Arkanova Energy (AKVA) 10-Q 12 Feb 16 2016 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	Dec. 31, 2015	Feb. 12, 2016
Document and Entity Information [Abstract]
Trading Symbol	akva
Entity Registrant Name	ARKANOVA ENERGY CORP.
Entity Central Index Key	1,191,359
Current Fiscal Year End Date	--09-30
Entity Filer Category	Smaller Reporting Company
Document Type	10-Q
Document Period End Date	Dec. 31, 2015
Document Fiscal Year Focus	2,016
Document Fiscal Period Focus	Q1
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 ($)	Dec. 31, 2015	Sep. 30, 2015
ASSETS
Cash and cash equivalents	$ 1,406,018	$ 2,365,612
Restricted cash	61,309	61,263
Oil and gas receivables	36,311	40,240
Prepaid expenses and other	636,341	443,827
Total current assets	2,139,979	2,910,942
Property and equipment, net of accumulated depreciation and impairment of $477,008 and $453,796	237,844	261,056
Oil and gas properties, full cost method
Evaluated, net of accumulated depletion and impairment of $19,545,480 and $19,540,800	422,361	315,859
Other Assets	97,000	97,000
Restricted cash	68,205	68,102
Total assets	2,965,389	3,652,959
LIABILITIES AND STOCKHOLDERS' DEFICIT
Accounts payable	153,696	306,458
Accrued liabilities	1,052,880	821,577
Due to related party	8,779	14,779
Current portion of loans payable	20,609	$ 20,407
Current portion of notes payable – related party	14,963,861
Project advances	2,134,458	$ 2,243,773
Other liabilites	37,500	37,500
Total current liabilities	18,371,783	3,444,494
Loans payable	$ 10,614	15,843
Notes payable – related party		14,963,861
Asset retirement obligations	$ 167,527	163,648
Other liabilities		9,375
Total liabilities	$ 18,549,924	18,597,221
Contingencies and commitments
Stockholders' Deficit
Common Stock, $0.001 par value, 1,000,000,000 shares authorized, 54,182,267 (September 30, 2015 - 54,182,267) shares issued and outstanding	$ 54,182	54,182
Additional paid-in capital	19,398,714	19,398,714
Accumulated deficit	(35,037,431)	(34,397,158)
Total stockholders' deficit	(15,584,535)	(14,944,262)
Total liabilities and stockholders' deficit	$ 2,965,389	$ 3,652,959

Consolidated Balance Sheets (u3

Consolidated Balance Sheets (unaudited) (Parenthetical) - USD ($)	Dec. 31, 2015	Sep. 30, 2015
ASSETS
Property and equipment, accumulated depreciation	$ 477,008	$ 453,796
Oil and gas properties evaluated, accumulated depletion and impairment	$ 19,545,480	$ 19,540,800
Stockholders' Deficit
Common Stock, par value (in Dollars per Share)	$ .001	$ .001
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 Oper

Consolidated Statements of Operations (unaudited) - USD ($)	3 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Revenue
Oil and gas sales	$ 66,686	$ 137,901
Operator income	20,250	20,250
Total revenue	86,936	158,151
Expenses
General and administrative expenses	306,913	325,229
Oil and gas production costs	185,492	166,917
Accretion	3,879	3,535
Depletion	$ 4,680	64,855
Impairment of oil and gas properties		115,470
Operating loss	$ (414,028)	$ (517,855)
Other income (expenses)
Interest income	473
Interest expense	(226,718)	$ (210,786)
Net loss	$ (640,273)	$ (728,641)
Loss per share - basic and diluted (in Dollars per Share)	$ (.01)	$ (0.01)
Basic weighted average common shares outstanding (in Shares)	54,182,000	54,182,000
Diluted weighted average common shares outstanding (in Shares)	54,182,000	54,182,000

Consolidated Statements of Cash

Consolidated Statements of Cash Flows (unaudited) - USD ($)	3 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Operating Activities
Net loss	$ (640,273)	$ (728,641)
Adjustment to reconcile net loss to net cash used in operating activities:
Accretion	3,879	3,535
Depreciation	23,212	26,874
Depletion	$ 4,680	64,855
Impairment of oil and gas properties		115,470
Changes in operating assets and liabilities:
Prepaid expenses and other receivables	$ (192,514)	438,718
Oil and gas receivables	3,929	37,615
Accounts payable and accrued liabilities	(165,900)	(415,203)
Accrued interest	231,303	210,235
Due to related parties	(6,000)	(4,958)
Net Cash Used in Operating Activities	(737,684)	(251,500)
Investing Activities
Oil and gas property expenditures	(98,044)	(79,263)
Project advances	(109,315)	1,955,435
Purchase of short term investment	(61,412)	$ (36,031)
Proceeds from sale of short term investment	61,263
Net Cash (Used in) Provided by Investing Activities	(207,508)	$ 1,840,141
Financing Activities
Principal payments on debt	$ (14,402)	(14,207)
Proceeds from issuance of promissory notes		2,475,000
Net Cash (Used in) Provided by Financing Activities	$ (14,402)	2,460,793
Net Change in Cash	(959,594)	4,049,434
Cash and cash equivalents - beginning of period	2,365,612	646,814
Cash and cash equivalents - end of period	$ 1,406,018	$ 4,696,248
Supplemental Cash Flow and Other Disclosures (Note 10)

BASIS OF PRESENTATION

BASIS OF PRESENTATION	3 Months Ended
	Dec. 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 10Q should be read in conjunction with the consolidated financial statements and the accompanying notes included in our Annual Report on Form 10K for the year ended September 30, 2015. The accounting policies are described in the “Notes to the Consolidated Financial Statements” in the 2015 Annual Report on Form 10K and updated, as necessary, in this Form 10Q. 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 three months ended December 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	3 Months Ended
	Dec. 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 $35,037,431 since inception at December 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. The unaudited consolidated financial statement do not include any adjustments that might result from the outcome of this uncertainty.

RESTRICTED CASH

RESTRICTED CASH	3 Months Ended
	Dec. 31, 2015
RESTRICTED CASH [Abstract]
RESTRICTED CASH	NOTE 3: RESTRICTED CASH On November 22, 2014, the Company invested in a deposit for $25,125. The term of the investment was 12 months, maturing on November 22, 2015 and bears interest at a rate of 0.3% annually. On November 22, 2015, the Company reinvested in a deposit for $25,201. The term of the investment is 12 months, maturing on November 22, 2016 and bears interest at a rate of 0.3% annually. Interest received on the investment during the three months ended December 31, 2015 was $19 (2014 - $32). 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 investment was 12 months, maturing on November 22, 2015 and bears interest at a rate of 0.3% annually. On December 2, 2015, the Company invested in two deposits for $18,054 each. The term of the investments is 12 months, maturing on December 2, 2016 and bears interest at a rate of 0.3% annually. Interest received on the investment during the three months ended December 31, 2015 was $27 (2014 - $nil). The investments are to secure two letters to the US Environmental Protection Agency for $18,000 each for two of the Company’s wells. 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 0.6% annually. Interest received on the investments during the three months ended December 31, 2015 was $103 (2014 - $nil). The investment is to secure a letter to the US Environmental Protection Agency for $68,000 for four of the Company’s wells.

OIL AND GAS INTERESTS

OIL AND GAS INTERESTS	3 Months Ended
	Dec. 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 Montana. All of Arkanova’s oil and gas properties are located in the United States. Proven and Developed Properties, Montana During the three months ended December 31, 2015, the Company incurred costs of $111,182 that were capitalized to their oil and gas properties. At December 31, 2015, the carrying value of the evaluated oil and gas properties is below the present value of the estimated future net revenue; therefore, no impairment was recorded during the three months ended December 31, 2015. At December 31, 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 $115,470 was recorded. The carrying value of Arkanova’s evaluated oil and gas properties at December 31, 2015 and September 30, 2015 was $422,361 and $315,859, respectively. During the three months ended December 31, 2015, the Company recorded depletion of $4,680 (2014 - $64,855). At December 31, 2015, the Company has $2,134,458 of project advances shown as a current liability on the consolidated balance sheet of which $474,324 was received from Aton Select Funds Limited (“Aton”). During the three months ended December 31, 2015, $109,315 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. 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.

RELATED PARTY TRANSACTIONS

RELATED PARTY TRANSACTIONS	3 Months Ended
	Dec. 31, 2015
RELATED PARTY TRANSACTIONS [Abstract]
RELATED PARTY TRANSACTIONS	NOTE 5: RELATED PARTY TRANSACTIONS (a) At December 31, 2015, the Company owed backpay of $3,750 (September 30, 2015 - $3,750) to the President of the Company and $5,029 (September 30, 2015 - $11,029) to the CFO of the Company. (b) At December 31, 2015, the Company owed $14,963,861 (September 30, 2014 - $14,963,861) to Aton Select Funds Limited, a related party to the Company, pursuant to the loan modification agreement dated November 1, 2014. (c) At December 31, 2015, $474,324 of the project advances of $2,134,458 was provided by Aton. At September 30, 2015, $498,616 of the project advances of $2,243,773 was provided by Aton.

NOTES PAYABLE

NOTES PAYABLE	3 Months Ended
	Dec. 31, 2015
NOTES PAYABLE [Abstract]
NOTES PAYABLE	NOTE 6: NOTES PAYABLE 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 three months ended December 31, 2015, the Company repaid a principal amount of $5,027 (2014 – $4,832). The balance of the loan is $31,223 at December 31, 2015 (September 30, 2015 - $36,250). The following principal payments for notes payable are required: 2016 $ 14,984,470 2017 $ 10,614

COMMON STOCK

COMMON STOCK	3 Months Ended
	Dec. 31, 2015
COMMON STOCK [Abstract]
COMMON STOCK	NOTE 7: COMMON STOCK Common Stock The Company did not issue any common shares during the three months ended December 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. During the three months ended December 31, 2015 and 2014, Arkanova did not grant any stock options. During the three months ended December 31, 2015, no stock options expired unexercised (2014 – nil) and no stock options were forfeited (2014 – nil). During the three months ended December 31, 2015 and 2014, no stock-based compensation was recorded. 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, 2015 4,975,000 $ 0.05* Expired – Outstanding, December 31, 2015 4,975,000 $ 0.05* Exercisable, December 31, 2015 4,975,000 $ 0.05* 3.16 $ – * On February 25, 2015, Arkanova amended the terms of the outstanding stock options to decrease the exercise prices from $0.10 to $0.05. At December 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 December 31, 2015.

COMMITMENTS

COMMITMENTS	3 Months Ended
	Dec. 31, 2015
COMMITMENTS [Abstract]
COMMITMENTS	NOTE 8: COMMITMENTS See Note 6. (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 December 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 three months ended December 31, 2015 was $10,714 (2014 - $14,971). Lease payments at the monthly base rate for the remainder of the lease term are as follows: 2016 $ 22,458 (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 three months ended December 31, 2015, the Company repaid a total of $9,375 (2014 - $9,375) to Ms. Eustice. At December 31, 2015, there is a total balance owing of $37,500 of which $37,500 is current and $nil is long term. The following principal payments are required: 2016 $ 37,500

ASSET RETIREMENT OBLIGATION

ASSET RETIREMENT OBLIGATION	3 Months Ended
	Dec. 31, 2015
ASSET RETIREMENT OBLIGATION [Abstract]
ASSET RETIREMENT OBLIGATION	NOTE 9: ASSET RETIREMENT OBLIGATIONS Changes in Arkanova’s asset retirement obligations were as follows: Three Months Year Ended Ended December 31, September 30, 2015 2015 Asset retirement obligations, beginning of period $ 163,648 $ 149,124 Accretion expense 3,879 14,524 Asset retirement obligations, end of period $ 167,527 $ 163,648

SUPPLEMENTAL CASH FLOW AND OTHE

SUPPLEMENTAL CASH FLOW AND OTHER DISCLOSURES	3 Months Ended
	Dec. 31, 2015
SUPPLEMENTAL CASH FLOW AND OTHER DISCLOSURES [Abstract]
SUPPLEMENTAL CASH FLOW AND OTHER DISCLOSURES	NOTE 10: SUPPLEMENTAL CASH FLOW AND OTHER DISCLOSURES Three Months Three Months Ended Ended December 31, December 31, 2015 2014 Supplemental Disclosures: Interest paid $ 569 $ 534 Income taxes paid $ – $ – Non-cash Financing and Investing Activities Accrued interest converted into note payable $ – $ 677,836 Accounts payable related to oil and gas property expenditures $ 13,138 $ 8,548

COMMON STOCK (Tables)

COMMON STOCK (Tables)	3 Months Ended
	Dec. 31, 2015
COMMON STOCK [Abstract]
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, 2015 4,975,000 $ 0.05* Expired – Outstanding, December 31, 2015 4,975,000 $ 0.05* Exercisable, December 31, 2015 4,975,000 $ 0.05* 3.16 $ –

ASSET RETIREMENT OBLIGATION (Ta

ASSET RETIREMENT OBLIGATION (Tables)	3 Months Ended
	Dec. 31, 2015
ASSET RETIREMENT OBLIGATION [Abstract]
Schedule of Changes in Asset Retirement Obligations	NOTE 9: ASSET RETIREMENT OBLIGATIONS Changes in Arkanova’s asset retirement obligations were as follows: Three Months Year Ended Ended December 31, September 30, 2015 2015 Asset retirement obligations, beginning of period $ 163,648 $ 149,124 Accretion expense 3,879 14,524 Asset retirement obligations, end of period $ 167,527 $ 163,648

SUPPLEMENTAL CASH FLOW AND OT18

SUPPLEMENTAL CASH FLOW AND OTHER DISCLOSURES (Tables)	3 Months Ended
	Dec. 31, 2015
SUPPLEMENTAL CASH FLOW AND OTHER DISCLOSURES [Abstract]
Schedule of Cash Flow Supplemental Disclosures	NOTE 10: SUPPLEMENTAL CASH FLOW AND OTHER DISCLOSURES Three Months Three Months Ended Ended December 31, December 31, 2015 2014 Supplemental Disclosures: Interest paid $ 569 $ 534 Income taxes paid $ – $ – Non-cash Financing and Investing Activities Accrued interest converted into note payable $ – $ 677,836 Accounts payable related to oil and gas property expenditures $ 13,138 $ 8,548

BASIS OF PRESENTATION (Narrativ

BASIS OF PRESENTATION (Narrative) (Details)	3 Months Ended
	Dec. 31, 2015
BASIS OF PRESENTATION [Abstract]
Date of incorporation (Date)	Sep. 6, 2001

GOING CONCERN (Narrative) (Deta

GOING CONCERN (Narrative) (Details) - USD ($)	Dec. 31, 2015	Sep. 30, 2015
GOING CONCERN [Abstract]
Losses since inception	$ 35,037,431	$ 34,397,158

RESTRICTED CASH (Narrative) (De

RESTRICTED CASH (Narrative) (Details)	3 Months Ended			15 Months Ended
	Dec. 31, 2015USD ($)$ / shares	Jun. 30, 2015USD ($)$ / shares	Dec. 31, 2014USD ($)$ / shares	Dec. 31, 2015$ / shares
Restricted Cash and Cash Equivalents Items [Line Items]
Investment in deposit	$ 61,412		$ 36,031
November 22, 2014 Certificate of Deposit [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)			Nov. 22, 2015
Deposit investment, interest rate (in Percent)			0.30%
Short-term deposit investment, interest earned			$ 32
Short-term deposit investment, amount of EPA letter secured by restricted deposit investment			$ 23,595
Number of wells covered under EPA Letter Certificate of Deposit | $ / shares			1
November 22, 2015 Certificate of Deposit [Member]
Restricted Cash and Cash Equivalents Items [Line Items]
Investment in deposit	$ 25,201
Deposit investment term (in Duration)	12 months
Deposit investment, maturity date (in Date)	Nov. 22, 2016
Deposit investment, interest rate (in Percent)	0.30%
Short-term deposit investment, interest earned	$ 19
Short-term deposit investment, amount of EPA letter secured by restricted deposit investment	$ 23,595
Number of wells covered under EPA Letter Certificate of Deposit | $ / shares	1
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)			Nov. 22, 2015
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
Deposit investment term (in Duration)			12 months
Deposit investment, maturity date (in Date)			Nov. 22, 2015
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, 2015 Certificate of Deposit [Member]
Restricted Cash and Cash Equivalents Items [Line Items]
Investment in deposit	$ 18,054
Deposit investment term (in Duration)	12 months
Deposit investment, maturity date (in Date)	Dec. 2, 2016
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, 2015 Certificate of Deposit 2 [Member]
Restricted Cash and Cash Equivalents Items [Line Items]
Investment in deposit	$ 18,054
Deposit investment term (in Duration)	12 months
Deposit investment, maturity date (in Date)	Dec. 2, 2016
Deposit investment, interest rate (in Percent)	0.30%
Short-term deposit investment, amount of EPA letter secured by restricted deposit investment	$ 18,000
Combined December 2 Certificates of Deposit [Member]
Restricted Cash and Cash Equivalents Items [Line Items]
Number of certificates of deposit invested in (in Integer) | $ / shares				2
Number of EPA letters secured (in Integer) | $ / shares				2
Number of wells covered under EPA Letter Certificate of Deposit | $ / shares				2
April 20, 2015 Certificate of Deposit [Member]
Restricted Cash and Cash Equivalents Items [Line Items]
Investment in deposit		$ 68,000
Deposit investment term (in Duration)		36 months
Deposit investment, maturity date (in Date)		Apr. 20, 2018
Deposit investment, interest rate (in Percent)		0.60%
Short-term deposit investment, interest earned		$ 103	$ 0
Short-term deposit investment, amount of EPA letter secured by restricted deposit investment		$ 68,000
Number of wells covered under EPA Letter Certificate of Deposit | $ / shares		4

OIL AND GAS INTERESTS (Narrativ

OIL AND GAS INTERESTS (Narrative) (Details) - USD ($)	3 Months Ended		24 Months Ended	27 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Sep. 30, 2015	Dec. 31, 2015
Property, Plant, and Equipment [Line Items]
Oil and gas properties capitalized costs incurred	$ 111,182
Evaluated oil and gas properties, impairment recorded		$ 115,470
Evaluated oil and gas properties, carrying value	$ 422,361		$ 315,859	$ 422,361
Depletion	4,680	$ 64,855
Project advances	2,134,458		2,243,773	2,134,458
Amount of project advances total received contributed by Aton Select Funds Limited, a Related Party			$ 498,616	474,324
Total project advances	3,420,000			$ 3,420,000
Total project advances, re-allocated to oil and gas properties	$ 109,315

RELATED PARTY TRANSACTIONS (Nar

RELATED PARTY TRANSACTIONS (Narrative) (Details) - USD ($)	24 Months Ended	27 Months Ended
	Sep. 30, 2015	Dec. 31, 2015
Related Party Transaction [Line Items]
Balance due to Aton Select Funds Limited under November 1, 2014, loan modification agreement	$ 14,963,861	$ 14,963,861
Project advances	2,243,773	2,134,458
Amount of project advances total received contributed by Aton Select Funds Limited, a Related Party	498,616	474,324
President [Member]
Related Party Transaction [Line Items]
Backpay owed to officers	3,750	3,750
Chief Financial Officer [Member]
Related Party Transaction [Line Items]
Backpay owed to officers	$ 11,029	$ 5,029

NOTES PAYABLE (Narrative) (Deta

NOTES PAYABLE (Narrative) (Details) - USD ($)	Jun. 25, 2013	Dec. 31, 2015	Dec. 31, 2014	Sep. 30, 2015
Debt Instrument [Line Items]
Principal payments for notes payable required, 2016		$ 14,984,470
Principal payments for notes payable required, 2017		10,614
Loan Agreement to Purchase Equipment [Member]
Debt Instrument [Line Items]
Debt issued, face amount	$ 79,300
Debt interest rate (in Percent)	3.95%
Debt instrument, number of equal monthly payments (in Duration)	48 months
Repayments of debt		5,027	$ 4,832
Debt instrument, amount outstanding		$ 31,223		$ 36,250

COMMON STOCK (Narrative) (Detai

COMMON STOCK (Narrative) (Details) - USD ($)	Jul. 17, 2010	Dec. 31, 2015	Dec. 31, 2014	Feb. 25, 2015	Apr. 25, 2007
Share Based Compensation Arrangement by Share Based Payment Award [Line Items]
Stock options expired (in Shares)		0
Employee Stock Option [Member]
Share Based Compensation Arrangement by Share Based Payment Award [Line Items]
Share based compensation, total shares authorized for issuance under the plan (in Shares)					5,000,000
Stock options expired (in Shares)		0	0
Stock options forfeited (in Shares)		0	0
Share based compensation		$ 0	$ 0
Share based compensation, not yet recognized		0
Intrinsic value of outstanding options		$ 0
Employee Stock Option [Member] | Pre - Amendment [Member]
Share Based Compensation Arrangement by Share Based Payment Award [Line Items]
Expiration period of options granted (in Duration)	3 months
Exercise price of stock options granted (in Dollars per Share)				$ .10
Employee Stock Option [Member] | Post - Amendment [Member]
Share Based Compensation Arrangement by Share Based Payment Award [Line Items]
Expiration period of options granted (in Duration)	1 year
Exercise price of stock options granted (in Dollars per Share)				$ .05

COMMON STOCK (Summary of Stock

COMMON STOCK (Summary of Stock Option Activity) (Details)	3 Months Ended
	Dec. 31, 2015USD ($)$ / sharesshares
Stock Options, Roll Forward
Beginning number of options outstanding (in Shares) | shares	4,975,000
Beginning weighted average excercise price, outstanding (in Dollars per Share) | $ / shares	$ .05
Stock options expired (in Shares) | shares	0
Weighted Average Exercise Price, Expired (in Dollars per Share) | $ / shares
Number of Options Exercisable (in Shares) | shares	4,975,000
Weighted Average Exercise Price, Excercisable (in Dollars per Share) | $ / shares	$ .05
Weighted Average Remaining Contractual Term, Exercisable (in Duration)	3 years 2 months 9 days
Aggregate Intrinsic Value, Exercisable | $	$ 0
Ending number of options outstanding (in Shares) | shares	4,975,000
Ending weighted average excercise price, outstanding (in Dollars per Share) | $ / shares	$ .05

COMMITMENTS (Narrative) (Detail

COMMITMENTS (Narrative) (Details) - USD ($)	Dec. 14, 2012	Jun. 10, 2011	Dec. 31, 2015	Dec. 31, 2014	Sep. 30, 2013
Lease commitments [Abstract]
Term of lease agreement (in Duration)		62 months
Lease agreement, monthly beginning base rate		$ 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 monthly lease payments		$ 2,883
Lease expense			$ 10,714	$ 14,971
Monthly base rent due in 2016			22,458
Other commitment [Abstract]
Preliminary Eustice settlement amount	$ 150,000
Preliminary Eustice settlement agreement, years over which amount is to be paid	4 years
Preliminary Eustice settlement agreement, months over which amount is to be paid in equal installments	48 months
Amount owed on Eustice consulting agreement, included in commitment amount	$ 125,000
Tax refund of Provident Energy, owed to Eustice	$ 12,000
Loss on settlement of debt recognized on Eustice agreement					$ 29,165
Payments made under Eustice settlement agreement			9,375	$ 9,375
Total balance owed to Ms. Eustice			37,500
Eustice commitment, current			37,500
Eustice commitment, non-current			0
2016 principal payments required under Eustice agreement			$ 37,500

ASSET RETIREMENT OBLIGATION (Ch

ASSET RETIREMENT OBLIGATION (Changes in Asset Retirement Obligations) (Details) - USD ($)	3 Months Ended	12 Months Ended
	Dec. 31, 2015	Sep. 30, 2015
ASSET RETIREMENT OBLIGATION [Abstract]
Asset retirement obligations, beginning of period	$ 163,648	$ 149,124
Accretion expense	3,879	14,524
Asset retirement obligations, end of period	$ 167,527	$ 163,648

SUPPLEMENTAL CASH FLOW AND OT29

SUPPLEMENTAL CASH FLOW AND OTHER DISCLOSURES (Supplemental Cash Flow and Other Disclosures) (Details) - USD ($)	3 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
SUPPLEMENTAL CASH FLOW AND OTHER DISCLOSURES [Abstract]
Interest paid	$ 569	$ 534
Income taxes paid
Non-cash Financing and Investing Activities
Shares issued to settle accrued interest		$ 677,836
Accounts payable related to capital expenditures	$ 13,138	$ 8,548