Arkanova Energy (AKVA) 10-Q 14 May 15 2015 Q2 Quarterly report Financial data

Document_and_Entity_Informatio

Document and Entity Information	6 Months Ended
	Mar. 31, 2015	13-May-15
Document and Entity Information [Abstract]
Trading Symbol	akva
Entity Registrant Name	ARKANOVA ENERGY CORP.
Entity Central Index Key	1191359
Current Fiscal Year End Date	-21
Entity Filer Category	Smaller Reporting Company
Document Type	10-Q
Document Period End Date	31-Mar-15
Document Fiscal Year Focus	2015
Document Fiscal Period Focus	Q2
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 $)	Mar. 31, 2015	Sep. 30, 2014
ASSETS
Cash and cash equivalents	$4,139,348	$646,814
Short term investment	61,171	25,094
Oil and gas receivables	52,996	117,174
Prepaid expenses and other	250,556	609,512
Total current assets	4,504,071	1,398,594
Property and equipment, net of accumulated depreciation and impairment of $387,307 and $335,504	303,177	304,392
Oil and gas properties, full cost method
Evaluated, net of accumulated depletion and impairment of $19,076,848 and $18,382,583	321,509	725,240
Other Assets	97,000	97,000
Total assets	5,225,757	2,525,226
LIABILITIES AND STOCKHOLDERS' DEFICIT
Accounts payable	395,749	586,406
Accrued liabilities	371,432	617,649
Due to related party	26,779	38,029
Notes payable	20,009	19,618
Project advances	2,603,964	812,114
Other liabilites	37,500	37,500
Total current liabilities	3,455,433	2,111,316
Loans payable	26,146	36,249
Notes payable	14,963,861	11,811,025
Asset retirement obligations	156,198	149,124
Other liabilities	28,125	46,875
Total liabilities	18,629,763	14,154,589
Contingencies and commitments
Stockholders' Deficit
Common Stock, $0.001 par value, 1,000,000,000 shares authorized, 54,182,267 (September 30, 2014 - 54,182,267) shares issued and outstanding	54,182	54,182
Additional paid-in capital	19,392,843	19,387,453
Accumulated deficit	-32,851,031	-31,070,998
Total stockholders' deficit	-13,404,006	-11,629,363
Total liabilities and stockholders' deficit	$5,225,757	$2,525,226

Consolidated_Balance_Sheets_un1

Consolidated Balance Sheets (unaudited) (Parenthetical) (USD $)	Mar. 31, 2015	Sep. 30, 2014
ASSETS
Property and equipment, accumulated depreciation	$387,307	$335,504
Oil and gas properties evaluated, accumulated depletion	$19,076,848	$18,382,583
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	54,182,267
Common Stock, shares outstanding (in Shares)	54,182,267	54,182,267

Consolidated_Statements_of_Ope

Consolidated Statements of Operations (unaudited) (USD $)	3 Months Ended		6 Months Ended
	Mar. 31, 2015	Mar. 31, 2014	Mar. 31, 2015	Mar. 31, 2014
Revenue
Oil and gas sales	$71,907	$172,050	$209,808	$385,318
Operator income	20,250	20,250	40,500	40,500
Total revenue	92,157	192,300	250,308	425,818
Expenses
General and administrative expenses	312,447	362,412	637,676	712,011
Oil and gas production costs	91,682	210,743	258,599	403,230
Accretion	3,539	3,225	7,074	6,446
Depletion	84,334	79,514	149,189	160,355
Impairment of oil and gas properties	429,606	152,317	545,076	244,728
Operating loss	-829,451	-615,911	-1,347,306	-1,100,952
Other expenses
Interest expense	-221,941	-175,093	-432,727	-337,872
Net loss	($1,051,392)	($791,004)	($1,780,033)	($1,438,824)
Loss per share - basic and diluted (in Dollars per Share)	($0.02)	($0.01)	($0.03)	($0.03)
Basic weighted average common shares outstanding (in Shares)	54,182,000	53,664,000	54,182,000	51,566,000
Diluted weighted average common shares outstanding (in Shares)	54,182,000	53,664,000	54,182,000	51,566,000

Consolidated_Statements_of_Cas

Consolidated Statements of Cash Flows (unaudited) (USD $)	6 Months Ended
	Mar. 31, 2015	Mar. 31, 2014
Operating Activities
Net loss	($1,780,033)	($1,438,824)
Adjustment to reconcile net loss to net cash used in operating activities:
Accretion	7,074	6,446
Depreciation	51,803	52,703
Depletion	149,189	160,355
Impairment of oil and gas properties	545,076	244,728
Stock-based compensation	5,390	101,967
Changes in operating assets and liabilities:
Prepaid expenses and other receivables	358,956	-228,974
Oil and gas receivables	64,178	43,390
Accounts payable and accrued liabilities	-452,590	-199,592
Accrued interest	431,619	337,104
Due to related parties	-11,250	-213,000
Net Cash Used in Operating Activities	-630,588	-1,133,697
Investing Activities
Purchase of equipment	-50,588	-75,729
Oil and gas property expenditures	-28,601	-101,631
Project advances	1,791,850	1,395,000
Purchase of short term investment	-61,202	-10,000
Proceeds from short term investment	25,125
Net Cash Provided by Investing Activities	1,676,584	1,207,640
Financing Activities
Principal payments on debt	-28,462	-30,794
Proceeds from issuance of promissory notes	2,475,000	1,705,000
Net Cash Provided by Financing Activities	2,446,538	1,674,206
Net Change in Cash	3,492,534	1,748,149
Cash and cash equivalents - beginning of period	646,814	540,636
Cash and cash equivalents - end of period	$4,139,348	$2,288,785
Supplemental Cash Flow and Other Disclosures (Note 11)

BASIS_OF_PRESENTATION

BASIS OF PRESENTATION	6 Months Ended
	Mar. 31, 2015
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.
	On May 21, 2013, the Nevada Secretary of State accepted for filing the articles of dissolution for the subsidiary Arkanova Development, LLC. Balances remaining were transferred to the intercompany accounts.
	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, 2014. The accounting policies are described in the “Notes to the Consolidated Financial Statements” in the 2014 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 six months ended March 31, 2015 are not necessarily indicative of the operating results for the full year or for any other subsequent interim period.

GOING_CONCERN

GOING CONCERN	6 Months Ended
	Mar. 31, 2015
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 $32,851,031 since inception at March 31, 2015. 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	6 Months Ended
	Mar. 31, 2015
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, 2014 - $25,000). The term of the investment was 12 months, maturing on November 22, 2014 and bearing interest at a rate of 0.5% annually. Interest earned on the investment during the six months ended ended March 31, 2015 was $32. The investment was to secure a letter to the US Environmental Protection Agency for $23,595 for one of the Company’s wells.
	On November 22, 2014, the Company invested in a deposit for $25,125. The term of the investment is 12 months, maturing on November 22, 2015 and bears interest at a rate of 0.3% annually. Interest earned on the investment during the six months ended March 31, 2015 was $18. The investment is to secure a letter to the US Environmental Protection Agency for $23,595 for one of the Company’s wells.
	On December 2, 2014, the Company invested in two deposits for $18,000 each. The term of the investments is 12 months, maturing on December 2, 2015 and bears interest at a rate of 0.3% annually. Interest earned on the investments during the six months ended March 31, 2015 was $26. The investments are to secure two letters to the US Environmental Protection Agency for $18,000 each for two of the Company’s wells.

OIL_AND_GAS_INTERESTS

OIL AND GAS INTERESTS	6 Months Ended
	Mar. 31, 2015
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
	During the six months ended March 31, 2015, the Company incurred costs of $290,534 that were capitalized to their oil and gas properties. At March 31, 2015, the carrying value of the evaluated oil and gas properties exceeded the present value of the estimated future net revenue; therefore, an impairment of $545,076 (September 30, 2014 - $630,787) was recorded. The carrying value of Arkanova’s evaluated oil and gas properties at March 31, 2015 and September 30, 2014 was $321,509 and $725,240, respectively.
	During the year ended September 30, 2014, the Company received $1,395,000 of project advances and $582,886 was re-allocated to oil and gas properties to offset against the costs for the other working interest partners. During the six months ended March 31, 2015, the Company received an additional $2,025,000 of project advances and $233,150 was re-allocated to oil and gas properties to offset against the costs for the other working interest partners. As of March 31, 2015, a total of $816,036 of the total project advances of $3,420,000 was re-allocated to oil and gas properties to offset against the costs for the other working interest partners. At March 31, 2015, the Company holds $2,603,964 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 to be incurred on the waterflood project and on drilling of Bekkan Well.

EARNINGS_LOSS_PER_SHARE

EARNINGS (LOSS) PER SHARE	6 Months Ended
	Mar. 31, 2015
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 March 31,
			2015							2014
					Weighted							Weighted
					Average							Average
					Common							Common
			Income		Shares		Per			Income		Shares		Per
			(Loss)		Outstanding		Share			(Loss)		Outstanding		Share
	Basic:
	Income (loss) attributable to common stock	$	(1,051,392	)	54,182,000	$	(0.02	)	$	(791,004	)	53,664,000	$	(0.01	)
	Effective of Dilutive Securities:
	Stock options and other		–		–		–			–		–		–
	Diluted:
	Income (loss) attributable to common stock, including assumed conversions	$	(1,051,392	)	54,182,000	$	(0.02	)	$	(791,004	)	53,664,000	$	(0.01	)
			For the Six Months Ended March 31,
			2015							2014
					Weighted							Weighted
					Average							Average
					Common							Common
			Income		Shares		Per			Income		Shares		Per
			(Loss)		Outstanding		Share			(Loss)		Outstanding		Share
	Basic:
	Income (loss) attributable to common stock	$	(1,780,033	)	54,182,000	$	(0.03	)	$	(1,438,824	)	51,566,000	$	(0.03	)
	Effective of Dilutive Securities:
	Stock options and other		–		–		–			–		–		–
	Diluted:
	Income (loss) attributable to common stock, including assumed conversions	$	(1,780,033	)	54,182,000	$	(0.03	)	$	(1,438,824	)	51,566,000	$	(0.03	)

RELATED_PARTY_TRANSACTIONS

RELATED PARTY TRANSACTIONS	6 Months Ended
	Mar. 31, 2015
RELATED PARTY TRANSACTIONS [Abstract]
RELATED PARTY TRANSACTIONS	NOTE 6: RELATED PARTY TRANSACTIONS
	(a)	At March 31, 2015, the Company owed backpay of $3,750 (September 30, 2014 - $5,000) to the President of the Company and $23,029 (September 30, 2014 - $33,029) to the CFO of the Company.
	(b)	On October 1, 2014, the Company entered into a revised executive employment agreement with the Chief Executive Officer of the Company. The revised executive employment agreement replaced the agreement that was entered into on March 1, 2014. Pursuant to the terms of the revised executive employment agreement the Chief Executive Officer will receive an annual salary of $240,000 for a term of one year. The revised executive employment agreement will automatically renew if not terminated in writing by either party no less than sixty days prior to the expiration of the revised executive employment agreement.
	(c)	On October 1, 2014, the Company entered into a revised executive employment agreement with the Chief Financial Officer of the Company. The revised executive employment agreement replaced the agreement that was entered into on March 1, 2014. Pursuant to the terms of the revised executive employment agreement the Chief Financial Officer will receive an annual salary of $175,000 for a term of one year. The revised executive employment agreement will automatically renew if not terminated in writing by either party no less than sixty days prior to the expiration of the revised executive employment agreement.

NOTES_PAYABLE

NOTES PAYABLE	6 Months Ended
	Mar. 31, 2015
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.
		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.
		On November 1, 2014, the Company’s subsidiary entered into a Loan Modification Agreement to borrow an additional $2,475,000 for a total loan amount of $14,963,861 which includes accrued interest of $677,836. In addition the maturity date was extended from December 31, 2015 to December 31, 2016 and the ability of the Company to pay interest in shares of the Company’s common stock was terminated.
		Arkanova evaluated the November 1, 2014 modification under the guidance found in ASC 470-50 and ASC 470-60 and determined that the carrying value of the 2013 Note did not exceed the total future cash payments of the 2014 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 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 six months ended March 31, 2015, the Company repaid a principal amount of $9,712 (2014 – $9,337). The balance of the loan is $46,155 at March 31, 2015 (September 30, 2014 - $55,867).

COMMON_STOCK

COMMON STOCK	6 Months Ended
	Mar. 31, 2015
COMMON STOCK [Abstract]
COMMON STOCK	NOTE 8: COMMON STOCK
	Common Stock
	The Company did not issue any common shares during the six months ended March 31, 2015.
	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 November 1, 2014, Arkanova granted 100,000 stock options valued at $3,871 with immediate vesting to an employee to acquire 100,000 stock options 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 per share using the following assumptions:
	Expected dividend yield	0.00%
	Expected volatility	206%
	Expected life (in years)	5
	Risk-free interest rate	1.62%
	During the six months ended March 31, 2015 and 2014, no stock options were exercised. Stock-based compensation of $3,871 (2014 - $101,967) was recorded for the six months ended March 31, 2015. During the six months ended March 31, 2015 and 2014, no stock options expired unexercised and 250,000 (2013 – nil) stock options were cancelled.
	A summary of Arkanova’s stock option activity is as follows:
								Weighted
								Average		Aggregate
			Number of			Weighted Average		Remaining		Intrinsic
			Options			Exercise Price		Contractual Term		Value
	Outstanding, September 30, 2014		4,800,000		$	0.05*
	Granted		100,000			0.05*
	Cancelled		(250,000	)		(0.10	)
	Outstanding, March 31, 2015		4,650,000		$	0.05*
	Exercisable, March 31, 2015		4,650,000		$	0.05*		3.83	$	–
	* On February 25, 2015, Arkanova amended the terms of the outstanding stock options to decrease the exercise prices from $0.10 to $0.05. The weighted average grant date fair value of the modified stock options was $0.02 and Arkanova recognized an additional stock-based compensation expense of $1,519 related to the modification.
	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		220%			220%
	Expected life (in years)		3.92			3.92
	Risk-free interest rate		1.20%			1.20%
	At March 31, 2015, 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 March 31, 2015.

COMMITMENTS

COMMITMENTS	6 Months Ended
	Mar. 31, 2015
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 March 31, 2015, 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. Lease expense for the six months ended March 31, 2015 was $29,550 (2014 - $29,027). Lease payments at the monthly base rate for the remainder of the lease term are as follows:
	2015	$	18,792
	2016	$	32,083
	(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 year ended September 30, 2013, 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 six months ended March 31, 2015, the Company repaid a total of $18,750 (2014 - $18,750) to Ms. Eustice. At March 31, 2015, there is a total balance owing of $65,625 of which $37,500 is current and $28,125 is long term. The following principal payments are required:
	2015	$	18,750
	2016	$	37,500
	2017	$	9,375

ASSET_RETIREMENT_OBLIGATION

ASSET RETIREMENT OBLIGATION	6 Months Ended
	Mar. 31, 2015
ASSET RETIREMENT OBLIGATION [Abstract]
ASSET RETIREMENT OBLIGATION	NOTE 10: ASSET RETIREMENT OBLIGATIONS
	Changes in Arkanova’s asset retirement obligations were as follows:
			Six months		Year
			Ended		Ended
			March 31,		September 30,
			2015		2014
	Asset retirement obligations, beginning of period	$	149,124	$	135,888
	Accretion expense		7,074		13,236
	Asset retirement obligations, end of period	$	156,198	$	149,124

SUPPLEMENTAL_CASH_FLOW_AND_OTH

SUPPLEMENTAL CASH FLOW AND OTHER DISCLOSURES	6 Months Ended
	Mar. 31, 2015
SUPPLEMENTAL CASH FLOW AND OTHER DISCLOSURES [Abstract]
SUPPLEMENTAL CASH FLOW AND OTHER DISCLOSURES	NOTE 11: SUPPLEMENTAL CASH FLOW AND OTHER DISCLOSURES
			Six months		Six months
			Ended		Ended
			March 31,		March 31,
			2015		2014
	Supplemental Disclosures:
	Interest paid	$	1,020	$	1,421
	Income taxes paid	$	–	$	–
	Non-cash Financing and Investing Activities
	Shares issued to settle accrued interest	$	–	$	466,815
	Accounts payable related to capital expenditures	$	261,933	$	–

SUBSEQUENT_EVENT

SUBSEQUENT EVENT	3 Months Ended
	Mar. 31, 2015
SUBSEQUENT EVENT [Abstract]
SUBSEQUENT EVENT	NOTE 12: SUBSEQUENT EVENT
	On April 20, 2015, the Company invested in a deposit for $68,000. The term of the investment is 36 months, maturing on April 20, 2018 and bears interest at a rate of 2.6% annually. The investment is to secure a letter to the US Environmental Protection Agency for $68,000 for four of the Company’s wells.

EARNINGS_LOSS_PER_SHARE_Tables

EARNINGS (LOSS) PER SHARE (Tables)	6 Months Ended
	Mar. 31, 2015
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 March 31,
			2015							2014
					Weighted							Weighted
					Average							Average
					Common							Common
			Income		Shares		Per			Income		Shares		Per
			(Loss)		Outstanding		Share			(Loss)		Outstanding		Share
	Basic:
	Income (loss) attributable to common stock	$	(1,051,392	)	54,182,000	$	(0.02	)	$	(791,004	)	53,664,000	$	(0.01	)
	Effective of Dilutive Securities:
	Stock options and other		–		–		–			–		–		–
	Diluted:
	Income (loss) attributable to common stock, including assumed conversions	$	(1,051,392	)	54,182,000	$	(0.02	)	$	(791,004	)	53,664,000	$	(0.01	)
			For the Six Months Ended March 31,
			2015							2014
					Weighted							Weighted
					Average							Average
					Common							Common
			Income		Shares		Per			Income		Shares		Per
			(Loss)		Outstanding		Share			(Loss)		Outstanding		Share
	Basic:
	Income (loss) attributable to common stock	$	(1,780,033	)	54,182,000	$	(0.03	)	$	(1,438,824	)	51,566,000	$	(0.03	)
	Effective of Dilutive Securities:
	Stock options and other		–		–		–			–		–		–
	Diluted:
	Income (loss) attributable to common stock, including assumed conversions	$	(1,780,033	)	54,182,000	$	(0.03	)	$	(1,438,824	)	51,566,000	$	(0.03	)

COMMON_STOCK_Tables

COMMON STOCK (Tables)	3 Months Ended
	Mar. 31, 2015
COMMON STOCK [Abstract]
Schedule of Stock Options, Valuation Assumptions	The grant date fair value of the options using the Black-Scholes option pricing model was $0.04 per share using the following assumptions:
	Expected dividend yield	0.00%
	Expected volatility	206%
	Expected life (in years)	5
	Risk-free interest rate	1.62%
Schedule of Stock Options Activity	A summary of Arkanova’s stock option activity is as follows:
								Weighted
								Average		Aggregate
			Number of			Weighted Average		Remaining		Intrinsic
			Options			Exercise Price		Contractual Term		Value
	Outstanding, September 30, 2014		4,800,000		$	0.05*
	Granted		100,000			0.05*
	Cancelled		(250,000	)		(0.10	)
	Outstanding, March 31, 2015		4,650,000		$	0.05*
	Exercisable, March 31, 2015		4,650,000		$	0.05*		3.83	$	–
	* On February 25, 2015, Arkanova amended the terms of the outstanding stock options to decrease the exercise prices from $0.10 to $0.05. The weighted average grant date fair value of the modified stock options was $0.02 and Arkanova recognized an additional stock-based compensation expense of $1,519 related to the modification.
Schedule of Weighted Average Assumptions Used to Estimate Fair Value of Each Option Amendment on the Date of the Amendment Using the Black-Scholes Option Pricing Model	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		220%			220%
	Expected life (in years)		3.92			3.92
	Risk-free interest rate		1.20%			1.20%

COMMITMENTS_Tables

COMMITMENTS (Tables)	6 Months Ended
	Mar. 31, 2015
COMMITMENTS [Abstract]
Schedule of lease payments at the monthly base rate for the remainder of the lease term	Lease payments at the monthly base rate for the remainder of the lease term are as follows:
	2015	$	18,792
	2016	$	32,083
Schedule of principal payments required	The following principal payments are required:
	2015	$	18,750
	2016	$	37,500
	2017	$	9,375

ASSET_RETIREMENT_OBLIGATION_Ta

ASSET RETIREMENT OBLIGATION (Tables)	6 Months Ended
	Mar. 31, 2015
ASSET RETIREMENT OBLIGATION [Abstract]
Schedule of Changes in Asset Retirement Obligations	Changes in Arkanova’s asset retirement obligations were as follows:
			Six months		Year
			Ended		Ended
			March 31,		September 30,
			2015		2014
	Asset retirement obligations, beginning of period	$	149,124	$	135,888
	Accretion expense		7,074		13,236
	Asset retirement obligations, end of period	$	156,198	$	149,124

SUPPLEMENTAL_CASH_FLOW_AND_OTH1

SUPPLEMENTAL CASH FLOW AND OTHER DISCLOSURES (Tables)	6 Months Ended
	Mar. 31, 2015
SUPPLEMENTAL CASH FLOW AND OTHER DISCLOSURES [Abstract]
Schedule of Cash Flow Supplemental Disclosures	Six months			Six months
			Ended			Ended
			March 31,			March 31,
			2015			2014
	Supplemental Disclosures:
	Interest paid	$	1,020		$	1,421
	Income taxes paid	$	–		$	–
	Non-cash Financing and Investing Activities
	Shares issued to settle accrued interest	$	–		$	466,815
	Accounts payable related to capital expenditures	$	261,933		$	–

BASIS_OF_PRESENTATION_Narrativ

BASIS OF PRESENTATION (Narrative) (Details)	6 Months Ended
	Mar. 31, 2015
BASIS OF PRESENTATION [Abstract]
Date of incorporation (Date)	6-Sep-01

GOING_CONCERN_Narrative_Detail

GOING CONCERN (Narrative) (Details) (USD $)	Mar. 31, 2015	Sep. 30, 2014
GOING CONCERN [Abstract]
Losses since inception	$32,851,031	$31,070,998

SHORT_TERM_INVESTMENT_Narrativ

SHORT TERM INVESTMENT (Narrative) (Details) (USD $)	6 Months Ended		0 Months Ended
	Mar. 31, 2015	Mar. 31, 2014	Nov. 22, 2013	Nov. 22, 2014	Dec. 02, 2014
Restricted Cash and Cash Equivalents Items [Line Items]
Investment in deposit	$61,202	$10,000
November 22, 2013 Certificate of Deposit [Member]
Restricted Cash and Cash Equivalents Items [Line Items]
Investment in deposit			25,000
Deposit investment term (in Duration)			12 months
Deposit investment, maturity date (in Date)			22-Nov-14
Deposit investment, interest rate (in Percent)			0.50%
Short-term deposit investment, interest earned			32
November 22, 2014 Certificate of Deposit [Member]
Restricted Cash and Cash Equivalents Items [Line Items]
Investment in deposit				25,000
November 22, 2013 Certificate of Deposit 2 [Member]
Restricted Cash and Cash Equivalents Items [Line Items]
Investment in deposit			25,125
Deposit investment term (in Duration)			12 months
Deposit investment, maturity date (in Date)			22-Nov-15
Deposit investment, interest rate (in Percent)			0.30%
Short-term deposit investment, interest earned			18
December 2, 2014 Certificate of Deposit [Member]
Restricted Cash and Cash Equivalents Items [Line Items]
Investment in deposit					18,000
Deposit investment term (in Duration)					12 months
Deposit investment, maturity date (in Date)					2-Dec-15
Deposit investment, interest rate (in Percent)					0.30%
Short-term deposit investment, amount of EPA letter secured by restricted deposit investment					18,000
December 2, 2014 Certificate of Deposit 2 [Member]
Restricted Cash and Cash Equivalents Items [Line Items]
Investment in deposit					18,000
Short-term deposit investment, amount of EPA letter secured by restricted deposit investment					$18,000

OIL_AND_GAS_INTERESTS_Narrativ

OIL AND GAS INTERESTS (Narrative) (Details) (USD $)	3 Months Ended		6 Months Ended		12 Months Ended
	Mar. 31, 2015	Mar. 31, 2014	Mar. 31, 2015	Mar. 31, 2014	Sep. 30, 2014
Proven and Developed Properties, Arkansas and Colorado and Montana
Evaluated oil and gas properties, impairment recorded	$429,606	$152,317	$545,076	$244,728	$630,787
Evaluated oil and gas properties, carrying value	321,509		321,509		725,240
Project advances, total amount received			2,025,000		1,395,000
Project advances	2,603,964		2,603,964		812,114
Project advances, re-allocated to oil and gas properties			233,150
Total project advances	3,420,000		3,420,000
Total project advances, re-allocated to oil and gas properties	816,036		816,036
Property, Plant, and Equipment [Line Items]
Costs incurred in oil and gas property, acquisition, exploration and development activities			$290,534

EARNINGS_LOSS_PER_SHARE_Schedu

EARNINGS (LOSS) PER SHARE (Schedule of Earnings Per Share, Basic and Diluted) (Details) (USD $)	3 Months Ended		6 Months Ended
	Mar. 31, 2015	Mar. 31, 2014	Mar. 31, 2015	Mar. 31, 2014
Basic:
Income (loss) attributable to common stock	($1,051,392)	($791,004)	($1,780,033)	($1,438,824)
Basic weighted average common shares outstanding (in Shares)	54,182,000	53,664,000	54,182,000	51,566,000
Basic per share (in Dollars per share)	($0.02)	($0.01)	($0.03)	($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	($1,051,392)	($791,004)	($1,780,033)	($1,438,824)
Diluted weighted average common shares outstanding (in Shares)	54,182,000	53,664,000	54,182,000	51,566,000
Diluted per share (in Dollars per share)	($0.02)	($0.01)	($0.03)	($0.03)

RELATED_PARTY_TRANSACTIONS_Nar

RELATED PARTY TRANSACTIONS (Narrative) (Details) (USD $)	0 Months Ended
	Oct. 01, 2014	Mar. 31, 2015	Oct. 01, 2014	Sep. 30, 2014
President [Member]
Related Party Transaction [Line Items]
Backpay owed to officers		$3,750		$5,000
Chief Financial Officer [Member]
Related Party Transaction [Line Items]
Backpay owed to officers		23,029		33,029
Annual compensation under revised executive employment agreement	175,000		175,000
Executive employment agreement, period of required written notice to terminate (in Duration)	60 days
Officers employment agreement, term [in Duration]	1 year
Chief Executive Officer [Member]
Related Party Transaction [Line Items]
Annual compensation under revised executive employment agreement	$240,000		$240,000
Executive employment agreement, period of required written notice to terminate (in Duration)	60 days
Officers employment agreement, term [in Duration]	1 year

NOTES_PAYABLE_Narrative_Detail

NOTES PAYABLE (Narrative) (Details) (USD $)	6 Months Ended		0 Months Ended
	Mar. 31, 2015	Mar. 31, 2014	Jun. 25, 2013	Nov. 01, 2014	Nov. 15, 2013	Sep. 30, 2014
Debt Instrument [Line Items]
Proceeds from issuance of debt	$2,475,000	$1,705,000
Loan Agreement to Purchase Equipment [Member]
Debt Instrument [Line Items]
Proceeds from issuance of debt			79,300
Debt instrument, amount outstanding	46,155					55,867
Debt interest rate (in Percent)			3.95%
Debt instrument, number of equal monthly payments (in Duration)			48
Repayments of debt	9,712	9,337
Loan modification and conversion agreement [Member]
Debt Instrument [Line Items]
Proceeds from issuance of debt				2,475,000	1,705,000
Debt instrument, amount outstanding				14,963,861	11,811,025
Debt maturity, maturity date, pre-modification (in Date)				31-Dec-15	31-Mar-14
Debt instrument, maturity date, post-modification (in Date)				31-Dec-16	31-Dec-15
Debt conversion, original debt amount					466,815
Debt conversion, shares issued (in Shares)					4,668,152
Debt conversion converted instrument price per share (in Dollars per Share)					$0.10
Gain recognized on debt modification				0	0
Debt instrument, increase from accrued interest rolled into principal				$677,836
Debt instrument, issuance date (Date)					15-Nov-13

COMMON_STOCK_Narrative_Details

COMMON STOCK (Narrative) (Details) (USD $)	0 Months Ended	3 Months Ended	6 Months Ended		0 Months Ended
	Nov. 01, 2014	Mar. 31, 2015	Mar. 31, 2015	Mar. 31, 2014	Jul. 17, 2010	Apr. 25, 2007
Share Based Compensation Arrangement by Share Based Payment Award [Line Items]
Shares available for issuance under the 2007 Stock Option Plan (in Shares)						5,000,000
Expiration period of options granted (in Duration)	5 years
Options granted, grant date fair value (in Dollars per Share)	$0.04
Share based compensation			$5,390	$101,967
Options granted in period (in Shares)	100,000		100,000
Value of options granted	3,871
Exercise price of stock options granted (in Dollars per Share)	$0.10		$0.05
Stock options exercised (in Shares)			0	0
Stock options expired (in Shares)			0	0
Stock options forfeited (in Shares)		-250,000	250,000	0
Aggregate intrinsic value, options, Outstanding		0	0
Share based compensation, not yet recognized		$0	$0
Pre - Amendment [Member]
Share Based Compensation Arrangement by Share Based Payment Award [Line Items]
Termination period of vested Non-Qualified stock options, 2008 Plan, pre-amendment (in Duration)					3 months
Post - Amendment [Member]
Share Based Compensation Arrangement by Share Based Payment Award [Line Items]
Termination period of vested Non-Qualified stock options, 2008 Plan, post-amendment (in Duration)					1 year

COMMON_STOCK_Schedule_of_Grant

COMMON STOCK (Schedule of Grant Date Fair Value Assumptions) (Details)	6 Months Ended
	Mar. 31, 2015
COMMON STOCK [Abstract]
Expected dividend yield (in Percent)	0.00%
Expected volatility (in Percent)	206.00%
Expected life (in years) (in Duration)	5 years
Risk-free interest rate (in Percent)	1.62%

COMMON_STOCK_Summary_of_Stock_

COMMON STOCK (Summary of Stock Option Activity) (Details) (USD $)	0 Months Ended	3 Months Ended	6 Months Ended
	Nov. 01, 2014	Mar. 31, 2015	Mar. 31, 2015	Mar. 31, 2014	Mar. 31, 2015
Stock Options, Roll Forward
Number of Options Outstanding (in Shares)			4,800,000		4,650,000
Weighted Average Excercise Price, Outstanding (in Dollars per Share)			$0.05		$0.05
Number of options, Granted (in Shares)	100,000		100,000
Weighted average exercise price, Granted (in Dollars per Share)	$0.10		$0.05
Stock options expired (in Shares)			0	0
Number of Options Exercisable (in Shares)		4,650,000	4,650,000
Weighted Average Exercise Price, Excercisable (in Dollars per Share)		$0.05	$0.05
Weighted Average Remaining Contractual Term, Exercisable (in Duration)			3 years 9 months 29 days
Aggregate Intrinsic Value, Exercisable
Stock options cancelled (in Shares)		-250,000	250,000	0
Share based compensation			$5,390	$101,967

COMMON_STOCK_Schedule_of_Stock

COMMON STOCK (Schedule of Stock Options, Valuation Assumptions) (Details)	6 Months Ended
	Mar. 31, 2015
Share Based Compensation Arrangement by Share Based Payment Award [Line Items]
Expected dividend yield (in Percent)	0.00%
Expected volatility (in Percent)	206.00%
Expected life (in years) (in Duration)	5 years
Risk-free interest rate (in Percent)	1.62%
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)	220.00%
Expected life (in years) (in Duration)	3 years 11 months 1 day
Risk-free interest rate (in Percent)	1.20%
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)	220.00%
Expected life (in years) (in Duration)	3 years 11 months 1 day
Risk-free interest rate (in Percent)	1.20%

COMMITMENTS_Narrative_Details

COMMITMENTS (Narrative) (Details) (USD $)	0 Months Ended		6 Months Ended		12 Months Ended
	Dec. 14, 2012	Jun. 10, 2011	Mar. 31, 2015	Mar. 31, 2014	Sep. 30, 2013
COMMITMENTS [Abstract]
Term of lease agreement (in Duration)		62 months
Monthly base rate, lease payments		$2,750	$18,792
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
Preliminary settlement amount	150,000
Preliminary Eustice settlement agreement, years over which amount is to be paid	4 years
Amount owed on consulting agreement, included in commitment amount	125,000
Preliminary Eustice settlement agreement, months over which amount is to be paid in equal installments	48 months
Tax refund of Provident Energy, owed to Eustice	12,000
Loss on settlement of debt					-29,165
Payments made under settlement agreement			18,750	18,750
Lease expense			29,550	29,027
Total balance owed to Ms. Eustice			65,625
Other commitment, current			37,500
Other commitment, non-current			$28,125

COMMITMENTS_Schedule_of_Future

COMMITMENTS (Schedule of Future Minimum Rent Payments Due) (Details) (USD $)	Mar. 31, 2015	Jun. 10, 2011
COMMITMENTS [Abstract]
Monthly base rent due in next twelve months	$18,792	$2,750
Monthly base rate due in year two	$32,083

COMMITMENTS_Schedule_of_of_Req

COMMITMENTS (Schedule of of Required Principal Payments on Settlement) (Details) (Settled Litigation [Member], USD $)	Mar. 31, 2015
Settled Litigation [Member]
Other Commitments [Line Items]
Required principal payments in next twelve months, settlement	$18,750
Required principal payments in year two, settlement	37,500
Required principal payments in year three, settlement	$9,375

ASSET_RETIREMENT_OBLIGATION_Ch

ASSET RETIREMENT OBLIGATION (Changes in Asset Retirement Obligations) (Details) (USD $)	6 Months Ended	12 Months Ended
	Mar. 31, 2015	Sep. 30, 2014
ASSET RETIREMENT OBLIGATION [Abstract]
Asset retirement obligations, beginning of period	$149,124	$135,888
Accretion expense	7,074	13,236
Asset retirement obligations, end of period	$156,198	$149,124

SUPPLEMENTAL_CASH_FLOW_AND_OTH2

SUPPLEMENTAL CASH FLOW AND OTHER DISCLOSURES (Supplemental Cash Flow and Other Disclosures) (Details) (USD $)	6 Months Ended
	Mar. 31, 2015	Mar. 31, 2014
SUPPLEMENTAL CASH FLOW AND OTHER DISCLOSURES [Abstract]
Interest paid	$1,020	$1,421
Income taxes paid
Non-cash Financing and Investing Activities
Shares issued to settle accrued interest		466,815
Accounts payable related to oil and gas property expenditures	$261,933

SUBSEQUENT_EVENT_Narrative_Det

SUBSEQUENT EVENT (Narrative) (Details) (USD $)	6 Months Ended		0 Months Ended
	Mar. 31, 2015	Mar. 31, 2014	Apr. 20, 2015
Subsequent Event [Line Items]
Investment in deposit	$61,202	$10,000
Subsequent Event [Member]
Subsequent Event [Line Items]
Subsequent Event (Date)			20-Apr-15
Investment in deposit			68,000
Deposit investment term (in Duration)			36 months
Deposit investment, interest rate (in Percent)			2.60%
Value of letter to U.S. EPA secured by deposit investment			$68,000
Number of wells covered under secured letter to U.S. EPA (in Integer)			4