Attached files
| file | filename |
|---|---|
| 8-K - Petron Energy II, Inc. | petron8k010312.htm |
| EX-10.11 - Petron Energy II, Inc. | ex10-11.htm |
| EX-99.1 - Petron Energy II, Inc. | ex99-1.htm |
| EX-99.2 - Petron Energy II, Inc. | ex99-2.htm |
Exhibit 99.3
Petron Energy II, Inc.
Unaudited Combined Pro Forma Financial Information
In August, 2011 Petron Energy II, Inc. (“Petron”) and Petron Energy Special Corp. (“Corp”) entered into an Asset Purchase Agreement whereby Petron would acquire all assets of Corp., and assume all of Corp’s liabilities. Mr. Floyd Smith was the majority shareholder, president and sole director of Petron and the majority shareholder and CEO of Corp. Due to the common control, the acquisition of the assets and assumption of debt is accounted for using Corp.’s historical basis of accounting. In December, 2011, pursuant to Nevada Revised Statues, Corp. was merged into Petron.
The unaudited combined pro forma balance sheet gives effect to the acquisition as if the transaction had taken place on September 30, 2011 and combines Petron’s unaudited balance sheet at August 31, 2011 and Corp.’s unaudited balance sheet at September 30, 2011. The combined pro forma statements of operations for Petron and Corp. for the year ended December 31, 2010 and the unaudited nine month period September 30, 2011 gives effect to the acquisition as if the transaction had taken place January 1, 2010 and 2011.
These pro forma financial statements are provided for illustrative purposes and do not purport to represent what the Company’s financial position would have been if such transactions had occurred on the above mentioned dates. These statements were prepared using accounting principles generally accepted in the United States. The use of estimates is required and actual results could differ from the estimates used. The Company believes the assumptions used provide a reasonable basis for presenting the significant effects directly attributable to the acquisition.
F-24
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PETRON ENERGY II, INC.
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Combined Pro Forma Balance Sheet
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(Unaudited)
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Petron Energy
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Petron Energy
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II, Inc.
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Special Corp
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August 31,
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September 30,
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Pro Forma
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Pro Forma
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2011
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2011
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Adjustments
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Combined
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ASSETS
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Current Assets
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Cash and Cash Equivalents
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$ | 249,107 | $ | 152,613 | $ | - | $ | 401,720 | ||||||||||||
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Accounts Receivable-oil & gas sales
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- | 14,520 | - | 14,520 | ||||||||||||||||
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Advances--Related Party
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156,900 | - | 166,737 | (3 | ) | 323,637 | ||||||||||||||
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Prepaid Expenses
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- | 4,151 | - | 4,151 | ||||||||||||||||
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Total Current Assets
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406,007 | 171,284 | 166,737 | 744,028 | ||||||||||||||||
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Investments in Pipeline
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- | 825,153 | 825,153 | |||||||||||||||||
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Producing Oil & Gas Properties
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673,310 | 808,998 | (376,660 | ) | (2 | ) | 1,105,648 | |||||||||||||
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Other Depreciable Equipment
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- | 46,860 | 46,860 | |||||||||||||||||
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Investment in common stock
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- | 296,650 | (296,650 | ) | (2 | ) | - | |||||||||||||
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Other Assets
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31,575 | - | 31,575 | |||||||||||||||||
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TOTAL ASSETS
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$ | 1,079,317 | $ | 2,180,520 | $ | (506,573 | ) | $ | 2,753,264 | |||||||||||
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LIABILITIES AND STOCKHOLDERS' EQUITY
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Current Liabilities
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Accounts Payable--Trade
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$ | 62,620 | $ | 295,811 | $ | - | $ | 358,431 | ||||||||||||
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Accounts Payable--Related Party
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- | 2,967 | - | 2,967 | ||||||||||||||||
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Related Party Payables
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131,912 | 138,747 | (270,659 | ) | (3 | ) | - | |||||||||||||
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Total Current Liabilities
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194,532 | 437,525 | (270,659 | ) | 361,398 | |||||||||||||||
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STOCKHOLDERS' EQUITY
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Petron Energy II, Inc.
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Preferred Stock, $0.01 par value, 10,000,000 shares authorized, 0 shares issued
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and outstanding at August 31, 2011
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- | - | - | - | ||||||||||||||||
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Series A Preferred Stock, $0.01 par value, 1,000 shares authorized, 1,000
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- | - | - | - | ||||||||||||||||
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shares issued and outstanding at August 31, 2011
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1 | - | - | 1 | ||||||||||||||||
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Common Stock, $0.01 par value, 1,000,000,000 shares authorized, 80,463,200
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- | - | - | |||||||||||||||||
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and 106,063,974 issued and outstanding at August 31, 2011 and September 30,
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80,463 | - | 25,601 | (4 | ) | 106,064 | ||||||||||||||
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2011, respectively
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Additional Paid-In Capital
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1,425,368 | - | 12,044,885 | (1 | ) | |||||||||||||||
| (673,310 | ) | (2 | ) | |||||||||||||||||
| 489,445 | (3 | ) | ||||||||||||||||||
| (25,601 | ) | (4 | ) | 13,260,787 | ||||||||||||||||
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Accumulated Deficit
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(621,047 | ) | - | (10,301,890 | ) | (1 | ) | |||||||||||||
| (52,049 | ) | (3 | ) | (10,974,986 | ) | |||||||||||||||
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Total Stockholders' Equity
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884,785 | - | 1,507,081 | 2,391,866 | ||||||||||||||||
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Petron Energy Special Corp.
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Preferred Stock, $0.01 par value, 15,000,000 shares authorized,
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none issued and outstanding
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- | - | - | - | ||||||||||||||||
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Series A Preferred Stock, $0.01 par value, 15,000,000 shares authorized,
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13,633,261 issued and outstanding
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- | 136,333 | (136,333 | ) | (1 | ) | - | |||||||||||||
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Common Stock, $0.01 par value, 500,000,000shares authorized,
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51,252,956 issued and outstanding
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- | 512,529 | (512,529 | ) | (1 | ) | - | |||||||||||||
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Additional Paid-In Capital
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- | 11,396,023 | (11,396,023 | ) | (1 | ) | - | |||||||||||||
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Accumulated Deficit
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- | (10,301,890 | ) | 10,301,890 | (1 | ) | - | |||||||||||||
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Total Stockholders' Equity
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1,742,995 | (1,742,995 | ) | - | ||||||||||||||||
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TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY
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$ | 1,079,317 | $ | 2,180,520 | $ | (506,573 | ) | $ | 2,753,264 | |||||||||||
F-25
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PETRON ENERGY II, INC.
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Combined Pro Forma Statement of Operations
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(Unaudited)
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Nine Months Ended
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Petron Energy
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Petron Energy
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II, Inc.
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Special Corp
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August 31,
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September 30,
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Pro Forma
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Pro Forma
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2011
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2011
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Adjustments
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Combined
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Revenue
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Oil & Gas Sales
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$ | - | $ | 85,862 | $ | - | $ | 85,862 | ||||||||
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Pipeline Revenue
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- | 3,642 | - | 3,642 | ||||||||||||
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Total Revenue
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89,504 | 89,504 | ||||||||||||||
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Costs and Expenses
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Cost of Revenue
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- | 203,391 | - | 203,391 | ||||||||||||
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Depletion, Depreciation and Amortization
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- | 70,600 | - | 70,600 | ||||||||||||
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General and Adminstrative
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499,549 | 1,749,984 | 52,049 | 2,301,582 | ||||||||||||
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Interest Expense
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1,328 | - | - | 1,328 | ||||||||||||
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Total Expenses
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500,877 | 2,023,975 | 52,049 | 2,576,901 | ||||||||||||
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Loss from Operations Before Income Taxes
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(500,877 | ) | (1,934,471 | ) | (52,049 | ) | (2,487,397 | ) | ||||||||
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Income Tax Benefit
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- | - | - | - | ||||||||||||
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Net Loss
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(500,877 | ) | (1,934,471 | ) | (52,049 | ) | (2,487,397 | ) | ||||||||
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Preferred Stock Dividends
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- | (875 | ) | - | (875 | ) | ||||||||||
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Net Loss Available to Common Stockholders
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$ | (500,877 | ) | $ | (1,935,346 | ) | $ | (52,049 | ) | $ | (2,488,272 | ) | ||||
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Loss per share--basic and diluted
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$ | (0.03 | ) | |||||||||||||
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Weighted average number of shares-basic and diluted
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91,942,000 | |||||||||||||||
F-26
Petron Energy II, Inc.
Notes to Unaudited Combined Pro Forma Financial Information
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(1)
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Entry to combine the shareholder equity accounts of Corp. with Petron.
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(2)
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Eliminate the issuance of 3,000,000 shares of Petron’s common stock issued to Corp. for oil and gas equipment.
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(3)
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In September 2011 Petron sold 9,946,233 shares of common stock for $596,783. The money was deposited in Corp.’s bank account and then Corp made certain expenditures on behalf of Petron.
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(4)
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The following summarizes the changes in the outstanding number of common shares of Petron:
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Petron’s outstanding common shares
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August 31, 2011
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80,463,200 | |||
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Issuances:
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Shares sold September, 2011
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9,946,233 | |||
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Shares issued to Corp.’s
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Shareholders
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78,654,541 | |||
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Reduction:
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Shares cancelled December, 2011
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(60,000,000 | ) | ||
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Shares issued in August 2011 to
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Corp. for oil and gas equipment
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(3,000,000 | ) | ||
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Pro Forma outstanding shares
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September 30, 2011
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106,063,974 | |||
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Par Value Per Share
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$ | X 0.001 | ||
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Pro Forma Par Value
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$ | 106,064 | ||
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Recorded Par Value
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(80,463 | ) | ||
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Change in Par Value
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$ | 25,601 |
F-27