UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
[ x ] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended March 31, 2015
[ ] TRANSITION REPORT UNDER SECTION 13 OR 15(D) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the transition period from _____to _____
Commission File Number: 000-51712
PARK PLACE ENERGY CORP.
(Exact name of small business issuer as specified in its
charter)
Nevada |
71-0971567 |
(State or other jurisdiction of incorporation or
organization) |
(I.R.S. Employer Identification No.) |
|
|
2200 Ross Ave., Suite 4500E |
|
Dallas, TX USA |
75201
|
(Address of principal executive offices) |
(Zip Code) |
(214) 220-4340
Registrants telephone number,
including area code
N/A
(Former name, former address and former
fiscal year, if changed since last report)
Indicate by check mark whether the registrant (1) has filed all
reports required to be filed by Section 13 or 15(d) of the Exchange Act of 1934
during the preceding 12 months (or for such shorter period that the registrant
was required to file such reports), and (2) has been subject to such filing
requirements for the past 90 days. Yes[ x ] No[ ]
Indicate by check mark whether the registrant has submitted
electronically and posted on its corporate website, if any, every Interactive
Data File required to be submitted and posted pursuant to Rule 405 of Regulation
S-T during the preceding 12 months (or for such shorter period that the
registrant was required to submit and post such files). Yes[ x ] No[ ]
Indicate by check mark whether the registrant is a large
accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller
reporting company. See the definitions of large accelerated filer,
accelerated filer, non-accelerated filer, and smaller reporting company in
Rule 12b-2 of the Exchange Act.
Large accelerated filer [ ] |
Accelerated filer [ ] |
Non-accelerated filer [ ] (Do not check if a smaller
reporting company) |
Smaller reporting company [ x ]
|
Indicate by check mark whether the registrant is a shell
company (as defined in Rule 12b-2 of the Exchange Act). Yes[ ] No[ x ]
State the number of shares outstanding of each of the issuers
classes of common equity, as of the latest practicable date: 45,731,482 shares
of common stock as of May 11, 2015.
1
PARK PLACE ENERGY CORP. |
|
Form 10-Q |
|
Table of Contents |
2
PART I
Item 1. Financial Statements |
PARK PLACE ENERGY CORP. |
Consolidated Balance Sheets |
|
|
March 31, |
|
|
December 31, |
|
|
|
2015 |
|
|
2014 |
|
|
|
(unaudited) |
|
|
|
|
ASSETS |
|
|
|
|
|
|
Current assets |
|
|
|
|
|
|
Cash |
$ |
1,131,725 |
|
$ |
1,539,439 |
|
Receivables |
|
3,449 |
|
|
6,307 |
|
Prepaid expenses and deposits |
|
13,289 |
|
|
11,993 |
|
Total current assets |
|
1,148,463 |
|
|
1,557,739 |
|
Oil and gas properties |
|
2,398,634 |
|
|
2,196,157 |
|
Total assets |
$ |
3,547,097 |
|
$ |
3,753 896 |
|
LIABILITIES AND STOCKHOLDERS EQUITY |
|
|
|
|
|
|
Current liabilities |
|
|
|
|
|
|
Accounts payable and accrued liabilities |
$ |
231,365 |
|
$ |
268,862 |
|
Total liabilities
|
|
231,365 |
|
|
268,862 |
|
Commitments and contingencies |
|
|
|
|
|
|
Stockholders equity |
|
|
|
|
|
|
Common stock
Authorized: 250,000,000
shares, par value $0.00001
Issued and outstanding: 45,731,482 and 45,624,427 shares, respectively |
|
457 |
|
|
456 |
|
Additional paid-in capital |
|
17,214,606 |
|
|
17,072,916 |
|
Stock to be issued |
|
- |
|
|
46,116 |
|
Accumulated other comprehensive gain |
|
1,201 |
|
|
558 |
|
Accumulated deficit |
|
(13,900,532 |
) |
|
(13,635,012 |
) |
Total
stockholders equity |
|
3,315,732 |
|
|
3,485,034 |
|
Total liabilities and stockholders equity |
$ |
3,547,097 |
|
$ |
3,753,896 |
|
See accompanying notes to consolidated financial statements.
3
PARK PLACE ENERGY CORP. |
Consolidated Statements of Operations |
(unaudited) |
|
|
Three months ended March 31, |
|
|
|
2015 |
|
|
2014 |
|
Expenses |
|
|
|
|
|
|
General and administrative |
$ |
216,431 |
|
$ |
173,685 |
|
Total expenses |
|
216,431 |
|
|
173,685 |
|
Loss before other
expenses |
|
(216,431 |
) |
|
(173,685 |
) |
Other expenses |
|
|
|
|
|
|
Foreign exchange loss |
|
(49,089 |
) |
|
(3,746 |
) |
Total other expenses |
|
(49,089 |
) |
|
(3,746 |
) |
Net loss for the
period |
$ |
(265,520 |
) |
$ |
(177,431 |
) |
Loss per share, basic and diluted |
$ |
(0.01 |
) |
$ |
(0.01 |
) |
Weighted average
number of shares outstanding |
|
45,725,535 |
|
|
33,368,193 |
|
See accompanying notes to consolidated financial statements.
4
PARK PLACE ENERGY CORP. |
Consolidated Statements of Comprehensive Loss |
(unaudited) |
|
|
|
|
|
|
Three months ended March 31, |
|
|
|
2015 |
|
|
2014 |
|
|
|
|
|
|
|
|
Net loss for the period |
$ |
(265,520 |
) |
$ |
(177,431 |
) |
Other comprehensive income: |
|
|
|
|
|
|
Foreign currency cumulative
translation adjustment |
|
643 |
|
|
|
|
Comprehensive loss
for the period |
$ |
(264,877 |
) |
$ |
(177,431 |
) |
See accompanying notes to consolidated financial statements.
5
PARK PLACE ENERGY CORP. |
Consolidated Statement of Stockholders Equity
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Accumulated |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
other |
|
|
|
|
|
|
|
|
|
Common Stock |
|
|
Additional |
|
|
Stock to |
|
|
comprehensive |
|
|
Accumulated |
|
|
|
|
|
|
Shares |
|
|
Amount |
|
|
paid-in capital |
|
|
be
issued |
|
|
income |
|
|
deficit |
|
|
Total |
|
Balance, December 31, 2014 |
|
45,624,427 |
|
$ |
456 |
|
$ |
17,072,916 |
|
$ |
46,116 |
|
$ |
558 |
|
$ |
(13,635,012 |
) |
$ |
3,485,034 |
|
Issuance of restricted shares |
|
107,055 |
|
|
1 |
|
|
46,115 |
|
|
(46,116 |
) |
|
- |
|
|
- |
|
|
- |
|
Stock-based compensation expense |
|
- |
|
|
- |
|
|
10,375 |
|
|
- |
|
|
- |
|
|
- |
|
|
10,375 |
|
Restricted stock granted for oil and gas properties |
|
- |
|
|
- |
|
|
85,200 |
|
|
- |
|
|
- |
|
|
- |
|
|
85,200 |
|
Currency translation adjustment |
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
643 |
|
|
- |
|
|
643 |
|
Net loss |
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
(265,520 |
) |
|
(265,520 |
) |
Balance, March 31, 2015 |
|
45,731,482 |
|
$ |
457 |
|
$ |
17,214,606 |
|
$ |
|
|
$ |
1,201 |
|
$ |
(13,900,532 |
) |
$ |
3,315,732 |
|
See accompanying notes to consolidated financial statements.
6
PARK PLACE ENERGY CORP. |
Consolidated statements of cash flows |
(unaudited) |
|
|
Three months ended |
|
|
|
March 31, |
|
|
|
2015 |
|
|
2014 |
|
Operating activities |
|
|
|
|
|
|
Net loss for the period |
$ |
(265,520 |
) |
$ |
(177,431 |
) |
Adjustments to reconcile net
loss to net cash used in operating activities: |
|
|
|
|
|
|
Stock-based compensation |
|
10,375 |
|
|
38,320 |
|
Changes in operating assets
and liabilities: |
|
|
|
|
|
|
Receivables |
|
2,858 |
|
|
5,955 |
|
Prepaid expenses
and deposits |
|
(1,296 |
) |
|
4,056 |
|
Accounts payable and accrued liabilities |
|
(57,175 |
) |
|
(12,021 |
) |
Net cash used in operating activities |
|
(310,758 |
) |
|
(141,121 |
) |
Investing activities |
|
|
|
|
|
|
Oil and gas properties expenditures |
|
(97,599 |
) |
|
(155,448 |
) |
Net cash used in
investing activities |
|
(97,599 |
) |
|
(155,448 |
) |
Financing activities |
|
|
|
|
|
|
Proceeds from issuance of common stock / stock subscriptions
received |
|
|
|
|
742,500 |
|
Net cash provided by financing activities |
|
|
|
|
742,500 |
|
Effect of exchange
rate changes on cash and cash equivalents |
|
643 |
|
|
- |
|
Change in cash |
|
(407,714 |
) |
|
445,931 |
|
Cash, beginning of
period |
|
1,539,439 |
|
|
32,782 |
|
Cash, end of period |
$ |
1,131,725 |
|
$ |
478,713 |
|
Non-cash investing and financing activities: |
|
|
|
|
|
|
Oil and gas expenditures
included in accounts payable |
$ |
19,678 |
|
$ |
53,065 |
|
Restricted stock granted for oil and gas
properties |
$ |
85,200 |
|
$ |
|
|
Stock to be issued |
$ |
46,116 |
|
$ |
|
|
See accompanying notes to consolidated financial statements.
7
PARK PLACE ENERGY CORP. |
Notes to the Consolidated Financial Statements |
(Expressed in US dollars) |
(unaudited) |
1. |
Summary of Significant Accounting Policies |
|
|
|
|
(a) |
Basis of Presentation |
|
|
|
|
|
These consolidated financial statements are unaudited and
have been prepared from the books and records of Park Place Energy Corp.
and its consolidated subsidiary (Park Place, the Company, we, or
our). In our opinion, all normal and recurring adjustments necessary for
a fair presentation of the financial position of the Company as of March
31, 2015, and the results of operations for the three months ended March
31, 2015 and 2014, and cash flows for the three months ended March 31,
2015 and 2014, have been made in conformity with generally accepted
accounting principles. All significant intercompany accounts and
transactions have been eliminated. These interim financial statements and
notes are condensed as permitted by the instructions to Form 10-Q and
should be read in conjunction with the audited consolidated financial
statements of the Company included in its Form 10-K for the year ended
December 31, 2014. |
|
|
|
|
|
(b) Recent Accounting Pronouncements |
|
|
|
|
|
The Company has implemented all new accounting
pronouncements that are in effect and that may impact its financial
statements and does not believe that there are any other new accounting
pronouncements that have been issued that might have a material impact on
its financial position or results of operations. |
|
|
|
2. |
Oil and Gas Properties |
|
|
|
March 31, |
|
|
December 31, |
|
|
|
|
2015 |
|
|
2014 |
|
|
Unproven properties |
|
|
|
|
|
|
|
Bulgaria |
$ |
2,398,634 |
|
$ |
2,196,157 |
|
The Company holds a 98,205 acre oil and
gas exploration permit in the Dobrudja Basin located in northeast Bulgaria. The
Company intends to conduct exploration for natural gas and test production
activities over a five year period in accordance with or exceeding its minimum
work program obligation, which includes five wells, and additional testing and
work. The Company intends to commence its work program efforts once it receives
all regulatory approvals of its work programs.
3. |
Common Stock |
|
|
|
In January 2015, the Company issued 107,055 shares of
common stock upon the vesting of restricted stock units. |
|
|
4. |
Stock Options |
The following table summarizes the
Companys stock options as of March 31, 2015.
|
|
|
|
|
|
Weighted |
|
|
|
|
|
|
|
|
|
|
|
|
|
average |
|
|
Weighted |
|
|
Aggregate |
|
|
|
|
Number |
|
|
exercise |
|
|
average |
|
|
intrinsic |
|
|
|
|
of
options |
|
|
price |
|
|
fair
value |
|
|
value |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Outstanding, December 31, 2014 |
|
2,100,000 |
|
$ |
0.17 |
|
$ |
0.14 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Granted |
|
- |
|
|
- |
|
|
- |
|
|
|
|
|
Expired |
|
- |
|
|
- |
|
|
- |
|
|
|
|
|
Outstanding, March 31, 2015 |
|
2,100,000 |
|
|
0.17 |
|
|
0.14 |
|
$ |
42,000 |
|
8
Additional information regarding stock
options as of March 31, 2015, is as follows:
|
|
Outstanding |
|
|
Exercisable |
|
|
|
|
|
|
Weighted |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
average |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
remaining |
|
|
Weighted |
|
|
|
|
|
Weighted |
|
Range of |
|
Number of |
|
|
contractual life |
|
|
average |
|
|
Number of |
|
|
average |
|
exercise prices |
|
shares |
|
|
(years) |
|
|
exercise price |
|
|
shares |
|
|
exercise price |
|
$ 0.10 |
|
1,050,000 |
|
|
2.5 |
|
$ |
0.10 |
|
|
1,000,000 |
|
$ |
0.10 |
|
0.20 |
|
100,000 |
|
|
1.8 |
|
|
0.20
|
|
|
50,000 |
|
|
0.20
|
|
0.23-0.235 |
|
850,000 |
|
|
1.6 |
|
|
0.23 |
|
|
825,000 |
|
|
0.23 |
|
0.28 |
|
100,000 |
|
|
2.3 |
|
|
0.28
|
|
|
50,000 |
|
|
0.28
|
|
|
|
2,100,000 |
|
|
2.1 |
|
$ |
0.17 |
|
|
1,925,000 |
|
$ |
0.16 |
|
|
The fair value of stock options vested during the three
months ended March 31, 2015 and 2014 was $0 and $38,320, respectively,
which was recorded as stock-based compensation and charged to
operations. |
|
|
|
Subsequent to March 31, 2015, the Company granted 150,000
stock options at an exercise price of $0.14 per share to directors of the
Company. Such option agreements are their annual compensation. |
|
|
5. |
Restricted Stock Units |
|
|
|
During three months ended March 31, 2015, the Company
granted restricted stock units (RSUs) with a vesting period of nineteen
months. Officers of the Company were granted 147,107 RSUs with a fair
value of $20,595. Expense related to RSUs is recognized ratably over the
vesting period. |
|
|
|
Number of |
|
|
Weighted average |
|
|
|
|
restricted stock |
|
|
fair value per |
|
|
|
|
units |
|
|
award |
|
|
Balance, December 31, 2014 |
|
887,422 |
|
$ |
0.25 |
|
|
|
|
|
|
|
|
|
|
Issued |
|
386,571 |
|
|
0.14 |
|
|
Vested |
|
- |
|
|
- |
|
|
Balance, March 31, 2015 |
|
1,273,993 |
|
$ |
0.22 |
|
During the three months ended March 31,
2015 and 2014, stock compensation expense related to vested restricted stock
units was $10,375 and $0, respectively. During the three months ended March 31,
2015, $85,200 related to grants of restricted stock were charged to oil and gas
properties ($0 for the prior year period).
At March 31, 2015 unrecognized
compensation expense related to RSUs totaled $33,170 that will be recognized
over a weighted average period of approximately 1.0 year.
The Companys operations are in the
resource industry in Bulgaria with head offices in the United States and a
satellite office in Sofia, Bulgaria. The Company operates as a single reportable
segment and its oil and gas properties are located in Bulgaria.
9
The Company is subject to United States
federal and state income taxes at a rate of 34%. The reconciliation of the
provision for income taxes at the United States federal statutory rate compared
to the Companys income tax expense as reported is as follows:
|
|
|
2015 |
|
|
2014 |
|
|
Benefit at statutory
rate |
$ |
(90,277 |
) |
$ |
(60,327 |
) |
|
Permanent differences and other |
|
161 |
|
|
- |
|
|
Valuation allowance change |
|
90,116 |
|
|
60,327 |
|
|
Income tax
provision |
$ |
|
|
$ |
|
|
10
Item 2. |
Managements Discussion and Analysis of
Financial Condition and Results of Operations |
Managements Discussion and Analysis of Financial Condition and
Results of Operations (MD&A) is intended to provide readers of our
financial statements with a narrative from the perspective of our management on
our financial condition, results of operations, liquidity, and certain other
factors that may affect our future results. Our MD&A is presented in the
following sections:
- Executive Summary
- Results of Operations
- Liquidity and Capital Resources
- Recent Accounting Pronouncements
- Forward-Looking Statements.
Our MD&A should be read in conjunction with our unaudited
financial statements of Park Place Energy Corp. ("Park Place", Company", we,
and "our") and related Notes in Part I, Item 1 of the Quarterly Report on Form
10-Q and Item 8, Financial Statements and Supplementary Data, of the Annual
Report on Form 10-K for the year ended December 31, 2014.
Our website can be found at www.parkplaceenergy.com. Our Annual
Reports on Form 10-K, Quarterly Reports on Form 10-Q, Current Reports on Form
8-K and amendments to those reports filed with or furnished to the U.S.
Securities and Exchange Commission ("SEC"), pursuant to Section 13(a) or 15(d)
of the Securities Exchange Act of 1934 ("Exchange Act"), can be accessed free of
charge by linking directly from our website under the "Investor Relations - SEC
Filings" caption to the SEC's Edgar Database.
Executive Summary
Park Place is an energy company engaged in oil and gas
exploration in Bulgaria.
The Company holds a 98,205 acre oil and gas exploration permit
in the Dobrudja Basin located in northeast Bulgaria. The Company intends to
conduct exploration for natural gas and test production activities over a five
year period in accordance with or exceeding its minimum work program obligation,
which includes five wells, and additional testing and work.
On August 26, 2014, the Bulgarian environmental agency approved
the Companys overall work program and first year annual work program. A number
of parties appealed the decision of the environmental agency. An appeals
proceeding has been commenced before an administrative judge panel with an
initial hearing scheduled for May 20, 2015. The Company is participating in that
proceeding as an interested party. The initial term of the License Agreement
will not begin until (i) the appeals proceeding has been completed and the
decision upheld, and (ii) the Ministry of Economy and Energy has approved the
Companys overall work program and first year annual work program. The Company
will continue its data gathering, evaluation and planning during this period.
Results of Operations
The following summary of our results of operations should be
read in conjunction with our unaudited consolidated financial statements for the
quarters ended March 31, 2015 and 2014, which are included herein.
Revenue
We are a pre-revenue stage company, and our future revenues
depend upon successful exploration of oil and gas assets.
Expenses
Our general and administrative expenses increased to $216,431
for the three months ended March 31, 2015 from $173,685 for the three months
ended March 31, 2014. Our overhead increased due to the retention of more
consultants and increased general activity of the Company over the last year.
11
Other Expense
For the three months ended March 31, 2015, other expense was a
loss of $49,089 attributable to foreign exchange loss. For the three months
ended March 31, 2014, other expense was a loss of $3,746 due to a foreign
exchange loss.
Loss
Our net loss for the three months ended March 31, 2015 was
$265,520 compared to a loss of $177,431 for the three months ended March 31,
2014. The increase in net loss was a result of the increase in expenses
described above.
Liquidity and Capital Resources
The following table summarizes our liquidity position:
|
|
March 31, 2015 |
|
|
December 31, |
|
|
|
(Unaudited) |
|
|
2014 |
|
Cash |
$ |
1,131,725 |
|
$ |
1,539,439 |
|
Working capital |
|
917,098 |
|
|
1,288,877 |
|
Total assets |
|
3,547,097 |
|
|
3,753,896 |
|
Total liabilities |
|
231,365 |
|
|
268,862 |
|
Shareholders equity |
|
3,315,732 |
|
|
3,485,034 |
|
Cash Used in Operating Activities
We used net cash of $310,758 in operating activities for the
three months ended March 31, 2015 compared to $141,121 for the three months
ended March 31, 2014 primarily due increased activities relating to the appeals
of the work programs in Bulgaria for the three months ended March 31, 2015.
Cash Flow from Investing Activities
Net cash used in investing activities for the three months
ended March 31, 2015 was $97,599 compared to net cash use of $155,448 for the
three months ended March 31, 2014. This decrease was due to decreased
expenditures on the Bulgarian project.
Cash Provided By Financing Activities
We have funded our business to date primarily from sales of our
common stock through private placements. We did not have any common stock sales
during the first quarter of 2015. For the three months ended March 31, 2014,
cash provided by financing activities was $742,500.
Future Operating Requirements
Based on our current plan of operations, we estimate that we
will require approximately $990,000 to pursue our plan of operations for the
remainder of 2015.
Off-Balance Sheet Arrangements
We have no off-balance sheet arrangements.
Contractual Obligations
See Executive Summary section above for information about the
Companys contractual obligations.
Recent Accounting Pronouncements
See Note 1 of the Consolidated Financial Statements for
information about recent accounting pronouncements.
12
Forward-Looking Information
Certain statements in this Quarterly Report on Form 10-Q
constitute forward-looking statements within the meaning of applicable U.S.
securities legislation. Additionally, forward-looking statements may be made
orally or in press releases, conferences, reports, on our website or otherwise,
in the future, by us or on our behalf. Such statements are generally
identifiable by the terminology used such as plans, expects, estimates,
budgets, intends, anticipates, believes, projects, indicates,
targets, objective, could, should, may or other similar words.
By their very nature, forward-looking statements require us to
make assumptions that may not materialize or that may not be accurate.
Forward-looking statements are subject to known and unknown risks and
uncertainties and other factors that may cause actual results, levels of
activity and achievements to differ materially from those expressed or implied
by such statements, including the factors discussed under Item 1A. Risk Factors
in our most recent Annual Report on Form 10-K. Such factors include, but are not
limited to, the following: fluctuations in and volatility of the market prices
for oil and natural gas products; the ability to produce and transport oil and
natural gas; the results of exploration and development drilling and related
activities; global economic conditions, particularly in the countries in which
we carry on business, especially economic slowdowns; actions by governmental
authorities including increases in taxes, legislative and regulatory initiatives
related to fracture stimulation activities, changes in environmental and other
regulations, and renegotiations of contracts; political uncertainty, including
actions by insurgent groups or other conflicts; the negotiation and closing of
material contracts; future capital requirements and the availability of
financing; estimates and economic assumptions used in connection with our
acquisitions; risks associated with drilling, operating and decommissioning
wells; actions of third-party co-owners of interests in properties in which we
also own an interest; our ability to effectively integrate companies and
properties that we acquire; our limited operating history; our history of
operating losses; our lack of insurance coverage; and the other factors
discussed in other documents that we file with or furnish to the U.S. Securities
and Exchange Commission. The impact of any one factor on a particular
forward-looking statement is not determinable with certainty as such factors are
interdependent upon other factors and our course of action would depend upon our
assessment of the future, considering all information then available. In that
regard, any statements as to: future oil or natural gas production levels;
capital expenditures; the allocation of capital expenditures to exploration and
development activities; sources of funding for our capital expenditure programs;
drilling of new wells; demand for oil and natural gas products; expenditures and
allowances relating to environmental matters; dates by which certain areas will
be developed or will come on-stream; expected finding and development costs;
future production rates; ultimate recoverability of reserves, including the
ability to convert probable and possible reserves to proved reserves; dates by
which transactions are expected to close; future cash flows, uses of cash flows,
collectability of receivables and availability of trade credit; expected
operating costs; changes in any of the foregoing and other statements using
forward-looking terminology are forward-looking statements, and there can be no
assurance that the expectations conveyed by such forward-looking statements
will, in fact, be realized.
Although we believe that the expectations conveyed by the
forward-looking statements are reasonable based on information available to us
on the date such forward-looking statements were made, no assurances can be
given as to future results, levels of activity, achievements or financial
condition.
Readers should not place undue reliance on any forward-looking
statement and should recognize that the statements are predictions of future
results, which may not occur as anticipated. Actual results could differ
materially from those anticipated in the forward-looking statements and from
historical results, due to the risks and uncertainties described above, as well
as others not now anticipated. The foregoing statements are not exclusive and
further information concerning us, including factors that potentially could
materially affect our financial results, may emerge from time to time. We do not
intend to update forward-looking statements to reflect actual results or changes
in factors or assumptions affecting such forward-looking statements.
Item 3. |
Quantitative and Qualitative Disclosures
About Market Risk |
Not applicable because we are a smaller reporting company.
Item 4. |
Controls and Procedures
|
Evaluation of Disclosure of Controls and Procedures
We carried out an evaluation of the effectiveness of our
disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e)
and 15d-15(e)) as of March 31, 2015 (the Evaluation Date). This evaluation was
carried out under the supervision and with the participation of our Chief
Executive Officer and Chief Financial Officer. Based upon that evaluation, we
concluded that our disclosure controls and procedures were effective.
13
We believe that our consolidated financial statements contained
in our Quarterly Report on Form 10-Q for the quarter ended March 31, 2015 fairly
present our financial condition, results of operations and cash flows in all
material respects.
Changes in Internal Control over Financial Reporting
There were no changes in our internal control over financial
reporting that occurred during our last fiscal quarter that have materially
affected, or are reasonably likely to materially affect, our internal control
over financial reporting.
PART II OTHER INFORMATION
Item 1. |
Legal Proceedings |
We are not currently involved in any legal proceedings and we
are unaware of any pending proceedings, except that the Company is a participant
as an interested party in opposition to the appeals that have been filed in
Bulgaria against the Bulgarian environmental agency that approved the Companys
overall work program and first year annual work program.
Not applicable because we are a smaller reporting company. See
risk factors described in Item 1A of the Companys most recent Annual Report on
Form 10-K.
Item 2. |
Unregistered Sales of Equity
Securities and Use of Proceeds |
|
|
None. |
|
|
|
Item 3. |
Defaults Upon Senior Securities |
|
|
None. |
|
|
|
Item 4. |
Mining Safety Disclosures |
|
|
Not applicable. |
|
|
|
Item 5. |
Other Information |
|
|
None |
|
14
15
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of
1934, the registrant has duly caused this report to be signed on its behalf by
the undersigned, thereunto duly authorized.
PARK PLACE ENERGY CORP.
By: |
/s/ Scott C. Larsen
|
|
Scott C. Larsen |
|
President and CEO (Principal Executive Officer)
|
|
Date: May 13, 2015 |
|
|
|
|
By: |
/s/ Charles Michel
|
|
Charles Michel |
|
Chief Financial Officer (Principal Financial
Officer) |
|
Date: May 13, 2015
|
16
Exhibit 31.1
CERTIFICATION
I, Charles Michel, certify that:
1. |
I have reviewed this report on Form 10-Q for the
quarterly period ended March 31, 2015 of Park Place Energy
Corp.; |
|
|
|
2. |
Based on my knowledge, this report does not contain any
untrue statement of a material fact or omit to state a material fact
necessary to make the statements made, in light of the circumstances under
which such statements were made, not misleading with respect to the period
covered by this report; |
|
|
|
3. |
Based on my knowledge, the financial statements, and
other financial information included in this report, fairly present in all
material respects the financial condition, results of operations and cash
flows of the registrant as of, and for, the periods presented in this
report; |
|
|
|
4. |
The registrants other certifying officer(s) and I are
responsible for establishing and maintaining disclosure controls and
procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and
internal control over financial reporting (as defined in Exchange Act
Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
|
|
|
|
(a) |
Designed such disclosure controls and procedures, or
caused such disclosure controls and procedures to be designed under our
supervision, to ensure that material information relating to the
registrant, including its consolidated subsidiaries, is made known to us
by others within those entities, particularly during the period in which
this report is being prepared; |
|
|
|
|
(b) |
Designed such internal control over financial reporting,
or caused such internal control over financial reporting to be designed
under our supervision, to provide reasonable assurance regarding the
reliability of financial reporting and the preparation of financial
statements for external purposes in accordance with generally accepted
accounting principles; |
|
|
|
|
(c) |
Evaluated the effectiveness of the registrants
disclosure controls and procedures and presented in this report our
conclusions about the effectiveness of the disclosure controls and
procedures, as of the end of the period covered by this report based on
such evaluation; and |
|
|
|
|
(d) |
Disclosed in this report any change in the registrants
internal control over financial reporting that occurred during the
registrants most recent fiscal quarter (the registrants fourth fiscal
quarter in the case of an annual report) that has materially affected, or
is reasonably likely to materially affect, the registrants internal
control over financial reporting; and |
|
|
|
5. |
The registrants other certifying officer(s) and I have
disclosed, based on our most recent evaluation of the internal control
over financial reporting, to the registrants auditors and the audit
committee of the registrants board of directors (or persons performing
the equivalent functions): |
|
|
|
|
(a) |
all significant deficiencies and material weaknesses in
the design or operation of internal control over financial reporting which
are reasonably likely to adversely affect the registrants ability to
record, process, summarize and report financial information; and |
|
|
|
|
(b) |
any fraud, whether or not material, that involves
management or other employees who have a significant role in the
registrants internal control over financial
reporting. |
Date: May 13, 2015
Charles Michel |
By: |
Charles Michel |
Title: |
Chief Financial Officer |
|
(Principal Financial Officer)
|
Exhibit 31.2
CERTIFICATION
I, Scott C. Larsen, certify that:
1. |
I have reviewed this report on Form 10-Q for the
quarterly period ended March 31, 2015 of Park Place Energy
Corp.; |
|
|
|
2. |
Based on my knowledge, this report does not contain any
untrue statement of a material fact or omit to state a material fact
necessary to make the statements made, in light of the circumstances under
which such statements were made, not misleading with respect to the period
covered by this report; |
|
|
|
3. |
Based on my knowledge, the financial statements, and
other financial information included in this report, fairly present in all
material respects the financial condition, results of operations and cash
flows of the registrant as of, and for, the periods presented in this
report; |
|
|
|
4. |
The registrants other certifying officer(s) and I are
responsible for establishing and maintaining disclosure controls and
procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and
internal control over financial reporting (as defined in Exchange Act
Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
|
|
|
|
(a) |
Designed such disclosure controls and procedures, or
caused such disclosure controls and procedures to be designed under our
supervision, to ensure that material information relating to the
registrant, including its consolidated subsidiaries, is made known to us
by others within those entities, particularly during the period in which
this report is being prepared; |
|
|
|
|
(b) |
Designed such internal control over financial reporting,
or caused such internal control over financial reporting to be designed
under our supervision, to provide reasonable assurance regarding the
reliability of financial reporting and the preparation of financial
statements for external purposes in accordance with generally accepted
accounting principles; |
|
|
|
|
(c) |
Evaluated the effectiveness of the registrants
disclosure controls and procedures and presented in this report our
conclusions about the effectiveness of the disclosure controls and
procedures, as of the end of the period covered by this report based on
such evaluation; and |
|
|
|
|
(d) |
Disclosed in this report any change in the registrants
internal control over financial reporting that occurred during the
registrants most recent fiscal quarter (the registrants fourth fiscal
quarter in the case of an annual report) that has materially affected, or
is reasonably likely to materially affect, the registrants internal
control over financial reporting; and |
|
|
|
5. |
The registrants other certifying officer(s) and I have
disclosed, based on our most recent evaluation of the internal control
over financial reporting, to the registrants auditors and the audit
committee of the registrants board of directors (or persons performing
the equivalent functions): |
|
|
|
|
(a) |
all significant deficiencies and material weaknesses in
the design or operation of internal control over financial reporting which
are reasonably likely to adversely affect the registrants ability to
record, process, summarize and report financial information; and |
|
|
|
|
(b) |
any fraud, whether or not material, that involves
management or other employees who have a significant role in the
registrants internal control over financial
reporting. |
Date: May 13, 2015
Scott C. Larsen |
By: |
Scott C. Larsen |
Title: |
Chief Executive Officer |
|
(Principal Executive Officer)
|
Exhibit 32.1
CERTIFICATION OF CHIEF EXECUTIVE OFFICER AND PRINCIPAL
FINANCIAL OFFICER |
|
PURSUANT TO 18 U.S.C. SECTION 1350, |
AS ADOPTED PURSUANT TO |
SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002
|
The undersigned, Scott C. Larsen, President and Chief Executive
Officer and Charles Michel, the Chief Financial Officer, of Park Place Energy
Corp. (the Company), hereby certify, pursuant to 18 U.S.C. Section 1350, as
adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that, to
their knowledge, the Quarterly Report on Form 10-Q for the period ended March
31, 2015, fully complies with the requirements of Section 13(a) or 15(d) of the
Securities Exchange Act of 1934, as amended, and that the information contained
in the Quarterly Report on Form 10-Q, as amended, fairly presents in all
material respects the financial condition and results of operations of the
Company.
|
/s/ Scott C. Larsen
|
|
Scott C. Larsen |
|
President and CEO (Principal Executive Officer)
|
|
Date: May 13, 2015 |
|
|
|
|
|
|
|
/s/Charles Michel |
|
Charles Michel |
|
Chief Financial Officer (Principal Financial
Officer) |
|
Date: May 13, 2015 |
A signed original of this written statement required by Section
906, or other document authenticating, acknowledging, or otherwise adopting the
signatures that appear in typed form within the electronic version of this
written statement required by Section 906, has been provided to Park Place
Energy Corp. and will be retained by Park Place Energy Corp. and furnished to
the Securities and Exchange Commission or its staff upon request.
__________