Financials

v3.8.0.1
BALANCE SHEETS - USD ($)
Dec. 31, 2016
Dec. 31, 2015
Current Assets:    
Cash $ 171,370 $ 521,666
Accounts receivable - oil and natural gas sales 14,014 2,539
Subscription receivable 0 105,000
Prepaid expenses and other 3,032 32,554
Total Current Assets 188,416 661,759
Oil and gas properties, at cost, successful efforts method:    
Proved properties 5,325,381 8,683,273
Unevaluated properties 154,977 154,836
Furniture and equipment 22,522 22,522
Total property and equipment 5,502,880 8,860,631
Less accumulated depreciation, depletion and amortization (3,684,522) (3,245,522)
Net Property and Equipment 1,818,358 5,615,109
TOTAL ASSETS 2,006,774 6,276,868
Accounts payable:    
Trade accounts payable 133,343 64,896
Accounts payable - DNR Oil & Gas, Inc. 453,439 501,281
Accounts payable - directors and affiliates 77,616 0
Dividends payable:    
Dividends payable 5,998 0
Dividends payable - directors and affiliates 41,992 0
Accrued interest expense:    
Accrued interest expense 23,821 2,532
Accrued interest expense - directors and affiliates 0 9,442
Notes and advances payable - current portion:    
Notes and advances payable 240,750 989,853
Notes and advances payable - directors and affiliates 134,839 13,152
Current portion of asset retirement obligations 425,200 409,621
Other accrued costs and expenses 61,745 68,577
Total Current Liabilities 1,598,743 2,059,354
Notes and advances payable, net of current portion:    
Notes and advances payable, net of discount 1,032,928 173,519
Notes and advances payable - Directors and affiliates 16,435 151,379
Asset retirement obligations, net of current portion 659,800 585,576
Total Long-Term Liabilities 1,709,163 910,474
Total Liabilities 3,307,906 2,969,828
Stockholders' Equity (Deficit):    
Convertible Class A preferred stock; $10,000 face value per share, authorized 1,000,000 shares: Series 1; 30,000 shares authorized, none issued and outstanding. Series 2; authorized 2,500 shares, 272 and 267 shares issued and outstanding as of December 31, 2016 and 2015, respectively, liquidation preference $2,767,991. 2,720,000 2,670,000
Common stock, no par value; 499,000,000 shares authorized, 14,674,580 and 14,295,413 issued and outstanding as of December 31, 2016 and 2015, respectively. 21,535,469 21,502,635
Accumulated deficit (25,556,601) (20,865,595)
Total Stockholders' Equity (Deficit) (1,301,132) 3,307,040
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT) 2,006,774 6,276,868
Series A1 Preferred Stock [Member]    
Stockholders' Equity (Deficit):    
Convertible Class A preferred stock; $10,000 face value per share, authorized 1,000,000 shares: Series 1; 30,000 shares authorized, none issued and outstanding. Series 2; authorized 2,500 shares, 272 and 267 shares issued and outstanding as of December 31, 2016 and 2015, respectively, liquidation preference $2,767,991. 0 0
Series A2 Preferred Stock [Member]    
Stockholders' Equity (Deficit):    
Convertible Class A preferred stock; $10,000 face value per share, authorized 1,000,000 shares: Series 1; 30,000 shares authorized, none issued and outstanding. Series 2; authorized 2,500 shares, 272 and 267 shares issued and outstanding as of December 31, 2016 and 2015, respectively, liquidation preference $2,767,991. $ 2,720,000 $ 2,670,000
v3.8.0.1
STATEMENTS OF OPERATIONS - USD ($)
12 Months Ended
Dec. 31, 2016
Dec. 31, 2015
Revenues:    
Oil sales $ 889,285 $ 777,123
Natural gas sales 82,873 143,907
Royalty revenues 2,325 4,871
Sale of oil and natural gas properties 0 27,120
Total revenues 974,483 953,021
Oil and gas producing activities:    
Lease operating expenses 1,064,427 754,362
Production taxes 76,715 84,576
Other operating expense 0 160,011
Depreciation, depletion, amortization and accretion 533,333 816,481
Impairment 3,358,000 3,231,000
Gas gathering:    
Operating expenses 0 1,406
Depreciation 0 44,362
Impairment 0 56,648
General and administrative expenses:    
Director fees 40,000 47,833
Investor relations 12,209 28,128
Legal, auditing and professional fees 183,683 116,078
Consulting fees executive services-Related Parties 66,732 172,217
Other administrative expenses 41,187 74,634
Depreciation 0 428
Total operating expenses 5,376,286 5,588,164
Operating loss (4,401,803) (4,635,143)
Other income (expense):    
Other income 875 0
Interest expense net (98,117) (111,910)
Loss before income taxes (4,499,045) (4,747,053)
Income tax benefit (expense) 0 0
Net loss attributable to Arête Industries, Inc. (4,499,045) (4,747,053)
Net Loss Applicable to Common Stockholders:    
Net loss attributable to Arête Industries, Inc. (4,499,045) (4,747,053)
Preferred stock dividends declared (191,961) 0
Net loss applicable to common stockholders $ (4,691,006) $ (4,747,053)
Loss Per Share Applicable to Common Stockholders:    
Basic $ (0.32) $ (0.37)
Diluted $ (0.32) $ (0.37)
Weighted Average Number of Common Shares Outstanding:    
Basic 14,528,345 12,882,000
Diluted 14,528,345 12,882,000
v3.8.0.1
STATEMENTS OF CASH FLOWS - USD ($)
12 Months Ended
Dec. 31, 2016
Dec. 31, 2015
Cash Flows from Operating Activities:    
Net loss $ (4,499,045) $ (4,747,053)
Adjustments to reconcile net loss to net cash used in operating activities:    
Depreciation, depletion and amortization 439,000 790,896
Accretion of discount on asset retirement obligations 94,333 70,375
Amortization of loan servicing fees 1,875 0
Gain on sale of oil and gas properties 0 (27,120)
Impairment expense 0 141,099
Additional acquisition expense realized on settlement with a related party 25,334 85,048
Common stock issued in exchange for services 3,358,000 3,287,648
Changes in operating assets and liabilities:    
Accounts receivable (11,475) 132,041
Prepaid expenses and other 29,522 1,668
Accounts payable:    
Trade accounts payable 68,447 21,531
Accounts payable - DNR Oil & Gas, Inc. (47,842) 161,952
Accounts payable - directors and affiliates 77,616 (20,000)
Settlement of Asset Retirement Obligation (4,530) (28,684)
Other accrued expenses and accrued interest 5,015 33,709
Net cash provided by operating activities (463,750) (96,890)
Cash Flows from Investing Activities:    
Capital expenditures for property and equipment (249) (68,631)
Capital expenditures for acquisitions of oil and gas properties 0 (1,100,000)
Proceeds from sale of oil & gas properties 0 50,000
Net cash used in investing activities (249) (1,118,631)
Cash Flows from Financing Activities:    
Proceeds from notes payable 250,500 67,000
Principal payments on notes payable (147,826) (25,568)
Proceeds received from subscription receivable 105,000 0
Preferred stock dividends paid (143,971) 0
Proceeds received from issuance of Series A Two Preferred Stock 50,000 1,665,000
Net cash provided by financing activities 113,703 1,706,432
Net increase (decrease) in cash and equivalents (350,296) 490,911
Cash and equivalents, beginning of period 521,666 30,755
Cash and equivalents, end of period 171,370 521,666
Supplemental Disclosure of Cash Flow Information:    
Cash paid for interest 84,395 83,136
Accrued dividends 47,990 0
Series A preferred stock issued for debt settlement – related party 0 900,000
Common Stock issued for directors fees payable 0 20,900
Common stock issued for loan closing costs 7,500 0
Common stock issued for asset purchase $ 0 $ 100,000