XML 24 R14.htm IDEA: XBRL DOCUMENT v3.22.2.2
Debt
 9 Months Ended
Sep. 30, 2022
Debt Disclosure [Abstract]  
Debt

Note 8 - Debt

 

The following table represents the Company’s outstanding debt as of September 30, 2022:

 

Senior Revolver Loan Agreement  $6,169,500 
      
Term Loan – PIE, a related party   1,399,030 
      
Equipment and vehicle notes, 0% to 6.99% interest rates, maturing   264,087 
2025 to 2027 with monthly principal and interest payments     
of $400 to $1,400 per month     
      
Total Notes Payable   7,832,617 
Less: Current Maturities   1,258,804 
Total Long-Term Notes Payable  $6,573,813 

 

 

On July 7, 2021, the Company entered into the Fourth Amendment to its Senior Revolver Loan Agreement (the “Amended Agreement”) with CrossFirst Bank (“CrossFirst”). The maximum amount that can be advanced under the Agreement is $20,000,000 and the existing commitment amount at the current period-end is $6,480,000 which is reduced by $300,000 per calendar quarter and includes interest at Wall Street Journal Prime plus 150 basis points (7.75% as of September 30, 2022). The Amended Agreement matures on March 27, 2024. Collateral for the loan is a lien on all of the assets of Empire Louisiana and Empire North Dakota, both of which are wholly owned subsidiaries of the Company, and a first priority mortgage lien, pledge of and security interest in not less than 80% of Empire Louisiana’s and Empire North Dakota’s producing oil, gas and other leasehold and mineral interests. The Amended Agreement requires that the Company maintain commodity derivatives at certain thresholds based on projected production and to maintain certain covenants including an EBITDAX to interest expense of at least 4.5:1 and funded debt to EBITDAX of less than 4:1 on a trailing twelve-month basis. Current maturities of debt related to the Amended Agreement is $1,200,000. The Company was in compliance with its loan covenants at September 30, 2022. The Company paid $900,000 in principal payments during the nine months ended September 30, 2022.

 

In August 2020, concurrent with the JDA with PIE, a related party, the Company entered into a term loan agreement dated August 1, 2020, whereby PIE will loan up to $2,000,000, at an interest rate of 6% per annum, maturing August 7, 2024 unless terminated earlier by PIE. The loan proceeds will be used for recompletion or workover of certain designated wells. Refer to Note 5 for additional information regarding this arrangement.