History
Kabe Exploration was a tiny shell that never completed a planned merger, pivoted toward Kansas oil leases in 2013, and had its SEC registration revoked in 2019.
2008-2010: A shell changes hands
On 21 February 2008, Erik Ulsteen bought 1,750,000 shares, 51.7% of Kabe Exploration, from Antony Claydon and Rory Moss for $50,000 in cash. Claydon resigned and Ulsteen took over as President, CFO and Secretary. He had been CEO and Chairman of Emission & Power Solutions, Inc. (EPS) since 2004.
In October 2008 Kabe signed a merger agreement with EPS, under which EPS shareholders would get one Kabe share for every five EPS shares. This was a reverse merger, where a private business gets a stock market listing by combining with a shell company. The deal needed EPS shareholder approval.
It never appears to have closed. The FY2009 annual report, filed in March 2010, no longer mentioned it. Net loss rose to $183,342 from $50,938, including a $5,000 write-off for abandoned Storey County mining leases and $50,000 in consultant fees. No termination was disclosed.
2011-2013: A turn to Kansas oil
The record for 2011 is thin, but shares on issue rose from 38.6 million at the end of 2010 to 117.6 million a year later. The beats do not explain the increase. Net loss was $56,789 in 2011 and $135,796 in 2012, with a cumulative deficit of $474,292 since 2006.
The FY2012 report, filed in April 2013, showed a move into Kansas oil and gas. Kabe had hired geologist Sal Mazullo to help pick drilling sites and applied for operator status with the State of Kansas. Ulsteen remained its only employee.
In May 2013 Kabe signed letters of intent to buy deep rights on Cowley County leases: from Fortune Oil & Gas Ltd. for $781,000, payable in 7,810,000 shares at $0.10, and from Mazullo for $39,000. It also signed a non-binding term sheet under which Phoenix Group Capital Markets would buy up to $5 million of stock over 36 months at 50% of a recent low average price, a heavily dilutive structure. Roger A T Smith, a drilling veteran of 35 years, joined as a director. Shares on issue were 129.7 million at the end of 2013.
2014-2019: Silence and revocation
The record is quiet after 2013. The company stopped filing periodic reports. In June 2019 the SEC revoked Kabe's securities registration by default, after a September 2018 order and a December 2018 show-cause order that the company never answered. That is where its story stood on 21 June 2019.
Written from the 6 story beats below (2008 to 21 June 2019), which come from the company's own announcements and filings.