UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C.

 

FORM 10-Q

  

(Mark One)

 

[X] QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

 

For the quarterly period ended September 30, 2017

 

[  ] TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE EXCHANGE ACT

 

For the transition period from                 to

 

Commission file number 333-141875

 

TIGER OIL AND ENERGY, INC.

(Exact name of Registrant as specified in its charter)

 

NEVADA	20-5936198
(State or other jurisdiction of incorporation or organization)	(IRS Employer Identification No.)

 

7230 Indian Creek Ln., Ste 201

Las Vegas, NV 89149

(Address of principal executive offices)

 

(702) 839-4029

(Registrant’s telephone number, including area code)

 

(Former name, former address and former fiscal year, if changed since last report)

 

Indicate by check mark whether the registrant (1) filed all reports required to be filed by Section 13 or 15(d) of the Exchange Act during the past 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes [X] No [  ]

 

Indicate by checkmark whether the Registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).

 

[X] Yes [  ] No (Not Required)

 

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in rule 12b-2 of the Exchange Act.

 

Large accelerated filer [ ]	Accelerated filer [ ]
Non-accelerated filer [ ]	Smaller reporting company [X]
(Do not check if a smaller reporting company)

 

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes [  ] No [X]

 

APPLICABLE ONLY TO CORPORATE ISSUERS

 

As of October 27, 2017, the Company had 37,105,062 issued and outstanding shares of its common stock and 22,013 issued shares of preferred stock.

 

TIGER OIL AND ENERGY, INC.

 

INDEX

 

		Page
PART I - FINANCIAL INFORMATION:		2
Item 1.	Financial Statements	3
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	4
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	6
Item 4.	Controls and Procedures	6
PART II - OTHER INFORMATION		6
Item 1.	Legal Proceedings	6
Item 1A.	Risk Factors	7
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	7
Item 3.	Defaults Upon Senior Securities	7
Item 4.	Mine Safety Disclosures	7
Item 5.	Other Information	7
Item 6.	Exhibits	7
Signatures		8

 

  

PART I — FINANCIAL INFORMATION

 

The accompanying interim unaudited financial statements of Tiger Oil and Energy, Inc. (a Nevada corporation) are condensed and, therefore, do not include all disclosures normally required by accounting principles generally accepted in the United States of America. These statements should be read in conjunction with the Company’s most recent annual financial statements for the year ended December 31, 2016 included in a 10-K filed with the U.S. Securities and Exchange Commission (“SEC”) on April 17, 2017. In the opinion of management, all adjustments necessary for a fair presentation have been included in the accompanying interim financial statements and consist of only normal recurring adjustments. The results of operations presented in the accompanying interim financial statements for the three and nine months ended September 30, 2017 are not necessarily indicative of the operating results that may be expected for the full year ending December 31, 2017.

   

 

TIGER OIL AND ENERGY, INC.

  

FINANCIAL STATEMENTS

   

		Page(s)
Condensed Consolidated Balance Sheets as of September 30, 2017 (Unaudited) and December 31, 2016			F-1
Condensed Consolidated Statements of Operations for the three and nine months ended September 30, 2017 and 2016 (Unaudited)			F-2
Condensed Consolidated Statements of Cash Flows for the nine months ended September 30, 2017 and 2016 (Unaudited)			F-3
Notes to the Condensed Consolidated Financial Statements			F-4

  

 

TIGER OIL AND ENERGY, INC.
Consolidated Balance Sheets
		September 30,				December 31,
		2017				2016
		(Unaudited)
ASSETS
CURRENT ASSETS
Cash and cash equivalents		$	1,521			$	272
Prepaid expenses and deposits			200				200
Total Current Assets			1,721				472
OTHER ASSETS
Oil and gas properties, net (full cost method)			—				—
TOTAL ASSETS		$	1,721			$	472
LIABILITIES AND STOCKHOLDERS' DEFICIT
CURRENT LIABILITIES
Accounts payable and accrued expenses		$	134,169			$	114,380
Accounts payable - related party			60,289				33,000
Notes payable			—				—
Notes payable - related party			76,500				61,500
Convertible notes payable			600,000				600,000
Total Current Liabilities			870,958				808,880
LONG-TERM LIABILITIES
Asset retirement obligation			12,948				12,323
Total Long-Term Liabilities			12,948				12,323
TOTAL LIABILITIES			883,906				821,203
STOCKHOLDERS' DEFICIT
Preferred stock - 1,000,000 shares authorized, $0.001 par value;
22,013 and 42,013 shares issued and outstanding		$	22			$	42
Common stock - 74,000,000 shares authorized,
$0.001 par value; 37,105,062 and 42,728,159
shares issued and outstanding, respectively			37,105				42,728
Additional paid-in capital			4,682,464				4,676,821
Accumulated deficit			(5,601,776	)			(5,540,322	)
Total Stockholders' Deficit			(882,185	)			(820,731	)
TOTAL LIABILITIES AND STOCKHOLDERS'
DEFICIT		$	1,721			$	472
The accompanying notes are an integral part of these consolidated financial statements.

 

 

TIGER OIL AND ENERGY, INC.

Consolidated Statements of Operations

(Unaudited)

		For the Three Months Ended								For the Nine Months Ended
		September 30,								September 30,
		2017				2016				2017				2016
REVENUES		$	—			$	—			$	—			$	—
OPERATING EXPENSES
Lease operating expense			—				769				5,372				769
Accretion expense			216				198				625				579
Legal and professional			6,665				29,612				9,365				53,802
General and administrative			9,760				27,575				24,913				41,023
Total Operating Expenses			16,641				58,154				40,275				96,173
LOSS FROM OPERATIONS			(16,641	)			(58,154	)			(40,275	)			(96,173	)
OTHER  INCOME (EXPENSE)
Interest expense			(8,514	)			(10,575	)			(25,071	)			(26,761	)
Gain on settlement of debt			—				58,684				3,892				58,684
Total Other Income
(Expense)			(8,514	)			48,109				(21,179	)			31,923
LOSS BEFORE TAXES			(25,155	)			(10,045	)			(61,454	)			(64,250	)
Provision for income taxes			—				—				—				—
NET LOSS		$	(25,155	)		$	(10,045	)		$	(61,454	)		$	(64,250	)
BASIC AND DILUTED LOSS
PER SHARE		$	(0.00	)		$	(0.00	)		$	(0.00	)		$	(0.00	)
BASIC AND DILUTED
WEIGHTED AVERAGE
NUMBER OF SHARES
OUTSTANDING			37,105,062				42,728,159				38,515,577				42,728,159
The accompanying notes are a integral part of these consolidated financials statements.

 

 

TIGER OIL AND ENERGY, INC.

Consolidated Statements of Cash Flows

(Unaudited)

		For the Nine Months Ended
		September 30,
		2017				2016
OPERATING ACTIVITIES
Net loss		$	(61,454	)		$	(64,250	)
Adjustments to Reconcile Net Loss to Net
Cash Used by Operating Activities:
Depreciation, amortization and accretion expense			625				579
Gain on settlement of debt			3,892				(58,684	)
Changes in operating assets and liabilities:
Accounts payable and accrued liabilities			15,897				41,901
Accounts payable - related party			27,289				11,000
Net Cash Used in Operating Activities			(13,751	)			(69,454	)
INVESTING ACTIVITIES
Proceeds from property settlement			—				58,684
Net Cash Used in Investing Activities			—				58,684
FINANCING ACTIVITIES
Proceeds from notes payable - related party			15,000				41,500
Repayments on note payable			—				—
Repayments of notes payable - related party			—				(45,000	)
Net Cash Provided by Financing Activities			15,000				(3,500	)
NET INCREASE (DECREASE) IN CASH		$	1,249			$	(14,270	)
CASH AT BEGINNING OF PERIOD			272				15,047
CASH AT END OF PERIOD		$	1,521			$	777
SUPPLEMENTAL DISCLOSURES OF
CASH FLOW INFORMATION
CASH PAID FOR:
Income taxes		$	—			$	—
Interest			—				—
NON-CASH FINANCING AND INVESTING ACTIVITIES:
Beneficial conversion on convertible note		$	—			$	—
Asset retirement obligations		$	—			$	—
The accompanying notes are an integral part of these consolidated financial statements.

  

  

TIGER OIL AND ENERGY, INC.

Notes to Condensed Consolidated Financial Statements

September 30, 2017

(Unaudited)

 

NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

 

The accompanying financial statements have been prepared by the Company without audit. In the opinion of management, all adjustments (which include only normal recurring adjustments) necessary to present fairly the financial position, results of operations, and cash flows at September 30, 2017, and for all periods presented herein, have been made.

 

Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America have been condensed or omitted. It is suggested that these condensed financial statements be read in conjunction with the financial statements and notes thereto included in the Company's December 31, 2016 audited financial statements. The results of operations for the periods ended September 30, 2017 and 2016 are not necessarily indicative of the operating results for the full year.

 

NOTE 2 – GOING CONCERN

 

The Company's financial statements are prepared using generally accepted accounting principles in the United States of America applicable to a going concern which contemplates the realization of assets and liquidation of liabilities in the normal course of business. The Company has not yet established an ongoing source of revenues sufficient to cover its operating costs and allow it to continue as a going concern. The ability of the Company to continue as a going concern is dependent on the Company obtaining adequate capital to fund operating losses until it becomes profitable. If the Company is unable to obtain adequate capital, it could be forced to cease operations.

 

In order to continue as a going concern, the Company will need, among other things, additional capital resources. Management's plan is to obtain such resources for the Company by obtaining capital from management and significant shareholders sufficient to meet its minimal operating expenses and seeking equity and/or debt financing. However management cannot provide any assurances that the Company will be successful in accomplishing any of its plans.

 

The ability of the Company to continue as a going concern is dependent upon its ability to successfully accomplish the plans described in the preceding paragraph and eventually secure other sources of financing and attain profitable operations. The accompanying financial statements do not include any adjustments that might be necessary if the Company is unable to continue as a going concern.

 

NOTE 3 – SIGNIFICANT ACCOUNTING POLICIES

 

Use of Estimates

 

The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates.

  

 

TIGER OIL AND ENERGY, INC.

Notes to Condensed Consolidated Financial Statements

September 30, 2017

(Unaudited)

 

NOTE 3 – SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

 

Consolidation

 

The accompanying consolidated financial statements included all of the accounts of the Company and its wholly-owned subsidiaries, C2R, Inc., a Nevada Corporation, and Jett Rink Oil, LLC, a Kansas Limited Liability Company. All intercompany transactions have been eliminated.

 

Recent Accounting Pronouncements

 

Management has considered all recent accounting pronouncements issued since the last audit of the Company’s financial statements. The Company’s management believes that these recent pronouncements will not have a material effect on the Company’s financial statements.

 

Cash and Cash Equivalents

 

Cash and cash equivalents include cash in banks and financial instruments which mature within six months of the date of purchase.

 

Oil and Gas Properties

 

The Company uses the full cost method of accounting for oil and natural gas properties. Under this method, all acquisition, exploration and development costs, including certain payroll, asset retirement costs, other internal costs, and interest incurred for the purpose of finding oil and natural gas reserves, are capitalized. Internal costs that are capitalized are directly attributable to acquisition, exploration and development activities and do not include costs related to production, general corporate overhead or similar activities. Costs associated with production and general corporate activities are expensed in the period incurred. Proceeds from the sale of oil and natural gas properties are applied to reduce the capitalized costs of oil and natural gas properties unless the sale would significantly alter the relationship between capitalized costs and proved reserves, in which case a gain or loss is recognized.

 

Capitalized costs associated with impaired properties and capitalized costs related to properties having proved reserves, plus the estimated future development costs, and asset retirement costs under Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 410 “Asset Retirement and Environmental Obligations” (FASB ASC 410), are amortized using the unit-of-production method based on proved reserves. Capitalized costs of oil and natural gas properties, net of accumulated amortization and deferred income taxes, are limited to the total of estimated future net cash flows from proved oil and natural gas reserves, discounted at ten percent, plus the cost of unevaluated properties.  Under certain specific conditions, companies could elect to use subsequent prices for determining the estimated future net cash flows. The use of subsequent pricing is no longer allowed. There are many factors, including global events that may influence the production, processing, marketing and price of oil and natural gas. A reduction in the valuation of oil and natural gas properties resulting from declining prices or production could adversely impact depletion rates and capitalized cost limitations. Capitalized costs associated with properties that have not been evaluated through drilling or seismic analysis, including exploration wells in progress at September 30, 2017, are excluded from the unit-of-production amortization. Exclusions are adjusted annually based on drilling results and interpretative analysis. 

 

 

TIGER OIL AND ENERGY, INC.

Notes to Condensed Consolidated Financial Statements

September 30, 2017

(Unaudited)

 

NOTE 3 – SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

 

Oil and Gas Properties (Continued)

 

Sales of oil and natural gas properties are accounted for as adjustments to the net full cost pool with no gain or loss recognized, unless the adjustment would significantly alter the relationship between capitalized costs and proved reserves. If it is determined that the relationship is significantly altered, the corresponding gain or loss will be recognized in the statements of operations.

  

Costs of oil and gas properties are depleted using the unit-of-production method. For the six months ended September 30, 2017 and 2016, the Company recognized $-0- and $-0-, respectively, of depletion expense related to oil and gas production during the period.

 

Ceiling Test

 

In applying the full cost method, the Company performs an impairment test (ceiling test) at each reporting date, whereby the carrying value of property and equipment is compared to the value of its proved reserves discounted at a ten percent interest rate of future net revenues, based on current economic and operating conditions, plus the cost of properties not being amortized, plus the lower of cost or fair market value of unproved properties included in costs being amortized, less the income tax effects related to book and tax basis differences of the properties.  

 

Revenue Recognition

 

Revenues from the sale of oil and natural gas are recognized when the product is delivered at a fixed or determinable price, title has transferred, and collectability is reasonably assured.  For oil sales, this occurs when the customer takes delivery of oil from the operators’ storage tanks.

 

Loss per Share

 

The Company has adopted ASC 260, “Earnings Per Share,” (“EPS”) which requires presentation of basic and diluted EPS on the face of the income statement for all entities with complex capital structures, and requires a reconciliation of the numerator and denominator of the basic EPS computation to the numerator and denominator of the diluted EPS computation. In the accompanying financial statements, basic loss per share is computed by dividing net loss by the weighted average number of shares of common stock outstanding during the period. The Company had 1,200,000 potential dilutive shares of common stock as of September 30, 2017 that were excluded as their effect was anti-dilutive.

 

NOTE 4 – OIL AND GAS PROPERTIES

 

On April 3, 2014, the Company signed an election to participate in the first of three wells with Toto Energy, LLC in Cowley County, Kansas. The Company will earn a 30 percent working interest and a 24.45 percent net royalty interest in the well. The Company capitalized $213,000 of cash payments made to commence operations development of the well.

  

 

TIGER OIL AND ENERGY, INC.

Notes to Condensed Consolidated Financial Statements

September 30, 2017

(Unaudited)

 

NOTE 4 – OIL AND GAS PROPERTIES (CONTINUED)

 

On May 10, 2014, the Company signed an election to participate in the second of three wells with Toto Energy, LLC in Cowley County, Kansas. The Company will earn a 30 percent working interest and a 24.45 percent net royalty interest in the well. The Company capitalized $189,000 of cash payments made to commence operations development of the well.

 

On July 23, 2016 the Company received $58,684 from the operator of two of its oil and gas leases. The payment received represented a partial refund of the Company’s previous $404,837 in payments made to the operator pursuant to the terms of an Authorization for Expenditures (“AFE”) Agreement. The Company’s original payments under the AFE were capitalized to oil and gas properties in 2014. All capitalized costs pursuant to the AFE were fully impaired during the year ended December 31, 2015. As the capitalized costs had been previously impaired, the $58,684 was recorded as a gain on property settlement for the period ended December 31, 2016.

 

Oil and gas properties are stated at cost. As of September 30, 2017 and December 31, 2016, oil and gas properties, net consisted of the following:

 

		September 30, 2017				December 31, 2016
Unproved properties		$	470,377			$	470,377
Impairment of oil and gas leases			(470,377	)			(470,377	)
Oil and gas properties, net		$	—			$	—

 

NOTE 5 – CONVERTIBLE NOTES PAYABLE

 

On January 3, 2014, the Company received $600,000 in connection with a convertible note financing commitment, the terms of which call for the Company to receive three tranches of $200,000 each on a callable convertible note wherein the Company borrows the sum at five percent interest for one year and the investor can elect to continue to receive the interest on the note or have the Company issue the investor shares of common stock of the Company at $0.50 per share to retire the debt. The notes came due on December 12, 2014, and as of September 30, 2017 the notes were in default. At September 30, 2017 accrued interest on the notes totaled $112,054.

 

NOTE 6 – NOTES PAYABLE – RELATED PARTY

 

On June 11, 2015 the Company borrowed $5,000 from a related-party entity. Pursuant to the terms of the note, the principal accrues interest at a rate of five percent per annum, is unsecured, and was due in full on June 11, 2016. Subsequent to the initial borrowing the Company borrowed an additional $57,500 from the same lender under the same terms. On July 25, 2016 the Company paid $40,000 against the outstanding principal of the notes. Accrued interest totaling $1,340 was forgiven at the time of payment, and recorded as additional paid-in capital. At September 30, 2017 the total outstanding principal balance due to the lender was $22,500, and aggregate accrued interest on the notes totaled $1,304.

  

 

TIGER OIL AND ENERGY, INC.

Notes to Condensed Consolidated Financial Statements

September 30, 2017

(Unaudited)

 

NOTE 6 – NOTES PAYABLE – RELATED PARTY (CONTINUED)

 

On May 6, 2015 the Company borrowed $5,000 from an unrelated third-party entity. Pursuant to the terms of the note, the principal accrued interest at a rate of five percent per annum, was unsecured, and was due in full on May 6, 2016. On July 25, 2015 the note, inclusive of all unpaid principal and interest, was transferred to and assumed by a related party. On July 25, 2016 the Company repaid the full $5,000 principal balance due under the terms of the note. Accrued interest on the note totaling $305 was forgiven at the time of payment, and recorded as additional paid-in capital. During the three-month period ended September 30, 2017, the Company borrowed an additional $5,000 from the same entity. This note accrues interest at a rate of five percent per annum, and is due twelve months from the note date. As of September 30, accrued interest on the note totaled $1,304.

 

On March 7, 2016 the Company borrowed $10,000 from a related-party. Pursuant to the terms of the note the principal accrues interest at a rate of five percent per annum, is unsecured, and is due in full on May 6, 2017. On May 2, 2016 the Company borrowed an additional $4,000 under the same terms. On October 4, 2016 the Company borrowed an additional $25,000 under the same terms. During the nine-month period ended September 30, 2017, the Company borrowed an additional $10,000 under the same terms. At September 30, 2017 the aggregate principal balance of the notes totaled $49,000 and aggregate accrued interest on the notes totaled $2,588.

 

NOTE 7 – ASSET RETIREMENT OBLIGATIONS

 

The total future asset retirement obligation is estimated by management based on the Company’s net working interests in all wells and facilities, estimated costs to reclaim and abandon wells and facilities and the estimated timing of the costs to be incurred in future periods. At September 30, 2017 and December 31, 2016 the Company estimated the undiscounted cash flows related to asset retirement obligation to total approximately $105,500. The actual costs to settle the obligation are expected to occur in approximately 25 years. Through September 30, 2017, the Company established an asset retirement obligation of $9,860 for the wells acquired by the Company, which was capitalized to the value of the oil and gas properties. The fair value of the liability at September 30, 2017 and December 31, 2016 is estimated to be $12,948 and $12,323, respectively, using a risk free rate of 9.31 percent and inflation rates between 3.87 and 4.81 percent. Total accretion expense on the asset retirement obligation was $625 and $579 for the nine-month periods ended September 30, 2017 and 2016, respectively.

  

NOTE 8 – STOCKHOLDERS’ DEFICIT

 

The Company has 1,000,000 preferred shares authorized at a par value of $0.001 and 74,000,000 common shares authorized at par value of $0.001.  As of September 30, 2017 the Company has 22,013 shares of preferred stock and 37,105,062 shares of common stock issued and outstanding.  

 

On July 29, 2016 the Company repaid in full the principal balance of multiple related-party notes payable. Pursuant to this transaction, the note holders agreed to forgive an aggregate of $1,645 in accrued interest related to the notes. The Company recorded this forgiveness as a credit to additional paid-in capital, as the note holders were related parties.

 

During the nine-month period ended September 30, 2017, the Company cancelled 20,000 shares of preferred stock, and 5,623,097 shares of common stock.

 

   

TIGER OIL AND ENERGY, INC.

Notes to Condensed Consolidated Financial Statements

September 30, 2017

(Unaudited)

 

NOTE 9 – RELATED-PARTY TRANSACTIONS

 

At September 30, 2017 and December 31, 2016 the Company owed its Chief Financial Officer $37,000 and $28,000, respectively, in accrued director fees. An additional $72,289 and $44,000, respectively, was owed to the Company’s Chief Executive Officer in accrued director fees, expense reimbursements and notes payable.

 

NOTE 10 – COMMITMENTS AND CONTINGENCIES

 

During the year ended December 31, 2015 the Company became party to a legal action brought about by an unrelated third-party individual, wherein the plaintiff alleges the Company “participated and/or conspired in a scheme to disseminate spam emails” which were misleading in order to encourage individuals to purchase shares of the Company’s common stock at an artificial and/or inflated stock price. On October 10, 2016, the Company reached a settlement agreement whereby the Company agreed to pay $11,000 in exchange for a general release of all claims against the Company. As of October 10, 2016 the case is considered fully resolved and closed.

 

NOTE 11 – SUBSEQUENT EVENTS

 

In accordance with ASC 855-10, Company management reviewed all material events through the date of this report and there are no material subsequent events to report other than those listed below.

 

  

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations.

  

This 10Q contains certain forward-looking statements and our future operating results could differ materially from those discussed herein. Such forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Given these uncertainties, readers are cautioned not to place undue reliance on such forward-looking statements. We disclaim any obligation to update any such factors or to announce publicly the results of any revisions of the forward-looking statements contained herein to reflect future events or developments.

 

Going Concern

 

The future of our company is dependent upon its ability to obtain financing and upon future profitable operations from the sale of products and services through our websites. Management has plans to seek additional capital through a private placement and public offering of its common stock, if necessary. Our auditors have included a going concern paragraph in their audit report dated April 17, 2017 included in our annual report on Form 10-K because uncertainties raise doubts about the Issuers ability to continue as a going concern.

 

Corporate Overview

 

Unless otherwise indicated, in this 10Q, references to “we,” “our,” “us,” the “Company,” “TGRO” refer to Tiger Oil and Energy, Inc., a Nevada corporation (formerly UTEC, Inc.). Future plans include the exploration, development and production of oil and gas in the United States. Our current focus is to secure financing to increase our holdings and develop our current oil and gas assets over the next twelve months.

 

The Company through its acquisition of Jett Rink LLC owns interests in two oil and gas wells for approximately 50 acres located in Creek County, State of Oklahoma, together with any personal property and lease equipment located thereon. These two wells are shut-in and produce no revenue.

 

On April 9, 2014 we elected to partner with TOTO Energy LLC and drill our first well on the Cowley County leases. The Company paid $24,000 for a 30% WI in the Stalnaker lease and agreed to spend $239,000 for our share of drilling costs of the Stalnaker 17-1 well.

 

On May 10, 2014 we elected to partner with TOTO Energy LLC and drill our second well on the Cowley County leases. The Company holds a 30% WI in the DeFore lease and agreed to spend $189,000 for our share of drilling costs of the DeFore 19-1 well. This well was fracked and is producing oil and revenue to the Company, although due in part to low oil prices the DeFore well did not produce or earn revenues during the three months ended March 31, 2017.

 

Our current focus is to secure financing to increase our holdings and develop our current oil and gas assets over the next twelve months.

 

For the Three Months Ended September 30, 2017 and 2016

 

Revenues

 

Revenues for the three-month period ended September 30, 2017 were $-0-, compared to $-0- for the comparable period of 2016. This lack of revenues for both periods resulted primarily from conscious decision to slow oil and gas production due to low oil and gas prices. As oil prices increase the Company anticipates increased production and revenues will be derived from the DeFore well.

 

 

Operating Expenses

 

Operating expenses for the three months ended September 30, 2017 and 2016 were $16,641 and $58,154, respectively. Of these operating expenses, professional fees totaled $6,665 and $29,612, respectively; general and administrative expenses totaled $9,760 and $27,575, respectively; lease operating expenses totaled $-0- and $769, respectively; and accretion expense totaled $216 and $198, respectively, for the three months ended September 30, 2017 and 2016. Professional fees decreased during the current period primarily due to a decrease in legal fees relating to legal defense and subsequent negotiation of a legal settlement. General and administrative expenses decreased during the current period, due primarily to an $11,000 judgment expense recognized during the 2016 period.

 

Other Income (Expenses)

 

During the three months ended September 30, 2017 and 2016, the Company recognized interest expense in the amount of $8,514 and $10,575, respectively. Interest expense decreased primarily due to a decrease in notes payable upon which interest accrues. Additionally, the Company recognized a gain on settlement of debt in the amount of $58,684 during the 2016 period.

 

Net Loss

 

For the three months ended September 30, 2017 and 2016, the Company recognized a net loss in the amounts of $25,155 and $10,045, respectively. The slight increase in net loss was largely the result of the decreased legal and professional fees, partially offset by a gain on settlement of debt recognized during the 2016 period.

 

For the Nine Months Ended September 30, 2017 and 2016

 

Revenues

 

Revenues for the nine-month period ended September 30, 2017 were $-0-, compared to $-0- for the comparable period of 2016. This lack of revenues for both periods resulted primarily from conscious decision to slow oil and gas production due to low oil and gas prices. As oil prices increase the Company anticipates increased production and revenues will be derived from the DeFore well.

 

Operating Expenses

 

Operating expenses for the nine months ended September 30, 2017 and 2016 were $58,154 and $96,173, respectively. Of these operating expenses, professional fees totaled $9,365 and $53,802, respectively; general and administrative expenses totaled $24,913 and $41,023, respectively; lease operating expenses totaled $5,372 and $769, respectively; and accretion expense totaled $625 and $579, respectively, for the nine months ended September 30, 2017 and 2016. Professional fees decreased during the current period primarily due to a decrease in legal fees relating to legal defense and subsequent negotiation of a legal settlement. Lease operating expenses increased due to some minimal preparatory work on the Company’s oil and gas properties, while general and administrative expenses decreased during the current period, due primarily to an $11,000 judgment expense recognized during the 2016 period.

 

Other Income (Expenses)

 

During the nine months ended September 30, 2017 and 2016, the Company recognized interest expense in the amount of $25,071 and $27,761, respectively. Interest expense increased primarily due to an increase in notes payable upon which interest accrues. Additionally, the Company recorded a gain on settlement of debts in the amount of $3,892 during the current period, and a gain on settlement of debt totaling $58,684 in the 2016 period.

 

Net Loss

 

For the nine months ended September 30, 2017 and 2016, the Company recognized a net loss in the amounts of $61,454 and $64250, respectively. The decrease in net loss was largely the result of the decreased legal and professional fees, partially offset by decreased gain on settlement of debt during the current period.

 

 

Liquidity and Capital Resources

 

As of September 30, 2017, the Company had $1,721 in current assets, consisting of $1,521 in cash, and deposits of $200, compared to $472 in current assets at December 31, 2016, which consisted of cash of $272 and deposits of $200. Total liabilities at September 30, 2017 totaled $883,906 compared to $821,203 at December 31, 2016. At September 30, 2017 the Company had a current ratio of 0.01.

 

The Company estimates that it will require $400,000 to accomplish its short-term goal of bringing shut-in wells back into production and the company's sole source of liquidity to this point has been through the sale of common stock. Such funding that is required to maintain liquidity will come in the form of equity sales of common stock.

 

Cash used in operations totaled $13,751 and $66,454 for the nine months ended September 30, 2017 and 2016, respectively. The decrease in cash used in operations results primarily from a decreased net loss for the period, and an increase in accounts payable and accrued expenses. Cash provided by investing activities totaled $-0- and $58,684, respectively, and cash provided (used in) by financing activities totaled $15,000 and $(3,500) for the nine months ended September 30, 2017 and 2016, respectively.

 

Item 3. Quantitative and Qualitative Disclosures About Market Risk.

 

Not applicable.

 

Item 4. Controls and Procedures.

 

EVALUATION OF DISCLOSURE CONTROLS AND PROCEDURES

 

As of September 30, 2017 under the direction of the Chief Executive Officer and Chief Financial Officer, the Company evaluated the effectiveness of the design and operation of our disclosure controls and procedures, as defined in Rule 13a — 15(e) under the Securities Exchange Act of 1934, as amended. Based on the evaluation of these controls and procedures required by paragraph (b) of Sec. 240.13a-15 or 240.15d-15 the disclosure controls and procedures are not effective.

 

The Company maintains a set of disclosure controls and procedures designed to ensure that information required to be disclosed by us in our reports filed under the securities Exchange Act, is recorded, processed, summarized, and reported within the time periods specified by the SEC’s rules and forms. Disclosure controls are also designed with the objective of ensuring that this information is accumulated and communicated to our management, including our Chief Executive Officer and Chief Financial Officer, as appropriate, to allow timely decisions regarding required disclosure.

  

CHANGES IN INTERNAL CONTROLS.

 

There was no change in our internal controls or in other factors that could affect these controls during our last fiscal quarter that has materially affected, or is reasonably likely to materially affect our internal control over financial reporting.

 

The Company has not taken any steps at this time to address these weaknesses but will formulate a plan before fiscal year ending December 31, 2017.

  

PART II - Other Information.

 

Item 1. Legal Proceedings

 

During the year ended December 31, 2015 the Company became party to a legal action brought about by an unrelated third-party individual, wherein the plaintiff alleges the Company “participated and/or conspired in a scheme to disseminate spam emails” which were misleading in order to encourage individuals to purchase shares of the Company’s common stock at an artificial and/or inflated stock price. On October 10, 2016, the Company reached a settlement agreement whereby the Company agreed to pay $11,000 in exchange for a general release of all claims against the Company. As of October 10, 2016 the case was considered fully resolved and closed.

 

 

Item 1A. Risk Factors

 

None. 

 

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds

  

None

 

Item 3. Defaults Upon Senior Securities

 

None.

 

Item 4. Mine Safety Disclosures

 

None.

 

Item 5. Other Information

 

On January 1, 2014 the Board of Directors agreed to compensate its two directors at $1,000 per month each.

  

Item 6. Exhibits

 

Exhibits:

 

Exhibit No.		Document		Location
31.1		Rule 13a-41(a)/15d-14(a) Certificates		Included
31.2		Rule 13a-41(a)/15d-14(a) Certificates		Included
32.1		Section 1350 Certifications		Included

 

 

SIGNATURES

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

 

TIGER OIL AND ENERGY, INC.

 

October 27, 2017

 

/s/ Kenneth B. Liebscher
Kenneth B. Liebscher, Director & CEO