SRC Energy Inc. - 10-Q filing on 2014-04-07

Shareholders' Equity

6 Months Ended

Feb. 28, 2014

10.	Shareholders' Equity

The Company's classes of stock are summarized as follows:

	As of February 28,		As August 31,
	2014		2013
Preferred stock, shares authorized		10,000,000		10,000,000
Preferred stock, par value	$	0.01	$	0.01
Preferred stock, shares issued and outstanding	nil		nil
Common stock, shares authorized		100,000,000		100,000,000
Common stock, par value	$	0.001	$	0.001
Common stock, shares issued and outstanding		76,685,709		70,587,723

Preferred Stock may be issued in series with such rights and preferences as may be determined by the Board of Directors. Since inception, the Company has not issued any preferred shares.

Common stock issued for acquisition of mineral interests

During the six months ended February 28, 2014, the Company issued common shares in exchange for mineral property interests. The value of each transaction was determined using the market price of the Company's common stock on the date of each transaction.

	For the Six Months Ended February 28, 2014
Number of common shares issued for mineral property leases		243,179
Number of common shares issued for acquisitions		851,857
Total common shares issued		1,095,036

Average price per common share	$	9.24
Aggregate value of shares issued (in thousands)	$	10,122

The following table summarizes information about the Company's issued and outstanding common stock warrants as of February 28, 2014:

Exercise Price			Description		Number of Shares				Remaining Contractual Life (in years)				Exercise Price times Number of Shares (in thousands)
	$6.00		Series C			3,664,739				0.8				$21,988

The following table summarizes activity for common stock warrants for the six month period ended February 28, 2014:

	Number of Warrants			Weighted Average Exercise Price
Outstanding, August 31, 2013		8,666,802		$	5.92
Granted		-		$	-
Exercised		(5,002,063	)	$	5.86
Expired		-		$	-
Outstanding, February 28, 2014		3,664,739		$	6.00