Get Started for Free Contexxia identifies hard-to-find pieces of information in SEC filings. No more highlighters, no more redlining, no more poring over huge documents. YATERRA VENTURES CORP. (1406588) 10-K published on Nov 22, 2013 at 3:20 pm
Reporting Period: Aug 30, 2012
The Bend Arch-Fort Worth Basin is a geological system covering Fifty-Four Thousand (54,000) square miles, primarily comprised within north-central Texas and southwestern Oklahoma (see image on the left). The United States Geological Survey estimated an average of Twenty-Six Trillion Seven Hundred Billion (26,700,000,000,000) cubic feet of undiscovered natural gas and a mean of One Billion One Hundred Million (1,100,000,000) barrels of undiscovered natural gas liquids in the Bend Arch-Fort Worth Basin. According to the United States Geological Survey. National Assessment of Oil and Gas Fact Sheet. 2003. Web. 14 June 2011, the market for oil hydrocarbons and petroleum in the United States has grown exponentially, creating an unprecedented demand for refined oil and gas. We plan to launch an operating infrastructure for the profitable production of oil and gas through a sustainable business model for the acquisition and retention of valuable leases, wells and other related properties.
According to Alex Epstein’s Four Dirty Secrets about Clean Energy. 2011 and Steve Hargreaves. Oil Demand to Hit Highest Level Ever. 2011, the demand for oil and natural gas has increased in recent years and is expected to increase in the future. Consistent with this trend consumption of oil in the United States is projected to rise from Eighteen Million Five Hundred Fifty Thousand (18,550,000) barrels of oil per day in 2012 to Eighteen Million Six Hundred Sixty Nine Thousand (18,690,000) barrels of oil per day in 2014 as stated by the United States. Energy Information Administration. Short-Term Energy Outlook. The average price of imported crude oil for refineries in the United States is expected to decrease from the 2013 average of Ninety-Nine Dollars and Forty-Seven Cents ($99.47) per barrel to Ninety-Six Dollars and Ninety-Nine Cents ($96.99) per barrel in 2014.
Our lack of operating capital and stretched cash-flow impose both short and long-term challenges. Acquiring an orphaned well requires an active Form P-5 Organization Report, which details an applicant’s operations. This form must be filed with the Texas Railroad Commission (“TRRC”) by any entity or person operating under the commission of the TRRC within the State of Texas. According to the Railroad Commission’s website, we must be a “Bonded Operator” and have a good faith claim to operate acquired wells. Furthermore, the Railroad Commission of Texas. Instructions: Individual & Blanket Performance Bonds Letters of Credit or Cash Deposits. Austin, TX. published July 2011, requires that a Blanket Performance Bond be submitted to cover all wells and operations. The minimum amount for a Blanket Performance Bond is Twenty-Five Thousand Dollars ($25,000.00) which covers acquisition and operation of up to Ten (10) wells. The equipment, maintenance and general overhead necessary to produce oil at an efficient rate requires significant additional working capital.
We also anticipate possible legal and regulatory challenges. Expenditures of time and resources may be required in accordance with various state and federal compliance laws, including licensing and operating requirements. Crude oil and natural gas reserve engineering is a subjective process that is inherently risky. Various uncertainties exist when estimating quantities of proved crude oil and natural gas reserves. Accordingly, estimating underground accumulations of crude oil and natural gas cannot be precisely measured. The accuracy of any reserve estimate is the function of the quality of available data and engineering and geological interpretation. Numerous market uncertainties may impact our performance, including future hydrocarbon production, changes in the price of oil, availability of indispensible equipment and services, and competitors with greater financial resources.
On each of February 22, 2013, March 19, 2013, April 2, 2013, May 6, 2013, we issued convertible notes in the principal amount of $35,000, $50,000, $19,250 and $25,000, respectively due on October 22, 2013, March 18, 2014, April 1, 2014 and May 5, 2014. The notes bear interest at 12% per annum, are unsecured. The February note is convertible into shares of our common stock at a conversion price equal to 55% of the lowest trading price of our common stock during the 5 consecutive trading days prior to the conversion date. The March and May notes are convertible into shares of our common stock at a conversion price equal to 50% of the average of the 5 lowest trading price of our common stock during the 20 consecutive trading days prior to the conversion date. The April note is convertible into shares of our common stock at a conversion price equal to 55% of the lowest trading price of our common stock during the 5 consecutive trading days prior to the conversion date. These securities were issued pursuant to Section 4(a)(2) of the Securities Act of 1933. The holders represented their intention to acquire the securities for investment only and not with a view towards distribution, and that they were accredited investors. The holders were given adequate information about us to make an informed investment decision. We did not engage in any general solicitation or advertising.
On February 26, 2013, we issued a 12% convertible note in the principal amount of $76,416 in exchange for a convertible note with outstanding principal and accrued interest of $76,416. The issued note is convertible at any time after the issue date into shares of Common Stock at 50% of the lowest trading price in 20 days prior to the date of conversion, as reported by Quotestream. The note exchange was effected in reliance upon Section 3(a)(9) of the Securities Act of 1933.
On each of March 1, 2013, March 1, 2013, March 22, 2013 and May 6, 2013, we issued convertible notes in the principal amount of $55,000, $1,045, $8,000 and $25,000, respectively. The notes bear interest at 21% per annum, are unsecured and are repayable one year after the issue date. The March and April notes are convertible into shares of our common stock at a conversion price equal to 50% of the lowest trading price of our common stock during the 90 consecutive trading days prior to the conversion date. The May note is convertible into shares of our common stock at a conversion price equal to 50% of the average of the 3 lowest trading price of our common stock during the 10 consecutive trading days prior to the conversion date. These securities were issued pursuant to Section 4(a)(2) of the Securities Act of 1933. The holders represented their intention to acquire the securities for investment only and not with a view towards distribution, and that they were accredited investors. The holders were given adequate information about us to make an informed investment decision. We did not engage in any general solicitation or advertising.