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Exhibit 99.2
American Standard Energy Corp.
Unaudited Pro Forma Combined Financial Statements
     
On December 1, 2010, American Standard Energy Corp. (“ASEC” or the “Company”), formerly known as Uncle Al’s Famous Hot Dogs & Grille, Inc., entered into a Purchase of Partial Leaseholds Agreement (the “Agreement”) with Geronimo Holding Corporation (“Geronimo”). Pursuant to the Agreement, the Company purchased certain non-operated mineral rights leaseholds held on properties located in North Dakota (the “Properties”). In consideration for the mineral rights the Company paid Geronimo $500,000 cash and issued 1,200,000 shares of the Company’s common stock.  The acquisition of the Properties from Geronimo was a transaction under common control and accordingly, the Company recorded the assets and liabilities acquired from Geronimo at their historical carrying values and no goodwill or other intangible assets were recognized. The accompanying unaudited pro forma combined financial statements have been prepared to assist investors in their analysis of the financial effects of the acquisition of the Properties by ASEC on December 1, 2010.

This information is based on the historical financial statements of the Properties and ASEC and should be read in conjunction with the Company’s (a) historical audited financial statements and related notes filed in ASEC’s Form 8-K for the year ended December 31, 2009, filed with the United States Securities and Exchange Commission (“SEC”) on October 4, 2010, and (b) historical unaudited financial statements of ASEC as of September 30, 2010, and for the three and nine months ended September 30, 2010 and 2009, and related notes in ASEC’s Current Report on Form 8-K filed with the SEC on November 15, 2010, and the Properties’ historical financial statements and related notes which are included in this filing.

ASEC and Geronimo are entities under common control.  As a result, the acquisition of the Properties by ASEC from Geronimo will not be accounted for as a purchase, but as a reorganization of entities under common control.  Accordingly, the accompanying unaudited pro forma balance sheet of ASEC as of September 30, 2010, and the unaudited pro forma statements of operations of ASEC for the nine months ended September 30, 2010 and the year ended December 31, 2009, have been prepared to give effect to the Properties acquisition as if the Properties had been historically combined with ASEC for all periods presented.
 
The unaudited pro forma combined financial statements included herein are not necessarily indicative of the results that might have occurred had the transaction taken place on September 30, 2010 or January 1, 2009 and are not intended to be a projection of future results. In addition, future results may vary significantly from the results reflected in the accompanying unaudited pro forma combined financial statements because of normal production declines, changes in commodity prices, future acquisitions and divestitures, future development and exploration activities and other factors.

 
1

 
 
Unaudited Pro Forma Combined Balance Sheet
September 30, 2010

   
ASEC
Historical
   
The
Properties 
Historical
   
Pro Forma
Adjustments
   
Pro Forma
Combined
 
               
(Notes A
and B)
       
Assets
                       
Current assets:
                       
Cash and cash equivalents
  $ 159,172     $ -     $ (159,172 )   $ -  
Oil and gas sales receivable
    155,310       182,258       -       337,568  
Total current assets
    314,482       182,258       (159,172     337,568  
                                 
Oil and natural gas properties, at cost,successful efforts method
                               
Proved oil and natural gas properties
    3,513,772       1,760,121       -       5,273,893  
Drilling in progress
    3,009,566       542,739       -       3,552,305  
Unproved properties
    4,306,197       -       -       4,306,197  
Accumulated depreciation, depletion and amortization
    (1,205,550 )     (617,904 )     -       (1,823,454 )
Total oil and natural gas properties, net
    9,623,985       1,684,956       -       11,308,941  
                                 
Total assets
  $ 9,938,467     $ 1,867,214     $ (159,172 )   $ 11,646,509  
                                 
Liabilities and Stockholders’ Equity
                               
Current liabilities:
                               
Accounts payable
  $ 373,306     $ 9,870     $ -     $ 383,176  
Accounts payable – related parties
    761,795       -       340,828       1,102,623  
Accrued capital expenditures
    187,466       335,156       -       522,622  
Accrued capital expenditures–related party
    343,665       -       -       343,665  
                                 
Total current liabilities
    1,666,232       345,026       340,828       2,352,086  
                                 
Asset retirement obligations
    65,207       9,061       -       74,268  
                                 
Total liabilities
    1,731,439       354,087       340,828       2,426,354  
                                 
Stockholders’ equity:
                               
Common stock, $0.001 par value
    21,560       -       1,200       22,760  
Additional paid-in capital
    13,241,949       -       1,246,503       14,488,452  
Geronimo net investment
    -       1,747,703       (1,747,703 )     -  
Deficit
    (5,056,481 )     (234,576 )     -       (5,291,057 )
Total stockholders’ equity
    8,207,028       1,513,127       (500,000 )     9,220,155  
                                 
Total liabilities and stockholders’ equity
  $ 9,938,467     $ 1,867,214     $ (159,172 )   $ 11,646,509  

The accompanying notes are an integral part of these unaudited pro forma combined financial statements.

 
2

 

American Standard Energy Corp.
Unaudited Pro Forma Combined Statement of Operations
Nine Months Ended September 30, 2010
(Note A)

   
ASEC
Historical
   
The
Properties 
Historical
   
Pro Forma
Combined
 
                   
Oil and natural gas revenues
  $ 481,301     $ 444,977     $ 926,278  
                         
Operating costs and expenses:
                       
Oil and natural gas production
    324,350       86,924       411,274  
Exploration expenses
    247,463       -       247,463  
Impairment of oil and gas properties
    -       46,553       46,553  
Depreciation, depletion and amortization
    143,046       190,800       333,846  
Accretion of asset retirement obligations
    4,372       188       4,560  
General and administrative
    4,228,010       49,060       4,277,070  
                         
Total operating costs and expenses
    4,947,241       373,525       5,320,766  
                         
(Loss) income from operations before income taxes
    (4,465,940 )     71,452       (4,394,488 )
                         
Income taxes
    -       -       -  
                         
Net (loss) income
  $ (4,465,940 )   $ 71,452     $ (4,394,488 )
                         
Basic and diluted loss per share:
                       
Net loss per share
  $ (.21 )           $ (.19 )
                         
Weighted average shares used in basic and diluted loss per share
    21,560,006       1,200,000       22,760,006  
The accompanying notes are an integral part of these unaudited pro forma combined financial statements.

 
3

 

Unaudited Pro Forma Combined Statement of Operations
Year ended December 31, 2009
(Note A)
                   
   
ASEC
Historical
   
The
Properties 
Historical
   
Pro Forma
Combined
 
                   
Oil and natural gas revenues
  $ 651,384     $ 120,662     $ 772,046  
                         
Operating costs and expenses:
                       
Oil and natural gas production
    333,499       24,371       357,870  
Exploration expenses
    240,382       -       240,382  
Impairment of oil and natural gas properties
    -       253,258       253,258  
Depreciation, depletion and amortization
    234,710       127,293       362,003  
Accretion of asset retirement obligations
    3,027       -       3,027  
General and administrative
    105,061       21,768       126,829  
                         
Total operating costs and expenses
    916,679       426,690       1,343,369  
                         
Loss from operations before income taxes
    (265,295 )     (306,028 )     (571,323 )
                         
Income taxes
    -       -       -  
                         
Net loss
  $ (265,295 )   $ (306,028 )   $ (571,323 )
                         
Basic and diluted loss per share:
                       
Net loss per share
  $ (.01 )           $ (.03 )
                         
Weighted average shares used in basic and dilutedloss per share
    21,560,006       1,200,000       22,760,006  
                         
Pro forma for change for tax status (unaudited):
                       
Loss before income taxes
  $ (265,295 )   $ (306,028 )   $ (571,323 )
Pro forma income taxes
    92,000       -       92,000  
Pro forma net loss
  $ (173,295 )   $ (306,028 )   $ (479,323 )

The accompanying notes are an integral part of these unaudited pro forma combined financial statements.

 
4

 

Notes to Unaudited Pro Forma Combined Financial Statements
September 30, 2010 and December 31, 2009
 
Note A. Basis of Presentation

ASEC and Geronimo are entities under common control.  As a result, the acquisition of the Properties by ASEC from Geronimo will not be accounted for as a purchase, but as a reorganization of entities under common control.  Accordingly, the accompanying unaudited pro forma combined balance sheet of ASEC as of September 30, 2010, and the unaudited pro forma combined statements of operations of ASEC for the nine months ended September 30, 2010 and the year ended December 31, 2009, have been prepared to give effect to the acquisition of the Properties as if the Properties had been historically combined with ASEC for all periods presented.

Following are descriptions of the individual columns included in the accompanying unaudited pro forma combined financial statements and notes to unaudited pro forma combined financial statements:

ASEC
Historical -
 
Represents the historical consolidated balance sheet of ASEC as of September 30, 2010, and the historical consolidated results of operations of ASEC for the nine months ended September 30, 2010 and the year ended December 31, 2009. ASEC applies the successful efforts method for accounting for its oil and natural gas properties.
 
The number of shares outstanding has been adjusted to reflect the effective 2 for 1 stock split which occurred on October 1, 2010 as part of the stock exchange agreement between American Standard Energy Corp. and Uncle Al’s Famous Hot Dogs & Grille, Inc.
     
The
Properties
Historical -
 
Represents the historical statement of assets and liabilities of the Properties as of September 30, 2010, and the historical statements of revenues and expenses of the Properties for the nine months ended September 30, 2010 and the year ended December 31, 2009. These financial statements utilize the successful efforts method of accounting for oil and natural gas properties.

Note B. Pro Forma Adjustments

To record the acquisition of the Properties as a reorganization of entities under common control and per the terms of the Purchase of Partial Leaseholds Agreement, under which ASEC paid $500,000 cash and issued 1,200,000 shares of the Company’s common stock and recorded the financial position of the Properties at their net historical cost basis.  The acquisition of the Properties was funded partially with cash on hand and partially with the $1,200,000 of cash raised on the October 20, 2010 private placement offering.  The 1,200,000 shares of common stock issued to acquire the Properties was recorded at its fair market value and the difference between the cash and fair market value of the stock and the historical costs of the net assets acquired was recorded as a deemed dividend to additional paid-in capital.

 
5

 
 
Notes to Unaudited Pro Forma Combined Financial Statements
September 30, 2010 and December 31, 2009
 
Note C. Supplementary Pro Forma Information for Oil and Natural Gas Producing Activities
    
            The following tables present supplementary pro forma information for oil and natural gas producing activities.

Pro Forma Combined Reserve Quantity Information

The following table provides a rollfoward of total net proved reserves for the year ended December 31, 2009, as well as disclosure of total proved developed and undeveloped reserves of ASEC and the Properties on a pro forma combined basis:

   
ASEC Historical
   
The Properties Historical
   
Pro Forma Combined
 
   
Oil
   
Natural
Gas
   
Total
   
Oil
   
Natural
Gas
   
Total
   
Oil
   
Natural
Gas
   
Total
 
   
(Bbls)
   
(Mcf)
   
(Boe)
   
(Bbls)
   
(Mcf)
   
(Boe)
   
(Bbls)
   
(Mcf)
   
(Boe)
 
Total Proved Reserves:
                                                     
                                                                         
Balance, January 1, 2009
    110,879       388,595       175,645       -       -       -       110,879       388,595       175,645  
Discoveries and extensions
    415,547       1,363,810       642,849       12,166       4,016       12,835       427,713       1,367,826       655,684  
Production
    (7,905 )     (39,192 )     (14,437 )     (1,871 )     (485 )     (1,951 )     (9,776 )     (39,677 )     (16,388 )
                                                                         
Balance, December 31, 2009
    518,521       1,713,213       804,057       10,295       3,531       10,884       528,816       1,716,744       814,941  
Proved Developed Reserves:
                                                                       
                                                                         
January 1, 2009
    46,249       194,704       78,700       -       -       -       46,249       194,704       78,700  
                                                                         
December 31, 2009
    57,975       331,576       113,238       10,295       3,531       10,884       68,270       335,107       124,122  
Proved Undeveloped Reserves:
                                                                       
                                                                         
January 1, 2009
    64,630       193,891       96,945       -       -       -       64,630       193,891       96,945  
                                                                         
December 31, 2009
    460,546       1,381,637       690,819       -       -       -       460,546       1,381,637       690,819  
 
 
6

 
 
Notes to Unaudited Pro Forma Combined Financial Statements
September 30, 2010 and December 31, 2009
 
 Pro Forma Combined Standardized Measure of Discounted Future Net Cash Flows

The following table sets forth the standardized measure of discounted future net cash flows relating to the proved oil and natural gas reserves of ASEC and the Properties on a pro forma combined basis as of December 31, 2009:
                   
   
ASEC
Historical
   
The Properties
Historical
   
Pro Forma
Combined
 
                   
    Future production revenues
  $ 39,597,762     $ 538,176     $ 40,135,938  
Future production costs
    (18,576,078 )     (134,405 )     (18,710,483 )
Future development and abandonment costs
    (11,890,000 )     -       (11,890,000 )
Future income tax expense
    (3,048,345 )     (33,605 )     (3,081,950 )
10% annual discount factor
    (4,238,964 )     (148,021 )     (4,386,985 )
                         
Standardized measure of discounted future cash flows
  $ 1,844,375     $ 222,145     $ 2,066,520  
 
 Pro Forma Combined Changes in the Standardized Measure of Discounted Future Net Cash Flows

The following table sets forth the changes in the standardized measure of discounted future net cash flows relating to the proved oil and natural gas reserves of ASEC and the Properties on a pro forma combined basis for the year ended December 31, 2009:
                   
   
ASEC
Historical
   
The Properties
Historical
   
Pro Forma
Combined
 
Oil and gas producing activities:
                 
Extensions and discoveries
  $ -     $ 352,041     $ 352,041  
Net changes in prices and production costs
    (4,888,092 )     -       (4,888,092 )
Oil and gas sales, net of production costs
    (317,885 )     (96,291 )     (414,176 )
Changes in future development costs
    (8,889,048 )     -       (8,889,048 )
Previously projected development costs incurred
    1,546       -       1,546  
Revisions of previous quantity estimates
    15,803,564       -       15,803,564  
Accretion of discount
    71,180       -       71,180  
Changes in production rates, timing and other
    295,931       -       295,931  
Net change in present value of future income taxes
    (944,622 )     (33,605 )     (978,227 )
                         
  Net increase
    1,132,574       222,145       1,354,719  
Balance, beginning of year
    711,801       -       711,801  
                         
Balance, end of year
  $ 1,844,375     $ 222,145     $ 2,066,520  
 
 
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