NOTE 10. SUBSEQUENT EVENTS

On July 6, 2017, Mr. Rick Wilber agreed to convert his cumulative outstanding debt of $550,000 into 55,000 shares of Petrolia Series A Preferred Stock.  The stated value of these shares is $10.00 per share.  The outstanding debt included the following: a $350,000 Convertible Secured Note dated June 17, 2013, a $100,000 Convertible Secured Note dated September 30, 2013 and a $100,000 Convertible Secured Note dated December 31, 2013.  Subsequent to this conversion, all of the Company’s debt with Mr. Wilber is deemed cancelled and it is no longer due and payable.  Mr. Wilber retains both the warrants and shares that were previously issued by the Company related to the original sale of these notes (and their respective amendments).

As described in greater detail in Note 7 above, on July 19, 2017, Jovian converted $2 million of its remaining debt into 12,749,286 shares of the Company’s common stock and 21,510 shares of the Company’s preferred stock.  The shares of common stock were priced at $0.14 however based on a market price of $0.104 the book value of the shares is $1,325,926.  The Preferred Stock was priced at $10.00 per share with a value of $215,100.  Refer to Note 7 for further explanation.

From July 17, 2017 to July 24, 2017 the Company sold an additional 76,510 shares of Preferred Stock valued at $765,100.  These sales included 55,000 shares for the conversion of Mr. Wilber’s debt and 21,510 shares for the conversion of the Jovian debt.