0001354488-12-005811.txt : 20121114 0001354488-12-005811.hdr.sgml : 20121114 20121114113946 ACCESSION NUMBER: 0001354488-12-005811 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 11 CONFORMED PERIOD OF REPORT: 20120930 FILED AS OF DATE: 20121114 DATE AS OF CHANGE: 20121114 FILER: COMPANY DATA: COMPANY CONFORMED NAME: HOLLOMAN ENERGY CORP CENTRAL INDEX KEY: 0001324736 STANDARD INDUSTRIAL CLASSIFICATION: CRUDE PETROLEUM & NATURAL GAS [1311] IRS NUMBER: 770643398 STATE OF INCORPORATION: NV FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10-Q SEC ACT: 1934 Act SEC FILE NUMBER: 000-52419 FILM NUMBER: 121202071 BUSINESS ADDRESS: STREET 1: 333 NORTH SAM HOUSTON PKWY EAST STREET 2: SUITE 600 CITY: HOUSTON STATE: TX ZIP: 77060 BUSINESS PHONE: 713-703-1272 MAIL ADDRESS: STREET 1: 333 NORTH SAM HOUSTON PKWY EAST STREET 2: SUITE 600 CITY: HOUSTON STATE: TX ZIP: 77060 FORMER COMPANY: FORMER CONFORMED NAME: Holloman Energy CORP DATE OF NAME CHANGE: 20080110 FORMER COMPANY: FORMER CONFORMED NAME: Endeavor Energy CORP DATE OF NAME CHANGE: 20070809 FORMER COMPANY: FORMER CONFORMED NAME: Dujour Products, Inc. DATE OF NAME CHANGE: 20050425 10-Q 1 henc_10q.htm QUARTERLY REPORT henc_10q.htm


UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
 
FORM 10-Q
 
þ    QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
 
For the quarterly period ended September 30, 2012
 
OR
 
¨    TRANSITION REPORT PURSUANT TO 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934
 
For the transition period from ________ to ________
 
Commission File Number: 000-52419
 
HOLLOMAN ENERGY CORPORATION
(Exact Name of Issuer as Specified in Its Charter)
 
Nevada
 
77-0643398
(State or other jurisdiction
 
(I.R.S. Employer
of incorporation or organization)
 
Identification No.)

333 North Sam Houston Parkway East, Suite 600, Houston, Texas     77060
(Address of Issuer's Principal Executive Offices)  (Zip Code)
 
Issuer’s telephone number:  (281) 260-0193
 
Indicate by check mark whether the Registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the Registrant was required to file such reports) and (2) has been subject to such filing requirements for the past 90 days.  Yes þ    No ¨
 
Indicate by check mark whether the Registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the Registrant was required to submit and post such files).  Yes þ     No ¨
 
Indicate by check mark whether the Registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act. (Check One):
 
Large accelerated filer
o
Accelerated filer
o
Non-accelerated filer
o
Smaller reporting company
þ
(Do not check if a smaller reporting company)
   
 
Indicate by check mark whether the Registrant is a shell company (as defined in Exchange Act Rule 12b-2 of the Exchange Act).  Yes ¨     No þ
 
Class of Stock
 
No. Shares Outstanding
 
Date
Common
 
110,242,156
 
November 14, 2012
 


 
 

 
PART I  FINANCIAL INFORMATION
 
ITEM 1.  FINANCIAL STATEMENTS
 
HOLLOMAN ENERGY CORPORATION
 
(An Exploration Stage Company)
 
CONSOLIDATED BALANCE SHEETS
 
             
   
September 30, 2012
   
December 31, 2011
 
   
(Unaudited)
       
ASSETS
 
             
ASSETS
           
Cash
  $ 28,137     $ 11,637  
Other receivable
    4,865       3,886  
Prepaid expenses
    13,624       4,739  
  Current Assets
    46,626       20,262  
                 
Oil and gas properties, full cost method, unproven
    16,629,162       16,634,935  
  Total Assets
  $ 16,675,788     $ 16,655,197  
                 
                 
LIABILITIES AND STOCKHOLDERS' EQUITY
 
                 
LIABILITIES
               
Accounts payable and accrued liabilities
  $ 153,822     $ 188,301  
Contract advances
    -       7,160  
  Current Liabilities
    153,822       195,461  
                 
Deferred tax liability
    4,913,368       4,811,396  
  Total Liabilities
    5,067,190       5,006,857  
                 
STOCKHOLDERS' EQUITY
               
Authorized:
               
    10,000,000 preferred shares, par value $0.001 per share
               
    150,000,000 common shares, par value $0.001 per share
               
 Issued and outstanding :
               
    110,242,156 common shares (108,997,599 at December 31, 2011)
    110,242       108,998  
 Additional paid in capital
    25,813,579       25,353,199  
 Accumulated other comprehensive loss
    (8,915 )     (12,343 )
 Deficit accumulated during the exploration stage
    (14,306,308 )     (13,801,514 )
  Total Stockholders' Equity
    11,608,598       11,648,340  
                 
  Total Liabilities and Stockholders' Equity
  $ 16,675,788     $ 16,655,197  
 
The accompanying notes are an integral part of these consolidated financial statements.
 
 
2

 
 

HOLLOMAN ENERGY CORPORATION
(An Exploration Stage Company)
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
 
    Cumulative results from                          
    May 5, 2006 (Inception)    
Three Months Ended September 30,
   
Nine Months Ended September 30,
 
    to September 30, 2012    
2012
   
2011
   
2012
   
2011
 
                               
CONTINUING OPERATIONS
                             
Consulting
  $ 1,601,829     $ 15,000     $ -     $ 390,216     $ 37,494  
Foreign exchange (gain) loss
    1,006,127       109,176       (400,984 )     102,242       (183,371 )
Gain on settlement of debt
    (40,026 )     -       -       -       -  
Management and directors fees
    1,336,995       16,875       13,435       254,518       93,458  
Stock-based compensation expense
    2,511,212       -       39,366       104,874       196,834  
Office, travel and general
    796,944       32,352       25,190       87,463       78,422  
Professional fees
    719,561       38,342       37,697       61,256       76,486  
Salaries, wages, and benefits
    86,666       -       -       -       -  
  General  and Administrative Expenses
    (8,019,308 )     (211,745 )     285,296       (1,000,569 )     (299,323 )
                                         
Oil and gas property impairment
    (7,396,207 )     -       -       -       -  
Deferred income tax recovery
    2,244,107       -       -       -       -  
Other Income
    535,869       -       40,094       495,775       40,094  
  Income (Loss) from Continuing Operations
    (12,635,539 )     (211,745 )     325,390       (504,794 )     (259,229 )
                                         
DISCONTINUED OPERATIONS
                                       
Loss from discontinued operations
    (2,454,637 )     -       -       -       -  
Gain on disposal of Endeavor
    783,868       -       -       -       -  
  Loss from Discontinued Operations
    (1,670,769 )     -       -       -       -  
NET INCOME (LOSS)
  $ (14,306,308 )   $ (211,745 )   $ 325,390     $ (504,794 )   $ (259,229 )
                                         
Foreign currency translation
    (8,915 )     2,111       4,820       3,428       4,824  
                                         
COMPREHENSIVE INCOME (LOSS)
  $ (14,315,223 )   $ (209,634 )   $ 330,210     $ (501,366 )   $ (254,405 )
                                         
BASIC AND DILUTED NET INCOME (LOSS) FROM CONTINUING OPERATIONS PER COMMON SHARE
          $ (0.00 )   $ 0.00     $ (0.00 )   $ (0.00 )
                                         
BASIC AND DILUTED NET LOSS FROM DISCONTINUED OPERATIONS PER COMMON SHARE
          $ (0.00 )   $ (0.00 )   $ (0.00 )   $ (0.00 )
                                         
BASIC AND DILUTED NET INCOME (LOSS) PER COMMON SHARE
          $ (0.00 )   $ 0.00     $ (0.00 )   $ (0.00 )
                                         
WEIGHTED AVERAGE NUMBER OF BASIC AND  DILUTED COMMON SHARES OUTSTANDING
            110,196,201       108,847,664       109,629,274       108,446,162  
 
The accompanying notes are an integral part of these consolidated financial statements.
 
 
3

 
 

HOLLOMAN ENERGY CORPORATION
(A Exploration Stage Company)
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
 
   
Cumulative results from
             
   
May 5, 2006 (Inception)
   
Nine Months Ended September 30,
 
   
to September 30, 2012
   
2012
   
2011
 
                   
OPERATING ACTIVITIES
                 
Net loss
  $ (14,306,308 )   $ (504,794 )   $ (259,229 )
Adjustments to reconcile net loss to net cash used in operating activities:
                       
Cash used by discontinued operations
    1,729,701       -       -  
Gain on disposal of Endeavor
    (783,868 )     -       -  
Gain from settlement of indebtedness
    (65,026 )     -       -  
Stock-based compensation and fee payments
    3,339,212       416,624       196,834  
Unrealized foreign exchange loss (gain)
    956,752       105,400       (178,373 )
Impairment of oil and gas properties (net of tax recovery)
    5,152,100       -       -  
Changes in non-cash working capital items
                       
Other receivable
    (4,865 )     (979 )     6,715  
Prepaid expenses
    (13,624 )     (8,885 )     (3,248 )
Accounts payable and accrued liabilities
    437,388       10,521       19,479  
Contract advances
    131,190       (7,160 )     168,216  
  Cash provided by (used in) operating activities
    (3,427,348 )     10,727       (49,606 )
                         
INVESTING ACTIVITIES
                       
Investing activities from discontinued operations
    (1,447,739 )     -       -  
Oil and gas expenditures
    (1,406,985 )     (31,567 )     (72,215 )
Oil and gas expenditures recovered from partners
    37,340       37,340       -  
Cash acquired on acquisition
    12,696       -       -  
Deposit on acquisition
    (639,487 )     -       -  
  Cash provided by (used in) investing activities
    (3,444,175 )     5,773       (72,215 )
                         
FINANCING ACTIVITIES
                       
Financing activities from discontinued operations
    2,000,261       -       -  
Common stock issued for cash
    3,505,001       -       180,000  
Loans payable
    50,567       -       -  
Related party repayments
    (100,000 )     (100,000 )     -  
Proceeds from related parties
    1,443,831       100,000       -  
  Cash provided by financing activities
    6,899,660       -       180,000  
                         
CHANGE IN CASH
    28,137       16,500       58,179  
CASH, BEGINNING
    -       11,637       41,987  
                         
CASH, ENDING
  $ 28,137     $ 28,137     $ 100,166  
                         
SUPPLEMENTAL DISCLOSURE:
                       
Cash paid for interest
  $ 9,908     $ -     $ -  
                         
NON-CASH INVESTING ACTIVITIES:
                       
Accrued capital expenditures in oil and gas properties
  $ -     $ -     $ 62,190  
                         
NON-CASH FINANCING ACTIVITIES:
                       
Shares issued for management fees
  $ 231,750     $ 21,750     $ 10,000  
Shares issued for services
  $ 410,000     $ 335,000     $ 45,000  
Shares issued on conversion of liabilities
  $ 2,661,879     $ -     $ 20,000  
Shares issued for property acquired
  $ 15,903,000     $ -     $ -  
 
The accompanying notes are an integral part of these consolidated financial statements.
 
 
4

 
 

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
 (Unaudited)
 
1.  BASIS OF PRESENTATION
 
Unaudited Interim Consolidated Financial Statements
 
The unaudited interim consolidated financial statements of Holloman Energy Corporation (the “Company”) have been prepared in accordance with United States generally accepted accounting principles (“GAAP”) for interim financial information and the rules and regulations of the U.S. Securities and Exchange Commission (“SEC”). They do not include all information and footnotes required by GAAP for complete financial statements. However, except as disclosed herein, there have been no material changes in the information disclosed in the notes to the consolidated financial statements for the year ended December 31, 2011 included in the Company’s Annual Report on Form 10-K filed with the SEC. The unaudited interim consolidated financial statements should be read in conjunction with those consolidated financial statements and footnotes included in the Form 10-K. In the opinion of management, all adjustments considered necessary for fair presentation, consisting solely of normal recurring adjustments, have been made. Operating results for the three and nine month periods ended September 30, 2012 are not necessarily indicative of the results that may be expected for the year ending December 31, 2012.
 
Recent Accounting Pronouncements
 
The Company has reviewed recently issued accounting pronouncements and plans to adopt those that are applicable to it. It does not expect the adoption of these pronouncements to have a material impact on its consolidated financial position, results of operations or cash flows.
 
2.  OIL AND GAS PROPERTIES
 
The Company currently holds working interests of 66.67% in two onshore Petroleum Exploration Licenses (PELs) in Australia. PEL 112 is comprised of 2,196 square kilometers (542,643 gross acres). PEL 444 is comprised of 2,358 square kilometers (582,674 gross acres). Both licenses are located on the southwestern flank of the Cooper Basin in the State of South Australia. The Company’s oil and gas properties are unproven. As such, the costs capitalized in connection with those properties are not currently subject to depletion.
 
Effective May 11, 2012, the Company entered into a definitive Oil and Gas Farm-In Agreement with Terra Nova and its wholly owned subsidiary Terra Nova Resources Inc. (“Terra Nova”), Australian-Canadian Oil Royalties Ltd. (“ACOR”) and Eli Sakhai (“Sakhai”) on PEL 112 and PEL 444 (the “Agreement”). The Agreement provides terms under which Terra Nova may earn up to a 55% undivided working interest in PEL 112 and PEL 444 (the “Farm-In Interest”).
 
In connection with the Agreement, Terra Nova paid the Company non-refundable cash fees totaling $350,000, and 666,670 shares of its common stock with a fair market value of $193,334. The Company agreed to provide ACOR and Sakhai a full accounting of its use of the cash fees, and to share with ACOR and Sakhai, any excess of the cash fees over the transaction costs it incurred in connection with the Agreement. As a result of its analysis, the Company identified a total of $54,719 in excess fees to be refunded to ACOR and Sakhai. Of that amount, the Company has withheld $37,340 as a recovery of exploration costs payable to it by ACOR and Sakhai.
 
To earn the entire Farm-In Interest, Terra Nova is required to fund exploration and development expenditures (the “Earning Obligations”) totaling at least AUD$13,700,000 (USD$14,308,000) including:
 
●  
AUD$4,700,000 (USD$4,968,000) which was placed in escrow during May 2012, for use in the completion of a seismic acquisition program sufficient to meet the minimum seismic acquisition requirements, and interpretation of the acquired data for PEL 112 and PEL 444 (earning a 20% working interest in each license); and
 
 
5

 
 
●  
AUD$4,500,000 (USD$4,670,000) to be placed in escrow on or before November 1, 2012  to secure Terra Nova’s obligation to sole fund  the dry-hole costs of an initial three (3) well drilling program on either PEL 112 or PEL 444, provided that at least one well is drilled on each license (earning a working interest of 5.833% per well in each license, totaling a working interest of 17.5%); and
 
AUD$4,500,000 (USD$4,670,000) to be placed in escrow on or before the later of March 1, 2013 or 45 days following completion or abandonment of the third well in the initial well program, for use in funding the first AUD$4,500,000 in dry-hole costs of an optional three (3) well drilling program on either PEL 112 or PEL 444, provided that at least one well is drilled on each license (earning a working interest of 5.833% per well in each license, totaling a working interest of 17.5%).
 
Terra Nova will act as contract operator with respect to all seismic acquisition and drilling work contemplated by the Agreement.

Acquisition of 127 square kilometers of a 3-D seismic data on PEL 112 began July 24, 2012 and was completed in late September 2012. Geokinetics (Australia) Pty. Ltd. undertook the 3D seismic survey on the northern boundary of PEL 112 under the direction of Terra Nova.

Costs incurred in relation to the seismic earning obligations in excess of AUD$4,700,000, if any, shall be borne by Terra Nova, the Company, ACOR and Sakhai in accordance with their Working Interest percentages calculated as though Terra Nova had successfully completed its Earning Obligations and earned the entire Farm-In Interest.
 
In the event Terra Nova elects to complete either or both of the first two wells drilled in connection with the initial three well drilling program, Terra Nova will pay 50% of the completion costs and the Company will pay the other 50% of the completion costs. In the event Terra Nova elects to complete the third well drilled in connection with the initial three well drilling program, or any well drilled in connection with the optional three well drilling program, Terra Nova will pay 50% of the completion costs, and the Company, ACOR and Sakhai shall pay the other 50% of the completion costs in accordance with their working interest at the effective date of the Agreement.
 
In the event any well drilled in connection with either the initial or optional drilling programs is commercially viable, and Terra Nova elects to complete such well, Terra Nova is entitled to a preferential recovery of one hundred percent of the costs it has paid to drill and test that successful well. Terra Nova is entitled to 80% of production from that successful well until either that successful well has ceased production or Terra Nova has received net revenue equal to the reimbursable costs it has incurred.
 
Terra Nova will earn the Farm-In Interest in stages based upon successful completion of specific Earning Obligations. In each instance, the Company, ACOR and Sakhai will each contribute a portion of the working interest earned by Terra Nova. In the event Terra Nova earns the entire Farm-In Interest, the Company, ACOR and Sakhai will transfer to Terra Nova the following working interest percentages in both PEL 112 and PEL 444:
 
(a)   
The Company will contribute an undivided 38.556% working interest in both PEL 112 and PEL 444 (resulting in a residual working interest position of 28.112% in each license);
(b)   
ACOR will contribute an undivided 8.222% working interest in both PEL 112 and PEL 444; and
(c)   
Sakhai will contribute an undivided 8.222% working interest in both PEL 112 and PEL 444.
  
The Agreement may be terminated by any party upon the occurrence of an uncured breach of any material term. Terra Nova may terminate the Agreement any time before it has earned the Farm-In Interest upon providing written notice of such termination. In the event Terra Nova terminates the Agreement, it shall not be entitled to any interest in either PEL 112 or PEL 444 unless it has satisfied an Earning Obligation with respect to that license.

On February 27, 2012, the Company terminated its previous farm-in agreement on PEL 112 and PEL 444 with Brandenburg Energy Corp. ("Brandenburg"). Brandenburg’s contract rights were subject to meeting certain milestones including an obligation to pay the Company AUD$7,400,000 (USD$7,822,000) on or before September 20, 2011. Brandenburg was unable to pay this amount.
 
 
6

 
 
During January 2012, the Company was granted a variation of license terms on PEL 112 by the Government of South Australia. Under the variation, the minimum work requirements for PEL 112 License Year Three (3) were exchanged for those of PEL 112 License Year Four (4). As a result, the timeframe for acquisition of 100 kilometers of 2D seismic data was moved from January 10, 2012 to January 10, 2013. Likewise, the timeframe for performance of certain geological and geophysical studies was moved from January 10, 2013 to January 10, 2012. The Company believes the scope of work performed during 2011 fulfilled the requirements which were to be satisfied by January 2012.

Local reconnaissance indicates that residual flooding continues to delay access to lands covered by PEL 444. Accordingly, the Company requested an additional extension of time to complete its work program under that license. On June 22, 2012 the Government of South Australia granted a six (6) month extension of license terms for PEL 444. As a result, the timeframe for acquisition of a minimum of 200 kilometer of 2D seismic data was extended from July 11, 2012 to January 11, 2013, and the overall license term for PEL 444 was extended to January 11, 2015.

3.  CONTRACT ADVANCES AND OTHER INCOME

In connection with the Agreement, Terra Nova paid the Company cash fees totaling $350,000, and 666,670 shares of its common stock with a fair market value of $193,334 (see Note 2). All fees paid by Terra Nova were fully earned upon receipt, and were not repayable to Terra Nova under any circumstances. After an offset of $54,719 in excess fees to be refunded to ACOR and Sakhai, the Company recognized other income relating to these fees of $488,615 during the nine months ended September 30, 2012.
 
4.  COMMON STOCK AND STOCK – BASED COMPENSATION

The Company incurs $15,000 in administrative service fees payable to a wholly owned subsidiary of its controlling shareholder on a quarterly basis. During the three and nine months ended September 30, 2012, the Company paid administrative fees totaling $15,000 and $45,000, using 46,460 and 169,557 shares of its common stock, at approximate weighted average prices of $0.323 and $0.265 per share, respectively.

On April 2, 2012 the Company granted 1,000,000 shares of its common stock to a consultant whose efforts it judged instrumental in identifying and finalizing the Agreement with Terra Nova. The grant was conditioned upon the execution of the Agreement which occurred on May 11, 2012. The 1,000,000 bonus shares had a fair market value at the date of grant equal to $290,000, or $0.29 per share.

Issuance of Options and Bonus Shares
 
On April 3, 2012, the Company granted stock options to its Chief Executive Officer under the terms shown below. The options were granted pursuant to the 2009 Non-Qualified Stock Option Plan.
 
Option Type
 
No. of Shares
Issuable Upon
Exercise of Option
   
Exercise
Price
   
First Date
Exercisable
   
Expiration
Date
  Stock Option A
   
450,000
   
$
0.70
   
4/3/2012
   
8/15/2012
  Stock Option B
   
450,000
   
$
0.80
   
4/3/2012
   
8/15/2012
  Stock Option C
   
450,000
   
$
1.00
   
4/3/2012
   
8/15/2014
  Stock Option D
   
450,000
   
$
1.20
   
4/3/2012
   
8/15/2014
     
1,800,000
                   
 
 
7

 
 
The Company applied the Black-Scholes option pricing model to determine the fair market value of the options granted. In applying the model, the Company used the following parameters: contractual lives of .38 to 2.38 years, historical stock price volatility of 103% to 138%, a risk-free rate of 4.5% and an annual dividend rate of 0%. As a result, the Company determined that the total fair market value of the options granted was $104,874 and the weighted-average grant-date fair value per option granted was $0.06.

On April 3, 2012, the Company also authorized the issuance of 75,000 bonus shares of its common stock pursuant to the 2009 Stock Bonus Plan. The fair market value of these bonus shares is the market price of the shares at the date of grant. The 75,000 bonus shares had an aggregate value of $21,750, or $0.29 per share at that date.
 
In addition, on April 3, 2012, the Company issued its Chief Executive Officer fractional participation in a 2% net revenue interest in wells drilled by the Company on PEL 112 and PEL 444. The participation units granted represent a 0.017% interest in the Company’s Cooper Basin revenues, after all royalties, exploration expenses, operating costs and capital investments associated with the Cooper Basin have been recovered. In management’s opinion no value can be assigned to these revenue interests, as any valuation is non-estimable.

On February 14, 2012, stock warrants providing for the purchase of 700,003 shares of the Company’s common stock, at a price of $0.25 per share, expired without exercise. On August 15, 2012, stock options granted in connection with the Company’s 2009 Non-Qualified Stock Option Plan providing for the purchase of 3,300,000 shares of the Company’s common stock, at a weighted average price of $0.75 per share, also expired without exercise. At September 30, 2012 the Company had a total of 4,296,412 stock warrants and options outstanding with weighted average exercise prices and lives of $1.03 and 18.63 months, respectively.

5.  RELATED PARTY TRANSACTION
 
On April 2, 2012, the Company’s Board of Directors consented to the distribution of 666,670 shares of the common stock of Terra Nova, to its directors, officers and principal advisors. The Terra Nova shares were received by the Company in connection with the Agreement with Terra Nova, and were distributed as compensation for efforts put forth in securing the Terra Nova opportunity. The fair market value of the Terra Nova shares is the market price of the shares at the date they were earned by the Company. The 666,670 shares had an aggregate value of $193,334, or $0.29 per share at that date.
 
On March 1, 2012, the Company executed a promissory note in the principal amount of $100,000 with one of its consultants who is also a shareholder. The note was non-interest bearing and payable upon demand. The entire principal amount of the note was repaid on March 23, 2012.
 
6.  SUBSEQUENT EVENTS

Oil and Gas Properties

On November 1, 2012, Terra Nova deposited AUD$4,500,000 (USD$4,670,000) in escrow to fund the dry-hole costs of an initial three (3) well drilling program.

 
8

 

FORWARD LOOKING STATEMENTS
 
The information contained in this Form 10-Q contains certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, Section 21E of the Securities Exchange Act of 1934, as amended, and the Private Securities Litigation Reform Act of 1995. These forward-looking statements involve risks and uncertainties, including among other things, statements regarding our capital needs, business strategy and expectations. Any statement which does not contain a historical fact may be deemed to be a forward-looking statement. In some cases, you can identify forward-looking statements by terminology such as "may", "will", "should", "expect", "plan", "intend", "anticipate", "believe", "estimate", "predict", "potential" or "continue", the negative of such terms or other comparable terminology. In evaluating forward looking statements, you should consider various factors outlined in our latest Form 10-K, filed with the U.S. Securities Exchange Commission (“SEC”) on March 29, 2012, and, from time to time, in other reports we file with the SEC. These factors may cause our actual results to differ materially from any forward-looking statement. We disclaim any obligation to publicly update these statements, or disclose any difference between our actual results and those reflected in these statements.
 
ITEM 2.    MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
 
The following discussion and analysis of our financial condition and results of operations should be read in conjunction with our unaudited financial statements and related notes included as part of this report and our Form 10-K, for the year ended December 31, 2011 filed with the SEC on March 29, 2012.
 
Holloman Energy Corporation (“we” or the “Company”) was incorporated in Nevada on May 14, 2004. We focus on oil and gas exploration and development in Australia’s Cooper Basin.

We currently hold working interests of 66.67% in two onshore Petroleum Exploration Licenses (PEL) in Australia. PEL 112 is comprised of 2,196 square kilometers (542,643 gross acres). PEL 444, which resulted from the consolidation of the PEL 108 and PEL 109 licenses, is comprised of 2,358 square kilometers (582,674 gross acres). Both licenses are located on the southwestern flank of the Cooper Basin in the State of South Australia. 

The Department of Manufacturing, Innovation, Trade, Resources and Energy of South Australia reported that the Cooper Basin has sourced over 4 billion barrels of oil and 5 trillion cubic feet of recoverable gas. It has in excess of 120,000 kilometers of 2-D seismic data and more than 1,200 wells in 65 oil and 20 gas fields. Our management believes that Australia provides a stable regulatory, tax and business environment in the oil and gas sector.

Acquisition of 127 square kilometers of a 3-D seismic data on PEL 112 began July 24, 2012 and was completed in late September 2012. Geokinetics (Australia) Pty. Ltd. undertook the 3D seismic survey on the northern boundary of PEL 112 under the direction of our farm-in partner Terra Nova Minerals Inc. (“Terra Nova”). The seismic data is currently being interpreted and potential drilling prospects are expected to be identified in late November 2012. It is anticipated that the first well will be drilled on PEL 112, subject to rig availability, in the first calendar quarter of 2013.

On PEL 444, we are working with Terra Nova to design and initiate a 150 square kilometer 3D seismic program which is planned for completion in 2013.

Oil and Gas Farm-Ins
 
Effective May 11, 2012, we entered into a definitive Oil and Gas Farm-In Agreement (the “Terra Nova Farm-In Agreement”) with Terra Nova and its wholly owned subsidiary Terra Nova Resources Inc., Australian-Canadian Oil Royalties Ltd. (“ACOR”) and Eli Sakhai (“Sakhai”) on PELs 112 and 444. The Terra Nova Farm-In Agreement provides terms under which Terra Nova may earn a 55% undivided working interest in PEL 112 and PEL 444 (the “Farm-In Interest”).
 
 
9

 
  
To earn the entire Farm-In Interest, Terra Nova is required to fund exploration and development expenditures (the “Earning Obligations”) totaling at least AUD$13,700,000 (USD$14,308,000) including:
 
AUD$4,700,000 (USD$4,968,000) which was placed in escrow during May 2012, for use in the completion of a seismic acquisition program sufficient to meet the minimum seismic acquisition requirements, and interpretation of the acquired data for PEL 112 and PEL 444 (earning a 20% working interest in each license); and
 
AUD$4,500,000 (USD$4,670,000) which was placed in escrow on November 1, 2012  to secure Terra Nova’s obligation to sole fund  the dry-hole costs of an initial three (3) well drilling program on either PEL 112 or PEL 444, provided that at least one well is drilled on each license (earning a working interest of 5.833% per well in each license, totaling a working interest of 17.5%); and
 
AUD$4,500,000 (USD$4,670,000) to be placed in escrow on or before the later of March 1, 2013 or 45 days following completion or abandonment of the third well in the initial well program, for use in funding the first AUD$4,500,000 in dry-hole costs of an optional three (3) well drilling program on either PEL 112 or PEL 444, provided that at least one well is drilled on each license (earning a working interest of 5.833% per well in each license, totaling a working interest of 17.5%).
 
Terra Nova will act as contract operator with respect to all seismic acquisition and drilling work contemplated by the Terra Nova Farm-In Agreement.
 
Costs incurred in relation to the seismic earning obligations in excess of AUD $4,700,000, if any, shall be borne by Terra Nova, ACOR, Sakhai and us in accordance with our Working Interest percentages calculated as though Terra Nova had successfully completed its Earning Obligations and earned the entire Farm-In Interest.
 
In the event Terra Nova elects to complete either or both of the first two wells drilled in connection with the initial three well drilling program, Terra Nova shall pay 50% of the completion cost and we will pay the other 50% of the completion costs. In the event Terra Nova elects to complete the third well drilled in connection with the initial three well drilling program, or any well drilled in connection with the optional three well drilling program, Terra Nova shall pay 50% of the completion cost, and we, ACOR and Sakhai shall pay the other 50% of the completion costs in accordance with our working interest at the effective date of the Terra Nova Farm-In Agreement.
 
In the event any well drilled in connection with either the initial or optional drilling programs is commercially viable, and Terra Nova elects to complete such well, Terra Nova is entitled to a preferential recovery of one hundred percent of the costs it has paid to drill and test that successful well. Terra Nova is entitled to 80% of production from that successful well until either that successful well has ceased production or Terra Nova has received net revenue equal to the reimbursable costs it has incurred.
 
Terra Nova will earn the Farm-In Interest in stages based upon successful completion of specific Earning Obligations. In each instance, we, ACOR and Sakhai will each contribute a portion of the working interest earned by Terra Nova. In the event Terra Nova earns the entire Farm-In Interest, we, ACOR and Sakhai will transfer to Terra Nova the following working interest percentages in both PEL 112 and PEL 444:
 
(a)   
We will contribute an undivided 38.556% working interest in both PEL 112 and PEL 444 (resulting in a residual working interest position of 28.112% in each license);
(b)
ACOR will contribute an undivided 8.222% working interest in both PEL 112 and PEL 444; and
(c)
Sakhai will contribute an undivided 8.222% working interest in both PEL 112 and PEL 444.
 
The Terra Nova Farm-In Agreement may be terminated by any party upon the occurrence of an uncured breach of any material term. Terra Nova may terminate the Agreement any time before it has earned the Farm-In Interest upon providing written notice of such termination. In the event Terra Nova terminates the Agreement, it shall not be entitled to any interest in either PEL 112 or PEL 444 unless it has satisfied an Earning Obligation with respect to that license.
 
 
10

 

On February 27, 2012, we terminated a previous farm-in agreement on PEL 112 and PEL 444 with Brandenburg Energy Corp. ("Brandenburg"). Brandenburg’s contract rights were subject to meeting certain milestones including an obligation to pay us AUD$7,400,000 (USD$7,822,000) on or before September 20, 2011. Brandenburg was unable to pay this amount.
 
Onshore Licenses – Cooper Basin
 
In June 2008, the Australian government extended the lease term and associated work programs for PEL 444 and PEL 112 by five years. Under Australian Law, at the end of each five-year term, one third of the area covered by a petroleum exploration license must be relinquished. During June 2008, we identified and relinquished one-third of the acreage covered by PEL 112 and PEL 444 to the Australian government. We are obligated to pay 4.63% in royalties on our revenues generated by operations on these licenses.

Heavy rains beginning in February 2010 created wide scale flooding in the Cooper Basin. For nearly eighteen months, the inaccessibility of roads and facilities partially curtailed Cooper Basin oil production and resulted in a general contraction of exploration activity. In late 2010, we applied for, and were granted an extension of our license terms on PEL 112 and PEL 444. Local reconnaissance indicates that residual flooding continues to delay access to lands covered by PEL 444. Accordingly, the Company requested an additional extension of time to complete its work program under that license. On June 22, 2012 the Government of South Australia granted an additinal six (6) month extension of license terms for PEL 444. As a result, the timeframe for acquisition of a minimum of 200 kilometer of 2D seismic data was extended from July 11, 2012 to January 11, 2013, and the overall license term for PEL 444 was extended to January 11, 2015.

Effective January 9, 2012, we were also granted a variation of license terms on PEL 112. Under the variation, the minimum work requirements for PEL 112 License Year Three (3) were exchanged for those of PEL 112 License Year Four (4). As a result, the timeframe for acquisition of 100 kilometers of 2D seismic data was moved from January 10, 2012 to January 10, 2013. Likewise, the timeframe for performance of certain geological and geophysical studies was moved from January 10, 2013 to January 10, 2012. We believe the scope of work performed during 2011 fulfilled the requirements which were to be satisfied by January 2012.

To maintain our exploration rights in the Cooper/Eromanga Basin, the Australian Government requires that we fulfill the following minimum work commitments:
 
License
 
Description of Minimum Work Obligation
 
Date of Required Completion
PEL 112
 
Acquisition of new seismic data: 2D (100 kilometers)
 
January 10, 2013
PEL 112
 
Drill one well
 
January 10, 2014
PEL 444
 
Acquisition of new seismic data: 2D (200 kilometers)
 
January 11, 2013
PEL 444
 
Geological and geophysical studies
 
January 11, 2014
PEL 444
 
Drill one well
 
January 11, 2015
 
The farmin agreement through which we hold our working interests in PEL 112 and PEL 444 also obligates us to fulfill the drilling commitment set forth by the Government of South Australia. Based on technical recommendations, we have pursued the acquisition of 3-D seismic data on our licenses.
 
Acquisition of 127 square kilometers of a 3-D seismic data on PEL 112 began July 24, 2012 and was completed in late September 2012. Geokinetics (Australia) Pty. Ltd. undertook the 3D seismic survey on the northern boundary of PEL 112 under the direction of Terra Nova. The seismic data is currently being interpreted and potential drilling prospects are expected to be identified in late November 2012. It is anticipated that the first well will be drilled on PEL 112, subject to rig availability, in the first calendar quarter of 2013.

On PEL 444, we are working with Terra Nova to design and initiate a 150 square kilometer 3D seismic program which is planned for completion in 2013.
 
During 2010, we completed processing more than 666 km (414 miles) of 2D seismic data. This reprocessing fulfilled our June 11, 2010 work program requirements and covered a significant portion of PEL 112 and PEL 444. Our 2D seismic reprocessing was performed by Dayboro Geophysical Pty Ltd (“Dayboro”) under the supervision of Isis Petroleum Consultants Pty Ltd (“Isis”). Both Isis and Dayboro are independent engineers with lengthy geological and geophysical work experience in the Cooper Basin. The processing sequence targeted lines which complimented our technical assessment of likely drilling prospects and future seismic acquisition.
 
 
11

 

During 2011, we completed Work Area Clearance (“WAC”) on PEL 112. WAC is the process by which anthropologists and representatives of Australia’s Native Title Holders review proposed seismic sites to study topography and insure the acquisition of data does not harm the cultural integrity of the land to be explored. We have also initiated interpretation of the 666 km of 2D seismic reprocessed during 2010.
 
In addition, we have completed a broad range of technical studies relating to PEL 112 and PEL 444. The studies were performed by Isis and included; a) a review of Cooper Basin exploration acreage (including an analysis of the chronostratigraphy, an assessment of neighboring exploration results, an analysis of petroleum systems and a probabilistic volumetric assessment of leads), b) oil migration studies, c) adjacent oil pools studies, and d) economic feasibility studies. In the opinion of management, these studies have increased the value of both licenses.

Results of Operations
 
Our consulting, management and professional fees, increased by approximately $499,000 (240%) for the nine months ended September 30, 2012, when compared to the same period during the prior fiscal year. This increase relates almost entirely to stock based payments made to our directors, officers and principal advisors in connection with our successful completion of the Terra Nova Farm-In Agreement. More specifically, on April 2, 2012, our Board of Directors consented to the distribution of 666,670 shares of the common stock of Terra Nova, to our directors, officers and principal advisors. We received the Terra Nova shares in connection with the Terra Nova Farm-In Agreement. These shares were distributed as compensation for efforts put forth in securing the Terra Nova opportunity. The 666,670 shares had an aggregate value of $193,334, or $0.29 per share. On April 2, 2012 we also granted 1,000,000 shares of our common stock to a consultant whose efforts we judged instrumental in identifying and finalizing the Terra Nova Farm-In Agreement. The grant was conditioned upon the execution of that agreement which occurred on May 11, 2012. The 1,000,000 bonus shares had a fair market value at the date of grant equal to $290,000, or $0.29 per share.

The office and travel expenses we incurred during the three and nine months ended September 30, 2012 remained relatively unchanged from the prior year.
 
The Australian dollar increased from 1.023 to 1.038 US dollars and from 1.02 to 1.038 US dollars during the three and nine month periods ended September 30, 2012, respectively. As a result, we recognized foreign exchange losses of $109,176 and $102,242 during the respective periods. Substantially all of our non-cash foreign exchange losses relate to the measurement of US dollars required to settle deferred taxes payable to the Australian Government.

On April 3, 2012, we granted 1,800,000 stock options to our Chief Executive Officer pursuant to the 2009 Non-Qualified Stock Option Plan (See Note 4 to the financial statements which accompany this report for a more detailed discussion). We determined that the total fair market value of the options granted was $104,874. Since the options were entirely vested at the date of grant, we recognized the entire value of the options as stock-based compensation expense during the nine months ended September 30, 2012. We recognized no expense in connection with the option plan during the three months ended September 30, 2012, since all compensation expense related to the plans had been previously recognized. During the three and nine months ended September 30, 2011, we recognized non-cash, stock-based compensation expense of $39.366 and $196,834, respectively, related to the plan.

In connection with the Terra Nova Farm-In Agreement, Terra Nova paid us cash fees totaling $350,000, and 666,670 shares of its common stock with a fair market value of $193,334. All fees paid by Terra Nova were fully earned upon receipt, and were not repayable to Terra Nova under any circumstances. After an offset of $54,719 in excess fees to be refunded to ACOR and Sakhai, we recognized other income relating to these fees of $488,615 during the nine months ended September 30, 2012. We recognized no other income during the three months ended September 30, 2012.  During the three and nine months ended September 30, 2011, we recognized $40,094 in other income in connection with our previous farm-in agreement with Brandenburg.
 
On an inception to date basis, we have recognized a net loss of approximately $14,306,000. In largest part, that loss consisted of non-cash expense including: stock-based fees and compensation expense of $3,339,000, unrealized foreign exchange loss of $957,000, and a net impairment of oil and gas properties of approximately $5,152,000. In addition, we have incurred $1,671,000 related to the discontinued operations of Endeavor Canada, and approximately $3,187,000 in other net losses, related to exploration stage operations.  
 
 
12

 

Financial Condition, Liquidity and Capital Resources
 
The execution of the Terra Nova Farm-In Agreement significantly enhances our exploration capacity. On May 11, 2012, Terra Nova closed an equity financing for gross proceeds equal to CAD$10,652,000 (USD$10,663,000). During May 2012, Terra Nova placed AUD$4,700,000 (USD$4,968,000) in escrow for use in the completion of a seismic acquisition program sufficient to meet the minimum seismic acquisition, processing and interpretation requirements. On November 1, 2012, Terra Nova deposited AUD$4,500,000 (USD$4,670,000) in escrow to sole fund the dry-hole costs of an initial three (3) well drilling program.

Based upon technical recommendations, we have pursued the acquisition of 3-D seismic data on our licenses. The current Cooper Basin exploration plan also calls for the drilling, abandonment or completion, and possible equipping of six wells. Early estimates indicate the costs to perform the work outlined in our Cooper Basin exploration plan would range from $26 million to $29 million. Of this amount, approximately $3.7 million has already been expended. Under the terms of the Terra Nova Farm-In Agreement, we estimate that Terra Nova will bear $21 to $22.5 million, we would bear $4.0 to $5.0 million and our other working interest partners would bear $1.0 to $1.5 million, of planned exploration costs.
 
Our operations to date have been financed from the sale of our securities, loans from unrelated third parties and advances from Holloman Corporation, our current and former officers, directors and their affiliates. We regularly review the market to identify opportunities for capital formation.
 
In connection with the Terra Nova Farm-In Agreement, Terra Nova paid us cash fees totaling $350,000. We determined that $54,719 of the cash fees paid by Terra Nova were refundable to ACOR and Sakhai under the terms of a cost sharing agreement with them. Of that amount, we have withheld $37,340 as a recovery of exploration costs payable to us by ACOR and Sakhai.

During fiscal 2011, we received non-refundable contract payments totaling $261,212 in connection with our farm-in agreement with Brandenburg. Of the contract payments received, $221,118 were classified as contract advances, and $40,094, which had been incurred on contract related expenditures during the three months ended June 30, 2011, were recognized as other income. During the six months ended December 31, 2011, contract advances totaling $213,958 were used to offset Brandenburg transaction expenses and the costs associated with work area clearance and the acquisition of seismic data on PEL 112 and PEL 444. We terminated the Brandenburg farm-in agreement on February 27, 2012. As a result, the remaining balance of $7,160 in contract advances was recognized as other income during the nine months ended September 30, 2012.

On March 1, 2012, we executed a promissory note in the principal amount of $100,000 with a consultant who is also a shareholder. The note was non-interest bearing and payable upon demand. The entire amount of the note was repaid on March 23, 2012.

During March 2011, we sold 1,400,002 shares of common stock in a private placement of investment units. Proceeds from the private placement totaled $210,000. Of that amount, $180,000 was paid in cash and $30,000 was a conversion of liabilities.
 
Effective October 1, 2010, we executed an administrative services agreement with our controlling shareholder. Under this agreement, fees of $5,000 per month are payable to Holloman Corporation covering; office and meeting space, supplies, utilities, office equipment, network access and other administrative facilities costs. These fees are payable quarterly in shares of our restricted common stock at the closing price of the stock on the last trading-day of the applicable monthly billing period. This administrative services agreement can be terminated by either party with 30-days notice. During the three and nine months ended September 30, 2012, we paid administrative fees totaling $15,000 and $45,000, using 46,460 and 169,557 shares of our common stock, at approximate weighted average prices of $0.323 and $0.265 per share, respectively. Proceeds from this administrative service agreement have been assigned to a wholly owned subsidiary of Holloman Corporation.
  
Other than the obligations associated with our oil and gas concessions in Australia, we had no material future contractual obligations as of September 30, 2012.
 
The oil and gas industry is cyclical in nature and tends to reflect general economic conditions. The US and other world economies are recovering from a recession which continues to inhibit investment liquidity. Though oil prices are trending higher, the pattern of historic price fluctuations has resulted in additional uncertainty in capital markets. Our access to capital, as well as that of our partners and contractors, may be limited due to tightened credit markets. In addition, the results of our operations will be significantly impacted by a variety of trends and factors including; (i) our exploration success and the marketability of future production, if any, (ii) increasing competition from larger companies, (iii) future fluctuations in the prices of oil and gas, and (iv) our ability to maintain or increase oil and gas production through exploration and development activities.
 
 
13

 

We believe our plan of operations may require up to $11 million for exploration costs and administrative expenses over the twelve-month period ending October 31, 2013. We anticipate Terra Nova will bear up to $7.7 million and that we may bear up to $2.7 million of that amount. We are attempting to raise investment capital to cover our portion of anticipated costs.
 
If we are unable to raise the financing we need, our business plan may fail and our stockholders could lose their investment. If we are unable to perform in accordance with the work programs required by our licenses, the Australian government could cancel our exploration rights. There can be no assurance that we will be successful in raising the capital we require, or that if capital is offered, it will be subject to terms we consider acceptable. Investors should be aware that even in the event we are able to raise the funds we require, there can be no assurance that we will succeed in our drilling or production plans and we may never be profitable.
 
As of November 14, 2012 we did not have any off balance sheet arrangements.
 
As of November 14, 2012 we did not have any proven oil or gas reserves and we did not have any revenues.
 
Critical Accounting Policies and Estimates
 
Measurement Uncertainty
 
The process of preparing financial statements requires that we make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Such estimates primarily relate to unsettled transactions and events as of the date of the financial statements; accordingly, actual results may differ from estimated amounts. Our estimates and assumptions are based on current facts, historical experience and various other factors we believe to be reasonable under the circumstances. The most significant estimates with regard to the financial statements included with this report relate to carrying values of oil and gas properties, the treatment of contract fees paid in connection with our Oil and Gas Farm-In Agreements with Brandenburg and Terra Nova, determination of fair values of stock based transactions, and deferred income tax rates and timing of the reversal of income tax differences.
 
These estimates and assumptions are reviewed periodically and, as adjustments become necessary, they are reported in earnings in the periods in which they become known.
 
Petroleum and Natural Gas Properties
 
We utilize the full cost method to account for our investment in oil and gas properties. Accordingly, all costs associated with acquisition, exploration and development of oil and gas reserves, including such costs as leasehold acquisition costs, geological expenditures, tangible and intangible development costs including direct internal costs are capitalized to the full cost pool. When we commence production from established proven oil and gas reserves, capitalized costs, including estimated future costs to develop the reserves and estimated abandonment costs, net of salvage, will be depleted on the units-of-production method using estimates of proved reserves. Costs of unproved properties are not amortized until the proved reserves associated with the projects can be determined or until impairment occurs. If an assessment of such properties indicates that properties are impaired, the amount of impairment is added to the capitalized cost base to be amortized.
 
The capitalized costs included in the full cost pool are subject to a "ceiling test" (based on the average of first-day-of-the-month pricing), which limits such costs to the aggregate of the (i) estimated present value, using a ten percent discount rate, of the future net revenues from proved reserves, based on current economic and operating conditions, (ii) the lower of cost or estimated fair value of unproven properties included in the costs being amortized, (iii) the cost of properties not being amortized, less (iv) income tax effects related to differences between the book and tax basis of the cost of properties not being amortized and the cost or estimated fair value of unproved properties included in the costs being amortized. At September 30, 2012, all of our oil and gas interests were classified as unproven properties and were not being amortized.

Sales of proved and unproved properties are accounted for as adjustments of capitalized costs with no gain or loss recognized, unless such adjustments would significantly alter the relationship between capitalized costs and proved reserves of oil and gas, in which case the gain or loss is recognized in the statement of operations.
 
 
14

 
 
Stock Based Compensation
 
We record compensation expense for stock based payments using the fair value method. The fair value of stock based compensation to directors and employees is determined using the Black-Scholes option valuation model at the time of grant. Fair value for common shares issued for goods or services rendered by non-employees is measured based on the fair value of the goods and services received. Share-based compensation is expensed with a corresponding increase to share capital. Upon the exercise of the stock options, the consideration paid is recorded as an increase in share capital.
 
Foreign Currency Translation
 
Our functional and reporting currency, and that of our Australian subsidiary, is the United States dollar. The financial statements of our Canadian subsidiary are translated to United States dollars using period-end rates of exchange for assets and liabilities, and average rates of exchange for the period for revenues and expenses. Translation gains (losses) are recorded in accumulated other comprehensive income as a component of stockholders’ equity. Foreign currency financial statements of our Australian subsidiary use period end rates for monetary assets and liabilities, historical rates for historical cost balances, and average rates for expenses. If material, translation gains and losses are included in the determination of income. Foreign currency transactions are primarily undertaken in Canadian and Australian dollars. As of September 30, 2012, we have not entered into derivative instruments to offset the impact of foreign currency fluctuations.
   
Income Taxes
 
We follow the asset and liability method of accounting for future income taxes. Under this method, future income tax assets and liabilities are recorded based on temporary differences between the carrying amount of balance sheet items and their corresponding tax basis. In addition, the future benefits of income tax assets, including unused tax losses, are recognized, subject to a valuation allowance, to the extent that it is more likely than not that such future benefits will ultimately be realized. Future income tax assets and liabilities are measured using enacted tax rates and laws expected to apply when the tax liabilities or assets are either settled or realized.
 
Earnings Per Share
 
We present both basic and diluted earnings (loss) per share (EPS) on the face of the consolidated statements of operations. Basic EPS is computed by dividing net earnings (loss) available to common shareholders by the weighted average number of shares outstanding during the period. Diluted EPS gives effect to all dilutive potential common shares outstanding during the period including convertible debt, stock options, and warrants, using the treasury stock method. Diluted EPS excludes all dilutive potential shares if their effect is anti-dilutive. Diluted EPS figures are equal to those of basic EPS for each period since we are in a net loss position.
 
ITEM 4.  CONTROLS AND PROCEDURES
 
An evaluation was carried out under the supervision and with the participation of our management, including our Principal Financial Officer and Principal Executive Officer, of the effectiveness of our disclosure controls and procedures as of the end of the period covered by this report on Form 10-Q. Disclosure controls and procedures are procedures designed with the objective of ensuring that information required to be disclosed in our reports filed under the Securities Exchange Act of 1934, such as this Form 10-Q, is recorded, processed, summarized and reported, within the time period specified in the Securities and Exchange Commission’s rules and forms, and that such information is accumulated and is communicated to our management, including our Principal Executive Officer and Principal Financial Officer, or persons performing similar functions, as appropriate, to allow timely decisions regarding required disclosure. Based on that evaluation, our management concluded that, as of September 30, 2012, our disclosure controls and procedures were effective.
 
Change in Internal Control over Financial Reporting
 
Our internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements in accordance with generally accepted accounting principles in the United States. Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Therefore, even those systems determined to be effective can provide only reasonable assurance of achieving their control objectives.
 
There were no changes in our internal control over financial reporting that occurred during the fiscal quarter covered by this report that materially affected or are reasonably likely to materially affect, our internal control over financial reporting.

 
15

 

PART II - OTHER INFORMATION
 
ITEM 2.  UNREGISTERED SALE OF EQUITY SECURITIES AND USE OF PROCEEDS.

On September 30, 2012, we issued 46,460 shares of our common stock at a weighted average price of approximately $0.323 per share in settlement of $15,000 in fees payable to a wholly-owned subsidiary of our controlling shareholder under the terms of an administrative service agreement.

We relied upon the exemption provided by Section 4(2) of the Securities Act of 1933 with respect to the sale of these shares. There was no general solicitation in connection with the offer or sale of these shares. The purchasers acquired the shares for their own accounts. The certificates representing the shares will bear a restricted legend providing that they cannot be sold unless pursuant to an effective registration statement or an exemption from registration.
 
ITEM 6.   EXHIBITS
 
Exhibit
 
Number
 
Description of Exhibits
10.1
 
Terra Nova  Oil & Gas Farm-In Agreement, PELs 112 and 444 dated May 11, 2012(1)
10.2
 
Letter Agreement – Transaction Cost Sharing (Terra Nova Farm-Out) dated April 26, 2012(1)
31.1
 
Rule 13a-14(a) Certifications
31.2
 
Rule 13a-14(a) Certifications
32
 
Section 1350 Certifications
     
101. INS
 
XBRL Instance Document
     
101. SCH
 
XBRL Schema Document
     
101. CAL
 
XBRL Calculation Linkbase Document
     
101. DEF
 
XBRL Taxonomy Extension Definition Linkbase Document
     
101. LAB
 
XBRL Label Linkbase Document
     
101. PRE
 
XBRL Presentation Linkbase Document
____________
(1)
 Incorporated by reference to Exhibits 10.1 and 10.2 to the Company’s Form 10-Q filed May 15, 2012.
 
16

 

SIGNATURES
 
Pursuant to the requirements of the Securities and Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

  HOLLOMAN ENERGY CORPORATION  
       
Date: November 14, 2012                      
By:
/s/ Mark Stevenson
 
   
Mark Stevenson,
Principal Executive Officer
 
       
Date: November 14, 2012
By:
/s/ Robert Wesolek
 
   
Robert Wesolek,
Principal Financial and Accounting Officer
 
 
 
17
GRAPHIC 2 img001.jpg begin 644 img001.jpg M_]C_X``02D9)1@`!`0$`8`!@``#_VP!#``(!`0(!`0("`@("`@("`P4#`P,# M`P8$!`,%!P8'!P<&!P<("0L)"`@*"`<'"@T*"@L,#`P,!PD.#PT,#@L,#`S_ MVP!#`0("`@,#`P8#`P8,"`<(#`P,#`P,#`P,#`P,#`P,#`P,#`P,#`P,#`P, M#`P,#`P,#`P,#`P,#`P,#`P,#`P,#`S_P``1"``L`&@#`2(``A$!`Q$!_\0` M'P```04!`0$!`0$```````````$"`P0%!@<("0H+_\0`M1```@$#`P($`P4% M!`0```%]`0(#``01!1(A,4$&$U%A!R)Q%#*!D:$((T*QP152T?`D,V)R@@D* M%A<8&1HE)B7J#A(6&AXB)BI*3E)66EYB9FJ*CI*6FIZBIJK*SM+6VM[BYNL+#Q,7& MQ\C)RM+3U-76U]C9VN'BX^3EYN?HZ>KQ\O/T]?;W^/GZ_\0`'P$``P$!`0$! M`0$!`0````````$"`P0%!@<("0H+_\0`M1$``@$"!`0#!`<%!`0``0)W``$" M`Q$$!2$Q!A)!40=A<1,B,H$(%$*1H;'!"2,S4O`58G+1"A8D-.$E\1<8&1HF M)R@I*C4V-S@Y.D-$149'2$E*4U155E=865IC9&5F9VAI:G-T=79W>'EZ@H.$ MA8:'B(F*DI.4E9:7F)F:HJ.DI::GJ*FJLK.TM;:WN+FZPL/$Q<;'R,G*TM/4 MU=;7V-G:XN/DY>;GZ.GJ\O/T]?;W^/GZ_]H`#`,!``(1`Q$`/P#]TOB;\7=) M^$EC'=ZU<-!;SN(XRJ%B3BN-L?VT/!FHWL-O%=Q&A-LP4G=CK7/?M[,( M_!.BMNY.J1@@\\;3_A7SCX=U)YO%&E[W=]\\;'#$*/FY..@KX'.N**^#Q\<- MIRM[GTF7933Q&&E6=[H_0*WNSRBQ<1@*@')'I7S7^W%K"R^,M`>.4,JV[J71U/.X]NHKV M,QSN-#".K":;/*PF"=7$J$XM(]8\,?M<^%O%7B"TTJVN;HWE]((X@ULR@D^Y MJ/Q+^V+X4\-:[>Z;-)J+75A*T,OEV;.F0>Q!YKYJ^"]ZTOQ5\.IODS]OB89< MG!S@]:I_$O46A^*7BE"Q`74[@[+(H?6_8IGTK' M^V[X2Q\RZN<]Q9D?UI#^W!X1\S&-3`'7-L0:\(^"WPBN_C1!>FVU".S-BR`E MX]X?*@_UKNH/V,M9>5E_MVTRW/RPNJK[=:VP?$&;8FDJE.U@KY=@*,W";=T> MV?##XZZ3\7+>[FTG[5Y=G((Y#)%MP2,U/X_^-.A_#2,-K&I6ML6^Y$!?[ MJUXOJMG>?L??#+4Y/MT6IZMK]VL%E&H909"@`.#V7'?UKYV\4>+8-*L]0\2^ M)+N)V@C$\][=-E(V(&44#[I4_+[[<]Z]3$<3XFGR8:$;U9'G4?OQVF5_/-2Z9^VUX4O=2C@F?4K0.P3][:%<,>G-?+_P MU^'^O?%C3(]8;5++0M)NHO-M(RAEN;@'HW'RX/7Z$=ZQM1\4Q_#KXN:7X6\5 MZW962:Y)*\?:QIZK=>1YN(S'**4^7VF M^B/T;TVZ%]8Q3!MZRJ'4CN#R/THJMX7B-OX?M(RRLR1A25^[D=0/;T]J*]Z/ M-9<^_4YO=^R[H\"_X*!EK?PEH\CGY&U6+'M\AKY9M=0\MHROF.\I5$6,'<6[ MN?+^'VB990$U-3SZA./YU\J>";LQ>)])8LN3>Q[1O(Q\^/Y5 M^"\;S4LYCA[/7J?H?#T[8&4VUILCHX_!?B.>=V.E>(%=OF;YY7)SSGDU3U'1 M+_098VO+2_M9Y%)B^U@DD`X.,^]?H?I$"R:?`2H#!!D^O%?*7_!1:Y^P^-O# M#*"NZTF/7`)#H!Q^)_.N_..&JE#+/;*HVK=SCP&=NIBE3<5N_P#%W/%T1SO_`+5N,'\:J_`._P!WQN\-`]3>QX`XQ\QJ MM\7]06#XS>*U?[XU*;GZL:^#C7FLHM;J>Y&G)YE>ZV-#P5XE\1Z1&8O#]SJT M0+1?:?LD)?.1ZX],5JOX_P#B9+9XCU#Q:VX%<&``^OIFI/V=?VCH/@6=3CN= M(O=4&H,CQM!(,+M7'(/3O7IU?(W[>UW/<_`&6"-#Y$U_$E_M)`DY&2<=J^V_'_`(J7]LWX97USI.B75EJG MAET:))F#F1'#!UX]5KY@\:Z%!XXT34-&U2(Q)=J4F1QMD60'C:AYX/>O>PV: M4\!GV'S&SG135V]CQ,7@ZN+R>OA*349M.R1#^S%\5_%'AOX70Z#%=I;FWVFR MN$S(1!_<&<@=>HYKRC]N#X2^*X/#\FL:H\]Q;F1;I;@NS"WDW*8SGJ&8@+QT MQ7=?!V]UGX'QG3;ZR_MRRDRMO/$%$BKDG##'&.GX5V?C?Q]J?Q.U[18)M)LH M]"L)XKF>QNIR6OV1AM5CT5`1GUK^M<1XH9#0B\3AIK]XK->9_..7\#YU5J>Q MQ46N1[GZ+?LZ7MYJ7P'\'W&HJZ7\^CVKW"MU60Q*6'X'-%;O@.Z-]X-TRW5HVFQM&!%C#AB"1S[@?E7KE%=^)RZC7H^PJ+W3*G6G3 MG[2+U/GCP-^P+I?@7QEIFLQ:MJ5Q+IEP+A8G$863!X4D=O?K3O&'[`6B^-O% MFHZO<:CJ4,VI3M<21H4VJ6.<"OH6BO$_U.RSD]GR:=M+?D=?]IXCFY^;7N?- M4O\`P3:\.M]W5]90GKM9!FAO^";OATD_\3;5^?4IFOI6BLUP5E:5E#\O\BGF M^+>\V>8?`;]FFP^`T.HQ6%U=7*ZDZ22-,1N!48'3M[54^+W[)'AGXP2FYO;+ M[)J(;<+JU8)(2!@$_@!7K5%>E_J_@OJ_U9QO'Y?Y'/3QE:$_:1E9GR9J?_!- M>57D-AXCFC60YQ+$K-^)I-'_`.";MY%?6TE[XDEDA@D$C1(@59<'H>>1[5]: M45Y<>",M4E*TM-=U_D=CSK%.]Y;E30--.CZ-;6FXM]GC$8)]`,"BK=%?64X* +$%!;(\J4KN[/_]D_ ` end EX-3.1 3 henc_ex311.htm CERTIFICATION henc_ex311.htm
EXHIBIT 31.1
 
 
CERTIFICATIONS
 
I, Mark Stevenson, certify that;
 
 
 1.
I have reviewed this quarterly report on Form 10-Q of Holloman Energy Corporation;
 
 
2.
Based on my knowledge, this report, does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by the report;
 
 
3.
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
 
 
4.
The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
 
 
a)
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
 
 
b)
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
 
 
c)
Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
 
 
d)
Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
 
 
5.
The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
 
 
a)
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
 
 
b)
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
 
   
November 14, 2012
/s/ Mark Stevenson
 
 
Mark Stevenson,
 
Principal Executive Officer
EX-31.2 4 henc_ex312.htm CERTIFICATION henc_ex312.htm
EXHIBIT 31.2
 
CERTIFICATIONS
 
I, Robert Wesolek, certify that;
 
 
1. 
  I have reviewed this quarterly report on Form 10-Q of Holloman Energy Corporation;
 
 
2.
Based on my knowledge, this report, does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by the report;
 
 
3.
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
 
 
4.
The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
 
 
a)
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
 
 
b)
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
 
 
c)
Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
 
 
d)
Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
 
 
5.
The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
 
 
a)
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
 
 
b)
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
 

   
November 14, 2012
/s/ Robert Wesolek
 
 
Robert Wesolek,
 
Principal Financial Officer
EX-32.1 5 henc_ex321.htm CERTIFICATION henc_ex321.htm
EXHIBIT 32
 
In connection with the quarterly report of Holloman Energy Corporation, (the “Company”) on Form 10-Q for the quarter ended September 30, 2012 as filed with the Securities and Exchange Commission (the “Report”), Mark Stevenson, the Principal Executive Officer of the Company and Robert Wesolek, the Principal Financial Officer of the Company, certify pursuant to 18 U.S.C. Sec. 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that to the best of their knowledge:
 
 
(1)
The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
 
 
(2)
The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.
 

 
     
November 14, 2012
By:
/s/ Mark Stevenson
 
   
Mark Stevenson,
Principal Executive Officer
     
     
     
     
November 14, 2012
By:
/s/ Robert Wesolek
 
   
Robert Wesolek,
Principal Financial and Accounting Officer


EX-101.INS 6 henc-20120930.xml 0001324736 2012-01-01 2012-09-30 0001324736 2012-09-30 0001324736 2011-12-31 0001324736 2012-07-01 2012-09-30 0001324736 2011-01-01 2011-09-30 0001324736 2011-07-01 2011-09-30 0001324736 2006-05-05 2012-09-30 0001324736 HENC:StockOptionAMember 2012-04-03 0001324736 HENC:StockOptionBMember 2012-04-03 0001324736 HENC:StockOptionCMember 2012-04-03 0001324736 HENC:StockOptionDMember 2012-04-03 0001324736 2012-11-05 0001324736 2006-05-04 0001324736 2011-09-30 0001324736 2010-12-31 0001324736 2012-04-03 0001324736 HENC:WarrantAndOptionMember 2012-09-30 0001324736 HENC:WarrantAndOptionMember 2012-01-01 2012-09-30 iso4217:USD xbrli:shares iso4217:USD xbrli:shares HOLLOMAN ENERGY CORP 0001324736 10-Q 2012-09-30 false --12-31 No No Yes Smaller Reporting Company Q3 2012 4865 3886 13624 4739 46626 20262 16629162 16634935 16675788 16655197 153822 188301 0 7160 153822 195461 4913368 4811396 5067190 5006857 0 0 110242 108998 25813579 25353199 -8915 -12343 -14306308 -13801514 11608598 11648340 16675788 16655197 0.001 0.001 10000000 10000000 0.001 0.001 150000000 150000000 110242156 108997599 110242156 108997599 <p style="margin: 0pt"></p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><u>Oil and Gas Properties</u></p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">On November 1, 2012, Terra Nova deposited AUD$4,500,000 (USD$4,670,000) in escrow to fund&#160;the dry-hole costs of an initial three (3) well drilling program.</p> <p style="margin: 0pt">&#160;</p> <p style="margin: 0pt"></p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">On April 2, 2012, the Company&#146;s Board of Directors consented to the distribution of 666,670 shares of the common stock of Terra Nova, to its directors, officers and principal advisors. The Terra Nova shares were received by the Company in connection with the Agreement with Terra Nova, and were distributed as compensation for efforts put forth in securing the Terra Nova opportunity. The fair market value of the Terra Nova shares is the market price of the shares at the date they were earned by the Company. The 666,670 shares had an aggregate value of $193,334, or $0.29 per share at that date.</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">On March 1, 2012, the Company executed a promissory note in the principal amount of $100,000 with one of its consultants who is also a shareholder. The note was non-interest bearing and payable upon demand. The entire principal amount of the note was repaid on March 23, 2012.</p> <p style="margin: 0pt">&#160;</p> <p style="margin: 0pt"></p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company incurs $15,000 in administrative service fees payable to a wholly owned subsidiary of its controlling shareholder on a quarterly basis. During the three and nine months ended September 30, 2012, the Company paid administrative fees totaling $15,000 and $45,000, using 46,460 and 169,557 shares of its common stock, at approximate weighted average prices of $0.323 and $0.265 per share, respectively.</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">On April 2, 2012 the Company granted 1,000,000 shares of its common stock to a consultant whose efforts it judged instrumental in identifying and finalizing the Agreement with Terra Nova. The grant was conditioned upon the execution of the Agreement which occurred on May 11, 2012. The 1,000,000 bonus shares had a fair market value at the date of grant equal to $290,000, or $0.29 per share.</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><u>Issuance of Options and Bonus Shares</u></p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">On April 3, 2012, the Company granted stock options to its Chief Executive Officer under the terms shown below. The options were granted pursuant to the 2009 Non-Qualified Stock Option Plan.</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0">&#160;</p> <table cellspacing="0" cellpadding="0" style="font: 8pt Times New Roman, Times, Serif; width: 100%"> <tr style="vertical-align: bottom"> <td style="font-weight: bold">Option Type</td> <td>&#160;</td> <td colspan="2" style="border-bottom: black 1.5pt solid"> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>No.&#160;of Shares</b></p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>Issuable Upon</b></p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>Exercise of Option</b></p></td> <td>&#160;</td> <td>&#160;</td> <td colspan="2" style="border-bottom: black 1.5pt solid"> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>Exercise</b></p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>Price</b></p></td> <td>&#160;</td> <td style="border-bottom: black 1.5pt solid"> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>First Date</b></p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>Exercisable</b></p></td> <td style="font-weight: bold">&#160;</td> <td style="border-bottom: black 1.5pt solid"> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>Expiration</b></p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>Date</b></p></td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td style="width: 57%">&#160;&#160;Stock Option A</td> <td style="width: 1%; text-align: right">&#160;</td> <td style="width: 1%">&#160;</td> <td style="width: 9%; text-align: right">450,000</td> <td style="width: 1%">&#160;</td> <td style="width: 1%; text-align: right">&#160;</td> <td style="width: 1%">$</td> <td style="width: 9%; text-align: right">0.70</td> <td style="width: 1%">&#160;</td> <td style="width: 9%; text-align: center">4/3/2012</td> <td style="width: 1%">&#160;</td> <td style="width: 9%; text-align: center">8/15/2012</td></tr> <tr style="vertical-align: bottom; background-color: white"> <td>&#160;&#160;Stock Option B</td> <td style="text-align: right">&#160;</td> <td>&#160;</td> <td style="text-align: right">450,000</td> <td>&#160;</td> <td style="text-align: right">&#160;</td> <td>$</td> <td style="text-align: right">0.80</td> <td>&#160;</td> <td style="text-align: center">4/3/2012</td> <td>&#160;</td> <td style="text-align: center">8/15/2012</td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td>&#160;&#160;Stock Option C</td> <td style="text-align: right">&#160;</td> <td>&#160;</td> <td style="text-align: right">450,000</td> <td>&#160;</td> <td style="text-align: right">&#160;</td> <td>$</td> <td style="text-align: right">1.00</td> <td>&#160;</td> <td style="text-align: center">4/3/2012</td> <td>&#160;</td> <td style="text-align: center">8/15/2014</td></tr> <tr style="vertical-align: bottom; background-color: white"> <td>&#160;&#160;Stock Option D</td> <td style="text-align: right">&#160;</td> <td style="border-bottom: black 1.5pt solid">&#160;</td> <td style="border-bottom: black 1.5pt solid; text-align: right">450,000</td> <td>&#160;</td> <td style="text-align: right">&#160;</td> <td>$</td> <td style="text-align: right">1.20</td> <td>&#160;</td> <td style="text-align: center">4/3/2012</td> <td>&#160;</td> <td style="text-align: center">8/15/2014</td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td>&#160;</td> <td style="text-align: right">&#160;</td> <td style="border-bottom: black 2.25pt double">&#160;</td> <td style="border-bottom: black 2.25pt double; text-align: right">1,800,000</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td style="text-align: right">&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td></tr> </table> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0">&#160;</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company applied the Black-Scholes option pricing model to determine the fair market value of the options granted. In applying the model, the Company used the following parameters: contractual lives of .38 to 2.38 years, historical stock price volatility of 103% to 138%, a risk-free rate of 4.5% and an annual dividend rate of 0%. As a result, the Company determined that the total fair market value of the options granted was $104,874 and the weighted-average grant-date fair value per option granted was $0.06.</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">On April 3, 2012, the Company also authorized the issuance of 75,000 bonus shares of its common stock pursuant to the 2009 Stock Bonus Plan. The fair market value of these bonus shares is the market price of the shares at the date of grant. The 75,000 bonus shares had an aggregate value of $21,750, or $0.29 per share at that date.</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="background-color: white">In addition, on April 3, 2012, the Company issued its Chief Executive Officer fractional participation in a 2% net revenue interest in wells drilled by the Company on PEL 112 and PEL 444. The participation units granted represent a 0.017% interest in the Company&#146;s Cooper Basin revenues, after all royalties, exploration expenses, operating costs and capital investments associated with the Cooper Basin have been recovered. In management&#146;s opinion no value can be assigned to these revenue interests, as any valuation is non-estimable.</font></p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">On February 14, 2012, stock warrants providing for the purchase of 700,003 shares of the Company&#146;s common stock, at a price of $0.25 per share, expired without exercise. On August 15, 2012, stock options granted in connection with the Company&#146;s 2009 Non-Qualified Stock Option Plan providing for the purchase of &#160;3,3400,000 shares of the Company&#146;s common stock, at a weighted average price of $0.75 per share, also expired without exercise. At September 30, 2012 the Company had a total of 4,296,412 stock warrants and options outstanding with weighted average exercise prices and lives of $1.03 and 18.63 months, respectively.</p> <p style="margin: 0pt">&#160;</p> <p style="margin: 0pt"></p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">In connection with the Agreement, Terra Nova paid the Company cash fees totaling $350,000, and 666,670 shares of its common stock with a fair market value of $193,334 (see Note 2). All fees paid by Terra Nova were fully earned upon receipt, and were not repayable to Terra Nova under any circumstances. After an offset of $54,719 in excess fees to be refunded to ACOR and Sakhai, the Company recognized other income relating to these fees of $488,615 during the nine months ended September 30, 2012.</p> <p style="margin: 0pt">&#160;</p> <p style="margin: 0pt; text-align: justify"></p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="background-color: white">The Company currently holds working interests of 66.67% in two onshore Petroleum Exploration Licenses (PELs) in Australia. PEL 112 is comprised of 2,196 square kilometers (542,643 gross acres). PEL 444 is comprised of 2,358 square kilometers (582,674 gross acres). Both licenses are located on the southwestern flank of the Cooper Basin in the State of South Australia.</font>&#160;The Company&#146;s oil and gas properties are unproven. As such, the costs capitalized in connection with those properties are not currently subject to depletion.</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Effective May 11, 2012, the Company entered into a definitive Oil and Gas Farm-In Agreement with Terra Nova and its wholly owned subsidiary Terra Nova Resources Inc. (&#147;Terra Nova&#148;), Australian-Canadian Oil Royalties Ltd. (&#147;ACOR&#148;) and Eli Sakhai (&#147;Sakhai&#148;) on PEL 112 and PEL 444 (the &#147;Agreement&#148;). The Agreement provides terms under which&#160;Terra Nova&#160;may earn up to a 55% undivided working interest in PEL 112 and PEL 444 (the &#147;Farm-In Interest&#148;).</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">In connection with the Agreement, Terra Nova&#160;paid the Company non-refundable cash fees totaling $350,000, and 666,670 shares of its common stock with a fair market value of $193,334. The Company agreed to provide ACOR and Sakhai a full accounting of its use of the cash fees, and to share with ACOR and Sakhai, any excess of the cash fees over the transaction costs it incurred in connection with the Agreement. As a result of its analysis, the Company identified a total of $54,719 in excess fees to be refunded to ACOR and Sakhai. Of that amount, the Company has withheld $37,340 as a recovery of exploration costs payable to it by ACOR and Sakhai.</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">To earn the entire Farm-In Interest, Terra Nova is required to fund exploration and development expenditures (the &#147;Earning Obligations&#148;) totaling at least AUD$13,700,000 (USD$14,308,000) including:</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p> <table cellspacing="0" cellpadding="0" style="width: 100%"> <tr style="vertical-align: top"> <td style="width: 5%; font: 8pt Times New Roman, Times, Serif; text-align: justify">&#9679;&#160;&#160;</td> <td style="width: 95%; font: 8pt Times New Roman, Times, Serif; text-align: justify">AUD$4,700,000 (USD$4,968,000) which was placed in escrow during May 2012, for use in the completion of a seismic acquisition program sufficient to meet the minimum seismic acquisition requirements, and interpretation of the acquired data for PEL 112 and PEL 444 (earning a 20% working interest in each license); and</td></tr> </table> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p> <table cellspacing="0" cellpadding="0" style="width: 100%"> <tr style="vertical-align: top"> <td style="width: 5%; font: 8pt Times New Roman, Times, Serif; text-align: justify">&#9679;&#160;&#160;</td> <td style="width: 95%; font: 8pt Times New Roman, Times, Serif; text-align: justify">AUD$4,500,000 (USD$4,670,000) to be placed in escrow on or before November 1, 2012&#160;&#160;to secure Terra Nova&#146;s obligation to sole fund&#160;&#160;the dry-hole costs of an initial three (3) well drilling program on either PEL 112 or PEL 444, provided that at least one well is drilled on each license (earning a working interest of 5.833% per well in each license, totaling a working interest of 17.5%); and</td></tr> </table> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p> <table cellspacing="0" cellpadding="0" style="width: 100%"> <tr style="vertical-align: top"> <td style="width: 6%; font: 8pt Times New Roman, Times, Serif; text-align: justify">&#9679;</td> <td style="width: 94%; font: 8pt Times New Roman, Times, Serif; text-align: justify">AUD$4,500,000 (USD$4,670,000) to be placed in escrow on or before the later of March 1, 2013 or 45 days following completion or abandonment of the third well in the initial well program, for use in funding the first AUD$4,500,000 in dry-hole costs of an optional three (3) well drilling program on either PEL 112 or PEL 444, provided that at least one well is drilled on each license (earning a working interest of 5.833% per well in each license, totaling a working interest of 17.5%).</td></tr> </table> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Terra Nova will act as contract operator with respect to all seismic acquisition and drilling work contemplated by the Agreement.</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Acquisition of 127 square kilometers of a 3-D seismic data on PEL 112 began July 24, 2012 and was completed in late September 2012. Geokinetics (Australia) Pty. Ltd. undertook the 3D seismic survey on the northern boundary of PEL 112 under the direction of Terra Nova.</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Costs incurred in relation to the seismic earning obligations in excess of AUD$4,700,000, if any, shall be borne by Terra Nova, the Company, ACOR and Sakhai in accordance with their Working Interest percentages calculated as though Terra Nova had successfully completed its Earning Obligations and earned the entire Farm-In Interest.</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">In the event Terra Nova elects to complete either or both of the first two wells drilled in connection with the initial three well drilling program, Terra Nova will pay 50% of the completion cost and the Company will pay the other 50% of the completion costs. In the event Terra Nova elects to complete the third well drilled in connection with the initial three well drilling program, or any well drilled in connection with the optional three well drilling program, Terra Nova will pay 50% of the completion costs, and the Company, ACOR and Sakhai shall pay the other 50% of the completion costs in accordance with their working interest at the effective date of the Agreement.</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">In the event any well drilled in connection with either the initial or optional drilling programs is commercially viable, and Terra Nova elects to complete such well, Terra Nova is entitled to a preferential recovery of one hundred percent of the costs it has paid to drill and test that successful well. Terra Nova is entitled to 80% of production from that successful well until either that successful well has ceased production or Terra Nova has received net revenue equal to the reimbursable costs it has incurred.</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Terra Nova will earn the Farm-In Interest in stages based upon successful completion of specific Earning Obligations. In each instance, the Company, ACOR and Sakhai will each contribute a portion of the working interest earned by Terra Nova. In the event Terra Nova earns the entire Farm-In Interest, the Company, ACOR and Sakhai will transfer to Terra Nova the following working interest percentages in both PEL 112 and PEL 444:</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p> <table cellspacing="0" cellpadding="0" style="font: 8pt Times New Roman, Times, Serif; width: 100%"> <tr style="vertical-align: top"> <td style="width: 10%; text-align: justify">(a)&#160;&#160;&#160;</td> <td style="width: 90%; text-align: justify">The Company will contribute an undivided 38.556% working interest in both PEL 112 and PEL 444 (resulting in a residual working interest position of 28.112% in each license);</td></tr> <tr style="vertical-align: top"> <td style="text-align: justify">(b)&#160;&#160;&#160;</td> <td style="text-align: justify">ACOR will contribute an undivided 8.222% working interest in both PEL 112 and PEL 444; and</td></tr> <tr style="vertical-align: top"> <td style="text-align: justify">(c)&#160;&#160;&#160;</td> <td style="text-align: justify">Sakhai will contribute an undivided 8.222% working interest in both PEL 112 and PEL 444.</td></tr> </table> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;&#160;</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Agreement may be terminated by any party upon the occurrence of an uncured breach of any material term. Terra Nova may terminate the Agreement any time before it has earned the Farm-In Interest upon providing written notice of such termination. In the event Terra Nova terminates the Agreement, it shall not be entitled to any interest in either PEL 112 or PEL 444 unless it has satisfied an Earning Obligation with respect to that license.</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="background-color: white">On February 27, 2012, the Company terminated its previous farm-in agreement on </font>PEL 112 and PEL 444 <font style="background-color: white">with Brandenburg</font> Energy Corp. (&#34;Brandenburg&#34;). B<font style="background-color: white">randenburg&#146;s contract rights were subject to meeting certain milestones including an obligation to pay the Company AUD$7,400,000 (USD$7,822,000) on or before September 20, 2011. Brandenburg was unable to pay this amount.</font></p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">During January 2012, the Company was granted a variation of license terms on PEL 112 by the Government of South Australia. Under the variation, the minimum work requirements for PEL 112 License Year Three (3) were exchanged for those of PEL 112 License Year Four (4). As a result, the timeframe for acquisition of 100 kilometers of 2D seismic data was moved from January 10, 2012 to January 10, 2013. Likewise, the timeframe for performance of certain geological and geophysical studies was moved from January 10, 2013 to January 10, 2012. The Company believes the scope of work performed during 2011 fulfilled the requirements which were to be satisfied by January 2012.</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Local reconnaissance indicates that residual flooding continues to delay access to lands covered by PEL 444. Accordingly, the Company requested an additional extension of time to complete its work program under that license. On June 22, 2012 the Government of South Australia granted a six (6) month extension of license terms for PEL 444. As a result, the timeframe for acquisition of a minimum of 200 kilometer of 2D seismic data was extended from July 11, 2012 to January 11, 2013, and the overall license term for PEL 444 was extended to January 11, 2015.</p> <p style="margin: 0pt; text-align: justify">&#160;</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><u>Unaudited Interim Consolidated Financial Statements</u></p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The unaudited interim consolidated financial statements of Holloman Energy Corporation (the &#147;Company&#148;) have been prepared in accordance with United States generally accepted accounting principles (&#147;GAAP&#148;) for interim financial information and the rules and regulations of the U.S. Securities and Exchange Commission (&#147;SEC&#148;). They do not include all information and footnotes required by GAAP for complete financial statements. However, except as disclosed herein, there have been no material changes in the information disclosed in the notes to the consolidated financial statements for the year ended December 31, 2011 included in the Company&#146;s Annual Report on Form 10-K filed with the SEC. The unaudited interim consolidated financial statements should be read in conjunction with those consolidated financial statements and footnotes&#160;included in the Form 10-K. In the opinion of management, all adjustments considered necessary for fair presentation, consisting solely of normal recurring adjustments, have been made. Operating results for the three and nine month periods ended Septmber 30, 2012 are not necessarily indicative of the results that may be expected for the year ending December 31, 2012.</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><u>Recent Accounting Pronouncements</u></p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company has reviewed recently issued accounting pronouncements and plans to adopt those that are applicable to it. It does not expect the adoption of these pronouncements to have a material impact on its consolidated financial position, results of operations or cash flows.</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p> 110242156 28137 11637 0 100166 41987 -504794 -211745 -259229 325390 -12635539 495775 0 40094 40094 535869 0 0 0 0 -2244107 0 0 0 0 7396207 1000569 211745 299323 -285296 8019308 0 0 0 0 86666 61256 38342 76486 37697 719561 87463 32352 78422 25190 796944 104874 0 196834 39366 2511212 254518 16875 93458 13435 1336995 0 0 0 0 40026 -102242 -109176 183371 400984 -1006127 390216 15000 37494 0 1601829 0 0 0 0 -1670769 0 0 0 0 783868 0 0 0 0 -2454637 -504794 -211745 -259229 325390 -14306308 -501366 -209634 -254405 330210 -14315223 -3428 -2111 -4824 -4820 8915 0 0 -65026 0 0 -783868 0 0 1729701 416624 196834 3339212 0 0 5152100 105400 -178373 956752 10727 -49606 -3427348 -7160 168216 131190 10521 19479 437388 -8885 -3248 -13624 -979 6715 -4865 5773 -72215 -3444175 0 0 639487 0 0 12696 31567 72215 1406985 0 0 -1447739 37340 0 37340 0 180000 6899660 100000 0 1443831 -100000 0 -100000 0 0 50567 0 180000 3505001 0 0 2000261 16500 58179 28137 0 0 9908 0 0 15903000 0 20000 2661879 335000 45000 410000 21750 10000 231750 0 62190 0 2012-08-15 2012-08-15 2014-08-15 2014-08-15 2012-04-03 2012-04-03 2012-04-03 2012-04-03 450000 450000 450000 450000 1800000 488615 45000 15000 169557 46460 0.265 0.323 <p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">The unaudited interim consolidated financial statements of Holloman Energy Corporation (the &#147;Company&#148;) have been prepared in accordance with United States generally accepted accounting principles (&#147;GAAP&#148;) for interim financial information and the rules and regulations of the U.S. Securities and Exchange Commission (&#147;SEC&#148;). They do not include all information and footnotes required by GAAP for complete financial statements. However, except as disclosed herein, there have been no material changes in the information disclosed in the notes to the consolidated financial statements for the year ended December 31, 2011 included in the Company&#146;s Annual Report on Form 10-K filed with the SEC. The unaudited interim consolidated financial statements should be read in conjunction with those consolidated financial statements and footnotes&#160;included in the Form 10-K. In the opinion of management, all adjustments considered necessary for fair presentation, consisting solely of normal recurring adjustments, have been made. Operating results for the three and nine month periods ended Septmber 30, 2012 are not necessarily indicative of the results that may be expected for the year ending December 31, 2012.</p> <p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company has reviewed recently issued accounting pronouncements and plans to adopt those that are applicable to it. It does not expect the adoption of these pronouncements to have a material impact on its consolidated financial position, results of operations or cash flows.</p> <p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">The options were granted pursuant to the 2009 Non-Qualified Stock Option Plan.</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0">&#160;</p> <table cellspacing="0" cellpadding="0" style="font: 8pt Times New Roman, Times, Serif; width: 100%"> <tr style="vertical-align: bottom"> <td style="line-height: 115%; font-weight: bold">Option Type</td> <td style="line-height: 115%">&#160;</td> <td colspan="2" style="border-bottom: black 1.5pt solid; padding-bottom: 1.5pt"> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center"><b>No.&#160;of Shares</b></p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center"><b>Issuable Upon</b></p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center"><b>Exercise of Option</b></p></td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td colspan="2" style="border-bottom: black 1.5pt solid"> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center"><b>Exercise</b></p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center"><b>Price</b></p></td> <td style="line-height: 115%">&#160;</td> <td style="border-bottom: black 1.5pt solid"> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center"><b>First Date</b></p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center"><b>Exercisable</b></p></td> <td style="line-height: 115%; font-weight: bold">&#160;</td> <td style="border-bottom: black 1.5pt solid"> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center"><b>Expiration</b></p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center"><b>Date</b></p></td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td style="width: 57%; line-height: 115%">&#160;&#160;Stock Option A</td> <td style="width: 1%; line-height: 115%; text-align: right">&#160;</td> <td style="width: 1%; line-height: 115%">&#160;</td> <td style="width: 9%; line-height: 115%; text-align: right">450,000</td> <td style="width: 1%; line-height: 115%">&#160;</td> <td style="width: 1%; line-height: 115%; text-align: right">&#160;</td> <td style="width: 1%; line-height: 115%">$</td> <td style="width: 9%; line-height: 115%; text-align: right">0.70</td> <td style="width: 1%; line-height: 115%">&#160;</td> <td style="width: 9%; line-height: 115%; text-align: center">4/3/2012</td> <td style="width: 1%; line-height: 115%">&#160;</td> <td style="width: 9%; line-height: 115%; text-align: center">8/15/2012</td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="line-height: 115%">&#160;&#160;Stock Option B</td> <td style="line-height: 115%; text-align: right">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%; text-align: right">450,000</td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%; text-align: right">&#160;</td> <td style="line-height: 115%">$</td> <td style="line-height: 115%; text-align: right">0.80</td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%; text-align: center">4/3/2012</td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%; text-align: center">8/15/2012</td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td style="line-height: 115%">&#160;&#160;Stock Option C</td> <td style="line-height: 115%; text-align: right">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%; text-align: right">450,000</td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%; text-align: right">&#160;</td> <td style="line-height: 115%">$</td> <td style="line-height: 115%; text-align: right">1.00</td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%; text-align: center">4/3/2012</td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%; text-align: center">8/15/2014</td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="line-height: 115%">&#160;&#160;Stock Option D</td> <td style="line-height: 115%; text-align: right">&#160;</td> <td style="border-bottom: black 1.5pt solid; line-height: 115%">&#160;</td> <td style="border-bottom: black 1.5pt solid; line-height: 115%; text-align: right">450,000</td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%; text-align: right">&#160;</td> <td style="line-height: 115%">$</td> <td style="line-height: 115%; text-align: right">1.20</td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%; text-align: center">4/3/2012</td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%; text-align: center">8/15/2014</td></tr> <tr style="background-color: #CCEEFF"> <td style="vertical-align: bottom; line-height: 115%">&#160;</td> <td style="vertical-align: bottom; line-height: 115%; text-align: right">&#160;</td> <td style="vertical-align: bottom; border-bottom: black 2.25pt double; line-height: 115%">&#160;</td> <td style="vertical-align: bottom; border-bottom: black 2.25pt double; line-height: 115%; text-align: right">1,800,000</td> <td style="vertical-align: bottom; line-height: 115%">&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td></tr> </table> <p style="font: 11pt/115% Calibri, Helvetica, Sans-Serif; margin: 0 0 10pt">&#160;</p> 4296412 1.03 P1Y6M20D 0.70 0.80 1.00 1.20 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 109629274 110196201 108446162 108847664 EX-101.SCH 7 henc-20120930.xsd 0001 - Document - Document and Entity Information link:presentationLink link:calculationLink link:definitionLink 0002 - Statement - CONSOLIDATED BALANCE SHEETS link:presentationLink link:calculationLink link:definitionLink 0003 - Statement - CONSOLIDATED BALANCE SHEETS (Parenthetical) link:presentationLink link:calculationLink link:definitionLink 0004 - Statement - CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) link:presentationLink link:calculationLink link:definitionLink 0005 - Statement - CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) link:presentationLink link:calculationLink link:definitionLink 0006 - Disclosure - 1. BASIS OF PRESENTATION link:presentationLink link:calculationLink link:definitionLink 0007 - Disclosure - 2. OIL AND GAS PROPERTIES link:presentationLink link:calculationLink link:definitionLink 0008 - Disclosure - 3. CONTRACT ADVANCES AND OTHER INCOME link:presentationLink link:calculationLink link:definitionLink 0009 - Disclosure - 4. COMMON STOCK AND STOCK BASED COMPENSATION link:presentationLink link:calculationLink link:definitionLink 0010 - Disclosure - 5. RELATED PARTY TRANSACTION link:presentationLink link:calculationLink link:definitionLink 0011 - Disclosure - 6. SUBSEQUENT EVENTS link:presentationLink link:calculationLink link:definitionLink 0012 - Disclosure - 1. BASIS OF PRESENTATION (Policies) link:presentationLink link:calculationLink link:definitionLink 0013 - Disclosure - 4. Common Stock and Stock-Based Compensation (Tables) link:presentationLink link:calculationLink link:definitionLink 0014 - Disclosure - 3. Contract Advances and Other Income (Details Narrative) link:presentationLink link:calculationLink link:definitionLink 0015 - Disclosure - 4. Common Stock and Stock-Based Compensation (Details) link:presentationLink link:calculationLink link:definitionLink 0016 - Disclosure - 4. Common Stock and Stock-Based Compensation (Details Narrative) link:presentationLink link:calculationLink link:definitionLink EX-101.CAL 8 henc-20120930_cal.xml EX-101.DEF 9 henc-20120930_def.xml EX-101.LAB 10 henc-20120930_lab.xml Stock Option A Schedule of Employee Service Share-based Compensation, Allocation of Recognized Period Costs, by Report Line [Axis] Stock Option B Stock Option C Stock Option D Warrant And Option [Member] AwardType [Axis] Document And Entity Information Entity Registrant Name Entity Central Index Key Document Type Document Period End Date Amendment Flag Current Fiscal Year End Date Is Entity a Well-known Seasoned Issuer? Is Entity a Voluntary Filer? Is Entity's Reporting Status Current? Entity Filer Category Entity Public Float Entity Common Stock, Shares Outstanding Document Fiscal Period Focus Document Fiscal Year Focus Statement of Financial Position [Abstract] ASSETS Cash Other receivable Prepaid expenses Current Assets Oil and gas properties, full cost method, unproven Total Assets LIABILITIES AND STOCKHOLDERS' EQUITY LIABILITIES Accounts payable and accrued liabilities Contract advances Total Current Liabilities Deferred tax liability Total Liabilities STOCKHOLDERS' EQUITY Authorized:10,000,000 preferred shares, par value $0.001 per share Authorized 150,000,000 common shares, par value $0.001 per share Issued and outstanding : 110,242,156 common shares (108,997,599 at December 31, 2011) Additional paid in capital Accumulated other comprehensive loss Deficit accumulated during the exploration stage Total Stockholders' Equity Total Liabilities and Stockholders' Equity Preferred Shares par value Preferred Shares Authorized Common Shares par value Common Shares authorized Common Shares Issued Common Shares outstanding Income Statement [Abstract] CONTINUING OPERATIONS Consulting Foreign exchange (gain) loss Gain on settlement of debt Management and directors fees Stock-based compensation expense Office, travel and general Professional fees Salaries, wages, and benefits General and Administrative Expenses Oil and gas property impairment Deferred income tax recovery Other income Income (Loss) from Continuing Operations DISCONTINUED OPERATIONS Loss from Discontinued Operations Gain on Disposal of Endeavor Loss from Discontinued Operations NET INCOME (LOSS) Foreign currency translation COMPREHENSIVE INCOME (LOSS) BASIC AND DILUTED NET INCOME (LOSS) FROM CONTINUING OPERATIONS PER COMMON SHARE BASIC AND DILUTED NET LOSS FROM DISCONTINUED OPERATIONS PER COMMON SHARE BASIC AND DILUTED NET INCOME (LOSS) PER COMMON SHARE WEIGHTED AVERAGE NUMBER OF BASIC AND DILUTED COMMON SHARES OUTSTANDING Statement of Cash Flows [Abstract] OPERATING ACTIVITIES Net loss Adjustments to reconcile net loss to net cash used in operating activities: Cash used by discontinued operations Gain on disposal of Endeavor Gain from settlement of indebtedness Stock-based compensation and fee payments Unrealized foreign exchange loss (gain) Impairment of oil and gas properties (net of tax recovery) Changes in non-cash working capital items Other receivable Prepaid expenses Accounts payable and accrued liabilities Contract advances Cash provided by (used in) operating activities INVESTING ACTIVITIES Investing activities from discontinued operations Oil and gas expenditures Oil and gas expenditures recovered from partners Cash acquired on acquisition Deposit on acquisition Cash provided by (used in) investing activities FINANCING ACTIVITIES Financing activities from discontinued operations Common stock issued for cash Loans payable Related party repayments Proceeds from related parties Cash provided by financing activities CHANGE IN CASH CASH, BEGINNING CASH,ENDING SUPPLEMENTAL DISCLOSURE: Cash paid for interest Cash paid for income taxes NON-CASH INVESTING ACTIVITIES: Accrued capital expenditures in oil and gas properties NON-CASH FINANCING ACTIVITIES: Shares issued for management fees Shares issued for services Shares issued on conversion of liabilities Shares issued for property acquired Basis Of Presentation 1. BASIS OF PRESENTATION Oil And Gas Properties 2. OIL AND GAS PROPERTIES Contract Advances And Other Income 3. CONTRACT ADVANCES AND OTHER INCOME Common Stock And Stock Based Compensation 4. COMMON STOCK AND STOCK BASED COMPENSATION Related Party Transactions [Abstract] 5. RELATED PARTY TRANSACTION Subsequent Events [Abstract] 6. SUBSEQUENT EVENTS Basis Of Presentation Policies Unaudited Interim Consolidated Financial Statements Recent Accounting Pronouncements Equity [Abstract] Share based compensation Contract Advances And Other Income Details Narrative Other Income Statement [Table] Statement [Line Items] No. of shares Issuable Upon Exercise of Option Exercise Price First Date Exercisable Expiration Date Award Type [Axis] Administrative Fees Shares of its common stock Weighted average prices Stock warrants and options outstanding Stock warrants and options outstanding weighted average exercise prices Stock warrants and options outstanding lives Assets, Current Assets Liabilities, Current Liabilities Stockholders' Equity Attributable to Parent Liabilities and Equity Foreign Currency Transaction Gain (Loss), before Tax Gains (Losses) on Extinguishment of Debt General and Administrative Expense Impairment of Oil and Gas Properties Deferred Income Tax Expense (Benefit) Income (Loss) from Continuing Operations Attributable to Parent Income (Loss) from Discontinued Operations, Net of Tax, Attributable to Parent Effect of Exchange Rate on Cash and Cash Equivalents Increase (Decrease) in Receivables Increase (Decrease) in Prepaid Expense Increase (Decrease) in Accounts Payable and Accrued Liabilities Increase (Decrease) in Customer Advances Net Cash Provided by (Used in) Operating Activities Payments to Acquire Oil and Gas Property and Equipment DepositOnAcquisition Net Cash Provided by (Used in) Investing Activities Net Cash Provided by (Used in) Financing Activities Custom Element. Custom Element. Custom Element. Custom Element. Custom Element. Custom Element. Custom Element. Custom Element. Custom Element. Custom Element. Custom Element. Custom Element. Custom Element. Custom Element. Custom Element. Custom Element. Custom Element. Custom Element. Custom Element. Custom Element. Custom Element. Custom Element. Custom Element. Custom Element. EX-101.PRE 11 henc-20120930_pre.xml XML 12 report.css IDEA: XBRL DOCUMENT /* Updated 2009-11-04 */ /* v2.2.0.24 */ /* DefRef Styles */ ..report table.authRefData{ background-color: #def; border: 2px solid #2F4497; font-size: 1em; position: absolute; } ..report table.authRefData a { display: block; font-weight: bold; } ..report table.authRefData p { margin-top: 0px; } ..report table.authRefData .hide { background-color: #2F4497; padding: 1px 3px 0px 0px; text-align: right; } ..report table.authRefData .hide a:hover { background-color: #2F4497; } ..report table.authRefData .body { height: 150px; overflow: auto; width: 400px; } ..report table.authRefData table{ font-size: 1em; } /* Report Styles */ ..pl a, .pl a:visited { color: black; text-decoration: none; } /* table */ ..report { background-color: white; border: 2px solid #acf; clear: both; color: black; font: normal 8pt Helvetica, Arial, san-serif; margin-bottom: 2em; } ..report hr { border: 1px solid #acf; } /* Top labels */ ..report th { background-color: #acf; color: black; font-weight: bold; text-align: center; } ..report th.void { background-color: transparent; color: #000000; font: bold 10pt Helvetica, Arial, san-serif; text-align: left; } ..report .pl { text-align: left; vertical-align: top; white-space: normal; width: 200px; word-wrap: break-word; } ..report td.pl a.a { cursor: pointer; display: block; width: 200px; } ..report td.pl div.a { width: 200px; } ..report td.pl a:hover { background-color: #ffc; } /* Header rows... */ ..report tr.rh { background-color: #acf; color: black; font-weight: bold; } /* Calendars... */ ..report .rc { background-color: #f0f0f0; } /* Even rows... */ ..report .re, .report .reu { background-color: #def; } ..report .reu td { border-bottom: 1px solid black; } /* Odd rows... */ ..report .ro, .report .rou { background-color: white; } ..report .rou td { border-bottom: 1px solid black; } ..report .rou table td, .report .reu table td { border-bottom: 0px solid black; } /* styles for footnote marker */ ..report .fn { white-space: nowrap; } /* styles for numeric types */ ..report .num, .report .nump { text-align: right; white-space: nowrap; } ..report .nump { padding-left: 2em; } ..report .nump { padding: 0px 0.4em 0px 2em; } /* styles for text types */ ..report .text { text-align: left; white-space: normal; } ..report .text .big { margin-bottom: 1em; width: 17em; } ..report .text .more { display: none; } ..report .text .note { font-style: italic; font-weight: bold; } ..report .text .small { width: 10em; } ..report sup { font-style: italic; } ..report .outerFootnotes { font-size: 1em; } ZIP 13 0001354488-12-005811-xbrl.zip IDEA: XBRL DOCUMENT begin 644 0001354488-12-005811-xbrl.zip M4$L#!!0````(``1=;D$\[K8\LC$``'-_`0`1`!P`:&5N8RTR,#$R,#DS,"YX M;6Q55`D``VC)HU!HR:-0=7@+``$$)0X```0Y`0``[#UK<]LXDM^OZOX#SA-O M)55ZD**HAYW,EN)'UC<9VV-G=G<^3<$D)&%#$1R`M*W[]=<-D!0I4;8D2TZ< M9&K+ZY!$=Z/13W0#?OOW^TE`;IE47(3O]NR&M4=8Z`F?AZ-W>[]?UP?71V=G M>^3O/__W?Q'X[^W_U.ODE+/`/R#'PJN?A4-Q2,[IA!V0#RQDDL9"'I)_TB"! M)[_]^RR,X9D7\UL&3PV:`^(T'$;J]15@7HM$>BP':/4=JV79+6);OSE_7AVW M&_=#0'=,8WB)+YJVW;3;G^SV@=4[*O]L;QW%TT&S>W=TU[IR&D*-FR[+LYK]__7CMC=F$UGFH8AIZ;"\; M%?#P<]4XN]_O-_7;[-.%+Q%YAL-IXNL;JF:0D<`'OE^@!-[Z<3Z@^+';-"]+ MG_+*3SOF4YY]ZK.Y[Q3S&B-QVX0735REL=VO2V-3/ML%RVB_?#[;FUA&^WGXW/VV^+R^/#\# MGZU.W7+A?]^(W,@VPT M806'E+_R@9C[*.`>CPVMQ.?PI4E"TRC]`-,H/PG8Q?`$PDLQ9>R:R5ONL>LQ ME>P]Y#_^D9A$,(SJ64.$Z^G?+H97S!.CD/\?\R\U;X^$BM7[Z16+A(P_\I`- M[KG:^QE#Y(-%QKUM5M)8G%^S>H+;"'MP-7<:]E1(S/L?$K.9Q+S_7B7FZ(?$ M;"8Q1]^KQ!S_D)C-).;X.Y$8#$O=%Q8CEIBD)[!+)J51:/O%,BF;P(ZW=5YB MME':UMG]WI?UTO>^K%WN?96]V,METC.Y>I36/_]%I03@@]`W;NO;#.RK] M3].HZ)NK9_IE_?/N#,;RRLV/)7_F)?\*:T])R(V8_'Y]O+#P$T95(MG/:7WV M`+[)@&6ORB@0VA+X.KQ62U&D3-`?;8P#Z+M<@L?GMR!QB[S%L>=8K<7&AT6! M6X,'\S1602T@/6:AF/#P,;2/\V4>;Q7@['V)"U4,]1D_.-$R?<5&7,6H--AD M05+AN<)J\D.UX']O@G)RHH%9"JV([EAX":HT&HJ5L4#4\IN!7QQ>!=9DB"=&/U>&7]3PI="* MZ`;PUL@K8H`/]B M0?!+*.[":Y!R$3+_3*D$#/VJ:,]%40"60%M$^T\1)"&8X.DI#YA4&Z*;@U(A MWH8/9LN`AR/3NK0RMC_0"#P&;1&KIN8(V#T2LAP]^KT.60,F19E''%/,9OZ4W` MU#F+TY4HH9MKY2!H9_4+=+7$9QX'!JMW>X"]W>NX;YL/@MX8?]8E\1!^I]?K MK(G_4K*(R(3Y'SF]X0''^3_5`+A.KU64R]51;IG:E1C7ZSF8N6V!VJ-$ MQ0(2A8%_BQV^3^6C59#9:LA/(&`5UG3MSOHT[$Z.'E^`+4I%WVUW['5P'[,A M@Q?^)WI?^/A0,T:F@G)0M^#^?SEH7K0WX+X M,"(JG@;LW=Z$RA$/#X@5Q7M_&\6'^+(9Z=]^LIWT1W'`$+`$)@N^4`5 MF6T\:UJ2YZ>*3J+#GR`\?5ZT%R$Y%[>F]<>NZ2LC``HX-XK/*8A1)!0'LTP& MOQ^_:M?`(M7`(&FB7H.IAT>=KG[TAO"0,.5)<4=B0<@P"?W9I"!G(KZ;/@G15 ML+80@B\3[<4D2>(A0'7/E!0(;2%ZR5H`@#")@.FEE4H!+ MEA:H4PZV.X>*O!=4^IH66,!C+ID7"U/?5\`^$!18?+W:V);";Q+D$:YUI]-! M42&F]0:?X%>>-D(P(>0:/)N)7@T!<9`3/\-1@P\@/\1N`E!;30)0''H\`OFA M_BU7\%&#?`*P!0E.\=TQ"&"D+L0"C3?3XO100&C7\0-S5*OWMV==?J?3&,^-:E#MV#T*@I0;MW(0KD."I)B@4P%>0$ORZ M(.03+(L1S65CB(UDBE"O,3>E2Y4$V.X*,C\6*`X0!0B2*H+)F\VR:AQW(+!X M)0O'BXF8BLD-"`*(I:8"I3PR-3B21"#-/@,V^&8XMFK*:NKB(G13^P<:4TZT M',.*W9GT-2SUXYL]YS"/;\/$?RI9/+`^"L3(U5($DD;]"?AB;"7$RZF,13$' MN9,#F*4I3N\/V=*Q!V:#`4>E/NA#\);C+`%>=7J6T;B M%WWS=R%W>>Z'VP+808%,,B<8=%`)T2TRVN3#WUTF:%32J3*LF4YJA3/V,.5: M&J4?C3D;DA,C\&!U+TRH3B`+A)_:MC,Y01D&IP%!1B#NC)!G<'00FJ&)P#DE M*+II,M&RK#ZH75C_#209#[F8\-^44,WZDT8/D5474T]=% M6GOZWQ'U_>S?ZU)QQ_UX?$`@VMO?F^%$=#*#=8O[%AX-LD6]$7$L)K.O,;[1 M(_PB]KKQ5?AYX!L!,&S$!GP]Q]BO`%'!B\KOP!XB'\)W>ZU\TC="@BS4#7V` M.*"P>';#!2XH$7"_3'(&:VO"[F%Z*G,S<(._G(O&;#9@"@J*?U.A^,]&ES9/ M*$^_@ROY\N2`6DN/JX*UK*3IR5+SC4E7QK8OOX"7&(?N9LV^8OZ?<@D)+1Z+ M^?(KD,H"*O5ZZ_"PT7[A*W1R'W%)EQJ49Z5EJ9P4&*M_E6LYXD-(<[W/(RD@ M$JJ#W1+R@/QT='1R'S]LUABO\P+B2*UMC#E MP#8=V5]*1MLU6=_N:=@%*UYM@0-6H_L!*ZO;^\>EM+ECK,G)#-=H.FE4GM()>+%.&WHXFL9:\;PG1+D7Z M`;>RDE`?_1#JYQ)JN[&K27Q)H6Y_=7;Z>)<2L%Y@O46`&T=.+T8[6C^T8\LF M_TOI0:O10KGU10*I[PY`+M,%N]:SMJ0-S^OBO@1%3_^N0IZ;>DN\]&CWV_`[ MKYS3*`HXMCG!L_P4R@,$;.Y+`D>9=]9^PTR4`B"8>FV/*V<8[YI M&=(E)*SBK\P]30+69E_95KO6Z[9UA0\_S.KT]:Q.KT?4==540S=@L39J8.:% M*0W.:EB=[Z)<^G!-T/05Y?WGFA1\SPNUU:Z[4+^N+.%7%OQ,)&=*LKJZ]V`_ MG&(&3;%;8+UFN*Q@;O!4D5[=^J;[.UIVK>L6*NM&";_?SC<$C/!R3_Y`9(]6 M+CV^6C/%Y0<%CYNC`P^5G8?2]'R!N0!#",$4CTP_)G8ZD=8^"4$>)+ME88)] M=FGO&[S$[F,C0KH%>;%7%"O-)Q^);;>T.<'?V^VV$9DR*NSAS(T1ML$!#FS] MH`0,B-W=+^&M[K;5A!P)[$TG[ZF"[U*:82GH$$:#$@9$BBD-L'>]1O#B16%V MU/%WO&X'^V8CO#G/G"'`UFLDW#/G@P$W^(,8>U+@N5+"XU0;NJP)UF#7A!@* MQF`TR0UC2(LGP("F?@K$!$PI`BJV"XN(ATA,*%)=\2B6_Q$5B$S>+JS8PFK@ M%)'4J1Y(<]_*3<,B?,$G&&`8;4)1RP.1;URUP"R?LAN98,>=W80=L\5T M:DX[;;S:@#=F"2H[`5.&=4O-?]J-+N?8(*[H>BQ9)-,+9F(C,=3HV[56OU-K MPX>&N;E$H.9GG!:%LT6:OPM$9U1D?8PX.H\?7]D-RS0TVKU&QR&F4=,(P.,- MC=5:LN;1C56;=;,N7WUU[5$:#&=WZ.`=MGBDWYSB?\D-OF>/'&.HS1\9T.VR M15'RJ!K/-\PZ;MHSB$N]>(IC(933>*MZ$PN'`\AKQ5BJLQ!%M=Z`G(,C2QN- MN7:ZA3,1NC=LF&#+<7I,0;=8ZN,<43P[C8%-Y[K?/&]5+@`QG6AZEEQZR<3\ M"5C5T&0,C#/%1LVA8J;%WFW7NG9?'VNZAP]5QAAT7Y+A^2;CO@9'%U>:A&OZ M>4QY.5:1^=^X(`*E##NO06`\[_=QQ%E[P`&!^H&IV#F\7 M/?=1DSEHU.CJ^)/&=@(A508K& MR"7#IGR63"!>GD6)'\&R8Y1(7D,HJ_0IOD&"S?,!IXT\U.7F6!/D^BP__-6J MV?T.4=C/S\AG'@BSW4!>N^U6K=-VP)4+T!KJ`5UO&EFD7`)%-!C'[56"Z0$8 MR-K+8-Z#&H$3,D2;7088I_^HC.FCULD=^+;Q';"#R9`,P?=_GKGP0C"=QMWZ MX#E^<(W#"M,O1Y:Y?GRJ#@4$#_)=CQ'5T5=V<2*2F)@[#D.]YZ$2;UQ+3\#A MHGFS"Q&K(Q^AO7`)(!J[F3BHY.8_,`3LB6!0P!/!=))LGPZ$)-TI=]'.' MK;2&&.D%;<$S`SX;ZO.GF#@6#@.?4CFI@S-=>OY/?\G-":O*H$P2&GSWN';VHS$0SK1Y!6`=!04WB597KD8^R7@*$3 M*H#0%)X$//5)Q2_-D^*WY9164Y0IZVOD8`%+QI'"<)/ZSGAEHFSTE+KAV[A= M?=RAH$&S."1_-J'&NX-O-R98.*Q+_ M/6C'6G%A3B+&8?F>7J9$F'F;V,>TNS]3O&B"M-(V/!*OPZ]4WN;#,`0)\0?X MC2SHR+`G*M\$S.DWU`(TLUNG:9J/ZU+C/LW"P7D8!#=#S#[U[-!A:M_Q#RJ$ MZ5F?QTX;ES;%,Z+!"@13Q=/\JK0;EOWACV(6N''T"BGZT.Q4FN."H32RB M57IX]P_)RO-^>++]3K=?V?3R>+$YZ[;<"C7F,I!4*$AZ$4B_D\J#.=N(I;(H MH)ZQ>.G-(&D^BU&:B=!P)PX-`LW^SDS5:,)8Z:4@X=_)Y#D5`U-]4AGG<;DZU`BDBRFQ7.:>@SJFT]CJFFL M##-8JDT4)K._D(KI:5,OSU;>'.KPZCF+YC^4YZM5'K>L//DM.L9#+R@.RJ:$ M-T/,Y.>O[*F:%,8R>,4(6PSN3+::>P`=]N"]/.4K>[9W>0\2S[C>_[_4-L-U+:S;;5=647;7X>*HL[@+202Y:AX!8R#'[5=\"Q3-6O9*3D^ M2>@-B)P(=3B7NJ1XS*6?B['NLTBU3S]+5:WD4%&?L]WCH3X+5YX7?%*IUJ9` M],WK=>/%Z/1N4I%"?87K1#DVMU>9O?ZT:0`6-+_](JWJZ=T9&%`58.E<)!,3 M9+W9LP?9UMNS:2_%+-7]RA*&G:`=%/B#PM?J5NQVZVC7J1^;[J64LSKZ+.S. MW;`1J.?_)@%$SVG=W]2^TEO'P(`8BX3<+I2'S)4B'Y@`30`;XT%:F.\POB&7 M>-.8WD_4>W6Q$)_S30;G.%]FEW#@G[, MXJ)A"LY:OMNQP$IU,Q><-\"]VIWK1`MQJUZ?H,,*='&*R6\I[*RUP&G->7/R MPD.&N5"S69+.:;9>X8@*6;+/'WS?+-P2N-MB4GMPCV]W!-&,M6S'+0-3%NYK M_G%,2S8HR[;;P(I;?HTF[U'Y@(S1=`-0HHT=Z32*W M2P8+7"%;N:DL"EV25L9V4T`R'BE_Q!RL`#?1IQ`-4B8'V[<$#"]33%S*RB@C MCDG?V(Z8,QDS^;"9/?X.,(@>?+33'^`DQ[.+[_V5$/&8!L8#6!)1PO`S&45I MH49_=090-#R,4T%OH/&8G`(#YBNF5HLT>6P=2L.83E3QM.43"&X&5P[$7XV8 MI$T0#[1))>\,*^8%EWW3<,XI"1^GJS1CUVN1`<4)_TU(?G/3*J,9S5,:V,)L M668Q3.DZT+0M89WJ[EZ\780+L(=:[`-Z"M!+'G;QP[UJAW'#T:FB+ M7A1Y?'ZWT"D,FNU@:=1P@=)OP<;[.RKK5H9[9Z9IRO&[BU-9/9-FHS%)W,@4LND(?72'*T&M%98PV0TYPEBI9-:'F/65Z01Q<$PT+PE92J+/WE6L,&QBF]",&@9^(! MA,1*2HTVMOC-'.92N+VY2<1.T/(V]L(VH."JOR6RK)G4!%CHA8C"P&3)*:G;OK0/MA"KW>3*!HY%Z(3AD\/._AG+MXE; M3!5VAQ)\I6B<4@Q\<_PF[$29'&>AGHF",B=M^9N"L(>TMHD\A#">U"P'=V.DQ-;#(5-3CS39*$P,>9%08A.9[J*!LRWF@-U5:_B(A&,$<,W M"FBRV;=7RL=[W_\MB&DUWTNI1WZ)]>R!]A3`-EW87T7`C.7:BJ$"MHKO\3I? MQA&;^>W:E])17XYZ4DNBH2$<,6N&@A`38GC]@/8/V/.U.R%@B&^*?)T]!#&V M7F<%=PG+O&S]ZKMDE6H_V3^WM`3``V:!W0SH,$*XJ:A$`'N_$4LQJ[@%#:(@ M&Q\3O.!3CT+!;Z.LITN:O[/.`-__DNP(Z?$^[ M*-!2`)(L']89[ZH`6H>OT6R%8[7`X2WA"[&8DB@D3_S,RV;)LD1!5XRCPP0F M)F"HB)@/NV`>*N;0J%:U2-G"16/1[>J0`TD2Q?.;.+U^2V;<&Q;'09AEU#<: M@B$[XX9&D)<7)*8149*4C[2%6*#-NGY$L,$%U-V!/T<@#[AWTZ)I9&Q9/7Y! M7;`P0+1NUH_]:X5U+*SO0/G&,ZA6CH\/1 M>&Z)8#WNWU8QT4SQ(8:MFT99H!MH6?A5^\G]F16E58@*2:SO38O*GI)1<188 M+;8CU&Q1US>I.L525`TP%<.@:5$84M,OGI91N==Q]NA'%_&+\&L46H9R>E;A MR6E!50:KNLRN6<;W%I]'`0F^PCR7D+JK812LH,IN%K>LJ0$].@86ZHWRT,.7 M.(`M%^657C["1]"LF#91HY;D.[`H8W2O,^,%"\'8,8=\_F;>?L"3954R*N2, MFHF,6M08E96,0@W\%;V3CW@9JLS@(CF]D7_>*)O#G/.JG\022W=YJ+P9D_H2 M4VQTA<`B(C'5479?P`UV2;>DJM:#/TN%?9F$VJ?W%Q>W(FW4ZF*ZY0SA-_1H M+Q-:Z&FYBG@!?$KN5Q$/6G,/\I>SSV?<^L5'W5B%'A9@2Z@+@+,$YX83XOYN?@I4LZK6[`Q6 M[!FLA_2$IAOM\$HRF`+^&&T+LPT#%!S]>3DF.G#76=8)#,K+E5- M<4.,37G[-@S?\MS\1&C`M[(E\(G<&/X]^U8/2+$&#GU/Y)EV=9JQ\FO>DZHZ M@2B@98UG5+J7<`F@.V$P3Y8YOQ2S#%EL$X;=!6=5G1RH-3:Z)!D5!T>>=WJ=_,OG M*Y$\6-JF9U@3X?%O&*KK\"\?&7\YO&&X/8?776#>J6YO'5[OBWPW8PQ=-URW MW_AZ!\[8AN_MX`QKH_);DF5X5[ID'@18_YM*XSI>J+8!.75T>^+;%93=9)4! MG4@!-0UC8CO[!VH('.TB.J>FXYNF?Q"@$QF@ENE8OKYWG%RUG>XK;YBNY0#6 M(5"%SD0JU,;VG'G*4GJ@JR`J*].VKHM[Q"#"4C*JBK"TT#F6X[E^ M)\I7F"H)UR7>]RKX>LU:;+XE,5F$N0IQ$Q9]!S4UX/I*Y/C@9"5WW^"DI'N? MX.2W7=.T;4.?],;X`2X588KWCIM%BX]9L5[LH*8&7%^]&!_<`+W8"[B^>C$Z M.&F]F%B^:XIJ(0GQ/?-2P\]$=\?3:05,-1"GE:%KSXR.4 MU1#3]RW3VC-"*34Y-3W']-T]0I16%D\W?$OW>D.D9M=OP31)/Q%:6<@_I_KT MV$AG**!!MKUR0`-.B=$`]3T91@$D+^"N*_J).H."\V%!:.POB-X1-?+L&J8C M8&F2Z`E!2H(MS[)-M1!D97;BVIYB+DA[5B:N/U$*0=Y*,7S'-;ICN$N#)X+; M\C7&-C%C#0T:A3:)-[%=X33=2D\%.#FQ-2W'W!/MH&H%YBY6*&.R#CU(/HU)SW0;MJ&!VHZP4;U\S9=]0 M977'\%TXD0Z*5^[D\"W1G-@S7&D%`^TW3,,<"IB_SY2)'U6A6*9C.X9P^6BC M,P"+E-(8KE<+&"B$(JL4OF4[(W%%5MX-R[;&X8JT+!N6Y?J^))CW<(9D&("/L!..`>NS>`?>^U>P$HK1VVKION M`)#ODI2$]_$E*SI=WU6]T'$H'.DM+1>["[XJ26LP=-,4;Z(2]-5#ETMT,'3? MF+C'`%W:VO(L:V(<"7+I.+-G'P'R'MD1\!W#G`S"7KSGE*VB,&]FM/5403D#2-7-SQ,:-I$M#TK M!VN(>-G;O,K+^4C@@`#)N\A9,PA,:KU+6!H^#,G2'U6'AE7AVO>$>X>;7^6$ MAX2P7^N$>X?%7^.$>YQM[D2?N!L3_Q3.NW6HXKR\B>'/RR0+(C!NVSY8D%2= MZZ4$U%ZGVCMS[)5-=4@>VNN;:N^LMM0^7;8"5D;D5M\ROIF ME=_2JKE][E0#(1Z0#4IWL5?*!M4[W.ME@]+=[W6RH4?VL.W8M>JO?7`#?E^- M.$IY5(U"'_+#BIZ&D1]UP^;$MW:\F+6P%@F"@E#]CMYHFP MCZD\;$$2C5IL>`N]X=`DI53W73'*/AZT'A)LV[JS)VARTFWIIJ'O`5DOR3<< M4TQ^E@#'7MV^611M3CX%.;F)L<+U(I[C?Z[_M0J?@HC6HZM0#,LV!1V5(3\" M=.GMW3@.Z-**97NF?330Y=+F`;I^%-#ELXU]PQF&G/KP\4:*"#Z3/(\("]I^ MB.=DFI,Y-DI0=#GL1&LPL![WE+T`D]]V78?&V*70"=8U=2V\3Y/5\F.2=_1$ MJ'<#]$$QXF2&W6*/:S+R$M7BGU(Q)=Q;;OD[CF_77S(L"2W[.%W@,T!AT47P MI7M>L<@-PC+ZQ`:(WU%/3#Z(/#']B6Z,-+WV;%,EC1X,UQ4-G79*_?$,36A6 MC$=Z72W+\FL9P-L!T;--*)@=K2Q\-Z%AD/I:'>-!DF]Q`7<\0Y<"UCW%Z$N< MDB`*_X_,U51(.+8N[(TR]%5CE[XI&7`*3ZRC`"\M([[C3ARI-,K-V#^2O..F MKT9D)F)27'?B:F'+WZM]5WU+1L M/)+T8OZ$S7_5^(TFAEO/J-E!5`U,Z0/?]6@:Y9YQ]BB?,`Q?,3]YG]'L-EAC M$@\V#9C-4K`$?PN#:1@IW"O@)-P&O0N0\:8C;R/:$_]HIR-?>@"GI^>-/Y]; M;#0>SA46=IYZGN=L`UXGJ0*B]'ECF?96WBJ'V",<8=6N8,,Q?J+ONJ*HJ#E) M_.WJ)I`;C$UV?=V)L54"%6*37UC;<_N"VV!=L(CK35`%0'J)7,NW ML8'Q3A2BNX_^.25SI*E^13I0&@AJH#-W%%#R=KKI^FXO8&!=T2;R=PG_0M-1 MM,;.&O"7)7TD2L&J6H;CBGUTI`"HAR_=N*6^_1X8OKRDV+KK>\HFT'$#/UC0 MJ#.6T2>F.&AT-!/KDXAD@^7E*YX?/;1*V:6WAGF8KU*2@<')GN%#P+=!FL?X M^T;EL(JX4L7]ZO MZ_KA< M9HIM>9:A`MR2&S@WBS'6]G3[XFXFKA*TLD7?"]Q>W3"4\_A#EJTP8G&S^"V) M[^](^CA"9Z?=!-5`5"0`(T*43V30Z]=$13"%1[CVLM8"/24`AQ[O>T$I;^O! M:NOZANV^$\R.1__!+J*=L8P^,<47T:.9F'R?2QW;G^W(7APTO9<9^ZS2L1D4 M46)DNH[>]$UV)*\:NJR$.9XQ\8\"NKP,O7QKL2]T^F@YR?+;(%227E=+VZB& MEB4[8+L80%8^I\W7O>V4J2.!)K)^H`^XODO2TL/)?>4JPTC;*0T$U=?Q,R8H M^3N>X^M6U=JM'[:;^#*)GTB*3?#!'E2;0M0";2,])0!EU]746_DW*DCY/=)U M#6_B#X*9M7WC,TF?PAE1]=*&93D-;NZBJ@:G[*+;!X$IG^%E-(53'F?;%WXO MG[I7M?"F,7%V:E&=K"JHTM>Y+@H_"E1YM;<&LI6G^UT&RS`/(M'S_R$>N<9$ MDK1JV-+Y8";-TCT"Z-)2H@(V?#KD;66"O&[65\^FVZ>Z]4_J.KAAC\7_3AZG M),4S%/_LG6)4OV6XX93>[HW2I4#)'I7251]*[\(TR_&WUU]).@LSS`'LMUKX M9TZO;5!55-\>A.KE0:A>]:?Z,3F#<[P\X?'O7Y;X+@C].+E9,`J22UWM&FQH M<>/X\/$=MX.*_:,CAA%QOWVEN"]?*>ZK5X1[-TCFIQ^"4GC,W%!2).UY;KFK MBX,W73GU-S_1C+MXQ,H-58XL?M_I0DX!M#ZMZ66@"=>AF\6'/!L4D-HD3*[O M.)/:U:M)JS^<+0S:I("N[>K=T?Q!PON'G,POX)(`=X/;-.Q;''B[`9!^9KJ% M9+=2ZXUGN_1LQD,?)>Z(YTL=8^)8]!?,)^<:+!=3YSSV<4 MR6$S0"0EW`<\76LX-YP0!0*G`\P=[A#5K*HU.X,5>R8@U"<:^8JLTX), MFX?9+$HR&`N.%Q*"&.$Y0X3EB1.0)>05-L^A\\IPI9`!(L)R(`J$?X#!S1/Z M0[M@"0#INN`GUR1(-;A^PN>NR(P:&9IEG&AX&2]8-"]`-&3+/<^TBSA><9%E M_>DU`/@.H&J&?OIWH!W!UZE\X0"P'G01.NN""#E[2%81+`2("@DH)OC.GZN8 M%N]3&A1&_I!D73A06V<^)5<_;\ZYG,N9]H'])EG"N0<4030?2X?."96C8(Y* M3\?G0A)GX1S3-K48N)ME0;JFK%\$88K:F,%'Z:*>4,0AS0+6`#F)UDB`;T`I M2CTVD14IG`B2\QC,R9E65J;#%[)5Q$$42YT_I(30:<=A3#0XCF!5EC1`*XSGX8R>^H5Z>+ M0O),<*><`7I<$NIM+/;J:HL6YTB7?AD%,=TF@GD"VQ)3%KILN-+!<@DFWN1+`SS!&G1;3Q(1):%#M:B%,8D;WB)#U$VQ3 M4EJ+176BD"N@DE3I$"!+LR![T!91\IS5A*;O2K?UI(8==I42?C-YT0[H(DUQ M?Z9#OEU7G^$5)A?/03H_3D%B"Y=ISWCVW,,LD/G+58IY1["X"=]$":BD[FL? MD_CT?V"'#Q`NB)'"??H_]W\M9&+K\-"CB:F/>1"EG?A\211G( M%JPW7E;HS\M@/B]^;O)T%XKG<)X_(&[]A^\JFD@N+<9Z0N_L+(@*1D^3/$\> MJT^C1-%OS(MO1+#OGCY0FQ>&-IP?SC4$=/K,?S5-HCG]/N?PW7I)Z+3SNJYQMI8?H7^L3[L@ MH4`*ZL*,VQU)&3$8?XK_^)B<59.%G8+=.^BLI\4'!<'9.[["J:&A5^-X8!7^ M%=Q4U(+EQR,$],9]J'4_XI6B80`-XP#'LU9"1$+1BFTZ M?OY-%K&*SAW/(FX4*8'1])^IE-5QKDV![_F\,YP581?O,\T.8$ZEK3[>= MY6VO$VVXW(]@T`[>./:(:3BK.NP+$IN!=PSLZ:7V^T0UIH)W,"1ZJOCE4UZ-BMNOZ`R_.I#4[O9BCN^^&.,"\0UO$N8QL.??<)/H==YO MVEF&3[7SR"KD=N,&V:;:YIF)NCU/5M.(C#G57M0W*LZ)IW?<7-0OZG\^MT4% MW]#(9>U731>DL:+^2Z(G@*IUHGX,X.VUZ(.%_Z+C<&#NM MOV:L,,;=[<$>8T$R1CRN:)M*><8R!\W_^$>"X^47,O]TY M6]KT77OWVS\#4(_(ED;R9!%V3::5A]/=9*?29#^1 MQR",X?>7P+XTF.6K(,*6.V;'#(Y-O/WKK?$/]W=3OVKP;K^3:%1""1PV>I>K M;$WTG>AEG91(;#B.E^4G6W%X8^%X64ZR77?&PO&R/&0K#G,[#J&=O?"T_25K M`P-R5?6!N24IZ'8X`WF_"J,5R""EJ3A_7:^UV>B):>S)]4V&/_[)[2S0?>63 MV_[T\D$GU]Y]J7BW_-#:UPO=_B:L7B./><*C:.F13UB]YBJ9\'60HOF%*E^8 MO^)W1M3/'935`%6A5^,#5:0/>P&J0HXE@3;N#.RRRAT!PM5BL.ANLD%UWS5] MGFV[1JN>=3SVJ)'F^?EV1/7 M52&'__WFZS2-PE_P_^''_P=02P,$%`````@`!%UN00XJ/T-""P``87\``!4` M'`!H96YC+3(P,3(P.3,P7V-A;"YX;6Q55`D``VC)HU!HR:-0=7@+``$$)0X` M``0Y`0``[5U+<]LX$KYOU?X'K.:2.>AE.YG8D^P4+=&):A51$>7L["E%D9"% M&@I0"%*6]]=O@Q05/?@`J0?AJO7!LBETH[N_!M#=`,D/?ZSF+EIBCQ-&/];: MC58-86HSA]"GC[5'LZZ9G5ZOAKAO4<=R&<4?:Y35_OCGW_^&X.?#/^IU]$"P MZ]RA+K/K/3IEOZ.!-<=WZ!.FV+-\YOV.OEEN`%>^_MFC/ERS?;+$<#7J]0Y= M-ZXQJM)HL\&R\8=BZO6Y=M=I7J-WZ>OU]U+UIK*;07=?RX4OQ1;/=;K9O MQNV;N];[N[>WDIWXEA_PGYVL6NN?B/R#2^A?=^+7Q.(8@?THOUMQ\K$V\_W% M7;/Y_/S<>+YN,.^I>=5JM9M_?NF;]@S/K3JAPHXVKL54@DL27?OV]K89?ALW M/6BYFGANW,=U,Q9GPQF^)1GMMR3AY(Z'XO69;?FA&^1V@U);B/_J<;.ZN%1O M7]6OVXT5=VJQ\4,+>LS%(SQ%XO-QU-OT.F.NR^86%>[S]-*PV;PIFC0!IF". MJ:]11Z<^\5\$9MX\%!G4"'G./#P%1N#!=0&_\`_1\2\RM/[+`IR;D_G"!;,T MCY*UPRAG+G'`$9U[RQ66-F<8^SQ/T%S"BT@YM#PPU@S[Q+;X@3Z&'J80V]2PRZ# MY)22&<2%@?W)XD./`7`^P;D6S"`Y,=*^6.\T9RG&!8<^#1@17@^6V#F6@%F" M^K3RSN>,FCZS_X+.PD_`$#MP?8$IEP*]"(]3RC["KA@/,.OX+V//@IYL&7%S MR$XIH1E,./X1P%#0EV+`YHF6UO[,HWH(4XLM,88D2,_LF_4#QQI;$S=?\A*L M+C?+&O1##-3[/H\OA)Z2[W57N=)OZPO?])0\;20 MKM3.%%'<)LKY8R?@/J2E7IRM9F.8VKKBJ4(.KQQ=E<-F2ZO\24*E,9-D_%,&IG#HY\,G5&21)"LFHKAU=8P)DQ%ZS']1\!\5]2$$IJ M6.7<^[,,%>YMITVZ!\TJ'NGI]MZ9;5.T4\Y]-,1!N&855=E'!]?`,\F.RQ%')O<^XJ%\84YC8TF/3 M8EPJKA1(PEK.-LIA/!*5>(H=W?(HH4]\2R]8LXA-TNMN^81R2-Y4BZ2\!90# M;RN4B/=:9);J?#)UPMU,O5)BX&)X51,>-$!O'JD5 M0,"`G5\KW(N+CK.*4T.:,R>4<#_:IET7QU.FE5RJ,:1=/TB)$";J*0_T2B$H; M0ST<-3=D#DO8#);/@S,YV9.[+''%(7\)1(N91;DY>.BQ*>8\K#`\X-1J]F$S M.:3>*H14FJK*81)6!/K6A'GK$[=KI=+`R6@OA]([A5#*55X]N*:0YD-JE71J M>Q^IQ*9R(/VF$D@9*BN'#X1-2^Q&QS2Q)ZHU8KG-7J]R:.00>Z\08E)&4`ZZ MGY70!S"`.+Y-:``QTV'FO(>?#&'%29V\;CL!I"3TRH6/O?G"(EX4Z&;<4K2/ M8QY5Q4E=.1`E;:$>B/$^=*0VI)UKM[L'KYRFUOISJ2K.X\J!*&D+]4!,N#$N M*:",6U2N@;_U;E#(FXJQ4T&WIL2 M"Q8#YDOF)^D98#EN%5=/C_.,(VUX2I](/BDH^A;!O8E]6%>CFGT/5N\)+)`4 MI\[9^605UU6/@TW6*LJ-V?PC=8_4P]$-["G0%F-1\3F9XV`N8ZWS#\FM[;,R M&XGEMQ'/=D[F.)2D[*'<2(0P$%R'XRZ./GMTZZ$VZ5L:6305'Z0Y$D49>[P" M%'>?A",-Y#Y9Q4=L3HUELE5>`9PR3]*0!EF.F1STMZ\%^B(65,XADD\UIP"> MUEBZ8J$DHMDF4`ZQ0P?76)^3#TTD8%B ME;<$&8^NO!7@J6:]-0/YO,I;87LJ-QI@*0VW/\9,LW\$Q,/[B<^+..D,WRSF M&4^:+,A$S0JLI!^4LYAZAQ?#?;M(`T<4H,*_. MZJUC!1BH6+'.0HSI]KND)*'-)EY!+3EX+QT ML%D*SC(05G'"-.L5A)LSI>_$RXL@4G`9AP@:_FDWT+UF]L)3I,.1;NJ#KB1M[TO[[L&,A_O3?WK(XQ3I'\3Y[_/+J?,VP\W(E_)3C#H M33GB1LV;I/EJ MS1/%3$-=0[8HXHO>K#FC#6M%X-Q_<^)&T;?'X;GFJY:6&;@>K/BEU#V`=QWA MB%_B_>=PY7]02P,$%`````@`!%UN02PQ79X4"```IDH``!4`'`!H96YC+3(P M,3(P.3,P7V1E9BYX;6Q55`D``VC)HU!HR:-0=7@+``$$)0X```0Y`0``[5S= M=Z)*$G_?<_9_Z/6^S'U`1)/9&^]D[R%*9CR;B"-FYNZ3IX56.8.TEX;$[%^_ MU2T0/P#1`?3,3AZB0G75KZI^_5&%R8<_5@L'/1./V=2]K2GU1@T1UZ26[[^@+=@*X\OG/GNO#-=.WGPE<75MMHU:]19`DY=!IT,`S M2:RP<=-J-!M*$RF-SZWQL'M57TW!7!?[<)/?D!5%5JY&RE6[\5O[^B:G$1_[ M`7LSLFJ$/^OA'QS;_=;FOR:8$03QS;VMSWEVU9?GEYJ;^TZM2;R1Q-4HM&<2U)XY2;FQM9W(U$]R17$\^);+3D"$ZL&>Y: M?CQ@4_A:7M_<%+4S5&^`9G:;"4\>J(E]P9B#B%"J!/\D16(2OR0I3:FEU%?, MJD5Y$L'VJ$.&9(KXZ].P%UN=4\>A"^QRILU>ZR9=R%Q$AHP&"^+ZJFMIKF_[ MKSR]WD)`!C>$SKE'IJ`(R"YQIG`J<<._Y!GKORYA'C![L70@+/)W8>U0EU'' MMH"SUAUV>*2-.2$^.P3TX,!*4`ZP!\&:$]\VL7,RY$0M9>'G\YOP%#-]JB_Y M&@6I/2K38>\I*!+U'68VV!AXA(&U7-,N8TB1R'3;@8G] M$;.!1R%QODT.1C!C2,&9]OG6J%K/?%XPL*G#C/!ZL!LO2(XTYQA=+-[%@KJ& M3\UO8$R\0@Z)!=>7Q&6YDGZ,CB*Q#XG#YP.L.O[KR,-@RWX*>OW.52--6>69"((6D9D?7N7PY(D7?H33+.^R9D8-)PENHDD_L4>'` MC^K7`NP<5'AF,"&29<.Y@HG%,#2T&<%8B^WZ,HC*H8R" MWA]=`6)A25J0Q81X1\+='EH^5NPXQR$4`\K'Y5)?/19:-*923I(I#AS_9%)& MP[8^2_[2)O MU3EC1D.U,T)J]PN?T(;P0Q]]TH:HU^_HCUKY7AQ1S,>^W.SZ7S4^\![ MO?-OX<;Z'5`)9@/<'&A]HQ(>'2KX(R^4QJX7UW4TU![$]!VHP]%_$"0'0'>J M0)W:"XCA*KMPW]>1\71G:)^?8(HB[0M?;,ZPI.SU!&+$S;Q+"^Q@H9(*UOGC M6P.Q0ZTDW@N%2&@2)Z,-G6A3*7JW5EO%5G9*PR#V\BIII0IUHDBI<%6H16N] MZ%VH&<6J+R.9N\V$V,_K[\MFJ/?7Z*E7Y*1#S2W/'/[8C7J)%8:H#*:8341Y M$#!IAO%2%@]!B>.SZ(KH-D@-)7S.]DMX>1R?/B"`6,^(0YE!H%^\;F50O0AX65CFKUW4UUS:!VT`_S1'6H"(D,_XF@C7U MZ"([DF'4:#KVS;@"A!JBGD6\VYK2>$,!-"36;D%E7;X7%F?#HE)9Z[]7]A]B6=3D&,^NWL=DB7U1,#4 ME9U*T=+-%DJ@Q"98)F&VJ4"K]#R-?LW&69E6C+MOSG;#SEXBO\HR5BBK]KN4 MB92JBC"T_/#]I&99L1TK"2$LBIU1N_*D+?2'H:\(<1J#6R._Y$O=@+$ZB M^E(`?0R?"Z083M[$A(+CI,WGATS,IL.I.W%YB>GF34PH.$Y:4W_(Q&PZG+K!%)R8 M/JWK4^$>ZS$6\'+E:4E=;06%CLT(?\"SV4C=R5;.T>/W9TAAOJ+]&`\JVETB MVP,/F*>D'1^WA"XXP`E`4Q>=8N-X;WO,YW]A$$+(:#LEB5YP3%/AIJX:13-T M::^?^G(0J0S=%+K@:"8`38OCU49S6]YQ`6Q\NYC&=T:G?^_9[TD=\,V&_P7T ME/<2_+,7_K,7?F)RU!?L62.PDM&XWI&YU"YSHBL7UW=+.5W#^N+.UE_)N7M] MDQG@5_%M-N[:FW^N-7"PR_\L,+/K5HZI,[2#DS-+R_;T)X/*,'6Q7=NSL*S2 M!NM7?HP1WXU=%WJ9S8EDX;-TCDJ=WC27R\7WCHK9OJT%1)[YZ]/I/2%,7=#` M]0?8MM)V\XPAX^N++5P.PD[+4-$/*43[1)_V?+91HV2MGWO"%QSE#,`5-82^ M$GLV]XFE/A,/S]:=E+2#::+L!4BX&3PQ&8'!V! M(>%)@NO1%X<#[(R(MVAFL;%:))?.S#-$(XVEUX=[W>%U_HNC@BO_`U!+`P04 M````"``$76Y!"75`LE$B``!OR@$`%0`<`&AE;F,M,C`Q,C`Y,S!?;&%B+GAM M;%54"0`#:,FC4&C)HU!U>`L``00E#@``!#D!``#=7?MSX[B1_OVJ[G_`3:XJ M,U5^SNSF,I/=I&1)GE&M+6HM>3:IK=0634(V;RE2(2G9OK_^`/`A/O`B)8$] M254RCM@-?@`^-(%&H_'#WUY6/MKB*/;"X,UF2UXWLA#RD#\XO+\\OOUMHF]']\\),Y M>YJ+-B1?'B(_?\>'\QQ.43)YZDGD2TAB[U/,X-V$CITP&BA?@X02]/^=YF*G M]*?3R_>G'R[/7F+W3=[XK`6CT,=W>(E8-3\EKVM"K=A;K7T*BOWV%.$E'XP? M1>=4_SS`CZ2S7?JBC_1%EW^B+_I#]O.-_8#]-XA*WM]-A/7Z6"DK4SHW#7:& M(R]TQT$WU'7MGN"3L1,E>U2@K&^\"HLPL?U.X,N:QF%/<;<6W^F9;VEB^G&W MEBYI5F'[],<;\E<%.'Y)<.!B-X=.RY(8./8J9G>SLHO20Z=2KD^-91C56H1\ M.D_I=X=^F%A]OXRGP]_F2>C\;JVI;1W\ M5:>4DG[.Y!_:3./^%L>+TXC+[$OXA^_DW.C%P-SZVEF,RP,)7C.82=\#+S_RTWG,(R3^.KU#J]#8D*]``]> MO+C68.9>:X*YIAN1#@53[^Q];!FN:&.P9J]%X1+E+T;9FQ%[]2F=8;JH_/(3 MM'L]5=P!0"D"Q""JOMZ"+2OA_I]/3Q^7X^T^GK49U^/U'T]`MK7(_V^ M'AVIKW^QH\@.DD'@IB\2][=(TEB?RZ$6_QEUH8\D?=L)"??DM1W.%'CR(/$KIS4:NU6,P$I50@*8-$ M,KT31@&LSH^,$CM9MI'4'RV&A*N1[4\"%[_\A%^%E6O(F26&`&:5&34A0-3@ M(Q-P(Q-&3!H1\3[8D=LQ^DGD5*OZV!07>*!R"I2?@>AY#B#AQX+*]-G+Q8X@ MW0Z7U*4F9[K?N3#K!*@(@6("#YF0$ID3DDBS&(4^V#$@0%P*YMJW'SGUJCTW MQ08NK)P%E8<@>I^'J+'ZR&40%>JCKX>;**(8O=BQ_7]@.Q(;`[&H*0:HP.9D M$,F!X(4"7)TBF3A*Y1%5Z-4XI).57[#O_Q2$S\$P M4M"UI2Q7%A![I`"%)/ICC`J-+'86927UR";&YB'YCCZ&D=@#4I,RRQTNQ"IE M*B*`F,+#)?!\,%&4R_9'B-GFP?><:S^TZ\YX@8Q9,G#@5:E0$@!$A"8J`0U2 M0<0D>_S&A*M5&+`M8Q9#%%N;A!UM(+9+;!:E2H:_-QH5J'UU)!J`B*0!4^1: M99J(J9ZDH6$Q*FGWZ8-+%W:IV^>:_,:;SDAD3?OBA'#K_KB&(`@FJ=`)_7+9 M^CMSSS&5_EE#O0%ZG"E)]L.8!E0^7PHQ@&RI8U-QA?EJ#LZ4/0+)R<0;4X#6 M\MH+[,#QR`@(8T\2A-!.U6A`=XO*5(*R-?1ZYUX'L,V8MTR5!CD7RBC71K_F M^E!"H.(8)[&"AG4AHT%07("5**B*!!@2<6$U=B+F\_%B#H,*0SM^$M0E?62R MV\M@RIU-?P?3Q24PC?T#\@A&M]YA!WM;^\''\10GF?M'4"&!K,F.E\(M,X$K M"(8:,G1UKEC)$XY05&C`X,TLPFO;<\I+`Q*#.VU1ZI& M3_NQ4W[WP3H*M]B=1>$:1XF'1<'W.HIF9R6Z%:G.651:8,R/-M3&-\SSD1VX MZ-&.T;H0/D'+C>\CAQ2%5CAY"MT3M$F+/&AL]K[62CK>^K!/8L,$T2().,%2 M;X`R1#>>_>#Y'J7F('"97_HI]%T-_;;SD5;$.UEM\DW55P?#Q_:8&U['K`2T3HM@,S<[+03YNU)@L'>XB9-PA:.!NZ5Y M\11,%4H;72?((5<6!WQ1,&R3XVNL/L.`649D9^(P**1MY_HV9WI6JV?CI%P5 M:!NB=(60NRQNH%F>$5YB`LU=V"\E;%/2C5(2J=5,4DJW$F6"J73`6"=-H(V0 M@4P-)?9+\<$[:`3D06R5>GCU9IT49@FL/9(:(G`&J+6'`HI/HIT7XAOP.[3V M-,#U+,RBS/JQ.K%4VN+-J*:DX4T]$=3:EEY=#`QQQ-@:J[)-\A1&U/7^Z?+B MY.*"_1>M7W M?ZH6A]Y>7OSYY./'_SGY_N-'9"=HA!V6\0M]N#RA>?\OW\$@Z[<]L MSYT$V<97J65%WA<-1:,.,.V*5/Q>2BTP9->&VJ!_H8A8F(07("?5!4)!Q]FL M-CY-G#?%($##;?X<3V`NR.[2@@'XFXA)RLMCW'$\<< MJA7-!B#J5J0:C:C2`L-,;:@J"(-.@8HP(H-Z1(3`HMO MFFB5#C^VRH'+QJH;869'5L2.&KEL`3C#$3M=J^6#$"OWY]I154CL[1%I@OG< MMH++"?'.O#_9Z>EBM0Z1EBG&G=M!JT6:2OW14%0!,?WJ&D!I)X"II-M.`P;? M2JO^EC902[,G#V0;ZZ>A!H:#^EB;<21IY@B01J^1$$-I\:0:/9%.Q]9)Q"&2 M3-/*5FI],HG M02HE'7FXS%*G4:K2*SQ.XJ3N'$N]V$7&"T5HBE#:)+,4D,ND$HB"X9,<7R,G M))-&N_0DT!*1[+9$KDF/T3AB+]@0JEMKG/J4XT&21-[#)J$1ZXN03"AU.=>] M4//4W+/A+-=X#V\6E-8EH5,D$-QB]T1&V\^"G-AC;"#Z)/K8:>29)J5Z-, M3:42-$+J`J[3D.HANDV/D\0OTM6Y1`$&":WETG-P%)=O$!B>J>M%V"$\B-$20SDWD=TUCUVV=+ZBM]&7*Y9E M5Q)%;FDJ&PVD:U6A2OR*(QF+1L23GI$+')!6UX)<9*%4`0SP=E(VD1\QHGJ"$Z:;YCW!`5J5`(HQG M4;C$<0?:G<>B-U9>E#R M;'U.K2!-3>*NO(#=O9QX6RS_R"FUC"X@]:I063[*5?I8/"Y4X9-ZF!OKQU2+ M,:^JA\:@DI%.5FO;B]+UL.71:GZV8V7:2:66T7T!O2I4'/]R%6A>##VX&ADG M7Y%7%`6#?WFBB70/8V&_9,/C*C77@@91:O61/T11!5[Z$($*-/[IP17F$/'2 MK56:2B3"3KC%A[U+;<_I75HIV=0CES`^A:M":TS:TL>PIFD53/P\[BD=8#!` MO77:><\5VN9XMPUP6&=9M/$*HCO>4M5WB#8=VFFCG3I$5HZ\V$FQ8G>'-#\7 M6]W:+VXS32^8:Q7]<9#W],?Y`S:3>(@'3(6)+# MS#]YU=9HF1$[UCM[LF-L;9+T]CU%(H+CO,KH3/>(C569'A_A/6"&W1$KU\BS M3,I+/W;E$L%][KC5S0-&K(`\7H>Q[5M+KF"74=>A\-['6><&48ZLUB7#'DM= MJR.*`=#T)>6>U?K6_T4T2JN&L) M05/59$PRFPNOS,Z*`"R&\:#563(=+]!D.K1NQV2I;LWG0'+AC9=+[!#NC[.@ MU#L[P59`;[`6;):O;)CSR&C:N3YFSQZL;.75U@>+)>[HMKM//&"PL`0>]\:U&E_ M-9A/ANP.LM'DYGXQ'J'&[`!=WUFWB'M2#9&_R)/;6VN*YE\&=V.(0T4^S=YG MT'0L&>HJK?-`ZE0LT"&U3UWT!A<=5.F8$OCL@8ZJ/%%GGC.GUA"BR9]*R^@L M7*\*E8FW7`4,B_5P=C'_,-GX"UD//)&*#;9DC#[BZ8:F=[>6K.ZEE!9Z).U: MF$GN[E?A,J6[E02&Z7O!KP^`7\:3SU\H[P=?B?G]/$;3^]LK0GCK&C7'1GD4 MS)%UOY@OR&,R)8(Q)(JL&M:2KJJO_?`Y5E[4(U,QFW98#;Z:@%@L#X:J&B"; MA\?RU"CA$E$EQ+3`)4HA,R**;A:%6\_%[M7K?4Q#%[,I4_`X7YN%*K17@8PW+\UYJ]8,=,(U:O MYSGN.\&,*D,5;5X-5+P6)2$+VV]`G& M2-=L%KZ/1>3*WZ],HQLIAZA^9:MEGP+!C*Y#U**Q75.,B(=7Y):#'4)@P0YY M8-/G*-RLIV&B&4TECL7J5IKAR+I]JEP+I>M2%!CN[X=?%"SG'B-8CI\UD+Z2 M^L7G18XF:SD):(XF[`:X$;ZCJ6,LOZ`N_"+IH$JA=V:U0HDQ6MNO;'X+@U7JS(GW M081M7W*'0KLB8"7$;%:N74;,G3X8MG8`7>?P3@`MZWDQV2(L38YYI.]K*>N` M,C&$CH*Q+ZL6\.*S*I7NG4W:$!LG7@L=^AD-F[D@Z)5N;^D2GCPN'\V'$U1& MR!_C$4[_+2W,L@N.U8=;M0LP'/?2LF*U\!9-[=ZIVQER8T7-+%Y,/4Q!&)PR ME]-S&/U.'4W9A=7(HUXQJ,R]PP[VMO2XA"2=@$RG7WYRX,LI65(PRD)BOA[" M&,LBOG7`\M-61(4<5)K-(DSO<9?G$%.K]4LV?B7D?*OJP*<<%R_GJD$JE*=F M!6OUV]8":=^ M>X>5M"BS[["2UM57A95H%PB&^(>H13.#8:9?,NCIABGH&)-9MLNV"`?.OS9> MA.L>[%=ZHP1YLJ9B@O9L6XC1VQDZ5;!R=T.K$J"E4.B$7I:JFOD[7"_91`>8 ML?!WM@J(X]*[[M+]#^S2Z(69'24!CKC;7&VTC>UYM:]2L0&FK]J[@>V&5Y=M M^188W6ZEAG6=%0/#DK*L).D08Y5D?\>>)/A$JF%ZFJ"`7I\$",1[9Z`^1NYB MSBA26!X M>;[WJ@_J=PFT\%T^*WXF#CUV]O'U*+,OGU,K:NO\C%I%PB&^(>H16,,Y/K? MF(\I"AV,798D:1+'&[IC9RV'X6H5!BP,7.2Z4.L9ON=3KQJUBS_E2F`(JXNT MN1=+)5!,19!'%--H:';R%#+_;L+@<8&C%;UEOE635!7[9R"O(FH*EK6`"C3!J#,;$=0#?X M^V4P_4S3O*/A8/ZEIR1DM`*B3C&<D&^.S&Y4D#7:E+3D";H:?YY, MIXJ&G4<2",[*KBX33J&E&)TLUZG:2-L/\]H.0F68;1BKBI5ME%= M;:.)&]I5J9+)04\5C.%LA[>1Z^%^-KL9WXZGB\$-2UU^8\WO[\9`4H]-@@23 M]DIFMB=*W5`5,7L4I`FN>NAC]QP,6SB@^--`>GZ.^@J]3`$*(6BZOH7]@F,I M)VI2YB]G:$!L7K10B``B!P^7BA_L>O"$*L'@2)[LL=BG#]QB#<0R0*HVKO7U MC2YJVU:KLJ;550;#Q;:(&]ERK>DIG6DAW@F(_3]O_*BQ[/1FEINA'&0Y"30S MP;0NPEBL6H#F'==FYW#SE1B5TEF;_X^:8@6%.60J'?6UJ MVT),&M9N%2Q;UW8E]$[LO6`+[2PO"NA8=I:ELYNP#6TK&(8$>Q23M8ZUO+4# M^Y$MAJXQW[YJJQJSJRTK4]A33;W>Z=8!;&.52K7C<@C#JE"C&0F/==HE?2\/ M]AQ'6\_!4I:I%,CT+$J&78=1<9PP.T*CJ"U7HP]62:#S^,01!\LA9;RQEY/?4J2_8`U.+&:*,!NN",1!8&8=0`&W<^ M4@UD+5%9!\8"\FH3>S0'^0C'3N2M664"EU/%!7Y)KGQQT'&7@DPN)+M7M+R8 M;%]*[YS=&WJ=S9=G[*+&.;VQ<78WGM/M*7J+[K$/M>\<.3*#)Q4W?VQ=#+IY M3KTIVSMY-`'R3J(3%41TT`R8R^QZX_O#,$YN%2(^=^&&\B;#*'A[^-48SVQ^ID2K9[P_\CMX'RY$K5A]D[\^0-;EAU^5^ M'LR)*::W/1[D>!_?$.?)`_,<@P0Y,XLFK7X,KY#D^G0NAT?C6O%$3T"FOW;N(1';M7:Z!MD7?MJE:BGKPR% M?ZT1"TYB,EUFZ-*_6#&H7`Z,"2Q#]Q3Z+HYB&HV=O$[#!.O/3%OHF[V.OF6U MJG?3:RKW3MJNB.ND_8Y:SMM;:XKF"VOX$S.:Z5]D<3X>T8>S\71^F)7Y07A; M/IM5NC5*%9V@5C/)4MU*E,FIT@'#24V@H@.;3`^5%=&ON>H_87-0WWJV*@$" M,S4M:`MU\'S5MZ+?GZ&[\[EFCUM*;E711JJUK8MFH>\Y MQPL>N0_LC>LE]/!X@B-O-23?._)&EWX(L]A0VY\3+"S^+F9H7J6.LWU+-.;9 M.$S5"W+N5USO=N1P=6A>SYL5BK)24;E85)2+=@7#^+!-\?-NKV46A0'YTRG7 M7#X:NA=C-G]&MTI6LVBT*Z-WLN\)O+EB=>C\;%<4JI8%@\ZI6T@QX:\+F:0B M'V"9:%4),#3BPJJ3)!4"-WO?+6ZM)0M#;+J[HXA>+,R8?/6ZD\FNM!@\VY&K MLH$'?XM)7AZIB'T_MB&9_ MW>X1R2`N"LZJJFEO0HF)Z9_'^V-M'0J"L1%04>:Q`R%TE+KEA>I7GYD(= M.;!VL8VEAS#8P4'$OQ?]0'$N!]KRS19:"YJG5;BC6!4RNWG+`UC=H2U+],X% M*:S&YRH70K\R,2`SP0+6C1=@=AQ852.C0)4Z@H8K+[ MTX7_09B&9]DDC9VMI,R\7X?!^`5'CA>3"9RU%MV,I*UJ[#/2LC+%%T93KWLCV4PBY[F"<'H;PFRYJ4E M1!116502/MJH7GOIW2?TA7RF5B4,CFH>M-*H+C^&T6OJ MKB%-,'CQN+.RB@"<35LYO$:*)RJ%J!CZE0H"F<`/W)47>-3_0-T&-`G&8$4W M)"39$^4J)B?U.N`K1)+(]SYL6X!L<*NB@JZ/G?#&6DZ26'P)E%32<$H;$=1: M#INZ6.]L4&,3Y(,@DV\OB:E+N[C:Z4A<^`5[CT\)=@?$1MJ/Z?R1FY9&(&B, M"5*@!1&X4C!X((-6IT$NB^Q4&*VC@V0J.HR[2+6=(]K-2=>3L;5)XL0.7"]X MG&Y6#S@2V-`CO,>HL^I8S53Q=1WZ);V/E6/7K.EIHV>TGNF>"XVQI0DZP[0$ M%.Z*^+<;>35K5/$?'+]'Y&__1D>I3I,>:>S*7OWO.*(UZMMMG*/G^I<7YTXS M<)_@!W53/K1NRCN\LLDR)'C,-ZPWMD_O?GPOZU332(P;B'Z:NF$LS,*`93AZ MJ7M'(^*3!;S44AS3G1+'F*PT-U%$6H'K/RD+&';$25TF7%P-+PF3.D&97*^- M+&Y=<,VJ:,^>FK&48U5"V*84H.:5@&OT>E`ZBO MM*%*1@J;QZ3B/772=1B1B5F0&D6G?`;_,YF?W81Q?(671&9AO_#ZJX4ZH*[K M@KJQN9^6@?)"REDS$"T&O:4%O3M!#ZPL1`KKJ8\IFIB"P;$5C%_H::F-%S_1 MR;JU%%TLV4^VIMR:KM>U%*>L4-W9IJ@#J+5VD]=[: MZ;'`QNPF+OVTPD?LKQ%>8F*\W>)>QHP^5X1@2X]K%14J@/I+%VF]OW*]_&P, MT?("S;$6EN$1\PSQ1]C2BU`W=8";&.DI1V6 M3CL0;3FTTT>[`F"M$JH5IH<74\S8W2&>8F)T"!'+P!?A'5Z'$?U8CXD"?SEQ ML,+!,N00==(@4ODU)2J=(/(F:M?)NTY@\6J\7&*'M,+XQ7FBWNH[.\%60"_7 M)9\N^@]==FUMGQZ"Y5&GC3X@=G2"W0AL9870?LV+0;0<.CUFMQ/3+SC[HU18 M?^8CPG:,1SC]=Q+0S!`$%.&@Z&L@5@#4D7HX.4.72:.WN=X[>@%J215,/\TB M3&^YEBQE5#J@>TL`5;/#,NV^%S2-6F7Y5N*9_4K91-=NZ=V["K]VMY)`=W"K M"FAV>UXFR@I-U[C9[<;]>]B;C3#YG(5C-/LWUB_P# M/74>F:G1;S99=6\]%[M7K_`DWE8X@/6U`75F!]"-$YMD?LNF M.GDAZ.$5O:7ED+Y]AXJBT*ZLGOHW"[^(%V%V\V'=2_-*_A^=L*U7@NW>=B4` MZN>.P.M]G1=#URY903R'U6NQ:\.*ZR.#YXBLY&(OL0(&D_S%.U?-$P+0:6IL M39=44QB6$=U=[][%B'*T`?33'J!;&M&BJ/Z-J*"R6<+,COW+T8;?OS+0+?NW M**J__LW32L4;.H$.'AO&LO3L-S=TC/4,>==FE6<>YEG*)K!&@BLVP41CGT5D MGO71LG0;E7HCYSA)4AC6368XVCK.5C<5RHM@#VE"1EJ/_'0"US!VDH`>TD/,>Q.N@ZCPAN2 M.C=<6?=PQ,%VC!@KP"XY]IVRH#JI'6B`O<7BNM/3;(-;7$\&(!"!U0="?+"; M^TK=W%?`F_OJ&VKNH;JYA\";>_@--?=(W=PCX,T]@M[<^GG-034Q!QG`QNV> MQA-48TL0`FST=IDT034T%QO()FZ3@AA8$W.P`6SB8R<*!]4I[4`#[*W"O\YB M$5TOV9"JW&$GW&*RSJ;;(O3VY@!'36^/OBJL/FN-&V"W95�WOM);9?KL@D MT-D+:JD/JP.[@0?8B_ME8075)U*,`)M^G[2GH!I>!A%@N\.Z(QA43QZD+@"[ M_)#U452C.V;OOS3#?F+_)S_1/Z'IETCO_P_4$L#!!0` M```(``1=;D&FCF<-#14``%TJ`0`5`!P`:&5N8RTR,#$R,#DS,%]P&UL M550)``-HR:-0:,FC4'5X"P`!!"4.```$.0$``.U=6W?B.!)^WW/V/WBS+[T/ M)"'IGIG.S.P>`J2',VE@@$S//O5Q;`':-3;C"TGVUZ]D&V*,)94O0B(S_=!) M0"I7U5/9P[35F78'@S,C M"$W7-AW/13^>N=[9O_[YU[\8Y-\/?VNUC#N,'/O&Z'E6:^#.O>^-H;E"-\8G MY"+?##W_>^-7TXG()[_\-G!#\ID5X@TBGR9/O3&NSZ^1T6H!:$Z]R+?0CN#E MQ^O+J\OVE=&^_.7ZZZ3W_OQY3A[7,T/R)?WBHMV^:+^?M=_?7'YW\^$C\"&A M&4;!ZT.>+]-_2?+8,P_7-Q<73T]/YT_6Y MYR\NKBXOVQ>_?;Z?6DNT,EO8I7JTT-FV%Z52U*_]\>/'B_C;;=.#EL^/OK-] MQO7%EIT=9?(MYK3/6M+FB3"P)3M$)NV''M MOAOB\(5BYJ]BEHD8, MNYX;>`ZVB2':MZ9#-3U=(A0&(D:%'8_"Y=CTB;*6*,26Z51FN9"*+/ZITR(* M<3":C]9TX"'0EE(WG\(Q^.Z:P?+.\9XJLWU`H$FN;\T`DV>,?120IX'9$'8 M%71KDL-I]!B@WR/B"OT-=5@1:ZSVDKUZ3(86"^!#@*Z2;;-U8%@S\]$1P$0].GKZ!-S5&"1>WHR*2,-`)-CI8J64I`5(,H3[IUQO?NR0=[ M7=!SB%P;V5M"5+Y&9MGD8TJ)1$1MHV5L>V1_)<&BD70WLOU3WK?<.YZUQ[!# M`Q#/%VGSI_ZP^Y7'9^)L+ M&^&+.!8EO\2"M"[;:4#T=_+1UX2'"5I@^F@WI$$H@_/BIGE.LT;1\2W#\VWD M$[BV1$W?VC.%PR`N;7&QCF?P+6N)G9T5S7UO55:7J=X\D219_1(>C@Y"%]&A MU!D0KWG^&;UP43AH"X2AK2$.#+E5`+$59$;("OPW:0)4^Y56:B^24J6VQ\C' M'A'!IJDS@=IS;8'ZO]92_X5RJP"B0[BQ*4=WCKE@`)!K`U3\>ZT47RBG"H5W M(Y_*>(<#RW3^C4R?;_SLYD`8/F@%@TAZ=:_@+\AQ?G:])W>*S,!SD3T(@@CY MW%HY$5&A_W*''>0'7&`.V@(!^59#0!AR*YRL)CX\ M06O/#[&[2):M^'-61A<@+-]I"`M?"^K0B:VD2X;4A>?S`XE<2R`6'S7$HE!F M=1",HT<'6W>.9[(R`07MP%&#!*`KC703$2?F#%++`_'NR0>2T^7B_1J[7/F5T3)VB_7D]^YH.!W=#WJ=6;]GW';N.V28 M,*8_]?NS:;5$><;&YF;P&,,5!:V%::X30T-.&&P_R5M<^O'7'8>C^1UVB3R8 M.(078$!>'=:UMO]4EZT3!`09@13Y1BJSZV7`V,NR%`K:Y"!6'02Z1X659(F_ M4II'9VC.RS.IDT8GR$)X$Z]6#U&8!D0,%3/:*DVBBW7.E5`/$,8^6IO8[C_3 M]5S$!X'15FDF70P"5T(]0$B$X"L_UT9I%EVL]$*),LHF[,X1^=*^3Z1D,A5S M%'JAZ<0M%;\"UI@P@O]'-T`$8?#@KGUO@^S#O7@'+PAQ1Z4Y7\CK`RJ[3B[% M]27%:5VH$[T5[[G'YB-V,#65[68B$IT0!0?]WR,280GFM_#N2C.15:>^9;6C MAY=EN$['>CB*!QW4IC!+`U`,'D,->L#5L2POIXE9QX MJ]EA\JW,;7HISS/S.2/DT',M+KSB;E"PY6S3J0,V5"7:>:38%>&PR(G6&O+! MM^)\I4.)!H*'MIP])56CAU.)%\9;^XH9C@O5V;G&PY90<&2%=F4$'1L.W9MXN0FM@=NFF3+,,T*PP`=H3#)B;Y*QEM@ M16@"G&5%JR@NP(UK%FD]G(^6R`WP!B4%C/=>0!=]1G,R`6('T^6H0"&5$Y:5 M#J&KJ$@/?">TIM%%=M_T7>PN@HPP9%Z++IQ1WA*(H)X`KAR)<$7H`=R@= M>`X(!T;.HEHY8-B"GOIT7A3=5%P?@,,K)VBK'*9QE=`HV)IM12L^AV>W+^T: MOB_->+='ZQ]_[E-[,X'XGV%X[3"<^,;(CT6VXQAIC/QXFSE6[GJ8,:27P^L,G%L26<#]51:RELY'W,: M;G90^R+T,6X/I;N\*D-U,MZ5,!J7'(/AV;96NAFL)C3[$FL*B[B0KI$2.EDK M,[4`@E7,J0_`!(>)[H*O][S@:SHC/S[WAR3P&MT9HW%_TID-2`/CW8-K1C8F MSU$9@B7)QQWW@AB%V5JA:[VF3^^(D=*#]+`;$=-Z1:P3ACY^C$*Z>VGF)=$O M2-#J1%4&;`)(LZ[9C.YJ#['%I\-15XQHVH-6/YG8I2JX17/2AKW44XJ"TLBY>5@K:*]\6O-C\BYST8*^QM1G ML:EH`96-O/O=_C.UZ0@'RR2IU$./K%$8T$]ID-Z\>8`U=?I&,9K/L44FD$5' M2N?LH+BITJJOYJ'GZ4./D;_CQ,3)Q)A.XP_.ODV+"EGK^\#.2O,WS:-:3F=Z MX$Q>2AOD)*<]()^N>=/QAP^OH(_25$_SJ((TI`>88]^;HR"(]Q/=(>:.WL-F M2E-`S4/&TH,>*,6[@L@[V?/3JPQ26V+!Q6FO-#,DX;4HTHP>`"879=$AH6.O ML!N?B$T/@.>/FL)>2LLW)4QO85JJ.[F=Z;%Y9[!:F]A/YNZK,778.E^ETN%K7RJH'JBE4)HS=86:>^%W=?TAX.K$189+_*NMW! MOZ_%W<'&_?CXQ%)K3XT\1VWE;.4%J09UK,?(4B@00.9>Y!/)QDLS0*,HO?!" M4$\CYU%J:WWE68IS."+LJTX8)I9KH[;"^RAF4JB54X>Z/Y\C MBRBF_VPM37>!)F3Z.7+IR;\=UZ8_Z,[%C>D@EWDT8CD2:@N2CV(H571Z^GF: M@FIMP22(VT-MR?-1[`2@,1VG*T79"S*1IW=D6\3`>]B)MBOYE3-`3'I0LSC& MSH>C3$*;&M^\IQS)J?B'I!3>$8 MZ\>RIB0PS>D!\Q>$%TO"56=#Y%^@8;1Z1/YH'C.>J8J!H5^5&'3+[#'6"R49 M13T]:U^,1&?:=X[W5%"+]`%>B]3M3'\R[NY'7W2I1W4QMU%QPKQ)CG2A"]A%4*:'!?!!#&7>ZBH*#V&='D9 M)3GC;PU]E\@8*3U'\#]1$,8C)3U@E\@Z(`89T/<'>=58V$%[S,^\9OQ4_F.5 M5D(U8S;'PD8/2P0R7SP'8F66ZM%46B[5C`TUHE4]#&2[PO?)]Z+UT`N!"X+L ME==JU)064C5C%#4U*:F"F3Z01CE3%)+Y>3(I&I`HX)%,M%W$G"Z(NRDMDFH& M,:AN]/#4XNHM5E#":*RT"*H9U/AZT`,K<8GU@^NCY/HV!H+E2"BME&H&URHZ MDS1H9LH!JM1,U*B8D+/1HQF`0%K1P__(_)V82H!Z*/F9D34]RER\`19,0&F! M5$/0EM:7KCAGKO@%0[O71VUIDRPX"]12>7/-!OF/7H#4;XHX%'/_;F&P`>2[ MJ2UGDF4#Q"#::PXYJBZYD&0A+ M0:=O#'"-U5XU@QN'SOFO\@H[]>V]#(D'[@8%32RP<@FI+8-J:(D5H"H]`@T@ M\[7744K05%N=5`-0P4)*:;7J82%DBA0O*LZ\CO5[A'V43Y*\T+.:R#=KVHQA M$F6)J*T?:L8&JBE.Z9;^XJSACN\XPK)Q&!$TZ*HRF=,@FRXTC$T_=)'//%&I M!`&U5V\V@WQYA>GAZG&Q26*K,9?Q[\EM-)RAGME#;757R]F,^GE*./WB)[B.:L^O59?0-6,.Y17V1D.Q]+:P^J$8EY#J M>RH;"<4`JM+G[0M@OG8H5H*FVKJY&H`*0K'2:M7#0H@8%D)V7-U!;^*AF4GB M',);O`']U-Y9V@S28/7HC.:]YRYFR%]QCNZ'=%1;J"@3SR(%Z0?H!*W3\'\T M3P_7I3'?"Q!6?G6M/8LN40^@ M,;3E%7;J`5?Q@2O)D7/Y96)>4@Q,`FHF1XW+*\RQRRI-CQ&!LLR!$0[/4;G@I![:O5W#@CKKUH`)P5)9&H.N[&J0\I]%ZG92DF,XV MJS-PYYZ_2H`1E*1#>T/!UV,304FEZ#%R#NCU/"@(QR9FE7KL-X%B(NGBXY(Z M]EABZ(5!>HP_"K@PY%I!D9!TPW$=)`KEU0.,;=7U;C'"M7?#?5R*+T,1DA/;5=1XOF(8KB:98`5%;$R1O\$6$D$E[@L%2DXLUQ!04!4=VZ?$M4.P MKE"0Y"P62_0F?DV0)(SN/'^W333=?R9&I[`3%!;@]%,[G;J,`TX-,>BBP?+R.^7+M`FYG!,);A[TSH@HAE2<``B#, MNDYU/6GC3KS88N=.W^;=Z>K<&`WNC>/9JGY;%D="8C;C)JQ\OSA:'>J^)%WM;\8U3Z(@#^ MO6-@).E8&T^E9\Y3X;CWGO>4^]Y_/GT="8SD;=GV/'27XC$\M^CWXY[@^GC<\J M(>P+7:D,"96KEY0U@B,Q_X!N=`A?AEZ(X"_`$OW5^F!Y2/U';A?^S+O?A_.C4G_/CX*?MR9S/YMD/<8\;9N=7=KQ&(9`HDFJN)N"KV0 MQ1S<#TM14.F)4/BRWE=!/=KXWS1Z#-#O$2':WZ#L16<[QVOG'>^;O,I>"),FITWG]6:8 M6#TO(D^H2_2$O3G,2;??%^6D4YK&EFCLZC%9(Z%KO$LI&SO2C=3!ST?N-1"YV8*Y'R3M#$=M//^]+ECW9 M7@=4B+^B>->3")E,0PW0*;:J0L5G&,]6.:M4OK5$=N20:4]_M7:\%X32G9>, M69`3\Q)O_Z,']RU<>CM+4M!*%_')U"BY,I=*VGG&3"BE/_8T#$.Z&K)G":J\ M:[P1\5Z%ZY$W-68=^R?K83J8U)'<=>^V MJG.NH088R_65@_7HG`(RF35)H-Q"0;G]HX-RFP=%(BI=*"K=/SHJW1PJ5Q)1 MZ4%1Z?W14>GE4+EN&I6A=Y[F!N.")3JE>UA[;O\9^18.R!LYX8.U!`+MK73E M@QV*[1/&/K$Q5K8LWTCI?>8P[1;+)4F)=]@/PAYA*WTJ)R]2 MW%3IY=XPA?)DE&:;:YR9JN4L=AP4H57*V4I; M\P#G`N$K'W5(ZI`Y?+OY7-#ZR9^)W3\3NWGE)PO2Y"F<+&RNS4FH/,>S)OG- MZGL&7N5Q[;%CND-SQ<]NRGF4!M@76NQ!P7OCDLM*0WZA(S=YOFLGX1`WDFE@OI9EF;&4WN%74S?P?1M3,\EZ:SHGC_.^7+\+DIW@(-F^Q"1 MI9Z=,YH/PD!\C0.K\0FD4OAR2E+N%X07RQ#9G0WRS462:&!-$1AM3R"/PI52 MC^W5PJ&5-;(F(V0PBL(@),$H=A?#B)81J9#+[:YXIGBL3D!FJ6<,]U* MF*4:A$IEA--OZ'^4%?+)_P%02P,$%`````@`!%UN00Q.Q>F)"```_C\``!$` M'`!H96YC+3(P,3(P.3,P+GAS9%54"0`#:,FC4&C)HU!U>`L``00E#@``!#D! M``#M6]USXC@2?[ZMNO]!R]-<78$A)-D)F^P6`9-P0S"#RKA<3YGW/708^$"^JQBU*M4BTAPBS/ MIFQZ4;HURTVSU>V6T)]__/,7!#_GOY;+J$.)8S=0V[/*73;Q?D=][)(&NB*, M<"P]_COZ@AT?1CY_ZS()8Y:DCP1&PVD:J%ZI$U0N%]!I>CZW2**P>E:O'E5K M1ZA6_5S_/FP?5^83F*Z-)1`50:O5M-KQJ';WIZJCS5*QZ? M:D?5:DW[=M,S`[Y2R-B8.Y0]I+'7SL[.M(`:LVYQSL?8T$2S4"E M.?R4"8F9M<9ORT1@E?E$"XEKK#25]31DI3&K33;X!+$J4^]1`X*FX"]7:^5Z M+6;W17F*\2P1F6`Q#E1'A!01YC'FN^F.VI)KKU%3-LD4(ZXTS`C'F0,)#(T8@:F\TH9`0,_.-M]TPU^RT=F=>Z/C+?`[\=V0'FX.D]D13L?P:% M==YL2.K%(4$?UI3^ZQVB(.Q)](0Q,6:JXX'Y4Y(D@R\;FN,\:,P1_+G1^P"+ MT4'&0!\V1UU@0!]N&?9M"A.^`[0=^!86]QW'>WH&GR5;-CPGQ>%I-&YQ()"F`OQH#D<_1=!KD#46V\\[*8_%N2'#T[ICZK=">.]-9H= MZ-IFH$\KR+R]-/7/M[#@(OV+ZGO><(!3FI@!=)E6LO3F,62'_:AHMP,;M4C; M6^XQ4XIZ>:NJC_#8(2)S%<@4R$:IGK88!)I1H#+XH&E%.5K5CCZ$^M\V;GD- M4IM(3!W1QUQMH!\+-55;,MGH':56'(75V=7@]VWZ2O^UDDE5WHV-1;7DN&OV_>79Z M#HY[7"*V=12;=\8>W@[H>5:@*D=$_5>.Y*>/[LHA;HHL!2T]S+3WLN#M+>5:6_K(.UM9]K; M/AQ[OZK6.;A@$YJV;G,F]2^W.^]F4!-TJLU\[$4Q7AP]Q3[M[F/(`5HHF[Z" MB^K@VG>@SV#3V)/UH1T,#&GC\/8($,B8RG6S8<\%NRF^>`7#KP#B#O=6!RVMEKZ-]S3(?J7&*M/H?-M@TJ8-\V M));W2#BQ%6+JQ(81GGBZD\2ANMTF,T]0:;"F]<.G@H8F1"4DG;:_*Q;$Y2?Z MTK0LL,ANX1F5V%E%I<](5PE`[Y;1V=(']T:L6%U+2O'ZV,$NDRG).,XX>BV0 MQ\^+'AQX?:\"[6G2N"I;;F<>T^>$6U00]8V+U2U;M*=1]S7ZM'/Y*Z/0> M&H(F;"[Q-$S:9`.:1=R],=@WI<^U\!@,'O\'4$L!`AX#%`````@`!%UN03SN MMCRR,0``&UL M550%``-HR:-0=7@+``$$)0X```0Y`0``4$L!`AX#%`````@`!%UN00XJ/T-" M"P``87\``!4`&````````0```*2!_3$``&AE;F,M,C`Q,C`Y,S!?8V%L+GAM M;%54!0`#:,FC4'5X"P`!!"4.```$.0$``%!+`0(>`Q0````(``1=;D$L,5V> M%`@``*9*```5`!@```````$```"D@8X]``!H96YC+3(P,3(P.3,P7V1E9BYX M;6Q55`4``VC)HU!U>`L``00E#@``!#D!``!02P$"'@,4````"``$76Y!"75` MLE$B``!OR@$`%0`8```````!````I('Q10``:&5N8RTR,#$R,#DS,%]L86(N M>&UL550%``-HR:-0=7@+``$$)0X```0Y`0``4$L!`AX#%`````@`!%UN0::. M9PT-%0``72H!`!4`&````````0```*2!D6@``&AE;F,M,C`Q,C`Y,S!?<')E M+GAM;%54!0`#:,FC4'5X"P`!!"4.```$.0$``%!+`0(>`Q0````(``1=;D$, M3L7IB0@``/X_```1`!@```````$```"D@>U]``!H96YC+3(P,3(P.3,P+GAS M9%54!0`#:,FC4'5X"P`!!"4.```$.0$``%!+!08`````!@`&`!H"``#!A@`` "```` ` end XML 14 R9.htm IDEA: XBRL DOCUMENT v2.4.0.6
4. COMMON STOCK AND STOCK BASED COMPENSATION
9 Months Ended
Sep. 30, 2012
Common Stock And Stock Based Compensation  
4. COMMON STOCK AND STOCK BASED COMPENSATION

The Company incurs $15,000 in administrative service fees payable to a wholly owned subsidiary of its controlling shareholder on a quarterly basis. During the three and nine months ended September 30, 2012, the Company paid administrative fees totaling $15,000 and $45,000, using 46,460 and 169,557 shares of its common stock, at approximate weighted average prices of $0.323 and $0.265 per share, respectively.

 

On April 2, 2012 the Company granted 1,000,000 shares of its common stock to a consultant whose efforts it judged instrumental in identifying and finalizing the Agreement with Terra Nova. The grant was conditioned upon the execution of the Agreement which occurred on May 11, 2012. The 1,000,000 bonus shares had a fair market value at the date of grant equal to $290,000, or $0.29 per share.

 

Issuance of Options and Bonus Shares

 

On April 3, 2012, the Company granted stock options to its Chief Executive Officer under the terms shown below. The options were granted pursuant to the 2009 Non-Qualified Stock Option Plan.

 

Option Type  

No. of Shares

Issuable Upon

Exercise of Option

   

Exercise

Price

 

First Date

Exercisable

 

Expiration

Date

  Stock Option A     450,000     $ 0.70   4/3/2012   8/15/2012
  Stock Option B     450,000     $ 0.80   4/3/2012   8/15/2012
  Stock Option C     450,000     $ 1.00   4/3/2012   8/15/2014
  Stock Option D     450,000     $ 1.20   4/3/2012   8/15/2014
      1,800,000                

 

The Company applied the Black-Scholes option pricing model to determine the fair market value of the options granted. In applying the model, the Company used the following parameters: contractual lives of .38 to 2.38 years, historical stock price volatility of 103% to 138%, a risk-free rate of 4.5% and an annual dividend rate of 0%. As a result, the Company determined that the total fair market value of the options granted was $104,874 and the weighted-average grant-date fair value per option granted was $0.06.

 

On April 3, 2012, the Company also authorized the issuance of 75,000 bonus shares of its common stock pursuant to the 2009 Stock Bonus Plan. The fair market value of these bonus shares is the market price of the shares at the date of grant. The 75,000 bonus shares had an aggregate value of $21,750, or $0.29 per share at that date.

 

In addition, on April 3, 2012, the Company issued its Chief Executive Officer fractional participation in a 2% net revenue interest in wells drilled by the Company on PEL 112 and PEL 444. The participation units granted represent a 0.017% interest in the Company’s Cooper Basin revenues, after all royalties, exploration expenses, operating costs and capital investments associated with the Cooper Basin have been recovered. In management’s opinion no value can be assigned to these revenue interests, as any valuation is non-estimable.

 

On February 14, 2012, stock warrants providing for the purchase of 700,003 shares of the Company’s common stock, at a price of $0.25 per share, expired without exercise. On August 15, 2012, stock options granted in connection with the Company’s 2009 Non-Qualified Stock Option Plan providing for the purchase of  3,3400,000 shares of the Company’s common stock, at a weighted average price of $0.75 per share, also expired without exercise. At September 30, 2012 the Company had a total of 4,296,412 stock warrants and options outstanding with weighted average exercise prices and lives of $1.03 and 18.63 months, respectively.

 

EXCEL 15 Financial_Report.xls IDEA: XBRL DOCUMENT begin 644 Financial_Report.xls M[[N_34E-12U697)S:6]N.B`Q+C`-"E@M1&]C=6UE;G0M5'EP93H@5V]R:V)O M;VL-"D-O;G1E;G0M5'EP93H@;75L=&EP87)T+W)E;&%T960[(&)O=6YD87)Y M/2(M+2TM/5].97AT4&%R=%\X,V8S,C-B,%\X8C(V7S0T.3=?83=C.%]F8S0Y M,#=B-3`X,F4B#0H-"E1H:7,@9&]C=6UE;G0@:7,@82!3:6YG;&4@1FEL92!7 M96(@4&%G92P@86QS;R!K;F]W;B!A'!L;W)E&UL;G,Z=CTS1")U&UL;G,Z;STS1")U&UL/@T*(#QX.D5X8V5L5V]R:V)O;VL^#0H@(#QX M.D5X8V5L5V]R:W-H965T5]);F9O#I%>&-E;%=O#I%>&-E;%=O#I%>&-E;%=O#I%>&-E;%=O#I%>&-E;%=O#I7;W)K#I7;W)K#I7;W)K#I7;W)K#I7;W)K#I%>&-E;%=O#I%>&-E;%=O#I%>&-E;%=O#I%>&-E;%=O M#I.86UE/@T*("`@ M(#QX.E=O#I%>&-E M;%=O#I.86UE/C1?0V]M;6]N7U-T;V-K7V%N9%]3 M=&]C:T)A#I7;W)K#I3 M='EL97-H965T($A2968],T0B5V]R:W-H965T3X-"CPO:'1M;#X-"@T*+2TM+2TM/5].97AT4&%R=%\X,V8S,C-B,%\X8C(V M7S0T.3=?83=C.%]F8S0Y,#=B-3`X,F4-"D-O;G1E;G0M3&]C871I;VXZ(&9I M;&4Z+R\O0SHO.#-F,S(S8C!?.&(R-E\T-#DW7V$W8SA?9F,T.3`W8C4P.#)E M+U=O'0O M:'1M;#L@8VAA2!);F9O'0^/'-P86X^/"]S<&%N M/CPO=&0^#0H@("`@("`@(#QT9"!C;&%S'0^/'-P86X^/"]S<&%N M/CPO=&0^#0H@("`@("`\+W1R/@T*("`@("`@/'1R(&-L87-S/3-$'0^/'-P M86X^/"]S<&%N/CPO=&0^#0H@("`@("`\+W1R/@T*("`@("`@/'1R(&-L87-S M/3-$'0^/'-P86X^/"]S<&%N/CPO=&0^#0H@("`@("`\+W1R/@T*("`@("`@/'1R M(&-L87-S/3-$'0^/'-P86X^ M/"]S<&%N/CPO=&0^#0H@("`@("`\+W1R/@T*("`@("`@/'1R(&-L87-S/3-$ M'0^/'-P86X^/"]S<&%N/CPO=&0^#0H@("`@("`\ M+W1R/@T*("`@("`@/'1R(&-L87-S/3-$'0^/'-P86X^/"]S<&%N/CPO=&0^#0H@("`@("`\+W1R/@T*("`@("`@/'1R M(&-L87-S/3-$'0^665S/'-P86X^/"]S<&%N/CPO=&0^#0H@("`@("`@(#QT9"!C;&%S'0^/'-P86X^/"]S<&%N/CPO=&0^#0H@("`@("`\+W1R/@T*("`@("`@ M/'1R(&-L87-S/3-$2!#;VUM;VX@4W1O8VLL(%-H87)E'0^/'-P86X^/"]S<&%N/CPO=&0^#0H@ M("`@("`@(#QT9"!C;&%S'0^/'-P86X^/"]S<&%N/CPO=&0^#0H@("`@("`\+W1R/@T*("`@ M("`@/'1R(&-L87-S/3-$'0^,C`Q,CQS<&%N/CPO7!E.B!T97AT+VAT;6P[(&-H M87)S970](G5S+6%S8VEI(@T*#0H\:'1M;#X-"B`@/&AE860^#0H@("`@/$U% M5$$@:'1T<"UE<75I=CTS1$-O;G1E;G0M5'EP92!C;VYT96YT/3-$)W1E>'0O M:'1M;#L@8VAA'!E;G-E'0^/'-P86X^/"]S<&%N/CPO=&0^#0H@("`@("`@(#QT M9"!C;&%S'0^/'-P86X^/"]S<&%N/CPO=&0^#0H@("`@("`\+W1R M/@T*("`@("`@/'1R(&-L87-S/3-$3PO=&0^#0H@("`@("`@(#QT9"!C;&%S7!E.B!T97AT+VAT;6P[(&-H M87)S970](G5S+6%S8VEI(@T*#0H\:'1M;#X-"B`@/&AE860^#0H@("`@/$U% M5$$@:'1T<"UE<75I=CTS1$-O;G1E;G0M5'EP92!C;VYT96YT/3-$)W1E>'0O M:'1M;#L@8VAA'0O:F%V87-C3X-"B`@("`\=&%B;&4@8VQA&-H86YG92`H9V%I;BD@;&]S'0^/'-P86X^/"]S<&%N/CPO=&0^#0H@ M("`@("`@(#QT9"!C;&%S'0^/'-P86X^/"]S<&%N/CPO=&0^#0H@ M("`@("`@(#QT9"!C;&%S'0^/'-P86X^/"]S<&%N/CPO=&0^#0H@ M("`@("`@(#QT9"!C;&%S'0^/'-P86X^/"]S<&%N/CPO=&0^#0H@ M("`@("`@(#QT9"!C;&%S'0^/'-P86X^/"]S<&%N/CPO=&0^#0H@ M("`@("`\+W1R/@T*("`@("`@/'1R(&-L87-S/3-$'0^/'-P86X^/"]S<&%N M/CPO=&0^#0H@("`@("`\+W1R/@T*("`@("`@/'1R(&-L87-S/3-$'0^/'-P86X^/"]S<&%N/CPO=&0^#0H@("`@("`\+W1R/@T*("`@ M(#PO=&%B;&4^#0H@(#PO8F]D>3X-"CPO:'1M;#X-"@T*+2TM+2TM/5].97AT M4&%R=%\X,V8S,C-B,%\X8C(V7S0T.3=?83=C.%]F8S0Y,#=B-3`X,F4-"D-O M;G1E;G0M3&]C871I;VXZ(&9I;&4Z+R\O0SHO.#-F,S(S8C!?.&(R-E\T-#DW M7V$W8SA?9F,T.3`W8C4P.#)E+U=O'0O:'1M;#L@8VAA7!E(&-O;G1E;G0],T0G=&5X="]H=&UL.R!C:&%R2!D:7-C;VYT M:6YU960@;W!E&-H86YG92!L;W-S("AG86EN*3PO=&0^#0H@("`@ M("`@(#QT9"!C;&%S'!E M;G-E2`H=7-E9"!I;BD@;W!E'0^/'-P86X^/"]S<&%N M/CPO=&0^#0H@("`@("`@(#QT9"!C;&%S'0^/'-P86X^/"]S<&%N M/CPO=&0^#0H@("`@("`@(#QT9"!C;&%S'0^/'-P86X^/"]S<&%N M/CPO=&0^#0H@("`@("`\+W1R/@T*("`@("`@/'1R(&-L87-S/3-$6%B;&4\+W1D M/@T*("`@("`@("`\=&0@8VQA7!E M.B!T97AT+VAT;6P[(&-H87)S970](G5S+6%S8VEI(@T*#0H\:'1M;#X-"B`@ M/&AE860^#0H@("`@/$U%5$$@:'1T<"UE<75I=CTS1$-O;G1E;G0M5'EP92!C M;VYT96YT/3-$)W1E>'0O:'1M;#L@8VAA2<^/'4^56YA=61I=&5D($EN M=&5R:6T@0V]N6QE/3-$)V9O;G0Z(#AP="!4:6UE6QE/3-$)V9O;G0Z(#AP="!4:6UE2!D;R!N;W0@:6YC;'5D92!A;&P@:6YF;W)M871I;VX@ M86YD(&9O;W1N;W1E2!'04%0(&9O<@T*8V]M<&QE=&4@ M9FEN86YC:6%L('-T871E;65N=',N($AO=V5V97(L(&5X8V5P="!A2!I;F1I8V%T:79E(&]F('1H92!R97-U;'1S('1H870@;6%Y M(&)E(&5X<&5C=&5D#0IF;W(@=&AE('EE87(@96YD:6YG($1E8V5M8F5R(#,Q M+"`R,#$R+CPO<#X-"@T*/'`@'0M86QI9VXZ M(&IU'0M86QI9VXZ(&IU'0M M86QI9VXZ(&IU'0M86QI9VXZ(&IU2!I'0M86QI9VXZ(&IU'0O:F%V87-C3X-"B`@("`\=&%B;&4@8VQA'0^/'`@ M'0M86QI9VXZ(&IU'0M86QI9VXZ(&IU6QE/3-$)V)A8VMG0T*8W5RF5D(&EN(&-O;FYE8W1I;VX@=VET:"!T:&]S92!P M6QE/3-$)V9O;G0Z(#AP="!4:6UE6QE/3-$)V9O;G0Z(#AP="!4 M:6UE2!E;G1E6%L=&EE6QE/3-$)V9O;G0Z(#AP="!4:6UE6QE/3-$)V9O;G0Z(#AP="!4:6UE2!I9&5N=&EF:65D(&$@=&]T86P@;V8@)#4T+#&-E2!H87,@=VET:&AE;&0-"B0S M-RPS-#`@87,@82!R96-O=F5R>2!O9B!E>'!L;W)A=&EO;B!C;W-T6QE M/3-$)V9O;G0Z(#AP="!4:6UE6QE/3-$)V9O;G0Z(#AP="!4:6UE'!L;W)A=&EO;B!A;F0@9&5V96QO<&UE M;G0@97AP96YD:71U'0M86QI9VXZ(&IU6QE/3-$)W9E6QE M/3-$)W=I9'1H.B`Y-24[(&9O;G0Z(#AP="!4:6UE2<^055$)#0L-S`P+#`P M,"`H55-$)#0L.38X+#`P,"D@=VAI8V@@=V%S('!L86-E9"!I;B!E2`R,#$R+"!F;W(@=7-E(&EN('1H92!C;VUP;&5T:6]N(&]F M(&$@6QE/3-$)V9O;G0Z(#AP="!4:6UE6QE/3-$)W=I9'1H.B`Q,#`E)SX-"CQT'0M86QI9VXZ(&IU'0M86QI9VXZ M(&IU2<^)B,Q-C`[ M/"]P/@T*#0H\=&%B;&4@8V5L;'-P86-I;F<],T0P(&-E;&QP861D:6YG/3-$ M,"!S='EL93TS1"=W:61T:#H@,3`P)2<^#0H\='(@6QE/3-$)W=I9'1H.B`V)3L@ M9F]N=#H@.'!T(%1I;65S($YE=R!2;VUA;BP@5&EM97,L(%-E2UH M;VQE(&-O'0M86QI9VXZ(&IU'0M86QI9VXZ(&IU6QE/3-$)V9O;G0Z(#AP="!4:6UE6QE/3-$)V9O;G0Z(#AP="!4:6UE2!O9B!014P@,3$R('5N9&5R('1H92!D:7)E8W1I;VX@;V8@ M5&5R6QE/3-$)V9O;G0Z(#AP="!4:6UE M6QE/3-$)V9O;G0Z M(#AP="!4:6UE&-E2!497)R82!.;W9A+"!T:&4@0V]M<&%N>2P@04-/4B!A;F0@4V%K:&%I M(&EN(&%C8V]R9&%N8V4@=VET:"!T:&5I<@T*5V]R:VEN9R!);G1E6QE/3-$)V9O;G0Z(#AP="!4:6UE6QE/3-$)V9O;G0Z(#AP="!4:6UE2!W96QL(&1R:6QL960@:6X@8V]N;F5C=&EO;B!W:71H('1H92!O<'1I;VYA M;`T*=&AR964@=V5L;"!D'0M86QI9VXZ(&IU'0M86QI9VXZ(&IU2!V:6%B;&4L(&%N9"!497)R82!.;W9A(&5L96-T'0M M86QI9VXZ(&IU'0M86QI9VXZ(&IU2!497)R82!.;W9A+B!) M;B!T:&4@979E;G0@5&5R2P@04-/4B!A;F0@4V%K:&%I('=I M;&P@=')A;G-F97(@=&\@5&5R'0M86QI9VXZ M(&IU6QE/3-$ M)W=I9'1H.B`Q,"4[('1E>'0M86QI9VXZ(&IU6QE/3-$)W=I9'1H.B`Y,"4[ M('1E>'0M86QI9VXZ(&IU6QE/3-$)W9E6QE/3-$)W1E>'0M86QI9VXZ(&IU6QE/3-$)W1E>'0M86QI9VXZ(&IU'0M86QI9VXZ(&IU'0M86QI9VXZ(&IU2!M871E2!T97)M:6YA=&4@=&AE($%G2!I;G1E6QE/3-$)V9O;G0Z(#AP="!4:6UE6QE/3-$)V9O;G0Z(#AP="!4:6UE2!T97)M:6YA=&5D(&ET2!#;W)P+B`H M)B,S-#M"6QE/3-$)V)A8VMG M6QE M/3-$)V9O;G0Z(#AP="!4:6UE6QE/3-$)V9O;G0Z(#AP="!4:6UE2`R,#$R+"!T:&4@0V]M<&%N>2!W87,@9W)A;G1E9`T*82!V M87)I871I;VX@;V8@;&EC96YS92!T97)M&-H86YG960@9F]R M('1H;W-E(&]F(%!%3"`Q,3(@3&EC96YS92!996%R($9O=7(@*#0I+B!!2`Q,"P@,C`Q,BX@ M5&AE($-O;7!A;GD@8F5L:65V97,@=&AE('-C;W!E#0IO9B!W;W)K('!E2!*86YU87)Y(#(P,3(N/"]P M/@T*#0H\<"!S='EL93TS1"=F;VYT.B`X<'0@5&EM97,@3F5W(%)O;6%N+"!4 M:6UE2<^ M)B,Q-C`[/"]P/@T*#0H\<"!S='EL93TS1"=F;VYT.B`X<'0@5&EM97,@3F5W M(%)O;6%N+"!4:6UE2<^3&]C86P@2!A8V-E2!014P@-#0T+B!!8V-O2P@=&AE M($-O;7!A;GD@'1E M;G-I;VX-"F]F(&QI8V5N2`Q,2P@,C`Q M,RP@86YD('1H92!O=F5R86QL(&QI8V5N2`Q,2P@,C`Q-2X\+W`^#0H-"@T*#0H\ M<"!S='EL93TS1"=M87)G:6XZ(#!P=#L@=&5X="UA;&EG;CH@:G5S=&EF>2<^ M)B,Q-C`[/"]P/CQS<&%N/CPO7!E.B!T97AT+VAT;6P[(&-H87)S970](G5S+6%S8VEI(@T* M#0H\:'1M;#X-"B`@/&AE860^#0H@("`@/$U%5$$@:'1T<"UE<75I=CTS1$-O M;G1E;G0M5'EP92!C;VYT96YT/3-$)W1E>'0O:'1M;#L@8VAA'0^/'-P86X^/"]S<&%N/CPO=&0^#0H@("`@("`\+W1R M/@T*("`@("`@/'1R(&-L87-S/3-$2<^26X@8V]N;F5C=&EO;B!W:71H('1H M92!!9W)E96UE;G0L(%1E2!4 M97)R82!.;W9A('=E2!C M:7)C=6US=&%N8V5S+@T*069T97(@86X@;V9F2!R96-O9VYI>F5D(&]T:&5R(&EN8V]M92!R96QA=&EN M9R!T;R!T:&5S90T*9F5E7!E.B!T97AT+VAT M;6P[(&-H87)S970](G5S+6%S8VEI(@T*#0H\:'1M;#X-"B`@/&AE860^#0H@ M("`@/$U%5$$@:'1T<"UE<75I=CTS1$-O;G1E;G0M5'EP92!C;VYT96YT/3-$ M)W1E>'0O:'1M;#L@8VAA2<^5&AE($-O;7!A;GD@:6YC=7)S("0Q M-2PP,#`@:6X@861M:6YI2!P86ED(&%D;6EN:7-T2<^)B,Q-C`[/"]P M/@T*#0H\<"!S='EL93TS1"=F;VYT.B`X<'0@5&EM97,@3F5W(%)O;6%N+"!4 M:6UE2<^ M3VX@07!R:6P@,BP@,C`Q,B!T:&4@0V]M<&%N>2!G6EN9R!A;F0@9FEN86QI>FEN9R!T:&4@06=R965M96YT('=I=&@-"E1E M6QE/3-$)V9O;G0Z(#AP="!4:6UE6QE/3-$)V9O;G0Z(#AP="!4:6UE2<^)B,Q-C`[/"]P/@T*#0H\<"!S='EL93TS1"=F;VYT.B`X<'0@5&EM97,@ M3F5W(%)O;6%N+"!4:6UE2<^3VX@07!R:6P@,RP@,C`Q,BP@=&AE($-O;7!A;GD@9W)A M;G1E9"!S=&]C:PT*;W!T:6]N