NOTE 9 - SHAREHOLDERS’ EQUITY

Common Stock

As of December 31, 2017 and 2016, the Company had 100,000,000 shares of common stock authorized with a par value of $0.001 per share. As of December 31, 2017 and 2016, the Company had 27,718,802 and 21,964,282 shares issued and outstanding, respectively.

Activity for the year ended December 31, 2017 included the following:

On October 16, 2017, the Company issued 4,814,265 shares of common stock valued at $1.38 in conversion of $5.2 million of Convertible Notes and $0.1 million in accrued interest (Note 6);

On September 23, 2017, the Company issued 250,000 shares of common stock valued at $1.55 to PEO in connection with the execution of a Letter Agreement;

On various dates, in connection with the execution of four employment agreements (Note 13) and the employment of additional employees, the Company issued 219,700 shares of restricted stock. The shares are subject to certain vesting restrictions, but all 219,700 shares have full voting rights and are eligible to receive dividends during the vesting period; and

On April 3, 2017, the Company issued 470,555 shares valued at $1.80 per share in connection with the acquisitions of oil and gas assets.

Activity for the year ended December 31, 2016 included the following:

In January 2016, the Company sold 95,000 shares of common stock at $1.00 per share to one accredited investor pursuant to a private placement of its common stock;

On April 8, 2016, the Company issued 50,000 shares of common stock valued at $0.73 per share to an investor relations company in connection with the certain services to be provided pursuant to an investor relations agreement;

On May 4, 2016, the Company issued an aggregate of 50,000 shares of common stock valued at $1.01 per share to two of the Company's directors in connection with their appointment to the Board (Note 10);

On July 5, 2016, the Company issued 25,000 shares of common stock valued at $1.60 per share to a director in connection with his appointment to the Board (Note 10);

On July 22, 2016, the Company issued 8,333 shares of common stock valued at $1.65 per share and on August 22, 2016 the Company issued 8,333 shares of common stock valued at $1.40 per share, each to an investor relations company in connection with certain services to be provided to the Company;

On August 30, 2016, the Company issued 50,000 shares of common stock valued at $1.44 per share to an investor relations company in connection with a termination agreement;

On November 11, 2016, the Company issued 14,425 shares of common stock valued at $1.85 per share to an individual in connection with the consideration and acquisition of the certain oil and gas leases; and

On December 5, 2016, the Company issued 30,000 shares of common stock valued at $1.89 per share in connection with the exchange of interests in certain oil and gas assets in Buck Peak prospect.

Preferred Stock

As of December 31, 2017 and 2016, the Company had 10,000,000 shares of preferred stock authorized with a par value of $0.01 per share. As of December 31, 2017 and 2016, there were no shares of preferred stock issued or outstanding.

Warrants

The table below summarizes warrants outstanding as of December 31, 2017:


	Shares Underlying	Exercise Price
	Outstanding Warrants	Per Share		Expiration Date
Underwriter warrants	255,600	$	1.25	11/12/2020
Investor warrants	6,666,600	$	3.00	12/31/2019
Placement agent warrants	666,600	$	1.50	12/31/2021
Total	7,588,800

Activity for the year ended December 31, 2017:

On January 20, 2017 and January 30, 2017, the Company issued 537,260 warrants exercisable at $1.50 per share and expiring on December 31, 2021 in connection with a private placement (Note 6); and

On January 20, 2017 and January 30, 2017, the Company issued 5,371,579 warrants exercisable at $3.00 per share and expiring on December 31, 2019, also in connection with the private placement (Note 6).

Activity for the year ended December 31, 2016:

On December 30, 2016, the Company issued 129,516 warrants exercisable at $1.50 per share and expiring on December 31, 2021 in connection with the closing of the first round of the Company’s private placement (Note 6); and

On December 30, 2016, the Company issued 1,294,987 warrants exercisable at $3.00 per share and expiring on December 31, 2019 in connection with the closing of the first round of the Company’s private placement (Note 6).