Daybreak Oil and Gas (DBRM) 10-Q 11 Jul 14 2015 Q1 Quarterly report Financial data

Document_and_Entity_Informatio

Document and Entity Information	3 Months Ended
	31-May-14	Jul. 11, 2014
Document And Entity Information	'	'
Entity Registrant Name	'Daybreak Oil & Gas, Inc.	'
Entity Central Index Key	'0001164256	'
Document Type	'10-Q	'
Document Period End Date	31-May-14	'
Amendment Flag	'false	'
Current Fiscal Year End Date	'--02-28	'
Is Entity a Well-known Seasoned Issuer?	'No	'
Is Entity a Voluntary Filer?	'No	'
Is Entity's Reporting Status Current?	'Yes	'
Entity Filer Category	'Smaller Reporting Company	'
Entity Common Stock, Shares Outstanding	'	57,145,236
Document Fiscal Period Focus	'Q1	'
Document Fiscal Year Focus	'2015	'

Balance_Sheets_Unaudited

Balance Sheets (Unaudited) (USD $)	31-May-14	Feb. 28, 2014
CURRENT ASSETS:	'	'
Cash and cash equivalents	$119,418	$500,431
Accounts receivable:	'	'
Oil and gas sales	347,379	330,343
Joint interest participants	264,842	338,950
Loan commitment refund and other receivables, net	28,243	30,039
Current portion - production revenue receivable	120,000	120,000
Prepaid expenses and other current assets	23,506	29,397
Current portion - note receivable	2,058,247	793,727
Total current assets	2,961,635	2,142,887
OIL AND GAS PROPERTIES, net, successful efforts method	'	'
Proved properties	3,312,246	2,914,965
Unproved properties	1,269,424	1,261,156
PREPAID DRILLING COSTS	358,380	14,915
NON - CURRENT portion - production revenue receivable	125,000	155,000
DEFERRED FINANCING COSTS, net	1,377,597	1,326,600
NON-CURRENT portion - note receivable	3,435,383	2,756,273
OTHER ASSETS	106,135	106,114
Total assets	12,945,800	10,677,910
CURRENT LIABILITIES:	'	'
Accounts payable and other accrued liabilities	1,721,538	2,158,546
Accounts payable - related parties	946,003	952,652
Accrued interest	147,448	1,587
Notes payable - related party	250,100	250,100
12% Notes payable, net	332,199	327,871
12% Notes payable - related party, net	240,580	237,395
Current portion - debt, net	1,852,724	2,024,417
Line of credit	881,064	882,369
Total current liabilities	6,371,656	6,834,937
LONG TERM LIABILITIES:	'	'
Non-current portion - debt, net	9,609,065	6,629,638
Asset retirement obligation	22,595	22,079
Total liabilities	16,003,316	13,486,654
COMMITMENTS AND CONTINGENCIES	'	'
STOCKHOLDERS' DEFICIT:	'	'
Common stock	57,005	55,509
Additional paid-in capital	24,614,973	24,607,582
Accumulated deficit	-27,730,232	-27,472,583
Total stockholders' deficit	-3,057,516	-2,808,744
Total liabilities and stockholders' deficit	12,945,800	10,677,910
Preferred Stock	'	'
STOCKHOLDERS' DEFICIT:	'	'
Preferred stock	0	0
Series A Convertible Preferred Stock	'	'
STOCKHOLDERS' DEFICIT:	'	'
Preferred stock	$738	$738

Balance_Sheets_Parenthetical

Balance Sheets (Parenthetical) (USD $)	31-May-14	Feb. 28, 2014
Common stock, par value in dollars	$0.00	$0.00
Common stock, shares authorized	200,000,000	200,000,000
Common stock, shares issued	57,005,236	55,509,411
Common stock, shares outstanding	57,005,236	55,509,411
Preferred Stock	'	'
Preferred stock, par value in dollars	$0.00	$0.00
Preferred stock, shares authorized	10,000,000	10,000,000
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Series A Convertible Preferred Stock	'	'
Preferred stock, par value in dollars	$0.00	$0.00
Preferred stock, shares authorized	2,400,000	2,400,000
Preferred stock, shares issued	737,565	737,565
Preferred stock, shares outstanding	737,565	737,565
Preferred stock, cumulative dividend rate	6.00%	6.00%

Statements_of_Operations_Unaud

Statements of Operations (Unaudited) (USD $)	3 Months Ended
	31-May-14	31-May-13
REVENUE:	'	'
Oil and gas sales	$810,429	$228,604
OPERATING EXPENSES:	'	'
Production	85,530	29,799
Exploration and drilling	6,783	180,957
Depreciation, depletion, amortization and impairment	119,977	147,870
General and administrative	354,819	303,482
Total operating expenses	567,109	662,108
OPERATING PROFIT (LOSS)	243,320	-433,504
OTHER INCOME (EXPENSE):	'	'
Interest income	164,838	52
Interest expense	-665,817	-212,218
Total other income (expense)	-500,979	-212,166
NET LOSS	-257,659	-645,670
Cumulative convertible preferred stock dividend requirement	-33,461	-40,313
NET LOSS AVAILABLE TO COMMON SHAREHOLDERS	($291,120)	($685,983)
NET LOSS PER COMMON SHARE, Basic and diluted	($0.01)	($0.01)
WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING - Basic and diluted	57,194,488	48,851,619

Statements_of_Cash_Flows_Unaud

Statements of Cash Flows (Unaudited) (USD $)	3 Months Ended
	31-May-14	31-May-13
CASH FLOWS FROM OPERATING ACTIVITIES:	'	'
Net loss	($257,659)	($645,670)
Adjustments to reconcile net loss to net cash provided by operating activities:	'	'
Stock compensation	1,887	6,722
Depreciation, depletion, impairment and ARO expense	119,977	147,870
Amortization of debt discount	41,987	38,147
Amortization of deferred financing costs	103,562	20,362
Non-cash interest income	-21	-52
Changes in assets and liabilities:	'	'
Accounts receivable, oil and gas sales	-17,036	15,764
Accounts receivable - joint interest participants	74,108	-294,632
Accounts receivable - other	31,796	-200
Prepaid expenses and other current assets	5,891	6,220
Accounts payable and other accrued liabilities	-235,653	673,262
Accounts payable - related parties	-6,649	73,630
Accrued interest	152,900	-5,000
Net cash provided by operating activities	15,090	36,423
CASH FLOWS FROM INVESTING ACTIVITIES:	'	'
Prepaid drilling costs	-343,465	-154,701
Advances for oil and gas properties	0	-92,048
Note receivable	-1,943,630	0
Deferred interest	655	0
Additions to oil and gas properties	-535,923	-332,824
Net cash used in investing activities	-2,822,363	-579,573
CASH FLOWS FROM FINANCING ACTIVITIES	'	'
Proceeds from warrant exercise	7,000	0
Proceeds from notes payable	3,500,000	607,835
Payments on note payable	-726,740	-14,213
Payment of deferred financing fees	-345,000	0
Payments on line of credit	-9,000	-9,000
Net cash provided by financing activities	2,426,260	584,622
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS	-381,013	41,472
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD	500,431	79,996
CASH AND CASH EQUIVALENTS AT END OF PERIOD	119,418	121,468
Cash paid for Interest	382,575	175,029
Cash paid for Income taxes	0	0
SUPPLEMENTAL CASH FLOW INFORMATION:	'	'
Unpaid additions to oil and gas properties	10,914	228,229
Conversion of warrants	1,874	0
Share-to-warrant exchange	428	0
Interest converted to principal	7,695	0
ARO asset and liability increase	0	13,887
Unpaid deferred financing fees	0	34,138
Conversion of preferred stock to common stock	$0	$24

Organization_and_Basis_of_Pres

Organization and Basis of Presentation	3 Months Ended
	31-May-14
Organization, Consolidation and Presentation of Financial Statements [Abstract]	'
Organization and Basis of Presentation	'
	NOTE 1 — ORGANIZATION AND BASIS OF PRESENTATION:
	Organization
	Originally incorporated as Daybreak Uranium, Inc., (“Daybreak Uranium”) under the laws of the State of Washington on March 11, 1955, Daybreak Uranium was organized to explore for, acquire, and develop mineral properties in the Western United States. During 2005, management of the Company decided to enter the oil and gas exploration and production industry. On October 25, 2005, the Company shareholders approved a name change from Daybreak Mines, Inc. to Daybreak Oil and Gas, Inc. (referred to herein as “Daybreak” or the “Company”) to better reflect the business of the Company.
	All of the Company’s oil and gas production is sold under contracts which are market-sensitive. Accordingly, the Company’s financial condition, results of operations, and capital resources are highly dependent upon prevailing market prices of, and demand for, oil and natural gas. These commodity prices are subject to wide fluctuations and market uncertainties due to a variety of factors that are beyond the control of the Company. These factors include the level of global demand for petroleum products, foreign supply of oil and gas, the establishment of and compliance with production quotas by oil-exporting countries, the relative strength of the U.S. dollar, weather conditions, the price and availability of alternative fuels, and overall economic conditions, both foreign and domestic.
	Basis of Presentation
	The accompanying unaudited interim financial statements and notes for the Company have been prepared in accordance with accounting principles generally accepted in the United States of America for interim financial information and with the instructions to Form 10-Q for quarterly reports under Section 13 or 15 (d) of the Securities Exchange Act of 1934 (the “Exchange Act”). Accordingly, these do not include all of the information and footnote disclosures normally required by accounting principles generally accepted in the United States of America for complete financial statements.
	In the opinion of management, all adjustments considered necessary for a fair presentation of the financial statements have been included and such adjustments are of a normal recurring nature. Operating results for the three months ended May 31, 2014 are not necessarily indicative of the results that may be expected for the fiscal year ending February 28, 2015.
	These financial statements should be read in conjunction with the audited financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the fiscal year ended February 28, 2014.
	Use of Estimates
	In preparing financial statements in conformity with accounting principles generally accepted in the United States of America, management is required to make estimates and assumptions. These estimates and assumptions may affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements, and revenues and expenses during the reporting period. Actual results could differ materially from those estimates. The accounting policies most affected by management’s estimates and assumptions are as follows:
	·  The reliance on estimates of proved reserves to compute the provision for depreciation, depletion and amortization and to determine the amount of any impairment of proved properties;
	·  The valuation of unproved acreage and proved oil and gas properties to determine the amount of any impairment of oil and gas properties;
	·  Judgment regarding the productive status of in-progress exploratory wells to determine the amount of any provision for abandonment; and
	·  Estimates regarding abandonment obligations.
	Reclassifications
	Certain reclassifications have been made to conform the prior period’s financial information to the current period’s presentation. These reclassifications had no effect on previously reported net loss or accumulated deficit.

Going_Concern

Going Concern	3 Months Ended
	31-May-14
Going Concern	'
Going Concern	'
	NOTE 2 — GOING CONCERN:
	Financial Condition
	The Company’s financial statements for the three months ended May 31, 2014 have been prepared on a going concern basis, which contemplates the realization of assets and the settlement of liabilities in the normal course of business. The Company has incurred net losses since entering the oil and gas exploration industry and as of May 31, 2014 has an accumulated deficit of $27,730,232 and a working capital deficit of $3,410,021 which raises substantial doubt about the Company’s ability to continue as a going concern.
	Management Plans to Continue as a Going Concern
	The Company continues to implement plans to enhance its ability to continue as a going concern. Daybreak currently has an average 36.8% working interest and 28.4% net revenue interest in 20 producing wells in its East Slopes Project located in Kern County, California (the “East Slopes Project”). The revenue from these wells has created a steady and reliable source of revenue.
	Additionally, the Company has become involved in a shallow oil play in an existing gas field in Lawrence County, Kentucky, through its acquisition of an average 25% working interest in approximately 6,400 acres in two large contiguous blocks in the Twin Bottoms Field in Lawrence County, Kentucky. Daybreak currently has a net revenue interest in nine producing oil wells in the Twin Bottoms Field. The Company’s average working interest in these nine oil wells is 22.5% and the average net revenue interest is 19.7% in these same wells.
	The Company anticipates revenues will continue to increase as it participates in the drilling of more wells in California and Kentucky. Daybreak plans to continue its development drilling programs in both California and Kentucky at a rate that is compatible with its cash flow and funding opportunities.
	The Company’s sources of funds in the past have included the debt or equity markets and, while the Company has experienced revenue growth, which has resulted in positive cash flow from its oil and gas properties, it has not yet established a positive cash flow on a company-wide basis. It will be necessary for the Company to obtain additional funding from the private or public debt or equity markets in the future. However, the Company cannot offer any assurance that it will be successful in executing the aforementioned plans to continue as a going concern.
	Daybreak’s financial statements as of May 31, 2014 do not include any adjustments that might result from the inability to implement or execute Daybreak’s plans to improve our ability to continue as a going concern.

Recent_Accounting_Pronouncemen

Recent Accounting Pronouncements	3 Months Ended
	31-May-14
New Accounting Pronouncements and Changes in Accounting Principles [Abstract]	'
Recent Accounting Pronouncements	'
	NOTE 3 — RECENT ACCOUNTING PRONOUNCEMENTS:
	There are no new accounting pronouncements issued or effective that have had, or are expected to have, a material impact on the Company’s financial statements.

Concentration_of_Credit_Risk

Concentration of Credit Risk	3 Months Ended
	31-May-14
Risks and Uncertainties [Abstract]	'
Concentration of Credit Risk	'
	NOTE 4 — CONCENTRATION OF CREDIT RISK:
	Substantially all of the Company’s trade accounts receivable result from crude oil and natural gas sales or joint interest billings to its working interest partners. This concentration of customers and joint interest owners may impact the Company’s overall credit risk as these entities could be affected by similar changes in economic conditions as well as other related factors. Trade accounts receivable are generally not collateralized. There were no allowances for doubtful accounts for the Company’s trade accounts receivable at May 31, 2014 and February 28, 2014, as all joint interest owners have a history of paying their obligations.
	At the Company’s East Slopes project in California there is only one buyer available for the purchase of all oil production. At the Company’s Twin Bottoms Field project located in Lawrence County, Kentucky, there is only one buyer available for the purchase of its oil production and only one buyer available for the purchase of its natural gas production. At May 31, 2014 and February 28, 2014 these three individual customers represented 100.0% of crude oil and natural gas revenues accounts receivable. If these buyers are unable to resell their products or if they lose a significant sales contract then the Company may incur difficulties in selling its oil and gas production.
	The Company’s oil and natural gas revenues accounts receivable from California and Kentucky operations at May 31, 2014 and February 28, 2014 are set forth in the table below.
				At May 31, 2014			At February 28, 2014
	Project		Customer	Revenue		Percentage	Revenue		Percentage
				Receivable			Receivable
	California – East Slopes Project (Oil)		Plains Marketing	$	251,074	72.30%	$	244,384	74.00%
	Kentucky – Twin Bottoms Field (Oil)		Appalachian Oil		89,729	25.80%		85,120	25.80%
	Kentucky – Twin Bottoms Field (Gas)		Jefferson Gas		6,576	1.90%		839	0.20%
				$	347,379	100.00%	$	330,343	100.00%
	Allowances for doubtful accounts in receivables of loan commitments and other receivables relate to amounts due from third parties that were involved in arranging financing transactions for the Company that have not yet been consummated. Accounts receivable – Loan commitment refund and other receivables balances at May 31, 2014 and February 28, 2014 are set forth in the table below:
		31-May-14		28-Feb-14
	Loan commitment and other receivables	$	267,243	$	269,039
	Allowance for doubtful accounts		-239,000		-239,000
	Balance	$	28,243	$	30,039

Prepaid_Drilling_Costs

Prepaid Drilling Costs	3 Months Ended
	31-May-14
Prepaid Expense and Other Assets [Abstract]	'
Prepaid Drilling Costs	'
	NOTE 5 — PREPAID DRILLING COSTS:
	During the three months ended May 31, 2014 the Company was engaged in a multi-well drilling program at the Twin Bottoms Field in Lawrence County, Kentucky. The Company had made prepayments for drilling costs at May 31, 2014 and February 28, 2014 as set forth in the table below.
		31-May-14		28-Feb-14
	California	$	16,452	$	16,452
	Kentucky		341,928		-1,538
	Balance	$	358,380	$	14,915

Oil_and_Gas_Properties

Oil and Gas Properties	3 Months Ended
	31-May-14
OIL AND GAS PROPERTIES, net, successful efforts method	'
Oil and Gas Properties	'
	NOTE 6 — OIL AND GAS PROPERTIES:
	Oil and gas property balances at May 31, 2014 and February 28, 2014 are set forth in the table below.
		31-May-14		28-Feb-14
	Proved leasehold costs	$	2,236	$	2,236
	Unproved leasehold costs		1,269,424		1,261,156
	Costs of wells and development		1,050,404		492,970
	Capitalized exploratory well costs		3,978,208		4,018,899
	Total cost of oil and gas properties		6,300,272		5,775,261
	Accumulated depletion, depreciation, amortization and impairment		-1,718,602		-1,599,140
	Net oil and gas properties	$	4,581,670	$	4,176,121

Production_Revenue_Receivable

Production Revenue Receivable	3 Months Ended
	31-May-14
Production Revenue Receivable	'
Production Revenue Receivable	'
	NOTE 7 — PRODUCTION REVENUE RECEIVABLE:
	Production revenue receivable balances of $245,000 in aggregate represent amounts due the Company from a portion of the sale price of a 25% working interest in East Slopes Project in Kern County, California that was acquired through the default of certain original working interest partners in the project. Production revenue receivable balances at May 31, 2014 and February 28, 2014 are set forth in the table below:
		31-May-14		28-Feb-14
	Production revenue receivable – current	$	120,000	$	120,000
	Production revenue receivable – non-current		125,000		155,000
		$	245,000	$	275,000

Deferred_Financing_Costs

Deferred Financing Costs	3 Months Ended
	31-May-14
Deferred Finance Costs [Abstract]	'
Deferred Financing Costs	'
	NOTE 8 — DEFERRED FINANCING COSTS:
	Deferred financing costs at May 31, 2014 and February 28, 2014 relate to the original and the amended credit facility with Maximilian Resources LLC, a Delaware limited liability company and successor by assignment to Maximilian Investors LLC (either party, as appropriate, is referred to in these notes to the financial statements as “Maximilian”), are set forth in the table below:
		31-May-14		28-Feb-14
	Deferred financing costs – loan fees	$	151,139	$	151,139
	Deferred financing costs – loan commissions		630,662		476,103
	Deferred financing costs – fair value of warrants		530,488		530,488
	Deferred financing costs – fair value of common stock		419,832		419,832
			1,732,121		1,577,562
	Accumulated amortization		-354,524		-250,962
	Balance	$	1,377,597	$	1,326,600
	Deferred financing costs of loan commissions increased $154,559 for the three months ended May 31, 2014. For the three months ended May 31, 2014, the Company recognized amortization expense of $103,562.

Note_Receivable

Note Receivable	3 Months Ended
	31-May-14
Receivables [Abstract]	'
Note Receivable	'
	NOTE 9 — NOTE RECEIVABLE:
	At May 31, 2014, the Company had advanced $6,150,000 to App through its credit facility. Note receivable balances at May 31, 2014 and February 28, 2014 are set forth in the table below:
		31-May-14		28-Feb-14
	Note receivable – current	$	2,058,247	$	793,727
	Note receivable – non-current		3,435,383		2,756,273
		$	5,493,630	$	3,550,000

Accounts_Payable

Accounts Payable	3 Months Ended
	31-May-14
Payables and Accruals [Abstract]	'
Accounts Payable	'
	NOTE 10 — ACCOUNTS PAYABLE:
	On March 1, 2009, the Company became the operator for its East Slopes Project. Additionally, the Company at that time assumed certain original partners’ default liability of approximately $1.5 million representing a 25% working interest in the drilling and completion costs associated with the East Slopes Project four earning well program. The Company subsequently sold the same 25% working interest on June 11, 2009. Of the $1.5 million default, $261,349 remains unpaid and is included in the May 31, 2014 accounts payable balance.

Accounts_Payable_Related_Parti

Accounts Payable - Related Parties	3 Months Ended
	31-May-14
Related Party Transactions [Abstract]	'
Accounts Payable - Related Parties	'
	NOTE 11 — ACCOUNTS PAYABLE- RELATED PARTIES:
	The May 31, 2014 and February 28, 2014 accounts payable – related parties balances were comprised primarily of salaries of the Company’s Executive Officers and certain employees; directors’ fees; expense reimbursements; and interest to the Company’s President and Chief Executive Officer on the 12% Subordinated Notes further described in Note 12 – Current and Non-Current Borrowings below. Payment of these items has been deferred until the Company’s cash flow situation improves.

Current_and_NonCurrent_Borrowi

Current and Non-Current Borrowings	3 Months Ended
	31-May-14
Debt Disclosure [Abstract]	'
Current and Non-Current Borrowings	'
	NOTE 12 — CURRENT AND NON–CURRENT BORROWINGS:
	Current Debt
	Note Payable – Related Party
	As of May 31, 2014 and February 28, 2014, the Company’s President and Chief Executive Officer had loaned the Company $250,100 in aggregate that has been used for a variety of corporate purposes including an escrow requirement on a loan commitment; extension fees on third party loans; and a reduction of principal on the Company’s credit line with UBS Bank. These loans are non-interest bearing loans and repayment will be made upon a mutually agreeable date in the future.
	Line of Credit
	The Company has an existing $890,000 line of credit for working capital purposes with UBS Bank USA (“UBS”), established pursuant to a Credit Line Agreement dated October 24, 2011 that is secured by the personal guarantee of our President and Chief Executive Officer. At May 31, 2014, the Line of Credit had an outstanding balance of $881,064. Interest is payable monthly at a stated reference rate of 0.249% + 337.5 basis points and totaled $7,835 for the three months ended May 31, 2014. The reference rate is based on the 30 day LIBOR (“London Interbank Offered Rate”) and is subject to change from UBS.
	12% Subordinated Notes
	The Company’s 12% Subordinated Notes (“the Notes”) issued pursuant to a March 2010 private placement (of which $250,000 was from a related party) accrue interest at 12% per annum, payable semi-annually on January 29th and July 29th. The note principal is payable in full at the expiration of the term of the Notes, which is January 29, 2015. Should the Board of Directors, on the maturity date, decide that the payment of the principal and any unpaid interest would impair the financial condition or operations of the Company, the Company may then elect a mandatory conversion of the unpaid principal and interest into the Company’s common stock at a conversion rate equal to 75% of the average closing price of the Company’s common stock over the 20 consecutive trading days preceding December 31, 2014.
	In conjunction with the Notes private placement, a total of 1,190,000 common stock purchase warrants were issued at a rate of two warrants for every dollar raised through the private placement. The warrants have an exercise price of $0.14 and expire on January 29, 2015. The fair value of the warrants, as determined by the Black-Scholes option pricing model, was $116,557 using the following weighted average assumptions: a risk free interest rate of 2.33%; volatility of 147.6%; and dividend yield of 0.0%. The fair value of the warrants was recognized as a discount to debt and is being amortized over the term of the Notes using the effective interest method. Amortization expense was $7,513 for the three months ended May 31, 2014.
	Current Notes balances at May 31, 2014 and February 28, 2014 are set forth in the table below:
		31-May-14		28-Feb-14
	12% Subordinated Notes	$	345,000	$	345,000
	12% Subordinated Notes Discount		-12,801		-17,129
		$	332,199	$	327,871
	Current Notes, related party balances at May 31, 2014 and February 28, 2014 are set forth in the table below:
		31-May-14		28-Feb-14
	12% Subordinated Notes, related party	$	250,000	$	250,000
	12% Subordinated Notes discount, related party		-9,420		-12,605
		$	240,580	$	237,395
	Non-current Debt
	Maximilian Loan
	On October 31, 2012, the Company entered into a loan agreement with Maximilian, which provided for a revolving credit facility of up to $20 million, maturing on October 31, 2016, with a minimum commitment of $2.5 million. The loan had annual interest of 18% and a monthly commitment fee of 0.5%. The Company also granted Maximilian a 10% working interest in its share of the oil and gas leases in Kern County, California. The relative fair value of this 10% working interest amounting to $515,638 was recognized as a debt discount and is being amortized over the term of the loan. Amortization expense was $34,474 for the three months ended May 31, 2014. Unamortized debt discount amounted to $308,579 at May 31, 2014.
	In 2012, the Company also issued 2,435,517 warrants to third parties who assisted in the closing of the loan. The warrants have an exercise price of $0.044; contain a cashless exercise provision; have piggyback registration rights; and are exercisable for a period of five years expiring on October 31, 2017. The fair value of the warrants, as determined by the Black-Scholes option pricing model, was $98,084 and included the following assumptions: a risk free interest rate of 0.72%; stock price of $0.04, volatility of 153.44%; and a dividend yield of 0.0%. The fair value of the warrants was recognized as a financing cost and is being amortized as a part of deferred financing cost over the term of the loan.
	Maximilian Loan - Amended and Restated Loan Agreement
	In connection with the Company’s acquisition of a working interest from App in the Twin Bottoms Field in Lawrence County, Kentucky, the Company amended its loan agreement with Maximilian on August 28, 2013. The amended loan agreement provided for an increase in the revolving credit facility from $20 million to $90 million and a reduction in the annual interest rate from 18% to 12%. The monthly commitment fee of 0.5% per month on the outstanding principal balance remained unchanged. Advances under the amended loan agreement will mature on August 28, 2017. The obligations under the amended loan agreement continue to be secured by a perfected first priority security interest in substantially all of the personal property of the Company, and a mortgage on the Company’s leases in Kern County, California. The amended loan agreement also provided for the revolving credit facility to be divided into two borrowing sublimits. The first borrowing sublimit is $50 million and is for borrowing by the Company, primarily for its ongoing oil and gas exploration and development activities. The second borrowing sublimit, of $40 million, is for loans to be extended by the Company, as lender, to App, as borrower pursuant to a Loan and Security Agreement entered into between the Company and App on August 28, 2013 (See Note 9 – Note Receivable).
	The amended loan agreement contains customary covenants for loan of such type, including among other things, covenants that restrict the Company’s ability to make capital expenditures, incur indebtedness, incur liens and dispose of property. The amended loan agreement also contains various events of default, including failure to pay principal and interest when due, breach of covenants, materially incorrect representations and bankruptcy or insolvency. If an event of default occurs, all of the Company’s obligations under the amended loan agreement could be accelerated by Maximilian, causing all loans outstanding (including accrued interest and fees payable thereunder) to be declared immediately due and payable.
	As consideration for Maximilian facilitating the Company’s transactions with App and entering into the amended loan agreement, the Company (a) issued to Maximilian approximately 6.1 million common shares, representing 9.99% of the Company’s outstanding common stock on a fully-diluted basis at the time of grant, and (b) issued approximately 6.1 million warrants to purchase shares of the Company’s common stock representing the right to purchase up to an additional 9.99% of the Company’s outstanding common stock on a fully-diluted basis, calculated as of the date of grant. The warrants have an exercise price of $0.10; contain a cash exercise provision and are exercisable for a period of three years expiring on August 28, 2016; and contain an exercise provision blocker that prevents any exercise of the warrants if such exercise and related issuance of Common Stock would increase the Maximilian holdings of the Company’s Common Stock to more than 9.99% of the Company’s currently issued and outstanding shares at the time of the exercise. The Company also granted to Maximilian a 50% net profits interest in the Company’s 25% working interest, after the Company recovers its investment, in the Company’s working interest in its Kentucky acreage, pursuant to an Assignment of Net Profits Interest entered into as of August 28, 2013 by and between the Company and Maximilian.
	On May 28, 2014, at Maximilian’s request, the Company finalized a share-for-warrant exchange agreement in which Maximilian returned to the Company 427,729 common shares and was in turn issued the same number of warrants containing the same provisions as the originally issued warrants. This share-to-warrant exchange occurred so that Maximilian could remain at the 9.99% threshold of the Company’s common shares issued and outstanding. The Company determined that the share-to-warrant exchange did not result in any incremental fair value.
	During the three months ended May 31, 2014, the Company received multiple advances from Maximilian totaling $3,500,000 in aggregate that were used to participate in the multi-well drilling program at the Twin Bottoms Field in Kentucky; and, the advance of funds to App through a long-term note receivable. The Company has recognized $154,559 in deferred financing costs associated with these advances which are being amortized over the amended term of the revolving credit facility.
	Current debt balances at May 31, 2014 and February 28, 2014 are set forth in the table below:
		31-May-14		28-Feb-14
	Maximilian Note	$	1,991,679	$	2,163,405
	Maximilian Note Discount		-138,955		-138,988
		$	1,852,724	$	2,024,417
	Non-current debt balances at May 31, 2014 and February 28, 2014 are set forth in the table below:
		31-May-14		28-Feb-14
	Maximilian Note	$	9,778,689	$	6,833,703
	Maximilian Note Discount		-169,624		-204,065
		$	9,609,065	$	6,629,638

Stockholders_Deficit

Stockholders' Deficit	3 Months Ended
	31-May-14
Equity [Abstract]	'
Stockholders' Deficit	'
	NOTE 13 — STOCKHOLDERS’ DEFICIT:
	Series A Convertible Preferred Stock
	The Company has designated 2,400,000 shares of the 10,000,000 preferred shares as Series A Convertible Preferred Stock (“Series A Preferred”), with a $0.001 par value. At May 31, 2014, there were 737,565 shares issued and outstanding, that had not been converted into our common stock. As of May 31, 2014, there are 41 accredited investors who have converted 662,200 Series A Preferred shares into 1,986,600 shares of Daybreak common stock. The conversions of Series A Preferred that have occurred since the Series A Preferred was first issued in July 2006 is set forth in the table below.
	Fiscal Period		Shares of Series		Shares of		Number of
			A Preferred		Common Stock		Accredited
			Converted to		Issued from		Investors
			Common Stock		Conversion
	Year Ended February 29, 2008		102,300		306,900		10
	Year Ended February 28, 2009		237,000		711,000		12
	Year Ended February 28, 2010		51,900		155,700		4
	Year Ended February 28, 2011		102,000		306,000		4
	Year Ended February 29, 2012		-		-		-
	Year Ended February 28, 2013		18,000		54,000		2
	Year Ended February 28, 2014		151,000		453,000		9
	Three Months Ended May 31, 2014		-		-		-
	Totals		662,200		1,986,600		41
	Holders of Series A Preferred shall be paid dividends, in the amount of 6% of the original purchase price per annum. . Dividends are cumulative from the date of the final closing of the private placement, whether or not in any dividend period or periods we have assets legally available for the payment of such dividends. Dividends earned since issuance for each fiscal year and the three months ended May 31, 2014 are set forth in the table below:
	Fiscal Period		Shareholders at Period End		Earned Dividends
	Year Ended February 28, 2007		100		$	155,311
	Year Ended February 29, 2008		90			242,126
	Year Ended February 28, 2009		78			209,973
	Year Ended February 28, 2010		74			189,973
	Year Ended February 28, 2011		70			173,707
	Year Ended February 29, 2012		70			163,624
	Year Ended February 28, 2013		68			161,906
	Year Ended February 28, 2014		59			151,323
	Three Months Ended May 31, 2014		59			33,461
	Total Accumulated Dividends				$	1,481,404
	Common Stock
	The Company is authorized to issue up to 200,000,000 shares of $0.001 par value common stock of which 57,005,236 shares were issued and outstanding as of May 31, 2014. In comparison, at February 28, 2014, a total of 55,509,411 shares were issued and outstanding. The increase of 1,495,825 shares was attributable as shown below:
		Common Stock		Valuation
		Balance
	Common stock, Issued and Outstanding, February 28, 2014	55,509,411
	Exercise of warrants issued with 12% Subordinated Notes	50,000		$	50
	Cashless exercise of warrants issued in connection with financing	1,873,554		$	1,874
	Common stock to warrant exchange (Maximilian)	-427,729		$	-428
	Common stock, Issued and Outstanding, May 31, 2014	57,005,236

Warrants

Warrants	3 Months Ended
	31-May-14
Warrants and Rights Note Disclosure [Abstract]	'
Warrants	'
	NOTE 14 — WARRANTS:
	Warrants outstanding and exercisable as of May 31, 2014 are set forth in the table below:
		Warrants	Exercise	Remaining	Exercisable
			Price	Life	Warrants
				(Years)	Remaining
	12% Subordinated notes	1,190,000	$0.14	0.5	1,040,000
	Warrants issued in 2010 for services	150,000	$0.14	1	150,000
	Warrants issued in 2012 for debt financing	2,435,517	$0.04	3.5	316,617
	Warrants issued for Kentucky oil project	3,498,601	$0.10	2.25	3,498,601
	Warrants issued for Kentucky debt financing	2,623,951	$0.10	2.25	2,623,951
	Warrants issued for Kentucky debt financing	309,503	$0.21	4.25	309,503
	Warrants issued in share-for-warrant exchange	427,729	$0.10	2.25	427,729
		10,635,301			8,366,401
	There were no warrants that expired during the three months ended May 31, 2014. During the three months ended May 31, 2014, there were 50,000 warrants exercised that had been issued in conjunction with the 12% subordinated Notes and 2,118,900 warrants exercised that were issued in conjunction with financing the Company received in 2012 for a total of 2,168,900 warrants that were exercised in aggregate. There were 427,729 warrants issued during the three months ended May 31, 2014 in connection with the Maximilian share-for-warrants exchange. The remaining outstanding warrants as of May 31, 2014, have a weighted average exercise price of $0.11, a weighted average remaining life of 2.13 years, and an intrinsic value of $1,942,783.

Restricted_Stock_and_Restricte

Restricted Stock and Restricted Stock Unit Plan	3 Months Ended
	31-May-14
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]	'
Restricted Stock and Restricted Stock Unit Plan	'
	NOTE 15 — RESTRICTED STOCK AND RESTRICTED STOCK UNIT PLAN:
	At May 31, 2014, a total of 2,882,010 shares of restricted stock had been awarded and remained outstanding under the 2009 Plan, and 2,893,750 of the shares had fully vested. A total of 1,011,740 Common Stock shares remained available at May 31, 2014 for issuance pursuant to the 2009 Plan. A summary of the 2009 Plan issuances is set forth in the table below:
	Grant	Shares	Vesting	Shares	Shares	Shares
	Date	Awarded	Period	Vested(1)	Returned(2)	Outstanding
						(Unvested)
	4/7/09	1,900,000	3 Years	1,900,000	-	-
	7/16/09	25,000	3 Years	25,000	-	-
	7/16/09	625,000	4 Years	619,130	5,870	-
	7/22/10	25,000	3 Years	25,000	-	-
	7/22/10	425,000	4 Years	312,880	5,870	106,250
		3,000,000		2,882,010(1)	11,740	106,250
	(1) Does not include shares that were withheld to satisfy such tax liability upon vesting of a restricted award by a Plan Participant, and subsequently returned to the 2009 Plan.
	(2) Reflects the number of common shares that were withheld pursuant to the settlement of the number of shares with a fair market value equal to such tax withholding liability, to satisfy such tax liability upon vesting of a restricted award by a Plan Participant.
	For the three months ended May 31, 2014, the Company recognized compensation expense related to the above restricted stock grants in the amount of $1,887. Unamortized compensation expense amounted to $628 as of May 31, 2014.

Income_Taxes

Income Taxes	3 Months Ended
	31-May-14
Income Tax Disclosure [Abstract]	'
Income Taxes	'
	NOTE 16 — INCOME TAXES:
	Reconciliation between actual tax expense (benefit) and income taxes computed by applying the U.S. federal income tax rate and state income tax rates to income from continuing operations before income taxes is set forth in the table below:
		31-May-14		28-Feb-14
	Computed at U.S. and state statutory rates (40%)	$	-103,063	$	-559,340
	Permanent differences		30,163		94,980
	Changes in valuation allowance		72,900		464,360
	Total	$	-	$	-
	Tax effects of temporary differences that give rise to significant portions of the deferred tax assets and deferred liabilities are set forth in the table below:
		31-May-14		28-Feb-14
	Deferred tax assets:
	Net operating loss carryforwards	$	8,655,176	$	8,344,222
	Oil and gas properties		-1,047,396		-832,267
	Stock based compensation		88,471		87,716
	Other		(35,122)		-11,442
	Less valuation allowance		-7,661,129		-7,588.23
	Total	$	-	$	-
	At May 31, 2014, Daybreak had estimated net operating loss (“NOL”) carryforwards for federal and state income tax purposes of approximately $21,637,940 which will begin to expire, if unused, beginning in 2024. The valuation allowance increased $72,900 and $464,360 for the three months ended May 31, 2014 and the year ended February 28, 2014, respectively. Section 382 of the Internal Revenue Code places annual limitations on the Company’s NOL carryforward.
	The above estimates are based on management’s decisions concerning elections which could change the relationship between net income and taxable income. Management decisions are made annually and could cause estimates to vary significantly.

Commitments_and_Contingencies

Commitments and Contingencies	3 Months Ended
	31-May-14
Commitments and Contingencies Disclosure [Abstract]	'
Commitments and Contingencies	'
	NOTE 17 — COMMITMENTS AND CONTINGENCIES:
	Various lawsuits, claims and other contingencies arise in the ordinary course of the Company’s business activities. While the ultimate outcome of any future contingency is not determinable at this time, management believes that any liability or loss resulting therefrom will not materially affect the financial position, results of operations or cash flows of the Company.
	The Company, as an owner or lessee and operator of oil and gas properties, is subject to various federal, state and local laws and regulations relating to discharge of materials into, and protection of, the environment. These laws and regulations may, among other things, impose liability on the lessee under an oil and gas lease for the cost of pollution clean-up resulting from operations and subject the lessee to liability for pollution damages. In some instances, the Company may be directed to suspend or cease operations in the affected area. The Company maintains insurance coverage that is customary in the industry, although the Company is not fully insured against all environmental risks.
	The Company is not aware of any environmental claims existing as of May 31, 2014. There can be no assurance, however, that current regulatory requirements will not change or that past non-compliance with environmental issues will not be discovered on the Company’s oil and gas properties.

Accounting_Policies_Policies

Accounting Policies (Policies)	3 Months Ended
	31-May-14
Accounting Policies [Abstract]	'
Basis of Presentation	'
	Basis of Presentation
	The accompanying unaudited interim financial statements and notes for the Company have been prepared in accordance with accounting principles generally accepted in the United States of America for interim financial information and with the instructions to Form 10-Q for quarterly reports under Section 13 or 15 (d) of the Securities Exchange Act of 1934 (the “Exchange Act”). Accordingly, these do not include all of the information and footnote disclosures normally required by accounting principles generally accepted in the United States of America for complete financial statements.
	In the opinion of management, all adjustments considered necessary for a fair presentation of the financial statements have been included and such adjustments are of a normal recurring nature. Operating results for the three months ended May 31, 2014 are not necessarily indicative of the results that may be expected for the fiscal year ending February 28, 2015.
	These financial statements should be read in conjunction with the audited financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the fiscal year ended February 28, 2014.
Use of Estimates	'
	Use of Estimates
	In preparing financial statements in conformity with accounting principles generally accepted in the United States of America, management is required to make estimates and assumptions. These estimates and assumptions may affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements, and revenues and expenses during the reporting period. Actual results could differ materially from those estimates. The accounting policies most affected by management’s estimates and assumptions are as follows:
	·  The reliance on estimates of proved reserves to compute the provision for depreciation, depletion and amortization and to determine the amount of any impairment of proved properties;
	·  The valuation of unproved acreage and proved oil and gas properties to determine the amount of any impairment of oil and gas properties;
	·  Judgment regarding the productive status of in-progress exploratory wells to determine the amount of any provision for abandonment; and
	·  Estimates regarding abandonment obligations.
Reclassifications	'
	Reclassifications
	Certain reclassifications have been made to conform the prior period’s financial information to the current period’s presentation. These reclassifications had no effect on previously reported net loss or accumulated deficit.

Concentration_of_Credit_Risk_T

Concentration of Credit Risk (Tables)	3 Months Ended
	31-May-14
Risks and Uncertainties [Abstract]	'
Schedule of Concentration of Risk	'
				At May 31, 2014			At February 28, 2014
	Project		Customer	Revenue		Percentage	Revenue		Percentage
				Receivable			Receivable
	California – East Slopes Project (Oil)		Plains Marketing	$	251,074	72.30%	$	244,384	74.00%
	Kentucky – Twin Bottoms Field (Oil)		Appalachian Oil		89,729	25.80%		85,120	25.80%
	Kentucky – Twin Bottoms Field (Gas)		Jefferson Gas		6,576	1.90%		839	0.20%
				$	347,379	100.00%	$	330,343	100.00%
Schedule of Accounts Receivable and Allowances	'
		31-May-14		28-Feb-14
	Loan commitment and other receivables	$	267,243	$	269,039
	Allowance for doubtful accounts		-239,000		-239,000
	Balance	$	28,243	$	30,039

Prepaid_Drilling_Costs_Tables

Prepaid Drilling Costs (Tables)	3 Months Ended
	31-May-14
Prepaid Expense and Other Assets [Abstract]	'
Schedule of Prepaid Drilling Costs	'
		31-May-14		28-Feb-14
	California	$	16,452	$	16,452
	Kentucky		341,928		-1,538
	Balance	$	358,380	$	14,915

Oil_and_Gas_Properties_Tables

Oil and Gas Properties (Tables)	3 Months Ended
	31-May-14
OIL AND GAS PROPERTIES, net, successful efforts method	'
Capitalized Costs Relating to Oil and Gas Activities	'
		31-May-14		28-Feb-14
	Proved leasehold costs	$	2,236	$	2,236
	Unproved leasehold costs		1,269,424		1,261,156
	Costs of wells and development		1,050,404		492,970
	Capitalized exploratory well costs		3,978,208		4,018,899
	Total cost of oil and gas properties		6,300,272		5,775,261
	Accumulated depletion, depreciation, amortization and impairment		-1,718,602		-1,599,140
	Net oil and gas properties	$	4,581,670	$	4,176,121

Production_Revenue_Receivable_

Production Revenue Receivable (Tables)	3 Months Ended
	31-May-14
Production Revenue Receivable	'
Schedule of Production Revenue Receivable	'
		31-May-14		28-Feb-14
	Production revenue receivable – current	$	120,000	$	120,000
	Production revenue receivable – non-current		125,000		155,000
		$	245,000	$	275,000

Deferred_Financing_Costs_Table

Deferred Financing Costs (Tables)	3 Months Ended
	31-May-14
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]	'
Schedule of Other Assets	'
		31-May-14		28-Feb-14
	Deferred financing costs – loan fees	$	151,139	$	151,139
	Deferred financing costs – loan commissions		630,662		476,103
	Deferred financing costs – fair value of warrants		530,488		530,488
	Deferred financing costs – fair value of common stock		419,832		419,832
			1,732,121		1,577,562
	Accumulated amortization		-354,524		-250,962
	Balance	$	1,377,597	$	1,326,600

Note_Receivable_Tables

Note Receivable (Tables)	3 Months Ended
	31-May-14
Receivables [Abstract]	'
Schedule of Financing Receivables	'
		31-May-14		28-Feb-14
	Note receivable – current	$	2,058,247	$	793,727
	Note receivable – non-current		3,435,383		2,756,273
		$	5,493,630	$	3,550,000

Current_and_NonCurrent_Borrowi1

Current and Non-Current Borrowings (Tables)	3 Months Ended
	31-May-14
Debt Disclosure [Abstract]	'
Schedule of Notes Payable	'
	Current Notes
		31-May-14		28-Feb-14
	12% Subordinated Notes	$	345,000	$	345,000
	12% Subordinated Notes Discount		-12,801		-17,129
		$	332,199	$	327,871
	Current Notes - Related Party
		31-May-14		28-Feb-14
	12% Subordinated Notes, related party	$	250,000	$	250,000
	12% Subordinated Notes discount, related party		-9,420		-12,605
		$	240.58	$	237,395
Schedule of Current and Non-Current Borrowings	'
	Current Debt
		31-May-14		28-Feb-14
	Maximilian Note	$	1,991,679	$	2,163,405
	Maximilian Note Discount		-138,955		-138,988
		$	1,852,724	$	2,024,417
	Non-current Debt
		31-May-14		28-Feb-14
	Maximilian Note	$	9,778,689	$	6,833,703
	Maximilian Note Discount		-169,624		-204,065
		$	9,609,065	$	6,629,638

Stockholders_Deficit_Tables

Stockholders' Deficit (Tables)	3 Months Ended
	31-May-14
Equity [Abstract]	'
Schedule of Stockholder's Equity	'
	Fiscal Period		Shares of Series		Shares of		Number of
			A Preferred		Common Stock		Accredited
			Converted to		Issued from		Investors
			Common Stock		Conversion
	Year Ended February 29, 2008		102,300		306,900		10
	Year Ended February 28, 2009		237,000		711,000		12
	Year Ended February 28, 2010		51,900		155,700		4
	Year Ended February 28, 2011		102,000		306,000		4
	Year Ended February 29, 2012		-		-		-
	Year Ended February 28, 2013		18,000		54,000		2
	Year Ended February 28, 2014		151,000		453,000		9
	Three Months Ended May 31, 2014		-		-		-
	Totals		662,200		1,986,600		41
Schedule of Dividends Payable	'
	Fiscal Period		Shareholders at Period End		Earned Dividends
	Year Ended February 28, 2007		100		$	155,311
	Year Ended February 29, 2008		90			242,126
	Year Ended February 28, 2009		78			209,973
	Year Ended February 28, 2010		74			189,973
	Year Ended February 28, 2011		70			173,707
	Year Ended February 29, 2012		70			163,624
	Year Ended February 28, 2013		68			161,906
	Year Ended February 28, 2014		59			151,323
	Three Months Ended May 31, 2014		59			33,461
	Total Accumulated Dividends				$	1,481,404
Schedule of Common Stock Outstanding	'
		Common Stock		Valuation
		Balance
	Common stock, Issued and Outstanding, February 28, 2014	55,509,411
	Exercise of warrants issued with 12% Subordinated Notes	50,000		$	50
	Cashless exercise of warrants issued in connection with financing	1,873,554		$	1,874
	Common stock to warrant exchange (Maximilian)	-427,729		$	-428
	Common stock, Issued and Outstanding, May 31, 2014	57,005,236

Warrants_Tables

Warrants (Tables)	3 Months Ended
	31-May-14
Warrants and Rights Note Disclosure [Abstract]	'
Schedule of Stockholders' Equity Note Warrants and Rights	'
		Warrants	Exercise	Remaining	Exercisable
			Price	Life	Warrants
				(Years)	Remaining
	12% Subordinated notes	1,190,000	$0.14	0.5	1,040,000
	Warrants issued in 2010 for services	150,000	$0.14	1	150,000
	Warrants issued in 2012 for debt financing	2,435,517	$0.04	3.5	316,617
	Warrants issued for Kentucky oil project	3,498,601	$0.10	2.25	3,498,601
	Warrants issued for Kentucky debt financing	2,623,951	$0.10	2.25	2,623,951
	Warrants issued for Kentucky debt financing	309,503	$0.21	4.25	309,503
	Warrants issued in share-for-warrant exchange	427,729	$0.10	2.25	427,729
		10,635,301			8,366,401

Restricted_Stock_and_Restricte1

Restricted Stock and Restricted Stock Unit Plan (Tables)	3 Months Ended
	31-May-14
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]	'
Schedule of Restricted Stock and Restricted Stock Unit Activity	'
	Grant	Shares	Vesting	Shares	Shares	Shares
	Date	Awarded	Period	Vested(1)	Returned(2)	Outstanding
						(Unvested)
	4/7/09	1,900,000	3 Years	1,900,000	-	-
	7/16/09	25,000	3 Years	25,000	-	-
	7/16/09	625,000	4 Years	619,130	5,870	-
	7/22/10	25,000	3 Years	25,000	-	-
	7/22/10	425,000	4 Years	312,880	5,870	106,250
		3,000,000		2,882,010(1)	11,740	106,250

Income_Taxes_Tables

Income Taxes (Tables)	3 Months Ended
	31-May-14
Income Tax Disclosure [Abstract]	'
Schedule of Components of Income Tax Expense Benefit	'
		31-May-14		28-Feb-14
	Computed at U.S. and state statutory rates (40%)	$	-103,063	$	-559,340
	Permanent differences		30,163		94,980
	Changes in valuation allowance		72,900		464,360
	Total	$	-	$	-
Schedule of Deferred Tax Assets and Liabilities	'
		31-May-14		28-Feb-14
	Deferred tax assets:
	Net operating loss carryforwards	$	8,655,176	$	8,344,222
	Oil and gas properties		-1,047,396		-832,267
	Stock based compensation		88,471		87,716
	Other		(35,122)		-11,442
	Less valuation allowance		-7,661,129		-7,588.23
	Total	$	-	$	-

Going_Concern_Details_Narrativ

Going Concern (Details Narrative) (USD $)	31-May-14
Working capital deficit	$3,410,021
East Slopes Project	'
Number of producing wells, net revenue interest	20
Average working interest	36.80%
Average net revenue interest	28.40%
Twin Bottoms Field	'
Number of producing wells, net revenue interest	9
Average working interest	22.50%
Average net revenue interest	19.70%
Kentucky acreage	6,400

Concentration_of_Credit_Risk_D

Concentration of Credit Risk (Details 1) (USD $)	12 Months Ended
	31-May-14	Feb. 28, 2014
Revenue receivable	$347,379	$330,343
Plains Marketing (California - East Slopes Project (Oil))	'	'
Revenue receivable	251,074	244,384
Percent of revenue	72.30%	74.00%
Appalachian Oil (Kentucky - Twin Bottoms Field (Oil))	'	'
Revenue receivable	89,729	85,120
Percent of revenue	25.80%	25.80%
Jefferson Gas (Kentucky - Twin Bottoms Field (Gas))	'	'
Revenue receivable	$6,576	$839
Percent of revenue	1.90%	0.20%

Concentration_of_Credit_Risk_D1

Concentration of Credit Risk (Details 2) (USD $)	31-May-14	Feb. 28, 2014
Risks and Uncertainties [Abstract]	'	'
Loan commitment and other receivables	$267,243	$269,039
Allowance for doubtful accounts	-239,000	-239,000
Accounts receivable	$28,243	$30,039

Prepaid_Drilling_Costs_Details

Prepaid Drilling Costs (Details Narrative) (USD $)	31-May-14	Feb. 28, 2014
Prepaid drilling costs	$358,380	$14,915
Kern County, California	'	'
Prepaid drilling costs	16,452	16,452
Lawrence County, Kentucky	'	'
Prepaid drilling costs	$341,928	($1,538)

Oil_and_Gas_Properties_Details

Oil and Gas Properties (Details) (USD $)	31-May-14	Feb. 28, 2014
OIL AND GAS PROPERTIES, net, successful efforts method	'	'
Proved leasehold costs	$2,236	$2,236
Unproved leasehold costs	1,269,424	1,261,156
Costs of wells and development	1,050,404	492,970
Capitalized exploratory well costs	3,978,208	4,018,899
Total cost of oil and gas properties	6,300,272	5,775,261
Accumulated depletion, depreciation, amortization and impairment	-1,718,602	-1,599,140
Net oil and gas properties	$4,581,670	$4,176,121

Production_Revenue_Receivable_1

Production Revenue Receivable (Details) (USD $)	31-May-14	Feb. 28, 2014
Production Revenue Receivable	'	'
Production revenue receivable, current	$120,000	$120,000
Production revenue receivable, non-current	$125,000	$155,000

Deferred_Financing_Costs_Detai

Deferred Financing Costs (Details) (USD $)	31-May-14	Feb. 28, 2014
Deferred Finance Costs [Abstract]	'	'
Deferred financing costs, loan fees	$151,139	$151,139
Deferred financing costs, loan commissions	630,662	476,103
Deferred financing costs, fair value of warrants	530,488	530,488
Deferred financing costs, fair value of common stock	419,832	419,832
Accumulated amortization	-354,524	-250,962
Deferred finance costs, balance	$1,377,597	$1,326,600

Deferred_Financing_Costs_Detai1

Deferred Financing Costs (Details Narrative) (USD $)	3 Months Ended
	31-May-14
Deferred Finance Costs [Abstract]	'
Increase in deferred financing costs of loan commissions	$154,559
Amortization expense of deferred financing costs	$103,562

Note_Receivable_Details

Note Receivable (Details) (USD $)	31-May-14	Feb. 28, 2014
Receivables [Abstract]	'	'
Note receivable, current	$2,058,247	$793,727
Note receivable, non-current	$3,435,383	$2,756,273

Note_Receivable_Details_Narrat

Note Receivable (Details Narrative) (App Note Receivable, USD $)	3 Months Ended
	31-May-14
App Note Receivable	'
Credit facility, advances on note receivable	$6,150,000

Accounts_Payable_Details_Narra

Accounts Payable (Details Narrative) (USD $)	3 Months Ended
	31-May-14
Payables and Accruals [Abstract]	'
Acquisition and disposition of East Slopes Project	'On March 1, 2009, the Company became the operator for the East Slopes Project. The Company assumed certain original defaulting partners' approximate $1.5 million liability representing a 25% working interest in the drilling and completion costs associated with the East Slopes Project four earning well program. The Company subsequently sold the 25% working interest on June 11, 2009.
Accounts payable balance	$261,349

Current_and_NonCurrent_Borrowi2

Current and Non-Current Borrowings (Details 1) (USD $)	31-May-14	Feb. 28, 2014
Notes Payable - 12% Subordinated Notes	'	'
Notes payable	$345,000	$345,000
Notes payable discount	-12,801	-17,129
Note payable balance	332,199	327,871
Notes Payable - Related Party - 12% Subordinated Notes	'	'
Notes payable	250,000	250,000
Notes payable discount	-9,420	-12,605
Note payable balance	$240,580	$237,395

Current_and_NonCurrent_Borrowi3

Current and Non-Current Borrowings (Details 2) (Maximilian Note Payable, USD $)	31-May-14	Feb. 28, 2014
Maximilian Note Payable	'	'
Current debt, note	$1,991,679	$2,163,405
Current debt, note discount	-138,955	-138,988
Current debt, note balance	1,852,724	2,024,417
Non-current debt, note	9,778,689	6,833,703
Non-current debt, note discount	-169,624	-204,065
Non-current debt, note balance	$9,609,065	$6,629,638

Current_and_NonCurrent_Borrowi4

Current and Non-Current Borrowings (Details Narrative) (USD $)	3 Months Ended			3 Months Ended	12 Months Ended	1 Months Ended	3 Months Ended
	31-May-14	31-May-13	Feb. 28, 2014	31-May-14	Feb. 28, 2010	Oct. 31, 2012	31-May-14	31-May-14	31-May-14	31-May-14
				Long-Term - 12% Subordinated Notes	Long-Term - 12% Subordinated Notes	Maximilian Loan	Maximilian Loan	Maximilian - Amended and Restated Loan Agreement	Line of Credit	Maximilian/App Loan Agreement - Stock and Warrants
Interest rate	'	'	'	'	12.00%	'	'	'	'	'
Expiration period	'	'	'	'	29-Jan-15	'	'	'	'	'
Payment terms	'	'	'	'	'Should the Board of Directors, on the maturity date, decide that the payment of the principal and any unpaid interest would impair the financial condition or operations of the Company, the Company may then elect a mandatory conversion of the unpaid principal and interest into the Company's Common Stock at a conversion rate equal to 75% of the average closing price of the Company's Common Stock over the 20 consecutive trading days preceding December 31, 2014.	'	'	'	'	'
Warrants issued	'	'	'	'	1,190,000	2,435,517	'	'	'	6,100,000
Warrant exercise price	$0.11	'	'	'	$0.14	$0.04	'	'	'	$0.10
Warrant exercisable date	'	'	'	'	'	'	'	'	'	28-Aug-13
Warrant expiration date	'	'	'	'	29-Jan-15	31-Oct-17	'	'	'	28-Aug-16
Fair value of stocks and warrants	'	'	'	'	$116,557	$98,084	'	'	'	'
Weighted average risk free interest rate	'	'	'	'	2.33%	0.72%	'	'	'	'
Weighted average volatility rate	'	'	'	'	147.60%	153.44%	'	'	'	'
Stock price, fair value assumption	'	'	'	'	'	$0.04	'	'	'	'
Amortization of debt discount	41,987	38,147	'	7,513	'	515,638	34,474	'	'	'
Unamortized debt discount	'	'	'	'	'	'	308,579	'	'	'
Credit facility, description	'	'	'	'	'	'The Company entered into a loan agreement with Maximilian Investors LLC which provided for a revolving credit facility of up to $20 million, maturing on October 31, 2016, with a minimum commitment of $2.5 million. The loan had annual interest of 18% and a monthly commitment fee of 0.5%. The Company also granted Maximilian a 10% working interest in its share of the oil and gas leases in Kern County, California.	'	'The Company's revolving credit facility was increased to $90 million. The first borrowing sublimit is $50 million and is for borrowing by the Company, primarily for its ongoing oil and gas exploration and development activities. The second borrowing sublimit, of $40 million, is for loans to be extended by the Company, as lender, to App, as borrower pursuant to a Loan and Security Agreement entered into between the Company and App.	'	'
Maximum borrowing	'	'	'	'	'	20,000,000	'	90,000,000	890,000	'
Credit facility, advances	'	'	'	'	'	'	3,500,000	'	'	'
Expiration date	'	'	'	'	'	31-Oct-16	'	28-Aug-17	'	'
Minimum commitment terms	'	'	'	'	'	'Minimum commitment of $2,500,000	'	'	'	'
Commitment fee percentage	'	'	'	'	'	0.50%	'	0.50%	'	'
Line of credit, amount outstanding	'	'	'	'	'	'	'	'	881,064	'
Line of credit, interest expense	'	'	'	'	'	'	'	'	7,835	'
Line of credit, interest rate	'	'	'	'	'	'	'	'	'Payable monthly at a stated reference rate of 0.249% + 337.5 basis points. The reference rate is based on the 30 day LIBOR ("London Interbank Offered Rate") and is subject to change from UBS.	'
Line of credit facility, interest rate	'	'	'	'	'	18.00%	'	12.00%	'	'
Deferred finance costs	'	'	'	'	'	'	154,559	400,349	'	'
Common stock issued, shares	57,005,236	'	55,509,411	'	'	'	'	'	'	6,100,000
Common stock issued, value	57,005	'	55,509	'	'	'	'	'	'	'
Unproved oil properties, stock and warrant value allocation	$1,269,424	'	$1,261,156	'	'	'	'	'	'	'

Stockholders_Deficit_Details_1

Stockholders' Deficit (Details 1)	3 Months Ended	12 Months Ended
	31-May-14	Feb. 28, 2014	Feb. 28, 2013	Feb. 29, 2012	Feb. 28, 2011	Feb. 28, 2010	Feb. 28, 2009	Feb. 29, 2008
	NoOfInvestors	NoOfInvestors	NoOfInvestors	NoOfInvestors	NoOfInvestors	NoOfInvestors	NoOfInvestors	NoOfInvestors
Equity [Abstract]	'	'	'	'	'	'	'	'
Series A preferred shares converted to common stock	0	151,000	18,000	0	102,000	51,900	237,000	102,300
Shares of common stock issued from conversion	0	453,000	54,000	0	306,000	155,700	711,000	306,900
Accredited investors	0	9	2	0	4	4	12	10

Stockholders_Deficit_Details_2

Stockholders' Deficit (Details 2) (USD $)	3 Months Ended	12 Months Ended
	31-May-14	Feb. 28, 2014	Feb. 28, 2013	Feb. 29, 2012	Feb. 28, 2011	Feb. 28, 2010	Feb. 28, 2009	Feb. 29, 2008	Feb. 28, 2007
Equity [Abstract]	'	'	'	'	'	'	'	'	'
Preferred shareholders at period end	'59	'59	'68	'70	'70	'74	'78	'90	'100
Earned dividends	$33,461	$151,323	$161,906	$163,624	$173,707	$189,973	$209,973	$242,126	$155,311
Total accumulated dividends	$1,481,404	'	'	'	'	'	'	'	'

Stockholders_Deficit_Details_3

Stockholders' Deficit (Details 3) (USD $)	3 Months Ended
	31-May-14
Common Stock Outstanding [Roll Forward]	'
Common Stock, Issued and Outstanding, February 28, 2014	55,509,411
Exercise of warrants issued with 12% Subordinated Notes	50,000
Exercise of warrants issued with 12% Subordinated Notes, valuation	$50
Cashless exercise of warrants issued in connection with financing	1,873,554
Cashless exercise of warrants issued in connection with financing, valuation	1,874
Common Stock to warrant exchange, Maximilian	-427,729
Common Stock to warrant exchange, Maximilian, valuation	($428)
Common Stock, Issued and Outstanding, May 31, 2014	57,005,236

Warrants_Details

Warrants (Details) (USD $)	3 Months Ended
	31-May-14
Exercise price	$0.11
Remaining life (years)	'2 years 2 months
12% Subordinated Notes	'
Warrants	$1,090,000
Exercise price	$0.14
Remaining life (years)	'0 years 6 months
Warrants Issued In 2010 For Services	'
Warrants	150,000
Exercise price	$0.14
Remaining life (years)	'1 year 0 months
Warrants Issued In 2012 For Debt Financing	'
Warrants	2,435,517
Exercise price	$0.04
Remaining life (years)	'3 years 6 months
Warrants Issued for Kentucky Oil Project	'
Warrants	3,498,601
Exercise price	$0.10
Remaining life (years)	'2 years 3 months
Warrants Issued for Kentucky Debt Financing #1	'
Warrants	2,623,951
Exercise price	$0.10
Remaining life (years)	'2 years 3 months
Warrants Issued for Kentucky Debt Financing #2	'
Warrants	309,503
Exercise price	$0.21
Remaining life (years)	'4 years 3 months
Warrants Issued in Share-for-Warrant Exchange	'
Warrants	$427,729
Exercise price	$0.10
Remaining life (years)	'2 years 3 months

Warrants_Details_Narrative

Warrants (Details Narrative) (USD $)	3 Months Ended
	31-May-14
Warrants and Rights Note Disclosure [Abstract]	'
Warrants exercised	2,168,900
Outstanding warrants, weighted average exercise price	$0.11
Weighted average remaining life	'2 years 2 months
Intrinsic value	$1,942,783

Restricted_Stock_and_Restricte2

Restricted Stock and Restricted Stock Unit Plan (Details)	3 Months Ended
	31-May-14
Restricted shares, vested	2,893,750
Grant Date - 04/07/2009	'
Restricted shares, awarded	1,900,000
Restricted shares, vesting period	'3 years
Restricted shares, vested	1,900,000	[1]
Restricted shares, returned	0	[2]
Restricted shares, outstanding, unvested	0
Grant Date (A) - 07/16/2009	'
Restricted shares, awarded	25,000
Restricted shares, vesting period	'3 years
Restricted shares, vested	25,000	[1]
Restricted shares, returned	0	[2]
Restricted shares, outstanding, unvested	0
Grant Date (B) - 07/16/2009	'
Restricted shares, awarded	625,000
Restricted shares, vesting period	'4 years
Restricted shares, vested	619,130	[1]
Restricted shares, returned	5,870	[2]
Restricted shares, outstanding, unvested	0
Grant Date (A) - 07/22/2010	'
Restricted shares, awarded	25,000
Restricted shares, vesting period	'3 years
Restricted shares, vested	25,000	[1]
Restricted shares, returned	0	[2]
Restricted shares, outstanding, unvested	0
Grant Date (B) - 07/22/2010	'
Restricted shares, awarded	425,000
Restricted shares, vesting period	'4 years
Restricted shares, vested	312,880	[1]
Restricted shares, returned	5,870	[2]
Restricted shares, outstanding, unvested	106,250
[1]	Does not include shares that were withheld to satisfy such tax liability upon vesting of a restricted award by a Plan Participant, and subsequently returned to the 2009 Plan.
[2]	Reflects the number of common shares that were withheld pursuant to the settlement of the number of shares with a fair market value equal to such tax withholding liability, to satisfy such tax liability upon vesting of a restricted award by a Plan Participant.

Restricted_Stock_and_Restricte3

Restricted Stock and Restricted Stock Unit Plan (Details Narrative) (USD $)	3 Months Ended
	31-May-14
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]	'
Restricted shares available for grant	1,011,740
Restricted shares awarded	2,882,010
Restricted shares vested	2,893,750
Recognized compensation expense	$1,887
Unamortized compensation expense	$628

Income_Taxes_Details_1

Income Taxes (Details 1) (USD $)	3 Months Ended	12 Months Ended
	31-May-14	Feb. 28, 2014
Income Tax Expense Benefit Continuing Operations Income Tax Reconciliation	'	'
Computed at U.S. and state statutory rates (40%)	($103,063)	($559,340)
Permanent differences	30,163	94,980
Changes in valuation allowance	$72,900	$464,360

Income_Taxes_Details_2

Income Taxes (Details 2) (USD $)	3 Months Ended	12 Months Ended
	31-May-14	Feb. 28, 2014
Deferred tax assets:	'	'
Net operating loss carryforwards	$8,655,176	$8,344,222
Oil and gas properties	-1,047,396	-832,267
Stock based compensation	88,471	87,716
Other	-35,122	-11,442
Less valuation allowance	($7,661,129)	($7,588,229)

Income_Taxes_Details_Narrative

Income Taxes (Details Narrative) (USD $)	31-May-14
Income Tax Disclosure [Abstract]	'
Net operating loss carryforwards, federal and state	$21,637,940