Arkanova Energy (AKVA) 10-K 10 Feb 17 2016 FY Annual report Financial data

Document and Entity Information

Document and Entity Information - USD ($)	12 Months Ended
	Sep. 30, 2016	Feb. 06, 2017	Mar. 31, 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-K
Document Period End Date	Sep. 30, 2016
Document Fiscal Year Focus	2,016
Document Fiscal Period Focus	FY
Amendment Flag	false
Entity Common Stock, Shares Outstanding		54,182,267
Entity Public Float			$ 310,289
Entity Well-known Seasoned Issuer	No
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes

Consolidated Balance Sheets

Consolidated Balance Sheets - USD ($)	Sep. 30, 2016	Sep. 30, 2015
ASSETS
Cash and cash equivalents	$ 74,755	$ 2,365,612
Restricted cash	61,447	61,263
Oil and gas receivables	54,658	40,240
Prepaid expenses	14,260	10,368
Other receivable – related parties		433,459
Total current assets	205,120	2,910,942
Property and equipment, net of accumulated depreciation and impairment of $525,593 and $453,796	191,217	261,056
Oil and gas properties, full cost method
Evaluated, net of accumulated depletion and impairment of $20,387,721 and $19,540,800	5,994	315,859
Other Assets	97,000	97,000
Restricted cash	68,513	68,102
Total assets	567,844	3,652,959
LIABILITIES AND STOCKHOLDERS' DEFICIT
Accounts payable	114,204	306,458
Accrued liabilities	1,720,027	821,577
Due to related parties	102,042	14,779
Current portion of loans payable	15,843	20,407
Project advances – related parties	2,084,621	2,243,773
Other liabilites	9,375	37,500
Total current liabilities	4,046,112	3,444,494
Loans payable		15,843
Notes payable – related party	14,963,861	14,963,861
Asset retirement obligations	524,391	163,648
Other liabilities		9,375
Total liabilities	19,534,364	18,597,221
Contingencies and commitments
Stockholders' Deficit
Common Stock, $0.001 par value, 1,000,000,000 shares authorized, 54,182,267 (2015 - 54,182,267) shares issued and outstanding	54,182	54,182
Additional paid-in capital	19,398,714	19,398,714
Accumulated deficit	(38,419,416)	(34,397,158)
Total stockholders' deficit	(18,966,520)	(14,944,262)
Total liabilities and stockholders' deficit	$ 567,844	$ 3,652,959

Consolidated Balance Sheets (un

Consolidated Balance Sheets (unaudited) (Parenthetical) - USD ($)	Sep. 30, 2016	Sep. 30, 2015
ASSETS
Property and equipment, accumulated depreciation	$ 525,593	$ 453,796
Oil and gas properties evaluated, accumulated depletion and impairment	$ 20,387,721	$ 19,540,800
Stockholders' Deficit
Common Stock, par value (in Dollars per Share)	$ 0.001	$ 0.001
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 - USD ($)	12 Months Ended
	Sep. 30, 2016	Sep. 30, 2015
Revenue
Oil and gas sales	$ 270,312	$ 371,686
Operator income	81,000	81,000
Total revenue	351,312	452,686
Expenses
General and administrative expenses	1,180,452	1,240,877
Oil and gas production costs	533,381	482,798
Accretion	15,984	14,524
Depletion	604,591	259,358
Impairment of oil and gas properties	242,330	898,861
Impairment of other receivables	901,192
Operating loss	(3,126,618)	(2,443,732)
Other income (expenses)
Interest income	1,620
Interest expense	(899,810)	(883,628)
Other income	2,550	1,200
Net loss	$ (4,022,258)	$ (3,326,160)
Loss per share - basic and diluted (in Dollars per Share)	$ (.07)	$ (0.06)
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 - USD ($)	12 Months Ended
	Sep. 30, 2016	Sep. 30, 2015
Operating Activities
Net loss	$ (4,022,258)	$ (3,326,160)
Adjustment to reconcile net loss to net cash used in operating activities:
Accretion	15,984	14,524
Depreciation	90,266	99,824
Depletion	604,591	259,358
Impairment of oil and gas properties	242,330	898,861
Impairment of other receivables - related parties	901,192
Share based compensation		11,261
Changes in operating assets and liabilities:
Prepaid expenses and other receivables	(471,625)	165,685
Oil and gas receivables	(14,418)	76,934
Accounts payable and accrued liabilities	(192,254)	(380,552)
Accrued interest	898,450	881,764
Due to related parties	87,263	(23,250)
Net Cash Used in Operating Activities	(1,860,479)	(1,321,751)
Investing Activities
Purchase of equipment	(20,427)	(56,488)
Oil and gas property expenditures	(351,449)	(1,241,575)
Project advances		2,025,000
Purchase of short term investment	(61,720)	(104,271)
Proceeds from sale of short term investment	61,125
Net Cash (Used in) Provided by Investing Activities	(372,471)	622,666
Financing Activities
Principal payments on debt	(57,907)	(57,117)
Proceeds from issuance of promissory notes		2,475,000
Net Cash (Used in) Provided by Financing Activities	(57,907)	2,417,883
Net Change in Cash	(2,290,857)	1,718,798
Cash and cash equivalents - beginning of period	2,365,612	646,814
Cash and cash equivalents - end of period	$ 74,755	$ 2,365,612
Supplemental Cash Flow and Other Disclosures (Note 10)

Consolidated Statement of Stock

Consolidated Statement of Stockholder's Deficit - USD ($)	Total	Common Stock [Member]	Additional Paid-in Capital [Member]	Deficit [Member]
Balance at Sep. 30, 2014	$ (11,629,363)	$ 54,182	$ 19,387,453	$ (31,070,998)
Beginning Balance - Shares at Sep. 30, 2014		54,182,267
Increase (Decrease) in Stockholders' Equity
Stock-based compensation	0	$ 0	11,261	0
Net loss for the year	(3,326,160)	0	0	(4,022,258)
Balance at Sep. 30, 2015	(14,944,262)	$ 54,182	19,398,714	(34,398,156)
Ending Balance - Shares at Sep. 30, 2015		54,182,267
Increase (Decrease) in Stockholders' Equity
Stock-based compensation		$ 0	0	0
Net loss for the year	(4,022,258)	0		(3,121,066)
Balance at Sep. 30, 2016	$ (18,966,520)	$ 54,182	$ 19,398,714	$ (38,419,416)
Ending Balance - Shares at Sep. 30, 2016		54,182,267

BASIS OF PRESENTATION

BASIS OF PRESENTATION	12 Months Ended
	Sep. 30, 2016
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.

GOING CONCERN

GOING CONCERN	12 Months Ended
	Sep. 30, 2016
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 $38,419,416 since inception at September 30, 2016. 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 consolidated financial statements do not include any adjustments that might result from the outcome of this uncertainty.

SUMMARY OF SIGNIFICANT ACCOUNTI

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	12 Months Ended
	Sep. 30, 2016
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES [Abstract]
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	NOTE 3: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES a) Basis of Accounting The Company’s consolidated financial statements are prepared in accordance with accounting principles generally accepted in the United States. These consolidated statements include the accounts of the Company and its wholly-owned subsidiaries, Arkanova Acquisition Corp. and Provident Energy Associates of Montana, LLC. All significant intercompany transactions and balances have been eliminated. The Company has a September 30 year-end. b) Use of Estimates The preparation of consolidated financial statements in accordance with United States generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenue and expenses in the reporting period. The Company regularly evaluates estimates and assumptions related to useful life and recoverability of long-lived assets, stock-based compensation expense, deferred income tax asset valuations and loss contingencies. The Company bases its estimates and assumptions on current facts, historical experience and various other factors that it believes to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities and the accrual of costs and expenses that are not readily apparent from other sources. The actual results experienced by the Company may differ materially and adversely from the Company’s estimates. To the extent there are material differences between the estimates and the actual results, future results of operations will be affected. c) Reclassifications Certain amounts in the prior-year financial statements have been reclassified for comparative purposes to conform with the presentation in the current period statements. d) Cash and Cash Equivalents For purposes of the statement of cash flows, Arkanova considers all highly liquid instruments with maturity of three months or less at the time of issuance to be cash equivalents. e) Basic and Diluted Net Income (Loss) Per Share Arkanova computes net income (loss) per share in accordance with ASC 260, Earnings per Share f) Financial Instruments The Company’s financial instruments consist of cash and cash equivalents, oil and gas receivables, other receivables, accounts payable and accrued liabilities, due to related party, loans payable, and short-term notes payable. The Company believes that the recorded values of all of the other financial instruments approximate their current fair values because of their nature and respective maturity dates or durations. g) Property and Equipment Property and equipment consists of computer hardware, office furniture and equipment, vehicle, exploration equipment, computer software and leasehold improvements and is recorded at cost, less accumulated depreciation. Property and equipment is amortized on a straight-line basis over its estimated life: Computer hardware 3 years Office furniture and equipment 5 years Vehicle 5 years Exploration equipment 5 years Computer software 1 year Leasehold improvements 5 years h) Revenue Recognition The Company recognizes oil and gas revenue when production is sold at a fixed or determinable price, persuasive evidence of an arrangement exists, delivery has occurred and title has transferred, and collectability is reasonably assured. i) Accounts Receivable Accounts receivable are generally reported net of an allowance for uncollectible accounts. The allowance for uncollectible accounts is determined based on past collection experience and an analysis of outstanding balances. As of September 30, 2016, Arkanova has not recorded an allowance as all receivables are deemed collectable at this time. j) Oil and Gas Properties Arkanova utilizes the full-cost method of accounting for petroleum and natural gas properties. Under this method, Arkanova capitalizes all costs associated with acquisition, exploration and development of oil and natural gas reserves, including leasehold acquisition costs, geological and geophysical expenditures, lease rentals on undeveloped properties and costs of drilling of productive and non-productive wells into the full cost pool on a country by country basis. As of September 30, 2016, Arkanova had properties with proven reserves. When Arkanova obtains proven oil and gas reserves, capitalized costs, including estimated future costs to develop the reserves proved and estimated abandonment costs, net of salvage, will be depleted on the units-of-production method using estimates of proved reserves. The costs of unproved properties are not amortized until it is determined whether or not proved reserves can be assigned to the properties. Arkanova assesses the property at least quarterly to ascertain whether impairment has occurred. In assessing impairment Arkanova performs a ceiling test calculation and considers factors such as historical experience and other data such as primary lease terms of the property, average holding periods of unproved property, and geographic and geologic data. During the year ended September 30, 2016 an impairment of $242,330 (2015 - $898,861) was recorded. k) Related Parties The Company follows ASC 850, Related Party Disclosures, l) Asset Retirement Obligations Arkanova accounts for asset retirement obligations in accordance with ASC 410-20, Asset Retirement Obligations m) Long-lived Assets In accordance with ASC 360, Property, Plant and Equipment n) Concentration of Risk Arkanova maintains its cash accounts in a commercial bank located in Texas, United States. Arkanova's cash accounts are uninsured and insured business checking accounts and deposits maintained in U.S. dollars. As at September 30, 2016, Arkanova has not engaged in any transactions that would be considered derivative instruments on hedging activities. Of the $74,755 of cash Arkanova held at September 30, 2016, the full amount is insured by the Federal Deposit Insurance Corporation. o) Comprehensive Loss ASC 220, Comprehensive Income p) Income Taxes Potential benefits of income tax losses are not recognized in the accounts until realization is more likely than not. Arkanova has adopted ASC 740, Income Taxes q) Fair value Accounting standards regarding fair value of financial instruments define fair value, establish a three-level hierarchy which prioritizes and defines the types of inputs used to measure fair value, and establish disclosure requirements for assets and liabilities presented at fair value on the consolidated balance sheets. Fair value is the amount that would be received from the sale of an asset or paid for the transfer of a liability in an orderly transaction between market participants. A liability is quantified at the price it would take to transfer the liability to a new obligor, not at the amount that would be paid to settle the liability with the creditor. The three-level hierarchy is as follows: • Level 1 inputs consist of unadjusted quoted prices for identical instruments in active markets. • Level 2 inputs consist of quoted prices for similar instruments. • Level 3 valuations are derived from inputs which are significant and unobservable and have the lowest priority. Financial assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. The carrying amounts reported in the balance sheet for cash, oil and gas receivables, other receivables, accounts payable and accrued liabilities, due to related party, short-term loans payable, and short-term notes payable approximate their fair market value based on the short-term maturity of these instruments. r) Stock-based Compensation The Company records stock-based compensation in accordance with ASC 718, Compensation – Stock Based Compensation Equity Based Payments to Non-Employees s) Recent Accounting Pronouncements The Company has implemented all new accounting pronouncements that are in effect and that may impact its financial statements and does not believe that there are any other new accounting pronouncements that have been issued that might have a material impact on its financial position or results of operations.

RESTRICTED CASH

RESTRICTED CASH	12 Months Ended
	Sep. 30, 2016
RESTRICTED CASH [Abstract]
RESTRICTED CASH	NOTE 4: 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 year ended September 30, 2016 was $57 (2015 - $57). 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 December 2, 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 year ended September 30, 2016 was $81 (2015 - $81). 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 year ended September 30, 2016 was $410 (2015 - $102). The investment is to secure a letter to the US Environmental Protection Agency for $68,000 for four of the Company’s wells.

OTHER RECEIVABLES - RELATED PAR

OTHER RECEIVABLES - RELATED PARTIES	12 Months Ended
	Sep. 30, 2016
OTHER RECEIVABLES - RELATED PARTIES [Abstract]
OTHER RECEIVABLES - RELATED PARTIES	NOTE 5: OTHER RECEIVABLES – RELATED PARTIES At September 30, 2016, the Company has $nil (2015 - $433,459) of other receivables due from related parties. This balance consists of the following items: 2016 2015 Aton receivable $ – $ 96,324 Knightwall receivable – 337,135 $ – $ 433,459 Other receivables from related parties consist of the Company’s working interest partners, Aton Select Funds Limited (“Aton”) and Knightwall Invest, Inc.’s (“Knightwall”) portion of oil and gas income less their portion of expenses. During the year ended September 30, 2016, the Company recognized an impairment of $901,192 as there was uncertainty with regards to the collection of the receivables.

PROPERTY AND EQUIPMENT

PROPERTY AND EQUIPMENT	12 Months Ended
	Sep. 30, 2016
PROPERTY AND EQUIPMENT [Abstract]
PROPERTY AND EQUIPMENT	NOTE 6: PROPERTY AND EQUIPMENT September 30, September 30, 2016 2015 Accumulated Net Carrying Net Carrying Cost Depreciation Value Value Computer hardware $ 10,440 $ 9,980 $ 460 $ 2,299 Exploration equipment 431,074 306,561 124,513 187,832 Leasehold improvements 37,527 19,370 18,157 3,011 Office furniture and equipment 25,225 25,225 – 1,300 Vehicle 212,544 164,457 48,087 66,614 $ 716,810 $ 525,593 $ 191,217 $ 261,056 During the year ended September 30, 2016, the Company purchased $20,427 (2015 - $56,488) of property and equipment. During the year ended September 30, 2016, the Company record depreciation expense of $90,266 (2015 - $99,824).

OTHER ASSETS

OTHER ASSETS	12 Months Ended
	Sep. 30, 2016
OTHER ASSETS [Abstract]
OTHER ASSETS	NOTE 7: OTHER ASSETS Other assets consist of bonds required by US Environmental Protection Agency, Montana Board of Oil and Gas Conservative, and Bureau of Land Management to guarantee the eventual proper plugging of wells and restoration of the surface for the Company’s oil and gas properties. This balance consists of the following items: 2016 2015 US Environmental Protection Agency $ 22,000 $ 22,000 Montana Board of Oil and Gas Conservative 25,000 25,000 Bureau of Land Management 50,000 50,000 $ 97,000 $ 97,000

OIL AND GAS INTERESTS

OIL AND GAS INTERESTS	12 Months Ended
	Sep. 30, 2016
OIL AND GAS INTERESTS [Abstract]
OIL AND GAS INTERESTS	NOTE 8: 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 year ended September 30, 2016, the Company incurred costs of $192,297 (2015 - $748,837) that were capitalized to their oil and gas properties. At September 30, 2016 and 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 $242,330 (2015 - $898,861) was recorded. The carrying value of Arkanova’s evaluated oil and gas properties at September 30, 2016 and September 30, 2015 was $5,994 and $315,859, respectively. During the year ended September 30, 2016, the Company recorded depletion of $604,591 (2015 - $259,358). During the year ended September 30, 2014, the Company received $1,395,000 of project advances, of which $310,000 was received from Aton Select Funds Limited (“Aton”) and $1,085,000 was received from Knightwall Invest, Inc. (“Knightwall”), related parties to the Company. Of the $1,395,000, $582,886 was reallocated to oil and gas properties to offset against the costs for the other working interest partners. During the year ended September 30, 2015, the Company received an additional $2,025,000 of project advances, of which $450,000 was received from Aton and $1,575,000 was received from Knightwall. Of the $2,025,000, $593,341 was reallocated to oil and gas properties to offset against the costs for the other working interest partners. During the year ended September 30, 2016, the Company did not receive any additional project advances from Aton and Knighwall and $159,152 was reallocated to oil and gas properties to offset against the costs for the other working interest partners. At September 30, 2016, the Company has $2,084,621 (2015 - $2,243,773) of project advances shown as a current liability on the consolidated balance sheet of which $463,249 (2015 - $498,616) was received from Aton and $1,621,372 (2015 - $1,745,157) was received from Knighwall. At September 30, 2016, $1,335,379 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 will be used for costs to be incurred on the waterflood project and on drilling of Bekkan Well.

RELATED PARTY TRANSACTIONS

RELATED PARTY TRANSACTIONS	12 Months Ended
	Sep. 30, 2016
RELATED PARTY TRANSACTIONS [Abstract]
RELATED PARTY TRANSACTIONS	NOTE 9: RELATED PARTY TRANSACTIONS (a) At September 30, 2016, the Company owed backpay of $93,250 (September 30, 2015 - $3,750) to the President of the Company and $8,792 (2015 - $11,029) to the CFO of the Company. (b) At September 30, 2016, the Company owed $14,963,861 (2015 - $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 September 30, 2016, $463,249 of the project advances of $2,084,621 was provided by Aton. At September 30, 2015, $498,616 of the project advances of $2,243,773 was provided by Aton. (d) At September 30, 2016, $1,621,372 of the project advances of $2,084,621 was provided by Knightwall. At September 30, 2015, $1,745,157 of the project advances of $2,243,773 was provided by Knightwall.

NOTES PAYABLE

NOTES PAYABLE	12 Months Ended
	Sep. 30, 2016
NOTES PAYABLE [Abstract]
NOTES PAYABLE	NOTE 10: NOTES PAYABLE On November 1, 2014, the Company’s subsidiary entered into a Loan Modification Agreement with Aton, a related party to the Company, 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. On December 31, 2016, the Company renewed the note and extended the maturity date to December 31, 2017. As the note was renewed on a long term basis, the loan has been reclassified from current liabilities to long term liabilities at September 30, 2016. 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. 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 year ended September 30, 2016, the Company repaid a principal amount of $20,407 (2015 – $18,860). The balance of the loan is $15,843 at September 30, 2016 (2015 - $36,250). The following principal payments for notes payable are required: 2017 $ 15.843 2018 $ 14.963.861

COMMON STOCK

COMMON STOCK	12 Months Ended
	Sep. 30, 2016
COMMON STOCK [Abstract]
COMMON STOCK	NOTE 11: COMMON STOCK Common Stock The Company did not issue any common shares during the years ended September 30, 2016 and 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. On May 1, 2015, Arkanova granted 225,000 stock options valued at $4,133 with immediate vesting to an employee to acquire 225,000 stock options at an exercise price of $0.05 per share expiring in 5 years. The grant date fair value of the options using the Black-Scholes option pricing model was $0.02 per share. On June 1, 2015, Arkanova granted 100,000 stock options valued at $1,738 with immediate vesting to an employee to acquire 100,000 stock options at an exercise price of $0.05 per share expiring in 5 years. The grant date fair value of the options using the Black-Scholes option pricing model was $0.02 per share. The following assumptions were used to value the options: November 1, 2014 May 1, 2015 June 1, 2015 Expected dividend yield 0.00% 0.00% 0.00% Expected volatility 206% 206% 205% Expected life (in years) 5.00 5.00 5.00 Risk-free interest rate 1.62% 1.50% 1.55% During the year ended September 30, 2016, Arkanova did not grant any stock options. During the year ended September 30, 2016, no stock options were exercised (2015 – nil), no stock options expired unexercised (2015 – nil) and no stock options were forfeited (2015 – 250,000 options cancelled). During the year ended September 30, 2016, no stock-based compensation was recorded. During the year ended September 30, 2015, stock-based compensation of $11,261 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, 2014 4,800,000 $ 0.05* Granted 425,000 0.05* Cancelled (250,000 ) (0.10 )* Outstanding, September 30, 2015 4,975,000 $ 0.05* Expired – Outstanding, September 30, 2016 4,975,000 $ 0.05* Exercisable, September 30, 2016 4,975,000 $ 0.05* 2.41 $ – * 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 September 30, 2016, 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 September 30, 2016.

FAIR VALUE MEASUREMENTS

FAIR VALUE MEASUREMENTS	12 Months Ended
	Sep. 30, 2016
FAIR VALUE MEASUREMENTS [Abstract]
FAIR VALUE MEASUREMENTS	NOTE 12: FAIR VALUE MEASUREMENTS ASC 825 defines fair value as the price that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. In determining fair value for assets and liabilities required or permitted to be recorded at fair value, the Company considers the principal or most advantageous market in which it would transact and it considers assumptions that market participants would use when pricing the asset or liability. Fair Value Hierarchy ASC 825 establishes a fair value hierarchy that requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. A financial instrument's categorization within the fair value hierarchy is based upon the lowest level of input that is significant to the fair value measurement. ASC 825 establishes three levels of inputs that may be used to measure fair value. Level 1 Level 1 applies to assets and liabilities for which there are quoted prices in active markets for identical assets or liabilities. Valuations are based on quoted prices that are readily and regularly available in an active market and do not entail a significant degree of judgment. Level 2 Level 2 applies to assets and liabilities for which there are other than Level 1 observable inputs such as quoted prices for similar assets or liabilities in active markets, quoted prices for identical assets or liabilities in markets with insufficient volume or infrequent transactions (less active markets), or model-derived valuations in which significant inputs are observable or can be derived principally from, or corroborated by, observable market data. Level 2 instruments require more management judgment and subjectivity as compared to Level 1 instruments. For instance: Determining which instruments are most similar to the instrument being priced requires management to identify a sample of similar securities based on the coupon rates, maturity, issuer, credit rating and instrument type, and subjectively select an individual security or multiple securities that are deemed most similar to the security being priced; and Determining whether a market is considered active requires management judgment. Level 3 Level 3 applies to assets and liabilities for which there are unobservable inputs to the valuation methodology that are significant to the measurement of the fair value of the assets or liabilities. The determination of fair value for Level 3 instruments requires the most management judgment and subjectivity. The Company believes that the recorded values of all of the other financial instruments approximate their current fair values because of their nature and respective relatively short maturity dates or durations.

COMMITMENTS

COMMITMENTS	12 Months Ended
	Sep. 30, 2016
COMMITMENTS [Abstract]
COMMITMENTS	NOTE 13: COMMITMENTS See Note 9. (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 September 30, 2016, 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 $3,208 per month over the term of the lease. Lease expense for the year ended September 30, 2016 under this lease was $64,160 (2015 - $59,739). (c) On June 1, 2016, the Company commenced a lease agreement for a period of 36 months. The monthly base rate begins at $2,346 and increases to $2,529 per month for the last 12 months. Lease expense for the year ended September 30, 2016 under this lease was $15,000 (2015 - $nil). Lease payments at the monthly base rate for the remainder of the lease term are as follows: 2017 $ 28,182 2018 $ 28,881 2019 $ 20,230 (d) 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 year ended September 30, 2016, the Company repaid a total of $37,500 (2015 - $37,500) to Ms. Eustice. At September 30, 2016, there is a total balance owing of $9,375. The following principal payments are required: 2017 $ 9,375

ASSET RETIREMENT OBLIGATION

ASSET RETIREMENT OBLIGATION	12 Months Ended
	Sep. 30, 2016
ASSET RETIREMENT OBLIGATION [Abstract]
ASSET RETIREMENT OBLIGATION	NOTE 14: ASSET RETIREMENT OBLIGATIONS Changes in Arkanova’s asset retirement obligations were as follows: Year Year Ended Ended September 30, September 30, 2016 2015 Asset retirement obligations, beginning of period $ 163,648 $ 149,124 Accretion expense 15,984 14,524 Revisions due to change in reserve estimate 344,759 – Asset retirement obligations, end of period $ 524,391 $ 163,648

SUPPLEMENTAL CASH FLOW AND OTHE

SUPPLEMENTAL CASH FLOW AND OTHER DISCLOSURES	12 Months Ended
	Sep. 30, 2016
SUPPLEMENTAL CASH FLOW AND OTHER DISCLOSURES [Abstract]
SUPPLEMENTAL CASH FLOW AND OTHER DISCLOSURES	NOTE 15: SUPPLEMENTAL CASH FLOW AND OTHER DISCLOSURES Year Year Ended Ended September 30, September 30, 2016 2015 Supplemental Disclosures: Interest paid $ 1,821 $ 2,958 Income taxes paid $ – $ – Non-cash Financing and Investing Activities Accounts payable related to oil and gas property expenditures $ – $ 100,604 Revision to asset retirement obligation due to change in reserve estimate $ 344,759 $ – Project advances re-allocated to oil and gas expenditures $ 159,152 $ 593,341

CONCENTRATIONS

CONCENTRATIONS	12 Months Ended
	Sep. 30, 2016
CONCENTRATIONS [Abstract]
CONCENTRATIONS	NOTE 16: CONCENTRATIONS Arkanova’s revenues and receivables were concentrated among one customer as of September 30, 2016 and 2015.

INCOME TAXES

INCOME TAXES	12 Months Ended
	Sep. 30, 2016
INCOME TAXES [Abstract]
INCOME TAXES	NOTE 17: INCOME TAXES Potential benefits of income tax losses are not recognized in the accounts until realization is more likely than not. The Company has incurred non-capital losses as scheduled below: Year of Year of Loss Amount Expiration 2006 $ 16,548 2026 2007 493,777 2027 2008 1,199,618 2028 2009 3,853,251 2029 2010 3,008,921 2030 2011 2,628,028 2031 2012 1,636,396 2032 2013 1,660,225 2033 2014 1,731,437 2034 2015 2,042,332 2035 2016 2,167,895 2036 $ 20,438,428 Pursuant to ASC 740, the Company is required to compute tax asset benefits for non-capital losses carried forward. Potential benefit of non-capital losses have not been recognized in these financial statements because the Company cannot be assured it is more likely than not it will utilize the losses carried forward in future years. Significant components of the Company’s deferred tax assets and liabilities, after applying enacted corporate income tax rates, are as follows: 2016 2015 Deferred income tax assets Net losses carried forward $ 20,438,428 $ 18,270,533 7,153,450 6,394,687 Valuation allowance (7,153,450 ) (6,394,687 ) Net deferred income tax asset $ – $ – The valuation allowance reflects the Company’s estimate that the tax assets, more likely than not, will not be realized and consequently have not been recorded in these financial statements. The Company’s tax years subsequent to 2015 are currently remain open and subject to examination by federal tax authorities.

SUBSEQUENT EVENT

SUBSEQUENT EVENT	12 Months Ended
	Sep. 30, 2016
SUBSEQUENT EVENT [Abstract]
SUBSEQUENT EVENT	NOTE 18: SUBSEQUENT EVENTS a) On December 5, 2016, the Company invested in a deposit for $23,595. The investment matures on November 22, 2017 and bears interest at a rate of 2.3% annually. The investment is to secure a letter to the US Environmental Protection Agency for $23,595 for one of the Company’s wells. b) On December 2, 2016, the Company invested in two deposits for $18,108 each. The term of the investments is 12 months, maturing on December 2, 2017 and bears interest at a rate of 0.25% annually. The investments are to secure two letters to the US Environmental Protection Agency for $18,000 each for two of the Company’s wells. c) On December 31, 2016, the Company’s subsidiary entered into a Note Amendment Agreement with Aton, a related party to the Company, to extend the maturity date of the note to December 31, 2017. The new principal of the note is $16,909,573 which includes accrued interest of $1,945,712.

SUPPLEMENTAL OIL AND GAS INFORM

SUPPLEMENTAL OIL AND GAS INFORMATION	12 Months Ended
	Sep. 30, 2016
SUPPLEMENTAL OIL AND GAS INFORMATION [Abstract]
SUPPLEMENTAL OIL AND GAS INFORMATION	NOTE 19: SUPPLEMENTAL OIL AND GAS INFORMATION Capitalized Costs Related to Oil and Gas Producing Activities September 30, September 30, 2016 2015 Evaluated oil and gas properties $ 20,393,715 $ 19,856,659 Less accumulated depletion and impairment (20,387,721 ) (19,540,800 ) Net capitalized costs for evaluated oil and gas properties $ 5,994 $ 315,859 Costs incurred in Oil and Gas Property Acquisition, Exploration and Development Activities September 30, September 30, 2016 2015 Evaluated Property Acquisition Costs $ – $ – Evaluated Exploration Costs 537,56 748,837 $ 537,56 $ 748,837 Results of Operations from Oil and Gas Producing Activities September 30, September 30, 2016 2015 Revenue $ 351,312 $ 452,686 Production costs (533,381 ) (482,798 ) Depletion, depreciation and amortization (604,591 ) (259,358 ) Impairment of oil and gas properties (242,330 ) (898,861 ) Loss from oil and gas operations $ (1,028,990 ) $ (1,188,331 ) Reserve Information The following estimates of proved reserve and proved developed reserve quantities and related standardized measure of discounted net cash flow are estimates only, and do not purport to reflect realizable values or fair market values of the Company’s reserves. The Company emphasizes that reserve estimates are inherently imprecise and that estimates of new discoveries are more imprecise than those of producing oil and gas properties. Accordingly, these estimates are expected to change as future information becomes available. All of the Company’s reserves are located in the United States. Future cash flows are computed by applying prices of oil which are based on the respective 12-month unweighted average of the first of the month prices to period end quantities of proved oil reserves. The 12-month unweighted average of the first of the month market prices used for the standardized measures below was $31.59/barrel and $46.14/barrel for liquids for September 30, 2016 and 2015. Future operating expenses and development costs are computed primarily by the Company’s petroleum engineers by estimating the expenditures to be incurred in developing and producing the Company’s proved natural gas and oil reserves at the end of the period, based on period end costs and assuming continuation of existing economic conditions. Future income taxes are based on period end statutory rates, adjusted for tax basis and applicable tax credits. A discount factor of ten percent was used to reflect the timing of future net cash flows. The standardized measure of discounted future net cash flows is not intended to represent the replacement cost of fair value of the Company’s natural gas and oil properties. An estimate of fair value would also take into account, among other things, the recovery of reserves not presently classified as proved, anticipated future changes in prices and costs, and a discount factor more representative of the time value of money and the risks inherent in reserve estimate of natural gas and oil producing operations. Proved Oil and Gas Reserve Quantities September 30, September 30, 2016 2015 Oil Oil (Mbbl) (Mbbl) Balance beginning of the year 211,097 33,090 Revisions of previous estimates (199,213 ) 186,546 Production (8,424 ) (8,539 ) Balance end of the year 3,460 211,097 Standardized Measure of Discounted Future Net Cash Flow September 30, September 30, 2016 2015 Future cash inflows $ 109,321 $ 8,992,048 Future production and development costs (103,877 ) (2,776,956 ) Future income tax recovery (expenses) (1,905 ) (2,175,282 ) Future net cash flows 3,539 4,039,810 10% annual discount for estimated timing of cash flows 358 (1,557,463 ) Standardized measure of discounted future net cash flows $ 3,897 $ 2,482,347 Sources of Changes in Discounted Future Net Cash Flows September 30, September 30, 2016 2015 Standardized measure of discounted future net cash flows at the beginning of the year $ 2,482,347 $ 582,565 Accretion of discount 381,900 89,625 Development costs incurred 537,056 748,837 Changes in estimated development costs (490,827 ) (712,261 ) Revision of previous quantity estimates (764,517 ) 3,400,316 Net change in prices and production costs (3,739,681 ) (714,887 ) Net change in income taxes 1,334,550 (1,022,960 ) Sales of oil and gas produced, net of production costs 263,069 111,112 Standardized measure of discounted future net cash flows at the end of the year $ 3,897 $ 2,482,347

SUMMARY OF SIGNFICANT ACCOUNTIN

SUMMARY OF SIGNFICANT ACCOUNTING POLICIES (Policies)	12 Months Ended
	Sep. 30, 2016
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES [Abstract]
Basis of Accounting	a) Basis of Accounting The Company’s consolidated financial statements are prepared in accordance with accounting principles generally accepted in the United States. These consolidated statements include the accounts of the Company and its wholly-owned subsidiaries, Arkanova Acquisition Corp. and Provident Energy Associates of Montana, LLC. All significant intercompany transactions and balances have been eliminated. The Company has a September 30 year-end.
Use of Estimates	b) Use of Estimates The preparation of consolidated financial statements in accordance with United States generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenue and expenses in the reporting period. The Company regularly evaluates estimates and assumptions related to useful life and recoverability of long-lived assets, stock-based compensation expense, deferred income tax asset valuations and loss contingencies. The Company bases its estimates and assumptions on current facts, historical experience and various other factors that it believes to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities and the accrual of costs and expenses that are not readily apparent from other sources. The actual results experienced by the Company may differ materially and adversely from the Company’s estimates. To the extent there are material differences between the estimates and the actual results, future results of operations will be affected.
Reclassifications	c) Reclassifications Certain amounts in the prior-year financial statements have been reclassified for comparative purposes to conform with the presentation in the current period statements.
Cash and Cash Equivalents	d) Cash and Cash Equivalents For purposes of the statement of cash flows, Arkanova considers all highly liquid instruments with maturity of three months or less at the time of issuance to be cash equivalents.
Basic and Diluted Net Income (Loss) Per Share	e) Basic and Diluted Net Income (Loss) Per Share Arkanova computes net income (loss) per share in accordance with ASC 260, Earnings per Share
Financial Instruments	f) Financial Instruments The Company’s financial instruments consist of cash and cash equivalents, oil and gas receivables, other receivables, accounts payable and accrued liabilities, due to related party, loans payable, and short-term notes payable. The Company believes that the recorded values of all of the other financial instruments approximate their current fair values because of their nature and respective maturity dates or durations.
Property and Equipment	g) Property and Equipment Property and equipment consists of computer hardware, office furniture and equipment, vehicle, exploration equipment, computer software and leasehold improvements and is recorded at cost, less accumulated depreciation. Property and equipment is amortized on a straight-line basis over its estimated life: Computer hardware 3 years Office furniture and equipment 5 years Vehicle 5 years Exploration equipment 5 years Computer software 1 year Leasehold improvements 5 years
Revenue Recognition	h) Revenue Recognition The Company recognizes oil and gas revenue when production is sold at a fixed or determinable price, persuasive evidence of an arrangement exists, delivery has occurred and title has transferred, and collectability is reasonably assured.
Accounts Receivable	i) Accounts Receivable Accounts receivable are generally reported net of an allowance for uncollectible accounts. The allowance for uncollectible accounts is determined based on past collection experience and an analysis of outstanding balances. As of September 30, 2016, Arkanova has not recorded an allowance as all receivables are deemed collectable at this time.
Oil and Gas Properties	j) Oil and Gas Properties Arkanova utilizes the full-cost method of accounting for petroleum and natural gas properties. Under this method, Arkanova capitalizes all costs associated with acquisition, exploration and development of oil and natural gas reserves, including leasehold acquisition costs, geological and geophysical expenditures, lease rentals on undeveloped properties and costs of drilling of productive and non-productive wells into the full cost pool on a country by country basis. As of September 30, 2016, Arkanova had properties with proven reserves. When Arkanova obtains proven oil and gas reserves, capitalized costs, including estimated future costs to develop the reserves proved and estimated abandonment costs, net of salvage, will be depleted on the units-of-production method using estimates of proved reserves. The costs of unproved properties are not amortized until it is determined whether or not proved reserves can be assigned to the properties. Arkanova assesses the property at least quarterly to ascertain whether impairment has occurred. In assessing impairment Arkanova performs a ceiling test calculation and considers factors such as historical experience and other data such as primary lease terms of the property, average holding periods of unproved property, and geographic and geologic data. During the year ended September 30, 2016 an impairment of $242,330 (2015 - $898,861) was recorded.
Related Parties	k) Related Parties The Company follows ASC 850, Related Party Disclosures,
Asset Retirement Obligations	l) Asset Retirement Obligations Arkanova accounts for asset retirement obligations in accordance with ASC 410-20, Asset Retirement Obligations
Long-lived Assets	m) Long-lived Assets In accordance with ASC 360, Property, Plant and Equipment
Concentration of Risk	n) Concentration of Risk Arkanova maintains its cash accounts in a commercial bank located in Texas, United States. Arkanova's cash accounts are uninsured and insured business checking accounts and deposits maintained in U.S. dollars. As at September 30, 2016, Arkanova has not engaged in any transactions that would be considered derivative instruments on hedging activities. Of the $74,755 of cash Arkanova held at September 30, 2016, the full amount is insured by the Federal Deposit Insurance Corporation.
Comprehensive Loss	o) Comprehensive Loss ASC 220, Comprehensive Income
Income Taxes	p) Income Taxes Potential benefits of income tax losses are not recognized in the accounts until realization is more likely than not. Arkanova has adopted ASC 740, Income Taxes
Fair Value	q) Fair value Accounting standards regarding fair value of financial instruments define fair value, establish a three-level hierarchy which prioritizes and defines the types of inputs used to measure fair value, and establish disclosure requirements for assets and liabilities presented at fair value on the consolidated balance sheets. Fair value is the amount that would be received from the sale of an asset or paid for the transfer of a liability in an orderly transaction between market participants. A liability is quantified at the price it would take to transfer the liability to a new obligor, not at the amount that would be paid to settle the liability with the creditor. The three-level hierarchy is as follows: • Level 1 inputs consist of unadjusted quoted prices for identical instruments in active markets. • Level 2 inputs consist of quoted prices for similar instruments. • Level 3 valuations are derived from inputs which are significant and unobservable and have the lowest priority. Financial assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. The carrying amounts reported in the balance sheet for cash, oil and gas receivables, other receivables, accounts payable and accrued liabilities, due to related party, short-term loans payable, and short-term notes payable approximate their fair market value based on the short-term maturity of these instruments.
Stock-based Compensation	r) Stock-based Compensation The Company records stock-based compensation in accordance with ASC 718, Compensation – Stock Based Compensation Equity Based Payments to Non-Employees
Recent Accounting Pronouncements	s) Recent Accounting Pronouncements The Company has implemented all new accounting pronouncements that are in effect and that may impact its financial statements and does not believe that there are any other new accounting pronouncements that have been issued that might have a material impact on its financial position or results of operations.

SUMMARY OF SIGNFICANT ACCOUNT27

SUMMARY OF SIGNFICANT ACCOUNTING POLICIES (Tables)	12 Months Ended
	Sep. 30, 2016
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES [Abstract]
Property and Equipment, Schedule of Useful Life by Class	Property and equipment is amortized on a straight-line basis over its estimated life: Computer hardware 3 years Office furniture and equipment 5 years Vehicle 5 years Exploration equipment 5 years Computer software 1 year Leasehold improvements 5 years

OTHER RECEIVABLES - RELATED P28

OTHER RECEIVABLES - RELATED PARTIES (Tables)	12 Months Ended
	Sep. 30, 2016
OTHER RECEIVABLES - RELATED PARTIES [Abstract]
Other receivables - related parties	At September 30, 2016, the Company has $nil (2015 - $433,459) of other receivables due from related parties. This balance consists of the following items: 2016 2015 Aton receivable $ – $ 96,324 Knightwall receivable – 337,135 $ – $ 433,459

PROPERTY AND EQUIPMENT (Tables)

PROPERTY AND EQUIPMENT (Tables)	12 Months Ended
	Sep. 30, 2016
PROPERTY AND EQUIPMENT [Abstract]
Schedule of property and equipment cost, accumulated depreciation and carrying value	PROPERTY AND EQUIPMENT September 30, September 30, 2016 2015 Accumulated Net Carrying Net Carrying Cost Depreciation Value Value Computer hardware $ 10,440 $ 9,980 $ 460 $ 2,299 Exploration equipment 431,074 306,561 124,513 187,832 Leasehold improvements 37,527 19,370 18,157 3,011 Office furniture and equipment 25,225 25,225 – 1,300 Vehicle 212,544 164,457 48,087 66,614 $ 716,810 $ 525,593 $ 191,217 $ 261,056

OTHER ASSETS (Tables)

OTHER ASSETS (Tables)	12 Months Ended
	Sep. 30, 2016
OTHER ASSETS [Abstract]
Schedule of other assets	Other assets consist of bonds required by US Environmental Protection Agency, Montana Board of Oil and Gas Conservative, and Bureau of Land Management to guarantee the eventual proper plugging of wells and restoration of the surface for the Company’s oil and gas properties. This balance consists of the following items: 2016 2015 US Environmental Protection Agency $ 22,000 $ 22,000 Montana Board of Oil and Gas Conservative 25,000 25,000 Bureau of Land Management 50,000 50,000 $ 97,000 $ 97,000

COMMON STOCK (Tables)

COMMON STOCK (Tables)	12 Months Ended
	Sep. 30, 2016
COMMON STOCK [Abstract]
Schedule of Stock Options, Valuation Assumptions	The following assumptions were used to value the options: November 1, 2014 May 1, 2015 June 1, 2015 Expected dividend yield 0.00% 0.00% 0.00% Expected volatility 206% 206% 205% Expected life (in years) 5.00 5.00 5.00 Risk-free interest rate 1.62% 1.50% 1.55%
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 425,000 0.05* Cancelled (250,000 ) (0.10 )* Outstanding, September 30, 2015 4,975,000 $ 0.05* Expired – Outstanding, September 30, 2016 4,975,000 $ 0.05* Exercisable, September 30, 2016 4,975,000 $ 0.05* 2.41 $ –
Schedule of Fair Value of Each Option Amendment, Under 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)	12 Months Ended
	Sep. 30, 2016
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: 2017 $ 28,182 2018 $ 28,881 2019 $ 20,230
Schedule of Principal Payments Required Under Settlement Agreement	The following principal payments are required: 2017 $ 9,375

ASSET RETIREMENT OBLIGATION (Ta

ASSET RETIREMENT OBLIGATION (Tables)	12 Months Ended
	Sep. 30, 2016
ASSET RETIREMENT OBLIGATION [Abstract]
Schedule of Changes in Asset Retirement Obligations	Changes in Arkanova’s asset retirement obligations were as follows: Year Year Ended Ended September 30, September 30, 2016 2015 Asset retirement obligations, beginning of period $ 163,648 $ 149,124 Accretion expense 15,984 14,524 Revisions due to change in reserve estimate 344,759 – Asset retirement obligations, end of period $ 524,391 $ 163,648

SUPPLEMENTAL CASH FLOW AND OT34

SUPPLEMENTAL CASH FLOW AND OTHER DISCLOSURES (Tables)	12 Months Ended
	Sep. 30, 2016
SUPPLEMENTAL CASH FLOW AND OTHER DISCLOSURES [Abstract]
Schedule of Cash Flow Supplemental Disclosures	SUPPLEMENTAL CASH FLOW AND OTHER DISCLOSURES Year Year Ended Ended September 30, September 30, 2016 2015 Supplemental Disclosures: Interest paid $ 1,821 $ 2,958 Income taxes paid $ – $ – Non-cash Financing and Investing Activities Accounts payable related to oil and gas property expenditures $ – $ 100,604 Revision to asset retirement obligation due to change in reserve estimate $ 344,759 $ – Project advances re-allocated to oil and gas expenditures $ 159,152 $ 593,341

INCOME TAXES (Tables)

INCOME TAXES (Tables)	12 Months Ended
	Sep. 30, 2016
INCOME TAXES [Abstract]
Schedule of Non-Capital Losses	Potential benefits of income tax losses are not recognized in the accounts until realization is more likely than not. The Company has incurred non-capital losses as scheduled below: Year of Year of Loss Amount Expiration 2006 $ 16,548 2026 2007 493,777 2027 2008 1,199,618 2028 2009 3,853,251 2029 2010 3,008,921 2030 2011 2,628,028 2031 2012 1,636,396 2032 2013 1,660,225 2033 2014 1,731,437 2034 2015 2,042,332 2035 2016 2,167,895 2036 $ 20,438,428
Schedule of Components of Deferred Tax Assets and Liabilities	Significant components of the Company’s deferred tax assets and liabilities, after applying enacted corporate income tax rates, are as follows: 2016 2015 Deferred income tax assets Net losses carried forward $ 20,438,428 $ 18,270,533 7,153,450 6,394,687 Valuation allowance (7,153,450 ) (6,394,687 ) Net deferred income tax asset $ – $ –

SUPPLEMENTAL OIL AND GAS PRODUC

SUPPLEMENTAL OIL AND GAS PRODUCING ACTIVITIES (Tables)	12 Months Ended
	Sep. 30, 2016
SUPPLEMENTAL OIL AND GAS INFORMATION [Abstract]
Capitalized Costs Related to Oil and Gas Producing Activities	Capitalized Costs Related to Oil and Gas Producing Activities September 30, September 30, 2016 2015 Evaluated oil and gas properties $ 20,393,715 $ 19,856,659 Less accumulated depletion and impairment (20,387,721 ) (19,540,800 ) Net capitalized costs for evaluated oil and gas properties $ 5,994 $ 315,859
Costs Incurred in Oil and Gas Property Acquisition, Exploration and Development Activities	Costs incurred in Oil and Gas Property Acquisition, Exploration and Development Activities September 30, September 30, 2016 2015 Evaluated Property Acquisition Costs $ – $ – Evaluated Exploration Costs 537,56 748,837 $ 537,56 $ 748,837
Results of Operations from Oil and Gas Producing Activities	Results of Operations from Oil and Gas Producing Activities September 30, September 30, 2016 2015 Revenue $ 351,312 $ 452,686 Production costs (533,381 ) (482,798 ) Depletion, depreciation and amortization (604,591 ) (259,358 ) Impairment of oil and gas properties (242,330 ) (898,861 ) Loss from oil and gas operations $ (1,028,990 ) $ (1,188,331 )
Proved Oil and Gas Reserve Quantities	Proved Oil and Gas Reserve Quantities September 30, September 30, 2016 2015 Oil Oil (Mbbl) (Mbbl) Balance beginning of the year 211,097 33,090 Revisions of previous estimates (199,213 ) 186,546 Production (8,424 ) (8,539 ) Balance end of the year 3,460 211,097
Standardized Measure of Discounted Future Net Cash Flow	Standardized Measure of Discounted Future Net Cash Flow September 30, September 30, 2016 2015 Future cash inflows $ 109,321 $ 8,992,048 Future production and development costs (103,877 ) (2,776,956 ) Future income tax recovery (expenses) (1,905 ) (2,175,282 ) Future net cash flows 3,539 4,039,810 10% annual discount for estimated timing of cash flows 358 (1,557,463 ) Standardized measure of discounted future net cash flows $ 3,897 $ 2,482,347
Sources of Changes in Discounted Future New Cash Flows	Sources of Changes in Discounted Future Net Cash Flows September 30, September 30, 2016 2015 Standardized measure of discounted future net cash flows at the beginning of the year $ 2,482,347 $ 582,565 Accretion of discount 381,900 89,625 Development costs incurred 537,056 748,837 Changes in estimated development costs (490,827 ) (712,261 ) Revision of previous quantity estimates (764,517 ) 3,400,316 Net change in prices and production costs (3,739,681 ) (714,887 ) Net change in income taxes 1,334,550 (1,022,960 ) Sales of oil and gas produced, net of production costs 263,069 111,112 Standardized measure of discounted future net cash flows at the end of the year $ 3,897 $ 2,482,347

BASIS OF PRESENTATION (Narrativ

BASIS OF PRESENTATION (Narrative) (Details)	12 Months Ended
	Sep. 30, 2016
BASIS OF PRESENTATION [Abstract]
Date of incorporation (Date)	Sep. 6, 2001

GOING CONCERN (Narrative) (Deta

GOING CONCERN (Narrative) (Details) - USD ($)	Sep. 30, 2016	Sep. 30, 2015
GOING CONCERN [Abstract]
Losses since inception	$ 38,419,416	$ 34,397,158

PROPERTY AND EQUIPMENT USEFUL L

PROPERTY AND EQUIPMENT USEFUL LIVES (Schedule of Property and Equipment Useful Lives by Class) (Details)	12 Months Ended
	Sep. 30, 2016
Computer hardware [Member]
Property, Plant, and Equipment [Line Items]
Estimated life over which property and equipment is amortized	3 years
Office furniture and equipment [Member]
Property, Plant, and Equipment [Line Items]
Estimated life over which property and equipment is amortized	5 years
Vehicles [Member]
Property, Plant, and Equipment [Line Items]
Estimated life over which property and equipment is amortized	5 years
Exploration equipment [Member]
Property, Plant, and Equipment [Line Items]
Estimated life over which property and equipment is amortized	5 years
Computer software [Member]
Property, Plant, and Equipment [Line Items]
Estimated life over which property and equipment is amortized	1 year
Leasehold improvements [Member]
Property, Plant, and Equipment [Line Items]
Estimated life over which property and equipment is amortized	5 years

RESTRICTED CASH (Narrative) (De

RESTRICTED CASH (Narrative) (Details)	Nov. 22, 2015USD ($)	Apr. 20, 2015USD ($)$ / shares	Dec. 02, 2014USD ($)$ / shares	Nov. 22, 2014USD ($)$ / shares	Sep. 30, 2016USD ($)	Sep. 30, 2015USD ($)
Restricted Cash and Cash Equivalents Items [Line Items]
Payment to invest in each certificate of deposit to secure a letter to the US EPA for one of the Company's wells					$ 61,720	$ 104,271
Certificate of Deposit One [Member]
Restricted Cash and Cash Equivalents Items [Line Items]
Deposit investment term (in Duration)	12 months			12 months
Payment to invest in each certificate of deposit to secure a letter to the US EPA for one of the Company's wells	$ 25,201			$ 25,125
Deposit investment, maturity date (in Date)	Nov. 22, 2016			Nov. 22, 2015
Deposit investment, interest rate (in Percent)	0.30%			0.30%
Short-term deposit investment, interest earned					57	57
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
Certificates of Deposit Two and Three [Member]
Restricted Cash and Cash Equivalents Items [Line Items]
Number of certificates of deposit invested in (in Integer) | $ / shares			2
Deposit investment term (in Duration)			12 months
Payment to invest in each certificate of deposit to secure a letter to the US EPA for one of the Company's wells			$ 18,000
Deposit investment, maturity date (in Date)			Dec. 2, 2015
Deposit investment, interest rate (in Percent)			0.30%
Short-term deposit investment, interest earned					81	81
Short-term deposit investment, amount of EPA letter secured by restricted deposit investment			$ 18,000
Number of EPA letters secured (in Integer) | $ / shares			2
Number of wells covered under EPA Letter Certificate of Deposit | $ / shares			2
Certificate of Deposit Four [Member]
Restricted Cash and Cash Equivalents Items [Line Items]
Deposit investment term (in Duration)		36 months
Payment to invest in each certificate of deposit to secure a letter to the US EPA for one of the Company's wells		$ 68,000
Deposit investment, maturity date (in Date)		Apr. 20, 2018
Deposit investment, interest rate (in Percent)		0.60%
Short-term deposit investment, interest earned					$ 410	$ 102
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

OTHER RECEIVABLES - RELATED P41

OTHER RECEIVABLES - RELATED PARTIES (Narrative) (Details) - USD ($)	Sep. 30, 2016	Sep. 30, 2015
OTHER RECEIVABLES - RELATED PARTIES [Abstract]
Other receivable – related parties		$ 433,459

OTHER RECEIVABLES - RELATED P42

OTHER RECEIVABLES - RELATED PARTIES (Schedule of Related Party Receivables) (Details) - USD ($)	Sep. 30, 2016	Sep. 30, 2015
Related Party Transaction [Line Items]
Other receivable – related parties		$ 433,459
Aton Select Funds Limited [Member]
Related Party Transaction [Line Items]
Other receivable – related parties		96,324
Knightwall [Member]
Related Party Transaction [Line Items]
Other receivable – related parties		$ 433,459

PROPERTY AND EQUIPMENT (Narrati

PROPERTY AND EQUIPMENT (Narrative) (Details) - USD ($)	12 Months Ended
	Sep. 30, 2016	Sep. 30, 2015
PROPERTY AND EQUIPMENT [Abstract]
Purchases of property and equipment	$ 20,427	$ 56,488
Depreciation expense recorded	$ 90,266	$ 99,824

PROPERTY AND EQUIPMENT (Schedul

PROPERTY AND EQUIPMENT (Schedule of Components of Property and Equipment) (Details) - USD ($)	Sep. 30, 2016	Sep. 30, 2015
Property, Plant, and Equipment [Line Items]
Cost	$ 716,810
Accumulated Depreciation	525,583
Net Carrying Value	191,217	$ 261,056
Computer hardware [Member]
Property, Plant, and Equipment [Line Items]
Cost	10,440
Accumulated Depreciation	9,980
Net Carrying Value	460	2,299
Exploration equipment [Member]
Property, Plant, and Equipment [Line Items]
Cost	431,074
Accumulated Depreciation	306,561
Net Carrying Value	124,513	187,832
Leasehold improvements [Member]
Property, Plant, and Equipment [Line Items]
Cost	37,527
Accumulated Depreciation	19,370
Net Carrying Value	18,157	3,011
Office furniture and equipment [Member]
Property, Plant, and Equipment [Line Items]
Cost	25,225
Accumulated Depreciation	25,225
Net Carrying Value	0	1,300
Vehicles [Member]
Property, Plant, and Equipment [Line Items]
Cost	212,544
Accumulated Depreciation	164,457
Net Carrying Value	$ 48,087	$ 66,614

OTHER ASSETS (Schedule of Compo

OTHER ASSETS (Schedule of Components of Other Assets) (Details) - USD ($)	Sep. 30, 2016	Sep. 30, 2015
OTHER ASSETS [Abstract]
US Evnironmental Protection Agency	$ 22,000	$ 22,000
Montana Board of Oil and Gas Conservative	25,000	25,000
Bureau of Land Management	50,000	50,000
Other Assets	$ 97,000	$ 97,000

OIL AND GAS INTERESTS (Narrativ

OIL AND GAS INTERESTS (Narrative) (Details) - USD ($)	12 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2014
Proven and Developed Properties, Montana [Abstract]
Oil and gas properties capitalized costs incurred	$ 537,056	$ 748,837
Impairment of oil and gas properties	242,330	898,861
Evaluated oil and gas properties, carrying value	5,994	315,859
Depletion	604,591	259,358
Project advances – related parties	2,084,621	2,243,773
Proceeds from contributions by affiliates		2,025,000	$ 1,395,000
Amount of project advances total received contributed by Knightwall Invest, Inc., a Related Party		1,575,000	1,085,000
Total project advances, re-allocated to oil and gas properties	$ 159,152	593,341	582,886
Amount of project advances total received contributed by Aton Select Funds Limited, a Related Party		$ 450,000	$ 310,000

RELATED PARTY TRANSACTIONS (Nar

RELATED PARTY TRANSACTIONS (Narrative) (Details) - USD ($)	Sep. 30, 2016	Sep. 30, 2015
Related Party Transaction [Line Items]
Project advances – related parties	$ 2,084,621	$ 2,243,773
President [Member]
Related Party Transaction [Line Items]
Backpay owed to officers	93,250	3,750
Chief Financial Officer [Member]
Related Party Transaction [Line Items]
Backpay owed to officers	8,792	11,029
Aton Select Funds Limited [Member]
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 – related parties	463,249	498,616
Knightwall [Member]
Related Party Transaction [Line Items]
Project advances – related parties	$ 1,621,372	$ 1,745,157

NOTES PAYABLE (Narrative) (Deta

NOTES PAYABLE (Narrative) (Details) - USD ($)	Nov. 01, 2014	Jun. 25, 2013	Sep. 30, 2016	Sep. 30, 2015
Debt Instrument [Line Items]
Loan from related party	$ 2,475,000
Total loan amount due - related party	14,963,861
Accrued interest included in principal balance	$ 677,836
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			$ 20,407	$ 18,860
Debt instrument, amount outstanding			15,843	$ 36,250
Principal payments for notes payable required, 2017			15,843
Principal payments for notes payable required, 2018			$ 14,963,861

COMMON STOCK (Narrative) (Detai

COMMON STOCK (Narrative) (Details) - USD ($)	Jun. 01, 2015	May 01, 2015	Nov. 01, 2014	Jul. 17, 2010	Sep. 30, 2016	Sep. 30, 2015	Apr. 24, 2007
Share Based Compensation Arrangement by Share Based Payment Award [Line Items]
Number of options granted (in Shares)						425,000
Stock options expired (in Shares)						0
Share based compensation						$ 11,261
Employee Stock Option [Member]
Share Based Compensation Arrangement by Share Based Payment Award [Line Items]
Expiration period of options granted (in Duration)	5 years	5 years	5 years
Number of options granted (in Shares)	100,000	225,000	100,000		0
Value of options granted at grant date	$ 1,738	$ 4,133	$ 3,871
Weighted average grant date fair value, stock options (in Dollars per Share)	$ .02	$ .02	$ .04
Shares issued upon the exercise of stock options (in Shares)	100,000	225,000	100,000		0	0
Stock options expired (in Shares)					0	0
Stock options forfeited (in current year) or cancelled (in prior year) (in Shares)					0	250,000
Share based compensation					$ 0	$ 11,261
Exercise price of stock options granted (in Dollars per Share)	$ .05	$ .05	$ .05
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
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
Pre-Modification [Member] | Employee Stock Option [Member]
Share Based Compensation Arrangement by Share Based Payment Award [Line Items]
Share based compensation, total shares authorized for issuance (in Shares)							5,000,000

COMMON STOCK (Schedule of Grant

COMMON STOCK (Schedule of Grant Date Fair Value Assumptions) (Details)	Jun. 01, 2015	May 01, 2015	Nov. 01, 2014
COMMON STOCK [Abstract]
Expected dividend yield (in Percent)	0.00%	0.00%	0.00%
Expected volatility (in Percent)	205.00%	206.00%	206.00%
Expected life (in years) (in Duration)	5 years	5 years	5 years
Risk-free interest rate (in Percent)	1.55%	1.50%	1.62%

COMMON STOCK (Summary of Stock

COMMON STOCK (Summary of Stock Option Activity) (Details) - USD ($)	12 Months Ended
	Sep. 30, 2016	Sep. 30, 2015
Stock Options, Roll Forward
Options outstanding (in Shares)	4,975,000	4,800,000
Weighted average excercise price, options outstanding (in Dollars per Share)	$ .05	$ .05
Granted (in Shares)		425,000
Weighted average exercise price, granted (in Dollars per Share)		$ .05
Cancelled (in Shares)		(250,000)
Weighted average exercise price, options cancelled (in Dollars per Share)		$ (.10)
Expired (in Shares)		0
Weighted average exercise price, options expired (in Dollars per Share)		$ 0
Number of Options Exercisable (in Shares)	4,975,000
Weighted Average Exercise Price, Excercisable (in Dollars per Share)	$ .05
Weighted Average Remaining Contractual Term, Exercisable (in Duration)	2 years 4 months 28 days
Aggregate Intrinsic Value, Exercisable	$ 0
Options outstanding (in Shares)	4,975,000	4,975,000
Weighted average excercise price, options outstanding (in Dollars per Share)	$ .05	$ .05

COMMON STOCK (Schedule of Stock

COMMON STOCK (Schedule of Stock Options, Valuation Assumptions) (Details)	Jun. 01, 2015	May 01, 2015	Feb. 25, 2015	Nov. 01, 2014
Share Based Compensation Arrangement by Share Based Payment Award [Line Items]
Expected dividend yield (in Percent)	0.00%	0.00%		0.00%
Expected volatility (in Percent)	205.00%	206.00%		206.00%
Expected life (in years) (in Duration)	5 years	5 years		5 years
Risk-free interest rate (in Percent)	1.55%	1.50%		1.62%
Pre - Amendment [Member]
Share Based Compensation Arrangement by Share Based Payment Award [Line Items]
Expected dividend yield (in Percent)			0.00%
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 life (in years) (in Duration)			3 years 11 months 1 day
Risk-free interest rate (in Percent)			1.20%

COMMITMENTS (Narrative) (Detail

COMMITMENTS (Narrative) (Details) - USD ($)	Jun. 01, 2016	Dec. 14, 2012	Jun. 10, 2011	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2013
Lease commitments [Abstract]
Term of lease agreement (in Duration)	36 months		62 months
Lease agreement, monthly beginning base rate	$ 2,346		$ 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			$ 3,208
Monthly base rate in last twelve months of lease	$ 2,529
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				$ 37,500	$ 37,500
Total balance owed to Ms. Eustice				9,375
June 10, 2011 [Member]
Operating Lease Agreements [Line Items]
Lease expense				64,160	59,739
June 1, 2016 [Member]
Operating Lease Agreements [Line Items]
Lease expense				$ 15,000	$ 0

COMMITMENTS (Schedule of Future

COMMITMENTS (Schedule of Future Minimum Rent Payments Due) (Details)	Sep. 30, 2016USD ($)
Lease commitments [Abstract]
2,017	$ 28,182
2,018	28,881
2,019	$ 20,230

COMMITMENTS (Schedule of of Req

COMMITMENTS (Schedule of of Required Principal Payments on Settlement) (Details)	Sep. 30, 2016USD ($)
Other commitment [Abstract]
2,017	$ 9,375

ASSET RETIREMENT OBLIGATION (Ch

ASSET RETIREMENT OBLIGATION (Changes in Asset Retirement Obligations) (Details) - USD ($)	12 Months Ended
	Sep. 30, 2016	Sep. 30, 2015
ASSET RETIREMENT OBLIGATION [Abstract]
Asset retirement obligations, beginning of period	$ 163,648	$ 149,124
Accretion	15,984	14,524
Revisions due to change in reserve estimate	344,759	0
Asset retirement obligations, end of period	$ 524,391	$ 163,648

SUPPLEMENTAL CASH FLOW AND OT57

SUPPLEMENTAL CASH FLOW AND OTHER DISCLOSURES (Supplemental Cash Flow and Other Disclosures) (Details) - USD ($)	12 Months Ended
	Sep. 30, 2016	Sep. 30, 2015
SUPPLEMENTAL CASH FLOW AND OTHER DISCLOSURES [Abstract]
Interest paid	$ 1,821	$ 2,958
Income taxes paid	0	0
Non-cash Financing and Investing Activities
Accounts payable related to oil and gas property expenditures	0	100,604
Revisions due to change in reserve estimate	(344,759)	0
Project advances re-allocated to oil and gas expenditures	$ 159,152	$ 593,341

CONCENTRATIONS (Narrative) (Det

CONCENTRATIONS (Narrative) (Details)	12 Months Ended
	Sep. 30, 2016	Sep. 30, 2015
CONCENTRATIONS [Abstract]
Number of customers in which revenues and receivables were concentrated (in Interger)	1	1

INCOME TAXES (Schedule of Non-C

INCOME TAXES (Schedule of Non-Capital Losses) (Details) - USD ($)	Sep. 30, 2016	Sep. 30, 2015
Operating Loss Carryforwards [Line Items]
Operating loss carryforward, amount	$ 20,438,428	$ 18,270,533
Tax Year 2006 [Member]
Operating Loss Carryforwards [Line Items]
Operating loss carryforward, amount	$ 16,548
Operating loss carryforward, year of expiration	2,026
Tax Year 2007 [Member]
Operating Loss Carryforwards [Line Items]
Operating loss carryforward, amount	$ 493,777
Operating loss carryforward, year of expiration	2,027
Tax Year 2008 [Member]
Operating Loss Carryforwards [Line Items]
Operating loss carryforward, amount	$ 1,199,618
Operating loss carryforward, year of expiration	2,028
Tax Year 2009 [Member]
Operating Loss Carryforwards [Line Items]
Operating loss carryforward, amount	$ 3,853,251
Operating loss carryforward, year of expiration	2,029
Tax Year 2010 [Member]
Operating Loss Carryforwards [Line Items]
Operating loss carryforward, amount	$ 3,008,921
Operating loss carryforward, year of expiration	2,030
Tax Year 2011 [Member]
Operating Loss Carryforwards [Line Items]
Operating loss carryforward, amount	$ 2,628,028
Operating loss carryforward, year of expiration	2,031
Tax Year 2012 [Member]
Operating Loss Carryforwards [Line Items]
Operating loss carryforward, amount	$ 1,636,396
Operating loss carryforward, year of expiration	2,032
Tax Year 2013 [Member]
Operating Loss Carryforwards [Line Items]
Operating loss carryforward, amount	$ 1,660,225
Operating loss carryforward, year of expiration	2,033
Tax Year 2014 [Member]
Operating Loss Carryforwards [Line Items]
Operating loss carryforward, amount	$ 1,731,437
Operating loss carryforward, year of expiration	2,034
Tax Year 2015 [Member]
Operating Loss Carryforwards [Line Items]
Operating loss carryforward, amount	$ 2,042,332
Operating loss carryforward, year of expiration	2,035
Tax Year 2016 [Member]
Operating Loss Carryforwards [Line Items]
Operating loss carryforward, amount	$ 2,167,895
Operating loss carryforward, year of expiration	2,036

INCOME TAXES (Schedule of Non60

INCOME TAXES (Schedule of Non-Capital Losses) (Details) - USD ($)	Sep. 30, 2016	Sep. 30, 2015
Deferred Income Tax Assets [Abstract]
Net losses carried forward	$ 20,438,428	$ 18,270,533
Total deferred tax assets	7,153,450	6,394,687
Valuation allowance	(7,153,450)	(6,394,687)
Net deferred income tax asset	$ 0	$ 0

SUBSEQUENT EVENT (Narrative) (D

SUBSEQUENT EVENT (Narrative) (Details)	Dec. 05, 2016USD ($)$ / shares	Dec. 02, 2016USD ($)$ / shares	Sep. 30, 2016USD ($)	Sep. 30, 2015USD ($)	Dec. 31, 2016USD ($)	Nov. 01, 2014USD ($)
Subsequent Event [Line Items]
Payment to invest in each certificate of deposit to secure a letter to the US EPA for one of the Company's wells			$ 61,720	$ 104,271
Accrued interest included in principal balance						$ 677,836
Subsequent Event [Member]
Subsequent Event [Line Items]
Payment to invest in each certificate of deposit to secure a letter to the US EPA for one of the Company's wells	$ 23,595	$ 18,108
Deposit investment, maturity date (in Date)	Nov. 22, 2017	Dec. 2, 2017
Deposit investment, interest rate (in Percent)	2.30%	0.25%
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	2
Deposit investment term (in Duration)		12 months
Number of EPA letters secured (in Integer) | $ / shares		2
Number of certificates of deposit invested in (in Integer) | $ / shares		2
Current portion of notes payable – related party					$ 16,909,573
Accrued interest included in principal balance					$ 1,945,712

SUPPLEMENTAL OIL AND GAS INFO62

SUPPLEMENTAL OIL AND GAS INFORMATION (Narrative) (Details) - $ / bbl	12 Months Ended
	Sep. 30, 2016	Sep. 30, 2015
SUPPLEMENTAL OIL AND GAS INFORMATION [Abstract]
Twelve month unweighted average of the first of the month market prices used for the standardized measure of discounted future net cash flows (in Dollars per Unit)	31.59	46.14

SUPPLEMENTAL OIL AND GAS INFO63

SUPPLEMENTAL OIL AND GAS INFORMATION (Schedule of Capitalized Costs Related to Oil and Gas Producing Activities) (Details) - USD ($)	Sep. 30, 2016	Sep. 30, 2015
Capitalized costs of oil and gas producing activities net [Abstract]
Evaluated oil and gas properties	$ 20,393,715	$ 19,856,659
Oil and gas properties evaluated, accumulated depletion and impairment	(20,387,721)	(19,540,800)
Net capitalized costs for evaluated oil and gas properties	$ 5,994	$ 315,859

SUPPLEMENTAL OIL AND GAS INFO64

SUPPLEMENTAL OIL AND GAS INFORMATION (Schedule of Costs Incurred in Oil and Gas Property Acquisition, Exploration and Development Activities) (Details) - USD ($)	12 Months Ended
	Sep. 30, 2016	Sep. 30, 2015
Costs incurred in oil and gas property, acquisition, exploration and development activities [Abstract]
Evaluated Property Acquisition Costs	$ 0	$ 0
Evaluated Exploration Cost	537,056	748,837
Oil and gas properties capitalized costs incurred	$ 537,056	$ 748,837

SUPPLEMENTAL OIL AND GAS INFO65

SUPPLEMENTAL OIL AND GAS INFORMATION (Schedule of Results of Operations from Oil and Gas Producing Activities) (Details) - USD ($)	12 Months Ended
	Sep. 30, 2016	Sep. 30, 2015
Results of Operations from Oil and Gas Producing Activities [Abstract]
Revenue	$ 351,312	$ 452,686
Production costs	(533,381)	(482,798)
Depletion, depreciation and amortization	(604,591)	(259,358)
Impairment of oil and gas properties	(242,330)	(898,861)
Loss from oil and gas operations	$ (1,028,990)	$ (1,188,331)

SUPPLEMENTAL OIL AND GAS INFO66

SUPPLEMENTAL OIL AND GAS INFORMATION (Schedule of Proved Oil and Gas Reserves Quantities) (Details) - MBbls	12 Months Ended
	Sep. 30, 2016	Sep. 30, 2015
Proved Oil and Gas Reserve Quantities [Abstract]
Balance beginning of the year (in Mbbl)	211,097	33,090
Revisions of previous estimates (in Mbbl)	(199,213)	186,546
Production (in Mbbl)	(8,424)	(8,539)
Balance end of the year (in Mbbl)	3,460	211,097

SUPPLEMENTAL OIL AND GAS INFO67

SUPPLEMENTAL OIL AND GAS INFORMATION (Schedule of Standardized Measure of Discounted Future Net Cash Flow) (Details) - USD ($)	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2014
Discounted future net cash flows standardized measure [Abstract]
Future inflows	$ 109,321	$ 8,992,048
Future production and development costs	(103,877)	(2,776,956)
Future income tax recovery (expenses)	(1,905)	(2,175,282)
Future net cash flows	3,539	4,039,810
10% annual discount for estimated timing of cash flows	358	(1,557,463)
Standardized measure of discounted future net cash flows	$ 3,897	$ 2,482,347	$ 582,565

SUPPLEMENTAL OIL AND GAS INFO68

SUPPLEMENTAL OIL AND GAS INFORMATION (Schedule of Sources of Changes in Discounted Future Net Cash Flows) (Details) - USD ($)	12 Months Ended
	Sep. 30, 2016	Sep. 30, 2015
Increase (Decrease) in Standardized Measure of Discounted Future Net Cash Flow Relating to Proved Oil and Gas Reserves [Roll Forward]
Standardized measure of discounted future net cash flows at the beginning of the year	$ 2,482,347	$ 582,565
Accretion of discount	381,900	89,625
Development costs incurred	192,297	748,837
Changes in estimated development costs	(146,068)	(712,261)
Revision of previous quantity estimates	(764,517)	3,400,316
Net change in prices and production costs	(3,739,681)	(714,887)
Net change in income taxes	1,334,550	(1,022,960)
Sales of oil and gas produced, net of production costs	263,069	111,112
Standardized measure of discounted future net cash flows at the end of the year	$ 3,897	$ 2,482,347