Document_and_Entity_Informatio
Document and Entity Information | 6 Months Ended | |
Apr. 30, 2014 | Jun. 12, 2014 | |
Document And Entity Information | ' | ' |
Entity Registrant Name | 'BLACKSANDS PETROLEUM, INC. | ' |
Entity Central Index Key | '0001308137 | ' |
Document Type | '10-Q | ' |
Document Period End Date | 30-Apr-14 | ' |
Amendment Flag | 'false | ' |
Current Fiscal Year End Date | '--10-31 | ' |
Is Entity a Well-known Seasoned Issuer? | 'No | ' |
Is Entity a Voluntary Filer? | 'No | ' |
Is Entity's Reporting Status Current? | 'Yes | ' |
Entity Filer Category | 'Smaller Reporting Company | ' |
Entity Common Stock, Shares Outstanding | ' | 17,703,792 |
Document Fiscal Period Focus | 'Q2 | ' |
Document Fiscal Year Focus | '2014 | ' |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Apr. 30, 2014 | Oct. 31, 2013 |
Current Assets: | ' | ' |
Cash and cash equivalents | $2,360,143 | $1,335,237 |
Accounts receivable | 192,227 | 417,597 |
Prepaid expenses | 20,223 | ' |
Total Current Assets | 2,572,593 | 1,752,834 |
Oil and gas property costs (successful efforts method of accounting) | ' | ' |
Proved | 2,062,139 | 2,077,872 |
Other assets | 50,010 | 50,312 |
Total Assets | 4,684,742 | 3,881,018 |
Current Liabilities: | ' | ' |
Note payable | 5,280,000 | 280,000 |
Accounts payable | 518,256 | 523,365 |
Accrued expenses | 3,463,885 | 3,121,900 |
Total Current Liabilities | 9,262,141 | 3,925,265 |
Notes Payable, net of discount of $570,933 and $1,329,581 | 2,029,067 | 4,270,419 |
Asset Retirement obligation | 45,985 | 649,233 |
Total Liabilities | 11,337,193 | 8,844,917 |
Stockholders' Deficiency: | ' | ' |
Preferred stock - $0.01 par value; 10,000,000 shares authorized: | ' | ' |
Series A - $.001 par value, 310,000 shares authorized, nil shares issued and outstanding | ' | ' |
Common stock - $0.001 par value; 100,000,000 shares authorized; 17,722,485 and 17,719,360 shares issued and outstanding at April 30, 2014 and October 31, 2013, respectively | 17,723 | 17,720 |
Additional paid-in capital | 23,754,310 | 23,726,191 |
Accumulated deficit | -30,424,484 | -28,707,810 |
Total Stockholders' Deficiency | -6,652,451 | -4,963,899 |
Total Liabilities and Stockholders' Deficiency | $4,684,742 | $3,881,018 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parenthetical) (USD $) | Apr. 30, 2014 | Oct. 31, 2013 |
Consolidated Balance Sheets Parenthetical | ' | ' |
Notes Payable, net of discount | $570,933 | $1,329,581 |
Preferred stock, par value | $0.01 | $0.01 |
Preferred stock, authorized shares | 10,000,000 | 10,000,000 |
Series A Preferred stock, par value | $0.00 | $0.00 |
Series A Preferred stock, authorized shares | 310,000 | 310,000 |
Series A Preferred stock, issued shares | 0 | 0 |
Series A Preferred stock, outstanding shares | 0 | 0 |
Common stock par value | $0.00 | $0.00 |
Common stock shares authorized | 100,000,000 | 100,000,000 |
Common stock shares issued | 17,722,485 | 17,719,360 |
Common stock shares outstanding | 17,722,485 | 17,719,360 |
Consolidated_Statements_of_Ope
Consolidated Statements of Operations (Unaudited) (USD $) | 3 Months Ended | 6 Months Ended | ||
Apr. 30, 2014 | Apr. 30, 2013 | Apr. 30, 2014 | Apr. 30, 2013 | |
Revenue: | ' | ' | ' | ' |
Oil and gas revenue | $268,403 | $473,180 | $596,700 | $835,166 |
Expenses: | ' | ' | ' | ' |
Selling, general and administrative | 374,348 | 424,163 | 715,983 | 771,430 |
Depreciation and depletion | 98,776 | 78,497 | 296,577 | 237,046 |
Accretion expense | 5,497 | 8,088 | 13,941 | 22,762 |
Lease operating expenses | 121,791 | 189,299 | 300,571 | 355,125 |
Impairment of oil and gas property interest | ' | ' | 2,219,813 | ' |
Total expenses | 600,412 | 700,047 | 3,546,885 | 1,386,363 |
Loss from Operations | -332,009 | -226,867 | -2,950,185 | -551,197 |
Other income and (expense): | ' | ' | ' | ' |
Interest expense | -663,747 | -313,426 | -1,172,204 | -595,507 |
Gain on sale of oil and gas properties | 23,653 | ' | 645,323 | ' |
Other income | 1,760,392 | ' | 1,760,392 | 27,763 |
Total other income (expense) | 1,120,298 | -313,426 | 1,233,511 | -567,744 |
(Loss) income before provision for income taxes | 788,289 | -540,293 | -1,716,674 | -1,118,941 |
Provision for income taxes | ' | ' | ' | ' |
Net (loss) income | 788,289 | -540,293 | -1,716,674 | -1,118,941 |
Preferred stock Dividends | ' | 50,000 | ' | 100,000 |
Net (loss) income attributable to common shareholders | $788,289 | ($590,293) | ($1,716,674) | ($1,218,941) |
(Loss) income per share attributable to common shareholders | ' | ' | ' | ' |
Basic | $0.04 | ($0.04) | ($0.10) | ($0.07) |
Diluted | $0.04 | ($0.04) | ($0.10) | ($0.07) |
Weighted Average Shares Outstanding | ' | ' | ' | ' |
Basic | 17,722,485 | 16,389,568 | 17,720,983 | 16,388,091 |
Diluted | 18,028,257 | 16,389,568 | 17,720,983 | 16,388,091 |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (Unaudited) (USD $) | 6 Months Ended | |
Apr. 30, 2014 | Apr. 30, 2013 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ' | ' |
Net loss | ($1,716,674) | ($1,118,941) |
Adjustments to reconcile net loss to net cash provided by operating activities: | ' | ' |
Impairment of oil and gas property costs | 2,219,813 | ' |
Equity compensation expense | 28,122 | 178,141 |
Amortization of debt discount | 758,648 | 247,602 |
Depreciation, depletion and accretion | 310,518 | 259,808 |
Gain on sale of oil and gas properties | -645,323 | ' |
Changes in operating assets and liabilities: | ' | ' |
Accounts receivable | 225,370 | 52,342 |
Prepaid expense and other current assets | -20,223 | 163,074 |
Accounts payable | 336,875 | 177,335 |
Net cash flows from operating activities | 1,497,126 | -40,639 |
CASH FLOWS FROM INVESTING ACTIVITIES | ' | ' |
Oil and gas property costs | -2,522,220 | -43,914 |
Proceeds from the sale of Cabeza Creek | 50,000 | ' |
Net cash flows from investing activities | -2,472,220 | -43,914 |
CASH FLOWS FROM FINANCING ACTIVITIES: | ' | ' |
Proceeds from notes payable | 2,000,000 | ' |
Net cash flows from financing activities | 2,000,000 | ' |
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | 1,024,906 | -84,553 |
CASH AND CASH EQUIVALENTS - Beginning of period | 1,335,237 | 1,160,320 |
CASH AND CASH EQUIVALENTS - End of period | 2,360,143 | 1,075,767 |
Cash paid for interest | 167,237 | 54,502 |
Cash paid for income taxes | ' | ' |
The_Company_and_Summary_of_Sig
The Company and Summary of Significant Accounting Policies | 6 Months Ended |
Apr. 30, 2014 | |
Notes to Financial Statements | ' |
Note 1. The Company and Summary of Significant Accounting Policies | ' |
Blacksands Petroleum, Inc. (hereinafter referred to as the “Company”) was incorporated in the State of Nevada on October 12, 2004. Since August 2007, the Company has been engaged in the exploration, development, exploitation and production of oil and natural gas. The Company sells its oil and gas products primarily to domestic pipelines and refineries. Its operations are presently focused in the States of Texas and New Mexico. | |
The accompanying unaudited interim financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America and rules of the Securities and Exchange Commission (“SEC”), and should be read in conjunction with the audited financial statements and notes thereto contained in annual report on Form 10-K for the year ended October 31, 2013 filed with the SEC on February 14, 2014. In the opinion of management, all adjustments, consisting of normal recurring adjustments, necessary for a fair presentation of financial position and the results of operations for the interim periods presented have been reflected herein. The results of operations for interim periods are not necessarily indicative of the results to be expected for the full year. Notes to the consolidated financial statements which would substantially duplicate the disclosure contained in the audited financial statements as reported in the 2013 annual report on Form 10-K have been omitted. | |
Oil and Gas Properties | |
The Company follows the successful efforts method of accounting for its oil and natural gas properties. Oil and gas properties are periodically assessed to determine whether they have been impaired. Any impairment in value of unproved properties is charged to exploration expense. The costs of unproved properties, which are determined to be productive, are transferred to prove oil and gas properties and amortized on an equivalent unit-of-production basis. Exploratory expenses, including geological and geophysical expenses and delay rentals for unevaluated oil and gas properties, are charged to expense as incurred. Exploratory drilling costs are initially capitalized as unproved property but charged to expense if and when the well is determined not to have found proved oil and gas reserves. In accordance with ASC No. 935, exploratory drilling costs are evaluated within a one-year period after the completion of drilling. For proved properties, we compare expected undiscounted future cash flows at a producing field level to the unamortized capitalized cost of the asset. If the future undiscounted cash flows, based on our estimate of future natural gas and crude oil prices, operating costs, anticipated production from proved reserves and other relevant date, are lower than the unamortized capitalized cost, the capitalized cost is reduced to fair value. Fair value is calculated by discounting the future cash flows at an appropriate risk-adjusted discount rate. | |
During the six months ended April 30, 2014, the Company impaired its oil and gas properties by $2,219,813 which is reflected in the consolidated statement of operations. | |
The Company recorded income of $1,760,392 in connection with the transfer of some of the Company’s interest in three wells to PIE Holdings, LP on which drilling commenced in November 2013. This income is included in the consolidated statements of operations as other income. | |
Going Concern | |
As shown in the accompanying consolidated financial statements, the Company has incurred an accumulated deficit of $30,424,484 through April 30, 2014. In addition, the Company had a working capital deficit of $6,689,548 and cash and cash equivalents of $2,360,143 at April 30, 2014. The Company commenced drilling on the three new wells in November 2013. These wells have been completed and the Company is awaiting the results of the completion. The Company has approximately $3.2 million in notes payable that are due on November 1, 2014. The Company does not currently have the cash to repay these notes. | |
The current rate of cash usage raises substantial doubt about the Company’s ability to continue as a going concern, absent the raising of additional capital, restructuring or extending the terms on its current debt and/or additional significant revenues from new oil production. The Company’s financial statements do not include any adjustments relating to the recoverability and classification of recorded assets, or the amounts and classification of liabilities that might be necessary in the event that the Company cannot continue in existence. |
Asset_Retirement_Obligation
Asset Retirement Obligation | 6 Months Ended | ||||
Apr. 30, 2014 | |||||
Notes to Financial Statements | ' | ||||
Note 2. Asset Retirement Obligation | ' | ||||
The following table summarizes the change in the asset retirement obligation (“ARO”) for the periods ended April 30, 2014: | |||||
Beginning balance at November 1 | $ | 649,233 | |||
Liabilities settled | -- | ||||
Liabilities incurred through acquisition of assets | -- | ||||
Liabilities settled through sale of assets | -617,189 | ||||
Accretion expense | 13,941 | ||||
Ending balance at April 30 | $ | 45,985 | |||
The ARO reflects the estimated present value of the amount of dismantlement, removal, site reclamation and similar activities associated with the Company’s oil and gas properties. Inherent in the fair value calculation of the ARO are numerous assumptions and judgments including the ultimate settlement amounts, inflation factors, credit adjusted discount rates, timing of settlement, and changes in the legal, regulatory, environmental and political environments. To the extent future revisions to these assumptions impact the fair value of the existing ARO liability, a corresponding adjustment is made to the oil and gas property balance. |
Contingencies
Contingencies | 6 Months Ended |
Apr. 30, 2014 | |
Notes to Financial Statements | ' |
Note 3. Contingencies | ' |
The Company, as an owner or lessee and operator of oil and gas properties, is subject to various federal, state and local laws and regulations relating to discharge of materials into, and protection of, the environment. These laws and regulations may, among other things, impose liability on the lessee under an oil and gas lease for the cost of pollution clean-up resulting from operations and subject the lessee to liability for pollution damages. In some instances, the Company may be directed to suspend or cease operations in the affected area. The Company maintains insurance coverage, which it believes is customary in the industry, although the Company is not fully insured against all environmental risks. The Company is not aware of any environmental claims existing as of April 30, 2014, which have not been provided for, covered by insurance or otherwise have a material impact on its financial position or results of operations. There can be no assurance, however, that current regulatory requirements will not change, or past noncompliance with environmental laws will not be discovered on the Company’s properties. |
Stockholders_Equity
Stockholders' Equity | 6 Months Ended | ||||||||
Apr. 30, 2014 | |||||||||
Notes to Financial Statements | ' | ||||||||
Note 4. Stockholders' Equity | ' | ||||||||
Series B Convertible Preferred Stock | |||||||||
In June 2014, the Company authorized 2,217,281 shares of preferred stock as non-voting Redeemable Convertible Series B Preferred Stock (“Series B Preferred”) (See Note 6). Each share of Series B Preferred is entitled to a dividend of 3% payable annually through the issuance of additional Series B Preferred. Each share of Series B Preferred may be converted at the option of the holder any time on or prior to May 30, 2017 into shares of the Company common stock at a conversion price of $1.00 per share, which is subject to adjustment. The Company has the right to redeem the shares, in whole or in part, any time after May 30, 2017 at $1.00 per share. | |||||||||
Stock Options | |||||||||
A summary of the Company’s stock option activity and related information is as follows: | |||||||||
Number of | Weighted Average Exercise Price | ||||||||
Shares | |||||||||
Outstanding at November 1, 2013 | 1,046,333 | $ | 3.12 | ||||||
Granted | - | - | |||||||
Exercised | - | - | |||||||
Cancelled | - | - | |||||||
Outstanding at April 30, 2014 | 1,046,333 | $ | 3.12 | ||||||
Exercisable at April 30, 2014 | 1,002,333 | $ | 3.07 | ||||||
During the six months ended April 30, 2014 and 2013, the Company recorded stock-based compensation of $28,122 and $178,141, respectively, as general and administrative expenses. At April 30, 2014, the weighted average remaining life of the stock options is 6.27 years. The unamortized amount of stock-based compensation at April 30, 2014 was $41,228. This cost is expected to be recognized over a weighted average period of 0.47 years. | |||||||||
Warrants | |||||||||
A summary of the Company’s warrant activity and related information is as follows: | |||||||||
Number of | Weighted Average Exercise Price | ||||||||
Shares | |||||||||
Outstanding at November 1, 2013 | 2,057,268 | $ | 4.5 | ||||||
Granted | - | - | |||||||
Exercised | - | - | |||||||
Expired | 1,035,434 | - | |||||||
Outstanding at April 30, 2014 | 1,021,834 | $ | 4.5 | ||||||
Exercisable at April 30, 2014 | 1,021,834 | $ | 4.5 |
Sale_Of_Cabeza_Creek_Field
Sale Of Cabeza Creek Field | 6 Months Ended | ||||||||
Apr. 30, 2014 | |||||||||
Notes to Financial Statements | ' | ||||||||
Note 5. Sale of Cabeza Creek Field | ' | ||||||||
In January 2014, the Company sold its interest in all of the wells the Cabeza Creek Field for all depths from the surface to 8,500 feet below the surface in exchange for $50,000 and the assumption of all future liabilities associated with the plugging and abandoning of all wells in the Cabeza Creek Field ($617,189). | |||||||||
The following is a summary of the pro forma information for the six months ended April 30, 2014 and 2013 assuming the sale of the Cabeza Creek field had occurred as of the beginning of each fiscal year presented: | |||||||||
2014 | 2013 | ||||||||
Oil and gas revenues | $ | 596,700 | $ | 721,113 | |||||
Expenses | |||||||||
Selling, general and administrative | 715,983 | 771,430 | |||||||
Depreciation and depletion | 296,577 | 180,520 | |||||||
Accretion | 13,941 | 2,777 | |||||||
Lease operating expense | 300,571 | 306,628 | |||||||
Impairment of oil and gas property interest | 2,219,813 | -- | |||||||
Total expenses | 3,546,885 | 1,261,355 | |||||||
Loss from operations | (2,950,185 | ) | (540,242 | ) | |||||
Other income (expense) | 588,188 | (567,744 | ) | ||||||
Net loss | $ | (2,361,997 | ) | $ | (1,107,986 |
Subscription_Agreement
Subscription Agreement | 6 Months Ended |
Apr. 30, 2014 | |
Notes to Financial Statements | ' |
Note 6. Subscription Agreement | ' |
On June 6, 2014, the Company entered into a subscription agreement with Pacific LNG Operations Ltd., a company incorporated in the British Virgin Islands (“Pacific LNG”), whereby the Company issued to Pacific LNG, in exchange for $2,000,000, a (i) $1,500,000 principal face amount 5% Convertible Debenture (“Debenture”) convertible into shares of Series B Preferred Stock (as hereinafter defined) at a conversion price of $1.00 per share and (ii) 500,000 shares of Series B Convertible Preferred Stock (“Series B Preferred Stock”). | |
The Debenture accrues interest at the rate of 5% per annum, payable semi-annually in arrears, and matures on June 6, 2017. Pacific LNG has the right, at any time prior to June 6, 2015, to convert the outstanding principal and interest, if any, of the Debenture into shares of Series B Preferred Stock at a price of $1.00 per share of Series B Preferred Stock. | |
Each share of Series B Preferred Stock has a stated value of $1.00 (“Stated Value”) and accrues a dividend of 3% of the Stated Value per annum, which is payable in additional shares of Series B Preferred Stock annually on December 31 in arrears. Each share of Series B Preferred Stock may be converted at any time on or prior to May 30, 2017 into such number of shares of the Company’s common stock equal to the Stated Value divided by $1.00 per share. The Company has the right, at any time after May 30, 2017, to redeem the Series B Preferred Stock at a price of $1.00 per share. | |
On May 30, 2014, the Board of Directors (“Board”) of the Company approved the filing of a Certificate of Designation of Preferences, Rights and Limitations of Series B Convertible Preferred Stock (the “Certificate of Designation”), which was filed with and accepted by the Secretary of State of Nevada on June 6, 2014. Pursuant to the Certificate of Designation, the Company established a new series of 2,217,281 shares of the Series B Preferred Stock. | |
Under the terms set forth in the Certificate of Designation, the holders of Series B Preferred stock have the exclusive right, voting separately as a class, to elect one director of the Board (“Series B Director”), who must be reasonably acceptable to the Company. The Series B Director must be appointed by the holders of a majority of the issued and outstanding shares of Series B Preferred Stock. | |
The_Company_and_Summary_of_Sig1
The Company and Summary of Significant Accounting Policies (Policies) | 6 Months Ended |
Apr. 30, 2014 | |
Company And Summary Of Significant Accounting Policies Policies | ' |
Oil and Gas Properties | ' |
The Company follows the successful efforts method of accounting for its oil and natural gas properties. Oil and gas properties are periodically assessed to determine whether they have been impaired. Any impairment in value of unproved properties is charged to exploration expense. The costs of unproved properties, which are determined to be productive, are transferred to prove oil and gas properties and amortized on an equivalent unit-of-production basis. Exploratory expenses, including geological and geophysical expenses and delay rentals for unevaluated oil and gas properties, are charged to expense as incurred. Exploratory drilling costs are initially capitalized as unproved property but charged to expense if and when the well is determined not to have found proved oil and gas reserves. In accordance with ASC No. 935, exploratory drilling costs are evaluated within a one-year period after the completion of drilling. For proved properties, we compare expected undiscounted future cash flows at a producing field level to the unamortized capitalized cost of the asset. If the future undiscounted cash flows, based on our estimate of future natural gas and crude oil prices, operating costs, anticipated production from proved reserves and other relevant date, are lower than the unamortized capitalized cost, the capitalized cost is reduced to fair value. Fair value is calculated by discounting the future cash flows at an appropriate risk-adjusted discount rate. | |
During the six months ended April 30, 2014, the Company impaired its oil and gas properties by $2,219,813 which is reflected in the consolidated statement of operations. | |
The Company recorded income of $1,760,392 in connection with the transfer of some of the Company’s interest in three wells to PIE Holdings, LP on which drilling commenced in November 2013. This income is included in the consolidated statements of operations as other income. | |
Going Concern | ' |
As shown in the accompanying consolidated financial statements, the Company has incurred an accumulated deficit of $30,424,484 through April 30, 2014. In addition, the Company had a working capital deficit of $6,689,548 and cash and cash equivalents of $2,360,143 at April 30, 2014. The Company commenced drilling on the three new wells in November 2013. These wells have been completed and the Company is awaiting the results of the completion. The Company has approximately $3.2 million in notes payable that are due on November 1, 2014. The Company does not currently have the cash to repay these notes. | |
The current rate of cash usage raises substantial doubt about the Company’s ability to continue as a going concern, absent the raising of additional capital, restructuring or extending the terms on its current debt and/or additional significant revenues from new oil production. The Company’s financial statements do not include any adjustments relating to the recoverability and classification of recorded assets, or the amounts and classification of liabilities that might be necessary in the event that the Company cannot continue in existence. |
Asset_Retirement_Obligation_Ta
Asset Retirement Obligation (Tables) | 6 Months Ended | ||||
Apr. 30, 2014 | |||||
Asset Retirement Obligation Tables | ' | ||||
Change in the asset retirement obligation | ' | ||||
The following table summarizes the change in the asset retirement obligation (“ARO”) for the periods ended April 30, 2014: | |||||
Beginning balance at November 1 | $ | 649,233 | |||
Liabilities settled | -- | ||||
Liabilities incurred through acquisition of assets | -- | ||||
Liabilities settled through sale of assets | -617,189 | ||||
Accretion expense | 13,941 | ||||
Ending balance at April 30 | $ | 45,985 |
Stockholders_Equity_Tables
Stockholders Equity (Tables) | 6 Months Ended | ||||||||
Apr. 30, 2014 | |||||||||
Stock Options Activity | ' | ||||||||
A summary of the Company’s stock option activity and related information is as follows: | |||||||||
Number of | Weighted Average Exercise Price | ||||||||
Shares | |||||||||
Outstanding at November 1, 2013 | 1,046,333 | $ | 3.12 | ||||||
Granted | - | - | |||||||
Exercised | - | - | |||||||
Cancelled | - | - | |||||||
Outstanding at April 30, 2014 | 1,046,333 | $ | 3.12 | ||||||
Exercisable at April 30, 2014 | 1,002,333 | $ | 3.07 | ||||||
Warrant [Member] | ' | ||||||||
Stock Options Activity | ' | ||||||||
A summary of the Company’s warrant activity and related information is as follows: | |||||||||
Number of | Weighted Average Exercise Price | ||||||||
Shares | |||||||||
Outstanding at November 1, 2013 | 2,057,268 | $ | 4.5 | ||||||
Granted | - | - | |||||||
Exercised | - | - | |||||||
Expired | 1,035,434 | - | |||||||
Outstanding at April 30, 2014 | 1,021,834 | $ | 4.5 | ||||||
Exercisable at April 30, 2014 | 1,021,834 | $ | 4.5 |
Sale_of_Cabeza_Creek_Field_Tab
Sale of Cabeza Creek Field (Tables) | 6 Months Ended | ||||||||
Apr. 30, 2014 | |||||||||
Notes to Financial Statements | ' | ||||||||
Sale of Cabeza Creek Field | ' | ||||||||
The following is a summary of the pro forma information for the six months ended April 30, 2014 and 2013 assuming the sale of the Cabeza Creek field had occurred as of the beginning of each fiscal year presented: | |||||||||
2014 | 2013 | ||||||||
Oil and gas revenues | $ | 596,700 | $ | 721,113 | |||||
Expenses | |||||||||
Selling, general and administrative | 715,983 | 771,430 | |||||||
Depreciation and depletion | 296,577 | 180,520 | |||||||
Accretion | 13,941 | 2,777 | |||||||
Lease operating expense | 300,571 | 306,628 | |||||||
Impairment of oil and gas property interest | 2,219,813 | -- | |||||||
Total expenses | 3,546,885 | 1,261,355 | |||||||
Loss from operations | (2,950,185 | ) | (540,242 | ) | |||||
Other income (expense) | 588,188 | (567,744 | ) | ||||||
Net loss | $ | (2,361,997 | ) | $ | (1,107,986 | ) |
The_Company_and_Summary_of_Sig2
The Company and Summary of Significant Accounting Policies (Details Narrative) (USD $) | 3 Months Ended | 6 Months Ended | |||
Apr. 30, 2014 | Apr. 30, 2013 | Apr. 30, 2014 | Apr. 30, 2013 | Oct. 31, 2013 | |
Company And Summary Of Significant Accounting Policies Details Narrative | ' | ' | ' | ' | ' |
Impairment of oil and gas property interest | ' | ' | $2,219,813 | ' | ' |
Other income | 1,760,392 | ' | 1,760,392 | 27,763 | ' |
Accumulated deficit | 30,424,484 | ' | 30,424,484 | ' | 28,707,810 |
Working capital deficit | 6,689,548 | ' | 6,689,548 | ' | ' |
Cash and cash equivalents | $2,360,143 | ' | $2,360,143 | ' | $1,335,237 |
Asset_Retirement_Obligation_De
Asset Retirement Obligation (Details) (USD $) | 6 Months Ended |
Apr. 30, 2014 | |
Asset Retirement Obligation Details | ' |
Beginning balance | $649,233 |
Liabilities settled | ' |
Liabilities incurred through acquisition of assets | ' |
Liabilities transferred through sale of assets | -617,189 |
Accretion expense | 13,941 |
Ending balance | $45,985 |
Stockholders_Equity_Details
Stockholders' Equity (Details) (USD $) | 6 Months Ended |
Apr. 30, 2014 | |
Stock Option [Member] | ' |
Number of Shares | ' |
Beginning Balance | 1,046,333 |
Granted | ' |
Exercised | ' |
Cancelled | ' |
Ending Balance | 1,046,333 |
Exercisable at April 30, 2014 | 1,002,333 |
Weighted Average Exercise Price | ' |
Beginning Balance | $3.12 |
Granted | ' |
Exercised | ' |
Cancelled | ' |
Ending Balance | $3.12 |
Exercisable at April 30, 2014 | $3.07 |
Warrant [Member] | ' |
Number of Shares | ' |
Beginning Balance | 2,057,268 |
Granted | ' |
Exercised | ' |
Cancelled | 1,035,434 |
Ending Balance | 1,021,834 |
Exercisable at April 30, 2014 | 1,021,834 |
Weighted Average Exercise Price | ' |
Beginning Balance | $4.50 |
Granted | ' |
Exercised | ' |
Cancelled | ' |
Ending Balance | $4.50 |
Exercisable at April 30, 2014 | $4.50 |
Stockholders_Equity_Details_Na
Stockholders' Equity (Details Narrative) (USD $) | 6 Months Ended | |
Apr. 30, 2014 | Apr. 30, 2013 | |
Stockholders Equity Details Narrative | ' | ' |
Stock-based compensation expenses | $28,122 | $178,141 |
Weighted average remaining life of the stock options | '6 years 3 months 7 days | ' |
Total unrecognized compensation cost related to the stock options granted | $41,228 | ' |
Weighted average expected cost | '5 months 19 days | ' |
Sale_of_Cabeza_Creek_Field_Det
Sale of Cabeza Creek Field (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||
Apr. 30, 2014 | Apr. 30, 2013 | Apr. 30, 2014 | Apr. 30, 2013 | |
Sale Of Cabeza Creek Field Details | ' | ' | ' | ' |
Oil and gas revenues | ' | ' | $596,700 | $721,113 |
Selling, general and administrative | 374,348 | 424,163 | 715,983 | 771,430 |
Depreciation and depletion | ' | ' | 296,577 | 180,520 |
Accretion | ' | ' | 13,941 | 2,777 |
Lease operating expense | ' | ' | 300,571 | 306,628 |
Impairment of oil and gas property interest | ' | ' | 2,219,813 | ' |
Total expenses | ' | ' | 3,546,885 | 1,261,355 |
Loss from operations | ' | ' | -2,950,185 | -540,242 |
Other income (expense) | ' | ' | 588,188 | -567,744 |
Net loss | ' | ' | ($2,361,997) | ($1,107,986) |