EX-99.2
7
ex992.htm
UNAUDITED CONDENSED COMBINED PRO FORMA FINANCIAL INFORMATION
UNAUDITED PRO FORMA CONSOLIDATED BALANCE SHEET
Exhibit 99.2
Silver Butte
UNAUDITED PRO FORMA CONSOLIDATED BALANCE SHEET
November 30, 2010
Historical
Silver Butte
Gulfmark Energy
Group Inc.
Pro Forma
Adjustments
Pro Forma
November 30, 2010
October 31, 2010
ASSETS
CURRENT ASSETS
Cash
$ 9,323
$ 48,225
$ -
$ 57,548
Prepaids
-
8,750
-
8,750
TOTAL
9,323
56,975
-
66,298
Property and Equipment, net
-
713,855
-
713,855
Goodwill
-
-
-
-
TOTAL ASSETS
$ 9,323
$ 770,830
$ -
$ 780,153
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES
Accounts Payable & Accrued Liabilities
$ 8,255
$ 9,225
$ -
$ 17,480
Accounts Payable- Related Party
-
6,041
-
6,041
Short Term Debt
-
162,834
-
162,834
TOTAL
8,255
178,100
-
186,355
Long-term Debt
-
171,166
-
171,166
Long-term Debt- Related Party
-
210,100
-
210,100
TOTAL LIABILITIES
8,255
559,366
-
567,621
STOCKHOLDERS' EQUITY
Preferred stock, $.001 par, 50,000,000 authorized,
11,000,000 issued and outstanding
-
11,000
(11,000)
(1)
-
Common stock, $.001 par, 950,000,000 authorized,
26,950,000 shares issued and outstanding
-
26,950
(26,950)
(1)
-
Preferred Stock $.001 par,
10,000,000 shares authorized, no shares issued and outstanding
-
-
-
-
50,000,000 shares authorized,
Series A - 11,000,000 shares issued and outstanding
Series B - 250,000 shares issued and outstanding
-
-
11,000
(1)
11,000
-
-
-
-
Common stock $.001 par,
300,000,000 shares authorized, 19,680,412 shares issued and outstanding
19,680
-
(19,680)
(1)
-
1,100,000,000 share authorized, 27,442,010 shares issued and outstanding
-
-
27,442
(1)
27,442
Additional paid-in capital
1,015,089
196,483
(1,014,513)
(1)
197,059
Accumulated deficit
(1,033,701)
(22,969)
1,033,701
(1)
(22,969)
Total stockholders' deficit
1,068
211,464
(0)
212,532
TOTAL LIABILITIES AND STOCKHOLDERS' DEFICIT
$ 9,323
$ 770,830
$ (0)
$ 780,153
(1)
To reflect the share exchange, recapitalization and reverse stock split described in Note 2 below
NOTE 1 - Basis of Presentation
The unaudited pro forma consolidated balance sheet as of November 30, 2010 was based on the unaudited balance sheet of Silver Butte, Inc. ("the Company") and the audited balance sheet of Gulfmark Energy Group Inc. as of October 31, 2010 combined with pro forma adjustments to give effect to the merger as if it occurred on November 30, 2010 (Silver Butte) and October 31, 2010 (Gulfmark).
These unaudited pro forma financial statements are provided for illustrative purposes and do not purport to represent what the Company's financial position would have been if such transactions had occurred on the above mentioned dates. These statements were prepared based on accounting principles generally accepted in the United States. The use of estimates is required and actual results could differ from the estimates used. The Company believes the assumptions used provide a reasonable basis for presenting the significant effects directly attributable to the acquisition.
NOTE 2 - Merger
On January 12, 2010 the Company acquired 100% of Gulfmark Energy Group, Inc. for 26,950,000 common shares (1,078,000,027 pre-split) and 11,000,000 preferred shares.
The share exchange will be carried out as follows:
(1) Issuance of 7,007,990 (280,319,588 pre-split) common shares to Gulfmark Energy Group, Inc.
(2) Approval of a 1:40 reverse split of the Company's common shares
(3) Approval to increase the authorized common and preferred stock to 1,100,000,000 and 50,000,000 respectively
(4) Issuance of 19,942,010 (797,680,439 pre-split) common shares, 11,000,000 Series A preferred shares, and an option to purchase 250,000 Series B preferred shares to
Gulfmark Energy Group, Inc
Series A Preferred Shares each have twenty votes per share. The preferred shares are convertible into common shares at the rate of twenty shares of common stock for every share of Series A Preferred Stock upon no less than 75 days advance notice to the Company.
Series B Preferred Shares are convertible into common shares at the rate of twenty common shares for each share of Series B Preferred Stock upon no less than 75 days advance notice to the Company. The Series B shares will have one vote per share.
The acquisition was accounted for as a recapitalization and Gulfmark Energy Group Inc. is considered the acquirer for accounting and financial reporting purposes. As a result of the share exchange Gulfmark Energy Group became a wholly-owned subsidiary of the Company. The assets and liabilities of the acquired entity have been brought forward at their book value and no goodwill has been recognized.

EX - 99 . 2 7 ex992 . htm UNAUDITED CONDENSED COMBINED PRO FORMA FINANCIAL INFORMATION UNAUDITED PRO FORMA CONSOLIDATED BALANCE SHEET Exhibit 99 . 2 Silver Butte UNAUDITED PRO FORMA CONSOLIDATED BALANCE SHEET November 30 , 2010 Historical Silver Butte Gulfmark Energy Group Inc . Pro Forma Adjustments Pro Forma November 30 , 2010 October 31 , 2010 ASSETS CURRENT ASSETS Cash $ 9,323 $ 48,225 $ - $ 57,548 Prepaids - 8,750 - 8,750 TOTAL 9,323 56,975 - 66,298 Property and Equipment , net - 713,855 - 713,855 Goodwill - - - - TOTAL ASSETS $ 9,323 $ 770,830 $ - $ 780,153 LIABILITIES AND STOCKHOLDERS ' EQUITY CURRENT LIABILITIES Accounts Payable & Accrued Liabilities $ 8,255 $ 9,225 $ - $ 17,480 Accounts Payable - Related Party - 6,041 - 6,041 Short Term Debt - 162,834 - 162,834 TOTAL 8,255 178,100 - 186,355 Long - term Debt - 171,166 - 171,166 Long - term Debt - Related Party - 210,100 - 210,100 TOTAL LIABILITIES 8,255 559,366 - 567,621 STOCKHOLDERS ' EQUITY Preferred stock , $ .001 par , 50,000,000 authorized , 11,000,000 issued and outstanding - 11,000 ( 11,000 ) ( 1 ) - Common stock , $ .001 par , 950,000,000 authorized , 26,950,000 shares issued and outstanding - 26,950 ( 26,950 ) ( 1 ) - Preferred Stock $ .001 par , 10,000,000 shares authorized , no shares issued and outstanding - - - - 50,000,000 shares authorized , Series A - 11,000,000 shares issued and outstanding Series B - 250,000 shares issued and outstanding - - 11,000 ( 1 ) 11,000 - - - - Common stock $ .001 par , 300,000,000 shares authorized , 19,680,412 shares issued and outstanding 19,680 - ( 19,680 ) ( 1 ) - 1,100,000,000 share authorized , 27,442,010 shares issued and outstanding - - 27,442 ( 1 ) 27,442 Additional paid - in capital 1,015,089 196,483 ( 1,014,513 ) ( 1 ) 197,059 Accumulated deficit ( 1,033,701 ) ( 22,969 ) 1,033,701 ( 1 ) ( 22,969 ) Total stockholders ' deficit 1,068 211,464 ( 0 ) 212,532 TOTAL LIABILITIES AND STOCKHOLDERS ' DEFICIT $ 9,323 $ 770,830 $ ( 0 ) $ 780,153 ( 1 ) To reflect the share exchange , recapitalization and reverse stock split described in Note 2 below NOTE 1 - Basis of Presentation The unaudited pro forma consolidated balance sheet as of November 30 , 2010 was based on the unaudited balance sheet of Silver Butte , Inc . ( " the Company " ) and the audited balance sheet of Gulfmark Energy Group Inc . as of October 31 , 2010 combined with pro forma adjustments to give effect to the merger as if it occurred on November 30 , 2010 ( Silver Butte ) and October 31 , 2010 ( Gulfmark ) . These unaudited pro forma financial statements are provided for illustrative purposes and do not purport to represent what the Company 's financial position would have been if such transactions had occurred on the above mentioned dates . These statements were prepared based on accounting principles generally accepted in the United States . The use of estimates is required and actual results could differ from the estimates used . The Company believes the assumptions used provide a reasonable basis for presenting the significant effects directly attributable to the acquisition . NOTE 2 - Merger On January 12 , 2010 the Company acquired 100 % of Gulfmark Energy Group , Inc . for 26,950,000 common shares ( 1,078,000,027 pre - split ) and 11,000,000 preferred shares . The share exchange will be carried out as follows : ( 1 ) Issuance of 7,007,990 ( 280,319,588 pre - split ) common shares to Gulfmark Energy Group , Inc . ( 2 ) Approval of a 1 : 40 reverse split of the Company 's common shares ( 3 ) Approval to increase the authorized common and preferred stock to 1,100,000,000 and 50,000,000 respectively ( 4 ) Issuance of 19,942,010 ( 797,680,439 pre - split ) common shares , 11,000,000 Series A preferred shares , and an option to purchase 250,000 Series B preferred shares to Gulfmark Energy Group , Inc Series A Preferred Shares each have twenty votes per share . The preferred shares are convertible into common shares at the rate of twenty shares of common stock for every share of Series A Preferred Stock upon no less than 75 days advance notice to the Company . Series B Preferred Shares are convertible into common shares at the rate of twenty common shares for each share of Series B Preferred Stock upon no less than 75 days advance notice to the Company . The Series B shares will have one vote per share . The acquisition was accounted for as a recapitalization and Gulfmark Energy Group Inc . is considered the acquirer for accounting and financial reporting purposes . As a result of the share exchange Gulfmark Energy Group became a wholly - owned subsidiary of the Company . The assets and liabilities of the acquired entity have been brought forward at their book value and no goodwill has been recognized .
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