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<P STYLE="font: 12pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">UNITED
STATES</FONT></P>

<P STYLE="font: 12pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">SECURITIES
AND EXCHANGE COMMISSION</FONT></P>

<P STYLE="font: 12pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Washington,
D.C. 20549</FONT></P>

<P STYLE="font: 12pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 12pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">FORM
8-K</FONT></P>

<P STYLE="font: 12pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">CURRENT
REPORT</FONT></P>

<P STYLE="font: 12pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 12pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Pursuant
to Section 13 or 15(d) of the Securities Exchange Act of 1934</FONT></P>

<P STYLE="font: 12pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 12pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Date
of Report: October 3, 2013</FONT></P>

<P STYLE="font: 12pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center">&nbsp;</P>

<P STYLE="font: 12pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center"><B>RANCHER ENERGY CORP.</B></P>

<P STYLE="font: 12pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center">(Exact name of registrant as specified
in its charter)</P>

<P STYLE="font: 12pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center">&nbsp;</P>

<P STYLE="font: 12pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center"></P>

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    <TD STYLE="width: 33%; text-align: center"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>&#9;Nevada</B></FONT></TD>
    <TD STYLE="width: 34%; text-align: center"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>000-51425</B></FONT></TD>
    <TD STYLE="width: 33%; text-align: center"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>98-0422451</B></FONT></TD></TR>
<TR STYLE="vertical-align: top; text-align: left">
    <TD STYLE="text-align: center"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">(State or other jurisdiction of&#9;</FONT></TD>
    <TD STYLE="text-align: center"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">(Commission File&#9;</FONT></TD>
    <TD STYLE="text-align: center"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">(IRS Employer Identification</FONT></TD></TR>
<TR STYLE="vertical-align: top; text-align: left">
    <TD STYLE="text-align: center"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">of incorporation)</FONT></TD>
    <TD STYLE="text-align: center"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Number)</FONT></TD>
    <TD STYLE="text-align: center"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&#9;Number)</FONT></TD></TR>
</TABLE>

<P STYLE="font: 12pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center"></P>

<P STYLE="font: 12pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center">&nbsp;</P>

<P STYLE="font: 12pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>P.O.
Box 40, Henderson, Colorado 80640</B></FONT></P>

<P STYLE="font: 12pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">(Address
of Principal Executive Offices) (Zip Code)</FONT></P>

<P STYLE="font: 12pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 12pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>(303)
629-1125</B></FONT></P>

<P STYLE="font: 12pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Registrant's
telephone number, including area code</FONT></P>

<P STYLE="font: 12pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 12pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>Not
Applicable</B></FONT></P>

<P STYLE="font: 12pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">(Former
name or former address, if changed since last report)</FONT></P>

<P STYLE="font: 12pt/normal Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 12pt/normal Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Check
the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant
under any of the following provisions:</FONT></P>

<P STYLE="font: 12pt/normal Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 12pt/normal Times New Roman, Times, Serif; margin: 0 0 0 0.5in; text-indent: -0.5in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">[&nbsp;&nbsp;
]&#9;Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)</FONT></P>

<P STYLE="font: 12pt/normal Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 12pt/normal Times New Roman, Times, Serif; margin: 0 0 0 0.5in; text-indent: -0.5in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">[&nbsp;&nbsp;
] &#9;Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)</FONT></P>

<P STYLE="font: 12pt/normal Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 12pt/normal Times New Roman, Times, Serif; margin: 0 0 0 0.5in; text-indent: -0.5in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">[&nbsp;&nbsp;
]&#9;Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))</FONT></P>

<P STYLE="font: 12pt/normal Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 12pt/normal Times New Roman, Times, Serif; margin: 0 0 0 0.5in; text-indent: -0.5in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">[&nbsp;&nbsp;
]&#9;Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)</FONT></P>

<P STYLE="font: 12pt/normal Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 12pt/normal Times New Roman, Times, Serif; margin: 0; border-bottom: Black 1pt solid">&nbsp;</P>

<P STYLE="font: 12pt/normal Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 12pt/normal Times New Roman, Times, Serif; margin: 0">&nbsp;</P>


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<P STYLE="font: 12pt/115% Times New Roman, Times, Serif; margin: 0 0 10pt">&nbsp;</P>

<P STYLE="font: 12pt/normal Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>SECTION
1 &ndash; REGISTRANT&rsquo;S BUSINESS AND OPERATIONS</B></FONT></P>

<P STYLE="font: 12pt/normal Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 12pt/normal Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>Item
1.01&#9;Entry Into A Material Definitive Agreement</B></FONT></P>

<P STYLE="font: 12pt/normal Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 12pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 45.8pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">On
October 3, 2013 (effective September 30, 2013), Rancher Energy Corp. (&ldquo;Rancher&rdquo;) executed a Participation Agreement
with PetroShare Corp., a privately-held Colorado corporation not affiliated with Rancher (&ldquo;PetroShare&rdquo;), for the purposes
of drilling at least one and up to two oil and/or gas wells to test the Niobrara formation to a depth of approximately 7,850 feet
total vertical depth (TVD) in Moffatt County, Colorado. The following description of the Participation Agreement is qualified
in its entirety by reference to the Participation Agreement which agreement is included herewith as Exhibit 10.1.</FONT></P>

<P STYLE="font: 12pt/normal Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 12pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 45.8pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">On
October 7, 2013, Rancher paid 30% of the costs of drilling the first well (Kowach 3-25) in exchange for a 30% working interest
(25.309% net revenue interest), subject to a reduction of the working interest to 25% (and a proportional reduction of the net
revenue interest) if Rancher and PetroShare do not complete a business combination. Rancher and PetroShare have entered into a
non-binding letter of intent by which the two parties are negotiating and pursuing a business combination. Any business combination
will be subject to approval by Rancher&rsquo;s stockholders and a number of other conditions precedent.</FONT></P>

<P STYLE="font: 12pt/normal Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 12pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 45.8pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">The
estimated cost for drilling the first well is $1,824,460 ($547,338 net to Rancher), and if warranted an additional $471,772 for
completion ($141,517 net to Rancher). Rancher has an option not to participate in the second well, based on the results obtained
from the first well. If Rancher participates in the second well (of which there can be no assurance), the estimated cost for drilling
the second well (Voloshin 3-25) is $1,982,998 ($594,899 net to Rancher), and if warranted an additional $474,247 for completion
($142,274 net to Rancher).</FONT></P>

<P STYLE="font: 12pt/normal Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 12pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 45.8pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">It
is expected that drilling on the first well will commence within the next several weeks. PetroShare will be the operator of the
wells pursuant to a standard AAPL Form 610 operating agreement and exhibits thereto. Two other companies, not affiliated with
either Rancher or PetroShare, are also participating in the proposed drilling operation.</FONT></P>

<P STYLE="font: 12pt/normal Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 12pt/normal Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>SECTION
2 &ndash; FINANCIAL INFORMATION</B></FONT></P>

<P STYLE="font: 12pt/normal Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 12pt/normal Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>Item
2.01&#9;Completion of Acquisition or Disposition of Assets</B></FONT></P>

<P STYLE="font: 12pt/normal Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 12pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 45.8pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Pursuant
to the Participation Agreement described in Item 1.01 above, upon payment, Rancher acquired a 30% working interest in the oil
and gas leases on the property described below in Item 2.01(b). Rancher believes this to be a significant amount of assets acquired
otherwise than in the ordinary course of business.</FONT></P>

<P STYLE="font: 12pt/normal Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 11pt/normal Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 10pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">(a)</FONT></TD><TD><FONT STYLE="font: 10pt Times New Roman, Times, Serif">The
                                                                                                                               asset
                                                                                                                               described
                                                                                                                               above
                                                                                                                               was
                                                                                                                               acquired
                                                                                                                               by
                                                                                                                               Rancher
                                                                                                                               upon
                                                                                                                               Rancher&rsquo;s
                                                                                                                               payment
                                                                                                                               of
                                                                                                                               the
                                                                                                                               costs
                                                                                                                               of
                                                                                                                               drilling
                                                                                                                               the
                                                                                                                               first
                                                                                                                               well
                                                                                                                               under
                                                                                                                               the
                                                                                                                               Participation
                                                                                                                               Agreement
                                                                                                                               on
                                                                                                                               October
                                                                                                                               7,
                                                                                                                               2013.</FONT></TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 11pt/normal Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 10pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">(b)</FONT></TD><TD><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Pursuant
                                                                                                                               to
                                                                                                                               the
                                                                                                                               terms
                                                                                                                               of
                                                                                                                               the
                                                                                                                               Participation
                                                                                                                               Agreement
                                                                                                                               disclosed
                                                                                                                               in
                                                                                                                               Item
                                                                                                                               1.01
                                                                                                                               above,
                                                                                                                               Rancher
                                                                                                                               acquired
                                                                                                                               a
                                                                                                                               30%
                                                                                                                               working
                                                                                                                               interest
                                                                                                                               in
                                                                                                                               the
                                                                                                                               oil
                                                                                                                               and
                                                                                                                               gas
                                                                                                                               leases
                                                                                                                               on
                                                                                                                               the
                                                                                                                               following
                                                                                                                               described
                                                                                                                               property:</FONT></TD></TR></TABLE>

<P STYLE="font: 12pt/normal Times New Roman, Times, Serif; margin: 0 0 10pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 12pt/normal Times New Roman, Times, Serif; margin: 0 0 10pt; border-bottom: Black 1pt solid"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 12pt/normal Times New Roman, Times, Serif; margin: 0 0 10pt 45.8pt"></P>

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<P STYLE="font: 12pt/normal Times New Roman, Times, Serif; margin: 0 0 10pt 45.8pt">&nbsp;&nbsp;</P>

<P STYLE="font: 12pt/normal Times New Roman, Times, Serif; margin: 0 0 10pt 45.8pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Township
6 North, Range 90 West, 6th P.M., Section 25, all of Lot 1 (42.05 acres), Lot 2 (42.05 acres), Lot 3 (42.04 acres), Lot 4 (42.03
acres), Lot 5 (41.98 acres), Lot 6 (41.98 acres), Lot 7 (41.98 acres), Lot 8 (41.98 acres), Lot 9 (41.92 acres), Lot 10 (41.91
acres), Lot 11 (41.91 acres), Lot 12 (41.90 acres), Lot 13 (41.85 acres), Lot 14 (41.85 acres), Lot 15 (41.86 acres), and Lot
16 (41.86 acres), Moffat County, Colorado.</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 11pt/normal Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 10pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">(c)</FONT></TD><TD><FONT STYLE="font: 10pt Times New Roman, Times, Serif">The
                                                                                                                               above-described
                                                                                                                               working
                                                                                                                               interest
                                                                                                                               was
                                                                                                                               acquired
                                                                                                                               from
                                                                                                                               PetroShare
                                                                                                                               Corp.,
                                                                                                                               a
                                                                                                                               non-affiliate
                                                                                                                               of
                                                                                                                               Rancher.
                                                                                                                               Rancher
                                                                                                                               and
                                                                                                                               PetroShare
                                                                                                                               Corp.
                                                                                                                               have
                                                                                                                               no
                                                                                                                               material
                                                                                                                               relationship
                                                                                                                               other
                                                                                                                               than
                                                                                                                               as
                                                                                                                               described
                                                                                                                               above
                                                                                                                               in
                                                                                                                               Item
                                                                                                                               1.01.</FONT></TD></TR></TABLE>

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<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">(d)</FONT></TD><TD><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Rancher
                                                                                                                               will
                                                                                                                               pay
                                                                                                                               30%
                                                                                                                               of
                                                                                                                               the
                                                                                                                               costs
                                                                                                                               of
                                                                                                                               drilling
                                                                                                                               and
                                                                                                                               completion
                                                                                                                               in
                                                                                                                               exchange
                                                                                                                               for
                                                                                                                               a
                                                                                                                               30%
                                                                                                                               working
                                                                                                                               interest
                                                                                                                               (25.309%
                                                                                                                               net
                                                                                                                               revenue
                                                                                                                               interest),
                                                                                                                               subject
                                                                                                                               to
                                                                                                                               a
                                                                                                                               reduction
                                                                                                                               of
                                                                                                                               the
                                                                                                                               working
                                                                                                                               interest
                                                                                                                               to
                                                                                                                               25%
                                                                                                                               (and
                                                                                                                               a
                                                                                                                               proportional
                                                                                                                               reduction
                                                                                                                               of
                                                                                                                               the
                                                                                                                               net
                                                                                                                               revenue
                                                                                                                               interest)
                                                                                                                               if
                                                                                                                               Rancher
                                                                                                                               and
                                                                                                                               PetroShare
                                                                                                                               do
                                                                                                                               not
                                                                                                                               complete
                                                                                                                               a
                                                                                                                               business
                                                                                                                               combination.
                                                                                                                               Rancher
                                                                                                                               paid
                                                                                                                               $507,748
                                                                                                                               on
                                                                                                                               October
                                                                                                                               7,
                                                                                                                               2013
                                                                                                                               and an additional $39,590 on October 9, 2013 as
                                                                                                                               its
                                                                                                                               30%
                                                                                                                               share
                                                                                                                               of
                                                                                                                               the
                                                                                                                               costs
                                                                                                                               under
                                                                                                                               the
                                                                                                                               above-described
                                                                                                                               Participation
                                                                                                                               Agreement,
                                                                                                                               and
                                                                                                                               may
                                                                                                                               pay
                                                                                                                               up
                                                                                                                               to
                                                                                                                               a
                                                                                                                               total
                                                                                                                               of
                                                                                                                               $1,426,029
                                                                                                                               if
                                                                                                                               both
                                                                                                                               wells
                                                                                                                               are
                                                                                                                               drilled
                                                                                                                               to
                                                                                                                               completion
                                                                                                                               (see
                                                                                                                               Item
                                                                                                                               1.01
                                                                                                                               above
                                                                                                                               for
                                                                                                                               more
                                                                                                                               details).</FONT></TD></TR></TABLE>

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<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">(e)</FONT></TD><TD><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Not
                                                                                                                               applicable.</FONT></TD></TR></TABLE>

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<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">(f)</FONT></TD><TD><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Prior
                                                                                                                               to
                                                                                                                               the
                                                                                                                               above-described
                                                                                                                               acquisition
                                                                                                                               of
                                                                                                                               the
                                                                                                                               working
                                                                                                                               interest,
                                                                                                                               Rancher
                                                                                                                               was
                                                                                                                               a
                                                                                                                               shell
                                                                                                                               company.
                                                                                                                               As
                                                                                                                               a
                                                                                                                               result
                                                                                                                               of
                                                                                                                               the
                                                                                                                               acquisition
                                                                                                                               of
                                                                                                                               the
                                                                                                                               working
                                                                                                                               interest,
                                                                                                                               and
                                                                                                                               as
                                                                                                                               a
                                                                                                                               result
                                                                                                                               of
                                                                                                                               the
                                                                                                                               beginning
                                                                                                                               of
                                                                                                                               operations
                                                                                                                               (see
                                                                                                                               Item
                                                                                                                               5.06
                                                                                                                               below)
                                                                                                                               as
                                                                                                                               a
                                                                                                                               party
                                                                                                                               to
                                                                                                                               the
                                                                                                                               Participation
                                                                                                                               Agreement
                                                                                                                               and
                                                                                                                               AAPL
                                                                                                                               Form
                                                                                                                               610
                                                                                                                               operating
                                                                                                                               agreement
                                                                                                                               described
                                                                                                                               above
                                                                                                                               in
                                                                                                                               Item
                                                                                                                               1.01,
                                                                                                                               we
                                                                                                                               believe
                                                                                                                               Rancher
                                                                                                                               is
                                                                                                                               no
                                                                                                                               longer
                                                                                                                               a
                                                                                                                               shell
                                                                                                                               company.
                                                                                                                               Nevertheless,
                                                                                                                               if
                                                                                                                               the
                                                                                                                               operations
                                                                                                                               under
                                                                                                                               the
                                                                                                                               Participation
                                                                                                                               Agreement
                                                                                                                               and
                                                                                                                               the
                                                                                                                               operating
                                                                                                                               agreement
                                                                                                                               are
                                                                                                                               fruitless,
                                                                                                                               Rancher
                                                                                                                               may
                                                                                                                               become
                                                                                                                               a
                                                                                                                               shell
                                                                                                                               company
                                                                                                                               once
                                                                                                                               again.</FONT></TD></TR></TABLE>

<P STYLE="font: 12pt/normal Times New Roman, Times, Serif; margin: 0 0 10pt; text-align: center"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>FORM
10 INFORMATION</B></FONT></P>

<P STYLE="font: 12pt/normal Times New Roman, Times, Serif; margin: 0 0 10pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>Item
1&#9;Business</B></FONT></P>

<P STYLE="font: 12pt/normal Times New Roman, Times, Serif; margin: 0 0 10pt; text-indent: 45.8pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Rancher
incorporates by reference Form 10 Item 1, which was previously reported in its Annual Report on Form 10-K for the fiscal year
ending March 31, 2013, filed on June 25, 2013.</FONT></P>

<P STYLE="font: 12pt/normal Times New Roman, Times, Serif; margin: 0 0 10pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>Item
1A</B>&#9;<B>Risk Factors</B></FONT></P>

<P STYLE="font: 12pt/normal Times New Roman, Times, Serif; margin: 0 0 10pt; text-indent: 45.8pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Rancher
incorporates by reference Form 10 Item 1A, which was previously reported in its Quarterly Report on Form 10-Q for the fiscal quarter
ending June 30, 2013, filed on August 14, 2013.</FONT></P>

<P STYLE="font: 12pt/normal Times New Roman, Times, Serif; margin: 0 0 10pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>Item
2&#9;Financial Information</B></FONT></P>

<P STYLE="font: 12pt/normal Times New Roman, Times, Serif; margin: 0 0 10pt; text-indent: 45.8pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Rancher
incorporates by reference Form 10 Item 2, which was previously reported in its Annual Report on Form 10-K for the fiscal year
ending March 31, 2013, filed on June 25, 2013, and as it was previously reported in its Quarterly Report on Form 10-Q for the
fiscal quarter ending June 30, 2013, filed on August 14, 2013.</FONT></P>

<P STYLE="font: 12pt/normal Times New Roman, Times, Serif; margin: 0 0 10pt; text-indent: 45.8pt; border-bottom: Black 1pt solid"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 12pt/normal Times New Roman, Times, Serif; margin: 0 0 10pt; text-indent: 45.8pt"></P>

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<P STYLE="font: 12pt/normal Times New Roman, Times, Serif; margin: 0 0 10pt; text-indent: 45.8pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 12pt/normal Times New Roman, Times, Serif; margin: 0 0 10pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>Item
3&#9;Properties</B></FONT></P>

<P STYLE="font: 12pt/normal Times New Roman, Times, Serif; margin: 0 0 10pt; text-indent: 45.8pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Rancher
incorporates by reference Form 10 Item 3, which was previously reported in its Annual Report on Form 10-K for the fiscal year
ending March 31, 2013, filed on June 25, 2013. In addition:</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 11pt/normal Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">(a)</FONT></TD><TD><FONT STYLE="font: 10pt Times New Roman, Times, Serif">The
                                                                                                                               leasehold
                                                                                                                               interests
                                                                                                                               in
                                                                                                                               which
                                                                                                                               Rancher
                                                                                                                               acquired
                                                                                                                               rights
                                                                                                                               on
                                                                                                                               October
                                                                                                                               7,
                                                                                                                               2013
                                                                                                                               as
                                                                                                                               a
                                                                                                                               result
                                                                                                                               of
                                                                                                                               the
                                                                                                                               payment
                                                                                                                               of
                                                                                                                               estimated
                                                                                                                               drilling
                                                                                                                               expenses,
                                                                                                                               are
                                                                                                                               located
                                                                                                                               in
                                                                                                                               Section
                                                                                                                               25
                                                                                                                               of
                                                                                                                               Township
                                                                                                                               6
                                                                                                                               North,
                                                                                                                               Range
                                                                                                                               90
                                                                                                                               West,
                                                                                                                               6th
                                                                                                                               P.M.,
                                                                                                                               Moffatt
                                                                                                                               County,
                                                                                                                               Colorado.</FONT></TD></TR></TABLE>

<P STYLE="font: 12pt/normal Times New Roman, Times, Serif; margin: 0 0 0 0.5in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 11pt/normal Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">(b)</FONT></TD><TD><FONT STYLE="font: 10pt Times New Roman, Times, Serif">There
                                                                                                                               are
                                                                                                                               no
                                                                                                                               other
                                                                                                                               producing
                                                                                                                               oil
                                                                                                                               and
                                                                                                                               gas
                                                                                                                               wells
                                                                                                                               on
                                                                                                                               said
                                                                                                                               Section
                                                                                                                               25.
                                                                                                                               PetroShare
                                                                                                                               has
                                                                                                                               advised
                                                                                                                               Rancher
                                                                                                                               that
                                                                                                                               it
                                                                                                                               has
                                                                                                                               commenced
                                                                                                                               building
                                                                                                                               the
                                                                                                                               location
                                                                                                                               for
                                                                                                                               the
                                                                                                                               contemplated
                                                                                                                               wells.</FONT></TD></TR></TABLE>

<P STYLE="font: 12pt/115% Times New Roman, Times, Serif; margin: 0 0 0 0.5in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 11pt/normal Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">(c)</FONT></TD><TD><FONT STYLE="font: 10pt Times New Roman, Times, Serif">The
                                                                                                                               properties
                                                                                                                               are
                                                                                                                               not
                                                                                                                               held
                                                                                                                               in
                                                                                                                               fee,
                                                                                                                               but
                                                                                                                               are
                                                                                                                               subject
                                                                                                                               to
                                                                                                                               standard
                                                                                                                               oil
                                                                                                                               and
                                                                                                                               gas
                                                                                                                               leases
                                                                                                                               which
                                                                                                                               provide
                                                                                                                               for
                                                                                                                               three
                                                                                                                               to
                                                                                                                               six
                                                                                                                               year
                                                                                                                               terms
                                                                                                                               (expiring
                                                                                                                               in
                                                                                                                               2014
                                                                                                                               through
                                                                                                                               2016)
                                                                                                                               unless
                                                                                                                               oil
                                                                                                                               and
                                                                                                                               gas
                                                                                                                               operations
                                                                                                                               are
                                                                                                                               continuing
                                                                                                                               at
                                                                                                                               the
                                                                                                                               expiration
                                                                                                                               of
                                                                                                                               the
                                                                                                                               term
                                                                                                                               of
                                                                                                                               the
                                                                                                                               lease.
                                                                                                                               Based
                                                                                                                               on
                                                                                                                               preliminary
                                                                                                                               title
                                                                                                                               work,
                                                                                                                               it
                                                                                                                               appears
                                                                                                                               that
                                                                                                                               PetroShare
                                                                                                                               owned
                                                                                                                               a
                                                                                                                               100%
                                                                                                                               working
                                                                                                                               interest
                                                                                                                               (approximately
                                                                                                                               78.3%
                                                                                                                               net
                                                                                                                               revenue
                                                                                                                               interest)
                                                                                                                               in
                                                                                                                               the
                                                                                                                               minerals
                                                                                                                               underlying
                                                                                                                               Section
                                                                                                                               25.
                                                                                                                               Section
                                                                                                                               25
                                                                                                                               has
                                                                                                                               had
                                                                                                                               five
                                                                                                                               wells
                                                                                                                               drilled
                                                                                                                               on
                                                                                                                               it
                                                                                                                               between
                                                                                                                               1956
                                                                                                                               and
                                                                                                                               1965.
                                                                                                                               Three
                                                                                                                               of
                                                                                                                               these
                                                                                                                               wells
                                                                                                                               produced
                                                                                                                               from
                                                                                                                               the
                                                                                                                               Niobrara
                                                                                                                               and
                                                                                                                               two
                                                                                                                               produced
                                                                                                                               from
                                                                                                                               the
                                                                                                                               Trout
                                                                                                                               Creek
                                                                                                                               formation.
                                                                                                                               The
                                                                                                                               last
                                                                                                                               well
                                                                                                                               produced
                                                                                                                               until
                                                                                                                               1998.
                                                                                                                               Oil
                                                                                                                               was
                                                                                                                               produced
                                                                                                                               from
                                                                                                                               the
                                                                                                                               Niobrara
                                                                                                                               formation,
                                                                                                                               while
                                                                                                                               the
                                                                                                                               gas
                                                                                                                               was
                                                                                                                               produced
                                                                                                                               from
                                                                                                                               both
                                                                                                                               the
                                                                                                                               Niobrara
                                                                                                                               and
                                                                                                                               Trout
                                                                                                                               Creek
                                                                                                                               formations.
                                                                                                                               The
                                                                                                                               producing
                                                                                                                               field
                                                                                                                               in
                                                                                                                               this
                                                                                                                               area
                                                                                                                               is
                                                                                                                               known
                                                                                                                               as
                                                                                                                               the
                                                                                                                               Buck
                                                                                                                               Peak
                                                                                                                               field,
                                                                                                                               which
                                                                                                                               is
                                                                                                                               the
                                                                                                                               largest
                                                                                                                               producing
                                                                                                                               Niobrara
                                                                                                                               oil
                                                                                                                               field
                                                                                                                               in
                                                                                                                               the
                                                                                                                               Sand
                                                                                                                               Wash
                                                                                                                               basin.
                                                                                                                               While
                                                                                                                               there
                                                                                                                               has
                                                                                                                               been
                                                                                                                               successful
                                                                                                                               production
                                                                                                                               from
                                                                                                                               this
                                                                                                                               field
                                                                                                                               in
                                                                                                                               the
                                                                                                                               past,
                                                                                                                               there
                                                                                                                               can
                                                                                                                               be
                                                                                                                               no
                                                                                                                               assurance
                                                                                                                               that
                                                                                                                               the
                                                                                                                               planned
                                                                                                                               drilling
                                                                                                                               operations
                                                                                                                               will
                                                                                                                               be
                                                                                                                               successful
                                                                                                                               or
                                                                                                                               result
                                                                                                                               in
                                                                                                                               the
                                                                                                                               commercial
                                                                                                                               production
                                                                                                                               of
                                                                                                                               oil
                                                                                                                               or
                                                                                                                               natural
                                                                                                                               gas.</FONT></TD></TR></TABLE>

<P STYLE="font: 12pt/normal Times New Roman, Times, Serif; margin: 0 0 10pt 0.5in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 12pt/normal Times New Roman, Times, Serif; margin: 0 0 10pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>Item
4&#9;Security Ownership of Certain Beneficial Owners and Management</B></FONT></P>

<P STYLE="font: 12pt/normal Times New Roman, Times, Serif; margin: 0 0 10pt; text-indent: 45.8pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Rancher
incorporates by reference Form 10 Item 4, which was previously reported in its Annual Report on Form 10-K for the fiscal year
ending March 31, 2013, filed on June 25, 2013.</FONT></P>

<P STYLE="font: 12pt/normal Times New Roman, Times, Serif; margin: 0 0 10pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>Item
5&#9;Directors and Executive Officers</B></FONT></P>

<P STYLE="font: 12pt/normal Times New Roman, Times, Serif; margin: 0 0 10pt; text-indent: 45.8pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Rancher
incorporates by reference Form 10 Item 5, which was previously reported in its Annual Report on Form 10-K for the fiscal year
ending March 31, 2013, filed on June 25, 2013.</FONT></P>

<P STYLE="font: 12pt/normal Times New Roman, Times, Serif; margin: 0 0 10pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>Item
6&#9;Executive Compensation</B></FONT></P>

<P STYLE="font: 12pt/normal Times New Roman, Times, Serif; margin: 0 0 10pt; text-indent: 45.8pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Rancher
incorporates by reference Form 10 Item 6, which was previously reported in its Annual Report on Form 10-K for the fiscal year
ending March 31, 2013, filed on June 25, 2013.</FONT></P>

<P STYLE="font: 12pt/normal Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>Item
7&#9;Certain Relationships and Related Transactions, and Director Independence</B></FONT></P>

<P STYLE="font: 12pt/normal Times New Roman, Times, Serif; margin: 0 0 10pt; text-indent: 45.8pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B></B></FONT></P>

<P STYLE="font: 12pt/normal Times New Roman, Times, Serif; margin: 0 0 10pt; text-indent: 45.8pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Rancher
incorporates by reference Form 10 Item 7, which was previously reported in its Annual Report on Form 10-K for the fiscal year
ending March 31, 2013, filed on June 25, 2013.</FONT></P>

<P STYLE="font: 12pt/normal Times New Roman, Times, Serif; margin: 0 0 10pt; text-indent: 45.8pt; border-bottom: Black 1pt solid">&nbsp;</P>

<P STYLE="font: 12pt/normal Times New Roman, Times, Serif; margin: 0 0 10pt; text-indent: 45.8pt"></P>

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<P STYLE="font: 12pt/normal Times New Roman, Times, Serif; margin: 0 0 10pt; text-indent: 45.8pt">&nbsp;</P>

<P STYLE="font: 12pt/normal Times New Roman, Times, Serif; margin: 0 0 10pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>Item
8&#9;Legal Proceedings</B></FONT></P>

<P STYLE="font: 12pt/normal Times New Roman, Times, Serif; margin: 0 0 10pt; text-indent: 45.8pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Rancher
incorporates by reference Form 10 Item 8, which was previously reported in its Annual Report on Form 10-K for the fiscal year
ending March 31, 2013, filed on June 25, 2013.</FONT></P>

<P STYLE="font: 12pt/normal Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>Item
9&#9;Market Price of and Dividends on the Registrant&rsquo;s Common Equity and Related Stockholder Matters</B></FONT></P>

<P STYLE="font: 12pt/normal Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 12pt/normal Times New Roman, Times, Serif; margin: 0 0 10pt; text-indent: 45.8pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Rancher
incorporates by reference Form 10 Item 9, which was previously reported in its Annual Report on Form 10-K for the fiscal year
ending March 31, 2013, filed on June 25, 2013.</FONT></P>

<P STYLE="font: 12pt/normal Times New Roman, Times, Serif; margin: 0 0 10pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>Item
10&#9;Recent Sales of Unregistered Securities</B></FONT></P>

<P STYLE="font: 12pt/normal Times New Roman, Times, Serif; margin: 0 0 10pt; text-indent: 45.8pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Rancher
incorporates by reference Form 10 Item 10, which was previously reported in its Annual Report on Form 10-K for the fiscal year
ending March 31, 2013, filed on June 25, 2013.</FONT></P>

<P STYLE="font: 12pt/normal Times New Roman, Times, Serif; margin: 0 0 10pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>Item
11&#9;Description of Registrant&rsquo;s Securities</B></FONT></P>

<P STYLE="font: 12pt/normal Times New Roman, Times, Serif; margin: 0 0 10pt; text-indent: 45.8pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Rancher
is authorized to issue an aggregate of 275,000,000 shares of common stock, par value $0.0001 per share. After the acquisition
of the leasehold working interests described above in Item 2.01, 119,862,791 shares were outstanding. Rancher&rsquo;s common stock
is traded on the OTCQB.</FONT></P>

<P STYLE="font: 12pt/normal Times New Roman, Times, Serif; margin: 0 0 10pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B><I><U>Common
Stock</U></I></B></FONT></P>

<P STYLE="font: 12pt/normal Times New Roman, Times, Serif; margin: 0 0 10pt; text-indent: 45.8pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">All
outstanding shares of the Company&rsquo;s common stock are of the same class and have equal rights and attributes. There is no
preferred stock. Dividends may be declared by the board of directors out of Rancher&rsquo;s funds to the extent and in the manner
permitted by law.</FONT></P>

<P STYLE="font: 12pt/normal Times New Roman, Times, Serif; margin: 0 0 10pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><I>Voting.
</I>The holders of Rancher&rsquo;s common stock are entitled to one (1) vote for each share held of record, and each fractional
share shall be entitled to a corresponding fractional vote on each matter submitted to a vote of the stockholders on which the
holders of the common sstock are entitled to vote. There is no cumulative voting allowed in the election of directors. The affirmative
vote of a majority of the common stock represented at a stockholders&rsquo; meeting and entitled to vote on the subject matter
shall be the act of the stockholders except to the extent the articles of incorporation or Nevada statutes require a greater percentage
of vote such as in connection with the amendment of Rancher&rsquo;s articles of incorporation (N.R.S. &sect; 78.390(1)(c)), a
control share acquisition (such as the merger, N.R.S. &sect; 78.3791), or removal of directors (N.R.S. &sect; 78.335).</FONT></P>

<P STYLE="font: 12pt/normal Times New Roman, Times, Serif; margin: 0 0 10pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"></FONT></P>

<P STYLE="font: 12pt/normal Times New Roman, Times, Serif; margin: 0 0 10pt; border-bottom: Black 1pt solid"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 12pt/normal Times New Roman, Times, Serif; margin: 0 0 10pt"></P>

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<P STYLE="font: 12pt/normal Times New Roman, Times, Serif; margin: 0 0 10pt">&nbsp;</P>

<P STYLE="font: 12pt/normal Times New Roman, Times, Serif; margin: 0 0 10pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><I>Preemptive
Rights</I>. No stockholder of Rancher or any person with the right to convert any security or obligation to common stock of Rancher
shall have any preemptive right.</FONT></P>

<P STYLE="font: 12pt/normal Times New Roman, Times, Serif; margin: 0 0 10pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><I>No
Assessment</I>. After the amount payable for the shares has been fully paid, the shares of Rancher shall not be assessable for
any purpose, and no stock issued as fully paid shall ever be assessable or assessed. No stockholder of Rancher is individually
liable for the debts or liabilities of Rancher.</FONT></P>

<P STYLE="font: 12pt/normal Times New Roman, Times, Serif; margin: 0 0 10pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><I>No
Board Classification</I>. The Rancher board of directors is not classified or staggered, and the entire board may (pursuant to
N.R.S. &sect; 78.335) be removed, with or without cause, upon a vote of two-thirds of the shares entitled to vote at a meeting
of the stockholders. To remove directors, a shareholders&rsquo; meeting must be called specifically for that purpose.</FONT></P>

<P STYLE="font: 12pt/normal Times New Roman, Times, Serif; margin: 0 0 10pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B><I><U>Warrants,
Rights, and Options</U></I></B></FONT></P>

<P STYLE="font-size: 11pt; text-align: left; text-indent: 45.8pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">As of the date of this report, options
to acquire 10,000,000 shares of common stock are outstanding.&nbsp; These options are exercisable at $0.035 per share, and will
expire in October 2019.&nbsp; All the options are exercisable within 60 days.</FONT></P>

<P STYLE="font: 12pt/normal Times New Roman, Times, Serif; margin: 0 0 10pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>Item
12&#9;Indemnification of Directors and Officers</B></FONT></P>

<P STYLE="font: 12pt/normal Times New Roman, Times, Serif; margin: 0 0 10pt; text-indent: 45.8pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Rancher
incorporates by reference Form 10 Item 12, which was previously reported in its Annual Report on Form 10-K for the fiscal year
ending March 31, 2013, filed on June 25, 2013.</FONT></P>

<P STYLE="font: 12pt/normal Times New Roman, Times, Serif; margin: 0 0 10pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>Item
13&#9;Financial Statements and Supplementary Data</B></FONT></P>

<P STYLE="font: 12pt/normal Times New Roman, Times, Serif; margin: 0 0 10pt; text-indent: 45.8pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Rancher
incorporates by reference Form 10 Item 13, which was previously reported in its Annual Report on Form 10-K for the fiscal year
ending March 31, 2013, filed on June 25, 2013, and as it was previously reported in its Quarterly Report on Form 10-Q for the
fiscal quarter ending June 30, 2013, filed on August 14, 2013.</FONT></P>

<P STYLE="font: 12pt/normal Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>Item
14&#9;Changes in and Disagreements with Accountants on Accounting and Financial Disclosure</B></FONT></P>

<P STYLE="font: 12pt/normal Times New Roman, Times, Serif; margin: 0 0 10pt; text-indent: 45.8pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B></B></FONT></P>

<P STYLE="font: 12pt/normal Times New Roman, Times, Serif; margin: 0 0 10pt; text-indent: 45.8pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Rancher
incorporates by reference Form 10 Item 14, which was previously reported in its Annual Report on Form 10-K for the fiscal year
ending March 31, 2013, filed on June 25, 2013.</FONT></P>

<P STYLE="font: 12pt/normal Times New Roman, Times, Serif; margin: 0 0 10pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>Item
15&#9;Financial Statements and Exhibits</B></FONT></P>

<P STYLE="font: 12pt/normal Times New Roman, Times, Serif; margin: 0 0 10pt; text-indent: 45.8pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Rancher
incorporates by reference Form 10 Item 15, which was previously reported in its Annual Report on Form 10-K for the fiscal year
ending March 31, 2013, filed on June 25, 2013, and as it was previously reported in its Quarterly Report on Form 10-Q for the
fiscal quarter ending June 30, 2013, filed on August 14, 2013.</FONT></P>

<P STYLE="font: 12pt/normal Times New Roman, Times, Serif; margin: 0 0 10pt; border-bottom: Black 1pt solid"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 12pt/normal Times New Roman, Times, Serif; margin: 0 0 10pt"></P>

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<P STYLE="font: 12pt/normal Times New Roman, Times, Serif; margin: 0 0 10pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 12pt/normal Times New Roman, Times, Serif; margin: 0 0 10pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>SECTION
5 &ndash; CORPORATE GOVERNANCE AND MANAGEMENT</B></FONT></P>

<P STYLE="font: 12pt/normal Times New Roman, Times, Serif; margin: 0 0 10pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>Item
5.06&#9;Change in Shell Company Status</B></FONT></P>

<P STYLE="font: 12pt/normal Times New Roman, Times, Serif; margin: 0 0 10pt; text-indent: 45.8pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Prior
to Rancher&rsquo;s entry into the Participation Agreement and AAPL Form 610 operating agreement, Rancher was a shell company.
As a result of entry into these agreements, the acquisition of assets as described in Item 2.01 above, and the addition of operations
under the agreements (as described above in Items 1.01 and 2.01 above), we believe Rancher is no longer a shell company. The material
terms of these agreements are described in Items 1.01 and 2.01 above, and are further disclosed in full by the attachment of the
Participation Agreement hereto as Exhibit 10.1. Rancher is a non-operator under the AAPL Form 610 operating agreement, the terms
of which are standard. If the wells contemplated under the Participation Agreement and the operating agreement are dry holes and
plugged and abandoned, Rancher may become a shell company once again.</FONT></P>

<P STYLE="font: 12pt/normal Times New Roman, Times, Serif; margin: 0 0 10pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 12pt/normal Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>SECTION
9 - FINANCIAL STATEMENTS AND EXHIBITS</B></FONT></P>

<P STYLE="font: 12pt/normal Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 12pt/normal Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>Item
9.01 Financial Statements and Exhibits</B></FONT></P>

<P STYLE="font: 12pt/normal Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 12pt/normal Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B><I>(d)
Exhibits.</I></B></FONT></P>

<P STYLE="font: 12pt/normal Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 12pt/normal Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">The
following is a complete list of exhibits filed as part of this Report. Exhibit numbers correspond to the numbers in the exhibit
table of Item 601 of Regulation S-K.</FONT></P>

<P STYLE="font: 12pt/normal Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 12pt/normal Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><I></I></FONT></P>

<P STYLE="font: 12pt/normal Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 12pt/normal Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0">                                                                                                                                                                                                                                                                                                                                                                                                                                       <TR STYLE="vertical-align: top">
<TD><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><I>Exhibit No.</I></FONT></TD><TD><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><I>Description</I></FONT></TD></TR>
<TR STYLE="vertical-align: top">
<TD><I>&nbsp;</I></TD><TD><I>&nbsp;</I></TD></TR>
<TR STYLE="vertical-align: top">
<TD STYLE="width: 20%"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">10.1</FONT></TD><TD STYLE="width: 80%"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Participation
                                                                                                     Agreement between Rancher
                                                                                                     Energy Corp. and PetroShare
                                                                                                     Corp. dated as of September
                                                                                                     30, 2013</FONT></TD></TR></TABLE>

<P STYLE="font: 12pt/115% Times New Roman, Times, Serif; margin: 0 0 10pt"><I>&nbsp;</I></P>

<P STYLE="font: 12pt/115% Times New Roman, Times, Serif; margin: 0 0 10pt; border-bottom: Black 1pt solid"><I>&nbsp;</I></P>

<P STYLE="font: 12pt/115% Times New Roman, Times, Serif; margin: 0 0 10pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><I>&nbsp;</I></FONT></P>


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<P STYLE="font: 12pt/115% Times New Roman, Times, Serif; margin: 0 0 10pt"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 12pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B><I>SIGNATURES</I></B></FONT></P>

<P STYLE="font: 12pt/normal Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><I>&nbsp;</I></FONT></P>

<P STYLE="font: 12pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 45.8pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><I>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, hereunto duly authorized.</I></FONT></P>

<P STYLE="font: 12pt/normal Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><I>&nbsp;</I></FONT></P>

<P STYLE="font: 12pt/normal Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B><I>RANCHER
ENERGY CORP.</I></B></FONT></P>

<P STYLE="font: 12pt/normal Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><I>&nbsp;</I></FONT></P>

<P STYLE="font: 12pt/normal Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">By:
<I>&#9;<U>/s/ Jon C. Nicolaysen</U></I></FONT></P>

<P STYLE="font: 12pt/normal Times New Roman, Times, Serif; margin: 0 0 0 22pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><I>Jon
C. Nicolaysen, President and</I></FONT></P>

<P STYLE="font: 12pt/normal Times New Roman, Times, Serif; margin: 0 0 0 22pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><I>Chief
Executive Officer</I></FONT></P>

<P STYLE="font: 12pt/normal Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><I>&nbsp;</I></FONT></P>

<P STYLE="font: 12pt/normal Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Date:
October 8, 2013</FONT></P>



<P STYLE="margin: 0"></P>

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[{"type": "8-K", "sequence": "1", "filename": "rancher8k1032013.htm", "description": "FORM 8-K", "secsgml_size_bytes": 113302}]
{"company-data": {"conformed-name": "RANCHER ENERGY CORP.", "cik": "0001287900", "assigned-sic": "1311", "irs-number": "980422451", "state-of-incorporation": "NV", "fiscal-year-end": "0331"}, "filing-values": {"form-type": "8-K", "act": "34", "file-number": "000-51425", "film-number": "131143716"}, "business-address": {"street1": "PO BOX 40", "city": "HENDERSON", "state": "CO", "zip": "80640", "phone": "(303) 629-1122"}, "mail-address": {"street1": "PO BOX 40", "city": "HENDERSON", "state": "CO", "zip": "80640"}, "former-company": {"former-conformed-name": "METALEX RESOURCES INC", "date-changed": "20040420"}}
UNITED
STATES
SECURITIES
AND EXCHANGE COMMISSION
Washington,
D.C. 20549
FORM
8-K
CURRENT
REPORT
Pursuant
to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date
of Report: October 3, 2013
RANCHER ENERGY CORP.
(Exact name of registrant as specified
in its charter)
Nevada
000-51425
98-0422451
(State or other jurisdiction of
(Commission File
(IRS Employer Identification
of incorporation)
Number)
Number)
P.O.
Box 40, Henderson, Colorado 80640
(Address
of Principal Executive Offices) (Zip Code)
(303)
629-1125
Registrant's
telephone number, including area code
Not
Applicable
(Former
name or former address, if changed since last report)
Check
the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant
under any of the following provisions:
[  
]	Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
[  
] 	Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
[  
]	Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
[  
]	Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)
SECTION
1 – REGISTRANT'S BUSINESS AND OPERATIONS
Item
1.01	Entry Into A Material Definitive Agreement
On
October 3, 2013 (effective September 30, 2013), Rancher Energy Corp. ("Rancher") executed a Participation Agreement
with PetroShare Corp., a privately-held Colorado corporation not affiliated with Rancher ("PetroShare"), for the purposes
of drilling at least one and up to two oil and/or gas wells to test the Niobrara formation to a depth of approximately 7,850 feet
total vertical depth (TVD) in Moffatt County, Colorado. The following description of the Participation Agreement is qualified
in its entirety by reference to the Participation Agreement which agreement is included herewith as Exhibit 10.1.
On
October 7, 2013, Rancher paid 30% of the costs of drilling the first well (Kowach 3-25) in exchange for a 30% working interest
(25.309% net revenue interest), subject to a reduction of the working interest to 25% (and a proportional reduction of the net
revenue interest) if Rancher and PetroShare do not complete a business combination. Rancher and PetroShare have entered into a
non-binding letter of intent by which the two parties are negotiating and pursuing a business combination. Any business combination
will be subject to approval by Rancher's stockholders and a number of other conditions precedent.
The
estimated cost for drilling the first well is $1,824,460 ($547,338 net to Rancher), and if warranted an additional $471,772 for
completion ($141,517 net to Rancher). Rancher has an option not to participate in the second well, based on the results obtained
from the first well. If Rancher participates in the second well (of which there can be no assurance), the estimated cost for drilling
the second well (Voloshin 3-25) is $1,982,998 ($594,899 net to Rancher), and if warranted an additional $474,247 for completion
($142,274 net to Rancher).
It
is expected that drilling on the first well will commence within the next several weeks. PetroShare will be the operator of the
wells pursuant to a standard AAPL Form 610 operating agreement and exhibits thereto. Two other companies, not affiliated with
either Rancher or PetroShare, are also participating in the proposed drilling operation.
SECTION
2 – FINANCIAL INFORMATION
Item
2.01	Completion of Acquisition or Disposition of Assets
Pursuant
to the Participation Agreement described in Item 1.01 above, upon payment, Rancher acquired a 30% working interest in the oil
and gas leases on the property described below in Item 2.01(b). Rancher believes this to be a significant amount of assets acquired
otherwise than in the ordinary course of business.
(a)
The
                                                                                                                               asset
                                                                                                                               described
                                                                                                                               above
                                                                                                                               was
                                                                                                                               acquired
                                                                                                                               by
                                                                                                                               Rancher
                                                                                                                               upon
                                                                                                                               Rancher's
                                                                                                                               payment
                                                                                                                               of
                                                                                                                               the
                                                                                                                               costs
                                                                                                                               of
                                                                                                                               drilling
                                                                                                                               the
                                                                                                                               first
                                                                                                                               well
                                                                                                                               under
                                                                                                                               the
                                                                                                                               Participation
                                                                                                                               Agreement
                                                                                                                               on
                                                                                                                               October
                                                                                                                               7,
                                                                                                                               2013.
(b)
Pursuant
                                                                                                                               to
                                                                                                                               the
                                                                                                                               terms
                                                                                                                               of
                                                                                                                               the
                                                                                                                               Participation
                                                                                                                               Agreement
                                                                                                                               disclosed
                                                                                                                               in
                                                                                                                               Item
                                                                                                                               1.01
                                                                                                                               above,
                                                                                                                               Rancher
                                                                                                                               acquired
                                                                                                                               a
                                                                                                                               30%
                                                                                                                               working
                                                                                                                               interest
                                                                                                                               in
                                                                                                                               the
                                                                                                                               oil
                                                                                                                               and
                                                                                                                               gas
                                                                                                                               leases
                                                                                                                               on
                                                                                                                               the
                                                                                                                               following
                                                                                                                               described
                                                                                                                               property:
Township
6 North, Range 90 West, 6th P.M., Section 25, all of Lot 1 (42.05 acres), Lot 2 (42.05 acres), Lot 3 (42.04 acres), Lot 4 (42.03
acres), Lot 5 (41.98 acres), Lot 6 (41.98 acres), Lot 7 (41.98 acres), Lot 8 (41.98 acres), Lot 9 (41.92 acres), Lot 10 (41.91
acres), Lot 11 (41.91 acres), Lot 12 (41.90 acres), Lot 13 (41.85 acres), Lot 14 (41.85 acres), Lot 15 (41.86 acres), and Lot
16 (41.86 acres), Moffat County, Colorado.
(c)
The
                                                                                                                               above-described
                                                                                                                               working
                                                                                                                               interest
                                                                                                                               was
                                                                                                                               acquired
                                                                                                                               from
                                                                                                                               PetroShare
                                                                                                                               Corp.,
                                                                                                                               a
                                                                                                                               non-affiliate
                                                                                                                               of
                                                                                                                               Rancher.
                                                                                                                               Rancher
                                                                                                                               and
                                                                                                                               PetroShare
                                                                                                                               Corp.
                                                                                                                               have
                                                                                                                               no
                                                                                                                               material
                                                                                                                               relationship
                                                                                                                               other
                                                                                                                               than
                                                                                                                               as
                                                                                                                               described
                                                                                                                               above
                                                                                                                               in
                                                                                                                               Item
                                                                                                                               1.01.
(d)
Rancher
                                                                                                                               will
                                                                                                                               pay
                                                                                                                               30%
                                                                                                                               of
                                                                                                                               the
                                                                                                                               costs
                                                                                                                               of
                                                                                                                               drilling
                                                                                                                               and
                                                                                                                               completion
                                                                                                                               in
                                                                                                                               exchange
                                                                                                                               for
                                                                                                                               a
                                                                                                                               30%
                                                                                                                               working
                                                                                                                               interest
                                                                                                                               (25.309%
                                                                                                                               net
                                                                                                                               revenue
                                                                                                                               interest),
                                                                                                                               subject
                                                                                                                               to
                                                                                                                               a
                                                                                                                               reduction
                                                                                                                               of
                                                                                                                               the
                                                                                                                               working
                                                                                                                               interest
                                                                                                                               to
                                                                                                                               25%
                                                                                                                               (and
                                                                                                                               a
                                                                                                                               proportional
                                                                                                                               reduction
                                                                                                                               of
                                                                                                                               the
                                                                                                                               net
                                                                                                                               revenue
                                                                                                                               interest)
                                                                                                                               if
                                                                                                                               Rancher
                                                                                                                               and
                                                                                                                               PetroShare
                                                                                                                               do
                                                                                                                               not
                                                                                                                               complete
                                                                                                                               a
                                                                                                                               business
                                                                                                                               combination.
                                                                                                                               Rancher
                                                                                                                               paid
                                                                                                                               $507,748
                                                                                                                               on
                                                                                                                               October
                                                                                                                               7,
                                                                                                                               2013
                                                                                                                               and an additional $39,590 on October 9, 2013 as
                                                                                                                               its
                                                                                                                               30%
                                                                                                                               share
                                                                                                                               of
                                                                                                                               the
                                                                                                                               costs
                                                                                                                               under
                                                                                                                               the
                                                                                                                               above-described
                                                                                                                               Participation
                                                                                                                               Agreement,
                                                                                                                               and
                                                                                                                               may
                                                                                                                               pay
                                                                                                                               up
                                                                                                                               to
                                                                                                                               a
                                                                                                                               total
                                                                                                                               of
                                                                                                                               $1,426,029
                                                                                                                               if
                                                                                                                               both
                                                                                                                               wells
                                                                                                                               are
                                                                                                                               drilled
                                                                                                                               to
                                                                                                                               completion
                                                                                                                               (see
                                                                                                                               Item
                                                                                                                               1.01
                                                                                                                               above
                                                                                                                               for
                                                                                                                               more
                                                                                                                               details).
(e)
Not
                                                                                                                               applicable.
(f)
Prior
                                                                                                                               to
                                                                                                                               the
                                                                                                                               above-described
                                                                                                                               acquisition
                                                                                                                               of
                                                                                                                               the
                                                                                                                               working
                                                                                                                               interest,
                                                                                                                               Rancher
                                                                                                                               was
                                                                                                                               a
                                                                                                                               shell
                                                                                                                               company.
                                                                                                                               As
                                                                                                                               a
                                                                                                                               result
                                                                                                                               of
                                                                                                                               the
                                                                                                                               acquisition
                                                                                                                               of
                                                                                                                               the
                                                                                                                               working
                                                                                                                               interest,
                                                                                                                               and
                                                                                                                               as
                                                                                                                               a
                                                                                                                               result
                                                                                                                               of
                                                                                                                               the
                                                                                                                               beginning
                                                                                                                               of
                                                                                                                               operations
                                                                                                                               (see
                                                                                                                               Item
                                                                                                                               5.06
                                                                                                                               below)
                                                                                                                               as
                                                                                                                               a
                                                                                                                               party
                                                                                                                               to
                                                                                                                               the
                                                                                                                               Participation
                                                                                                                               Agreement
                                                                                                                               and
                                                                                                                               AAPL
                                                                                                                               Form
                                                                                                                               610
                                                                                                                               operating
                                                                                                                               agreement
                                                                                                                               described
                                                                                                                               above
                                                                                                                               in
                                                                                                                               Item
                                                                                                                               1.01,
                                                                                                                               we
                                                                                                                               believe
                                                                                                                               Rancher
                                                                                                                               is
                                                                                                                               no
                                                                                                                               longer
                                                                                                                               a
                                                                                                                               shell
                                                                                                                               company.
                                                                                                                               Nevertheless,
                                                                                                                               if
                                                                                                                               the
                                                                                                                               operations
                                                                                                                               under
                                                                                                                               the
                                                                                                                               Participation
                                                                                                                               Agreement
                                                                                                                               and
                                                                                                                               the
                                                                                                                               operating
                                                                                                                               agreement
                                                                                                                               are
                                                                                                                               fruitless,
                                                                                                                               Rancher
                                                                                                                               may
                                                                                                                               become
                                                                                                                               a
                                                                                                                               shell
                                                                                                                               company
                                                                                                                               once
                                                                                                                               again.
FORM
10 INFORMATION
Item
1	Business
Rancher
incorporates by reference Form 10 Item 1, which was previously reported in its Annual Report on Form 10-K for the fiscal year
ending March 31, 2013, filed on June 25, 2013.
Item
1A
Risk Factors
Rancher
incorporates by reference Form 10 Item 1A, which was previously reported in its Quarterly Report on Form 10-Q for the fiscal quarter
ending June 30, 2013, filed on August 14, 2013.
Item
2	Financial Information
Rancher
incorporates by reference Form 10 Item 2, which was previously reported in its Annual Report on Form 10-K for the fiscal year
ending March 31, 2013, filed on June 25, 2013, and as it was previously reported in its Quarterly Report on Form 10-Q for the
fiscal quarter ending June 30, 2013, filed on August 14, 2013.
Item
3	Properties
Rancher
incorporates by reference Form 10 Item 3, which was previously reported in its Annual Report on Form 10-K for the fiscal year
ending March 31, 2013, filed on June 25, 2013. In addition:
(a)
The
                                                                                                                               leasehold
                                                                                                                               interests
                                                                                                                               in
                                                                                                                               which
                                                                                                                               Rancher
                                                                                                                               acquired
                                                                                                                               rights
                                                                                                                               on
                                                                                                                               October
                                                                                                                               7,
                                                                                                                               2013
                                                                                                                               as
                                                                                                                               a
                                                                                                                               result
                                                                                                                               of
                                                                                                                               the
                                                                                                                               payment
                                                                                                                               of
                                                                                                                               estimated
                                                                                                                               drilling
                                                                                                                               expenses,
                                                                                                                               are
                                                                                                                               located
                                                                                                                               in
                                                                                                                               Section
                                                                                                                               25
                                                                                                                               of
                                                                                                                               Township
                                                                                                                               6
                                                                                                                               North,
                                                                                                                               Range
                                                                                                                               90
                                                                                                                               West,
                                                                                                                               6th
                                                                                                                               P.M.,
                                                                                                                               Moffatt
                                                                                                                               County,
                                                                                                                               Colorado.
(b)
There
                                                                                                                               are
                                                                                                                               no
                                                                                                                               other
                                                                                                                               producing
                                                                                                                               oil
                                                                                                                               and
                                                                                                                               gas
                                                                                                                               wells
                                                                                                                               on
                                                                                                                               said
                                                                                                                               Section
                                                                                                                               25.
                                                                                                                               PetroShare
                                                                                                                               has
                                                                                                                               advised
                                                                                                                               Rancher
                                                                                                                               that
                                                                                                                               it
                                                                                                                               has
                                                                                                                               commenced
                                                                                                                               building
                                                                                                                               the
                                                                                                                               location
                                                                                                                               for
                                                                                                                               the
                                                                                                                               contemplated
                                                                                                                               wells.
(c)
The
                                                                                                                               properties
                                                                                                                               are
                                                                                                                               not
                                                                                                                               held
                                                                                                                               in
                                                                                                                               fee,
                                                                                                                               but
                                                                                                                               are
                                                                                                                               subject
                                                                                                                               to
                                                                                                                               standard
                                                                                                                               oil
                                                                                                                               and
                                                                                                                               gas
                                                                                                                               leases
                                                                                                                               which
                                                                                                                               provide
                                                                                                                               for
                                                                                                                               three
                                                                                                                               to
                                                                                                                               six
                                                                                                                               year
                                                                                                                               terms
                                                                                                                               (expiring
                                                                                                                               in
                                                                                                                               2014
                                                                                                                               through
                                                                                                                               2016)
                                                                                                                               unless
                                                                                                                               oil
                                                                                                                               and
                                                                                                                               gas
                                                                                                                               operations
                                                                                                                               are
                                                                                                                               continuing
                                                                                                                               at
                                                                                                                               the
                                                                                                                               expiration
                                                                                                                               of
                                                                                                                               the
                                                                                                                               term
                                                                                                                               of
                                                                                                                               the
                                                                                                                               lease.
                                                                                                                               Based
                                                                                                                               on
                                                                                                                               preliminary
                                                                                                                               title
                                                                                                                               work,
                                                                                                                               it
                                                                                                                               appears
                                                                                                                               that
                                                                                                                               PetroShare
                                                                                                                               owned
                                                                                                                               a
                                                                                                                               100%
                                                                                                                               working
                                                                                                                               interest
                                                                                                                               (approximately
                                                                                                                               78.3%
                                                                                                                               net
                                                                                                                               revenue
                                                                                                                               interest)
                                                                                                                               in
                                                                                                                               the
                                                                                                                               minerals
                                                                                                                               underlying
                                                                                                                               Section
                                                                                                                               25.
                                                                                                                               Section
                                                                                                                               25
                                                                                                                               has
                                                                                                                               had
                                                                                                                               five
                                                                                                                               wells
                                                                                                                               drilled
                                                                                                                               on
                                                                                                                               it
                                                                                                                               between
                                                                                                                               1956
                                                                                                                               and
                                                                                                                               1965.
                                                                                                                               Three
                                                                                                                               of
                                                                                                                               these
                                                                                                                               wells
                                                                                                                               produced
                                                                                                                               from
                                                                                                                               the
                                                                                                                               Niobrara
                                                                                                                               and
                                                                                                                               two
                                                                                                                               produced
                                                                                                                               from
                                                                                                                               the
                                                                                                                               Trout
                                                                                                                               Creek
                                                                                                                               formation.
                                                                                                                               The
                                                                                                                               last
                                                                                                                               well
                                                                                                                               produced
                                                                                                                               until
                                                                                                                               1998.
                                                                                                                               Oil
                                                                                                                               was
                                                                                                                               produced
                                                                                                                               from
                                                                                                                               the
                                                                                                                               Niobrara
                                                                                                                               formation,
                                                                                                                               while
                                                                                                                               the
                                                                                                                               gas
                                                                                                                               was
                                                                                                                               produced
                                                                                                                               from
                                                                                                                               both
                                                                                                                               the
                                                                                                                               Niobrara
                                                                                                                               and
                                                                                                                               Trout
                                                                                                                               Creek
                                                                                                                               formations.
                                                                                                                               The
                                                                                                                               producing
                                                                                                                               field
                                                                                                                               in
                                                                                                                               this
                                                                                                                               area
                                                                                                                               is
                                                                                                                               known
                                                                                                                               as
                                                                                                                               the
                                                                                                                               Buck
                                                                                                                               Peak
                                                                                                                               field,
                                                                                                                               which
                                                                                                                               is
                                                                                                                               the
                                                                                                                               largest
                                                                                                                               producing
                                                                                                                               Niobrara
                                                                                                                               oil
                                                                                                                               field
                                                                                                                               in
                                                                                                                               the
                                                                                                                               Sand
                                                                                                                               Wash
                                                                                                                               basin.
                                                                                                                               While
                                                                                                                               there
                                                                                                                               has
                                                                                                                               been
                                                                                                                               successful
                                                                                                                               production
                                                                                                                               from
                                                                                                                               this
                                                                                                                               field
                                                                                                                               in
                                                                                                                               the
                                                                                                                               past,
                                                                                                                               there
                                                                                                                               can
                                                                                                                               be
                                                                                                                               no
                                                                                                                               assurance
                                                                                                                               that
                                                                                                                               the
                                                                                                                               planned
                                                                                                                               drilling
                                                                                                                               operations
                                                                                                                               will
                                                                                                                               be
                                                                                                                               successful
                                                                                                                               or
                                                                                                                               result
                                                                                                                               in
                                                                                                                               the
                                                                                                                               commercial
                                                                                                                               production
                                                                                                                               of
                                                                                                                               oil
                                                                                                                               or
                                                                                                                               natural
                                                                                                                               gas.
Item
4	Security Ownership of Certain Beneficial Owners and Management
Rancher
incorporates by reference Form 10 Item 4, which was previously reported in its Annual Report on Form 10-K for the fiscal year
ending March 31, 2013, filed on June 25, 2013.
Item
5	Directors and Executive Officers
Rancher
incorporates by reference Form 10 Item 5, which was previously reported in its Annual Report on Form 10-K for the fiscal year
ending March 31, 2013, filed on June 25, 2013.
Item
6	Executive Compensation
Rancher
incorporates by reference Form 10 Item 6, which was previously reported in its Annual Report on Form 10-K for the fiscal year
ending March 31, 2013, filed on June 25, 2013.
Item
7	Certain Relationships and Related Transactions, and Director Independence
Rancher
incorporates by reference Form 10 Item 7, which was previously reported in its Annual Report on Form 10-K for the fiscal year
ending March 31, 2013, filed on June 25, 2013.
Item
8	Legal Proceedings
Rancher
incorporates by reference Form 10 Item 8, which was previously reported in its Annual Report on Form 10-K for the fiscal year
ending March 31, 2013, filed on June 25, 2013.
Item
9	Market Price of and Dividends on the Registrant's Common Equity and Related Stockholder Matters
Rancher
incorporates by reference Form 10 Item 9, which was previously reported in its Annual Report on Form 10-K for the fiscal year
ending March 31, 2013, filed on June 25, 2013.
Item
10	Recent Sales of Unregistered Securities
Rancher
incorporates by reference Form 10 Item 10, which was previously reported in its Annual Report on Form 10-K for the fiscal year
ending March 31, 2013, filed on June 25, 2013.
Item
11	Description of Registrant's Securities
Rancher
is authorized to issue an aggregate of 275,000,000 shares of common stock, par value $0.0001 per share. After the acquisition
of the leasehold working interests described above in Item 2.01, 119,862,791 shares were outstanding. Rancher's common stock
is traded on the OTCQB.
Common
Stock
All
outstanding shares of the Company's common stock are of the same class and have equal rights and attributes. There is no
preferred stock. Dividends may be declared by the board of directors out of Rancher's funds to the extent and in the manner
permitted by law.
Voting.
The holders of Rancher's common stock are entitled to one (1) vote for each share held of record, and each fractional
share shall be entitled to a corresponding fractional vote on each matter submitted to a vote of the stockholders on which the
holders of the common sstock are entitled to vote. There is no cumulative voting allowed in the election of directors. The affirmative
vote of a majority of the common stock represented at a stockholders' meeting and entitled to vote on the subject matter
shall be the act of the stockholders except to the extent the articles of incorporation or Nevada statutes require a greater percentage
of vote such as in connection with the amendment of Rancher's articles of incorporation (N.R.S. § 78.390(1)(c)), a
control share acquisition (such as the merger, N.R.S. § 78.3791), or removal of directors (N.R.S. § 78.335).
Preemptive
Rights
. No stockholder of Rancher or any person with the right to convert any security or obligation to common stock of Rancher
shall have any preemptive right.
No
Assessment
. After the amount payable for the shares has been fully paid, the shares of Rancher shall not be assessable for
any purpose, and no stock issued as fully paid shall ever be assessable or assessed. No stockholder of Rancher is individually
liable for the debts or liabilities of Rancher.
No
Board Classification
. The Rancher board of directors is not classified or staggered, and the entire board may (pursuant to
N.R.S. § 78.335) be removed, with or without cause, upon a vote of two-thirds of the shares entitled to vote at a meeting
of the stockholders. To remove directors, a shareholders' meeting must be called specifically for that purpose.
Warrants,
Rights, and Options
As of the date of this report, options
to acquire 10,000,000 shares of common stock are outstanding.  These options are exercisable at $0.035 per share, and will
expire in October 2019.  All the options are exercisable within 60 days.
Item
12	Indemnification of Directors and Officers
Rancher
incorporates by reference Form 10 Item 12, which was previously reported in its Annual Report on Form 10-K for the fiscal year
ending March 31, 2013, filed on June 25, 2013.
Item
13	Financial Statements and Supplementary Data
Rancher
incorporates by reference Form 10 Item 13, which was previously reported in its Annual Report on Form 10-K for the fiscal year
ending March 31, 2013, filed on June 25, 2013, and as it was previously reported in its Quarterly Report on Form 10-Q for the
fiscal quarter ending June 30, 2013, filed on August 14, 2013.
Item
14	Changes in and Disagreements with Accountants on Accounting and Financial Disclosure
Rancher
incorporates by reference Form 10 Item 14, which was previously reported in its Annual Report on Form 10-K for the fiscal year
ending March 31, 2013, filed on June 25, 2013.
Item
15	Financial Statements and Exhibits
Rancher
incorporates by reference Form 10 Item 15, which was previously reported in its Annual Report on Form 10-K for the fiscal year
ending March 31, 2013, filed on June 25, 2013, and as it was previously reported in its Quarterly Report on Form 10-Q for the
fiscal quarter ending June 30, 2013, filed on August 14, 2013.
SECTION
5 – CORPORATE GOVERNANCE AND MANAGEMENT
Item
5.06	Change in Shell Company Status
Prior
to Rancher's entry into the Participation Agreement and AAPL Form 610 operating agreement, Rancher was a shell company.
As a result of entry into these agreements, the acquisition of assets as described in Item 2.01 above, and the addition of operations
under the agreements (as described above in Items 1.01 and 2.01 above), we believe Rancher is no longer a shell company. The material
terms of these agreements are described in Items 1.01 and 2.01 above, and are further disclosed in full by the attachment of the
Participation Agreement hereto as Exhibit 10.1. Rancher is a non-operator under the AAPL Form 610 operating agreement, the terms
of which are standard. If the wells contemplated under the Participation Agreement and the operating agreement are dry holes and
plugged and abandoned, Rancher may become a shell company once again.
SECTION
9 - FINANCIAL STATEMENTS AND EXHIBITS
Item
9.01 Financial Statements and Exhibits
(d)
Exhibits.
The
following is a complete list of exhibits filed as part of this Report. Exhibit numbers correspond to the numbers in the exhibit
table of Item 601 of Regulation S-K.
Exhibit No.
Description
10.1
Participation
                                                                                                     Agreement between Rancher
                                                                                                     Energy Corp. and PetroShare
                                                                                                     Corp. dated as of September
                                                                                                     30, 2013
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, hereunto duly authorized.
RANCHER
ENERGY CORP.
By:
/s/ Jon C. Nicolaysen
Jon
C. Nicolaysen, President and
Chief
Executive Officer
Date:
October 8, 2013