|3 Months Ended|
Dec. 31, 2018
|Subsequent Events [Abstract]|
NOTE 10 – SUBSEQUENT EVENTS
On February 11, 2019, the Company executed a letter agreement (the “Agreement”) whereby the Company agreed to a new term loan facility (the “Term Loan Facility”) to be provided by Delek GOM Investments LLC (“Delek GOM"), a wholly owned subsidiary of Delek Group Ltd. Delek GOM is a working interest partner in the Company’s Canoe and Tau prospects. The Term Loan Facility provides the Company with up to $11 million to be drawn in amounts at the Company’s discretion with proceeds to be used for capital expenditures associated with the Company’s drilling program. Borrowings under the Term Loan Facility mature in six months and bear interest at the rate of 5.0% and are secured by the assets of the Company. The Agreement requires the Company to pay down the Term Loan with proceeds from the sale of any equity securities and any refunds related to joint drilling operations. For a period of twelve months, Delek GOM will have the right, but not the obligation, to purchase shares of the Company up to the outstanding Term Loan Amount at a price per share of $4.2 cents a share (the “Option”). Any purchase of shares pursuant to the Option will be in a transaction exempt under 4(a)(2) of the Securities Act of 1933, as amended. The Company anticipates executing detailed agreements associated with the Term Loan Facility and the Option in February 2019.
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://fasb.org/us-gaap/role/ref/legacyRef