SUBSEQUENT EVENTS |
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| Subsequent Events [Text Block] |
NOTE 13 – SUBSEQUENT EVENTS Subsequent to March 31, 2019 , on April 9, 2019 , the Company completed the acquisition of assets from Wishbone Energy Partners, LLC, Wishbone Texas Operating Company LLC and WB WaterWorks of $249,062,999 and issuance of 4,581,001 shares of common stock , of which 2,538,071 shares are being held in escrow to satisfy potential indemnification claims. As the Company had effective control of the assets beginning
February 1, 2019 , this Acquisition was recorded effective that date and the balance sheet as of March 31, 2019 included Acquisition liabilities for such payment and stock issuance. The closing included settlement of those liabilities. In connection with the closing of the Acquisition, the Company entered into a registration rights agreement under which the Company agreed to register with the Securities and Exchange Commission the shares issued as consideration. The Company agreed to file a resale registration statement and to use reasonable best efforts to cause such registration statement to be declared effective as promptly as possible after the filing thereof. The Holders (as defined in the registration rights agreement) are also entitled to piggyback registration rights under the terms of the registration rights agreement.
Also subsequent to March 31, 2019, on April 9, 2019, the Company amended and restated its Credit Facility dated July 1, 2014, with SunTrust Bank, as lender, issuing bank and administrative agent for several banks and other financial institutions and lenders. The Amended and Restated Senior Credit Facility, among other things, increases the maximum facility amount to $1 billion, increases the borrowing base to $425 million, extends the maturity date and makes other modifications to the terms of the Credit Facility. The Amended and Restated Senior Credit Facility is secured by a first lien with substantially the same collateral requirements as the Credit Facility, has substantially the same covenants as the Credit Facility and is for a term of five- years. This amendment and restatement was done in conjunction with the above referenced Acquisition.Also subsequent to March 31, 2019, the Company entered into additional derivative contracts. These contracts were for an additional 2,000 barrels per day for the period April 2019 through December 2019 and for 2,000 barrels per day for the period January 2020 through December 2020. Following is a table reflecting these additional contracts:
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