XML 18 R17.htm IDEA: XBRL DOCUMENT v3.20.2
Note 12 - Subsequent Events
12 Months Ended
Dec. 31, 2019
Notes to Financial Statements  
Subsequent Events [Text Block]
NOTE
12
– SUBSEQUENT EVENTS
 
On
June 1, 2020,
The Company entered an agreement with Jay Leaver, dba Leaverite Consulting, to be retained as President of the Company at a salary of
$10,000
per month. Mr. Leaver is also President of Chicorica, LLC and Visionary Resources, LLC (Battlewagon Project) which the Company has ongoing contracts with for exploration projects.
 
On
June 25
th
,
2020,
the Company entered into a Purchase and Sale Agreement (the “Agreement”) with Pure Oil & Gas, Inc. (“Pure”) and ZQH Holding, LLC (“ZQH”) to acquire oil and gas assets in Oklahoma (as described below, the "Project") in consideration of a purchase price of
$1,000,000
(the “Purchase Price”). The Company also agrees in the Agreement to discharge a promissory note to ZQH in the amount of
$50,000
(see Note
7
). If payment in full is
not
tendered prior to close of business on
July 31, 2020,
the Purchase Price will increase by
$50,000
per month thereafter to a maximum possible Purchase Price of
$1,200,000.
If the Purchase Price and promissory note are
not
paid in full by
December 1, 2020,
ZQH and Pure have the option to convert all or part of the unpaid balance to the Company's stock at a price of
$1.00
per share.
 
Pursuant to the Agreement, the Company has taken assignment of all of ZQH and Pure's Working Interest in the Project. Company, ZQH, and Pure agree the sellers' combined Working Interest in the Project is
87.5%.
The current operator of the Project and owner of the residual Working Interest is Premier Gas Company, LLC (“Premier”).
 
On
July 6, 2020,
Premier filed a mechanic's lien against the interests of Pure, ZQH and the Company in the Project, alleging past unpaid invoices on the part of ZQH and Pure and also alleging that the Company's ownership is
75%
rather than
87.5%.
No
documentation has been provided to Alpha by ZQH, Pure, or Premier of any unpaid invoices. The Company intends to contest the lien vigorously.
 
On
June 30, 2020,
the Company entered into an Option Agreement (the “Agreement”) with Progressive Well Service, LLC. (“Progressive”) to acquire oil and gas assets in Lincoln and Logan Counties in Central Oklahoma (the “Coral Project”, called the “Logan
1
Project” in the Agreement). The Agreement gives the Company until
December 31, 2020
to exercise its option (the “Option Period”). During the Option Period, Progressive
may
not
sell the Coral Project to any
third
party. In return for this exclusivity, the Company is to issue
10,000
shares of its common stock, such shares to bear a legend restricting sale during the Option Period. At any time during the Option Period, the Company
may
exercise its Option with a cash payment of
$50,000.
 
During
2020
the company sold
50,000
shares of the common stock. On
August 6, 2020
the Board authorized an additional
550,000
shares of common stock for sale at
$1.00
per share bringing the total to
1,300,000
shares.