|6 Months Ended|
Jun. 30, 2017
|Subsequent Events [Abstract]|
Note 9 – Subsequent Events
On July 6, 2017, the Company closed on a private placement of shares of the Company’s common stock providing gross proceeds of $15 million. As part of the offering, the Company issued 10,000,000 shares of its common stock for $1.50 per share in this private placement with certain existing shareholders. The proceeds from this offering are being used to finance capital expenditures to support existing contracts the Company has in both Oklahoma and Argentina, for working capital and for other general corporate purposes.
On July 20, 2017, the Company executed a one-year contract with a U.S. oil and gas exploration and production company to provide pressure pumping operations in the north central region of Oklahoma, thus expanding our operations within our United States region. The Company expects that the work to be performed should support a second U.S. well stimulation crew. The contract does not require the customer to award any specific volume of work to the Company, however the contract does provide the Company with the exclusive right to complete all the customer’s wells as long as we meet the operational standards required.
On July 24, 2017, the Company entered into an Equipment Purchase Agreement (the “Purchase Agreement”) with an equipment manufacturer providing for the Company’s purchase of used well-stimulation pumps, blenders, data vans and related equipment, comprising approximately 30 items in all, for an aggregate purchase price of $16.8 million. The purchase of each item is conditional upon a determination that each item is field-ready as defined in the Purchase Agreement.
On August 8, 2017, the Company closed on a private placement of shares of the Company’s common stock providing gross proceeds of $28.0 million. As part of the offering, the Company issued an aggregate of 19,580,420 shares of its common stock for $1.43 per share in this private placement with two existing stockholders and several new institutional investors. The proceeds from this offering will be used to finance capital expenditures to support its most recent customer contract (noted above with reference to the July 20, 2017 one-year contract), for working capital and for other general corporate purposes.
The entire disclosure for significant events or transactions that occurred after the balance sheet date through the date the financial statements were issued or the date the financial statements were available to be issued. Examples include: the sale of a capital stock issue, purchase of a business, settlement of litigation, catastrophic loss, significant foreign exchange rate changes, loans to insiders or affiliates, and transactions not in the ordinary course of business.
Reference 1: http://www.xbrl.org/2003/role/presentationRef