Document_and_Entity_Informatio
Document and Entity Information | 6 Months Ended | |
Sep. 30, 2013 | Nov. 19, 2013 | |
Document and Entity Information: | ' | ' |
Entity Registrant Name | 'Bering Exploration, Inc. | ' |
Entity Central Index Key | '0001229089 | ' |
Amendment Flag | 'false | ' |
Current Fiscal Year End Date | '--03-31 | ' |
Document Type | '10-Q | ' |
Document Period End Date | 30-Sep-13 | ' |
Document Fiscal Year Focus | '2014 | ' |
Document Fiscal Period Focus | 'Q2 | ' |
Entity Filer Category | 'Smaller Reporting Company | ' |
Entity Common Stock, Shares Outstanding | ' | 38,680,775 |
CONSOLIDATED_BALANCE_SHEETS
CONSOLIDATED BALANCE SHEETS (USD $) | Sep. 30, 2013 | Mar. 31, 2013 |
Current assets: | ' | ' |
Cash and cash equivalents | $14,747 | $1,113 |
Restricted cash | 25,000 | 25,000 |
Accounts receivable, net | 22,803 | 16,416 |
Prepaid expenses | 30,000 | 3,850 |
Total current assets | 92,550 | 46,379 |
Oil and gas properties, net of accumulated depletion of $262,706 and $229,706, at September 30, 2013 and March 31, 2013, respectively, full cost method | ' | ' |
Proved | 367,444 | 400,444 |
Unproved | 145,316 | 348,813 |
Total assets | 605,310 | 795,636 |
Current liabilities: | ' | ' |
Accounts payable | 145,538 | 134,007 |
Accounts payable - related parties | 26,000 | 52,808 |
Accrued liabilities | 25,585 | 340,229 |
Note payable | 5,820 | 5,820 |
Convertible note payable - related parties, net of discount of $32,714 and $108,370 at September 30, 2013 and March 31, 2013, respectively | 314,786 | 121,130 |
Derivative liability | 329,959 | 1,017,865 |
Total current liabilities | 847,688 | 1,671,859 |
Asset retirement obligation | 8,507 | 8,507 |
Total liabilities | 856,195 | 1,680,366 |
Commitments | ' | ' |
Shareholders' deficit | ' | ' |
Preferred stock, $0.001 par value; 25,000,000 shares authorized; 0 shares issued and outstanding at September 30, 2013 and March 31, 2013 | ' | ' |
Common stock, $0.001 par value; 500,000,000 shares authorized; 38,680,775 and 19,455,923 shares issued and outstanding as of September 30, 2013 and March 31, 2013, respectively | 38,680 | 19,455 |
Additional paid-in capital | 13,531,650 | 11,859,619 |
Accumulated deficit | -13,821,215 | -12,763,804 |
Total shareholders' deficit | -250,885 | -884,730 |
Total liabilities and shareholders' deficit | $605,310 | $795,636 |
CONSOLIDATED_BALANCE_SHEETS_Pa
CONSOLIDATED BALANCE SHEETS (Parentheticals) (USD $) | Sep. 30, 2013 | Mar. 31, 2013 |
Parentheticals | ' | ' |
Accumulated depletion on oil and gas properties full cost method | $262,706 | $229,706 |
Discount on Convertible notes payable - related parties | $32,714 | $108,370 |
Preferred Stock, par value | $0.00 | $0.00 |
Preferred Stock, shares authorized | 25,000,000 | 25,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common Stock, par value | $0.00 | $0.00 |
Common Stock, shares authorized | 500,000,000 | 500,000,000 |
Common Stock, shares issued | 38,680,775 | 19,455,923 |
Common Stock, shares outstanding | 38,680,775 | 19,455,923 |
COSOLIDATED_STATEMENTS_OF_OPER
COSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) (USD $) | 3 Months Ended | 6 Months Ended | ||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | |
Income Statement [Abstract] | ' | ' | ' | ' |
Oil and gas revenue | $19,084 | $25,263 | $44,886 | $49,340 |
Total revenues | 19,084 | 25,263 | 44,886 | 49,340 |
Operating costs and expenses: | ' | ' | ' | ' |
Lease operating expenses | 9,875 | 114,829 | 55,478 | 150,363 |
Compensation and related expenses | 829,685 | 1,274,494 | 1,208,251 | 1,443,712 |
Office administration | 16,073 | 6,341 | 35,811 | 38,942 |
Professional fees | 40,633 | 91,608 | 63,952 | 218,672 |
Investor relations | 195 | ' | 1,272 | ' |
Depletion, depreciation and amortization | 16,500 | 16,715 | 33,000 | 33,210 |
Impairment expense | 203,497 | ' | 203,497 | ' |
Other expenses | 3,499 | 44,971 | 10,927 | 44,971 |
Total operating costs and expenses | 1,119,957 | 1,548,958 | 1,612,188 | 1,929,870 |
Loss from operations | -1,100,873 | -1,523,695 | -1,567,302 | -1,880,530 |
Other income (expense) | ' | ' | ' | ' |
Interest expense | -124,097 | -70,339 | -203,013 | -502,811 |
Change in derivative liability | 461,454 | -215,726 | 712,904 | -215,726 |
Total other income (expense) | 337,357 | -286,065 | 509,891 | -718,537 |
Net loss | ($763,516) | ($1,809,760) | ($1,057,411) | ($2,599,067) |
Net Loss Per Share - Basic and Diluted | ($0.03) | ($0.16) | ($0.05) | ($0.28) |
Weighted Average Common Shares Outstanding - Basic and Diluted | 25,226,531 | 11,063,099 | 21,810,371 | 9,255,926 |
CONSOLIDATED_STATEMENTS_OF_CAS
CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) (USD $) | 6 Months Ended | |
Sep. 30, 2013 | Sep. 30, 2012 | |
Cash flows from operating activities: | ' | ' |
Net loss | ($1,057,411) | ($2,599,067) |
Adjustments to reconcile net loss to net cash used in operating activities: | ' | ' |
Depletion, depreciation and amortization | 33,000 | 33,210 |
Amortization of debt discount and noncash interest expense | 193,656 | 484,580 |
Share-based compensation | 1,208,251 | 1,323,992 |
Impairment of oil and gas properties | 203,497 | ' |
Increase (Decrease) in Derivative Liabilities | -712,904 | 215,726 |
Changes in operating assets and liabilities: | ' | ' |
Accounts receivable | -6,387 | -30,598 |
Prepaid expenses | 3,850 | -11,550 |
Accounts payable | 132,531 | 51,531 |
Accounts payable - related parties | -26,808 | ' |
Accrued liabilities | -75,641 | 112,068 |
Net cash used in operating activities | -104,366 | -420,108 |
Cash flows from investing activities: | ' | ' |
Purchases of oil and gas properties | ' | -389,668 |
Net cash used in investing activities | ' | -389,668 |
Cash flows from financing activities: | ' | ' |
Proceeds from sale of common stock | ' | 500,603 |
Proceeds from notes payable - third parties | ' | 9,182 |
Proceeds from convertible note payable - related party | 118,000 | 308,220 |
Repayment of convertible note payable - related party | ' | -32,500 |
Net cash provided by financing activities | 118,000 | 785,505 |
Net change in cash | 13,634 | -24,271 |
Cash - beginning of period | 1,113 | 52,088 |
Cash - end of period | 14,747 | 27,817 |
Supplemental Disclosures | ' | ' |
Interest paid | ' | ' |
Interest taxes paid | ' | ' |
Conversion of notes payable and accrued interest to common stock | ' | 384,883 |
Conversion of notes payable and accrued interest to common stock - related party | ' | 49,869 |
Stock issued to settle accounts payable, bonuses and services | 471,000 | ' |
Common stock issued for prepaid asset | 30,000 | ' |
Debt discount on convertible notes | ' | 597,500 |
Debt discount on convertible notes - related party | 93,000 | 70,570 |
Conversion of accounts payable and accrued expenses to convertible note payable | ' | $33,500 |
Basis_of_Presentation
Basis of Presentation | 6 Months Ended |
Sep. 30, 2013 | |
Accounting Policies [Abstract] | ' |
Basis of Presentation and Significant Accounting Policies | ' |
Note 1. Basis of Presentation | |
The accompanying unaudited consolidated financial statements of Bering Exploration, Inc. (the "Company" or "Bering") have been prepared in accordance with accounting principles generally accepted in the United States of America for interim financial information and with the instructions to Form 10-Q and Article 8-03 of Regulation S-X related to smaller reporting companies. These consolidated financial statements should be read in conjunction with the audited financial statements and notes, which are included as part of the Company's Form 10-K filed with the Securities and Exchange Commission (“SEC”) on July 16, 2012. In the opinion of management, all adjustments, consisting only of normal recurring adjustments, considered necessary for a fair presentation, have been included in the accompanying unaudited consolidated financial statements. Operating results for the periods presented are not necessarily indicative of the results that may be expected for the full year. Notes to the consolidated financial statements which substantially duplicate the disclosures contained in the audited consolidated financial statements for fiscal year ended March 31, 2013 as reported in the 10-K have been omitted. | |
Significant accounting policies | |
Principles of Consolidation | |
The consolidated financial statements include the accounts of Bering Exploration, Inc. and its wholly owned subsidiaries, Secure Voice Communications, Inc. (Texas) and Bering Operations, Inc. All significant inter-company accounts and transactions have been eliminated. | |
Use of Estimates | |
In preparing financial statements in conformity with accounting principles generally accepted in the United States of America, management is required to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Actual results could differ from those estimates. | |
Oil and Natural Gas Properties | |
We account for our oil and natural gas producing activities using the full cost method of accounting as prescribed by the United States Securities and Exchange Commission (SEC). Under this method, subject to a limitation based on estimated value, all costs incurred in the acquisition, exploration, and development of proved oil and natural gas properties, including internal costs directly associated with acquisition, exploration, and development activities, the costs of abandoned properties, dry holes, geophysical costs, and annual lease rentals are capitalized within a cost center on a country by country basis. Costs of production and general and administrative corporate costs unrelated to acquisition, exploration, and development activities are expensed as incurred. | |
Costs associated with unevaluated properties are capitalized as oil and natural gas properties but are excluded from the amortization base during the evaluation period. When we determine whether the property has proved recoverable reserves or not, or if there is an impairment, the costs are transferred into the amortization base and thereby become subject to amortization. We evaluate unevaluated properties for impairment at least annually. | |
Capitalized costs included in the amortization base are depleted using either the units of production method based on proved reserves where the Company operates the well or the percentage depletion method when the Company does not operate the well. Depletion is calculated using the capitalized costs included in the amortization base, including estimated asset retirement costs, plus the estimated future expenditures to be incurred in developing proved reserves, net of estimated salvage values. | |
The net book value of all capitalized oil and natural gas properties within a cost center, less related deferred income taxes, is subject to a full cost ceiling limitation which is calculated quarterly. Under the ceiling limitation, costs may not exceed an aggregate of the present value of future net revenues attributable to proved oil and natural gas reserves discounted at 10 percent using current prices, plus the lower of cost or market value of unproved properties included in the amortization base, plus the cost of unevaluated properties, less any associated tax effects. Any excess of the net book value, less related deferred tax benefits, over the ceiling is written off as expense. Impairment expense recorded in one period may not be reversed in a subsequent period even though higher oil and gas prices may have increased the ceiling applicable to the subsequent period. | |
Sales or other dispositions of oil and natural gas properties are accounted for as adjustments to capitalized costs, with no gain or loss recorded unless the ratio of cost to proved reserves would significantly change. During the period ended September 30, 2013, the Company recognized an impairment of $203,497. |
Going_Concern
Going Concern | 6 Months Ended |
Sep. 30, 2013 | |
Going Concern: | ' |
Going Concern | ' |
Note 2. Going Concern | |
These consolidated financial statements have been prepared on a going concern basis, which implies the Company will continue to realize its assets and discharge its liabilities in the normal course of business. The Company has not generated significant revenue since its inception and is unlikely to generate earnings in the immediate or foreseeable future. The continuation of the Company as a going concern is dependent upon the continued financial support from its shareholders and the ability of the Company to obtain necessary equity financing to continue operations and the attainment of profitable operations. As of September 30, 2013, the Company has accumulated losses of approximately $13,821,000 since inception and has negative working capital of approximately $755,000. These factors raise substantial doubt regarding the Company's ability to continue as a going concern. These financial statements do not include any adjustments to the recoverability and classification of recorded asset amounts and classification of liabilities that might be necessary should the Company be unable to continue as a going concern. |
Related_Party_Transactions
Related Party Transactions | 6 Months Ended |
Sep. 30, 2013 | |
Related Party Transactions [Abstract] | ' |
Related Party Transactions | ' |
Note 3. Related Party Transactions | |
In April 2013, the Company issued 305,000 shares of its common stock to the chief executive officer in lieu of paying him cash compensation and for unpaid expense reimbursements. The fair market value of the shares on the date of issuance was $61,000. | |
In April 2013, the Company cancelled a previously issued stock option to its chief financial officer and issued a new option to purchase 700,000 shares of the Company's common stock at a price of $0.10 per share, vesting immediately, with a five year term. | |
In April 2013, a shareholder advanced the Company $75,000 in exchange for a convertible note payable due September 30, 2013, bearing interest at 10% per annum and convertible into shares of the Company’s common stock at $0.05 per share. | |
In June 2013, the Company issued 900,000 shares of its common stock to the chief executive officer in lieu of paying him a cash bonus. The fair market value of the shares on the date of issuance was $45,000. | |
In June 2013, the Company issued 1,200,000 shares of its common stock to the chief financial officer for duties performed for the Company related the Company’s recent workover, farm-out and related oil and gas projects which were not contemplated in his employment contract. The fair market value of the shares on the date of issuance was $60,000. | |
In June 2013, a shareholder advanced the Company $18,000 in exchange for a convertible note payable due December 31, 2013, bearing interest at 10% per annum and convertible into shares of the Company's common stock at $0.05 per share. | |
In September 2013, the Company issued 10,016,200 shares to the chief executive officer in lieu of paying him cash compensation and for unpaid expense reimbursements. The fair market value of the shares on the date of issuance was $701,134. | |
In September 2013, the Company issued 5,500,000 shares to the chief financial officer in lieu of paying him cash compensation and for unpaid expense reimbursements. The fair market value of the shares on the date of issuance was $380,000. |
Debt
Debt | 6 Months Ended | ||||||||
Sep. 30, 2013 | |||||||||
Debt Disclosure [Abstract] | ' | ||||||||
Debt | ' | ||||||||
Note 4. Debt | |||||||||
Debt as of September 30, 2013 and March 31, 2013 consists of the following: | |||||||||
30-Sep-13 | 31-Mar-13 | ||||||||
Description | |||||||||
Notes payable | |||||||||
In June 2012, the Company financed the unpaid balance of a general liability insurance policy in the amount of $11,404 with a premium finance company. The financing agreement bears annual interest at 8% and is due in April 2013 and calls for monthly principal and interest payments of $1,193. The note is currently in default. | $ | 5,820 | $ | 5,820 | |||||
Convertible note payable – related party | |||||||||
In August 2012, the Company entered into a convertible note agreement with Jinsun, LLC, in the principal amount of $247,500 at an annual interest rate of 10%. The note is due August 31, 2013. The note is convertible into the Company’s common stock at the lesser of (i) 50% of the average of the lowest three (3) closing bid prices for the Company’s common stock during the ten (10) trading days prior to the Conversion Date or (ii) $0.05 per share. The Company recorded a discount of $247,500 related to the derivative liability at inception. The Company recorded amortization of $247,500 and payments of $40,000 related to the discount from inception of the loan through September 30, 2013. The note is currently in default. | $ | 207,500 | $ | 207,500 | |||||
In December 2012, the Company entered into a convertible note agreement with Jinsun, LLC, in the principal amount of $20,000 at an annual interest rate of 10%. The note is convertible at $0.05 per share and is due August 31, 2013. The Company recorded a discount related to the beneficial conversion feature of the note of $20,000. The note is currently in default. | 20,000 | 20,000 | |||||||
In January 2013, the Company entered into a convertible note agreement with Jinsun, LLC, in the principal amount of $2,000 at an annual interest rate of 10%. The note is convertible at $0.05 per share and is due August 31, 2013. The Company recorded a discount related to the beneficial conversion feature of the note of $2,000. The note is currently in default. | 2,000 | 2,000 | |||||||
In April 2013, the Company entered into a convertible note agreement with Pass the Biscuits, LLC, in the principal amount of $75,000 at an annual interest rate of 10%. The note is convertible at $0.05 per share and is due September 30, 2013. The Company recorded a discount related to the beneficial conversion feature of the note of $75,000. The note is currently in default. | 75,000 | - | |||||||
In June 2013, the Company entered into a convertible note agreement with Jinsun, LLC, in the principal amount of $18,000 at an annual interest rate of 10%. The note is convertible at $0.05 per share and is due December 31, 2013. The Company recorded a discount related to the beneficial conversion feature of the note of $18,000. | 18,000 | - | |||||||
In September 2013, the Company entered into a convertible note agreement with Cinco NRG, LLC, in the principal amount of $25,000 at an annual interest rate of 10%. The note is convertible at the lesser of $0.04 per share or 50% of the closing price per share on the date of conversion. The note is due October 31, 2013. The Company recorded a discount related to the derivative liability at inception of $25,000. | 25,000 | - | |||||||
Less: discounts | (226,370 | ) | (269,500 | ) | |||||
Add: Amortization of discounts | 193,656 | 161,130 | |||||||
Total convertible notes payable – related party, net of discounts | 314,786 | 121,130 | |||||||
Total convertible notes payable – related party, net of discount | $ | 314,786 | $ | 121,130 |
Common_Stock
Common Stock | 6 Months Ended |
Sep. 30, 2013 | |
Common Stock [Abstract] | ' |
Common Stock | ' |
Note 5. Common Stock | |
In April 2013, the Company issued 305,000 shares of its common stock to the chief executive officer in lieu of paying him cash compensation and for unpaid expense reimbursements. The fair market value of the shares on the date of issuance was $61,000. | |
In April 2013, the Company issued 395,652 shares of its common stock to the chief financial officer upon the cashless exercise of a stock option. | |
In April 2013, the Company issued 300,000 shares of its common stock to an outside consultant. The total fair market value of the shares on the date of issuance was $69,000. | |
In May 2013, the Company issued a stock option to an outside consultant to purchase 400,000 shares of the Company’s common stock at a price of $0.04 per share, vesting immediately and exercisable over a three year term, as compensation for management consulting services. The fair market value of the option on the date of grant was $79,966 which was calculated using the Black-Scholes option pricing model. Variables used in the valuation include (1) discount rate of 0.19%, (2) expected life of three years, (3) expected volatility of 381% and (4) zero expected dividends. The options were exercised in May 2013. | |
In May 2013, the Company issued 33,000 shares of its common stock to an outside consultant in lieu of paying him cash compensation for accounting services. The fair market value of the shares on the date of issuance was $6,600. | |
In June 2013, the Company issued 900,000 shares of its common stock to the chief executive officer in lieu of paying him a cash bonus. The fair market value of the shares on the date of issuance was $45,000. | |
In June 2013, the Company issued 1,200,000 shares of its common stock to the chief financial officer for duties performed for the Company related the Company’s recent workover, farm-out and related oil and gas projects which were not contemplated in his employment contract. The fair market value of the shares on the date of issuance was $60,000. | |
In July 2013, under a settlement agreement, the Company entered into an agreement with its former production manager and his company whereby it will issue 150,000 shares of the Company’s common stock and a warrant to purchase 900,000 shares of the Company’s common stock and deliver a previously issued stock certificate for 500,000 shares on the Company’s restricted common stock. | |
In July 2013, the Company issued 25,000 shares of its common stock to an outside consultant in lieu of paying him cash compensation for accounting services. The fair market value of the shares on the date of issuance was $3,000. | |
In September 2013, the Company issued 10,016,200 shares to the chief executive officer in lieu of paying him cash compensation and for unpaid expense reimbursements. The fair market value of the shares on the date of issuance was $701,134. | |
In September 2013, the Company issued 5,500,000 shares to the chief financial officer in lieu of paying him cash compensation and for unpaid expense reimbursements. The fair market value of the shares on the date of issuance was $380,000. |
Stock_Options_and_Warrants
Stock Options and Warrants | 6 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Stock Options And Warrants [Abstract] | ' | ||||||||||||||||
Stock Options and Warrants | ' | ||||||||||||||||
Note 6. Stock Options and Warrants | |||||||||||||||||
In April 2012, the Company issued a stock option to its chief financial officer to purchase 700,000 shares of the Company’s common stock at a price of $0.10 per share, vesting immediately, with a five year term. The fair market value of the option on the date of grant was $154,000, and the Company expensed that amount related to these options in the year ended March 31, 2013. In April 2013, the stock option was cancelled and a new option was issued to purchase 700,000 shares of the Company’s stock at a price of $0.10 per share, vesting immediately, with a five year term. The fair market value of the option was $161,000 on the date of grant, and the Company expensed the incremental increase in the period ended September 30, 2013. The option was valued using the Black-Scholes option pricing model. Variables used in the valuation include (1) discount rate of 0.36%, (2) expected life of five years, (3) expected volatility of 400% and (4) zero expected dividends. The options were exercised in April 2013. | |||||||||||||||||
In July 2013, under a settlement agreement, the Company entered into an agreement with its former production manager and his company whereby it will issue 150,000 shares of the Company’s common stock and a warrant to purchase 900,000 shares of the Company’s common stock at a price of $0.10 per share with a three year term and deliver a previously issued stock certificate for 500,000 shares on the Company’s restricted common stock. The fair market value of the warrant was $71,921 on the date of grant. The warrant was valued using the Black-Scholes option pricing model. Variables used in the valuation include (1) discount rate of 0.17%, (2) expected life of three years, (3) expected volatility of 380% and (4) zero expected dividends. | |||||||||||||||||
The following table summarizes stock options issued and outstanding: | |||||||||||||||||
Options | Weighted | Aggregate | Weighted | ||||||||||||||
average | intrinsic | average | |||||||||||||||
exercise | value | remaining | |||||||||||||||
price | contractual | ||||||||||||||||
life (years) | |||||||||||||||||
Outstanding at March 31, 2013 | 700,000 | 0.1 | 294,000 | 4.79 | |||||||||||||
Granted | 1,100,000 | 0.08 | 191,000 | 4.79 | |||||||||||||
Exercised | (1,100,000 | ) | 0.08 | (191,000 | ) | 4.79 | |||||||||||
Forfeited or cancelled | (700,000 | ) | 0.1 | (294,000 | ) | 4.66 | |||||||||||
Expired | - | - | - | - | |||||||||||||
Outstanding at September 30, 2013 | - | $ | - | $ | - | - | |||||||||||
As of September 30, 2013, no options are exercisable. | |||||||||||||||||
The following table summarizes warrants issued and outstanding: | |||||||||||||||||
Warrants | Weighted | Aggregate | Weighted | ||||||||||||||
average | intrinsic | average | |||||||||||||||
exercise | value | remaining | |||||||||||||||
price | contractual | ||||||||||||||||
life (years) | |||||||||||||||||
Outstanding at March 31, 2013 | 46,000 | $ | 7.5 | $ | 333,966 | 3.1 | |||||||||||
Granted | 900,000 | 0.1 | 71,921 | 2.8 | |||||||||||||
Exercised | - | - | - | - | |||||||||||||
Forfeited or cancelled | - | - | - | - | |||||||||||||
Expired | - | - | - | - | |||||||||||||
Outstanding at September 30, 2013 | 946,000 | $ | 0.46 | $ | 405,887 | 2.79 | |||||||||||
As of September 30, 2013, warrants to purchase 946,000 shares of common stock are exercisable. |
Basis_of_Presentation_Policies
Basis of Presentation (Policies) | 6 Months Ended |
Sep. 30, 2013 | |
Accounting Policies [Abstract] | ' |
Principles of Consolidation | ' |
Principles of Consolidation | |
The consolidated financial statements include the accounts of Bering Exploration, Inc. and its wholly owned subsidiaries, Secure Voice Communications, Inc. (Texas) and Bering Operations, Inc. All significant inter-company accounts and transactions have been eliminated. | |
Use of Estimates | ' |
Use of Estimates | |
In preparing financial statements in conformity with accounting principles generally accepted in the United States of America, management is required to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Actual results could differ from those estimates. | |
Oil and Natural Gas Properties | ' |
Oil and Natural Gas Properties | |
We account for our oil and natural gas producing activities using the full cost method of accounting as prescribed by the United States Securities and Exchange Commission (SEC). Under this method, subject to a limitation based on estimated value, all costs incurred in the acquisition, exploration, and development of proved oil and natural gas properties, including internal costs directly associated with acquisition, exploration, and development activities, the costs of abandoned properties, dry holes, geophysical costs, and annual lease rentals are capitalized within a cost center on a country by country basis. Costs of production and general and administrative corporate costs unrelated to acquisition, exploration, and development activities are expensed as incurred. | |
Costs associated with unevaluated properties are capitalized as oil and natural gas properties but are excluded from the amortization base during the evaluation period. When we determine whether the property has proved recoverable reserves or not, or if there is an impairment, the costs are transferred into the amortization base and thereby become subject to amortization. We evaluate unevaluated properties for impairment at least annually. | |
Capitalized costs included in the amortization base are depleted using either the units of production method based on proved reserves where the Company operates the well or the percentage depletion method when the Company does not operate the well. Depletion is calculated using the capitalized costs included in the amortization base, including estimated asset retirement costs, plus the estimated future expenditures to be incurred in developing proved reserves, net of estimated salvage values. | |
The net book value of all capitalized oil and natural gas properties within a cost center, less related deferred income taxes, is subject to a full cost ceiling limitation which is calculated quarterly. Under the ceiling limitation, costs may not exceed an aggregate of the present value of future net revenues attributable to proved oil and natural gas reserves discounted at 10 percent using current prices, plus the lower of cost or market value of unproved properties included in the amortization base, plus the cost of unevaluated properties, less any associated tax effects. Any excess of the net book value, less related deferred tax benefits, over the ceiling is written off as expense. Impairment expense recorded in one period may not be reversed in a subsequent period even though higher oil and gas prices may have increased the ceiling applicable to the subsequent period. | |
Sales or other dispositions of oil and natural gas properties are accounted for as adjustments to capitalized costs, with no gain or loss recorded unless the ratio of cost to proved reserves would significantly change. During the period ended September 30, 2013, the Company recognized an impairment of $203,497. |
Debt_Table
Debt (Table) | 6 Months Ended | ||||||||
Sep. 30, 2013 | |||||||||
Debt Disclosure [Abstract] | ' | ||||||||
Schedule of Debt | ' | ||||||||
30-Sep-13 | 31-Mar-13 | ||||||||
Description | |||||||||
Notes payable | |||||||||
In June 2012, the Company financed the unpaid balance of a general liability insurance policy in the amount of $11,404 with a premium finance company. The financing agreement bears annual interest at 8% and is due in April 2013 and calls for monthly principal and interest payments of $1,193. The note is currently in default. | $ | 5,820 | $ | 5,820 | |||||
Convertible note payable – related party | |||||||||
In August 2012, the Company entered into a convertible note agreement with Jinsun, LLC, in the principal amount of $247,500 at an annual interest rate of 10%. The note is due August 31, 2013. The note is convertible into the Company’s common stock at the lesser of (i) 50% of the average of the lowest three (3) closing bid prices for the Company’s common stock during the ten (10) trading days prior to the Conversion Date or (ii) $0.05 per share. The Company recorded a discount of $247,500 related to the derivative liability at inception. The Company recorded amortization of $247,500 and payments of $40,000 related to the discount from inception of the loan through September 30, 2013. The note is currently in default. | $ | 207,500 | $ | 207,500 | |||||
In December 2012, the Company entered into a convertible note agreement with Jinsun, LLC, in the principal amount of $20,000 at an annual interest rate of 10%. The note is convertible at $0.05 per share and is due August 31, 2013. The Company recorded a discount related to the beneficial conversion feature of the note of $20,000. The note is currently in default. | 20,000 | 20,000 | |||||||
In January 2013, the Company entered into a convertible note agreement with Jinsun, LLC, in the principal amount of $2,000 at an annual interest rate of 10%. The note is convertible at $0.05 per share and is due August 31, 2013. The Company recorded a discount related to the beneficial conversion feature of the note of $2,000. The note is currently in default. | 2,000 | 2,000 | |||||||
In April 2013, the Company entered into a convertible note agreement with Pass the Biscuits, LLC, in the principal amount of $75,000 at an annual interest rate of 10%. The note is convertible at $0.05 per share and is due September 30, 2013. The Company recorded a discount related to the beneficial conversion feature of the note of $75,000. The note is currently in default. | 75,000 | - | |||||||
In June 2013, the Company entered into a convertible note agreement with Jinsun, LLC, in the principal amount of $18,000 at an annual interest rate of 10%. The note is convertible at $0.05 per share and is due December 31, 2013. The Company recorded a discount related to the beneficial conversion feature of the note of $18,000. | 18,000 | - | |||||||
In September 2013, the Company entered into a convertible note agreement with Cinco NRG, LLC, in the principal amount of $25,000 at an annual interest rate of 10%. The note is convertible at the lesser of $0.04 per share or 50% of the closing price per share on the date of conversion. The note is due October 31, 2013. The Company recorded a discount related to the derivative liability at inception of $25,000. | 25,000 | - | |||||||
Less: discounts | (226,370 | ) | (269,500 | ) | |||||
Add: Amortization of discounts | 193,656 | 161,130 | |||||||
Total convertible notes payable – related party, net of discounts | 314,786 | 121,130 | |||||||
Total convertible notes payable – related party, net of discount | $ | 314,786 | $ | 121,130 |
Stock_Options_and_Warrants_Tab
Stock Options and Warrants (Tables) | 6 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Stock Option [Member] | ' | ||||||||||||||||
summary of stock options/warrants issued and outstanding | ' | ||||||||||||||||
Options | Weighted | Aggregate | Weighted | ||||||||||||||
average | intrinsic | average | |||||||||||||||
exercise | value | remaining | |||||||||||||||
price | contractual | ||||||||||||||||
life (years) | |||||||||||||||||
Outstanding at March 31, 2013 | 700,000 | 0.1 | 294,000 | 4.79 | |||||||||||||
Granted | 1,100,000 | 0.08 | 191,000 | 4.79 | |||||||||||||
Exercised | (1,100,000 | ) | 0.08 | (191,000 | ) | 4.79 | |||||||||||
Forfeited or cancelled | (700,000 | ) | 0.1 | (294,000 | ) | 4.66 | |||||||||||
Expired | - | - | - | - | |||||||||||||
Outstanding at September 30, 2013 | - | $ | - | $ | - | - | |||||||||||
Warrant [Member] | ' | ||||||||||||||||
summary of stock options/warrants issued and outstanding | ' | ||||||||||||||||
Warrants | Weighted | Aggregate | Weighted | ||||||||||||||
average | intrinsic | average | |||||||||||||||
exercise | value | remaining | |||||||||||||||
price | contractual | ||||||||||||||||
life (years) | |||||||||||||||||
Outstanding at March 31, 2013 | 46,000 | $ | 7.5 | $ | 333,966 | 3.1 | |||||||||||
Granted | 900,000 | 0.1 | 71,921 | 2.8 | |||||||||||||
Exercised | - | - | - | - | |||||||||||||
Forfeited or cancelled | - | - | - | - | |||||||||||||
Expired | - | - | - | - | |||||||||||||
Outstanding at September 30, 2013 | 946,000 | $ | 0.46 | $ | 405,887 | 2.79 |
Basis_of_Presentation_Details
Basis of Presentation (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | |
Accounting Policies [Abstract] | ' | ' | ' | ' |
Impairment of oil and gas properties | $203,497 | ' | $203,497 | ' |
Going_Concern_Details
Going Concern (Details) (USD $) | Sep. 30, 2013 |
Going Concern: | ' |
Accumulated Losses | $13,821,000 |
Negative working capital | $755,000 |
Related_party_transactions_Det
Related party transactions (Details) (USD $) | Sep. 30, 2013 | Mar. 31, 2013 | Jun. 30, 2013 | Apr. 30, 2012 | Jun. 30, 2013 | Sep. 30, 2013 | Apr. 30, 2013 | Jun. 30, 2013 | Apr. 30, 2013 | Apr. 30, 2012 | Sep. 30, 2013 |
Convertible Notes Payable [Member] | Convertible Notes Payable [Member] | Chief Executive Officer [Member] | Chief Executive Officer [Member] | Chief Executive Officer [Member] | Chief Financial Officer [Member] | Chief Financial Officer [Member] | Chief Financial Officer [Member] | Chief Financial Officer [Member] | |||
Related Party Transaction [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Common Stock shares issed in lieu of paying him cash compensation and for unpaid expense reimbursements | 38,680,775 | 19,455,923 | ' | ' | 900,000 | 10,016,200 | 305,000 | ' | ' | ' | 5,500,000 |
Common stock sssued for services | ' | ' | ' | ' | 45,000 | ' | ' | 1,200,000 | ' | ' | 380,000 |
Fair market value of common stock shares,Issued | ' | ' | ' | ' | ' | $701,134 | $61,000 | $60,000 | ' | $154,000 | $161,000 |
Purchase of common stock | ' | ' | ' | ' | ' | ' | ' | ' | 700,000 | 700,000 | ' |
purchase of common stock, Price per share | ' | ' | ' | ' | ' | ' | ' | ' | $0.10 | $0.10 | ' |
Vesting term | ' | ' | ' | ' | ' | ' | ' | ' | ' | '5 years | ' |
Advance payments by shareholder for convertible note payable due | ' | ' | $18,000 | $75,000 | ' | ' | ' | ' | ' | ' | ' |
Interest rate on convertible note payable | ' | ' | 10.00% | 10.00% | ' | ' | ' | ' | ' | ' | ' |
Convertible price of common stock | ' | ' | $0.05 | $0.05 | ' | ' | ' | ' | ' | ' | ' |
Debt_Details
Debt (Details) (USD $) | Sep. 30, 2013 | Mar. 31, 2013 |
Debt Disclosure [Abstract] | ' | ' |
Note payable | $5,820 | $5,820 |
Convertible note payable - related party | ' | ' |
Convertible note payable - August 2012 | 207,500 | 207,500 |
Convertible note payable - December 2012 | 20,000 | 20,000 |
Convertible Notes Payable - January 2013 | 2,000 | 2,000 |
Convertible Notes Payable - April 2013 | 75,000 | ' |
Convertible Notes Payable - June 2013 | 18,000 | ' |
Convertible note payable - September 2013 | 25,000 | ' |
Less: discounts | -226,370 | -269,500 |
Add: Amortization of discounts | 193,656 | 161,130 |
Total convertible notes payable - related party, net of discounts | 314,786 | 121,130 |
Total convertible notes payable - related party, net of discount | $314,786 | $121,130 |
Debt_DetailsParentheticals
Debt (Details)-Parentheticals (USD $) | 6 Months Ended | ||||||
Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | |
Notes Payable [Member] | Convertible Notes Payable August 2012 [Member] | Convertible Notes Payable December 2012 [Member] | Convertible Notes Payable January 2013 [Member] | Convertible Notes Payable April 2013 [Member] | Convertible Notes Payable June 2013 [Member] | Convertible Notes Payable September 2013 [Member] | |
Jinsun Llc [Member] | Jinsun Llc [Member] | Jinsun Llc [Member] | Biscuits Llc [Member] | Jinsun Llc [Member] | Cinco Llc [Member] | ||
Bidprices | |||||||
Tradingdays | |||||||
Short-term Debt [Line Items] | ' | ' | ' | ' | ' | ' | ' |
Accrued Insurance | $11,404 | ' | ' | ' | ' | ' | ' |
Convertible note payable principal amount | ' | 247,500 | 20,000 | 2,000 | 75,000 | 18,000 | 25,000 |
Annual interest rate | 8.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% |
Periodic Payment | 1,193 | ' | ' | ' | ' | ' | ' |
Convertible debt due date | ' | 31-Aug-13 | 31-Aug-13 | 31-Aug-13 | 30-Sep-13 | 31-Dec-13 | 31-Oct-13 |
conversion percentage | ' | 50.00% | ' | ' | ' | ' | 50.00% |
Number pof Ccosing bid prices | ' | 3 | ' | ' | ' | ' | ' |
Number of trading days prior to the Conversion Date | ' | 10 | ' | ' | ' | ' | ' |
Conversion price per share | ' | $0.05 | $0.05 | $0.05 | $0.05 | $0.05 | $0.04 |
Discount on derivative liability | ' | 247,500 | ' | ' | ' | ' | 25,000 |
Amortization | ' | 247,500 | ' | ' | ' | ' | ' |
Amortization of Debt Discount | ' | 40,000 | ' | ' | ' | ' | ' |
Beneficial conversion feature of the note | ' | ' | $20,000 | $2,000 | $75,000 | $18,000 | ' |
Common_Stock_Details
Common Stock (Details) (USD $) | Sep. 30, 2013 | Mar. 31, 2013 | Jun. 30, 2013 | Apr. 30, 2012 | Jun. 30, 2013 | Sep. 30, 2013 | Apr. 30, 2013 | Jun. 30, 2013 | Apr. 30, 2013 | Apr. 30, 2012 | Sep. 30, 2013 | Jul. 31, 2013 | Apr. 30, 2013 | 31-May-13 | Jul. 31, 2013 | Apr. 30, 2013 | 31-May-13 |
Convertible Notes Payable [Member] | Convertible Notes Payable [Member] | Chief Executive Officer [Member] | Chief Executive Officer [Member] | Chief Executive Officer [Member] | Chief Financial Officer [Member] | Chief Financial Officer [Member] | Chief Financial Officer [Member] | Chief Financial Officer [Member] | Consultant [Member] | Consultant [Member] | Consultant [Member] | Common Stock [Member] | Stock Option [Member] | Stock Option [Member] | |||
Former Production Manager [Member] | Chief Executive Officer [Member] | Consultant [Member] | |||||||||||||||
Common Stock shares issed in lieu of paying him cash compensation and for unpaid expense reimbursements | 38,680,775 | 19,455,923 | ' | ' | 900,000 | 10,016,200 | 305,000 | ' | ' | ' | 5,500,000 | ' | ' | 33,000 | ' | ' | ' |
Stock option issed | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 395,652 | ' |
Common stock sssued for services | ' | ' | ' | ' | 45,000 | ' | ' | 1,200,000 | ' | ' | 380,000 | 25,000 | 300,000 | ' | ' | ' | ' |
Fair market value of common stock shares,Issued | ' | ' | ' | ' | ' | $701,134 | $61,000 | $60,000 | ' | $154,000 | $161,000 | $3,000 | $69,000 | $6,600 | $71,921 | ' | $79,966 |
Purchase of common stock | ' | ' | ' | ' | ' | ' | ' | ' | 700,000 | 700,000 | ' | ' | ' | ' | 900,000 | ' | 400,000 |
purchase of common stock, Price per share | ' | ' | ' | ' | ' | ' | ' | ' | $0.10 | $0.10 | ' | ' | ' | ' | $0.10 | ' | $0.04 |
Option exercisable term | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '3 years |
Vesting term | ' | ' | ' | ' | ' | ' | ' | ' | ' | '5 years | ' | ' | ' | ' | '3 years | ' | ' |
Advance payments by shareholder for convertible note payable due | ' | ' | 18,000 | 75,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Interest rate on convertible note payable | ' | ' | 10.00% | 10.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Convertible price of common stock | ' | ' | $0.05 | $0.05 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Discount rate | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0.36% | ' | ' | ' | ' | 0.17% | ' | 0.19% |
Expected life | ' | ' | ' | ' | ' | ' | ' | ' | ' | '5 years | ' | ' | ' | ' | '3 years | ' | '3 years |
Expected volatility | ' | ' | ' | ' | ' | ' | ' | ' | ' | 400.00% | ' | ' | ' | ' | 380.00% | ' | 381.00% |
Expected dividends | ' | ' | ' | ' | ' | ' | ' | ' | ' | $0 | ' | ' | ' | ' | $0 | ' | $0 |
Options exercised date | ' | ' | ' | ' | ' | ' | ' | ' | ' | 'The options were exercised in April 2013. | ' | ' | ' | ' | ' | ' | 'The options were exercised in May 2013. |
Number of common stock and warrant issed under settlement agreement | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 150,000 | ' | ' |
Restricted common stock issed | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 500,000 | ' | ' |
Stock_Options_and_Warrants_Det
Stock Options and Warrants (Details) (USD $) | 1 Months Ended | 6 Months Ended |
Mar. 31, 2013 | Sep. 30, 2013 | |
Stock Option [Member] | ' | ' |
Number of Options/Warrants | ' | ' |
Outstanding Options/Warrants, Beginning balance | ' | 700,000 |
Outstanding Options/Warrants, Granted | ' | 1,100,000 |
Outstanding Options/Warrants, Exercised | ' | -1,100,000 |
Outstanding Options/Warrants, Forfeited or cancelled | ' | -700,000 |
Outstanding Options/Warrants, Expired | ' | ' |
Outstanding Options/Warrants, Ending balance | ' | ' |
Weighted average exercise price | ' | ' |
Weighted average exercise price, Options /warrants Outstanding, Begining balance | ' | $0.10 |
Weighted average exercise price, Options /warrants, Granted | ' | $0.08 |
Weighted average exercise price, Options /warrants, Exercised | ' | $0.08 |
Weighted average exercise price, Options /warrants, Forfeited or cancelled | ' | $0.10 |
Weighted average exercise price, Options /warrants, Expired | ' | ' |
Weighted average exercise price, Options /warrants, Outstanding, Ending balance | ' | ' |
Aggregate intrinsic value, Options/warrants Outstanding, Beginning balance | ' | $294,000 |
Aggregate intrinsic value, Options/warrants, Granted | ' | $191,000 |
Aggregate intrinsic value, Options/warrants, Exercised | ' | -191,000 |
Aggregate intrinsic value, Options/warrants, Forfeited or cancelled | ' | -294,000 |
Aggregate intrinsic value, Options/warrants, Expired | ' | ' |
Aggregate intrinsic value, Options/warrants Outstanding, Endiing balance | ' | ' |
Weighted Average Remaining Contractual Life, Options/warrants, Ending balance | ' | '4 years 9 months 15 days |
Weighted Average Remaining Contractual Life, Options/warrants, Granted | ' | '4 years 9 months 15 days |
Weighted Average Remaining Contractual Life, Options/warrants, Exercised | ' | '4 years 9 months 15 days |
Weighted Average Remaining Contractual Life, Options/warrants, Forfeited or cancelled | ' | '4 years 7 months 28 days |
Warrant [Member] | ' | ' |
Number of Options/Warrants | ' | ' |
Outstanding Options/Warrants, Beginning balance | ' | 46,000 |
Outstanding Options/Warrants, Granted | ' | 900,000 |
Outstanding Options/Warrants, Exercised | ' | ' |
Outstanding Options/Warrants, Forfeited or cancelled | ' | ' |
Outstanding Options/Warrants, Expired | ' | ' |
Outstanding Options/Warrants, Ending balance | 46,000 | 946,000 |
Weighted average exercise price | ' | ' |
Weighted average exercise price, Options /warrants Outstanding, Begining balance | ' | $7.50 |
Weighted average exercise price, Options /warrants, Granted | ' | $0.10 |
Weighted average exercise price, Options /warrants, Exercised | ' | ' |
Weighted average exercise price, Options /warrants, Forfeited or cancelled | ' | ' |
Weighted average exercise price, Options /warrants, Expired | ' | ' |
Weighted average exercise price, Options /warrants, Outstanding, Ending balance | $7.50 | $0.46 |
Aggregate intrinsic value, Options/warrants Outstanding, Beginning balance | ' | 333,966 |
Aggregate intrinsic value, Options/warrants, Granted | ' | $71,921 |
Aggregate intrinsic value, Options/warrants, Exercised | ' | ' |
Aggregate intrinsic value, Options/warrants, Forfeited or cancelled | ' | ' |
Aggregate intrinsic value, Options/warrants, Expired | ' | ' |
Aggregate intrinsic value, Options/warrants Outstanding, Endiing balance | $333,966 | $405,887 |
Weighted Average Remaining Contractual Life | 'P3Y1M6D | 'P2Y9M15D |
Weighted Average Remaining Contractual Life, Options/warrants, Ending balance | ' | '2 years 9 months 15 days |
Weighted Average Remaining Contractual Life, Options/warrants, Granted | ' | '2 years 9 months 18 days |
Weighted Average Remaining Contractual Life, Options/warrants, Exercised | ' | '0 years |
Weighted Average Remaining Contractual Life, Options/warrants, Forfeited or cancelled | ' | '0 years |
Stock_Options_and_Warrants_Det1
Stock Options and Warrants (Details Textual) (Chief Financial Officer [Member], USD $) | 1 Months Ended | |||
Apr. 30, 2013 | Apr. 30, 2012 | Sep. 30, 2013 | Jun. 30, 2013 | |
Chief Financial Officer [Member] | ' | ' | ' | ' |
Stock Options And Warrants (Textual) | ' | ' | ' | ' |
Purchase of common stock | 700,000 | 700,000 | ' | ' |
purchase of common stock, Price per share | $0.10 | $0.10 | ' | ' |
Vesting term | ' | '5 years | ' | ' |
Fair market value of common stock shares,Issued | ' | $154,000 | $161,000 | $60,000 |
Options exercised date | ' | 'The options were exercised in April 2013. | ' | ' |
Discount rate | ' | 0.36% | ' | ' |
Expected life | ' | '5 years | ' | ' |
Expected volatility | ' | 400.00% | ' | ' |
Expected dividends | ' | $0 | ' | ' |