DIVERSIFIED RESOURCES, INC. (OTCMKTS:DDRI) Files An 8-K Entry into a Material Definitive Agreement

DIVERSIFIED RESOURCES, INC. (OTCMKTS:DDRI) Files An 8-K Entry into a Material Definitive Agreement

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Item 1.01.

Entry into a Material Definitive Agreement.
On February 1, 2016, the Company acquired 100% of the outstanding
shares of DESI, a holding company comprised of three oilfield
services companies, for 20,032,710 restricted shares of its
common stock having a value of approximately $10,016,356, a
promissory note in the principal amount of $2,000,000 and the
assumption of DESI’s liabilities in the approximate amount of
$4,162,900. The note bears interest at 2% a year and was payable
in February 2018. Champion oilfield services, then owned by
Michael K. Miller, Jr., was one of the three entities which
comprised DESI.
On April 28, 2017 the Company sold Champion to its former
owner, Mr. Miller. In consideration for the return of Champion,
Mr. Miller forgave the $2,000,000 note he received when the
Company acquired DESI in 2016 and surrendered 3,832,710 shares
of the Company’s common stock which he also received when the
Company acquired Champion in 2016.
As a result of the sale of Champion, the Company’s liabilities
(including the cancellation of the $2,000,000 note) will be
reduced by approximately $2,509,900.
During the year ended October 31, 2016 and the three months ended
January 31, 2017 gross revenues and net losses attributable to
Champion from oilfield and construction services were
approximately $2,479,200 and ($630,200), respectively.
Item 2.01.
Completion of Acquisition or Disposition of Assets.
See Item 1.01 of this report.


Diversified Resources, Inc. is an oil and gas operator. The Company holds interests in Natural Resource Group, Inc. (NRG). NRG’s interests include the Garcia Field, the Denver-Julesburg Basin and the Horseshoe-Gallup Field. The Garcia Field is located in Las Animas County approximately 10 miles from Trinidad, Colorado. The Garcia Field property includes leases covering approximately 4,600 gross acres; over four wells that produce natural gas and naturals gas liquids; a refrigeration/compression plant, which separates natural gas liquids from gas produced from the wells, and also an injection well. The Denver-Julesburg Basin property includes leases covering approximately 1,400 gross acres; over three shut-in wells, and approximately three producing oil and gas wells. The Horseshoe-Gallup Field includes over 50 producing oil and gas wells; leases covering approximately 10,000 gross and net acres, and miscellaneous equipment.


DIVERSIFIED RESOURCES, INC. (OTCMKTS:DDRI) closed its last trading session 00.000 at 0.110 with shares trading hands.

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