T-REX OIL, INC. (RNCH) SPO
|Company Name||T-REX OIL, INC.|
|Company Address||520 ZANG STREET, SUITE #250
BROOMFIELD, CO 80021
|Company Phone||(720) 502-4483|
|Company Website||www.rancher energy.com|
|Employees (as of 11/2/2007)||23|
|State of Inc||NV|
|Fiscal Year End||3/31|
|Shares Over Alloted||--|
|Shareholder Shares Offered||159,300,420|
|Lockup Period (days)||180|
|Quiet Period Expiration||11/27/2007|
The selling stockholders will be selling all of the shares under this prospectus in the Offering. The proceeds from the sale of the shares will be received directly by the selling stockholders. We will receive no proceeds from the sale of these shares offered by selling stockholders under this prospectus.
We face competition from other oil companies in all aspects of our business, including acquisition of producing properties and oil & gas leases, marketing of oil & gas, and obtaining goods, services, and labor. Many of our competitors have substantially larger financial and other resources. Factors that affect our ability to acquire producing properties include available funds, available information about prospective properties, and our standards established for minimum projected return on investment. Competition is also presented by alternative fuel sources, including ethanol and other fossil fuels. Because of our use of EOR techniques and management’s experience and expertise in the oil & gas industry, we believe that we are effective in competing in the market. The demand for qualified and experienced field personnel to operate CO2 EOR techniques, drill wells, and conduct field operations, geologists, geophysicists, engineers, and other professionals in the oil industry can fluctuate significantly, often in correlation with oil prices, causing periodic shortages. There have also been shortages of drilling rigs and other equipment, as demand for rigs and equipment has increased along with the number of wells being drilled. These factors also cause significant increases in costs for equipment, services, and personnel. Higher oil prices generally stimulate increased demand and result in increased prices for drilling rigs, crews and associated supplies, equipment, and services. We cannot be certain when we will experience these issues and these types of shortages or price increases could significantly decrease our profit margin, cash flow, and operating results, or restrict our ability to drill those wells and conduct those operations that we currently have planned and budgeted.
We are an independent energy company engaged in the development, production, and marketing of oil & gas in North America. Our business strategy is to use secondary and tertiary recovery techniques on older, historically productive fields with proven in-place oil & gas. Higher oil & gas prices, and
advances in technology such as 3-D seismic acquisition and evaluation, waterflood injection, and carbon dioxide (CO2) injection, should enable us to capitalize on attractive sources of potentially recoverable oil & gas. We operate three fields in the Powder River Basin, Wyoming, which is located in the Rocky Mountain region of the United States. The fields, acquired in December 2006 and January 2007, are the the Big Muddy Field, the South Glenrock B Field, and the Cole Creek South Field. All three fields currently produce some oil. We are currently working to enhance production in our South Glenrock B Field and Cole Creek South Field, which are both under active waterflood. Subject to obtaining financing, we plan to substantially increase production in our fields by further enhancing existing waterflood operations in the Cole Creek South Field and the South Glenrock B Field, and by commencing waterflood operations in the Big Muddy Field. We then intend to raise additional funds to fund the remainder of the Big Muddy waterflood project and to implement our CO2 enhanced oil recovery (EOR) development plans. To fund the acquisition of the three fields and our operating expenses, from June 2006 through January 2007, we sold $89,300,000 of our securities in two private placements. In December 2006, we also entered into an agreement with the Anadarko Petroleum Corporation to supply us with CO2 needed to conduct CO2 tertiary recovery operations in our three fields. This agreement is described in Note 2 in the Notes to Financial Statements of our audited financial statements for the fiscal year ended March 31, 2007, which begin on page F-8. Led by an experienced management team, our long term goal is to enhance stockholder value by identifying and further developing productive oil & gas assets across North America, particularly in the Rocky Mountains. ---- Our principal executive offices are located at 999-18th Street, Suite 3400, Denver, Colorado 80202, and our telephone number is (303) 629-1125. The Company's periodic and current reports filed with the Securities and Exchange Commission (SEC) can be found on the Company's website at www.rancherenergy.
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