<HTML>
<HEAD>
     <TITLE></TITLE>
</HEAD>
<BODY STYLE="font: 10pt Times New Roman, Times, Serif">

<P STYLE="margin: 0; font-size: 10pt"></P>

<P STYLE="margin: 0; font-size: 10pt; line-height: normal; text-align: center">UNITED STATES</P>

<P STYLE="margin: 0; font-size: 10pt; line-height: normal; text-align: center">SECURITIES AND EXCHANGE COMMISSION</P>

<P STYLE="margin: 0; font-size: 10pt; line-height: normal; text-align: center">Washington, D.C. 20549</P>

<P STYLE="margin: 0; font-size: 10pt; line-height: normal; text-align: center">&nbsp;</P>

<P STYLE="margin: 0; font-size: 10pt; line-height: normal; text-align: center">FORM 8-K</P>

<P STYLE="margin: 0; font-size: 10pt; line-height: normal; text-align: center">&nbsp;</P>

<P STYLE="margin: 0; font-size: 10pt; line-height: normal; text-align: center">CURRENT REPORT</P>

<P STYLE="margin: 0; font-size: 10pt; line-height: normal; text-align: center">Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934</P>

<P STYLE="margin: 0; font-size: 10pt; line-height: normal; text-align: center">&nbsp;</P>

<P STYLE="margin: 0; font-size: 10pt; line-height: normal; text-align: center">Date of Report: May 6, 2014</P>

<P STYLE="margin: 0; font-size: 10pt; line-height: normal; text-align: center">&nbsp;</P>

<P STYLE="margin: 0; font-size: 10pt; line-height: normal; text-align: center"><FONT STYLE="font-size: 12pt"><B>RANCHER ENERGY
CORP.</B></FONT></P>

<P STYLE="margin: 0; font-size: 10pt; line-height: normal; text-align: center">(Exact name of registrant as specified
in its charter)</P>

<P STYLE="margin: 0; font-size: 10pt; line-height: normal; text-align: center">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font-size: 10pt; border-collapse: collapse; width: 100%">
<TR STYLE="vertical-align: top; font-size: 10pt">
    <TD STYLE="font-size: 10pt; text-align: center"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>Nevada</B></FONT></TD>
    <TD STYLE="width: 34%; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-size: 10pt; text-align: center"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>000-51425</B></FONT></TD>
    <TD STYLE="width: 33%; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-size: 10pt; text-align: center"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>98-0422451</B></FONT></TD></TR>
<TR STYLE="vertical-align: top; font-size: 10pt">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-size: 10pt; text-align: center"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">(State or other jurisdiction of</FONT></TD>
    <TD STYLE="font-size: 10pt; text-align: center"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">(Commission File</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-size: 10pt; text-align: center"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">(IRS Employer Identi-</FONT></TD></TR>
<TR STYLE="vertical-align: top; font-size: 10pt">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-size: 10pt; text-align: center"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">of incorporation) </FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-size: 10pt; text-align: center"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Number)</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-size: 10pt; text-align: center"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">fication Number)</FONT></TD></TR>
</TABLE>
<P STYLE="margin-top: 0; margin-bottom: 0; font-size: 10pt; line-height: normal; text-align: center">&nbsp;</P>

<P STYLE="margin: 0; font-size: 10pt; line-height: normal; text-align: center"><B>P.O. Box 40, Henderson, Colorado 80640</B></P>

<P STYLE="margin: 0; font-size: 10pt; line-height: normal; text-align: center">(Address of Principal Executive Offices)
(Zip Code)</P>

<P STYLE="margin: 0; font-size: 10pt; line-height: normal; text-align: center">&nbsp;</P>

<P STYLE="margin: 0; font-size: 10pt; line-height: normal; text-align: center"><B>(303) 629-1125</B></P>

<P STYLE="margin: 0; font-size: 10pt; line-height: normal; text-align: center">Registrant's telephone number, including
area code</P>

<P STYLE="margin: 0; font-size: 10pt; line-height: normal; text-align: center">&nbsp;</P>

<P STYLE="margin: 0; font-size: 10pt; line-height: normal; text-align: center"><B>Not Applicable</B></P>

<P STYLE="margin: 0; font-size: 10pt; line-height: normal; text-align: center">(Former name or former address, if changed
since last report)</P>

<P STYLE="margin: 0; font-size: 10pt; line-height: normal">&nbsp;</P>

<P STYLE="margin: 0; font-size: 10pt; line-height: normal">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:</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font-size: 10pt; border-collapse: collapse; width: 100%">
<TR STYLE="vertical-align: top; font-size: 10pt">
    <TD STYLE="width: 10%; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="width: 90%; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-size: 10pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; font-size: 10pt">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; font-size: 10pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">[&nbsp;&nbsp;]</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-size: 10pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)</FONT></TD></TR>
<TR STYLE="vertical-align: top; font-size: 10pt">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-size: 10pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; font-size: 10pt">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; font-size: 10pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">[&nbsp;&nbsp;]&nbsp;&nbsp;</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-size: 10pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)</FONT></TD></TR>
<TR STYLE="vertical-align: top; font-size: 10pt">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-size: 10pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; font-size: 10pt">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; font-size: 10pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">[&nbsp;&nbsp;]</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-size: 10pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))</FONT></TD></TR>
<TR STYLE="vertical-align: top; font-size: 10pt">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-size: 10pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; font-size: 10pt">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; font-size: 10pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">[&nbsp;&nbsp;]</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; font-size: 10pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)</FONT></TD></TR>
<TR STYLE="vertical-align: top; font-size: 10pt">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-size: 10pt">&nbsp;</TD></TR>
</TABLE>

<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>

<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>

<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>

<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>

<P STYLE="margin-top: 0; margin-bottom: 0; border-bottom: Black 1pt solid">&nbsp;</P>

<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>

<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>

<!-- Field: Page; Sequence: 1 -->
    <DIV STYLE="margin-bottom: 6pt"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%"><TR><TD STYLE="text-align: center; width: 100%">&nbsp;</TD></TR></TABLE></DIV>
    <DIV STYLE="page-break-before: always; margin-top: 6pt"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%"><TR><TD STYLE="text-align: center; width: 100%">&nbsp;</TD></TR></TABLE></DIV>
    <!-- Field: /Page -->

<P STYLE="margin: 0 0 10pt; font-size: 10pt; line-height: 115%">&nbsp;</P>

<P STYLE="margin: 0 0 10pt; font-size: 10pt; line-height: normal"><B>SECTION 8 &ndash; OTHER EVENTS</B></P>

<P STYLE="margin: 0 0 10pt; font-size: 10pt; line-height: normal"><B>Item 1.01&#9;Entry Into a Material Definitive Agreement.</B></P>

<P STYLE="margin: 0; font-size: 10pt; line-height: normal; text-align: justify">As previously reported on the Current
Report on Forms 8-K dated October 3, 2013 and December 9, 2013 and on the Quarterly Report on Form 10-Q for the period ended December
31, 2013 of Rancher Energy Corp. (&ldquo;Rancher&rdquo;), Rancher was a party to a Participation Agreement for the drilling of
two wells in the Niobrara formation in Moffat County in northwestern Colorado, named Kowach #3-25 and Voloshin #3-25. Also as previously
reported, Rancher and PetroShare Corp. (&ldquo;PetroShare&rdquo;) entered into a non-binding letter of intent by which the two
parties were negotiating and pursuing a business combination (the &ldquo;LOI&rdquo;).</P>

<P STYLE="margin: 0; font-size: 10pt; line-height: normal; text-align: justify">&nbsp;</P>

<P STYLE="margin: 0; font-size: 10pt; line-height: normal; text-align: justify">On March 10, 2014 (as set forth in a
Current Report on Form 8-K of that date), PetroShare notified Rancher that Rancher owes $283,791.00 for its share of completion
costs of the two wells. Rancher currently has a substantial amount on deposit with PetroShare for costs relating to completion
of the wells. PetroShare also alleged that it would suspend Rancher&rsquo;s rights under the operating agreement for the two wells
if Rancher fails to pay its share of the costs by April 9, 2014, and that such failure may be considered to be Rancher&rsquo;s
election not to participate in the completion of the wells. Shortly thereafter, on March 12, 2014, PetroShare notified Rancher
in writing that PetroShare terminated the LOI and all negotiations for the proposed merger with Rancher.</P>

<P STYLE="margin: 0; font-size: 10pt; line-height: normal; text-align: justify">&nbsp;</P>

<P STYLE="margin: 0; font-size: 10pt; line-height: normal; text-align: justify">In a letter dated March 14, 2014, Rancher
made certain allegations with respect to PetroShare&rsquo;s actions, and the parties discussed various alternatives. On May 5,
2014, the parties entered into an agreement to settle their claims which required, among other things, payment of $100,000 (which
payment was received on May 6, 2014). The settlement agreement also requires payment by PetroShare to Rancher of $1,042,237 by
June 16, 2014, as well as mutual releases that become effective upon receipt of the final payment. The settlement agreement acknowledges
that neither Rancher nor PetroShare admits any liability to the other.</P>

<P STYLE="margin: 0; font-size: 10pt; line-height: normal; text-align: justify">&nbsp;</P>

<P STYLE="margin: 0; font-size: 10pt; line-height: normal; text-align: justify">Rancher is not conveying any properties
or assets to PetroShare, but (upon receipt of the final payment from PetroShare pursuant to the settlement agreement, of which
there can be no assurance) Rancher will be acknowledging that the Participation Agreement and Rancher&rsquo;s rights under the
related joint operating agreement have been terminated.</P>

<P STYLE="margin: 0; font-size: 10pt; line-height: normal; text-align: justify">&nbsp;</P>

<P STYLE="margin: 0; font-size: 10pt; line-height: normal; text-align: justify">Because PetroShare
has not yet made the final payment to Rancher, the settlement agreement is not yet completed and therefore Rancher still has an
interest in the Kowach #3-25 and Voloshin #3-25 and related leases. Consequently Rancher is not currently a shell company as that
term is defined in the SEC&rsquo;s rules and regulations.</P>

<P STYLE="margin: 0; font-size: 10pt; line-height: normal; text-align: justify">&nbsp;</P>

<P STYLE="margin: 0; font-size: 10pt; line-height: normal; text-align: justify">Rancher intends to continue to consider
business opportunities to acquire in the future.</P>

<P STYLE="margin: 0; font-size: 10pt; line-height: normal; text-align: justify">&nbsp;</P>

<P STYLE="margin: 0; font-size: 10pt; line-height: normal; text-align: justify">&nbsp;</P>

<P STYLE="margin: 0; font-size: 10pt; line-height: normal; text-align: justify">&nbsp;</P>

<P STYLE="margin: 0; font-size: 10pt; line-height: normal; text-align: justify; border-bottom: Black 1pt solid">&nbsp;</P>

<P STYLE="margin: 0; font-size: 10pt; line-height: normal; text-align: justify">&nbsp;</P>


<!-- Field: Page; Sequence: 2 -->
    <DIV STYLE="margin-bottom: 6pt"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%"><TR><TD STYLE="text-align: center; width: 100%">&nbsp;</TD></TR></TABLE></DIV>
    <DIV STYLE="page-break-before: always; margin-top: 6pt"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%"><TR><TD STYLE="text-align: center; width: 100%">&nbsp;</TD></TR></TABLE></DIV>
    <!-- Field: /Page -->

<P STYLE="margin: 0 0 10pt; font-size: 10pt; line-height: 115%">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font-size: 10pt; border-collapse: collapse; width: 100%">
<TR STYLE="vertical-align: top; font-size: 10pt">
    <TD STYLE="width: 20%; padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify; line-height: 115%; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="width: 80%; padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify; line-height: 115%; font-size: 10pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; font-size: 10pt">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify; font-size: 10pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>Item 9.01</B></FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify; line-height: 115%; font-size: 10pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>Financial Statements and Exhibits</B></FONT></TD></TR>
<TR STYLE="vertical-align: top; font-size: 10pt">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify; line-height: 115%; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify; line-height: 115%; font-size: 10pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; font-size: 10pt">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; line-height: 115%; font-size: 10pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">(d)</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify; line-height: 115%; font-size: 10pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Exhibits</FONT></TD></TR>
<TR STYLE="vertical-align: top; font-size: 10pt">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify; line-height: 115%; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify; line-height: 115%; font-size: 10pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; font-size: 10pt">
    <TD STYLE="text-align: center; font-size: 10pt">1.</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify; line-height: 115%; font-size: 10pt">Settlement
    Agreement dated May 5, 2014</TD></TR>
<TR STYLE="vertical-align: top; font-size: 10pt">
    <TD STYLE="line-height: 115%; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="line-height: 115%; font-size: 10pt">&nbsp;</TD></TR>
</TABLE>
<P STYLE="margin: 0; font-size: 10pt; line-height: normal; text-align: center"><B>&nbsp;</B></P>

<P STYLE="margin: 0; font-size: 10pt; line-height: normal; text-align: center"><B>&nbsp;</B></P>

<P STYLE="margin: 0; font-size: 10pt; line-height: normal; text-align: center"><B>SIGNATURES</B></P>

<P STYLE="margin: 0; font-size: 10pt; line-height: normal">&nbsp;</P>

<P STYLE="margin: 0; font-size: 10pt; line-height: normal; text-align: justify">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.</P>

<P STYLE="margin: 0; font-size: 10pt; line-height: normal">&nbsp;</P>

<P STYLE="margin: 0; font-size: 10pt; line-height: normal"><B>RANCHER ENERGY CORP.</B></P>

<P STYLE="margin: 0; font-size: 10pt; line-height: normal">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font-size: 10pt; border-collapse: collapse; width: 100%">
<TR STYLE="vertical-align: top; font-size: 10pt">
    <TD STYLE="width: 5%; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-size: 10pt"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 95%; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-size: 10pt"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top; font-size: 10pt">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-size: 10pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">By:
    </FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-size: 10pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><I><U>/s/
    Jon C. Nicolaysen</U>__________</I></FONT></TD></TR>
<TR STYLE="vertical-align: top; font-size: 10pt">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-size: 10pt"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-size: 10pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Jon
    C. Nicolaysen, President and</FONT></TD></TR>
<TR STYLE="vertical-align: top; font-size: 10pt">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-size: 10pt"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-size: 10pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Chief
    Executive Officer</FONT></TD></TR>
</TABLE>
<P STYLE="margin: 0; font-size: 10pt; line-height: normal"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="margin: 0; font-size: 10pt; line-height: normal">Date: May 9, 2014</P>



<P STYLE="margin: 0; font-size: 10pt"></P>

</BODY>
</HTML>
[{"type": "8-K", "sequence": "1", "filename": "rancher8k562014.htm", "description": "FORM 8-K", "secsgml_size_bytes": 19551}]
{"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": "14829745"}, "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: May 6, 2014
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 Identi-
of incorporation)
Number)
fication 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 8 – OTHER EVENTS
Item 1.01	Entry Into a Material Definitive Agreement.
As previously reported on the Current
Report on Forms 8-K dated October 3, 2013 and December 9, 2013 and on the Quarterly Report on Form 10-Q for the period ended December
31, 2013 of Rancher Energy Corp. ("Rancher"), Rancher was a party to a Participation Agreement for the drilling of
two wells in the Niobrara formation in Moffat County in northwestern Colorado, named Kowach #3-25 and Voloshin #3-25. Also as previously
reported, Rancher and PetroShare Corp. ("PetroShare") entered into a non-binding letter of intent by which the two
parties were negotiating and pursuing a business combination (the "LOI").
On March 10, 2014 (as set forth in a
Current Report on Form 8-K of that date), PetroShare notified Rancher that Rancher owes $283,791.00 for its share of completion
costs of the two wells. Rancher currently has a substantial amount on deposit with PetroShare for costs relating to completion
of the wells. PetroShare also alleged that it would suspend Rancher's rights under the operating agreement for the two wells
if Rancher fails to pay its share of the costs by April 9, 2014, and that such failure may be considered to be Rancher's
election not to participate in the completion of the wells. Shortly thereafter, on March 12, 2014, PetroShare notified Rancher
in writing that PetroShare terminated the LOI and all negotiations for the proposed merger with Rancher.
In a letter dated March 14, 2014, Rancher
made certain allegations with respect to PetroShare's actions, and the parties discussed various alternatives. On May 5,
2014, the parties entered into an agreement to settle their claims which required, among other things, payment of $100,000 (which
payment was received on May 6, 2014). The settlement agreement also requires payment by PetroShare to Rancher of $1,042,237 by
June 16, 2014, as well as mutual releases that become effective upon receipt of the final payment. The settlement agreement acknowledges
that neither Rancher nor PetroShare admits any liability to the other.
Rancher is not conveying any properties
or assets to PetroShare, but (upon receipt of the final payment from PetroShare pursuant to the settlement agreement, of which
there can be no assurance) Rancher will be acknowledging that the Participation Agreement and Rancher's rights under the
related joint operating agreement have been terminated.
Because PetroShare
has not yet made the final payment to Rancher, the settlement agreement is not yet completed and therefore Rancher still has an
interest in the Kowach #3-25 and Voloshin #3-25 and related leases. Consequently Rancher is not currently a shell company as that
term is defined in the SEC's rules and regulations.
Rancher intends to continue to consider
business opportunities to acquire in the future.
Item 9.01
Financial Statements and Exhibits
(d)
Exhibits
1.
Settlement
    Agreement dated May 5, 2014
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: May 9, 2014