Kingsland Energy files NOI under bankruptcy act
KINGSLAND ENERGY Corp. has released its unaudited financial results for the second quarter period ended May 31, 2017.
During the six-month period ending May 31, 2017, the corporation pursued several initiatives to procure long-term sustainability in a depressed commodity market environment. The corporation has successfully reduced office administration and associated human resource cost as it pursues financing initiatives to reduce debt and finance growth initiatives.
The corporation is continually working toward the restructuring of its long-term debt obligation. Its wholly owned subsidiary EHR Enhanced Hydrocarbon Recovery Inc. is evaluating a number of new energy technology business initiatives.
During the 2016 year, the corporation has held meetings and has communicated to the debentureholders that the corporation is not able to pay debenture interests that have matured or are in the process of maturing. The corporation has made a proposal to all debentureholders to convert the debentureholders’ interest, including related interest amounts, to shares based on a five-cent-per-share amount. The corporation has received commitments for its conversion plan from the majority of its debentureholders.
On June 30, 2017, the corporation settled $667,653 of the secured loan for consideration of 631,250 shares of Kingsland Oil Corp. (KOC) and 800,000 common shares for a complete release of all amounts owing.
(See KLE Table 1 on page 23)
Revenues for the period were nil compared with $38,500 for the period ended May 31, 2016. Revenues for the period are associated with consulting services. Revenues from oil and gas will not resume until the corporation acqu i res ex i st i ng production and realizes revenue from the farm-in opportunities.
Net loss and comprehensive loss for the period were $120,003, compared with a loss of $168,534 as at May 31, 2016. The decrease is attributable to reduction in rent, consulting expenses and everyday operating expenses.
Total assets for the period were $930,058 versus $1,900,778 as at May 31, 2016. As at May 31, 2017, current liabilities were $3,330,098 versus $2,288,333 as at Nov. 30, 2016.
Long-term liabilities were $148,900 as at May 31, 2017, compared with $875,900 as at May 31, 2016. The decrease in long-term debt is the net result of maturing debentures resulting in reclassification from long-term debt to current debt.
The corporation also announces that it has filed today a notice of intention to make a proposal pursuant to the provisions of the Bankruptcy and Insolvency Act (Canada). Hardie & Kelly Inc. has been appointed as the trustee in the corporation’s proposal proceedings and will assist the corporation in its
The action by Kingsland Energy has been taken as a response to pending litigation by a creditor of the corporation. The filing of the notice of intention has the effect of imposing an automatic 30-day stay of proceedings that will protect the corporation and its assets from the claims of creditors while the corporation pursues its restructuring efforts.
The corporation believes that the action it has taken will be beneficial to all stakeholders by giving the corporation the time and resources needed to deal with its outstanding debt and to find other sources of financing or take opportunity to merge with or be acquired by another company.
The corporation will provide further updates as to the next steps of the process when these have been determined.
We seek Safe Harbor.
Erika Flores condensed this news release (firstname.lastname@example.org).
Jeffrey D Allison, Lionel Peter Kambeitz, Murray Wayne Pierce
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