Nevada | 87-0448843 | |
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) | |
1 Gorham Island Suite 303 Westport, Connecticut | 06880 | |
(Address of principal executive offices) | (Zip code) |
PART I-FINANCIAL INFORMATION | PAGE | ||||
Item 1.
|
Financial Statements | 3 | |||
Item 2.
|
Management’s Discussion and Analysis of Financial Condition And Results of Operations | 8 | |||
Item 3.
|
Quantitative and Qualitative Disclosures About Market Risk
|
11 | |||
Items 4 and 4T.
|
Controls and Procedures
|
11 | |||
PART II-OTHER INFORMATION
|
|||||
Item 1.
|
Legal Proceedings
|
12 | |||
Item 1A
|
Risk Factors
|
12 | |||
Item 2.
|
Unregistered Sales of Equity Securities and Use of Proceeds
|
13 | |||
Item 3.
|
Defaults Upon Senior Securities
|
13 | |||
Item 4.
|
Mine Safety Disclosures
|
13 | |||
Item 5.
|
Other Information
|
13 | |||
Item 6.
|
Exhibits
|
13 |
Assets
|
||||||||
September 30,
2012
|
June 30,
2012
|
|||||||
(Unaudited)
|
||||||||
Current Assets
|
||||||||
Cash
|
$ | 50,197 | $ | 82,433 | ||||
Oil and gas sales receivable
|
1,126,750 | 819,590 | ||||||
Prepaid expenses
|
21,383 | 30,750 | ||||||
Total Current Assets
|
1,198,330 | 932,773 | ||||||
Property and Equipment
|
||||||||
Office equipment
|
30,417 | 30,417 | ||||||
Leasehold improvements
|
26,458 | 26,458 | ||||||
Accumulated depreciation
|
(38,915 | ) | (37,732 | ) | ||||
Net Property and Equipment
|
17,960 | 19,143 | ||||||
Other Assets
|
||||||||
Investment in oil and gas working interest – related party
|
1,583,914 | 1,583,914 | ||||||
Security deposit
|
16,312 | 16,312 | ||||||
Total Other Assets
|
1,600,226 | 1,600,226 | ||||||
Total Assets
|
$ | 2,816,516 | $ | 2,552,142 | ||||
Liabilities and Stockholders’ Equity
|
||||||||
Current Liabilities
|
||||||||
Accounts payable
|
$ | 51,849 | $ | 58,190 | ||||
Security deposits
|
13,200 | 13,200 | ||||||
Note payable
|
12,581 | 24,854 | ||||||
Accrued liabilities
|
241,099 | 232,216 | ||||||
Total Current Liabilities
|
318,729 | 328,460 | ||||||
Total Liabilities
|
318,729 | 328,460 | ||||||
Stockholders’ Equity
|
||||||||
Common stock, par value $0.001 per share;
|
||||||||
authorized 80,000,000 shares; 40,679,429 and
|
||||||||
39,432,761 shares issued and outstanding, respectively
|
40,679 | 39,433 | ||||||
Capital in excess of par value
|
12,522,139 | 12,336,385 | ||||||
Accumulated deficit
|
(10,065,031 | ) | (10,152,136 | ) | ||||
Total Stockholders’ Equity
|
2,497,787 | 2,223,682 | ||||||
Total Liabilities and Stockholders’ Equity
|
$ | 2,816,516 | $ | 2,552,142 |
2012
|
2011
|
|||||||
Revenue – Oil and gas royalties
|
$ | 307,160 | $ | 67,579 | ||||
General and Administrative Expenses
|
||||||||
Administrative salaries
|
104,994 | 104,420 | ||||||
Legal and professional
|
53,618 | 34,152 | ||||||
General and administrative
|
42,465 | 50,311 | ||||||
Office overhead expenses
|
15,487 | 18,509 | ||||||
Depreciation
|
1,183 | 1,253 | ||||||
Total Expenses
|
217,747 | 208,645 | ||||||
Net Operating Income (Loss)
|
89,413 | (141,066 | ) | |||||
Other Income and (Expense)
|
||||||||
Interest expense
|
(2,308 | ) | (1,804 | ) | ||||
Total Other Income and (Expense)
|
(2,308 | ) | (1,804 | ) | ||||
Net Income (Loss) Before Tax
|
87,105 | (142,870 | ) | |||||
Income Tax
|
- | - | ||||||
Net Income (Loss)
|
$ | 87,105 | $ | (142,870 | ) | |||
Earnings (Loss) per Share
|
||||||||
Basic
|
$ | 0.00 | $ | (0.00 | ) | |||
Fully Diluted
|
$ | 0.00 | $ | N/A | ||||
Weighted Average Number of Shares Outstanding
|
||||||||
Basic
|
39,994,066 | 34,385,333 | ||||||
Fully Diluted
|
42,354,066 | 36,745,333 |
THE AMERICAN ENERGY GROUP, LTD.
|
Statements of Cash Flows
|
For the Three Months Ended September 30, 2012 and 2011
|
(Unaudited)
|
2012
|
2011
|
|||||||
Cash Flows From Operating Activities
|
||||||||
Net income (loss)
|
$ | 87,105 | $ | (142,870 | ) | |||
Adjustments to reconcile net income (loss) to net cash
|
||||||||
(used in) operating activities:
|
||||||||
Depreciation
|
1,183 | 1,253 | ||||||
Changes in operating assets and liabilities:
|
||||||||
(Increase) decrease in oil and gas sales receivable
|
(307,160 | ) | (57,869 | ) | ||||
(Increase) decrease in prepaid expenses
|
(2,906 | ) | 8,516 | |||||
Increase (decrease) in accounts payable
|
(6,341 | ) | (9,388 | ) | ||||
Increase (decrease) in accrued expenses
|
||||||||
and other current liabilities
|
8,883 | 20,144 | ||||||
Net Cash (Used In) Operating Activities
|
(219,236 | ) | (180,214 | ) | ||||
Cash Flows From Investing Activities
|
||||||||
Funds reserved for acquisitions
|
- | - | ||||||
Net Cash Provided By Investing Activities
|
- | - | ||||||
Cash Flows From Financing Activities
|
||||||||
Cash received from stock issuances
|
187,000 | - | ||||||
Net Cash Provided By Financing Activities
|
187,000 | - | ||||||
Net (Decrease) in Cash
|
(32,236 | ) | (180,214 | ) | ||||
Cash and Cash Equivalents, Beginning of Period
|
82,433 | 246,061 | ||||||
Cash and Cash Equivalents, End of Period
|
$ | 50,197 | $ | 65,847 | ||||
Cash Paid For:
|
||||||||
Interest
|
$ | 2,308 | $ | 1,804 | ||||
Taxes
|
$ | - | $ | - |
For the three
months ended,
Sept 30, 2012
|
For the three
months ended,
Sept 30, 2011
|
|||||||
Income (Loss) (numerator)
|
$ | 87,105 | $ | (142,870 | ) | |||
Basic Shares (denominator)
|
39,994,066 | 34,385,333 | ||||||
Fully Diluted Shares (denominator)
|
42,354,066 | 36,745,333 | ||||||
Basic Income (Loss) Per Share
|
$ | 0.00 | $ | (0.00 | ) | |||
Fully Diluted Income (Loss) Per Share
|
$ | 0.00 | $ | N/A |
Exhibit 31.1 | Certification by R. Pierce Onthank, President, Chief Executive Officer and Principal Financial Officer pursuant to Rule 13a-14(a) or Rule 15d-14(a); | |
Exhibit 32.1 | Certification by R. Pierce Onthank, President, Chief Executive Officer and Principal Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, Section 1350(a) and (b). | |
101.INS **
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XBRL Instance Document
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101.SCH **
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XBRL Taxonomy Extension Schema Document
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101.CAL **
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XBRL Taxonomy Extension Calculation Linkbase Document
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101.DEF **
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XBRL Taxonomy Extension Definition Linkbase Document
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101.LAB **
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XBRL Taxonomy Extension Label Linkbase Document
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101.PRE **
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XBRL Taxonomy Extension Presentation Linkbase Document
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THE AMERICAN ENERGY GROUP, LTD. | |||
DATED: November 19, 2012
|
By:
|
/s/ R. Pierce Onthank | |
R. Pierce Onthank, President, Chief Executive | |||
Officer, Principal Financial Officer and Director |
a)
|
designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure the 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 small business issuer’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 small business issuer’s internal control over financial reporting that occurred during the small business issuer’s most recent fiscal quarter (the small business issuer’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the small business issuer’s internal control over financial reporting; and
|
a)
|
all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably 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.
|
DATED: November 19, 2012
|
By:
|
/s/ R. PIERCE ONTHANK | |
Printed Name: R. PIERCE ONTHANK | |||
President, Chief Executive Officer and | |||
Principal Financial Officer |
1.
|
The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934 (the “Exchange Act”); and
|
2.
|
The information in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.
|
DATED: November 19, 2012
|
By:
|
/s/ R. Pierce Onthank | |
R. Pierce Onthank | |||
President, Chief Executive Officer and | |||
Principal Financial Officer |
Common Stock
|
3 Months Ended |
---|---|
Sep. 30, 2012
|
|
Notes to Financial Statements | |
Note 4 - Common Stock | During August, 2012, the Company issued 1,046,668 shares of common stock for cash at $0.15 per share.
During September, 2012, the Company issued 200,000 shares of common stock for cash at $0.15 per share. |
Revenue Recognition
|
3 Months Ended |
---|---|
Sep. 30, 2012
|
|
Notes to Financial Statements | |
Note 3 - Revenue Recognition | Revenue from oil and gas royalties consists solely of override royalty interests and is recognized after production has occurred on the oil and gas concession in which the Company has an interest. Royalty income is reported on a net revenue basis. |
General
|
3 Months Ended |
---|---|
Sep. 30, 2012
|
|
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Note 1 - General | The accompanying unaudited condensed financial statements have been prepared by the Company pursuant to the rules and regulations of the Securities and Exchange Commission. Certain information and footnote disclosures normally included in financial statements prepared in accordance with generally accepted accounting principles have been condensed or omitted in accordance with such rules and regulations. The information furnished in the interim condensed financial statements include normal recurring adjustments and reflects all adjustments, which, in the opinion of management, are necessary for a fair presentation of such financial statements. Although management believes the disclosures and information presented are adequate to make the information not misleading, it is suggested that these interim condensed financial statements be read in conjunction with the Company's audited financial statements and notes thereto included in its June 30, 2012 Annual Report on Form 10-K. Operating results for the three months ended September 30, 2012 are not necessarily indicative of the results that may be expected for the year ending June 30, 2013. |
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Basic Loss Per Share of Common Stock
|
3 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2012
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings (Loss) per Share | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Note 2 - Basic Loss Per Share of Common Stock |
The basic loss per share of common stock is based on the weighted average number of shares issued and outstanding during the period of the financial statements. Stock warrants convertible into 2,360,000 shares of common stock are not included in the basic calculation because their inclusion would be antidilutive, thereby reducing the net loss per common share. |
Balance Sheets (Parenthetical) (USD $)
|
Sep. 30, 2012
|
Jun. 30, 2012
|
---|---|---|
Stockholders' Equity | ||
Common Stock Par Value | $ 0.001 | $ 0.001 |
Common Stock Shares Authorized | 80,000,000 | 80,000,000 |
Common Stock Shares Issued | 40,679,429 | 39,432,761 |
Common Stock Shares Outstanding | 40,679,429 | 39,432,761 |
Document and Entity Information
|
3 Months Ended | |
---|---|---|
Sep. 30, 2012
|
Nov. 19, 2012
|
|
Common stock issued for services rendered | ||
Entity Registrant Name | AMERICAN ENERGY GROUP LTD | |
Entity Central Index Key | 0000843212 | |
Document Type | 10-Q | |
Document Period End Date | Sep. 30, 2012 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --06-30 | |
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 | 41,279,429 | |
Document Fiscal Period Focus | Q1 | |
Document Fiscal Year Focus | 2013 |
Statements of Operations (Unaudited) (USD $)
|
3 Months Ended | |
---|---|---|
Sep. 30, 2012
|
Sep. 30, 2011
|
|
Income Statement [Abstract] | ||
Revenue - Oil and gas royalties | $ 307,160 | $ 67,579 |
General and Administrative Expenses | ||
Administrative salaries | 104,994 | 104,420 |
Legal and professional | 53,618 | 34,152 |
General and administrative | 42,465 | 50,311 |
Office overhead expenses | 15,487 | 18,509 |
Depreciation | 1,183 | 1,253 |
Total Expenses | 217,747 | 208,645 |
Net Operating Income (Loss) | 89,413 | (141,066) |
Other Income and (Expense) | ||
Interest expense | (2,308) | (1,804) |
Total Other Income and (Expense) | (2,308) | (1,804) |
Net Income (Loss) Before Tax | 87,105 | (142,870) |
Income Tax | ||
Net Income (Loss) | $ 87,105 | $ (142,870) |
Earnings (Loss) per Share | ||
Basic | $ 0.00 | $ 0.00 |
Fully Diluted | $ 0.00 | $ 0.00 |
Weighted Average Number of Shares Outstanding | ||
Basic | 39,994,066 | 34,385,333 |
Fully Diluted | 42,354,066 | 36,745,333 |
Going Concern
|
3 Months Ended |
---|---|
Sep. 30, 2012
|
|
Notes to Financial Statements | |
Note 7 - Going Concern | The Companys financial statements have been prepared using accounting principles generally accepted in the United States of America applicable to a going concern, which contemplates the realization of assets and liquidation of liabilities in the normal course of business. Accordingly, the financial statements do not include any adjustments related to the recoverability of assets or classification of liabilities that might be necessary should the Company be unable to continue as a going concern. At September 30, 2012, while the Companys current assets exceeded its current liabilities, it has recorded negative cash flows from operations and net losses in this period and prior fiscal periods. The preceding circumstances combine to raise substantial doubt about the Companys ability to continue as a going concern. The Company has received its initial two royalty payments from the operator of the Pakistan petroleum concession and based upon managements expectation of continuous production in future periods, management expects that a regular royalty revenue stream will be forthcoming.
|
Subsequent Events
|
3 Months Ended |
---|---|
Sep. 30, 2012
|
|
Notes to Financial Statements | |
Note 6 - Subsequent Events | In accordance with ASC 855-10, management of the Company has reviewed all material events from September 30, 2012 through the date the financial statements were issued. Subsequent to September 30, 2012, the Company issued 600,000 shares of Common Stock for cash at $0.15 per share. There were no other material events that warrant any additional disclosure. |
Basic Loss Per Share of Common Stock (Tables)
|
3 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2012
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings (Loss) per Share | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Basic Loss Per Share of Common Stock |
Basic Loss Per Share of Common Stock
|
Basic Loss Per Share of Common Stock (Details Narrative) (USD $)
|
3 Months Ended |
---|---|
Sep. 30, 2012
|
|
Basic Loss Per Share Of Common Stock Details Narrative | |
Stock warrants convertible into shares of common stock | $ 2,360,000 |
Investment in Oil and Gas Working Interest - Related Party
|
3 Months Ended |
---|---|
Sep. 30, 2012
|
|
Notes to Financial Statements | |
Note 5 - Investment in Oil and Gas Working Interest - Related Party | During the quarter ended December 31, 2009, the Company executed an agreement to acquire from Hycarbex American Energy, Inc. (Hycarbex), a related party, a two and one half percent (2-1/2%) working interest in each of the 2,258 square kilometer Sanjawi Block No. 3068-2, Zone II, Baluchistan Province, Pakistan, and 1,229 square kilometer Zamzama North Block No. 2667-8, Zone III, Sindh Province, Pakistan. In exchange for the working interest, the Company issued (1) 2,000,000 shares of common stock to Hycarbex, (2) 100,000 warrants with a three year duration to purchase an additional 100,000 shares at $1.75 per share and (3) $100,000 in cash.
The Company has the option to convert the two and one half percent working interests described above to a one and one half percent gross royalty working interest at any time. |
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