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Subsequent Events
12 Months Ended
Dec. 31, 2018
Notes to Financial Statements  
17. Subsequent Events

On February 15, 2019 the Company, through its wholly owned subsidiary, Empire North Dakota, LLC, entered into a Purchase and Sale Agreement ("the Agreement") with Energy Quest II, LLC to purchase certain oil and natural gas properties in Montana and North Dakota comprising 20,700 net acres with 183 active wells producing approximately 355 net barrels of oil per day. The purchase price was $5,600,000, subject to adjustments with an effective date of January 1, 2019 and a closing date of March 22, 2019.  The transaction closed on March 27, 2019.  After certain adjustments, the total purchase price paid was $5,185,383.

 

On February 27,2019 the Company entered into promissory notes with four accredited investors in the cumulative amount of $90,000. The notes have an interest rate of 8% and mature on May 1, 2019. One of the notes, in the amount of $15,000 was issued to Michael R. Morrisett, the Company's President, and another note in the amount of  $25,000 was issued to Anthony Kamin, a member of the Company's Board of Directors.

 

Between February 12 and  March 15, 2019 the Company raised $167,000 when  1,113,334 of the outstanding $0.15 warrants to purchase common stock were exercised by various warrant holders.

 

On March 27, 2019, Anthony Kamin converted $50,000 of the Company's notes payable to him to common stock by exercising 333,334 of $0.15  stock warrants which he owned.

 

On March 27, 2018 the Company entered into a First Amendment to the Senior Revolver Loan Agreement (the 'Agreement") with Crossfirst Bank. Under the terms of the Agreement, the commitment amount was increased to $9,000,000 and the maturity date was extended until March 27, 2021. The Company paid an origination fee of $76,900 and borrowed $4,880,383 of new funds (See  Note 8) for the purchase of the Energy Quest II, LLC properties.