Annual report pursuant to Section 13 and 15(d)

NOTE RECEIVABLE

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NOTE RECEIVABLE
12 Months Ended
Dec. 31, 2015
Receivables [Abstract]  
NOTE RECEIVABLE

NOTE 4. NOTE RECEIVABLE

 

The Company purchased a Note Receivable from Blue Sky New Mexico, Inc. (“BSNM”) on November 4, 2015 with a face value of $1,300,000. BSNM had previously purchased this note from the Bankruptcy Trustee, it was an asset of the Orbit Petroleum bankruptcy liquidation. The Company issued six million (6,000,000) shares of Rockdale Resources Corporation stock as consideration for the note. The dollar value of the shares on this date was $316,800, specifically 6,000,000 shares at a market price of $0.528 per share. The note bears an annual simple interest rate that accrues at the rate of 10%. The note is secured by mortgages on the Twin Lakes oil and gas leases.

 

On November 4, 2015, the note was past due and is considered to be in default. As the owner of the note, the Company is implementing foreclosure proceedings.