Document_And_Entity_Informatio
Document And Entity Information (USD $) | 12 Months Ended | ||
Oct. 31, 2014 | Jan. 20, 2015 | Apr. 30, 2014 | |
Document Information [Line Items] | |||
Entity Registrant Name | BRINX RESOURCES LTD | ||
Entity Central Index Key | 1212641 | ||
Current Fiscal Year End Date | -21 | ||
Entity Filer Category | Smaller Reporting Company | ||
Trading Symbol | BNXR | ||
Entity Common Stock, Shares Outstanding | 24,629,832 | ||
Document Type | 10-K | ||
Amendment Flag | FALSE | ||
Document Period End Date | 31-Oct-14 | ||
Document Fiscal Period Focus | FY | ||
Document Fiscal Year Focus | 2014 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | Yes | ||
Entity Current Reporting Status | Yes | ||
Entity Public Float | $347,452.76 |
BALANCE_SHEETS
BALANCE SHEETS (USD $) | Oct. 31, 2014 | Oct. 31, 2013 |
Current assets | ||
Cash and cash equivalents | $109,953 | $60,812 |
Investment - Certificate of deposit | 0 | 200,000 |
Marketable securities | 37,076 | 44,000 |
Accounts receivable | 8,579 | 35,760 |
Prepaid expenses and deposit | 23,506 | 41,871 |
Total current assets | 179,114 | 382,443 |
Undeveloped mineral interests, at cost | 0 | 3,101 |
Oil and gas interests, full cost method of accounting, net of accumulated depletion | 951,502 | 1,169,052 |
Property, plant and equipment(net) | 967 | 1,741 |
Total assets | 1,131,583 | 1,556,337 |
Current liabilities | ||
Accounts payable and accrued liabilities | 54,912 | 63,265 |
Total current liabilities | 54,912 | 63,265 |
Asset retirement obligations | 34,754 | 31,636 |
Total liabilities | 89,666 | 94,901 |
Stockholders' equity | ||
Common stock - $0.001 par value; authorized - 100,000,000 shares Issued and outstanding - 24,629,832 shares | 24,630 | 24,630 |
Capital in excess of par value | 2,868,057 | 2,868,057 |
Accumulative other comprehensive loss | -173,020 | -228,000 |
Retained earnings | -1,678,250 | -1,203,751 |
Total stockholders' equity | 1,041,917 | 1,461,436 |
Series A Preferred Stock [Member] | ||
Stockholders' equity | ||
Preferred stock - $0.001 par value; authorized - 25,000,000 shares Series A Preferred stock - $0.001 par value; authorized - 1,000,000 shares Issued and outstanding - 500,001 shares | $500 | $500 |
BALANCE_SHEETS_Parenthetical
BALANCE SHEETS [Parenthetical] (USD $) | Oct. 31, 2014 | Oct. 31, 2013 |
Preferred stock, par value (in dollars per share) | $0.00 | $0.00 |
Preferred stock, shares authorized | 25,000,000 | 25,000,000 |
Common stock, par value (in dollars per share) | $0.00 | $0.00 |
Common stock, shares authorized | 100,000,000 | 100,000,000 |
Common stock, shares issued | 24,629,832 | 24,629,832 |
Common stock, shares outstanding | 24,629,832 | 24,629,832 |
Series A Preferred Stock [Member] | ||
Preferred stock, par value (in dollars per share) | $0.00 | $0.00 |
Preferred stock, shares authorized | 1,000,000 | 1,000,000 |
Preferred stock, shares issued | 500,001 | 500,001 |
Preferred stock, shares outstanding | 500,001 | 500,001 |
STATEMENTS_OF_COMPREHENSIVE_IN
STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (USD $) | 12 Months Ended | |
Oct. 31, 2014 | Oct. 31, 2013 | |
REVENUES | ||
Natural gas and oil sales | $140,709 | $235,170 |
DIRECT COSTS | ||
Production costs | 43,489 | 39,129 |
Depreciation, depletion and accretion | 61,875 | 154,914 |
General and administrative | 469,764 | 642,568 |
Writedown of natural gas and oil properties | 26,517 | 425,015 |
Writeoff of undeveloped minerial interests | 3,101 | 0 |
Total Expenses | -604,746 | -1,261,626 |
OPERATING (LOSS) | -464,037 | -1,026,456 |
OTHER INCOME | ||
Interest income | 202 | 756 |
Realized (loss) on sale of marketable security | -10,664 | 0 |
NET(LOSS) | -474,499 | -1,025,700 |
OTHER COMPREHENSIVE INCOME/(LOSS), NET OF TAX | ||
Unrealized gain (loss) on held for sale of marketable security | 54,980 | -52,000 |
COMPREHENSIVE (LOSS) FOR THE YEARS | ($419,519) | ($1,077,700) |
Net Income/(Loss) Per Common Share | ||
- Basic (in dollars per share) | ($0.02) | ($0.04) |
- Diluted (in dollars per share) | ($0.02) | ($0.04) |
Weighted average number of common shares outstanding | ||
- Basic (in shares) | 24,629,832 | 24,629,832 |
- Diluted (in shares) | 24,629,832 | 24,629,832 |
STATEMENT_OF_STOCKHOLDERS_EQUI
STATEMENT OF STOCKHOLDERS' EQUITY (USD $) | Total | Preferred Stock [Member] | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive Income (Loss) [Member] |
BALANCES at Oct. 31, 2011 | $3,415,624 | $0 | $24,630 | $2,868,057 | $586,937 | ($64,000) |
BALANCES (in shares) at Oct. 31, 2011 | 0 | 24,629,832 | ||||
Comprehensive income / (loss) | ||||||
Shares issued to a director | 500 | 500 | 0 | 0 | 0 | 0 |
Shares issued to a director (in shares) | 500,001 | 0 | ||||
Unrealized (loss) on held for sale marketable security | -112,000 | 0 | 0 | 0 | 0 | -112,000 |
Net (loss) | -764,988 | 0 | 0 | 0 | -764,988 | 0 |
BALANCES at Oct. 31, 2012 | 2,539,136 | 500 | 24,630 | 2,868,057 | -178,051 | -176,000 |
BALANCES, in (shares) at Oct. 31, 2012 | 500,001 | 24,629,832 | ||||
Comprehensive income / (loss) | ||||||
Unrealized (loss) on held for sale marketable security | -52,000 | 0 | 0 | 0 | 0 | -52,000 |
Net (loss) | -1,025,700 | 0 | 0 | 0 | -1,025,700 | 0 |
BALANCES at Oct. 31, 2013 | 1,461,436 | 500 | 24,630 | 2,868,057 | -1,203,751 | -228,000 |
BALANCES, in (shares) at Oct. 31, 2013 | 500,001 | 24,629,832 | ||||
Comprehensive income / (loss) | ||||||
Unrealized (loss) on held for sale marketable security | 54,980 | 0 | 0 | 0 | 0 | 54,980 |
Net (loss) | -474,499 | 0 | 0 | 0 | -474,499 | 0 |
BALANCES at Oct. 31, 2014 | $1,041,917 | $500 | $24,630 | $2,868,057 | ($1,678,250) | ($173,020) |
BALANCES, in (shares) at Oct. 31, 2014 | 500,001 | 24,629,832 |
STATEMENT_OF_CASH_FLOWS
STATEMENT OF CASH FLOWS (USD $) | 12 Months Ended | |
Oct. 31, 2014 | Oct. 31, 2013 | |
CASH FLOWS PROVIDED BY (USED IN) OPERATING ACTIVITIES | ||
Net (loss) | ($474,499) | ($1,025,700) |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation, depletion and accretion | 61,875 | 154,914 |
Realized loss on sale of marketable security | 10,664 | 0 |
Writedown of natural gas and oil properties | 26,517 | 425,015 |
Writeoff of undeveloped minerial interests | 3,101 | 0 |
Changes in working capital: | ||
Decrease in accounts receivable | 27,181 | 2,725 |
Decrease in prepaid expenses and deposit | 18,365 | 2,723 |
Increase / (Decrease) in accounts payable and accrued liabilities | -8,354 | 56,933 |
Net cash (used in) operating activities | -335,150 | -383,390 |
CASH FLOWS PROVIDED BY (USED IN) INVESTING ACTIVITIES | ||
Purchase of equipment | 0 | -2,322 |
Redemption of Certificate of deposit | 200,000 | 200,000 |
Sale of marketable security | 52,923 | 0 |
Sale proceeds of natural gas and oil working interests | 275,148 | 0 |
Payments on oil and gas interests | -143,780 | -293,988 |
Net cash provided by / (used in) investing activities | 384,291 | -96,310 |
CASH FLOWS PROVIDED BY (USED IN) FINANCING ACTIVITIES | ||
Net cash provided by /(used in) financing activities | 0 | 0 |
Net increase / (decrease) in cash | 49,141 | -479,700 |
Cash and cash equivalents, beginning of the years | 60,812 | 540,512 |
Cash and cash equivalents, end of the years | 109,953 | 60,812 |
SUPPLEMENTAL CASH FLOW INFORMATION | ||
Cash paid for interest | 0 | 0 |
Cash paid for taxes | $0 | $0 |
ORGANIZATION_AND_SUMMARY_OF_SI
ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended | |||||||
Oct. 31, 2014 | ||||||||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||||||||
Organization, Consolidation and Presentation of Financial Statements Disclosure and Significant Accounting Policies [Text Block] | 1. ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |||||||
Brinx Resources Ltd. (the "Company") was incorporated under the laws of the State of Nevada on December 23, 1998, and issued its initial common stock in February 2001. The Company holds oil and gas interests in Oklahoma and California. In 2006, the Company commenced oil and gas production and started earning revenues. | ||||||||
USE OF ESTIMATES | ||||||||
The preparation of financial statement in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. | ||||||||
The oil and gas industry is subject, by its nature, to environmental hazards and clean-up costs. At this time, management knows of no substantial costs from environmental accidents or events for which the Company may be currently liable. In addition, the Company's oil and gas business makes it vulnerable to changes in prices of crude oil and natural gas. Such prices have been volatile in the past and can be expected to be volatile in the future. By definition, proved reserves are based on current oil and gas prices and estimated reserves. Price declines reduce the estimated quantity of proved reserves and increase annual depletion expense (which is based on proved reserves). | ||||||||
OIL AND GAS INTERESTS | ||||||||
The Company utilizes the full cost method of accounting for oil and gas activities. Under this method, subject to a limitation based on estimated value, all costs associated with property acquisition, exploration and development, including costs of unsuccessful exploration; are capitalized within a cost center. No gain or loss is recognized upon the sale or abandonment of undeveloped or producing oil and gas interests unless the sale represents a significant portion of oil and gas interests and the gain significantly alters the relationship between capitalized costs and proved oil and gas reserves of the cost center. Depreciation, depletion and amortization of oil and gas interests are computed on the units of production method based on proved reserves. Amortizable costs include estimates of future development costs of proved undeveloped reserves. | ||||||||
Capitalized costs of oil and gas interests may not exceed an amount equal to the present value, discounted at 10%, of the estimated future net cash flows from proved oil and gas reserves plus the cost, or estimated fair market value, if lower, of unproved interests. Should capitalized costs exceed this ceiling, an impairment is recognized. The present value of estimated future net cash flows is computed by applying average prices, in the preceding twelve months, of oil and gas to estimated future production of proved oil and gas reserves as of year ends, less estimated future expenditures to be incurred in developing and producing the proved reserves and assuming continuation of existing economic conditions. | ||||||||
REVENUE RECOGNITION | ||||||||
Revenue from sales of crude oil, natural gas and refined petroleum products are recorded when deliveries have occurred and legal ownership of the commodity transfers to the customers. Title transfers for crude oil, natural gas and bulk refined products generally occur at pipeline custody points or when a tanker lifting has occurred. Revenues from the production of oil and natural gas properties in which the Company shares an undivided interest with other producers are recognized based on the actual volumes sold by the Company during the period. Gas imbalances occur when the Company's actual sales differ from its entitlement under existing working interests. The Company records a liability for gas imbalances when it has sold more than its working interest of gas production and the estimated remaining reserves make it doubtful that the partners can recoup their share of production from the field. At October 31, 2014 and 2013, the Company had no overproduced imbalances. | ||||||||
ACCOUNTS RECEIVABLE | ||||||||
Accounts receivable are carried at net receivable amounts less an estimate for doubtful accounts. Management determines the allowance for doubtful accounts by regularly evaluating individual customer receivables and considering a customer's financial condition, credit history, and current economic conditions. Trade receivables are written off when deemed uncollectible. Recoveries of receivables previously written off are recorded when received. | ||||||||
OTHER EQUIPMENT | ||||||||
Computer equipment is stated at cost. Provision for depreciation on computer equipment is calculated using the straight-line method over the estimated useful life of three years. | ||||||||
IMPAIRMENT OF LONG-LIVED ASSETS | ||||||||
The Company has adopted FASB ASC 360 "Accounting for the Impairment or Disposal of Long-Lived Assets", which requires that long-lived assets to be held and used be reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Oil and gas interests accounted for under the full cost method are subject to a ceiling test, described above, and are excluded from this requirement. | ||||||||
ASSET RETIREMENT OBLIGATIONS | ||||||||
The Company follows FASB ASC 410-20 "Accounting for Asset Retirement Obligations", which addresses financial accounting and reporting for obligations associated with the retirement of tangible long-lived assets and the associated asset retirement costs. | ||||||||
Over time, accretion of the liability is recognized as an operating expense and the capitalized cost is depreciated over the expected useful life of the related asset. The Company's asset retirement obligations are related to the plugging, dismantlement, removal, site reclamation and similar activities of its oil and gas exploration activities. | ||||||||
INCOME / (LOSS) PER SHARE | ||||||||
Basic income/(loss) per share is computed based on the weighted average number of common shares outstanding during each year. The computation of diluted earnings per share assumes the conversion, exercise or contingent issuance of securities only when such conversion, exercise or issuance would have the dilutive effect on income/(loss) per share. The dilutive effect of outstanding options was nil as of October 31, 2014 and 2013. | ||||||||
The table below presents the computation of basic and diluted earnings per share for the years ended October 31, 2014 and 2013: | ||||||||
October 31, 2014 | October 31, 2013 | |||||||
Basic earnings per share computation: | ||||||||
(Loss) from continuing operations | $ | -474,499 | $ | -1,025,700 | ||||
Basic shares outstanding | 24,629,832 | 24,629,832 | ||||||
Basic earnings per share | $ | -0.02 | $ | -0.04 | ||||
INCOME TAXES | ||||||||
Deferred tax assets and liabilities are recognized for temporary differences between the financial reporting and tax bases of the firm's assets and liabilities. Valuation allowances are established to reduce deferred tax assets to the amount that more likely than not will be realized. The firm's tax assets and liabilities, if any, are presented as a component of "Other assets" and "Other liabilities and accrued expenses," respectively, in the balance sheet. Tax provisions are computed in accordance with FASB ASC 740, "Accounting for Income Taxes". | ||||||||
The Company applies the provisions of FASB ASC 740-10 "Accounting for Uncertainty in Income Taxes — an Interpretation". A tax position can be recognized in the financial statements only when it is more likely than not that the position will be sustained upon examination by the relevant taxing authority based on the technical merits of the position. A position that meets this standard is measured at the largest amount of benefit that will more likely than not be realized upon settlement. A liability is established for differences between positions taken in a tax return and amounts recognized in the financial statements. FASB ASC 740-10 also provides guidance on de-recognition, classification, interim period accounting and accounting for interest and penalties. | ||||||||
CASH EQUIVALENTS | ||||||||
For purposes of reporting cash flows, the Company considers as cash equivalents all highly liquid investments with a maturity of three months or less at the time of purchase. On occasion, the Company may have cash balances in excess of federally insured amounts. | ||||||||
MARKETABLE SECURITIES AND INVESTMENTS | ||||||||
All equity Investments are classified as available for sale and any subsequent changes in the fair value are recorded in comprehensive income. If in the opinion of management there has been a decline in the value of the investment below the carrying value that is considered to be other than temporary, the valuation adjustment is recorded in net earnings in the period of determination. The fair value of the investments is based on the quoted market price on the closing date of the period. | ||||||||
FAIR VALUE | ||||||||
The Company adopted FASB ASC 820-10-50, "Fair Value Measurements". This guidance defines fair value, establishes a three-level valuation hierarchy for disclosures of fair value measurement and enhances disclosure requirements for fair value measures. The three levels are defined as follows: | ||||||||
Level 1 inputs to the valuation methodology are quoted prices (unadjusted) for identical assets or liabilities in active markets. | ||||||||
Level 2 inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, and inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the financial instrument. | ||||||||
Level 3 inputs to valuation methodology are unobservable and significant to the fair measurement. | ||||||||
The carrying amounts reported in the balance sheets for the cash and cash equivalents, investments in certificates of deposits, receivables and current liabilities each qualify as financial instruments and are a reasonable estimate of fair value because of the short period of time between the origination of such instruments and their expected realization and their current market rate of interest. Marketable securities are valued using Level 1 inputs. | ||||||||
CONCENTRATION OF CREDIT RISK | ||||||||
Financial instruments which potentially subject the Company to concentrations of credit risk consist of cash and cash equivalents, investments in certificates of deposit and accounts receivable. The Company maintains cash at one financial institution. The Company periodically evaluates the credit worthiness of financial institutions, and maintains cash accounts only in large high quality financial institutions, thereby minimizing exposure for deposits in excess of federally insured amounts. The Company believes credit risk associated with cash and cash equivalents to be minimal. | ||||||||
The Company has recorded trade accounts receivable from the business operations. Management periodically evaluates the collectability of the trade receivables and believes that the Company's receivables are fully collectable and that the risk of loss is minimal. | ||||||||
RECENT ACCOUNTING PRONOUNCEMENTS | ||||||||
In May 2014, FASB issued ASU 2014-09, Revenue from Contracts with Customers, which eliminates the transaction- and industry-specific revenue recognition guidance under current GAAP and replaces it with a principle-based approach for determining revenue recognition. Public entities are required to adopt the revenue recognition standard for reporting periods beginning after December 15, 2016, and interim and annual reporting periods thereafter. The Company is currently evaluating the impact this ASU will have on the Company's financial statements. | ||||||||
FASB issued ASU 2014-15 on August 27, 2014, providing guidance on determining when and how to disclose going-concern uncertainties in the financial statements. The new standard requires management to perform interim and annual assessments of an entity's ability to continue as a going concern within one year of the date the financial statements are issued. An entity must provide certain disclosures if "conditions or events raise substantial doubt about the entity's ability to continue as a going concern." The ASU applies to all entities and is effective for annual periods ending after December 15, 2016, and interim periods thereafter, with early adoption permitted. The Company currently discloses a going-concern in Note 1 however the Company will evaluate the impact this ASU will have on the financial statements. | ||||||||
GOING CONCERN | ||||||||
The accompanying financial statements have been prepared assuming that the Company will continue as a going concern. | ||||||||
As shown in the accompanying financial statements, the Company has incurred a net loss of $1,678,250 since inception. To achieve profitable operations, the Company requires additional capital for obtaining producing oil and gas properties through either the purchase of producing wells or successful exploration activity. Management believes that sufficient funding will be available to meet its business objectives including anticipated cash needs for working capital and is currently evaluating several financing options. However, there can be no assurance that the Company will be able to obtain sufficient funds to continue the development of its properties and, if successful, to commence the sale of its projects under development. As a result of the foregoing, there exists substantial doubt about the Company's ability to continue as a going concern. These financial statements do not include any adjustments that might result from the outcome of this uncertainty. | ||||||||
MARKETABLE_SECURITIES
MARKETABLE SECURITIES | 12 Months Ended |
Oct. 31, 2014 | |
Marketable Securities [Abstract] | |
Marketable Securities [Text Block] | 2. MARKETABLE SECURITIES |
In August 2011, the Company received 800,000 common shares in Lexaria Corp. on the sale of its oil and natural gas interests in Mississippi, with a value of $0.34 per share. In May and July 2014, the Company sold 182,071 shares generating $52,923 in proceeds and realizing a loss of $10,664. This loss equals the total reclassification adjustment of $10,664 from unrealized to realized loss. There were 100,000 shares sold at $0.32, 32,071 shares sold at $0.325 and 50,000 shares sold at $0.21. The value of the shares at October 31, 2014 was $0.06 per share, as compared to $0.055 per share as at October 31, 2013, giving rise to an unrealized gain of $54,980 for the year ended October 31, 2014 (2013 – unrealized loss of $52,000). The Company evaluated the prospects of Lexaria in relation to the severity and duration of the impairment. Based on the evaluation and the Company's ability and intent to hold the shares for a reasonable period of time sufficient for a recovery, the Company does not consider the shares to be other-than-temporarily impaired at October 31, 2014. | |
ACCOUNTS_RECEIVABLE
ACCOUNTS RECEIVABLE | 12 Months Ended | |||||||
Oct. 31, 2014 | ||||||||
Receivables [Abstract] | ||||||||
Loans, Notes, Trade and Other Receivables Disclosure [Text Block] | 3. ACCOUNTS RECEIVABLE | |||||||
Accounts receivable consists of revenues receivable, interest receivable and other receivable. The revenue receivable are from the operators of the oil and gas projects for the sale of oil and gas by the operators on the Company's behalf and are carried at net receivable amounts less an estimate for doubtful accounts. Management considers all accounts receivable to be fully collectible at October 31, 2014 and October 31, 2013. Accordingly, no allowance for doubtful accounts or bad debt expense has been recorded. | ||||||||
October 31, 2014 | October 31, 2013 | |||||||
Accounts receivable | $ | 8,579 | $ | 35,760 | ||||
Less: allowance for doubtful account | - | - | ||||||
$ | 8,579 | $ | 35,760 | |||||
OIL_AND_GAS_INTERESTS
OIL AND GAS INTERESTS | 12 Months Ended | |||||||
Oct. 31, 2014 | ||||||||
Oil and Gas Property [Abstract] | ||||||||
Oil and Gas Interests [Text Block] | 4. OIL AND GAS INTERESTS | |||||||
The Company holds the following oil and natural gas interests: | ||||||||
October 31, 2014 | October 31, 2013 | |||||||
2008-3 Drilling Program, Oklahoma | $ | 312,794 | $ | 309,152 | ||||
2009-2 Drilling Program, Oklahoma | 114,420 | 114,420 | ||||||
2009-3 Drilling Program, Oklahoma | 353,399 | 349,320 | ||||||
2009-4 Drilling Program, Oklahoma | 190,182 | 190,182 | ||||||
2010-1 Drilling Program, Oklahoma | -47,813 | 270,665 | ||||||
Washita Bend 3D, Oklahoma | 926,598 | 793,551 | ||||||
Double T Ranch #1 SWDW, Oklahoma | 51,816 | 50,812 | ||||||
Kings City Prospect, California | 406,766 | 406,766 | ||||||
South Wayne Prospect, Oklahoma | 61,085 | 61,085 | ||||||
PP F-12-2, PP F-12-3, PP F-12-4 and PP F-52, Mississippi | -222,123 | -222,123 | ||||||
Three Sands Project, Oklahoma | 555,715 | 555,715 | ||||||
Asset retirement cost | 2,689 | 3,367 | ||||||
Less: Accumulated depletion and impairment | -1,754,026 | -1,713,860 | ||||||
$ | 951,502 | $ | 1,169,052 | |||||
2008-3 Drilling Program, Oklahoma | ||||||||
On January 12, 2009, the Company acquired a 5% working interest in the Ranken Energy Corporation's 2008-3 Drilling Program. The Company agreed to participate in the drilling operations to casing point in the initial test well of each prospect. The Before Casing Point Interest ("BCP") is 6.25% and the After Casing Point Interest ("ACP") is 5.00%. At October 31, 2014, the total cost of the 2008-3 Drilling Program was $312,794. The interests are located in Garvin County, Oklahoma. | ||||||||
2009-2 Drilling Program, Oklahoma | ||||||||
On June 19, 2009, the Company acquired a 5% working interest in the Ranken Energy Corporation's 2009-2 Drilling Program. The Company agreed to participate in the drilling operations to casing point in the initial test well of each prospect. The BCP Interest is 6.25% and the ACP Interest is 5.00%. At October 31, 2014, the total cost of the 2009-2 Drilling Program was $114,420. The interests are located in Garvin County, Oklahoma. | ||||||||
2009-3 Drilling Program, Oklahoma | ||||||||
On August 12, 2009, the Company acquired a 5.00% working interest in Ranken Energy Corporation's 2009-3 Drilling Program. The Company agreed to participate in the drilling operations to casing point in the initial test well of each prospect. The BCP Interest is 6.25% and the ACP is 5.00%. At October 31, 2014, the total cost of the 2009-3 Drilling Program was $353,399. The interests are located in Garvin County, Oklahoma. | ||||||||
2009-4 Drilling Program, Oklahoma | ||||||||
On December 19, 2009, the Company acquired a 5.00% working interest in Ranken Energy Corporation's 2009-4 Drilling Program. The Company agreed to participate in the drilling operations to casing point in the initial test well of each prospect. The BCP Interest is 6.25% and the ACP Interest is 5.00%. At October 31, 2014, the total cost of the 2009-4 Drilling Program was $190,182. The interests are located in Garvin County, Oklahoma. | ||||||||
2010-1 Drilling Program, Oklahoma | ||||||||
On April 23, 2010, the Company acquired a 5.00% working interest in Ranken Energy Corporation's 2010-1 Drilling Program. The Company agreed to participate in the drilling operations to casing point in the initial test well of each prospect. The BCP Interest is 6.25% and the ACP Interest is 5.00%. | ||||||||
On January 1, 2014, the Company sold all its working interest in Miss Jenny#1-8 from the 2010-1 drilling program for $275,147 less sales commission as part of the sale of 100% of the well by its operator. | ||||||||
Washita Bend 3D Exploration Project, Oklahoma | ||||||||
On March 1, 2010, the Company acquired a 5.00% working interest in Ranken Energy Corporation's Washita Bend 3D Exploration Project. The BCP Interest is 5.625% and the ACP Interest is 5.00% on the first eight wells and then 5% before and after casing point on succeeding wells. At October 31, 2014, the total costs including seismic costs, was $926,598. | ||||||||
As a result of seismic evaluation and analysis, eight initial prospects at the Washita Bend Project have been identified. Lucretia #1-14 was the first well drilled on May 14, 2013. This well was classified as a dry hole on May 27, 2013. On August 1, 2013, Karges #1-35 was also classified as a dry hole. On September 4, 2013, Carol #1-22 was plugged and abandoned. The costs of $148,391 associated therewith have been moved to proved properties. During November 2013, Bunch #1-17 started production, the costs of $76,890 have been moved to proved properties. On March 20, 2014, Hamilton 1-5 was plugged and abandoned. The costs of $44,793 associated therewith have been moved to proved properties. | ||||||||
Double T Ranch#1 SWDW, Oklahoma | ||||||||
On July 17, 2012, the Company acquired a 3.00% working interest in the drilling, completion and operations of the Double T Ranch#1 SWDW located in Garvin County from Ranken Energy Corporation. At October 31, 2014, the cost of the Double T Ranch#1 SWDW was $51,816 and was moved to the proved property pool. | ||||||||
Kings City Prospect, California | ||||||||
A Farmout agreement was made effective on May 25, 2009 between the Company and Sunset Exploration, Inc., to explore for oil and natural gas on 10,000 acres located in west central California. The Company paid $100,000 (50% pro rata share of $200,000) to earn a 20% working interest in project by funding a maximum of 50% of a $200,000 geophysical survey composed of gravity and seismic surveys and carry Sunset exploration for 33.33% of dry hole cost of the first well. Completions and drilling of this first well and completion of subsequent wells on the 10,000 acres will be proportionate to each party's working interest. On April 15, 2013, the Company elected to plug and abandon this well. All costs associated with this well have been moved to the proved property pool for depletion. The total cost of the King City prospect as at October 31, 2014 was $406,766. | ||||||||
South Wayne Prospect, Oklahoma | ||||||||
On March 14, 2010, the Company acquired a 5.00% working interest in McPherson#1-1 well for a payment for leasehold, prospect and geophysical fees of $5,000, and dry hole costs of $32,370. The Company agreed to participate in the drilling operations to casing point in the initial test well of each prospect. The BCP Interest is 6.25% and the ACP Interest is 5.00%. The interests are located in McClain County, Oklahoma. The total cost of the South Wayne prospect as at October 31, 2014 was $61,085. | ||||||||
Impairment | ||||||||
Under the full cost method, the Company is subject to a ceiling test. This ceiling test determines whether there is an impairment to the proved properties. The impairment amount represents the excess of capitalized costs over the present value, discounted at 10%, of the estimated future net cash flows from the proven oil and gas reserves plus the cost, or estimated fair market value if lower, of unproved interests. There was $26,517 and $425,015 impairment cost for the years ended October 31, 2014 and 2013, respectively. | ||||||||
Depletion | ||||||||
Under the full cost method, depletion is computed on the units of production method based on proved reserves. Depletion expense recognized was $57,305 and $151,026 for the years ended October 31, 2014 and 2013, respectively. | ||||||||
Capitalized Costs | ||||||||
October 31, 2014 | October 31, 2013 | |||||||
Proved properties | $ | 2,061,127 | $ | 2,186,940 | ||||
Unproved properties | 644,401 | 695,972 | ||||||
Total Proved and Unproved properties | 2,705,528 | 2,882,912 | ||||||
Accumulated depletion expense | -921,402 | -885,724 | ||||||
Impairment | -832,624 | -828,136 | ||||||
Net capitalized cost | $ | 951,502 | $ | 1,169,052 | ||||
Results of Operations | ||||||||
Results of operations for oil and gas producing activities during the year ended are as follows: | ||||||||
October 31, 2014 | October 31, 2013 | |||||||
Revenues | $ | 140,709 | $ | 235,170 | ||||
Production costs | -43,489 | -39,129 | ||||||
Depletion and accretion | -61,101 | -154,914 | ||||||
Results of operations (excluding corporate overhead) | $ | 36,119 | $ | 41,127 | ||||
ASSET_RETIREMENT_OBLIGATIONS
ASSET RETIREMENT OBLIGATIONS | 12 Months Ended | |||||||
Oct. 31, 2014 | ||||||||
Asset Retirement Obligation Disclosure [Abstract] | ||||||||
Asset Retirement Obligation Disclosure [Text Block] | 5. ASSET RETIREMENT OBLIGATIONS | |||||||
The Company follows FASB ASC 410-20 "Accounting for Asset Retirement Obligations" which addresses financial accounting and reporting for obligations associated with the retirement of tangible long-lived assets and the associated asset retirement costs. This policy requires recognition of the present value of obligations associated with the retirement of tangible long-lived assets in the period in which it is incurred. As of October 31, 2014 and October 31, 2013, the Company recognized the future cost to plug and abandon the gas wells over the estimated useful lives of the wells in accordance with "Accounting for Asset Retirement Obligations". The liability for the fair value of an asset retirement obligation with a corresponding increase in the carrying value of the related long-lived asset is recorded at the time a well is completed and ready for production. The Company amortizes the amount added to the oil and gas properties and recognizes accretion expense in connection with the discounted liability over the remaining life of the respective well. The estimated liability is based on historical experience in plugging and abandoning wells, estimated useful lives based on engineering studies, external estimates as to the cost to plug and abandon wells in the future and federal and state regulatory requirements. The liability is a discounted liability using a credit-adjusted risk-free rate of 12%. Revisions to the liability could occur due to changes in plugging and abandonment costs, well useful lives or if federal or state regulators enact new guidance on the plugging and abandonment of wells. | ||||||||
The Company amortizes the amount added to oil and gas properties and recognizes accretion expense in connection with the discounted liability over the remaining useful lives of the respective wells. | ||||||||
The information below reflects the change in the asset retirement obligations during the years ended October 31, 2014 and 2013: | ||||||||
October 31, 2014 | October 31, 2013 | |||||||
Balance, beginning of the years | $ | 31,636 | $ | 27,554 | ||||
Liabilities assumed | 277 | - | ||||||
Revisions | -905 | 774 | ||||||
Accretion expense | 3,796 | 3,308 | ||||||
Balance, end of the years | $ | 34,754 | $ | 31,636 | ||||
The reclamation obligation relates to the Ard#1-36, Bagwell#1-20, Bagwell#2-20, Miss Gracie#1-18, Joe Murray Farm#1-18, Gehrke#1-24, Jack#1-13, Jackson 1-18, Double T Ranch and Bunch#1-17 at Oklahoma Properties, and McPherson#1-1 well at South Wayne Prospect. The present value of the reclamation liability may be subject to change based on management's current estimates, changes in remediation technology or changes in applicable laws and regulations. Such changes will be recorded in the accounts of the Company as they occur. | ||||||||
CAPITAL_STOCK
CAPITAL STOCK | 12 Months Ended | |
Oct. 31, 2014 | ||
Stockholders' Equity Note [Abstract] | ||
Stockholders' Equity Note Disclosure [Text Block] | 6. CAPITAL STOCK | |
PREFERRED STOCK | ||
The Company has authorized 25,000,000 shares of preferred stock. On February 10, 2012, the Company issued 500,001 Series A preferred stock at par value. The rights attached to these Series A preferred stock include: | ||
⋅ | The holders of the Series A preferred stock can redeem their stock at a predetermined redemption price. | |
⋅ | The holders of the Series A Preferred Stock shall be entitled to elect one director of the Company in connection with each annual election of directors who shall be the designated "Series A Director". With respect to any other matter submitted for a vote (or a written consent in lieu thereof) by the stockholders of the Company (except as to which the Series A Preferred Stock will be entitled to vote separately as a class), the holders of Series A Preferred Stock and the holders of the common stock, $0.001 par value of the Company ("Common Stock") shall vote together as a single class and not as separate series. | |
⋅ | The Company shall not without first obtaining the approval (by vote or written consent, as provided by law) of the holders of a majority of the Series A Preferred Stock do any of the following: | |
(a) amend, alter, or repeal any provision of the Articles of Incorporation or the Bylaws of the Company (including any filing of a Certificate of Designation) that alters or changes the voting powers, preferences, or other special rights or privileges, or restrictions of the Series A Preferred Stock; | ||
(b) increase or decrease the total number of authorized shares of Series A Preferred Stock; | ||
(c) authorize or issue, or obligate itself to issue, any other equity security, including any other security convertible into or exercisable for any other equity security, which has a preference over the Series A Preferred Stock with respect to voting, or authorize any increase in the authorized or designated number of any such security; | ||
(d) purchase or otherwise acquire any share or shares of Preferred Stock or Common Stock (or pay into or set aside for a sinking fund for such purpose); provided, however, that this restriction shall not apply to the repurchase of shares of Common Stock from employees, officers, directors, consultants or other persons performing services for the Company or any subsidiary pursuant to agreements under which the Company has the option to repurchase such shares at cost or at cost upon the occurrence of certain events, such as the termination of employment; | ||
(e) authorize the voluntary or involuntary dissolution, liquidation or winding-up of the Company; | ||
(f) pay any dividend or other distribution other than (i) in the case of the Common Stock, a dividend or distribution payable solely in Common Stock and (ii) any dividend or distribution the fair market value of which does not exceed 10% of the Company's aggregate net profits for the fiscal year of the Company in which such dividend is declared and the immediately preceding fiscal year; | ||
(g) cause the Company to enter into or engage, directly or indirectly, in any material respect any line of business other than the other than the business anticipated to be conducted by the Company as of the date of the first issuance of the Series A Preferred Stock; or | ||
(h) enter into any transaction with any officer, director or stockholder of the Company or any "affiliate" or "associate" (as such terms are defined in the regulations promulgated by the Securities and Exchange Commission under the Securities Exchange Act of 1940) of any such person or entity, other than normal employment arrangements and benefit programs on reasonable terms and other than any transaction (or series of related transactions) involving not more than $100,000 in the aggregate that has been approved by a majority of the Board of Directors (excluding any director who is interested in such transaction, either directly or through one of his affiliates or associates) after full disclosure of the terms thereof to the Board of Directors and after the determination by such majority of the Board of Directors. | ||
RELATED_PARTY_TRANSACTIONS
RELATED PARTY TRANSACTIONS | 12 Months Ended | ||
Oct. 31, 2014 | |||
Related Party Transactions [Abstract] | |||
Related Party Transactions Disclosure [Text Block] | 7. RELATED PARTY TRANSACTIONS | ||
During the years ended October 31, 2014 and 2013, the Company entered into the following transactions with related parties: | |||
a) | The Company paid $84,000 (2013 - $84,000) to a related entity, for administration services. | ||
b) | The Company paid $162,000 (2013 - $162,000) in management fees to the director and President of the Company. | ||
c) | The Company paid $36,000 (2013 - $16,000) in consulting fee to the director of the Company. | ||
INCOME_TAXES
INCOME TAXES | 12 Months Ended | |||||||
Oct. 31, 2014 | ||||||||
Income Tax Disclosure [Abstract] | ||||||||
Income Tax Disclosure [Text Block] | 8. INCOME TAXES | |||||||
Income tax expense (benefit) for the years ended October 31, 2014 and 2013, respectively, consists of the following: | ||||||||
October 31, 2014 | October 31, 2013 | |||||||
Current taxes | $ | - | - | |||||
Deferred taxes | - | - | ||||||
Net income tax provision (benefit) | $ | - | $ | - | ||||
The effective income tax rate for years ended October 31, 2014 and 2013, respectively, are: | ||||||||
October 31, 2014 | October 31, 2013 | |||||||
Federal statutory income tax rate | 35 | % | 35 | % | ||||
Net effective income tax (benefit) rate | 35 | % | 35 | % | ||||
The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and deferred tax liabilities are provided below: | ||||||||
October 31, 2014 | October 31, 2013 | |||||||
Deferred tax assets: | ||||||||
Federal and state net operating loss carryovers | $ | 1,393,582 | $ | 1,373,903 | ||||
Asset retirement liability | 12,164 | 11,073 | ||||||
Write-down of oil and gas properties | 9,281 | 148,755 | ||||||
Book depletion in excess of tax depreciation | -107,935 | -64,572 | ||||||
Deferred tax asset | $ | 1,307,092 | $ | 1,469,159 | ||||
Valuation Allowance | -1,307,092 | -1,469,159 | ||||||
Deferred tax liability | $ | - | $ | - | ||||
The Company has $3,981,662 of net operating loss carry forward as of October 31, 2014, which will expire on October 31, 2029. | ||||||||
The Company believes that all of its positions taken in tax filings are more likely than not to be sustained upon examination by tax authorities for the years ending 2011, 2012, and 2013. The Company includes interest and penalties arising from the underpayment of income taxes in the statements of comprehensive income in the provision for income taxes. As of October 31, 2014 and 2013, the Company had not incurred interest or penalties related to uncertain tax positions. | ||||||||
UNAUDITED_OIL_AND_GAS_RESERVE_
UNAUDITED OIL AND GAS RESERVE QUANTITIES | 12 Months Ended | |||||||
Oct. 31, 2014 | ||||||||
Oil and Gas Exploration and Production Industries Disclosures [Abstract] | ||||||||
Oil and Gas Exploration and Production Industries Disclosures [Text Block] | 9 | UNAUDITED OIL AND GAS RESERVE QUANTITIES | ||||||
The following unaudited reserve estimates presented as of October 31, 2014 and 2013 were prepared by independent petroleum engineers. There are many uncertainties inherent in estimating proved reserve quantities and in projecting future production rates and the timing of development expenditures. In addition, reserve estimates of new discoveries that have little production history are more imprecise than those of properties with more production history. Accordingly, these estimates are expected to change as future information becomes available. | ||||||||
Proved oil and gas reserves are the estimated quantities of crude oil and natural gas which geological and engineering data demonstrate with reasonable certainty to be recoverable in future years from known reservoirs under existing economic and operating conditions; i.e., process and costs as of the date the estimate is made. Proved developed oil and gas reserves are those reserves expected to be recovered through existing wells with existing equipment and operating methods. | ||||||||
Unaudited net quantities of proved developed reserves of crude oil and natural gas (all located within United States) are as follows: | ||||||||
Changes in proved reserves | (Bbls) | (MCF) | ||||||
Estimated quantity, October 31, 2012 | 14,330 | 13,670 | ||||||
Revisions of previous estimate | -1,061 | -3,220 | ||||||
Discoveries | - | - | ||||||
Reserves sold to third parties | - | - | ||||||
Production | -2,449 | -1,120 | ||||||
Estimated quantity, October 31, 2013 | 10,820 | 9,330 | ||||||
Reserves sold to third parties | -2,450 | 356 | ||||||
Revisions of previous estimate | -558 | |||||||
Discoveries | 780 | - | ||||||
Production | -1,422 | -726 | ||||||
Estimated quantity, October 31, 2014 | 7,170 | 8,960 | ||||||
The revisions in the Company's estimates of proved oil and gas reserves are due to the fact that there was more substantive data, such as a longer history of production, available to its engineers which allowed them to better quantify the reserve estimates. | ||||||||
Proved Reserves at year end | Developed | Undeveloped | Total | |||||
Crude Oil (Bbls) | ||||||||
31-Oct-14 | 5,960 | 1,210 | 7,170 | |||||
31-Oct-13 | 9,620 | 1,200 | 10,820 | |||||
Gas (MCF) | ||||||||
31-Oct-14 | 6,950 | 2,010 | 8,960 | |||||
31-Oct-13 | 7,330 | 2,000 | 9,330 | |||||
The following information has been developed utilizing procedures prescribed by FASB ASC 932-235-55, "Disclosures About Oil and Gas Producing Activities", and based on crude oil and natural gas reserves and production volumes estimated by the Company. It may be useful for certain comparison purposes, but should not be solely relied upon in evaluating the Company or its performance. Further, information contained in the following table should not be considered as representative or realistic assessments of future cash flows, nor should the Standardized Measure of Discounted Future Net Cash Flows be viewed as representative of the current value of the Company. | ||||||||
Future cash inflows were computed by applying the 12 month un-weighted mathematic average of the first-day-of-the-month price for each month in the period November 2013 to October 2014 to the estimated future production of proved oil and gas reserves. Subsequent to October 31, 2014 there have been significant declines in oil prices that may adversely affect our financial position and results of operations. If the current downward trend in oil prices continues, there is a reasonable likelihood that we could incur impairment to our full cost pool in calender 2015 based on the average oil and natural gas price calculated as the unweighed arithmetic average of the first-day-of-the-month price for each month within the previous 12-month period under the SEC pricing methodology. The future production and development costs represent the estimated future expenditures (based on current costs) to be incurred in developing and producing the proved reserves, assuming continuation of existing economic conditions. Future income tax expenses were computed by applying statutory income tax rates to the difference between pre-tax net cash flows relating to our proved oil and gas reserves and the tax basis of proved oil and gas properties and available net operating loss carry-forwards. Discounting the future net cash inflows at 10% is a method to measure the impact of the time value of money. | ||||||||
October 31, | October 31, | |||||||
2014 | 2013 | |||||||
Future Cash inflows | $ | 844,450 | $ | 1,050,820 | ||||
Future production costs | -297,100 | -349,510 | ||||||
Future development costs | -57,500 | -57,500 | ||||||
Future income tax expense | - | - | ||||||
Future cash flows | 489,850 | 643,810 | ||||||
10% annual discount for estimated timing of cash flows | -182,750 | -170,730 | ||||||
Standardized measure of discounted future net cash | $ | 307,100 | $ | 473,080 | ||||
UNAUDITED STANDARIZED MEASURE | ||||||||
The following presents the principal sources of the changes in the standardized measure of discounted future net cash flows. | ||||||||
October 31, | October 31, | |||||||
Standardized measure of discounted cash flows: | 2014 | 2013 | ||||||
Beginning of year | $ | 473,080 | $ | 454,410 | ||||
Sales and transfers of oil and gas produced, net production costs | -97,220 | -196,041 | ||||||
Net changes in prices and production costs and other | 51,380 | -99,340 | ||||||
Net sale of reserves in place | -146,760 | - | ||||||
Changes in future development costs | - | -3,750 | ||||||
Revisions of previous estimates | -50,050 | -32,430 | ||||||
Other | 88,690 | 161,101 | ||||||
Net change in income taxes | - | - | ||||||
Accretion discount | -12,020 | 189,130 | ||||||
Total change in the standardized measure during the year | -165,980 | 18,670 | ||||||
Standardize measure, end of year | $ | 307,100 | $ | 473,080 | ||||
MAJOR_CUSTOMERS
MAJOR CUSTOMERS | 12 Months Ended |
Oct. 31, 2014 | |
Major Customers [Abstract] | |
Major Customers [Text Block] | 10. MAJOR CUSTOMERS |
The Company collected $135,014 (2013: $235,170) or 96% (2013: 95%) of its revenues from one of its operators during the year ended October 31, 2014. As of October 31, 2014, $7,486 (2013: $32,593) was due from this operator. | |
CONTINGENCIES
CONTINGENCIES | 12 Months Ended |
Oct. 31, 2014 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies Disclosure [Text Block] | 11. CONTINGENCIES |
Hamm Litigation | |
In September 2010, two lawsuits were filed in the District Court of Garvin County in the State of Oklahoma by Harold Hamm ("Hamm") against certain defendants ("Defendants") and consolidated together alleging, among other things, that Hamm owns an interest in two oil and gas leases in Garvin County and is entitled to a 50% participatory interest. The Company was not named as a party in these legal proceedings, but Hamm's allegations include that he is entitled to a 50% participatory interest in the Joe Murray Farms well drilled as part of the 2009-3 Drilling Program, in which the Company purchased a 6.25% working interest before casing point and 5.0% working interest after casing point. The Defendants and the Company believe that there is no merit to Hamm's allegations. In connection with these proceedings, the Defendants were ordered in January 2011 to escrow fifty percent (50%) of the revenues generated within the subject area pending the outcome of these proceedings. For this reason, fifty percent (50%) of the revenues the Company is entitled to that have been generated by production from the Joe Murray Farms well is being escrowed and there is no assurance that the Company will be able to recover these proceeds. The Company recognized $7,643 in revenue during the year ended October 31, 2014, and $12,391 in revenue during the year ended October 31, 2013. As at October 31, 2014, revenue from the Joe Murray Farms totaling $190,605 has not been recognized as revenue and is being escrowed pending the outcome of these proceedings. | |
Beckett Complaint | |
In April 2013, Jeffrey R. Beckett, a shareholder of the Company, filed a lawsuit in the District Court of Washoe County, Nevada against the Company, its directors, Kenneth A. Cabianca and George Knight, and a principal of one of the Company's consultants, Sarah Cabianca, generally alleging mismanagement of the Company's affairs by the directors to the detriment of the Company and its shareholders (the "State Lawsuit"). The State Lawsuit seeks the issuance of an injunction, the appointment of a receiver and unspecified damages. In June 2013, Mr. Beckett filed a similar complaint against the same defendants in the United States District Court for the District of Nevada (the "Federal Lawsuit"). Sarah Cabianca has been dismissed from the State Lawsuit and the Federal Lawsuit has been dismissed. The Company believes the State Lawsuit has been improperly brought and lacks merit, and is vigorously defending the State Lawsuit. | |
ORGANIZATION_AND_SUMMARY_OF_SI1
ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended | |||||||
Oct. 31, 2014 | ||||||||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||||||||
Use of Estimates, Policy [Policy Text Block] | USE OF ESTIMATES | |||||||
The preparation of financial statement in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. | ||||||||
The oil and gas industry is subject, by its nature, to environmental hazards and clean-up costs. At this time, management knows of no substantial costs from environmental accidents or events for which the Company may be currently liable. In addition, the Company's oil and gas business makes it vulnerable to changes in prices of crude oil and natural gas. Such prices have been volatile in the past and can be expected to be volatile in the future. By definition, proved reserves are based on current oil and gas prices and estimated reserves. Price declines reduce the estimated quantity of proved reserves and increase annual depletion expense (which is based on proved reserves). | ||||||||
Oil and Gas Interests Policy [Policy Text Block] | OIL AND GAS INTERESTS | |||||||
The Company utilizes the full cost method of accounting for oil and gas activities. Under this method, subject to a limitation based on estimated value, all costs associated with property acquisition, exploration and development, including costs of unsuccessful exploration; are capitalized within a cost center. No gain or loss is recognized upon the sale or abandonment of undeveloped or producing oil and gas interests unless the sale represents a significant portion of oil and gas interests and the gain significantly alters the relationship between capitalized costs and proved oil and gas reserves of the cost center. Depreciation, depletion and amortization of oil and gas interests are computed on the units of production method based on proved reserves. Amortizable costs include estimates of future development costs of proved undeveloped reserves. | ||||||||
Capitalized costs of oil and gas interests may not exceed an amount equal to the present value, discounted at 10%, of the estimated future net cash flows from proved oil and gas reserves plus the cost, or estimated fair market value, if lower, of unproved interests. Should capitalized costs exceed this ceiling, an impairment is recognized. The present value of estimated future net cash flows is computed by applying average prices, in the preceding twelve months, of oil and gas to estimated future production of proved oil and gas reserves as of year ends, less estimated future expenditures to be incurred in developing and producing the proved reserves and assuming continuation of existing economic conditions. | ||||||||
Revenue Recognition, Policy [Policy Text Block] | REVENUE RECOGNITION | |||||||
Revenue from sales of crude oil, natural gas and refined petroleum products are recorded when deliveries have occurred and legal ownership of the commodity transfers to the customers. Title transfers for crude oil, natural gas and bulk refined products generally occur at pipeline custody points or when a tanker lifting has occurred. Revenues from the production of oil and natural gas properties in which the Company shares an undivided interest with other producers are recognized based on the actual volumes sold by the Company during the period. Gas imbalances occur when the Company's actual sales differ from its entitlement under existing working interests. The Company records a liability for gas imbalances when it has sold more than its working interest of gas production and the estimated remaining reserves make it doubtful that the partners can recoup their share of production from the field. At October 31, 2014 and 2013, the Company had no overproduced imbalances. | ||||||||
Trade and Other Accounts Receivable, Policy [Policy Text Block] | ACCOUNTS RECEIVABLE | |||||||
Accounts receivable are carried at net receivable amounts less an estimate for doubtful accounts. Management determines the allowance for doubtful accounts by regularly evaluating individual customer receivables and considering a customer's financial condition, credit history, and current economic conditions. Trade receivables are written off when deemed uncollectible. Recoveries of receivables previously written off are recorded when received. | ||||||||
Property, Plant and Equipment, Policy [Policy Text Block] | OTHER EQUIPMENT | |||||||
Computer equipment is stated at cost. Provision for depreciation on computer equipment is calculated using the straight-line method over the estimated useful life of three years. | ||||||||
Impairment or Disposal of Long-Lived Assets, Policy [Policy Text Block] | IMPAIRMENT OF LONG-LIVED ASSETS | |||||||
The Company has adopted FASB ASC 360 "Accounting for the Impairment or Disposal of Long-Lived Assets", which requires that long-lived assets to be held and used be reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Oil and gas interests accounted for under the full cost method are subject to a ceiling test, described above, and are excluded from this requirement. | ||||||||
Asset Retirement Obligations, Policy [Policy Text Block] | ASSET RETIREMENT OBLIGATIONS | |||||||
The Company follows FASB ASC 410-20 "Accounting for Asset Retirement Obligations", which addresses financial accounting and reporting for obligations associated with the retirement of tangible long-lived assets and the associated asset retirement costs. | ||||||||
Over time, accretion of the liability is recognized as an operating expense and the capitalized cost is depreciated over the expected useful life of the related asset. The Company's asset retirement obligations are related to the plugging, dismantlement, removal, site reclamation and similar activities of its oil and gas exploration activities. | ||||||||
Earnings Per Share, Policy [Policy Text Block] | INCOME / (LOSS) PER SHARE | |||||||
Basic income/(loss) per share is computed based on the weighted average number of common shares outstanding during each year. The computation of diluted earnings per share assumes the conversion, exercise or contingent issuance of securities only when such conversion, exercise or issuance would have the dilutive effect on income/(loss) per share. The dilutive effect of outstanding options was nil as of October 31, 2014 and 2013. | ||||||||
The table below presents the computation of basic and diluted earnings per share for the years ended October 31, 2014 and 2013: | ||||||||
October 31, 2014 | October 31, 2013 | |||||||
Basic earnings per share computation: | ||||||||
(Loss) from continuing operations | $ | -474,499 | $ | -1,025,700 | ||||
Basic shares outstanding | 24,629,832 | 24,629,832 | ||||||
Basic earnings per share | $ | -0.02 | $ | -0.04 | ||||
Income Tax, Policy [Policy Text Block] | INCOME TAXES | |||||||
Deferred tax assets and liabilities are recognized for temporary differences between the financial reporting and tax bases of the firm's assets and liabilities. Valuation allowances are established to reduce deferred tax assets to the amount that more likely than not will be realized. The firm's tax assets and liabilities, if any, are presented as a component of "Other assets" and "Other liabilities and accrued expenses," respectively, in the balance sheet. Tax provisions are computed in accordance with FASB ASC 740, "Accounting for Income Taxes". | ||||||||
The Company applies the provisions of FASB ASC 740-10 "Accounting for Uncertainty in Income Taxes — an Interpretation". A tax position can be recognized in the financial statements only when it is more likely than not that the position will be sustained upon examination by the relevant taxing authority based on the technical merits of the position. A position that meets this standard is measured at the largest amount of benefit that will more likely than not be realized upon settlement. A liability is established for differences between positions taken in a tax return and amounts recognized in the financial statements. FASB ASC 740-10 also provides guidance on de-recognition, classification, interim period accounting and accounting for interest and penalties. | ||||||||
Cash and Cash Equivalents, Policy [Policy Text Block] | CASH EQUIVALENTS | |||||||
For purposes of reporting cash flows, the Company considers as cash equivalents all highly liquid investments with a maturity of three months or less at the time of purchase. On occasion, the Company may have cash balances in excess of federally insured amounts. | ||||||||
Investment, Policy [Policy Text Block] | MARKETABLE SECURITIES AND INVESTMENTS | |||||||
All equity Investments are classified as available for sale and any subsequent changes in the fair value are recorded in comprehensive income. If in the opinion of management there has been a decline in the value of the investment below the carrying value that is considered to be other than temporary, the valuation adjustment is recorded in net earnings in the period of determination. The fair value of the investments is based on the quoted market price on the closing date of the period. | ||||||||
Fair Value of Financial Instruments, Policy [Policy Text Block] | FAIR VALUE | |||||||
The Company adopted FASB ASC 820-10-50, "Fair Value Measurements". This guidance defines fair value, establishes a three-level valuation hierarchy for disclosures of fair value measurement and enhances disclosure requirements for fair value measures. The three levels are defined as follows: | ||||||||
Level 1 inputs to the valuation methodology are quoted prices (unadjusted) for identical assets or liabilities in active markets. | ||||||||
Level 2 inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, and inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the financial instrument. | ||||||||
Level 3 inputs to valuation methodology are unobservable and significant to the fair measurement. | ||||||||
The carrying amounts reported in the balance sheets for the cash and cash equivalents, investments in certificates of deposits, receivables and current liabilities each qualify as financial instruments and are a reasonable estimate of fair value because of the short period of time between the origination of such instruments and their expected realization and their current market rate of interest. Marketable securities are valued using Level 1 inputs. | ||||||||
Concentration Risk, Credit Risk, Policy [Policy Text Block] | CONCENTRATION OF CREDIT RISK | |||||||
Financial instruments which potentially subject the Company to concentrations of credit risk consist of cash and cash equivalents, investments in certificates of deposit and accounts receivable. The Company maintains cash at one financial institution. The Company periodically evaluates the credit worthiness of financial institutions, and maintains cash accounts only in large high quality financial institutions, thereby minimizing exposure for deposits in excess of federally insured amounts. The Company believes credit risk associated with cash and cash equivalents to be minimal. | ||||||||
The Company has recorded trade accounts receivable from the business operations. Management periodically evaluates the collectability of the trade receivables and believes that the Company's receivables are fully collectable and that the risk of loss is minimal. | ||||||||
New Accounting Pronouncements, Policy [Policy Text Block] | RECENT ACCOUNTING PRONOUNCEMENTS | |||||||
In May 2014, FASB issued ASU 2014-09, Revenue from Contracts with Customers, which eliminates the transaction- and industry-specific revenue recognition guidance under current GAAP and replaces it with a principle-based approach for determining revenue recognition. Public entities are required to adopt the revenue recognition standard for reporting periods beginning after December 15, 2016, and interim and annual reporting periods thereafter. The Company is currently evaluating the impact this ASU will have on the Company's financial statements. | ||||||||
FASB issued ASU 2014-15 on August 27, 2014, providing guidance on determining when and how to disclose going-concern uncertainties in the financial statements. The new standard requires management to perform interim and annual assessments of an entity's ability to continue as a going concern within one year of the date the financial statements are issued. An entity must provide certain disclosures if "conditions or events raise substantial doubt about the entity's ability to continue as a going concern." The ASU applies to all entities and is effective for annual periods ending after December 15, 2016, and interim periods thereafter, with early adoption permitted. The Company currently discloses a going-concern in Note 1 however the Company will evaluate the impact this ASU will have on the financial statements. | ||||||||
ORGANIZATION_AND_SUMMARY_OF_SI2
ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended | |||||||
Oct. 31, 2014 | ||||||||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||||||||
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | The table below presents the computation of basic and diluted earnings per share for the years ended October 31, 2014 and 2013: | |||||||
October 31, 2014 | October 31, 2013 | |||||||
Basic earnings per share computation: | ||||||||
(Loss) from continuing operations | $ | -474,499 | $ | -1,025,700 | ||||
Basic shares outstanding | 24,629,832 | 24,629,832 | ||||||
Basic earnings per share | $ | -0.02 | $ | -0.04 | ||||
ACCOUNTS_RECEIVABLE_Tables
ACCOUNTS RECEIVABLE (Tables) | 12 Months Ended | |||||||
Oct. 31, 2014 | ||||||||
Receivables [Abstract] | ||||||||
Schedule of Accounts, Notes, Loans and Financing Receivable [Table Text Block] | Accordingly, no allowance for doubtful accounts or bad debt expense has been recorded. | |||||||
October 31, 2014 | October 31, 2013 | |||||||
Accounts receivable | $ | 8,579 | $ | 35,760 | ||||
Less: allowance for doubtful account | - | - | ||||||
$ | 8,579 | $ | 35,760 | |||||
OIL_AND_GAS_INTERESTS_Tables
OIL AND GAS INTERESTS (Tables) | 12 Months Ended | |||||||
Oct. 31, 2014 | ||||||||
Oil and Gas Exploration and Production Industries Disclosures [Abstract] | ||||||||
Schedule of Exploratory Wells Drilled [Table Text Block] | The Company holds the following oil and natural gas interests: | |||||||
October 31, 2014 | October 31, 2013 | |||||||
2008-3 Drilling Program, Oklahoma | $ | 312,794 | $ | 309,152 | ||||
2009-2 Drilling Program, Oklahoma | 114,420 | 114,420 | ||||||
2009-3 Drilling Program, Oklahoma | 353,399 | 349,320 | ||||||
2009-4 Drilling Program, Oklahoma | 190,182 | 190,182 | ||||||
2010-1 Drilling Program, Oklahoma | -47,813 | 270,665 | ||||||
Washita Bend 3D, Oklahoma | 926,598 | 793,551 | ||||||
Double T Ranch #1 SWDW, Oklahoma | 51,816 | 50,812 | ||||||
Kings City Prospect, California | 406,766 | 406,766 | ||||||
South Wayne Prospect, Oklahoma | 61,085 | 61,085 | ||||||
PP F-12-2, PP F-12-3, PP F-12-4 and PP F-52, Mississippi | -222,123 | -222,123 | ||||||
Three Sands Project, Oklahoma | 555,715 | 555,715 | ||||||
Asset retirement cost | 2,689 | 3,367 | ||||||
Less: Accumulated depletion and impairment | -1,754,026 | -1,713,860 | ||||||
$ | 951,502 | $ | 1,169,052 | |||||
Capitalized Costs Relating to Oil and Gas Producing Activities Disclosure [Table Text Block] | Capitalized Costs | |||||||
October 31, 2014 | October 31, 2013 | |||||||
Proved properties | $ | 2,061,127 | $ | 2,186,940 | ||||
Unproved properties | 644,401 | 695,972 | ||||||
Total Proved and Unproved properties | 2,705,528 | 2,882,912 | ||||||
Accumulated depletion expense | -921,402 | -885,724 | ||||||
Impairment | -832,624 | -828,136 | ||||||
Net capitalized cost | $ | 951,502 | $ | 1,169,052 | ||||
Results of Operations for Oil and Gas Producing Activities Disclosure [Table Text Block] | Results of operations for oil and gas producing activities during the year ended are as follows: | |||||||
October 31, 2014 | October 31, 2013 | |||||||
Revenues | $ | 140,709 | $ | 235,170 | ||||
Production costs | -43,489 | -39,129 | ||||||
Depletion and accretion | -61,101 | -154,914 | ||||||
Results of operations (excluding corporate overhead) | $ | 36,119 | $ | 41,127 | ||||
ASSET_RETIREMENT_OBLIGATIONS_T
ASSET RETIREMENT OBLIGATIONS (Tables) | 12 Months Ended | |||||||
Oct. 31, 2014 | ||||||||
Asset Retirement Obligation Disclosure [Abstract] | ||||||||
Schedule of Change in Asset Retirement Obligation [Table Text Block] | The information below reflects the change in the asset retirement obligations during the years ended October 31, 2014 and 2013: | |||||||
October 31, 2014 | October 31, 2013 | |||||||
Balance, beginning of the years | $ | 31,636 | $ | 27,554 | ||||
Liabilities assumed | 277 | - | ||||||
Revisions | -905 | 774 | ||||||
Accretion expense | 3,796 | 3,308 | ||||||
Balance, end of the years | $ | 34,754 | $ | 31,636 | ||||
INCOME_TAXES_Tables
INCOME TAXES (Tables) | 12 Months Ended | |||||||
Oct. 31, 2014 | ||||||||
Income Tax Disclosure [Abstract] | ||||||||
Schedule of Components of Income Tax Expense (Benefit) [Table Text Block] | Income tax expense (benefit) for the years ended October 31, 2014 and 2013, respectively, consists of the following: | |||||||
October 31, 2014 | October 31, 2013 | |||||||
Current taxes | $ | - | - | |||||
Deferred taxes | - | - | ||||||
Net income tax provision (benefit) | $ | - | $ | - | ||||
Schedule of Effective Income Tax Rate Reconciliation [Table Text Block] | The effective income tax rate for years ended October 31, 2014 and 2013, respectively, are: | |||||||
October 31, 2014 | October 31, 2013 | |||||||
Federal statutory income tax rate | 35 | % | 35 | % | ||||
Net effective income tax (benefit) rate | 35 | % | 35 | % | ||||
Schedule of Deferred Tax Assets and Liabilities [Table Text Block] | The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and deferred tax liabilities are provided below: | |||||||
October 31, 2014 | October 31, 2013 | |||||||
Deferred tax assets: | ||||||||
Federal and state net operating loss carryovers | $ | 1,393,582 | $ | 1,373,903 | ||||
Asset retirement liability | 12,164 | 11,073 | ||||||
Write-down of oil and gas properties | 9,281 | 148,755 | ||||||
Book depletion in excess of tax depreciation | -107,935 | -64,572 | ||||||
Deferred tax asset | $ | 1,307,092 | $ | 1,469,159 | ||||
Valuation Allowance | -1,307,092 | -1,469,159 | ||||||
Deferred tax liability | $ | - | $ | - | ||||
UNAUDITED_OIL_AND_GAS_RESERVE_1
UNAUDITED OIL AND GAS RESERVE QUANTITIES (Tables) | 12 Months Ended | |||||||
Oct. 31, 2014 | ||||||||
Oil and Gas Exploration and Production Industries Disclosures [Abstract] | ||||||||
Schedule Of Changes in Proved Developed And Undeveloped Reserves Quantities [Table Text Block] | Unaudited net quantities of proved developed reserves of crude oil and natural gas (all located within United States) are as follows: | |||||||
Changes in proved reserves | (Bbls) | (MCF) | ||||||
Estimated quantity, October 31, 2012 | 14,330 | 13,670 | ||||||
Revisions of previous estimate | -1,061 | -3,220 | ||||||
Discoveries | - | - | ||||||
Reserves sold to third parties | - | - | ||||||
Production | -2,449 | -1,120 | ||||||
Estimated quantity, October 31, 2013 | 10,820 | 9,330 | ||||||
Reserves sold to third parties | -2,450 | 356 | ||||||
Revisions of previous estimate | -558 | |||||||
Discoveries | 780 | - | ||||||
Production | -1,422 | -726 | ||||||
Estimated quantity, October 31, 2014 | 7,170 | 8,960 | ||||||
Schedule of Proved Developed and Undeveloped Oil and Gas Reserve Quantities [Table Text Block] | The revisions in the Company's estimates of proved oil and gas reserves are due to the fact that there was more substantive data, such as a longer history of production, available to its engineers which allowed them to better quantify the reserve estimates. | |||||||
Proved Reserves at year end | Developed | Undeveloped | Total | |||||
Crude Oil (Bbls) | ||||||||
31-Oct-14 | 5,960 | 1,210 | 7,170 | |||||
31-Oct-13 | 9,620 | 1,200 | 10,820 | |||||
Gas (MCF) | ||||||||
31-Oct-14 | 6,950 | 2,010 | 8,960 | |||||
31-Oct-13 | 7,330 | 2,000 | 9,330 | |||||
Standardized Measure of Discounted Future Cash Flows Relating to Proved Reserves Disclosure [Table Text Block] | Discounting the future net cash inflows at 10% is a method to measure the impact of the time value of money. | |||||||
October 31, | October 31, | |||||||
2014 | 2013 | |||||||
Future Cash inflows | $ | 844,450 | $ | 1,050,820 | ||||
Future production costs | -297,100 | -349,510 | ||||||
Future development costs | -57,500 | -57,500 | ||||||
Future income tax expense | - | - | ||||||
Future cash flows | 489,850 | 643,810 | ||||||
10% annual discount for estimated timing of cash flows | -182,750 | -170,730 | ||||||
Standardized measure of discounted future net cash | $ | 307,100 | $ | 473,080 | ||||
Schedule of Changes in Standardized Measure of Discounted Future Net Cash Flows [Table Text Block] | The following presents the principal sources of the changes in the standardized measure of discounted future net cash flows. | |||||||
October 31, | October 31, | |||||||
Standardized measure of discounted cash flows: | 2014 | 2013 | ||||||
Beginning of year | $ | 473,080 | $ | 454,410 | ||||
Sales and transfers of oil and gas produced, net production costs | -97,220 | -196,041 | ||||||
Net changes in prices and production costs and other | 51,380 | -99,340 | ||||||
Net sale of reserves in place | -146,760 | - | ||||||
Changes in future development costs | - | -3,750 | ||||||
Revisions of previous estimates | -50,050 | -32,430 | ||||||
Other | 88,690 | 161,101 | ||||||
Net change in income taxes | - | - | ||||||
Accretion discount | -12,020 | 189,130 | ||||||
Total change in the standardized measure during the year | -165,980 | 18,670 | ||||||
Standardize measure, end of year | $ | 307,100 | $ | 473,080 | ||||
ORGANIZATION_AND_SUMMARY_OF_SI3
ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) (USD $) | 12 Months Ended | ||
Oct. 31, 2014 | Oct. 31, 2013 | Oct. 31, 2012 | |
Basic earnings per share computation: | |||
(Loss) from continuing operations | ($474,499) | ($1,025,700) | ($764,988) |
Basic shares outstanding (in shares) | 24,629,832 | 24,629,832 | |
Basic earnings per share (in dollars per share) | ($0.02) | ($0.04) |
ORGANIZATION_AND_SUMMARY_OF_SI4
ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Textual) (USD $) | 12 Months Ended | |
Oct. 31, 2014 | Oct. 31, 2013 | |
Organization and Summary of Significant Accounting Policies [Line Items] | ||
Capitalized Costs, Oil and Gas Producing Activities, Discounted Percentage | 10.00% | |
Retained Earnings (Accumulated Deficit), Total | ($1,678,250) | ($1,203,751) |
Property, Plant and Equipment, Depreciation Methods | straight-line method | |
Property, Plant and Equipment, Estimated Useful Lives | three years |
MARKETABLE_SECURITIES_Details_
MARKETABLE SECURITIES (Details Textual) (USD $) | 1 Months Ended | 3 Months Ended | 12 Months Ended | |
Aug. 31, 2011 | Jul. 31, 2014 | Oct. 31, 2014 | Oct. 31, 2013 | |
Marketable Securities [Line Items] | ||||
Marketable Securities Number Of Shares (in shares) | 800,000 | |||
Marketable Securities Par Or Stated Value Per Share (in dollars per share) | $0.34 | $0.06 | $0.06 | |
Marketable Securities, Number of Shares Sold (in shares) | 182,071 | |||
Proceeds from Sale and Maturity of Marketable Securities | $52,923 | $52,923 | $0 | |
Marketable Securities, Realized Gain (Loss) | 10,664 | -10,664 | 0 | |
Marketable Securities, Reclassification Adjustment from Unrealized Loss to Realized Loss | $10,664 | |||
Sale Price One [Member] | ||||
Marketable Securities [Line Items] | ||||
Marketable Securities, Number of Shares Sold (in shares) | 100,000 | |||
Marketable Securities, Sale of Stock, Price Per Share | $0.32 | |||
Sale Price Two [Member] | ||||
Marketable Securities [Line Items] | ||||
Marketable Securities, Number of Shares Sold (in shares) | 32,071 | |||
Marketable Securities, Sale of Stock, Price Per Share | $0.33 | |||
Sale Price Three [Member] | ||||
Marketable Securities [Line Items] | ||||
Marketable Securities, Number of Shares Sold (in shares) | 50,000 | |||
Marketable Securities, Sale of Stock, Price Per Share | $0.21 |
ACCOUNTS_RECEIVABLE_Details
ACCOUNTS RECEIVABLE (Details) (USD $) | Oct. 31, 2014 | Oct. 31, 2013 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Accounts receivable | $8,579 | $35,760 |
Less: allowance for doubtful account | 0 | 0 |
Accounts Receivable, Net, Current | $8,579 | $35,760 |
OIL_AND_GAS_INTERESTS_Details
OIL AND GAS INTERESTS (Details) (USD $) | Oct. 31, 2014 | Oct. 31, 2013 |
Capitalized Costs Relating to Oil and Gas Producing Activities, by Geographic Area [Line Items] | ||
Asset retirement cost | $2,689 | $3,367 |
Less: Accumulated depletion and impairment | -1,754,026 | -1,713,860 |
Oil and Gas Property, Full Cost Method, Net | 951,502 | 1,169,052 |
2008-3 Drilling Program, Oklahoma [Member] | ||
Capitalized Costs Relating to Oil and Gas Producing Activities, by Geographic Area [Line Items] | ||
Oil and Gas Property, Full Cost Method, Gross | 312,794 | 309,152 |
2009-2 Drilling Program, Oklahoma [Member] | ||
Capitalized Costs Relating to Oil and Gas Producing Activities, by Geographic Area [Line Items] | ||
Oil and Gas Property, Full Cost Method, Gross | 114,420 | 114,420 |
2009-3 Drilling Program, Oklahoma [Member] | ||
Capitalized Costs Relating to Oil and Gas Producing Activities, by Geographic Area [Line Items] | ||
Oil and Gas Property, Full Cost Method, Gross | 353,399 | 349,320 |
2009-4 Drilling Program, Oklahoma [Member] | ||
Capitalized Costs Relating to Oil and Gas Producing Activities, by Geographic Area [Line Items] | ||
Oil and Gas Property, Full Cost Method, Gross | 190,182 | 190,182 |
2010-1 Drilling Program, Oklahoma [Member] | ||
Capitalized Costs Relating to Oil and Gas Producing Activities, by Geographic Area [Line Items] | ||
Oil and Gas Property, Full Cost Method, Gross | -47,813 | 270,665 |
Washita Bend 3D, Oklahoma [Member] | ||
Capitalized Costs Relating to Oil and Gas Producing Activities, by Geographic Area [Line Items] | ||
Oil and Gas Property, Full Cost Method, Gross | 926,598 | 793,551 |
Double T Ranch #1 SWDW, Oklahoma [Member] | ||
Capitalized Costs Relating to Oil and Gas Producing Activities, by Geographic Area [Line Items] | ||
Oil and Gas Property, Full Cost Method, Gross | 51,816 | 50,812 |
Kings City Prospect California [Member] | ||
Capitalized Costs Relating to Oil and Gas Producing Activities, by Geographic Area [Line Items] | ||
Oil and Gas Property, Full Cost Method, Gross | 406,766 | 406,766 |
South Wayne Prospect, Oklahoma [Member] | ||
Capitalized Costs Relating to Oil and Gas Producing Activities, by Geographic Area [Line Items] | ||
Oil and Gas Property, Full Cost Method, Gross | 61,085 | 61,085 |
PP F-12-2, PP F-12-3, PP F-12-4 and PP F-52, Mississippi [Member] | ||
Capitalized Costs Relating to Oil and Gas Producing Activities, by Geographic Area [Line Items] | ||
Oil and Gas Property, Full Cost Method, Gross | -222,123 | -222,123 |
Three Sands Project, Oklahoma [Member] | ||
Capitalized Costs Relating to Oil and Gas Producing Activities, by Geographic Area [Line Items] | ||
Oil and Gas Property, Full Cost Method, Gross | $555,715 | $555,715 |
OIL_AND_GAS_INTERESTS_Details_
OIL AND GAS INTERESTS (Details 1) (USD $) | Oct. 31, 2014 | Oct. 31, 2013 |
Capitalized Costs Relating to Oil and Gas Producing Activities, by Geographic Area [Line Items] | ||
Proved properties | $2,061,127 | $2,186,940 |
Unproved properties | 644,401 | 695,972 |
Total Proved and Unproved properties | 2,705,528 | 2,882,912 |
Accumulated depletion expense | -921,402 | -885,724 |
Impairment | -832,624 | -828,136 |
Net capitalized cost | $951,502 | $1,169,052 |
OIL_AND_GAS_INTERESTS_Details_1
OIL AND GAS INTERESTS (Details 2) (USD $) | 12 Months Ended | |
Oct. 31, 2014 | Oct. 31, 2013 | |
Results of Operations for Oil and Gas Producing Activities, by Geographic Area [Line Items] | ||
Revenues | $140,709 | $235,170 |
Production costs | -43,489 | -39,129 |
Depletion and accretion | -61,101 | -154,914 |
Results of operations (excluding corporate overhead) | $36,119 | $41,127 |
OIL_AND_GAS_INTERESTS_Details_2
OIL AND GAS INTERESTS (Details Textual) (USD $) | 12 Months Ended | 0 Months Ended | ||||||||||||
Oct. 31, 2014 | Oct. 31, 2013 | Oct. 31, 2009 | Mar. 14, 2010 | Jan. 12, 2009 | Jun. 19, 2009 | Aug. 12, 2009 | Dec. 19, 2009 | Apr. 23, 2010 | Mar. 20, 2014 | Nov. 30, 2013 | Sep. 04, 2013 | Mar. 01, 2010 | Jul. 17, 2012 | |
Oil and Gas Interests [Line Items] | ||||||||||||||
Depletion, Total | $57,305 | $151,026 | ||||||||||||
Impairment Of Proved Properties Discounted Rate | 10.00% | |||||||||||||
Impairment of Oil and Gas Properties | 26,517 | 425,015 | ||||||||||||
Capitalized Costs, Proved Properties | 2,061,127 | 2,186,940 | ||||||||||||
Proceeds From Sale Of Oil and Gas Property and Equipment | 275,148 | 0 | ||||||||||||
2008-3 Drilling Program, Oklahoma [Member] | ||||||||||||||
Oil and Gas Interests [Line Items] | ||||||||||||||
Business Acquisition, Percentage of Voting Interests Acquired | 5.00% | |||||||||||||
2008-3 Drilling Program, Oklahoma [Member] | After Casing Point [Member] | ||||||||||||||
Oil and Gas Interests [Line Items] | ||||||||||||||
Business Acquisition, Percentage of Voting Interests Acquired | 5.00% | |||||||||||||
2008-3 Drilling Program, Oklahoma [Member] | Before Casing Point [Member] | ||||||||||||||
Oil and Gas Interests [Line Items] | ||||||||||||||
Business Acquisition, Percentage of Voting Interests Acquired | 6.25% | |||||||||||||
2009-2 Drilling Program, Oklahoma [Member] | ||||||||||||||
Oil and Gas Interests [Line Items] | ||||||||||||||
Business Acquisition, Percentage of Voting Interests Acquired | 5.00% | |||||||||||||
2009-2 Drilling Program, Oklahoma [Member] | After Casing Point [Member] | ||||||||||||||
Oil and Gas Interests [Line Items] | ||||||||||||||
Business Acquisition, Percentage of Voting Interests Acquired | 5.00% | |||||||||||||
2009-2 Drilling Program, Oklahoma [Member] | Before Casing Point [Member] | ||||||||||||||
Oil and Gas Interests [Line Items] | ||||||||||||||
Business Acquisition, Percentage of Voting Interests Acquired | 6.25% | |||||||||||||
2009-3 Drilling Program, Oklahoma [Member] | ||||||||||||||
Oil and Gas Interests [Line Items] | ||||||||||||||
Business Acquisition, Percentage of Voting Interests Acquired | 5.00% | |||||||||||||
2009-3 Drilling Program, Oklahoma [Member] | After Casing Point [Member] | ||||||||||||||
Oil and Gas Interests [Line Items] | ||||||||||||||
Business Acquisition, Percentage of Voting Interests Acquired | 5.00% | |||||||||||||
2009-3 Drilling Program, Oklahoma [Member] | Before Casing Point [Member] | ||||||||||||||
Oil and Gas Interests [Line Items] | ||||||||||||||
Business Acquisition, Percentage of Voting Interests Acquired | 6.25% | |||||||||||||
2009-4 Drilling Program, Oklahoma [Member] | ||||||||||||||
Oil and Gas Interests [Line Items] | ||||||||||||||
Business Acquisition, Percentage of Voting Interests Acquired | 5.00% | |||||||||||||
2009-4 Drilling Program, Oklahoma [Member] | After Casing Point [Member] | ||||||||||||||
Oil and Gas Interests [Line Items] | ||||||||||||||
Business Acquisition, Percentage of Voting Interests Acquired | 5.00% | |||||||||||||
2009-4 Drilling Program, Oklahoma [Member] | Before Casing Point [Member] | ||||||||||||||
Oil and Gas Interests [Line Items] | ||||||||||||||
Business Acquisition, Percentage of Voting Interests Acquired | 6.25% | |||||||||||||
2010-1 Drilling Program, Oklahoma [Member] | ||||||||||||||
Oil and Gas Interests [Line Items] | ||||||||||||||
Business Acquisition, Percentage of Voting Interests Acquired | 5.00% | |||||||||||||
Proceeds From Sale Of Oil and Gas Property and Equipment | 275,147 | |||||||||||||
Percentage of Oil and Gas Property and Equipment, Sold | 100.00% | |||||||||||||
2010-1 Drilling Program, Oklahoma [Member] | After Casing Point [Member] | ||||||||||||||
Oil and Gas Interests [Line Items] | ||||||||||||||
Business Acquisition, Percentage of Voting Interests Acquired | 5.00% | |||||||||||||
2010-1 Drilling Program, Oklahoma [Member] | Before Casing Point [Member] | ||||||||||||||
Oil and Gas Interests [Line Items] | ||||||||||||||
Business Acquisition, Percentage of Voting Interests Acquired | 6.25% | |||||||||||||
Washita Bend 3D, Oklahoma [Member] | ||||||||||||||
Oil and Gas Interests [Line Items] | ||||||||||||||
Business Acquisition, Percentage of Voting Interests Acquired | 5.00% | |||||||||||||
Capitalized Costs, Proved Properties | 44,793 | 76,890 | 148,391 | |||||||||||
Washita Bend 3D, Oklahoma [Member] | After Casing Point [Member] | ||||||||||||||
Oil and Gas Interests [Line Items] | ||||||||||||||
Business Acquisition, Percentage of Voting Interests Acquired | 5.00% | |||||||||||||
Washita Bend 3D, Oklahoma [Member] | Before Casing Point [Member] | ||||||||||||||
Oil and Gas Interests [Line Items] | ||||||||||||||
Business Acquisition, Percentage of Voting Interests Acquired | 5.63% | |||||||||||||
Double T Ranch 1 Swdw, Oklahoma [Member] | ||||||||||||||
Oil and Gas Interests [Line Items] | ||||||||||||||
Business Acquisition, Percentage of Voting Interests Acquired | 3.00% | |||||||||||||
Kings City Prospect California [Member] | ||||||||||||||
Oil and Gas Interests [Line Items] | ||||||||||||||
Business Acquisition, Percentage of Voting Interests Acquired | 20.00% | |||||||||||||
Description Of Land Allocated For Exploration | 10,000 acres located in west central California | |||||||||||||
Percentage Of Costs Incurred To Explore and Develop Oil and Gas Properties | 50.00% | |||||||||||||
Costs Incurred To Explore and Develop Oil and Gas Properties | 200,000 | |||||||||||||
Dry Hole Cost Of Exploration Projects, Percentage | 33.33% | |||||||||||||
Payments to Explore and Develop Oil and Gas Properties | 100,000 | |||||||||||||
South Wayne Prospect Oklahoma [Member] | ||||||||||||||
Oil and Gas Interests [Line Items] | ||||||||||||||
Business Acquisition, Percentage of Voting Interests Acquired | 5.00% | |||||||||||||
Dry Hole Cost Of Exploration Projects | 32,370 | |||||||||||||
Payment For Lease Hold Prospect and Geophysical Fees | $5,000 | |||||||||||||
South Wayne Prospect Oklahoma [Member] | After Casing Point [Member] | ||||||||||||||
Oil and Gas Interests [Line Items] | ||||||||||||||
Business Acquisition, Percentage of Voting Interests Acquired | 5.00% | |||||||||||||
South Wayne Prospect Oklahoma [Member] | Before Casing Point [Member] | ||||||||||||||
Oil and Gas Interests [Line Items] | ||||||||||||||
Business Acquisition, Percentage of Voting Interests Acquired | 6.25% |
ASSET_RETIREMENT_OBLIGATIONS_D
ASSET RETIREMENT OBLIGATIONS (Details) (USD $) | 12 Months Ended | |
Oct. 31, 2014 | Oct. 31, 2013 | |
Asset Retirement Obligation [Line Items] | ||
Balance, beginning of the years | $31,636 | $27,554 |
Liabilities assumed | 277 | 0 |
Revisions | -905 | 774 |
Accretion expense | 3,796 | 3,308 |
Balance, end of the years | $34,754 | $31,636 |
ASSET_RETIREMENT_OBLIGATIONS_D1
ASSET RETIREMENT OBLIGATIONS (Details Textual) | 12 Months Ended |
Oct. 31, 2014 | |
Asset Retirement Obligation [Line Items] | |
Liability, Weighted Average Risk Free Discount Rate | 12.00% |
CAPITAL_STOCK_Details_Textual
CAPITAL STOCK (Details Textual) (USD $) | 12 Months Ended | |
Oct. 31, 2014 | Oct. 31, 2013 | |
Class of Stock [Line Items] | ||
Preferred Stock, Shares Authorized (in shares) | 25,000,000 | 25,000,000 |
Preferred Stock, Par Or Stated Value Per Share (in dollars per share) | $0.00 | $0.00 |
Series A Preferred Stock [Member] | ||
Class of Stock [Line Items] | ||
Preferred Stock, Shares Authorized (in shares) | 1,000,000 | 1,000,000 |
Preferred Stock, Shares Issued (in shares) | 500,001 | 500,001 |
Preferred Stock, Par Or Stated Value Per Share (in dollars per share) | $0.00 | $0.00 |
Preferred Stock, Dividend Rate, Percentage | 10.00% | |
Related Party Transaction Maximum Amounts Of Transaction | $100,000 |
RELATED_PARTY_TRANSACTIONS_Det
RELATED PARTY TRANSACTIONS (Details Textual) (USD $) | 12 Months Ended | |
Oct. 31, 2014 | Oct. 31, 2013 | |
Affiliated Entity [Member] | ||
Related Party Transaction [Line Items] | ||
Related Party Transaction, Amounts of Transaction | $84,000 | $84,000 |
Director and President [Member] | ||
Related Party Transaction [Line Items] | ||
Related Party Transaction, Amounts of Transaction | 162,000 | 162,000 |
Director [Member] | ||
Related Party Transaction [Line Items] | ||
Related Party Transaction, Amounts of Transaction | $36,000 | $16,000 |
INCOME_TAXES_Details
INCOME TAXES (Details) (USD $) | 12 Months Ended | |
Oct. 31, 2014 | Oct. 31, 2013 | |
Current taxes | $0 | $0 |
Deferred taxes | 0 | 0 |
Net income tax provision (benefit) | $0 | $0 |
INCOME_TAXES_Details_1
INCOME TAXES (Details 1) | 12 Months Ended | |
Oct. 31, 2014 | Oct. 31, 2013 | |
Federal statutory income tax rate | 35.00% | 35.00% |
Net effective income tax (benefit) rate | 35.00% | 35.00% |
INCOME_TAXES_Details_2
INCOME TAXES (Details 2) (USD $) | Oct. 31, 2014 | Oct. 31, 2013 |
Deferred tax assets: | ||
Federal and state net operating loss carryovers | $1,393,582 | $1,373,903 |
Asset retirement liability | 12,164 | 11,073 |
Write-down of oil and gas properties | 9,281 | 148,755 |
Book depletion in excess of tax depreciation | -107,935 | -64,572 |
Deferred tax asset | 1,307,092 | 1,469,159 |
Valuation Allowance | -1,307,092 | -1,469,159 |
Deferred tax liability | $0 | $0 |
INCOME_TAXES_Details_Textual
INCOME TAXES (Details Textual) (USD $) | 12 Months Ended |
Oct. 31, 2014 | |
Operating Loss Carryforwards | $3,981,662 |
Operating Loss Carryforwards, Expiration Date | 31-Oct-29 |
UNAUDITED_OIL_AND_GAS_RESERVE_2
UNAUDITED OIL AND GAS RESERVE QUANTITIES (Details) (Oil) (Oil [Member]) | 12 Months Ended | |
Oct. 31, 2014 | Oct. 31, 2013 | |
bbl | bbl | |
Oil [Member] | ||
Changes in proved reserves | ||
Estimated quantity, at begining of the period | 10,820 | 14,330 |
Revisions of previous estimate | -558 | -1,061 |
Discoveries | 780 | 0 |
Reserves sold to third parties | -2,450 | 0 |
Production | -1,422 | -2,449 |
Estimated quantity, at end of the period | 7,170 | 10,820 |
UNAUDITED_OIL_AND_GAS_RESERVE_3
UNAUDITED OIL AND GAS RESERVE QUANTITIES (Details) (Gas) (Natural Gas [Member]) | 12 Months Ended | |
Oct. 31, 2014 | Oct. 31, 2013 | |
Mcf | Mcf | |
Natural Gas [Member] | ||
Changes in proved reserves | ||
Estimated quantity, at begining of the period | 9,330 | 13,670 |
Revisions of previous estimate | -3,220 | |
Discoveries | 0 | 0 |
Reserves sold to third parties | 356 | 0 |
Production | -726 | -1,120 |
Estimated quantity, at end of the period | 8,960 | 9,330 |
UNAUDITED_OIL_AND_GAS_RESERVE_4
UNAUDITED OIL AND GAS RESERVE QUANTITIES (Details 1) (Oil) (Oil [Member]) | Oct. 31, 2014 | Oct. 31, 2013 | Oct. 31, 2012 |
bbl | bbl | bbl | |
Oil [Member] | |||
Proved Reserves [Abstract] | |||
Developed | 5,960 | 9,620 | |
Undeveloped | 1,210 | 1,200 | |
Total | 7,170 | 10,820 | 14,330 |
UNAUDITED_OIL_AND_GAS_RESERVE_5
UNAUDITED OIL AND GAS RESERVE QUANTITIES (Details 1) (Gas) (Natural Gas [Member]) | Oct. 31, 2014 | Oct. 31, 2013 | Oct. 31, 2012 |
Mcf | Mcf | Mcf | |
Natural Gas [Member] | |||
Proved Reserves at year end | |||
Developed | 6,950 | 7,330 | |
Undeveloped | 2,010 | 2,000 | |
Total | 8,960 | 9,330 | 13,670 |
UNAUDITED_OIL_AND_GAS_RESERVE_6
UNAUDITED OIL AND GAS RESERVE QUANTITIES (Details 2) (USD $) | Oct. 31, 2014 | Oct. 31, 2013 | Oct. 31, 2012 |
Future Cash inflows | $844,450 | $1,050,820 | |
Future production costs | -297,100 | -349,510 | |
Future development costs | -57,500 | -57,500 | |
Future income tax expense | 0 | 0 | |
Future cash flows | 489,850 | 643,810 | |
10% annual discount for estimated timing of cash flows | -182,750 | -170,730 | |
Standardized measure of discounted future net cash | $307,100 | $473,080 | $454,410 |
UNAUDITED_OIL_AND_GAS_RESERVE_7
UNAUDITED OIL AND GAS RESERVE QUANTITIES (Details 3) (USD $) | 12 Months Ended | |
Oct. 31, 2014 | Oct. 31, 2013 | |
Standardized measure of discounted cash flows: | ||
Beginning of year | $473,080 | $454,410 |
Sales and transfers of oil and gas produced, net production costs | -97,220 | -196,041 |
Net changes in prices and production costs and other | 51,380 | -99,340 |
Net sale of reserves in place | -146,760 | 0 |
Changes in future development costs | 0 | -3,750 |
Revisions of previous estimates | -50,050 | -32,430 |
Other | 88,690 | 161,101 |
Net change in income taxes | 0 | 0 |
Accretion discount | -12,020 | 189,130 |
Total change in the standardized measure during the year | -165,980 | 18,670 |
Standardize measure, end of year | $307,100 | $473,080 |
MAJOR_CUSTOMERS_Details_Textua
MAJOR CUSTOMERS (Details Textual) (USD $) | 12 Months Ended | |
Oct. 31, 2014 | Oct. 31, 2013 | |
Revenue, Major Customer [Line Items] | ||
Accounts Receivable, Net, Current, Total | $8,579 | $35,760 |
Sales Revenue, Net [Member] | Customer Concentration Risk [Member] | ||
Revenue, Major Customer [Line Items] | ||
Revenues | 135,014 | 235,170 |
Concentration Risk, Percentage | 96.00% | 95.00% |
Accounts Receivable [Member] | Customer Concentration Risk [Member] | ||
Revenue, Major Customer [Line Items] | ||
Accounts Receivable, Net, Current, Total | $7,486 | $32,593 |
CONTINGENCIES_Details_Textual
CONTINGENCIES (Details Textual) (USD $) | 12 Months Ended | |
Oct. 31, 2014 | Oct. 31, 2013 | |
Loss Contingencies [Line Items] | ||
Oil and Gas Revenue | $140,709 | $235,170 |
2009-3 Drilling Program, Oklahoma [Member] | ||
Loss Contingencies [Line Items] | ||
Percentage Of Pending Outcome Of Legal Proceedings (in percentage) | 50.00% | |
Oil and Gas Revenue | 7,643 | 12,391 |
Oil and Gas Revenue Unrecognized | $190,605 | |
2009-3 Drilling Program, Oklahoma [Member] | Before Casing Point Interest Percentage [Member] | ||
Loss Contingencies [Line Items] | ||
Cost Method Investment Ownership Percentage (in percentage) | 6.25% | |
2009-3 Drilling Program, Oklahoma [Member] | After Casing Point Interest Percentage [Member] | ||
Loss Contingencies [Line Items] | ||
Cost Method Investment Ownership Percentage (in percentage) | 5.00% |