Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Mar. 31, 2014 | Jun. 30, 2013 | |
Document and Entity Information [Abstract] | ' | ' | ' |
Entity Registrant Name | 'Delta International Oil & Gas Inc. | ' | ' |
Entity Central Index Key | '0001112985 | ' | ' |
Amendment Flag | 'false | ' | ' |
Current Fiscal Year End Date | '--12-31 | ' | ' |
Document Type | '10-K | ' | ' |
Document Period End Date | 31-Dec-13 | ' | ' |
Document Fiscal Year Focus | '2013 | ' | ' |
Document Fiscal Period Focus | 'FY | ' | ' |
Entity Voluntary Filers | 'No | ' | ' |
Entity Well-Known Seasoned Issuer | 'No | ' | ' |
Entity Current Reporting Status | 'Yes | ' | ' |
Entity Filer Category | 'Smaller Reporting Company | ' | ' |
Entity Public Float | ' | ' | $3,454,539 |
Entity Common Stock Shares Outstanding | ' | 32,338,826 | ' |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
Current Assets: | ' | ' |
Cash | $1,833,407 | $1,949,896 |
Receivable from sale of bidding rights and oil and gas properties | 3,500,042 | 4,000,042 |
Total current assets | 5,333,449 | 5,949,938 |
Investment in mineral properties | 117,351 | 160,144 |
Investments in unproved oil and gas properties | 1,609,889 | 1,995,024 |
Investment in oil refinery | 109,452 | 145,494 |
Property and equipment | 61,698 | 76,293 |
Other assets | 8,234 | 8,850 |
TOTAL ASSETS | 7,240,073 | 8,335,743 |
Current Liabilities: | ' | ' |
Accounts payable | 1,744 | 141,582 |
Accrued expenses | 144,000 | 221,809 |
Notes payable | 75,000 | 75,000 |
Notes payable to related parties | ' | 623,970 |
Liabilities for uncertain tax positions | 75,228 | 100,000 |
Total current liabilities | 295,972 | 1,795,951 |
Long-term deferred tax liability | 633,590 | 633,590 |
Long-term debt payable to related parties | 150,655 | 150,655 |
Total liabilities | 1,080,217 | 2,580,196 |
Stockholders' Equity: | ' | ' |
Preferred stock $0.0001 par value-authorized 10,000,000 shares; no shares issued and outstanding at December 31, 2013 and 2012, respectively | ' | ' |
Common stock $0.0001 par value - authorized 250,000,000 shares; 32,338,826 and 32,010,826 shares issued and outstanding at December 31, 2013 and 2012, respectively | 3,233 | 3,201 |
Additional paid-in capital | 7,021,482 | 6,900,096 |
Accumulated deficit | -398,344 | -311,237 |
Accumulated other comprehensive loss | -466,515 | -202,923 |
Total stockholders' equity | 6,159,856 | 6,389,137 |
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $7,240,073 | $8,335,743 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parenthetical) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
Balance Sheets [Abstract] | ' | ' |
Preferred stock, par value | $0.00 | $0.00 |
Preferred stock, authorized | 10,000,000 | 10,000,000 |
Preferred stock, shares issued | ' | ' |
Preferred stock, shares outstanding | ' | ' |
Common stock, par value | $0.00 | $0.00 |
Common stock, authorized | 250,000,000 | 250,000,000 |
Common stock, shares issued | 32,338,826 | 32,010,826 |
Common stock, shares outstanding | 32,338,826 | 32,010,826 |
Consolidated_Statement_of_Oper
Consolidated Statement of Operations (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Statement Of Operations [Abstract] | ' | ' |
Sales | ' | $1,583 |
Costs and Expenses: | ' | ' |
General and administrative | 816,477 | 1,363,301 |
Total cost and expenses | 816,477 | 1,363,301 |
Loss from operations | -816,477 | -1,361,718 |
Other Income (Expense): | ' | ' |
Foreign exchange gain (loss) | -268,764 | -140,402 |
Interest expense | -41,431 | -50,111 |
Tax refund | 39,316 | ' |
Reversal of contested liabilities | ' | 134,254 |
Life insurance proceeds | 1,000,249 | ' |
Gain on sale of bidding right and unvevaluated oil and gas property | ' | 7,244,716 |
Net other income | 729,370 | 7,188,457 |
Income (loss) before income taxes | -87,107 | 5,826,739 |
Provision for income taxes | ' | 783,590 |
Net income (loss) | ($87,107) | $5,043,149 |
Net income (loss) per common share: | ' | ' |
Basic | $0 | $0.16 |
Diluted | $0 | $0.16 |
Weighted average common shares - Basic | 32,147,344 | 31,908,985 |
Weighted average common shares - Diluted | 32,147,344 | 34,828,569 |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flow (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Cash flows from Operating Activities: | ' | ' |
Net income | ($87,107) | $5,043,149 |
Adjustments to reconcile net earnings to net cash used in operating activities: | ' | ' |
Gain on sale of bidding rights and unevaluated oil and gas properties | ' | -7,244,716 |
Gain on settlement of contested liabilities | ' | -134,254 |
Stock based compensation | ' | 116,821 |
Issuance of warrants for services | 60,938 | ' |
Changes in operating assets and liabilities | -217,648 | 835,131 |
Net cash provided by (used in) operating activities | -243,817 | -1,383,869 |
Cash flows from investing activities: | ' | ' |
Oil and gas properties exploration and development costs | -115,070 | -251,576 |
Investment in oil refinery | ' | -161,995 |
Purchases of furniture and equipment | ' | -36,970 |
Proceeds from sales of oil and gas properties and bidding rights | 500,000 | 3,499,958 |
Investment in mineral properties | ' | -36,215 |
Net cash provided by investing activities | 384,930 | 3,013,202 |
Cash flows from financing activities: | ' | ' |
Settlement of notes payable to related parties | -623,970 | ' |
Principal payment on on long term debt | ' | -50,000 |
Proceeds from sales of common stock | 60,479 | ' |
Net cash used in financing activities | -563,491 | -50,000 |
Effect of Exchange Rates on Cash | 305,890 | 159,260 |
Net increase in cash | -116,489 | 1,738,593 |
Cash - Beginning of period | 1,949,896 | 211,303 |
Cash - End of period | 1,833,407 | 1,949,896 |
Changes in operating assets and liabilities consists of: | ' | ' |
(Increase) decrease in advances and other receivables | ' | 4,674 |
(Increase) decrease in other assets | ' | 692 |
Increase (decrease) in accounts payable and accrued expenses | -217,648 | 96,176 |
Increase (decrease) in liabilities for uncertain tax positions | ' | 100,000 |
Increase (decrease) in income taxes payable | ' | 633,589 |
Changes in assets and liabilities | -217,648 | 835,131 |
Supplemental disclosure of cash flow information: | ' | ' |
Cash paid for interest | 130,686 | ' |
Cash paid for income taxes | ' | 50,000 |
Supplementary information: | ' | ' |
Issuance of common stock for debt and accrued interest | ' | 213,750 |
Issuance of warrants for unproved oil and gas properties | ' | $18,999 |
Consolidated_Statements_of_Com
Consolidated Statements of Comprehensive Income (Loss) (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Statements Of Comprehensive Income Loss [Abstract] | ' | ' |
Net income (loss) | ($87,107) | $5,043,149 |
Other comprehensive income (loss): | ' | ' |
Foreign currency translation adjustment | -263,592 | -48,556 |
Net change in other comprehensive income (loss) | -263,592 | -48,556 |
Comprehensive income (loss) | ($350,699) | $4,994,593 |
Consolidated_Statements_of_Sto
Consolidated Statements of Stockholders Equity (USD $) | Total | Common Stock | Paid-in Capital | Accumulated Deficit | Accumulated Other Comprehensive Income |
Beginning Balance at Dec. 31, 2011 | $1,044,974 | $3,151 | $6,550,576 | ($5,354,386) | ($154,367) |
Beginning Balance, shares at Dec. 31, 2011 | ' | 31,507,026 | ' | ' | ' |
Issuance of common stock for services to related party (valued at $0.35 per share) | 3,500 | 1 | 3,499 | ' | ' |
Issuance of common stock for services to related party (valued at $0.35 per share), shares | ' | 10,000 | ' | ' | ' |
Issuance of common stock for partial settlement of note payable | 213,750 | 48 | 213,703 | ' | ' |
Issuance of common stock for partial settlement of note payable, shares | ' | 475,000 | ' | ' | ' |
Warrants issued to Trazik Management to prepare feasibility study report for potential business opportunity regarding alternative energy manufacturing business in India including tax incentives offered by the government of India and suitable locations. For 260,868 shares at $.42 per share | 109,561 | ' | 109,561 | ' | ' |
Warrants for 50,000 shares at $.22 per share issued to James D. Eger for geological services/interpretation/gathering information on Valle de Lerma and Selva Maria | 18,999 | ' | 18,999 | ' | ' |
Shares issued for services | 3,760 | 2 | 3,758 | ' | ' |
Shares issued for services, shares | ' | 18,800 | ' | ' | ' |
Net income | 5,043,149 | ' | ' | 5,043,149 | ' |
Foreign currency adjustment | -48,556 | ' | ' | ' | -48,556 |
Balance at Dec. 31, 2012 | 6,389,137 | 3,201 | 6,900,096 | -311,237 | -202,923 |
Balance, shares at Dec. 31, 2012 | ' | 32,010,826 | ' | ' | ' |
Issuance of shares for investment in mineral property | ' | 7 | -7 | ' | ' |
Issuance of shares for investment in mineral property, shares | ' | 76,000 | ' | ' | ' |
Sale of shares (valued at $0.24 per share) | 60,480 | 25 | 60,455 | ' | ' |
Sale of shares (valued at $0.24 per share), shares | ' | 252,000 | ' | ' | ' |
Warrants for 1,000,000 at $.20 issued to Chairman of the Board | 60,938 | ' | 60,938 | ' | ' |
Net income | -87,107 | ' | ' | -87,107 | ' |
Foreign currency adjustment | -263,592 | ' | ' | ' | -263,592 |
Balance at Dec. 31, 2013 | $6,159,856 | $3,233 | $7,021,482 | ($398,344) | ($466,515) |
Balance, shares at Dec. 31, 2013 | ' | 32,338,826 | ' | ' | ' |
Consolidated_Statements_of_Sto1
Consolidated Statements of Stockholders Equity (Parenthetical) (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Statements Of Stockholders' Equity [Abstract] | ' | ' |
Issuance of common stock for services to related party price per share | ' | $0.35 |
Warrants issued to Trazik Management for common stock, shares | ' | 260,868 |
Warrants issued to Trazik Management for common stock, price per share | ' | $0.42 |
Warrants issued to James D Ege for geological services/interpretation/gathering information, shares | ' | 50,000 |
Warrants issued to James D Ege for geological services/interpretation/gathering information, price per share | ' | $0.22 |
Warrants issued to Chairman of the Board for common stock, shares | 1,000,000 | ' |
Warrants issued to Chairman of the Board for common stock, price per share | $0.20 | ' |
Sale of shares, price per share | $0.24 | ' |
Description_of_Business_and_Su
Description of Business and Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2013 | |
Description Of Business and Summary Of Significant Accounting Policies [Abstract] | ' |
DESCRIPTION OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ' |
1. DESCRIPTION OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
ORGANIZATION | |
Delta Investment Oil & Gas Inc. (“Delta” or “the Company”) was incorporated in Delaware on November 17, 1999. Our name was changed from Delta Mutual, Inc. to our present name on October 29, 2013, by a filing by the Company in Delaware of a Certificate of Ownership, providing for the merger of the Company’s wholly-owned subsidiary, Delta International Oil and Gas Inc., into the Company, and in the merger, changing the Company’s name to Delta International Oil& Gas Inc. | |
The primary focus of the Company’s business is its South America Hedge Fund LLC (“SAHF”) subsidiary, which has investments in oil and gas concessions in Argentina and focuses on the energy sector, including the development and supply of energy and alternative energy sources in Latin America and North America. | |
PRINCIPLES OF CONSOLIDATION | |
The Company's financial statements include the accounts of all majority-owned subsidiaries where its ownership is more than 50 percent of the common stock. All material intercompany transactions and balances have been eliminated. | |
USE OF ESTIMATES | |
The preparation of the consolidated financial statements in conformity with accepted accounting principles generally accepted in the United States of America requires the Company to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses and related disclosure of contingent assets and liabilities. On an ongoing basis, the Company evaluates its estimates including, but not limited to, those related to such items as impairments of oil and gas properties, income tax exposures, accruals, depreciable/useful lives, allowance for doubtful accounts, and valuation allowances. The Company bases its estimates on historical experience and on various other assumptions that are believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying value of assets and liabilities that are not readily apparent from other sources. Actual results could differ from those estimates. | |
EVALUATION OF LONG-LIVED ASSETS | |
Oil and gas and mineral properties represent an important component of the Company’s total assets. Management reviews long-lived assets for potential impairment whenever significant events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Impairment exists when the carrying amount of the long-lived asset is not recoverable and exceeds its fair value. The carrying amount of a long-lived asset is not recoverable if it exceeds the sum of the estimated undiscounted cash flows expected to result from the use and eventual disposition of the asset. If, impairment exists, the resulting write-down would be the difference between fair market value of the long-lived asset and the related net book value. | |
INVESTMENTS | |
Investments in non-consolidated affiliates consist of the Company’s ownership interests in oil and gas development and exploration rights in Argentina, net of impairment losses if any. These investments were reclassified to unproved oil and gas properties after the Company was officially admitted into the joint ventures for each of the properties. | |
The Company evaluates these investments for impairment when indicators of potential impairment are present. Indicators of impairment include, but are not limited to, levels of oil and gas reserves, availability of pipeline (or other transportation) capacity and infrastructure and management of the operations in which the investments were made. The Company evaluates its equity method investments for impairment when events or changes in circumstances indicate, in management’s judgment, that the carrying value of such investments may have experienced an other-than-temporary decline in value. When evidence of loss in value has occurred, the Company compares fair value of the investment to its carrying value to determine whether impairment has occurred. If the estimated fair value is less than the carrying value and management considers the decline to be other than temporary, the excess of the carrying value over the estimated fair value is recognized as impairment in the consolidated financial statements. | |
OIL AND GAS PROPERTIES | |
The Company accounts for our oil and natural gas producing activities using the full cost method of accounting as prescribed by the United States Securities and Exchange Commission (SEC). Under this method, subject to a limitation based on estimated value, all costs incurred in the acquisition, exploration, and development of proved oil and natural gas properties, including internal costs directly associated with acquisition, exploration, and development activities, the costs of abandoned properties, dry holes, geophysical costs, and annual lease rentals are capitalized within a cost center. Costs of production and general and administrative corporate costs unrelated to acquisition, exploration, and development activities are expensed as incurred. | |
Costs associated with unevaluated properties are capitalized as oil and natural gas properties but are excluded from the amortization base during the evaluation period. When we determine whether the property has proved recoverable reserves or not, or if there is an impairment, the costs are transferred into the amortization base and thereby become subject to amortization. | |
The Company assesses all items classified as unevaluated property on at least an annual basis for inclusion in the amortization base. The Company assesses properties on an individual basis or as a group if properties are individually insignificant. The assessment includes consideration of the following factors, among others: intent to drill; remaining lease term; geological and geophysical evaluations; drilling results and activity; the assignment of proved reserves; and the economic viability of development if proved reserves are assigned. During any period in which these factors indicate that there would be impairment, or if proved reserves are assigned to a property, the cumulative costs incurred to date for such property are transferred to the amortizable base and are then subject to amortization. | |
Capitalized costs included in the amortization base are depleted using the unit of production method based on proved reserves. Depletion is calculated using the capitalized costs included in the amortization base, including estimated asset retirement costs, plus the estimated future expenditures to be incurred in developing proved reserves, net of estimated salvage values. | |
Beginning December 31, 2009, full cost companies use the un-weighted arithmetic average first day of the month price for oil and natural gas for the 12-month period preceding the calculation date. Prior to December 31, 2009, companies used the price in effect at the end of each accounting period and had the option, under certain circumstances, to elect to use subsequent commodity prices if they increased after the end of the accounting quarter. | |
Sales or other dispositions of oil and natural gas properties are accounted for as adjustments to capitalized costs, with no gain or loss recorded unless the ratio of cost to proved reserves would significantly change. | |
IMPAIRMENT | |
The net book value of all capitalized oil and natural gas properties within a cost center, less related deferred income taxes, is subject to a full cost ceiling limitation which is calculated quarterly. Under the ceiling limitation, costs may not exceed an aggregate of the present value of future net revenues attributable to proved oil and natural gas reserves discounted at 10 percent using current prices, plus the lower of cost or market value of unproved properties included in the amortization base, plus the cost of unevaluated properties, less any associated tax effects. Any excess of the net book value, less related deferred tax benefits, over the ceiling is written off as expense. Impairment expense recorded in one period may not be reversed in a subsequent period even though higher oil and gas prices may have increased the ceiling applicable to the subsequent period. | |
ASSET RETIREMENT OBLIGATION | |
The Company records the fair value of an asset retirement cost, and corresponding liability as part of the cost of the related long-lived asset and the cost is subsequently allocated to expense using a systematic and rational method. The Company records an asset retirement obligation to reflect our legal obligations related to future plugging and abandonment of our oil and natural gas wells and gas gathering systems. The Company estimates the expected cash flow associated with the obligation and discount the amount using a credit-adjusted, risk-free interest rate. At least annually, the Company reassesses the obligation to determine whether a change in the estimated obligation is necessary. The Company evaluates whether there are indicators that suggest the estimated cash flows underlying the obligation have materially changed. Should those indicators suggest the estimated obligation may have materially changed on an interim basis (quarterly), the Company will update our assessment accordingly. Additional retirement obligations increase the liability associated with new oil and natural gas wells and gas gathering systems as these obligations are incurred. | |
PROPERTY AND EQUIPMENT | |
Property and equipment are stated at cost. Depreciation is provided for by the straight-line method over the estimated useful lives of the related assets. The Company purchased oil field equipment during the fourth quarter of 2011. The Company did not provide any depreciation on this equipment for the years ending December 31, 2013 and 2012, as the equipment was not yet in service. | |
REVENUE RECOGNITION | |
The Company recognizes revenue when persuasive evidence of an arrangement exists, services have been rendered, the sales price is fixed or determinable, and collectability is reasonably assured. We follow the “sales method” of accounting for oil and natural gas revenue, so we recognize revenue on all natural gas or crude oil sold to purchasers, regardless of whether the sales are proportionate to our ownership in the property. Actual sales of gas are based on sales, net of the associated volume charges for processing fees and for costs associated with delivery, transportation, marketing, and royalties in accordance with industry standards. Operating costs and taxes are recognized in the same period in which revenue is earned. Severance and ad valorem taxes are reflected as a component of lease operating expense. | |
INCOME TAXES | |
The Company accounts for income taxes in accordance with the liability method. Under the liability method, deferred assets and liabilities are recognized based upon anticipated future tax consequences attributable to differences between financial statement carrying amounts of assets and liabilities and their respective tax bases. The Company establishes a valuation allowance to the extent that it is more likely than not that deferred tax assets will not be utilized against future taxable income. | |
UNCERTAIN TAX POSITIONS | |
The Company evaluates uncertain tax positions pursuant to ASC Topic 740-10-25 “Accounting for Uncertainty in Income Taxes,” which allows companies to recognize a tax benefit from an uncertain tax position only if it is more likely than not that the tax position will be sustained on examination by the taxing authorities based on the technical merits of the position. Those tax positions failing to qualify for initial recognition are recognized in the first interim period in which they meet the more likely than not standard, or are resolved through negotiation or litigation with the taxing authority, or upon expiration of the statute of limitations. De-recognition of a tax position that was previously recognized occurs when an entity subsequently determines that a tax position no longer meets the more likely than not threshold of being sustained. | |
At December 31, 2013 and 2012, the Company has approximately $75,000 and $100,000, respectively, of liabilities for uncertain tax positions. For the year ended December 31, 2012, the Company provided $100,000 for uncertain tax positions related to its investments in Argentina. Interpretation of taxation rules relating to investments in Argentina concessions may give rise to uncertain positions. In connection with the uncertain tax position, there was no interest or penalties recorded. | |
The Company is subject to ongoing tax exposures, examinations and assessments in various jurisdictions. Accordingly, the Company may incur additional tax expense based upon the outcomes of such matters. In addition, when applicable, the Company will adjust tax expense to reflect the Company’s ongoing assessments of such matters, which require judgment and can materially increase or decrease its effective rate as well as impact operating results. | |
The number of years with open tax audits varies depending on the tax jurisdiction. The Company’s major taxing jurisdictions include the United States (including applicable states). | |
EARNINGS (LOSS) PER SHARE | |
Basic earnings per share are computed by dividing net earnings by the weighted average number of common shares outstanding during the period. Diluted earnings per common share are computed by dividing net earnings by the weighted average number of common share and potential common share outstanding during the period. Potential common shares consist of outstanding common stock purchase warrants. For the year ended December 31, 2013 and 2012, there were 9,211,517 and 8,211,517, respectively of potentially dilutive common shares outstanding. | |
FOREIGN CURRENCY TRANSLATION | |
In 2013 and 2012, the functional currency for the Company’s primary foreign operations is the local currency. Assets and liabilities of foreign operations are translated at balance sheet date rates of exchange and income, expense and cash flow items are translated at the average exchange rate for the period. The functional currency in South America is the Argentine Peso. Translation adjustments are recorded in Accumulated Other Comprehensive Loss. | |
OTHER CRITICAL ACCOUNTING POLICIES | |
The Securities and Exchange Commission ("SEC") recently issued “Financial Reporting Release No. 60 Cautionary Advice About Critical Accounting Policies” (“FRR 60”), suggesting companies provide additional disclosures, discussion and commentary on their accounting policies considered most critical to its business and financial reporting requirements. FRR 60 considers an accounting policy to be critical if it is important to the Company’s financial condition and results of operations, and requires significant judgment and estimates on the part of management in the application of the policy. For a summary of the Company’s significant accounting policies, including the critical accounting policies, please refer to the accompanying notes to the financial statements. | |
STOCK-BASED COMPENSATION | |
The Company accounts for stock-based compensation to non-employees under ASC 718, "Compensation-Stock Compensation" ("ASC 718"). The compensation cost of the awards is based on the grant date fair-value of these awards and recognized over the requisite service period, which is typically the vesting period. For the years ended December 31, 2013 and 2012, the Company issued 0 and 28,800 shares, respectively, and recorded compensation expense in the amount of $0 and $7,280, respectively. The Company uses the Black-Scholes Option Pricing Model to determine the fair-value of stock options issued for compensation. | |
The Company accounts for non-employee share-based awards based upon ASC 505-50, “Equity-Based Payments to Non-Employees.” ASC 505-50 requires the costs of goods and services received in exchange for an award of equity instruments to be recognized using the fair value of the goods and services or the fair value of the equity award, whichever is more reliably measurable. The fair value of the equity award is determined on the measurement date, which is the earlier of the date that a performance commitment is reached or the date that performance is complete. Generally, our awards do not entail performance commitments. When an award vests over time such that performance occurs over multiple reporting periods, we estimate the fair value of the award as of the end of each reporting period and recognize an appropriate portion of the cost based on the fair value on that date. When the award vests, we adjust the cost previously recognized so that the cost ultimately recognized is equivalent to the fair value on the date the performance is complete. | |
For the years ended December 31, 2013 and 2012, the Company granted warrants to purchase 1,000,000 and 404,868, respectively of its common stock and recorded compensation expense of $60,938 and $109,561, respectively. The Company also recorded $18,999 in additions to oil and gas properties for the year ended December 31, 2012. | |
FAIR VALUE OF FINANCIAL MEASUREMENTS | |
FASB ASC 820, Fair Value Measurements and Disclosures, defines fair value as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. FASB ASC 820 also establishes a fair value hierarchy, which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. FASB ASC 820 describes three levels of inputs that may be used to measure fair value: | |
The Company utilizes the accounting guidance for fair value measurements and discloses for all financial assets and liabilities that are recognized or disclosed at fair value in the consolidated financial statements on a recurring basis during the reporting period. | |
The fair value is an exit price, representing the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The Company utilizes market data or assumptions that market participants would use in pricing the asset or liability. ASC 820, "Fair Value Measurements and Disclosures", establishes a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value. These tiers are defined as follows: | |
Level 1 - Observable inputs such as quoted market prices in active markets. | |
Level 2 - Inputs other then quoted prices in active markets that are either directly or indirectly observable. | |
Level 3 - Unobservable inputs about which little or no market data exists, therefore requiring an entity to develop its own assumptions. | |
As of December 31, 2013, there were no financial assets or liabilities that required disclosure. | |
NEW FINANCIAL ACCOUNTING STANDARDS | |
Accounting Standards Update No. 2013-02 – Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income (“ASU No. 2013-02”) | |
ASU No. 2013-02 requires disclosure of amounts reclassified out of accumulated other comprehensive income by component. In addition, an entity is required to present either on the face of the consolidated statements of operations or in the notes, significant amounts reclassified out of accumulated other comprehensive income by the respective line items of net earnings but only if the amount reclassified is required to be reclassified to net earnings in its entirety in the same reporting period. For amounts not reclassified in their entirety to net earnings, an entity is required to cross-reference to other disclosures that provide additional detail about those amounts. ASU No. 2013-02 is effective prospectively for the Company for annual and interim periods beginning January 1, 2013. The Company does not expect that the adoption of this update will have a material effect on its consolidated financial statements. |
Receivable_from_Sale_of_Biddin
Receivable from Sale of Bidding Rights and Oil and Gas Properties | 12 Months Ended |
Dec. 31, 2013 | |
Receivable From Sale Of Bidding Rights and Oil and Gas Properties [Abstract] | ' |
RECEIVABLE FROM SALE OF BIDDING RIGHTS AND OIL AND GAS PROPERTIES | ' |
2. RECEIVABLE FROM SALE OF BIDDING RIGHTS AND OIL AND GAS PROPERTIES | |
On March 30, 2012 the Company entered into the Cooperation Agreement with PPL. Under the Cooperation Agreement, PPL agreed to pay us $7,000,000 for certain exploration and exploitation rights to oil and gas deposits and certain bidding rights held by Delta on the following areas: Valle de Lerma in the province of Salta; San Salvador de Jujuy; Libertador General San Martin in the province of Jujuy; and Selva Maria in the province of Formosa. Pursuant to a separate Agreement dated March 31, 2012, the Company has agreed with PPL to assign and transfer 50% of SAHF's current ownership of the Tartagal and Morillo (i.e., a 9% interest in the concession) to PPL for a purchase price of $500,000. PPL has also agreed in an Undertaking to provide funds to the operating entities of Valle de Lerma and Selva Maria (the San Salvador and Libertador concessions were awarded to another party, whose bid exceeded that of the Company for these concessions), in the aggregate amount of up to $10,000,000 (Selva Maria is pending for approval from the government, which is standard procedure in Argentina). | |
As of December 31, 2012, the Company had received deposits in the amount of $3,499,958 from PPL on account of remainder of the proceeds has been recorded as a $4.0 million receivable from the sale of bidding rights and oil and gas properties. PPL is not current with the payment schedule set forth in the Cooperation Agreement, and the Company is in discussions with PPL to ensure that all payments provided for under the Cooperation Agreement are made within the time frame as required for concession financial commitments. In 2013, the Company received an additional payment of $500,000. |
Investment_in_Unproved_Oil_and
Investment in Unproved Oil and Gas Properties | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Investment In Unproved Oil and Gas Properties [Abstract] | ' | ||||||||||||
INVESTMENT IN UNPROVED OIL AND GAS PROPERTIES | ' | ||||||||||||
3. INVESTMENT IN UNPROVED OIL AND GAS PROPERTIES | |||||||||||||
a) As of December 31, 2013, the Company has a 10% ownership interest in the Jollin and Tonono oil and gas concessions located in Salta Province, Argentina. SAHF originally purchased an 18% carry-over interest in the Jollin and Tonono concessions on May 15, 2007, and subsequently increased its ownership to 23.5%, 9% of which was carry-over and 14.5% of which was working. SAHF in 2009 transferred 13.5% to Maxipetrol, under an arrangement where SAHF’s remaining 10% interest would be in a carry-over mode. SAHF received its foreign registration in Argentina and was admitted as a member of the joint venture on July 2, 2010. The joint venture is currently developing a future plan for continuing the exploration of the concessions. | |||||||||||||
b) As of December 31, 2013, the Company retains a 9% ownership interest in the Tartagal and Morillo oil and gas concessions located in Salta Province. | |||||||||||||
Tartagal Oriental - The Tartagal Oriental (“Tartagal”) exploration license area, extended to February 2014, covers 7,065 square kilometers in Salta Province, located in the northern part of Argentina. Exploration dates back into the mid 20th century, and 22 wells, some oil producers, have been drilled in Tartagal Oriental since the 1960s. Of the 22 wells that have been drilled in Tartagal Oriental in the past decades, several were judged to be workover candidates by New Times Energy Corporation Limited, Hong Kong, who purchased 60% of the ownership in the Tartagal and Morillo oil and gas concessions, and has invested approximately $60 million to date on geological studies, 2D and 3D seismic surveys on both blocks and two work-over drills and an exploratory well drill in Tartagal. Production from the two Campo Alcoba test wells commenced in 2011 and continued into the 2012 second quarter, and then shut down due to large quantities of water in the oil. A work over of one the two previously reopened wells is planned, and currently an analytic test to drill one more exploratory well is planned by the major partner. | |||||||||||||
Morillo - The Morillo exploration license area covers 3,518 square kilometers in Salta Province, contiguous with and south of the Tartagal Oriental license. Granted at the same time as Tartagal Oriental, the Morillo license was also extended to February 2014. In 2011, High Luck ordered a 274 square kilometer 3D seismic to be shot in the southwestern corner of the property because of a recent discovery made by Petrobras in an adjacent block. Once the data is processed, a decision will be made as to further drilling. | |||||||||||||
c) On February 6, 2008, SAHF purchased 40% of the oil and gas exploration rights to five geographically defined areas in the Salta Province of Northern Argentina for $697,000. During 2008, SAHF sold 50% of its rights in these concessions to a third party. Provided certain development activities are undertaken by owners, these exploration rights will remain in effect through the year 2015. The initial development costs and fees were paid by the majority owner and SAHF incurred no additional expenses related to this investment in 2008. | |||||||||||||
Exploratory drilling activities commenced in April 2010 on the Guemes Block and the first well was spud in September 2010. In July 2010, SAHF found positive traces of the presence of natural gas and hydrocarbons of low-density quality through its analysis of core samples. Well logging while drilling also confirmed the potential existence of formations with sufficient hydrocarbons to make the well economically productive. Production testing to verify the commercial sustainability of the well still needs to be done. Our partner that owned 80% of the concession sold its share to another firm, which is evaluating whether to proceed further with investments in this concession. | |||||||||||||
d) On August 10, 2011, the Company’s tender offer, made through our wholly-owned subsidiary, SAHF, for the ownership right to explore, and eventually, produce oil and natural gas in the block known as “Valle de Lerma” was declared the winning bid by the Salta provincial government. SAHF made the offer in a joint venture agreement with Remsa, PetroNexus and Grasta SA, a local mid-size gasoline refinery located in Buenos Aires, Argentina. | |||||||||||||
The Valle de Lerma block is located in the province of Salta in the northwestern region of Argentina and has an area of 5259 km2. SAHF has done the measurement and survey study and filed an environmental impact study, which was approved. Upon completion of the study it was determined that the actual well site was within the boundaries of the City of Salta, where government restrictions do not allow oil to be produced from this site. We are currently negotiating with the government to add an additional site to the concession area from among three sites adjacent to the concession area with similar wells. When the extension of the concession area is accomplished, we will commence work on the new site, following receipt of all government approvals. SAHF holds a majority of the license interest and is the responsible operator. The license allows SAHF 20 years to explore and produce hydrocarbons with a renewal option of ten more years. The Company will commence the Valle de Lerma well work over with a local rig company. The exploration terms are four years for the first period, three years for the second and two years for the last period. | |||||||||||||
Development of the block by the Company and its partners would be with with a local rig company; the target will be the Cretaceous zone, both in old and new wells. The exploration terms are four years for the first period, three years for the second and two years for the last period. | |||||||||||||
SAHF currently owns 60% of the rights to explore Valle de Lerma; Grasta owns 5%; PetroNEXUX owns 30%; and Remsa owns 5%. | |||||||||||||
The Company evaluated these investments for impairment and concluded that no loss in value occurred as of December 31, 2013. The following table summarizes the Company’s investments in these unproved oil and gas properties. One of the Company’s oil and gas producing properties began producing during the quarter ending September 30, 2012 and was subsequently capped. No depletion was recorded for the year, as the amount was not material. | |||||||||||||
Concession | Exploration | Total | |||||||||||
Investments | Rights | ||||||||||||
At January 1, 2012 | $ | 875,130 | $ | 1,240,150 | $ | 2,115,280 | |||||||
Drilling and development costs | 6,087 | 577,533 | 583,620 | ||||||||||
Sale of 50% interest in Tartagal & Morillo | (255,284 | ) | — | (255,284 | ) | ||||||||
Translation gain (loss) | (80,450 | ) | (368,142 | ) | (448,632 | ) | |||||||
At December 31, 2012 | 545,483 | 1,449,541 | 1,995,024 | ||||||||||
Concession payments | -- | 115,070 | 115,070 | ||||||||||
Translation gain (loss) | -135,129 | (365,076 | ) | (500,205 | ) | ||||||||
At December 31, 2013 | $ | 410,354 | $ | 1,119,535 | $ | 1,609,889 | |||||||
Investment_in_Oil_Refinery
Investment in Oil Refinery | 12 Months Ended |
Dec. 31, 2013 | |
Investment In Oil Refinery [Abstract] | ' |
INVESTMENT IN OIL REFINERY | ' |
4. INVESTMENT IN OIL REFINERY | |
On January 13, 2012, the Company, through its wholly owned subsidiary, SAHF, signed a purchase option agreement with Cruz Norte, SA to purchase 33.33% of the Caimancito Refinery, located in the Jujuy Province, Argentina. In March 2012, the purchase option agreement was finalized and signed and Cruz Norte transferred 1/3 of its stake in the refinery to SAHF. The purchase price of the refinery was $150,000 for the 33.33% of the outstanding shares of Caimancito Refinery; the purchase price, which was paid in full as of July 6, 2012. There were no operations in the refinery during the years ended December 31, 2013 and 2012. The Company accounts for the investment under the equity method. | |
Property_and_Equipment
Property and Equipment | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Property and Equipment [Abstract] | ' | ||||||||
PROPERTY AND EQUIPMENT | ' | ||||||||
5. PROPERTY AND EQUIPMENT | |||||||||
Property and equipment consists of: | |||||||||
December 31, | |||||||||
2013 | 2012 | ||||||||
Oilfield equipment | $ | 52,079 | $ | 66,525 | |||||
Furniture and equipment | 9,768 | 9,768 | |||||||
Less accumulated depreciation | --- | --- | |||||||
Total property and equipment | $ | 61,698 | $ | 76,293 | |||||
The oilfield equipment has not yet been placed in service. |
Related_Party_Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2013 | |
Related Party Transactions [Abstract] | ' |
Related Party Transactions | ' |
6. RELATED PARTY TRANSACTIONS | |
The Company issued notes to related parties. As of December 31, 2013 and 2012, the Company owed $-0- and $623,970, respectively, to certain directors of the Company. As of December 31, 2013 and 2012, the Company owes three shareholders $150,655. Interest expense to related parties for the years ended December 31, 2013 and 2012 amounted to $28,733 and $38,685, respectively. On May 13 and 20, 2013, the Company repaid to Malcolm Sherman, Egani, Inc. and certain other shareholders all outstanding advances by such shareholders to the Company, together with accrued interest, in the aggregate amount of $754,856. |
Debt
Debt | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Debt [Abstract] | ' | ||||||||
DEBT | ' | ||||||||
7. DEBT | |||||||||
December 31, | |||||||||
Short – term debt | 2013 | 2012 | |||||||
Note payable to third party, interest at 6%, due August 10, 2011 | 15,000 | 15,000 | |||||||
Note payable to third party interest at 6%, due September 20, 2007 | 60,000 | 60,000 | |||||||
Notes payable to third party, interest at 6%, due August 10, 2011. | -- | -- | |||||||
Total | $ | 75,000 | $ | 75,000 | |||||
Notes Payable to Related Parties | |||||||||
December 31, | |||||||||
2013 | 2012 | ||||||||
Notes payable to three investors, interest at 8%, due July 2014 | $ | 150,655 | $ | 150,655 | |||||
Notes payable to shareholders and related parties, interest at 6%, due May 1, 2013 | -- | 623,970 | |||||||
Total | 150,655 | 774,625 | |||||||
Less current portion | -- | 623,970 | |||||||
$ | 150,655 | $ | 150,655 | ||||||
The Company included accrued interest payable on the aforesaid notes in accrued expenses as of December 31, 2013 and 2012, respectively. On March 15, 2012, the $193,740 past due note payable and related accrued interest was settled by the agreement to pay $50,000 cash and the issuance of 475,000 shares of common stock valued at $213,750. The Company recorded a loss of $9,133 on the extinguishment of debt. Also during the three months ended June 30, 2012, the maturity dates of the past due notes to three investors in the amount of $150,655 were extended to July 2014. During the three months ended September 30, 2012, the due dates of the notes payable to stockholders and related parties were extended to December 31, 2013 and have subsequently been extended to May 1, 2013. |
Accrued_Expenses
Accrued Expenses | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Accrued Expenses [Abstract] | ' | ||||||||
ACCRUED EXPENSES | ' | ||||||||
8. ACCRUED EXPENSES | |||||||||
December 31, | |||||||||
2013 | 2012 | ||||||||
Accrued compensation | $ | 57,792 | $ | 46,020 | |||||
Accrued interest | 86,208 | 175,789 | |||||||
Total | $ | 144,000 | $ | 221,809 |
Income_Taxes
Income Taxes | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Income Taxes [Abstract] | ' | ||||||||
INCOME TAXES | ' | ||||||||
9. INCOME TAXES | |||||||||
The Company had not recognized a benefit for income taxes in the year ended December 31, 2013, since the realization of the benefit of these net operating losses carried forward is not certain in the foreseeable future. Domestic NOL carry-forwards were utilized in the computation of the provision for income taxes for the year ended December 31, 2012. | |||||||||
Due to the operating loss of the Company's Argentina subsidiary, the Company is not required to pay any income tax in Argentina. However, the Company has been subject to the personal assets tax or Minimum Presumptive Tax (MPIT) on the assets owned by SAHF that has a branch office in Argentina. | |||||||||
Personal assets tax or MPIT applies to individuals with assets owned as of December 31st each year. Taxpayers are required to pay the equivalent of 0.5% to 1.25% of the assets owned as of that date, depending on their global tax value if it exceeds a certain amount. For resident individuals, the tax applies on assets owned in Argentina and abroad. For non-resident individuals, the tax applies only on assets owned in Argentina. | |||||||||
The law presumes (without admitting evidence to rebut the presumption) that shares, quotas and other participation interests held in the capital of Argentine companies (including branches) that are held by non-resident entities are indirectly owned by foreign individuals. The tax amounts to 0.5% annually (based on the equity value according to the financial statements), which must be paid by the Argentine companies. | |||||||||
At December 31, 2013 and 2012, the Company has approximately $75,000 and $100,000, respectively, of liabilities for uncertain tax positions. For the year ended December 31, 2012, the Company provided $100,000 for uncertain tax positions related to its investments in Argentina. The value of that liability in US dollars has subsequently declined due to the decline in the Argentinian Peso versus the US Dollar. There were no other adjustments to this account. Interpretation of taxation rules relating to investments in Argentina concessions may give rise to uncertain tax positions. | |||||||||
The Company’s policy is to recognize interest and penalties related to unrecognized tax benefits arising from uncertain tax positions as a component of the current provision for income taxes. During the years ended December 31, 2013 and 2012, the Company recognized approximately $-0- and $10,000, respectively, of such interest and penalties in the consolidated statements of operations. | |||||||||
The Company has approximately $7,500 and $10,000 accrued for interest and penalties at December 31, 2013 and 2012, respectively, which is included in liability for uncertain tax positions in the Company’s consolidated balance sheet. | |||||||||
The Company’s total earnings (loss) before provision (benefit) for income taxes included earnings (loss) from domestic operations of $321,411 and $5,286,391 for 2013 and 2012, respectively, and loss from foreign operations of $(408,518) and $(243,242), for 2013 and 2012, respectively. | |||||||||
The provision (benefit) for income taxes consists of the following: | |||||||||
2013 | 2012 | ||||||||
Current: | |||||||||
Federal | $ | - | $ | 508,821 | |||||
Foreign | - | 100,000 | |||||||
State | - | 174,769 | |||||||
$ | - | $ | 783,590 | ||||||
Deferred | |||||||||
Federal | $ | - | $ | - | |||||
Foreign | - | - | |||||||
State | - | - | |||||||
$ | - | $ | - | ||||||
A reconciliation of taxes on income computed at the federal statutory rate to amounts provided as follows: | |||||||||
2013 | 2012 | ||||||||
Tax provision (benefit) computed at federal statutory rate | $ | (30,487 | ) | $ | 2,039,000 | ||||
Increase (decrease in taxes resulting from: | |||||||||
Permanent differences | (328,248 | ) | 47,590 | ||||||
Increase in liability for uncertain tax positions | - | 100,000 | |||||||
Utilization of net operating loss carryforward | - | (1,578,000 | ) | ||||||
State taxes - net of federal benefit | - | 175,000 | |||||||
Valuation allowance | 358,735 | - | |||||||
$ | - | $ | 783,590 | ||||||
Stockholders_Equity
Stockholders' Equity | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Stockholders' Equity [Abstract] | ' | ||||||||||||||||
STOCKHOLDERS' EQUITY | ' | ||||||||||||||||
10. STOCKHOLDERS' EQUITY | |||||||||||||||||
Preferred Stock | |||||||||||||||||
As of December 31, 2013, the board of directors had not authorized the issuance of any series of preferred stock. | |||||||||||||||||
Common Stock | |||||||||||||||||
The Company has in certain cases issued shares of common stock for services and repayment of debt and interest valued at fair market value at time of issuance. | |||||||||||||||||
For the years ended December 31, 2013 and 2012, the Company issued 0 and 28,800 shares, respectively, with fair values of $0 and $7,260, respectively, of its common stock to a related party for services performed. For the years ended December 31, 2013 and 2012, the Company also issued 0 and 475,000 shares, respectively, with fair values of $0 and $213,750, respectively, for the settlement of a note payable and accrued interest. | |||||||||||||||||
During the year ended December 31, 2013, the Company issued warrants to a related party to purchase 1,000,000 shares of its common stock at a price of $0.20 per share. The company recorded compensation expense of $60,938. | |||||||||||||||||
During the year ended December 31, 2012, the Company issued warrants to purchase 404,868 shares of its common stock for prices ranging from $0.20 to $0.42 per share. The warrants expire in 2019. The Company recorded compensation expense in the amount of $109,561 and additions to investments to unproved oil and gas properties in the amount of $18,999. | |||||||||||||||||
A summary of warrant activity is detailed below: | |||||||||||||||||
Weighted | Weighted | Aggregated | |||||||||||||||
Average | Average | ||||||||||||||||
Exercise | Contractual | Intrinsic | |||||||||||||||
Warrants | Price | Term | Value | ||||||||||||||
Outstanding, January 1, 2012 | 7,900,649 | $ | 0.21 | 6.00 years | $ | 228,019 | |||||||||||
Granted | 404,868 | 0.34 | 6 | 3,320 | |||||||||||||
Expired/Cancelled | (94,000 | ) | 0.2 | - | - | ||||||||||||
Exercised | - | - | - | - | |||||||||||||
Outstanding, December 31, 2012 | 8,211,517 | 0.21 | 5.04 | - | |||||||||||||
Granted | 1,000,000 | $ | 0.2 | 5 | 200,000 | ||||||||||||
Exercised | - | - | - | - | |||||||||||||
Outstanding, December 31, 2013 | 9,211,517 | $ | 0.21 | 4.13 years | $ | 691,052 | |||||||||||
Exercisable, December 31, 2013 | 8,524,017 | $ | 0.21 | 4.07 years | $ | 636,052 | |||||||||||
Commitments_and_Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2013 | |
Commitments and Contingencies [Abstract] | ' |
COMMITMENTS AND CONTINGENCIES | ' |
11. COMMITMENTS AND CONTINGENCIES | |
ECONOMIC AND POLITICAL RISK | |
The Company is exposed in the inherent risks for the foreseeable future of conducting business internationally. Language barriers, foreign laws and tariffs and taxation issues all have a potential effect on the Company’s ability to transact business. Political instability may increase the difficulties and costs of doing business. Accordingly, events resulting from changes in the economic and political climate could have a material effect on the Company. | |
OPERATING LEASES | |
The Company entered into a lease agreement in February 2012 for 3,551 square feet of office space for its principal office in Arizona. The lease expired in February 2013 and the Company has moved and has a two-year lease expiring in February 2015. | |
Rent expense was $49,352 and $88,564 for the years ended December 31, 2013 and 2012, respectively. | |
EMPLOYMENT AGREEMENTS | |
On April 26, 2010, the Company’s Board of Directors approved five-year term executive employment agreements (“Employment Agreements”) between the Company and Dr. Daniel R. Peralta, the Company’s former Chairman and Chief Executive Officer, and Malcolm W. Sherman, the Company’s Executive Vice President. Mr. Sherman’s Employment Agreement was effective March 23, 2010, and provides for a fixed annual salary of $300,000, which is limited by agreement of the executive and the Board to $235,000. Under the Employment Agreement, he is eligible for participation in a bonus pool with other senior executives, the quarterly bonus amounts being based on financial performance comparisons with prior fiscal quarters, beginning with the quarterly reports of the Company for the year 2006 and each subsequent year during the respective terms of each of the Employment Agreements. Such bonus will be pooled with those of other senior executives and computed based on a total bonus pool equal to 15% of the net profits of the Company as set forth in the Company’s SEC filings. | |
COUNTRY RISK | |
The Company has significant operations in the Argentina. The operating results of the Company may be adversely affected by changes in the political and social conditions in the Argentina and by changes in Argentinean government policies with respect to laws and regulations, anti-inflationary measures, currency conversion and remittance abroad, and rates and methods of taxation, among other things. The Company can give no assurance that those changes in political and other conditions will not result in have a material adverse effect upon the Company’s business and financial condition. | |
EXCHANGE RISK | |
The Company cannot guarantee the Argentinean Peso and US dollar exchange rate will remain steady, therefore the Company could post the same profit for two comparable periods and post higher or lower profit depending on exchange rate of Peso and US dollar. The exchange rate could fluctuate depending on changes in the political and economic environments without notice. |
Description_of_Business_and_Su1
Description of Business and Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2013 | |
Description Of Business and Summary Of Significant Accounting Policies [Abstract] | ' |
ORGANIZATION | ' |
ORGANIZATION | |
Delta Investment Oil & Gas Inc. (“Delta” or “the Company”) was incorporated in Delaware on November 17, 1999. Our name was changed from Delta Mutual, Inc. to our present name on October 29, 2013, by a filing by the Company in Delaware of a Certificate of Ownership, providing for the merger of the Company’s wholly-owned subsidiary, Delta International Oil and Gas Inc., into the Company, and in the merger, changing the Company’s name to Delta International Oil& Gas Inc. | |
The primary focus of the Company’s business is its South America Hedge Fund LLC (“SAHF”) subsidiary, which has investments in oil and gas concessions in Argentina and focuses on the energy sector, including the development and supply of energy and alternative energy sources in Latin America and North America. | |
PRINCIPLES OF CONSOLIDATION | ' |
PRINCIPLES OF CONSOLIDATION | |
The Company's financial statements include the accounts of all majority-owned subsidiaries where its ownership is more than 50 percent of the common stock. All material intercompany transactions and balances have been eliminated. | |
USE OF ESTIMATES | ' |
USE OF ESTIMATES | |
The preparation of the consolidated financial statements in conformity with accepted accounting principles generally accepted in the United States of America requires the Company to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses and related disclosure of contingent assets and liabilities. On an ongoing basis, the Company evaluates its estimates including, but not limited to, those related to such items as impairments of oil and gas properties, income tax exposures, accruals, depreciable/useful lives, allowance for doubtful accounts, and valuation allowances. The Company bases its estimates on historical experience and on various other assumptions that are believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying value of assets and liabilities that are not readily apparent from other sources. Actual results could differ from those estimates. | |
EVALUATION OF LONG-LIVED ASSETS | ' |
EVALUATION OF LONG-LIVED ASSETS | |
Oil and gas and mineral properties represent an important component of the Company’s total assets. Management reviews long-lived assets for potential impairment whenever significant events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Impairment exists when the carrying amount of the long-lived asset is not recoverable and exceeds its fair value. The carrying amount of a long-lived asset is not recoverable if it exceeds the sum of the estimated undiscounted cash flows expected to result from the use and eventual disposition of the asset. If, impairment exists, the resulting write-down would be the difference between fair market value of the long-lived asset and the related net book value. | |
INVESTMENTS | ' |
INVESTMENTS | |
Investments in non-consolidated affiliates consist of the Company’s ownership interests in oil and gas development and exploration rights in Argentina, net of impairment losses if any. These investments were reclassified to unproved oil and gas properties after the Company was officially admitted into the joint ventures for each of the properties. | |
The Company evaluates these investments for impairment when indicators of potential impairment are present. Indicators of impairment include, but are not limited to, levels of oil and gas reserves, availability of pipeline (or other transportation) capacity and infrastructure and management of the operations in which the investments were made. The Company evaluates its equity method investments for impairment when events or changes in circumstances indicate, in management’s judgment, that the carrying value of such investments may have experienced an other-than-temporary decline in value. When evidence of loss in value has occurred, the Company compares fair value of the investment to its carrying value to determine whether impairment has occurred. If the estimated fair value is less than the carrying value and management considers the decline to be other than temporary, the excess of the carrying value over the estimated fair value is recognized as impairment in the consolidated financial statements. | |
OIL AND GAS PROPERTIES | ' |
OIL AND GAS PROPERTIES | |
The Company accounts for our oil and natural gas producing activities using the full cost method of accounting as prescribed by the United States Securities and Exchange Commission (SEC). Under this method, subject to a limitation based on estimated value, all costs incurred in the acquisition, exploration, and development of proved oil and natural gas properties, including internal costs directly associated with acquisition, exploration, and development activities, the costs of abandoned properties, dry holes, geophysical costs, and annual lease rentals are capitalized within a cost center. Costs of production and general and administrative corporate costs unrelated to acquisition, exploration, and development activities are expensed as incurred. | |
Costs associated with unevaluated properties are capitalized as oil and natural gas properties but are excluded from the amortization base during the evaluation period. When we determine whether the property has proved recoverable reserves or not, or if there is an impairment, the costs are transferred into the amortization base and thereby become subject to amortization. | |
The Company assesses all items classified as unevaluated property on at least an annual basis for inclusion in the amortization base. The Company assesses properties on an individual basis or as a group if properties are individually insignificant. The assessment includes consideration of the following factors, among others: intent to drill; remaining lease term; geological and geophysical evaluations; drilling results and activity; the assignment of proved reserves; and the economic viability of development if proved reserves are assigned. During any period in which these factors indicate that there would be impairment, or if proved reserves are assigned to a property, the cumulative costs incurred to date for such property are transferred to the amortizable base and are then subject to amortization. | |
Capitalized costs included in the amortization base are depleted using the unit of production method based on proved reserves. Depletion is calculated using the capitalized costs included in the amortization base, including estimated asset retirement costs, plus the estimated future expenditures to be incurred in developing proved reserves, net of estimated salvage values. | |
Beginning December 31, 2009, full cost companies use the un-weighted arithmetic average first day of the month price for oil and natural gas for the 12-month period preceding the calculation date. Prior to December 31, 2009, companies used the price in effect at the end of each accounting period and had the option, under certain circumstances, to elect to use subsequent commodity prices if they increased after the end of the accounting quarter. | |
Sales or other dispositions of oil and natural gas properties are accounted for as adjustments to capitalized costs, with no gain or loss recorded unless the ratio of cost to proved reserves would significantly change. | |
IMPAIRMENT | ' |
IMPAIRMENT | |
The net book value of all capitalized oil and natural gas properties within a cost center, less related deferred income taxes, is subject to a full cost ceiling limitation which is calculated quarterly. Under the ceiling limitation, costs may not exceed an aggregate of the present value of future net revenues attributable to proved oil and natural gas reserves discounted at 10 percent using current prices, plus the lower of cost or market value of unproved properties included in the amortization base, plus the cost of unevaluated properties, less any associated tax effects. Any excess of the net book value, less related deferred tax benefits, over the ceiling is written off as expense. Impairment expense recorded in one period may not be reversed in a subsequent period even though higher oil and gas prices may have increased the ceiling applicable to the subsequent period. | |
ASSET RETIREMENT OBLIGATION | ' |
ASSET RETIREMENT OBLIGATION | |
The Company records the fair value of an asset retirement cost, and corresponding liability as part of the cost of the related long-lived asset and the cost is subsequently allocated to expense using a systematic and rational method. The Company records an asset retirement obligation to reflect our legal obligations related to future plugging and abandonment of our oil and natural gas wells and gas gathering systems. The Company estimates the expected cash flow associated with the obligation and discount the amount using a credit-adjusted, risk-free interest rate. At least annually, the Company reassesses the obligation to determine whether a change in the estimated obligation is necessary. The Company evaluates whether there are indicators that suggest the estimated cash flows underlying the obligation have materially changed. Should those indicators suggest the estimated obligation may have materially changed on an interim basis (quarterly), the Company will update our assessment accordingly. Additional retirement obligations increase the liability associated with new oil and natural gas wells and gas gathering systems as these obligations are incurred. | |
PROPERTY AND EQUIPMENT | ' |
PROPERTY AND EQUIPMENT | |
Property and equipment are stated at cost. Depreciation is provided for by the straight-line method over the estimated useful lives of the related assets. The Company purchased oil field equipment during the fourth quarter of 2011. The Company did not provide any depreciation on this equipment for the years ending December 31, 2013 and 2012, as the equipment was not yet in service. | |
REVENUE RECOGNITION | ' |
REVENUE RECOGNITION | |
The Company recognizes revenue when persuasive evidence of an arrangement exists, services have been rendered, the sales price is fixed or determinable, and collectability is reasonably assured. We follow the “sales method” of accounting for oil and natural gas revenue, so we recognize revenue on all natural gas or crude oil sold to purchasers, regardless of whether the sales are proportionate to our ownership in the property. Actual sales of gas are based on sales, net of the associated volume charges for processing fees and for costs associated with delivery, transportation, marketing, and royalties in accordance with industry standards. Operating costs and taxes are recognized in the same period in which revenue is earned. Severance and ad valorem taxes are reflected as a component of lease operating expense. | |
INCOME TAXES | ' |
INCOME TAXES | |
The Company accounts for income taxes in accordance with the liability method. Under the liability method, deferred assets and liabilities are recognized based upon anticipated future tax consequences attributable to differences between financial statement carrying amounts of assets and liabilities and their respective tax bases. The Company establishes a valuation allowance to the extent that it is more likely than not that deferred tax assets will not be utilized against future taxable income. | |
UNCERTAIN TAX POSITIONS | ' |
UNCERTAIN TAX POSITIONS | |
The Company evaluates uncertain tax positions pursuant to ASC Topic 740-10-25 “Accounting for Uncertainty in Income Taxes,” which allows companies to recognize a tax benefit from an uncertain tax position only if it is more likely than not that the tax position will be sustained on examination by the taxing authorities based on the technical merits of the position. Those tax positions failing to qualify for initial recognition are recognized in the first interim period in which they meet the more likely than not standard, or are resolved through negotiation or litigation with the taxing authority, or upon expiration of the statute of limitations. De-recognition of a tax position that was previously recognized occurs when an entity subsequently determines that a tax position no longer meets the more likely than not threshold of being sustained. | |
At December 31, 2013 and 2012, the Company has approximately $75,000 and $100,000, respectively, of liabilities for uncertain tax positions. For the year ended December 31, 2012, the Company provided $100,000 for uncertain tax positions related to its investments in Argentina. Interpretation of taxation rules relating to investments in Argentina concessions may give rise to uncertain positions. In connection with the uncertain tax position, there was no interest or penalties recorded. | |
The Company is subject to ongoing tax exposures, examinations and assessments in various jurisdictions. Accordingly, the Company may incur additional tax expense based upon the outcomes of such matters. In addition, when applicable, the Company will adjust tax expense to reflect the Company’s ongoing assessments of such matters, which require judgment and can materially increase or decrease its effective rate as well as impact operating results. | |
The number of years with open tax audits varies depending on the tax jurisdiction. The Company’s major taxing jurisdictions include the United States (including applicable states). | |
EARNINGS (LOSS) PER SHARE | ' |
EARNINGS (LOSS) PER SHARE | |
Basic earnings per share are computed by dividing net earnings by the weighted average number of common shares outstanding during the period. Diluted earnings per common share are computed by dividing net earnings by the weighted average number of common share and potential common share outstanding during the period. Potential common shares consist of outstanding common stock purchase warrants. For the year ended December 31, 2013 and 2012, there were 9,211,517 and 8,211,517, respectively of potentially dilutive common shares outstanding. | |
FOREIGN CURRENCY TRANSLATION | ' |
FOREIGN CURRENCY TRANSLATION | |
In 2013 and 2012, the functional currency for the Company’s primary foreign operations is the local currency. Assets and liabilities of foreign operations are translated at balance sheet date rates of exchange and income, expense and cash flow items are translated at the average exchange rate for the period. The functional currency in South America is the Argentine Peso. Translation adjustments are recorded in Accumulated Other Comprehensive Loss. | |
OTHER CRITICAL ACCOUNTING POLICIES | ' |
OTHER CRITICAL ACCOUNTING POLICIES | |
The Securities and Exchange Commission ("SEC") recently issued “Financial Reporting Release No. 60 Cautionary Advice About Critical Accounting Policies” (“FRR 60”), suggesting companies provide additional disclosures, discussion and commentary on their accounting policies considered most critical to its business and financial reporting requirements. FRR 60 considers an accounting policy to be critical if it is important to the Company’s financial condition and results of operations, and requires significant judgment and estimates on the part of management in the application of the policy. For a summary of the Company’s significant accounting policies, including the critical accounting policies, please refer to the accompanying notes to the financial statements. | |
STOCK-BASED COMPENSATION | ' |
STOCK-BASED COMPENSATION | |
The Company accounts for stock-based compensation to non-employees under ASC 718, "Compensation-Stock Compensation" ("ASC 718"). The compensation cost of the awards is based on the grant date fair-value of these awards and recognized over the requisite service period, which is typically the vesting period. For the years ended December 31, 2013 and 2012, the Company issued 0 and 28,800 shares, respectively, and recorded compensation expense in the amount of $0 and $7,280, respectively. The Company uses the Black-Scholes Option Pricing Model to determine the fair-value of stock options issued for compensation. | |
The Company accounts for non-employee share-based awards based upon ASC 505-50, “Equity-Based Payments to Non-Employees.” ASC 505-50 requires the costs of goods and services received in exchange for an award of equity instruments to be recognized using the fair value of the goods and services or the fair value of the equity award, whichever is more reliably measurable. The fair value of the equity award is determined on the measurement date, which is the earlier of the date that a performance commitment is reached or the date that performance is complete. Generally, our awards do not entail performance commitments. When an award vests over time such that performance occurs over multiple reporting periods, we estimate the fair value of the award as of the end of each reporting period and recognize an appropriate portion of the cost based on the fair value on that date. When the award vests, we adjust the cost previously recognized so that the cost ultimately recognized is equivalent to the fair value on the date the performance is complete. | |
For the years ended December 31, 2013 and 2012, the Company granted warrants to purchase 1,000,000 and 404,868, respectively of its common stock and recorded compensation expense of $60,938 and $109,561, respectively. The Company also recorded $18,999 in additions to oil and gas properties for the year ended December 31, 2012. | |
FAIR VALUE OF FINANCIAL MEASUREMENTS | ' |
FAIR VALUE OF FINANCIAL MEASUREMENTS | |
FASB ASC 820, Fair Value Measurements and Disclosures, defines fair value as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. FASB ASC 820 also establishes a fair value hierarchy, which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. FASB ASC 820 describes three levels of inputs that may be used to measure fair value: | |
The Company utilizes the accounting guidance for fair value measurements and discloses for all financial assets and liabilities that are recognized or disclosed at fair value in the consolidated financial statements on a recurring basis during the reporting period. | |
The fair value is an exit price, representing the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The Company utilizes market data or assumptions that market participants would use in pricing the asset or liability. ASC 820, "Fair Value Measurements and Disclosures", establishes a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value. These tiers are defined as follows: | |
Level 1 - Observable inputs such as quoted market prices in active markets. | |
Level 2 - Inputs other then quoted prices in active markets that are either directly or indirectly observable. | |
Level 3 - Unobservable inputs about which little or no market data exists, therefore requiring an entity to develop its own assumptions. | |
As of December 31, 2013, there were no financial assets or liabilities that required disclosure. | |
NEW FINANCIAL ACCOUNTING STANDARDS | ' |
NEW FINANCIAL ACCOUNTING STANDARDS | |
Accounting Standards Update No. 2013-02 – Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income (“ASU No. 2013-02”) | |
ASU No. 2013-02 requires disclosure of amounts reclassified out of accumulated other comprehensive income by component. In addition, an entity is required to present either on the face of the consolidated statements of operations or in the notes, significant amounts reclassified out of accumulated other comprehensive income by the respective line items of net earnings but only if the amount reclassified is required to be reclassified to net earnings in its entirety in the same reporting period. For amounts not reclassified in their entirety to net earnings, an entity is required to cross-reference to other disclosures that provide additional detail about those amounts. ASU No. 2013-02 is effective prospectively for the Company for annual and interim periods beginning January 1, 2013. The Company does not expect that the adoption of this update will have a material effect on its consolidated financial statements. |
Investment_in_Unproved_Oil_and1
Investment in Unproved Oil and Gas Properties (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Investment In Unproved Oil and Gas Properties [Abstract] | ' | ||||||||||||
Summary of investments in unproved oil and gas properties | ' | ||||||||||||
Concession | Exploration | Total | |||||||||||
Investments | Rights | ||||||||||||
At January 1, 2012 | $ | 875,130 | $ | 1,240,150 | $ | 2,115,280 | |||||||
Drilling and development costs | 6,087 | 577,533 | 583,620 | ||||||||||
Sale of 50% interest in Tartagal & Morillo | (255,284 | ) | — | (255,284 | ) | ||||||||
Translation gain (loss) | (80,450 | ) | (368,142 | ) | (448,632 | ) | |||||||
At December 31, 2012 | 545,483 | 1,449,541 | 1,995,024 | ||||||||||
Concession payments | -- | 115,070 | 115,070 | ||||||||||
Translation gain (loss) | -135,129 | (365,076 | ) | (500,205 | ) | ||||||||
At December 31, 2013 | $ | 410,354 | $ | 1,119,535 | $ | 1,609,889 | |||||||
Property_and_Equipment_Tables
Property and Equipment (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Property and Equipment [Abstract] | ' | ||||||||
Summary of property and equipment | ' | ||||||||
December 31, | |||||||||
2013 | 2012 | ||||||||
Oilfield equipment | $ | 52,079 | $ | 66,525 | |||||
Furniture and equipment | 9,768 | 9,768 | |||||||
Less accumulated depreciation | --- | --- | |||||||
Total property and equipment | $ | 61,698 | $ | 76,293 |
Debt_Tables
Debt (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Debt [Abstract] | ' | ||||||||
Schedule of short term debt | ' | ||||||||
December 31, | |||||||||
Short – term debt | 2013 | 2012 | |||||||
Note payable to third party, interest at 6%, due August 10, 2011 | 15,000 | 15,000 | |||||||
Note payable to third party interest at 6%, due September 20, 2007 | 60,000 | 60,000 | |||||||
Notes payable to third party, interest at 6%, due August 10, 2011. | -- | -- | |||||||
Total | $ | 75,000 | $ | 75,000 | |||||
Schedule of notes payable to related parties | ' | ||||||||
December 31, | |||||||||
2013 | 2012 | ||||||||
Notes payable to three investors, interest at 8%, due July 2014 | $ | 150,655 | $ | 150,655 | |||||
Notes payable to shareholders and related parties, interest at 6%, due May 1, 2013 | -- | 623,970 | |||||||
Total | 150,655 | 774,625 | |||||||
Less current portion | -- | 623,970 | |||||||
$ | 150,655 | $ | 150,655 |
Accrued_Expenses_Tables
Accrued Expenses (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Accrued Expenses [Abstract] | ' | ||||||||
Components of accrued expenses | ' | ||||||||
December 31, | |||||||||
2013 | 2012 | ||||||||
Accrued compensation | $ | 57,792 | $ | 46,020 | |||||
Accrued interest | 86,208 | 175,789 | |||||||
Total | $ | 144,000 | $ | 221,809 | |||||
Income_Taxes_Tables
Income Taxes (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Income Taxes [Abstract] | ' | ||||||||
Summary of provision (benefit) for income taxes | ' | ||||||||
2013 | 2012 | ||||||||
Current: | |||||||||
Federal | $ | - | $ | 508,821 | |||||
Foreign | - | 100,000 | |||||||
State | - | 174,769 | |||||||
$ | - | $ | 783,590 | ||||||
Deferred | |||||||||
Federal | $ | - | $ | - | |||||
Foreign | - | - | |||||||
State | - | - | |||||||
$ | - | $ | - | ||||||
Summary of reconciliation of taxes on income computed at federal statutory rate | ' | ||||||||
2013 | 2012 | ||||||||
Tax provision (benefit) computed at federal statutory rate | $ | (30,487 | ) | $ | 2,039,000 | ||||
Increase (decrease in taxes resulting from: | |||||||||
Permanent differences | (328,248 | ) | 47,590 | ||||||
Increase in liability for uncertain tax positions | - | 100,000 | |||||||
Utilization of net operating loss carryforward | - | (1,578,000 | ) | ||||||
State taxes - net of federal benefit | - | 175,000 | |||||||
Valuation allowance | 358,735 | - | |||||||
$ | - | $ | 783,590 | ||||||
Stockholders_Equity_Tables
Stockholders' Equity (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Stockholders' Equity [Abstract] | ' | ||||||||||||||||
Summary of the warrant activity | ' | ||||||||||||||||
Weighted | Weighted | Aggregated | |||||||||||||||
Average | Average | ||||||||||||||||
Exercise | Contractual | Intrinsic | |||||||||||||||
Warrants | Price | Term | Value | ||||||||||||||
Outstanding, January 1, 2012 | 7,900,649 | $ | 0.21 | 6.00 years | $ | 228,019 | |||||||||||
Granted | 404,868 | 0.34 | 6 | 3,320 | |||||||||||||
Expired/Cancelled | (94,000 | ) | 0.2 | - | - | ||||||||||||
Exercised | - | - | - | - | |||||||||||||
Outstanding, December 31, 2012 | 8,211,517 | 0.21 | 5.04 | - | |||||||||||||
Granted | 1,000,000 | $ | 0.2 | 5 | 200,000 | ||||||||||||
Exercised | - | - | - | - | |||||||||||||
Outstanding, December 31, 2013 | 9,211,517 | $ | 0.21 | 4.13 years | $ | 691,052 | |||||||||||
Exercisable, December 31, 2013 | 8,524,017 | $ | 0.21 | 4.07 years | $ | 636,052 | |||||||||||
Description_of_Business_and_Su2
Description of Business and Summary of Significant Accounting Policies (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Description of business and summary of significant accounting policies (Textual) | ' | ' |
Potential dilutive common shares outstanding | 9,211,517 | 8,211,517 |
Shares issued for stock-based compensation | 0 | 28,800 |
Compensation expense | $0 | $7,280 |
Warrant granted to purchase common stock | 1,000,000 | 404,868 |
Recorded compensation expense | 60,938 | 109,561 |
Additional investment in oil and gas properties | ' | 18,999 |
Ownership percentage | 50.00% | ' |
Percentage of maximum cost under the ceiling limitation | 10.00% | ' |
Liabilities for uncertain tax positions | 75,228 | 100,000 |
Argentina [Member] | ' | ' |
Description of business and summary of significant accounting policies (Textual) | ' | ' |
Liabilities for uncertain tax positions | ' | $100,000 |
Receivable_from_Sale_of_Biddin1
Receivable from Sale of Bidding Rights and Oil and Gas Properties (Details) (USD $) | 1 Months Ended | 12 Months Ended |
Mar. 31, 2012 | Dec. 31, 2012 | |
Receivable from Sale of Bidding Rights and Oil and Gas Properties (Textual) | ' | ' |
Proceed from sale of Principle Petroleum Ltd. | $7,000,000 | ' |
Percentage sale of share in SAHF's | 50.00% | ' |
Percentage of interest in the concession | 9.00% | ' |
Proceed from sale of share in SAHF's | 500,000 | ' |
Maximum limit to provide funds to the operating entities | 10,000,000 | ' |
Amount received as deposit for purchase exploration and exploitation rights | ' | 3,499,958 |
Receivable from the sale of bidding rights and oil and gas properties | ' | 4,000,000 |
Additional payments received from the sale of bidding rights and oil and gas properties | $500,000 | ' |
Investment_in_Unproved_Oil_and2
Investment in Unproved Oil and Gas Properties (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Summary of investments in unproved oil and gas properties | ' | ' |
Beginning Balance | $1,995,024 | $2,115,280 |
Drilling and development costs | ' | 583,620 |
Sale of 50% interest in Tartagal & Morillo | ' | -255,284 |
Concession payments | 115,070 | ' |
Translation gain (loss) | -500,205 | -448,632 |
Balance | 1,609,889 | 1,995,024 |
Concession Investments [Member] | ' | ' |
Summary of investments in unproved oil and gas properties | ' | ' |
Beginning Balance | 545,483 | 875,130 |
Drilling and development costs | ' | 6,087 |
Sale of 50% interest in Tartagal & Morillo | ' | -255,284 |
Concession payments | ' | ' |
Translation gain (loss) | -135,129 | -80,450 |
Balance | 410,354 | 545,483 |
Exploration Rights [Member] | ' | ' |
Summary of investments in unproved oil and gas properties | ' | ' |
Beginning Balance | 1,449,541 | 1,240,150 |
Drilling and development costs | ' | 577,533 |
Sale of 50% interest in Tartagal & Morillo | ' | ' |
Concession payments | 115,070 | ' |
Translation gain (loss) | -365,076 | -368,142 |
Balance | $1,119,535 | $1,449,541 |
Investment_in_Unproved_Oil_and3
Investment in Unproved Oil and Gas Properties (Details Textual) (USD $) | 12 Months Ended | 0 Months Ended | 12 Months Ended | 12 Months Ended | |||||||||||
Dec. 31, 2013 | Feb. 06, 2008 | Aug. 10, 2011 | Feb. 06, 2008 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | 15-May-07 | Dec. 31, 2009 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | |
Well | Valle de Lerma [Member] | SAHF [Member] | SAHF [Member] | Tartagal and Morillo [Member] | Jollin and Tonono [Member] | Jollin and Tonono [Member] | Maxipetrol [Member] | GRASTA [Member] | PetroNexus [Member] | Remsa [Member] | Morillo [Member] | Tartagal [Member] | High Luck [Member] | ||
sqkm | Well | Valle de Lerma [Member] | Well | sqkm | sqkm | sqkm | |||||||||
Well | |||||||||||||||
Investment in unproved oil and gas properties (Textual) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Ownership percentage | 50.00% | ' | ' | ' | ' | 9.00% | 10.00% | ' | ' | ' | ' | ' | ' | 60.00% | ' |
Carry-over interest | ' | ' | ' | ' | ' | ' | ' | 18.00% | 10.00% | ' | ' | ' | ' | ' | ' |
Increased in ownership interest | ' | ' | ' | ' | ' | ' | ' | 23.50% | ' | ' | ' | ' | ' | ' | ' |
Increased carry-over interest | ' | ' | ' | ' | ' | ' | ' | 9.00% | ' | ' | ' | ' | ' | ' | ' |
Working interest | ' | ' | ' | ' | ' | ' | ' | 14.50% | ' | ' | ' | ' | ' | ' | ' |
Transfer of ownership interest | ' | ' | ' | ' | ' | ' | ' | ' | 13.50% | ' | ' | ' | ' | ' | ' |
Area of block in province of salta in the northwestern region of Argentina (in Km2) | ' | ' | 5,259 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Exploration right owned | ' | ' | ' | 40.00% | 60.00% | ' | ' | ' | ' | 5.00% | 30.00% | 5.00% | ' | ' | ' |
Number of geographical defined area in the Salta Province of Northern Argentina | ' | ' | ' | 5 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Cash paid to purchase oil and gas exploration rights | ' | ' | ' | $697,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Percentage of right assign to third party | ' | ' | ' | 50.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
License area | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3,518 | 7,065 | 274 |
Number of wells | ' | ' | ' | ' | ' | 22 | ' | ' | ' | ' | ' | ' | ' | 22 | ' |
Ownership in Tartagal and Morillo | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $60,000,000 | ' |
Investment in unproved oil and gas properties (Additional Textual) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Percentage of oil and gas exploration rights to five blocks in the Salta Province of Northern Argentina | ' | 40.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Period to explore and produce hydrocarbons | '20 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Period for which license can be renewed | '10 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of exploratory well | 2 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Exploration term for first period | '4 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Exploration term for second period | '3 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Exploration term for last period | '2 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Investment_in_Oil_Refinery_Det
Investment in Oil Refinery (Details) (USD $) | Dec. 31, 2013 | Mar. 30, 2012 | Jan. 13, 2012 |
Cruz Norte, SA [Member] | Cruz Norte, SA [Member] | ||
Investment in oil refinery (Textual) | ' | ' | ' |
Ownership percentage | 50.00% | ' | 33.33% |
Purchase price of the refinery | ' | $150,000 | ' |
Property_and_Equipment_Details
Property and Equipment (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
Summery of property and equipment | ' | ' |
Less accumulated depreciation | ' | ' |
Total property and equipment | 61,698 | 76,293 |
Oilfield equipment [Member] | ' | ' |
Summery of property and equipment | ' | ' |
Property, plant and equipment, Gross | 52,079 | 66,525 |
Furniture and equipment [Member] | ' | ' |
Summery of property and equipment | ' | ' |
Property, plant and equipment, Gross | $9,768 | $9,768 |
Related_Party_Transactions_Det
Related Party Transactions (Details) (USD $) | 12 Months Ended | |||
Dec. 31, 2013 | Dec. 31, 2012 | 20-May-13 | 13-May-13 | |
Shareholder | ||||
Related Party Transactions (Textual) | ' | ' | ' | ' |
Number of Shareholders | 3 | ' | ' | ' |
Interest expenses related parties | $28,733 | $38,685 | ' | ' |
Aggregate amount of repayment | ' | ' | 754,856 | 754,856 |
Director [Member] | ' | ' | ' | ' |
Related Party Transactions (Textual) | ' | ' | ' | ' |
Amount owed to related parties | 0 | 623,970 | ' | ' |
Shareholders [Member] | ' | ' | ' | ' |
Related Party Transactions (Textual) | ' | ' | ' | ' |
Amount owed to related parties | $150,655 | $150,655 | ' | ' |
Debt_Details
Debt (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
Schedule of short term debt | ' | ' |
Notes payable, Total | $75,000 | $75,000 |
Note payable to third party, interest at 6%, due August 10, 2011 [Member] | ' | ' |
Schedule of short term debt | ' | ' |
Notes payable, Total | 15,000 | 15,000 |
Note payable to third party interest at 6%, due September 20, 2007 [Member] | ' | ' |
Schedule of short term debt | ' | ' |
Notes payable, Total | 60,000 | 60,000 |
Notes payable to third party, interest at 6%, due August 10, 2011 [Member] | ' | ' |
Schedule of short term debt | ' | ' |
Notes payable, Total | ' | ' |
Debt_Details_1
Debt (Details 1) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
Schedule of notes payable to related parties | ' | ' |
Total | $150,655 | $774,625 |
Less current portion | ' | 623,970 |
Non current portion | 150,655 | 150,655 |
Notes payable to three investors, interest at 8%, due July 2014 [Member] | ' | ' |
Schedule of notes payable to related parties | ' | ' |
Total | 150,655 | 150,655 |
Notes payable to shareholders and related parties, interest at 6%, due May 1, 2013 [Member] | ' | ' |
Schedule of notes payable to related parties | ' | ' |
Total | ' | $623,970 |
Debt_Details_Textual
Debt (Details Textual) (USD $) | 0 Months Ended | 3 Months Ended | 12 Months Ended | |
Mar. 15, 2012 | Jun. 30, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | |
Investors | ||||
Debt (Textual) | ' | ' | ' | ' |
Past due note payable and related accrued interest | $193,740 | ' | ' | ' |
Cash paid in settlement of notes payable and related accrued interest | 50,000 | ' | ' | ' |
Common stock issued in settlement of notes payable and related accrued interest, shares | ' | ' | 0 | 475,000 |
Common stock issued in settlement of notes payable and related accrued interest, value | 213,750 | ' | ' | ' |
Loss on extinguishment of debt | 9,133 | ' | ' | ' |
Number of investors | ' | 3 | ' | ' |
Extended maturity date of notes due to three investors | ' | 31-Jul-14 | ' | ' |
Notes payable | ' | ' | $150,655 | ' |
Notes payable to three investors, interest at 8%, due July 2014 [Member] | ' | ' | ' | ' |
Debt (Textual) | ' | ' | ' | ' |
Interest rate of notes payable | ' | ' | 8.00% | ' |
Maturity date of notes payable | ' | ' | 31-Jul-14 | ' |
Note payable to third party, interest at 6%, due August 10, 2011 [Member] | ' | ' | ' | ' |
Debt (Textual) | ' | ' | ' | ' |
Interest rate of notes payable | ' | ' | 6.00% | ' |
Maturity date of notes payable | ' | ' | 10-Aug-11 | ' |
Note payable to third party interest at 6%, due September 20, 2007 [Member] | ' | ' | ' | ' |
Debt (Textual) | ' | ' | ' | ' |
Interest rate of notes payable | ' | ' | 6.00% | ' |
Maturity date of notes payable | ' | ' | 20-Sep-07 | ' |
Notes payable to shareholders and related parties, interest at 6%, due May 1, 2013 [Member] | ' | ' | ' | ' |
Debt (Textual) | ' | ' | ' | ' |
Interest rate of notes payable | ' | ' | 6.00% | ' |
Maturity date of notes payable | ' | ' | 1-May-13 | ' |
Notes payable to third party, interest at 6%, due August 10, 2011 [Member] | ' | ' | ' | ' |
Debt (Textual) | ' | ' | ' | ' |
Interest rate of notes payable | ' | ' | 6.00% | ' |
Maturity date of notes payable | ' | ' | 10-Aug-11 | ' |
Accrued_Expenses_Details
Accrued Expenses (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
Components of accrued expenses | ' | ' |
Accrued compensation | $57,792 | $46,020 |
Accrued interest | 86,208 | 175,789 |
Total | $144,000 | $221,809 |
Income_Taxes_Details
Income Taxes (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Current: | ' | ' |
Federal | ' | $508,821 |
Foreign | ' | 100,000 |
State | ' | 174,769 |
Total current provision (benefit) for income taxes | ' | 783,590 |
Deferred | ' | ' |
Federal | ' | ' |
Foreign | ' | ' |
State | ' | ' |
Total deferred provision (benefit) for income taxes | ' | ' |
Income_Taxes_Details_1
Income Taxes (Details 1) (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Summary of reconciliation of taxes on income computed at federal statutory rate | ' | ' |
Tax provision (benefit) computed at federal statutory rate | ($30,487) | $2,039,000 |
Increase (decrease in taxes resulting from: | ' | ' |
Permanent differences | -328,248 | 47,590 |
Increase in liability for uncertain tax positions | ' | 100,000 |
Utilization of net operating loss carryforward | ' | -1,578,000 |
State taxes - net of federal benefit | ' | 175,000 |
Valuation allowance | 358,735 | ' |
Income tax expense (Benefit) | ' | $783,590 |
Income_Taxes_Details_Textual
Income Taxes (Details Textual) (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Income Taxes (Textual) | ' | ' |
Tax to be paid by taxpayers, Minimum | 0.50% | ' |
Tax to be paid by taxpayers, Maximum | 1.25% | ' |
Percentage of tax to be paid by Argentine companies | 0.50% | ' |
Liabilities for uncertain tax positions | $75,228 | $100,000 |
Recognized interest and penalties related to unrecognized tax benefits | 0 | 10,000 |
Accrued interest and penalties included in liability for uncertain tax positions | 7,500 | 10,000 |
Earnings (loss) from domestic operations before provision (benefit) for income taxes | 321,411 | 5,286,391 |
Loss from foreign operations before provision (benefit) for income taxes | ($408,518) | ($243,242) |
Stockholders_Equity_Details
Stockholders' Equity (Details) (Warrant [Member], USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Warrant [Member] | ' | ' |
Summary of the warrant activity | ' | ' |
Warrants Outstanding, Beginning Balance | 8,211,517 | 7,900,649 |
Warrants Granted | 1,000,000 | 404,868 |
Warrants Expired/Cancelled | ' | -94,000 |
Warrants Exercised | ' | ' |
Warrants Outstanding, Balance | 9,211,517 | 8,211,517 |
Warrants Exercisable, Balance | 8,524,017 | 8,211,517 |
Weighted Average Exercise Price, Beginning Balance | $0.21 | $0.21 |
Weighted Average Exercise Price - Granted | $0.20 | $0.34 |
Weighted Average Exercise Price - Expired/Cancelled | ' | $0.20 |
Weighted Average Exercise Price - Exercised | ' | ' |
Weighted Average Exercise Price, Balance | $0.21 | $0.21 |
Weighted Average Exercise Price, Exercisable Balance | $0.21 | $0.21 |
Weighted Average Contractual Term Opening | ' | '6 years |
Weighted Average Contractual Term Granted | '5 years | '6 years |
Weighted Average Contractual Term Ending | '4 years 1 month 17 days | '5 years 15 days |
Weighted Average Contractual Term, Exercisable | '4 years 26 days | ' |
Aggregated Intrinsic Value, Outstanding | ' | $228,019 |
Aggregate Intrinsic Value, Granted | 200,000 | 3,320 |
Aggregate Intrinsic Value, Expired/Cancelled | ' | ' |
Aggregate Intrinsic Value, Warrants Exercised | ' | ' |
Aggregate Intrinsic Value, Ending balance | 691,052 | ' |
Aggregated Intrinsic Value, Exercisable Balance | $636,052 | ' |
Stockholders_Equity_Details_Te
Stockholders' Equity (Details Textual) (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Stockholders' Equity (Textual) | ' | ' |
Common stock issued in settlement of notes payable and related accrued interest, shares | 0 | 475,000 |
Common stock issued in settlement of notes payable, fair value | $0 | $213,750 |
Company issued common stock to a related party for services performed, shares | 0 | 28,800 |
Company issued common stock to a related party for services performed, fair value | 0 | 7,260 |
Warrants expiration period | ' | '2019 |
Warrant granted to purchase common stock | 1,000,000 | 404,868 |
Share price of common stock, maximum | ' | $0.42 |
Share price of common stock, minimum | ' | $0.20 |
Share-based compensation expense | 60,938 | 109,561 |
Additional investment to unproved oil and gas properties | ' | $18,999 |
Warrants issued to related party | 1,000,000 | ' |
Warrants issued to related party, price per share | $0.20 | ' |
Commitments_and_Contingencies_
Commitments and Contingencies (Details Textual) (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
sqft | ||
Commitments and Contingencies (Textual) | ' | ' |
Area of office space | 3,551 | ' |
Lease expiration period | 'The lease expired in February 2013 and the Company has moved and has a month-to-monthtwo-year lease expiring in February 2015. | ' |
Rent expense | $49,352 | $88,564 |
Executive Vice President [Member] | ' | ' |
Commitments and Contingencies (Textual) | ' | ' |
Term of executive employment agreement | '5 years | ' |
Fixed annual salary Mr. Sherman's under employment agreement | 300,000 | ' |
Annual salary of Malcolm W. Sherman limited by agreement of the executive and the Board | $235,000 | ' |
Description of bonus given to employees | 'Bonus will be pooled with those of other senior executives and computed based on a total bonus pool equal to 15% of the net profits. | ' |