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STOCKHOLDERS' EQUITY

12 Months Ended

Dec. 31, 2019

STOCKHOLDERS' EQUITY

STOCKHOLDERS' EQUITY

NOTE 12 – STOCKHOLDERS’ EQUITY

The Company is authorized to issue 150,000,000 common shares, with a par value of $0.001 per share and 50,000,000 shares of Preferred Stock.

Common Stock Issued in Public Offering – In July 2017, the Company closed on an underwritten public offering of 4,977,658 shares of its common stock, including 477,658 shares sold pursuant to the partial exercise of an over-allotment option, at $12.50 per share for gross proceeds of $62,220,725. Total net proceeds from the offering were $59,026,956, after deducting underwriting commissions and offering expenses payable by the Company of $3,193,769.

In February 2018, the Company closed on an underwritten public offering of 6,164,000 shares of its common stock, including 804,000 shares sold pursuant to the full exercise of an over-allotment option, at $14.00 per share for gross proceeds of $86,296,000. Total net proceeds from the offering were $81,821,138, after deducting underwriting commissions and offering expenses payable by the Company of $4,474,862.

Common stock issued in property acquisition – As discussed in Note 6, in December 2018, the Company issued 2,623,948 shares of common stock as consideration for the acquisition of oil and natural gas properties. These shares were valued at $5.80 per share for an aggregate of $11,204,258.

Also as discussed in Note 6, in April 2019, the Company completed the acquisition of assets from Wishbone Partners, LLC. As a part of the consideration for the acquisition, the Company issued 4,576,951 shares of common stock, of which 2,538,071 shares were placed in escrow to satisfy potential indemnification claims arising under the Purchase Agreement. One half of the shares placed into escrow remain in escrow as of December 31, 2019. The escrow shares will be released pursuant to the terms of the Purchase and Sale Agreement. The shares were valued at February 25, 2019, the date of the signing of the Purchase and Sale Agreement. The price on February 25, 2019 was $6.19 per share. The aggregate value of the shares issued, based on this price, was $28,331,327.

Common Stock Issued for option exercises – During the years ended December 31, 2017 and 2018, the Company issued 133,308 and 153,113 shares of common stock as a result of option exercises, respectively. No options were exercised in 2019. The following tables present the details of the 2017 and 2018 exercises:


														Stock price on			Aggregate value
		Options		Exercise			Shares		Shares		Cash paid at			date of exercise			of shares retained
		exercised		price ($)			issued		retained		exercise ($)			($)			($)
2017		4,100		$	2.00		3,491		609		$	—		$	13.47		$	8,200
		60,000			2.00		50,156		9,844			—			12.19			120,000
		200			8.00		116		84			—			13.75			1,600
		1,500			10.89		1,188		312			—			13.75			16,335
		600			5.25		229		371			—			13.75			3,150
		20,000			5.50		11,953		8,047			—			13.67			110,000
		2,000			8.00		830		1,170			—			13.67			16,000
		2,000			5.25		1,232		768			—			13.67			10,500
		15,000			2.00		12,875		2,125			—			14.12			30,000
		60,000			2.00		51,238		8,762			—			13.70			120,000

2017 Totals		165,400					133,308		32,092		$	—					$	435,785
2017 Weighted Averages				$	2.63									$	13.18


														Stock price on			Aggregate value
		Options		Exercise			Shares		Shares		Cash paid at			date of exercise			of shares retained
		exercised		price ($)			issued		retained		exercise ($)			($)			($)
2018		110,000		$	2.00		90,375		19,625		$	—		$	11.21		$	220,000
		50,000			2.00		50,000		—			100,000			8.00			—
		25,000			7.50		9,829		15,171			—			12.36		$	187,500
		3,000			8.00		1,059		1,941			—			12.36		$	24,000
		3,000			5.25		1,750		1,250			—			12.36		$	15,750
		2,000			11.75		100		1,900			—			12.36		$	23,500

2018 Totals		193,000					153,113		39,887		$	100,000					$	470,750
2018 Weighted Averages				$	2.96									$	10.58