UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported): October 30, 2020
GULFSLOPE ENERGY, INC.
(Exact name of registrant as specified in its charter)
| Delaware | 000-51638 | 16-1689008 | ||
(State or other jurisdiction of incorporation) |
(Commission File Number) |
(IRS Employee Identification No.) |
1331 Lamar St., Suite 1665
Houston, Texas 77010
(Address of principal executive offices) (Zip Code)
Registrant’s telephone number, including area code: (281) 918-4100
Not applicable
(Former name or former address, if changed since last report.)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
| ☐ | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
| ☐ | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
| ☐ | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
| ☐ | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Securities registered pursuant to Section 12(b) of the Act:
Title of each class |
Trading Symbol(s) |
Name of each exchange on which registered |
| Common stock , par value $0.001 per share | GSPE | OTC QB |
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
| Item 8.01 | Other Events |
On October 30, 2020, GulfSlope Energy, Inc. issued a press release with an update on corporate activities and 2021 operations update. The press release is attached as Exhibit 99.1 to this Current Report and is incorporated herein by this reference.
| Item 9.01 | Financial Statements and Exhibits. |
(d) Exhibits.
| Exhibit No. | Description | |
| 99.1 | GulfSlope Energy, Inc. press release issued October 30, 2020 with an update on corporate activities and 2021 operations update. |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
Date: October 30, 2020
| GULFSLOPE ENERGY, INC. | ||
| /s/ John N. Seitz | ||
| Name: | John N. Seitz | |
| Title: | Chief Executive Officer | |
Exhibit 99.1
GULFSLOPE ENERGY CORPORATE UPDATE
--- GulfSlope Provides Update on Corporate Activities and
2021 Operations Update ---
HOUSTON, October 30, 2020 (GLOBE NEWSWIRE) -- GulfSlope Energy, Inc. (OTCQB: GSPE) (“GulfSlope” or the “Company”) today provided an update on recent corporate activities and operational outlook for 2021.
Corporate Update – Response to COVID-19 Pandemic
Global crude oil demand destruction caused by COVID-19 pandemic, together with increased oil production from OPEC and Russia, contributed to a dramatic decrease in the price of oil. Consequently, GulfSlope’s management and Board have taken multiple proactive steps during 2020 to preserve liquidity and reduce debt as follows:
| ● | Settled the insurance claim related to its Tau prospect and in accordance with this settlement, GulfSlope received approximately $6.6 million. |
| ● | Secured agreements which resulted in an overall reduction of approximately $1.1 million in liabilities. |
| ● | Paid off third-party debt and interest expense of approximately $3.0 million with the expectation that virtually all third-party debt will be retired by the end of 2020. |
| ● | Initiated filing of loan forgiveness application related to $100,300 loan received from the Paycheck Protection Program. |
| ● | Accumulated net operating losses of approximately $50 million to offset potential future taxable income. |
Operations Update
GulfSlope’s Exploration Plan related to the re-drilling of the Company’s Tau prospect was approved by the Bureau of Ocean Energy Management on July 16, 2020. The Bureau of Safety and Environmental Enforcement has completed its initial review of the Company’s “Application for Permit to Drill” and GulfSlope anticipates receiving final approval once a definitive spud date has been established. The leases associated with the Tau prospect expire in 2022 and 2025 which provides the Company sufficient time to re-drill the Tau prospect.
Tau is a subsalt Miocene prospect located in the Ship Shoal Area, South Addition Blocks 336/351 in approximately 305 feet of water. The Tau No. 2 well is designed to be drilled to 20,000 feet true vertical distance (21,543 feet measured distance) to test multiple intervals that correlate to productive zones in the nearby Mahogany Field, located approximately five miles to the southwest. GulfSlope is the operator with a 25 percent working interest and Delek GOM Investments LLC, a subsidiary of Delek Group Ltd., owns a 75 percent working interest.
GulfSlope is aggressively pursuing new opportunities to accelerate its business plan which include securing additional drilling partners and the acquisition of producing oil and gas assets. GulfSlope is evaluating multiple acquisition opportunities and the Company believes that a successful acquisition program will complement its legacy exploration program.
“In response to this extraordinarily difficult business environment, we have taken multiple proactive steps at GulfSlope to strengthen the Company and be in a position for success in 2021. We have a relatively clean balance sheet to utilize in the execution of our business strategy,” stated John Seitz, Chairman and CEO of GulfSlope. “As the world economy returns to a more normal demand for hydrocarbons, we are excited about our prospects for 2021 and we continue to believe there is a significant opportunity for our Company.”
GulfSlope has received notification from the OTC Markets Group that the Company’s closing bid price no longer meets the Standards for Continued Eligibility for OTCQB. GulfSlope has until November 23, 2020, to cure the bid price deficiency. In the event that GulfSlope is unable to cure this deficiency, then the Company anticipates it’s stock would be subsequently quoted on the OTC Pink Open Market.
About GulfSlope Energy
GulfSlope Energy is an independent oil and natural gas company focused on offshore U.S. Gulf of Mexico. To learn more, visit the GulfSlope Energy website at www.GulfSlope.com.
Forward-Looking Statements
This press release contains statements that constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, as amended. All statements other than statements of historical facts included in this press release are forward-looking statements. The Company can give no assurances that the assumptions upon which the forward-looking statements are based will prove to be correct. Because forward-looking statements are subject to risks and uncertainties, actual results may differ materially from those expressed or implied by the forward-looking statements. There are a number of risks, uncertainties and other important factors that could cause actual results to differ materially from the forward-looking statements. Except as otherwise required by the federal securities laws, the Company disclaims any obligations or undertaking to publicly release any updates or revisions to any forward-looking statement contained in this press release to reflect any change in the Company's expectations with regard thereto or any change in events, conditions or circumstances on which any such statement is based.