RELATED PARTY TRANSACTIONS

9 Months Ended

Sep. 30, 2021

Related Party Transactions [Abstract]

RELATED PARTY TRANSACTIONS

12.    RELATED PARTY TRANSACTIONS

The Energy Evolution Master Fund, Ltd. (“Energy Evolution”) is a related party of the Company as it beneficially owns approximately 23% of the Company’s outstanding shares of common stock as of September 30, 2021. Additionally, a board member of Energy Evolution was appointed to the Company’s board in October 2021. This board member separately beneficially owns approximately 18% of the Company’s outstanding shares of common stock as of September 30, 2021. The board member also is a majority owner of Petroleum & Independent Exploration, LLC and related entities (“PIE”). In October 2021 another Energy Evolution member was appointed to the Company’s board of directors.

In March 2021, the majority owner of PIE, through the exercise of warrants, became a significant shareholder of the Company’s outstanding shares of stock (See Note 9). The Company has a joint development agreement with PIE to perform recompletion or workover on specified mutually agreed upon wells (See Note 6). As of September 30, 2021, the Company has incurred obligations of $463,569 as a part of the joint development agreement (See Note 8).

The Company is a borrower from Energy Evolution under the secured and unsecured notes that were amended in the third quarter of 2021. These notes and the associated amendment resulted in the issuance of warrants and common stock to Energy Evolution (See Note 9).