SEC Form SC 13D/A filed by Empire Petroleum Corporation (Amendment)

$EP
Oil & Gas Production
Energy
Get the next $EP alert in real time by email
SC 13D/A 1 pritchard13d-18714.htm THOMAS W. PRITCHARD / SCHEDULE 13DA2


 

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549


SCHEDULE 13D
Under the Securities Exchange Act of 1934
 (Amendment No. 2)
 

EMPIRE PETROLEUM CORPORATION

(Name of Issuer)
 

Common Stock, par value $0.001 per share

(Title of Class of Securities)
 

292034 30 3

(CUSIP Number)
 

Michael Morrisett
Empire Petroleum Corporation
2200 S. Utica Place, Suite 150
Tulsa, OK 74114
(539) 444-8002

(Name, Address and Telephone Number of Person Authorized to
Receive Notices and Communication)
 

November 14, 2022

(Date of Event which Requires Filing of this Statement)
 
 

If the filing person has previously filed a statement on Schedule 13G to report the acquisition that is the subject of this Schedule 13D, and is filing this schedule because of §§240.13d-1(e), 240.13d-1(f) or 240.13d-1(g), check the following box.  ☐

Note: Schedules filed in paper format shall include a signed original and five copies of the schedule, including all exhibits.  See §240.13d-7 for other parties to whom copies are to be sent.

* The remainder of this cover page shall be filled out for a reporting person's initial filing on this form with respect to the subject class of securities, and for any subsequent amendment containing information which would alter disclosures provided in a prior cover page.

The information required on the remainder of this cover page shall not be deemed to be "filed" for the purpose of Section 18 of the Securities Exchange Act of 1934 ("Act") or otherwise subject to the liabilities of that section of the Act but shall be subject to all other provision of the Act (however, see the Notes.)
 

 
CUSIP NO. 292034 30 3
13D
Page 2 of 6 pages
 
 
1
NAMES OF REPORTING PERSONS
 
 

Thomas W. Pritchard

 
 
 
 
2
CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP
(a)
 
(b)
 
 
3
SEC USE ONLY
 
 
 
 
 
 
 
4
SOURCE OF FUNDS (SEE INSTRUCTIONS)
 
 

PF; OO

 
 
 
 
5
CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEM 2(D) OR 2(E)
 
 
 
 
 
 
6
CITIZENSHIP OR PLACE OF ORGANIZATION
 
 

United States of America

 
 
 
 
NUMBER OF SHARES BENEFICIALLY OWNED BY EACH REPORTING PERSON WITH
7
SOLE VOTING POWER
 
 

812,916*

 
 
 
 
8
SHARED VOTING POWER
 
 
0
 
 
 
 
9
SOLE DISPOSITIVE POWER
 
 
812,916*
 
 
 
 
10
SHARED DISPOSITIVE POWER
 
 
0
 
 
 
 
11
AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
 
 
812,916*
 
 
 
 
12
CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES (SEE INSTRUCTIONS)
 
 
 
 
 
 
13
PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
 
 
3.6%*
 
 
 
 
14
TYPE OF REPORTING PERSON (SEE INSTRUCTIONS)
 
 
IN
 
 
 
 
 

* Includes 558,866 shares issuable upon the exercise of vested stock options.

 

CUSIP NO. 292034 30 3
13D
Page 3 of 6 pages

 
This Schedule 13D (Amendment No. 2) amends and restates in its entirety the Schedule 13D, which was originally filed on December 8, 2017, as amended through Amendment No. 1 filed on August 3, 2021. All pricing and share references give effect to and reflect the 1-for-4 reverse common stock split effective March 7, 2022.


 
 
ITEM 1.  SECURITY AND ISSUER
 

The securities to which this Schedule 13D relate are shares of common stock, par value $0.001 per share (“Common Stock”), of Empire Petroleum Corporation (the “Company”).

 

The address of the Company’s principal executive office is 2200 S. Utica Place, Suite 150, Tulsa, OK 74114.

 

 

 


ITEM 2.  IDENTITY AND BACKGROUND

 

The residence address of Mr. Pritchard is 15798 Spyglass Hill Loop, Gainesville, VA 20155.

 

Mr. Pritchard is engaged in the oil and gas business and is a former director and former Chief Executive Officer of the Company.

 

Mr. Pritchard has not, during the last five years, been convicted in a criminal proceeding (excluding traffic violations and similar misdemeanors).

 

Mr. Pritchard has not, during the last five years, been a party to a civil proceeding of a judicial or administrative body of competent jurisdiction and as a result of such a proceeding, been subject to a judgment, decree or final order enjoining future violations of, or prohibiting or mandating activities subject to, federal or state securities laws or finding any violation with respect to such laws.

 

Mr. Pritchard is a citizen of the United States of America.

 

 

ITEM 3.  SOURCE AND AMOUNT OF FUNDS OR OTHER CONSIDERATION
 

On September 14, 2017, Mr. Pritchard acquired through an entity wholly owned by him 23,333 shares of Common Stock in exchange for consulting services provided to the Company.

 

On December 1, 2017, as compensation for serving as the Company’s Chief Executive Officer and on the Company’s Board of Directors, the Company granted Mr. Pritchard a warrant to purchase 125,000 shares of Common Stock at an exercise price of $1.00 per share, which was immediately exercisable and expires on December 31, 2021 (the “December 2017 Warrant”). On April 3, 2019, such warrant was amended to extend the expiration date from December 31, 2021 to April 2, 2029.

 

On April 3, 2019, the Board of Directors of the Company granted to Mr. Pritchard under the Company’s 2019 Stock Option Plan a non-qualified stock option to purchase 625,000 shares of Common Stock at an exercise price of $1.32 per share (the “4/3/19 Option”). The option expires on April 2, 2029 and vested in three installments as follows: 312,500 shares on April 3, 2019; 156,250 shares on April 3, 2020; and 156,250 shares on April 3, 2021.

 

On December 31, 2020, the Board of Directors of the Company granted to Mr. Pritchard under the Company’s 2019 Stock Option Plan a non-qualified stock option to purchase 500,000 shares of Common Stock at an exercise price of $1.40 per share (the “12/31/20 Option”), which was immediately exercisable and expires on April 2, 2029.

 

To incentivize an investor to purchase an unsecured convertible note from Empire New Mexico LLC, a Delaware limited liability company and wholly owned subsidiary of the Company, Mr. Pritchard entered into an arrangement with such investor on May 14, 2021, pursuant to which such investor had the right to purchase up to 75,000 shares of Common Stock from Mr. Pritchard for $3.00 per share. On May 27, 2021, such rights were exercised in full and, in connection with the same, Mr. Pritchard partially exercised the December 2017 Warrant by purchasing 75,000 shares of Common Stock for an aggregate exercise price of $75,000 using his personal funds and then sold such 75,000 shares of Common Stock to such investor for an aggregate sales price of $225,000.

 

To incentivize an investor to purchase an unsecured convertible note from Empire New Mexico LLC, a Delaware limited liability company and wholly owned subsidiary of the Company, Mr. Pritchard entered into an arrangement with such investor on May 14, 2021, pursuant to which such investor had the right to purchase up to an additional 85,900 shares of Common Stock from Mr. Pritchard for $3.00 per share. On September 28, 2021, such rights were exercised in full and, in connection with the same, Mr. Pritchard (a) exercised the remainder of the December 2017 Warrant by purchasing 50,000 shares of Common Stock for an aggregate exercise price of $50,000 using his personal funds and then sold such 50,000 shares of Common Stock to such investor for an aggregate sales price of $150,000 and (b) partially exercised the 4/3/19 Option by purchasing 35,900 shares of Common Stock for an aggregate exercise price of $47,388 using his personal funds and then sold such 35,900 shares of Common Stock to such investor for an aggregate sales price of $107,700.

 

 

 

CUSIP NO. 292034 30 3
13D
Page 4 of 6 pages
 
 

 

On January 25, 2022, Mr. Pritchard gifted through an entity wholly owned by him 3,750 shares of Common Stock. Subsequently, Mr. Pritchard distributed the remaining 19,583 shares of Common Stock held by such wholly owned entity to himself.

 

On February 28, 2022, the Board of Directors of the Company granted to Mr. Pritchard under the Company’s 2021 Stock and Incentive Compensation Plan (the “2021 Plan”) and in accordance with Section 2.3 Equity Awards of his Employment Agreement dated August 18, 2021 with the Company (the “Employment Agreement”) restricted stock units for 10,000 shares of Common Stock, which vest 13 months after the date of grant. This award was for the 2021 year.

On February 28, 2022, the Board of Directors of the Company granted to Mr. Pritchard under the 2021 Plan a non-qualified stock option to purchase 30,000 shares of Common Stock at an exercise price of $11.80 per share. The option expires on August 31, 2025 and vests in three equal installments beginning on February 28, 2023.

 

On February 28, 2022, the Board of Directors of the Company granted to Mr. Pritchard under the 2021 Plan a non-qualified stock option to purchase 30,000 shares of Common Stock at an exercise price of $11.80 per share. The option expires on August 31, 2026 and vests in one-third increments on each of the second, third and fourth anniversary of the date of the grant.

 

On April 26, 2022, Mr. Pritchard partially exercised the 4/3/19 Option by purchasing 235,000 shares of Common stock at $1.32 per share using his personal funds.

 

On May 25, 2022, the Board of Directors of the Company granted to Mr. Pritchard under the 2021 Plan and in accordance with Section 2.3 Equity Awards of the Employment Agreement restricted stock units for 12,500 shares of Common Stock, which vest 13 months after the date of grant. This award was for the first and second quarters of 2022.

 

On June 29, 2022, Mr. Pritchard sold 533 shares of Common Stock in the open market at $10.4793 per share.

 

On October 11, 2022, the Board of Directors of the Company granted to Mr. Pritchard under the Company’s 2022 Stock and Incentive Compensation Plan (the “2022 Plan”) and in accordance with Section 2.3 Equity Awards of the Employment Agreement restricted stock units for 6,250 shares of Common Stock, which vest 13 months after the date of grant. This award was for the third quarter of 2022.

 

On December 30, 2022, the Board of Directors of the Company granted to Mr. Pritchard under the Company’s 2022 Plan and in accordance with Section 2.3 Equity Awards of the Employment Agreement restricted stock units for 6,250 shares of Common Stock, which vest 13 months after the date of grant. This award was for the fourth quarter of 2022.

 

On January 4, 2023, Mr. Pritchard exercised the remainder of the 4/3/19 Option by purchasing 354,100 shares of Common Stock at $1.32 per share and surrendered 41,182 of such shares to the Company in connection with a cashless exercise.

 

On January 4, 2023, Mr. Pritchard partially exercised the 12/31/20 Option by purchasing 35,900 shares of Common Stock at $1.40 per share and surrendered 4,428 of such shares to the Company in connection with a cashless exercise.

 

On March 16, 2023, Mr. Pritchard resigned as a director and Chief Executive Officer of the Company. Subsequently and in connection with such resignation, Mr. Pritchard (a) forfeited all outstanding restricted stock units for 35,000 shares of Common Stock and his right to acquire 305,234 shares of Common Stock under the 12/31/20 Option in order to satisfy certain tax withholding obligations to the Company, (b) forfeited 50,000 of the 60,000 shares underlying the non-qualified stock options granted on February 28, 2022, and (c) rescinded, but not forfeited, his January 4, 2023 exercises of the remainder of the 4/3/19 Option and a portion of the 12/31/20 Option. The number of shares beneficially owned by Mr. Pritchard in this Schedule 13D gives effect to the rescission of such January 4, 2023 option exercises.

 

 

 

 

CUSIP NO. 292034 30 3
13D
Page 5 of 6 pages
 
 

 
 
 
ITEM 4.  PURPOSE OF TRANSACTION

 

Mr. Pritchard acquired and owns the shares of Common Stock, as described herein, for investment purposes. Mr. Pritchard may purchase shares, or dispose of additional shares, of Common Stock in various amounts and at various times depending upon Mr. Pritchard’s continuing assessment of pertinent factors, including without limitation, other investment and business opportunities available to Mr. Pritchard, tax and estate planning considerations, the price levels of the Common Stock, conditions in the securities markets and general economic and industry conditions, and the business prospects, financial condition and results of operations of the Company.

 

Except as otherwise disclosed herein, at the present time, Mr. Pritchard does not have any plans or proposals that relate to or would result in any of the actions specified in clauses (a) through (j) of Item 4 to Schedule 13D.

 
 
 
ITEM 5.  INTEREST IN SECURITIES OF THE ISSUER 
 

(a)  Mr. Pritchard is the beneficial owner of 812,916 shares of Common Stock, which includes 558,866 shares issuable upon the exercise of vested stock options, or 3.6% of the total issued and outstanding shares of Common Stock.
   
  The ownership percentage included in this Amendment No. 2 for Mr. Pritchard is based on 22,093,503 outstanding shares of Common Stock at December 31, 2022, which figure is disclosed in the Company’s Annual Report on Form 10-K for the year ended December 31, 2022 filed on March 31, 2023. The 558,866 shares that Mr. Pritchard is deemed to beneficially own by virtue of having a right to acquire upon exercise of the vested stock options are considered outstanding solely for purposes of calculating his percentage of ownership.
   
(b)   The responses of Mr. Pritchard to Items 7-11 of the cover page of this Schedule 13D are incorporated herein by reference.
   
(c)   The responses to Item 3 of this Schedule 13D are incorporated herein by reference.
   
(d)   Not applicable.
   
(e)   Mr. Pritchard ceased to be a beneficial owner of more than 5% of shares of Common Stock on November 14, 2022. Mr. Pritchard’s ownership percentage is below 5% primarily as a result of the Company issuing a significant number of shares of Common Stock since the filing of the Company’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2021 on May 17, 2021.




 
ITEM 6.  CONTRACTS, ARRANGEMENTS, UNDERSTANDINGS OR RELATIONSHIPS WITH RESPECT TO SECURITIES OF THE ISSUER

Mr. Pritchard has 254,050 shares of Common Stock pledged with a brokerage firm.
 
 
 

ITEM 7.  MATERIAL TO BE FILED AS EXHIBITS

Not applicable.
 
 
 


 
CUSIP NO. 292034 30 3
13D
Page 6 of 6 pages
 
 
 
Signature
 

After reasonable inquiry and to the best of my knowledge and belief, I certify that the information set forth in this statement is true, complete and correct.


 
 
   

     
Date:   April 28, 2023
 
/s/ Thomas W. Pritchard        
   

Thomas W. Pritchard

 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

 

 

Get the next $EP alert in real time by email

Chat with this insight

Save time and jump to the most important pieces.

Recent Analyst Ratings for
$EP

DatePrice TargetRatingAnalyst
More analyst ratings

$EP
Press Releases

Fastest customizable press release news feed in the world

See more
  • Empire Petroleum Reports Results for Fourth Quarter and Full Year 2024 and Provides Operational Updates

    Empire Petroleum (NYSE:EP) ("Empire" or the "Company"), an oil and gas company with producing assets in New Mexico, North Dakota, Montana, Texas, and Louisiana, today reported operational and financial results for the fourth quarter and full year 2024, including year-end 2024 proved reserves. FOURTH QUARTER AND FULL YEAR 2024 HIGHLIGHTS Produced Q4-2024 net production volumes of 2,356 barrels of oil equivalent per day ("Boe/d") including 1,581 barrels of oil per day ("Bbl/d"); 22% increase of BBl/d comparing Q4-2024 vs. Q4-2023; Boe/d is comprised of 67% oil, 17% natural gas liquids ("NGLs"), and 16% natural gas; Since initiating phase one of Enhanced Oil Recovery ("EOR") effort

    $EP
    Oil & Gas Production
    Energy
  • Empire Petroleum Increases Revolver Loan Facility with Equity Bank to $20 Million in Support of Strategic Growth Initiatives

    Amended current revolver commitment from $10 Million to $20 Million Initially provides additional financial capacity of over $11 Million Empire Petroleum Corporation (NYSE:EP) ("Empire" or the "Company") today announced that it has entered into an amendment to its Revolver Loan Agreement with Equity Bank ((Equity Bancshares, NYSE:EQBK), increasing the total principal commitment to $20.0 million, up from an initial $10.0 million through December 29, 2026. Currently, Empire has approximately $8.4 million borrowed on the $20.0 million facility. The loan is secured by assets from two of the Company's subsidiaries, Empire North Dakota, LLC, and Empire ND Acquisition, LLC. The increase h

    $EP
    $EQBK
    Oil & Gas Production
    Energy
    Major Banks
    Finance
  • Empire Petroleum Reports Q3 2024 Results and Provides Strategic Operational Updates

    Empire Petroleum (NYSE:EP) ("Empire" or the "Company"), an oil and gas company with producing assets in New Mexico, North Dakota, Montana, Texas, and Louisiana, today reported 2024 third quarter results and progress on its North Dakota development program. THIRD QUARTER 2024 HIGHLIGHTS Delivered Q3-2024 net production volumes of 2,460 barrels of oil equivalent per day ("Boe/d") including 1,573 barrels of oil per day ("Bbl/d") Boe/d is comprised of 64% oil, 17% natural gas liquids ("NGLs"), and 19% natural gas; Completed the first stage of Enhanced Oil Recovery ("EOR") activities for Empire's Starbuck Drilling Program ("Starbuck") in North Dakota, successfully converting three w

    $EP
    Oil & Gas Production
    Energy

$EP
Insider Purchases

Insider purchases reveal critical bullish sentiment about the company from key stakeholders. See them live in this feed.

See more

$EP
Insider Trading

Insider transactions reveal critical sentiment about the company from key stakeholders. See them live in this feed.

See more

$EP
SEC Filings

See more

$EP
Leadership Updates

Live Leadership Updates

See more
  • Empire Petroleum Provides Business Update and Announces First Quarter 2022 Financial Results

    Revenue from Oil and Gas Sales at $13.1 million and Net Income $3.6 million Recent Acquisitions Add Immediate Accretive Cash Flow & Increased Scale with Minimal Incremental Overhead Empire Petroleum (NYSE:EP) ("Empire" or the "Company"), an oil and gas company with current producing assets in Texas, Louisiana, North Dakota, Montana and New Mexico, today announced the Company's financial results for the first quarter of 2022, ended March 31, 2022. Recent Highlights First Quarter 2022 Financial Results Revenue from oil, natural gas, and natural gas liquids sales was $13.1 million for the first quarter compared to $2.4 million in the 2021 comparable period. Net income for the quarter w

    $EP
    Oil & Gas Production
    Energy
  • Vice Admiral Andrew Lewis Appointed as Board Member

    Lewis' Leadership Spans Over 36 Years of Distinguished Military Service Empire Petroleum (NYSE:EP) ("Empire" or the "Company"), an oil and gas company with current producing assets in Texas, Louisiana, North Dakota, Montana and New Mexico, announced today the appointment of Vice Admiral Andrew Lewis as Board Member, effective immediately. Vice Admiral Lewis replaces Anthony Kamin, who has served Empire as a Director since December 2016 and recently as Co-Chairman of the Board. Vice Admiral Andrew Lewis was raised in Los Altos, California, and is a 1985 graduate of the U.S. Naval Academy. He was designated a Naval Aviator in April 1987 and has flown over 100 combat missions, accumulating o

    $EP
    Oil & Gas Production
    Energy
  • PROS Holdings, Inc. Announces Appointment of Leland T. Jourdan to Board of Directors

    Seasoned business leader brings operational and DEI expertise to fuel next phase of corporate growth PROS Holdings, Inc. (NYSE:PRO), a provider of AI-powered solutions that optimize selling in the digital economy, today announced the appointment of Leland T. "Lee" Jourdan to its board of directors effective June 1, 2021. Jourdan joins the board as an independent director. Jourdan is a seasoned business development and diversity, equity and inclusion (DEI) leader within the Oil & Gas industry. Recently retired from Chevron (NYSE:CVX), he spent the past 18 years in senior management roles including Chief Diversity and Inclusion Officer, Senior Management Sponsor, and Vice President, Commerc

    $EP
    $CVX
    $PRO
    $D
    Oil & Gas Production
    Energy
    Integrated oil Companies
    EDP Services

$EP
Financials

Live finance-specific insights

See more
  • Empire Petroleum Announces Results for Third Quarter of 2022

    Empire Petroleum (NYSE:EP) ("Empire" or the "Company"), today reported operational and financial results for the third quarter of 2022. KEY THIRD QUARTER 2022 HIGHLIGHTS Increased sales volumes by 3% to 2,232 barrels of oil equivalent per day ("Boe/d") (60% oil, 19% natural gas and 21% natural gas liquids ("NGLs")) from 2,158 Boe/d (62% oil, 18% natural gas and 20% NGLs) for the second quarter of 2022; Recorded revenue of $14.8 million that resulted in net income of $0.2 million, or $0.01 per diluted share, and Adjusted Net Income1 of $3.7 million, or $0.16 per diluted share; Generated Adjusted EBITDA1 of $4.8 million, or $23.36 per barrel of oil equivalent ("Boe"); Increased cash

    $EP
    Oil & Gas Production
    Energy
  • Empire Petroleum Announces Timing of Third Quarter 2022 Earnings Release and Conference Call

    Empire Petroleum (NYSE:EP) ("Empire" or the "Company"), today announced that it will release its financial and operational results for the third quarter of 2022 after the market closes on Monday, November 14, 2022. An investor conference call to review its results will be held on Tuesday, November 15, 2022, at 12:00 p.m. Eastern (11:00 a.m. Central). The call will be hosted by Tommy Pritchard, the Company's Chief Executive Officer, and Mike Morrisett, Empire's President. Details for the conference call are as follows: Date: Tuesday, November 15, 2022 Time: 12:00 p.m. Eastern (11:00 a.m. Central) Telephone: 1-877-270-2148 (Toll free); 1-412-902-6510 (International); participants should as

    $EP
    Oil & Gas Production
    Energy
  • Empire Petroleum Announces Second Quarter 2022 Financial Results

    Revenue from Oil and Gas Sales of $16.5 million, Net Income Reaches $5.5 million Empire Petroleum (NYSE:EP) ("Empire" or the "Company"), an oil and gas company with current producing assets in Texas, Louisiana, North Dakota, Montana and New Mexico, today announced the Company's financial results for the second quarter of 2022, ended June 30, 2022. Second Quarter 2022 Financial Highlights Revenue from oil, natural gas, and natural gas liquids sales was $16.5 million for the second quarter, triple the $4.9 million revenue reported in the 2021 comparable period. Net income for the quarter was $5.5 million compared to a net loss of $5.3 for the second quarter of 2021, a positive swing of

    $EP
    Oil & Gas Production
    Energy

$EP
Large Ownership Changes

This live feed shows all institutional transactions in real time.

See more