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Navitus Partnership Agreement
9 Months Ended
Sep. 30, 2015
Partnership Agreement Disclosure [Abstract]  
Navitus Partnership Agreement
Navitus Partnership Agreement

Under terms of the Second Amended Partnership Agreement of Aurora, Navitus earns a net profits interest respective to its 50% partnership interest, and earns rights to 50% of the proceeds of asset sales. Any distributions of the net profits or proceeds from the sale of assets to partners are at the discretion of Victory, as managing partner, together with 100% of the partnership interests. The accumulated net deficits of Navitus, along with historical contributions, net of distributions, are reported as non-controlling interests in the equity section of the condensed consolidated financial statements.

Under the terms of Aurora’s Seconded Amended Partnership Agreement, Navitus Partners, LLC, admitted under the Navitus Private Placement Memorandum (the "Navitus PPM"), earns a preferred return distribution of 10% based upon capital contributions to Aurora used by Victory to acquire or develop oil and gas prospects or related assets on behalf of Aurora. The preferred return distribution is in addition to and does not reduce any net profits interest. Since August 23, 2012, preferred distributions rights total $1,132,073 ($25,942 attributable to 2012, $232,373 attributable to 2013, $401,080 attributable to 2014, $137,361 attributable to the three months ended March 31, 2015, $163,959 attributable to the three months ended June 30, 2015, and 171,358 attributable to the three months ended September 30, 2015). Victory, as managing partner, may, in its sole discretion, choose to distribute all or a portion of the preferred returns, or, apply these funds to other partnership purposes.
 
Navitus Partners, LLC, a partner in Navitus, also receives warrants for Victory’s common stock, allocated 50,000 warrants for every unit ($50,000/unit) purchased under the Navitus PPM (equivalent of one (1) warrant for every $1.00 invested), exercisable under the terms of Aurora’s Second Amended Partnership Agreement and the Navitus PPM. Since August 23, 2012, $7,042,601 of capital contributions have resulted in issuance of 7,042,601 common stock warrants (1,100,000 in 2012, 2,191,601 in 2013, 1,140,000 in 2014, and 1,925,000 during the nine months ended September 30, 2015).