material events operations : in july 2011 , pan american oil company , llc ( “ pan american ” ) entered into a preliminary purchase and sale agreement with rio bravo oil , llc in which pan american agreed to purchase all of rio bravo oil llc 's right , title and interest in its approximate 27 % working interest and 23 % net revenue interest in certain leaseholds in the luling-edwards field . the purchase price was approximately $ 1.5 million in cash with a requirement to close on or before november 30 , 2011. the agreement was subsequently modified to include rio bravo 's approximate 3.345 % working interest and 12.5 % net revenue interest ( after overrides ) in certain leaseholds in the bateman field and the purchase price was increased to include approximately an additional $ 1.7 million in cash with the acquisition date extended until pan american was able to arrange funding . in february 2012 the agreement was modified again such that the assets included in the amended purchase and sale agreement included the original luling-edwards field leaseholds and an option to purchase the bateman field leaseholds . this transaction closed on february 13 , 2012. in november 2011 , pan american oil company , llc entered into two separate purchase and sale agreements with entities that were sold partial interests in the luling-edwards field by rio bravo oil , llc in march 2010. the agreements called for pan american to purchase approximately 20.75 % net revenue interest and 30 % working interest in the leaseholds in the luling-edwards field and had a combined purchase price of $ 300,000 in cash and the requirement of pan american to deliver $ 500,000 worth of the shares of preferred stock pan american receives in connection with a sale of its interests to a public company . on february 13 , 2012 , the company entered into a share exchange agreement with pan american . pursuant to the agreement , pan american exchanged its outstanding membership interests for 5,500,000 shares of rio bravo 's series a preferred stock and the assumption of approximately $ 3.3 million of liabilities . in june 2012 , the company consummated two transactions to acquire additional leasehold rights to acreage in guadeloupe and caldwell counties , texas . in the first agreement , the company entered into a purchase and sale agreement with numa luling , llc in which the company acquired all of numa luling , llc 's right , title and interest ( 25 % working interest and 25 % net revenue interest , subject to 25 % orri ) in leasehold rights to the same formation , the edwards formation , held by the company . the purchase price for the acquisition of interests held by numa luling , llc was 3,250,000 shares of series b preferred stock , which the company valued at $ 3.466 million . the second acquisition was an asset purchase agreement with eagle ford oil co , inc. in which the company acquired 80 % of the leasehold interests held by eagle ford oil co , inc .. the leaseholds acquired are for depths other than the edwards formation on the same acreage as the leaseholds owned by the company . as part of the agreement , the company agreed to carry the remaining 20 % interest for drilling and swabbing operations , but not for leasehold operating expenses . the purchase price was payment of approximately $ 2 million in cash plus a note in the amount of $ 225,000 plus the assumption of certain payment obligations to the bankruptcy estate of the previous owner of the leasehold rights . the payment of one obligation calls for the company to pay to the bankruptcy estate $ 5,000 per well drilled to a maximum of 200 wells and if that total is not met a balloon payment is due on march 16 , 2016 for the difference between $ 1 million and the per well amount funded through march 16 , 2016. in 2012 , the third party operator for the company 's leasehold interests commenced several drilling and work-over programs targeting three different depths within the buda and edwards formations . the first program started by the third party operator was an attempt to test for recompleting the wells drilled in the 2010 drilling program that were all dry holes that were acquired by the company with their purchase of pan american oil co , llc and numa luling , llc . during 2012 the company began recomplete work on the # 1h and the # 3h wells . as of december 31 , 2012 , the company had incurred drilling costs of approximately $ 232,000 in regards to this first program . the # 1h well is still being tested , while the # 3h well will go into production after proper pump size has been determined . the company expects to be able to report production test results in the second quarter of 2013 . 17 the second program started was a small workover program covering 4 previously inactive wells in the austin chalk formation that were acquired in the purchase of the leasehold interest acquired from eagle ford oil co. inc. during 2012 the company incurred work-over costs of approximately $ 98,000. the third drilling program was the drilling of a new horizontal well nearby to the wells drilled in the 2010 drilling program noted above , the tiller # 4h well . story_separator_special_tag therefore we are providing certain additional information in our financial statements regarding the predecessor businesses for periods prior to february 14 , 2012. amounts labeled as “ predecessor business ” represent operations that were not owned by us during the time period presented in our financial statements - some of which was under a different cost basis or fair value than how we reflect them after we acquired pan american . pan american oil company , llc , is considered a predecessor . also , pan american oil company , llc purchased certain oil and gas leasehold interests from rio bravo oil , llc on february 13 , 2012 prior to being acquired by the company and therefore those leasehold interests are also considered a predecessor . collectively , pan american oil company , llc and the leasehold interests acquired from rio bravo oil , llc is referred to as the “ predecessor business ” this financial information ( for which intercompany transactions between the predecessors have been eliminated ) for the period prior to february 14 , 2012 is labeled “ predecessor business ” and the company has placed a heavy black line between it and the company 's ( also referred to as the successor ) information to differentiate it from the company 's financial information . 22 comparison of the year ended december 31 , 2012 to the year ended december 31 , 2011 our operating results are not comparable to the prior period for the following reasons : · we changed our fiscal year from september 30 to december 31. consequently , the financial statements for the company included in this annual report are as of and for the year ending december 31 , 2012 , as of and for the three month transition period ending december 31 , 2011 and as of and for the fiscal years ending september 30 , 2011. below we have provided a comparison of company financial information for the year ended december 31 , 2012 ( derived from our audited financial statements ) to the year ended december 31 , 2011 ( derived from unaudited financial information ) . “ predecessor business ” information is not included in this comparison . · in the prior period we were engaged in a different business , with a completely different ownership and management . · in february 2012 we consummated an acquisition of pan american where we acquired leasehold interests and are now focused on the oil and gas industry . in june 2012 , the company consummated two transactions to acquire additional leasehold rights as described elsewhere in this document . this annual report should be read in conjunction with both the financial statements and the notes thereto for pan american oil company , llc and properties acquired from rio bravo oil , llc on february 13 , 2012 , included in the company 's 2 nd amendment to form 8 k/a - event reporting that it filed with the sec on may 11 , 2012 and the amendment to form 8 k/a – event reporting dated august 20 , 2012 which presents the financial statements of the entities acquired in the second quarter of 2012. comparison of the year ended december 31 , 2012 to december 31 , 2011 ( unaudited ) in february 2012 , we entered the oil and gas exploration and development industry upon our acquisition of pan american oil company , llc , which has leasehold interests in approximately 4500 gross acres in the edwards formation in caldwell and guadeloupe counties in texas . for the year ended december 31 , 2012 our net loss from operations increased by approximately $ 2,834,748 to $ 2,886,616 from $ 51,868 for the year ended december 31 , 2011. the increased loss can be attributed to the following : in the year ended december 31 , 2012 we had revenues of approximately $ 101,556 which are attributable to our acquisition of leasehold rights from eagle ford oil co , inc. we had no revenues prior to the acquisition of leasehold rights from eagle ford oil co , inc. in 2012. our leasehold operating costs , increased to $ 799,386 in the year ended december 31 , 2012 from nil in the year ended december 31 , 2011. the increase is attributable to the acquisitions we made in 2012. in the year ended december 31 , 2012 , our general and administrative expenses increased by approximately $ 766,149 to $ 817,872 from $ 51,723 in the year ended december 31 , 2011. the increase was due to our requirements to provide for oversight and management of the properties acquired from pan american oil company , llc , the leasehold rights from numa luling , llc and the leasehold rights from eagle ford oil co , inc. we expect to increase our general and administrative expenses in future periods as we hire additional staff and develop our business . in the year ended december 31 , 2012 , our professional fee expenses increased to $ 1,273,430 from nil in the year ended december 31 , 2011. the increase was due to our increased regulatory requirements as a public company and also for our oversight and administration of our acquired properties from pan american oil company , llc , the leasehold rights from numa luling , llc and the leasehold rights from eagle ford oil co , inc. as we have chosen to operate using consultants instead of full time employees . going forward through the fiscal year 2013 , we expect our professional fees to remain at elevated levels as we expect to acquire additional companies and will need to continue to expend resources in regards to our regulatory filing commitments as a public entity . 23 depletion , depreciation and amortization expense increased in the year ended december 31 , 2012 to $ 97,484 from nil for the year ended december 31 , 2011. the increase resulted from our acquisition

debt : on december 22 , 2011 , the company issued an unsecured promissory note in the amount of $ 200,000 to michael j. garnick , a stockholder . the promissory note accrued interest at 10 % per annum and was due on february 15 , 2012. as a condition for issuing the promissory note , the company was obligated to issue 90,000 shares of its common stock to michael j. garnick . the note was repaid in full in march 2012. in connection with the acquisition of pan american , the company acquired certain advances payable and short term bridge notes in the principal amount of $ 1,900,000 from two unaffiliated entities . of the $ 1,900,000 borrowed , $ 600,000 was evidenced by an unsecured promissory note , had an interest rate of 10 % per annum and was repaid march 2012. the remaining $ 1,300,000 borrowed was evidenced by a series of loan agreements all with essentially the same terms ; interest at the rate of 6 % per annum , unsecured , and due on the earlier of december 31 , 2012 or upon demand . as of december 31 , 2012 , $ 350,000 was due on this loan . the company is currently in negotiations with the lender to extend the maturity date of the loan and expects to complete the extension in the second quarter of 2013. in 2011 , pan american was advanced approximately $ 90,000 by a then related party . the advance is non-interest bearing , is unsecured and due on demand and as of december 31 , 2012 the balance the company owed is $ 90,704 . 18 on february 24 , 2012 , the company received gross proceeds of $ 2.5 million from the sale of two promissory notes to two unrelated entities . the notes mature on december 31 , 2014 , bear interest at the rate of 8 % per annum , are unsecured and are convertible into up to 2.5 million shares of the company 's common stock , subject to certain adjustments , at the option of the holders .


 Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text.
     ```debt : on december 22 , 2011 , the company issued an unsecured promissory note in the amount of $ 200,000 to michael j. garnick , a stockholder . the promissory note accrued interest at 10 % per annum and was due on february 15 , 2012. as a condition for issuing the promissory note , the company was obligated to issue 90,000 shares of its common stock to michael j. garnick . the note was repaid in full in march 2012. in connection with the acquisition of pan american , the company acquired certain advances payable and short term bridge notes in the principal amount of $ 1,900,000 from two unaffiliated entities . of the $ 1,900,000 borrowed , $ 600,000 was evidenced by an unsecured promissory note , had an interest rate of 10 % per annum and was repaid march 2012. the remaining $ 1,300,000 borrowed was evidenced by a series of loan agreements all with essentially the same terms ; interest at the rate of 6 % per annum , unsecured , and due on the earlier of december 31 , 2012 or upon demand . as of december 31 , 2012 , $ 350,000 was due on this loan . the company is currently in negotiations with the lender to extend the maturity date of the loan and expects to complete the extension in the second quarter of 2013. in 2011 , pan american was advanced approximately $ 90,000 by a then related party . the advance is non-interest bearing , is unsecured and due on demand and as of december 31 , 2012 the balance the company owed is $ 90,704 . 18 on february 24 , 2012 , the company received gross proceeds of $ 2.5 million from the sale of two promissory notes to two unrelated entities . the notes mature on december 31 , 2014 , bear interest at the rate of 8 % per annum , are unsecured and are convertible into up to 2.5 million shares of the company 's common stock , subject to certain adjustments , at the option of the holders .
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 Suspicious Activity Report : material events operations : in july 2011 , pan american oil company , llc ( “ pan american ” ) entered into a preliminary purchase and sale agreement with rio bravo oil , llc in which pan american agreed to purchase all of rio bravo oil llc 's right , title and interest in its approximate 27 % working interest and 23 % net revenue interest in certain leaseholds in the luling-edwards field . the purchase price was approximately $ 1.5 million in cash with a requirement to close on or before november 30 , 2011. the agreement was subsequently modified to include rio bravo 's approximate 3.345 % working interest and 12.5 % net revenue interest ( after overrides ) in certain leaseholds in the bateman field and the purchase price was increased to include approximately an additional $ 1.7 million in cash with the acquisition date extended until pan american was able to arrange funding . in february 2012 the agreement was modified again such that the assets included in the amended purchase and sale agreement included the original luling-edwards field leaseholds and an option to purchase the bateman field leaseholds . this transaction closed on february 13 , 2012. in november 2011 , pan american oil company , llc entered into two separate purchase and sale agreements with entities that were sold partial interests in the luling-edwards field by rio bravo oil , llc in march 2010. the agreements called for pan american to purchase approximately 20.75 % net revenue interest and 30 % working interest in the leaseholds in the luling-edwards field and had a combined purchase price of $ 300,000 in cash and the requirement of pan american to deliver $ 500,000 worth of the shares of preferred stock pan american receives in connection with a sale of its interests to a public company . on february 13 , 2012 , the company entered into a share exchange agreement with pan american . pursuant to the agreement , pan american exchanged its outstanding membership interests for 5,500,000 shares of rio bravo 's series a preferred stock and the assumption of approximately $ 3.3 million of liabilities . in june 2012 , the company consummated two transactions to acquire additional leasehold rights to acreage in guadeloupe and caldwell counties , texas . in the first agreement , the company entered into a purchase and sale agreement with numa luling , llc in which the company acquired all of numa luling , llc 's right , title and interest ( 25 % working interest and 25 % net revenue interest , subject to 25 % orri ) in leasehold rights to the same formation , the edwards formation , held by the company . the purchase price for the acquisition of interests held by numa luling , llc was 3,250,000 shares of series b preferred stock , which the company valued at $ 3.466 million . the second acquisition was an asset purchase agreement with eagle ford oil co , inc. in which the company acquired 80 % of the leasehold interests held by eagle ford oil co , inc .. the leaseholds acquired are for depths other than the edwards formation on the same acreage as the leaseholds owned by the company . as part of the agreement , the company agreed to carry the remaining 20 % interest for drilling and swabbing operations , but not for leasehold operating expenses . the purchase price was payment of approximately $ 2 million in cash plus a note in the amount of $ 225,000 plus the assumption of certain payment obligations to the bankruptcy estate of the previous owner of the leasehold rights . the payment of one obligation calls for the company to pay to the bankruptcy estate $ 5,000 per well drilled to a maximum of 200 wells and if that total is not met a balloon payment is due on march 16 , 2016 for the difference between $ 1 million and the per well amount funded through march 16 , 2016. in 2012 , the third party operator for the company 's leasehold interests commenced several drilling and work-over programs targeting three different depths within the buda and edwards formations . the first program started by the third party operator was an attempt to test for recompleting the wells drilled in the 2010 drilling program that were all dry holes that were acquired by the company with their purchase of pan american oil co , llc and numa luling , llc . during 2012 the company began recomplete work on the # 1h and the # 3h wells . as of december 31 , 2012 , the company had incurred drilling costs of approximately $ 232,000 in regards to this first program . the # 1h well is still being tested , while the # 3h well will go into production after proper pump size has been determined . the company expects to be able to report production test results in the second quarter of 2013 . 17 the second program started was a small workover program covering 4 previously inactive wells in the austin chalk formation that were acquired in the purchase of the leasehold interest acquired from eagle ford oil co. inc. during 2012 the company incurred work-over costs of approximately $ 98,000. the third drilling program was the drilling of a new horizontal well nearby to the wells drilled in the 2010 drilling program noted above , the tiller # 4h well . story_separator_special_tag therefore we are providing certain additional information in our financial statements regarding the predecessor businesses for periods prior to february 14 , 2012. amounts labeled as “ predecessor business ” represent operations that were not owned by us during the time period presented in our financial statements - some of which was under a different cost basis or fair value than how we reflect them after we acquired pan american . pan american oil company , llc , is considered a predecessor . also , pan american oil company , llc purchased certain oil and gas leasehold interests from rio bravo oil , llc on february 13 , 2012 prior to being acquired by the company and therefore those leasehold interests are also considered a predecessor . collectively , pan american oil company , llc and the leasehold interests acquired from rio bravo oil , llc is referred to as the “ predecessor business ” this financial information ( for which intercompany transactions between the predecessors have been eliminated ) for the period prior to february 14 , 2012 is labeled “ predecessor business ” and the company has placed a heavy black line between it and the company 's ( also referred to as the successor ) information to differentiate it from the company 's financial information . 22 comparison of the year ended december 31 , 2012 to the year ended december 31 , 2011 our operating results are not comparable to the prior period for the following reasons : · we changed our fiscal year from september 30 to december 31. consequently , the financial statements for the company included in this annual report are as of and for the year ending december 31 , 2012 , as of and for the three month transition period ending december 31 , 2011 and as of and for the fiscal years ending september 30 , 2011. below we have provided a comparison of company financial information for the year ended december 31 , 2012 ( derived from our audited financial statements ) to the year ended december 31 , 2011 ( derived from unaudited financial information ) . “ predecessor business ” information is not included in this comparison . · in the prior period we were engaged in a different business , with a completely different ownership and management . · in february 2012 we consummated an acquisition of pan american where we acquired leasehold interests and are now focused on the oil and gas industry . in june 2012 , the company consummated two transactions to acquire additional leasehold rights as described elsewhere in this document . this annual report should be read in conjunction with both the financial statements and the notes thereto for pan american oil company , llc and properties acquired from rio bravo oil , llc on february 13 , 2012 , included in the company 's 2 nd amendment to form 8 k/a - event reporting that it filed with the sec on may 11 , 2012 and the amendment to form 8 k/a – event reporting dated august 20 , 2012 which presents the financial statements of the entities acquired in the second quarter of 2012. comparison of the year ended december 31 , 2012 to december 31 , 2011 ( unaudited ) in february 2012 , we entered the oil and gas exploration and development industry upon our acquisition of pan american oil company , llc , which has leasehold interests in approximately 4500 gross acres in the edwards formation in caldwell and guadeloupe counties in texas . for the year ended december 31 , 2012 our net loss from operations increased by approximately $ 2,834,748 to $ 2,886,616 from $ 51,868 for the year ended december 31 , 2011. the increased loss can be attributed to the following : in the year ended december 31 , 2012 we had revenues of approximately $ 101,556 which are attributable to our acquisition of leasehold rights from eagle ford oil co , inc. we had no revenues prior to the acquisition of leasehold rights from eagle ford oil co , inc. in 2012. our leasehold operating costs , increased to $ 799,386 in the year ended december 31 , 2012 from nil in the year ended december 31 , 2011. the increase is attributable to the acquisitions we made in 2012. in the year ended december 31 , 2012 , our general and administrative expenses increased by approximately $ 766,149 to $ 817,872 from $ 51,723 in the year ended december 31 , 2011. the increase was due to our requirements to provide for oversight and management of the properties acquired from pan american oil company , llc , the leasehold rights from numa luling , llc and the leasehold rights from eagle ford oil co , inc. we expect to increase our general and administrative expenses in future periods as we hire additional staff and develop our business . in the year ended december 31 , 2012 , our professional fee expenses increased to $ 1,273,430 from nil in the year ended december 31 , 2011. the increase was due to our increased regulatory requirements as a public company and also for our oversight and administration of our acquired properties from pan american oil company , llc , the leasehold rights from numa luling , llc and the leasehold rights from eagle ford oil co , inc. as we have chosen to operate using consultants instead of full time employees . going forward through the fiscal year 2013 , we expect our professional fees to remain at elevated levels as we expect to acquire additional companies and will need to continue to expend resources in regards to our regulatory filing commitments as a public entity . 23 depletion , depreciation and amortization expense increased in the year ended december 31 , 2012 to $ 97,484 from nil for the year ended december 31 , 2011. the increase resulted from our acquisition

