PETROSHARE CORP. (OTCMKTS:PRHR) Files An 8-K Other Events
Item 8.01 Other Events
On December 31, 2018, the principal balance of $9.4 million on the 10% Unsecured Promissory Notes and the Series B Unsecured Promissory Notes (collectively, the “Unsecured Notes”) previously issued by PetroShare Corp. (the “Company”) became due. The Company was unable to pay such principal balance by December 31, 2018. As a result, the Company sent a notification to the Unsecured Note holders informing them of the default and that it will provide a formal proposal to address the Unsecured Notes on or before January 31, 2019.
The Company paid the interest on the Unsecured Notes current through December 31, 2018, and is working diligently to create a solution to the default which it hopes will be in the best interest of the holders of the Notes and its shareholders.
With the exception of historical matters, the matters discussed in this report include forward-looking statements within the meaning of applicable securities laws that involve risks and uncertainties that could cause actual results to differ materially from projections or estimates contained therein. Such forward-looking statements include, among others, statements regarding the Company’s efforts to satisfy the principal balance and currently accruing interest due on the Notes. Factors that could cause actual results to differ materially from projections or estimates include, among others, commodity prices, economic and market conditions, operating costs, receipt of permits, receipt of working capital and future drilling results, as well as other factors described in the Company’s Annual Report on Form 10-K for the year ended December 31, 2017, and other filings with the United States Securities and Exchange Commission. Most of these factors are beyond the Company’s ability to predict or control. The Company disclaims any obligation to update any forward-looking statement made herein, whether as a result of new information, future events, or otherwise. Readers are cautioned not to put undue reliance on forward-looking statements.
About PETROSHARE CORP. (OTCMKTS:PRHR)
PetroShare Corp. is an independent oil and natural gas company. The Company focuses on acquisition, exploration and development of crude oil and natural gas prospects. Its properties are located in Colorado. It has interest in over two gross wells and approximately 3,100 gross acres of oil and gas properties. It has interests in over two crude oil and natural gas prospects, including Buck Peak prospect, which is located in Moffatt County, Colorado, and Todd Creek Farms prospect, which is located in Adams County, Colorado. Its working interest position in the Buck Peak prospect is concentrated in one 672-acre section, including over two drilled wells. It focuses on acquiring acreage and development of the Todd Creek Farms prospect. Its focus in both prospects is the Niobrara formation, which is a calcareous shale rock formation varying from 200 to 1,500 feet in thickness and extending from Canada to New Mexico with the oil and natural gas concentration located in Colorado and Wyoming.