Exhibit 99.1

 

UNITED STATES BANKRUPTCY COURT

DISTRICT OF DELAWARE

 

In re: EMERALD OIL, INC., et al.,	Case No. 16-10704
	Reporting Period: July 2016

 

MONTHLY OPERATING REPORT

File with Court and submit copy to United States Trustee within 20 days after end of month

 

Submit copy of report to any official committee appointed in the case.

 

				Document		Explanation		Affidavit/Supplement
REQUIRED DOCUMENTS		Form No.		Attached		Attached		Attached
Schedule of Cash Receipts and Disbursements		MOR-1		X
Bank Reconciliation (or copies of debtor's bank reconciliations)		MOR-1a		X
Schedule of Disbursements by Debtor Entity		MOR-1b		X
Schedule of Professional Fees and Expenses Paid		MOR-1c		X
Copies of bank statements		MOR-1d		X
Cash disbursements journals		MOR-1e		X
Statement of Operations		MOR-2		X
Balance Sheet as of Petition Date		MOR-3a		X
Balance Sheet as of Month End		MOR-3b		X
Status of Postpetition Taxes		MOR-4a		X
Copies of IRS Form 6123 or payment receipt						X
Copies of tax returns filed during reporting period						X
Summary of Unpaid Postpetition Debts		MOR-4b		X
Listing of aged accounts payable		MOR-4b		X
Accounts Receivable Reconciliation and Aging		MOR-5		X
Debtor Questionnaire		MOR-5		X

 

I declare under penalty of perjury (28 U.S.C. Section 1746) that this report and the attached documents are true and correct to the best of my knowledge and belief.

 

Signature of Debtor		Date
Signature of Joint Debtor		Date
Signature of Authorized Individual*		Date
Printed Name of Authorized Individual		Title of Authorized Individual

 

*Authorized individual must be an officer, director or shareholder if debtor is a corporation; a partner if debtor is a partnership; a manager or member if debtor is a limited liability company.

 

MOR

(04/07)

 

 

In re: EMERALD OIL, INC., et al.,	Case No. 16-10704
Debtor	Reporting Period: July 2016

 

MOR - 1

Schedule of Cash Receipts and Disbursements (1)

For the Period July 1, 2016 through July 31, 2016

(Unaudited)

 

		Total Debtors
Beginning Cash		$	9,233,408
Receipts:
Gross Receipts (2)			6,300,550
Total Receipts			6,300,550
Disbursements (3):
Operating Expenses			2,760,307
Royalties			1,668,459
Payroll, Payroll Taxes and Benefits			394,704
Severance & Other Taxes			543,172
Professional Fees			2,258,683
Interest and Bank Fees			93,977
Total Disbursements			7,719,301
Net Cash Flow			(1,418,752	)
Ending Cash Balance		$	7,814,656

 

Notes:

 

(1) This statement includes all entities controlled by the Debtors and therefore represents the consolidated financial results of Emerald Oil. Due to the consolidated cash management reporting system, certain cash payments may be paid out of a legal entity that is different than the legal entity where the expenses were incurred. Total disbursements by entity are provided in Schedule 1b.

 

(2) Gross Receipts include receipts of revenue from the production of oil, natural gas and NGLs, including revenue receipts on properties in which the Debtors have joint ownership. The operating receipts are presented on a gross basis, which includes third party revenue that is subsequently disbursed by the Company to the working interest owners for their portion of the revenue.

 

(3) Disbursements are presented on a gross basis and include outstanding post-petition checks from operating accounts as of the reporting date.

 

 

In re: EMERALD OIL, INC., et al.,	Case No. 16-10704
Debtor	Reporting Period: July 2016

 

MOR-1a

Debtors Statement with respect to Bank Account Reconciliations, Bank Statements and Cash Disbursements Journal

For the Period July 1, 2016 through July 31, 2016

(Unaudited)

 

Bank Account Reconciliations and Cash Disbursements

 

The Debtors affirm that bank reconciliations are prepared for all open and active bank accounts on a monthly basis. The Debtors affirm that within its financial accounting systems, check registers and/or disbursement journals are maintained for each disbursement account.

 

Bank Statements

 

The Debtors affirm that bank statements for all open and active bank accounts are retained by the Debtors. The Debtors affirm that no bank accounts were closed during the current reporting period.

 

		16-10704				16-10708				16-10704				16-10704				16-10704
Debtor		Emerald Oil, Inc.				EOX Marketing, LLC				Emerald Oil, Inc.				Emerald Oil, Inc.				Emerald Oil, Inc.
Type		Operating				Operating				Utility				Employee Medical Claims				Professional Fees
Account Number (last 4 digits only)		#	0166			#	0112			#	4612			#	6810			#	7214
Balance Per Books		$	(293,678	)		$	5,052,473			$	3,196			$	44,940			$	3,007,725
Bank Balance		$	2,433,529			$	5,052,473			$	3,196			$	44,940			$	3,007,725
(+) Deposits in transit (attach list)			-				-				-				-				-
(-)  Outstanding checks (attach list)			2,727,207				-				-				-				-
Other  (attach explanation)			-				-				-				-				-
Adjusted Bank Balance*		$	(293,678	)		$	5,052,473			$	3,196			$	44,940			$	3,007,725

 

* Adjusted bank balance must equal balance per books

 

Checks Outstanding		Ck. #				Amount
			213374				233.04
			213386				1,938.81
			213769				263.44
			213779				4,946.61
			213790				642.25
			213823				118.33
			213852				114.42
			213869				150.53
			213985				168.02
			214128				937.39
			112916				193.23
			214197				224.23
			214209				1,585.76
			214220				570.63
			214247				100.97
			214248				1,344.91
			214578				911.97
			113039				65.00
			113143				11,988.53
			214601				492.24
			214608				445,884.02
			214609				333.06
			214624				591.05
			214634				530.93
			214655				299.28
			214679				104.21
			214685				120.25
			214697				106.80
			214710				308.70
			214723				243.75
			214728				106.77
			214763				100.38
			214767				312.91
			214771				208.92
			214805				996.52
			214810				6,512.24
			214826				1,584.90
			214837				182.25

 

FORM MOR-1a

(04/07)

 

 

Checks Outstanding		Ck. #				Amount
			214849				227.82
			214854				229.44
			214856				5,183.18
			214858				187.69
			214867				102.44
			214882				137.90
			214885				597.30
			214888				1,194.63
			214895				2,736.27
			214949				194.56
			214951				124.25
			214971				269.56
			214992				11,673.35
			214999				206.01
			215000				103.73
			215013				124.55
			215014				228.34
			215018				304.47
			215019				2,275.68
			215020				2,275.68
			215026				2,067.40
			215029				164.72
			215046				100.60
			215085				253.07
			215086				253.07
			215101				162.13
			215111				519.16
			215115				104.84
			215121				105.57
			113152				150,000.00
			113154				750.00
			113167				4,770.00
			113199				3,197.65
			113213				5,730.00
			113214				325.00
			113224				6,837.00
			113231				5,794.80
			113239				4,707.16
			113248				38.00
			113252				5,604.00
			113253				3,405.00
			113258				26,167.50
			215141				22,247.73
			215142				1,281.30
			215143				27,819.99
			215144				6,242.96
			215145				1,450.59
			215146				9,711.54
			215147				794.28
			215148				865.98
			215149				127.35
			215150				3,822.32
			215151				9,876.51
			215152				424.69
			215154				211.92
			215155				1,278.22
			215156				430,269.96
			215157				326.06
			215158				2,023.21
			215159				210.82
			215160				358.31
			215161				3,730.26
			215162				1,261.09
			215163				122.62
			215164				111.88
			215165				252.08
			215166				13,616.72
			215167				6,092.51
			215168				427.18
			215169				1,458.73
			215170				7,355.39

 

FORM MOR-1a

(04/07)

 

 

Checks Outstanding		Ck. #				Amount
			215171				2,292.11
			215172				656.76
			215173				14,021.28
			215174				8,787.20
			215175				343.16
			215176				1,582.78
			215177				1,582.78
			215178				1,760.58
			215179				663.17
			215180				101.41
			215181				184.51
			215182				369.04
			215183				592.16
			215184				72,432.50
			215185				4,985.52
			215186				5,982.65
			215187				12,495.53
			215188				5,177.05
			215189				9,823.38
			215191				18,123.47
			215192				1,591.13
			215193				847.03
			215194				824.89
			215195				2,412.39
			215196				200.10
			215197				103.36
			215199				151.88
			215200				15,250.79
			215202				1,378.43
			215203				323.86
			215204				11,455.14
			215205				3,929.89
			215206				8,016.20
			215207				6,238.63
			215208				8,912.13
			215209				2,309.51
			215210				358.20
			215211				134.28
			215212				3,248.98
			215213				1,946.07
			215214				155.50
			215215				596.10
			215216				3,114.60
			215217				110.90
			215218				545.36
			215219				131.67
			215220				113.86
			215221				4,317.53
			215222				157.28
			215223				263.09
			215224				300.43
			215225				138.24
			215226				157.27
			215227				7,117.91
			215228				659.47
			215229				794.33
			215230				324.36
			215232				1,395.18
			215233				336.46
			215234				665.57
			215235				10,642.63
			215236				1,887.47
			215237				2,640.99
			215238				2,322.61
			215239				324.36
			215240				1,072.20
			215241				184.67
			215242				346.55
			215243				101.76
			215244				177.07
			215245				915.73

 

FORM MOR-1a

(04/07)

 

 

Checks Outstanding		Ck. #				Amount
			215246				640.64
			215247				112.14
			215248				112.14
			215249				127.84
			215250				519.83
			215251				1,477.14
			215252				915.73
			215253				142.98
			215254				10,602.60
			215255				473.84
			215256				168.29
			215257				10,921.83
			215258				7,748.42
			215259				1,580.41
			215260				263.79
			215261				184.67
			215262				134.28
			215263				545.35
			215264				330.03
			215265				414.68
			215266				336.46
			215268				168.29
			215269				106.14
			215270				330.03
			215271				183.37
			215272				138.62
			215273				234.34
			215274				6,389.47
			215275				242.61
			215277				747.43
			215278				131.89
			215279				143.14
			215280				179.29
			215281				157.27
			215282				2,070.12
			215283				215.20
			215284				131.75
			215285				545.36
			215286				417.86
			215287				506.97
			215288				112.14
			215289				129.03
			215290				2,122.55
			215291				43,450.76
			215292				3,973.79
			215293				408.87
			215294				252.08
			215295				252.08
			215296				203.86
			215297				203.86
			215298				145.89
			215299				510.32
			215300				7,625.41
			215301				2,093.89
			215302				2,093.89
			215303				117.11
			215304				168.29
			215305				482.07
			215306				857.69
			215307				594.50
			215308				418.20
			215309				594.50
			215310				1,589.11
			215312				3,783.21
			215313				122.61
			215314				4,099.35
			215315				5,084.28
			215316				4,882.63
			215317				2,309.51
			215318				2,110.41
			215319				2,080.97

 

FORM MOR-1a

(04/07)

 

 

Checks Outstanding		Ck. #				Amount
			215320				13,448.75
			215321				6,568.05
			215322				6,568.05
			215323				6,568.04
			215324				3,474.68
			215325				1,428.53
			215326				1,282.33
			215327				1,282.33
			215328				857.81
			215329				824.30
			215330				824.30
			215331				831.27
			215332				824.30
			215333				831.27
			215335				5,387.58
			215336				1,795.83
			215337				1,795.83
			215338				1,853.14
			215339				2,850.96
			215340				107.20
			215341				1,953.29
			215342				1,533.21
			215343				113.43
			215344				309.79
			215345				1,352.38
			215346				554.10
			215347				327.65
			215348				201.07
			215349				374.99
			215350				467.55
			215351				389.64
			215352				467.55
			215353				554.10
			215354				655.27
			215355				259.76
			215356				219.30
			215357				389.64
			215358				3,324.78
			215359				259.76
			215360				554.10
			215361				143.13
			215362				143.69
			215363				259.76
			215364				103.88
			215365				103.88
			215367				147.49
			215368				259.76
			215369				850.17
			215370				554.10
			215371				327.65
			215372				1,662.35
			215373				554.10
			215374				147.50
			215375				138.53
			215376				850.17
			215377				554.10
			215378				129.91
			215379				212.54
			215380				149.14
			215381				259.76
			215382				389.64
			215383				4,939.98
			215384				219.30
			215385				259.76
			215386				4,939.98
			215387				877.28
			215388				107.20
			215389				554.10
			215390				259.76
			215391				843.02
			215392				195.96

 

FORM MOR-1a

(04/07)

 

 

Checks Outstanding		Ck. #				Amount
			215393				259.76
			215394				129.92
			215395				554.10
			215396				3,293.35
			215397				100.54
			215398				268.04
			215399				4,156.03
			215400				268.04
			215401				259.76
			215402				149.13
			215403				389.64
			215404				259.76
			215405				554.10
			215406				212.54
			215407				259.76
			215408				134.06
			215409				3,293.36
			215410				115.71
			215411				115.71
			215412				115.71
			215413				107.80
			215414				160.44
			215415				490.68
			215416				513.87
			215417				192.69
			215418				1,061.18
			215419				1,027.69
			215420				192.69
			215421				337.84
			215422				192.69
			215423				981.44
			215424				727.01
			215425				11,187.74
			215426				1,953.29
			215427				11,654.00
			215428				490.68
			215429				513.87
			215430				981.45
			215431				981.44
			215432				337.84
			215433				192.69
			215434				256.91
			215435				513.88
			215436				327.15
			215437				513.85
			215438				474.32
			215439				142.10
			215440				2,259.25
			215441				577.77
			215442				832.21
			215443				788.89
			215444				182.65
			215445				788.89
			215446				182.65
			215447				591.69
			215448				788.89
			215449				142.11
			215450				2,366.66
			215451				2,366.66
			215452				591.70
			215453				591.69
			215454				142.10
			215455				2,366.66
			215456				1,985.68
			215457				591.69
			215459				147.41
			215460				12,129.18
			215461				172.44
			215462				114.93
			215463				105.34
			215464				131.16

 

FORM MOR-1a

(04/07)

 

 

Checks Outstanding		Ck. #				Amount
			215465				981.45
			215466				1,027.69
			215467				2,805.62
			215468				163.21
			215469				310.49
			215470				316.13
			215471				2,321.40
			215472				2,321.40
			215473				1,547.61
			215474				1,547.61
			215475				1,547.62
			215476				4,642.87
			215477				158.28
			215478				3,060.49
			215479				133.16
			215480				133.16
			215481				1,538.44
			215482				248.66
			215483				3,290.70
			215484				248.66
			215485				102.01
			215486				102.01
			215487				97.74
			215488				133.16
			215489				499.13
			215490				3,290.70
			215491				2,539.08
			215492				137.47
			215493				8,108.21
			215494				248.66
			215495				424.69
			215497				97.74
			215498				1,432.02
			215499				133.16
			215500				2,539.08
			215501				149.15
			215502				311.87
			215503				302.24
			215504				311.87
			215505				197.83
			215506				2,388.67
			215507				779.26
			215508				103.88
			215509				134.19
			215510				313.44
			215511				18,049.30
			215512				134.19
			215513				152.89
			215514				687.39
			215515				245.37
			215516				245.38
			215517				245.37
			215518				1,465.40
			215519				108.62
			215520				1,495.26
			215521				425.03
			215522				425.02
			215523				2,217.41
			215524				2,151.95
			215525				4,669.53
			215526				134.19
			215527				1,136.52
			215528				60,757.01
			215529				7,268.06
			215530				7,268.05
			215531				140.00
			215533				17,047.87
			215534				1,122.18
			215535				179.82
			215536				1,495.38
			215537				2,212.84

 

FORM MOR-1a

(04/07)

 

 

Checks Outstanding		Ck. #				Amount
			215538				434.08
			215539				5,272.18
			215540				135.77
			215541				135.77
			215542				568.94
			215543				325.12
			215544				1,384.90
			215545				392.72
			215546				1,430.96
			215547				108.39
			215548				103.62
			215549				98.18
			215550				294.55
			215551				346.90
			215552				1,430.95
			215553				420.52
			215554				1156.13
			215555				103.91
			215556				392.72
			215557				3298.31
			215558				3298.31
			215561				6819.35
			215562				6819.58
			215563				536.09
			215564				10921.82
			215565				114.94
			215566				534.84
			215567				367.32
			215568				200.37
			215569				137.65
			215570				367.32
			215571				265.64
			215572				4657.27
			215573				115.82
			215574				1580.41
			215575				703.48
			215576				131.16
			215577				200.33
			215578				3293.35
			215579				131.16
			215581				1008.08
			215582				647.34
			215583				647.34
			215584				1495.37
			215585				647.34
			215586				1475.23
			215587				113.68
			215588				169.04
			215589				1008.08
			215590				983.5
			215591				169.04
			215592				983.5
			215593				221.19
			215595				221.19
			215596				169.04
			215597				169.04
			215598				95.59
			215599				5455.32
			215600				369.26
			215601				369.26
			215602				6045.29
			215603				829.89
			215604				829.89
			215605				829.89
			215606				829.89
			215607				12111.91
			215608				313.44
			215609				748.73
			215610				162.47
			215611				235.07
			215612				229.34

 

FORM MOR-1a

(04/07)

 

 

Checks Outstanding		Ck. #				Amount
			215613				162.47
			215614				166.54
			215615				162.47
			215616				748.73
			215617				305.79
			215618				392.32
			215619				296.79
			215620				1136.52
			215621				710.32
			215622				710.32
			215623				744.99
			215624				710.32
			215625				369.6
			215626				369.6
			215627				369.6
			215628				462.01
			215629				462.01
			215630				462.01
			215631				461.93
			215632				396
			215633				194.83
			215634				194.83
			215635				194.83
			215636				194.83
			215637				194.83
			215638				154
			215639				154
			215640				154
			215641				236.77
			215642				236.77
			215643				236.77
			215644				149.47
			215645				110.33
			215646				133.01
			215647				133.01
			215648				1395.18
			215649				260.34
			215650				490.68
			215651				490.69
			215652				213.59
			215653				424.69
			215654				102.38
			215655				106.05
			215656				147.53
			215657				688.15
			215658				140.12
			215659				356.21
			215660				2292.11
			215661				146.53
			215662				146.53
			215663				146.53
			215664				146.53
			215665				146.53
			215666				2217.41
			215667				133.48
			215668				137.48
			215669				5485.3
			215670				468.75
			215671				151.13
			215672				151.14
			215673				151.13
			215674				314.6
			215675				2252.69
			215676				306.11
			215677				306.72
			215678				111.84
			215679				389.64
			113260				14882.5
			113262				13013.5
			113263				10438
			113264				18182.9

 

FORM MOR-1a

(04/07)

 

 

Checks Outstanding		Ck. #				Amount
			113265				141.4
			113266				8921.6
			113267				674.8
			113268				7800
			113269				64101.03
			113271				3121.17
			113272				211.17
			113273				35037.57
			113275				22275
			113276				22806.8
			113277				383.34
			113279				173.8
			113280				1165.53
			113281				2694.53
			113282				16730
			113283				150
			113284				707
			113285				30000
			113286				325
			113287				9750
			113288				6500
			113289				325
			113290				218291.69
			113291				322
			113292				3952.75
			113293				14995
							2,727,206.70

 

FORM MOR-1a

(04/07)

 

 

In re: EMERALD OIL, INC., et al.,	Case No. 16-10704
Debtor	Reporting Period: July 2016

 

MOR - 1b

Schedule of Disbursements by Debtor Entity

For the Period July 1, 2016 through July 31, 2016

Unaudited

 

						Allocation
		Total Disbursements				Emerald Oil, Inc.				Emerald DB, LLC				Emerald NWB, LLC				Emerald WB, LLC				EOX Marketing, LLC				On Behalf of 3rd Parties
						16-10704				16-10705				16-10706				16-10707				16-10708
Trade		$	2,637,414	(2)		$	84,713			$	-			$	1,150,479			$	628,413			$	-			$	773,809
Severance Taxes			543,172	(2)			-				-				244,803				133,716				-				164,654
Royalties and other WI			1,668,459				-				-				-				-				-				1,668,459
Payroll, Payroll Taxes and Benefits			394,704	(3)			394,704				-				-				-				-				-
Rent & Utilities			70,128	(4)			70,128				-				-				-				-				-
Other			52,764	(5)			-				-				20,078				32,686				-				-
Professional fees			2,258,683	(6)			2,258,683				-				-				-				-				-
Interest and Bank Fees			93,977	(7)			93,056				-				-				-				920				-
Total:		$	7,719,301			$	2,901,285			$	-			$	1,415,360			$	794,814			$	920			$	2,606,922

 

Notes:

 

(1) Debtor in possession financing agreement was entered into by Emerald Oil, Inc.

 

(2) Allocated to the Debtors based on the estimate ownership of the underlying working interest in the properties.

 

(3) All individuals employed by Emerald Oil, Inc.

 

(4) Corporate office lease engaged by Emerald Oil, Inc.

 

(5) "Other' represents Insurance, which includes general commercial liability, workers’ compensation and employee benefits, allocated to Emerald Oil, Inc. as the covered items are directly related to the debtor entity.

 

(6) Debtor Professionals employed by Emerald Oil, Inc.

 

(7) Revolving Credit Agreement and related fees/interest were entered into by Emerald Oil, Inc.

 

FORM MOR-1b

(04/07)

 

 

In re: EMERALD OIL, INC., et al.,	Case No. 16-10704
Debtor	Reporting Period: July 2016

 

MOR - 1c

Schedule of Professional Fees and Expenses Paid (1)

For the Period July 1, 2016 through July 31, 2016

(Unaudited)

 

										Check				Amount Paid
Payee		Period Covered		Amount Approved				Payor		Number		Date		Fees				Expenses
Debtor Bankruptcy Professionals
Kirkland & Ellis LLP		5/1/16 - 5/31/16		$	628,197			Emerald Oil, Inc.		113240		7/21/2016		$	596,189			$	32,008
Donlin Rencano & Company (Notice)		4/1/16 - 6/30/16			152,658			Emerald Oil, Inc.		wire		7/12/2016			109,126				43,533
Donlin Rencano & Company (Admin)		3/22/16 - 5/31/16			14,716			Emerald Oil, Inc.		multiple		multiple			14,716				-
Intrepid Financial Partners, LLC					-										-				-
Opportune LLP		5/1/16 - 5/31/16			284,127			Emerald Oil, Inc.		113208		7/13/2016			276,238				7,890
Pachulski Stang Ziehl &Jones LLP		3/22/16 - 4/30/16			117,009			Emerald Oil, Inc.		113247		7/21/2016			95,733				21,276
BDO LLP					-										-				-
Debtor Ordinary Course Professionals
EKS&H LLP					-										-				-
Fredrickson & Byron, P.A.					-										-				-
Vogel Law Firm		4/4/16 - 4/26/16			1,446			Emerald Oil, Inc.		113185		7/7/2016			1,446				-
Husch Blackwell LLP					-										-				-
Taylor Anderson LLP					-										-				-
Mayer Brown LLP					-										-				-
Lender Professionals
Luskin, Stern & Eisler LLP					-										-				-
Vinson & Elkins LLP		4/15/16 - 5/31/16			218,292			Emerald Oil, Inc.		113290		7/28/2016			204,957				13,335
Womble Carlyle Sandridge & Rice, LLP					-										-				-
FTI Consulting, Inc.		6/1/16 - 6/30/16			64,101			Emerald Oil, Inc.		113269		7/28/2016			64,069				32
UCC Professionals
Akin Gump Strauss Hauer & Feld LLP		4/6/16 - 4/30/16			695,637			Emerald Oil, Inc.		113220		7/21/2016			683,768				11,868
Whiteford, Taylor & Preston LLC		4/6/16 - 5/30/16			82,500			Emerald Oil, Inc.		113257		7/21/2016			75,342				7,158
Houlihan Lokey, Inc.					-										-				-
		Total		$	2,258,683									$	2,121,582			$	137,101

 

Notes:

(1) Professional payments listed herein include payments made by the Debtors to retained professionals.

 

FORM MOR-1b

(04/07)

  

 

In re: EMERALD OIL, INC., et al.,	Case No. 16-10704
Debtor	Reporting Period: July 2016

 

MOR - 2

Debtor Statement of Operations (1) (2)

For the Period July 1, 2016 through July 31, 2016

(Unaudited)

 

		Case #				16-10704				16-10707				16-10706				16-10705				16-10708
		Debtors (3):				Emerald Oil, Inc.				Emerald WB, LLC				Emerald NWB, LLC				Emerald DB, LLC				EOX Marketing, LLC				Eliminations (5)				Total Debtors
										(4)				(4)
REVENUES, NET OF TRANSPORTATION EXPENSES
Oil Sales						$	-			$	3,496,235			$	-			$	-			$	5,476,460			$	(5,476,460	)		$	3,496,235
Natural Gas Sales							-				137,568				-				-				-				-				137,568
							-				3,633,803				-				-				5,476,460				(5,476,460	)			3,633,803
OPERATING EXPENSES
Cost of Sales							-				-				-				-				5,439,292				(5,439,292	)			-
Production Expenses							-				2,222,224				-				-				-				-				2,222,224
Production Taxes							-				373,407				-				-				-				-				373,407
General and Administrative Expenses							836,534				-				-				-				-				-				836,534
Depletion of Oil and Natural Gas Properties							-				1,501,967				-				-				-				-				1,501,967
Impairment Expense							-				-				-				-				-				-				-
Depreciation and Amortization							66,828				-				-				-				-				-				66,828
Accretion of Discount on Asset Retirement Obligations							-				-				-				-				-				-				-
Total Expenses							903,362				4,097,598				-				-				5,439,292				(5,439,292	)			5,000,960
INCOME (LOSS) FROM OPERATIONS							(903,362	)			(463,795	)											37,167				(37,167	)			(1,367,157	)
OTHER INCOME (EXPENSE)
Interest Expense							(883,979	)			-				-				-				-				-				(883,979	)
Reorganization Items							(1,661,001	)			-				-				-				-				-				(1,661,001	)
Total Other Expense, Net							(2,544,980	)			-				-				-				-				-				(2,544,980	)
INCOME BEFORE INCOME TAXES							(3,448,342	)			(463,795	)			-				-				37,167				(37,167	)			(3,912,137	)
INCOME TAX BENEFIT							-				-				-				-				-				-				-
NET LOSS						$	(3,448,342	)		$	(463,795	)		$	-			$	-			$	37,167			$	(37,167	)		$	(3,912,137	)

 

Notes:

 

(1) The information contained herein is provided to fulfill the requirements of the Office of the United States Trustee, and is unaudited and subject to future adjustment. Certain totals may not sum due to rounding.

 

(2) The Statement of Operations is prepared on an accrual basis. The accrual basis of accounting recognizes revenue when it is realized and expenses when they are incurred, regardless of when cash is actually received or paid.

 

(3) This statement includes all entities controlled by the Debtors and therefore represents the consolidated financial results of Emerald Oil, Inc.

 

(4) Although title ownership in oil and gas properties is owned by both Emerald WB, LLC (16-10707) and Emerald NWB, LLC (16-10706), the Company has not historically accounted for these interests separately and, instead, have reflected all of their oil and gas activities within Emerald WB, LLC (16-10707).

 

(5) The crude oil purchases by EOX Marketing, LLC, from Emerald Oil, Inc., are eliminated for consolidation purposes.

 

 

In re: EMERALD OIL, INC., et al.,	Case No. 16-10704
Debtor	Reporting Period: July 2016

 

MOR - 3a

Debtor Balance Sheets (1)

As of the Petition Date (2)

(Unaudited)

 

		Case #				16-10704				16-10707				16-10706				16-10705				16-10708
		Debtors (3):				Emerald Oil, Inc.				Emerald WB, LLC (4)				Emerald NWB, LLC (4)				Emerald DB, LLC				EOX Marketing, LLC				Eliminations (8)				Total Debtors
ASSETS
CURRENT ASSETS
Cash and Cash Equivalents						$	435,528			$	-			$	-			$	-			$	3,100,307			$	-			$	3,535,835
Accounts Receivable — Oil and Natural Gas Sales							1,957,354				-				-				-				-				-				1,957,354
Accounts Receivable — Joint Interest Partners							5,852,643				-				-				-				-				-				5,852,643
Other Receivables							700,705				-				-				-				31,871				-				732,576
Intercompany Receivable							3,018,861				-				-				-				-				(3,018,861	)			-
Prepaid Expenses and Other Current Assets							1,734,745				-				-				-				-				-				1,734,745
Total Current Assets							13,699,836				-				-				-				3,132,178				(3,018,861	)			13,813,153
PROPERTY AND EQUIPMENT
Oil and Natural Gas Properties, Full Cost Method
Proved Oil and Natural Gas Properties							-				733,069,244				-				-				-				-				733,069,244
Unproved Oil and Natural Gas Properties							-				79,272,070				-				-				-				-				79,272,070
Equipment and Facilities							987,311				14,552,936				-				-				-				-				15,540,247
Other Property and Equipment							3,483,025				-				-				-				-				-				3,483,025
Total Property and Equipment							4,470,336				826,894,250				-				-				-								831,364,586
Less - Accumulated Depreciation, Depletion and Amortization							(1,406,996	)			(588,210,892	)			-				-				-				-				(589,617,888	)
Total Property and Equipment, Net							3,063,340				238,683,358				-				-				-								241,746,698
Debt Issuance Costs, Net of Amortization							2,697,568				-				-				-				-				-				2,697,568
Deferred Tax Asset, net							1,813,561				-				-				-				-				-				1,813,561
Other Non-Current Assets							290,084				-				-				-				-				-				290,084
Total Assets						$	21,564,389			$	238,683,358			$	-			$	-			$	3,132,178			$	(3,018,861	)		$	260,361,064
LIABILITIES AND STOCKHOLDERS' EQUITY
LIABILITIES SUBJECT TO COMPROMISE (Pre-petition)
Intercompany Payables						$	-			$	-			$	-			$	-			$	3,018,861			$	(3,018,861	)		$	-
Account Payable							42,542,980				-				-				-				29,673				-				42,572,653
Accrued Expenses							5,473,146				-				-				-				264,138				-				5,737,284
Priority Debt (5)							-				-				-				-				-				-				-
Revolving Credit Facility							111,678,151				-				-				-				-				-				111,678,151
Convertible Senior Notes							148,500,000				-				-				-				-				-				148,500,000
Advances from Joint Interest Partners							726,710				-				-				-				-				-				726,710
Asset Retirement Obligations							4,582,522				-				-				-				-				-				4,582,522
Warrant Liability							94,000				-				-				-				-				-				94,000
Deferred Tax Liability, net							1,813,561				-				-				-				-				-				1,813,561
Other Liabilities							-				-				-				-				-				-				-
Total Liabilities Subject to Compromise							315,411,070				-				-				-				3,312,672				(3,018,861	)			315,704,881
Commitments and Contingencies
Series B Voting Preferred Stock (6)							256				-				-				-				-				-				256
STOCKHOLDERS' EQUITY
Common Stock (7)							9,583				-				-				-				-				-				9,583
Additional Paid-In Capital							273,945,998				238,683,358				-				-				-				-				512,629,356
Accumulated Deficit							(567,802,519	)			-				-				-				(180,493	)			-				(567,983,012	)
Total Stockholders' Equity							(293,846,938	)			238,683,358				-				-				(180,493	)			-				(55,344,073	)
Total Liabilities and Stockholders' Equity						$	21,564,389			$	238,683,358			$	-			$	-			$	3,132,178			$	(3,018,861	)		$	260,361,064

 

 

In re: EMERALD OIL, INC., et al.,	Case No. 16-10704
Debtor	Reporting Period: July 2016

 

MOR - 3a

Debtor Balance Sheets (1)

As of the Petition Date (2)

(Unaudited)

 

Notes:

 

(1) The information contained herein is provided to fulfill the requirements of the Office of the United States Trustee, is unaudited and may not be prepared in accordance with US GAAP and is subject to future adjustment. Certain totals may not sum due to rounding.

 

(2) The petition date was March 22, 2016.

 

(3) This statement includes all entities controlled by the Debtors and therefore represents the consolidated financial results of Emerald Oil, Inc.

 

(4) Although title ownership in oil and gas properties is owned by both Emerald WB, LLC (16-10707) and Emerald NWB, LLC (16-10706), the Company has not historically accounted for these interests separately and, instead, have reflected all of their oil and gas activities within Emerald WB, LLC (16-10707).

 

(5) While the amount of priority debt as of the petition date is zero, this does not reflect potential liabilities. The amount of these potential liabilities are unknown at this time.

 

(6) 255,732 issued and outstanding with a liquidation preference value of $256 as of the petition date.

 

(7) Par Value $.001, 500,000,000 shares authorized, 9,582,970 shares issued and outstanding.

 

(8) Intercompany balances between EOX Marketing, LLC and Emerald Oil, Inc., are eliminated for consolidation purposes.

 

 

In re: EMERALD OIL, INC., et al.,	Case No. 16-10704
Debtor	Reporting Period: July 2016

 

MOR - 3b

Debtor Balance Sheets (1)

As of July 31, 2016

(Unaudited)

 

		Case #				16-10704				16-10707				16-10706				16-10705				16-10708
		Debtors (2):				Emerald Oil, Inc.				Emerald WB, LLC (3)				Emerald NWB, LLC (3)				Emerald DB, LLC				EOX Marketing, LLC				Eliminations (7)				Total Debtors
ASSETS
CURRENT ASSETS
Cash and Cash Equivalents						$	2,762,183			$	-			$	-			$	-			$	5,052,473			$	-			$	7,814,656
Accounts Receivable — Oil and Natural Gas Sales							4,206,419				-				-				-				-				-				4,206,419
Accounts Receivable — Joint Interest Partners							5,517,783				-				-				-				-				-				5,517,783
Other Receivables							1,398,208				-				-				-				40,011				-				1,438,219
Intercompany Receivables							4,953,907				-				-				-				-				(4,953,907	)			-
Prepaid Expenses and Other Current Assets							1,308,712				-				-				-				-				-				1,308,712
Total Current Assets							20,147,212				-				-				-				5,092,484				(4,953,907	)			20,285,789
PROPERTY AND EQUIPMENT
Oil and Natural Gas Properties, Full Cost Method
Proved Oil and Natural Gas Properties							-				780,302,468				-				-				-				-				780,302,468
Unproved Oil and Natural Gas Properties							-				32,097,671				-				-				-				-				32,097,671
Equipment and Facilities							987,311				14,429,022				-				-				-				-				15,416,333
Other Property and Equipment							3,483,025				-				-				-				-				-				3,483,025
Total Property and Equipment							4,470,336				826,829,161				-				-				-								831,299,497
Less - Accumulated Depreciation, Depletion and Amortization							(1,700,758	)			(669,021,633	)			-				-				-				-				(670,722,391	)
Total Property and Equipment, Net							2,769,578				157,807,528				-				-				-								160,577,106
Debt Issuance Costs, Net of Amortization							2,392,169				-				-				-				-				-				2,392,169
Deferred Tax Asset, net							1,813,561				-				-				-				-				-				1,813,561
Other Non-Current Assets							512,236				-				-				-				-				-				512,236
Total Assets						$	27,634,756			$	157,807,528			$	-			$	-			$	5,092,484			$	(4,953,907	)		$	185,580,861
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES
Accounts Payable						$	4,827,479			$	-			$	-			$	-			$	-			$	-			$	4,827,479
Debtor-in-possession financing							90,500,000				-				-				-				-				-				90,500,000
Accrued Expenses							-				-				-				-				527,853				-				527,853
Professional Fees							4,225,963				-				-				-				-				-				4,225,963
Total Current Liabilities							99,553,442				-				-				-				527,853				-				100,081,295
LIABILITIES SUBJECT TO COMPROMISE (Pre-petition)
Intercompany Payable							-				-				-				-				4,953,907				(4,953,907	)			-
Account Payable							40,233,709				-				-				-				29,673				-				40,263,382
Accrued Expenses							7,137,691				-				-				-				-				-				7,137,691
Priority Debt (4)							-				-				-				-				-				-				-
Revolving Credit Facility							31,678,151				-				-				-				-				-				31,678,151
Convertible Senior Notes							148,500,000				-				-				-				-				-				148,500,000
Advances from Joint Interest Partners							705,733				-				-				-				-				-				705,733
Asset Retirement Obligations							4,660,343				-				-				-				-				-				4,660,343
Warrant Liability							4,000				-				-				-				-				-				4,000
Deferred Tax Liability, net							1,813,561				-				-				-				-				-				1,813,561
Other Liabilities							-				-				-				-				-				-				-
Total Liabilities Subject to Compromise							234,733,188				-				-	`			-				4,983,579				(4,953,907	)			234,762,861
Total Liabilities							334,286,630				-				-				-				5,511,432				(4,953,907	)			334,844,156
Commitments and Contingencies
Series B Voting Preferred Stock (6)							256				-				-				-				-				-				256
STOCKHOLDERS' EQUITY
Common Stock (6)							9,583				-				-				-				-				-				9,583
Additional Paid-In Capital							354,869,461				157,807,528				-				-				-				-				512,676,989
Accumulated Deficit							(661,531,174	)			-				-				-				(418,948	)			-				(661,950,122	)
Total Stockholders' Equity							(306,652,130	)			157,807,528				-				-				(418,948	)			-				(149,263,550	)
Total Liabilities and Stockholders' Equity						$	27,634,756			$	157,807,528			$	-			$	-			$	5,092,484			$	(4,953,907	)		$	185,580,861

 

 

Notes:

 

(1) The information contained herein is provided to fulfill the requirements of the Office of the United States Trustee, is unaudited and may not be prepared in accordance with US GAAP and is subject to future adjustment. Certain totals may not sum due to rounding.

 

2) This statement includes all entities controlled by the Debtors and therefore represents the consolidated financial results of Emerald Oil, Inc.

 

(3) Although title ownership in oil and gas properties is owned by both Emerald WB, LLC (16-10707) and Emerald NWB, LLC (16-10706), the Company has not historically accounted for these interests separately and, instead, have reflected all of their oil and gas activities within Emerald WB, LLC (16-10707).

 

(4) This does not reflect potential liabilities. The amount of potential liabilities are unknown at this time.

 

(5) 255,732 issued and outstanding with a liquidation preference value of $256 as of the petition date.

 

(6) Par Value $.001, 500,000,000 shares authorized, 9,582,970 shares issued and outstanding.

 

(7) Oil Sales of EOX Marketing, LLC on behalf of Emerald Oil, Inc. and associated intercompany balances are eliminated for consolidation purposes.

 

 

In re: EMERALD OIL, INC., et al.,	Case No. 16-10704
Debtor	Reporting Period: July 2016

 

MOR - 4a

Status of Post-Petition Taxes (1)

As of July 31, 2016

Unaudited

 

		Beginning Tax Liability				Amount Withheld or Accrued				Amount Paid				Date Paid		Check No. or EFT		Ending Tax Liability
Federal
Withholding		$	-			$	66,244			$	(66,244	)		Various		Various		$	-
FICA-Employee			-				14,324				(14,324	)		Various		Various			-
FICA-Employer			-				12,816				(12,816	)		Various		Various			-
Unemployment			-				-				-								-
Income			-				-				-								-
Other			-				-				-								-
Total Federal Taxes		$	-			$	93,384			$	(93,384	)						$	-
State and Local
Withholding			-				13,053				(13,053	)		Various		Various			-
Sales			-				-				-								-
Excise			-				-				-								-
Unemployment			-				-				-			Various		Various			-
Real Property			-				-				-								-
Personal Property			-				-				-								-
Other (2)			543,172				527,853				(543,172	)		7/22/2016		00365			527,853
Total State and Local		$	543,172			$	540,906			$	(556,225	)						$	527,853
Total Taxes		$	543,172			$	634,290			$	(649,609	)						$	527,853

 

Notes:

 

(1) No tax returns including IRS Form 6123 were filed during the reporting period.

 

(2) Severance and extraction taxes are paid on a monthly basis to the respective state in which our producing oil and gas properties are located. The amount represents the estimated portion of gross state taxes (including those remitted on behalf of third parties) to the Company that have accrued since the petition date.

 

FORM MOR-4

(04/07)

 

 

In re: EMERALD OIL, INC., et al.,	Case No. 16-10704
Debtor	Reporting Period: July 2016

 

MOR - 4b

Summary of Unpaid Post-Petition Debts (1)

As of July 31, 2016

Unaudited

 

		Days Aged
		Current				0-30				31-60				61-90				Over 90				Total
Trade Payable		$	3,460,750			$	525,966			$	571,982			$	260,006			$	7,434			$	4,826,138
Wages Payable			-				-				-				-				-				-
Taxes Payable (2)			527,853				-				-				-				-				527,853
Rent/Leases-Building			-				-				-				-				-				-
Rent/Leases-Equipment											-				641				700				1,341
Secured Debt/Adequate Protection Payments			-				-				-				-				-				-
Professional Fees			1,717,643				1,746,510				603,092				158,718				-				4,225,963
Amounts Due to Insiders*			-				-				-				-				-				-
Other			-				-				-				-				-				-
Total Postpetition Debts		$	5,706,246			$	2,272,476			$	1,175,075			$	419,364			$	8,134			$	9,581,294
Percentage of Total			60	%			24	%			12	%			4	%			0	%

 

Notes:

 

(1) The postpetition accounts payable reported represents open and outstanding trade vendor invoices that have been entered into the Debtor's accounts payable system. This summary includes accruals for invoices not yet received and for invoices not yet entered into the Debtor's accounts payable system.

 

(2) Severance and extraction taxes are paid on a monthly basis to the respective state in which our producing oil and gas properties are located. The amount represents the estimated portion of gross state taxes (including those remitted on behalf of third parties) to the Company that have accrued since the Petition Date.

 

 

In re: EMERALD OIL, INC., et al.,	Case No. 16-10704
Debtor	Reporting Period: July 2016

 

MOR – 5

Debtors Account Receivable Reconciliation and Aging (1)

As of July 31, 2016

Unaudited

 

		Days Aged
Debtors		Current				0-30				31-60				61-90				Over 90				Total
Emerald Oil, Inc.		$	3,909,080			$	514,587			$	30,959			$	145,599			$	6,522,185			$	11,122,411
Emerald WB, LLC			-				-				-				-				-				-
Emerald NWB, LLC			-				-				-				-				-				-
Emerald DB, LLC			-				-				-				-				-				-
EOX Marketing, LLC			-				40,011				-				-				-				40,011
Total		$	3,909,080			$	554,598			$	30,959			$	145,599			$	6,522,185			$	11,162,421
Percentage of Total			35	%			5	%			0	%			1	%			58	%

 

Notes:

 

(1) Aging is primarily for the Debtors' joint interest billing and oil and gas sales receivables and does not include intercompany receivables. All amounts are included on a gross basis before any adjustment for estimated bad debts and other uncollectible amounts.

 

FORM MOR-5

(04/07)

 

 

DEBTOR QUESTIONNAIRE

 

Must be completed each month		Yes	No
1.	Have any assets been sold or transferred outside the normal course of business this reporting period?  If yes, provide an explanation below.		X
2.	Have any funds been disbursed from any account other than a debtor in possession account this reporting period?  If yes, provide an explanation below.		X
3.	Have all postpetition tax returns been timely filed?  If no, provide an explanation below.	X
4.	Are workers compensation, general liability and other necessary insurance coverages in effect?  If no, provide an explanation below.	X
5.	Has any bank account been opened during the reporting period?  If yes, provide documentation identifying the opened account(s).  If an investment account has been opened provide the required documentation pursuant to the Delaware Local Rule 4001-3.		X