Document_and_Entity_Informatio
Document and Entity Information | 9 Months Ended | |
Sep. 30, 2014 | Nov. 03, 2014 | |
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-Q | ' |
Document Period End Date | 30-Sep-14 | ' |
Document Fiscal Year Focus | '2014 | ' |
Document Fiscal Period Focus | 'Q3 | ' |
Entity Filer Category | 'Smaller Reporting Company | ' |
Entity Common Stock Shares Outstanding | ' | 32,338,826 |
Consolidated_Balance_Sheets_Un
Consolidated Balance Sheets (Unaudited) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
Current Assets: | ' | ' |
Cash | $1,276,044 | $1,833,407 |
Receivable from sale of bidding rights and oil and gas properties | 3,300,042 | 3,500,042 |
Total current assets | 4,576,086 | 5,333,449 |
Investment in mineral properties | 57,769 | 117,351 |
Investments in unproved oil and gas properties | 353,169 | 1,609,889 |
Investment in oil refinery | ' | 109,452 |
Property and equipment | ' | 61,698 |
Other assets | 7,864 | 8,234 |
TOTAL ASSETS | 4,994,888 | 7,240,073 |
Current Liabilities: | ' | ' |
Accounts payable | 21,071 | 1,744 |
Accrued expenses | 118,045 | 144,000 |
Notes payable | 75,000 | 75,000 |
Liabilities for uncertain tax positions | 60,305 | 75,228 |
Total current liabilities | 274,421 | 295,972 |
Long-term deferred tax liability | 633,590 | 633,590 |
Long-term debt payable to related parties | ' | 150,655 |
Total liabilities | 908,011 | 1,080,217 |
Commitments and Contingencies | ' | ' |
Stockholders' Equity: | ' | ' |
Preferred stock $0.0001 par value-authorized 10,000,000 shares; no shares issued and outstanding at September 30, 2014 and December 31, 2013, respectively | ' | ' |
Common stock $0.0001 par value - authorized 250,000,000 shares; 32,338,826 shares issued and outstanding at September 30, 2014 and December 31, 2013, respectively | 3,233 | 3,233 |
Additional paid-in capital | 7,094,607 | 7,021,482 |
Accumulated deficit | -2,447,794 | -398,344 |
Accumulated other comprehensive loss | -563,169 | -466,515 |
Total stockholders' equity | 4,086,877 | 6,159,856 |
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $4,994,888 | $7,240,073 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parenthetical) (Unaudited) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
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 | 32,338,826 |
Common stock, shares outstanding | 32,338,826 | 32,338,826 |
Consolidated_Statements_of_Ope
Consolidated Statements of Operations (Unaudited) (USD $) | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | |
Costs and Expenses: | ' | ' | ' | ' |
General and administrative | $185,008 | $220,657 | $625,939 | $579,658 |
Impairment charge | 1,119,913 | ' | 1,119,913 | ' |
Total cost and expenses | 1,304,921 | 220,657 | 1,745,852 | 579,658 |
Loss from operations | -1,304,921 | -220,657 | -1,745,852 | -579,658 |
Other Income (Expense): | ' | ' | ' | ' |
Foreign exchange gain (loss) | -37,870 | -74,956 | -296,410 | -128,500 |
Interest expense | -712 | -3,238 | -7,188 | -28,433 |
Life insurance proceeds | ' | ' | ' | 1,000,249 |
Other Income (expense) | -38,582 | -78,194 | -303,598 | 843,316 |
Income (loss) before income taxes | -1,343,503 | -298,851 | -2,049,450 | 263,658 |
Provision for income taxes | ' | ' | ' | ' |
Net Income (loss) | ($1,343,503) | ($298,851) | ($2,049,450) | $263,658 |
Net income (loss) per common share: | ' | ' | ' | ' |
Basic | ($0.04) | ($0.01) | ($0.06) | $0.01 |
Diluted | ($0.04) | ($0.01) | ($0.06) | $0.01 |
Weighted average common shares - Basic | 32,338,826 | 32,097,783 | 32,338,826 | 32,086,064 |
Weighted average common shares - Diluted | 32,338,826 | 32,097,783 | 32,338,826 | 33,234,500 |
Consolidated_Statements_of_Com
Consolidated Statements of Comprehensive Income (Loss) (Unaudited) (USD $) | 9 Months Ended | |
Sep. 30, 2014 | Sep. 30, 2013 | |
Statement of Comprehensive Income [Abstract] | ' | ' |
Net earnings (loss) | ($2,049,450) | $263,658 |
Other comprehensive income (loss): | ' | ' |
Foreign currency translation adjustment | -96,654 | -165,726 |
Net change in other comprehensive income (loss) | -96,654 | -165,726 |
Comprehensive income (loss) | ($2,146,104) | $97,932 |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (Unaudited) (USD $) | 9 Months Ended | |
Sep. 30, 2014 | Sep. 30, 2013 | |
Cash flows from Operating Activities: | ' | ' |
Net income (loss) | ($2,049,450) | $263,658 |
Warrants issued for services | 73,125 | 40,624 |
Reserve for impairment | 1,119,913 | ' |
Adjustments to reconcile net earnings (loss) to net cash used in operating activities: | ' | ' |
Changes in operating assets and liabilities | -6,258 | -202,749 |
Net cash used in operating activities | -862,670 | 101,533 |
Cash flows from investing activities: | ' | ' |
Oil and gas properties exploration and development costs | ' | -39,054 |
Proceeds from sales of oil and gas properties and bidding rights | 200,000 | 500,000 |
Net cash provided by investing activities | 200,000 | 460,946 |
Cash flows from financing activities: | ' | ' |
Settlement of notes payable to related parties | -150,655 | -623,970 |
Proceeds from sales of common stock | ' | 60,480 |
Net cash provided by financing activities | -150,655 | -563,490 |
Effect of Exchange Rates on Cash | 255,962 | 157,973 |
Net increase (decrease) in cash | -557,363 | 156,962 |
Cash - Beginning of period | 1,833,407 | 1,949,896 |
Cash - End of period | 1,276,044 | 2,106,858 |
Changes in operating assets and liabilities consists of: | ' | ' |
(Increase) decrease in other assets | 370 | ' |
Increase (decrease) in accounts payable and accrued expenses | -6,628 | -202,749 |
Changes in assets and liabilities | -6,258 | -202,749 |
Supplemental disclosure of cash flow information: | ' | ' |
Cash paid for interest | 76,681 | 130,686 |
Cash paid for income taxes | ' | ' |
Basis_of_Presentation
Basis of Presentation | 9 Months Ended |
Sep. 30, 2014 | |
Basis of Presentation [Abstract] | ' |
BASIS OF PRESENTATION | ' |
1. BASIS OF PRESENTATION | |
The accompanying unaudited interim consolidated financial statements of Delta International Oil & Gas Inc. (“Delta” or the “Company”) have been prepared in accordance with accounting principles generally accepted in the United States of America and the rules of the Securities and Exchange Commission, and should be read in conjunction with the audited consolidated financial statements and notes thereto contained in the Company’s Annual Report on Form 10-K for the year ended December 31, 2013. In the opinion of management, all adjustments, consisting of normal recurring adjustments, necessary for a fair presentation of financial position and the results of operations for the interim periods presented have been reflected herein. The results of operations for interim periods are not necessarily indicative of the results to be expected for the full year. Notes to the financial statements which would substantially duplicate the disclosure contained in the audited financial statements for the most recent fiscal year end December 31, 2013 as reported on Form 10-K, have been omitted. |
Reclassifications
Reclassifications | 9 Months Ended |
Sep. 30, 2014 | |
Reclassifications [Abstract] | ' |
Reclassifications | ' |
2. Reclassifications | |
Certain prior year amounts in the consolidated financial statements have been reclassified to conform to the current year presentation. |
Earnings_Loss_Per_Share
Earnings (Loss) Per Share | 9 Months Ended |
Sep. 30, 2014 | |
Earnings (Loss) Per Share [Abstract] | ' |
EARNINGS (LOSS) PER SHARE | ' |
3. 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 three and nine months ended September 30, 2014 and 2013, there were 0, 0, 0 and 1,148,436, respectively of potentially dilutive common shares outstanding. |
Receivable_from_Sale_of_Biddin
Receivable from Sale of Bidding Rights and Oil and Gas Properties | 9 Months Ended |
Sep. 30, 2014 | |
Receivable from Sale of Bidding Rights and Oil and Gas Properties [Abstract] | ' |
RECEIVABLE FROM SALE OF BIDDING RIGHTS AND OIL AND GAS PROPERTIES | ' |
4. 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 entity of Valle de Lerma (the San Salvador, Libertador and Selva Maria concessions were awarded to other parties). | |
As of December 31, 2012, the Company had received deposits in the amount of $3,499,958 from PPL on account of its obligations under the Cooperation Agreement, and the remainder of the amounts owing have 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. During the third quarter of 2014, the Company received an additional payment of $200,000. |
Impariment_Charges_and_Loss_on
Impariment Charges and Loss on Sale of Unproved Oil and Gas Property | 9 Months Ended |
Sep. 30, 2014 | |
Impairment Charges and Loss on Sale of Unproved Oil and Gas Property [Abstract] | ' |
IMPAIRMENT CHARGES AND LOSS ON SALE OF UNPROVED OIL AND GAS PROPERTY | ' |
5. IMPAIRMENT CHARGES AND LOSS ON SALE OF UNPROVED OIL AND GAS PROPERTY | |
As of the end of October 2014, Argentina was in technical default on its external debt and, although negotiations to remedy this default are in process, in the Company’s belief, it is likely that this situation, however resolved, will lead the government to impose further restrictions on exports of capital from Argentina. | |
The likelihood of success of the Company must be considered in light of the expenses, difficulties, delays and unanticipated challenges encountered in connection with the operations of certain oil and gas concessions and other properties in Argentina. | |
Accordingly, during the quarter ending September 30, 2014, the Company recorded a $1.1 million impairment charge on the following of its properties and assets in Argentina. | |
We have incurred an impairment charge of $608,418 and written down to $-0- the carrying amount as of September 30, 2014, of SAHF’s 20% ownership interest in the oil and gas exploration rights to five geographically defined areas in the Salta Province of Northern Argentina. SAHF is designated as the operator of this concession. Exploratory drilling activities commenced in April 2010 on the Guemes Block and in July 2010, SAHF confirmed the potential existence of formations with sufficient hydrocarbons to make the well economically productive. In 2013, the initial majority working interest owner, Ketsal S.A., sold its share to another firm, which is evaluating whether to proceed further with investments in this concession. SAHF has determined to explore the possibility of selling their 20% interest in the concession to the new owners. | |
We have, for nominal consideration, disposed of our 10% concession interest in the carryover mode in the Jollin and Tonono oil and gas concessions in Northern Argentina, and incurred an impairment charge for this concession interest of $328,953, resulting in a carrying value of $-0-, in the three months ended September 30, 2014. | |
The Company no longer intends to pursue any of its own operating activities on its current oil and gas properties that are not in a carry-over mode. Accordingly, a further impairment charge of $58,498 was incurred with respect to swabbing rig equipment and other miscellaneous equipment we had purchased, and the carrying value of the equipment was written down to $-0-, as of September 30, 2014. | |
We owned at September 30, 2014, 33.33% of the Caimancito Refinery, located in the Jujuy Province, Argentina. Due to the cost of required rehabilitation work, currently this refinery is not being operated to produce gasoline or diesel fuel, and the partners have no current plans to activate the refinery given the costs of de-mothballing the facility and required equipment and transportation improvements. We have incurred an impairment charge of $87,740 and wrote down the carrying amount for this property to $-0- as of September 30, 2014. | |
In the fourth quarter of 2010, SAHF exercised a purchase option agreement with Minera Ansotana, SA to explore and develop columbite-tantalite (coltan) from a set of mines in Cachi, Salta. After reviewing various reports detailing the potential of these mines, the Company purchased 51% of the mine and immediately began sampling the property. We have not pursued any activities with respect to these properties, and we incurred an impairment charge of $36,304 and the carrying value of these properties was written down to $-0- as of September 30, 2014. |
Related_Party_Transactions
Related Party Transactions | 9 Months Ended |
Sep. 30, 2014 | |
Related Party Transactions [Abstract] | ' |
RELATED PARTY TRANSACTIONS | ' |
6. RELATED PARTY TRANSACTIONS | |
During the quarter ending September 30, 2014, the Company paid off notes payable owed to three shareholders in the amount of $150,655, plus accrued interest of approximately $77,000. |
Equity
Equity | 9 Months Ended |
Sep. 30, 2014 | |
Equity [Abstract] | ' |
EQUITY | ' |
7. EQUITY | |
On May 10, 2013, the Board of Directors of the Company authorized the issuance of a common stock purchase warrant effective May 1, 2013, to purchase 1,000,000 shares of common stock, on or before April 30, 2018, at an exercise price of $0.20 per share, to Phillips W. Smith, a director of the Company. The number of shares of common stock as to which the warrant is exercisable vests in 24 monthly installments on the final day of each month during the term of the warrant, commencing May 31, 2013, and is vested in full as of April 30, 2015. If Mr. Smith ceases to be an active member of the Company’s Board of Directors at any time in the two-year period May 1, 2013 through April 30, 2015, vesting will cease as of the last full month during which he was an active member of the Board. The fair value of these warrants was $195,000 on the date of grant determined using the Black-Scholes option pricing model with the following inputs: exercise price of $0.20, expected term of 5 years, stock price of $0.20, volatility of 195%, discount rate of 5% and no expected dividends. During the nine months ended September 30, 2014 and 2013, the Company expensed $73,125 and $40,625, respectively, related to this award. |
Commitments_and_Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2014 | |
Commitments And Contingencies (Abstract) | ' |
COMMITMENTS AND CONTINGENCIES | ' |
8. 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 $21,203 and $40,078 for the nine months ended September 30, 2014 and 2013, 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. |
Earnings_Loss_Per_Share_Detail
Earnings (Loss) Per Share (Details) | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | |
Earnings (Loss) Per Share [Abstract] | ' | ' | ' | ' |
Potential common shares | 0 | 0 | 0 | 1,148,436 |
Receivable_from_Sale_of_Biddin1
Receivable from Sale of Bidding Rights and Oil and Gas Properties (Details) (USD $) | 1 Months Ended | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2012 | Sep. 30, 2014 | Dec. 31, 2013 | 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 | ' | ' | ' |
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 | ' | $200,000 | $500,000 | ' |
Impariment_Charges_and_Loss_on1
Impariment Charges and Loss on Sale of Unproved Oil and Gas Property (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | |
Impairment Charges and Loss on Sale of Unproved Oil and Gas Property (Textual) | ' | ' | ' | ' |
Impairment charge | $1,119,913 | ' | $1,119,913 | ' |
Impairment charge written down | ' | ' | 0 | ' |
SAHF [Member] | ' | ' | ' | ' |
Impairment Charges and Loss on Sale of Unproved Oil and Gas Property (Textual) | ' | ' | ' | ' |
Impairment charge | ' | ' | 608,418 | ' |
Ownership percentage | ' | ' | 20.00% | ' |
Impairment charge written down | ' | ' | 0 | ' |
Jollin and Tonono [Member] | ' | ' | ' | ' |
Impairment Charges and Loss on Sale of Unproved Oil and Gas Property (Textual) | ' | ' | ' | ' |
Impairment charge | ' | ' | 328,953 | ' |
Ownership percentage | ' | ' | 10.00% | ' |
Impairment charge written down | ' | ' | 0 | ' |
Jollin and Tonono Two [Member] | ' | ' | ' | ' |
Impairment Charges and Loss on Sale of Unproved Oil and Gas Property (Textual) | ' | ' | ' | ' |
Impairment charge | ' | ' | 581,498 | ' |
Impairment charge written down | ' | ' | 0 | ' |
Caimancito Refinery [Member] | ' | ' | ' | ' |
Impairment Charges and Loss on Sale of Unproved Oil and Gas Property (Textual) | ' | ' | ' | ' |
Impairment charge | ' | ' | 87,740 | ' |
Ownership percentage | ' | ' | 33.33% | ' |
Impairment charge written down | ' | ' | 0 | ' |
Minera Ansotana [Member] | ' | ' | ' | ' |
Impairment Charges and Loss on Sale of Unproved Oil and Gas Property (Textual) | ' | ' | ' | ' |
Impairment charge | ' | ' | 36,304 | ' |
Ownership percentage | ' | ' | 51.00% | ' |
Impairment charge written down | ' | ' | $0 | ' |
Related_Party_Transactions_Det
Related Party Transactions (Details) (USD $) | 9 Months Ended | |
Sep. 30, 2014 | Dec. 31, 2013 | |
Shareholder | ||
Related Party Transactions (Textual) | ' | ' |
Long-term debt payable to related parties | ' | $150,655 |
Number of Shareholders | 3 | ' |
Accred interest | $77,000 | ' |
Equity_Details
Equity (Details) (USD $) | 9 Months Ended | 1 Months Ended | |
Sep. 30, 2014 | Sep. 30, 2013 | 10-May-13 | |
Warrant [member] | |||
Stockholders Equity Textuals | ' | ' | ' |
Warrants to purchase common shares | ' | ' | 1,000,000 |
Warrants exercise price | ' | ' | $0.20 |
Fair value of warrants | ' | ' | $195,000 |
Volatility rate | ' | ' | 195.00% |
Expected term | ' | ' | '5 years |
Stock price | ' | ' | $0.20 |
Discount rate | ' | ' | 5.00% |
Dividend rate | ' | ' | 0.00% |
Fair value assumptions, exercise price | ' | ' | $0.20 |
Share-based compensation expense | $73,125 | $40,625 | ' |
Vesting period description | ' | ' | 'The number of shares of common stock as to which the warrant is exercisable vests in 24 monthly installments on the final day of each month during the term of the warrant, commencing May 31, 2013, and is vested in full as of April 30, 2015. |
Commitments_and_Contingencies_
Commitments and Contingencies (Details) (USD $) | 9 Months Ended | |
Sep. 30, 2014 | Sep. 30, 2013 | |
sqft | ||
Commitments And Contingencies Textuals | ' | ' |
Area of leased office space | 3,551 | ' |
Lease expiration period | 'The lease expired in February 2013 and the Company has moved and has a two-year lease expiring in February 2015. | ' |
Rent expense | $21,203 | $40,078 |
Mr. Sherman [Member] | ' | ' |
Commitments And Contingencies Textuals | ' | ' |
Fixed annual salary | 300,000 | ' |
Decrease in fixed annual salary | $235,000 | ' |
Percentage of bonus | 15.00% | ' |