Exhibit 99.1

 

UNITED STATES BANKRUPTCY COURT

DISTRICT OF DELAWARE

 

In re: EMERALD OIL, INC., et al.,	Case No. 16-10704
	Reporting Period: May 2016

 

MONTHLY OPERATING REPORT

File with Court and submit copy to United States Trustee within 20 days after end of month

 

Submit copy of report to any official committee appointed in the case.

 

				Document		Explanation		Affidavit/Supplement
REQUIRED DOCUMENTS		Form No.		Attached		Attached		Attached
Schedule of Cash Receipts and Disbursements		MOR-1		X
Bank Reconciliation (or copies of debtor's bank reconciliations)		MOR-1a		X
Schedule of Disbursements by Debtor Entity		MOR-1b		X
Schedule of Professional Fees and Expenses Paid		MOR-1c		X
Copies of bank statements		MOR-1d		X
Cash disbursements journals		MOR-1e		X
Statement of Operations		MOR-2		X
Balance Sheet as of Petition Date		MOR-3a		X
Balance Sheet as of Month End		MOR-3b		X
Status of Postpetition Taxes		MOR-4a		X
Copies of IRS Form 6123 or payment receipt						X
Copies of tax returns filed during reporting period						X
Summary of Unpaid Postpetition Debts		MOR-4b		X
Listing of aged accounts payable		MOR-4b		X
Accounts Receivable Reconciliation and Aging		MOR-5		X
Debtor Questionnaire		MOR-5		X

 

I declare under penalty of perjury (28 U.S.C. Section 1746) that this report and the attached documents are true and correct to the best of my knowledge and belief.

 

Emerald Oil, Inc

 

/s/ Emerald Oil, Inc.		June 29, 2016
Signature of Debtor		Date
Signature of Joint Debtor		Date
/s/ Ryan Smith		June 29, 2016
Signature of Authorized Individual*		Date
Ryan Smith		Chief Financial Officer
Printed Name of Authorized Individual		Title of Authorized Individual

 

*Authorized individual must be an officer, director or shareholder if debtor is a corporation; a partner if debtor is a partnership; a manager or member if debtor is a limited liability company.

 

MOR
(04/07)

 

 

In re: EMERALD OIL, INC., et al.,	Case No. 16-10704
Debtor	Reporting Period: May 2016

 

MOR – 1

Schedule of Cash Receipts and Disbursements (1)

For the Period May 1, 2016 through May 31, 2016

(Unaudited)

 

		Total Debtors
Beginning Cash		$	6,489,926
Receipts:
Gross Receipts (2)			88,569,030
Total Receipts			88,569,030
Disbursements (3):
Revolving Credit Facility (4)			80,000,000
Operating Expenses			1,521,987
Royalties			1,194,869
Payroll, Payroll Taxes and Benefits			425,840
Severance & Other Taxes			354,922
Professional Fees			436,060
Interest and Bank Fees			85,544
Total Disbursements			84,019,222
Net Cash Flow			4,549,807
Ending Cash Balance		$	11,039,733

 

Notes:

 

(1) This statement includes all entities controlled by the Debtors and therefore represents the consolidated financial results of Emerald Oil, Inc. Due to the consolidated cash management reporting system, certain cash payments may be paid out of a legal entity that is different than the legal entity where the expenses were incurred. Total disbursements by entity are provided in Schedule 1b.

 

(2) Gross Receipts include receipts of revenue from the production of oil, natural gas and NGLs, including revenue receipts on properties in which the Debtors have joint ownership. The operating receipts are presented on a gross basis, which includes third party revenue that is subsequently disbursed by the Company to the working interest owners for their portion of the revenue. For the month of May 2016, this also includes $80 million representing four (4) times the DIP Loan Amount as defined and provided for in the Final Agreed Order Authorizing Limited Use of Cash Collateral, Obtaining Post-Petition Credit Secured by Senior Liens, Granting Adequate Protection To Existing Lienholders and Granting Related Relief (Docket No. 287).

 

(3) Disbursements are presented on a gross basis and include outstanding post-petition checks from operating accounts as of the reporting date.

 

(4) Represents four (4) times the DIP Loan Amount as defined and provided for in the Final Agreed Order Authorizing Limited Use of Cash Collateral, Obtaining Post-Petition Credit Secured by Senior Liens, Granting Adequate Protection To Existing Lienholders and Granting Related Relief (Docket No. 287)

 

 

In re: EMERALD OIL, INC., et al.,	Case No. 16-10704
Debtor	Reporting Period: May 2016

 

MOR-1a

Debtors Statement with respect to Bank Account Reconciliations, Bank Statements and Cash Disbursements Journal

For the Period May 1, 2016 through May 31, 2016

(Unaudited)

 

Bank Account Reconciliations and Cash Disbursements

The Debtors affirm that bank reconciliations are prepared for all open and active bank accounts on a monthly basis. The Debtors affirm that within its financial accounting systems, check registers and/or disbursement journals are maintained for each disbursement account.

 

Bank Statements

The Debtors affirm that bank statements for all open and active bank accounts are retained by the Debtors. The Debtors affirm that no bank accounts were closed during the current reporting period.

 

		16-10704				16-10708				16-10704				16-10704				16-10704
Debtor		Emerald Oil, Inc.				EOX Marketing, LLC				Emerald Oil, Inc.				Emerald Oil, Inc.				Emerald Oil, Inc.
Type		Operating				Operating				Utility				Employee Medical Claims				Professional Fees
Account Number (last 4 digits only)		#	0166			#	0112			#	4612			#	6810			#	7214
Balance Per Books		$	5,632,810			$	2,628,223			$	4,317			$	44,940			$	2,729,443
Bank Balance		$	7,001,348			$	2,628,223			$	4,317			$	44,940			$	2,729,443
(+) Deposits in transit (attach list)			-				-				-				-				-
(-)  Outstanding checks (attach list)			1,368,538				-				-				-				-
Other  (attach explanation)			-				-				-				-				-
Adjusted Bank Balance*		$	5,632,810			$	2,628,223			$	4,317			$	44,940			$	2,729,443

* Adjusted bank balance must equal balance per books

 

Checks Outstanding		Ck. #				Amount
			212535				120.83
			212594				491.66
			112733				30.00
			212985				167.89
			213088				516.20
			213191				177.95
			213195				147.34
			213206				194.56
			213374				233.04
			213386				1,938.81
			213546				394.82
			213596				783.68
			213604				1,035.51
			112852				60.72
			112888				235.01
			112894				118.92
			213769				263.44
			213779				4,946.61
			213790				642.25
			213810				3,382.27
			213823				118.33
			213824				121.70
			213852				114.42
			213869				150.53
			213893				159.73
			213894				159.73
			213896				473.85
			213935				5,107.83
			213936				1,702.62
			213952				473.28
			213981				187.26
			213983				4,219.31
			213985				168.02
			213990				221.86
			213991				203.44
			214012				109.78
			214013				132.13
			214052				447.93

 

FORM MOR-1a
(04/07)

 

 

Checks Outstanding		Ck. #				Amount
			214055				1,791.59
			214080				152.17
			214081				197.47
			214114				5,580.13
			214120				137.57
			214128				937.39
			214160				396.27
			112916				193.23
			112922				7,187.00
			112946				5,788.50
			112956				3,250.00
			112962				156.39
			112963				92,501.73
			112980				14,412.50
			112981				487.06
			112982				3,197.65
			112986				151.27
			112987				187.79
			112989				15,964.04
			112991				82,328.27
			112992				79.21
			112997				3,086.49
			112998				68.00
			112999				35.79
			113002				12,036.00
			113003				20,141.00
			113004				8,255.00
			113005				10,418.50
			113007				24,875.15
			113008				720.00
			5072				198.46
			214183				10,714.82
			214184				18,242.40
			214185				514.64
			214186				119.69
			214187				5,686.39
			214188				496.14
			214189				359.71
			214190				364.18
			214191				3,134.53
			214192				5,686.07
			214193				348.30
			214194				111.67
			214195				109.93
			214196				269,041.38
			214197				224.23
			214198				317.86
			214199				298.41
			214200				3,606.13
			214201				1,217.61
			214202				118.23
			214203				131.29
			214204				9,603.58
			214205				4,139.10
			214206				290.57
			214207				732.74
			214208				5,088.68
			214209				1,585.76
			214210				638.88
			214211				11,498.46
			214212				4,871.66
			214213				223.65
			214214				785.03
			214215				785.03
			214216				1,707.72
			214217				467.72
			214218				177.81
			214219				355.63
			214220				570.63
			214221				44,247.33
			214222				3,449.42

 

FORM MOR-1a
(04/07)

 

 

Checks Outstanding		Ck. #				Amount
			214223				4,139.31
			214224				7,286.49
			214225				2,982.66
			214226				6,181.41
			214227				86,903.73
			214228				12,668.95
			214229				1,100.90
			214230				296.60
			214231				288.15
			214232				1,700.56
			214233				141.12
			214234				12,517.75
			214236				955.46
			214237				107.22
			214238				103.81
			214239				103.81
			214240				9,990.06
			214241				3,148.09
			214242				4,349.04
			214243				4,960.28
			214244				7,611.24
			214245				957.99
			214246				132.03
			214247				100.97
			214248				1,344.91
			214249				906.97
			214250				111.18
			214251				576.08
			214252				8,954.30
			214253				274.77
			214254				3,084.08
			214255				189.52
			214256				180.34
			214257				4,127.77
			214258				486.07
			214259				151.16
			214260				1,732.31
			214261				113.76
			214262				1,349.90
			214263				118.23
			214264				405.66
			214265				6,335.29
			214266				879.30
			214267				1,277.84
			214268				1,142.21
			214269				151.16
			214270				786.88
			214271				122.17
			214272				1,094.37
			214273				183.26
			214274				886.74
			214275				1,094.37
			214276				4,540.05
			214277				100.87
			214278				4,710.16
			214279				2,807.14
			214280				949.27
			214281				274.77
			214282				277.42
			214283				118.23
			214284				2,548.28
			214285				104.07
			214286				277.42
			214287				115.84
			214288				225.94
			214289				4,994.87
			214290				109.52
			214291				226.91
			214292				103.02
			214293				993.21
			214294				129.13

 

FORM MOR-1a
(04/07)

 

 

Checks Outstanding		Ck. #				Amount
			214295				274.77
			214296				234.50
			214297				304.36
			214298				1,274.11
			214299				2,473.02
			214300				172.25
			214301				131.28
			214302				131.29
			214303				111.11
			214304				416.54
			214305				6,258.91
			214306				1,493.51
			214307				1,493.51
			214308				464.78
			214309				720.93
			214310				495.26
			214311				348.39
			214312				495.26
			214313				348.39
			214314				1,134.52
			214315				49,650.58
			214316				2,956.70
			214317				100.51
			214318				1,376.36
			214319				3,318.35
			214320				3,208.27
			214321				3,120.75
			214322				957.99
			214323				1,046.67
			214324				1,048.20
			214325				8,272.57
			214326				3,606.01
			214327				3,606.01
			214328				3,606.01
			214329				331.14
			214330				2,349.12
			214331				1,068.27
			214332				866.02
			214333				866.02
			214334				581.14
			214335				556.77
			214336				556.77
			214337				562.59
			214338				556.77
			214339				562.59
			214340				556.77
			214341				3,638.62
			214342				1,212.87
			214343				1,212.87
			214344				1,252.86
			214345				2,290.88
			214346				1,565.23
			214347				759.61
			214348				953.31
			214349				390.80
			214350				231.08
			214351				141.70
			214352				274.77
			214353				264.38
			214354				329.78
			214355				274.77
			214356				329.78
			214357				390.80
			214358				462.17
			214359				183.20
			214360				154.62
			214361				274.77
			214362				2,344.78
			214363				183.20
			214364				390.80
			214365				109.34

 

FORM MOR-1a
(04/07)

 

 

Checks Outstanding		Ck. #				Amount
			214366				183.20
			214367				183.20
			214368				599.50
			214369				390.80
			214370				231.08
			214371				1,172.39
			214372				390.80
			214373				107.87
			214374				599.50
			214375				390.80
			214376				149.90
			214377				183.20
			214378				274.77
			214379				3,483.93
			214380				154.62
			214381				100.39
			214382				183.20
			214383				3,483.93
			214384				618.37
			214385				390.80
			214386				183.20
			214387				594.55
			214388				145.63
			214389				183.20
			214390				390.80
			214391				2,322.61
			214392				188.97
			214393				100.39
			214394				2,930.96
			214395				188.97
			214396				183.20
			214397				274.77
			214398				183.20
			214399				390.80
			214400				149.90
			214401				183.20
			214402				2,322.61
			214403				113.87
			214404				382.41
			214405				394.35
			214406				147.83
			214407				814.53
			214408				788.59
			214409				147.83
			214410				263.34
			214411				147.83
			214412				764.91
			214413				576.20
			214414				9,764.51
			214415				4,705.81
			214416				10,948.04
			214417				382.41
			214418				394.35
			214419				764.92
			214420				764.91
			214421				263.34
			214422				147.83
			214423				197.14
			214424				394.35
			214425				255.00
			214426				1,235.81
			214427				364.01
			214428				1,411.21
			214429				360.53
			214430				549.17
			214431				492.24
			214432				113.91
			214433				492.24
			214434				113.91
			214435				369.24
			214436				492.24

 

FORM MOR-1a
(04/07)

 

 

 

Checks Outstanding		Ck. #				Amount
			214437				1,476.83
			214438				1,476.83
			214439				369.24
			214440				369.24
			214441				1,476.83
			214442				1,240.37
			214443				369.24
			214445				106.36
			214446				9,906.77
			214447				141.39
			214448				139.78
			214449				764.92
			214450				788.59
			214451				2,300.81
			214452				133.76
			214453				203.75
			214454				259.29
			214455				1,902.73
			214456				1,902.73
			214457				1,268.50
			214458				1,268.50
			214459				1,268.50
			214460				3,805.44
			214461				129.75
			214462				2,508.44
			214463				392.26
			214464				494.04
			214465				1,394.37
			214466				160.73
			214467				1,394.37
			214468				1,004.23
			214469				348.29
			214470				137.91
			214471				1,004.23
			214472				219.86
			214473				213.16
			214474				219.86
			214475				162.13
			214476				1,281.11
			214477				549.60
			214478				12,277.66
			214479				158.92
			214480				191.18
			214481				191.18
			214482				191.18
			214483				191.18
			214484				1,013.88
			214485				1,034.61
			214486				299.76
			214487				299.76
			214488				2,147.21
			214489				2,083.19
			214490				3,879.66
			214491				512.75
			214492				25,727.67
			214493				6,419.19
			214494				6,419.17
			214495				109.20
			214496				2,806.38
			214497				7,691.22
			214498				802.00
			214499				1,856.05
			214500				420.21
			214501				3,691.08
			214502				295.16
			214503				98.38
			214504				98.18
			214505				98.18
			214506				98.18
			214507				37.03
			214508				103.56

 

FORM MOR-1a
(04/07)

 

 

Checks Outstanding		Ck. #				Amount
			214509				103.56
			214510				450.58
			214511				4,710.16
			214512				1,529.57
			214513				355.58
			214514				193.94
			214515				133.28
			214516				359.71
			214517				187.35
			214518				2,921.39
			214519				103.56
			214520				949.28
			214521				124.01
			214522				422.32
			214523				120.26
			214524				2,322.61
			214525				714.89
			214526				540.64
			214527				347.15
			214528				347.15
			214529				802.00
			214530				347.15
			214531				791.11
			214532				131.70
			214533				540.64
			214534				527.39
			214535				131.70
			214536				527.39
			214537				145.85
			214538				500.59
			214539				145.85
			214540				131.70
			214541				131.70
			214542				2,461.18
			214543				221.69
			214544				221.69
			214545				2,115.21
			214546				574.72
			214547				574.72
			214548				574.72
			214549				574.72
			214550				7,056.46
			214551				1,122.02
			214552				243.25
			214553				512.75
			214554				412.30
			214555				412.30
			214556				432.43
			214557				412.30
			214558				214.32
			214559				214.32
			214560				214.32
			214561				267.93
			214562				267.93
			214563				267.93
			214564				267.89
			214565				229.65
			214566				137.43
			214567				137.43
			214568				137.43
			214569				160.99
			214570				1,349.90
			214571				183.57
			214572				382.41
			214573				382.41
			214574				348.30
			214575				666.38
			214576				344.80
			214577				1,585.76
			214578				911.97
			214579				2,147.21

 

FORM MOR-1a
(04/07)

 

 

Checks Outstanding		Ck. #				Amount
			214580				4,391.51
			214581				111.93
			214582				107.81
			214583				390.73
			214584				125.93
			214585				125.92
			214586				125.93
			214587				146.55
			214588				1,107.25
			214589				228.96
			214590				229.44
			214591				100.43
			214592				100.38
							1,368,537.86

 

FORM MOR-1a
(04/07)

 

 

In re: EMERALD OIL, INC., et al.,	Case No. 16-10704
Debtor	Reporting Period: May 2016

 

MOR - 1b

Schedule of Disbursements by Debtor Entity

For the Period May 1, 2016 through May 31, 2016

Unaudited

 

						Allocation
		Total Disbursements				Emerald Oil, Inc.				Emerald DB, LLC				Emerald NWB, LLC				Emerald WB, LLC				EOX Marketing, LLC				On Behalf of 3rd Parties
						16-10704				16-10705				16-10706				16-10707				16-10708
Revolving Credit Facility		$	80,000,000	(1)		$	80,000,000			$	-			$	-			$	-			$	-			$	-
Trade			1,449,658	(2)			117,283				-				596,848				326,009				8,080				401,438
Severance Taxes			354,922	(2)			-				-				159,960				87,373				-				107,589
Royalties and other WI			1,194,869				-				-				-				-				-				1,194,869
Payroll, Payroll Taxes and Benefits			425,840	(3)			425,840				-				-				-				-				-
Rent & Utilities			-	(4)			-				-				-				-				-				-
Other			72,329	(5)			24,437				-				18,224				29,668				-				-
Professional fees			436,060	(6)			436,060				-				-				-				-				-
Interest and Bank Fees			85,544	(7)			84,610				-				-				-				934				-
Total:		$	84,019,222			$	81,088,230			$	-			$	775,032			$	443,050			$	9,014			$	1,703,896

 

Notes:

 

(1) Debtor in possession financing agreement was entered into by Emerald Oil, Inc.

 

(2) Allocated to the Debtors based on the estimate ownership of the underlying working interest in the properties.

 

(3) All individuals employed by Emerald Oil, Inc.

 

(4) Corporate office lease of Emerald Oil, Inc.

 

(5) "Other" represents Insurance, which includes general commercial liability, workers’ compensation and employee benefits, allocated to Emerald Oil, Inc. as the covered items are directly related to the debtor entity and Control of Well/Operator's Extra Expense, allocated based on percentage of active wells.

 

(6) Debtor Professionals employed by Emerald Oil, Inc.

 

(7) Revolving Credit Agreement and related fees/interest was entered into by Emerald Oil, Inc.

 

FORM MOR-1b

(04/07)

 

 

In re: EMERALD OIL, INC., et al.,	Case No. 16-10704
Debtor	Reporting Period: May 2016

 

MOR - 1c

Schedule of Professional Fees and Expenses Paid (1)

For the Period May 1, 2016 through May 31, 2016

(Unaudited)

 

										Check						Amount Paid
Payee		Period Covered		Amount Approved				Payor		Number				Date		Fees				Expenses
Debtor Bankruptcy Professionals
Kirkland & Ellis LLP					-												-				-
Donlin Rencano & Company (Notice)		3/15/2016 to 3/31/2016			92,502			Emerald Oil, Inc.			112963			5/19/2016			75,672				16,830
Donlin Rencano & Company (Admin)					-												-				-
Intrepid Financial Partners, LLC					-												-				-
Opportune LLP (2)		Retainer			161,513			Emerald Oil, Inc.			Wire			5/25/2016			161,513				-
Pachulski Stang Ziehl &Jones LLP					-												-				-
BDO LLP					-												-				-
Debtor Ordinary Course Professionals					-												-				-
EKS&H LLP					-												-				-
Fredrickson & Byron, P.A.					-												-				-
Vogel Law Firm					-												-				-
Husch Blackwell LLP					-												-				-
Taylor Anderson LLP					-												-				-
Mayer Brown LLP					-												-				-
Lender Professionals
Luskin, Stern & Eisler LLP		3/22/2016 to 3/31/2016			4,903			Emerald Oil, Inc.			112965			5/19/2016			4,885				18
Vinson & Elkins LLP		3/22/2016 to 3/31/2016			81,116			Emerald Oil, Inc.			Various			5/19/2016			77,632				3,484
Womble Carlyle Sandridge & Rice, LLP					-												-				-
FTI Consulting, Inc.		3/22/2016 to 04/30/2016			96,026			Emerald Oil, Inc.			Wire			Various			95,960				66
UCC Professionals
Akin Gump Strauss Hauer & Feld LLP					-												-				-
Whiteford, Taylor & Preston LLC					-												-				-
Houlihan Lokey, Inc.					-												-				-
		Total:			436,060												415,662				20,398

 

Notes:

(1) Professional payments listed herein include payments made by the Debtors to retained professionals.

 

(2) The amount paid to Opportune LLP in May represents an increase in the retainer, authorized by the Order Authorizing (I) the Debtors to Employ and Retain (A) Opportune LLP as Crisis Managers and (B) Wade Stubblefield as Chief Restructuring Officer and Certain Additonal Personnel, in Each Instance Nunc Pro Tunc to the Petition Date and (II) Granting Related Relief (Docket No. 302).

 

FORM MOR-1b

(04/07)

 

 

In re: EMERALD OIL, INC., et al.,	Case No. 16-10704
Debtor	Reporting Period: May 2016

 

MOR – 2

Debtor Statement of Operations (1) (2)

For the Period May 1, 2016 through May 31, 2016

(Unaudited)

 

		Case #				16-10704				16-10707				16-10706				16-10705				16-10708
		Debtors (3):				Emerald Oil, Inc.				Emerald WB, LLC				Emerald NWB, LLC				Emerald DB, LLC				EOX Marketing, LLC				Eliminations (5)				Total Debtors
										(4)				(4)
REVENUES, NET OF TRANSPORTATION EXPENSES
Oil Sales						$	-			$	3,790,306			$	-			$	-			$	5,716,012			$	(5,716,012	)		$	3,790,306
Natural Gas Sales							-				(74,702	)			-				-				-				-				(74,702	)
							-				3,715,604				-				-				5,716,012				(5,716,012	)			3,715,604
OPERATING EXPENSES
Cost of Sales							-				-				-				-				5,588,495				(5,588,495	)			-
Production Expenses							-				1,755,185				-				-				-				-				1,755,185
Production Taxes							-				389,482				-				-				-				-				389,482
General and Administrative Expenses							765,609				-				-				-				-				-				765,609
Depletion of Oil and Natural Gas Properties							-				1,488,306				-				-				-				-				1,488,306
Depreciation and Amortization							138,388				-				-				-				-				-				138,388
Total Expenses							903,997				3,632,973				-				-				5,588,495				(5,588,495	)			4,536,970
INCOME (LOSS) FROM OPERATIONS							(903,997	)			82,631												127,517				(127,517	)			(821,366	)
OTHER INCOME (EXPENSE)
Interest Expense							(830,361	)			-				-				-				-				-				(830,361	)
Reorganization Items							(1,779,920	)			-				-				-				-				-				(1,779,920	)
Total Other Expense, Net							(2,610,281	)			-				-				-				-				-				(2,610,281	)
INCOME BEFORE INCOME TAXES							(3,514,278	)			82,631				-				-				127,517				(127,517	)			(3,431,647	)
INCOME TAX BENEFIT							-				-				-				-				-				-				-
NET LOSS						$	(3,514,278	)		$	82,631			$	-			$	-			$	127,517			$	(127,517	)		$	(3,431,647	)

 

Notes:

 

(1) The information contained herein is provided to fulfill the requirements of the Office of the United States Trustee, and is unaudited and subject to future adjustment. Certain totals may not sum due to rounding.

 

(2) The Statement of Operations is prepared on an accrual basis. The accrual basis of accounting recognizes revenue when it is realized and expenses when they are incurred, regardless of when cash is actually received or paid.

 

(3) This statement includes all entities controlled by the Debtors and therefore represents the consolidated financial results of Emerald Oil, Inc.

 

(4) Although title ownership in oil and gas properties is owned by both Emerald WB, LLC (16-10707) and Emerald NWB, LLC (16-10706), the Company has not historically accounted for these interests separately and, instead, have reflected all of their oil and gas activities within Emerald WB, LLC (16-10707).

 

(5) The crude oil purchases by EOX Marketing, LLC, from Emerald Oil, Inc., are eliminated for consolidation purposes.

 

 

In re: EMERALD OIL, INC., et al.,	Case No. 16-10704
Debtor	Reporting Period: May 2016

 

MOR - 3a

Debtor Balance Sheets (1)

As of the Petition Date (2)

(Unaudited)

 

		Case #				16-10704				16-10707				16-10706				16-10705				16-10708
		Debtors (3):				Emerald Oil, Inc.				Emerald WB, LLC (4)				Emerald NWB, LLC (4)				Emerald DB, LLC				EOX Marketing, LLC				Eliminations (8)				Total Debtors
ASSETS
CURRENT ASSETS
Cash and Cash Equivalents						$	435,528			$	-			$	-			$	-			$	3,100,307			$	-			$	3,535,835
Accounts Receivable — Oil and Natural Gas Sales							1,957,354				-				-				-				-				-				1,957,354
Accounts Receivable — Joint Interest Partners							5,852,643				-				-				-				-				-				5,852,643
Other Receivables							700,705				-				-				-				31,871				-				732,576
Intercompany Receivable							3,018,861				-				-				-				-				(3,018,861	)			-
Prepaid Expenses and Other Current Assets							1,734,745				-				-				-				-				-				1,734,745
Total Current Assets							13,699,836				-				-				-				3,132,178				(3,018,861	)			13,813,153
PROPERTY AND EQUIPMENT
Oil and Natural Gas Properties, Full Cost Method
Proved Oil and Natural Gas Properties							-				733,069,244				-				-				-				-				733,069,244
Unproved Oil and Natural Gas Properties							-				79,272,070				-				-				-				-				79,272,070
Equipment and Facilities							987,311				14,552,936				-				-				-				-				15,540,247
Other Property and Equipment							3,483,025				-				-				-				-				-				3,483,025
Total Property and Equipment							4,470,336				826,894,250				-				-				-								831,364,586
Less - Accumulated Depreciation, Depletion and Amortization							(1,406,996	)			(588,210,892	)			-				-				-				-				(589,617,888	)
Total Property and Equipment, Net							3,063,340				238,683,358				-				-				-								241,746,698
Debt Issuance Costs, Net of Amortization							2,697,568				-				-				-				-				-				2,697,568
Deferred Tax Asset, net							1,813,561				-				-				-				-				-				1,813,561
Other Non-Current Assets							290,084				-				-				-				-				-				290,084
Total Assets						$	21,564,389			$	238,683,358			$	-			$	-			$	3,132,178			$	(3,018,861	)		$	260,361,064
LIABILITIES AND STOCKHOLDERS' EQUITY
LIABILITIES SUBJECT TO COMPROMISE (Pre-petition)
Intercompany Payables						$	-			$	-			$	-			$	-			$	3,018,861			$	(3,018,861	)		$	-
Account Payable							42,542,980				-				-				-				29,673				-				42,572,653
Accrued Expenses							5,473,146				-				-				-				264,138				-				5,737,284
Priority Debt (5)							-				-				-				-				-				-				-
Revolving Credit Facility							111,678,151				-				-				-				-				-				111,678,151
Convertible Senior Notes							148,500,000				-				-				-				-				-				148,500,000
Advances from Joint Interest Partners							726,710				-				-				-				-				-				726,710
Asset Retirement Obligations							4,582,522				-				-				-				-				-				4,582,522
Warrant Liability							94,000				-				-				-				-				-				94,000
Deferred Tax Liability, net							1,813,561				-				-				-				-				-				1,813,561
Total Liabilities Subject to Compromise							315,411,070				-				-				-				3,312,672				(3,018,861	)			315,704,881
Series B Voting Preferred Stock (6)							256				-				-				-				-				-				256
STOCKHOLDERS' EQUITY
Common Stock (7)							9,583				-				-				-				-				-				9,583
Additional Paid-In Capital							273,945,998				238,683,358				-				-				-				-				512,629,356
Accumulated Deficit							(567,802,519	)			-				-				-				(180,493	)			-				(567,983,012	)
Total Stockholders' Equity							(293,846,938	)			238,683,358				-				-				(180,493	)			-				(55,344,073	)
Total Liabilities and Stockholders' Equity						$	21,564,389			$	238,683,358			$	-			$	-			$	3,132,178			$	(3,018,861	)		$	260,361,064

 

 

In re: EMERALD OIL, INC., et al.,	Case No. 16-10704
Debtor	Reporting Period: May 2016

 

MOR - 3a

Debtor Balance Sheets (1)

As of the Petition Date (2)

(Unaudited)

 

Notes:

 

(1) The information contained herein is provided to fulfill the requirements of the Office of the United States Trustee, and is unaudited and subject to future adjustment. Certain totals may not sum due to rounding.

 

(2) The petition date was March 22, 2016.

 

(3) This statement includes all entities controlled by the Debtors and therefore represents the consolidated financial results of Emerald Oil, Inc.

 

(4) Although title ownership in oil and gas properties is owned by both Emerald WB, LLC (16-10707) and Emerald NWB, LLC (16-10706), the Company has not historically accounted for these interests separately and, instead, have reflected all of their oil and gas activities within Emerald WB, LLC (16-10707).

 

(5) While the amount of priority debt as of the petition date is zero, this does not reflect potential liabilities. The amount of these potential liabilities are unknown at this time.

 

(6) 255,732 shares issued and outstanding with a liquidation preference value of $256 as of the petition date.

 

(7) Par Value $.001, 500,000,000 shares authorized, 9,582,970 shares issued and outstanding.

 

(8) Intercompany balances between EOX Marketing, LLC and Emerald Oil, Inc., are eliminated for consolidation purposes.

 

 

In re: EMERALD OIL, INC., et al.,	Case No. 16-10704
Debtor	Reporting Period: May 2016

 

MOR - 3b

Debtor Balance Sheets (1)

As of May 31, 2016

(Unaudited)

 

		Case #				16-10704				16-10707				16-10706				16-10705				16-10708
		Debtors (2):				Emerald Oil, Inc.				Emerald WB, LLC (3)				Emerald NWB, LLC (3)				Emerald DB, LLC				EOX Marketing, LLC				Eliminations (7)				Total Debtors
ASSETS
CURRENT ASSETS
Cash and Cash Equivalents						$	8,411,510			$	-			$	-			$	-			$	2,628,223			$	-			$	11,039,733
Accounts Receivable — Oil and Natural Gas Sales							4,548,810				-				-				-				-				-				4,548,810
Accounts Receivable — Joint Interest Partners							5,225,288				-				-				-				-				-				5,225,288
Other Receivables							1,382,778				-				-				-				33,852				-				1,416,630
Intercompany Receivables							2,529,657				-				-				-				-				(2,529,657	)			-
Prepaid Expenses and Other Current Assets							1,577,925				-				-				-				-				-				1,577,925
Total Current Assets							23,675,968				-				-				-				2,662,075				(2,529,657	)			23,808,386
PROPERTY AND EQUIPMENT
Oil and Natural Gas Properties, Full Cost Method
Proved Oil and Natural Gas Properties							-				780,323,736				-				-				-				-				780,323,736
Unproved Oil and Natural Gas Properties							-				32,095,491				-				-				-				-				32,095,491
Equipment and Facilities							987,311				14,429,022				-				-				-				-				15,416,333
Other Property and Equipment							3,483,025				-				-				-				-				-				3,483,025
Total Property and Equipment							4,470,336				826,848,249				-				-				-								831,318,585
Less - Accumulated Depreciation, Depletion and Amortization							(1,566,057	)			(666,129,605	)			-				-				-				-				(667,695,662	)
Total Property and Equipment, Net							2,904,279				160,718,644				-				-				-								163,622,923
Debt Issuance Costs, Net of Amortization							3,556,300				-				-				-				-				-				3,556,300
Deferred Tax Asset, net							1,813,561				-				-				-				-				-				1,813,561
Other Non-Current Assets							512,236				-				-				-				-				-				512,236
Total Assets						$	32,462,344			$	160,718,644			$	-			$	-			$	2,662,075			$	(2,529,657	)		$	193,313,406
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES
Accounts Payable						$	3,800,914			$	-			$	-			$	-			$	-			$	-			$	3,800,914
Debtor-in-possession financing							90,500,000				-				-				-				-				-				90,500,000
Accrued Expenses							-				-				-				-				549,616				-				549,616
Professional Fees							4,839,079				-				-				-				-				-				4,839,079
Total Current Liabilities							99,139,993				-				-				-				549,616				-				99,689,609
LIABILITIES SUBJECT TO COMPROMISE (Pre-petition)
Intercompany Payable							-				-				-				-				2,529,657				(2,529,657	)			-
Account Payable							41,241,150				-				-				-				29,673				-				41,270,823
Accrued Expenses							6,089,205				-				-				-				-				-				6,089,205
Priority Debt (4)							-				-				-				-				-				-				-
Revolving Credit Facility							31,678,151				-				-				-				-				-				31,678,151
Convertible Senior Notes							148,500,000				-				-				-				-				-				148,500,000
Advances from Joint Interest Partners							716,383				-				-				-				-				-				716,383
Asset Retirement Obligations							4,589,489				-				-				-				-				-				4,589,489
Warrant Liability							4,000				-				-				-				-				-				4,000
Deferred Tax Liability, net							1,813,561				-				-				-				-				-				1,813,561
Total Liabilities Subject to Compromise							234,631,939				-				-				-				2,559,329				(2,529,657	)			234,661,612
Total Liabilities							333,771,932				-				-				-				3,108,945				(2,529,657	)			334,351,221
Series B Voting Preferred Stock (6)							256				-				-				-				-				-				256
STOCKHOLDERS' EQUITY
Common Stock (6)							9,583				-				-				-				-				-				9,583
Additional Paid-In Capital							351,958,345				160,718,644				-				-				-				-				512,676,989
Accumulated Deficit							(653,277,772	)			-				-				-				(446,870	)			-				(653,724,642	)
Total Stockholders' Equity							(301,309,844	)			160,718,644				-				-				(446,870	)			-				(141,038,070	)
Total Liabilities and Stockholders' Equity						$	32,462,344			$	160,718,644			$	-			$	-			$	2,662,075			$	(2,529,657	)		$	193,313,406

 

 

 Notes:

 

(1) The information contained herein is provided to fulfill the requirements of the Office of the United States Trustee, and is unaudited and subject to future adjustment. Certain totals may not sum due to rounding.

 

2) This statement includes all entities controlled by the Debtors and therefore represents the consolidated financial results of Emerald Oil, Inc.

 

(3) Although title ownership in oil and gas properties is owned by both Emerald WB, LLC (16-10707) and Emerald NWB, LLC (16-10706), the Company has not historically accounted for these interests separately and, instead, have reflected all of their oil and gas activities within Emerald WB, LLC (16-10707).

 

(4) This does not reflect potential liabilities. The amount of potential liabilities are unknown at this time.

 

(5) 255,732 issued and outstanding with a liquidation preference value of $256 as of the petition date.

 

(6) Par Value $.001, 500,000,000 shares authorized, 9,582,970 shares issued and outstanding.

 

(7) Oil Sales of EOX Marketing, LLC on behalf of Emerald Oil, Inc. and associated intercompany balances are eliminated for consolidation purposes.

 

 

In re: EMERALD OIL, INC., et al.,	Case No. 16-10704
Debtor	Reporting Period: May 2016

 

MOR - 4a

Status of Post-Petition Taxes (1)

As of May 31, 2016

Unaudited

 

		Beginning Tax Liability				Amount Withheld or Accrued				Amount Paid				Date Paid		Check No. or EFT		Ending Tax Liability
Federal
Withholding		$	-			$	67,811			$	(67,811	)		Various		Various		$	-
FICA-Employee			-				18,632				(18,632	)		Various		Various			-
FICA-Employer			-				17,678				(17,678	)		Various		Various			-
Unemployment			-				-				-								-
Income			-				-				-								-
Other			-				-				-								-
Total Federal Taxes		$	-			$	104,121			$	(104,121	)						$	-
State and Local
Withholding			-				13,607				(13,607	)		Various		Various			-
Sales			-				-				-								-
Excise			-				-				-								-
Unemployment			-				2				(2	)		Various		Various			-
Real Property			-				-				-								-
Personal Property			-				-				-								-
Other (2)			354,922				549,616				(354,922	)		5/24/2016		00365			549,616
Total State and Local		$	354,922			$	563,225			$	(368,531	)						$	549,616
Total Taxes		$	354,922			$	667,346			$	(472,652	)						$	549,616

 

Notes:

 

(1) No tax returns including IRS Form 6123 were filed during the reporting period.

 

(2) Severance and extraction taxes are paid on a monthly basis to the respective state in which our producing oil and gas properties are located. The amount represents the estimated portion of gross state taxes (including those remitted on behalf of third parties) to the Company that have accrued since the petition date.

 

FORM MOR-4

(04/07)

 

 

In re: EMERALD OIL, INC., et al.,	Case No. 16-10704
Debtor	Reporting Period: May 2016

 

MOR - 4b

Summary of Unpaid Post-Petition Debts (1)

As of May 31, 2016

Unaudited

 

		Days Aged
		Current				0-30				31-60				61-90				Over 90				Total
Trade Payable		$	3,410,628			$	287,515			$	28,154			$	-			$	-			$	3,726,296
Wages Payable			-				-				-				-				-				-
Taxes Payable (2)			549,616				-				-				-				-				549,616
Rent/Leases-Building			66,585				-				-				-				-				66,585
Rent/Leases-Equipment			5,347				1,297				-				-				-				6,645
Secured Debt/Adequate Protection Payments			-				-				-				-				-				-
Professional Fees			1,939,721				2,779,749				119,609				-				-				4,839,079
Amounts Due to Insiders*			1,388				-				-				-				-				1,388
Other			-				-				-				-				-				-
Total Postpetition Debts		$	5,973,285			$	3,068,561			$	147,763			$	-			$	-			$	9,189,609
Percentage of Total			65	%			33	%			2	%			0	%			0	%

 

Notes:

 

(1) The post petition accounts payable reported represents open and outstanding trade vendor invoices that have been entered into the Debtor's accounts payable system. This summary includes accruals for invoices not yet received and for invoices not yet entered into the Debtor's accounts payable system.

 

(2) Severance and extraction taxes are paid on a monthly basis to the respective state in which our producing oil and gas properties are located. The amount represents the estimated portion of gross state taxes (including those remitted on behalf of third parties) to the Company that have accrued since the petition date.

 

 

In re: EMERALD OIL, INC., et al.,	Case No. 16-10704
Debtor	Reporting Period: May 2016

 

MOR - 5

Debtors Account Receivable Reconciliation and Aging (1)

As of May 31, 2016

Unaudited

 

		Days Aged
Debtors		Current				0-30				31-60				61-90				Over 90				Total
Emerald Oil, Inc.		$	4,031,956			$	151,231			$				$	395,792			$	6,593,328			$	11,172,306
Emerald WB, LLC			-				-				-				-				-				-
Emerald NWB, LLC			-				-				-				-				-				-
Emerald DB, LLC			-				-				-				-				-				-
EOX Marketing, LLC			-				18,422				-				-				-				18,422
Total		$	4,031,956			$	169,652			$	-			$	395,792			$	6,593,328			$	11,190,728
Percentage of Total			36	%			2	%			0	%			4	%			59	%

 

Notes:

 

(1) Aging is primarily for the Debtors' joint interest billing and oil and gas sales receivables and does not include intercompany receivables. All amounts are included on a gross basis before any adjustment for estimated bad debts and other uncollectible amounts.

 

FORM MOR-5

(04/07)

 

 

DEBTOR QUESTIONNAIRE

 

Must be completed each month		Yes		No
1. Have any assets been sold or transferred outside the normal course of business this reporting period? If yes, provide an explanation below.				X
2. Have any funds been disbursed from any account other than a debtor in possession account this reporting period? If yes, provide an explanation below.				X
3. Have all postpetition tax returns been timely filed? If no, provide an explanation below.		X
4. Are workers compensation, general liability and other necessary insurance coverages in effect? If no, provide an explanation below.		X
5. Has any bank account been opened during the reporting period? If yes, provide documentation identifying the opened account(s). If an investment account has been opened provide the required documentation pursuant to the Delaware Local Rule 4001-3.				X