Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2015 | Nov. 16, 2015 | |
Document and Entity Information [Abstract] | ||
Entity Registrant Name | Delta International Oil & Gas Inc. | |
Entity Central Index Key | 1,112,985 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 | |
Document Type | 10-Q | |
Document Period End Date | Sep. 30, 2015 | |
Document Fiscal Year Focus | 2,015 | |
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, 2015 | Dec. 31, 2014 |
Current Assets: | ||
Cash | $ 775,083 | $ 1,206,177 |
Receivable from sale of bidding rights and oil and gas properties (net of allowance for doubtful accounts of $3,200,069 as of September 30, 2015 and December 31, 2014, respectively) | ||
Total current assets | $ 775,083 | $ 1,206,177 |
Investment in mineral properties | 51,451 | 55,023 |
Investments in unproved oil and gas properties | 314,545 | 336,383 |
Other assets | 6,368 | 6,368 |
TOTAL ASSETS | 1,147,447 | 1,603,951 |
Current Liabilities: | ||
Accounts payable | 15,248 | 13,679 |
Accrued expenses | 52,232 | 57,614 |
Notes payable | 26,906 | 15,000 |
Liabilities for uncertain tax positions | 25,760 | 27,549 |
Total current liabilities | 120,146 | 113,842 |
Total liabilities | $ 120,146 | $ 113,842 |
Commitments and Contingencies | ||
Stockholders' Equity: | ||
Preferred stock $0.0001 par value-authorized 10,000,000 shares; no shares issued and outstanding at September 30, 2015 and December 31, 2014, respectively | ||
Common stock $0.0001 par value - authorized 250,000,000 shares; 32,338,826 shares issued and outstanding at September 30, 2015 and December 31, 2014, respectively | $ 3,233 | $ 3,233 |
Additional paid-in capital | 7,151,481 | 7,118,982 |
Accumulated deficit | (5,539,293) | (5,100,542) |
Accumulated other comprehensive loss | (588,120) | (531,564) |
Total stockholders' equity | 1,027,301 | 1,490,109 |
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ 1,147,447 | $ 1,603,951 |
Consolidated Balance Sheets (U3
Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($) | Sep. 30, 2015 | Dec. 31, 2014 |
Statement of Financial Position [Abstract] | ||
Net of allowance for doubtful accounts | $ 3,200,069 | $ 3,200,069 |
Preferred stock, par value | $ 0.0001 | $ 0.0001 |
Preferred stock, shares authorized | 10,000,000 | 10,000,000 |
Preferred stock, shares issued | ||
Preferred stock, shares outstanding | ||
Common stock, par value | $ 0.0001 | $ 0.0001 |
Common stock, shares 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 Oper
Consolidated Statements of Operations (Unaudited) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Costs and Expenses: | ||||
General and administrative | $ 127,731 | $ 185,008 | $ 413,016 | $ 625,939 |
Impairment charge | 1,119,913 | 1,119,913 | ||
Total cost and expenses | $ 127,731 | 1,304,921 | $ 413,016 | 1,745,852 |
Loss from operations | (127,731) | (1,304,921) | (413,016) | (1,745,852) |
Other Income (Expense): | ||||
Foreign exchange gain (loss) | $ (18,290) | (37,870) | $ (25,735) | (296,410) |
Interest expense | (712) | (7,188) | ||
Other Income (expense) | $ (18,290) | (38,582) | $ (25,735) | (303,598) |
Loss before income taxes | $ (146,021) | $ (1,343,503) | $ (438,751) | $ (2,049,450) |
Provision (benefit) for income taxes | ||||
Net Loss | $ (146,021) | $ (1,343,503) | $ (438,751) | $ (2,049,450) |
Net income (loss) per common share: | ||||
Basic and Diluted | $ 0 | $ (0.04) | $ (0.01) | $ (0.06) |
Weighted average common shares - Basic | 32,338,826 | 32,338,826 | 32,338,826 | 32,338,826 |
Weighted average common shares - Diluted | 32,338,826 | 32,338,826 | 32,338,826 | 32,338,826 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Loss) (Unaudited) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Statements of Comprehensive Income Loss [Abstract] | ||||
Net earnings (loss) | $ (146,021) | $ (1,343,503) | $ (438,751) | $ (2,049,450) |
Other comprehensive income (loss): | ||||
Foreign currency translation adjustment | (14,758) | (4,337) | (56,556) | (96,654) |
Net change in other comprehensive income (loss) | (14,758) | (4,337) | (56,556) | (96,654) |
Comprehensive income (loss) | $ (160,779) | $ (1,347,840) | $ (495,307) | $ (2,146,104) |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) | 9 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2014 | |
Cash flows from Operating Activities: | ||
Net income (loss) | $ (438,751) | $ (2,049,450) |
Warrants issued for services | $ 32,499 | 48,750 |
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 | $ (3,814) | (6,258) |
Net cash used in operating activities | $ (410,066) | (887,045) |
Cash flows from investing activities: | ||
Proceeds from sales of oil and gas properties and bidding rights | 200,000 | |
Net cash provided by investing activities | 200,000 | |
Cash flows from financing activities: | ||
Settlement of notes payable to related parties | $ (150,655) | |
Proceeds from notes payable | $ 12,000 | |
Net cash provided by financing activities | 12,000 | $ (150,655) |
Effect of Exchange Rates on Cash | (33,028) | 255,962 |
Net increase (decrease) in cash | (431,094) | (581,738) |
Cash - Beginning of period | 1,206,177 | 1,833,407 |
Cash - End of period | $ 775,083 | 1,251,669 |
Changes in operating assets and liabilities consists of: | ||
(Increase) decrease in other assets | 370 | |
Increase (decrease) in accounts payable and accrued expenses | $ (3,814) | (6,628) |
Changes in assets and liabilities | $ (3,814) | (6,258) |
Supplemental disclosure of cash flow information: | ||
Cash paid for interest | $ 76,681 | |
Cash paid for income taxes |
Basis of Presentation
Basis of Presentation | 9 Months Ended |
Sep. 30, 2015 | |
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, 2014. 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, 2014 as reported on Form 10-K, have been omitted. |
Receivable from Sale of Bidding
Receivable from Sale of Bidding Rights and Oil and Gas Properties | 9 Months Ended |
Sep. 30, 2015 | |
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 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 (the San Salvador, Libertador, and Selva Maria 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. As of March 31, 2015, the Company had received deposits in the amount of $4,299,891 from PPL on account of remainder of the proceeds was recorded as a $3,200,069 receivable from the sale of bidding rights and oil and gas properties. As of December 31, 2014, the Company provided a reserve for doubtful accounts of $3,200,069. 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. Because of PPL’s payment default, the Company has not transferred the Valle de Lerma, Tartagal, and Morillo interests. The Company, however, did incorporate High Luck Group (a subsidiary of New Times Energy) into the official UTE for Valle de Lerma, as per PPL’s request. As of November 16, 2015, the Company was working on an understanding of sale and settlement terms with PPL and a third party. The settlement terms would apply to all previous agreements signed with PPL. The timeline for the completion of this agreement remains uncertain. |
Note Payable
Note Payable | 9 Months Ended |
Sep. 30, 2015 | |
Note Payable [Abstract] | |
NOTE PAYABLE | 3. NOTE PAYABLE On July 24, 2015, SAHF borrowed $12,000 from an Argentine citizen. The short-term note was for 15 days without interest. The Company was going to repay the $12,000 by bank transfer, but it has not received the bank transfer information yet. It is expected that the note will be fully paid back at the end of the fourth quarter of 2015 with no penalty. SAHF used the funds of $12,000 to pay for corporate taxes and minimum presumed income taxes in Argentina. |
Related Party Transactions
Related Party Transactions | 9 Months Ended |
Sep. 30, 2015 | |
Related Party Transactions [Abstract] | |
RELATED PARTY TRANSACTIONS | 4. RELATED PARTY TRANSACTIONS During the third quarter, Pablo Peralta, a major shareholder of the Company and the SAHF Coordinator, was awarded a $2,314 bonus for his third quarter performance. These quarterly performance bonuses can be expected every quarter. |
Potential Manager Bonus
Potential Manager Bonus | 9 Months Ended |
Sep. 30, 2015 | |
Potential Manager Bonus [Abstract] | |
POTENTIAL MANAGER BONUS | 5. POTENTIAL MANAGER BONUS On July 16, 2015, the Company, through SAHF, LLC, made a commitment to give a bonus to Alberto Mac Mullen of up to $500,000 in the event of the completion of a sale of Tartagal, Morillo, and Valle de Lerma. The final amount of the bonus will be determined by the selling price of the properties. |
Equity
Equity | 9 Months Ended |
Sep. 30, 2015 | |
Equity [Abstract] | |
EQUITY | 6. 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. Dr. Smith completed his two-year term with the Company on April 30, 2015 and his board membership was not renewed. The remaining warrants were expensed at the $32,499 as they were fully vested as of September 30, 2015. |
Receivable from Sale of Biddi13
Receivable from Sale of Bidding Rights and Oil and Gas Properties (Details) - USD ($) | 1 Months Ended | 3 Months Ended | 12 Months Ended |
Mar. 31, 2012 | Mar. 31, 2015 | Dec. 31, 2014 | |
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 | $ 4,299,891 | ||
Receivable from the sale of bidding rights and oil and gas properties | $ 3,200,069 | ||
Reserve for doubtful accounts | $ 3,200,069 |
Note Payable (Details)
Note Payable (Details) - USD ($) | 9 Months Ended | |
Sep. 30, 2015 | Jul. 24, 2015 | |
Note Payable (Textual) | ||
Note payable borrowed amount | $ 12,000 | |
Short-term note, Description | The short-term note was for 15 days without interest. | |
Repayment of short-term not by bank transfer | $ 12,000 | |
Corporate taxes paid | $ 12,000 |
Related Party Transactions (Det
Related Party Transactions (Details) | 9 Months Ended |
Sep. 30, 2015USD ($) | |
Pablo Peralta [Member] | |
Related Party Transactions (Textual) | |
Bonus | $ 2,314 |
Potential Manager Bonus (Detail
Potential Manager Bonus (Details) | 1 Months Ended |
Jul. 16, 2015USD ($) | |
Alberto Mac Mullen [Member] | |
Potential Manager Bonus (Textual) | |
Officers' Compensation | $ 500,000 |
Equity (Details)
Equity (Details) - USD ($) | May. 10, 2013 | Sep. 30, 2015 |
Equity (Textual) | ||
Warrants to purchase common shares | 1,000,000 | |
Warrants exercise price | $ 0.20 | |
Warrants expected term | 2 years | |
Warrants expense | $ 32,499 |