This quarterly report contains forward-looking statements. These statements
relate to future events or our future financial performance. In some cases, you
can identify forward-looking statements by terminology such as "may", "should",
"expects", "plans", "anticipates", "believes", "estimates", "predicts",
"potential" or "continue" or the negative of these terms or other comparable
terminology. These statements are only predictions and involve known and unknown
risks, uncertainties and other factors that may cause our or our industry's
actual results, levels of activity, performance or achievements to be materially
different from any future results, levels of activity, performance or
achievements expressed or implied by these forward-looking statements. Although
we believe that the expectations reflected in the forward-looking statements are
reasonable, we cannot guarantee future results, levels of activity, performance
or achievements. Except as required by applicable law, including the securities
laws of the United States, we do not intend to update any of the forward-looking
statements to conform these statements to actual results.
Our unaudited financial statements are prepared in accordance with United States
Generally Accepted Accounting Principles. The following discussion should be
read in conjunction with our financial statements and the related notes that
appear elsewhere in this quarterly report. The following discussion contains
forward-looking statements that reflect our plans, estimates and beliefs. Our
actual results could differ materially from those discussed in the
forward-looking statements. Factors that could cause or contribute to such
differences include, but are not limited to, those discussed below and elsewhere
in this quarterly report.
In this quarterly report, unless otherwise specified, all dollar amounts are
expressed in United States dollars and all references to "common shares" refer
to the common shares in our capital stock.
As used in this quarterly report, the terms "we", "us", "our" and "our company"
mean Tiger Oil and Energy, Inc., and our wholly-owned subsidiaries, C2R, Inc., a
Nevada Corporation, and Jett Rink Oil, LLC, a Kansas Limited Liability Company,
unless otherwise indicated.
We were incorporated under the laws of the State of Nevada on November 8, 1993
under the name "UTEC, Inc.". On October 29, 2010, we changed our name to Tiger
Oil and Energy, Inc. We are engaged in the business of exploration, development
and production of oil and gas in the United States.
Our business and corporate address is 7230 Indian Creek Ln, Suite 201, Las
Vegas, NV 89149. Our corporate website is www.tigeroilandenergy.com.
We do not have two wholly-owned subsidiaries, C2R, Inc., a Nevada Corporation,
and Jett Rink Oil, LLC, a Kansas Limited Liability Company.
We have never declared bankruptcy, been in receivership, or involved in any kind
of legal proceeding.
Our Current Business
On October 27, 2010 we entered into a co-development agreement with Black Hawk
Exploration, (BHWX), in which we, after an investment of $400,000 by our company
in a new well in Black Hawk's Cowley County lease, will earn a 40% working
interest in the # 1 Baker well, BHWX will receive a 50% interest in the new well
and our company will have the right to participate in the nine-well rework
program at the Cowley Prospect. BHWX will receive a 20% interest in any other
new well our company drills on Black Hawk's current or future Cowley County,
Kansas leases and Black Hawk has the option to invest in each additional new
well drilled by our company on a prorated basis up to an additional 30%.
On November 29, 2010, our company expanded our original agreement and entered
into a co-development agreement with Black Hawk Exploration covering
approximately 2,553 acres of oil and gas leases in Cowley County, Kansas. BHWX
owns 100% of the leases within the Prospect Area and has an undivided 81.5%
working interest in and to the oil and gas leases and their previous 10 shut-in
oil and gas wells.
The joint agreement includes in one shut-in oil/gas well, the #1 Baker, located
on the Keith Baker lease. Also subject to joint development is a 100% interest
in 9 other oil wells previously shut-in. Our company's program calls for
re-working all 10 locations directly or in joint venture with Black Hawk and
returning all of them to cash flow production.
On February 4, 2011, we retained International IR Inc. (IRR) to provide media
services. IIR is a strategic consulting firm that works primarily with emerging
growth companies in the resource sector. IIR will focus on providing multiple
information platforms to our shareholders and advise as well as negotiate on
behalf of our company, acquisition, exploration and joint venture agreements and
On February 9th, 2011, we acquired a 100% interest in three Oil and Gas leases
totaling 400 acres in Southern Kansas, comprised of three historically
productive properties. Our Geologist has reviewed the Holman #2, #3, #4, and #5;
the Adams #1 and the Glasse wells commonly known as the Wise #1 and Roberts #1
and have recommended a seven-well exploration and production study. All the
leases acquired by the parties covering lands within the prospect area are owned
100% by TGRO with an undivided eighty-one and one-half percent (81.5%) working
interest in the oil and gas leases described. Our company issued a Note and
250,000 shares of our common stock in the acquisition. We will require an
investment of $400,000 to initiate putting these wells back into production.
Management believes this can be accomplished and is considering various options
to acquire this funding, but has not yet entered into an agreement to do so.
On May 4, 2014, we acquired 30% WI in the DeFore and Stalnaker leases in Cowley
County from a company affiliated with the President of our company. We paid
$402,000 for their share of drilling two wells on the leases. Both wells went
online and began production in 2015.
On June 27, 2019, we entered into a Lease and Well Purchase Agreement (the
"Lease") with OMR Drilling and Acquisition, LLC. Under the Lease, we agreed to
pay OMR $20,000 to purchase a 100% working interest and an 87.5% net revenue
interest on the Upchurch lease and one oil well located in Clinton County,
Kentucky. OMR Drilling has been appointed by the registrant as its agent and
attorney to manage and operate the lease and the oil well on the property.
Our company will continue to evaluate shut in wells in the states of Kansas and
Oklahoma with intention of putting historically productive wells back into
production at the least cost. We will then need to enter into private placement
agreements to fund the programs.
Results of Operations
We have earned minimal revenues since inception.
Three Months Ended June 30, 2019 Compared to Three Months Ended June 30, 2018
Three Months Ended
2019 2018 Change
Revenue $ 4,008$ 383$ 3,625
Operating expenses 73,976 1,152,331 (1,078,355 )
Other (expense) income (218,302 ) 42,599 260,901
Net Loss $ (288,270 )$ (1,109,349 )$ 1,397,619
Our consolidated condensed interim financial statements report a net loss of
$288,270 for the three months ended June 30, 2019 compared to a net loss of
$1,109,349 for the three months ended June 30, 2018. Our losses have decreased
by $1,397,619, primarily as a result of stock based compensation.
Six Months Ended June 30, 2019 Compared to Six Months Ended June 30, 2018
Six Months Ended
2019 2018 Change
Revenue $ 4,008$ 10,599$ (6,591 )
Operating expenses 159,904 1,229,078 (1,069,174 )
Other (expense) income (834,177 ) (186,240 ) (647,937 )
Net Loss $ (990,073 )$ (1,404,719 )$ 414,646
Our consolidated condensed interim financial statements report a net loss of
$990,073 for the six months ended June 30, 2019 compared to a net loss of
$1,404,719 for the six months ended June 30, 2018. Our losses have decreased by
$414,646, primarily as a result of stock based compensation, interest expense,
and change in derivative liability.
Liquidity and Capital Resources
The following table provides selected financial data about our company as of
June 30, 2019 and December 31, 2018, respectively.
June 30, 2019 December 31, 2018 Change
Current assets $ 539 $ 13,174 $ (12,635 )
Current liabilities $ 1,405,088$ 1,302,975$ 102,113
Working capital deficiency $ (1,404,549 )$ (1,289,801 )$ (114,748 )
As at June 30, 2019 our company's cash balance was $539 and total assets were
$20,539. As at December 31, 2018, our company's cash balance was $2,451 and
total assets were $13,174.
As at June 30, 2019, our company had total liabilities of $1,419,689, compared
with total liabilities of $1,317,087 as at December 31, 2018.
As at June 30, 2019, our company had a working capital deficiency of $1,404,549
compared with working capital deficiency of $1,289,801 as at December 31, 2018.
The decrease in working capital deficiency was primarily attributed to a
decrease in convertible notes payable and derivative liability.
The report of our auditors on our audited consolidated financial statements for
the fiscal year ended December 31, 2018, contains a going concern qualification
as we have suffered losses since our inception. We have minimal assets and have
achieved no operating revenues since our inception. We have been dependent on
sales of equity securities to conduct operations. Unless and until we commence
material operations and achieve material revenues, we will remain dependent on
financings to continue our operations.
Six Months Ended
Cash used in operating activities $ (180,662 )$ (126,340 )
Cash used in investing activities $ (3,000 )$ (5,000 )
Cash provided by financing activities $ 181,750$ 131,250
Cash and cash equivalents on hand $ 539$ 537
Cash Flows from Operating Activities
Net cash used in operating activities during the six months ended June 30, 2019
was $180,662, compared to $126,340 net cash used in operating activities during
the six months period ended June 30, 2018.
Cash Flows from Investing Activities
Net cash used in investing activities during the six months ended June 30, 2019
was $3,000, compared to $5,000 net cash used in investing activities outflow
during the six months ended June 30, 2018.
Cash Flows from Financing Activities
Cash provided by financing activities during the six months ended June 30, 2019
was $181,750 as compared to $131,250 cash provided by financing activities
during the six month period ended June 30, 2018.
We will require additional cash as we continue our business. To carry out our
business plan, we will need to raise additional capital. There can be no
assurance that we will be able to raise additional capital or, if we are able to
raise additional capital, the terms we be acceptable to us.
These conditions indicate a material uncertainty that casts significant doubt
about our ability to continue as a going concern. We require additional debt or
equity financing to have the necessary funding to continue operations and meet
our obligations. We have continued to adopt the going concern basis of
accounting in preparing our financial statements.
We anticipate continuing to rely on equity sales of our common stock in order to
continue to fund our business operations. Issuances of additional shares will
result in dilution to our existing stockholders. There is no assurance that we
will achieve any additional sales of our equity securities or arrange for debt
or other financing to fund our planned business activities.
Off-Balance Sheet Arrangements
We have no off-balance sheet arrangements that have or are reasonably likely to
have a current or future effect on our financial condition, changes in financial
condition, revenues or expenses, results of operations, liquidity, capital
expenditures or capital resources that is material to stockholders.
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