Arkanova Energy (AKVA) 10-Q 14 Aug 14 2014 Q3 Quarterly report Financial data

Document_and_Entity_Informatio

Document and Entity Information	9 Months Ended
	Jun. 30, 2014	Aug. 13, 2014
Document and Entity Information [Abstract]	'	'
Entity Registrant Name	'ARKANOVA ENERGY CORP.	'
Entity Central Index Key	'0001191359	'
Current Fiscal Year End Date	'--09-30	'
Entity Filer Category	'Smaller Reporting Company	'
Document Type	'10-Q	'
Document Period End Date	30-Jun-14	'
Document Fiscal Year Focus	'2014	'
Document Fiscal Period Focus	'Q3	'
Amendment Flag	'false	'
Entity Common Stock, Shares Outstanding	'	54,182,267
Entity Well-known Seasoned Issuer	'No	'
Entity Voluntary Filers	'No	'
Entity Current Reporting Status	'Yes	'

Consolidated_Balance_Sheets_un

Consolidated Balance Sheets (unaudited) (USD $)	Jun. 30, 2014	Sep. 30, 2013
ASSETS	'	'
Cash and cash equivalents	$1,551,705	$540,636
Short term investment	25,062	15,000
Oil and gas receivables	140,797	134,842
Prepaid expenses and other	504,693	299,147
Total current assets	2,222,257	989,625
Property and equipment, net of accumulated depreciation of $335,670 and $255,032	268,672	273,581
Oil and gas properties, full cost method	'	'
Evaluated, net of accumulated depletion and impairment of $18,306,468 and $17,332,325	706,817	1,066,680
Other Assets	97,000	97,000
Total assets	3,294,746	2,426,886
LIABILITIES AND STOCKHOLDERS' DEFICIT	'	'
Accounts payable	368,544	521,681
Accrued liabilities	439,027	392,058
Due to related party	44,029	265,029
Notes payable	19,425	10,127,592
Project advances	1,395,000	'
Other liabilites	37,500	37,500
Total current liabilities	2,303,525	11,343,860
Loans payable	41,227	55,867
Notes payable	11,811,025	'
Asset retirement obligations	145,671	135,888
Other liabilities	56,250	84,375
Total liabilities	14,357,698	11,619,990
Contingencies and commitments	'	'
Stockholders' Deficit	'	'
Common Stock, $0.001 par value, 1,000,000,000 shares authorized, 54,182,267 (September 30, 2013 - 49,514,115) shares issued and outstanding	54,182	49,514
Additional paid-in capital	19,387,453	18,823,339
Accumulated deficit	-30,504,587	-28,065,957
Total stockholders' deficit	-11,062,952	-9,193,104
Total liabilities and stockholders' deficit	$3,294,746	$2,426,886

Consolidated_Balance_Sheets_un1

Consolidated Balance Sheets (unaudited) (Parenthetical) (USD $)	Jun. 30, 2014	Sep. 30, 2013
ASSETS	'	'
Property and equipment, accumulated depreciation	$335,670	$255,032
Oil and gas properties evaluated, accumulated depletion	$18,306,468	$17,332,325
Stockholders' Deficit	'	'
Common Stock, par value (in Dollars per Share)	$0.00	$0.00
Common Stock, shares authorized (in Shares)	1,000,000,000	1,000,000,000
Common Stock, shares issued (in Shares)	54,182,267	49,514,115
Common Stock, shares outstanding (in Shares)	54,182,267	49,514,115

Consolidated_Statements_of_Ope

Consolidated Statements of Operations (unaudited) (USD $)	3 Months Ended		9 Months Ended
	Jun. 30, 2014	Jun. 30, 2013	Jun. 30, 2014	Jun. 30, 2013
Revenue	'	'	'	'
Oil and gas sales	$211,597	$175,227	$596,915	$555,408
Operator income	20,250	20,250	60,750	60,750
Total revenue	231,847	195,477	657,665	616,158
Expenses	'	'	'	'
General and administrative expenses	330,792	297,200	1,042,803	930,529
Oil and gas production costs	151,469	136,297	554,699	416,996
Accretion expenses	3,337	3,041	9,783	8,915
Depletion	183,001	53,786	343,356	172,096
Impairment of oil and gas properties	386,059	'	630,787	'
Loss on disposal of equipment	'	'	'	1,917
Operating loss	-822,811	-294,847	-1,923,763	-914,295
Other income (expenses)	'	'	'	'
Interest expense	-176,995	-160,282	-514,867	-421,619
Gain on derivative liability	'	'	'	2,919
Loss on settlement of debt	'	'	'	-29,165
Gain on forgiveness of debt	'	'	'	14,466
Net loss	($999,806)	($455,129)	($2,438,630)	($1,347,694)
Loss per share - basic and diluted (in Dollars per Share)	($0.02)	($0.01)	($0.04)	($0.03)
Basic weighted average common shares outstanding (in Shares)	54,182,000	49,514,000	52,438,000	48,646,000
Diluted weighted average common shares outstanding (in Shares)	54,182,000	49,514,000	52,438,000	48,646,000

Consolidated_Statements_of_Cas

Consolidated Statements of Cash Flows (unaudited) (USD $)	9 Months Ended
	Jun. 30, 2014	Jun. 30, 2013
Operating Activities	'	'
Net loss	($2,438,630)	($1,347,694)
Adjustment to reconcile net loss to net cash provided by (used in) operating activities:	'	'
Accretion	9,783	8,915
Depreciation	80,638	49,962
Depletion	343,356	172,096
Impairment of oil and gas properties	630,787	'
Gain on derivative liability	'	-2,919
Stock-based compensation	101,967	'
Loss on settlement of debt	'	29,165
Gain on forgiveness of debt	'	-14,466
Loss on disposal of equipment	'	1,917
Changes in operating assets and liabilities:	'	'
Prepaid expenses and other receivables	-206,296	12,476
Oil and gas receivables	-5,205	-82,709
Accounts payable and accrued liabilities	-153,137	-192,817
Accrued interest	513,722	420,442
Project advances	1,395,000	'
Due to related parties	-221,000	21,150
Net Cash Provided by (Used in) Operating Activities	50,985	-924,482
Investing Activities	'	'
Purchase of equipment	-75,729	-37,112
Proceeds from disposal of equipment	'	187
Oil and gas property expenditures	-614,280	-22,279
Purchase of short term investment	-10,000	'
Net Cash Used in Investing Activities	-700,009	-59,204
Financing Activities	'	'
Principal payments on debt	-44,907	-330,291
Repayment of related party loan	'	-600,000
Proceeds from issuance of promissory notes	1,705,000	2,500,000
Proceeds from issuance of common stock	'	300,000
Net Cash Provided by Financing Activities	1,660,093	1,869,709
Net Change in Cash	1,011,069	886,023
Cash and cash equivalents - beginning of period	540,636	74,356
Cash and cash equivalents - end of period	$1,551,705	$960,379
Supplemental Cash Flow and Other Disclosures (Note 11)	'	'

BASIS_OF_PRESENTATION

BASIS OF PRESENTATION	9 Months Ended
	Jun. 30, 2014
BASIS OF PRESENTATION [Abstract]	'
BASIS OF PRESENTATION	'
	NOTE 1: BASIS OF PRESENTATION
	Arkanova Energy Corporation (formerly Alton Ventures, Inc.) (“Arkanova” or the “Company”) was incorporated in the state of Nevada on September 6, 2001 to engage in the acquisition, exploration and development of mineral properties.
	In the opinion of management, the accompanying unaudited consolidated financial statements include all adjustments, consisting of only normal recurring accruals, necessary for a fair statement of financial position, results of operations, and cash flows. The information included in this quarterly report on Form 10-Q should be read in conjunction with the consolidated financial statements and the accompanying notes included in our Annual Report on Form 10-K for the year ended September 30, 2013. The accounting policies are described in the “Notes to the Consolidated Financial Statements” in the 2013 Annual Report on Form 10-K and updated, as necessary, in this Form 10-Q. The year-end consolidated balance sheet data presented for comparative purposes was derived from audited financial statements, but does not include all disclosures required by accounting principles generally accepted in the United States. The results of operations for the nine months ended June 30, 2014 are not necessarily indicative of the operating results for the full year or for any other subsequent interim period.

GOING_CONCERN

GOING CONCERN	9 Months Ended
	Jun. 30, 2014
GOING CONCERN [Abstract]	'
GOING CONCERN	'
	NOTE 2: GOING CONCERN
	Arkanova is primarily engaged in the acquisition, exploration and development of oil and gas resource properties. Arkanova has incurred losses of $30,504,587 since inception to June 30, 2014. Management plans to raise additional capital through equity and/or debt financings. These factors raise substantial doubt regarding Arkanova’s ability to continue as a going concern.

SHORT_TERM_INVESTMENT

SHORT TERM INVESTMENT	9 Months Ended
	Jun. 30, 2014
SHORT TERM INVESTMENT [Abstract]	'
SHORT TERM INVESTMENT	'
	NOTE 3: SHORT TERM INVESTMENT
	On November 22, 2013, the Company invested in a deposit for $25,000 (September 30, 2013 - $15,000). The term of the investment is 12 months, maturing on November 22, 2014 and bears interest at a rate of 0.5% annually. The investment is to secure a letter to the US Environmental Protection Agency for $23,595 for one of the Company’s wells.

OIL_AND_GAS_INTERESTS

OIL AND GAS INTERESTS	9 Months Ended
	Jun. 30, 2014
OIL AND GAS INTERESTS [Abstract]	'
OIL AND GAS INTERESTS	'
	NOTE 4: OIL AND GAS INTERESTS
	Arkanova is currently participating in oil and gas exploration activities in Colorado and Montana. All of Arkanova’s oil and gas properties are located in the United States.
	Proven and Developed Properties, Colorado and Montana
	At June 30, 2014 the carrying value of the evaluated oil and gas properties exceeded the present value of the estimated future net revenue, therefore, an impairment of $630,787 (September 30, 2013 - $519,125) was recorded. The carrying value of Arkanova’s evaluated oil and gas properties at June 30, 2014 and September 30, 2013 was $706,817 and $1,066,680, respectively.
	At June 30, 2014 the Company holds $1,395,000 of project advances shown as a current liability on the consolidated balance sheet. These funds were received from the other working interest partners and will be used for costs incurred on the waterflood project.

EARNINGS_LOSS_PER_SHARE

EARNINGS (LOSS) PER SHARE	9 Months Ended
	Jun. 30, 2014
EARNINGS (LOSS) PER SHARE [Abstract]	'
EARNINGS (LOSS) PER SHARE	'
	NOTE 5: EARNINGS (LOSS) PER SHARE
	A reconciliation of the components of basic and diluted net income per common share is presented in the tables below:
			For the Three months Ended June 30,
			2014							2013
					Weighted							Weighted
					Average							Average
					Common							Common
			Income		Shares		Per			Income		Shares		Per
			(Loss)		Outstanding		Share			(Loss)		Outstanding		Share
	Basic:
	Income (loss) attributable to	$	(999,806	)	54,182,000	$	(0.02	)	$	(455,129	)	49,514,000	$	(0.01	)
	common stock
	Effective of Dilutive Securities:
	Stock options and other		–		–		–			–		–		–
	Diluted:
	Income (loss) attributable to	$	(999,806	)	54,182,000	$	(0.02	)	$	(455,129	)	49,514,000	$	(0.01	)
	common stock, including
	assumed conversions
			For the Nine months Ended June 30,
			2014							2013
					Weighted							Weighted
					Average							Average
					Common							Common
			Income		Shares		Per			Income		Shares		Per
			(Loss)		Outstanding		Share			(Loss)		Outstanding		Share
	Basic:
	Income (loss) attributable to	$	(2,438,630	)	52,438,000	$	(0.05	)	$	(1,347,694	)	48,646,000	$	(0.03	)
	common stock
	Effective of Dilutive Securities:
	Stock options and other		–		–		–			–		–		–
	Diluted:
	Income (loss) attributable to	$	(2,438,630	)	52,438,000	$	(0.05	)	$	(1,347,694	)	48,646,000	$	(0.03	)
	common stock, including
	assumed conversions

RELATED_PARTY_TRANSACTIONS

RELATED PARTY TRANSACTIONS	9 Months Ended
	Jun. 30, 2014
RELATED PARTY TRANSACTIONS [Abstract]	'
RELATED PARTY TRANSACTIONS	'
	NOTE 6: RELATED PARTY TRANSACTIONS
	a)	At June 30, 2014, the Company owed management fees of $5,000 (September 30, 2013 - $145,000) to the President of the Company and $39,029 (September 30, 2013 - $120,029) to the CFO of the Company.
	b)	On March 1, 2014, the Company granted 300,000 options to the Company’s CEO and 300,000 options to the Company’s CFO. The fair value of the stock options granted was $23,289.

NOTES_PAYABLE

NOTES PAYABLE	9 Months Ended
	Jun. 30, 2014
NOTES PAYABLE [Abstract]	'
NOTES PAYABLE	'
	NOTE 7: NOTES PAYABLE
	(a)	On November 15, 2013, the Company’s subsidiary entered into a Loan Modification Agreement to borrow an additional $1,705,000 for a total amount of $11,811,025, extend the maturity date from March 31, 2014 to December 31, 2015, and converted outstanding accrued interest of $466,815 into 4,668,152 shares of common stock at a deemed price of $0.10 per share. The common shares were issued on January 10, 2014. Refer to Note 8.
		Arkanova evaluated the November 15, 2013 modification under the guidance found in ASC 470-50 and ASC 470-60 and determined that the carrying value of the 2012 Note did not exceed the total future cash payments of the 2013 Note and that the notes were not substantially different. As a result, it was concluded that the revised terms constituted a debt modification rather than a debt extinguishment and no gain or loss was recorded.
	(b)	On November 24, 2009, the Company entered into a loan agreement in the amount of $56,303 to purchase equipment. The loan bears interest at 7.69% and is to be repaid in 48 equal monthly installments commencing December 30, 2009. During the nine months ended June 30, 2014, the Company repaid a principal amount of $2,707. At June 30, 2014, the balance of the loan is $nil.
	(c)	On June 25, 2013, the Company entered into a loan agreement in the amount of $79,300 to purchase equipment. The loan bears interest at 3.95% and is to be repaid in 48 equal monthly installments commencing July 28, 2013. During the nine months ended June 30, 2014, the Company repaid a principal amount of $14,075. At June 30, 2014, the balance of the loan is $60,652.

COMMON_STOCK

COMMON STOCK	9 Months Ended
	Jun. 30, 2014
COMMON STOCK [Abstract]	'
COMMON STOCK	'
	NOTE 8: COMMON STOCK
	Common stock
	On January 10, 2014, Arkanova issued 4,668,152 shares of common stock to Aton Select Funds Limited as an interest payment for outstanding interest of $466,815.
	Stock Options
	On April 25, 2007, Arkanova adopted a stock option plan named the 2007 Stock Option Plan (the “Plan”), the purpose of which is to attract and retain the best available personnel and to provide incentives to employees, officers, directors and consultants, all in an effort to promote the success of Arkanova. Prior to the grant of options under the 2007 Stock Option Plan, there were 5,000,000 shares of Arkanova’s common stock available for issuance under the plan.
	On July 17, 2010, Arkanova amended and restated the 2008 Amended Stock Option Plan to revise the termination provision for vested Non-Qualified Stock Options. The termination date of vested Non-Qualified Stock Options was extended from a period of three months to a period of one year.
	On March 1, 2014, the Company granted 1,600,000 stock options valued at $62,100 with immediate vesting to directors, officers, and employees to acquire 1,600,000 common shares at an exercise price of $0.10 per share expiring in 5 years. The grant date fair value of the options using the Black-Scholes option pricing model was $0.04 using the following assumptions:
	Expected dividend yield	0.00%
	Expected volatility	209%
	Expected life (in years)	5
	Risk-free interest rate	1.51%
	During the nine months ended June 30, 2014 and 2013, no stock options were exercised. Stock-based compensation of $101,967 (2013 - $nil) was recorded for the nine months ended June 30, 2014. During the nine months ended June 30, 2014, nil (2013 – 1,303,333) stock options expired unexercised.
	A summary of Arkanova’s stock option activity is as follows:
							Weighted Average
			Number of			Weighted Average	Remaining		Aggregate
			Options			Exercise Price	Contractual Term		Intrinsic Value
	Outstanding, September 30, 2013		3,200,000		$	0.22
	Granted		1,600,000		$	0.10
	Expired		–			–
	Outstanding, June 30, 2014		4,800,000		$	0.10*
	Exercisable, June 30, 2014		4,800,000		$	0.10*	4.56	$	–
	* On November 15, 2013, Arkanova amended the terms of the outstanding stock options to decrease the exercise price from $0.12 - $0.25 to $0.10 and extend the expiry dates from November 19, 2013 – October 8, 2015 to September 30, 2018 – December 31, 2018. The weighted average grant date fair value of the modified stock options was $0.01 and additional stock-based compensation expense of $39,867 was recognized.
	The fair value of each option amendment was estimated on the date of the amendment using the Black-Scholes option pricing model with the following weighted average assumptions:
		Pre -	Post -
		Amendment	Amendment
	Expected dividend yield	0.00%	0.00%
	Expected volatility	214%	214%
	Expected life (in years)	1.42	5.12
	Risk-free interest rate	0.23%	1.36%
	At June 30, 2014, there was $0 of unrecognized compensation costs related to non-vested share-based compensation arrangements granted under the Plan. There was $0 intrinsic value associated with the outstanding options at June 30, 2014.
	Warrants
	A summary of the changes in the Company’s common share purchase warrants is presented below:
							Weighted
						Weighted	Average
			Number of			Average	Remaining		Aggregate
			Warrants			Exercise Price	Contractual Term		Intrinsic Value
	Outstanding, September 30, 2013		100,000		$	1.00
	Expired		(100,000	)		1
	Outstanding, June 30, 2014		–		$	–	–	$	–

COMMITMENTS

COMMITMENTS	9 Months Ended
	Jun. 30, 2014
COMMITMENTS [Abstract]	'
COMMITMENTS	'
	NOTE 9: COMMITMENTS
	See Note 7.
	(a)	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, which it believes 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 June 30, 2014, which have not been provided for, covered by insurance or otherwise have a material impact on its financial position or results of operations. There can be no assurance, however, that current regulatory requirements will not change, or past noncompliance with environmental laws will not be discovered on the Company’s properties.
	(b)	On June 10, 2011, the Company commenced a lease agreement for a period of 62 months. The monthly base rate begins at $2,750 and increases every 12 months at the average rate of $2,883 per month over the term of the lease.
	(c)	On December 14, 2012, the Company reached a preliminary settlement with Ms. Billie Eustice, whereby it is contemplated that the Company will pay Ms. Eustice $150,000 over four years beginning January 28, 2013 in 48 equal monthly installments in settlement of all outstanding matters and issues between Ms. Eustice and the Company, including the balance owing on the consulting agreement in the amount of $125,000, oil barrels in the tanks at time of purchase, and a refund of $12,000 that was a tax refund prior to the purchase of Provident Energy and cashed by Provident Energy after the purchase. During the three months ended December 31, 2012, the Company recorded a loss of $29,165 on settlement of debt which represents the difference between the amount recorded in accounts payable before the settlement and the agreed settlement amount of $150,000. During the nine months ended June 30, 2014, the Company repaid a total of $28,125 (June 30, 2013 - $18,750) to Ms. Eustice.

ASSET_RETIREMENT_OBLIGATION

ASSET RETIREMENT OBLIGATION	9 Months Ended
	Jun. 30, 2014
ASSET RETIREMENT OBLIGATION [Abstract]	'
ASSET RETIREMENT OBLIGATION	'
	NOTE 10: ASSET RETIREMENT OBLIGATION
	Changes in Arkanova’s asset retirement obligations were as follows:
			Nine months
			ended		Year ended
			June 30,		September 30,
			2014		2013
	Asset retirement obligations, beginning of period	$	135,888	$	123,827
	Accretion expense		9,783		12,061
	Asset retirement obligations, end of period	$	145,671	$	135,888

SUPPLEMENTAL_CASH_FLOW_AND_OTH

SUPPLEMENTAL CASH FLOW AND OTHER DISCLOSURES	9 Months Ended
	Jun. 30, 2014
SUPPLEMENTAL CASH FLOW AND OTHER DISCLOSURES [Abstract]	'
SUPPLEMENTAL CASH FLOW AND OTHER DISCLOSURES	'
	NOTE 11: SUPPLEMENTAL CASH FLOW AND OTHER DISCLOSURES
			Nine months		Nine months
			ended		ended
			June 30,		June 30,
			2014		2013
	Supplemental Disclosures:
	Interest paid	$	2,050	$	–
	Income taxes paid	$	–	$	–
	Non-cash Financing and Investing Activities
	Shares issued to settle accrued interest	$	466,815	$	–
	Accrued interest converted into note payable	$	–	$	291,025
	Note payable related to capital expenditures	$	–	$	79,300

EARNINGS_LOSS_PER_SHARE_Tables

EARNINGS (LOSS) PER SHARE (Tables)	9 Months Ended
	Jun. 30, 2014
EARNINGS (LOSS) PER SHARE [Abstract]	'
Schedule of Earnings Per Share, Basic and Diluted	'
	A reconciliation of the components of basic and diluted net income per common share is presented in the tables below:
			For the Three months Ended June 30,
			2014							2013
					Weighted							Weighted
					Average							Average
					Common							Common
			Income		Shares		Per			Income		Shares		Per
			(Loss)		Outstanding		Share			(Loss)		Outstanding		Share
	Basic:
	Income (loss) attributable to	$	(999,806	)	54,182,000	$	(0.02	)	$	(455,129	)	49,514,000	$	(0.01	)
	common stock
	Effective of Dilutive Securities:
	Stock options and other		–		–		–			–		–		–
	Diluted:
	Income (loss) attributable to	$	(999,806	)	54,182,000	$	(0.02	)	$	(455,129	)	49,514,000	$	(0.01	)
	common stock, including
	assumed conversions
			For the Nine months Ended June 30,
			2014							2013
					Weighted							Weighted
					Average							Average
					Common							Common
			Income		Shares		Per			Income		Shares		Per
			(Loss)		Outstanding		Share			(Loss)		Outstanding		Share
	Basic:
	Income (loss) attributable to	$	(2,438,630	)	52,438,000	$	(0.05	)	$	(1,347,694	)	48,646,000	$	(0.03	)
	common stock
	Effective of Dilutive Securities:
	Stock options and other		–		–		–			–		–		–
	Diluted:
	Income (loss) attributable to	$	(2,438,630	)	52,438,000	$	(0.05	)	$	(1,347,694	)	48,646,000	$	(0.03	)
	common stock, including
	assumed conversions

COMMON_STOCK_Tables

COMMON STOCK (Tables)	9 Months Ended
	Jun. 30, 2014
COMMON STOCK [Abstract]	'
Schedule of Stock Options Activity	'
	A summary of Arkanova’s stock option activity is as follows:
							Weighted Average
			Number of			Weighted Average	Remaining		Aggregate
			Options			Exercise Price	Contractual Term		Intrinsic Value
	Outstanding, September 30, 2013		3,200,000		$	0.22
	Granted		1,600,000		$	0.10
	Expired		–			–
	Outstanding, June 30, 2014		4,800,000		$	0.10*
	Exercisable, June 30, 2014		4,800,000		$	0.10*	4.56	$	–
Schedule of Stock Options, Valuation Assumptions	'
	The fair value of each option amendment was estimated on the date of the amendment using the Black-Scholes option pricing model with the following weighted average assumptions:
		Pre -	Post -
		Amendment	Amendment
	Expected dividend yield	0.00%	0.00%
	Expected volatility	214%	214%
	Expected life (in years)	1.42	5.12
	Risk-free interest rate	0.23%	1.36%
Schedule of Common Share Purchase Warrants	'
	A summary of the changes in the Company’s common share purchase warrants is presented below:
							Weighted
						Weighted	Average
			Number of			Average	Remaining		Aggregate
			Warrants			Exercise Price	Contractual Term		Intrinsic Value
	Outstanding, September 30, 2013		100,000		$	1.00
	Expired		(100,000	)		1
	Outstanding, June 30, 2014		–		$	–	–	$	–

ASSET_RETIREMENT_OBLIGATION_Ta

ASSET RETIREMENT OBLIGATION (Tables)	9 Months Ended
	Jun. 30, 2014
ASSET RETIREMENT OBLIGATION [Abstract]	'
Schedule of Changes in Asset Retirement Obligations	'
	Changes in Arkanova’s asset retirement obligations were as follows:
			Nine months
			ended		Year ended
			June 30,		September 30,
			2014		2013
	Asset retirement obligations, beginning of period	$	135,888	$	123,827
	Accretion expense		9,783		12,061
	Asset retirement obligations, end of period	$	145,671	$	135,888

SUPPLEMENTAL_CASH_FLOW_AND_OTH1

SUPPLEMENTAL CASH FLOW AND OTHER DISCLOSURES (Tables)	9 Months Ended
	Jun. 30, 2014
SUPPLEMENTAL CASH FLOW AND OTHER DISCLOSURES [Abstract]	'
Schedule of Cash Flow Supplemental Disclosures	'
			Nine months		Nine months
			ended		ended
			June 30,		June 30,
			2014		2013
	Supplemental Disclosures:
	Interest paid	$	2,050	$	–
	Income taxes paid	$	–	$	–
	Non-cash Financing and Investing Activities
	Shares issued to settle accrued interest	$	466,815	$	–
	Accrued interest converted into note payable	$	–	$	291,025
	Note payable related to capital expenditures	$	–	$	79,300

BASIS_OF_PRESENTATION_Narrativ

BASIS OF PRESENTATION (Narrative) (Details)	9 Months Ended
	Jun. 30, 2013
BASIS OF PRESENTATION [Abstract]	'
Date of incorporation (Date)	6-Sep-01

GOING_CONCERN_Narrative_Detail

GOING CONCERN (Narrative) (Details) (USD $)	Jun. 30, 2014	Sep. 30, 2013
GOING CONCERN [Abstract]	'	'
Losses since inception	$30,504,587	$28,065,957

SHORT_TERM_INVESTMENT_Narrativ

SHORT TERM INVESTMENT (Narrative) (Details) (USD $)	9 Months Ended
	Jun. 30, 2014	Sep. 30, 2013
SHORT TERM INVESTMENT [Abstract]	'	'
Short term deposit asset	$25,062	$15,000
Short term deposit investment, term (in Duration)	'12 months	'
Short term deposit investment, annual interest rate (in Percent)	0.50%	'
Short term investment, amount of letter secured for one of the Company's wells	$23,595	'

OIL_AND_GAS_INTERESTS_Narrativ

OIL AND GAS INTERESTS (Narrative) (Details) (USD $)	3 Months Ended		9 Months Ended		12 Months Ended
	Jun. 30, 2014	Jun. 30, 2013	Jun. 30, 2014	Jun. 30, 2013	Sep. 30, 2013
Proven and Developed Properties, Arkansas and Colorado and Montana	'	'	'	'	'
Evaluated oil and gas properties, impairment recorded	$386,059	'	$630,787	'	$519,125
Evaluated oil and gas properties, carrying value	$706,817	'	$706,817	'	$1,066,680

EARNINGS_LOSS_PER_SHARE_Schedu

EARNINGS (LOSS) PER SHARE (Schedule of Earnings Per Share, Basic and Diluted) (Details) (USD $)	3 Months Ended		9 Months Ended
	Jun. 30, 2014	Jun. 30, 2013	Jun. 30, 2014	Jun. 30, 2013
Basic:	'	'	'	'
Income (loss) attributable to common stock	($999,806)	($455,129)	($2,438,630)	($1,347,694)
Basic weighted average common shares outstanding (in Shares)	54,182,000	49,514,000	52,438,000	48,646,000
Basic per share (in Dollars per share)	($0.02)	($0.01)	($0.04)	($0.03)
Effective of Dilutive Securities:	'	'	'	'
Stock options and other, income (loss)	'	'	'	'
Stock options and other, weighted average common shares outstanding (in Shares)	'	'	'	'
Stock options and other, per share (in Dollars per Share)	'	'	'	'
Diluted:	'	'	'	'
Income (loss) attributable to common stock, including assumed conversions	($999,806)	($455,129)	($2,320,375)	($1,347,694)
Diluted weighted average common shares outstanding (in Shares)	54,182,000	49,514,000	52,438,000	48,646,000
Diluted per share (in Dollars per share)	($0.02)	($0.01)	($0.04)	($0.03)

RELATED_PARTY_TRANSACTIONS_Nar

RELATED PARTY TRANSACTIONS (Narrative) (Details) (USD $)	9 Months Ended					9 Months Ended
	Jun. 30, 2014	Jun. 30, 2014	Sep. 30, 2013	Jun. 30, 2014	Sep. 30, 2013	Jun. 30, 2014	Jun. 30, 2014
		President [Member]	President [Member]	Chief Financial Officer [Member]	Chief Financial Officer [Member]	Chief Financial Officer [Member]	Chief Executive Officer [Member]
						March 1, 2014 [Member]	March 1, 2014 [Member]
Related Party Transaction [Line Items]	'	'	'	'	'	'	'
Management fees owed	'	$5,000	$145,000	$39,029	$120,029	'	'
Number of options, Granted (in Shares)	1,600,000	'	'	'	'	300,000	300,000
Fair Value Options Granted	$23,289	'	'	'	'	'	'

NOTES_PAYABLE_Narrative_Detail

NOTES PAYABLE (Narrative) (Details) (USD $)	3 Months Ended		9 Months Ended
	Jun. 30, 2014	Jun. 30, 2013	Jun. 30, 2014	Jun. 30, 2013
Debt Instrument [Line Items]	'	'	'	'
Loss on settlement of debt	'	'	'	($29,165)
First loan agreement to purchase equipment [Member]	'	'	'	'
Debt Instrument [Line Items]	'	'	'	'
Debt instrument, issuance date (Date)	'	'	24-Nov-09	'
Proceeds from issuance of debt	'	'	56,303	'
Debt instrument, amount outstanding	0	'	0	'
Debt interest rate (in Percent)	7.69%	'	7.69%	'
Debt instrument, number of equal monthly payments (in Duration)	'	'	'48 months	'
Repayments of debt	'	'	2,707	'
Second loan agreement to purchase equipment [Member]	'	'	'	'
Debt Instrument [Line Items]	'	'	'	'
Debt instrument, issuance date (Date)	'	'	25-Jun-13	'
Proceeds from issuance of debt	'	'	79,300	'
Debt instrument, amount outstanding	60,652	'	60,652	'
Debt interest rate (in Percent)	3.95%	'	3.95%	'
Debt instrument, number of equal monthly payments (in Duration)	'	'	'48 months	'
Repayments of debt	'	'	14,075	'
Loan modification and conversion agreement [Member]	'	'	'	'
Debt Instrument [Line Items]	'	'	'	'
Debt instrument, issuance date (Date)	'	'	15-Nov-13	'
Proceeds from issuance of debt	'	'	1,705,000	'
Debt instrument, amount outstanding	11,811,025	'	11,811,025	'
Debt instrument, maturity date (Date)	'	'	31-Dec-15	'
Debt conversion, shares issued (in Shares)	'	'	4,668,152	'
Debt conversion, original debt amount	'	'	466,815	'
Gain recognized on troubled debt restructuring	'	'	$0	'
Debt conversion, price per share of common stock issued (in Dollars per Share)	$0.10	'	$0.10	'

COMMON_STOCK_Narrative_Details

COMMON STOCK (Narrative) (Details) (USD $)	0 Months Ended	9 Months Ended		0 Months Ended
	Nov. 15, 2013	Jun. 30, 2014	Jun. 30, 2013	Jan. 10, 2014
				Common stock issued for interest [Member]
COMMON STOCK [Abstract]	'	'	'	'
Shares available for issuance (in Shares)	'	5,000,000	'	'
Initial termination period of vested Non-Qualified stock options (in Duration)	'	'3 months	'	'
Amended termination period of vested Non-Qualified stock options (in Duration)	'	'1 year	'	'
Number of options, Granted (in Shares)	'	1,600,000	'	'
Value of stock options granted during the period	'	$62,100	'	'
Common shares acquired by directors, officers, and employees from stock options granted (in Shares)	'	1,600,000	'	'
Debt Conversion [Line Items]	'	'	'	'
Debt conversion, shares issued (in Shares)	'	'	'	4,668,152
Debt conversion, original debt amount	'	'	'	466,815
Debt conversion, instrument, shares issued, exercise price per share (in Dollars per Share)	'	$0.10	'	'
Options granted, grant date fair value (in Dollars per Share)	'	$0.04	'	'
Expiration period of awards (in Duration)	'	'5 years	'	'
Number of options, Exercised (in Shares)	'	0	0	'
Stock-based compensation	39,867	101,967	'	'
Number of options, Expired (in Shares)	'	0	1,303,333	'
Unrecognized compensation costs, non-vested stock options	'	0	'	'
Intrinsic value of outstanding options	'	$0	'	'

COMMON_STOCK_Schedule_of_Grant

COMMON STOCK (Schedule of Grant Date Fair Value Assumptions) (Details)	9 Months Ended
	Jun. 30, 2014
COMMON STOCK [Abstract]	'
Expected dividend yield (in Percent)	0.00%
Expected volatility (in Percent)	209.00%
Expected life (in years) (in Duration)	'5 years
Risk-free interest rate (in Percent)	1.51%

COMMON_STOCK_Summary_of_Stock_

COMMON STOCK (Summary of Stock Option Activity) (Details) (USD $)	0 Months Ended	9 Months Ended
	Nov. 15, 2013	Jun. 30, 2014		Jun. 30, 2013	Jun. 30, 2014
Stock Options, Roll Forward	'	'		'	'
Number of Options Outstanding (in Shares)	'	3,200,000		'	4,800,000
Weighted Average Excercise Price, Outstanding (in Dollars per Share)	'	$0.22		'	$0.10	[1]
Number of options, Granted (in Shares)	'	1,600,000		'	'
Weighted average exercise price, Granted (in Dollars per Share)	'	$0.10		'	'
Number of options, Expired (in Shares)	'	0		1,303,333	'
Weighted Average Exercise Price, Expired (in Dollars per Share)	'	$0		'	'
Number of Options Exercisable (in Shares)	'	4,800,000		'	'
Weighted Average Exercise Price, Excercisable (in Dollars per Share)	'	$0.10	[1]	'	'
Weighted Average Remaining Contractual Term, Exercisable (in Duration)	'	'4 years 6 months 22 days		'	'
Aggregate Intrinsic Value, Exercisable	'	$0		'	'
Exercise price range, minimum (in Dollars per Share)	$0.12	'		'	'
Exercise price range, maximum (in Dollars per Share)	$0.25	'		'	'
Amended exercise price, options outstanding (in Dollars per Share)	$0.10	'		'	'
Stock options amended, weighted average grant date fair value (in Dollars per Share)	$0.01	'		'	'
Stock-based compensation expense recognized	$39,867	$101,967		'	'
[1]	On November 15, 2013, Arkanova amended the terms of the outstanding stock options to decrease the exercise price from $0.12 - $0.25 to $0.10 and extend the expiry dates from November 19, 2013 - October 8, 2015 to September 30, 2018 - December 31, 2018. The weighted average grant date fair value of the modified stock options was $0.01 and additional stock-based compensation expense of $39,867 was recognized.

COMMON_STOCK_Schedule_of_Stock

COMMON STOCK (Schedule of Stock Options, Valuation Assumptions) (Details)	9 Months Ended
	Jun. 30, 2014
Share Based Compensation Arrangement by Share Based Payment Award [Line Items]	'
Expected dividend yield (in Percent)	0.00%
Expected volatility (in Percent)	209.00%
Expected life (in years) (in Duration)	'5 years
Risk-free interest rate (in Percent)	1.51%
Pre - Amendment [Member]	'
Share Based Compensation Arrangement by Share Based Payment Award [Line Items]	'
Expected dividend yield (in Percent)	0.00%
Expected volatility (in Percent)	214.00%
Expected life (in years) (in Duration)	'1 year 5 months 1 day
Risk-free interest rate (in Percent)	0.23%
Post - Amendment [Member]	'
Share Based Compensation Arrangement by Share Based Payment Award [Line Items]	'
Expected dividend yield (in Percent)	0.00%
Expected volatility (in Percent)	214.00%
Expected life (in years) (in Duration)	'5 years 1 month 13 days
Risk-free interest rate (in Percent)	1.36%

COMMON_STOCK_Summary_of_Change

COMMON STOCK (Summary of Changes in Common Share Purchase Warrants) (Details) (USD $)	9 Months Ended
	Jun. 30, 2014
Warrants	'
Number of Warrants Outstanding (in Shares)	100,000
Weighted Average Exercise Price, Outstanding (in Dollars per Share)	$1
Number of Warrants Expired (in Shares)	-100,000
Weighted Average Excercise Price, Expired (in Dollars per Share)	$1
Number of Warrants Outstanding (in Shares)	0
Weighted Average Exercise Price, Outstanding (in Dollars per Share)	$0
Weighted Average Remaining Contractual Term, Outstanding (in Duration)	'0 years
Aggregate Intrinsic Value, Outstanding	$0

COMMITMENTS_Narrative_Details

COMMITMENTS (Narrative) (Details) (USD $)	3 Months Ended		9 Months Ended
	Jun. 30, 2014	Jun. 30, 2013	Jun. 30, 2014	Jun. 30, 2013
COMMITMENTS [Abstract]	'	'	'	'
Term of lease agreement (in Duration)	'	'	'62 months	'
Monthly base rate, lease payments	$2,750	'	$2,750	'
Period after which base lease increases, throughout term of lease (in Duration)	'	'	'12 months	'
Amount of annual average rate of increase to base lease payments	2,883	'	2,883	'
Premiminary Eustice settlement agreement, amount	150,000	'	150,000	'
Premiminary Eustice settlement agreement, years over which amount is to be paid	'	'	'4 years	'
Amount owed on consulting agreement, included in commitment amount	'	'	125,000	'
Premiminary Eustice settlement agreement, months over which amount is to be paid in equal installments	'	'	'48 months	'
Tax refund for purchase of Provident Energy	12,000	'	12,000	'
Loss on settlement of debt	'	'	'	29,165
Payments made under settlement agreement	'	'	$28,125	$18,750

ASSET_RETIREMENT_OBLIGATION_Ch

ASSET RETIREMENT OBLIGATION (Changes in Asset Retirement Obligations) (Details) (USD $)	9 Months Ended	12 Months Ended
	Jun. 30, 2014	Sep. 30, 2013
ASSET RETIREMENT OBLIGATION [Abstract]	'	'
Asset retirement obligations, beginning of period	$135,888	$123,827
Accretion expense	9,783	12,061
Asset retirement obligations, end of period	$145,671	$135,888

SUPPLEMENTAL_CASH_FLOW_AND_OTH2

SUPPLEMENTAL CASH FLOW AND OTHER DISCLOSURES (Supplemental Cash Flow and Other Disclosures) (Details) (USD $)	9 Months Ended
	Jun. 30, 2014	Jun. 30, 2013
Non-cash Financing and Investing Activities	'	'
Shares issued to settle accrued interest	$466,815	'
Accrued interest converted into note payable	'	291,025
Note payable related to capital expenditures	'	73,000
SUPPLEMENTAL CASH FLOW AND OTHER DISCLOSURES [Abstract]	'	'
Interest paid	2,050	'
Income taxes paid	'	'