SEC Form 4
Washington, D.C. 20549


Filed pursuant to Section 16(a) of the Securities Exchange Act of 1934
or Section 30(h) of the Investment Company Act of 1940
OMB Number: 3235-0287
Estimated average burden
hours per response: 0.5
Check this box if no longer subject to Section 16. Form 4 or Form 5 obligations may continue. See Instruction 1(b).
1. Name and Address of Reporting Person*
Sawyer William Alexander

(Last) (First) (Middle)
SUITE 1550


(City) (State) (Zip)
2. Issuer Name and Ticker or Trading Symbol
5. Relationship of Reporting Person(s) to Issuer
(Check all applicable)
X Director 10% Owner
X Officer (give title below) Other (specify below)
3. Date of Earliest Transaction (Month/Day/Year)
4. If Amendment, Date of Original Filed (Month/Day/Year)
6. Individual or Joint/Group Filing (Check Applicable Line)
X Form filed by One Reporting Person
Form filed by More than One Reporting Person
Table I - Non-Derivative Securities Acquired, Disposed of, or Beneficially Owned
1. Title of Security (Instr. 3) 2. Transaction Date (Month/Day/Year) 2A. Deemed Execution Date, if any (Month/Day/Year) 3. Transaction Code (Instr. 8) 4. Securities Acquired (A) or Disposed Of (D) (Instr. 3, 4 and 5) 5. Amount of Securities Beneficially Owned Following Reported Transaction(s) (Instr. 3 and 4) 6. Ownership Form: Direct (D) or Indirect (I) (Instr. 4) 7. Nature of Indirect Beneficial Ownership (Instr. 4)
Code V Amount (A) or (D) Price
Common Stock 07/01/2011 A 6,721(1) A $2.79 364,446(2) D
Table II - Derivative Securities Acquired, Disposed of, or Beneficially Owned
(e.g., puts, calls, warrants, options, convertible securities)
1. Title of Derivative Security (Instr. 3) 2. Conversion or Exercise Price of Derivative Security 3. Transaction Date (Month/Day/Year) 3A. Deemed Execution Date, if any (Month/Day/Year) 4. Transaction Code (Instr. 8) 5. Number of Derivative Securities Acquired (A) or Disposed of (D) (Instr. 3, 4 and 5) 6. Date Exercisable and Expiration Date (Month/Day/Year) 7. Title and Amount of Securities Underlying Derivative Security (Instr. 3 and 4) 8. Price of Derivative Security (Instr. 5) 9. Number of derivative Securities Beneficially Owned Following Reported Transaction(s) (Instr. 4) 10. Ownership Form: Direct (D) or Indirect (I) (Instr. 4) 11. Nature of Indirect Beneficial Ownership (Instr. 4)
Code V (A) (D) Date Exercisable Expiration Date Title Amount or Number of Shares
Stock Options $2.07 03/31/2011(3) 10/07/2020 Common Stock 24,000 224,000 D
Stock Options $4.05 04/01/2012(4) 04/01/2016 Common Stock 200,000 224,000 D
Explanation of Responses:
1. Effective as of April 1, 2011, the Issuer entered into an employment agreement with William A. Sawyer pursuant to which he agreed to serve as Chief Executive Officer of the Issuer. Pursuant to the employment agreement Mr. Sawyer is due a base salary of $250,000 per year, of which $175,000 is payable in cash and $75,000 is payable in shares of the Issuer's common stock on a pro-rata, quarterly basis. Effective July 1, 2011, the Issuer was obligated to issue Mr. Sawyer 6,721 shares of common stock, valued at $2.79 per share (the closing price of the Issuer's common stock on July 1, 2011) or approximately $18,750 in aggregate, representing one quarter's worth of the total value of shares Mr. Sawyer is due on a yearly basis pursuant to the terms of his employment agreement.
2. On October 7, 2010, the Issuer's Board of Directors approved the issuance to Mr. Sawyer of 17,500 shares of common stock under the Issuer's 2010 Long Term Incentive Plan (the "Plan") in the event the net production of the Issuer averages over 10,000 barrels of oil per month for a period of six months (which shares have not been issued or earned by Mr. Sawyer to date, and therefore have not been included in the table above).
3. Represents the date that last portion of the Stock Option vested to Mr. Sawyer.
4. Effective April 1, 2011, the Issuer's Board of Directors approved the grant to Mr. Sawyer of 200,000 options to purchase shares of common stock of the Issuer in consideration for services to be rendered to the Issuer during the April 1, 2011 to March 31, 2015 fiscal years as the Chief Executive Officer of the Issuer, which options had an exercise price of $4.05 per share and vest in tranches of 1/4th of such options per year pursuant to the Plan. The disclosure in the table above only discloses the date the first tranche is exercisable.
/s/ William A. Sawyer 07/14/2011
** Signature of Reporting Person Date
Reminder: Report on a separate line for each class of securities beneficially owned directly or indirectly.
* If the form is filed by more than one reporting person, see Instruction 4 (b)(v).
** Intentional misstatements or omissions of facts constitute Federal Criminal Violations See 18 U.S.C. 1001 and 15 U.S.C. 78ff(a).
Note: File three copies of this Form, one of which must be manually signed. If space is insufficient, see Instruction 6 for procedure.
Persons who respond to the collection of information contained in this form are not required to respond unless the form displays a currently valid OMB Number.