Nevada
|
4600
|
20-1673271
|
(State
or other jurisdiction of
incorporation
or organization)
|
(Primary
Standard Industrial
Classification
Code Number)
|
(I.R.S.
Employer
Identification
Number)
|
P.O
Box 488 Cut Bank, Montana
|
59427
|
(Address
of principal executive offices)
|
(Zip
Code)
|
Large
accelerated filer
|
o |
Accelerated
filer
|
o | ||
Non-accelerated
filer
|
o |
Smaller
Reporting Company
|
x |
PART I — FINANCIAL
INFORMATION
|
3 | |||
Item 1. Financial
Statements
|
3 | |||
Item 2. Management’s Discussion and Analysis
or Plan of Operation
|
10 | |||
Item 3. Quantitative and Qualitative Disclosure
about Market Risk
|
19 | |||
Item 4. Controls and
Procedures
|
19 | |||
PART II — OTHER INFORMATION
|
20 | |||
Item 1. Legal Proceedings
|
20 | |||
Item 1A. Risk Factors
|
20 | |||
Item 2. Unregistered Sales of Equity Securities
and Use of Proceeds
|
20 | |||
Item 3. Defaults Upon Senior
Securities
|
20 | |||
Item 4. (Removed and
Reserved)
|
20 | |||
Item 5. Other Information
|
20 | |||
Item 6. Exhibits.
|
20 |
MAJESTIC
OIL & GAS, INC. (A Development Stage Company)
|
CONDENSED
CONSOLIDATED BALANCE SHEETS
|
June
30
|
||||||||
2010
|
December
31
|
|||||||
UNAUDITED
|
2009
|
|||||||
ASSETS
|
||||||||
Cash
and cash equivalents
|
$ | 60,052 | $ | 110,701 | ||||
Trade
receivables
|
4,420 | 5,823 | ||||||
Total
Current Assets
|
64,472 | 116,524 | ||||||
OIL
AND GAS PROPERTIES
|
||||||||
Oil
and gas properties, using the full
|
||||||||
cost
method of accounting:
|
||||||||
Properties
being amortized
|
455,894 | 455,894 | ||||||
Properties
not subject to amortization
|
212,230 | 202,531 | ||||||
Less
accumulated depletion, amortization and impairment
|
(176,200 | ) | (164,000 | ) | ||||
Net
Oil and Gas Properties
|
491,924 | 494,425 | ||||||
OTHER
ASSETS
|
||||||||
Website
development costs (less accumulated amortization)
|
- | 400 | ||||||
Total
Other Assets
|
- | 400 | ||||||
Total
Assets
|
$ | 556,396 | $ | 611,349 | ||||
LIABILITIES
AND STOCKHOLDERS' EQUITY
|
||||||||
LIABILITIES
|
||||||||
Accounts
payable and accrued liabilities
|
$ | 10,603 | $ | 5,028 | ||||
Production
taxes and royalties payable
|
1,057 | 1,379 | ||||||
Well
settlement payable
|
22,959 | 22,959 | ||||||
Total
Current Liabilities
|
34,619 | 29,366 | ||||||
Asset
retirement obligation
|
8,879 | 8,879 | ||||||
Total
Liabilities
|
43,498 | 38,245 | ||||||
STOCKHOLDERS'
EQUITY
|
||||||||
Common
stock, no par value-
|
||||||||
Authorized
Shares - 100,000,000
|
||||||||
Issued
& Outstanding: 9,118,000 shares at June 30, 2010;
|
1,314,500 | 1,272,500 | ||||||
8,918,000
at December 31, 2009
|
||||||||
Additional
paid in capital
|
19,295 | 19,295 | ||||||
(Deficit)
accumulated during the development stage
|
(820,897 | ) | (718,691 | ) | ||||
Total
Stockholders' Equity
|
512,898 | 573,104 | ||||||
Total
Liabilities & Stockholders' Equity
|
$ | 556,396 | $ | 611,349 |
MAJESTIC
OIL & GAS, INC. (A Development Stage Company)
|
CONDENSED
CONSOLIDATED STATEMENTS OF
OPERATIONS
|
Inception
|
||||||||||||||||||||
Three
Months
|
Three
Months
|
Six
Months
|
Six
Months
|
(April
16, 2002)
|
||||||||||||||||
Ended
|
Ended
|
Ended
|
Ended
|
through
|
||||||||||||||||
June
30,
|
June
30,
|
June
30,
|
June
30,
|
June
30,
|
||||||||||||||||
2010
|
2009
|
2010
|
2009
|
2010
|
||||||||||||||||
UNAUDITED
|
UNAUDITED
|
UNAUDITED
|
UNAUDITED
|
UNAUDITED
|
||||||||||||||||
REVENUE
|
$ | 6,959 | $ | 5,750 | $ | 13,780 | $ | 18,248 | $ | 469,457 | ||||||||||
PRODUCTION
(LIFTING) COSTS
|
5,545 | 4,071 | 10,879 | 9,529 | 150,842 | |||||||||||||||
EXPLORATION
EXPENSES
|
- | - | - | - | 3,862 | |||||||||||||||
DEPLETION,
DEPRECIATION
|
||||||||||||||||||||
AND
AMORTIZATION
|
5,890 | 9,710 | 12,600 | 22,720 | 178,700 | |||||||||||||||
INCOME
FROM OIL & GAS
|
||||||||||||||||||||
PRODUCING
ACTIVITIES
|
(4,476 | ) | (8,031 | ) | (9,699 | ) | (14,001 | ) | 136,053 | |||||||||||
SELLING,
GENERAL & ADMINISTRATIVE
EXPENSES
|
78,224 | 17,807 | 92,507 | 38,229 | 956,950 | |||||||||||||||
NET
(LOSS)
|
$ | (82,700 | ) | $ | (25,838 | ) | $ | (102,206 | ) | $ | (52,230 | ) | $ | (820,897 | ) | |||||
EARNINGS
PER SHARE
|
||||||||||||||||||||
Net
Income, basic and diluted
|
$ | (0.01 | ) | $ | (0.00 | ) | $ | (0.01 | ) | $ | (0.01 | ) | ||||||||
Weighted
average number of
|
||||||||||||||||||||
shares
outstanding
|
9,118,000 | 7,808,000 | 9,118,000 | 7,808,000 | ||||||||||||||||
Diluted
potential shares -
|
||||||||||||||||||||
stock
warrants
|
- | - | - | - | ||||||||||||||||
Adjusted
weighted average shares
|
9,118,000 | 7,808,000 | 9,118,000 | 7,808,000 |
MAJESTIC
OIL & GAS, INC. (A Development Stage Company)
|
CONDENSED
CONSOLIDATED STATEMENTS OF STOCKHOLDERS'
EQUITY
|
(Deficit)
|
||||||||||||||||||||||||
Accumulated
|
||||||||||||||||||||||||
Additional
|
Stock
|
During
|
||||||||||||||||||||||
Common
Stock
|
Paid
In
|
Subscription
|
Development
|
|||||||||||||||||||||
Shares
|
Amount
|
Capital
|
Receivable
|
Stage
|
Total
|
|||||||||||||||||||
BEGINNING
BALANCE, INCEPTION
|
||||||||||||||||||||||||
(APRIL
16, 2002) TO
|
||||||||||||||||||||||||
DECEMBER
31, 2004
|
- | $ | - | $ | - | $ | - | $ | - | $ | - | |||||||||||||
Common
stock issued
|
6,240,000 | 624,000 | - | - | - | 624,000 | ||||||||||||||||||
Net
(loss)
|
- | - | - | - | (346,422 | ) | (346,422 | ) | ||||||||||||||||
BALANCE,
DECEMBER 31, 2004
|
6,240,000 | 624,000 | - | - | (346,422 | ) | 277,578 | |||||||||||||||||
Common
stock issued
|
- | - | - | - | - | - | ||||||||||||||||||
Net
income
|
- | - | - | - | 66,381 | 66,381 | ||||||||||||||||||
BALANCE,
DECEMBER 31, 2005
|
6,240,000 | 624,000 | - | - | (280,041 | ) | 343,959 | |||||||||||||||||
Common
stock issued
|
- | - | - | - | - | - | ||||||||||||||||||
Net
(loss)
|
- | - | - | - | (20,068 | ) | (20,068 | ) | ||||||||||||||||
BALANCE,
DECEMBER 31, 2006
|
6,240,000 | 624,000 | - | - | (300,109 | ) | 323,891 | |||||||||||||||||
Common
stock issued for services
|
330,000 | 147,000 | - | - | - | 147,000 | ||||||||||||||||||
Common
stock warrants exercised
|
938,000 | 234,500 | - | - | - | 234,500 | ||||||||||||||||||
Common
stock options issued
|
- | - | 19,295 | - | - | 19,295 | ||||||||||||||||||
Net
(loss)
|
- | - | - | - | (255,025 | ) | (255,025 | ) | ||||||||||||||||
BALANCE,
DECEMBER 31, 2007
|
7,508,000 | 1,005,500 | 19,295 | - | (555,134 | ) | 469,661 | |||||||||||||||||
Common
stock issued
|
300,000 | 150,000 | - | - | - | 150,000 | ||||||||||||||||||
Net
(loss)
|
- | - | - | - | (68,680 | ) | (68,680 | ) | ||||||||||||||||
BALANCE,
DECEMBER 31, 2008
|
7,808,000 | 1,155,500 | 19,295 | - | (623,814 | ) | 550,981 | |||||||||||||||||
Common
stock issued for services
|
100,000 | 16,000 | - | - | - | 16,000 | ||||||||||||||||||
Common
stock issued
|
1,010,000 | 101,000 | - | - | - | 101,000 | ||||||||||||||||||
Net
(loss)
|
- | - | (94,877 | ) | (94,877 | ) | ||||||||||||||||||
|
||||||||||||||||||||||||
BALANCE,
DECEMBER 31, 2009
|
8,918,000 | 1,272,500 | 19,295 | - | (718,691 | ) | 573,104 | |||||||||||||||||
Common
stock issued for services
|
200,000 | 42,000 | - | - | - | 42,000 | ||||||||||||||||||
Net
(loss) for the six months
|
||||||||||||||||||||||||
ended
June 30, 2010 (UNAUDITED)
|
- | - | - | - | (102,206 | ) | (102,206 | ) | ||||||||||||||||
BALANCE,
JUNE 30, 2010
|
9,118,000 | $ | 1,314,500 | $ | 19,295 | $ | - | $ | (820,897 | ) | $ | 512,898 |
Inception
|
||||||||||||
Six
Months
|
Six
Months
|
(April
16, 2002)
|
||||||||||
Ended
|
Ended
|
Through
|
||||||||||
June
30, 2010
|
June
30, 2009
|
June
30, 2010
|
||||||||||
UNAUDITED
|
UNAUDITED
|
UNAUDITED
|
||||||||||
OPERATING
ACTIVITIES
|
||||||||||||
Net
(loss)
|
$ | (102,206 | ) | $ | (52,230 | ) | $ | (820,897 | ) | |||
Changes and credits
to net (loss) not affecting
cash
|
||||||||||||
Depletion
and amortization
|
12,600 | 22,720 | 178,700 | |||||||||
Organizational
expenses paid with stock
|
42,000 | - | 342,000 | |||||||||
Legal
fees paid with stock
|
- | - | 188,000 | |||||||||
Stock
compensation expense
|
- | - | 21,295 | |||||||||
Changes
in assets and liabilities
|
||||||||||||
Trade
receivables
|
1,403 | 18,321 | (4,420 | ) | ||||||||
Deposits
|
- | - | - | |||||||||
Production
taxes and royalties payable
|
(322 | ) | (3,124 | ) | 1,057 | |||||||
Accounts
payable
|
5,575 | 38 | 33,562 | |||||||||
NET
CASH FROM (USED FOR)
|
||||||||||||
OPERATING
ACTIVITIES
|
(40,950 | ) | (14,275 | ) | (60,703 | ) | ||||||
INVESTING
ACTIVITIES
|
||||||||||||
Website
development
|
- | - | (2,500 | ) | ||||||||
Additions
to oil and gas properties
|
(9,699 | ) | (7,018 | ) | (499,245 | ) | ||||||
NET
CASH (USED FOR) INVESTING
|
||||||||||||
ACTIVITIES
|
(9,699 | ) | (7,018 | ) | (501,745 | ) | ||||||
FINANCING
ACTIVITIES
|
||||||||||||
Proceeds
from sale of common stock
|
- | - | 251,000 | |||||||||
Proceeds
from exercise of warrants
|
- | - | 371,500 | |||||||||
NET
CASH PROVIDED BY FINANCING
|
||||||||||||
ACTIVITIES
|
- | - | 622,500 | |||||||||
NET
CHANGE IN CASH AND CASH
|
||||||||||||
EQUIVALENTS
|
(50,649 | ) | (21,293 | ) | 60,052 | |||||||
CASH
AND CASH EQUIVALENTS AT
|
||||||||||||
BEGINNING
OF PERIOD
|
110,701 | 79,790 | - | |||||||||
CASH
AND CASH EQUIVALENTS AT
|
||||||||||||
END
OF PERIOD
|
$ | 60,052 | $ | 58,497 | $ | 60,052 |
Three Months
Ended
June
30, 2010
|
Three Months
Ended
June
30, 2009
|
|||||||
Revenue
|
$
|
6,959
|
$
|
5,750
|
||||
Expenses
|
$
|
(89,659)
|
$
|
(31,588)
|
||||
Net
Income (Loss)
|
$
|
(82,700)
|
$
|
(25,838)
|
Ludwig State 36-1
|
Share of
Production
Volumes
|
Price
Per
MCF
|
Share of
Production
Volumes
|
Price
Per
MCF
|
||||||||||||
2010
|
2009
|
|||||||||||||||
April
|
168.92
|
2.01
|
194.49
|
1.56
|
||||||||||||
May
|
150.56
|
1.81
|
207.28
|
1.41
|
||||||||||||
June
|
169.13
|
1.94
|
198.83
|
1.59
|
Boucher
27-1
|
Share of
Production
Volumes
|
Price
Per
MCF
|
Share of
Production
Volumes
|
Price
Per
MCF
|
||||||||||||
2010
|
2009
|
|||||||||||||||
April
|
43.31
|
2.01
|
44.76
|
1.56
|
||||||||||||
May
|
40.01
|
1.81
|
47.23
|
1.41
|
||||||||||||
June
|
38.57
|
1.94
|
47.64
|
1.59
|
B. Ag #25-1
|
Share of
Production
Volumes
|
Price
Per
MCF
|
Share of
Production
Volumes
|
Price
Per
MCF
|
||||||||||||
2010
|
2009
|
|||||||||||||||
April
|
32.40
|
2.01
|
35.60
|
1.56
|
||||||||||||
May
|
27.80
|
1.81
|
37.80
|
1.41
|
||||||||||||
June
|
34.60
|
1.94
|
38.60
|
1.59
|
Vandenbos
#19-1
|
Share of
Production
Volumes
|
Price
Per
MCF
|
Share of
Production
Volumes
|
Price
Per
MCF
|
||||||||||||
2010
|
2009
|
|||||||||||||||
April
|
298.24
|
2.01
|
551.10
|
1.56
|
||||||||||||
May
|
247.91
|
1.81
|
494.59
|
1.41
|
||||||||||||
June
|
278.03
|
1.94
|
451.69
|
1.59
|
Boucher
#18-1
|
Share of
Production
Volumes
|
Price
Per
MCF
|
Share of
Production
Volumes
|
Price
Per
MCF
|
||||||||||||
2010
|
2009
|
|||||||||||||||
April
|
149.75
|
2.01
|
299.89
|
1.56
|
||||||||||||
May
|
130.25
|
1.81
|
237.81
|
1.41
|
||||||||||||
June
|
147.75
|
1.94
|
196.76
|
1.59
|
Stoltz
#18-1
|
Share of
Production
Volumes
|
Price
Per
MCF
|
Share of
Production
Volumes
|
Price
Per
MCF
|
||||||||||||
2010
|
2009
|
|||||||||||||||
April
|
0.41
|
2.01
|
8.13
|
1.56
|
||||||||||||
May
|
2.64
|
1.81
|
10.77
|
1.41
|
||||||||||||
June
|
5.48
|
1.94
|
15.03
|
1.59
|
Drilling
Activity
|
||||||||||||||||||||||||
Gross
Wells
|
Net
Wells
|
|||||||||||||||||||||||
Three
Months ended June 30,
|
Total
|
Producing
|
Dry
|
Total
|
Producing
|
Dry
|
||||||||||||||||||
2010
|
0
|
0
|
0
|
0
|
0
|
0
|
||||||||||||||||||
2009
|
0
|
0
|
0
|
0
|
0
|
0
|
Three
Months ended June 30,
|
2010
|
2009
|
||||||
Net
Production
|
||||||||
Oil
(Bbls)
|
39 | 0 | ||||||
Gas
(Mcf)
|
1,966 | 3,118 | ||||||
Average
Sales Prices
|
||||||||
Oil
(per Bbl)
|
$ | 64.98 | $ | 0 | ||||
Gas
(per Mcf)
|
$ | 1.85 | $ | 1.52 | ||||
Average
Production Cost Per MCF
|
$ | 5.20 | $ | 4.42 |
Six Months
Ended
June
30, 2010
|
Six Months
Ended
June
30, 2009
|
|||||||
Revenue
|
$
|
13,780
|
$
|
18,248
|
||||
Expenses
|
$
|
(115,986)
|
$
|
(70,478)
|
||||
Net
Income (Loss)
|
$
|
(102,206)
|
$
|
(52,230)
|
Ludwig State 36-1
|
Share of
Production
Volumes
|
Price
Per
MCF
|
Share of
Production
Volumes
|
Price
Per
MCF
|
||||||||||||
2010
|
2009
|
|||||||||||||||
January
|
175.93
|
2.35
|
231.21
|
3.09
|
||||||||||||
February
|
192.02
|
2.26
|
211.20
|
2.34
|
||||||||||||
March
|
175.93
|
2.80
|
218.83
|
1.80
|
||||||||||||
April
|
168.92
|
2.01
|
194.49
|
1.56
|
||||||||||||
May
|
150.56
|
1.81
|
207.28
|
1.41
|
||||||||||||
June
|
169.13
|
1.94
|
198.83
|
1.59
|
Boucher
27-1
|
Share of
Production
Volumes
|
Price
Per
MCF
|
Share of
Production
Volumes
|
Price
Per
MCF
|
||||||||||||
2010
|
2009
|
|||||||||||||||
January
|
47.64
|
2.35
|
110.14
|
3.09
|
||||||||||||
February
|
47.64
|
2.26
|
71.16
|
2.34
|
||||||||||||
March
|
43.11
|
2.80
|
56.72
|
1.80
|
||||||||||||
April
|
43.31
|
2.01
|
44.76
|
1.56
|
||||||||||||
May
|
40.01
|
1.81
|
47.23
|
1.41
|
||||||||||||
June
|
38.57
|
1.94
|
47.64
|
1.59
|
B. Ag #25-1
|
Share of
Production
Volumes
|
Price
Per
MCF
|
Share of
Production
Volumes
|
Price
Per
MCF
|
||||||||||||
2010
|
2009
|
|||||||||||||||
January
|
33.80
|
2.35
|
38.80
|
3.09
|
||||||||||||
February
|
31.00
|
2.26
|
33.80
|
2.34
|
||||||||||||
March
|
32.80
|
2.80
|
36.80
|
1.80
|
||||||||||||
April
|
32.40
|
2.01
|
35.60
|
1.56
|
||||||||||||
May
|
27.80
|
1.81
|
37.80
|
1.41
|
||||||||||||
June
|
34.60
|
1.94
|
38.60
|
1.59
|
Vandenbos
#19-1
|
Share of
Production
Volumes
|
Price
Per
MCF
|
Share of
Production
Volumes
|
Price
Per
MCF
|
||||||||||||
2010
|
2009
|
|||||||||||||||
January
|
361.56
|
2.35
|
708.06
|
3.09
|
||||||||||||
February
|
352.48
|
2.26
|
632.57
|
2.34
|
||||||||||||
March
|
305.66
|
2.80
|
683.72
|
1.80
|
||||||||||||
April
|
298.24
|
2.01
|
551.10
|
1.56
|
||||||||||||
May
|
247.91
|
1.81
|
494.59
|
1.41
|
||||||||||||
June
|
278.03
|
1.94
|
451.69
|
1.59
|
Boucher
#18-1
|
Share of
Production
Volumes
|
Price
Per
MCF
|
Share of
Production
Volumes
|
Price
Per
MCF
|
||||||||||||
2010
|
2009
|
|||||||||||||||
January
|
211.00
|
2.35
|
413.33
|
3.09
|
||||||||||||
February
|
212.25
|
2.26
|
356.40
|
2.34
|
||||||||||||
March
|
168.00
|
2.80
|
365.48
|
1.80
|
||||||||||||
April
|
149.75
|
2.01
|
299.89
|
1.56
|
||||||||||||
May
|
130.25
|
1.81
|
237.81
|
1.41
|
||||||||||||
June
|
147.75
|
1.94
|
196.76
|
1.59
|
Stoltz
#18-1
|
Share of
Production
Volumes
|
Price
Per
MCF
|
Share of
Production
Volumes
|
Price
Per
MCF
|
||||||||||||
2010
|
2009
|
|||||||||||||||
January
|
0.20
|
2.35
|
27.83
|
3.09
|
||||||||||||
February
|
0.41
|
2.26
|
19.50
|
2.34
|
||||||||||||
March
|
0.61
|
2.80
|
13.41
|
1.80
|
||||||||||||
April
|
0.41
|
2.01
|
8.13
|
1.56
|
||||||||||||
May
|
2.64
|
1.81
|
10.77
|
1.41
|
||||||||||||
June
|
5.48
|
1.94
|
15.03
|
1.59
|
Donovan
#33-3
|
Share of
Production
Volumes
|
Price
Per
BBL
|
Share of
Production
Volumes
|
Price
Per
BBL
|
||||||||||||
2010
|
2009
|
|||||||||||||||
January
|
||||||||||||||||
February
|
39.38
|
64.98
|
0
|
0
|
||||||||||||
March
|
||||||||||||||||
April
|
||||||||||||||||
May
|
||||||||||||||||
June
|
Drilling
Activity
|
||||||||||||||||||||||||
Gross
Wells
|
Net
Wells
|
|||||||||||||||||||||||
Six
Months ended June 30,
|
Total
|
Producing
|
Dry
|
Total
|
Producing
|
Dry
|
||||||||||||||||||
2010
|
0
|
0
|
0
|
0
|
0
|
0
|
||||||||||||||||||
2009
|
0
|
0
|
0
|
0
|
0
|
0
|
Six
Months ended June 30,
|
2010
|
2009
|
||||||
Net
Production
|
||||||||
Oil
(Bbls)
|
39
|
0
|
||||||
Gas
(Mcf)
|
4,358
|
7,347
|
||||||
Average
Sales Prices
|
||||||||
Oil
(per Bbl)
|
$
|
64.98
|
$
|
0
|
||||
Gas
(per Mcf)
|
$
|
2.12
|
$
|
2.05
|
||||
Average
Production Cost Per MCF
|
$
|
5.11
|
$
|
4.39
|
·
|
Acquiring
all right, title and interest from Altamont Oil & Gas & Numbers,
Inc., both Affiliates, in the Williams and Lake Frances Gas
Field
|
·
|
Acquiring
all right, title and interest from Genesis Energy Inc. and Immgen in the
Williams and Lake Frances Gathering
System
|
°
|
Share
offering for an additional $10,000,000 or 40,000,000 shares at $0.25/share
in order to finance the acquisition of the Montana/North Dakota
acreage.
|
°
|
Share
offering of $50,000,000 by way of a offering of 20,000,000 shares at $2.50
per share. Such funding to be used for development
drilling.
|
(a)
|
Exhibits.
|
Exhibit
|
Item
|
|
31.1
|
Certification
of Principal Executive and Principal Financial Officer pursuant to Section
302(a) of the Sarbanes-Oxley Act of 2002
|
|
32.1*
|
Certification
of Principal Executive and Principal Financial Officer pursuant to Section
302(a) of the Sarbanes-Oxley Act of
2002
|
MAJESTIC
OIL & GAS, INC.
|
||
Date:
August 16, 2010
|
By:
|
/s/ Patrick
Montalban
|
(Authorized
Officer/principal Executive Officer, Principal Financial Officer/principal
Financial Officer}
|
Exhibit
|
Item
|
|
31.1
|
Certification
of Principal Executive and Principal Financial Officer pursuant to Section
302(a) of the Sarbanes-Oxley Act of 2002
|
|
32.1*
|
Certification
of Principal Executive and Principal Financial Officer pursuant to Section
906 of the Sarbanes-Oxley Act of
2002
|