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Subsequent Events
12 Months Ended
Sep. 30, 2021
Subsequent Events [Abstract]  
Subsequent Events

15. SUBSEQUENT EVENTS

Acquisition

As previously disclosed in a Current Report on Form 8-K filed with the SEC on November 12, 2021, on November 10, 2021, the Company entered into a Purchase and Sale Agreement (the “Vendera Purchase Agreement”) with Vendera Resources III, LP and Vendera Management III LLC to acquire certain mineral and royalty assets located in Bienville, Bossier, Caddo, DeSoto, Red River and Sabine Parishes, Louisiana, and Nacogdoches County, Texas, located in the Haynesville play (the “Vendera Assets”).  As disclosed in a Current Report on Form 8-K filed with the SEC on December 1, 2021, on December 1, 2021, the Company completed the acquisition of the Vendera Assets for an aggregate consideration of $5,306,389, comprised of $626,389 in cash and 1,519,481 shares of the Company’s Common Stock (the “Vendera Equity Consideration”).  The Vendera Assets acquired include mineral and royalty assets totaling approximately 827 net royalty acres in the Haynesville play. The Vendera Purchase Agreement includes registration rights relating to the Vendera Equity Consideration pursuant to which the Company agrees to register with the SEC the shares constituting the Vendera Equity Consideration.  The Company agrees to file a resale registration statement and to use commercially reasonable efforts to cause such registration statement to be declared effective as soon as reasonably practicable after the filing thereof. The Vendera Equity Consideration is subject to a 120-day lock-up period. The foregoing description of the Vendera Purchase Agreement is qualified in its entirety by reference to the full text of the Vendera Purchase Agreement, which was filed as Exhibit 10.1 to the Current Report on Form 8-K filed with the SEC on November 12, 2021.

Entry into Purchase and Sale Agreements

As previously disclosed in a Current Report on Form 8-K filed with the SEC on December 9, 2021, on December 6, 2021, the Company entered into two separate Purchase and Sale Agreements (collectively, the “Caddo Parish Purchase Agreements”) with two sellers (the “Sellers”) to acquire certain mineral interests, royalty interests and overriding royalty interests in the oil, gas and other minerals underlying certain lands located in Caddo Parish, Louisiana (the “Assets”). The Company entered into one purchase agreement with Merrimac Properties Partners, LLC and Quarter Horse Energy Partners, LLC (the “Merrimac Purchase Agreement”) to acquire a portion of the Assets for consideration equal to $5,185,475 in cash, and a separate purchase agreement with Palmetto Investment Partners II, LLC (the “Palmetto Purchase Agreement”) to acquire the remainder of the Assets for consideration equal to $601,797 in cash. The Assets include mineral and royalty interests totaling approximately 426 net royalty acres in the Haynesville play. The obligations of the Company and the Sellers to close each acquisition is subject to certain customary closing conditions as set forth in the Caddo Parish Purchase Agreements. There can be no assurance that the conditions to closing the acquisitions of the Assets will be satisfied. The above description of the Caddo Parish Purchase Agreements does not purport to be complete and is qualified in its entirety by reference to the full text of the Merrimac Purchase Agreement, which is filed as Exhibit 10.1 to the Current Report on Form 8-K filed with the SEC on December 9, 2021, and the Palmetto Purchase Agreement, which is filed as Exhibit 10.2 to the Current Report on Form 8-K filed with the SEC on December 9, 2021.

Divestitures

Subsequent to September 30, 2021, the Company divested approximately 708 working interest wellbores for net proceeds of approximately $4,625,000 in three separate transactions.

Borrowing Base Redetermination

As previously disclosed in a Current Report on Form 8-K filed with the SEC on December 9, 2021, on December 6, 2021, the Company entered into the First Amendment (the “Amendment”) to the Credit Agreement. The Amendment provides for an increase to

the Companys Borrowing Base from $27.5 million to $32.0 million. The Borrowing Base will remain at $32.0 million until the next scheduled semi-annual redetermination, which is scheduled to occur on or about June 1, 2022, unless otherwise redetermined pursuant to an Unscheduled Redetermination. In addition, the Amendment changes the commitment schedule to reallocate the Committed Sum and Commitment Percentage of each Lender under the Credit Agreement. All capitalized terms in this description of the Amendment that are not otherwise defined in this Form 10-K have the meaning assigned to them in the Credit Agreement. The above description of the Amendment does not purport to be complete and is qualified in its entirety by reference to the full text of the Amendment, which is filed as Exhibit 10.3 to the Current Report on Form 8-K filed with the SEC on December 9, 2021.

Federal Tax Refund

Subsequent to September 30, 2021, the Company received a $2.2 million federal tax refund included in the refundable income taxes line item on the Company’s balance sheets as of September 30, 2021.