Arête Industries Inc., a Colorado corporation, is an independent oil and gas company engaged in the acquisition and development of oil and natural gas reserves through a program which includes purchases of reserves, re-engineering, development and exploration activities primarily focused in Wyoming, Kansas, Colorado and Montana. In 2011, we entered into a purchase and sale agreement ("DNR and Tindall PSA") and other related agreements and documents with Tucker Family Investments, LLLP, which we refer to as "Tucker"; DNR Oil & Gas Inc. which we refer to as "DNR"; and Tindall Operating Company, which we refer to as "Tindall", and collectively we refer to these parties as the "Sellers", for the purchase of certain oil and gas operating properties in Colorado, Kansas, Wyoming, and Montana. DNR is owned primarily by an officer and director of the Company, Charles B. Davis, and he is affiliated with Tucker and Tindall. The consideration for the purchase was determined by bargaining between management of the Company and Mr. Davis, and the Company used reports of independent engineering firms to analyze the purchase price. The base purchase price was paid in full on September 29, 2011. On January 19, 2016, but effective December 31, 2015, we entered into a settlement agreement with the Sellers. In consideration of the amounts indicated below, the parties (i) terminated Exhibits C and C-2 to the DNR and Tindall PSA for all purposes; (ii) extinguished all liabilities of the Company under Exhibit C of the DNR and Tindall PSA including $250,000 related to the increase in oil prices after the acquisition; (iii) agreed that the promissory note owed by us to DNR in the amount of $792,151 and accrued interest thereon was paid in full; and (iv) released each other against any and all claims which have been raised or could have been raised among them. Specifically, Exhibits C and C-2 to the DNR and Tindall PSA related to potential payments that would have been needed to be made by us in the event oil prices increased to certain levels and related to certain payments that would have been needed to be made by us in the event we sold certain properties purchased under the Purchase and Sale Agreement. Exhibits C and C-2 were terminated and extinguished (including any amounts owed thereunder including $250,000 under Exhibit C to the Purchase and Sale Agreement) in exchange for 25 fully paid, nonassessable restricted shares of our 7% Series A2 Convertible Preferred Stock. Consideration to pay the above promissory note in full consisted of us issuing to DNR 65 fully paid, nonassessable restricted shares of our 7% Series A2 Convertible Preferred Stock, and paying DNR $303,329 in cash.
Company profile
Ticker
ARET
Exchange
Website
CEO
Nicholas L. Scheidt
Employees
Incorporated
Location
Fiscal year end
Industry (SIC)
Former names
Travis Industries Inc
SEC CIK
Corporate docs
IRS number
841063149
ARET stock data
Latest filings (excl ownership)
8-K
Completion of Acquisition or Disposition of Assets
10 Apr 19
10-Q
2017 Q3
Quarterly report
29 Mar 18
10-Q
2017 Q1
Quarterly report
29 Mar 18
10-Q
2017 Q2
Quarterly report
29 Mar 18
8-K
Changes in Registrant's Certifying Accountant
5 Dec 17
10-K
2016 FY
Annual report
1 Dec 17
10-Q
2016 Q3
Quarterly report
15 May 17
NT 10-K
Notice of late annual filing
10 Apr 17
10-Q
2016 Q2
Quarterly report
6 Feb 17
10-Q
2016 Q1
Quarterly report
23 Dec 16
Latest ownership filings