:ODN08UQNKX7CM>@(U4/E#$H'V.H%9"GH/M2>"Q>I/I-VJ/Y&V5G\B[?+)7SSSA7;73;%2Y7/T#0SQE0I;%KUQ MI%9R#A2Z7.*K%G:EKGO6'/8%-DO3^A9KESN@DM.Y<.8K.2<.^/0=M_`5!+`P04````"``-96U'X\"_YCT!``!I`P``$0```&1O8U!R;W!S+V-O M&ULS9--3\,P#(;_"NJ]2],"AZCK`1`G)B$Q!.(6$F\+:SZ4>.KZ[\FR MKN7KLANWNO;[^'6NO`HX)PL=>M"4RX>;9!=(R0(#:@>9C%"A.3 M*^LUQQCZ-7%<;/D:2%D4UT0#RWZG8&<'K<)2#'-NG MOW]Z2!F2#97[H,:JKNMF797JXL"4O"X>GM+9Y,H$Y$9`5`7%L'.536G(5+F"_B!`N[]P\0>#YH$*;+MH6^LUZ&)MVO*3J\G+BRM?7] M,?4C^O:JFD]02P,$%`````@`#65M1YE&UL[5I;<]HX%'[OK]!X9_9M"\8V@;:T$W-I=MNTF83M3A^% M$5B-;'EDD81_OTV23;J;/`0LZ?O.14?GZ#AY\^XN8NB&B)3R> M+]O6N[!3+UES@ M6QHO(];JM-O=5H1I;*$81V1@?5XL:$#05%%:;U\@M.4?,_@5RU2-9:,!$U=! M)KF(M/+Y;,7\VMX^9<_I.ATR@6XP&U@@?\YOI^1.6HCA5,+$P&IG/U9KQ]'2 M2(""R7V4!;I)]J/3%0@R#3LZG5C.=GSVQ.V?C,K:=#1M&N#C\7@XMLO2BW`< M!.!1NY["G?1LOZ1!";2C:=!DV/;:KI&FJHU33]/W?=_KFVB<"HU;3]-K=]W3 MCHG&K=!X#;[Q3X?#KHG&J]!TZVDF)_VN:Z3I%FA"1N/K>A(5M>5`TR``6'!V MULS2`Y9>*?IUE!K9';O=05SP6.XYB1'^QL4$UFG2&98T1G*=D`4.`#?$T4Q0 M?*]!MHK@PI+27)#6SRFU4!H(FLB!]4>"(<7K;YH]5Z%8 M2=J$^!!&&N*<<^9ST6S[!Z5&T?95O-RCEU@5`9<8WS2J-2S%UGB5P/&MG#P= M$Q+-E`L&08:7)"82J3E^34@3_BNEVOZKR2.FJW"$2M"/F(9-AIR MM1:!MG&IA&!:$L;1>$[2M!'\6:PUDSY@R.S-D77.UI$.$9)>-T(^8LZ+D!&_ M'H8X2IKMHG%8!/V>7L-)P>B"RV;]N'Z&U3-L+([W1]072N0/)J<_Z3(T!Z.: M60F]A%9JGZJ'-#ZH'C(*!?&Y'C[E>G@*-Y;&O%"N@GL!_]':-\*K^(+`.7\N M?<^E[[GT/:'2MSAD6R4)RU3393>*$IY" M&V[I4_5*E=?EK[DHN#Q;Y.FOH70^+,_Y/%_GM,T+,T.WF)&Y"M-2 MD&_#^>G%>!KB.=D$N7V85VWGV-'1^^?!4;"C[SR6'<>(\J(A[J&&F,_#0X=Y M>U^89Y7&4#04;6RL)"Q&MV"XU_$L%.!D8"V@!X.O40+R4E5@,5O&`RN0HGQ, MC$7H<.>77%_CT9+CVZ9EM6ZO*7<9;2)2.<)IF!-GJ\K>9;'!51W/55ORL+YJ M/;053L_^6:W(GPP13A8+$DACE!>F2J+S&5.^YRM)Q%4XOT4SMA*7&+SCYL=Q M3E.X$G:V#P(RN;LYJ7IE,6>F\M\M#`DL6XA9$N)-7>W5YYNTB42%(JP#`4A%W+C M[^^3:G>,U_HL@6V$5#)DU1?*0XG!/3-R0]A4)?.NVB8+A=OB5,V[&KXF8$O# M>FZ=+2?_VU[4/;07/4;SHYG@'K.'YA,L M0Z1^P7V*BH`1JV*^NJ]/^26<.[1[\8$@F_S6VZ3VW>`,?-2K6J5D*Q$_2P=\ M'Y(&8XQ;]#1?CQ1BK::QK<;:,0QY@%CS#*%F.-^'19H:,]6+K#F-"F]!U4#E M/]O4#6CV#30,9FV-J/D3@H\W/[O#;#"Q([A[8N_`5!+`P04````"``- M96U':9#T(W8"``!T#```#0```'AL+W-T>6QE`P1#N.0UVS*5`5247,5P7$+`;?_5F0X@D_GGW_50MU\`FX\^W)V MYC]=W&SCYW;A`@+'<9=%,)B,H?=ZTH'O[R8VBUODDS>2_XM[B_IR#_4]7F"Z M(R']M1>3\N^LA=$`<5L]@@:CV M#XQ[*JB00.EBTGHLPA'#SN,649)(8L`<,4)7#AX:P-9?X\<(%]+&=A&VXPS\ M+I(LD@CZS>_UX9*.W0[F>(32S>-I(`Y+I!26?*HGH+%GJU(?C@N.G4CKM\>[ MD&@5#,>]#7;0<1,A,RS;R`%<0W%(<:[T!DF*N1F5*(UTH91@VL@(*@1'U%"N M=S2&IDTQI8_F:?^9;W`O<^!\S!W[$!@5:U,GHC&[,K!)]?ILCKM/.SJ(%RSS M-H#>CVC#W;0QR%:LX*YD.19^YM"2#6`)00++!5) M^\AOBJA9@N74_DF^7=+H MIJ:-(NSI=:=>G*FWTO\J\IIWV M>O9&QVY1D-2$*L+7$I!YQWHPLNE&,^VZM>;,EEVCMJL*)?H38".*)LMPCFJJ M?I"%4'8Q@IU];^0'D]9KUE)$L+._XXS4S+TT=M\9\1]02P,$%`````@`#65M M1T%19D4N!```]0T```\```!X;"]W;W)K8F]O:RYX;6R5EUV3HC@40/]*BJ?= MAU4):'=;XU1%C2ZU"(Z@6_V8UCBF!L&"V#T[OWYOL.VYM!FJYPD"Y.3CGAN2 M3]7PI2B_/17%-_+]F.75L!PY!ZU/PVZWVA[D452=XB1S>+CS+77=KK#;JES(1615X=U*ER7FG51VC5J91B5QVDU,?L`CL*E3N? M/U7#O^:03%2:[Y26NY'C0[%XD8T'Y?DT/JO,%/J] MOM,UL.M0ER79%CMY@:4'5?W[^L(A.[D7YTRGT-EKNR/'I3ZE@PO#?+91\J7" M0/.`B*U6SS(53R.GYQ!QUL5,95J64Z'EO"S.)Y5_!99#]JJL=&*&6W]Y5+DZ MJA^FWU"J#L7+WT6I?A2Y%EFR+8LLJVN9%W4E:*%Z>P)]U&K;^%"+IY6)Q,@9 M]`#XK"KUI#*E_QLY]7TFS4BZ[X923__/.Y+7DW,-,1'YCO!<`X4$^25X,#6F M#_!QL*L;+H<*;LI@YUZF"H,F<33E4<*G!.Z2.`RF+(7"F(4LFG""0!2!Z.^" M/`3R$,C[,"A)X;+@$0+Y".3_+JB/0'T$ZM^"W`Y9\6O[*:HW0/4&M_5HAT0L M7:\XB6+&G1('(1US7J"6$CF++GB`XQJZ&OQ]ZY#6)+P%"*4!IUV/O0@7JK8!-` M^QO>:!_KZEI\=7O@2YQRF`CVR,9AHUVLJ&MS%"1-TGCR#V3<1?G%$N1GKR'" M*&RM:]'6I<;WL$Z6)3/A3E<,4).;&<7ZNA9_71`XY',(+X1VPOD49K2Y&8;\]B]^M)GD4H[#?GL7O5I.\QFZBL9VP^/W+9?T2 M18S"?GL6OV^DM&C@8;.]#YC]%YD)59)GD9TE$#$*"^Y9!+^BWDA\OY=;35X[ MAE%8<,\F^/N?S]O@2"3*$J.PYYYMT6Y+.P][[F'//8OGK2@?K]\^]MRWK=^M M*.RYCSWWW==-^<]].!Q%5"YWYI12U< M.>!X<5C[_#U!+`P04````"``-96U'-%@NY70"```F M"0``&````'AL+W=O^TD3D`+F-I.V+Y]?8(EK1>X";;S__/-R`QVWE/VQDM" MA/?>U"W?^J40W7,0\%-)&LR?:$=:^<^%L@8+.677@'>,X+,V-76``$B"!E>M M7^1Z[845.;V)NFK)"_/XK6DP^[,G->VW/O2'A=?J6@JU$!1Y,/K.54-:7M'6 M8^2R]7?P^0!3)=&*GQ7I^63LJ>2/E+ZIR??SU@!;+5YI_XW8&F(5\$1K MKG^]TXT+V@P6WVOPNWE6K7[VYI\(6IO;@*P!C88,S!I":PA'`XQTI28S7=<7 M+'"1,]I[O,-JM^&SE#,51$;VN(XF2^)Z<:=6[P7(@[L*8Q5HHM@;!1P5@8SM M!"#?94?:CCX''(PB7`:$`R"<5A!J>[1LCP9[-+5'VAX_YC=5[(TB60;$3D"L M[>DC(-:*U@",`L9QM$G!,B9Q8A(=))NIPR@VRX#4"4A-EF"&8"4KWI7,B1D#@9.AE&2&9@0R:=`4%NBFV,>>V?-"LV'2( MW!3;OW/;;C6K**&;8IH8P3F*U:`5%'>K0]/)*)RC6,V*[PET]SLT[8SBSSO^ M8#40I1!NLA6?%NAN>FAZ&OWSIB4/%5G-FC?-W?G0]#7*9KYA@P;\US?!Y%AJ M"+OJXYI[)WIKA3F5QM7Q2K!#^EC[D!=YAZ_D!V;7JN7>D0IY..J3[$*I(#(! M\"33*>6E99S4Y"+4,)5C9HYQ,Q&T&VXEX]6H^`M02P,$%`````@`#65M1WE' MRSEU!```E!8``!@```!X;"]W;W)KMFIK#[IG$2NP:,%X@\>R_7Z`;+S#MCBXQD*>E M5U+SJM'V6C<_VJ/W7?2S*L_MX^;8=9>'.&Z?C[XJVD_UQ9_[_[S4355T_6WS M&K>7QA>',:@J8R6$C:OB=-[LMN.S;\UN6[]UY>GLOS51^U951?/OWI?U]7$C M-].#[Z?78S<\B'?;^!9W.%7^W)[J<]3XE\?-9_F0&S$@(_'7R5_;V74TB'^J MZQ_#S1^'QXT8-/C2/W=#$T7_\^YS7Y9#2WW/_V"C__IKU%Z*8;7E0X\W M0R-]RU$[MM8/J1T??AZ>ON]4MHW?AW8043-DC\A](@="BQL2]_V3(M0D0L]% M*(B7'\?K*=[,XS7$KR2F(W*&02"2KD=)',E@$@A ML_M0CI"S`7.:D$H24&(8)8`HP:C-@4F$^UB')758G%-&!R!)9AD=P$B;91\+ M24DA*0AA.MDCDCI&"##*!:2((W4X[(31X7!"%#-K.4#I'+JK)"-?NPR4!"RM M%.10QL=]"TPF[Y')A!;<:"9,IM8&Z)&T'C`B(S@]P#@NZ9&1(F"1I:*E@*<9 MR4E1T]0X+N,F3+HTP`VD)M=:@K<9%=`";6T2/,EHQF61R2RS`CD!W=="FYL$ M6S(K=YLS^XEALPX8FP8HH>U-@C$9R\T*,,YQ!H=0Y@)V04D[G`1O,IRU("/= M6O%2#+J<"/%]2?ND'G7"[(6+]GNEFF]5]0;3=2?`[$["#*-KO ME,#=D!G2Q"0)LPSY1#D=X-Z*=CL%+I5P%H-,FC"U48Z04R$S0]N=`H]:=[/4 MHG`/3ZV[_][FB)F0B:'+005>EW!5&#)*"B6YJ4%,)P%YIVCC5.!W"5>*(6/6 MCK9,&H14P$NI:.-46,]QY9B:S#4Q;-8`EIF@E;+D*ZFP]`O8\A7M>0J6,$QFM,JZ4F2B9!E00 MFK9.#7YGV:]7M$Z39DQZY8@E(DD"K%S?^9@&R[.:21UDUJFS>*-^9>XK,:0[ M:/`[&U"%:]KN--9WC,Z]INO$Y5A^8>XKH>M$#4YGN3H1&."-UP(:M M:?/48'J6^ZS5T\>S8\]Q$#,R#3FX,+1_&C"]E/-/9(A*>I$^B)&5=#P[/[P4 MK_[/HGD]G=OHJ>ZZNAK/#5_JNO-].^)3/\JC+PZWF]*_=,-EVE\W<&@*-UU] MF&PO=V]R M:W-H965T&ULC971CJ,@%(9?Q?@`1;1JVUB3&3>3W8M-)G.Q M>TTKK690'*!U]NT7.-IU&K';"P7\_L-')9CU7+S+BE+E?3:LE7N_4JK;(22/ M%6V(7/&.MOK)B8N&*-T59R0[04EI0PU#81`DJ"%UZ^>9'7L5><8OBM4M?16> MO#0-$7^>*>/]WL?^./!6GRME!E">H5NNK!O:RIJWGJ"GO?^$=\76$!;X5=-> M3MJ><3]P_FXZ/\J]'Q@%RNA1F0I$WZZTH(R90GKBCZ'FORE-<-H>J[_8U6K[ M`Y&TX.QW7:I*RP:^5](3N3#UQOOO=%A";`H>.9/VZATO4O%FC/A>0S[A7K?V MWL.3)!UB\X%P"(2W`%XO!J(A$-T%$)C9=7TCBN29X+TG.V)>-MYI7)@BNK(G M;36])&D'G\SH-4]QAJZFSH"$$^09D-!-%$!$P0U!>OY9B7"4B*82(4B$C_/1 MF%]/\Q'DHZ^*&XNTL`A`@E408#=5S%%.E_6LRQI,$(D"65>\+ID,PZ)."0+#@D#QWN":=#.NN0@D.ZL$O2_]HE;A9=9C&"4A%&4W!FA MR4'5D3/]2<2Y;J5WX$J?>?:`.G&NJ"X4K'392G^*;AU&3\HT4]T6<#I#1_%N M_-;7IEE[1THNTOI?5K_HD1&/]*?)+_;HX-8)6RH$-ZXM^SN-%T8Q"YV#5=BJS]^!"QR/,N M4]OS;TSZV6<7^/A=9?_6RVV'_Y[5(B[SG^=]+_WG7?XG=#!,'\`P@`T!0S_Z`(X!_#/` M)0-<#'!->_`PP)OT8$OM_F!].)OO()9$2"#)TR3I MER2SP^1JF/QQKKB,Y\_C717O/L:[,MX=#S'HD8N<"8DPCP7S4"PA+XR\>2A! MB%'=I1**`L=@3CSMG'A2D_<\WM?.B2_C_?$@O<$VD517(H1"?;"`N/4!TCXSJ$(LFX MC!(D&0^"YWK`T0KJF]N:(D:R108(\,E`%>E726B*@ M5$G&I_8'9,`CEGZB($8\\51!H8DHIAP"N5R2],2+J:HN,2RZ6&"G/!VJ34/WY0&R.Z4`]+(IY97K3!O1(HI\M,DL( M@%Q8Z.[3MZVQ,LSEB=)]2]D8\5?T)DRZ\D^,#HP(+3D?&K7HR,#8GQ:T*,C@\KE\ZFKCPX-"C-Y MZ6>@W7L8>JACRA#[W,F]?4(;1&:;A>/3&S`)`9,^I69EZ0W4<;U;V?C M!\[Q99X1I[\8J25,?7_\P#&7/[6M\?/FTW/KO#"]AS(T*X-=;>&D_8MK&+0M">P2N6- M[6?ZS?J:'<4_674\7VKKO6R:LN@O%@]EV8AVT,Y+*^$DLOWP(Q>'IOL:=(]# MWMO*'TUY5=?0PUWXYG]02P,$%`````@`#65M1^LG=^Z&!```\A8``!@```!X M;"]W;W)KW/[J1U'_RJ MRKI[79WZ_O(2AMWNI*NB^]9<=#W\Y]"T5=$/M^TQ["ZM+O93HZH,>13%856< MZ]5V,SW[WFXWS;4OS[7^W@;=M:J*]K],E\WM=<56]L&/\_'4CP_"[2:\M]N? M*UUWYZ8.6GUX7;VQEUQ,R$3\?=:W[N$Z&,6_-\W/\>;/_>LJ&C7H4N_Z,40Q M_'SH7)?E&&GH^5\,^MGGV/#QVD;_?1KN(/^]Z'3>E/^<]_UI4!NM@KT^%->R M_]'<_M`X!CD&W#5E-_T-=M>N;RK;9!54Q2_S>ZZGWYOYCXJPF;L!QP;\WN#> MC[L!8`/X;""FD1IET[A^*_IBNVF;6]!=BO%MLYP/8`CX,`'(2' M1&$#B,<``@,L1"834YMA&&8-<0I?4SE2'DJD4!*5(0HIAUCQF0&A!2HGG4I13BD(I,2'%,,ER$88[,6B8> M6IA;B[6AE)@6"_$HI=0PS$"?%&+<+8?;GHCE@M":6BZ629C/>P*W&'0WSB@Q M",74FD%(*0\M=Y^5LVD>SC&X8!(]PP9)8@AYPBMA?`1XS9+9DP. M*+.T3$3F0(RK#L`G"]Q^R=`P.3DWB5W?E!R$8@_#9&['9,;J))D"RFJA4Q(Q MB)2';S*W<3+C>)+,@A33+:'4&"A./98-=ULG1^ODU+I!2$;$#.8V4N0CACES MDEM;E!XAW'['K=_%A/TBM!Y&30P[MY@2D8\@M^=QZWF+%SG;FQ!:[DVS<@R9 M-4NBQ,/VN+L\Y-;V%#4_!B(4YX@(GXEQNR?'^I"GU,1(CXE!]_38)+G;.SE6 MFA!1DV)]D0.5DQ;C4JC80U'BS@3T3_#Y5'&['L="$8A=/4-(/DEM0W&0L8?K M<;?K<:SSR.T2H3635`UM*1YYS#"XC0_0KL@-$Z%A8Q94-6(QZ5.H@;MN!/0^ MH#XQ$%I3"]`RTF=NW"8*:*)`?6,@I%*J:D2(\T1Y.`6X+1300JF\RRPDJ=H& MH2$Y4X\J%MP6"FBA0"R)#"&0";7#("63U*.Z`;>/`OHH$'5+AA`D2[>=RT&* MI3XOZ^ZE\P,,]%+AX13@+AX!S8^JF3.$!&5O.4)*>M@H*/=XT$9]2G-P.Q^@ M\PGBM"6S4$I]V.=(2>YA-,)M?`*-;UGZS/9=X?&QC(P2/EKC_&?>/C4>3B><9>\-WW?5-.IY*%I>CT(B[X-4W;2Q?Y^4^I#/UXFPW5KCF3- M3=]<[`GS_9A[^S]02P,$%`````@`#65M1Q.GJAN?`0``L0,``!@```!X;"]W M;W)KP''[]P5\J55%RHN9&9]SYL!`/J#YL"V`(Y]*:KNGK7/=CC%; MMJ"XO<$.M/]3HU'<^=0TS'8&>!5)2K(T2>Z8XD+3(H^U%U/DV#LI-+P88GNE MN/DZ@L1A3S=T+KR*IG6AP(J<+;Q**-!6H"8&ZCT];';'+"`BX$W`8%ONE<AKIZ77Z=J9OUPZWD\/[ZP+9+)"M!;++6UQCCC/F MX5<3MCI3!::)5\>2$GOMQB-=JLOM/*1Q)C_P(N]X`_^X:82VY(3.3S:.H49T MX-LG-[>4M/[]+(F$VH7PWL=FO%)CXK";'\CR2HMO4$L#!!0````(``UE;4>J M[U@(H`$``+$#```8````>&PO=V]R:W-H965T&ULA5/;;N,@ M$/T5Q`<4QW&Z;>182KJJVH>5JCZTS\0>VZC`>`''W;]?P)=:5:2^P,QPSID9 M!O(!S8=M`1SY5%+;`VV=Z_:,V;(%Q>T-=J#]28U&<>==TS#;&>!5)"G)TB2Y M98H+38L\QEY,D6/OI-#P8HCME>+FWPDD#@>ZH7/@532M"P%6Y&SA54*!M@(U M,5`?Z'&S/V4!$0%O`@:[LDFH_8SX$9SGZD"34`)(*%U0X'Z[P`-(&81\XK^3 MYE?*0%S;L_IC[-97?^86'E"^B\JUOMB$D@IJWDOWBL,33"WL@F")TL:5E+UU MJ&8*)8I_CKO0<1_&D[MDHETGI!,A_49@8Z)8YF_N>)$;'(CM>)C=9N_A)HAX M96*CFJ_0QN`Q1"_%)KO/V24(39ATA3E-F`7!O/K5%"F]1D\C/?V9OIWIVW6% MVS'[+OE9()L%LK5`=KW%->8T87;?FV2K.U5@FOAT+"FQUVZ\TB6ZO,YC&F?R M!2_RCC?PAYM&:$O.Z/QDXQAJ1`<^?7*SHZ3U_V=Q)-0NF+^\;<8G-3H.N_F# M++^T^`]02P,$%`````@`#65M1UD1S_.A`0``L0,``!@```!X;"]W;W)K20//EKA!:V'_74#A M>*([NA1>9-OY6&!EP59>+348)]$0"\V)GG?'2QX1"?!;PN@V,8G>KXBO,?E9 MGV@6+8""RD<%$98;/(%242@T_CMKOK>,Q&V\J']/NPWNK\+!$ZH_LO9=,)M1 M4D,C!N5?:+SS^G[A;[?.MS/#O>?"^2+0+X5R.]O<8NY+)C\0Q.V M.5,-MDU7QY$*!^.G(UVKZ^T\\S23=WA9]**%7\*VTCAR11\FF\;0('H([;.' M`R5=>#]KHJ#Q,?P28CM=J2GQV"\/9'VEY7]02P,$%`````@`#65M1\%GHT&B M`0``L0,``!@```!X;"]W;W)K:>M<=V#,EBTH;A^P`^W_U&@4=SXU#;.=`5Y%DI(L39(]4UQH M6N2Q]FJ*''LGA8970VRO%#=_SR!Q.-(-G0MOHFE=*+`B9PNO$@JT%:B)@?I( M3YO#.0N("/@M8+"KF`3O5\3WD+Q41YH$"R"A=$&!^^4&%Y`R"/G&'Y/F5\M` M7,>S^E/;$))!37OI7O#X1FF+>R"8(G2QB\I>^M0S11* M%/\<5Z'C.HQ_MME$NT]()T*Z$'XDT?C8*-K\R1TO8\X19$,RKWVV1TGOT--+3[^G;F;Y=.]Q. M#O??"V2S0+86R.YO<8TYSYC'_YJPU9DJ,$V\.I:4V&LW'NE276[G*8TS^8(7 M><<;^,5-([0E5W1^LG$,-:(#WSYYV%'2^O>S)!)J%\)''YOQ2HV)PVY^(,LK M+?X!4$L#!!0````(``UE;4=X"K>KHP$``+$#```9````>&PO=V]R:W-H965T MVRC M`N,"CKM_7\"76E6DOIB9\3EG#@SD`YHWVP(X\J&DM@?:.M?M&;-E"XK;&^Q` M^S\U&L6=3TW#;&>`5Y&D)$N3Y)8I+C0M\EA[-D6.O9-"P[,AME>*F_\GD#@< MZ(;.A1?1M"X46)&SA5<)!=H*U,1`?:#'S?ZT#8@(>!4PV%5,@OYP8'8CH?9;?8>;H*(5R8VJGF'-A:/H7HI-KN[G%V"T(1)5YC3 MA%D0S*M?;9'2:_0TTM.?Z=E,S]8.L\GA[Y\%MK/`=BVPO;[%->8T86Z3;TW8 MZDP5F"9>'4M*[+4;CW2I+K?SF,:9?,&+O.,-_.6F$=J2,SH_V3B&&M&!;Y_< M["AI_?M9$@FU"^$O'YOQ2HV)PVY^(,LK+3X!4$L#!!0````(``UE;4&PO=V]R:W-H965T5=2VR/MG1L.C-FZ!\7M'0Z@_9\6C>+.IZ9C=C#`FTA2DF5)\L`4 M%YI69:P]FZK$T4FAX=D0.RK%S9\S2)R.-*5KX45TO0L%5I5LXS5"@;8"-3'0 M'NDI/9R+@(B`7P(FNXM)\'Y!?`W)C^9(DV`!)-0N*'"_7.$1I`Q"OO';HOG1 M,A#W\:K^+>[6N[]P"X\H?XO&]=YL0DD#+1^E>\'I.RQ;N`^"-4H;OZ0>K4.U M4BA1_'U>A8[K-/_)BX5VFY`MA&PC?$VB\;E1M/G$':]*@Q.Q`P^S2P\>;H*( M5R8VJGF'-A9/H7JMTH>T9-<@M&"R'>:\8#8$\^HW6V3T%CV+].S?]'REYWN' M^>+P/P2*5:#8"Q2WM[C'G%=,_JD)VYVI`M/%JV-)C:-V\Y%NU>UVGK(XDP]X M50Z\@Y_<=$);O]^MD1"ZT+XQ<=FOE)SXG!8'\CV M2JN_4$L#!!0````(``UE;4&PO=V]R:W-H965T MVRC M`N,%'+=_7\"76E6DOIB9\3EG#@SD`YHWVP(X\JZDMD?:.M<=&+-E"XK;.^Q` M^S\U&L6=3TW#;&>`5Y&D)$N39,\4%YH6>:R]F"+'WDFAX<40VRO%S<<9)`Y' MNJ%SX54TK0L%5N1LX55"@;8"-3%0'^EI1P][-`-@MD:X'L]A;7F/.,V7]KPE9G MJL`T\>I84F*OW7BD2W6YG:O?SY)(J%T([WULQBLU)@Z[^8$LK[3X!%!+`P04````"``-96U'?2`.')\! M``"Q`P``&0```'AL+W=O#+&=4MQ\'T!BOZ,K.A5>1=VX4&!YQF9>*11H*U`3`]6.[E?; MPR8@(N!-0&\7,0G>CX@?(7DJ=S0)%D!"X8("]\L)[D#*(.0;?XZ:ORT#<1E/ MZ@]QM][]D5NX0_DN2M=XLPDE)52\D^X5^T<8MW`9!`N4-GY)T5F':J)0HOC7 ML`H=UW[XLTY&VGE".A+2F7`3"6QH%&W><\?SS&!/;,O#[%9;#S=!Q"L3&]6\ M0QN+^U`]Y:NKZXR=@M"(21>8PXB9$.ER/#F_^ M%]A,`INEP.;\%I>8PX2Y_=.$+ MPS,WM="6'-'YR<8Q5(@.?/ODXI*2QK^?.9%0N1!>^]@,5VI('+;3`YE?:?X# M4$L#!!0````(``UE;4<%S@INI`$``+$#```9````>&PO=V]R:W-H965T(D5Y:)]9>VRC`.," M7J=_7\"7N-5*[8N9&9]SYL!`/J#]<"V`)Y]:&7>@K??=GC%7MJ"%N\$.3/A3 MH]7"A]0VS'461)5(6C&>97=,"VEHD:?:FRUR[+V2!MXL<;W6POXZ@<+A0#=T M+KS+IO6QP(J<+;Q*:C!.HB$6Z@,];O:G740DP'<)@UO%)'H_(W[$Y*4ZT"Q: M``6ECPHB+!=X!*6B4&C\<]+\:AF)ZWA6?TJ[#>[/PL$CJA^R\FTPFU%202UZ MY=]Q>(9I"[=1L$3ETI>4O?.H9PHE6GR.JS1I'<8_=P\3[3J!3P2^$!ZR9'QL ME&Q^$UX4N<6!N$[$V6WV`6ZC2%`F+JD%ARX5C[%Z*3;W6HW.$YW_F[Z=Z=NUP^WD\#_Z[V:!W5I@-PGP/[>XQIQFS/:O)FQU MIAILDZZ.(R7VQH]'NE27VWGD:29?\"+O1`.OPC;2.')&'R:;QE`C>@CMLYM; M2MKP?I9$0>UC>!]B.UZI,?'8S0]D>:7%;U!+`P04````"``-96U'H7T8_*$! M``"Q`P``&0```'AL+W=O1I"1+D^2>*2XT M+?)8>S5%CKV30L.K(;97BIM_9Y`X'.F&SH4WT;0N%%B1LX57"07:"M3$0'VD MI\WAG`5$!/P1,-A53(+W"^)[2%ZJ(TV"!9!0NJ#`_7*%1Y`R"/G&'Y/F=\M` M7,>S^E/4?X5E6N]V822"FK>2_>&PS-,6]@%P1*EC5]2]M:AFBF4 M*/XYKD+'=1C_I/N)=IN03H1T(3PDT?C8*-K\Q1TO<(L".;5;[9(Z2UZ&NGIS_3M3-^N'6XG MA[N?!;)9(%L+9+>WN,:<9\S]?TW8ZDP5F"9>'4M*[+4;CW2I+K?SE,:9?,.+ MO.,-_.:F$=J2"SH_V3B&&M&!;Y_<[2AI_?M9$@FU"^'>QV:\4F/BL)L?R/)* MBR]02P,$%`````@`#65M1WN]Y+*B`0``L0,``!D```!X;"]W;W)K&ULA5/;;N,@$/T5Q`<4QW&;;N182KJJVH>5JCYTGXD]ME&! M<0''W;\OX$NM5:2^F)GQ.6<.#.0#FG?;`CCRJ:2V!]HZU^T9LV4+BML;[$#[ M/S4:Q9U/3<-L9X!7D:0D2Y/DCBDN-"WR6'LQ18Z]DT+#BR&V5XJ;?R>0.!SH MALZ%5]&T+A18D;.%5PD%V@K4Q$!]H,?-_I0%1`2\"1CL*B;!^QGQ/23/U8$F MP0)(*%U0X'ZYP`-(&81\XX])\[ME(*[C6?TQ[M:[/W,+#RC_BLJUWFQ"204U M[Z5[Q>$)IBWF=BHYAW:6#R&ZJ78['8YNP2A"9.N,*<) MLR"85[_:(J77Z&FDIS_3MS-]NW:XG1S>_RR0S0+96B"[OL4UYC1C?OW7A*W. M5(%IXM6QI,1>N_%(E^IR.X]IG,DWO,@[WL`?;AJA+3FC\Y.-8Z@1'?CVR1I"1+D^2.*2XT MS;-8>S9YAIV30L.S(;93BIN/(TCL]W1%I\*+J!L7"BS/V,PKA0)M!6IBH-K3 MPVIWW`1$!+P*Z.TB)L'["?$4+Z)TC7>;$))"17OI'O!_A^,6[@-@@5*&[^DZ*Q#-5$H M4?Q]6(6.:S_\66]'VG5".A+2F;!-HO&A4;3YASN>9P9[8EL>9K?:>;@)(EZ9 MV*CF'=I8/(3J)5]MDXQ=@M"(21>8XXB9$.ER/ M#G_1?S,);)8"F^M;7&*.$^:[2[8X4P6FCE?'D@([[88CG:OS[3RD<29?\#QK M>0U/W-1"6W)"YR<;QU`A.O#MDYM;2AK_?N9$0N5">.]C,URI(7'83@]D?J7Y M)U!+`P04````"``-96U'-YO]%:$!``"Q`P``&0```'AL+W=O>X6^_^PBV<4?X1E6N]V822"FK> M2_>.PPM,6]@%P1*EC5]2]M:AFBF4*'X;5Z'C.HQ_=NE$NT]()T*Z$)Z2:'QL M%&W^Y(X7N<&!V(Z'V6WV'FZ"B%8TX19 M$,RKWVV1TGOT--+3[^G;F;Y=.]Q.#K/O!;)9(%L+9/>WN,:<9LSN2Q.V.E,% MIHE7QY(2>^W&(UVJR^T\QB&R3WB1=[R!7]PT0EMR0>J3%QV,T/9'FEQ7]02P,$%`````@`#65M1V5]?,:A`0`` ML0,``!D```!X;"]W;W)K&ULA5/;;N,@$/T5Q`<4 MVTG;*'(L):VJ]J%2U8?=9V*/;51@7,!Q]^\7\*56%:DO9F9\SID#`_F`YL.V M`(Y\*:GM@;;.=7O&;-F"XO8&.]#^3XU&<>=3TS#;&>!5)"G)LB2Y8XH+38L\ MUMY,D6/OI-#P9HCME>+FWPDD#@>:TKGP+IK6A0(K^G><7B&:0NW0;!$:>.7E+UUJ&8*)8I_ MC:O0<1W&/UDZT:X3LHF0+81=$HV/C:+-1^YXD1L`S52Y'N[G)V"4(3)EMA3A-F03"O?K5%1J_1LTC/?J=O9OIF[7`S.;S_ M76`["VS7`MOK6UQC3C-F]Z,)6YVI`M/$JV-)B;UVXY$NU>5V'K,XDV]XD7>\ M@5=N&J$M.:/SDXUCJ!$=^/;)S2TEK7\_2R*A=B&\][$9K]28..SF![*\TN(_ M4$L#!!0````(``UE;4=,SA3`%`(``.,&```9````>&PO=V]R:W-H965T-T*V;D),#YSOK'&&8I.R'=5`6CTP5FC=DFE=?N,L3I5P*EZ$BTT MYLE%2$ZU.G9)G.$L35>8T[I)RL+%7F59B)MF=0.O$JD;YU3^.0`3 MW2XA20B\U==*VP`N"SSDG6L.C:I%@R1<=LF>/!](9B5.\;.&3HWVR!9_%.+= M'KZ?=TEJ:P`&)VTMJ%GN\`*,62=#_NU-/YDV<;P/[E_=ZYKRCU3!BV"_ZK.N M3+5I@LYPH3>FWT3W#?P[Y-;P))ARO^AT4UKPD)(@3C_ZM6[,V@P,8]BLB26'KFTK/Y]$5(7XPK7/3T;3IOL`P&R['!TAN0?U]Q MK#D$S0-5YE%([@T6$Y"@6&ULA5/;;MP@$/T5Q`<$F]VD[: M10N@H/)1083E"H^@5!0*C?_,FF\M(W$;+^K?TFZ#^XMP\(CJMZQ]%\QFE-30 MB$'Y9QR_P[R%^RA8H7+I2ZK!>=0+A1(M7J=5FK2.TQ_^,--N$_A,X"OA*26G#H4O$4J]>29U\*=HU",X9O,.<) MDZ\(%M1OMN#T%IU/+3ZF[Q;Z;NMP-]'S[&.!_2*PWPKL9X'\_1:WF/."^=\E MVYRI!MNFJ^-(A8/QTY&NU?5VGGB:R1N\+'K1PD]A6VD4_4$L#!!0````(``UE;4&PO=V]R:W-H965TT/C)FR!<7-'?;0N3\U:L6M2W7#3*^!5X&D)$NB:,\4 M%QTM\E![U46.@Y6B@U=-S*`4UW_.('$\TI@NA3?1M-876)&SE5<)!9T1V!$- M]9&>XL,Y\X@`^"5@-)N8>.\7Q'>?/%='&GD+(*&T7H&[Y0KW(*478#M[S(-8[$]-S/+CXXN/8B M3IF8H.8JU2.(T9U8\8>(5P9SZS18)O45/IA;?T].%GFX= MIK/#['N!;!'(M@+9++#[=XM;S'G![/]KPC9GJD`WX>H84N+0V>E(U^IZ.T]) MF,D7O,A[WL`+UXWH#+F@=9,-8Z@1+;CVT=V.DM:]GS614%L?_G"QGJ[4E%CL MEP>ROM+B+U!+`P04````"``-96U'&C+B-*8!``"Q`P``&0```'AL+W=O4B? M67MLHX#'!;Q._SZ`+W&KE?)B9L;GG#DPD(]HWFP+X,B[5IT]T-:Y?L^8+5O0 MPMY@#YW_4Z/1POG4-,SV!D0525HQGB3?F!:RHT4>:\^FR'%P2G;P;(@=M!;F M[PD4C@>:TJ7P(IO6A0(K2#K*RT^`%!+`P04````"``- M96U'H==0NJ0!``"Q`P``&0```'AL+W=O]#^3X-&<>=3TS+;&^!U M)"G)TB1Y8(H+3#@I-#P;(@=E.+F[PDDC@>ZHTOA1;2="P56%FSE MU4*!M@(U,=`F=BHYAW:6#R&ZJ5,TUW!+D%HQJ0;S&G"7!',J]]LD=);]'1J M\3D]6^C9UF$V._P/@7P1R+<"^2R0O=_B%G-:,/F')FQSI@I,&Z^.)14.VDU' MNE;7VWE,XTRN\++H>0L_N6F%MN2,SD\VCJ%!=.#;)W?WE'3^_:R)A,:%\(N/ MS72EIL1AOSR0]966_P!02P,$%`````@`#65M1[7>V>VE`0``L0,``!D```!X M;"]W;W)K&ULA5/;;MP@$/T5Q`<$V^M-HI77TFZB MJGVH%.6A?6;ML8T"C`-XG?Y]`5_B5BOEQ80_:_VG0*.Y\:EIF>P.\CB0E698D]TQQH6E9Q-J+*0L MSK3;A&PF9"OA,8G&IT;1YC-WO"P,CL3V/,PN/7BX"2)>F=BHYAW:6#R%ZK7, MLGW!KD%HQF0;S'G"I"N">?6;+3)ZBYY-+;ZF[Q;Z;NMP-SN\_UH@7P3RK4`^ M"SS\N\4MYKQ@'O]KPC9GJL"T\>I84N&@W72D:W6]G:??SYI(:%P('WQLIBLU)0[[Y8&LK[3\"U!+`P04 M````"``-96U'DS1C-L`!``![!```&0```'AL+W=O)#BA4902P=H.YYFO/:H\DX/A;0>/"NE!"*;^GH'+\8AW>"X\M75C M7('D&5EX92N@TZWLD(+JB$^[PSEU"`_XW<*H5S%RO5^D?';)S_*((]<"<"B, M4V!VN<(]<.Z$K/'+I/EFZ8CK>%9_\*>UW5^8AGO)_[2E:6RS$48E5&S@YDF. M/V`Z0N($"\FU_Z)BT$:*F8*18*]A;3N_CF$GO9MHVP0Z$>A"N(M\X\'(M_F= M&99G2HY(]\S]N]W!PI43LS7;H?;%DZM>3JA"8,76'.`;-;$,2J M;UI0O$6GP>)S>CS3XW6'<7"__8+_?A;8KP7VP3^.WA]QC3G/F"^8))LFR21` M/S"9,?'G)NFF23H)[#\PF3')?R9D-1T"5.TO@4:%'#H3AF.I+O?L1/UTO<'S MK&&PO=V]R:W-H965T ME=3V2%OGN@-CMFQ!!5)"G)TB1Y9(H+38L\UEY,D6/OI-#P8HCME>+F]QDD#D>Z MH7/A532M"P56Y&SA54*!M@(U,5`?Z6ES..\"(@)^"!CL:DY"]@OB6UA\JXXT M"1%`0NF"`O?#%9Y!RB#DC7]-FA^6@;B>S^I?XFY]^@NW\(SRIZA.3E+UUJ&8*)8J_CZ/0<1S&-_MLHMTFI!,A70A/20P^ M&L68G[GC16YP(+;CH7>;@X>;(.*5B8UJ/J&-Q5.H7HLT>\S9-0A-F'2%.8^8 MS8)@7OVF14IOT=/1XCX]F^G9.F$V)=S?%]C.`MNUP'82>/I[BVO,><9\NF^R MNVFR&P6VR7],9LR_7Y*M&J?`-/%\6E)BK]W8MZ6Z7(%3&AO_`2_RCC?PG9M& M:$LNZ/SQB;VN$1UX^^1A1TGK+^FRD%"[,-W[N1G/[;APV,VW&PO=V]R:W-H965TP55-SV#T[P0G48,S:3IC] M]VM;;8-)2^IM=Z6Y&ZU-,MS6?VJ=WG>S'X7AV/],-\US>D^".K775YD M]5UYRH_M7][*JLB:]F?U'M2G*L^V?:/B$`C&PJ#(]L?Y:MD_^U&MEN5'<]@? M\Q_5K/XHBJSZ;YT?RO/#G,^'!S_W[[NF>Q"LEL'8;KLO\F.]+X^S*G][F#_R M^TW(.J0G_M[GY_KJ^ZP3_U*6O[H??VX?YJS3D!_RUZ8SD;4?G_E3?CATEMJ> M_P6CESZ[AM??!^N;WMU6_DM6YT_EX9_]MMFU:ME\MLW?LH]#\[,\_Y&##[HS M^%H>ZO[?V>M'W93%T&0^*[+?YG-_[#_/YB\Q@V9X`P$-Q-A@[`=O(*&!O#10 MS@8*&BAJ#QH::&H/(30(;QH$9K#ZH4ZS)ELMJ_(\JT]9MP#Y?8M7G9'6\JSN MK;6C7/#)$ M[$!2KY%GOY&-023S>R('3^3U>$H83^DWH`8#ZMJ`,@*2J<:H1XYFM`R2,,FT MG4I)U`8H'H6A7[%&%>O>A+I9'OI:L1ZTQ+&=2DG4!B@>1X1)"E'%H5'LZ&5M MD"3F.G$H)E$;0W'&8T98%A&ZKB)85\IO($9]CGL#HZ:*!*U26`E1TGB5\P9*KE__+FZ6IQ?-0/C6UUV M;/(*`T9=7YRC"XP/F4`33`C<=0%"E"-X`;3@S(4]`29TZ`AQ@RT9)M*./8]= M$CR3N&<2/+L)I=?0>H1N)"<3OPS$[IBPFTI'4Y'++3!%\$KA4ZY@R@FAG^.Q MGYMHS+EP39.F39.F3Q,>UWD(#D4$$WB*3EL3^%`Q/'B=:N"(!A M=CUX$.6)/]T!DX0Q;6X M^X3PIRI@9*1<6(IB=CUXQ!+2GX:`\4TZBMGUX+%&#+&&L(X%'FN$!A/.68>` M)+7#\Q2C['+P8".&;9TKVP&T$%([L'3`-*/$'1'A@B(\2243009:L+O;G5`R M$31BE)"G^&IX1"/D+B4Y11/$1*7^DX84OBF2%$V14K;EM5T&C',+@@/:@IJ,)() MO`93WZC!%!X^%%Z#34?%,,@)Z?1EPS"['GPCHP@U&#"^4R$4LQ_9XC68_D8- MIO'XH0DUF!YJ*\^1(L[9%>$A1!-J,&!\YX4H9M>#;Y\TH08#QC?I*&;7@]=@ M^ALUF+:<]5/"#4"N#/8%L0O!PXRF5%\`>';)TVIOO185K'8 MCJ473%!F&R^_]#?*+XU'+4TIOP`BCEZ([XY"R^YHTA-`KA3V!3%"@JNKT2*O MWOM;['KV6GX<&W.3-SX=;\H?17>U>O-\S>^?./(\Y??/YA[\8GZU/&7O^5]9 M];X_UK.7LFG*HK]]?2O+)F_5LKOVG=CEV7;\<0&L&:4VF?J+Y(Q=E("1`C[VYM.[L.[DT1>=HR M`7L"G@B3SS(A]H3X1LALIRZ9[>L+4:0J!1^0[(GYV*N-A@LCHI61M&JZ)6F+ M.U.]5CA=E>'5"'D,GF&>'>8.8C^JX`D3Z@2+,7"P9(&=P!T+AXBCQP[QZ)#, M&XU]Q/BC1VXQG4OA,-'_$7N'2!))[WCXS!QLL[23_ADBSZ9]\D>"^2+`ODGOHW#K$S2=?S8J%@T*KQ1?L?( M87*]"=J]/R=#A1.RFQSO1=N)+F#XOTX8*Z&:4=40(``'<)```9````>&PO=V]R:W-H965T>4:(<#[+HN);-Q.BWG@>/V2DQ/R)UJ223TZ4E5C( M*3M[O&8$'W5167C(]R.OQ'GE)K%>>V5)3"^BR"ORRAQ^*4O,_CR3@C9;%]QN MX2T_9T(M>$GL]77'O"05SVGE,'+:NCO8I,A7$(WXE9.&#\:.$K^G]%U-?ARW MKJ\TD((DU0 MN(J]JR)J,6B`>6XQTXC4(`*_AWA2@%4%ZE0$0Q6H5;&^3Q!T!(LA06`((G\L M_7R*3!?(%(;Q&3(M96%^OYK0+?:D,OWVM6 M"YHA$\#>+;A-X#2#/5_P0,#`GC"8B-C8ZD3&1EV#1T(&]I3!`S$#>\Y@3M!@ M?M)@(FI@LA;,8+"'#1Y(&]CC!G/R!M;`C7Z/_T&FA=@C!P]D#MDSAR8R-_K7 M(WOFO,$66>,S^8G9.:^XLZ="[K9Z:SQ1*HBD\)_DQ\GD*:B?%.0DU'`IQ\R< M"\Q$T+H[YO1GK>0O4$L#!!0````(``UE;4?*15\X]@$``%4%```9````>&PO M=V]R:W-H965T,/>G(^)MH`"1ZIZ031Z>1LC^X MKB@:H%@\L1XZM5,Q3K%42UZ[HN>`2T.BQ`T\+W$I;CLG2TWLA6V5+H1,LZQ*$Z.B?_D"<:80"_6QC% M:HZT]PMC;WKQLSPZGK8`!`JI%;`:KI`#(5I()?X[:=Y2:N)Z/JM_-]4J]Q2 MW43;)@03(5@(2YYM0C@1PALA,I5:9Z:N;UCB+.5L1*+'^F?[!P7G6D0I(V'4 M5$G"!$\Z>LV")$S=JQ::,,$*<[88?T&X2GTS1>!LT0.;XGZ"W")VP>,,X9PA M7!<16H/Q_K%`-`M$:X'(&H@^>GPVD,Y682%^&'OW0;D%A5Z4/'82;SJ)K9/X M8Y)X[22>?MG^/B:WF'"_>^PCV?213$F^.A*+\;V=_\61+$*?K;BKZTJ!U^89 M"U2PH9/V*BW1I5.<`GW=/\7/JH/8!W^3R=(>U_`+\[KM!+HPJ1Z3N?D58Q*4 M+^])G5>C>MRR(%!)/7U6&ULC95/;YLP M&(>_"N*^&FPP4!&DAFG:#I.J'K:SDS@!U6!F.Z'[]O,_,KH1FDNPS?/^>-[$ M,>7(Q:ML*%7!6\=ZN0D;I89'`.2^H1V1#WR@O;YSY*(C2D_%":POEX2O]BN]7V.R)IS=G/]J`:+1N%P8$>R9FI%SY^I;Z% MU`3N.9/V,]B?I>+=5!(&'7ESU[:WU]'=P84O6RZ`O@!>"^)DM0#Y`O1/`7!F MMJ_/1)&J%'P,Y$#,CQT_:ER8$)T<2)NF6Y)V\N8V M43L"15<$:(%%"SA9H+D%]!;XXP`T!23S`.0#LO>2F65ZUX9CBBR#Q6VJ]A3& M1?RQ3+(HDWB9_/UCTKF,8Q#&T6VH]D%Y?L<7FRZJI%ZE6%%Q3(Q@EJRX3!2Z MYU?&BS+8R60K+6\]$R7IBHN#XJ*X8[]DBRJ95XE75!SS">(D0BLR$X9B=,>. MR1=UG*]O54G/WW7P*SXV$@)_J=B%/;RV#'E3YI[+%PY%Q1 MG1(]Z`X;_0*X3A@]*C/,]%BX,]%-%!^F$_[ZFJG^`%!+`P04````"``-96U' M_VPA,RL"``#V!@``&0```'AL+W=O@&LS:3NB^_?H$H5T"O8GMX9]_ MOB%HG/>4O?$*8P'>&]+RK5,)T6U4U;P/!IZ^S\39DIA1;\JG'/)WN@V/>4OJG#C^/6\10")O@@E`.2 MRQ67F!!E)`O_L9ZWDBIQNA_/(D3FS:?$-B$8$P8Z\PG0)L`;PFQ M[M20Z;Z>D$!%SF@/>(?4G^UOI)PI$^D,N':3+7$=W*GHM0@2F+M7960UP43S M:#3^?45I7:)@U+B28!8C<.9*!,9@H8110&^]`APJP&FCT#8:KAN$@T$X-0BM M0?01,M&:UK1A-##VXONBTAJ%,%E'B691(HORJ4HT13$:[[ZB-(HTRM8QXEF, MV&(D"QCQ*L9GQ5V(9!8BL1#I`H31^,&"IC0:&'P!))T%22U(M@"2KKX-H_CF M?P$CF\7(#$;J+7RF1@,3&"Y\IMG_W[)!<2=SIL'LK.RKDM-.CZ42IP+*^]R#?2R4OH?%`\$FH;2+WS,QE M&ULA5/+;MLP$/P5@A\0RK3L!(8LP$Y0M(<" M00[MF996$A$^%)*RTK\O'Y*L%@9R$7=7,[-#+EF,VKS;#L"A3RF4/>+.N?Y` MB*TZD,P^Z!Z4_]-H(YGSJ6F)[0VP.I*D(#3+]D0RKG!9Q-JK*0L].,$5O!ID M!RF9^7,&H<O\.TA5T0K+2P\8NJP3HM9PI&DGVFE:NXCNG/GDZT M^P0Z$>A"H,EX:A1MOC#'RL+H$=F>A=EM#AYN@HA71C:J>8BWITZ8@ MUR`T8>@*^??:PPZCS+VA)!#0NA(\^-NE2I<3I?GXBRSLM_P)02P,$ M%`````@`#65M1_$5!_]>`@``8@D``!D```!X;"]W;W)K&ULC5;+;J,P%/T5BWT+=GA&!"GI:#2S&*GJ8F;M)$Y`Q9BQG=#Y^_$# M**U77;"'VP.*-,0@?C=D$(LYT.*/C+WJQ<_S M+HBT!M*2D]046`UW\D3:5C.IS']'TO><.G`YG]B_FW*5_",6Y(FU?YJSK)7: M*`!G0`%#\9L>F,^-@G\1P#','H#$` MS0'("K>)C,QO6.*JY&P`HL?ZSX-;!>>:1#$#8=B40F$V]WKW7J$\+L.[)AHQ M:($Y6`R<$:%B=Z9`@2L-11N'TH#,%F/1Y&3I%F>\V)$91Y6`&A.PWT,&,"13[E(+#YA\X8<]:CY"4[?0U,.8\O#RS<2@N/K^@,RCV:A?MDHLC#D1'TD'[N">&B!U+" MKZ;5"W!BMT[:%CCOSM>)/3(]]!U>E3V^DE^87YM.@".3JA.;MGEA3!*5/WI4 MKT&M+CSSHB47J:>9FG-[!;`+R?KI1C-?JZK_4$L#!!0````(``UE;4=QWLGA M\P$``,\%```9````>&PO=V]R:W-H965T]5^1F[HD7.;M(VO;DB0-QZ3K,_QP(9>/>"[QIXKD]-U)/P"*'LZYJ.]*+ MEO6`DWKO/0:[,M6$`7ZV9!2+/M#9CXR]Z,'W:N_Y.@*AY"2U`U;-E92$4FVD M%O[M//\MJ87+_N3^U>Q6I3]B04I&?[65;%18WP,5J?&%RF<+D*R;I)XH,.OMFU[TX[V#T).MBX(G2"] M`$2#=/S.;_AQ5]02P,$ M%`````@`#65M1XHAZ4+Z`0``5@4``!D```!X;"]W;W)K&ULC51-;Z,P$/TK%O<4,($T$4%*6%7=PTI5#[MGATP"JHU9VX3NOU]_ M`*$537J)[>&]-V\\IC3$Z7Y0?[+5:O<'(B'G]$]U5*4V&WCH""?2 M4O7*NV?H2XB-8,&IM+^H:*7B;*!XB)%WMU:U73OW)<$];9Z`>P(>"6.>>4+4 M$Z(K86DK=(=D0\R?'6XT7!@1K8RD5=,E21O@EP^LD]2]& MJ,?@"6;O,.&(\+7Z;`KLS=&Q2_%U@MPA'O']#-&0(9H6$?5%K.X++`>!Y51@ MV0L\?C2YLIC:E>$PZU7R-29WF$7\#2/QK)&X-[+^F"2>&G&818B#&ZCTMC=!P5 M.]M1G^)[/4)!!7U>IA]QXH'!2 M9KO2>^'ZWAT4;X8I-H[2[#]02P,$%`````@`#65M1_<6LS31`0``,@4``!D` M``!X;"]W;W)K&ULA53=;ILP%'X5BP>HP?QI$4%J MJ:;M8E+5B^W:"8>`:F-J.Z%[^]G&9&0CA0ML'[Z_`\;%*.2;:@$T^N"L5_N@ MU7K88:R.+7"J'L0`O7G2",FI-DMYPFJ00&M'X@R3,,PPIUT?E(6KO)%)GSJG\_01,C/L@"N;":W=JM2W@LL!77MUQZ%4G>B2AV0>/T:[*+<(! M?G8PJL4P'(=[LXGN]#T(;`1@!1,N3LZGI46?*8$B-./:>QZ M-X[3DRSVM'4"\01R)43)IX38$^)_"'A*YOIZIIJ6A10C4@.U'SO:&;BT(D89 M*:=F6E*N^&BKES(.HP)?K)#'D`7F:<*0^XAJ5KE"L`FPFH+,*9)E"N+Y9%L@ M7A6(O4!\&S)WF'YJ8\*0*'37?6#E@22]!=Z-E*Q&2GRDY)-(B8\T66T[I:M. MJ7=*;YV6F&K&9-LFV:I)Y@7R;8%\52#?_D35A"%?DNC_UX$7VWN@)_A!Y:GK M%3H(;?X4MZT;(308G?`A#5!K#K#K@D&C[30WS\>J^T`$``.`$```9````>&PO=V]R:W-H965TW9@^-':F+5-V+Y] M;6-86J&D%^P9OI\9&#L;A7Q3#8!&'YQUZH@;K?L#(:IH@%/U('KHS)M*2$ZU M"65-5"^!EH[$&8F"8$\X;3N<9R[W(O-,#)JU';Q(I`;.J?Q]!B;&(P[QG'AM MZT;;!,DSLO#*ED.G6M$A"=41G\+#.;4(!_C9PJA6>V1KOPCQ9H/OY1$'M@1@ M4&BK0,URA2=@S`H9XW>O^6EIB>O]K/[LNC757ZB")\%^M:5N3+$!1B54=&#Z M58S?P+>06,%",.6>J!B4%GRF8,3IQ[2VG5O'Z4T:>]HV(?*$:"%$SH=,1J[, MKU33/)-B1*JG]M^%!P.75L0H(^743(7*)4\V>\UWP6-&KE;(8Z(5YCQAP@5! MC/JF182WZ)&C1_?INYF^6U>XF]S3Q_L"\2P0KP5BW^*7OUM<8\X>$P;W39)- MD\0+A#=,9LQ_?(K]ILG>"^QNF,R8^+Y)NFF2>H'DALF,V?]C0E8CR$'6[J0I M5(BAT],$+MGE,)\B-\*?\#SK:0T_J*S;3J&+T.8@N*FMA-!@[(.'!*/&7#=+ MP*#2=IN:O9Q.X!1HT<_WR7*IY7\`4$L#!!0````(``UE;4=DF)L?H0(``.P* M```9````>&PO=V]R:W-H965TISUR\ MR`-C*GGKNT$NTX-2Q_LLDYL#ZZF\XTQS^11,+JU07V7X3R? M9SUMA[2I[=J3:&I^4ET[L">1R%/?4_%OQ3I^7J8HO2P\M_N#,@M94V=CW+;M MV2!;/B2"[9;I`[I?86PD5O&[967OZ:2/?+N3[M5!UUMGB9;MJ.G3CWS\P\& M>YB9A!O>2?N=;$Y2\?X2DB8]?7/7=K#7L_NEG$.8/P!#`!X#2&X+=R!;YC>J M:%,+?D[DD9J7A^ZU7)@D.G,B;39=H;2+#V;UM2&HK+-7DP@T>*)9.0T:%9G. M[D7@U!>.`;&XG8!<$I!IC0025+<3%)<$Q31!X1+@_.,F9U8SN"J=ILK-YS9G MYN7,@(,"'*>)0,R]B#D@<``QCT647D0)"!)`E+&(A1>Q`$010"R^]$(J+Z<" MSBS`J6*W@G(OPRX;R/PCI)Q"0!1#07X*-"J^:E2$/V"SW M`0P^0*Y\H)I20!1W:-AO!1BL@%Q9P52T&D41_[K8;P08C(!4(0[^A)--II&> MB;T=NF2RX:=!N6%D7!T'NP<[UV7O\J8^TCW[1<6^'62RYDK/1':`V7&NF.;G M=_HE'O3H.3YT;*?,;:GOA1O&W(/BQ\ML.0ZXS7]02P,$%`````@`#65M1VV( MV]GI`0``#`4``!D```!X;"]W;W)K&ULA53;CILP M$/T5BP]8WS.F3/& MXW3@XDW6``I],-K*@UTQEI<:&)%/O(-6[Y1<,*+T4E18=@)(84F,XM#W M$\Q(TWI9:F,O(DMYKVC3PHM`LF>,B#\GH'PX>($W!5Z;JE8F@+,4S[RB8=#* MAK=(0'GPCL$^3PS"`GXU,,C%'!GO9\[?S.)'`#DATQ/SO8:[@P(EH92:NF2Y(V>#31:Q;%?HJO1FC$A`O,R6&"&8&U^FJ* MT%NCAY8>WD^0.\0N?)PAFC)$RR(B9W"[>RP03P+Q4B`>3R'X;')K,:TK8\3X M_GU,[C#)`G/7R&;5R&8T\N6T-DLC#A,'T>,DR6J29$P2_:=:APEV_Y2"%[>, M@:AL]TETX7VKW`V8HW.#'T-S2[_$3[KQ79_>9+*T(Q7\)*)J6HG.7.D>L!>V MY%R!]N4_Z:.H]=,T+RB4RDRW>BY&POJN]@13J4RS2BG)HM)N1\<\0"0HPDD"+`"44A7S%>V* M_J#\LCG;W7`!DDJ[:WIB*J+*4@K`7)ED5QMDTO,BJM'H.1QF/D.99 M>!"6\[A(RC^]KK[[TVO\AK\[#C_D634OX9MI,JT__?,ZZX2#;A3VN[VC^L/A M^J$3]OK-#_5ZAHWKJ;\N;]PF#VE9%3%\=Q4OD_I;;XIU.<>WRGQ=3)(R@B$G MG9:QSF'V(E[`*]/D<_B7Y+EUB7?/*V^J7O?@A]8/;I(BS7%;T_!M7'G?*J@% M_^-_-,(-QIC2..\6\4/]:56LO0'-%V^3DA3PHCT5H+CK?*B^O+KJ[#*0WSTPSHN*IJ? M'^'WN*00OP_S6=BP%GR!/OZK_GA%IQ#P)`#S1&.J6L%UD3ZD&>"`+.'OKZ(P ME[_!`+`E^/(IK>8T\CB9K(NT2F$RND2?)_,X>TA"`-TR+4N\1?`_P/IU606] M0YZJ$][!IZMUL.([D[1^C!SB=Y4223*IPD104W-TR*(B_*L$@6@$)3 M!9L4CBDM"+8RF#JY_RB#ZT^+>)XOXW!5`(DH:*D3N+XP'(P`8^+[,]A=-DEA MUV4%(^-0O"$UTS0M)XN\7!=-7]=`%B%R3`GI[I-I`"]=Y54"1PY8!&>C)N@` MIL"3QV1YGQ0$E\A>>X!3PM,"YHEEYSCA!!ZO*R90L%MK[T7R`,?/"`>+:MAW M&SZ$#?C0"<>K9)+.T@F>>Q34``U_G:P7O(PTFRS64P,/`_UFP.(RVB<&6$_# M+*_"*OX$4V95'L23"=)_V$KRF.;K$A8.:)$7-*=U^%GKSN'UGB?A.5Z!N>>PF>+YP"8#YP5C`7/GN*"&$UAT-B__V#0J_]Y5"I^&8<_)8O%`1/I<1*7.5[445FN MD^)_UC^[RC<-]&.^`*2+BV=8V:+A:_WN'TO9*&(2T.%J78:R*>^CGWUQ0B:D M2<)SV/1#7GB,=[R$:PC/S40"\#9.#@08H#ZN\LFG*!R3'!->KRLXMPPQOI5/ MRRD(NWX'?_86_$-_V]=TAHW?GE]?O;VX&E^\#>&W\?7EZ.WP#O[Q9G@YO#J_ M",??7US"._38!S#WJ$ MR(=M.!:795+YBX*K5/_;71%/$Z002?H8WR_\8_MS#K0)Z5."MV'3FVKR*<#T M$4CF8]*RCILB`;("5/$S"+.E/]!=7@%P)QOWB3X&@";-LJ_#(W\Q?NEP9M7TPS2]WD^?4H7"Q_C M-I\G:BK?ED"SDW_]`VRC3(K'Y`_?A8U3MVQNPZKXC1:$%A19I/$]R*`("4\^ M9IX*P(J?$6L)4G!P($I/-WWGH?UCDJT3/4S;2I9X/"PHPK$JL6H5X]$#LW_I M`#M]0K"!N:JT$%9UOT@?")>V7*T-^[_,LX<#Y,V;7K(P8\-;5YLV<>N!J.W- MM\D,I$,4A^//&T_\Q>!8[+)7$O4K(S*C>`P,)@$!Q'^9^-$\7P`I+/](5[+R M.!A00=E0R=QKK]/M]A`0X6.\6"<@7Z^!W!3IW^"5'DEL)+6QLOXO*!R!K(0< M?\K7OYWK"9?<99XC?R+0XT]ZO>CL]%C^I&>M:F(5+@/>'AS#_P<-;P/O8C6@ MC7_=`%LX0.D_7J5P,@V7V2*X*+MY!(Y/M-P!_G+VYL1I^;M\N2-SOXGQDLT! M$4%60`:_%[YN,;6,;3'SG19K;_(R)=GZWX?W:/N85/^K'8M$!M+GNO7-H3[V MK:^.[9/<]>T-8I@KMK4NV7VM?;WN>Z/&5;8)/0($+[D8/@$MER0.2H\"`4H$86EG&#B';1(G&] MM>2/R,@RS"R7*(G_K5$VN03-(PE1"HFKAF-^GV0)+I*&F8*:1Q8\Y!<^#N6S MA`PI\/HL\5=XP]O"10'];^3S1:+T4+(IK%E5WL`=&Z"SR(L-0EB;P'JM`(`V M`CS&?=2$7S4+7^H5&1J:$../+=O@1L@#` M"A)=29YJ%!%MD6S[6JWM@DH-8G*B/FH\II%^!F]G0,(KH(EZ^&_;1)QTXV>M MDL++/KM*JLWGY[V`YIWP/B[3":'X-%VL\0I.A-TB&:R/L1?N=[JGWM#XY_Z9 M]^>?DO1ACD/&CX!A#XE,9D]0;F+\WO=-2]PXPDYD\WPX_CY\=WG]T]>13=1+ MP]DB?RH9H34]`4$=T+I9J(2SP#/PZ,#TEW4I8EJ5D^D+>"D@?28?X%_Q=[(K M`;%\3(%4WS\W3NKAHTTG^&'W%0D=(`_AT*4_+!"4@IC0_C3AWUZ1^1AW'E=5D=ZO*]+[ MT,QNC)O6:1,EI,.T9$'OY.LV"TOC;M9-KW;$L6V7(@1EL_F8X`3E51$7& MRL=DD:_4^6ZV'6P:##[^:0Z7.;R./UD.EQ]'47AY>4Z#WJ#]-L["8;6(02,J MZ<'+9@3>/DF2J6R8,./ERVXRY\3W\)<\8TM^$_;H0]I?ETBQT"*^`[SK9R2& MZ(W?N)OP%\QJ7A<8C=%J7\:31`''#9^;X^IKP7A1BHKY$@H#%KAL4 MR7/K/8]1X+E[6W$X05RWEE7S(E\_S+7<^+([V>N$MQ=:5/!Q6'M7=K(H^GY$ M/C7RV:V0/A>:PH`BQ,PB7K;>PK&B>K2NP48MEP7)9A@\LR M$(=9N]L2_O4[^RIK'KK@'^FK#'U?9?`/]E6&KJ\R^`?Z*D/?5QG\`WV588.O M,OA-ODK:ZP(O`JZ^Y/W-06F`J1.`H00ML)V!YID&H#F@'(F;J.;P'M#:;\,W M\8*8UABCD(TZAV=!9>CX9O1Y>AN=#$. MAU>H3%V?_^7[Z\NW%[?C/X87/WP6;8''!7?S(DD<4U@-IAD_%<`.7:"S1-_&91`AD.<1DX086213F3[!^UA[A7VSB32);UU.P M#%HHUJI(EW&1PGU"2TSR.>8+KQAS)[Q6JSNEY<$BS?9`D@)Q!Y=)RDML]N0M M/["7;]X[/SC/BY485VEF!%(6+\EKT!)>J&+U=(#B*V942Q+.RGFZPK!9PNF@ M*2Z0S@+$-)"865:8DD$X['W;HXO%#+AF"G-8IX`%H"9@.8(!VX,#@[;@0+[` M)9LC6,JW22W[BE'P@=4AL8==H3%E/)F#R`*2=^_PW`G9-6X"XM0@FH%42#%4 M#M=WYJ`W@8D@X&F%)'I5?`JXHI8H479VKA=3VC?M.-9!GO`9#H&!BR275DF` M8B_0,7/:_6XXC9]ADP6(V7`:\0PD$1I'@T3N'T%SZYX1"6`K;2\:OD1;M<&. MLQ1A?)^O*PG6#`\MUZ4MXZ/JETU)0J1MQ^&YV2.N=6C#0$Y<03-HAV;#$OI' M(MY[[B00^#]^^#"\_1G)W'CT_FKT;G0^O+H+A^?GUQ^O[D97[\.;Z\O1.4@2 M+8$/>,@W0/702[V!E+VAZP#;@L<:*ULDJW[*\BO)E]L\F7S!.*RU@J47W&V2"8@WLJL^0JH$]PR MF&\99_%#PL(OK#",C>T]"I_FZ03VQ%815,+@>BYD1(P_P6T2KTI0FP`9`1PE6-.>/DK-@1W0Y`\)^+S@K*FG'!6>_L=$BP0E1MU1J814[QGB,) MKDU,1'09/\-I!FB'F1#NR$S/&`Z8D!O%"W4`Y?U;N_XXEPQ]3+9X3Z6<^)#`'O,>!':\LLZ8Z5>8[1UU;== M\&PJQE-4YA+D9A:XT8BD]O\7YY0EL\"+9^D`_50W%V^(*W)B@+5#E5Y"BV1A MFK2M19BWF19N!WG0$_!\0!V0&C&Z:'U?IM,4,!N8$`C@-TE5Y#9?0C$)#D.> M8$X'CJ->-!<+WM'_P+?VSV&6!.W""4SFB6K!$$@"D2$M$EJ&4)KCGJT%-N-( M4*+,XDJS#@,_N.2B+[R/R^!*Y%SX'8"NY5R$L0+'NN2#;;<16#9/W"$><8OF M#P*W:P:G](?9NB`K`,ELL.0UG&<1#,?GX=D`).B+S\1MD8X,]8>@SJA]V'M0 MP0=Y\1Q,@0HMM*6>2)1M`'Z:)V3A6Y-9?R44AP0J,5%IH@FOLH\*Y%8XCCEI M)K!*LO(G9,U!XRH0T&'PU1]C%LL2PXCA?A9HGV()3^\B+4FI6<#X4Y;@G:D" M>,X^4)+.5^@H*874%H`/"1FK").`M%6&T,2/<;H@,_5#DB_RAW02X6^K^;-2 MFA.4@`2@9HSFLEV<%;;HB=6-H4H+$/84*\="D;*XB?`S18Q4#24OQ$E M,)!1W4M\4_V.1(6!?1R@2HB;CU`<[7!,S[6)CBLLQ=`@M`3M*<'_EP\I(I?22J6CYV"-'(D M[K-)G"%/AI407L4DF"AT%'[,J%>S5#)^PN?()&H'0T@;.0>C=X)_;((,KF(2 M@[3"8\3*?3U3R@S,CX$UPOQG0!'S)P;-4BR-@34/;C;2"A"LG+Z:$]K`N+"Z M.B3HK?I]2SZ#4E,#4J2Q#-8=P&CKI3Y.-HV+`9?TM0T'!VN4-W"&*)SG3X`_ M1201K^M$!K4Q(H4C#(R)&@W:G)]!BJVA$I;G1-"#%@P#HN28SIYE=4L=@%8R M19#[06][JAHBTB=T!%DK@&\>"B0C"%?``CECO1@U",:'@,S#Y,+XYQ^U.4:N M+XSW"_`ZR9("C"`&3E&+&RQ9J9I?I,15#DM!@N6Z2&*YJ.1QI5_X$F=\S2NX MP7%9$?9EV3I>!/0\(DT2P)46D_42`WB0E8H_(#(D51%'$K_CQ3-I>H7M/G'Q M*T2_);H8@"O\1*S&6NP$N`Z($;@48P1,2Y.H1B?F>%I(8J%;X\*M@\+5KGJ4 MEKP\FE\;9.XP.^Z?1X.04Q`DB)S=V:L:%,N?SPZ`M M;X.U&Y')2CDUZ_EC`B\L$HG-S!$M$_MY6H9BL([9+PM'C,CJNBITK%%0#\3L MA%XHDOU8L5RR>JPU]J/RCP%A!^3J42+0H]!4=>SX10*$/UBDC\8BQCZ-3OBC M[*QQ8T12C,:JMY#(-+$,'2[2&=V;&*X\'L$Q,,.EY8M&JY[@HV<>KP,B M+N5LP,])_I"E&HZVU#5::AG4D1RK%`E;J:3M`BY=N\CHA)P@^RE04$>2H-)& M$&&`ZMT_FT02A%3!*T,*2K3*97D)TT(D=HN]_3'03]$]5!0`V;=8D<^UNZ=# MXGAJ`(D[$P@)V;,PD()[&)*=\".*RZQG*I_=1O@0-9Q4>!B/^0(8')E^;=H+ MV@+Q,E!6X>X#.8/E?:\8F,TTD.=F>0A3$[^'0RU3F`KM>X!W)'?I'6$*,SEF M[C"(+U0!-8$57MH<1<8<5MU#A,0TQ2"::)^'$ M63I9ME(@>LS6:%G!STD^QIF9)%,*U)*T1XM%)%E,E@Q*K8F?)"F<[$KQ:K4` MH$@(G9'HB'$0&639SMI83"9W,8Z@'P`>32J]&`8;4!)@`D*^4&HRR(/^I/M% M6LY1(")E1QN((@[J1/<'*EUMYR`KY8TZ:R&)G:66CG/EB8>1NX7>TR*Q%CL1 M^7&*E21E\%I)"%RDGU@%!K9(81*B3)220$]7-/D<:ZGNGO5E`]L`1B;]DG,< MJN=(F(M8M`#;=?QG]JRCA6``V`RQ48W'0V%QGR@ M=M0)D%;8T=+6!:0[&J-QBG@\?K=`YHIR"8,91E/?B52.H@!0D5C$74#+=%91 MA,N$T\\`;.D\9Z)ZGZ`(IV-,"688(((LR0Y8U68>`$+R2`:I&NR0.1X4ANJS M!=+>5RW#7K8H1K[`C9FQ0E)B)_?L65PJ$OM6NIH/BNUT43KA&W4(*=U>%L%\ M*>TGK'*06K.#AYS` M2:!@$8/X)DNDZ#U1A"ARC(NDOM3L`&2XRV?N9=8@,>HS?0SG$R\D^DC'V[5# M,,W,Y^IPK=`/"07&-98K90CK!%>Y_Q6%5ZFYC;IJ3=QX6E=)%:@@]@>4VTW\C[W8J<=5Z*0KZ=Z=D&V M)LD&V2FB#OXK&34B8F]$A2W1@+D$U0B8/:PY(PD';82J> M3QVH1<56;'^OLNJN\@IP.Z5X3J&U'(V,^P9IAY`MHE@RC.M$NRHM""BP$<,+ MA`=H1]9;B`5%.M$?B/.%E;2R007:$(87,;*S3_M,LC3UPE%"IJ4_)O8"G`VP M2RHZ.NR#!G3V=%6.#B+DWHY#?MQEJ\6'='9U0`$ M(P?JX(E<5JD>!(3025*W''"$H`I<49Q05,YU:8E4^.%]\V6S\)11'C6B6!N6 MICOC-XC$7"KH0JG@1-9JP:TO!``!)3H$&6JD5Q6:F#!]D&DU='DG*#3I+<2#D,VQ%*VV[EKPF:D.A M-F;LRFK^L$+_S`-GYY@L$SLF'35O,219NT![5BBR!=Y&9>:'@026[*>'B_M0 MD!57&T,(]3"VOJ9G(]@9(PM60-()WE5$8Y94F:+@.*#6/AOAV35S\=)FRHTH MR$D7F.U_VL\0T%$XVR+%TQC8:I#'I[^LIP\2@RVZ9= M*F3BZ`,^))W$QHDHMO]ZFN!IL`@=6USY$1[3'$I2J]WOB/$$)F:]F+9D^1;P M9I"V!P"/.5"M4)%0M==$1K(\9R@D1\J41,;IA`D)W6`CY,%5>4!@9))?$4N- MA%%HL1>/E$`(BK48H3!Q!P;HXHQ.5>1XMTF5$NQ]CY!" M6"TLE.2&+PEO'')HV]4]]!;7@!0XT:IYT]'595"\O&360OFO")%,K`*F4CH< M7/E\)L9-2#BM]ZCI;9&6GU3@'9K.&+^\C33?-H0QGC1J2RC:LL`"?`66:!N2 MZ,8A<@EEMM!7F(Z*Y2>WJ6:LQA9KNU)L#X;8H`,>Q?K4=T[43(K;8]M?BS18 M"+,V4?-N2<)@\U"HOSR%=B!:`4B!K(OR5499^`'`J$7*P(3?6M^,47&(BVD9 MOJ'P3E5-!$[DR0V9LL:VB@0JXRG=0IV=RE=K`BHM2&,%W<>T#'#(4N93>7!E M^+!..8(F-PJ;-;)MJ8G9H`T2[PK$Z&FR\$Q)F5Z0;:!(R8O! M0#X6]@-!7.=,`$[,-!#*.$Q=LBNMS$)VLVI_48_#+$_XZ),8DV%BF8QL%"L\ MI:IJ,`Q*O23X('EDHZ728+76J/1+E1BD1Z9ML+N']T"66C(!B$7(R+M*_8BT M*0J%2VUI=PM]6-%BD43T40P>S*LDN\>T-$%9Z,UV8*DLST59J0PD?!-@=.J% MHAX"U1^.;L,?AY@3G><4 M[.\Q7*72P:OP$AETV).???DY4.D5N+K`*[`6[B-AG<#^@=\.86 MTS[N?@Z'YS]\'(U'F/_!R53#RPLONAD=4*AL`([ZG50VV+8HZ#@GOH+BA6K3$1=L-R;LQ%_1OA:8>!]5JK@A6LQ$ MO&$D'O&VKTK4WY]8,7P!SS=.L`0GC:N,8Z:&L4B3B@!N$2L,[5+D1JT"S9;B M<%!W="+>%Y!"OPWWXU<[@\P*D8)9?DJS3UA"%%^Y!!)(-4372E&VX&7);)W0`Y#_,7!RJ/ M>$*%!8S0QF6+`GU926.T@]D[X1BD?)#"4&J]>*3H$$D+4M'=D9UZPUYHC(C' M"P,HT9#^K$)(R(A*NAL+29?Y0\QV@[_`VF;H!"TT_D9Z)/*#WB;+O(A#BM-= M).ME%%S>A/M#C*0"$>+NW_@"[YU$_<.S:'#6U07)V36NXMM`=P`>811.W(': M"0=X%*@6IUBB'(T&&/HF2DM@NP5$J76Y-BA(2TP\^YLW!SWYT?'B*>9(F,A2KOIM8:!=W*#"#<$$(R+MT!AMQTHT0I\[AI;0*A^J. M\-EA1P.T_>`?WL39)PS:UI^J6/O`#*:5'!)<]PYU\4?E&G8OQ1-%*J9$W+RI MT"P!^MP42U)3&!^OY)$`$T"O=60 M89]H=+Y0>F)],@G?#DI.H='">QVVR-[V^CT].W"#@G$EW M8)V926!QSV141\.&MP0\Y1SM;O<2.8'A(:2^1,HZ5-N\M5%6!FLPXRM?HJUJ MJL0NQMJ8H(4K1#'E/N7I4[]U7Y(($"DTIF"G754;()?C:^FS'1*5TF M8G["?:=5,">?@I3RT@2SJ;"&15I`C*)]2[$@?2CFGC==9(4SYNP"H46U4WFE MB)'MX#7A9\]>/9G24RR/.^'UZ)(D=\KH'EZ&[X=C)=XWY#5:.16P\#5Z%7\7 M]5)IE^RF0)[U_!6VLZ:*N`W:8YVM41Z^XW=MRL97+0.:,H^VU,D(;BC$]\#( M@T:V(E3G.4+4%Q>W;<-A8Q&,?%+3#+M93V.\/HMZ@%THA MC"V6R:VU0;@8"/[2K(&>@*B,]4G"VXN[$5M"PNLWEZ/WS84(N";UK2G%=*UK M]EE6D@T:J6V0$DJ@(U:02A@;AHBRH*F[A-/LIB_?!`X3M6`;5(4OV6 MP)5,F:6-R5*V)9@D3['?.(9I8^G>M&0B?YRMZ%2X#RX4ED2Z[14P)&=Z($7"A98[I@>]QJ%<#23&NJF:F*FCMQ`T`^:H?]?0K`VU6EO+!!' MTO=Q]YADZL/!2:"453(V;\">\"`\Q;([EC&,XPF;ZKX=A`=!,F];1B,M",P.:+:%/50%K]'V0ZVS_!YYGP3@XDL2*EY:Q".0\3GV7DP.CD=,D0;E!K7I@?PIS692 MA(S<1\K.04'ZO#"9G],:53!7H!USEN^Y'K&@&A<8HD&3>E+%:2=\?TW5$3X" M43X/WUY<#G\.WUUXED'N38!9[PVE7_QJNH'2SF*RD^D`>D$:$G18HS!(N,5H7X6>),MN[-0JEEYV;3A2,02!!#XGUEO78 M'\)Y^&'T#D0EC,.2U/S+R_,H'']H^BNNGR>C%!%)5PQN@,IF9`;PC(8("/V! M+M%BM!9?M!="Q_%;+'&C%SD"S1$$%52-'C"`'^[-1,IE2&%I&H$"B#@^MJ3$ MNSGLM:"P(8PMIDHCIL((`WP@%7?$H/J>S'$W/`.6J'G6QES7C(/:!NFTF!V' M=-T*AK<80*)#YL6:`#=H/WW%'FEK`)0L,0:>G=:!Q$>C M96V)CGQ2=5#)W4_AX[WC;G1B&MDU;.9=@GO1>@NFCMTK"SC`1W,IN&$)^H*8 MD$`FO3YK`,D^7;TXPC$Y1]] M'<_R%8U,06I"JN^3*?$?*Y]^)P%:S=@\(5#V-=D+U+S$$^8P5T)5(#B02!G9 M067%\J+"B_@M'3E*'G(E2!OG5A3J:*$2[8-H,@]4!@O*E,MTO13C&M`VD^]@ M5<<0=P.%0<'YB-@^%XA06.R#."$P/B7Y3$Z;-1="EV@7XQK%"%1,=5!-)YTT M4ML^C@5B)+>4X@\M;T-:3KO@I-DE60SH4,T(A'^BYP$.#NXH")(\[6ZPQ`JM*`DLLP@@` MEH@IR!=#:]W^AZY>A8,VUDHWQGR5.4B!#P4E!=EX5(NGG.9D@">A@@V^5)P= MP$B^D4?M><-,7'&SL.D0-Q$K-V-3^74*XL-YV05B!\K(D*S0Q3;4GA)5AJQ] M6-=ASN5\6!6U@6>]@Y$?ZB0XZ/29TXA1/0IJ\=M/N$O1:37#P9['5E)ET[J^ MK94:-62#LR6F6)KN1\H9#/?O[Q?A:^8>KX)WBSS')&!`I>`\(7)5RC]OM*/I M!B[R-<=S\",KRF'?58RX6ASJ>E_^,[R>5+DJ5TR#G-,NT%9S3'3_J-N!_\*; MI_1+_^PX<&HG\!E_?-9W)]_T'1D`PQ.>M#L(_AQG:[1XP:O' M^*U2*.%?[H>]Z`@_/,(/C_K>=_:<]4\'UH[W^T>@+&W^^IQC%;P!#G&`D[/. M`(8Y[H6OPL9@D13MF5A1H':/K;CQYKX'7L6E.H=MXZL!Y7#YN!F%$^YVR8FL MSZ*V/;.Q?T'#(GGNJ.JYK!J)QBY9K^+/E<1_&($LT;P^%DKMH"G30I73<`LQ MQU(IOP6%>`('R(#)4%&*!I-!R>9I!XIH,WNPNL\H4%H`"S8#K'3JD%K1`0"Z MAUWZVH`H9FX>Q:7H=XP&9\D,O@/1MRH4IQ<=GYWM M\KEIK2>1#P?A\@98W_7@9?/:`QQ(%=OIM@%@GTCP6M`!TV/:.I88UH3&ZV.J/7L"M,5J5V(/U8I9&!K1[R(P M>R==O8S7+QX&Z_\.J,)O;^#5P^]VPJOKNXMQ>#/\>?C&#U2BS@\[R;/7&8.Q M?](DNCM.Y%AY8G4\!7J%/1\G:(S-+F2,Y"2_6KA>!>3@[)HF@90,JD1A%2^, M%/H;JE6RE(Q3SUF-=M-[28]&N6>=*:'#:5WBNE^V6/5%'&'T392(B/8#W(;R M0W^5539`J:2FNUD.8:HLTN\C;U2N3NV*=+UCRL'KPZ261LHQJ'6X:6L*%TJL M^3L!8+BJOM3,;T@IU95+T`EP8)F92U!`#KBZS((9!6:/!.B>E#Q";#U`&0R. M"Q4I,GNP(VMO0X#[0D7<'KG!"\U[=US70=VM?H_@EEUASAR;),0L9-HU]*SS MW!MX[^,J$[(-X5I)<7&!P':CWE$W(#.2]K+:26MZ+VYE#31&L:77)&C`034Y M5YW\(0Y@EMJ>5I6%@%^F$_0W6,[YU,ESQN%"5J:-JM"6A;8#SBZ389((E'6; ME5#CV`A,-IB5MJ@"`AL\HO6KV+QR-_>-XA$RRHL1"!L%*0I8XI&9Z=:;A9!/ MAX25G%-1:I6=XD_)05XQ:0:D#ET5MLAGWX+L\$JQFR6GS4BFFXO=5BT"SE69 MJE3ZG]`".:Y@0N!-^9J0`6O0@$#QY5_4]&O_3Y/-R/=U>&Z+7R#DO^5 MX*_T$!QB!XZ*Z`:,NI14N87.Y6;!!^A,;+0`=!MC0!%>+:2W)0,G5JAB$HU3 M&M65'M*<[&14,4(C:Z]#82KPXU]HYS%\#%QXO309&_PM5=I#"0J%'G5%+]Z, M[MX._TT-:XKV#3I'9MC!AF&)3-6'J_PB#T'#%&;E%#I\^(K+V\DS1Z&R M5`4^*-L7-A"%5A$.LYKD,S()DRIO\1Z8EVQY&'Z>FG*_B#\$$7-,7HB*KN^7 M5FZN"Z8\4NQO72HD<8J4TJ<8JTXIM@`@>$QS'=7K1AJ2.DF%?DKE;TX?,B7G M(4V"D0HN25'DS_&B>K;NBRZ7)CJY+H!3ERRH>RJ3"R"D7_XCL&\QUUNJLV27 MMI$'['J,4;Z<6G-Y>>XE!#FL'@D:%CXRB9Q2,%75D2GP^'`^4)`P7!$!"L\. MCZ0N_JQ=R&!CKX2H!;N,>M;=/FK];'0=.PQ]*A&96T+8D*=QD0LN&`F@3DNN M>\^>8.XTP;8)D*/J[C@]93")D57E;1B$&Y#Z659\B0%ENAUG4_EOQY;@9IMG(1<;`UPV>F4 M5*1HJT?5JDDK;!E.:+(6)[RFN,:2*@9BNLK8G1F)'ZP"S8G?X"\W+*L!/[;: M+]/;('X0IO>[R@M'EJEZ%1YR9U#A+#([8`0EUCL$[583EON
I:K84B%?7 M/E(CD/$)*Z2;]TP9,/T0&[OF1'T#HKZ^8&![-9B*6(&19E:48Y17!'M14T=L M].^$>T=6-"NIUDHM$@-[4",?IIMB:RBS*3#`LHW!GO'ZGFSS'.C0%$U=)U2$ M7R:?G+WWV,2DEL^TT5I@G=66X'+*1L&9K(#21H/`<>?DZ)O`,@C$O]$2P-E" MIDMI@Q@3U&.[S+Y(F:])P6+*]5VT_>CLL,2K(A^D@ M64TS]ARCO5Z'VX&%;X;<=/G#S<75>*C3V[`?,R6[#2_#FXO;=]>W'X97YQ?A M\*?A[5L_6)8[>+TP.A;019:I6@&U8DL"\D8NNI5)@1*W_H5YZ)J92+$Q-\,J M#L0))2!;QYKW(>=3UP;.DU(_*3'Q";-880V?DF?5$@B/SQ2T86ID5QZR!HTB*4A$6"%/B2"[WK^]'GDNT)P@I9]@>8\JZXS.EY0YB@6,BT5*N@%6RJ5V M/KAZB6E1?5BQZ/[-M8&(YF4XA.JX*8M3@20T!):)UA$=$Y/3R`Y:0/TCI-]2 MH5KNSF/.WC^0]BCS1R6'%R8.%-.#L6=`P:6%F63H]A5WE+%=@QFW5XH++%HG M3)Q1(B%78KI*M>=>$O=YKJ4=M5%1O[AZV2E\RDLP+33>FH:?._9>:8W**%MZ M;YN2;1XE&$@P/)F7CL4(ZECMHGIH;3/R65:X;-EEUU35&G5JHZS&5TFG)^$-8G*<@KN&05U MZ3=CI1>:V&V=U])--F*H7W\OD*:??*F)O/@XIFH/JDI^4K-&J8,:0_8.0>YK MX)AD>.5L,Z3\?/QD;=<&X^!0,N\Y)14C/0_HLDP60!4HZ$((+W%R9T'+(WH%.?=/)7T'UE*M"XF\-J]K,=7X_9A/L'?8XW,%"*?NT M?AL+:7?$&Q82;&8A3;ZEBNM"QF6=<_8P3$5I.TZ]U3;(!+6KU%;1LJ.BYG59 MI75I0/%F$R8*S%Z*$ M:3Y79>W5HHXZ)WVY+'<-"6PZT[ILJ)!B;T]U,7IV,I[M;W;KG19N`0)!DB\%W0X"(FB]?$_/3PIW@IEC="+[_)B MEJ25]9?:;"Y+4C,UC\B!\Y'O8C!&AK--(0D-T0B-I@SA6:GT6+#-$BK(_%UR M7U#\6(_-&LB<4G>#>W%HBU9E@`HD,_<;W%3/A\AU& M)GTV!;NUQ2[-T`B?3$E?NT^>J7\` M[0S(<9:R^0^VL0=/)3@CL'+L]9:8C9@5^_XR_DJ9XH$V)]GO[D,+K,KI_W`? M6J"=7;O[T`[M8?^?\Z$9.Y<*5&DB6'2;^-"].)9W5#S-]=;H5O3>?>9B`WS^ M=+"!I6O7!'6R[7M7C-0FI977+,J#<(EV7[;0-]7?D$*>DM,!&C=I_BU&4/:E MU>V]ZGZPC5ST/>^U^L14M!:3`JR>,:X)PK:8&UN[WI`*8^.X!\S;5&4A`$B- M\6IFGV0-#U&:YQI&+>XSD#?%UJ"%1V]@RS.C8YZ:CTA,'`:]6XZ$+9QH\=#. MS\!S?OI-@3S?GT5M3`Z.MD9JAP"?*U:6`'#8@3L$FH`+C'BLI+YHBLMB%H(! MGU0IR@,#Y\XI.*B:[8X6*77HSTYD7RH4;_7L\UOHI:"!MAM1!1DP)B MF,>9&E%F%HY:X;R\/AM)7%>S3!WUZ?7UR\'5V] M]V2LLB&K+LN9&@36FK9`FV6-:Y+I0LYX" MM(B*"D*-UU0=F5VE>&S6.I?4:,NN8R[-TM85;JG4G9E7B'\3KB;%QP[:'I5L M]OSRUO!8>3=?EZ;EWL2!O]0-%W.%9%&3"<(OGCY+IMJF2K3=ZI%DRI@%7(-7 M60J:6WE2P9)G`8R[(I5OS59/3KQR6YW$Q@W`J56QLN_`9$%],FFUQ1%KID-D M_5-%;MCPK]XGMQ5U+*R5]88A0!/C&G:1BP`!6?C+)CP8+E"2?9C;W0;NL;6K M;N$IS6XX@"6QVI.K52S3P3%FO-WM!?9;Q03V97=I`:S[3*/N4RJ!WMW MYI";D:!'HY;7YMZ)%MPW(Z$,J;;HXYFJ?=YAC9>SA8-+OM26_'+2)`"C'88\ M>JJNFZ(&F)7);.Y-\CF6\G)`Q+E:'RSH)^07\3)\U\'BLE;%6YP1_:BB#X4#8/PG@35>Y%HK;`!?P.`KG"3TLC8< M7N@R[!T>1;U>7SAI;0IZH]\_CHY/NZYURFK1HN1L>]QH\[4FR5 M)>C27:LIZX6:HF,K''0&FC7[#)G]PRHGUFU*E$RP#U`-[,3HM-ZIO?3!S8*8 MSFQ&F??)0Z(EL\3(_X45DLV.QRKD4 M!Z4;1=@@![FN7J/24,M5BGTRHO"7/,TD+755D.N)"!&6R%^@_3QY`!TS^8QN M/7;P+.&YW)!UAM05/H;;-3=Q\@J,M/Y@A_7#>M"!1*`N#?$#)0(#%?CO6S;&@`Y&>A24W&!`^S^BK6*Q!D"=BW8_Q(IU^/6SJ:PW+ M=:&P*'^BZP&T9V4ZM*!W4W$CS-3%:X_Y*:J*#R*?4^6)Y+3'A-MXHLS#Z+E` M`\D*U!L,!5;E-9Q=RWVR,;0>/V4#L`RXPK[$3:VD8L@\7S$42\$;+RRQB0A(E9=^$C&=^A3A2H:>@8P:A!$!]J/U/)G&/E@ M#B43AI`!I=)YG@'0II&TW\1X%RKTD$R__)USO=UHC\A3Z4E/HJ`3?228MY!1 M^P`2];[\B@>#>D*"@V8!CBM)@VR/(FK7$":VS5:G"U,^)2(-<#$6$^6HBX-1 M2C0Y<2FZ#&>4Z@X'?]&.`E48`U]MCHL*6!3BSL?/."-S%D]F2!!'PT?@'W#K M480==\+O@9S`#1N-1ORXPQ(>!2R?(V4.K_(.SM4].C@?'72/CD_Z2L/I]P\! M`F]3MK=AQ>>B:I%]?$4/UC[^^&9\\<-'K/!V\2/\M_Z.J0T<4FW@^G.0#IV4 M;C>OS.J(CM`O"KKQ](K5QYKQ0M3YIIJ/)9?!#G4"N!LA;K=S44&CG"/,A"-U MNF:3X*A;J2^>=;E?:OC`JKQR/=OA>28-QO35RB2R+_6,&#]PRP'0NV\I!XJ8 MJ\*L'_SF;IUP?YS@0:.C#;/%;\T*7GDG-\"#^_!A>/MS>/TN'(_>7XW>CG/XH%#J+%\JTU.:T,W,\ M'S/R78TK5>]KB)UB)W&P_^57;!M']7C<&N&>QWF=Q<`AN#;7"_J[^>;\0-D- M7Q#NU0(7KG)A\B)VA4NP!2["H/%V+-O[UFE=EM.IE5R8&VQ7M:>ITTJD;3,K MT&TYJ=_HS=1ZRM9A521`+`5^58=N85YB$B?+0!*93LKBI*$8QY6%F*9J(E]A M>(V]2])@I6/I7M8[.QV2&'3L5F4I\(P)R[:UB8E024]:75IF%WX#E.)>L8OMP>\<7YZHX6YGL7 MHBV_J!YY&J.MJ[Y#`\>,J^VA(:;*'7"W2Q5!<[FM0X_BWYB+#)`YUPMJ)K;! M+E$R+1TUI17#/#'UC=T`=9%.T*F3(V*A;0T[)]R7Z114'#1U!J,EU>VW;1Y4 M6^_+K_($XX(ID%!>--<.WM'_P+?VS^UZ?!7%7BM&"V<>#!?2F'"BZDO;#G^< M0W6ZMU`UP4I,F`:.''SUQU15-)YB#1N`[4(52M>[D*[1U--&-'E[JB"U.NK%NJFG-`Y; M2)VZNC$UMWIJZNZ9$?ZVFC^7+2U0R;O#V\%9O0Z%!E$DP-.">NU03)Z4:A>8 M^,6$\U+_CG-V5#%,'#`PM9(U>C4;_%5C&FI1FDAO(((5MDHYR&<'EH6=P$D"#U!SWH0AX[=P5Z5Q`U\[!2DD2-Q MGTE[`W$ZB--"H:,P>$8]PA)#<1@_X7/D.K6#(:2-G(/1.^'84Q\RN`HL"2UC MH+N<"O;,5&8$I\)G(DV8<#I!>!&]U#RXV4@'*(3&XONYK6JA*`C1$8 MLA\8=<]I.&E3"4M3%?2@!<.`*(IBC2A>G8(=E]9S6PB96"?CLUO&G\@2:E8` MWSR@C8_.J]2]IMP*#W/38Y0]3IH]/NJ*R7)]I>0$FR'\]I@M%2Q2-;^(G=J1 M:&G*=)'YHMX_JU_X$F=\S2ORE7$G$RH&$$@)+Y2^2[?HHM*M([\I-,GS\>*9 M-,G"KK3GXI?=L?HG8C768CDC(Z"X$:4^L#Y)9Q6Z54&K[45;>@8WZZ8 M:5%NH+W?N5ZG#@50_\&)^,RL#SOG0HD$5X2X[OF29XE,6S5'.7SBLZY]7) M#*>$>?);>^P5VQ)M&K$=I8U9DU0.8MI^#*I@I%=JMM9`RP`*1%U1D%SER>CD3 MRZ'J!C"%*@#-:R7YGDC5"D0&*7DAREEBGS!.5R63>49T`(V:QIBA M=L01[H1R4I+9NIYV4PJ)%UP@WT:11W=AT:6<6>`O*%(5(3EWNA"Z+%3@YHTM6J':4JKG1SF#?J$#@^CZ4[GU@9!2^P M(Z5TE@'K!L_6_$1Y[20K:X^-EG:'5R#S06?U8LW%3L0$ZT0O4;,)S@_3@B3Y M32EBGC,^-8Y)43.K0%1XOZXX0!VK?=/-`H$X.^#>``P*";9`KLK"+O4@$T(4 MN;%8[=%>]8(DNF.Z58J+S##Q@BBS%=S8#L$T\^+6K:`WE2-7J^<87/G1[GA! MS=Q&$[8F;CHMKXE)@E'01.SV+ZD\Z0TU#26?-P6.-;FD)G8]/2YKBITGG-A; M1]@$ZC1-)<,#D=3['%"`PP$46W#C3068@J(V$M)%`+";="PL\`;=R1LWRU MZ,CW+$?(L@-U]$1.JU0/`B*L5!FR9`)*ND'40Y0SS1]8VUV7ELB%']XW7S<+ M4QGI.3C=1-?LBN$>1?C(D=P7RAC0I/*P[TH;C%_F`O$\S>3HTLTLK3!?BO3^ M9+>1XDQZG;#+7$T)@\3`,1P@F=JEVML$:?["KC#P(J"IAF-/H+F`=7O MUR)$_!&YD%6W-]903/`#>M!8`E;!TUA"Q3+16,P)V:[3:JO)GFQ,8.C+!8K* M$C`)AG9A5<]^U&A1YPX0?"L1^YQ@?#AD?)!I)/;CXLDM7&_191G<5/@\*QV% M[B'F-L$@$31=2GZ*7?6)H#Y-*6RI@XXRMG!9NTBY[AM))M0N0_P/N>[,IFLN M/U#7.D$;S*B,I("==;S9,:@=(0$?A;(N46F/YJT$>GZI@QHZYX[1IL8C&"Q%AD<&J/"`P=*Z*!-9' M'C7BU\C"(R!I`!TG443J%6-[EAYX'$M,?`--!9&#UF+`1YZ4%Y_(W"6?81%8 M'5&,,VK"K!;XKBJ%L%J4*"G@H.1NB39J MVP9_#[W%9Y'*+5"*?=/1U654W5D,Y<,"VVRL5P%3*=TL5CFC)L9_23BM]ZCI MK6JS)(M[9OSR-M)\VQ#&>-*H:Z'HR^(,\!7L16<9J>C&(7*I@A]6]0MF.BI@ MC_RYFK$:*[#MX[%=*V+]#G@4ZU/?:U(S5V[/@7XMLJ*J"6C:[;JE/K84^6\P M_I+5P([(*W(NKTQ$]/>M4@:F-00:XPQJAXQ!OZ^H=04J5X64W*0$SYF MS84D)R[$.,.F6PZ*UMTAZ/)-0&4&::Z@&YN6`0Y9RGRFNN?#.N5HHMPHA-;( MMB4H9F,[Q@V#&(Y53>JFJDPOR#:`I*7=Z([M/'HA5F=RSL-/&&4L)5J-2;.M M4L$555E.>/V2"F0\Y&@;Q.Y6V,=RPA7M-"!(GM:-Z"5Z@(+A2AV)1:1/U6XU MM=%E57SG2R$L]$?)<4I40!1K;2B!>8O!H$96%E0@O7,FJ9U6.Z.ZL*[L5UK] M:ME#K%U=DEM^PD>/A0'A3LIDG-ZH-*^2_;@];JG7X,)2 M6;8Q<_ZO'`-,!9FZO5,__AJ+FHSOAG?<87O_CEH3>4&Z5B1PR*]L>B.WNN#M M%I@D?9G",?=Y/H[N?`[>-.[4)P(XYO;.H=W*,37-D MS/W>273:/U;MW!U+TA]#J5$V.(D.C]4Z!J?1:>],7G=T1&4PJ'_>LA&K`3#" M^5K?`R"/6/+I`SN[&_I=A]@4N_VQBRGAB_`FW(97(\O/WQK2L"=;W>U3F*4N]0E`I>@V_'%X^?$B_'`Q''^\)>HW;B5_5G&L#Z:!=]E""L>3>3)= M4]^]G6K;MEDPRJXQ9K]>_T0 MCSI8>N+F`@M]#<^!MHY'ND3T>'AYT8HK.D)F:!70'F*>+[K^MV.,B9JQOB<2 M"]_OA#<>[/1=E5[-FTEK^TN'R%4CF[FYDHMJPLVA"'OZ"@_@2A]3U3TR\?6! MI0S.3@,3;RWD"[_HGO;@9S\Z/CSUSN2X$UZ/+ND(KH9W'V^'E^'[X5B=$Z49 MM1P*2@/#6KR*B9W>X52:R13L>6WT1`L92>//!;*&X6;K"7P&,R/3!6 M!F//<7C5V4ETTC]C-GU\UO._0S]!X[=`DX^[V!OUM*N^LJT:-D$>1/V30_PQ M&'2#CYE$TUEO]`$[4)PZ0QH#(MFWX;!1\MKO'T>'760-^_U!U!OTE.RR19_= M*M"Q!(>_-)."$U!>4*@$2?ENQ*PBO'YS.7I/1>/;D8ZH$C"Y2E44NS:ML'9` MN4V?_]]"/%Y38=9D=?>*+!4-Z1A/@;?_N'M,=_IPTMZ^_]L^OR_Z]=ES<(H?GVIK`[48A_MOK];]'J MUVLJHCTL+SSE[_[9-/AKF@;_MI8PK21^3$$4'(1V;MIE5VS*K]- MJCA=P`4]"#^.WX;[>ZB'OU8!1P`,3/\'48M(TITB21[VDV6W_M==K*(^DC4; M(#>_9ZQ?_KVT[8[*VN7YQ78P8'DC:X-9PYS*?O8;2W/(Z8!R7'"5/_><-AU) MK^\8`3?LF).-/&-)4U#9INBTG080,N.)W`UE7?[]`UTWKS#HC5OYY24VQ$9D MWXC78JN**\M<^.I;/_WA)28\[YK8S%8*J;B[[".O3R.3=: M%AJ09KO=9>M';4:7E@^;[2Y>O*)O>/$PI-WVXD4W[N#LVFQV>;&-Y>MN59OU M149K_N8%Y@V?7.]FW=AT.UO-'-YD31:/ALP]S_#QLFT[]H_ZIZ>=\/TUL9./ M<%KGX=N+R^'/X;N+BP:V4FX[,A`N.EJXD%/VL)ZB^3D%@[,9I`PH0-)=L#LDPT*NA$4KV/4+<_(-U^VPH/0C.,@6%O=[RGI:<,<#4: MRZIZL`WT?BIS%"W>'&+_A8>HSU!& MTN/X=_QKM7.?3;Q,KVY;R8L5=$^P[';"J^L[`.3-\.?AF\LF>K([..N-!KQL M'=7$V$F*:7V+HA'].2P%VI<7N]UOMJW*/]C?;)E0Y,X[IV:]W]?C3D^\9>]@ M%/#O1M_?OFLSJ#_M-D&LS:#@T5LQ+IRJP@F],VH(_E\%7Z#/&WF947:;M1A5 M`U'O2#<0\RB3-G+HY"=;IW^C193_W:(P-0R@[`DO^,38&E[PD3%'O.`C>W<7 M_./EZR3K1=MG.]N$(@/>WS"&0/LWC*"!_QO&T&?Q6];12"5?OA$\G:VC-)K? M7G(B+0/L>APMG^]^%BT#['X0;2O8[11VLD:V@J/798KZ>TUSW:_!5R MPGA;%U$KD+[>>/JWC.6D6S;)9%N[>=8;X[9U\S2#OR[+ZKO_`U!+`0(4`Q0` M```(``UE;4?SW$M9R0$``$H:```3``````````````"``0````!;0V]N=&5N M=%]4>7!E&UL4$L!`A0#%`````@`#65M1TAU!>[%````*P(```L````` M`````````(`!^@$``%]R96QS+RYR96QS4$L!`A0#%`````@`#65M1QN.*CNK M`0``B!D``!H``````````````(`!Z`(``'AL+U]R96QS+W=O&PO M=&AE;64O=&AE;64Q+GAM;%!+`0(4`Q0````(``UE;4=ID/0C=@(``'0,```- M``````````````"``<&UL4$L!`A0#%`````@`#65M M1T%19D4N!```]0T```\``````````````(`!:!(``'AL+W=O4?+ M.74$``"4%@``&```````````````@`%M&0``>&PO=V]R:W-H965T&UL4$L!`A0#%`````@`#65M1]?C"S@1`@``_`8``!@````````````` M`(`!&!X``'AL+W=O&PO=V]R:W-H965T&UL4$L!`A0#%``` M``@`#65M1Q.GJAN?`0``L0,``!@``````````````(`!X2D``'AL+W=O&PO M=V]R:W-H965T&UL4$L!`A0#%`````@`#65M1\%GHT&B`0`` ML0,``!@``````````````(`!8R\``'AL+W=OKHP$``+$#```9``````````````"``3LQ M``!X;"]W;W)K&UL4$L!`A0#%`````@`#65M1R/9 M72>@`0``L0,``!D``````````````(`!%3,``'AL+W=O&PO=V]R:W-H965T&UL4$L!`A0#%`````@`#65M1P7."FZD`0``L0,``!D` M`````````````(`!FC@``'AL+W=O&PO M=V]R:W-H965T2RH@$` M`+$#```9``````````````"``4T\``!X;"]W;W)K&UL4$L!`A0#%`````@`#65M1W\GXH:@`0``L0,``!D``````````````(`! M)CX``'AL+W=O&PO=V]R:W-H965T&UL4$L!`A0#%``` M``@`#65M1TS.%,`4`@``XP8``!D``````````````(`!K4,``'AL+W=O&PO=V]R:W-H965T&UL4$L!`A0#%`````@`#65M1QHRXC2F M`0``L0,``!D``````````````(`!KDD``'AL+W=O&PO=V]R:W-H965TUWMGMI0$``+$#```9``````````````"``69-``!X;"]W;W)K&UL4$L!`A0#%`````@`#65M1Y,T8S;``0``>P0``!D````` M`````````(`!0D\``'AL+W=O&PO=V]R M:W-H965T&UL M4$L!`A0#%`````@`#65M1TG,[/<%`@``\04``!D``````````````(`!GU@` M`'AL+W=O&PO=V]R:W-H965T&UL4$L!`A0#%`````@` M#65M1ZUH;U84`@``<@8``!D``````````````(`!D%\``'AL+W=O&PO=V]R:W-H965T&UL4$L!`A0#%`````@`#65M1_$5!_]>`@`` M8@D``!D``````````````(`!'68``'AL+W=O&PO=V]R:W-H965T* M(>E"^@$``%8%```9``````````````"``=QJ``!X;"]W;W)K&UL4$L!`A0#%`````@`#65M1_<6LS31`0``,@4``!D````````` M`````(`!#6T``'AL+W=O&PO=V]R:W-H M965T&UL4$L! M`A0#%`````@`#65M1VV(V]GI`0``#`4``!D``````````````(`!]',``'AL M+W=O&PO XML 13 R33.htm IDEA: XBRL DOCUMENT v3.3.0.814
7. ASSET RETIREMENT OBLIGATIONS (Details) - USD ($)
$ in Thousands
6 Months Ended 12 Months Ended
Jun. 30, 2015
Dec. 31, 2014
Asset Retirement Obligations Details    
Asset retirement obligations, beginning of period $ 3,606 $ 2,437
Additions to asset retirement obligation 0 859
Liabilities settled during the period 0 0
Accretion of discount 128 320
Revision of estimate 0 (10)
Asset retirement obligations, end of period $ 3,734 $ 3,606
XML 14 report.css IDEA: XBRL DOCUMENT /* Updated 2009-11-04 */ /* v2.2.0.24 */ /* DefRef Styles */ ..report table.authRefData{ background-color: #def; border: 2px solid #2F4497; font-size: 1em; position: absolute; } ..report table.authRefData a { display: block; font-weight: bold; } ..report table.authRefData p { margin-top: 0px; } ..report table.authRefData .hide { background-color: #2F4497; padding: 1px 3px 0px 0px; text-align: right; } ..report table.authRefData .hide a:hover { background-color: #2F4497; } ..report table.authRefData .body { height: 150px; overflow: auto; width: 400px; } ..report table.authRefData table{ font-size: 1em; } /* Report Styles */ ..pl a, .pl a:visited { color: black; text-decoration: none; } /* table */ ..report { background-color: white; border: 2px solid #acf; clear: both; color: black; font: normal 8pt Helvetica, Arial, san-serif; margin-bottom: 2em; } ..report hr { border: 1px solid #acf; } /* Top labels */ ..report th { background-color: #acf; color: black; font-weight: bold; text-align: center; } ..report th.void { background-color: transparent; color: #000000; font: bold 10pt Helvetica, Arial, san-serif; text-align: left; } ..report .pl { text-align: left; vertical-align: top; white-space: normal; width: 200px; white-space: normal; /* word-wrap: break-word; */ } ..report td.pl a.a { cursor: pointer; display: block; width: 200px; overflow: hidden; } ..report td.pl div.a { width: 200px; } ..report td.pl a:hover { background-color: #ffc; } /* Header rows... */ ..report tr.rh { background-color: #acf; color: black; font-weight: bold; } /* Calendars... */ ..report .rc { background-color: #f0f0f0; } /* Even rows... */ ..report .re, .report .reu { background-color: #def; } ..report .reu td { border-bottom: 1px solid black; } /* Odd rows... */ ..report .ro, .report .rou { background-color: white; } ..report .rou td { border-bottom: 1px solid black; } ..report .rou table td, .report .reu table td { border-bottom: 0px solid black; } /* styles for footnote marker */ ..report .fn { white-space: nowrap; } /* styles for numeric types */ ..report .num, .report .nump { text-align: right; white-space: nowrap; } ..report .nump { padding-left: 2em; } ..report .nump { padding: 0px 0.4em 0px 2em; } /* styles for text types */ ..report .text { text-align: left; white-space: normal; } ..report .text .big { margin-bottom: 1em; width: 17em; } ..report .text .more { display: none; } ..report .text .note { font-style: italic; font-weight: bold; } ..report .text .small { width: 10em; } ..report sup { font-style: italic; } ..report .outerFootnotes { font-size: 1em; } XML 15 R25.htm IDEA: XBRL DOCUMENT v3.3.0.814
7. ASSET RETIREMENT OBLIGATIONS (Tables)
6 Months Ended
Jun. 30, 2015
Asset Retirement Obligations Tables  
Schedule of Asset Retirement Obligations
($ in thousands)

Six month period Ended

June 30, 2015

   

Year Ended

December 31, 2014

 
Asset retirement obligations, beginning of period   $ 3,606     $ 2,437  
Additions  to asset retirement obligation     -       859  
Liabilities settled during the period     -       -  
Accretion of discount     128       320  
Revision of estimate     -       (10 )
Asset retirement obligations, end of period   $ 3,734     $ 3,606  
XML 16 R37.htm IDEA: XBRL DOCUMENT v3.3.0.814
9. DERIVATIVES - Effect (Details 2) - USD ($)
$ in Thousands
6 Months Ended
Jun. 30, 2015
Jun. 30, 2014
Derivatives - Effect Details 2    
Realized gain/(loss) on settlement of derivative contracts $ 976 $ (57)
Unrealized gain/(loss) from derivative contracts (1,209) 170
Realized/Unrealized gain/(loss) from derivative contracts $ (233) $ 113
XML 17 R9.htm IDEA: XBRL DOCUMENT v3.3.0.814
4. FAIR VALUE MEASUREMENTS
6 Months Ended
Jun. 30, 2015
Fair Value Disclosures [Abstract]  
4. FAIR VALUE MEASUREMENTS

The following tables present information about the Company’s financial assets and liabilities measured at fair value as of June 30, 2015 and December 31, 2014:

 

                      Balance as of  
                      June 30,  
($ in thousands)   Level 1     Level 2     Level 3     2015  
Assets (at fair value):                        
Derivative assets (oil collar and put options)   $ -     $ 596     $ -     $ 596  
                                 

 

Liabilities (at fair value):                      
Derivative liabilities (oil collar and put options)   $ -     $ 39     $ -     $ 39
                               

 

                      Balance as of  
                      December 31,  
($ in thousands)   Level 1     Level 2     Level 3     2014  
Assets (at fair value):                        
Derivative assets (oil put options)   $ -     $ 1,766     $ -     $ 1,766  
XML 18 R29.htm IDEA: XBRL DOCUMENT v3.3.0.814
3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Narrative) - USD ($)
$ in Thousands
6 Months Ended 12 Months Ended
Jun. 30, 2015
Dec. 31, 2014
Impairment charge $ 0 $ 4,428,378
Potentially dilutive non-vested restricted shares 900,000  
Potentially dilutive options 349,650  
Oklahoma properties [Member]    
Impairment charge $ 1,349,693  
Properties sold $ 7,249,390  
XML 19 R28.htm IDEA: XBRL DOCUMENT v3.3.0.814
1. RESTATEMENT (Details) - USD ($)
$ / shares in Units, $ in Thousands
3 Months Ended 6 Months Ended
Jun. 30, 2015
Jun. 30, 2014
Jun. 30, 2015
Jun. 30, 2014
Dec. 31, 2014
ASSETS          
Oil and natural gas properties, successful efforts method, net of accumulated depletion $ 90,305   $ 90,305   $ 91,766
Total oil and natural gas properties and other equipment, net 90,388   90,388   91,870
Total assets 98,159   98,159   101,803
LIABILITIES AND STOCKHOLDERS' EQUITY          
Accumulated deficit (17,826)   (17,826)   (14,133)
Total stockholders' equity 38,819   38,819   41,799
Total liabilities and stockholders' equity 98,159   98,159   $ 101,803
Statements of Operations          
Net income (loss) $ (1,004) $ 256 $ (3,693) $ (1)  
Net income (loss) per basic and diluted common share $ (.08) $ 0.02 $ (.29) $ 0  
Statements of Cash Flows          
Net loss     $ (3,693) $ (1)  
As Previously Reported          
ASSETS          
Oil and natural gas properties, successful efforts method, net of accumulated depletion $ 88,955   88,955    
Total assets 96,809   96,809    
LIABILITIES AND STOCKHOLDERS' EQUITY          
Accumulated deficit (19,176)   (19,176)    
Total stockholders' equity 37,469   37,469    
Total liabilities and stockholders' equity 96,809   96,809    
Statements of Operations          
Impairment of oil and gas properties 1,350   1,350    
Net income (loss) $ (2,354)   $ (5,043)    
Net income (loss) per basic and diluted common share $ (0.19)   $ (0.40)    
Statements of Cash Flows          
Net loss $ (5,043)        
Impairment of oil and gas properties 1,350   $ 1,350    
Adjustment          
ASSETS          
Oil and natural gas properties, successful efforts method, net of accumulated depletion 1,350   1,350    
Total assets 1,350   1,350    
LIABILITIES AND STOCKHOLDERS' EQUITY          
Accumulated deficit 1,350   1,350    
Total stockholders' equity 1,350   1,350    
Total liabilities and stockholders' equity 1,350   1,350    
Statements of Operations          
Impairment of oil and gas properties (1,350)   (1,350)    
Net income (loss) $ 1,350   $ 1,350    
Net income (loss) per basic and diluted common share      
Statements of Cash Flows          
Net loss $ 1,350        
Impairment of oil and gas properties (1,350)   $ (1,350)    
As Restated          
ASSETS          
Oil and natural gas properties, successful efforts method, net of accumulated depletion 90,305   90,305    
Total assets 98,159   98,159    
LIABILITIES AND STOCKHOLDERS' EQUITY          
Accumulated deficit (17,826)   (17,826)    
Total stockholders' equity 38,819   38,819    
Total liabilities and stockholders' equity 98,159   98,159    
Statements of Operations          
Impairment of oil and gas properties 0   0    
Net income (loss) $ (1,004)   $ (3,693)    
Net income (loss) per basic and diluted common share $ (0.08)   $ (0.29)    
Statements of Cash Flows          
Net loss $ (3,693)        
Impairment of oil and gas properties $ 0   $ 0    
XML 20 R30.htm IDEA: XBRL DOCUMENT v3.3.0.814
4. FAIR VALUE MEASUREMENTS (Details) - USD ($)
$ in Thousands
Jun. 30, 2015
Dec. 31, 2014
Assets (at fair value):    
Derivative assets (oil collar and put options) $ 596 $ 1,766
Liabilities (at fair value):    
Derivative liabilities (oil collar and put options) 39  
Level 1    
Assets (at fair value):    
Derivative assets (oil collar and put options) 0 0
Liabilities (at fair value):    
Derivative liabilities (oil collar and put options) 0  
Level 2    
Assets (at fair value):    
Derivative assets (oil collar and put options) 596 1,766
Liabilities (at fair value):    
Derivative liabilities (oil collar and put options) 39  
Level 3    
Assets (at fair value):    
Derivative assets (oil collar and put options) 0 $ 0
Liabilities (at fair value):    
Derivative liabilities (oil collar and put options) $ 0  
XML 21 R31.htm IDEA: XBRL DOCUMENT v3.3.0.814
5. PROPERTY ACQUISITION AND SALE (Details) - USD ($)
$ in Thousands
6 Months Ended
Jun. 30, 2015
Jun. 30, 2014
Business Combinations [Abstract]    
Oil, natural gas, and related product sales $ 1,350 $ 3,046
Expenses 269 398
Operating income $ 1,081 $ 2,648
XML 22 R8.htm IDEA: XBRL DOCUMENT v3.3.0.814
3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
6 Months Ended
Jun. 30, 2015
Accounting Policies [Abstract]  
3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Basis of Presentation

 

The condensed consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (“GAAP”). Additionally, the accompanying unaudited condensed consolidated financial statements as of June 30, 2015 and for the six months ended June 30, 2015 and 2014 have been prepared in accordance with accounting principles generally accepted in the United States of America for interim financial statements and with the instructions to Form 10-Q, and reflect, in the opinion of management, all adjustments, which are of a normal and recurring nature, necessary for a fair presentation of the results for such periods. Operating results for the six months ended June 30, 2015 are not necessarily indicative of the results that may be expected for the year ending December 31, 2015. Certain information and footnote disclosures normally included in the consolidated financial statements prepared in accordance with U.S. GAAP have been condensed or omitted in this Form 10-Q pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”). These consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto included in our Form 10-K for the year ended December 31, 2014.

 

Principles of Consolidation

 

The accompanying condensed consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries, ImPetro Resources, LLC (“ImPetro”) and ImPetro Operating (“Operating”) (Collectively the “Company”). All intercompany transactions and balances have been eliminated in consolidation.

 

Oil and Gas Natural Gas Properties

 

The Company uses the successful efforts method of accounting for oil and natural gas producing activities, as further defined under ASC 932, Extractive Activities - Oil and Natural Gas.  Under these provisions, costs to acquire mineral interests in oil and natural gas properties, to drill exploratory wells that find proved reserves, and to drill and equip development wells are capitalized. 

 

Exploratory drilling costs are capitalized when incurred pending the determination of whether a well has found proved reserves.  A determination of whether a well has found proved reserves is made shortly after drilling is completed.  The determination is based on a process that relies on interpretations of available geologic, geophysic and engineering data.  If a well is determined to be successful, the capitalized drilling costs will be reclassified as part of the cost of the well.  Capitalized costs of producing oil and natural gas interests are depleted on a unit-of-production basis at the field level.

 

If an exploratory well is determined to be unsuccessful, the capitalized drilling costs are charged to expense in the period the determination is made.  If a determination cannot be made as to whether the reserves that have been found can be classified as proved, the cost of drilling the exploratory well is not carried as an asset for more than one year following completion of drilling.  If, after that year has passed, a determination that proved reserves exist cannot be made, the well is assumed to be impaired and its costs are charged to expense.  Its cost can, however, continue to be capitalized if a sufficient quantity of reserves is discovered in the well to justify its completion as a producing well and the Company is making sufficient progress assessing the reserves and the economic and operating viability of the project.

 

The carrying value of oil and gas properties is assessed for possible impairment on a field by field basis and on at least an annual basis, or as circumstances warrant, based on geological analysis or changes in proved reserve estimates. When impairment occurs, an adjustment is recorded as a reduction of the asset carrying value. For the six months ended June 30, 2015 and the year December 31, 2014, the Company’s impairment charge was $0 and $4,428,378.

 

Other Property and Equipment

 

Other property and equipment, which includes field equipment, vehicles, and office equipment, is stated at cost less accumulated depreciation and amortization.  Depreciation and amortization is computed using the straight-line method over the estimated useful lives of the assets.  Vehicles and office equipment are generally depreciated over a useful life of five years and field equipment is generally depreciated over a useful life of twenty years.

 

Revenue Recognition and Natural Gas Imbalances

 

The Company utilizes the accrual method of accounting for natural gas and crude oil revenues, whereby revenues are recognized based on the Company’s net revenue interest in the wells upon delivery to third parties.  The Company will also enter into physical contract sale agreements through its normal operations.

 

Gas imbalances are accounted for using the sales method.  Under this method, revenues are recognized based on actual volumes of oil and gas sold to purchasers.  However, the Company has no history of significant gas imbalances.

 

Income Taxes

 

Deferred income tax assets and liabilities are computed for differences between the financial statement and tax basis of assets and liabilities that will result in future taxable or deductible amounts, based on enacted tax laws and rates applicable to the periods in which the differences are expected to affect taxable income. Valuation allowances are established, when necessary, to reduce deferred income tax assets to the amount expected to be realized.

 

The Company is required to determine whether its tax positions are more likely than not to be sustained upon examination by the applicable taxing authority, including resolution of any related appeals or litigation processes, based on the technical merits of the position. The tax benefit recognized is measured as the largest amount of benefit that has a greater than fifty percent likelihood of being realized upon ultimate settlement with the relevant taxing authority. De-recognition of a tax benefit previously recognized results in the Company recording a tax liability that increases expense in that period. Based on its analysis, the Company has determined that it has not incurred any liability for unrecognized tax benefits as of June 30, 2015. The Company’s conclusions may be subject to review and adjustment at a later date based on factors including, but not limited to, on-going analyses of and changes to tax laws, regulations and interpretations thereof.

 

The Company recognizes interest and penalties related to unrecognized tax benefits in interest expense and other expenses, respectively. No interest expense or penalties have been recognized as of June 30, 2015.

 

 Net Income (Loss) Per Common Share

 

Basic net income (loss) per common share is computed by dividing the net income (loss) attributable to stockholders by the weighted average number of common shares outstanding during the period.  Diluted net income (loss) per common share is calculated in the same manner, but also considers the impact to common shares for the potential dilution from stock options, non-vested share appreciation rights, non-vested restricted shares and warrants. For the six month period ended June 30, 2015, there were 900,000 potentially dilutive non-vested stock options and 2,542,379 warrants. For the six month period ended June 30, 2014, there were 349,650 potentially dilutive non-vested restricted shares and stock options. The potentially dilutive options and warrants, for June 30, 2015, are considered antidilutive since the Company is in a net loss position and thus result in the basic net income (loss) per common share equaling the diluted net income (loss) per common share.

 

Use of Estimates

 

The preparation of condensed consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the condensed consolidated financial statements and the reported amounts of revenues and expenses during the reporting period.  Actual results could differ from those estimates.

 

The Company’s estimates of oil and natural gas reserves are, by necessity, projections based on geologic and engineering data, and there are uncertainties inherent in the interpretation of such data as well as the projection of future rates of production and the timing of development expenditures. Reserve engineering is a subjective process of estimating underground accumulations of natural gas and oil that are difficult to measure. The accuracy of any reserve estimate is a function of the quality of available data, engineering and geological interpretation and judgment. Estimates of economically recoverable natural gas and oil reserves and future net cash flows necessarily depend upon a number of variable factors and assumptions, such as historical production from the area compared with production from other producing areas, the assumed effect of regulations by governmental agencies, and assumptions governing future natural gas and oil prices, future operating costs, severance taxes, development costs and workover costs, all of which may in fact vary considerably from actual results. The future drilling costs associated with reserves assigned to prove undeveloped locations may ultimately increase to the extent that these reserves are later determined to be uneconomic. For these reasons, estimates of the economically recoverable quantities of expected natural gas and oil attributable to any particular group of properties, classifications of such reserves based on risk of recovery, and estimates of the future net cash flows may vary substantially. Any significant variance in the assumptions could materially affect the estimated quantity of the reserves, which could affect the carrying value of the Company’s oil and natural gas properties and/or the rate of depletion related to the oil and natural gas properties.

 

New Accounting Pronouncement

 

In May 2014, the Financial Accounting Standards Board issued a new accounting pronouncement regarding revenue from contracts with customers. This new standard provides guidance on recognizing revenue, including a five step model to determine when revenue recognition is appropriate. The standard requires that an entity recognizes revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. Adoption of the new standard is effective for reporting periods beginning after December 15, 2017 with early adoption not permitted. The Company is currently evaluating the potential impact that the adoption of this standard will have on its financial position, results of operations, and related disclosures, and will adopt the provisions of this new standard in the first quarter of 2018.

ZIP 23 0001354488-15-005027-xbrl.zip IDEA: XBRL DOCUMENT begin 644 0001354488-15-005027-xbrl.zip M4$L#!!0````(`.AD;4?R^V>D1HH``&!Y!@`2`!P`&UL550)``-$($961"!&5G5X"P`!!"4.```$.0$``.Q=67/C.))^WXC]#UQ/ M;,=N1,GF*8FN8\)'N5;359;;=G=//W70(F1ABB(U(&5;_>L7X"'Q)@""LN12 M/;AL$D1^F4@D$D`B\>'O+W-'>@+(AY[[\4@YEH\DX$X\&[J/'X]^O>N=W5V, M1D?2WS_]YW](^-^'_^KUI"L('/M4NO0FO9$[]=Y+U]8`GT9D3B7]6+>D7H^BSCMOB29@7:%B#'15D>2^K,FJ MK!B2(O^BGAV_3#'-2RO`)1*^38H62A+B"0WMA+Q^L/Q-S01@ M3?D"$OS6#M8?I`L;)]'+3%%86K0?%85)41ODROE@;'#VLOPC_\BQD(^"'G#9111$%@$Q/9\V["0U;=X5/@.NG?J(\+TA;V<^29YG`"0/ M8Y%6R_G,'T_W5K:1M0I*A)2\$2HDO:>HI-OLK9!B!CH5DK;O0M*V(*186_^, MAYD_KRR(0I]BY"Z6@?\5/`%'^0;F#P"]FB`W%@P\SD%*`NM7-@;SLG#@!`81 M5LF&N&3D*<:LG:Y9.U^M?_T_3,="D]DJ9/3L!?I'GPKEBZ+X<%)*-8WXI!SR M/IF7@U+LBU)LPYS26`KUH!0Y41PLQ4$I=DDI=L52:`>ER(GB8"D.2K%+2M&I MI8@75?34HHJ^EQ/_S***SK.HHF]A464_99M1Q@XM5*DR[N/:@0AES'1ZL++*GM&'M%OK?HP$@7)T^+3"];:._ M5PO#!U5Y3579EM/(8BK>R/R2K?U?:2:YYZ;BH"H_MJEX(Q-,MO9_I:GDGIN* M@ZK\V*9"_Q';7S^8"@Y3<5"5']M4&#]B^QL'4\%A*@ZJ\F.;BOZ/V/[]@ZG@ M,!4'57E[IJ*JS6VPP,J%,9];[O>WTNX/P:9=LZU=PNX;;_$D^N'0XKO0XML( M@JIO\3>S$$W9Y*^_!KV-5-@0NYRW$3:$VW*( MN\V>R38[M!,&7FO>-_[N6#-O;MT@#Y,((/#?AMF_!0[6-?L&Z^GJ'EFN3XY- M>V[:_E>Q?I@$TD1,WTV`:^'Z;A!X@M[2=U:W8.$A+/.WH4"?$?+0A8<0"!7' M/W/M&\PNN@F%>&;_"_$T7O-(R>^@;M7J%JV2%(3U`XZ;![W90[W9WP'RH&YO0-UV M8"16OT3@4YSD\12722I+7F5)D-HJZK^;60CXE21B(82% MN&E@?#<5=&SXA)6V*%OR[35)^4C2J!9UED$&>8QEM::(7@+7FT.WB6RS7/)T MRRI.WF>D0"'0&TRFHX'ZUH.=/D7N_1/6G/R^K-C)TGR,+0%U_VH94UI8F=X;?VJ3$E6,]4I,) MT!)$!#+?IRN^6&(CCQ]#?V(Y?P`+L;+22T(AZFHKMO_OP'%^=KUG]PYKJ^<" M>^3[2SP8T9*]]M+M7U%;D>QOGH.'(PNMKJ`#D,])+E=+B79'!Q,DVU%:F&:"ZPN!\]1-^C[N:6@[^3UM5+%]Y\8;FK-(1,U67](&KR M2'^O\#-Z9G]1LWV@4%,U.:)A;,3([V7DUC4EQ!)/Z`:!*<#BM^\";_+]QD)C M1,0/[##'#D89CG09^KG#]CT>CZRMLUHYEXH2P416' M-!F0 MQ2YRDT27PDF1$8!*E)AJ4!7438`"*>I`4?#+.?Z?4TQ$0!++7H>8#*H/]Z"%DREM=R M\;H2WEO\+'F@=UW-VS.Q\UU!VV%58LD)VR7^"VL!`\LA;M2%YP?^&#IGKOW% M\F^09R\G>&0\(_="01+&?-W"L)NR)AM9AXZ-<@?`J0R^65!SP<#/)GAJOPRC MRB_!`F'B%MG%P+\[(`PMGY.%CK_"AY@.:=;H=\?QGLDU45<>"J/2,>%[KPX, M=^/UU+Z.VZ]."-OC8K?E2:53/553-&5/Y/FKNT#>$[`WQQFX]4B5]7H;4*0E M!AV=:V>:]1V]&EVT5W@3OEVZ-C'>N(@(D2F:.M!#5(TT6H&ADY"F:3(_F'6Q M:\]=*Z(`&6FA@B.J3YF"@FK5JGR8%/TV'ZW#S$!:,.JRA.OU+H,BTXFW!73L5;`C6_\56@_0"?VL.Q`$#O;FEH@8^G## M4)0^T]!JBXM9@HRX&@6=JF;D3L@FLS#Y\=`6C9M9OD/#I--0"O";18)+X$\0 M7`2A!;D':$Z[6UV3G-X@VU^](?E9MEA1)+D5>.L\)+L&;)U^=[!CP-;)/@?& M;@$S,IJV0\#6BM]?.`ZV8PJ19=.8W1E34`4`UVWYEZ;R:M^EI"$E&1!ET-H M`Y4JZ5@]5-78!:A4.S&JJ2MMH/X.X.,L`/;9$T#6(QAAC`CXP6U^\L(GW#`@ M.+_]?"SK6:PU&$HB%O-;UCIBQ6"&<"EB=>-8;G#FVI__O80+ MT@`M]TZ&V4E4'9FVD"AW18:#?&B8`$CC8):+JF61TU"C0Q12:8^)SD3+.@>H M.)%0N&I_;05+9#G1XGV\SG6WG$R`[T^7SN?IU$.!_PT$,\_&HAY/LSL'T6Z! M@&T[T9"VR2KC1M\^L\J<9:2^1PU-8_^;G^6`>,/^AR&_&6E4G@9\98.06<]H M/<4Q3-4H+I-4320::5)9D@$33=PS%Q:TX^7#MOQJ@[RG4%([-P3*[:[\D$F(J#=JV9&M8W!`(-N^.^;55/L6AQK]Q=,`"[_X+16##47P%%)H144*J$8 M\I`/"C8;9`KC;PIB:])6,(JLY!92:ZBT142G-,.^S(WHPO)G+:Q'82_8G]%2 MH-M7,09Z(X6H:_`[K4.E;&V\?'>X132$K`QSG8J5CEAOS>P/Y79\B_>4VB+A M]%(H-2"<=+74-F6H9X>:5*6,].B&5SEG/NGHM363PV$EEQ66B(XXW=QLJ#`2 MSX^SUUZT]<4D@1M0,T3A397@[WSZP!Q6C2*,!"FG[D;.L:XA6&FM^;RQ?(">21FA5^,T\2*D MF^HJ`\J0V!J$E_&IY7OK)25I`?)3%%W5CRK%?N%[B-P)VP#D6`JG+RD9(6IA#$:,\^Q`?+)QGJP MXI\(%U:0FDB)@,:[[K@-;%VO5;X&#^+6-[>)7M2:*"MF@=U+&PYSNRZBR-.M M*R@#LQOR8GN)-M#[V\$IKB>(1LBG[3P*AEUS"[K`_FPA%P]6V3/84Y+KES_2 M6AD,U:S/U$Q-##[*XV6ZHFFO@D]LC^DI)(YK)Q@1UZ6VS0%?EQ.BXV>V#6F"0-E[9S3D?&"I._&FCYR)]X4>SI2>*% M&DJ<8+('#ZE.]':$I.2*C$:+DU-JH6(I7+3<$/;&WT)Q;)P893'[BEZ.)"'# MA8-93\R^62&15CB8M417]2YP,"N(T5<,.AS19@U^ZGBHF):!5R]T);43E*J< MB2JS%L1>93NJS&VNF&)X96OA)JJI7:,M)%IHRJ?`G#:!*ABJ$$O9&@1SX_<+ M>W0B!,&H"H9*!6*=$LA>AI?7W%LO@H8!54Z?9LE18";/T>]-@>39#8"LB>6> MT1E0*;C?^*3>%/A^.!6X`H*:7\]%\N:)\(!@5@)#&0@'P:P*JE(X/"E"$HP* MD?-!FD#<`D?2=@JC MSJQ#IB&..+L_HYEZ(_7-7G9\IF\\36<>+)A5RU#'70K'\:UEZ%IL./9K-P1NE$,RQ+;N]CP>:Y_#J8>`E&YT+?_!ET/ MP6"5!-EB(ME:HJW'Z"STR'T"\=6D8I:)^UHN(^@6.=@QX3%WH=[0.(B. MTW*SS1]7>,RF23,'NR*Z:\_ULKL6(N>9/<7,C>:5]%H!8^_YN1;H!A;'[E9? MV9*\&.<""J>\OEC0)2HY=B^AO_!\&'ERT=%&1=`$,7.6L)9@>WC,JC;(!25U M#9!]LVS;\F-3O7;R2\)0DDL6SRT?3K"QO(3.,N!,)UQUY6/O6#4W.!LH"P#: MJ(J5=U-N$V6C/E:+4QYN69SUFEESU:?ZRA+E#*6K%+U\K&Q5E/$UQSTQ2&)%CFNP*P($&Z.,4:)=BN3:E)&'?2W"&,G,-!UYV6W\JWM*;)(>DK8),]VO7Z4#P9/P\@1(@&(Q:IMDR,J5N4$4J-0 M&+&\-35V$[5<_O[K);%OXVDA8W[HD[*W9F.^?BX`4'F.Y88F\) M3&-[X(,:B9E;1V]=L@X@A!9@14C(4A$:_K61U$R4^6JV(L"Q9;@ MV)VCW'(D!;0XZ3!VH2(])#D4H7WEH>B.ZC!!9^J[S56*O.*LST0L"@B[QAEI M&\4#H^D\+1XYG"5Q_:OSGV[E`#0%CHY8$7Z,FH.59$,8V!?>G%0B+K'`()<1 MI)P4/R!VUR4WR:,#E#@R76Z<]"IW3A@7]+O<*^E5;)900UP@7%\HX_5Y'>*] MSST4P+\$)K0H.0/62%D46O;S8'HNA0\/6G)L&`8=QFML"+"1;ANIP4NWPQB% MPLY_%QC%[:>+1"=JO[H:4\7R570X(;-\578"0I1'J^4"V5N!ZIY%]DZF&OJP M$!(D@,?RRS_/'BS7]ERB+VTF:_6>,@]19L&E3UHW$2QD$YD`8(?';L*SA_8"'E+-`'^;_"K0Z(9 M;P":0\L]"\@5VM#'#X4+>!=@3S40>ZPKQ@6 MHWZ73)?&4_P_+A<.$H*VUE+=NYP,+Q1F&1I]:BR)D+'W'7>'\;3R.B_NR:"N M9Y=_JJBU0<4N)26?5)L.U,VZ5#BVAL7?.7`H#"FA%_R4MV_#& M^6[$:"3A!#P(1*/G2&=D]-O#3]J)V$]RTPO^CQPW?\(>)+G[!=M5A%;8)K1+ M7EUZ,W4C.6$8^>^VWAY&C2H-^I MRV6"W'4H+<`G.]QD^TC,R)Y+X)\FP$J*Q]8R,I1_?R';OY>=1 M<7Y_^%<<*V%#_$;0&H!B*IELKYQ8NN.(W7-2->$,I0KE-L[(B-;1OBXK28Y) M9UI2]02SX-);N[EHJ_L9\I:/LVC[?,OK*]W`8E\#'`[2@FV/*C\W*[GP#W]\ MX3F.A?@=)3,S+ZNC(0C/>B_CRH(H'(I'[F(9^%_!$W`4FHV#'<*K4ETNM5LR MUCJ3\2V(+`F)IW&B>)K2:!#B%R!K(FA6E:2)XL30`0LMHVJX6=AL%2=%4@EO MUL^PL]91B%5:Z^6!FFV/IHES#$$!=:75/S5R%P0RB`QZXX^R$L'#N M(>0]1V>GZA8&DMWHD6L#XMGA3G-NN=]IC)ZJJ-$*S09TAFII3-)#/E#H#"'+ M?0Q[Z_EJ4R1>F#I[MI"]-LO8YUK.%^'$B/BA$^*L`C2G7O[]=&/\,?RFF)>Y MZ*5.0-&%9!4IG;-0^LW#+CL99E:WV'5G[THWV(\OR[)DJDT!7D*!=RJK6^A_ MOT(`K*/#A4I*&0XZ$E49;F&"&D+[=L(NL-NGSM@FS3, M#8(3^OV4J@QB^O'`Z,0(6&5;NQ0I,K<54GY3(:*6EIMLZ$RJIDX+H0+ M,*E]^S)DT3ZA7'0@PX+]W%,I,O&16^7NS(*$O>,2N^)KE[WU,*&&_7?[P'=+ M9*R#Q>O)JQN_EDUH;7NJ*M0U8>1$K.*MG>G7D:0P563G0ZP<+TCTD;/W8F1F M(RO%7/%;,+>@&T9=1NNL2\OY"J=@Y/X!+!0I/OUD\M.-(O^1,,I%J0U8CFQ8 M+0#7I"7J9$7Q$I)H&M<6N[PG8E9"BUKT^!(;E##*L/WBGL#Y60%8AYQW.L'O M1B8LTX4P%(($1C#'VWWZR0G>+R0_6#G@X]$4?W0J#1?!B>LAS*%T#^?`EZ[! MLW3KS2WW7?3@G72'C>KTO32WT"-T3R7YO42(]2P'/N(_R2%+.%W%#V&XGX0+ M'1O0/?KI,7A_1PR)A[F6UF=E?OJ;HKW_^O5">K9\:8J)8W,*7>D2.!86#Y`\ M5_K'T@62^D["Z!4)E[(D!\XAL;M.O,M.3IC,%Y:[D@)/LJ+3(.\D[QGCCF[/ MP7\MPHNB\2_8*.&&?`*.MY`\Z)"_0Q!N%%8B/6(2BTVXRP+A)D?061%8]^"% M`,`UC+\[U@R+YE@:)PB'(40,=,,F;@S_" M0XOXPON0.A&6:Q%9E8CTG31R)\?2_P0S(/UDS1?O_Z;H@_<74=7)@^'[_SV6 M[G&)>;C7Y\_@(M1Y7_*F(922BJ6PG0!&!%XF,Z+9-FD?2U).%>G!\F'8@J0M MYOBQ'W8:7)U$@,3D8W%A:<;B,G"%TA3B$5MZAL$L+'L')DL4QDZ$2`C#GV." MI)XY#"]WCAJ27),+'\)K`;#0?++*.O,<&W-$*",P\3`'%F[P*1ZL_K^]=VUN M&TD21;_?B/L?*GS=L7($I.9#S_;.B9!EN<>S;DO3`*:0YABQ M#SHA%X"P(^'Y0,N.9.(PEJ`Q>/X^S,Y';SD1;0Y!BY(6,8H[A=!]".)P-)W9 M*%Q'WX_=`>&!,``O>`,&Q:U"2B$(9+-K<"9PJ$W?/C2%S'C\`6Q*G: M;ERM@4U81@1K#7&AM'Q;W*1K17BO35PH*M!8Y;V9B]D",#IG#,<)\K^?)\B5 MC-#<&7::9[A8BQ0DQ3U0-D!DJ[("#\#]"&)@ZAR^AMY_WW7Z0,/`,Z(/+M!) M'5@SL6$?HY11'CF_VP:-CY=YZUMSSY7:"&3A)T;8%D. MXN@A;.P`0V4)I"'GL<'T24)_*$8V,)J>E!Z(#SD!/DA"#=[%`X3RBGB=G=`* M2AD89.("_(_>W8\<)0A4[!.4;A&FT`@T==M\:%*V#6*`9PF='X` M._*B42@PNF20?9QX`?I^YN`+@0P&:-"5PQ>!\0+."$3D/2#>YZS/,T220S69 M^JQB`!*86V@'4P(?%@&V!:(L.;R:P<-7 ML1N1/"8@PACFF)!%'((,3OJ7&\\MM6$`)3@1>*@,.DU/"JS%AS.=G%/@J`EUB$D<8%X7R2Y" M#D;:E\":6O^]._8 M(R)/*=]@#2\Q!(`7MP4W'I1$U%R,K0#!G.#E?S(4P+1!U)8G@M.3G<@@+1_Q M@U,@E9Q$.NY.3FH8[Q-.J+G-3;)3C30ODN9\_$P!6$;L*9I.I"CF*N2,'#H) MJ*(^@VD`'`D,41@MC'NA,W"`:<(J"(;/XWL9!;ZIMJ*%99QO]81QQFEL_6+* MQXUWDB_-MXXP!%UBIKT$@%ZT#`F\:Y!4)"$3JS2PO=!60A#AZ-DNFIHOG#HT2] M-NT&<&54[./9#2VDO6L&9M4Q!>B]8QL$(^B60836&'F@DL4Y(3EI71A_4#C_ MM_R*F*1#0<'W[&B<8!F%4)%J`+(&;3J/3P%H\%&J2]M/MN-2K9%'Z;O^H].W M\--D-,6F-D3"Z*"35%-%@("R"X'Z/%0+U\!H"-G?V#-9$5O6YM;E=O893T\/ M[:.^:X,NC]Y%9#I@>$1:A<`G]6>@3:?/;IV1+``K&`PN'C@7Y<RTA1,.BU%!!-[ M)4B&F,$(`.37)5>'U:8M&_2)@SI[=M5YG$_6V6/0!(I]@F<:,/O[+J M^:#3X4LU/N8&\+HV)W/$36S"RA!WLDC\,B^($'"$I&\'@1H#QK8QX9KD.;FW M`0;@3IYR(0Q!N:7$(\UB#-^+GFL.'JS$4PZ+HL%&=")A.@`ZCR1Z*L_XY`\' MT\TS^+.2`PS+83K!V]^$"!Q0:!SDY]I46+3=Q:"KEW!B2XS\9SB:@44^9L>+ MI9K')"T'-ETY@X9#=$V#U/X3G1/HD*3+DI23HV<%5AFD;A1:"PRJCH4"6F.; M[^52]D-/S[CZD2*_HV62@P+>>PR0KR/:@784920`Z8$DK,X?*_[M)\;/4W(- MJ!@GC/=O,'8:1I71HONJI(MXHO`=P)46$KDK3T=OA'+537S8$Q2E3+6D[I'0 M8*'0F^H/+#`\%BD12`L;Z!,/K^?%-HM0>L:B:QF@'R?HQV.,$T$C\MG&Z_+( M2@6^%MWD#[7=*=U6!.H2".59[BP*K+,Z1D_OB?@GJ4T&P'W0H)3AC2`E+EA< M+M\3*F8#?VD1J.B)F4\6?\:A_+2\MSOC\YKQ=EGF<3'O&8UU,'N@&[>W+1KS M[:EUVKFTNA>7)Z(N-%<7LYND5U*'DCRJ:+D@)AMC.[MEA"N:?6+B2VI\Z9L* MY0`+U:$W?G^2\("K[44?V;LT?W="=J0-D#F0['*)Z^(F MMXVJ[86RT"SW+O)O:,N#+J;C1+B$8+-CH,TQ*`RVFE&XSI"8]!#]"L@S>#S".KO,DR&= ML-2(T3.\-.4Q7Y>,?+.SXZXYDNJ%)WX'B?/H.1DZ-YV"G\?:N=KPJ1><@IA( M_A_E&+2QC1U,/=<;:-K#%'@3H#,?%:%`=2E$/@>*+V@U^ALZL@%O&"K2I)^P M?>'-D]B>C/3[B=UMJM*AB"?P]D`B4S'M1KHH=((!>06SI$K7@2Y?L"?9+X(4>>()\=QA@Q@T.0$QAG9ZL._P+U,*;8 MF^3,2<^FR!29Z`8H;LR<2%4X+OJ2`.%4>#TY!*G#K@C`7:%":K`E[P MY@9^`EZL`6+TG0C,#%!Z*_JP4DZ#_6%ZKA..T`]%=P!)\`_=XI"1BCZ_A7NB M(.8%9^`A/[2^H:D)@=6/Y//*!OD*Z`J.+\2T'*XDYV^3Y'F4<`I(]D?>:1$8+1<&N"@5\4! M`JB.T!E5#=(,84;RSL;(+/*IX+LN^BW0'\2T""/J]Y1#&5TOH*38RAT+9]@9 M@ID"IZV/'('0YXQ\5NMZ4OL1-14S_N#XD^$FPJ0,7!K+!,B03Q2-E=0/'-MDZ31E;E,%>EF!AQJ2F&7$LW"7"5Q4G*)NYR M(C[H#7&([;'[:U:HI_<+*2]T(B7OH_3B$)]/82#MQ3-68JRU,+3SQ%0^3447 MM$R@/KJG-F/]PKCW;^)WR*F>'#B69)>G7C<`TQ8N;39&VZ3T-P1.[`=A2M5` MFS&%XR=)$Y%OP9/'CSZAEU##ACEI].P=U*'AFJ-;F6@[H](6`3BM5V2]YK5`-+GDY;CI:]KRB1R4`GB$A2+?L2]79A.R,MY04#`&F(&JK=B9(8!+QN0\<)1B4EE M'_"%6'@B9FZ8%,**[IDL%F2W&U&BRG&5BZIU?6^5D&%@XY4O"(%Q&2`9`UDJ*%99:@`;=H(W.80F[&`31, M":0G14XR4.A@$D#N#ALS!(@:D0H3E3@E6+[GBT/#&L41>L6GU*#B])S@=8&= M1$@,ECX!Q:)M3[CC`RRI-V12B_!*EQ\T7I]?L7=8Y6IQXS(XKEF=@$H=F)$5# MJP7FD&D!I_1DA-28]TQI'!/F\('6Q)X\\MVH4"425S-Q+X5QJCJ$9:!D*XJ+ MV.MSKAS'[WCX@Y=(GJRA2[Y_3`?$P=`^XEBMT(R<4H\I)VJ@%Y<&AYHPB`A3 M/AXIL,\(")=&KY@3S''A"!UC-1@L))2C`*6MCNZ%@11..3L5!/-C0%&&2:A` MLJR,40,WE`GQ*D#37*9 M(\V2$&/68G!K,LNCVYHT@BFW"_CKO^/!(R?;WYHTI,/<2*E!6Q;U:E3`BU:J MB2O9$;5I'D4LA2,Q=/WG,).QR;7>V5]F&]KZ$_Q,\V@73(X_6DPW,#E?(]&R MC(!A9!^)+QR0;W-9CD#7=L@]JFQ^(Q<#/6*6CJZ@:$G)C)BX7^J]@2/TB$BA M1M$8'/8HO;ZC`T_R')T?I0M@A9H"-$ZPO`HJB?Q(&EQ(@9FP7T67),ZJL# M8(=)20Q.3#'9F?;@S08Y:R).#(8P238-B98R;-.,[IPA>Q6DZJC3H2\QBK8Q M;Z_BP::+=#0*`X%L9*(WQ$R+T3'+&BF:1R9K37ASX(3?=6D1O+EGFIM93/$I M1%SCKFL7*9K";+RXN$'62FKCA`&;/H;"DH8NF<&]9CRM M95Q;\4C&Z[-1HG,B'!9G&N%//RM+,5`*$6<EA63-"!PD M+2N"T8R>CP)_-HC122',IBGO`/3%>=,UT.@^>^(W.(Z)FX(`^90HY@;&']!A M90>#4'R@@D@.U7@G)\!SMBB%L3,HL.Q`W0K0Y7U1:4VPJ2V`PE/SL[PE9`E-LB0L;0(E5BB M+UWV#>H:5LK!AT;/#$!8.H6=25IHL)O4V!_`&2LIB'$<*F^%8:P#T"#(XE3'A00AI:@$$5,.X.JRL'#3.F69\B6>DGJ-']-5U*J& M4Q%'>P\*2O\[6TG'?;`Y@E_P+$0R8[RF>5*D((6Z=$RVP@J5RYHC]%.BF.,# M26_](ZY.PVI$>@U'@&1R(F;2('[9G(A84JZS_MC'.$TX/X"PO[QIO:&_)_9@ MH/^>N=ZY@8WJ!8XE_BK=)]!T^F`1/@#C.U9@/#N#:/2+:+=:/[W)B.HHT(-A MN4!4@?6>]_P(V&'Z-)(JO8&U5IX#>_*7-_QO`@[&LQ^/Z$X&IFJ?_52TYFBP MG1&!%`&#WE_>=-[L!;P-!AH,[`0#)I_O4T3W>S%G1A@364[)V^5\Y3\*]66^ MG+N7P`&3/S:&(OH8K,\%U]^=:O>W#O`T*WJE*]HR%]&WZ>492&T91A5H.7K+ M%HP?AZ#?AN^V@IZ7B:.'*<[!,:,&4.2"Q2#:)V>P.+J9S!H;6R`?ZK`MVKM` MSVM"<*=!\&81W&T0O"D$4U7AFDJ7(I_+_W=S-HZ6AA893'#AU5.%H6<`J M&M=(\UP]G]NYRV-/W1N%)LN!Q,/7"MX&`PT&FJR0?;U;T&E94$3_9FTR7)NBB#I=ES55J0QT;I8ZV=7'>)+@TY%`'9M&00JV" M++;(&@J4J_1J/*U_N;!F9;[`Y0=L6RS#\,8?]U2KR?2UVE>Z)&3=<3W6W^R@ M/Q*=G"/"!W:A2SO_M]4MK:`(LK!/\3-6%Q9W_' MI@D^0`.S_>.S);Y\N:%A[K$HK.V)Z\C%^MXA_7"$8<&Z81Z!DX7A0<+/068N MW=J06&`$I6A>&_2)M@H%^G%E'C;_*'T_?? MBZ/>.Q$]`WE-CSW'X][LP')D^)Y>/>J_$TPBNFHS8,UHI9XM9(XXE=R5TD5_ MN&6N@KJ^I\A83!2JF#.64:8&![@OCU*,I$M=VXQ."K!M9Q:P#:QM'X8BK?"/ M[P`IMJVKR^[)>9M*T2>_$ACTQ#NL<3R@4X*5Y"VC'P/WJ:?&6W%`QAK5,-:P M).T68RP?31U8J=LY(_YWVW$#WQY0ZT`G#+GL>]+#X81;HR>4BK6ID^+Y"8*S MYU2?3#ZG+R`0R?MM^]RZ;'6I`QIV"K+#D5DFNR=QOPB$Y-!3'PBC3^G6*\_7 MO5OD0]P+Y9\QUI['>6^?9JK0OVID+1!9XF^Q.]5%CL^LA/0U>8?(X>`,$B<& MWG+WW;5'`$&F4047.*=^>M3"@VN9?_$?;6XI\S]`V$/L&AXDS-!*1J+&X;_+ ML1_8P*.CP'=E/&9`OMRG*#NZQK7@PO_ON_1;.E`75N?TRNI>M0I[2WTSQ&>` M%:JF5KAW"HB:] MV,RDV4DZ!@UIP_8#&[:I65MBD[=\5?G@_!"_^=CY]9X[O][.=J&MFAC.FGVI M8E^6N6)>>*%3[B(XOZ<%EU7S;HAVRN/`MK!,:S3;WD197R*T7=74=7D_T/K+ M6H/'58#K99QMZU-TLL:WA8I6\VGI3VVK>]82:_+@K=)-0]_-I];[KM4Z/9]/ MMRL$'911MGMZ=XBTTWV>J2/'=E_8S]TFV'0A%F((+O M)O94#/QG[NW;YX4,[3Z6EIO.K(-`P3?G7O.E<,[TA+:3<`+QMI-`_4R-YGMI M#,,,D-COF0,M?%>WU:[CA5]-(,KNPC`.@"@"=6-J1WH_B,QS9*MI$0-ZWG;: MR1:!``GXTK"'=.5@>,L@[G-XR]OV1?(@.D/3T744E>WA=>]`PA(YOD3!!+!Y M@U`%A]!AG#E'>%'MJM[:/Y"D=+-R.VU6+?/P,102VV!3]!(",9!#[.[L]:?" M];/=P_TG&:@>V(A:6%5VO(;4EB0UVPU]#IH!)0-F[@+M\SK.^@A<5284CV^4@`>`K]F3B.G)@<=MP"G5`BL@1C4$@W(P] M1VOLZ0\E3#A(Q@B`IAUNX*YHB9>#)(;Q"I$_(U+4@D'[DM0./9":DO-\;PD6 MBQ@W^6PZ#0"("*?8,T*)P[P;!`.\T)?.$]!Y] M6^_BOHG:Y;79P;V(:ZG@4J806?L8KI)?(!C@Y5:WC,V_1)F49:X]](A54SN[ MZ&;#$<84CC`QPA%R:)_L#+Q%X2J3&E/"JG-7X$5=@0@!C-U1X+^D'=2,ZF;$ M9)TI;X5(H)O%)2'F"0,=Y=4M%]VX)1ERMU`?*AD!5+A5.@!M<\M?YGPO`>'I M3SN9MIV?=WTO^D%LQQKG92L8W,FVM<]?`[$4,N<56&_]V.WB:Q$PU9_DX#A- M=$L3UJKER34]^5O:A+)YVB_"NK&KQ*L+ZZ)3MD7&/NUX+1F\.1."\,II\-PZ MOVKO&PUN3[_?>R'C^=YQ(VBV,M?F(@ZM\_/6`6]8[>5$769:@X8ZUN7EWM'0 M*S<5,/+`,!8:SKUWIZ[=M3H7IP>\8PWKW@H1=;N'P;L;'1T^_>%-B+\W/'TO MCV/':IV>'?"&-2Q]"RS=NKHJ6XEQYS14DJ._6!C[4/CY%QF&OXCK?C\>QUQH M82"Q+J/C>_NVQ27`*BXW0O5-!W[<8=>%(5RVKVZK$:-N%4#Y@NZXD@=3ZPKXV MQ+Y*G?]](/8"Z5G45&!1H:2[O_#E(EH(3.NQZ`MV^=!99+K-*9=RK# MSG_TDHJZ:=LY7<+91K2((,&+\!/$S-:.CR-,9.W[(1?EG;CQ(ZS@T1)V#R2\ M[U%!=,YHI6*$8SEPDOS8.7K`3+S"_+K-G""6PH\P24#6F(!Q`PPJ&Q3@`)4GD`J_ MN!?9!=I)L7D),\)':?=UHHHQD[A>*M@Z$32Q$1(K"]1TY33G=3#%2B M-M#;3^@)I)/8A.7I]*K9M9$W3SA$\Q;M7A]+.+V3$O9B\ M5_OJV%!8Q755[]RYZP6*HP4:(Q`%5=9`C9=X:DF#JU:I6D;64_UVHJQQ M;J;>Y59SW#DYWUZA4.N\5=8,KR-5U"%7;WT"W=@VKTJ>YP7DN=4:P-9I]V(_ MR+.L0%HD=>K'WZY5W;FPR'C&2D[S)5')[=L]2ZD=!%N5"&6;\=8.6UOG^S6; M?ZL,^O*L;')HG7GRBD9"_=CU%^6VI19S,HI,<=?S;Y4QUYE:#EQ5[AL%2;$\*5['U7@W]@2"K?+:=F=^_Y0]P=>NN=VN MY]\JM^UVRN:^U9G?'HP:_+M\/UW7B0!OAG,@XX!\'*I!BHKQQOZ/(7`;Q%P?#/TG5A M54.9@U(!8V-.@^WV.?F0P_/M$*/]/0%`1GZ`^A-&PML8E$^CP;_].`@0T#0# M@2`H[/U3)OE$)ZZ$D1WT?OG5A^7>P[ES^A^E:T\_R?JGJ1!Y_9.W5#MPC$?;K]`9\Q!V&F#]SE>TI$&'"F0YOCA]L6=P7\XGN/3PZ` M_YL=_!D#5?UFA]@DZE.,#;*^G-R?<$[*0SP>`QV:3QJ/S`Z3^?&WSY_$9^\) M-AOA`NQ\^7(#*/JMZ%M<"T^&G$[<<+H)P7!O!Y$G`WY2'&&`ONQ'#AREJ8F@ MY.4EFC(:3>IFNY*IA`]+#/U`-0JS0^PA-O`EIX!@1[Q'7TR(Q)#DX<&>A,`9EP%`7M3YQ$SB;_>\CW\6V?=C6\1$P\4BGGK-W MY)\QT+?*7N)<(TKI.7+>B3"&L8P!S.Y2,*7?Y[`;A`>,"PP"MH$RQ[$;.=3% M#1M$'CDPT-OSEG71/EMBL7!VC;4F+=J`6D5/-0=#?":Y/L!UP+RQ`P[H9]S@ M/M*/!'_V"3/W!@:>@^XDF0?)E+FL?H/V&F9_I#<5212MBVG9'/F>#3"#7,4G M17*87^7`/F2!#4!KWL^`RVQS/=C>XX`3P2:8DA6`6(!399P:A`=' MFV(\.?:'FTV3ZF;3I``[R.21>PUHUJ'D!"F81YP7$41?DF*`^7I(&K328N)$\I;< MG5'(9&P@P3&(+^"=P-P?3V9573M#?XJ M!Z@P7>/\1&65I;LFFV24C:D#%2C%(Z96FAHII'*.`!=P?N.`\CB5/``F7RA9 M[^`QK>+QBQ,_=)2FZ86.SH&-0:),E#,*_J:C+T)_#(+2?I(JRW(HB8U,0/US MXK%J@PPBE:.*<*].!(CR4#6AM/NHE@)[1II36;/2P9=@(-0O9''7U+3O:M7(W M7>G)H1-Q"U%*6%;CA[IY*3>6YN3BPDFO@9<&N#07="#<>>#]F,S!4PU=6%R, M*@C"8Q@MP*QMSE<-0>#C!*R9)A-G$ZEQX)36"(M\`BU%#\^P/Y&#&:)<@4T4GZ],`7J)N1`LU]OU'VAX!X-%1PGDDV2>`9.V0IX[9+V0^Y>RS.\<'+Z=/7^FI.E,[F4M#SJW2!TH5#:2CKV2X42%U_4%#7'S+KJUG?15IQTNN>CKN_Y3K)NK][, M\:?V#'\JJ?.E,G_74'#QW1=3L)=P$\]I[[BQ2)J7CX%.5;KXJ<+\LW;[IYFJ M.+O;NPS\M%VIEE]^"W,K_:G4,E9`9;?>J`3C;NR#8CJM&I-5YT1>+8''W:7I M_\-W@1YS.-Q=BOY1K^>*G]G7E"\)LF(+6V.;*]O3RUKOZ2?7]X/:;.D]6GO- M5JZ&O!M)/J>PVE_T\6E1> M:[L;NX+I4&2(!X^]HT[KU.IT+ZW.V=F[%:SL-730O\7NE$OUJ46>P2;<]2,? M;Z(2JVQY]7,[FC,PFI)P;=7F7V-E-^0?NW/<-?!>F:Z_E<"P<[JOW)[%OPW\ MO5HPYXRX%4(Z:YVT6B8;N\0O]HBRUEA[9_G&/KMQFA5)OG^^U*NG>CQ]]9\X MR"(O\I+HBT;F-3)O"U6P+O>*,S4RKR:$\XI$VE5G_R1:#6VY1K`U@FU[A_:T M%L9<'<5#'6':"DEC3@[:RRPB@2;:80ULJV1;9LNM;!+(VQW M$9:_679#;8:#!IQUHBS?>-R M9Z>OQKBXN#KI[M-2#U^O.#IOUU#$EA"L^6)R%B>)AICA(4160>;4_"`X[+$SMM40?WGCT`VIUW9NJ\EU3 M`5J.#%P:&BL&G(@//"87PU(-F[D"EBU`*PI#F#5T8$`8`N0RP`LR4!/R[$Z>NJM4*SIR'I M@#.:,:TV(CXEE2:,PB.;@W))=-2JW?8\TZ.Z4KP;3!=>O[MV9 M3!/F*G"[9BKV1M=7"MF=/4#V2SV;U_8DK-T?^?2R7+?-ZI%E\/6T@I"II1R+ M&U43R<:2EB4I=7Y3T>.SD_.SVI;YU7`7]QF^W!K<9\M'G.(6=+C_OOE(83+U;"FM;YU=E>U&NUBIX8_>4<]CP\TO>W+HS7JQ/>PQ"8SY5;8NPG:J(1FW;`V56[\5< MFWX=IW"WFG;0!>":BT)"*5Q`GI:.V[K&:_[VM;Z;6%>*.13QUJAD&95L=5:W M4@N9#=+V2MV:ZDO^)9;#]-2>;>G6WD/=KR&KNI!5#1EOW77,KS(R[]X*V6\= MV>P6'48U/T]G9V5-LMV=J-?"K1OJ3+V<%^>[[8NW)L??2`N\;4<:+"H+S^U8 M=%!)$V[PT[(Q!2M7C5_C..&[U<8*5'LG7=]BCSH`((>HW95Z+`A$>*G`8V4! ME]5&?2RWZ779YXW%<F>7O: M664C%)MCQ=U$-I>]T;8ZK;)W=2]!ODTB;_9WL9_@8NELJ?4V=QMMDC:G;/V\ MK_QF^QZQR)\44,42OJ4M)7QWERZF5=&Z&FZW-]31;N\_<911]U(GZW__7$6; MY=F6S;VHLF[,U:9]%7EH%T=PW''R'3DZ.A=%O;/)$4%I>M@56_3ALQ,)^S&0 M;)O'^AG^[UK_I7R[?OQ//3C02GP&PB23HQ`?;^XX)B4!/@?\LX@EG M`?KB;;O5PC1V_']L2VLG_9P#U><>,[]_$K;GQ6-.0\Q/+)[M4/@];)K,;;^' ML'C5^_9)NOY$>Q2,A6I@S]]S;B;V7<741\^.8LQ[?(0AL4$]"G`9J@ZY?,4I M=5-C/P!DP[*&=A^C2J;%O8TCD4D@HJ%FLEPRFT``89?87`?[3CM%%`SRMM/! M4FWTM^,IS%)_7C^.L$,T-8NF)%(>/8)V'&3.V=JDRG[-=]`F%I5.R%LWO%`8E@347TH MQ\XQGA';=3F)-YZH?-]`_AG+D-)J8;?Q4@:@4F]R6FTAX7Z*`Z":P#(HZ!J( MWA4(!5'R-2QI0,M2F<:S%$8-PO4B"1I:*($_B/N<[_Q6+QA.&[<"%#T)")*P M/9.(#TK;.#UONS//(Z32'D8,+[5`S^*'?@/06P3$P)Z&K/@2EU",AI:HUZ18 MC6*+#C(8(`INV.WK?9QE<=AVW0-:DD!8F+`YTS MSNGN^MY.M:['S&W'Z_MC2<19S"LS4YC\L7@5F(GN_UOV.7D;GF`*35A[VE"= M6YES$KN"@MAQ"E0@L:$ZYIX3!D.9+)&>C.SO\M@/CB?V%&>5\"^1I@:6\_&I MVS9O)!&^N%;-[O'8)`WO\^<2N]#W`*`!,@0DIH@K!V0B7IPHIA1[`UF(^4#B MM^FQ[5$_..#7F&Y/AU0`Z6@DQ&-@$I-&6&(CN2P%_*OK*[P[,?N`$=%#N,$?#((\TKX M#IV^DS]('HCW$*6\/QX[$6W14!(Q`%_]"6\!\-W8BP%-!`,>(,2@.J!*(]$R M5P"I.D-:5X[;T-KG*`QCE/)`.#`LL5\S3E&D@[A>0".$BSXX#_A9!,4#Q%, M"LJ8']-9@W/D1*%(U=ETAE21M9"\CCH,PA#;K&:UTH9@MJ$T`==,*Y+H(BFX M(TLH[<@HP2X(04%ZHH(F2"6!TU>N+I"@=EJ>!+@&RP`;M`H0%*A5A+\4*4=( MEK;F>UH%&L-$.%G6AG%\"^G%\R.#^[9/6O@&_/.>Z,N&ET'1C\>HTP!?1"E# M[VHA/0`S%-](9-#MA\_?/E[_7SWT&-4E&KI[A1NO04/$R7QSK@HOH+O M"-6,K4I&'175>;8=%,-*'U*H>')\5^O-VSY3<\[/$K%:>W/\4ZN"J@O96'(H M9)X?AC"%-N91AX'-"1Q280)_:KO1U!`$<.0C4M=5J2;2'U%YRULMG_$55BM0 M^4KT-X;&$%71LY1>BM&\[I]5CO!,/-P]`%F2JF&)+U]N&GK9A+B88Z*A@BF1 M4PS`:'7):@)-V'4U/=P$R'EP/O')D:#((A^`WT[/!)F'2M\L-`YI=VV0*2!> M6$LU1DYQ.&^*J];+4S2TLE'>HNJ1H242QB'*.65CY$^U:<^1TSY$XI(_@&4X MZ,F(T-0>`_.085IVK7VF=IC=#IF-)4#Z-MHWZ&1'SQZK,RD^_3Y+J3Z1Q8R; MB`TK^'D*]I]BDZNLAP5[8@WSNI!>A8NZNP7Z"I!O0'2JS"Y4@*4GGV%._$R/ MA]JXGWT\]1O/MP$("I2P!4AK3L;V3\:0_7ZIJQ+4O2AK]P,_S9C] MFT0)[E,Y7E311W+PR,8VZ**.1[HH;"IV[/L)/]RSCTC9^_>)3\@X$/AJX#,; M[[38Z:>J'3;DL$&ABMX<9T!X!"R!#JD^ MV(1(E4-)+E$Y`?@C\?8LN5%1%U[:18ZU*6/%G'*JG#X9`U1![<1_*-YVDL&0 M:S_9CLOIQE.#^SW$>*.*CG=X/^_+(FSFE<:$/R9Z3-^>.)'M-LZ'C8"J[DA5 MQZWS@ONY_"6I<3+2*\DY%Z"P;[B%;T\7WWF>GUR<_:2(#^\]BWP0:";;%=V! M`KT#+P\=[6DM\*RP,S;QKK"9GBZ=[BMS;F55`A=/0^XFT[HZ;?-),9X'3,Q< MC.:F85T;W3S$EN`\QR"+`.;LU91Q-,RH@,*;_/R%_\/(#N3(=^'$AK>`E&AZ M[0WHRP_HNK]G#A,>1B2`0AMAK;.`R.5XXOKJ0D637"B.\/G4@WJ;/E0<%$"W M&2GW3'QQ2O*'$:+S,;`3`PO-*\U>@>Z&B"JD*/O9#HC*O\NI&!/%D-H)O]J/ MTT.2*0;]!=VW?'_?4/3F,@[?,S`G/4'<-V"&JV.J3 M3_>3$_\9X'5@4%A_","IFS$NC_TL_&[1:?I(^$_NFD/GA[9G4%48%(0+S6H@[%,G)DHG\9BOE=$_#@8Y M4ZMRWQ>(WRZK'HER^_94 M>X=Q'J5']S8D$`9H/@(0'*FL%E@1MJ17=VZ&#&I$4\"NQ*XPLLNMB* M@7VBKZZM?!QT@0R";7H\<-R8C#\U*Q\E.S3&9YF)X.`?H*+A?1<=,D(!2DJZ M^P"T#OTX$%.\16?^G9QI=?&)F`?TT,VC=EI:="]H@B^J`;V#9]3S\,XLM(.I MOCC,KHHQJAT(O#@=VY$!R2L:,^,2Q$%QK2E6D)DB-@PGH@HLTDKE`KP4QV\F MJTL8M2$J7V#737I)02CJAA-/2X\"Q(C1A2*,^R.+0WT*>'J.,\\[7'H. MC!KJ(?7#Z?$?/;Q#;T3Z!JRI^!%&T,20$]ET[TA.HP%)4MX_>*#(;,K;2L1# M4U=3YM`V.[D!4T>2Y:^D$RDELPSR2GEPE%:N.%MR-92PMK>G)Q=G!=8.!2,^ M$9="-9SY%D6E)H&4!,LIDQ/[E&Q@C/*8.'[?!?$FCAQ/JVUDB66`>L<^>>1: MH/CI2=-H67RC&(BB64T$2XEE%$KXNBN&D'R&>74\W;UF7J0XZ]E%_/19JRS#/RP/.] MXR<5\]VPB@VS"AO,Z[%B#W&8$AWE2AT_]$<^MLJZHR?$/3`%LJ_]@7230.NL M$D;*"HQ#9KX=JK9;X2^;Q,AZ>W(`E96V7`)G^;I'6V_!LV37G=S*ZM/H'HLY MW"[5RN=\03F1=3*NG?#[\1!%>A*-1F'%Y=(R%8P7558\:;>G,AFKJ]#TBT6XJU_3[8\)!66()PIWY62+8=;KL7\YW-NI ME=39#->L,X4NP74W4/W=0?,8%/(IAE?6A1S76%#9@A5;(>?6=EMO'P#+!,-< M&EZ#[1%F@7ZY'>WQ[.2BPPZ"W5+*1FKNOHJ0OUQS9P%&+4SE_`?[97OD4>:L MGIX?1QF#5=A<3V.J7)NNRKI(WTG,W(7NHAV8MVOL7V/R'I#)^S6FH#-,867LH@;Y"^'_'_2J,`-KC%#\U&*6^U!OR^[T="/. MFKL70HY7\]-56N:XVL&V5R-:Q94=&@)?9\7OLMVVFGUL]G$/!SNT?=B6^ZS( MSU`]TG[EN_!]4C.WZ9HM2U-U0,R>H!:#MAKL;@J[G0:[F[PO+ZN#U],.W(Z( MT>ZF1L@T0J9!;8/:!K6[1.UAF2^?_&`HG<:`:4YI@]I=MJ3:?A^6LMA?O=%* MLT'[N$';LZ(V?H,V&\6S7TQG+_HZK7:WMJ'>3OO)S1MKOC5=,J=-=2?R>Q[>0EY1(5^R_S:ZEBU@$Q#6IK/$*#V@:U)41+46_4 MLN5-\^51?^?\CGL[B*;?L,"AS=W=:MLC=:'T=%78K5J5H&41_F;*U",^>PFF MFWKC519.4L66KQ9UI"UH1EM8+UL534+?!%>>2VL41R,`XW$D/LE>$&,QL3:7 M=SXG(+`H&/QOC'6_13P1W)PV6Z>Y?4'-:#-Y_5" M!.9;IDS=E$J$406=I#X_8KD'-$M52GMRZE/U.B=4E:A5+;O97KF`,\S@4F7# M0E4S#[`H_I&@$3#@<+4;+$/&Y>]L+IQJ/LA3P914'DZ5>F]JS&SB?$Q?J"J& M%?HW<#Y>.!Z=[/'P1/MREMY+547*-+KD:O^PNK?PZYE1M%37TP?22U;;T-T& MDD)3VIAMPL>;H+L@@;9D-L>JND.?(D'=I4_4H4,?P92TTEN^0]^I.?0^=NBK M/?GNT4G+%N+7K;6+%""2OGS69CIO?W("V,=L?[+?=9')&1T`?]6GC8X0@6"4 M[LU5GZ0.0#-RA*JNZB*_N58H73'&9B783,(S95/2ZH3;$5.Y-*0RFY5N8AG% M'22X4U^^GX9F3]SD196,G7DL/SFN'V5?6N2OJ!&TV?(E;1B3+$PU_U"=F%W4 M4+EG#(K"@LX?YGJIE8O`FHK8-RZBIF5-/\(JC+/*FD``%O["Q:PI%MX.79#@)J(VK6^>Q89Z<= MJWMUH6!C^Y!7_%]A4A&),\>1KMZVL^T-5.%.6!`7[D2RI=;=K#?KB0;&3-Q; M&Z07G*8.UV'&2L])]U)F^<91,>LR%;8_*6&XYVW^+_+1=G^SJ;O;M3?`1%28 M$F@2]K)FUGY9]HN`,NN!:8XC_QC_S6JBW/V=>M";@C'P^U(BZK%1GOT)1*LA.(QQS4*GTGMR`I^:GZI*Y3S- MF'?E1#S@:5!_"20Z`]8Q+@.[8E,/+#R!%@\11[@L?IZ+4,/,??8:(3!,N"$0 M![+A1NYOMGVIL6-/=N#X,>C*?A@Z5&C$/',LD.$1KC*,95J`C5#E8&+,L(V1 MK5LY#>4@::!`"@%1JZK5\ABK5L:L`3!;5L5]BW1W6"`L.)@J>LM"I:KNJJK[ M.$P6FI`8M:_[N?>Y9C+K&KZ35M@HREF`()P!E'Y@N['#F;+&A`20OPZ)C=NVB^^1Q9+0:@IG`]GG2VP(2 M"&U7;E4MN>UJ$?BM74IB%;>P2&T@:ZAF8)!^2/[24?@ M+N6\-ESZ!-$7ED8[]%CO$8;7L] M>(/F`BBEH$.AMVLJ_HDZL#T6GT[$O8PBZCMEB;\%)Y;XZF`A:7CL5SOPAP"5 M,E*M-?5+XA:8.##481R-+-)N27EE0K;$A\`>P`@#\5?G$790 MJ2P/$BS-N]3.>``-VGG";=>*.3%F\F4HV+7NG!E]MC7[PAY"OP69'<$_:1]L MUT]<[06X)H`8WX$T`2@N%9^9!659*-JG9U:[W5'616YF>J+3.;?.+UO9YBFZ M)8%)`DRW63*@$4Y/K?-VX0`G2-,]QV/O0YA=0F+ODALY4\:^>])-3)99(X4O M%MA0*<#"M]F90/VVL0-/=A=)NTY\U=0MLBX,^A#NYK2&>N^2T3`\(]@#.'MGQ2&E\X`3U-B?W/EN8%ML?\+?2UU1"^0-NJ?H"@[H",ZU&,H1J[\C-R42QX' M$Y]N[L`4DE'([`YT7S2H$O"U,SN<.('=A_?_[0/:V'LW":CM$BD_\`NHJL`7 MY:-O8;<0T!.YL=$8?E=L+O9PV^!E8)$C]NQ\HWY6C&%:@^$27[@.@`F;)]%. MA*FJ('PXLF!_TO/++S$?8K\=L-4'EU>K&V.YB/:'4_ MI:%G,B.>@#H'J^,H#V]B.Z0PLY?/=EQL@,3$YC\3KP)A0DWN&$[L]J4U8MCI M0=-0O$HF\AMZ!=7U!'5BP2.OK(Z4$<@GLE_8K&6FX.(5X&0B4?;TY)!O-3*$ MI(2"R1/R#<%-FN3S0N:?;@8^L8,([<61,U&3NVD/E?O,3,2#7A(^!?SG$\I& MQ=ZXXXY^A\#A"UUC*C(;;?(:`3CD\LN(Y0B]N!B$&J)#$50D!`NP%Y-A3#$* M,P1-YB`Z:_'HH9MGY`,QR(%NX(=6M-G'=P#[,I4#_<7E>X(CUV[5FKD5('?/G_GG$W:E1#C: M#6HIXJM_@EO7.CN^^7S<.CN_Z&B/;:=S"D3UT>&[:.6JBX-HCO56Z')?RF^> M=[9_L$,GO!M>LW(-S]_[<.ZF_-_:>]OUWBUJ]SI,3$&CY];(?I+1S?12L2;W/8E$ZP@BY`&&2"6ZW:@T7J M]+EOJ-$P^M?KZ_N4%;W+70?.]A"+/1ND3,2K*^HF5KA&>S;H)5%4 M,"NY(9DXGE;D,IW<415T33>G[O-F<^=M6RA:5A)/13*0$QF$H@=<.J3.H1SM M1)W(4?%%=Z;6`55WX]AEKT4:^<:=/L$.3GT>QG-+;9BZ6M%PH*<>3@S@D\R1 MW.0DK]A[S;Y7W5%@&0%T!LQ/:3:9BNU$77X$4)!&I&[[0H4W@B?;+F^Y$[N( M[OXX`?:+A\J@T_2DH'A5424T([#CA#KP-C2,[32T(8B!9)-C8GJM%>X><,^= M))[H]D=_9`.71=?%V"'[QFP-_W![DSGH;""^?';#D7*NJTMY6_.G?\<>VQ() MY1NLX26&@+<=?B25/Y]">]*MF*^"*+\\/K=("TDET7)")2^*;I(%P/KV3``Q MQ2S1][%P8_15EF;\L6H+F0F]]#CL\AD,`I>OG@:HJ(;.`*QOO&0E&#Z/[V44 M^*9_%;53@R35$P99HQWDB_-MXYN,!!%M6\G6-,76)[I[#1*9@%'D1:$V8 MI##!7;D'?I/I+EW=)L)4*AF$JDGJ)20M3 M)C\0,A0Y8_S^).$!-[G`)U>Z^3OIR;0Q($CZ@!`.:00:CL$ODW.#IT/*'NX'&8M(<%6L+9G#0V`PO!^8?"0R$:2.BF2DZR8#G0;=-YQJ1/SQ!% ML>H;CM(R";Y*AW3"4B-&S_#25+7,+3H2:Y*Y/C4AWM_\\KLD%\#OW"T67X17 MOO(U^J]V^'F?^P\(1*3C`8"A-14-3MT79:$8-D"U"@GNV&/OM%E6J.(4>C:8CYP1QS""R:HB.$$;>I M`_A1+*FM,F(\>9E-E/!\`8"0@]W#^%%';60BUY`N.+1)$M7T)#!YZ2D/XHP2R?Y'&+N'NC3&"+ M:!1]'\-V+4Y#&H=QBY,N$%>?&*!X@T+A80E`C+X3Z@VCU`*\8DF/%,:?]UPG M',D!L5XO-<8MCAF"Y>#EW,(]41"KQ",3'@ITXF24.H0FUI3?%00:)N%A&(HN M,1H9]3/8(4XL1*0#_BGB/0D/H[P2U_G.EH7MD5.#-R$$"&P*$B#))W_89!RH M6##:O(0`F=#L'U0Z*@:^"9;[U+RV`?H']J@=,PBPCH+%VR`0BW@0\.3P+1+' MX884QY<I]:97=9*D6=(9!=5NZ$0FUR;&;J.G9*`#S%W8 M`93VBA;Q\E"]1^<7.;$M0!ICDA0C:>@,00N$TX:M@QA]SLAG_:4GDZAZJ5.J M$']P_$DO%D#^D6O<<+"CR)5/Y!W)X?!$?)3'0,RJ-,S629 MRO-D.@`UI?#U$$:DL/J&-HO##-`9P]SFZVSJ'G*S=/[4PV),7D3*11;E/(4LK[C]$MX/#20UW*:(VY@")J4GC(DL2*O`ZZC@B=5F M"Y4F5I1)-0(%Y]]2N6,3"?,H?==_=/J\TQ[`*SGC`JC'MA*O'LD#4M\RV3]P M*/`'+_%;S&:-T.T7#B94YIW6@5)PR''&-DJ@%Y=ZKDP8,$M/I?8-4C\64^C` MH9"-$_2/(PXRJ\'\?IUE@"XZI>SA0`JG?!D+ICC'$:2.SN2X8EYTSC6$6Z!2 M:-CB\"_JI#[4[$K4E#F`7LC_$EIK^VS"F<2IE`'"5NLC.M("63_)UX8LXC%TZ%]!$7;:$<<$:B](7BP MR2$++,`.!+*1B=Z0-&/9PIA;0-G0T4C1/#)9:\*;`R?\SO1(`$Z9YF864WP* M$==/.CH0+Q,C7!DN^$1<`ZBF;X].(Q*O&B\#8U MPA!H,9;A%>*1C-?[=A#0A>H3-07.WHJ:8N_EXA\_JSOM0"E$P'=<2)%IDN%`-[ MO(&-<:$?*/&'$_^0SZ.):P8,&1A![FH'RD/#EQ\<2JNN(D+F+WV`$HR0@)B2 MP]P5APW5G+I>1"@>8X?C1?S4V#%&-UU"-M_/81BI&/L#Z<[XK;P$*-,#XH2< ME@*Q0('/2H M`D7C&:+T5'@I00A%R2BMB-U'-*D*@PJ3N!OB])$*3F6)0&>6(6/6%BH>2E^J MC#*IPUXX3@0U]!F`,*S-GR3:F3JYF?UQS.(,.%3>9$"_-]`G24L.:$XB4%3U MD@LF!6D'R';4A)Q>KHO)D,C*>R63V@9"/K%+65DM$Q\%#%*Q`P_W4U&3CDY+ MX;MO7@?YTLF<5NZGU*#2'D`KX_M"S3RY*M,A:NK"/(V9LE2,&T6DP=Q:)7YR MPC0DR0ES.-5W!%BC!5AN$#'E`*XN"]E66<:49VP/_9$3KW;K\D@ MO?8&7U)S]#?EWKSS?M=A85*S^ MGJF<>0-,KA)ZAVT97+Z@DY'T=X%>EX3@CL-@C>+X&Z#X$TA.&DSM&GL MKB!=:M.7D9T\"<`DG.^W>_[%00U:'O2[.B9D6;A*ONM-,@5P(_/3DY10]7?NG*8?EEKY^SBI99:Z=I7#&K2B\U,FIVD4\!L M/C"S25E-B4W>LBOIP?DA?H,71^*>*J2*V]DVT%43PUFS+U7LRS(NP(4&=SE' M77Y/"YP)\RSXG?*X.\>US++;V?*XJF@_=THL*:?77]8:/*X"7&]%`4K7^-98 M;O-IA4]MJWO6$FORX*W234/?S:?6^Z[5.CV?3[ZIS#6?:TD'NG"^=H-+@;B9@_[+*XUWV#KF.)_\N:;'$78&W15NE+)7MD^#F M`%*V7N1/JC/T&JVA_I_:5NNRO:Y67#?MMR'FP_K4L]Z]H? M'T9VT#-<_7>."\__:H?W:0NSO77$5V!%%C8GVT?_>GZ!P#'*K6X9)K5$W/TR M=IH>L>KN6M<'5QLSC&>)XPT-=2W7+7L5N2(7<+.X>6O+(HW"I] M8[:YY2]SOI>`\/2GG4S;SL];6>3=?F_'&N=E*QC.0V>6^=7[7VCP>WI]WLO9#S?.VX$S5;FVMP5J75^WCK@#:N]G*C+ M3&O04,>ZO-P[&GKEI@*(,--8:#CWWIVZ=M?J7)P>\(XUK'LK1-3M'@;O;G1T M^/2'-R'^WO#TO3R.':MU>G;`&]:P]&VD]EZ5;@BV&)EG"DY'PA\)NI.HZ4G77=YAUX4A7+:O;JL1HVX50 M/F"[KB2!U/K"OC;$ODKAJ'T@]@+I:::Z+)&XDJ\YE3Y,=:Q^!_$22,R*N>L! MG#95W\Q6K7K5J2_U4RKPW8JR9)(D@>Y^)`DT:2J[5N2V`&:3_%('6MYF\DMM M/+K%&L$J-FJ]DV1(\HL@$?W"3V6_)7H2B,3#V#FP1IG1EM2LC##[#:G[*Z:X M;%%?7BT;9@T`N]9Y:\7:J?5(GJE1GLP<\JJ++;9:\LP:`':LT^[%?M!660:_ MB(O7D'/#U,2FBV[E(I_;*11S]I+;MZ%#OH5A:U.I?/#KK'7EV=E MTY3JS.16U&+KQ_^,DNL".%WDXB5)C.761322JVFK#:=K.-TKYG1UWNL#5^;Z M_8!N=]'0'CAA']ASU#"O==':[LPOK[E[DF[85\5NCT[9/($Z,["#4=1^ET]. MJ%B;A%G&=K1T4=?-\J#=17'6Y;:\K,2OV9UX/3GHKL(BZT)41^VR?/@U!3KN MOZZZ\,I(>H.5+XOJP6QK='-4EQ/=M2ZZ91-Y&U%1_0;7Y=:I/G19_J*S9G19 M("L6-Y]<-E9O?K1?VG/[LQ=&08S#A)^]AP@4[=U]1/N-/Q[[`R>:5HWU3;'$[*Q75>)\V5#="@-B M_^&[L>I+53X^MT(XCGH]5_S,8?#YD/\5@W(-NM@P$5SN.1%\L$C[VC3NO4ZG0OK<[9V;OM.VW6T.;_%KM3,J^% MPM$9[.Q=/_(QP2HQNU>[,EG)9EIC+<#]2D);6Q?2&EBX">*!%'>.N\;.;=CN M6G>J-;!S;K5:2]\&;\R!M+L=:)94]3P[).:SUDFK93+N2_SB0*E[#3QUEB_O M6"^?\:RR\4^\1-HK#>.K_\3IVGDM(\GC;M2,1LTX-(YC71XL(ZZ33&Z6M`'B M;;2(XDI>G9WCI/%8S/%8-+I$HTL=%H"86:__+E MYNNN)NR?K^%OMA?;`:D'YZ9Z\)L=]$?T;:,;-+K!`7&;MG5VL$SX`,7M`2YI M'0WBK-$@BFYU&C]#G74)T]70J!.-.G%(K*?;N!H:^.M'EA3GD(.U?@2Z0P0= M=99V>E>!E#4@?;?$-C;NBP-1.6ZP^4G0:!V-UK&W6L0VN3KJ' MBI9&[=+=RW=N5930I=97$ZEDF(HNM8*-V%+?C='3T8QIEFCN5K5C7]4 M[1K";IK4)/PAH3%=ADC6(8R%$)K3E*<$]>M#671^"B:J5:^Y>:IS=97>:MU* MKK+EE"JVTGVSPL0EFHU5@=LUZZML='UEFZG5'MDOM2U;VQ)>OR789;F&.-4C MR^#KPX2O.RE?%\?B)@X"+/)H8]FQDI0ZOXW3\=G)^5FYJGIK+'/5IDIG!8!W M3BZW!O?9\GDT6+SZ``4)RS*PW7$]+V.PQW"4);[!I2?6(V>HN'.R6GY=M0%AC/E5M M2X>=JHANVI'K0)G5>S'7IE_'[]:MIL%<`;BSQ:,7MEUF6CINMR91X>UA?3>Q MKA1S*.*M4+0=[^Z37X[I5! MLZ/15M2[JXL5PR3:52*_TIW,^^YKH^D;+1Q*P=<+Q,\9%K#R94EI2]-`:6V; M`,_/JEK"=U/]JO[P@B(^.`1]O@K>MU-1O]"^T\)]:YVRK4ZK[.7?2Y!OD\B; M_5WL>+BHIA/ZBYM;556)[;(9K6S]O*_\9OLNMLB?%%!%7?HQ'W6Z2U=CJVA= M#;?;&^IHMYLPC,?4WRO\(Y2#-5R=!^#@V[(G9GGW MV]932Y;,)EDN9W+#$GV>37&[5(K*Q0(3>1W![X3?CX>!E,+!S9)A)`([DJL9 M=A=;:HF^PC\V9/1@01,0>:A+;\=BM6W)O#RET"::[@:!&Y\D92&\@IHYT M!W4AQRV:35LAYPHJ<^]`"]@ERW2=(187$#XKU]LCS`+UTY/-V+]W\51&-D>RFAA1Z*X,LMNHS>J'6Q[ MH2^M5IEBCGN#P-<9R%0V*ZG9QV8?]W"P0]N';?EC9E,=-H$T4D1E;7R%=7-= MEZ6I.B!F3U![>G)1MI=L'7"S)]CM--C=Y`5L61V\GG;@=D2,=C4;J.E4!_0V&U31!FW/BMKX M#=IL(XG]8CI[D:ZRVMW:AO*9]I/EU'N#5_`W-KM;)X&R@DNSV:-M)_U5DP&] M:ZF_DV!I\I)2U.L!R/Q:JIAU0$R#VAJ/T*"V06T)T;(XNV+5-(E\XD6:]WZ- MK8&26J"_!GX8?E&EZ:>9Y(KK\&Z8)E3\;S\.0=#];YHVW_Z-0C+?B-AS^(T_ M'CZ^$0/9=\:V&_[ES7'WS?_I7)V#092N;#DXM@!]9QGHKSKU!+Z[%.I;W7I" M?[H,]&V:O]_X8?35C_XE`;B^_^A1B:;Y-+IX'>W+ M'&8W!F(>%Q_B$.1Z".+US]CA)M[A?>!_PL*HO\LGZ<75[%2[>Y9=X1(35P1K M:3+OMD[/5X65:Y`O>D$195@)6COG5P3I\M-6`VAYG%Y=K@CH,IOP549I":-J MZ+5UV5Z:!C+35PIW:3QWSD\OJX'[LZH_4R6_;E^<9C6&W"0KP%`:0U>=JXI! M@*6?ED+#U46W>BRI+.`JR(EW6[!HMX<(#-)ZM`F-"K.,)*.>HZ-^`8O0H[SQ0<%P[#)VA M`]H0-06NA"3-`[+$G%7!F:7+=N>XVWY!#S[M7'8OLHQ_FP`7(%8;97??77OD MCVV0.1.\4Y#A,K99NWMZ=7[577E!3%CW?@1/.[;K3C\Z;HPTE>C,ANW"919* MTPN_9T+^^>LG8.Y*E2\/PHO`*U=89:`BDL\6@:HFS)/)K[;CX7&]\SXZX<1G MK>)NB$5K;V&L2,+7"*,#BO'@#K;=+@/W>I1ST3F]ZEYE;8T5XGSVAO\50X>9>*V`.0!V?55 M.^+ES=0?H?.+Y[A_>0,CRS?BYPW-/H?)S9M]()U?KF&J`4[W48;]P"%"7;/% MTF*G^=P^(/\&"?B*!I)]HZS"_WTXCT: M[[8WU5]O`B.^>_^P).Q3IBP](-+X=#/*SI$.]$TXHAK`; MWJ.(1O`Y0:#XZI^(-K;R0*.`0&JWCO_^\S6!:,Q";TB<8^('4?K].Q'Y`A_] M>VP'$<'(C^"8"+;`\:BBS2R<^`"]_&?R,AQ`QQ\0(#QAYH(W#]5=X,"NV&X. M+%BQ)7SU&PP*2X>1GIUH1+,]2"!'HDQA>P-Q^Z,_LKU'*6`+Q@Z(%(`<_G<= M/\+F,DI.>?H3X\8C^?0-1IS$`;`6JMV%$V21A<@')/5].`)].`+`SX`G"1D$ M?A"*``XVUME0:'020:<'RQ'&^?N08-(<4DP2%DE'`(:&T:A?E#1Z1A*KXXZ] MN&8]ZP"8G^N'<5#T=@Z[%M+=@$Y<3_(6P8-?07(`!1G$BJ)-379"MS]+]>/9 MT`%\N"*`+;`5@>!>@(8\B2.22T@4!HD$ M\A$.%!]KV*\"DIAWPD3!Z2HD[X<)B*HAAH.X4XN@S)$I_-*/78;.\?IN/$@I M:)9VBTD2H9P/%U`IUGV+1&1_I]JX/L%A]_M^#`!,`OGD^'$(:X,#AG$R@\PQ M\N8B!Z@^=B-$'\`+K]`O:A#\%I#]MFUUSRCB43VCAIW'"@@RYB>AQD)FPW!& M1I`-:_*.^W8X@J\'<5_O+U;YU^R@"%MSN9#"MAC1.<6.W'B:U9[940)+GWA+ M,KD#XR*6'-B(E$SF[I-!36'A;@'H/2G">`A4X\!K+A/W&$8)<#SX_=D.J+!3 MD+**^>QN1K2$6EZ1;#%XS'__/$\[R*IS!H>JJD7CUGC&`$27]Y@<1"#^B1TD MO`'D*BYD@'Z

(]](`XQ!C@'^EM?)"32)4@4GN985&B@#UI*8"/S6=3\-?: MO$ED&%'N7/&IVP$C$K-,B (B,2>/2S'(=WI6*N(^:S&#'+7@B$+;(84 MU$Y4RF)>C1I#T^*68^P/;6#(VSRRGR1@7P(I*367%4I",TL;.Y#8&A#W$E3N MGG3]YU^V"O>.T(4#]\CLLUV@;+`T1E)&^9*=U36Z?0%BHX9K$H;?]UW7GH3R M%Z$_O/C$MF;[=>G/ZE3E$ENE,OZ/>9 MC[L[#IW_2-H3>F2=H&1CN'9G(996B.$N#-4NV-Q-;F*G_"SK[,5U*.Y3`V'9 MS5@'VNW@I+:S="N=9>^)O!8,B96:Y;/_=T:8M<#6]0"%.MD5]<37W';<.\)7 MJ'U^\PFL\!POB(=F_YMD/Z.20\RSHSBP7?%HAX:GUQ)A MW._+,!S&KI##(;D:QS(:^0-+>))U9:*D"-;9#1.QE7EU;[ M;.ES6AO94S?2:Y2V!JQF7[<*5J-Y;T7S3J[_OGR^_O#YR^=OGV\?Q/77C^+A MV]W-__SU[LO'V]\?_DO<_OV/S]_^M<;EX(X%?@V5DP:P!K#Z`%9'8.K(B3?E MH[[.7)-B(LB>>9[KX@;9XH*.VE=6^^+\72W755,%<"]<(`VN-^?^V.KYO+`N M.\N?SQJ+G4V[WD,L-SKRW8$,PO^B&]!HVNCXN_3<=2^LT_/&P]YXV/<3WS6Q M.=8Y@)?697O_7.?;#JMQT\I8%$.S,TE21^UH7Q;$U[GKY),VRG4=)4V#ZX,P M9/@6=^GCN?'D)%6*H7O:G?PH+>[5RVE8PKJ^[CJ4O$AK82$5;.2>K0$ M3'J16"U861!R&*C?I*6JY62*X"P-Y=+5N6RW<*]1`6QAG2VOI*ZD=-.BM0M M9MV+&*9V^I[_M$F-4<^RC4G.?]JA:JQ]Q36`X6(;R.X=,DQ5=L"=;J*>DQZ1R&,L&%.0` M.&Z=M,X<;Z=N&Z71?];RC#K"6TZTJ>GE*ZYQ<;(W=[*.VO&E&N,B:YU?K7DH7H:L2&%E,V6J5TK.3=GVD\CXRS88= MS])TZ_(@593#W;#3PW2ZK8*O39SG1E&L"Z%WUI2VM=`3J\V!3$#L%5!-+X&A M+EE_F\GV?+609"?-IIW>V.%(?'+]Y[JFG9;*`%T:L$RJZ-H9H)5?"90*J+^H M5XOH*A,DZXGP%3I_5Y835;;.16WTB=V.O,[>U?;B<,6%UX)+E,VVN],:U#.?97OW8#61[U*-; M[.Z+BY8]Q3MH[+53)!F`;NP31X&7%2&O;2?JR('G!VT7\-Y7=HOQWS^#71KT M?E'V*7+O;X#G#Z[?__Y__M__!S?LO^/P^-&V)[_<.>ZU-_C5#N\3?GX/5G1_ MRO]-W@,[W,/-^ET.__+F4^"/T8MZW&K#_R*?/Y\?=UMO_D_Q.G_V_&!LN^O= M6LRM9?EM)`G'-SZ(*V\JXA`FB492A'&_+\-P&+M"#H=^$(5B+*.1/T!I9O?[ M<*`BH$D!/R7"S;.C.`!0E9`;Q.CMAXOVDB&_]@=/A M"D.),#XY(5;LM&"30EABY`.X?\9.(,48H,,A'71M`#F$!*/CS5NM(@$+QQ@$ MC@MX^S$!?F-'?C`5SWC]`=/:D8!E#VAJ6#P,+(,GP@Q\F;R)?V!M^0E@Z4FZ M_H34"!J#H+`!OKX]<2+8Y?_(P4F.J)2V=`H&$C8?*('JNB+EPZ-$O3;MAA@A0:-LR6]H M(>U=,S"KCBD<.(/V`,[F",ZC.Q7V,,*#I!<'/_?A&+LP_J!P_F_Y%3%)AQ@5 M"/,`-#;.B>>>2360+IXSW^-3,`EDQ!5NB0D\V8Y+=WN/$@3KH].W\--D--4A MAM*#S9.PDP#R(HLVQ=RZW,X^X^F!5P+9=^TP M=(8./(/GTPY(#:?7X4G]&>28K3<&DTU)$,+%7@F2( M&8P`0'X=9I(>R`9@]/@B<'7'9Q*8Y0?J/,XGZ^SC?=OS_`@!I%-LD[C1AQ]' M3PXZ';Z1#=*N)X$U,3>`U^%/IL8L<1.;L#+$G2P2O\P+(@0<(>G;0:#&@+%A M2!F1/!_[@!.``;B3)\54V@%\[;K^,V.-6(SF'L9<<_!@*3Y%BZ+!1G0B83H` M.H\D>BK/^.0/)XQR^+.2`PS+83H)PWB<$(%#]C>N#G#G1.'"[2X&7;V$$UMB MY#_#T0PL4N<<+Y9J'I.T'-AT`B6,A]CD$J7VG[$-ST=3W!63DP^\]!LC7$>U`.XHR$H#T M0!)6YX\5__:YHCD\^Z3:X$PUXX3Q_BW[4<.H,EHT'J@IX7L^+;1:A](PE8%28 ML^\$_7@,QHP'_%`\`WQ`C58J\+7HMA%,VYWB\/`FG!#O$>'T0J%)<+$AGO'IG9P%]:!"IZ8N:3Q9]Q*#_YS"%# MYP=P)PI-D;.A*0D5(Y%S7^Z?G[T%P'LP=`5BC> MMFC,MZ?6:>?2ZEYE3!.@X@&8;HER/3,$4'04.+V8(\:`$YK=MO!UYI+H[$!" M`N9IPSYY,>TP$!+/S*P/9P=2CB.D?9IR$`=Z9I;JA4S_HTJ+F06N<&VVVU=M MC143#^TQRB?/0U$!2^'3X(8^;F;HT$KP.:2W?H2+-,<,B1L0B'X$>'?@7%*B M#AZ5(5``HP0X<\1FJ^=[Q\"_$0`&RIZ`EMYW6)B27TB=2.-)U%`#IY^\Q!Q% M,0:!.,XNA4#H6&>G'3AF M5ZL!I`3\1E*T MA1KM##;(<,>^*Z2YN424IS;3L>O?`Q\)_@6ZPF>B\JU37M8S_<%V44L3#R,I MH\T&<\]O;?2B:KWQ:.[J0[9UM!N5G5WYHG[%49(@O'9K7A1>;[8H[NK!=0DY MS09MI]2TQ(74"Y$[RV*CHNO\9=%=?EO2V,@*<#[;_&(=G&]RT4N_L]J=S/\)!/OO0M6' M;F#:F"0K&ZN=#3(_O_AIV4-X]T)`Q-Q0$HM<#!Q/$H^5'XTO3='#L>3IS243 M_%1%C&,RV*8"O=0$E_.A?7G.RTOKZFSIAIQSF%QNI:O@:`,(+__F6I@L58!L MKQ!93\J]:EG=UC8HMR*V21&C:\CJ;WX$?'%QX!C?ZE$L`(5^H6Y(#++D_JQ. M0F5);0UB75$6OX8U[O-*-J^EE#IP=*E<-LEB3=JJGN&NSF7/KE);(1CO84C/D*>HB^?KS]\_O+YV^?; M!W']]:-X^'9W\S]_O?OR\?;WA_\2MW__X_.W?Q'8F_`KU7&+FI74;R5;$10O M'YKKC(L*@RBV;)C52"4X:E]9[8OS=72"ER. M&8R\TX-?(YG0N+;VEC_4B8JVYMJJMHS&&N&[&YG5G:FMD2U1?<=YA+[71#4? M6A#BMJ.:OXT"*5^J3EW&7;4?T73;1O,2)05%+1U[@9>B@QO`LV;\+RJ M8&J(XV!AJHAKU5,R-5D(>XS-)@OA\+(0#@JAS7%OCGN-\5F#X[YEDZ@>&E4# M4P/3H<.TPL%>+^.K<[ETSL@&:MOO91+,59-T5`T8:R'R:`.8?'G6LO%)KX_` MYQ>:WV?BKB>N&V;2,).#)O!M,).*5*YUXW^^SI36+(?NPPG0..K`83Q=<>I#)02+W="UIUYS! M5T(FG9VQZ@+I?@C1_=F;[6S\_HT=CL0GUW]NXOZZ[E(&(8RK_9U`_?)P)?YWYG`P1>$==<-W!D`V&YS17IOJ%CK0"V#;'Z MPW$]KQJ&5DKC.@1_2_7GS#?U3/G>W;"@%?><=IZGN7:>_ZN&^]\' M,.YLF#KUD6FGPF_4]_6-B#V'1_OCX>,;,9!]9VR[X5_>''??_)\VG#[XOW1) M+T!7S6+RO4GW>C%S=\:@CM0SL&UL550)``-$($961"!&5G5X"P`!!"4.```$ M.0$``-5=6W.C.!9^WZK]#VRFMFKFP8YQDKYDNG>+V#C#KF/2QNF9?II20"2J MP9`&G,O^^I4`.]R$A$V0NA^Z$[>..-\YTCF?=(3\Z=_/:T]YA&&$`O_SD3H< M'2G0MP,'^7>?CVZL@69-#.-(B6+@.\`+?/CYR`^._OVOO_]-P7\^_6,P4&8( M>LZY,@WL@>&[P:_*`JSAN7()?1B".`A_5;X";X,_^?*'X*JJY*^3E7IZ?J:>JR><3XM!O(EV3QL]?QB-U!'^DXI_\I#_USGYZQ9$ M4,&&]*/SYPA]/KJ/XX?SX^.GIZ?AT\DP".^.QUCR^(^KN67?PS48()\8U(9' M6RG22YV<^O'CQ^/D?[=-*RV?;T-O^XR3XZTZNY[Q_Z*&]CE-(G0>)>K-`QO$ MR7A@/D:AMB"_#;;-!N2C@3H>G*C#Y\@YVAH_L6`8>'`)787\>[,T=D_%BH6W M`0B=$$:)WZ.A':R/2;-C[*K-&OJQYCNZ'Z/XA?@M7"=J8RA)O_@'T$'_Q`%'G+P\'0N@$=L M;]U#&$=,M?F[Z%_Y:Q!B@][#&-G`ZP!);7^]P"*3'I+1$9FN^4`B&!X5>SJG MN:_>X4Q`=#_S@J<.T%2ZZAK,$D;;QS&UK6G;M3H+G`E"V&I$T$6Z5L[:K-<@ M?#%="]WYR,53!L)8@R#7@& M`ENT:V6U*(+Q$D?[U(/FK8?N.*<96[1K92\#,ATV^$'V%'K@90;9_F^0Z5J] M*0S1(P*$8[.M5]>X\]@9Q!`G]!=PRS%1ZAIW'B_CP/[K`B3I;?V`\QS(YB-) M>\G68->*SN$= M-DL8V!"2-2=;09I`]TGU-H+?-SBDZ(\\)(327DRN[SCGOW7NSQ&X%9GX/,.4 M(M$++>%4DD.V/XK"J3-O!_W1%4[%>3OHC[IP*L[;P5OR!$Y5Z2)2I&A.%!WT M_88!<`IC@+Q6$;`D(B;E9$HL0!@F`Z2CU$/KMI57G[J&_:,^K.G=RP28/44ZZ5TFR"W(4I=/ M:3*!#3Q[XR6]S_'O!0GX'$/?@@#1HOQ:@#+&^N]*9_CGB;F8Z@M+GY*?+'-N3+45_N5"FVN+B:Y8O^GZ MRE)^OO'!!GL6.K]LJ^5;=%Y@%Q!YI%P?A,4QE`%*:O(NB&Z3POPF&MP!\'!, MAM8Q].)H^TDRV`8C-:O/_Y1]_&="5J+))@QS6UH>N(5>\M@_LW:E9L?B%"9U M2;J>Z?^6UHR6T(:9FF.@L8,R>O(U2?%XZ$>HE'MS2.2LY"@>C^%5IIJ<:1/C< M="K434S$TOGH=8G#F0BI`GS^.1/J'P9:Z;RSW;^Z]D!*+;]OT`,A67CV-V6C M)JF]X-3P]>2C/^G;5-;&QN0R7CH'81Q=P?@^<+`.IHO#V6:]2IXEY_`DC^CR":)Y$8\_MT.V<_`_VA@WXWL8[C'*,SG1Y*N-KSDA2>K!1+LT MH-+=56@D4-G+('">D.==AD'4H&ZIF>C`46/BTMBIQ27S4&$RC;JVHB1G1"RFV<]B(I7,2*Z[20JJ8+1_:\G7_^2!FSZ1M@L[G M]`-@O?4F`SMF23L/Y@C<(@\1ZLO,''5M)=BTRDIS>-S@3\(-=-I@:M6)Z&!` M!T;9UVIAF@Y')G55^Y\`^?'K9LXC]#>5(]OE=6JSC.BPQO8(!PA90T/@WZU@ MN)["6_9><&UCT=&9>[XT0)7.+=1C0'S%MD9)T9O!_`&.TPA]1+7LD5=D-RE1 MW73S[T+4O9=2#G*MNA"](\P9\_8PBW1S+0>5BQ9)LN[,:=1N\4D1E(CW,%>@ MC=CE&V"YQ,/C*EI[B7@01XK]`1PSA2[$&CHK\-QZ-K$D):)%U.G$AUXZM]'/ M2/.XCD]:(I+4EAW]""[,$X,<8>"D2-!E6Z$34)UNO`Y_%)M:5H M;L3M$!I(Z;RA.;N3XP`YAC\!#RA^O6VI)K'2!$13(6[?,"!+YZ(E.<'O0T<' MH4\N.RB<77&1C1IR*(^L:!+$[3A^0TCGPQQ+(*]7MDBJ;$G168H76WD5>6#] M0N"Z>$^8?Q'WPA+C M2L("U%,^J-8*_W.E+S!,I%VEF>@M5;Z814'7AV&Q M7EX0%MY<+QNUT(3/H.\$&[0&E70A@YQ]2^@`,]976_)YX;WPD$'#*)TSC/4# M0&%2EFI'3IF"?*[Z(-Q5G!:0SG,[?(:/5XIPWOBB3VUCDQY$UXY]\I:@*/.M"JP@>AJMA\4<3&34(.(!+<.,-6O-!0] M:9@NH-PVP,ZD>X\M*DE\'?HS#./U5-LD\&/R]4=4/LXA*'I^<_N!%Y"L<_X2 M()\H;OI3%#T$Z069IIN^":329PY+3O0.0]N)Q&<'Z7A.<>21\8;\#8;\NNE] M`=T@A&F[9!UYA?P@3&XG2T,'3KW%7M(B1WJ7@.$_XB:%[QNIBZ(]*B$Z0@NP M.(U1U'`/*).QH\&/4\IK_H*J0FGK;)_2UD2S?E-F<_-W64I;Y)HKC!.O M.A\1MN+%RPVVB.'OIH%&OFF1\=Y#FSX$;QBCN'FUFF\C.ABV=TW-[G$1L'0I M=@H?0FBCQ!J[8ATI1:R#,$;_HVV2OI;W.*1%1^B#_=C&2!)Z.#U;NLL_67*X M@#YTFPZ?,06%L^##_S`9D-(Y[=R:0"/ M.V]#O@&+_05X[`H)5V>B:X,'>_P`$_916MRI9[KD]3HCBC;D9-HDB.@;1LTR MHHN/^WN,`UR/^WFK$#CP]=K2NLV?I&&UG>C"XX$>H`$7<,T(T_CT]J)+B@F_AI_=H[WE3%G\Q2R8ZW;$??OC\_M'"?U^('!9M]2K M>'BN.&HS,/CZX]P<&/U((Z.-)47?$L4;P\M"G'Z3<5>'!UZ/C(:@2%,)>2,9 M.;,@M&`<>RG_=5\+=88?Q>&&5N9(KXC9JR].7\JXLW,`:DDS]FN-CQPTR6O? M=`MPDQ"G>R7>X.&PB7P95FS16I5XNV?O,K9HSB3XI*4J\8;.CWH&DP(\K=86 M@->5A%O7\KC[%5G?`R_IUZ,'R=?1AK#LSX;WI'ED):T'MG1YN4;(;;1>2&7N MBX1-]_=[;`\3_+7<%N^_HKEG8^VN8;A&P-=BXZ0-S-3C^,)/]:&T$E.M20'H+=1OLU0:=F)I'7)0T;!7F;LQ<%E-;1;X#N! M3V):8]6#+2=I=?(0-_(:2SX*2S'&#/G`M[NG.]S]OEVTRM_[EGSI%'=!KVTO MDO*:EKZEQBM^0_:QI[G==C==_"\&DBA`W1EO`AH\ZF MR[C9.Q.A2TC*&/9T)Q.NK"Z]WNG+$VM+"Z@#0FOO'.(PQW*8B>%;44>^\;IE M>V![IVGA3/<[\D7Q*+*](-J$$/^B#I6EOCO"WE':(N,Q?#%="]WYR$4V^?ZFM)R(A]1UX"$[OS(H`/E0!G(R5*R; MJRMM^8T@L8S+A3$S)MIBI6B3B7FS6!F+2^7:G!L30^\'W@R@,+F)\PH"HF2Q M%%-`\[&,YG2HS#1CJ7S5YC>Z*\_NJH MK/_94+E>DN&T^H;M_^7&L`PRKA1M,54L;:[W@H)CM5E`H991O!LJIC%/E$XF MB397+C5KBZRO<<1Q2K``8UR&\7ZH:):EKW!46AGI,%+,B[EQV>-TI],#+#%*&TDE9^P]#Y=),)N\-UGFB3/6Y]DV9Z?V,H:3ZADKEMX+"IV6% M/PZQCDOCJX'-^[6G,5++E0IJGE6RU`B'?G.EX_&L?=,N>IJ3R=V-E=//>)J2 M-ZNV=^3"T`W"-2$(VA/NAF+X:M[%B==:F9/_*A=:^DK5U;6^L+1=Y"%O6R5Q M"$]D/(-GYO(JN2Q1^UU;3OMQ5/Y+;%8AP/CMAJE<2=?JF'"+>?*2V+5&HNMJ MJ6&(D_YF\AS>81>E:V5R)6Z]YI7\K.($/=67YD37IWA*]T4S;B/X?8-# MI_Y((W%J)0.KIX107%CZEQL2+_6O?5$Y/E;4R([&E7S@]V,2]30:V'P"0<`X7T MI#R2KEY=HO:(*`.DNRZTMXEW7(^FPB^V:'9@TEZ45R3C?I#DMZZX&'C3*IN3!Q*#/OE6`<8I'YBGE882%<6Z6ON'F*3YJEQ6MTCZX'OV`[,Y/LY+:(3;*N=6R/[5FTE5FW1ZO8KB>L@QD4TJ2W!JWG(6[K;JS6>/S4::@/^K<0_VY;S_8S]N$,N5D"1 MCGOV[%KGE0?/6YS5ZT]/3[6G5HW0^WH3).M_7?HZKE,(4:N+*18KW$ MR:FGIZ=U_Z^;II&6SW?4WERC5=_`V?8,?S6]K4"P\4E]]<=@4RNAZP!HUSIS M?29]8B#/'SJIB!1N"_9;==.LRKZJJLUJ2ZT]NV9E8R=?V938>(QG"OO_9MS; M7A6`T3N"J$FQZP\1MV:0>9TUJX-5EW/L>)ICZHYG>2_,Q'3NPP8J?K\/%,_. M*WXO539D&A]:#7;UGT2$O9<%S`K7FB]LT$W]U8`[Q#&QXV(3/KC$MDP8R>8% MLIGN)P\8>VXJ;/$NB@<_0A04^H`]RT!V#DQB^RN$%O,/F(T.=S@;+IBS@U%Q MH'&2^RJ<3@>Y#YZ:-Y@AY8-5_`'(;*OD+M& M(#(0TD7S!JNY+O;&X.U7%AS>V=:]X#1+%\T;[!5ATV$)%S*ZV$8OESC=_@DR M>PSJ'U M?&3+GC\WD3W"U(\)(2+1GJ`;`??YFE[S7SYMMF1#&.6]3"D",(;8=$H3S!MH M']^#6B@Q,&;;TW2`/('\%]4[%_^]!)>B/XH$(9SVY:SU.:_YQU[[`P'7I1U,(] M%.?K1:$+]U"%+MQ#`=O6_'5H6E^WJ<=V<'SD"$/M7JL[Q_`[3C'##HL?'BFP[ M&T)?X/BX'.)I6:%M9`H=DWB&EK9W\*#6XSN4/OP:PHV?/>R8V-P@ M9QWF5JP!7[/>&JM_JE)5-E+!C\@QE5472JB/XW/(4'P18M($^-N#<_C<&0ZZ M^F"B=]FGR;#?ZVI3^.5"ZVN#CJY,?M?UZ43Y^<9!2_#KV/Q%#G+Q]1@AIJW# MF(9Z+H]M2JE&B&E;C.ED"O]=ZP-@.;Q4AB-]K$U[T$`*ZR8713+-6S"R2"TE"9$[WR;1KRJ76&RM?M?Z-KESKV@0,Y,^$(I`+E)8$ MX:N-??@G-64T9F-I^@VT_^6F-^FQ0:5H`YC46E\O@H1`R4F(A+I/XD--&?;Z M/F9_@FA]Y4J;;(@5-(@$:E%"+)K[+#[6%&TRT:?@CZ:]U1A2AA?]WE5QTSRI M4B4$OK4/_E--N1KZ\_8&('>4KM[7OBF7>B$#*+:0)82WO8_WM`80Q[VO/5#N MUV(&2&QU2PCE261Q:H#+'TYU&,O:-^VBF.GXNEJ6$*'H:@O+[60Z[/P!H>`J MB+@>03BA;7T.BR]\#P1S&";OY7!\[4>,VI_:N%N(F5*+8$(,(XNTVF0!1=^/ MBD8:[,)L+BBWBBV="<"/K MKMIF4<3%1/]RPQRE_K6@Z.W`HID@F69D%X06=7;05<>V MYVZ^\8^^J@UU?;?@3^NO;[=)*%`/[L''+1<;W6';O_;MNG%!NW8,BI]00"W-6PW"D2K"99I]=WVTU7NW,]]@@A_FP1DX>Q M5HX-A;='67C(Z>S\/)>`Q<+MY+=,'%[N9,K;:_$SHI.E86#7G2UM?3:#U="] MQMX#,0?8&\XTPUC.EZM!A!T;$QX]OQ8\L[*`Y5@4T?4884,(2\] MLPPKP9+ILJ79\"#3[.^XQ-CQ[/JIY/.0?'8ZE=J?'NY' MW[(-Q;@EG7R5:-*>8Y`YWJXBZ2LB1T#^!3`1.-0S%8; MF=AJZ!@K)0N69BT1(Y#L3+CF*W=7!AN1%>$^<1.,%6KVADP3@YMKB'*W7)NP M:(3IY`%1?(%KHXDYE4\6?$/&$F+"-5^Y^[@MS\#=:>DK59*4 M_,M5.GJNLLL?;M2G?$&GZC22=0LBY1@CLJ#[7]TB![;]+4I?. M?2I$J!XP4FR?L3Y]?15E>YGWPL'WPL$?MG"0<\-0^ MK#HG`IO`>#YTQ-FSDNA`P8C/MI%)$^K8M^49+F`3/ MA+E/G1&!D-^S(,YZ\7?G$"\/B/.(71B/K,R+6@9[9@O;Q<<9Q^\D2Q_RFN@P M*GF''%D,-5R$[@T7,,M:XNT9(0BW)"B[`2(T'.X@VF.5N0V_*2[OM]O M@7S/9/SHF8SM%+IXV7[\W8+I3XV'ESY^Q'9R4D-47N[\1C8MR);JB'6#41YI MV^B,W923"LEH*8Z9LRA*NBQ)&>:6.8M2W)"0^<;"+>:>LUAZKL];3;LG+4&H MI-L)#YNB')O&LY+PJ/9<`@+:X%Y3-AZQ`3MLI-C![+A"WY MLZ6K9.#N=2S;K:+H_6\)HK>GDN<(Q!CDG23-QW"[M]-L\0]GNR]]:GS;B4B7 M9;Y,5B&'T9)S20R471\T(\7DI9^6&6@(9.KRR8OO!E$`W="R.\2V$?<$,%E* M7D.(@N>IOUUVHE3\U7^A;&GD`9_I3Y7`9KZ9,DB265ZD6"(5^0QH-SGCL=4(1;_W,Q$&T6>_AEY<.;[FQI;[/?FD(5E*[O,%$<:R1=\[S!T8Q"S$G,(ET[+*R5+E MG!D(:9]G,#YYZ0X&\K>8S&G_G*U:^WC#0L*3$O-"-(&O"\79V` M?OE)]#V8)2?.7Z'@H^;&!53,3W+O`2TYL?T*%1\U=RV@XK:HBM<-;^-B$A_*(R;\A MZZ72$`@PRTG!!W.$U=TYSBK=I\:G"U/?LU-56$_*(^MJE_U4BTMZKOGHLQDV M-B^<:<:3B;Q69T-FRV75B[(CTBR$2/`EC4(WR[>B+\_9?VGC^PWQ[RG=_Z^4 M[IVWBX'2$KG1MK*G;WGLY$O:!I$.T%P@_<>3*"M9R]5UDE&B5"5,S^9E&[G3 MLJ^T7^&)6!,O6.#@>!?(^9ZV08UI7%I"-F7\$Q'@!29D0PA2L[)QK0!GR`HKWDRX.=ZI[)3)P>] MX3>Q#BOZ:OG7ON*WR%JZU^@C/M/4CMP7GY=""DI&O48ER=O0M]WFI)I`: M\E6TGEWLQQU0@6_^!U!+`P04````"`#H9&U'`0FN03H]``!TDP,`%@`<`'-T M87)B+3(P,34P-C,P7VQA8BYX;6Q55`D``T0@1E9$($96=7@+``$$)0X```0Y M`0``[7UM<]LXMN;WK=K_@,W=K4FJ["3.ZW1FYMZ2;3FM&"-%`4>9G:KI=MOG'#X'>'#P?O#G__J^#-$C3M(@ MCO[RY.3YRR<(1_/8#Z+[OSSY?'L\NCV;3)Z@-/,BWPOC"/_E210_^:___)__ M`Y'__?E_'1^CBP"'_@=T'L^/)]$B_A.Z\I;X`_J((YQX69S\"7WQPC7YS=__ M>Q)EY'?S+'C$Y+?Y5S^@-\_?>.CXV,#F;;Q.YGAK\.3M^S>O3M#+=R]?OWSU M\N0M.GGY]U>CY]\7Y)OG7D8DZ&__SZOSDQ/ZC]=W)V\^O#WY?O_CRY_[M]?,XN7_QBFB^^.]/E[?S![STCH.(%N@.#]C-(*D'_Z[@4.Z:_.CYY M=?SZY/GWU']2%CXKP20.\0U>(.;FAVRS(AQ+@^4JI*#8[QX2O!"#"9/D!=5_ M$>%[4N$^_=!/]$,G[^B'_J/X]:4WP^$31"4_WTRD?OU4LU4HO;`-]AHG0>R/ MHWZHF]J.X).VDV0[.,#K6W?A+LZ\L!=X7M,Z["OV%`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`;?;G#F!1'VQUX2!=%]JB2:3-@F MP]2`>6J))<%P2@FO2:;1?+Y>KD.Z&(;.\2*8!QD,_GP*HF"Y7BIITY"QR18A M/)XD-0$PW!"A:E*BD$'_R*6`]%\W!")6C(FXOUN-&DU8M4!1_A%,_3<1->N> M_1W4N.63]UT?!^HR5N.`"%XM#O`"8'@@0M6*`[D,L#A`!CAD;*VD0UW$)AM$ MX'@R\'\'PP4!J"85Z$;J+/82']T4'T^/T"2:/T<_!RFIZ&#NA3#H<;I.R=@G M34=S,AM+V=A:T6E(I6V21@.9YX]$%`R5U/B:K"JE$2<^4-^34L(RCKQ\]_HE M8PC[U6_3(!Q%_I67K1,O_.BEUTF\PDD6X!QS@OV*T<(@T]^,#4[MZB0E6U\; MSEFX(_`F/8DAY$4^*DPA8@M5QE!I;<`0*&4M^>Q%G"R]D?_/=9K1=2GQ?%HK M;8^#6L@5U:2B0!BEP]=:H$EBQ!00I[%W;IS%RQF=]AL0HREJGQ5BL&U*U.6` M\4$(3DZ&4GQO3)A$:9:L*=O$!WRD4O;J7PJQJOJ6")!:E^%J5G@E!^74SCE. M@D>/GI>NL-T$Z5?%P%BM8G-T;`*>'R*KY)TSJ0/()JTJ%<0Q;,^CY>I+XL,T M4BD7$45P:$8BXIP':ER*B++S"1F#JA8?=9%*N:AJP9$6B0BXJE8?7>&J>N?S M*P95_<:HJM^XK.HW^JI^`[2JWYA6]1L+5?W6J*K?NJSJM_JJ?@NTJM^:5O5; M"U7]SJBJW[FLZG?ZJGX'M*K?F5;U.PM5_=ZHJM^[K.KW^JI^#[2JWYM6]?L] M5K6/5_3.492=>I'X"*E2TF:5*Z#RU2X0`U/UO<5@]<1>+.HL9BBF\2,XY%PS`Z<+& M'J?TTZ^A]Q`OO6K32K6C*16VN&^I`K70ZX=[I>+.R66.L76N+]=`3`5Q.J#. M^MW.<>0E07R=X,<@7J?AY@:OXB23;&J:JUF]$6/H1.U2C$8'#/,,@;9.F=.3 M$Z4&*E5@D&Z<)'%R%B<)9@TB'47^-?$PR5.(<#OX-S@M;P6=;KC_*`0C?[2, MU\HQ]WX^99/<^RPLOD'LXSM@&M$>G6LUO,H86L0)8I]&W+=!Q7_.Q0JXYN*0 M0L/N*$,+O3[*D(J#H:D>HYQM>YO3<*`4DQF!E+U9C!1B-7UIB3BO=#4N07]> MB.[O---Y/,]75B)_'&5!MJ%9]9(E2RHWFJ4930$H=,),T1X?NCA24<1$"PAK M.D!MK8T5JHCHHEP9<=I#=DLIGC^_CQ]?^#B@/=(;^@/EW1NN(R*_^BU'<8/O M`XH\RF@:QX;;+,\+5Q`OI(M[W MO^&-U+F6G%UB2F=$0`D0-,3()-PIAQ*01$7?!CC*.W1&S`K?J?[;%!1&H MD@+\WT#4O`"0M+.@,BYK>9L>E>8'5OC2D+-=[T*830+4A$`Q081,2HE\`&2+`)P,+!ZT@HYO%7JHI*790K_Y<[4GV) MPW64>G M`B<`B`AM5!(:Y(*(23KL8ZJ\S+LH M-``1R0"F;,&=RZ%]A')EQ&F[7)G-)W;Y8N`%^9UH.*.0M;U"*X7;7*5M"8)@ MD@Z==+6VF'\7B[9,Q3UKZ&J`&6,:4$5\V4K!I`M36PZKK"UFL&9,D#> M_NGB(HB\:!Z0%A`7.>_$QU.ZJ3K)XF_@C#"9OT+/.?=Z@!7DO\Q5:8KUK3(J MM=$_2GT@!RE':8JS5$/#II#5=/Y"@+7\_34),"02PFIM2-S>CN]N(5&A6!\P M8D1+UCXQ)'#;_&@(`J.)&)UL4\)C.C!8<^:E#Q+7\C]9?9N(`U-[CHC\'DR- M!Q&&ZT009F:#$) M*'5\LV"7KH@W@+0N:6T2,0367GQ.J+ M6/;L0U0\^W#OI7Q>%OJGF-I!N#3D@)*WZSE]\7&Q#L>+19S0!PFRA]@G0B$[ELH)GSO:AM\<^CI4+?6CYB]+:7!.7V>W6LL6S0"(=\*B5[(XA31RH#R95&LY9W0EF MBZLL;!?LW##:;F/XEHZ$@F02'`Q^_7@/+"1MM6OQ,!40#.3`&_&/R%ME7T;' MGI=]*%@A%8]GX\X##$9.&&1D;U$H:9-Z"J@\XP1B8,*<')LXMD%:;OD8 MQ_ZW(`P_)G$J2XC5D+')#B$\GAB#%^EQ;"@QCI-"$W0\X=NB] M3D9G4XN)W>3\2T:79VCV[OI MV=]^GEZ>CV]N_X#&?_\\N?L5'%7-SF:J%!S1T>"4IEP:(N6ZG=<,*T48G"K/ MDEU[&WJ"A^8'GL^3-?;;+LKB?1<++L[^=7!-=!300!T,+[MC;AU#+RR@56Z" M+2UZN9$AV2O=OV2'RZH3:8\X6N/2'^%VE5K!WAZC"?!JUU`E[9Q.QA"U)P-S MI9),>R--P>E/='610:V.XMIASDNFQ MF=$)(('8G/L&9T&27U:(X7F.#W[[SOW?I-G9K=CM/,B7K/J=8!0SY# MH.V^,U=#F?<=7N\IG2KKJ6>F"F)10T-!$STP-.P`MOTJX`$M;.AG2\YFGYJY M)MC%"^6J10AW2DD3F@;Y([FCR#^+(YI9&T=S.4N4&E93(^FAUS(FR<7!!"`] MQM;":J7!MKCGO`X,BG4^BP;E]%FW\V8'<,*L\YDR7N$/[$Y6-FA6]9T2FN1C M/P;QBQ>NFSOB2DG+R4QD4!NI3)IB8(@CQR9(8U*,R=,\1_;_?O[RY0F=&J)' MJG:$O'7V$"?!OXC(R(XP"^H",G]\&W$]N[=TZS")W MN(IU;3';7:,(9+,_Y&7`D$T"3-3SQ9$1S=ZV>7;RZNC]RRX>X$_ MBM)<98!/-`-GPS4;1)*W-'>(;IM<"0S1BJX)`LEWZ$2<+@7GN@:CRB M=3U%,)L:P%K'D.(3+V>D8&<%NBLT^G4-]5G3M9=,$_:8@L^&M=\'&4VYY,KN9K(ZA^236YDFF!ZU$USY%+AX M)FH[*X%(R_P-J]%VMF14(FTE=S24.2"G7U,#*.TD,+5TJS3@\HT]$=R%:Z6" M:Y[5@>LXEDN#YE<-HI9;M_SJ!UQZR5]:--9R333)6XN&*J`IIW]M4<:[/;VT M.,AJ<,?QG9&FHS7C+B,[`S4P9#3'*EELACF@:SUGJAW-*349RCUP+RU-5WAQ*,GYXK' M>K09GN7R5JFE@UVCETP8#L4T")LT&X-Z+&G[7L1TL6TKU:,3$I=U2G;OF)@X M4+]AHM(`PRLCF.W;)=5K"$?5\QQY)JEE3%3_-E[:G_W3D3%*!:%\"I$(I+*1BQY1:'Q.;]1QP16)3!(W\91`&-CO3N ML%MI;//M?*84].#04L21!3:8I;?81&";+R]4I,!0Q\)L/:*>26&%GB/B0VO\\$[^=*=][U5XQ(9>_V2 M!%[5,34$G%>T"I6@E@LI>N45RKB7YN9D0R-U+]06LYQ%50BRD2JU)N.<&QI@ M@O.L\MNI>XL3!&H8)Y[T!<;:W^W%!P&L*C9P?W1>]S)$ M@CEP*0$C'$R6*R](V`7J#O-@K9;5I5\S%VI+P&H5YW3JAK.U)+S5HJ&E?,6M M_GH;#/:UEI!,EYH<+]P9+=C!.L8K@R<^MPOK8?,M]GRSXU+^3IM0T@E5VE"% M9*G$@-*E!;"U>U!*HB#?BGH:$N%G0)A#'_JYBJ.X[D[1!DP>AC10MOXRD[%# MK4>;M)I@NKY.<,6/3)9\+((9$$J6R>W5\Z^6E-W-="'$^B9Z3<0.;7[*:1/A M>[HSJ0I?8GCMO?/BS8""(7N;7E5!]((4=)5%DB8-H306+\P8:-F;BAF[4$W0 MM"I06-,-;FO9UPNBHM-#M,207V4)G9>Z,&(/A4H=G$;G0;J*TR#?9LM?3SN1 MM"6=DM7'<(T`'N&6]M^24E#(V\TA MJH%=3QPJ$88UH-?!5#V4"74@Q8O*71R+"LG5)1QD6$=@_36FU:-LG-*U\'E8CM>^X MY#AI,9R9L:^5[1_0+M:V`(H@=HHCO`@R48D9G5[N:,E^6^SE:KM-=3(#9G#4 M'[N$WC0%\2PW@EY4_=H'T.3N5C@@2-J!B-#)IGDK*5`2"P:OR@S<%]BGYY2Z MTAHS5F:$(7FTVR`N`X8\( M5>MA$IQ!W,$I\Z25=WY/O328DT'N>1"N,^G-1JV63=(8NL#32*,"AEAF.+54 M0V3\AF94EQU5\'-M-"^RAE++,-CX"P[N'PBTT2.)P_?X:DV3B4X7K50)K!PD M9=;1ADVF]G*/YVTG`V!8W`=UD].E#>3E1@HZ\Q1.X25(EGA>-%_3_"R=K0#@ MM,Y%`U;+3$#GM0:WEMFB\`R0V]LKT=/%F9<^7(3Q-]UBD%K%;JY2/?AZUE*Y M/!@^&H!L/VI0WFN/%X@J(:8%[I8[&=)0=-=)_!CXV#_=?$ZQ/XFVAZ-&\RQX MS)-HJBG8QY#E&5!/1QO3I(Y6P)"X-_36TA%E\X*QF1T;V&[/(6]K`@:YZ7VE M(%/,R'D!VY?%ZL":U\3ROX(A3PN2:&I$IT0P*G[D_W-=[!?=Q3>8UD@0XMIJ MPET\3-S;SZ?LOHBPO\*J/ZZ@%5]"F4Q2LJ/T>,SK`W2W]*? MYS10KXKOS3;"0`UDZXA/@[#-HT"O,7,I$*1KS":JEC-<&#O3R'.AU0-#^`Y@ M53DO\G6S4A\*&?.-AWX;3:!VF'IL+1W*GM+.FTE01JGE`C3VS^(E=445[63" M5N?X2L"UV;U0$@R5E/"$SQ0>SZ@T74':BL,@4?/R-FD=X9JN:P&43KV?WA,+/:]36:FQ@:X?O8);I[2O6>;9/7#)(K5MK5;?M:2JQ9 M1C-G>Z3JSN)4TJ6I%>QU72;`JRY*)0V%-L9(6^,E;GDC[V)F&7NIABJ2=IY" MZ5_(D#"A.2;/"=6?\'`V(#E(]L='6N/Y`-.GC2Q&_7,RB*%NJXQY&W'GI6!HH M[Q+/Q_E0D>)J7O"5"=D+B#*`51!L2EAETR-.9G&*Y8%/@JYUEY**%>-L*K>_ MKO&O<1!EY54P7TQ0`>X8H),$A8C-"B;S&#B)$@4>2@&I,B^>K_K!--I M8KD.7.9CB7R6T@32U`&=H-X(7@ICJINLXNQGC"_ M8IYWC5!)3P:X-#MG>NUM:..DVW-DR+LF15=UX\8%:&;,+>F[.*PFO8DE*"%\ M$"\$*\-,%:URW3P]>*[-#P-MC0G82S"E(T8#@Z:&L]&!&+ITB%`7AQ)9S:%J M!PNY5DDL&,'3_'BDI/%U,0#SX*LH,)IKP\I(T1FWZ$"CR0$JT.S-\V8,<(Q; M:0@`FPT<-6"UP@J8U:#>T'7'N(/2`CARD^ZE.%@YFO^^#A+<3"F]D925B:+5 M8]_&CM2.@VNUH`P1.B-NCSF)>+YW4QP,?,1AO&JF!.?>_!LP-;ABWV:+:KKX MY2'(\-3[>E,47?HEN`SIU>%KG"P#+QIEQ*,L2,DOLO15?1.4GV1\<-4;B MVQQCGZ4(8V^$EB\,&+>SCA:LOBK4W;7:FT/FZK"(WP>ZX-DB9B,?S;"=?(=] M1A/^:$9`Q!'MR>3[_7HE>V0T=:#BGTX#%N4,T0K>'&[1R:M4(9T`,)\IB!+2 M[3S]$!N%.5=4%4"_>:/(XD&LD'3S1;IJ\G1-K+%C!G#GE9(2N`@B+YH/L&BB M-`2@(1@X:D!^A17HBR9ZZ+I%DT5I84!R&PU]K^)LN^Y.O#,]4=C5A)O!K[ES MXM&O7M\Y,W<`K1[X1M0,K*V5WVB&FS5]XGEH+##`*/TMG9<2$,*-^:#R=WGU<9&84XG=IQ7&UH\ MB'EU-U^TIQ'0;+.7R<=>F\CN[0$L^7=DNG-:]Y@]=Z1O(+^%`H.TU,=1Y--_ MT;=G'KV0#DU&Q/V`SK1R&'':R`_2>1BGZX2]P3DO5[9)I[PU!Z,)E;8"@_D",=(FH41\S0_A.@XW;RRFE^1+--*/4@7_/=&(#[O7..*[-U#$J_O'_+\ M7QU/%@]AUAX1ARN$BJR[VP1"Z,$<:0T8:AD*O>8EZRPWSLXO.SR^?$,&+,4# M-I(ALD+.'H45,"M."H2`D$R.K+U5OI6T4>=W^'MV2K2_ZF!S@DYJO0546.U; M*7CUWH36K/B3Y^AF?'LWNAM_&E_=P9AL3Y-[+RIRX)V1F4PP=$=I![)M<]H]:''P<^]!##NG_#Z\:=W*X&P?H9KU_`(; M9Y_VJMLOH.H3\)YFHUT^'6)H]\H%@E:WQ*5`:SO?+2DPU)1":_+LU7-T-;K[ M?#-&TPLTO1[?C.XFTZM;&'PIAJE!=']-V#\W>+I*H6`YH;\&>"-OOT0:#)^T M$"6YEN@28:D!+AS11X33Z8(/I70_*KB/@D4P]\@0MN6U;!@YC$F;%!W">9[$ MN]@#0_,!G&@VA-?/T>WG3Y]&-[_2"'L[^7@UN9BZ8*L1L(#B6JG MZS2(<)J>Q78QCD'']G386]2N6O2;O13ZO5*C:):`*>IY]*'@SI#$`VJ5:IH$H'7!QL M)LDSF$"K5:PN@AN`KZUM*^3!4,T`9)-J[YZCZ>22!3&V4CBZ1!]'MV6D`S-I ME;X3:7PTLI,%JZN)W5VK+2^:JX/A:7?,K05(=ORF,H$J&]R$&%S(-'!<%T*[ MF0!&9&6([:)_2%36A>#WS]'H]G9\AV[&=Y-\4HVFIY>3C\-LUDC/3[",!W>Q M^9ZWN9J]LQ7F3E0G+?0ZSNG5$6CK_BK+39'%PHWCO1'J8TQ7SM>D"AM M+K`TFIDHV".1"?"*/BII(,0Q@-BDS!^?HX]3MEOQF<2>,W0^OAS]BB[&0.:U MPM>6R6#W9^S?][LKLY-%F_WJ`*[SW>P.YIRS>S@?VAEP%M1[>0YNKV; MGOT-G8YNQ^?H;/KI>GQU.]KN-I]-K\[9WO/H$EV/;RZF-Y]&5V=C-/IE=',. M9#167.F^]I)L<\=E$=!$1;V:W9RW9D[4<]^J=<"PU1!H^V9??K>>Z2%>$5S$ ME7EH/KSK9`$",PV'@1W4P?.UPW#Q%;V<>#FZ(T'U>D3/\=S=C$A@/0-T*>8L M7BZ#K)RBYRDK[W$T[Y0%J)L-JRE_^KA7R^_3Q0`8[O9!W5E&AD5-[W4!V%#7)H4[N<-3UT@1#&6[H&T%VM?/T>7X(QV>WDS/ MQN/SR=7'_>UCWZYG*?Y]31K&^%&7_T$J:S&-B1HNEYM$+.B<(2;HVFG'2FG$ MQ&%$IH8/^KFW7-[J)%L'NS:;E@D[YY$IPE9T>4,OW9W>CO_^F1Z5&7\9(-&$ M(K@LEUZRF2Z4UP0U%YAW,V4S-.WB+!^Y^MAQ3L@!P+?C'C.&I@O$F4.B^]/E M#S!"8W%7MN'X)O^GX3UIK;*#&]&&#@GN/FLTG;.W%]S6#2RJ3#..\)>D83#R M!L]#+TU9$U)E%Q'(V5V9D<"LK[\TA,"P1X:LO0S8D(-!DEHJ';-@I5:QNSBB M!U]?"Y'+@R&4`=,AAF=D6LR,'`60`2"`57P;HPU%S=\:4]8WZ:ZH*A9T?`K11S12)6 M8@`5Z5[9S]>#)6,=AJ@%GLUU2.=9D4\WSE>L*29XE<3^FNWRG..43)_(G\_Q M(P[C59FI6?H@[ZY6K3[:.TP1U![VW=[,Q@US<[OM&:M#UMX[$LLXY9PBP2;)< M'!%Y*!0:>PE]GC"]Q@D["&?&)*V6U<.R9B[43L^J5<#0RPRGZ''4@FE/+^,T M?8:(/DW9M"0QC=F!P;W/*9XNQFD6++VLU:O*A&PR2PR0)U)=`@QOA+":-"%" M=/EF*P:#%%?X&[3]R[S(^[F['[YG,_)^L//W>S`8:N9LO*LQ;L.2O3!TV:TFX>N!!"%K]R41-USA\S?(J'3E"N`"/.\7[$UTD0 M)[]B+RG&D]I3ST:Z=G?5.KA3WVDS4'3.O3YH54PD_>ZBS/RQOT@E6D!/#6*6 MD9Z]Z-7!C2J.&2@Y9U57I(8;'*#BW.W\`?MK^K+9UD^6DHF>6;T,O%D0LJOM M!7Y_&I%^?9W0!X+940?FBO;8W[#?L'I4..0'G+>8?7K5.AI6?(,% M:]K2'EE+6PZXE2A_\JXJM=R3LC.4%41<+7=C..( M23=(Z,.B>XN#\M=0#>*@N;*].-C5H2H.FFHZIUTON*+3$:/&]EME8J!`*+]4 ML!U>"`YY"-W5:%B\(F`"G;L)H!('0B43C*K053YY;.FI8^%\[AQG7A#VF':W M%!W/NR6.:";>#2T@Q.H`M4-^:ZCS;VDFY*Z3;'-#;F;271T53Y=-K3CG\L[0 M5;%3Q7-H!!?F49Q$V\3*W$/`UW$^@MU&`'/V#_05-TUCT"(2MYM!/@&P40WI MEVBTZU<);DF5LK['PAB%]VN+GW-0V37L:,O!2*:?NX+!33=#SND\!'K%[@/I M*+C\S%5.>\[D0706X\4"S[-IQ,X?G\7+58(?<)0R(;K%1T]3=1PL#?8=0!U& M_V+JT&5T_XCS5K9OSUJ)-)DA&ZU/OE*2$7@L>R)UA'A1OMI\%D<^ZP1)=XB3 M19PLZ<'IT3L/\4^#J$1M4JJTO0;JIL-[57%X?JJ;U,-,'0KQ/<=FHOIHR8MHJ)+LY"76%A M_:CD?WL%IEZ,8#;KXR[.R+RQ/#P0%0=1ZH<(V)]BEJT`ES:/4.2L_O)#L**: MRO\"J$X:@,2E[S$A1X7)QIFUYT+$O6%3"E`A*\")"SSE%/[`.*T>6N^Q^+ES MW/0$K5%EZ'0`58TQ5'%%A95Z?@P33L7EJ]C;$9:J?Y>(6JZF1YS,XA1?*FI+ M!U0ZOF0I\J:DN]"?F;`QL)\NSKSTX2*,ORG'72IY>)5CA%9=0U0/,448F*_WLTWJ6JD:C7E2P=G:M'!0`],/.\`MI469JN* MYDQW?_>*XHQ\)?#"<',>A&NZ87@51X\X)3,5>C\U">;D)[9>)S[GW,V`Q?M% M/1SC[AAUT'9.N-Z06W>-*A/(+VR@*(Z.D%$CU),H_,@715'\J:+&^R%8W83GR[-L%=S MUMBO1FB2\-[;FLV.=D>7^;ZWIRGG=!X&O^1:)IULI62.!8/@^9AB>ZC/^/DY M`SV;I#5VH[V[S M[.;.U-]JU^N!H6$'L$TFAE[#%I]4Z*_O^9S`(RJVN=0^0 MILI67S7LY)!D3?00XF4GN$VJD'Z@AYW+=):R_:K332MGA0P M=Z5V3$"O!FW-VARRX++8$;\=?<1HF13/OA=)]UE:COTMV*C0C[_3(WZ2]4,S M17OAKXLC51`TT8)"N,Z(6[=,BC_##W97.*MNT/1H=PU]*(%/Z)9I^*LI.^^> M^R)NQ$-"W-)'@'>U;?9-S5[=J#C7V-.>?[ M4![(7BD3'W^$R7SBZB/VI0F[S-5<\ECFA(JN31VPK)0`%>RZ$+%C/W\T;#NY MH=V^A3Q>^=>W'[^*HVT;TB2#,]2TFGW5W)5:ZE6]FG.2=<>JY1D]!.&`:^MH M"\&(81)YV[Q2PFZR22@,BD,JA!+F<"K@>\?/T:I?_RA2=-E#RAU1]9%M+>?D MZPRU]9)3(0B>>Z/Y?+UB\"K!\\#+GP==A9AEA%C&!/V_RNP0=.\G_SD, MXV_T!*V=4IRF'Q`' M`_GEMV'&#I6/5]+3)IVM0%V[D%S`[&@";'LPP]WGBB:[CDFO>'C[X+IT1"_/ MP6JR<-Q!V]YHO[-+U=C?6-4Y0?OA[90>&M2RL=13U7%&L;SU0Z,JV*W#HB)A MJVPC\2B(_5O"KTQU,$`'5DRUI*):7%'M",WP?1#1-X39&QX,`7#><2=V)A%] MM`G[74M*:`($.Q7.&1%6H.\\8NX`NL5E/\_7EZ(LSL^:BHF]MUZ;@WJ+LRPD MH_,U?37LFK4<85>A4['7/YN!KSIEM;QS7G4`J3H&FN9:R&=J*'O`AQ$'R=0L M84/4XOQ-UU;7U@<1`65N&86_IK)SCO9%W`I\I1CMIGUZ,VD=*7/(`"#H#7X, M4G:IJGQ"OFOAB"R`(*G<-2.:MM7A$U6*N?V,<2Y(F8H+49?9CG:?!-C-9Y%W M/N/([S<)D*6S4$\#,$U3-=0$0+Z+B2,OS#87)]D)M_#U&G8S<+_W`@,&D+O*:+#Z;Z9H^8Z@H2.-FX(:+><1 MK3-485PK5-$QXAY%*O31B:/1<:-YI&=TY2W2W&2OB<++]*8#JKC3N=B^BQ-4 M[^*0&BM,Y,N-0*KJ*L[72$0J;H8/_AI%_L_8O\0$F%X+(&,U4)L$ M)7_AW\<5DM1">I?BY4;C*9Q2R46*%[4#HB0O8@WGC.H$4Q[N:&0K'M$L9VNO M]L8CFGJ0GG>DF0E#EIDPW]#.$U=7H,[*UY^%/O>P8H]IO5VLJ-?9!!`N]L7= MWE[+[:![8NC%4VKJ&8JCXAA#OK.SV,MCX4/WQEP&SDZ=L53/35^L<4/<%4N4 MG'.U*]+V3:-$Q$]:=G8?L"^;R7H+J&QX%P1+UV#:P8K]8-K9Q78P-3;AG*"[ MX98%TQ>V>3M4+)UEU=SNPIOCT9(>#)(V:IFXW\YKWQ\%T]QL>=H::1+1XP611<$/WG3I07;Z)M"7F-X^ MIR=L;#5>V9RE_XI4-JBHJB&K(Q"C[SP_2`R/TW+`C9-YD$IS8O4Q9+75]':TUB@Z6X'# M^;[0#2B]50%"ZAV;-QG1+G"0K4G!C"*?3".#XI'NLL7O*:P8?/>0.AKC8ARR MV]%^%$Z#M.2I0?LM3*G;+V"F.9I=`,S?LS\G.\XOQH.<0(/1'Q3=FS<+\5[G M^(+O'%*\EQ;3D*VP]9$?KPW*7#0?B%'5'Z/I<2&E<9BM''->)\%\\&WCKE\_ MI&;:L4CWU(6J/OV#+]L9N-YLZJ4**G2V,R[$M&A^/<0^?W1P"WMII[66?02! M(1&`"@3#%VVG8##!3QH0.B$ MX,>)"7WT/@VF<[*]:FUE_#K$&K4RF!_> M(O8NJW[:B.`,Q2%U^3V+>'\G7F$%"'NG8?<=&@9:U=Y;U[]=7NO;W-W!.)QA M0/]"'FXPT!V#\Q;OV/&^37ZP%>N]-?HSCQ`^=-WF>Z`XG";?NXB':_&=(?P@ M#;ZOWWW;NZOEYW^[*2J@16B'WO?NEO:;9+/AP`U>>@&=$I>Y9]=>>!DL\"3Z M%7M)6@R+A:7:TY*]OF$G5ZNVT\L,D!B]"W8M@;?6$&<.47OH:1`A9O+9_J=6 MW7SDVO(`)5:S!I79`I?[LILS=9`,;^,?BN6<91BKBSVI8!;%[-;DF"(IH2W"]$8NV`EMAHO5V&\P?@6 M)X_!'(N']%=Q]$C:".D-Z.@]O8LS+^3_?A:GV56<_8JS&SR/[R/Z@H*D;/?X M/9M6]#U=%\ MGF#Z>?IJU"RCJ2+HN@\M`\$++RKIW_QX;HT$Y%OLC0Q6P,*!IP'49FV>K4E] M+-$X?_CJN:/Z^'T=I$$._)>'(,-3[^M-44+IE^`RG(\B_QHGR\"+1AG!GP4I M^>4T",GOK[QLG7CA1R^]3N(53NBSF:):'/H;X.I^3PY"9$RGMT]@U9,(&\0B M/O-6098_Z,3>%;\A@25A>&@X:9>Y6AY8)1B!A5DKZ0/IH7'P2%>%`_\B3L2/ M('(/%HOJJKL5<#78VP60]9J_'OV)AF'V\/-T<9./H*Z])-N0H1E.K[T-/0HJ MJ$YS96BUV!DYQ,H[QPM,_/"G"_)OMLY'QELG[7H2RP&K$B5(F*5?-G7N078R MJCF+P]!+1+6@D@=7&P9@(=;*^#N9E28UQZHJX/X(K+S;R"`6KO!M]XORR7:N MQ[NCD?,.?\].0S+I;E=$3T/`*FTW+R!6\,>8IJU+_%EEX>!M2K`:L84+\SJ\?$*DW]$V:D7?7WU"3>3LJGDP%6$ M`N0!E+YAX1]"V1]`T9=]VXF\V!LBX(I<;16;-JHI&'7A0CJ MH=6'OF'4Q0^H1B`WD4OLI7BZPG2%773RO_YW8(4N!`>RE*NMHGQ/O/8.DJ#4 ME?+0:L$$+,1::1ZT&LV\R(^C\M")8`E9IP&L9@SA'D+=5(?@V+&Z!/L_!P1E M$LR]4#:<[6X#>/T9.W!@-1KYT^P!)V/BTXH"[%253>7#J4,)\L.JO-OU?([3 M=+$.QXM%G&3I)YP]Q/X5SJ:+T9R4SIJ='CK'JQ"+SQX,9_M@JKZG8Q"948QQ MT^*4V%W<])H[VGM] MA;O'2.^YB.JU@S:TNNP._4#JKTA:851;A2S\NJD#!5D327P1)TMOY/^3H&%' MH&2C5ZDHM'K0X(1<#6?Q/."2T\,D8,L=.5TG5;42O!J]2C#'#K:IUM/5`7T%"89#5HD(*L3)N M<#Y/_N@%41BGZ3027RE4G/KN;`)8Q?7%#[DZUU'2\,KX$']G$T"KLRM^F-7) MMKF+_"0L6R8_!)HL9UY(1[+":C14!5=]W7!#K+;;^0/A7XC+0:MFH*X4!U8] M)EA!5LF_8X)J8-1QY/^/2,<#?2+AQR)D[P+X$1EY0(G1?RP6]G`=(O_N$L_' MRE/<30E@]2B!![&LG69DAU5KN_AP^%6[IY3DAUS%;3\@5C._0C6:S^-UE)7; M7'G MZS2(<)IR>4C3\JQ`D05F&T(W&8N'L&&DU066)UH M@<*JB3)U-SN0S1*0UIJ&X,^6'["J82Y*6H6J6;Q,!N5"CLJ6NR=49)D4%7%; M"E!)*\`U"YP3/4*%L/N"UY0XS*(V*6-7\:*\?"CJ4*5"@(I9CJT504I)5(JZ M+O,J09JRU"LQB.4N0"@Q-JN&U]@&JT+)7;SBZ4)) M$D1K@J^(JF2N>(H7<8)S.7:2]%,0Q4F0;FALLO\M"!;1*RBI)"D"G%`I#)! MV20!U2DI$$>(*J)X@3C50W_P"DJ';@2R63TJI4/9Z(52`5)@S4)O"D+(!=4G M/QJ4@M<";%:`3,'=""FAF93.S MHP."(0@S@YZ6!I\ATA\5-LO))?(B'P%8H&T[W]B7)%[3@+W&OF9)L9\ET#SH MY(`A#TJ;J##*B%"81>X6-_>0K`]HJ):@U,3KNI:KU0:8S M.^JY72LH%L+%#A#U`8JC:#9!CVE=DA[?(:JE=;*EJ/Z M+NK>:-A(ZI7O1:@^NP`MEF/I2I]S;A01D2;!5"BCTH#___U7//' M9:'$Z#VZUIY^#OVI'S\5`Q2:]$/="B1=K(!(O3=`EE(H56@,M+4CJE&$-2;+ MEY)K`Q31BGB'<9JA14!]_4".=!S/;9AW80!Q099N@E([H MV.K\+$.E&G+9HF_P:NN+[,EGG2R@BM%";-9*I4#KA:F4BQ6'^+`SE(Y/`Z]9 M"V)Q6)U<\;KK@)V(.S(,EO M#,["X+YV^89O;5)A`-5DCK&U5DC--0"&Q(^#V`+94SW>XCQ"UD/=D1X@9V>YWVEZS+UT<,-/%U;IYUW5O'P'4 MI/?G6Y-.S,SQC-I!_+<0]S$Z1N;EB@\B]L4C5'R3_%!]]0CEWSU0`A8)?U@R MZ;T1L/410$%J?[[MDX#<5P^<@/)&UL550)``-$($961"!&5G5X"P`!!"4. M```$.0$``.U=W7/;.))_OZK['WC9NJK=!SN6[60FV9V[HO7AT8TL:20ELWF: MHDG(YH8B-?RPX_GK#R`IB2()H$$1`N3-/$P-CT9WXQ__^VWE&4\H MC-S`_^E-Y_SBC8%\.W!<_^&G-Y_F9^:\.QR^,:+8\AW+"WSTTQL_>/.___.? M_V'@__[Q7V=GQL!%GO/1Z`7VV=!?!G\WQM8*?31ND8]"*P["OQN?+2_!O_GU MGT,_QK^S8_<)X=]F7_UH7)]?6\;9&:#/>9"$-MIVV'GWP_5EQ[AX?W%U<7G1 M>6=T+GZ]-,^_+?$W>U:,6Y#?_O=EK],A_[M:=*X_ONM\[%P!OQ9;<1)MOW;Q M[<>+B\X%_B\C_X?G^E\_DO_=6Q$RL"#]Z..WR/WIS6, MA`]O+S'EVW_>C>;V(UI99ZY/!&JC-QLJTDL=7>?#AP]OTW_=-*VT_'8?>IMO M7+W=#&?;,_Y7E]&^,)+(_1BEPQL%MA6G^L#]C$%M0?YVMFEV1GYUUKD\N^J< M?XN<-QOAIQ(,`P_-T-(@?WZ:#;=?Q0,+[P,K=$(4I;A'YW:P>DN:O<50)2OD MQZ;O]/W8C5\(;N$J'39F)>WW,43+G]ZDO9P1/;AX?W5!OOX7"''\LL:J'KFK MM8=E\_;@`7<#WT%^A!S\0Q1XKH/5T[FQ/"+[^2-"<<0=-KR+XP]^:H58H(\H M=FW+:X&3VOZ.PA8Q>D2T(YHL)VLR@V&M:`@.NZ^CL].UHL>!%SRWP$VEJ[:9 MF:%H\SGN:&O:MCV<,5X)0B2D$722M@(2O"@DL5C3MF)E7;0YR&`<8R?C'M/Q(W M<@FF>`F96Z1WSCCYI&T/=N)Z^`NI$EK>K17E(X`H`I^T[<&:483B&9[M,P0G M]Y[[`#0S/FG;@[T-B#DD^$-V#WG6RP#Q\6?0M#V\'@K=)]VR^].H:MSYW M!C'""_J+=0\PE+K&K<^7<6!_O;'2Y6VUQNND9C/ MN!O`]'E(K^TOGQY9LO$V*GY9A!8>C`TS)QYAVP,=H0P M`3-)93H2A)<;"+$6NQBH:K?1N4X,\TVDE=YU8EE@L]3F5U@B6&,6\;*4=C_" MO]@C0=]BY#O(V71$!-#:=2W^->GM(ONO8YP9&ZKBCY;O&%D71K&/G(<-%UY@ M[PW<(S?:0<@5<_JKWUFC->^CF$0P;+KRK'ODI1_X/26&T;YM,MYX3L M\X?@Z:V#W+>8@VOR`V'E^NRBDU^R_P7_ZO=L##/TX))/^S$);*@9.FY:W[(\ MT*)ZF*%M!*�@S:ID\KM/>4HAH7D+=XNTYO>,_L1]?;ZM,R#%;"LLSE%G`X M*8H7C^'H&'0Q(WBS.L3V\^T7],("H=(4B$)'0Q@H;*O`8!@XM$X9$0#SWJHEW^I M"5#NUUK)O99-I?+NH<@.W75QAT,1^UY+H/3?Z2G]&J95@-!-0L+JP(ULR_N" MK)`Y_]!;`\%XKQ48/.;5;8%^0Y[WBQ\\^W-D18&/G&$4)2BL1X5#`H3F!ZV@ M`8E!'3Z?`R_!(@Q?!JZ'PHB%2Z4I$(\?-<2#PK;"HT)FP3.T#D)R%Y+%H3-/ M#!0*("H?-$2%+01UX*1*TL7SZ4,0,D]QI8;@,YR&6-3RK`Z"[/YAX`56G1MF M.^J]9E#QZWB&KN%7X>04K%:!G_HCYX^8\6B2Q&EV$+91YA3%I(/"H]=A&RX1 ME4?P;">8G4@'^'>4E831'(J.GF=Q*O_J02'; M>13T,O_U[]MQ3Y8#U\>\!C-D(W<)Q*;,D9QS@S#&)A4RBY.&B`"X5\/I-+2!2B*=R/EPL0@47;) MT@`C+N=Z`+2+1]MCC@X/E4#9'4P#<#A+UE\L@C*,[%#\&#MZ>3)9XUY*LDC11MH?6'J)< M\G.X%?^"VNN<)KC!<&\J:STFTDT>S=2S,I?81@JI3%C+')M.\8W1`7`#&3P) M$+$2-H`PI5)\YR01P()0"O!A_I8(+[;.*!,4E8F4@SB(+2]MJ13X5!!0UV!M M8W5W5X<[H1C=QL&4=TM2=ZNU$S=A15`K@%KY#K)OGRV'`>^ M+7JH+M*HN[421H7/NAX0%3CBGN3JVD(AD>;K@$-"9U4[*$`8P(4OS:/12/BO M9>'G026*DC27!QREUP70R+7N7<_--ZQI?,UCX&%A1V0?&K_PMVOP'J`@:^5- M$>92I^FR,&KP)3"+!HI@^\Z15A'4^CYX@CH! MWR[+0A4`3?V-IH",I'DW_R]P_7AW??>$_*127+'LKV330/&0%G`!QP/`C63Q MYP.\(QZ8=,239;&\8EVIRS(:0EU`P9'FB!`$IX%\])@'1X'_L$#AJH?N^<$: MM8VA4$ES4`C/:PR>]0"%6E@)=L7)I(3")101&6YBMI9WM/EX@>AKCS>]8.&N+WI1!"`93F1H&A M0',#,\6A!W;%%1H"&:T]%"EIOI`F2+&9UP.@XH:VL-$%6AB,&@J>-#=($_!$ M!*,'E+U\85Y8WX0G2AXE.'Y;)PBA`M$#/GH15@B$,&HHC,=PE8!A%!&,'E`6 MN`1M+N'`',--`E_?JFR>^D&!Y$V[<5HK.RMD2-<#H!DI8NTCIV^%/GGO:R\?8.G:+F/U@=!"89,8^2$(&UPB>B!8 M95!DOP!'2&)DAR!"=(Y/?<_.BS4"'<$HE."<:&UPADJC5=1UKHE3_VSW7H&< MJV8%2_#^F+,J M=682/P:A^^=N(N"A6:4[X?([,)'H"U]:-%@0N@V-ZIH]+<.V+PI](6-7RF0P MV*14IC0?9\O@22Z6V8J71GP9!!&K+@)T`)("PM$.3?CRQR12726H'?3T7O@J M`^6M>E0"U<6#VD2+N]YI=D3<\AY-EI,U"K,+Y?KCX37L>#A?X#_N^F-\-)P, MC,FT/S,70]Q`DTJJ0Q]+!&WYX)\+J00J$UK3^A&W5D2>!([RY`DZ"Y3FB@]Z M'"3*::XLEO68$G,#\A_RVF*0JA5T$M4'.$%X>+SK`=&V3A&>[C8*M2N^P@H- M8].I/K;QQ5^."8/(05KZU0A9$=J.N4;L:;-R*]7'*["0:T>ODQG,D8?[?+A% M/AX>@=]T5JZ?/LI)(JIS_AB^4B"]ZF.4J%F(R44/++'9+E$4I9?%`\2:Q*HM M51^41/&A\2IMHL(?=!*;B&-A?:N5;=JNTDSUF49LJJ)PJ8=^DQSM=*GBSDK5 MEJI+HHKJ-XU7:?J-O^,%X=YCWV7=WFNBNK*IF%[7<*>'3@]7:\L-,Y^#T#Z4 M2ZBL#FE#C0=*0@_8*LP)'.Q4%@UMB`V5W5,/E=DREIUQ1\SZA;6-U=4//13+ M*LLGCR8IPC4._&"?Q5PPP,JA`'KEQ40%/3)"8M%C@MV4@^%N]2H-]2@K"A=W M_3L>]&T?T#(_9);IHP?BW3_$-JE;QMT$,L`RV*5AD_08PB+UD`0@U*,,J3"* M4/;4H]I2Y5_+]0FC$[_G1NO\JFRRS&H<=NA6RZ/3H^1I4R.&246/B9;*(QT\ M!HD>U5*;XL:5Q:EOD/9GIBR-,<',[BY\;]`R"%'6+G4!W;E^$*:OAV8+$SZ7 M[?>215%GCT$,_2?<)+U%YEVC'FD0>A2&;;X;.#I>KT/%L2AR"=\@'RW=N$YV MT!M_P]A`L0*CJA=RF'LD`.>2631A(*+WR M`K7MX2HF,CU@'J,8XEXK-5->Q;8]T&H%H`%3F$^;N`8V3U3T*)\M*('_*!!U?P6Z4U\IM M#^U&`M0:^UQ/!1)7*P4-R^?,,!#?WNA9]JQ^Y0ENG.9 M;-*7/NG`5#2K&Z^&$M-C/B=1;F[,WC87VZB.%#]`WM7POGW&]0#$=/Z5Y`ZS M13!#=N#;KH?V]O>+H#4CE?,UU1'J#>Q8IMCU4*P>PC#8;@K"-B2?A!VO@C!V M_Z3%Y6V]`A!JU5'S4E&L9#6`Q:F'`B@/!)2V,S\B["<50[AQY35V>Q[J[Y1V M>7Y40P<)40_$-\XC]4Y!4?$ERTR/6`MQ^IC*7@)<0W0"W4S M]GQ-.E.=W7!$A3A`V/+>D,.<8:Z1^T3>1'"=01#.41Q[^2YW%P$V]#%O"2T^ M(GMOK5%?JK,QCJ$`!XA'I]EB%QQ&\M>+0V;,"DPBU9D>1[1^@/"^!U4>&E0I M[1IKG!$O>]C4DB&%._L!A%]U6#3*,]1.=KR`)'=Z4\06&HA MJ2G00]F?!3GEY<%!H6W@/I3GNS1P&8K+2-KV3QK+H9/&U8;:<\ MEZ6!%`,F1TU-,`\R?4+A?1`A*?-NZ1EJ+EST]LJ35PZ$C2<)E?#)FD&G(5KC M\\3&G[2)S_:=-(`[VS>(S*:P_I3GN337E`,Y?[UK,=Z#!(D?;]Y*)+<.>%>2 MX,%"7D%KVI_RS!L)FB0BR5-84M)*=1MNH.M*F4AY1DN[BTN]3$Y_7H"'0K01 MI*-'ULEA]B\NL5//5:)PG&5EM1/0Q>Q+>;Y+>R%=`)GIX?[%,UWN!S'M/Q(W M1.5[:L;S/!!:Y;DN!P`4"'.K?K5@N/'PH#=^Q]\>W1A-K*^S3:CN9W?DD12" M*0I7KN6;L6?YL1OA7V9T@U"5 MYJD\'%4(FZ]EIS!#ZRV;1>6EHT^G@$(OS1O9&O0\J6AY`-C@MC M>1OO2#]+VHFP(.;)>IW];??/0W\9A*L,7$"EA#9ZARK8,1Y[AI=&:$^N>JPX MF]@@DM[%BI,KMH(B)S'EN448ZI\$*,I##Z0VO(P#W\8_[CS>OE,S)_;DH$O?+>49TV<*31X>510$*5Y":6`").5-*B* MZ="E`.K%8Q@D#X]9ZJQX7$@;/4,AE^93E`)Y>S+7JHKD#(LF7\2VX]LK$_G> M.#-V(L)_Z9P;L_ZV*F2CTH]4Q2Z,AK&!2-O6-FW7S`J?6&`!WV#JKX#A%-JJ M*J=(EU"-9K/8U$I74Z,B)E;UH^VI[`]EE;T\-\;FXM.L3TJ83J;]F;D83L9S MA65+)^&#Y>=%RG;U6[,"9M."\";+?,:RO%UI5\`K=^UTK](13<6ZQM]EFH).USI/5R@I?)LNY^^"[2]>V\#R4+9QX_9UBB=C%17'/@G\L M6_#5N3'_='=GSKX0$YX/;\?#P;!KCA>&V>U./HT7P_&M,9V,AMUA7Z5=5QD$ M.+88-`HMD-0^CR;+HK82/P<+3-8JF7=[6*^*K9J/;LE4VY"A5D8]L-PP]5S? M(8N8YG[QI3T;_E"VX>MS8V`.9\9G<_2I;]SUS3E>D=/*X@H-=LO0;J@`DV53 M*33:NH$!K))#IMCL(!B5#`\D!ZTL:Y/P5,AF(5.%50A#*II7YZ)L7N_.C>F, M;&X77_"B^.NGX7Q(=KF&.>X9B5V63>R'<\.&[<3E(/ MS2=LK%VCUQ^97XQ!O]F>E.JO3V/W%X&8QS0EA5"V>[=0(TSN'0.;1NE=`UST M>U8C7J,]*-X&UE;/Q#N)GY#PT M#N,YJ%.E3W,(CQNPIAW6J^(UK@7]J#S=<;B0M;+_VO2P/?M_5[DOOS@WQI-% M'Y\$S2_FC5)'#$EM%#/N^O9*[;8X))!)4@B46QL+BXHA,;G6RD;F,1Y9Y3T7 M$@L?^)L(VBD*T]A8WT;F,^Z&LIA6@T\ZY\9\,>G^8MR8V5.E=]/^>&YN/9WD M%=/4[VF.C&E_-IC,[LQQMV^8OYFSGE(/S!^)&[\`?"ZE=JK?,GH,/&P&43XL MW]F]UK,MWL6W0?&>5'MC:M&J>[BH@7RTLM8\#G5JA?'+(K2PM=H,CTPEM*9S M2<+!1NE3P5.3W#TL9B8VR*YJAPR-+[X%\BF59O#7#TYH213J1+$E0G&LY/0+ MRTDKLQRA![Q*9K5&\$Z98HZ5.)G.U;DQZM^2Q6\VZ?;[O>'X5J45XAW`RHTW MV_XL%?8!^;9HKHA8-PKM,\7MSHICO":4APJP3""Y8IMLA&K)0(4$I95ISI/[ M"/V1X([[3[2PZ4XE^J5S34+8;N;]7S^16XO^Y]:#ITOCXOD\J'+I%1OG(2C7!WD"):9'6N\,V9X512GKG.CZFJ;*`I/:!X\J M"#UPVLL=`-L@FPIH"]B=V>DK<%\/B),WB=*FJ(UF'@)*GOJ8?O7)&G;S&S^977+IQXN+JW/'+? M1&%]`\_F=`H@ENU7.6G?1'EBT0.\OA7Z MQ*4^16%Z60?&D$L(A++]6B?M0PD4DAZ(?HK09-F/8G=EQ:S']LKM@'BU7ZBD M?;SJ1:`'/&/T7.`K#'S\HYU%APKNB<5[`KLJ3@#CIG+4RG=>"_)C!A#YAD4B%3E#:7]B)R$%/K:CC1[[AR? M6PI/5N>C=R8^/MHD(7F2(+TF2#F!W&JV^QFEIBJ@#>5;41G"ULJXZ5G_+`NO M)%CQD/11;KM=L4UJAU6)7RL%(:.L)[TN__24%6>H&4U1N6AEF,2N998J5=*I2 M;O)AIO<]25FB7==R,/0++Q!L<^^G0;:1V]J%D-&W]"'ER95MIS)+@D+:=?3V MD\4!;P=6&#EW7=B?9$6[4UW$K$5-.$P0.MW(<)2YOUPB.Y[XD_@1A22)-T2/ MR(_21L1A.@JB!MN)UCZE+(!1U>32'`^MMBF-$L-9^YEJ-NIAZ>&2CAX'\,U- M,&BC:RTF(KP!3U;K=,=-GMQK=%IA=:`VWZ`]#6"=8/@"U&WYV67+%P63BFN2 M\9+/IB_B"M&\;\7Y#4=0ED/EKM6Z4KC;S8_]]C(*^ZN$$X31_C-9U_)5&6'E]0NYN7PE_RAKYC MKD@\E_G-9>`HYVLGI`ER!%!8Q94^FKP=_2`(2YSV@I7E^G3-`!'K`;1,DZF\ MEPR0RFZ_KW0CC'P+LS4-T9,;))&'&5X'88R<.[2Z1R%KF\NC5.UX$U#LRC85 M)A4]#C,%%=VQS(./2:3:O]4<.8`L).9?;;]-E7YY*R@H\?;S99M+G,:*3J9Q MDR5OS1\1N5M-"W()/;,$I5<]U=$WY952$2("T0/$/.(2]GB!."C29C$P*/4, M2INGZ$%#\\2V410M$Z^_7.+U+KI#\6/@C%'VY'"R2C*-06L/$2F*QW>)?T'Y MS%@/3B")79T,CQIN[3)+\O)I ME25?-T6E?'2"BDB!6B$POFM%CP,O>`:X M$]E44+S4']8@W)_^>H9G[*4;LZ?%8ALH?M).:R!8*FZI$H]ZV)>LO<3OEW"< MI!W3&N`$8(L*G^XU]?/8M;$5AFF2P):5O4#'RN,3@K7U\Z\8V\^H3`BL"@%P M%\6@T6$E/*T`2H!0V4O?]Q!*B1/CB8904A[H8D=",HE."!,TTP!OPV+4\[R7UAN#=ZSCPGU"$ MM8^$RX6NC7]*O2;4FD-B?>@??=:`J>.CE.>="6"RI=`_U(S+@DYSVBV>DHF; M8^+C0^0Z+V$Q6%-RMDS?:TR0,\&3,^\)J<8=JEZUP%/?@2+3RA/! MJJ=4ZV^XJKSEQZHX*R?)DE>;C)=R":?7X>1Z6OX#00%_]R5H>6;5V)>PG;%N M7K8__NSB23:T'U]&Y"$@MEL!2G]":$%9TL/94+OD5,?-):E`7?E8[P95ZT[7!%BJ`"2$_%TPB6@AZ@%0I%UE6/3+FA MXP:C5KT&PB$)&G"G$YJ%\/%&=@BE5SVO-LE'.H))4EU`.Z4I#&CB>MW`\RSJ ME1F/2G7&)-"W#&->*S\C_>T1IK.Q\C(<__&;@UR.+95"2"*,7Q1U@]6]ZV>. M+T`!!":5RLH.^<`*V)$0NP&I29B_Z"L"P:MOF.MMY3E) MP+-7IPXRVS@T3\A!Y+BP:=4O28?#A$;X;&1@QI:/G7/G)7S>>+>MH M5?N#9,^7='GIB>]^';<0V6X*Q;:FF[D*,!=_;MY0(,[)[&?/"YY),4:\>T^# MT['D%@%+FG"].>:85)<6DZV/Q\=73SUGC9Q9$%"X(Z!&O3]5C0)*4JNS.SUZ MDGEVKSP4SWU[]]C1N<"3NT`'JB_GZT;)N92O)U%Z\A9&K.Z&GB6*QN[2=?H. MP!P/,E;O,J6R6;B%&_IV0KAKH`2UO:A]G4J:8C`D)NW,5_CF',5XYG1Z24B. MG:F.T28C'I6RT_EA`(%XTVF+1.44[QG#='.8W]$TL+QJ%\K.\W+-CB8KS2&> MH28V(`M,@IFT>_BD_C)`J%SGB'*^N2Z?;WX\-VXG:3&C3_A4TS5Z M_9'YQ1CT^S5%C=H^Y(R#&$6+8/L6^#9RBWNZ@5"V[.Q&ON7%+X,@+`N?ZNMF M4"@]J<#%ON_0YDI`*P=`&M_G9GK+//*_*YO$AW-L!;/AYR$^XG^6=SE?,T"> MVC-)=$CJ/,$T6P`,WS-K-:FR;"H](((H'Q6P.K9DE>G:#8^>QYJVK&FH.OX&HCY[ M&RRTH7FG!)@>(]_KHXGT'%>\[0?%*BYTX0+SOCB[>]U#QOA<4K[1`@@/$^U[' MW.\=/ST4V:&[SHJ,+5#(.ARQJ4XEXQO"NVXHI5[<;49L&JJRN5YCO+\%I5>] M<6P`'40@K\BO7?3%G.TRHS.O3*?>??>>Y[X[,TA/QA/I:N?4[DCTYI5'+N+6 MH]/J8Z%1EP0;^*`*#"4"I8YO$8S8)EF6P.FG,I89'`=92(D(RD4:M3$W+2)= M%<1K`KL0O2)@U'54:F-X6@&<+@S=-DJ[?3=YD/-GY#R@J#!Z,>,5Z$QM2$\K M(`N+3C?L:ZO^,`/:(;1JHWA:098G&/VNI_.=;G^Y1':!69F#YQ5?1S4 M;,4&':G?WP(`VG/A-):6;O-BH:*\Z+1()=5@%RN`)YPOR3[0C4XE?EC2K@'F ML($%"G2DP3ZTJ0D*BTNK%2T-*YM:+R0Z`/3JXM6/Y36MNH]%"A?2VNL0)71:H5H<@=;.@]_CM%1'`VD=IW4?[XZ"O.BL M:ML30J%N^+I$8A5'-K96@"@L&H4>@-#5B@E*D1%Y,5<.6I.EW8]O+/\K[W*Z MMK'J*S2>PI0NIQD,2[S_W_LJ-P"KOK7Z,*'F@M:RBO\^0P/+1N:*/,X,G6J* M%*<3`L#F69H-W`1A&#R[_L.-59M+FI4*W6^D>FKA2[5NU+JI^&_(?7B,D6,^ MH=!Z0$,_1EB.\8R9[LDE5!T3*J3Q`!%H=6Z>QX']E6B3TPU6)*/8RBOSX..^ MDY9,M;PI"I>D9JJ/3?@9=\/.:/I0.5=WSHWY8M+]Q;@QY_V>T9W<3?OCN;FM M^MV=C'MI#7!S9$S[L\%D=F>.NWW#_,V<]0[-@&I'N_M_)&[\PC]SE]NI/.F1 MIV&KR(:AY3^DZGSSLFLRM5[2+2.!=WN38491LLI>/"5Q_(,0`4WZ")]6O`K6 MZT/Y`'HL!/18`5IEEY0W(`\M=SWUR M\9'"4:!U^Y]6O?M1IW-U$&BDU,V\:S_Q];RXZ7TXR]9TD,=8=K`?^PRSPO$$0DG^4L$YQOO>J M=^$@66NT(+7#XSAAORTJX5.O>UO-$_'KJ*QYJ'AN<<,X&OI9X<(TUTB>#M9^ M['5OM/EBUF0F(]N>(=ZH[5>R3)F*TG^<;'9P*+3=B%6GM4E?I[$5;BPD34`^ M4(OQ&KQ$;HPWL22*'N_EW3#M8:O8\J8.P*=55P$XRD0"AN!U:)S*#9+2^IA* MMT@2RV>>H`[FDSF)M9*M@S6?4ET=XB@:2!7Q=_W;,\_2+?=FFS$-75N&MUQT M`$!=_>&D=540CG^38V8D=`"2I,=M#@*HRS_JKXQO>5*NDX#B` M6OGAM+6R$3BO1C$K1SIEJBDX$K`_^=2ULQ%")Z*?KV0S*G!X[[R:"PZ>0+Z? MJ6H.G&K4&#P`J!*?]OV((!YJ59B:`2'/E--]>L^*=^5.:`D6QQT#5#L5W=LH MD,B_U:G_D-,E2*6E7+^VJ->G?9G4$!]I&60MK2+(.43E6IDSFHP$JG.*+IN4 MR45SI>N2,%!/`YUK,!"HRBFZ75(E%LTU[M2VB2)G<45W0TIDHO59IL3!#)%" M`)BS33FJQ/)&[A(-_2_("K.=1&U,6-I;P\Z@2J/H$N80UB1/,6*C*BAN.PCN M=0A%4=&EQ:'L49$\S1P6=O6VZXZT7!8M:KV=8$[+#.%!N"2I*H6=^Y8[K?TI MY)2P>=7DAF47!SSUK/)[\91HZ9KVIY&=P616#T#ZJ[47O"`T1^&3:Z/Z7=XX M\)^P<5_[P91/`[B+^2]<3MX\$F]3L;T(.^3)Y$N(5WD0LMM M_B_D?R1)%?_F_P%02P,$%`````@`Z&1M1SO)6J\O#@``*9```!(`'`!S=&%R M8BTR,#$U,#8S,"YXJJYI[X,.09";9F=URP&2X)9C!)#.S+UO"%D0;8S.6G8_[ MZZ\E?V!L(QN2;+P'\[!+I&ZINW]2J[LQ\L=?'A>6=(]=2AS[TY%<;QY)V#8< MD]CS3T?7>DW1._W^D?3+S__XNP3_/OZS5I-Z!%OFN=1UC%K?GCD_24.TP.?2 M);:QBSS'_4FZ098/+5^^]6T/V@R/W&-H#:8YEX[KQTBJU4J,J3N^:^!X0/GD M_7%+EIJGS7:SU91/)+GYI:74'V._8I0(V;^\,/ZC;Y_')-O\KS1>'AXJ#^TZXX[;[1`PL:WJX'.Z8X"PO-'B]AW>>3RV=E9@_=& MI!G*QZEK14.W&ZQ[BBB.1X9>(J`G-O60;:S1FU[,D"0^:02=:Z0DE_0T("41 MJ8E3=!0;];ESWX`.H)>/:TVYUI8CVSATR4R<.EQHWV$;-N![0;^(&QA;.3/T!-21V(?K<;]H M%D;6@&WI,\D5VU1MCWA/;(^Z"S[7D43,3T=""C8[R,+G-_&,V(0+V0S^R5)- MBMB3'Y%M2L%84F*PCXWT,(G!?8I-S?Z9?UZ"'C`,9QI`0\@8DFQ@,I!E^-9V M/"M1Q@^AMSW(>RF*XHA=#>+(+A!U%_RSU M!MK7`X0K",>81G8,,$HVB$$X94$%Y!&60WT7PQ]R71JKLUB,[]/F[E5EX;*Y'JLKONE/;>W[B\6R'W29CJ9VQ#X&PB"9L-P?(AT[?D( MO(U!<(A!25HQ+A_2N+3KDGY]=:6,OS-@]/[EL-_K=Y3A1%(Z'>UZ..D/+Z41 M.*=.7]UWM'J(N+SZ<(41,Q_W_P$X^5UB+,[26!S7I9[2'TLWRN!:E:Y418?] MPD^"/3?\R'7`\7A/BO'#)Y3/"JFECBP<6%_0+X1`;J8A.*E+HS%S3Y/OL`&^ M7/?U/O-3DC*$@UD9J'L.A$8L,"P_#9!UB6AH^-A'"?K%0,AI($[KDM8?<+OS M*'H%S\$4*I=@;0UH6^!IM:I%Y\L06](N1:*61>%^7%%U7)Q`F3?J! M/Y*TBT'_\G""`PZ7#CM\?3"OT<46>NKAT"?E=8@MWTY;_D-=NM3X^7L-]NY( M776@?)=ZZKY[H2YVR3U![$N/<+6OM8BM?)RV\ED=##ONW_1A/=_LO5\9.AZF M(_2$IM'ANM8BMNU))KEJ0MBO351PW,IWY6+OST_=\4893)I MN<4J%@->*QHI+%"=C!7`J',XCG%C@.>P#5S'P)A]Q1Z:/M,J-GDF298A2QZH MEVS-C[6.JG;A4-YW2^O^E.(?/BBFWL=UN'2CV,Z9!%@^9M6("UW]:=5RBGK!0BF8JUV&S&(Y,HKQ>OY;> M!:/LN[5SZW%)NXL(Q`AD$N3-9;L#&D7UNR0DA51B7#+I3N1=4_0[@9$M123ARVL4`9%+Q5%GJ8/!G M5%"2R#QG`#&$V4S]>=64`^29R+F+/42L;.@2L^7-HQ$@45AAJ$AM2NF=CKG:%?``&C![:7)W-L!%EFZT$ M*/G]8D`R]8((D!B/8#AI!49KW\%(/HR4GX`**<2`9.L#Z<>7#JGDRQ3DU@Z5 M9XT@1C3[A,%S2W*'T^K9J,O/A[W@K#O.E"!>"O?#!&=+33=5F=@P=8K*CM@X[^LEK``M]4RM69?2=?.:I:7U1BVS[8:K^^X M5U*X&T^2U#>\W*6QNMTE_#M]`\Q'T-QQ/)[;('G,),_QF32\J^+!"3$LEB2_.G(]J&L:7#WSZ^#E MS:[O,N&Y:)&6A52%ZIE^<'%#1C_#Q>9K*KCY&S'=-R"SH#/?4F<0XWOT"GNW MCCG$GC93#,-?^/P',UT,QW4@>F",%QVQJNNBX[OLXJ4KIB7'79LE?T"T_C.] MP"[;L>RL^&LOF/\XQ/;XO9:8>F/8V+:?4;6`IK*ZJ8]+RXDV8J#*>M/N^_CU MG3)X5<8W08]K[C?57%D-!A@BPO`"&WL>>]9T:V7E%ZUYN9>3J&K*+9QBB;5.;P?\A<.`K/_;O&WNKJU!R MC2V.&O%*(E/+F%D>:WS-^7.2->9*3J&FH5S21* M4:!+QP&1W97?*Z"J;&(^QL$"OD3$MAQ*-3L_ENLXML?>MQ'CO@MC=6&.M/%M M-Z47\_`ES+`-8W7-<.&XKO,`!_<%__(I4#'=6-FUK-\B%V=L'1K;]!>OF(E3!Q.HC=@T"?7T[*.'_:8;>:>8M=FHU[=UA.\]Z`W/O M,O&;6SLEY!@OP)?S-"9PWCZR!F2&^_9WC%S*=<#Q5U6[,F^M=4`1M?[Y>B=< MUFZZKP]0`?US?GA>48=Y&*!33;KUW^2J=S+QKC9:(87O<>8\.9V]&/ M)%L<'):`K.$O25K;"TK<-9X$'Q;E$&<+* M:CER/&B`M6<]=8GE,[F'CGV/*1P+[,(*EQCL]3'LJ%[5CK;CV?&DH)S_E70, MPQV!1BN*MYMF'_XU./GT[I>(H+JB`\IT12. M)#-?]DSOVPN^B@?D=9GS.JHD;FN3N*U*BMO>)&Z[DN(>;Q+WN)+BGFP2]Z22 MXIYN$O>TDN*^WR3N^TJ):V+V'2(K0"'[+BUR?F?EQ,YXM0V];R^X=F>A6QAM M%5^DXI#-_6\O?"+T6YFJ!ZV@AN[$_K58JT>AH6 M78"?5K,\??5T+;I./JUK>?KJZ2JZ2[74TLW05D_'9URKG7'`+S%4]2R4O:Y: MX([_`H@7O7$@K5UY^NKI6GBM:WEW]9=&=H.V6S!43]N<.RTS:::(I-H:I6^) M%*FVF;:B.@9BKUVZF*N?D.X-=?O8""Z)@(__`U!+`0(>`Q0````(`.AD;4?R M^V>D1HH``&!Y!@`2`!@```````$```"D@0````!S=&%R8BTR,#$U,#8S,"YX M;6Q55`4``T0@1E9U>`L``00E#@``!#D!``!02P$"'@,4````"`#H9&U'KS]T M_=L/``#4NP``%@`8```````!````I(&2B@```Q0````(`.AD;4?5 M47@JS@X``-JS```6`!@```````$```"D@;V:``!S=&%R8BTR,#$U,#8S,%]D M968N>&UL550%``-$($96=7@+``$$)0X```0Y`0``4$L!`AX#%`````@`Z&1M M1P$)KD$Z/0``=),#`!8`&````````0```*2!VZD``'-T87)B+3(P,34P-C,P M7VQA8BYX;6Q55`4``T0@1E9U>`L``00E#@``!#D!``!02P$"'@,4````"`#H M9&U'#QL7!>LG``!(9`(`%@`8```````!````I(%EYP```Q0````( M`.AD;4<[R5JO+PX``"F0```2`!@```````$```"D@:`/`0!S=&%R8BTR,#$U M,#8S,"YX`L``00E#@``!#D!``!02P4&``````8`!@`@ )`@``&QX!```` ` end XML 24 R32.htm IDEA: XBRL DOCUMENT v3.3.0.814
6. OIL AND NATURAL GAS PROPERTIES (Details) - USD ($)
$ in Thousands
Jun. 30, 2015
Dec. 31, 2014
Oil and natural gas properties    
Proved-developed producing properties $ 97,729 $ 96,691
Proved-developed non-producing properties 3,660 2,880
Proved-undeveloped properties 13,274 13,330
Unproved properties 2,045 1,996
Less: Accumulated depletion (26,403) (23,131)
Total oil and natural gas properties, net of accumulated depletion $ 90,305 $ 91,766

XML 25 R40.htm IDEA: XBRL DOCUMENT v3.3.0.814
11. STOCK BASED COMPENSATION AND CONDITIONAL PERFORMANCE AWARDS (Details 1)
6 Months Ended
Jun. 30, 2015
$ / shares
shares
Summary of option activity  
Number of options, Outstanding Beginning | shares 900,000
Number of options, Granted | shares 0
Number of options, Exercised | shares 0
Number of options, Forfeited | shares 0
Number of options, Outstanding Ending | shares 900,000
Number of options, Exercisable | shares 0
Weighted Average Exercise Price per Share, Beginning $ 0
Weighted Average Exercise Price per Share, Granted 4.75
Weighted Average Exercise Price per Share, Exercised 0
Weighted Average Exercise Price per Share, Forfeited 0
Weighted Average Exercise Price per Share, Ending 4.75
Weighted Average Exercise Price per Share, Exercisable 0
Weighted Average Grant Date Fair Value, Beginning 0
Weighted Average Grant Date Fair Value, Granted 2.75
Weighted Average Grant Date Fair Value, Exercised 0
Weighted Average Grant Date Fair Value, Forfeited 0
Weighted Average Grant Date Fair Value, Ending $ 2.75
Weighted Average Remaining Contractual Life (in Years), Granted 10 years
Weighted Average Remaining Contractual Life (in Years), Outstanding 10 years
XML 26 R2.htm IDEA: XBRL DOCUMENT v3.3.0.814
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($)
$ in Thousands
Jun. 30, 2015
Dec. 31, 2014
Current assets    
Cash $ 3,729 $ 3,574
Trade receivables 1,019 1,860
Joint interest receivables 203 508
Current derivative assets 596 1,699
Prepaid expenses 378 284
Total current assets 5,925 7,925
Oil and natural gas properties and other equipment    
Oil and natural gas properties, successful efforts method, net of accumulated depletion 90,305 91,766
Other property and equipment, net of depreciation 83 104
Total oil and natural gas properties and other equipment, net 90,388 91,870
Other assets    
Goodwill $ 960 960
Derivative assets 67
Other $ 886 981
Total other assets 1,846 2,008
Total assets 98,159 101,803
Current liabilities    
Accounts payable and accrued liabilities 5,557 5,835
Joint interest revenues payable 752 $ 829
Current maturities of related party notes payable 16,768
Current maturities of notes payable 21,021 $ 2,353
Current asset retirement obligations 444 428
Total current liabilities 44,542 $ 9,445
Long-term liabilities    
Derivative liabilities 39
Notes payable $ 46 $ 23,162
Related party note payable 10,180
Deferred tax liabilities $ 11,423 14,040
Asset retirement obligations 3,290 3,177
Total long-term liabilities $ 14,798 $ 50,559
Commitments and contingencies
Stockholders' equity    
Preferred stock, $.001 par value, authorized 10,000,000 shares; none issued and outstanding
Common stock, $.001 par value, authorized 150,000,000 shares; 12,711,986 shares issued at June 30, 2015 and 12,362,336 shares issued at December 31, 2014 $ 13 $ 12
Paid-in capital 56,632 55,920
Accumulated deficit (17,826) (14,133)
Total stockholders' equity 38,819 41,799
Total liabilities and stockholders' equity $ 98,159 $ 101,803
XML 27 R6.htm IDEA: XBRL DOCUMENT v3.3.0.814
1. RESTATEMENT
6 Months Ended
Jun. 30, 2015
Restatement  
1. RESTATEMENT

In November 2015, during the preparation of our condensed financial statements for the nine months ended September 30, 2015, the Company discovered an error in the computation of impairment of Oklahoma properties for the quarterly period ended June 30, 2015. Specifically, the impairment calculation included in the Company’s financial statements for period ended June 30, 2015 did not take into account previously recorded impairment on the Oklahoma properties resulting in improper recording of $1,350,000 in impairment. The changes in the impairment resulted in a non-cash reduction of loss to the financial statements. The Company has determined that the impact of non-cash item on its quarterly financial statements for the quarters ended June 30, 2015 to be sufficiently material to warrant restatement of the Company’s Quarterly Reports on Form 10-Q.

 

The line items that have been amended and restated are set forth below:

 

Balance Sheets

  June 30, 2015  
  As Previously        
  Reported   Adjustment   As Restated
                 
ASSETS              
Oil and natural gas properties, successful efforts method, net of accumulated depletion $ 88,955   1,350   $ 90,305  
Total oil and natural gas properties and other equipment, net                
Total assets $ 96,809   1,350   $ 98,159  
                 
LIABILITIES AND STOCKHOLDERS' EQUITY                
Accumulated deficit $ (19,176)   1,350   $ (17,826)  
Total stockholders' equity   37,469   1,350     38,819  
Total liabilities and stockholders' equity $ 96,809   1,350   $ 98,159  
                             

 

Statements of Operations

 

 

  Three Months Ended June 30, 2015 Six Months Ended June 30, 2015
  As Previously             As Previously            
  Reported Adjustment As Restated Reported Adjustment As Restated
                                     
Impairment of oil and gas properties $ 1,350   (1,350 )   $ -   $ 1,350   (1,350 )   $ -  
Net income (loss) $ (2,354 ) 1,350     $ (1,004 ) $ (5,043 ) 1,350     $ (3,693 )
Net income (loss) per basic and diluted common share $ (0.19 )       $ (0.08 ) $ (0.40 )       $ (0.29 )

 

 

 

 

Statements of Cash Flows

 

  Six Months Ended June 30, 2015
  As Previously        
  Reported   Adjustment   As Restated
               
Net loss $ (5,043)   1,350   $ (3,693)
Impairment of oil and gas properties   1,350             (1,350)   $ -

 

 

XML 28 R35.htm IDEA: XBRL DOCUMENT v3.3.0.814
9. DERIVIATIVES (Details)
$ in Thousands
6 Months Ended
Jun. 30, 2015
USD ($)
Instrument 1  
Derivative 50.00-80.00
Fair value $ 296
Instrument 2  
Derivative 80.00
Fair value $ 92
Instrument 3  
Derivative 70.00
Fair value $ 203
Instrument 4  
Derivative 75.00
Fair value $ 52
Instrument 5  
Derivative 50.00
Fair value $ (25)
Instrument 6  
Derivative 54.00-79.30
Fair value $ (61)
XML 29 R22.htm IDEA: XBRL DOCUMENT v3.3.0.814
4. FAIR VALUE MEASUREMENTS (Tables)
6 Months Ended
Jun. 30, 2015
Fair Value Measurements Tables  
Schedule of fair value measurements
                      Balance as of  
                      June 30,  
($ in thousands)   Level 1     Level 2     Level 3     2015  
Assets (at fair value):                        
Derivative assets (oil collar and put options)   $ -     $ 596     $ -     $ 596  
                                 

 

Liabilities (at fair value):                      
Derivative liabilities (oil collar and put options)   $ -     $ 39     $ -     $ 39

 

                      Balance as of  
                      December 31,  
($ in thousands)   Level 1     Level 2     Level 3     2014  
Assets (at fair value):                        
Derivative assets (oil put options)   $ -     $ 1,766     $ -     $ 1,766  
XML 30 R36.htm IDEA: XBRL DOCUMENT v3.3.0.814
9. DERIVIATIVES - Fair value (Details 1) - USD ($)
$ in Thousands
Jun. 30, 2015
Dec. 31, 2014
Deriviatives - Fair Value Details 1    
Derivative financial instruments - Current asset $ 596 $ 1,699
Derivative financial instruments - Long-term assets 67
Derivative financial instruments - Current liabilities $ (39) $ 0
Derivative financial instruments - Long-term liabilities
Net derivative financial instruments $ 557 $ 1,766
XML 31 R24.htm IDEA: XBRL DOCUMENT v3.3.0.814
6. OIL AND NATURAL GAS PROPERTIES (Tables)
6 Months Ended
Jun. 30, 2015
Oil And Natural Gas Properties Tables  
Schedule of oil and gas properties
($ in thousands)  

Six month period Ended

June 30, 2015

   

Year Ended

December 31, 2014

 
Oil and natural gas properties                
   Proved-developed producing properties   $ 97,729     $ 96,691  
   Proved-developed non-producing properties     3,660       2,880  
   Proved-undeveloped properties     13,274       13,330  
   Unproved properties     2,045       1,996  
   Less: Accumulated depletion     (26,403 )     (23,131 )
Total oil and natural gas properties, net of accumulated depletion   $ 90,305     $ 91,766  
XML 32 Show.js IDEA: XBRL DOCUMENT /** * Rivet Software Inc. * * @copyright Copyright (c) 2006-2011 Rivet Software, Inc. All rights reserved. * Version 2.4.0.3 * */ var Show = {}; Show.LastAR = null, Show.hideAR = function(){ Show.LastAR.style.display = 'none'; }; Show.showAR = function ( link, id, win ){ if( Show.LastAR ){ Show.hideAR(); } var ref = link; do { ref = ref.nextSibling; } while (ref && ref.nodeName != 'TABLE'); if (!ref || ref.nodeName != 'TABLE') { var tmp = win ? win.document.getElementById(id) : document.getElementById(id); if( tmp ){ ref = tmp.cloneNode(true); ref.id = ''; link.parentNode.appendChild(ref); } } if( ref ){ ref.style.display = 'block'; Show.LastAR = ref; } }; Show.toggleNext = function( link ){ var ref = link; do{ ref = ref.nextSibling; }while( ref.nodeName != 'DIV' ); if( ref.style && ref.style.display && ref.style.display == 'none' ){ ref.style.display = 'block'; if( link.textContent ){ link.textContent = link.textContent.replace( '+', '-' ); }else{ link.innerText = link.innerText.replace( '+', '-' ); } }else{ ref.style.display = 'none'; if( link.textContent ){ link.textContent = link.textContent.replace( '-', '+' ); }else{ link.innerText = link.innerText.replace( '-', '+' ); } } }; XML 33 R7.htm IDEA: XBRL DOCUMENT v3.3.0.814
2. NATURE OF OPERATIONS
6 Months Ended
Jun. 30, 2015
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
2. NATURE OF OPERATIONS

Starboard Resources LLC was formed in Delaware on June 2, 2011 as a limited liability company to acquire, own, operate, produce, and develop oil and natural gas properties primarily in Texas and Oklahoma. On June 28, 2012, Starboard converted from a Delaware limited liability company to a Delaware C-Corporation and was named Starboard Resources, Inc. (the “Company”). The membership units of Starboard Resources LLC were exchanged on a 1:1 basis for common shares of the Company. On July 28, 2015 we filed with the Securities and Exchange Commission and distributed to stockholders of record a definitive Schedule 14C Information Statement that notified the Company’s stockholders that it was changing its name to Brushy Resources, Inc. and could file the amendment to its certificate of incorporation 20 days or more after the distribution of the Schedule 14C Information Statement. That Schedule 14C Information Statement was distributed on or about August 4, 2015 and the Company intends to file a Certificate of Amendment to change its name to Brushy Resources, Inc. on or about August 25, 2015.

XML 34 R3.htm IDEA: XBRL DOCUMENT v3.3.0.814
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares
Jun. 30, 2015
Dec. 31, 2014
Statement of Financial Position [Abstract]    
Preferred Stock, par value $ 0.001 $ 0.001
Preferred Stock, Authorized 10,000,000 10,000,000
Preferred Stock, Shares issued 0 0
Preferred Stock, Shares Outstanding 0 0
Common Stock, par value $ 0.001 $ 0.001
Common Stock, Authorized 150,000,000 150,000,000
Common Stock, Issued 12,711,986 12,362,336
XML 35 R17.htm IDEA: XBRL DOCUMENT v3.3.0.814
12. RELATED PARTY TRANSACTIONS
6 Months Ended
Jun. 30, 2015
Related Party Transactions [Abstract]  
12. RELATED PARTY TRANSACTIONS

Related Party Credit Agreement

 

On March 29, 2013, the Company entered a credit agreement with SOSventures, LLC providing for a term loan through February 16, 2016 in an amount up to $10,000,000 at a 17.00% interest rate through March 29, 2014 and 22.00% interest rate thereafter.   The Company may not incur further indebtedness beyond this loan and the Credit Agreement without the consent of SOS Ventures, until such time as the SOS Ventures loan is fully repaid.

 

On May 30, 2014, the Company amended its credit agreement with SOSventures, LLC providing for a term loan through February 1, 2016 in an amount up to $20,000,000 at an 18.00% interest rate.  As of June 30, 2015, the Company has borrowed $15,500,000 under this agreement.

 

The term loan is collateralized under a second lien by the oil and natural gas properties and contains several restrictive covenants including, among others:  (1) a requirement to maintain a current ratio, of not less than 1.0 to 1.0; (2) a maximum permitted ratio of debt to adjusted EBITDAX of not more than 4.0 to 1.0; (3) a maximum permitted ratio of adjusted EBITDAX to interest expense of not more than 3.0 to 1.0; and (4) a prohibition against incurring debt, subject to permitted exceptions.

 

On April 15, 2015 the Company entered the Second Amendment to the First Amendment and Restated Credit Agreement and several other agreements which provided that SOSventures, LLC will provide an additional $3 million on its credit facility to be used to pay the outstanding balance of the Independent Bank term loan, pay on the Independent Bank credit facility and for operations. Additionally, SOSventures deposit $5 million into a controlled account at Independent Bank to be used to drill two wells in the Crittenden Field referenced in the Independent Bank Amendment. Further, SOSventures, LLC will receive interest on its credit facility and a 1% overriding royalty interest on the Company’s Crittenden Field properties effective upon the drilling of these two oil and gas wells until such time as the credit facility is repaid. Finally, SOSventures, LLC shall receive warrants to purchase 2,542,397 of the Company's common shares for $1.00 per share with a two-year term. If fully purchased 2,542,397 would equal 20% of our currently outstanding common stock.

XML 36 R1.htm IDEA: XBRL DOCUMENT v3.3.0.814
Document and Entity Information - shares
6 Months Ended
Jun. 30, 2015
Aug. 12, 2015
Document And Entity Information    
Entity Registrant Name Brushy Resources, Inc.  
Entity Central Index Key 0001554970  
Document Type 10-Q  
Document Period End Date Jun. 30, 2015  
Amendment Flag true  
Amendment Description

Brushy Resources, Inc. (the “Company” – formerly known as “Starboard Resources, Inc.”) is filing this Amendment No. 1 on Form 10-Q/A (the “Amended Report“) to the Quarterly Report on form 10-Q of Starboard Resources for the quarterly period ended June 30, 2015 (the “Original Report”), originally filed with the Securities and Exchange Commission on August 14, 2015.  The purpose of the Amended Report is to correct certain errors related to the impairment of the Company’s Oklahoma properties contained in the financial statements and related disclosures contained in the Original Report, as described in Note 1 – Restatement.

 

In November 2015, the Company discovered an error in computation of impairment regarding the Oklahoma properties for the quarterly period ended June 30, 2015.  Specifically, the impairment calculation included in the Company’s financial statements for period ended June 30, 2015 did not take into account previously recorded impairment on the Oklahoma properties resulting in improper recording of $1,350,000 in impairment.  The changes in the impairment resulted in a non-cash reduction of loss to the financial statements.  The Company has determined that the impact of non-cash item on its quarterly financial statements for the quarters ended June 30, 2015 to be sufficiently material to warrant restatement of the Company’s Quarterly Reports on Form 10-Q.

 
Current Fiscal Year End Date --12-31  
Is Entity a Well-known Seasoned Issuer? No  
Is Entity a Voluntary Filer? No  
Is Entity's Reporting Status Current? Yes  
Entity Filer Category Smaller Reporting Company  
Entity Common Stock, Shares Outstanding   12,711,986
Document Fiscal Period Focus Q2  
Document Fiscal Year Focus 2015  
XML 37 R18.htm IDEA: XBRL DOCUMENT v3.3.0.814
13. LEGAL PROCEEDINGS
6 Months Ended
Jun. 30, 2015
Commitments and Contingencies Disclosure [Abstract]  
13. LEGAL PROCEEDINGS

From time-to-time, the Company may become subject to proceedings, lawsuits and other claims in the ordinary course of business including proceedings related to environmental and other matters. Such matters are subject to many uncertainties, and outcomes are not predictable with assurance.

 

The Company is subject to various possible contingencies that arise primarily from interpretation of federal and state laws and regulations affecting the oil and natural gas industry. Such contingencies include differing interpretations as to the prices at which oil and natural gas sales may be made, the prices at which royalty owners may be paid for production from their leases, environmental issues and other matters. Although management believes that it has complied with the various laws and regulations, administrative rulings and interpretations thereof, adjustments could be required as new interpretations and regulations are issued. In addition, environmental matters are subject to regulation by various federal and state agencies. 

 

Shareholder Lawsuit

 

On April 17, 2015, the Company was served with a lawsuit filed in Bexar County, Texas by William F. Pettinati, Jr., Nicholas Garofolo, Sigma Gas Barbastella Fund and Sigma Gas Antrozous Fund against Starboard Resources, Inc., its directors, its Chief Operating Officer, Edward Shaw, its former Chief Financial Officer, Eric Alfuth, our stockholder, Bradford Higgins, and Sean O’Sullivan, the managing director of our stockholder, SOSventures, LLC.   Mr. Pettinati, Mr. Garofalo and the Sigma Gas Antrozous Fund are stockholders.  Mr. Pettinati owns 145,112 shares, Mr. Garofalo owns 226,680 common stock shares and Sigma Gas Antrozous Fund owns 44,610 common stock shares. Combined these stockholders account for approximately 3.3% of our outstanding common stock.  These stockholders became our stockholders in February 2014.

 

The Plaintiffs allege several derivative and direct causes of action, many of which relate to alleged actions that pre-date their becoming stockholders in February 2014.  These derivative claims include, breach of fiduciary duty, waste of corporate assets, concerted action and conspiracy, joint enterprise, agency, alter ego, exemplary damages, and unjust enrichment. The direct claims include, breach of fiduciary duty, conversion, shareholder oppression, concerted action and conspiracy, declaratory judgment that the distribution of stock to the plaintiffs was invalid, joint enterprise, agency, alter ego, exemplary damages, concerted action and conspiracy and failure to allow for inspection of books and records.

 

Many of the allegations relate to events that allegedly happened before the plaintiffs became stockholders, including the distributions from certain partnerships that led to the Plaintiffs becoming stockholders in February 2014.  For actions after February 2014, Plaintiffs complain that our common stock still lacks a trading venue, that a books and records request was not honored, that we “delayed” our public offering, that SOSventures LLC had allegedly taken steps to “foreclose” on our assets under our subordinated credit agreement with SOSventures, LLC and that we filed for an extension to the filing date for our Form 10-K for the year ending December 31, 2014.

 

The matter is styled Sigma Barbastella Fund et al v. Charles S. Henry, III et al. and it is Cause No. 20105-CI-05672 in the 224th District Court in Bexar County, Texas.

XML 38 R4.htm IDEA: XBRL DOCUMENT v3.3.0.814
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) - USD ($)
$ in Thousands
3 Months Ended 6 Months Ended
Jun. 30, 2015
Jun. 30, 2014
Jun. 30, 2015
Jun. 30, 2014
Income Statement [Abstract]        
Oil, natural gas, and related product sales $ 2,527 $ 5,895 $ 5,284 $ 9,702
Expenses        
Depreciation, depletion and amortization 2,135 2,776 4,642 4,518
Lease operating 953 1,394 2,079 2,313
General and administrative 747 805 2,089 1,781
Professional fees 218 240 429 517
Production taxes 103 229 206 339
Accretion of discount on asset retirement obligation 65 152 128 189
Exploration 19 19 41 33
Total expenses 4,240 5,615 9,614 9,690
Operating income (loss) (1,713) 280 (4,330) 12
Other income (expense)        
Interest expense (973) (717) (1,745) (929)
Gain (loss) from derivative contracts (647) 115 (233) 113
Gain on sale of assets, net 4 719 2 719
Total other income (expense) (1,616) 117 (1,976) (97)
Income (loss) before income taxes $ (3,329) $ 397 $ (6,306) $ (85)
Income tax benefit / (expense):        
Current income tax benefit / (expense)
Deferred income tax benefit / (expense) $ 2,325 $ (141) $ 2,613 $ 84
Net income (loss) $ (1,004) $ 256 $ (3,693) $ (1)
Net income (loss) per basic and diluted common share $ (.08) $ 0.02 $ (.29) $ 0
Weighted average basic common shares outstanding 12,711,986 12,362,336 12,711,986 12,362,336
Weighted average diluted common shares outstanding 12,711,986 12,711,986 12,711,986 12,362,336
XML 39 R12.htm IDEA: XBRL DOCUMENT v3.3.0.814
7. ASSET RETIREMENT OBLIGATIONS
6 Months Ended
Jun. 30, 2015
Asset Retirement Obligation Disclosure [Abstract]  
7. ASSET RETIREMENT OBLIGATIONS

The Company has recognized the fair value of its asset retirement obligations related to the future costs of plugging, abandonment, and remediation of oil and natural gas producing properties.  The present value of the estimated asset retirement obligations has been capitalized as part of the carrying amount of the related oil and natural gas properties.  The liability has been accreted to its present value as of the end of each period.  At June 30, 2015 and December 31, 2014, the Company has determined a range of abandonment dates through March 2061.  The following table represents a reconciliation of the asset retirement obligations:

 

($ in thousands)

Six month period Ended

June 30, 2015

   

Year Ended

December 31, 2014

 
Asset retirement obligations, beginning of period   $ 3,606     $ 2,437  
Additions  to asset retirement obligation     -       859  
Liabilities settled during the period     -       -  
Accretion of discount     128       320  
Revision of estimate     -       (10 )
Asset retirement obligations, end of period   $ 3,734     $ 3,606  

 

The asset retirement liability is measured using primarily Level 3 inputs. The significant unobservable inputs to this fair value measurement include estimates of plugging costs, remediation costs, inflation rate and well life. The inputs are calculated based on historical data as well as current estimated costs.

XML 40 R11.htm IDEA: XBRL DOCUMENT v3.3.0.814
6. OIL AND NATURAL GAS PROPERTIES
6 Months Ended
Jun. 30, 2015
Extractive Industries [Abstract]  
6. OIL AND NATURAL GAS PROPERTIES

The following table presents a summary of the Company’s oil and natural gas properties at June 30, 2015 and December 31, 2014:

 

($ in thousands)  

Six month period Ended

June 30, 2015

   

Year Ended

December 31, 2014

 
Oil and natural gas properties                
   Proved-developed producing properties   $ 97,729     $ 96,691  
   Proved-developed non-producing properties     3,660       2,880  
   Proved-undeveloped properties     13,274       13,330  
   Unproved properties     2,045       1,996  
   Less: Accumulated depletion     (26,403 )     (23,131 )
Total oil and natural gas properties, net of accumulated depletion   $ 90,305     $ 91,766  
XML 41 R23.htm IDEA: XBRL DOCUMENT v3.3.0.814
5. PROPERTY ACQUISITION AND SALE (Tables)
6 Months Ended
Jun. 30, 2015
Property Acquisition And Sale Tables  
Schedule of property acquisition and sale
($ in thousands)     Six Month Period Ended June 30, 2015   Six Month Period Ended June 30, 2014
Oil, natural gas, and related product sales    $                                1,350    $                            3,046
Expenses     269   398
Operating income      $                                1,081    $                            2,648
XML 42 R19.htm IDEA: XBRL DOCUMENT v3.3.0.814
14. SUBSEQUENT EVENT
6 Months Ended
Jun. 30, 2015
Subsequent Event  
14. SUBSEQUENT EVENT

In November 2015, the Company discovered an error in the impairment taken on the Oklahoma properties sold in July 2015. The Company determined that the impact of this impairment was sufficiently material to warrant restatement of the financial results contained in the Company’s Quarterly Reports of Form 10-Q for June 30, 2015. (See Note 1 – Restatement).

XML 43 R15.htm IDEA: XBRL DOCUMENT v3.3.0.814
10. NOTES PAYABLE
6 Months Ended
Jun. 30, 2015
Debt Disclosure [Abstract]  
10. NOTES PAYABLE

On June 27, 2013, the Company entered into a credit agreement (“Credit Agreement”) with Independent Bank to borrow up to $100,000,000 at a current rate of 4.00% annum. The Credit Agreement was obtained to fund the development of the Company’s oil and natural gas properties and refinance the prior bank facility.  At June 30, 2015 and December 31, 2014, the Company had approximately $21,000,000 and $22,500,000 in borrowings outstanding under the Credit Agreement, respectively.

 

The Credit Agreement provides for a borrowing base of $21,250,000 as of June 30, 2015, which is re-determined semi-annually and upon requested special redeterminations.  Further, under the April 15, 2015 Amendment to the Credit Agreement, the borrowing base is reduced by $250,000 per month before September 1, 2015 and $350,000 per month thereafter, unless re-determined after 150 days from the date of the Amendment. The Company is obligated to provide Independent Bank an engineering report acceptable to the Bank as of September 1, 2015 showing proven and producing and proven undeveloped oil and gas reserves, discounted present value of future net income for the Company’s oil and gas properties as of September 1, 2015, projections of annual rate of production, gross income and net income relating to these reserves and take-or-pay, prepayment and gas balancing obligations. Additionally, the borrowing base may be adjusted at the financial institution’s discretion which is based in part upon external factors over which the Company has no control. If the re-determined borrowing base were to be less than outstanding borrowings under the Credit Agreement, the Company would be required to repay the deficit. The Company incurs a commitment fee of 0.5% on the unused portion of the credit facility or if less, the borrowing base. The Credit Agreement matures on June 1, 2016.

 

Loans under the Credit Agreement bear interest at the greater of: (1) the prime rate, the annual rate of interest announced by the Wall Street Journal as its “prime rate”, or (2) the floor rate of 4.00%.

 

The Credit Agreement is collateralized by the oil and natural gas properties and contains several restrictive covenants including, among others:  (1) a requirement to maintain a current ratio, of not less than 1.0 to 1.0; (2) a maximum permitted ratio of debt to adjusted EBITDAX of not more than 3.5 to 1.0; (3) a maximum permitted ratio of adjusted EBITDAX to interest expense of not more than 3.0 to 1.0; and (4) a prohibition against incurring debt, subject to permitted exceptions. The Company is not in compliance with its debt covenants at June 30, 2015 however, it is currently working with Independent bank on a waiver for these violations.

 

The Amendment also allows the assignment of an overriding royalty interest as stated in the related amendment to the Intercreditors’ Agreement between Independent Bank, the Company and SOSventures, LLC.

 

The Company is obligated to commence drilling a well in the Crittenden Field within 45 days of the date of the Amendment and a second well in the Crittenden Field within 90 days of the date of the Amendment.

 

The Amendment includes a suspension of Independent Bank’s rights to exercise its remedies prior to 150 days after the Amendment caused solely by the occurrence of a borrowing base deficiency. It also includes a suspension of Independent Bank’s obligation to extend loans, letters of credit or renewals or extensions of letters of credit agreement under the Credit Agreement for 150 days after the date of the Amendment.

 

The Amendment further provides that the Company will be required execute and maintain crude oil hedges on a minimum of 80.0% of Projected Production on a rolling 20 months basis.

 

The Company repaid its term loan at closing with both principal and interest, repaid the note principal to reduce the note to no more than the borrowing base, including the repayment of interest, pay certain fees, deposit $5,000,000 into a special account and SOSventures provided an additional $2,000,000 of availability under the Subordinated credit facility with SOSventures, LLC for drilling capital.

 

 On March 26, 2014, the Company entered into a term loan agreement with Independent Bank totaling $4,000,000 at a current rate of 6.75% annum.  The agreement was obtained to fund the development of the Company’s acquisition of oil and natural gas properties. The term loan had an outstanding balance of approximately $2,941,000 outstanding at December 31, 2014. The term loan was paid in full on April 15, 2015.

XML 44 R13.htm IDEA: XBRL DOCUMENT v3.3.0.814
8. GOING PUBLIC DELAY FEE
6 Months Ended
Jun. 30, 2015
Notes to Financial Statements  
8. GOING PUBLIC DELAY FEE

We entered a “Securities Purchase and Exchange Agreement” dated June 10, 2011, with Longview Marquis Master Fund, L.P., Summerview Marquis Fund, L.P., Longview Marquis Fund, L.P., LMIF Investments, LLC, SMF Investments, LLC, and Summerline Capital Partners, LLC (collectively “Summerline”).  The Agreement provides that the Company, for any reason, does not go public on or before that date that is one hundred fifty days after the June 13, 2011 (the “Going Public Delay Date”), the Company shall pay to each applicable stockholder an aggregate amount equal to the product of (i) such stockholder’s allocation percentage multiplied by (ii) $60,715 (the “Going Public Delay Fee”) on the last business day of each calendar month, for each such calendar month following the Going Public Delay Date through and including the date of going public (the “Going Public Delay Period”). For any partial calendar months during the Going Public Delay Period, the Going Public Delay Fee shall be pro-rated appropriately. For the year ended December 31, 2013, the Company incurred a delay fee of approximately $425,000 which is currently included in accrued liabilities on the accompanying condensed consolidated balance sheets.

 

Effective August 6, 2013, the Company ceased to incur Going Public Delay Fees due to an effective Form 10 filing.

XML 45 R14.htm IDEA: XBRL DOCUMENT v3.3.0.814
9. DERIVIATIVES
6 Months Ended
Jun. 30, 2015
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
9. DERIVATIVES

We use derivatives to hedge our oil production.  Our current hedge position consists of put options, of which some have deferred premiums paid at settlement. These contracts and any future hedging arrangements may expose us to risk of financial loss in certain circumstances, including instances where production is less than expected or oil prices increase.  In addition, these arrangements may limit the benefit to us of increases in the price of oil.  Accordingly, our earnings may fluctuate significantly as a result of changes in the fair value of our derivative instrument, which we utilize entirely to hedge our production and do not enter into for speculative purposes. We have not designated the derivative contracts as hedges for accounting purposes, and accordingly, we record the derivative contracts at fair value and recognize changes in fair value in earnings as they occur.

 

  At June 30, 2015, we had the following open crude oil derivative contracts:

 

          June 30, 2015  
   Instrument    Commodity  

Volume

(bbl / month)

 

Floor

Price

 

Ceilings

Price

 

Purchased Put Option

Price

 

Fair Value

(in thousands)

 
July 2015 – October 2015 Put   Crude Oil   6,000           50.00 – 80.00   296  
November 2015 – December 2015 Put   Crude Oil   2,800           80.00   92  
July 2015 – December 2015 Put   Crude Oil   4,000           70.00   203  
January 2016 – March 2016 Put   Crude Oil   1,500           75.00   52  
January 2016 – December 2016 Put   Crude Oil   3,000           50.00    (25
January 2016 – December 2016 Collar   Crude Oil   3,000   54.00   79.30       (61 )

 

The following tables identify the fair value amounts of derivative instruments included in the accompanying consolidated balance sheets as derivative contracts, categorized by primary underlying risk. Balances are presented on a gross basis, prior to the application of the impact of counterparty and collateral netting. The following tables also identify the net gain (loss) amounts included in the accompanying consolidated statements of operations as gain (loss) from derivative contracts.

 

Fair Value of Derivative Financial Instruments

 

($ in thousands)   June 30, 2015   December 31, 2014
Derivative financial instruments - Current asset $ 596     $ 1,699  
Derivative financial instruments - Long-term assets   -       67  
Derivative financial instruments - Current liabilities   (39     -  
Derivative financial instruments - Long-term liabilities   -       -  
Net derivative financial instruments $ 557     $ 1,766  

 

 Effect of Derivative Financial Instruments

 

($ in thousands)  

June 30,

2015

   

June 30,

2014

Realized gain/(loss) on settlement of derivative contracts   $ 976     $
(57
)
Unrealized gain/(loss) from derivative contracts     (1,209 )     170  
Realized/Unrealized gain/(loss) from derivative contracts   $ (233 )     113
XML 46 R16.htm IDEA: XBRL DOCUMENT v3.3.0.814
11. STOCK BASED COMPENSATION AND CONDITIONAL PERFORMANCE AWARDS
6 Months Ended
Jun. 30, 2015
Equity [Abstract]  
11. STOCK BASED COMPENSATION AND CONDITIONAL PERFORMANCE AWARDS

On April 1, 2012, the Company entered into employment agreements (the “Employment Agreement”) which provided a restricted stock grant and a conditional performance award to key members of management.

 

The restricted stock grant of 349,650 shares had a grant date fair value of $10.00 per share and vests in full upon the earlier of an initial public offering (“IPO”) which includes the sale of shares to the public, a business combination whereas 50% or more of the voting power is transferred to the new owners, or March 1, 2015.  Those 349,650 shares were earned by the employee recipients and issued to them during the three month period ending March 31, 2015.

 

During the six months ended June 30, 2015 and 2014, the Company incurred a stock-based compensation expense of approximately $300,000 and $600,000, respectively, related to the restricted stock grant, which is included in the accompanying condensed consolidated statements of operations in general and administrative expenses.   

 

Additionally, the employment agreements provide for a conditional performance award where if an IPO occurs, the employee will receive: (1) a cash payment of 1% of the difference between the Company market capital and the book value at the time of the IPO, (2) common stock options to purchase 1.0% of the fully-diluted capital stock as of the IPO date and IPO price which will vest over a four year period and contain a cashless exercise, (3) common stock options to purchase 1.0% of the fully-diluted capital stock as of the 2nd anniversary of the IPO date at the closing price of the common stock on the 2nd anniversary date of the IPO and will vest six years after the grant and contain a cashless exercise.  As of the six month period ended June 30, 2015 and 2014, the conditional performance feature is not probable and as such, no compensation expense related to the conditional performance feature has been recognized.

 

On August 30, 2014, the Company amended and restated the Employment Agreement which provided for additional stock options.

 

The equity award of options to purchase 900,000 shares at the exercise price of $4.75 per share and vesting over three years from September 4, 2014 with a one-year cliff (in respect of 300,000 shares) and monthly vesting thereafter of 25,000 shares over the remaining two years. During the six months ended June 30, 2015, the Company incurred a stock-based compensation expense of approximately $413,000 related to stock option, which is included in the accompanying condensed consolidated statements of operations in general and administrative expenses.  As of June 30, 2015, there was approximately $1,800,000 of unrecognized stock-based compensation related to the non-vested stock options.

 

The assumptions used in the Black-Scholes Option Pricing Model for the stock options granted were as follows:

 

    2014  
Risk-free interest rate     1.87 %
Expected volatility of common stock     92 %
Dividend yield   $ 0.00  
Expected life of options   5.72 years  

 

The following table summarizes information about stock option activity and related information for the six months ended June 30, 2015

 

    Number of Shares Underlying Options     Weighted Average Exercise Price per Share     Weighted Average Grant Date Fair Value per Share     Weighted Average Remaining Contractual Life (in Years)  
Outstanding at December 31, 2014     900,000     $ -     $ -       -  
Granted     -       4.75       2.75       10  
Exercised     -       -       -       -  
Forfeited     -       -       -       -  
Outstanding at June 30, 2015     900,000       4.75       2.75       10  
Exercisable at June 30, 2015     -       -       -       -  
XML 47 R34.htm IDEA: XBRL DOCUMENT v3.3.0.814
8. GOING PUBLIC DELAY FEE (Details Narratives)
$ in Thousands
6 Months Ended
Jun. 30, 2015
USD ($)
Notes to Financial Statements  
Penalty for going public delay $ 425
XML 48 R21.htm IDEA: XBRL DOCUMENT v3.3.0.814
1. RESTATEMENT (Tables)
6 Months Ended
Jun. 30, 2015
Restatement Tables  
Restatement of financials

Balance Sheets

 

    June 30, 2015  
    As Previously              
    Reported     Adjustment     As Restated  
ASSETS                  
Oil and natural gas properties, successful efforts method, net of accumulated depletion   $ 88,955       1,350     $ 90,305  
Total oil and natural gas properties and other equipment, net                        
Total assets   $ 96,809       1,350     $ 98,159  
                         
LIABILITIES AND STOCKHOLDERS' EQUITY                        
Accumulated deficit   $ (19,176 )     1,350     $ (17,826 )
Total stockholders' equity     37,469       1,350       38,819  
Total liabilities and stockholders' equity   $ 96,809       1,350     $ 98,159  

 

 Statements of Operations

 

    Three Months Ended June 30, 2015     Six Months Ended June 30, 2015  
    As Previously                 As Previously              
    Reported     Adjustment     As Restated     Reported     Adjustment     As Restated  
                                     
Impairment of oil and gas properties   $ 1,350       (1,350 )   $ -     $ 1,350       (1,350 )   $ -  
Net income (loss)   $ (2,354 )     1,350     $ (1,004 )   $ (5,043 )     1,350     $ (3,693 )
Net income (loss) per basic and diluted common share   $ (0.19 )           $ (0.08 )   $ (0.40 )           $ (0.29 )

 

Statements of Cash Flows

 

    Six Months Ended June 30, 2015  
    As Previously              
    Reported     Adjustment     As Restated  
                   
Net loss   $ (5,043 )     1,350     $ (3,693 )
Impairment of oil and gas properties     1,350       (1,350 )   $ -  

 

 

XML 49 R26.htm IDEA: XBRL DOCUMENT v3.3.0.814
9. DERIVIATIVES (Tables)
6 Months Ended
Jun. 30, 2015
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Oil derivative contracts
          June 30, 2015  
   Instrument    Commodity  

Volume

(bbl / month)

 

Floor

Price

 

Ceilings

Price

 

Purchased Put Option

Price

 

Fair Value

(in thousands)

 
July 2015 – October 2015 Put   Crude Oil   6,000           50.00 – 80.00   296  
November 2015 – December 2015 Put   Crude Oil   2,800           80.00   92  
July 2015 – December 2015 Put   Crude Oil   4,000           70.00   203  
January 2016 – March 2016 Put   Crude Oil   1,500           75.00   52  
January 2016 – December 2016 Put   Crude Oil   3,000           50.00    (25
January 2016 – December 2016 Collar   Crude Oil   3,000   54.00   79.30       (61 )
Fair Value of Derivative Financial Instruments

Fair Value of Derivative Financial Instruments

 

($ in thousands)   June 30, 2015   December 31, 2014
Derivative financial instruments - Current asset $ 596     $ 1,699  
Derivative financial instruments - Long-term assets   -       67  
Derivative financial instruments - Current liabilities   (39     -  
Derivative financial instruments - Long-term liabilities   -       -  
Net derivative financial instruments $ 557     $ 1,766  
Effect of Derivative Financial Instruments

Effect of Derivative Financial Instruments

 

($ in thousands)  

June 30,

2015

   

June 30,

2014

Realized gain/(loss) on settlement of derivative contracts   $ 976     $
(57
)
Unrealized gain/(loss) from derivative contracts     (1,209 )     170  
Realized/Unrealized gain/(loss) from derivative contracts   $ (233 )     113
XML 50 R41.htm IDEA: XBRL DOCUMENT v3.3.0.814
11. STOCK BASED COMPENSATION AND CONDITIONAL PERFORMANCE AWARDS (Details Narrative) - USD ($)
$ in Thousands
6 Months Ended
Jun. 30, 2015
Jun. 30, 2014
Equity [Abstract]    
Stock-based compensation expense related to restricted stock $ 300 $ 600
Stock-based compensation expense related to stock options 413  
Unrecognized stock-based compensation related to the non-vested stock options $ 1,800  
XML 51 R5.htm IDEA: XBRL DOCUMENT v3.3.0.814
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($)
$ in Thousands
6 Months Ended
Jun. 30, 2015
Jun. 30, 2014
Cash flows from operating activities    
Net loss $ (3,693) $ (1)
Adjustments to reconcile net loss to net cash providedby operating activities:    
Depreciation and depletion 4,642 4,430
Deferred income taxes (2,613) (84)
Stock-based compensation 712 600
Accretion of asset retirement obligation $ 128 189
Cash received (paid) for settlement of derivative instruments (57)
Unrealized loss(gain) from derivative contracts $ 1,209 (113)
(Gain)on asset sales (2) (719)
Amortization of debt issuance costs 168 88
Increase (decrease) in cash attributable to changes in operating assets and liabilities:    
Trade receivables 841 (442)
Joint interest receivables 305 (1,337)
Prepaid expenses and other assets (11) (64)
Accounts payable and accrued liabilities (1,109) (3,080)
Joint interest revenues payable (77) 692
Net cash providedby operating activities 500 102
Cash flows from investing activities    
Acquisition and development of oil and natural gas properties $ (1,244) (8,405)
Acquisition of White Oak Resources VI, LLC and Permian Atlantis LLC oil and natural gas properties $ (17,078)
Proceeds from sales of oil and natural gas properties $ 7
Oil and natural gas abandonment costs $ (3)
Net cash (used) in investing activities $ (1,237) (25,486)
Cash flows from financing activities    
Proceeds from notes payable 5,500 23,560
Debt issuance costs (153) (206)
Repayments of notes payable (4,448) (513)
Deferred offering costs (7) (56)
Net cash provided by financing activities 892 22,785
Net increase (decrease) in cash 155 (2,599)
Cash, beginning of period 3,574 5,794
Cash, end of period 3,729 3,195
Supplemental disclosure of cash flow information    
Cash paid during the period for interest 432 851
Supplemental disclosure of non-cash investing transactions    
Payables related to oil and natural gas capitalized expenditures $ 1,916 523
Capitalized asset retirement cost 843
Settlement of accounts payable through sale of oil and natural gas properties $ 3,873
XML 52 R10.htm IDEA: XBRL DOCUMENT v3.3.0.814
5. PROPERTY ACQUISITION AND SALE
6 Months Ended
Jun. 30, 2015
Business Combinations [Abstract]  
5. PROPERTY ACQUISITION AND SALE

On March 26, 2014 (the “Acquisition Date”), the Company completed the purchase of oil and natural gas leases and leasehold interests (the “Oil and Natural Gas Properties”) from White Oak Resources VI, LLC and Permian Atlantis LLC (collectively the “Seller”) for the purpose of increasing the Company’s oil and natural gas operations in the Permian Basin. The assets acquired are: (a) oil and natural gas leases and leasehold interests in Winkler and Loving Counties in Texas and Lea County, New Mexico; (b) twenty-nine wellbores; and (c) any contracts or agreements related to the foregoing lands, leases and wells. The Oil and Natural Gas Properties include total acreage held by production of 5,160 gross developed acres (1,983.61 net developed acres). Additionally, producing wells and surrounding acreage have been unitized under Texas Railroad Commission regulations. Under the terms of the agreement, the Company purchased the Oil and Natural Gas Properties for $16,803,000 in cash, including before purchase price adjustments.

 

Subsequent Event

 

On July 31, 2015, the Company sold all of its Oklahoma properties, which were located in Logan and Kingfisher Counties, Oklahoma, to Remora Petroleum, LP (Austin, TX) for $7,249,390.  The purchaser is not affiliated with any Company officers, directors or material stockholders.

  

The following table summarized the results of operation from the properties sold:

 

($ in thousands)     Six Month Period Ended June 30, 2015   Six Month Period Ended June 30, 2014
Oil, natural gas, and related product sales    $                                1,350    $                            3,046
Expenses     269   398
Operating income      $                                1,081    $                            2,648

  

As part of this transaction, the Company entered into the Fifth Amendment to its Credit Agreement with Independent Bank (“Amendment”).  The Amendment provides that $4,000,000 of the purchase price was paid to Independent Bank to pay down its credit facility with Independent Bank.  The Amendment requires that an additional $2,000,000 would be held by Independent Bank in a control account.

 

The Amendment further states that the Credit Agreement’s $21,000,000 borrowing base is reduced to $17,000,000 and that the Company cannot demand further funds under this Credit Agreement until the next redetermination of the borrowing base and the cure of any deficiency loan amount over the adjusted borrowing base.

 

The Amendment also places limits on the use of the $2,000,000 in the control account.  It provides that the control account funds shall be applied, first, to any borrowing base deficiency after redetermination, and second, to any remaining amount on the loan or to the Company in the sole discretion of Independent Bank.  The Amendment also requires the Company to use the funds it has received from the Oklahoma properties transaction (after payment of the $4,000,000 to Independent Bank and the $2,000,000 to the control account) to its outstanding third party accounts payables.

XML 53 R27.htm IDEA: XBRL DOCUMENT v3.3.0.814
11. STOCK BASED COMPENSATION AND CONDITIONAL PERFORMANCE AWARDS (Tables)
6 Months Ended
Jun. 30, 2015
Stock Based Compensation And Conditional Performance Awards Tables  
Assumptions used in Black-Scholes Model
    2014  
Risk-free interest rate     1.87 %
Expected volatility of common stock     92 %
Dividend yield   $ 0.00  
Expected life of options   5.72 years  
Stock Option Activity
    Number of Shares Underlying Options     Weighted Average Exercise Price per Share     Weighted Average Grant Date Fair Value per Share     Weighted Average Remaining Contractual Life (in Years)  
Outstanding at December 31, 2014     900,000     $ -     $ -       -  
Granted     -       4.75       2.75       10  
Exercised     -       -       -       -  
Forfeited     -       -       -       -  
Outstanding at June 30, 2015     900,000       4.75       2.75       10  
Exercisable at June 30, 2015     -       -       -       -  
XML 54 FilingSummary.xml IDEA: XBRL DOCUMENT 3.3.0.814 html 41 194 1 false 15 0 false 4 false false R1.htm 00000001 - Document - Document and Entity Information Sheet http://starboardresources.com/role/DocumentAndEntityInformation Document and Entity Information Cover 1 false false R2.htm 00000002 - Statement - CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) Sheet http://starboardresources.com/role/CondensedConsolidatedBalanceSheets CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) Statements 2 false false R3.htm 00000003 - Statement - CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) Sheet http://starboardresources.com/role/CondensedConsolidatedBalanceSheetsParenthetical CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) Statements 3 false false R4.htm 00000004 - Statement - CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) Sheet http://starboardresources.com/role/CondensedConsolidatedStatementsOfOperations CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) Statements 4 false false R5.htm 00000005 - Statement - CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) Sheet http://starboardresources.com/role/CondensedConsolidatedStatementsOfCashFlows CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) Statements 5 false false R6.htm 00000006 - Disclosure - 1. RESTATEMENT Sheet http://starboardresources.com/role/Restatement 1. RESTATEMENT Notes 6 false false R7.htm 00000007 - Disclosure - 2. NATURE OF OPERATIONS Sheet http://starboardresources.com/role/NatureOfOperations 2. NATURE OF OPERATIONS Notes 7 false false R8.htm 00000008 - Disclosure - 3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Sheet http://starboardresources.com/role/SummaryOfSignificantAccountingPolicies 3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Notes 8 false false R9.htm 00000009 - Disclosure - 4. FAIR VALUE MEASUREMENTS Sheet http://starboardresources.com/role/FairValueMeasurements 4. FAIR VALUE MEASUREMENTS Notes 9 false false R10.htm 00000010 - Disclosure - 5. PROPERTY ACQUISITION AND SALE Sheet http://starboardresources.com/role/PropertyAcquisitionAndSale 5. PROPERTY ACQUISITION AND SALE Notes 10 false false R11.htm 00000011 - Disclosure - 6. OIL AND NATURAL GAS PROPERTIES Sheet http://starboardresources.com/role/OilAndNaturalGasProperties 6. OIL AND NATURAL GAS PROPERTIES Notes 11 false false R12.htm 00000012 - Disclosure - 7. ASSET RETIREMENT OBLIGATIONS Sheet http://starboardresources.com/role/AssetRetirementObligations 7. ASSET RETIREMENT OBLIGATIONS Notes 12 false false R13.htm 00000013 - Disclosure - 8. GOING PUBLIC DELAY FEE Sheet http://starboardresources.com/role/GoingPublicDelayFee 8. GOING PUBLIC DELAY FEE Notes 13 false false R14.htm 00000014 - Disclosure - 9. DERIVIATIVES Sheet http://starboardresources.com/role/Deriviatives 9. DERIVIATIVES Notes 14 false false R15.htm 00000015 - Disclosure - 10. NOTES PAYABLE Notes http://starboardresources.com/role/NotesPayable 10. NOTES PAYABLE Notes 15 false false R16.htm 00000016 - Disclosure - 11. STOCK BASED COMPENSATION AND CONDITIONAL PERFORMANCE AWARDS Sheet http://starboardresources.com/role/StockBasedCompensationAndConditionalPerformanceAwards 11. STOCK BASED COMPENSATION AND CONDITIONAL PERFORMANCE AWARDS Notes 16 false false R17.htm 00000017 - Disclosure - 12. RELATED PARTY TRANSACTIONS Sheet http://starboardresources.com/role/RelatedPartyTransactions 12. RELATED PARTY TRANSACTIONS Notes 17 false false R18.htm 00000018 - Disclosure - 13. LEGAL PROCEEDINGS Sheet http://starboardresources.com/role/LegalProceedings 13. LEGAL PROCEEDINGS Notes 18 false false R19.htm 00000019 - Disclosure - 14. SUBSEQUENT EVENT Sheet http://starboardresources.com/role/SubsequentEvent 14. SUBSEQUENT EVENT Notes 19 false false R20.htm 00000020 - Disclosure - 3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) Sheet http://starboardresources.com/role/SummaryOfSignificantAccountingPoliciesPolicies 3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) Policies 20 false false R21.htm 00000021 - Disclosure - 1. RESTATEMENT (Tables) Sheet http://starboardresources.com/role/RestatementTables 1. RESTATEMENT (Tables) Tables http://starboardresources.com/role/Restatement 21 false false R22.htm 00000022 - Disclosure - 4. FAIR VALUE MEASUREMENTS (Tables) Sheet http://starboardresources.com/role/FairValueMeasurementsTables 4. FAIR VALUE MEASUREMENTS (Tables) Tables http://starboardresources.com/role/FairValueMeasurements 22 false false R23.htm 00000023 - Disclosure - 5. PROPERTY ACQUISITION AND SALE (Tables) Sheet http://starboardresources.com/role/PropertyAcquisitionAndSaleTables 5. PROPERTY ACQUISITION AND SALE (Tables) Tables http://starboardresources.com/role/PropertyAcquisitionAndSale 23 false false R24.htm 00000024 - Disclosure - 6. OIL AND NATURAL GAS PROPERTIES (Tables) Sheet http://starboardresources.com/role/OilAndNaturalGasPropertiesTables 6. OIL AND NATURAL GAS PROPERTIES (Tables) Tables http://starboardresources.com/role/OilAndNaturalGasProperties 24 false false R25.htm 00000025 - Disclosure - 7. ASSET RETIREMENT OBLIGATIONS (Tables) Sheet http://starboardresources.com/role/AssetRetirementObligationsTables 7. ASSET RETIREMENT OBLIGATIONS (Tables) Tables http://starboardresources.com/role/AssetRetirementObligations 25 false false R26.htm 00000026 - Disclosure - 9. DERIVIATIVES (Tables) Sheet http://starboardresources.com/role/DeriviativesTables 9. DERIVIATIVES (Tables) Tables http://starboardresources.com/role/Deriviatives 26 false false R27.htm 00000027 - Disclosure - 11. STOCK BASED COMPENSATION AND CONDITIONAL PERFORMANCE AWARDS (Tables) Sheet http://starboardresources.com/role/StockBasedCompensationAndConditionalPerformanceAwardsTables 11. STOCK BASED COMPENSATION AND CONDITIONAL PERFORMANCE AWARDS (Tables) Tables http://starboardresources.com/role/StockBasedCompensationAndConditionalPerformanceAwards 27 false false R28.htm 00000028 - Disclosure - 1. RESTATEMENT (Details) Sheet http://starboardresources.com/role/RestatementDetails 1. RESTATEMENT (Details) Details http://starboardresources.com/role/RestatementTables 28 false false R29.htm 00000029 - Disclosure - 3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Narrative) Sheet http://starboardresources.com/role/SummaryOfSignificantAccountingPoliciesDetailsNarrative 3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Narrative) Details http://starboardresources.com/role/SummaryOfSignificantAccountingPoliciesPolicies 29 false false R30.htm 00000030 - Disclosure - 4. FAIR VALUE MEASUREMENTS (Details) Sheet http://starboardresources.com/role/FairValueMeasurementsDetails 4. FAIR VALUE MEASUREMENTS (Details) Details http://starboardresources.com/role/FairValueMeasurementsTables 30 false false R31.htm 00000031 - Disclosure - 5. PROPERTY ACQUISITION AND SALE (Details) Sheet http://starboardresources.com/role/PropertyAcquisitionAndSaleDetails 5. PROPERTY ACQUISITION AND SALE (Details) Details http://starboardresources.com/role/PropertyAcquisitionAndSaleTables 31 false false R32.htm 00000032 - Disclosure - 6. OIL AND NATURAL GAS PROPERTIES (Details) Sheet http://starboardresources.com/role/OilAndNaturalGasPropertiesDetails 6. OIL AND NATURAL GAS PROPERTIES (Details) Details http://starboardresources.com/role/OilAndNaturalGasPropertiesTables 32 false false R33.htm 00000033 - Disclosure - 7. ASSET RETIREMENT OBLIGATIONS (Details) Sheet http://starboardresources.com/role/AssetRetirementObligationsDetails 7. ASSET RETIREMENT OBLIGATIONS (Details) Details http://starboardresources.com/role/AssetRetirementObligationsTables 33 false false R34.htm 00000034 - Disclosure - 8. GOING PUBLIC DELAY FEE (Details Narratives) Sheet http://starboardresources.com/role/GoingPublicDelayFeeDetailsNarratives 8. GOING PUBLIC DELAY FEE (Details Narratives) Details http://starboardresources.com/role/GoingPublicDelayFee 34 false false R35.htm 00000035 - Disclosure - 9. DERIVIATIVES (Details) Sheet http://starboardresources.com/role/DeriviativesDetails 9. DERIVIATIVES (Details) Details http://starboardresources.com/role/DeriviativesTables 35 false false R36.htm 00000036 - Disclosure - 9. DERIVIATIVES - Fair value (Details 1) Sheet http://starboardresources.com/role/Deriviatives-FairValueDetails1 9. DERIVIATIVES - Fair value (Details 1) Details 36 false false R37.htm 00000037 - Disclosure - 9. DERIVATIVES - Effect (Details 2) Sheet http://starboardresources.com/role/Derivatives-EffectDetails2 9. DERIVATIVES - Effect (Details 2) Details 37 false false R38.htm 00000038 - Disclosure - 10. NOTES PAYABLE (Details Narrative) Notes http://starboardresources.com/role/NotesPayableDetailsNarrative 10. NOTES PAYABLE (Details Narrative) Details http://starboardresources.com/role/NotesPayable 38 false false R39.htm 00000039 - Disclosure - 11. STOCK BASED COMPENSATION AND CONDITIONAL PERFORMANCE AWARDS (Details) Sheet http://starboardresources.com/role/StockBasedCompensationAndConditionalPerformanceAwardsDetails 11. STOCK BASED COMPENSATION AND CONDITIONAL PERFORMANCE AWARDS (Details) Details http://starboardresources.com/role/StockBasedCompensationAndConditionalPerformanceAwardsTables 39 false false R40.htm 00000040 - Disclosure - 11. STOCK BASED COMPENSATION AND CONDITIONAL PERFORMANCE AWARDS (Details 1) Sheet http://starboardresources.com/role/StockBasedCompensationAndConditionalPerformanceAwardsDetails1 11. STOCK BASED COMPENSATION AND CONDITIONAL PERFORMANCE AWARDS (Details 1) Details http://starboardresources.com/role/StockBasedCompensationAndConditionalPerformanceAwardsTables 40 false false R41.htm 00000041 - Disclosure - 11. STOCK BASED COMPENSATION AND CONDITIONAL PERFORMANCE AWARDS (Details Narrative) Sheet http://starboardresources.com/role/StockBasedCompensationAndConditionalPerformanceAwardsDetailsNarrative 11. STOCK BASED COMPENSATION AND CONDITIONAL PERFORMANCE AWARDS (Details Narrative) Details http://starboardresources.com/role/StockBasedCompensationAndConditionalPerformanceAwardsTables 41 false false All Reports Book All Reports Columns in cash flow ''CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)'' have maximum duration 6 months and at least 32 values. Shorter duration columns must have at least one fourth (8) as many values. Column '[2015-04-01 3m 2015-06-30]' is shorter (3 months) and has only 2 values, so it is being removed. Columns in cash flow ''CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)'' have maximum duration 6 months and at least 32 values. Shorter duration columns must have at least one fourth (8) as many values. Column '[2014-04-01 3m 2014-06-30]' is shorter (3 months) and has only 2 values, so it is being removed. starb-20150630.xml starb-20150630_cal.xml starb-20150630_def.xml starb-20150630_lab.xml starb-20150630_pre.xml starb-20150630.xsd true true XML 55 R38.htm IDEA: XBRL DOCUMENT v3.3.0.814
10. NOTES PAYABLE (Details Narrative) - USD ($)
$ in Thousands
Jun. 30, 2015
Dec. 31, 2014
Independent Bank    
Borrowings outstanding $ 21,000,000 $ 22,500,000
Borrowing base $ 21,250,000  
Interest rate   4.00%
Independent Bank 2    
Borrowings outstanding   $ 2,941,000
XML 56 R20.htm IDEA: XBRL DOCUMENT v3.3.0.814
3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)
6 Months Ended
Jun. 30, 2015
Summary Of Significant Accounting Policies Policies  
Basis of Presentation

The condensed consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (“GAAP”). Additionally, the accompanying unaudited condensed consolidated financial statements as of June 30, 2015 and for the six months ended June 30, 2015 and 2014 have been prepared in accordance with accounting principles generally accepted in the United States of America for interim financial statements and with the instructions to Form 10-Q, and reflect, in the opinion of management, all adjustments, which are of a normal and recurring nature, necessary for a fair presentation of the results for such periods. Operating results for the six months ended June 30, 2015 are not necessarily indicative of the results that may be expected for the year ending December 31, 2015. Certain information and footnote disclosures normally included in the consolidated financial statements prepared in accordance with U.S. GAAP have been condensed or omitted in this Form 10-Q pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”). These consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto included in our Form 10-K for the year ended December 31, 2014.

Principles of Consolidation

The accompanying condensed consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries, ImPetro Resources, LLC (“ImPetro”) and ImPetro Operating (“Operating”) (Collectively the “Company”). All intercompany transactions and balances have been eliminated in consolidation.

Oil and Gas Natural Gas Properties

The Company uses the successful efforts method of accounting for oil and natural gas producing activities, as further defined under ASC 932, Extractive Activities - Oil and Natural Gas.  Under these provisions, costs to acquire mineral interests in oil and natural gas properties, to drill exploratory wells that find proved reserves, and to drill and equip development wells are capitalized. 

 

Exploratory drilling costs are capitalized when incurred pending the determination of whether a well has found proved reserves.  A determination of whether a well has found proved reserves is made shortly after drilling is completed.  The determination is based on a process that relies on interpretations of available geologic, geophysic and engineering data.  If a well is determined to be successful, the capitalized drilling costs will be reclassified as part of the cost of the well.  Capitalized costs of producing oil and natural gas interests are depleted on a unit-of-production basis at the field level.

 

If an exploratory well is determined to be unsuccessful, the capitalized drilling costs are charged to expense in the period the determination is made.  If a determination cannot be made as to whether the reserves that have been found can be classified as proved, the cost of drilling the exploratory well is not carried as an asset for more than one year following completion of drilling.  If, after that year has passed, a determination that proved reserves exist cannot be made, the well is assumed to be impaired and its costs are charged to expense.  Its cost can, however, continue to be capitalized if a sufficient quantity of reserves is discovered in the well to justify its completion as a producing well and the Company is making sufficient progress assessing the reserves and the economic and operating viability of the project.

 

The carrying value of oil and gas properties is assessed for possible impairment on a field by field basis and on at least an annual basis, or as circumstances warrant, based on geological analysis or changes in proved reserve estimates. When impairment occurs, an adjustment is recorded as a reduction of the asset carrying value. For the six months ended June 30, 2015 and the year December 31, 2014, the Company’s impairment charge was $0 and $4,428,378.

Other Property and Equipment

Other property and equipment, which includes field equipment, vehicles, and office equipment, is stated at cost less accumulated depreciation and amortization.  Depreciation and amortization is computed using the straight-line method over the estimated useful lives of the assets.  Vehicles and office equipment are generally depreciated over a useful life of five years and field equipment is generally depreciated over a useful life of twenty years.

Revenue Recognition and Natural Gas Imbalances

The Company utilizes the accrual method of accounting for natural gas and crude oil revenues, whereby revenues are recognized based on the Company’s net revenue interest in the wells upon delivery to third parties.  The Company will also enter into physical contract sale agreements through its normal operations.

 

Gas imbalances are accounted for using the sales method.  Under this method, revenues are recognized based on actual volumes of oil and gas sold to purchasers.  However, the Company has no history of significant gas imbalances.

Income Taxes

Deferred income tax assets and liabilities are computed for differences between the financial statement and tax basis of assets and liabilities that will result in future taxable or deductible amounts, based on enacted tax laws and rates applicable to the periods in which the differences are expected to affect taxable income. Valuation allowances are established, when necessary, to reduce deferred income tax assets to the amount expected to be realized.

 

The Company is required to determine whether its tax positions are more likely than not to be sustained upon examination by the applicable taxing authority, including resolution of any related appeals or litigation processes, based on the technical merits of the position. The tax benefit recognized is measured as the largest amount of benefit that has a greater than fifty percent likelihood of being realized upon ultimate settlement with the relevant taxing authority. De-recognition of a tax benefit previously recognized results in the Company recording a tax liability that increases expense in that period. Based on its analysis, the Company has determined that it has not incurred any liability for unrecognized tax benefits as of June 30, 2015. The Company’s conclusions may be subject to review and adjustment at a later date based on factors including, but not limited to, on-going analyses of and changes to tax laws, regulations and interpretations thereof.

 

The Company recognizes interest and penalties related to unrecognized tax benefits in interest expense and other expenses, respectively. No interest expense or penalties have been recognized as of June 30, 2015.

Net Income (Loss) Per Common Share

Basic net income (loss) per common share is computed by dividing the net income (loss) attributable to stockholders by the weighted average number of common shares outstanding during the period.  Diluted net income (loss) per common share is calculated in the same manner, but also considers the impact to common shares for the potential dilution from stock options, non-vested share appreciation rights, non-vested restricted shares and warrants. For the six month period ended June 30, 2015, there were 900,000 potentially dilutive non-vested - stock options and 2,542,379 warrants. For the six month period ended June 30, 2014, there were 349,650 potentially dilutive non-vested restricted shares and stock options. The potentially dilutive options and warrants, for June 30, 2015, are considered antidilutive since the Company is in a net loss position and thus result in the basic net income (loss) per common share equaling the diluted net income (loss) per common share.

Use of Estimates

The preparation of condensed consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the condensed consolidated financial statements and the reported amounts of revenues and expenses during the reporting period.  Actual results could differ from those estimates.

 

The Company’s estimates of oil and natural gas reserves are, by necessity, projections based on geologic and engineering data, and there are uncertainties inherent in the interpretation of such data as well as the projection of future rates of production and the timing of development expenditures. Reserve engineering is a subjective process of estimating underground accumulations of natural gas and oil that are difficult to measure. The accuracy of any reserve estimate is a function of the quality of available data, engineering and geological interpretation and judgment. Estimates of economically recoverable natural gas and oil reserves and future net cash flows necessarily depend upon a number of variable factors and assumptions, such as historical production from the area compared with production from other producing areas, the assumed effect of regulations by governmental agencies, and assumptions governing future natural gas and oil prices, future operating costs, severance taxes, development costs and workover costs, all of which may in fact vary considerably from actual results. The future drilling costs associated with reserves assigned to prove undeveloped locations may ultimately increase to the extent that these reserves are later determined to be uneconomic. For these reasons, estimates of the economically recoverable quantities of expected natural gas and oil attributable to any particular group of properties, classifications of such reserves based on risk of recovery, and estimates of the future net cash flows may vary substantially. Any significant variance in the assumptions could materially affect the estimated quantity of the reserves, which could affect the carrying value of the Company’s oil and natural gas properties and/or the rate of depletion related to the oil and natural gas properties.

Recent Accounting Pronouncements

In May 2014, the Financial Accounting Standards Board issued a new accounting pronouncement regarding revenue from contracts with customers. This new standard provides guidance on recognizing revenue, including a five step model to determine when revenue recognition is appropriate. The standard requires that an entity recognizes revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. Adoption of the new standard is effective for reporting periods beginning after December 15, 2017 with early adoption not permitted. The Company is currently evaluating the potential impact that the adoption of this standard will have on its financial position, results of operations, and related disclosures, and will adopt the provisions of this new standard in the first quarter of 2018.