Annual report pursuant to Section 13 and 15(d)

Commitments

v2.4.0.8
Commitments
 12 Months Ended
Jun. 30, 2013
Commitments and Contingencies Disclosure [Abstract]  
Commitments
Note 12 - Commitments
Operating leases. The following table summarizes the Company's future minimum rental commitments under non-cancelable operating leases, net of guaranteed sublease income, as of June 30, 2013:
 
Total
 
(In thousands)
Amounts payable in fiscal year:
 
2014
$
162

2015
262

2016
268

2017
273

2018 and thereafter
90

Total
$
1,055


Rental expenses for each of the years ended June 30, 2013, and 2012, were $0.6 million and, $0.6 million, respectively.
Purchase obligations. Although the Company is committed to certain exploration and capital expenditures related to MPA, some of these expenses may be farmed out to third parties. Amounts payable under these firm commitments for fiscal year 2014 were $5.7 million as of June 30, 2013.
Contingent production payments. In September 2011, the Company entered into a Purchase and Sale Agreement (the "Nautilus PSA") among the Company and the non-controlling interest owners of NP for the Company's acquisition of the sellers' interests in NP (the "Nautilus Transaction"). The Nautilus PSA provides for potential future contingent production payments, payable by the Company in cash to the sellers, of up to a total of $5.0 million if certain increased average daily production milestones for the underlying properties are achieved. J. Thomas Wilson, a director and chief executive officer of the Company, has an approximate 52% interest in such contingent payments. See Note 5 above for information regarding the estimated discounted fair value of the future contingent consideration payable related to the Nautilus Transaction.
FINRA review. On August 28, 2012, Stratex Oil & Gas Holdings, Inc. ("Stratex"), announced an unsolicited proposal for the acquisition of the Company's common stock (the "Stratex Announcement"). On September 10, 2012, the Company announced that its Board of Directors, after carefully considering the unsolicited proposal, had determined not to pursue the Stratex proposal. On September 12, 2012, the Company received a subpoena from the SEC for the production of documents in connection with these announcements. On May 31, 2013, the Company received a letter dated May 30, 2013 from the Staff of the SEC indicating that the investigation relating to the announcements regarding an unsolicited proposal on August 28, 2012 by Stratex Oil & Gas Holdings, Inc. for the acquisition of the Company's common stock, had been completed as to the Company, against whom the Staff does not intend to recommend any enforcement action by the SEC. The Company believes that this matter is now concluded as the Company also received a letter from the Financial Industry Regulatory Authority ("FINRA") on April 30, 2013 indicating that FINRA had completed its related review regarding this matter, which letter also indicated that FINRA had referred its review to the SEC for whatever action, if any, the SEC deemed appropriate.
Sopak Collateral Agreement. The Company has estimated that there is the potential for a statutory liability of approximately $1.0 million of required US Federal tax withholdings and any applicable penalties and interest related to the Collateral Agreement as described in Note 9. As a result, as of June 30, 2013, we have recorded a total liability of $1.0 million under accrued and other liabilities in the consolidated balance sheet included in this report. The Company is in the process of addressing its US Federal tax withholdings requirements. The Company has a legally enforceable right to collect from Sopak any amounts owed to the IRS as a result of the Collateral Agreement. As a result, we have recorded a corresponding receivable under prepaid and other assets in the consolidated balance sheet of $1.0 million as of June 30, 2013.