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Acquisitions

9 Months Ended

Sep. 30, 2020

2. ACQUISITIONS

New Horizon Resources

On March 1, 2020, the Company acquired all the issued and outstanding equity interests of New Horizon. Its assets include acreage and operated producing properties in North Dakota (the “New Horizon Properties”). The Company accounted for the acquisition of the New Horizon Properties as a business combination. The consideration paid at closing consisted of 59,498 shares of the Company’s restricted common stock, $150,000 in cash and the assumption of certain liabilities (the “New Horizon Acquisition”). The New Horizon Acquisition gives the Company operated properties in its core area of operations. The New Horizon Properties consist of nine gross wells (five net wells), and approximately 1,300 net acres located primarily in McKenzie and Divide Counties, North Dakota, which are 100% held by production and average a 63% working interest.

	Amount
	(in thousands)
Fair value of net assets:
Proved oil and natural gas properties	$	564
Other current assets		14
Other long-term assets		58
Total assets acquired		636
Asset retirement obligations		(163	)
Current payables		(50	)
Credit facility		(61	)
Net assets acquired	$	362
Fair value of consideration paid for net assets:
Cash consideration	$	150
Issuance of common stock (59,498 shares at $4.04 per share)		240
Cash acquired		(28	)
Total fair value of consideration transferred	$	362

For the nine months ended September 30, 2020, the Company recorded revenues of approximately $69 thousand, and lease operating and workover expenses of approximately $131 thousand related to the New Horizon Properties. Assuming that the acquisition of the New Horizon properties had occurred on January 1, 2019, the Company would have recorded revenues of $100 thousand and expenses of $153 thousand for the nine months ended September 30, 2020, and revenues of $192 thousand and expenses of $258 thousand for the nine months ended September 30, 2019. These results are not necessarily indicative of the results that would have occurred had the Company completed the acquisition on the date indicated, or that will be attained in the future. Subsequent to the closing of the New Horizon Acquisition, the Company repaid the outstanding liabilities assumed at closing.

FieldPoint Petroleum

On September 25, 2020, the Company acquired certain oil and gas properties primarily located in Lea County, New Mexico and Converse County, Wyoming. The properties were acquired from FieldPoint Petroleum Corporation (“FieldPoint”) pursuant to FieldPoint’s Chapter 7 bankruptcy process (the “FieldPoint Properties”). The Company accounted for the acquisition of the FieldPoint Properties as an asset acquisition. Total cash paid for the FieldPoint Properties as of September 30, 2020, was $529 thousand, which includes the purchase price of $500 thousand and transaction costs of $29 thousand. In addition, the Company accrued $80 thousand for unpaid transaction costs and recorded asset retirement obligations of $236 thousand for the assets acquired. Substantially all of the value of the FieldPoint Proerties acquired consists of mature proved developed producing reserves. Following is a summary of the amounts recorded for the assets acquired:

	Amount
	(in thousands)
Amounts incurred:
Cash consideration	$	500
Transaction costs		109
Total	$	609

Asset retirement obligations	$	(236	)