Jayhawk Energy (JYHW) 10-K/A 22 Feb 16 2015 FY Annual report (amended) Financial data

Document and Entity Information

Document and Entity Information - USD ($)	12 Months Ended
	Sep. 30, 2015	Jan. 21, 2016	Mar. 31, 2015
Document and Entity Information:
Entity Registrant Name	JayHawk Energy, Inc.
Document Type	10-K
Document Period End Date	Sep. 30, 2015
Trading Symbol	jyhw
Amendment Flag	false
Entity Central Index Key	1,308,710
Current Fiscal Year End Date	--09-30
Entity Common Stock, Shares Outstanding		199,875,629
Entity Public Float			$ 1,081,055
Entity Filer Category	Smaller Reporting Company
Entity Current Reporting Status	Yes
Entity Voluntary Filers	No
Entity Well-known Seasoned Issuer	No
Document Fiscal Year Focus	2,015
Document Fiscal Period Focus	FY
Entity Incorporation, State Country Name	Colorado
Entity Incorporation, Date of Incorporation	Apr. 5, 2004
Entity Information, Former Legal or Registered Name	Bella Trading Company, Inc.
Entity Information, Date to Change Former Legal or Registered Name	Jun. 21, 2007

Balance Sheets

Balance Sheets - USD ($)		Sep. 30, 2015	Sep. 30, 2014
CURRENT ASSETS
Cash			$ 177,260
Trade accounts receivable			55,528
Other current assets		$ 13,342	19,490
TOTAL CURRENT ASSETS		13,342	252,278
PROPERTY AND EQUIPMENT
Unproved properties, net	[1]	$ 185,523	196,144
Proved properties, net	[2]		82,012
NET PROPERTY AND EQUIPMENT		$ 185,523	278,156
RECLAMATION BONDS AND OTHER LONG TERM ASSETS		150,450	151,846
TOTAL ASSETS		349,315	682,280
CURRENT LIABILITIES
Accounts payable		804,965	775,227
Due to working and royalty interests		472,993	596,442
Accrued interest related party		251,579
Other payables, interest and taxes accrued		89,014	$ 446,321
Convertible line of credit related party	[3]	170,285
Convertible debentures related party	[4]	470,439	$ 1,038,687
Current portion of promissory notes payable	[5]	264,582	30,814
TOTAL CURRENT LIABILITIES		2,523,857	2,887,491
LONG TERM LIABILITIES
Convertible debenture, net	[4]	53,333	$ 40,000
Convertible debentures, related party, net	[4]	106,667
Promissory notes payable	[5]	42,293	$ 5,828
Promissory note payable, related party	[5]	$ 110,781
Conversion option derivative	[6]		$ 676,533
Warrant derivative liability	[6]	$ 4,861	24,697
Asset retirement obligation		245,792	160,636
TOTAL LONG TERM LIABILITIES		563,727	907,694
TOTAL LIABILITIES		3,087,584	3,795,185
COMMITMENTS AND CONTINGENCIES	[7]	0	0
STOCKHOLDERS' DEFICIT
Preferred Stock		0	0
Common Stock	[8]	1,999	804
Additional paid in capital		24,998,897	22,393,180
Accumulated deficit		(27,739,165)	(25,506,889)
TOTAL STOCKHOLDERS' DEFICIT		(2,738,269)	(3,112,905)
TOTAL LIABILITIES AND STOCKHOLDERS' DEFICIT		$ 349,315	$ 682,280
[1]	Note 4
[2]	Note 5
[3]	Note 7
[4]	Note 8
[5]	Note 10
[6]	Note 9
[7]	Note 18
[8]	Notes 12 and 20

Statement of Financial Position

Statement of Financial Position - Parenthetical - $ / shares	Sep. 30, 2015	Sep. 30, 2014
Statement of financial position
Preferred Stock, Par Value	$ 0.001	$ 0.001
Preferred Stock, Shares Authorized	10,000,000	10,000,000
Preferred Stock, Shares Issued	0	0
Preferred Stock, Shares Outstanding	0	0
Common Stock, Par Value	$ 0.001	$ 0.001
Common Stock, Shares Authorized	200,000,000	200,000,000
Common Stock, Shares Issued	1,998,756	803,758
Common Stock, Shares Outstanding	1,998,756	803,758

Consolidated Statements of Oper

Consolidated Statements of Operations - USD ($)	12 Months Ended
	Sep. 30, 2015	Sep. 30, 2014
REVENUE
Oil sales	$ 244,283	$ 394,925
TOTAL GROSS REVENUE	244,283	394,925
OPERATING EXPENSES
Production costs - oil	383,808	230,238
Production costs - natural gas	15,635	8,144
Depreciation, depletion and amortization	122,806	257,097
Loss on leases and equipment	39,765
Accretion of asset retirement obligation	15,217	14,603
North Dakota reclamation costs	90,675	280,361
General and administrative	518,931	424,752
TOTAL OPERATING EXPENSES	1,186,837	1,215,195
OPERATING LOSS	(942,554)	(820,270)
OTHER INCOME (EXPENSE)
Interest expense	(161,204)	(137,503)
Interest expense, related party	(49,873)
Financing costs	(727,845)
Amortization of debt discount	120,000	40,000
Gain on settlement of liabilities	(317,303)
Loss on extinguishment of debt	957,528	383,951
Gain (loss) on change in fair value of conversion option derivative	(389,589)	115,029
Gain on change in fair value of warrant derivative	(19,836)	(16,856)
TOTAL OTHER INCOME (EXPENSE)	(1,289,722)	(659,627)
LOSS BEFORE INCOME TAX	(2,232,276)	(1,479,897)
Provision for income taxes	0	0
Net Loss	$ (2,232,276)	$ (1,479,897)
Basic and diluted loss per share	$ (1.71)	$ (1.85)
Basic and diluted weighted average numbers shares outstanding	1,303,405	799,731

Statement of Changes in Stockho

Statement of Changes in Stockholders' Equity (Deficit) - USD ($)		Common Stock	Additional Paid-In Capital	Accumulated Deficit	Total
Balance at Sep. 30, 2013		$ 769	$ 21,733,412	$ (24,026,992)	$ (2,292,811)
Shares issued at Sep. 30, 2013		768,758
Issuance of common shares for conversion of debentures, value		$ 35	34,965		35,000
Issuance of common shares for conversion of debentures, stock		35,000
Proceeds from convertible debentures allocated to conversion option			600,000		600,000
Stock based compensation			24,803		24,803
Net Loss				(1,479,897)	(1,479,897)
Balance at Sep. 30, 2014		$ 804	22,393,180	$ (25,506,889)	(3,112,905)
Shares issued at Sep. 30, 2014		803,758
Extinguishment of conversion option derivative			1,244,472		1,244,472
Issuance of warrants in consideration of default waiver	[1]		167,441		167,441
Issuance of common shares for conversion of debentures, value		$ 1,187	1,186,312		1,187,499
Issuance of common shares for conversion of debentures, stock		1,187,498
Issuance of common shares for settlement of liabilities, value		$ 8	7,492		7,500
Issuance of common shares for settlement of liabilities, stock		7,500
Net Loss				$ (2,232,276)	(2,232,276)
Balance at Sep. 30, 2015		$ 1,999	$ 24,998,897	$ (27,739,165)	$ (2,738,269)
Shares issued at Sep. 30, 2015		1,998,756
[1]	Note 15

Consolidated Statements of Cash

Consolidated Statements of Cash Flows - USD ($)		12 Months Ended
		Sep. 30, 2015		Sep. 30, 2014
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss		$ (2,232,276)		$ (1,479,897)
Adjustments to reconcile net loss to cash used by operating activities:
Depreciation, depletion and amortization		122,806		257,097
Accretion of asset retirement obligation		15,217		14,603
Stock based compensation				24,803
Non-cash financing costs		727,845
Amortization of debt discount		120,000		40,000
Loss on leases and equipment		39,765
Loss on extinguishment and conversion of debt		957,528		383,951
(Gain) loss on change in fair value of conversion option derivative		(389,589)		115,029
Gain on change in fair value of warrant derivative		(19,836)		(16,856)
Gain on settlement of liabilities		(317,303)
Change in operating assets and liabilities:
Trade accounts receivable		55,528		12,969
Prepaid expenses, and other current assets		6,148		(9,191)
Accounts payable		137,349		204,120
Accrual for North Dakota reclamation				(330,000)
Due to working and royalty interest holders		51,976		92,408
Accrued interest, related party		63,389
Other payables, interest and taxes accrued		343,721		183,029
Net cash used by operating activities		(317,732)		(507,935)
CASH FLOWS FROM INVESTING ACTIVITIES:
Additions to proved properties				(11,528)
Reclamation bonds and long term assets		(104)		(110)
Net cash used by investing activities		(104)		(11,638)
CASH FLOWS FROM FINANCING ACTIVITIES:
Payments on promissory notes		(29,709)
Borrowings under convertible line of credit, related party		170,285
Proceeds from convertible debentures				600,000
Net cash provided by financing activities		140,576		600,000
Net increase (decrease) in cash		(177,260)		80,427
CASH AT BEGINNING OF YEAR		$ 177,260	[1]	96,833
CASH AT END OF YEAR	[1]			$ 177,260
[1]	Note 16, Supplemental Disclosures of Cash Flow

Note 1 - Organization and Descr

Note 1 - Organization and Description of Business	12 Months Ended
	Sep. 30, 2015
Notes
Note 1 - Organization and Description of Business	NOTE 1 – ORGANIZATION AND DESCRIPTION OF BUSINESS JayHawk Energy, Inc. (the Company or JayHawk) and its wholly owned subsidiary, Jayhawk Gas Transportation Company, are engaged in the acquisition, exploration, development, production and sale of natural gas, crude oil and natural gas liquids primarily from conventional reservoirs within North America. The Company incorporated in Colorado on April 5, 2004 as Bella Trading Company, Inc. During the third quarter ending June 30, 2007, the Company changed management and entered the oil and gas business, and ceased all activity in retail jewelry. On June 21, 2007, the Company changed its name to JayHawk Energy, Inc. Since then, the Company has devoted its efforts principally to the raising of capital, organizational infrastructure development, the acquisition of oil and gas properties and exploration activities in Kansas and North Dakota. The Company also formed a wholly owned subsidiary to transport natural gas in Kansas called JayHawk Gas Transportation Corporation. On September 1, 2015 the Company disposed of all of its interests, tangible or intangible, in and to the assets held or owned by the Company in the State of North Dakota. The disposition of the Company’s North Dakota assets was completed through an asset assignment to a related party. The Company's strategy is to increase shareholder value through strategic acquisition and development of oil and gas properties, primarily in North America. As of September 30, 2015, JayHawk Energy remains an early stage oil and gas exploration company. The Company's immediate business plan is to focus its efforts on identifying oil and gas assets for future acquisition and development. The Company is actively focused on shifting to a liquids-rich development focus, primarily in established oil and gas producing regions of North America. The Company's main priority will be given to projects with near term cash flow potential and proven, producing oil and gas reserves. Future acquisition and development activities will be determined by the Company's ability to access sources of sufficient funding. On October 13, 2015, the Company changed its domicile from the state of Colorado to the state of Nevada. (Note 20).

Note 2 - Summary of Significant

Note 2 - Summary of Significant Accounting Policies	12 Months Ended
	Sep. 30, 2015
Notes
Note 2 - Summary of Significant Accounting Policies	NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation This summary of significant accounting policies is presented to assist in understanding the financial statements. These consolidated financial statements as of and for the years ended September 30, 2015 and 2014 are prepared using the accrual basis of accounting in accordance with generally accepted accounting principles in the United States of America ("US GAAP") and have been consistently applied in the preparation of the Consolidated Financial Statements. Principles of Consolidation The consolidated financial statements include the accounts of the Company and its wholly owned subsidiary JayHawk Gas Transportation Company after elimination of the intercompany accounts and transactions. Going Concern As shown in the accompanying consolidated financial statements, the Company has incurred operating losses since inception. As of September 30, 2015, the Company has limited financial resources with which to achieve the objectives and obtain profitability and positive cash flows. As shown in the accompanying balance sheets and statements of operations, the Company has an accumulated deficit of $27,739,165 and a net loss of $2,232,276 for the year ended September 30, 2015, and as of that date the Company's current liabilities exceeded its current assets by $2,510,515. Achievement of the Company's objectives will be dependent upon the ability to obtain additional financing, to locate profitable energy properties and generate revenue from current and planned business operations, and control costs. The Company plans to fund its future operations by joint venturing, obtaining additional financing from investors, and/or lenders, and attaining additional commercial production. However, there is no assurance that the Company will be able to achieve these objectives, therefore substantial doubt about its ability to continue as a going concern exists. The financial statements do not include adjustments relating to the recoverability of recorded assets nor the implications of associated bankruptcy costs should the Company be unable to continue as a going concern. Reverse Stock Split Subsequent to September 30, 2015, pursuant to a majority shareholder consent, a majority of the shareholders of the Company approved a one-for-one hundred reverse stock split of the Company’s common stock. After the reverse stock split, each holder of record will hold one share of common stock for every 100 shares held immediately prior to the effective date. As a result of the reverse stock split, the number of shares underlying outstanding stock options and warrants and the related exercise prices will be adjusted to reflect the change in the share price and outstanding shares on the date of the reverse stock split. The effect of fractional shares is not material. Following the effective date of the reverse stock split, the par value of the common stock will remain at $0.001. As a result, the Company has reduced the common stock in the consolidated balance sheets and statement of changes in stockholders’ equity included herein on a retrospective basis for all periods presented, with a corresponding increase to additional paid-in capital. All share and per-share amounts and related disclosures have been retrospectively adjusted for all periods to reflect the one-for-one hundred reverse stock split Use of Estimates The preparation of financial statements in accordance with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities as of the date of the consolidated financial statements and the reported amounts of revenues and expenses during the respective reporting periods. Significant areas requiring the use of management assumptions and estimates relate to asset impairments, asset retirement obligations, stock-based compensation, income taxes and derivatives. Actual results may differ from these estimates and assumptions which could have a material effect on the Company's reported financial position and results of operations. Income or Loss Per Common Share Basic earnings per share ("EPS") is computed as net income (loss) available to common stockholders divided by the weighted average number of common shares outstanding for the period. Diluted EPS reflects the potential dilution that could occur from common shares issuable through stock options, warrants, and other convertible securities. The dilutive effect of convertible and outstanding securities as of September 30, 2015 and 2014 would be as follows: September 30, 2015 September 30, 2014 Stock options 34,000 40,000 Convertible debt 1,573,597 1,100,287 Convertible line of credit 476,665 Warrants 160,000 37,778 TOTAL POSSIBLE DILUTION 2,244,262 1,178,065 At September 30, 2015 and 2014, the effect of the Company's outstanding options and common stock equivalents would have been anti-dilutive. Stock option, convertible debt and warrant amounts for all periods presented within this report for common stock and additional paid-in capital have been retrospectively adjusted to reflect the Reverse Stock Split (Note 20). Revenue and Cost Recognition The Company uses the sales method of accounting for oil and gas revenues. Under this method, revenues are recognized based on the actual volumes of gas and oil sold to purchasers. The volume sold may differ from the volumes the Company may be entitled to, based on the Company's individual interest in the property. Periodically, imbalances between production and nomination volumes can occur for various reasons. In cases where imbalances have occurred, a production imbalance receivable or liability will be recorded when determined. Costs associated with production are expensed in the period in which they are incurred. Cash Equivalents The Company considers all highly liquid instruments purchased with maturity of three months or less when acquired to be cash equivalents. Trade Accounts Receivable Trade accounts receivable are carried at original invoice amount less an estimate for doubtful accounts. There was no allowance for doubtful accounts at September 30, 2015 and 2014. Management determines the allowance 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 as income when received. Concentrations All of the Company’s direct operating revenues originated from oil production from its property in Crosby, North Dakota. Each revenue stream is sold to a single customer through month to month contracts. While this creates a customer concentration, there are alternate buyers of the production in the event the sole customer is unable or unwilling to purchase. Property, Plant and Equipment Acquisition costs associated with the acquisition of leases are capitalized when incurred. These consist of costs incurred in obtaining a mineral interest or right in the property, such as a lease, concession, license, production sharing agreement, or other type of agreement granting such rights. In addition, options to lease, brokers' fees, recording fees, legal costs, and other similar costs related to activities in acquiring property interests are capitalized. The Company follows the successful effort method of accounting for oil and gas property as promulgated in Accounting Standards Codification (ASC) Topic 932, "Extractive Activities – Oil and Gas". Under this method of accounting, acquisition costs for proved and unproved properties are capitalized when incurred. Exploration costs, including geological and geophysical costs, the costs of carrying and retaining unproved properties and exploratory dry hole drilling costs, are expensed. Development costs, including the costs to drill and equip development wells, and successful exploratory drilling costs to locate proved reserves are capitalized. Exploratory drilling costs are capitalized when incurred pending the determination of whether a well has found proved reserves. A determination of whether a well has found proved reserves is made shortly after drilling is completed. The determination is based on a process that relies on interpretations of available geologic, geophysics and engineering data. If a well is determined to be successful, the capitalized drilling costs will be reclassified as part of the cost of the well. If a well is determined to be unsuccessful, the capitalized drilling costs will be charged to expense in the period the determination is made. If an exploratory well requires a major capital expenditure before production can begin, the cost of drilling the exploratory well will continue to be carried as an asset pending determination of whether proved reserves have been found only as long as: i) the well has found a sufficient quantity of reserves to justify its completion as a producing well if the required capital expenditure is made and ii) drilling of the additional exploratory wells is under way or firmly planned for the near future. If drilling in the area is not under way or firmly planned, or if the well has not found a commercially producible quantity of reserves, the exploratory well is assumed to be impaired and its costs are charged to expense. In the absence of a determination as to whether the reserves that have been found can be classified as proved, the costs of drilling such an exploratory well is not carried as an asset for more than one year following completion of drilling. If, after that year has passed, a determination that proved reserves exist cannot be made, the well is assumed to be impaired, and its capitalized costs, net of salvage value are charged to expense. Its costs can, however, continue to be capitalized if sufficient quantities of reserves are discovered in the well to justify its completion as a producing well and sufficient progress is made in assessing the reserves and the well's economic and operating feasibility. The Company calculates depletion, depreciation and amortization (DD&A) of capitalized cost of proved oil properties on a field-by-field basis using the units-of-production method based upon proved reserves. In computing DD&A, the Company will take into consideration restoration, dismantlement and abandonment cost and the anticipated proceeds from equipment salvage. When applicable, the Company will apply the provisions of ASC Topic 410, "Accounting for Asset Retirement Obligations", ("ASC 410") which provides guidance on accounting for dismantlement and abandonment cost (see Note 11). Support equipment and other property, plant and equipment related to oil and gas production are depreciated on a straight-line basis over their estimated useful lives which range from 5 to 35 years. Property, plant and equipment unrelated to oil and gas producing activities is recorded at cost and depreciated on a straight-line basis over the estimated useful lives of the assets, which range from 3 to 25 years. The Company recognizes a gain or loss on sales or retirement of property, plant and equipment and includes the gain or loss in the results of operations in the period the sale or retirement occurs. Impairment of Long-Lived Assets The Company performs separate impairment tests for proved and unproved properties. Proved properties - The Company evaluates its proved properties for impairment Unproved properties In the case of unproved developed properties, the fair value of property is primarily evaluated based upon the present value of expected revenues directly associated with those assets. An impairment loss would be recognized if the carrying amount of a capitalized asset is not recoverable and exceeds its fair value. Fair Value Measures ASC Topic 820 "Fair Value Measurements" ("ASC 820") requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. ASC 820 establishes a fair value hierarchy based on the level of independent, objective evidence surrounding the inputs used to measure fair value. Categorization within the fair value hierarchy is based upon the lowest level of input that is significant to the fair value measurement. ASC 820 prioritizes the inputs into three levels that may be used to measure fair value: Level 1: Level 1 applies to assets or liabilities for which there are quoted prices in active markets for identical assets or liabilities. Level 2: Level 2 applies to assets or liabilities for which there are inputs other than quoted prices that are observable for the asset or liability such as quote prices for similar assets or liabilities in active markets; quoted prices for identical assets in markets with insufficient volume or infrequent transactions (less active markets); or model-derived valuations in which significant inputs are observable or can be derived principally from, or corroborated by, observable market data. Level 3: Level 3 applies to assets or liabilities for which there are unobservable inputs to the valuation methodology that are significant to the measurement of the fair value of the assets or liabilities. Derivative Instruments The Company has financing arrangements that contain freestanding derivative instruments or hybrid instruments that contained embedded derivative features. In accordance with U.S. GAAP, derivative instruments and hybrid instruments are recognized as either assets or liabilities in the Company’s balance sheet and are measured at fair value with gains or losses recognized in earnings depending on the nature of the derivative or hybrid instruments. Embedded derivatives that are not clearly and closely related to the host contract are bifurcated and recognized at fair value with changes in fair value recognized as either a gain or loss in earnings if they can be reliably measured. When the fair value of embedded derivative features cannot be reliably measured, the Company measures and reports the entire hybrid instrument at fair value with changes in fair value recognized as either a gain or loss in earnings. The Company determines the fair value of derivative instruments and hybrid instruments based on available market data using a Black Scholes model, giving consideration to all of the rights and obligations of each instrument and precluding the use of “blockage” discounts or premiums in determining the fair value of a large block of financial instruments. Fair value under these conditions does not necessarily represent fair value determined using valuation standards that give consideration to blockage discounts and other factors that may be considered by market participants in establishing fair value. Income Tax and Accounting for Uncertainty Income taxes are determined using the liability method in accordance with ASC Topic 740 "Income Taxes" ("ASC 740"). Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using the enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in the period that includes the enactment date. In addition, a valuation allowance is established to reduce any deferred tax asset for which it is determined that it is more likely than not that some portion of the deferred tax asset will not be realized. ASC 740 recognizes that the ultimate deductibility of positions taken or expected to be taken on tax returns is often uncertain. It provides guidance on when tax positions claimed by an entity can be recognized and guidance on the dollar amount at which those positions are recorded. In order to recognize the benefits associated with a tax position taken the entity must conclude that the ultimate allowability of the deduction is more likely than not. If the ultimate allowability of the tax position exceeds 50% (more likely than not), the benefit associated with the position is recognized at the largest dollar amount that has more than a 50% likelihood of being realized upon ultimate settlement. Differences between tax positions taken in a tax return and recognized in accordance with the guidance will generally result in (1) an increase in income taxes currently payable or a reduction in an income tax refund receivable or (2) an increase in a deferred tax liability or a decrease in a deferred tax asset, or both (1) and (2). Stock Options Granted to Employees and Non-Employees The Company follows financial accounting standards that require the measurement of the value of employee services received in exchange for an award of an equity instrument based on the grant-date fair value of the award. The Company estimates the fair value of employee stock option awards on the date of grant using a Black-Scholes valuation model which requires management to make certain assumptions regarding: (i) the expected volatility in the market price of the Company's common stock; (ii) dividend yield; (iii) risk-free interest rates; and (iv) the period of time employees are expected to hold the award prior to exercised (referred to as the expected holding period). The expected volatility under this valuation model is based on the current and historical implied volatilities of the Company's common stock. The dividend yield is based on the approved annual dividend rate in effect and current market price of the underlying common stock at the time of grant. The risk-free interest rate is based on the U.S. Treasury yield curve in effect at the time of grant for bonds with maturities ranging from one month to five years. The expected holding period of the awards granted is estimated using the historical exercise behavior of employees. In addition, the Company estimates the expected impact of forfeited awards and recognize stock-based compensation cost only for those awards expected to vest. The Company utilizes historical experience to estimate projected forfeitures. If actual forfeitures are materially different from estimates, stock-based compensation expense could be significantly different from what we have recorded in the current period. The cumulative effect on current and prior periods of a change in the estimated forfeiture rate is recognized as compensation cost in the period of the revision. Stock Granted to Employees and Non-Employees in Lieu of Cash Payments The Company periodically issues shares of its common stock in lieu of cash payments to certain consultants, vendors and employees. The Company follows financial accounting standards that require the measurement of the value of services received in exchange for an award of an equity instrument based on the grant-date fair value of the award. Reclassifications Certain reclassifications have been made to the 2014 financial statements in order to conform to the 2015 presentation. These reclassifications have no effect on net loss, total assets or accumulated deficit as previously reported. New Accounting Pronouncements From time to time, new accounting guidance is issued by the FASB that the Company adopts as of the specified effective date. If not discussed, management believe that the impact of recently issued standards, which are not yet effective, will not have a material impact on its financial statements upon adoption.

Note 3 - Fair Value of Financia

Note 3 - Fair Value of Financial Instruments	12 Months Ended
	Sep. 30, 2015
Notes
Note 3 - Fair Value of Financial Instruments	NOTE 3 – FAIR VALUE OF FINANCIAL INSTRUMENTS The carrying values of cash and cash equivalents, reclamation bonds, convertible line of credit and promissory note payable approximate fair value due to their limited time to maturity or ability to immediately convert them to cash in the normal course. The carrying values of convertible debentures is net of a discount and does not reflect fair value of similar instruments. The approximate fair value of the convertible debentures and convertible line of credit based upon the number of shares into which the debentures are convertible is $1,558,198 using the current market price per share of stock at September 30, 2015. The table below sets forth the Company's financial assets and liabilities that were accounted for at fair value on a recurring basis as of September 30, 2015 and September 30, 2014, respectively, and the fair value calculation input hierarchy that the Company has determined has applied to each asset and liability category. September 30, 2015 September 30, 2014 Input Hierarchy Level Assets: Cash $ - $ 177,260 Level 1 Liabilities: Conversion option derivative liability - 676,533 Level 2 Warrant derivative liability 4,861 24,697 Level 2

Note 4 - Unproved Properties an

Note 4 - Unproved Properties and Impairment Disclosure	12 Months Ended
	Sep. 30, 2015
Notes
Note 4 - Unproved Properties and Impairment Disclosure	NOTE 4 – UNPROVED PROPERTIES AND IMPAIRMENT The total of the Company's investment in unproved properties and equipment at September 30, 2015 and 2014, consists of the following capitalized costs respectively: September 30, 2015 September 30, 2014 UNPROVED AND DEVELOPED PROPERTIES Kansas Girard Project Field equipment – Jayhawk Gas Transport Company $ 2,605,871 $ 2,605,871 Field equipment - Girard 579,027 579,027 Capitalized drilling costs 684,696 614,756 Subtotal 3,869,594 3,799,654 Less accumulated impairments (2,432,087) (2,432,087) Less accumulated depreciation, depletion and amortization (1,251,984) (1,211,748) Unproved and developed properties, net 185,523 155,819 UNPROVED AND UNDEVELOPED PROPERTIES North Dakota Project, net - 40,325 Unproved and undeveloped properties, net - 40,325 TOTAL UNPROVED PROPERTIES $ 185,523 $ 196,144 The Company’s Kansas properties are currently not producing. Management intends to evaluate the prospects of returning to production during the subsequent fiscal year and determine the economic viability of the project thereafter.

Note 5 - Proved Properties and

Note 5 - Proved Properties and Impairment	12 Months Ended
	Sep. 30, 2015
Notes
Note 5 - Proved Properties and Impairment	NOTE 5 – PROVED PROPERTIES AND IMPAIRMENT During the year ended September 30, 2015, management scrapped certain capitalized drilling costs and equipment associated with the Jenks and Knudsen wells in Crosby, North Dakota. The Company determined the costs associated with completing the necessary engineering, road improvements and purchase of additional equipment to construct a disposal well exceeded the future benefits of said well. The Company has plugged both the Jenks and Knudsen well bores. The loss on write-off of $11,527 was charged to operations as “Loss on leases and equipment”. Effective September 1, 2015, the Company entered into an Assignment, Bill of Sale and Conveyance (the “Assignment”) with Vast Holdings, LLC (“Vast Holdings”), a related party at September 30, 2015. The Assignment sells and assigns to Vast Holdings, in consideration of ten dollars ($10.00), all of the Company’s right, title, interest and estate, real or personal, movable or immovable, tangible or intangible, in and to the assets held or owned by the Company in the State of North Dakota, including but not limited to: oil, gas and/or mineral leases, fee mineral interests, leasehold estates, mineral interests, royalty interests, overriding royalty interests, reversionary interests, net profits interests, and other similar rights, estates and interests and other agreements, the oil, gas, and other hydrocarbons produced from or attributable to the assets and all units, wells, equipment, contracts, and records. Vast Holdings did not assume various liabilities associated with the North Dakota assets, including, but not limited to, working and royalty interests payable and liabilities associated with reclamation of the North Dakota properties. Vast Holdings is a wholly owned subsidiary of Vast Exploration, LLC. Vast Exploration is a controlling shareholder of the Company, the contract operator of the Company’s oil and gas properties and an affiliate of Vast Petroleum Corp., an entity that entered into a joint development agreement for the Company’s oil and gas operations in Kansas in May 2014. The Assignment was made in lieu of foreclosure of certain Company debt obligations and the Company determined ten dollars was appropriate monetary consideration. The Company incurred a loss on conveyance of the North Dakota properties of $28,238 which is included in “Loss on leases and equipment” and charged to operations. The total of the Company's investment in proved properties and equipment at September 30, 2015 and 2014, consists of the following capitalized costs respectively: September 30, 2015 September 30, 2014 Crosby, North Dakota Properties Proved reserves $ - $ 2,381,962 Field equipment - 1,200,247 Capitalized drilling costs - 427,957 Subtotal - 4,010,166 Less impairments - (1,092,302) Less accumulated depreciation, depletion and amortization - (2,835,852) TOTAL PROVED OIL AND GAS PROPERTIES $ - $ 82,012 For the year ended September 30, 2014, the Company performed an analysis to determine whether the carrying amounts in its financial statements exceeded the present value of the expected revenues directly associated with the Crosby, North Dakota property. Management determined that the net value reflected in the financial statements did not exceed the present value of such revenues.

Note 6 - Reclamation Bonds and

Note 6 - Reclamation Bonds and Other Long-term Assets	12 Months Ended
	Sep. 30, 2015
Notes
Note 6 - Reclamation Bonds and Other Long-term Assets	NOTE 6 – RECLAMATION BONDS AND OTHER LONG-TERM ASSETS Reclamation bonds and other long-term assets consists of various deposits and reclamation bonds. Detail is disclosed in the following table: September 30, 2015 September 30, 2014 Rental security deposit $ - $ 1,500 Reclamation bonds 150,450 150,346 TOTAL RECLAMATION BONDS AND OTHER LONG TERM ASSETS $ 150,450 $ 151,846

Note 7 - Convertible Line of Cr

Note 7 - Convertible Line of Credit Related Party	12 Months Ended
	Sep. 30, 2015
Notes
Note 7 - Convertible Line of Credit Related Party	NOTE 7 – CONVERTIBLE LINE OF CREDIT RELATED PARTY On June 30, 2015, the Company entered into a revolving credit loan agreement (“Loan”) with Vast Exploration, LLC (the “Lender” or “Vast Exploration”). The Loan permits the Company to borrow up to $100,000 with an interest rate equal to 1.5% per month of the unpaid principal balance on the loan. The Company is required to pay principal on demand or, if not sooner demanded, then on or before June 30, 2016. The Company is required to pay interest on demand or, if not sooner demanded, then on the 1st day of each month, commencing August 1, 2015. After demand, interest on the outstanding balance of the Loan will accrue at a rate equal to 2% per month. Vast Exploration has the right, at any time after the date of the Loan, at its election, to convert all or part of the Loan into shares of fully paid and non-assessable shares of common stock of the Company at a conversion price of the lesser of 1) $0.005 per share ($0.50 per share post reverse stock split) or 2) 50% of the average of the three lowest trades during the twenty-five previous trading days preceding a conversion. On August 6, 2015, the Company entered into a Line of Credit Modification Agreement with Vast Exploration (“Modification Agreement”). The Modification Agreement adjusts the maximum principal balance that may be borrowed from $100,000 to $150,000. At its sole discretion, Vast Exploration may increase the maximum principal balance beyond $150,000. On September 25, 2015, the Company entered into a Second Line of Credit Modification Agreement with Vast Exploration (“Second Modification Agreement”). The Second Modification Agreement amends the conversion price in the Loan to a non-variable conversion price of $0.005 per share of common stock ($0.50 per share of common stock post reverse stock split). Advances related to reclamation of North Dakota properties (Note 18) may be converted at a non-variable conversion price of $0.025 per share of common stock ($0.25 per share of common stock post reverse stock split). As of September 30, 2015, the Loan balance was $170,285. The balance of accrued interest on the Loan including origination and modification fees at September 30, 2015 was $16,183 and is included in “accrued interest, related party”. The balance of the Loan and accrued interest thereon was convertible to 378,530 shares of the Company’s common stock based on the amended conversion price.

Note 8 - Convertible Debentures

Note 8 - Convertible Debentures	12 Months Ended
	Sep. 30, 2015
Notes
Note 8 - Convertible Debentures	NOTE 8 – CONVERTIBLE DEBENTURES During the years ended September 30, 2010 and 2011, the Company issued, pursuant to a securities purchase agreement, 10% convertible debentures with a face value of $2,000,000 (the “2010 and 2011 Convertible Debentures”). All of the debentures had a two-year maturity and were issued with attached common stock purchase warrants. The effective interest rate on the debentures was, and is, 10% per annum. The debentures were secured by all assets of the Company except those specifically excluded in the agreement which include all Kansas properties and related assets. The debentures were convertible at any time after the original issue date into a number of shares of the registrant’s common stock, determined by dividing the amount to be converted by an initial conversion price of $0.18 per share ($18.00 post reverse stock split). In addition to the debentures the purchasers were issued an aggregate of 2,833,113 common share purchase warrants, each having a term of 42 months, expiring April 2014, and giving the purchasers the right to purchase the Company’s common shares at an initial exercise price of $0.18 per share ($18.00 per share post reverse stock split). Subsequent to the initial issue date, the initial conversion price of $0.18 per share ($18.00 per share post reverse stock split) was amended based on provisions in the agreements related to equity issuances and issuance of additional convertible debentures. These provisions required that the conversion option was accounted for as a derivative liability (Note 9). The conversion price was amended on or about January 9, 2012, to $0.50 per share ($5.00 per share post reverse stock split). On April 23, 2013, the conversion price was modified to $0.01 per share ($1.00 per share post reverse stock split) for up to 25% of the outstanding shares. The maturity date was modified to December 31, 2013. Fiscal year ended September 30, 2014 Modification of debt On November 5, 2013, an investor converted $35,000 in convertible debentures at $0.01 per share. Pursuant to this conversion, the Company issued 3,500,000 shares of common stock (35,000 shares of stock at exercise price of $1.00 per share post reverse stock split). On June 3, 2014, the Company entered into a Partial Reset of Conversion Price for the 2010 and 2011 Convertible Debentures agreement (the “2014 Partial Reset”) with one of the Investors. Under the terms of the 2014 Partial Reset, the Investor and the Company agreed to the following terms: The Investor has the right to convert, into common stock of the Company, up to two hundred thousand dollars ($200,000) of the principal amount of the Debentures outstanding at a Conversion Price equal to $0.01 per share ($1.00 per share post reverse stock split). The Company considered the impact of ASC 470-50 “Debt Modifications and Extinguishments” of the 2014 Partial Reset and concluded it constituted a substantial modification and therefore should be accounted for as an extinguishment of debt. During the year ended September 30, 2014, the Company recognized a loss on extinguishment of $383,951 representing the change in fair value of the conversion option because of the modification. On or about June 3, 2014, the Company entered into Securities Purchase Agreements with an institutional investor, an accredited investor and the former Chairman of the Board of Directors of the Company, wherein the Company agreed to issue $600,000 (total) of Secured Convertible Debentures (“2014 Debentures”). The Debentures are due sixty (60) months from the date of closing. The Debentures are secured by a security agreement granting the Investors a security interest in and to all of the Company’s assets located in the State of Kansas. At closing, the Company also entered into a Stock Pledge Agreement pledging, as additional security, all of the Company’s right, title and interest in and to the capital stock of JayHawk Gas Transportation Corporation (a wholly owned subsidiary of the Company and the owner of the Company’s gas transmission pipeline in Kansas). The Debentures are convertible at any time after the original issue date into a number of shares of the Company’s common stock, determined by dividing the amount to be converted by a conversion price of $0.01 per share, or an aggregate of 60,000,000 shares ($1.00 per share or an aggregate of 600,000 shares post reverse stock split). Additionally, each investor received rights to a Wastewater Disposal Fee; and a Royalty Interest. On the date of issue, the price for the Company’s common stock exceeded the $0.01 conversion price ($1.00 post reverse split conversion price) stated in the debentures. Management determined that the favorable exercise price represented a beneficial conversion feature. Using the intrinsic value method at the debenture date, a total discount of $600,000 was recognized on the debentures. The discount is being amortized over the term of the debentures using the straight-line method, which approximated the effective interest method. The Company recorded $120,000 and $40,000 in interest expense related to the amortization of the discount for the years ended September 30, 2015 and 2014, respectively. The remaining discount balance was $440,000 at September 30, 2015. Fiscal year ended September 30, 2015 On or about April 17, 2015, the former Chairman assigned for consideration a $200,000 convertible debenture originally issued in 2014 to Vast Exploration, LLC (“Vast Exploration”), a related party. On or about April 17, 2015, Vast Exploration also was assigned for consideration to the holder a $200,000 convertible debenture originally issued in 2014 and held by an institutional investor. On April 17, 2015, Vast Exploration also acquired, from the various original institutional holders, the Convertible Debentures originally issued by the Company on or about December 11, 2009, December 30, 2009, April 22, 2010 and October 18, 2010 (collectively the “Convertible Debentures”). Vast Exploration also acquired two outstanding convertible debentures originally issued by the Company on or about June 3, 2014, in aggregate amount of $400,000 from an institutional holder and a related party to the Company. On or about April 17, 2015, Vast Exploration notified the Company of its intent to hold the Company in default of certain provisions of the 2010 and 2011 Convertible Debentures, including but not limited to additional interest at 18% and recalculating the principal balances to 125% of their face amount retroactive to the last known date of compliance. The increase in principal balance of the debentures as a result of the default at date of notification was $259,963. The increase in additional accrued interest on the debentures as a result of the default at the date of notification was $300,441. The total $560,404 was recognized as finance expense during the year ended September 30, 2015. As of September 30, 2015, a portion of the Convertible Debentures and accrued interest remain in default and consequently are classified as “current liabilities”. Effective April 30, 2015 the Company entered into an agreement, with Vast Exploration, to amend the Company’s outstanding 2010 and 2011 convertible debentures held by Vast Exploration. Under the terms of the Amendment to Convertible Debentures the “Conversion Price” for the remaining entire outstanding balance owed by the Company under the Convertible Debentures was reset to $1.00 per share. The amendment to the convertible debentures includes a conversion feature that allows the principal and accrued interest of the loans to be converted into common stock of Jayhawk Energy, Inc. at $0.01 per share ($1.00 per share post stock split) at the option of related party Convertible Debenture holders. These Convertible Debentures and accrued interest as of April 30, 2015, would convert into 207,954,477 shares of the Company’s common stock (2,079,545 of the Company’s common stock post reverse stock split). The Amendment to Convertible Debentures also eliminated certain provisions of the convertible debentures that required convertible derivative accounting rules to be applied to the convertible debentures (See Note 8). The fair value of the conversion feature prior to amendment of the agreement was $286,952. The Company estimated the fair value of the amended conversion feature to be $1,244,472. The Company, therefore, recognized a loss on extinguishment of debt of $957,528. The Black Scholes model inputs utilized to estimate the fair value of the amended conversion feature was: Stock price $0.01 per share; risk-free interest rate = 0.01%; expected term = 3 months; expected volatility = 286.6%. On April 30, 2015, Vast Exploration gave the Company written Notice of Conversion of four of the 2010 and 2011 Convertible Debentures into the Company's common stock. Vast Exploration converted $828,211 of the principal balance and $359,287 of accrued interest of the debentures for a total conversion of $1,187,498. The conversion price was $0.01 per share ($1.00 per share post reverse stock split). The Company issued 118,749,800 shares of its common stock (1,187,498 shares of its common stock post reverse stock split). As a result of the conversion, Vast Exploration became the majority shareholder of the Company and owns 59.4% of the common stock at September 30, 2015. The aggregate debenture and accrued interest balance due to Vast Exploration as of September 30, 2015 is $1,103,038 which is convertible at any time after the original issue date into a number of shares of the Company’s common stock, determined by dividing the amount to be converted by a conversion price of $0.01 per share, or an aggregate of 110,303,800) shares of the Company’s common stock ($1.00 per share or an aggregate of 1,103,038 post reverse stock split). At September 30, 2015, principal payments on the convertible debentures are due as follows: Related party Non-related party Total Year ending September 30, 2016 $ 470,439 $ - $ 470,439 Year ending September 30, 2017 - - - Year ending September 30, 2018 - - - Year ending September 30, 2019 400,000 200,000 600,000 TOTAL CONVERTIBLE DEBENTURES $ 870,439 $ 200,000 $ 1,070,439 As of September 30, 2015, there remains $440,000 of unamortized discount on the issuance of the 2014 convertible debentures.

Note 9 - Derivative Liabilities

Note 9 - Derivative Liabilities	12 Months Ended
	Sep. 30, 2015
Notes
Note 9 - Derivative Liabilities	NOTE 9 – DERIVATIVE LIABILITIES The Company had convertible debentures which contained provisions allowing holders of the debentures to convert outstanding debt to shares of the Company's common stock (Note 8). The debentures contained anti-dilution provisions which call for the debt conversion and warrant exercise prices to be reduced based on future issues of debt or equity with more favorable provisions. Management has determined that these provisions cause the conversion options and warrants to require derivative liability accounting. As such, management valued them at fair value at the date of issuance. During the year ended September 30, 2015, the Company entered into a modification agreement with the holders of the convertible debentures. The modification agreement changed the conversion price to $1.00 per common share and also specifically eliminated provisions of the debentures requiring conversion derivative accounting. The fair value of the derivative liability on that date of $1,244,472 was charged to ‘additional paid-in capital’. Conversion option derivative At September 30, 2015 and 2014, the fair value of conversion options was estimated at the period’s end using the Black-Scholes option pricing model using the following weighted average assumptions. Year Ended September 30, 2015 2014 Stock price $ 0.0169 $ 0.0294 Risk-free interest rate 0.01% to 0.28% 0.06% to 0.10% Expected term .25 years to 1 year .25 to .50 years Expected volatility 242.5% to 298.6% 248.6% to 339.3% Fair value of conversion option derivative units $0.003 to $0.015 $.002 to $0.01 Below is detail of the change in conversion option liability balance for the year ended September 30, 2015 and 2014, respectively. For the year ended September 30, 2015 2014 Beginning balance $ 676,533 $ 177,553 Net change in fair value of conversion option liability (389,589) 115,029 Increase in fair value of conversion options due to debt amendment 957,527 383,951 Extinguishment of conversion option derivative (1,244,472) - Ending balance $ - $ 676,533 Warrant derivative At September 30, 2015 and 2014, respectively, the fair value of warrant derivative liability was estimated using the Black-Scholes option pricing model using the following weighted average assumptions: September 30, 2015 2014 Stock price $ 0.0169 $ 0.0294 Risk-free interest rate 0.56% 0.02% to 0.90% Expected term 1.88 year 1 month to 1 year Expected volatility 274.3% 128.4% to 297.7% Fair value of warrant derivative units $0.0106 $0.0002 to $0.028 Below is detail of the change in warrant derivative liability balance for years ended September 30, 2015 and 2014, respectively: Year ended September 30, 2015 2014 Beginning balance $ 24,697 $ 41,553 Net change in fair value of warrant derivative liability (19,836) (16,856) Ending balance $ 4,861 $ 24,697

Note 10 - Promissory Notes

Note 10 - Promissory Notes	12 Months Ended
	Sep. 30, 2015
Notes
Note 10 - Promissory Notes	NOTE 10 – PROMISSORY NOTES On July 12, 2014, the Company entered into a promissory note for $46,642 with a working interest partner. The Company was scheduled to make seven monthly payments in the amount of $2,500 and subsequently make ten monthly payments in the amount of $2,914. At September 30, 2015, the balance due on the note was $31,642. The Company is currently in default on the terms of the promissory note. The balance of $31,642 is included under “Current portion of promissory notes payable” at September 30, 2015. On January 27, 2015, the Company entered into a promissory note for $189,790 with a working interest partner which included past due amounts of $175,425 and additional interest of $14,364 which was recognized as expense. The Company will make nineteen monthly payments in the amount of $9,542 and subsequently make one monthly payment in the amount of $19,016. The note bears interest at 6% per annum. At September 30, 2015, the total balance due plus accrued interest and late payment charges on the note was $201,139. The Company is currently in default on the terms of the promissory note and, therefore, the balance of $201,139 is classified as “Current portion of promissory notes payable” at September 30, 2015. On February 12, 2015, the Company entered into a promissory note for $49,696 with a vendor which included accounts payable of $34,162 and additional interest of $15,534 which was recognized as expense. The Company was scheduled to make one payment of $5,000, thirty-eight monthly payments in the amount of $1,500 and subsequently make one monthly payments in the amount of $1,378. The note bears interest at 8% per annum. At September 30, 2015, the balance due including accrued interest on the note was $37,790. On August 28, 2015, the Company entered into a promissory note for $37,892 as settlement of payable to a service provider. The Company is scheduled to make twenty-four monthly payments in the amount of $1,579. The note is non-interest bearing. At September 30, 2015, the balance due on the note was $36,304. The Company entered into a Separation Agreement with an executive which included provisions referencing execution of a Promissory Note in consideration of accrued compensation at September 30, 2015 in the amount of $110,781. The promissory note was subsequently executed on or about December 1, 2015. The former Company officer was appointed to the Board of Directors, therefore is classified as a related party. The note accrues interest at 5% per annum with monthly interest-only payments through September 30, 2016. The Company is scheduled to make twenty-four monthly payments beginning no later than October 31, 2016. In the event of default, the note bears interest at 18%. At September 30, 2015, principal payments on these notes are due as follows: Related party Non-related party Total Year ending September 30, 2016 $ - 264,582 264,582 Year ending September 30, 2017 51,107 32,443 83,550 Year ending September 30, 2018 53,722 9,850 63,572 Year ending September 30, 2019 5,952 - 5,952 TOTAL PROMISSORY NOTES $ 110,781 $ 306,875 $ 417,656

Note 11. Asset Retirement Oblig

Note 11. Asset Retirement Obligations	12 Months Ended
	Sep. 30, 2015
Notes
Note 11. Asset Retirement Obligations	NOTE 11. ASSET RETIREMENT OBLIGATIONS The Company has identified asset retirement obligations at the Girard, Kansas and Crosby, North Dakota operating sites. These retirement obligations are determined based on the estimated cost to comply with abandonment regulations established by the Kansas Corporation Commission and the State of North Dakota. The Company's engineers have estimated the cost, to comply with these regulations. These estimates have been projected out to the anticipated retirement date 6 to 15 years in the future, at an assumed inflation rate of 1.5 percent. These amounts were discounted back at an assumed interest rate of 10 percent, to arrive at a net present value of the obligation. The amount of the annual increase in the obligation is charged to accretion expense and for the years ended September 30, 2015 and 2014, was computed to be $15,217 and $14,603, respectively. The remaining balance on the Company’s North Dakota Asset Retirement Obligation liability is $133,481 During the year ended September 30, 2015, with respect to its Kansas properties, the Company has revised its estimate to include additional well bores not previously considered to be subject to remediation exposure for the Company. The increase in present value liability was added to the Company’s Asset Retirement Obligation Asset which shall be amortized over the remaining useful life of the Kansas asset. The Company has revised its estimate on the remaining Kansas Asset Retirement Obligation to $112,311 as of September 30, 2015. The following table summarizes the change in the asset retirement obligation since the beginning of the fiscal year ending September 30, 2015 and September 30, 2014, respectively: For the year ended September 30, 2015 2014 Beginning balance $ 160,636 $ 146,033 Increase in present value of liability due to change in estimate costs (Kansas) 69,939 - Accretion expense 15,217 14,603 Ending balance $ 245,792 $ 160,636

Note 12 - Common Stock

Note 12 - Common Stock	12 Months Ended
	Sep. 30, 2015
Notes
Note 12 - Common Stock	NOTE 12 – COMMON STOCK Fiscal Year End September 30, 2014 On November 11, 2013, the Company issued 35,000 shares of common stock to a holder of 10% convertible debentures within the terms thereof referenced in Note 8 who elected to convert the principal amount of $35,000. Fiscal Year End September 30, 2015 On April 30, 2015, Vast Exploration presented the Company with a written Notice of Conversion of four of the Convertible Debentures (Note 8) into the Company's common stock. The holder converted $828,211 of the principal balance and $359,287 of accrued interest of the debentures for a total conversion of $1,187,498. The conversion price was $1.00 per share. The Company issued 1,187,498 shares of its common stock. As a result of the issuance, Vast Exploration became the majority shareholder of the Company. On June 8, 2015, the Company issued 6,000 shares of its common stock with a fair value of $6,000 to certain directors of the Company and the former Chief Executive Officer in consideration for accrued board fees and accrued compensation of $284,750. The Company obtained forbearance agreements with the parties and recognized a gain on settlement of liabilities of $300,190. On September 30, 2015, the Company issued 1,500 shares of its common stock with a fair value of $1,500 to a related party in consideration for termination of a lease agreement and settlement of liabilities of $17,113.

Note 13 - Stock Based Compensat

Note 13 - Stock Based Compensation	12 Months Ended
	Sep. 30, 2015
Notes
Note 13 - Stock Based Compensation	NOTE 13 – STOCK BASED COMPENSATION The Company’s board of directors approved a stock and option plan on August 11, 2009 (the “Plan”). The purpose of the Plan is to provide employees and consultants of the Corporation and its Subsidiaries with an increased incentive to make significant and extraordinary contributions to the long-term performance and growth of the Corporation and its Subsidiaries, to join the interests of employees and consultants with the interests of the shareholders of the Corporation, and to facilitate attracting and retaining employees and consultants of exceptional ability. The total number of shares available for grant under the terms of the Plan is 4,000,000. The number of shares subject to the Plan and any outstanding awards will be adjusted appropriately by the Board of Directors if the Company’s common stock is affected through a reorganization, merger, consolidation, recapitalization, restructuring, reclassification dividend (other than quarterly cash dividends) or other distribution, stock split, spin-off or sale of substantially all of the Company’s assets. On October 10, 2013, the Board of Directors rescinded, from various officers and directors, 20,400 options to purchase shares of the Company’s common stock. The rescinded options had a strike price of $2.00 based on the closing price of the Company’s common stock on the date of grant. Also on October 10, 2013, the Board of Directors authorized the grant, to various officers and directors, of 40,000 options to purchase shares of the Company’s common stock. The options have a strike price of $1.00 based on the closing price of the Company’s common stock on the date of grant and vest over 9 months. The concurrent grant of a replacement award was accounted for as a modification of terms and resulted in an offset to compensation expense of $20,151 during the year ended September 30, 2014. The Company recognizes compensation expense straight-line over the vesting term. Historically, the Company has issued new shares to satisfy exercises of stock options and the Company expects to issue new shares to satisfy any future exercises of stock options. The outstanding options at September 30, 2015 have a weighted average remaining term of 3.78 years. No options were exercised during the years ended September 30, 2015 and 2014. At September 30, 2015 and 2014, the Company had 40,000 and 34,000 options outstanding and exercisable, respectively. The following table reflects the summary of changes during the years ended September 30, 2015 and September 30, 2014: Number of shares under options Weighted Average Exercise Price Per Share Aggregate Intrinsic Value Balance outstanding, September 30, 2013 20,400 $ 20.00 $ - Issued 40,000 1.00 - Exercised - - - Forfeited or rescinded (20,400) (20.00) - Balance outstanding and exercisable, September 30, 2014 40,000 $ 1.00 $ - Issued - - - Exercised - - - Forfeited (6,000) (1.00) - Balance outstanding and exercisable, September 30, 2015 34,000 $ 1.00 $ - All 34,000 options outstanding are fully vested and exercisable at $1.00 per share (3,400,000 options outstanding are fully vested and exercisable at $0.01 per share pre-reverse stock split). As of September 30, 2015, there was no unrecognized compensation cost related to non-vested share-based compensation arrangements granted under the Plan. The Company recognized $Nil and $24,803 of compensation cost related to options vested during the years ended September 30, 2015 and 2014, respectively. These costs are classified under management and administrative expense.

Note 14 - Broker and Share Purc

Note 14 - Broker and Share Purchase Warrants	12 Months Ended
	Sep. 30, 2015
Notes
Note 14 - Broker and Share Purchase Warrants	NOTE 14 – BROKER AND SHARE PURCHASE WARRANTS A summary of activity of the Company's share purchase and broker warrants outstanding at September 30, 2015 is presented as follows: Broker Warrants Weighted Average Exercise Price Share Purchase Warrants Weighted Average Exercise Price Balance outstanding, September 30, 2013 10,553 $ 6.00 47,778 $ 5.00 Forfeited or expired (553) (5.00) (20,000) (5.00) Exercised - - - - Granted - - - - Balance outstanding, September 30, 2014 10,000 $ 6.00 27,778 $ 5.00 Forfeited or expired - - (27,778) (5.00) Exercised - - - - Granted - - 150,000 0.10 Balance outstanding, September 30, 2015 10,000 $ 6.00 150,000 $ 0.10 The Broker Warrants expire February 15, 2017 and have an exercise price of $6.00. On April 17, 2015 the Company granted, to four institutional investors, warrants to purchase up to an aggregate of 150,000 shares of the Company’s common stock in consideration of the investors waiving the Company’s prior defaults under the Convertible Debentures. In addition to transactions discussed in Notes 5, 7, 10 and 12, the Warrants give the holders thereof the right to purchase common stock of the Company at the purchase price of $0.10 per share and expire on March 17, 2020. The fair value of the warrants issued was $167,441 was charged to financing costs.

Note 15 - Related Party Transac

Note 15 - Related Party Transactions	12 Months Ended
	Sep. 30, 2015
Notes
Note 15 - Related Party Transactions	NOTE 15 – RELATED PARTY TRANSACTIONS In addition to transactions discussed in Notes 5, 7, 10 and 12, on or about December 1, 2011, the Company entered into a four-year lease with Marlin Property Management, LLC, an entity owned by the spouse of the Company's former President/CEO and member of the board of directors. Under the terms of the lease the Company is required to pay $2,500 per month for office space in Coeur d'Alene, Idaho. For the years ended September 30, 2015 and 2014, the Company paid $15,000 and $15,000 respectively. The balance due to the related party including common area expenses as of September 30, 2015 was $Nil as a result of the Lease Termination Agreement. On April 17, 2015, the Board of Directors appointed the Chief Executive Officer and Manager of Vast Exploration, LLC as a director of the Company to fill a vacancy on the Board and in connection with Vast Exploration, LLC’s acquisition of certain Convertible Debentures from institutional investors (Note 8). The Chief Executive Officer and Manager of Vast Exploration, LLC was appointed as the Chairman of the Board of Directors of the Company. On July 8, 2015, the Company executed a Contract Operating Agreement (the “Operating Agreement”) with Vast Exploration, effective as of January 1, 2015. Under the terms of the Operating Agreement, Vast Exploration became the “operator of record” for all of the Company’s properties and is responsible for the operation of the Company’s oil and gas properties, which includes handling routine operations, major operations, reporting services and other miscellaneous services. The Company will pay Vast Exploration a monthly fee for services in the amount of $20,000. The Company will remain responsible for all fees, expenses and taxes related to its properties and has agreed to reimburse Vast Exploration for any fees, expenses or taxes advanced on the Company’s behalf. The Company has the right to audit the books, records and invoices maintained by Vast Exploration in its operation of the Company properties. The term of the Operating Agreement is two years from the effective date. The Operating Agreement automatically renews for successive one year terms until the Company or Vast Exploration provide notice of non-renewal. The Operating Agreement includes mutual indemnities and waivers of consequential and punitive damages. The Operating Agreement also includes release and hold harmless provisions for the exclusive benefit of Vast Exploration. Finally, the Operating Agreement consents to and ratifies any operational services Vast Exploration has provided to the Company prior to the date the Operating Agreement was executed. Vast Exploration billed the Company $160,000 for the year ended September 30, 2015 which was charged to ‘production expense’ and subsequently billed to working interest partners for their pro-rata share of the expense. Vast Exploration is a controlling shareholder of the Company, the contract operator of the Company’s oil and gas properties and an affiliate of Vast Petroleum Corp. – an entity that entered into a joint development agreement for the Company’s oil and gas operations in Kansas in May 2014. Vast Petroleum Corp. was not a party to the Agreements. The Chairman of the Board of Directors for the Company, is the individual who possesses voting and dispositive authority on behalf of Vast Exploration. Acting in his capacity of Chairman of the Board of the Company, he recused himself from voting on the approval of the Contract Operating Agreement, which was subsequently approved by the remaining members of the Company’s Board of Directors. The accrued balance due to Vast Exploration related to the Contract Operating Agreement at September 30, 2015 is $5,000 which is included in “Other payables, interest and taxes accrued”.

Note 16 - Supplemental Cash Flo

Note 16 - Supplemental Cash Flow and Other Disclosures	12 Months Ended
	Sep. 30, 2015
Notes
Note 16 - Supplemental Cash Flow and Other Disclosures	NOTE 16 – SUPPLEMENTAL CASH FLOW AND OTHER DISCLOSURES For the year ended September 30, 2015 2014 Supplemental disclosures: Interest paid in cash $ 5,119 $ - Non-cash financing and investing activities: Proceeds from convertible debentures allocated to conversion option $ - 600,000 Common stock issued for conversion of debentures and interest, related party 1,187,499 35,000 Common stock issued for settlement of liabilities 7,500 - Due to working interest holder converted to promissory note 175,425 46,642 Due to related party converted to promissory note 110,781 -

Note 17 - Income Tax

Note 17 - Income Tax	12 Months Ended
	Sep. 30, 2015
Notes
Note 17 - Income Tax	NOTE 17 – INCOME TAX The Company did not recognize an income tax benefit or expense for the fiscal years ended September 30, 2015 and 2014. The deferred tax assets were calculated based on an expected future combined tax rate of 40% consisting of maximum statutory federal tax rate of 35% and state taxes calculated at the rate of 5%, which is net of the expected federal income tax benefit. The components of the Company’s net deferred tax assets are as follows: For the year ended September 30, 2015 2014 Deferred tax assets rising from: Non-deductible stock based compensation $ 186,444 $ 186,444 Property and equipment 1,400,549 2,486,484 Other assets - 91,299 Net operating loss carryforward 5,752,595 3,949,318 7,339,588 6,713,545 Less valuation allowance (7,327,187) (6,713,545) Deferred tax assets $ 12,401 $ - Deferred tax liability (12,401) - NET DEFERRED TAX ASSETS AND LIABILITIES $ - $ - As management of the Company cannot determine that it is more likely than not the Company will realize the benefit of the estimated net deferred tax asset, a valuation allowance equal to 100% of the net deferred tax asset has been recorded at September 30, 2015 and 2014. The Company has approximately $14 Million of federal and state net operating loss carryforwards that expire through 2026 and 2035 that may be used to offset future taxable income. Based on the net loss for the year ended September 30, 2015 and 2014, the income tax benefit shown in the financial statements for the years ended September 30, 2015 and 2014 differs from the projected statutory rate as follows: Year ended September 30, 2015 Rate 2014 Rate Provision (benefit) at federal statutory rate $ (781,297) 35.0 % $ (517,964) 35.0 % Permanent differences-financing instruments 244,360 (10.9%) 182,831 (12.3%) Effect of state taxes (76,705) 3.4 % (47,876) 3.2 % Increase in valuation allowances 613,642 (27.5%) 383,009 (25.9%) TOTAL $ 0 0.0 % $ 0 0.0 % The Company has concluded that the guidance regarding accounting for uncertainty in income taxes had no significant impact on the results of operations or financial position as of September 30, 2015 or 2014. Therefore, the Company does not have an accrual for uncertain tax positions as of September 30, 2015 or 2014. As a result, tabular reconciliation of beginning and ending balances would not be meaningful. If interest and penalties were to be assessed, the Company would charge interest expense and penalties to other operating expense. It is not anticipated that unrecognized tax benefits would significantly increase or decrease within 12 months of the reporting date. The Company is currently delinquent in their federal and state tax filings. Fiscal years 2010 through 2015 remain subject to examination by state and federal tax authorities. On April 30, 2015, Vast Exploration, LLC acquired over 50% of the outstanding stock of the Company. This change in ownership limits the future use of net operating losses due to Code Section 382. Management has not determined the effect of the limitation at this time.

Note 18 - Commitments and Conti

Note 18 - Commitments and Contingencies	12 Months Ended
	Sep. 30, 2015
Notes
Note 18 - Commitments and Contingencies	NOTE 18 – COMMITMENTS AND CONTINGENCIES The Company is obligated to pay royalties to holders of oil and natural gas interests in both North Dakota and Kansas operations. The Company also is obligated to pay working interest holders a pro-rata portion of revenue in oil operations net of shared operating expenses. The amounts are based on monthly oil and natural gas sales and are charged monthly net of oil and gas revenue and recognized as "Due to royalty and working interest holders" on the Company's balance sheet. On August 1, 2013, the North Dakota Industrial Commission (“NDIC”) submitted an administrative complaint to the State of North Dakota related to plugging and remediation of the Company’s Jenks #1 and Knudsen #1 wells in Crosby, ND. The administrative complaint alleged the Company violated certain portions of the North Dakota Century Code and requested administrative relief against Jayhawk Energy, Inc. for violation of sections of the North Dakota Administrative Code governing the oil and gas industry. On or about August 12, 2013, the Company responded to the administrative complaint and entered into settlement negotiations with the NDIC. As a good faith effort, the Company began plugging the Knudsen #1 well on or about December 20, 2013. The work required to plug the Knudsen #1 well was completed in January 2014. The range of associated penalties as proposed by the NDIC was $100,000 to $525,000 for failure to comply. As September 30, 2013, the Company accrued $330,000 as an estimate of total liability related to the Jenks and Knudsen reclamation. For the year ended September 30, 2014, the Company revised the estimate related to the Jenks and Knudsen reclamation and paid an additional $190,947 for completion of remaining remediation. On February 18, 2014, the Company entered into a Consent Agreement with the State of North Dakota whereby the Company was required to finish reclamation work, by June 30, 2014, on the two waste water storage pits adjacent to the Jenks #1 and Knudsen #1 wells respectively. The Consent Agreement required the Company to plug the “production zone” of the Jenks #1 well. Once plugging was completed, the Company could then apply for a permit to convert the Jenks #1 well into a salt water disposal well. As a part of the Consent Agreement the Company agreed to pay a civil penalty of no less than $105,000, consisting of $25,000 due and payable upon execution of the Consent Agreement and a $16,000 installment payment per month for five successive months thereafter. If the Company failed to comply with the terms of the Consent Agreement, the Company would be subject to penalties of up to an additional $420,000 (over and above the $105,000 penalty agreed to in the Consent Agreement). The Company made the initial $25,000 payment and subsequently made each monthly payment with the final installment of $16,000 paid to the State of North Dakota on June 26, 2014. The Company made the final installment payment of $16,000 to the State of North Dakota on June 26, 2014. As of September 30, 2014 the Company has completed substantially all reclamation work and has paid all fines assessed. On July 10, 2014, the Company completed reclamation work on both the Jenks #1 and Knudsen #1 waste water storage pits. Although reclamation work was to have been completed by June 30, 2014, unseasonably heavy rains which saturated the soil and limited safe access to the site by heavy equipment delayed scheduled reclamation until such time as ground conditions improved. The Company also completed plugging of the ‘production zone’ on the Jenks #1 well and set a balance plug on the Knudsen #1 well bore. Due to JayHawk’s failure to timely submit a cost estimate for the final plugging, abandonment and reclamation of the Jenks #1 well and site, the NDIC, on January 28, 2015, pursuant to Commission Order No. 25588 ordered JayHawk to file a $120,000 bond covering the Jenks #1. The bond was a plugging and reclamation bond. On May 9, 2015, the Company received a copy of a Summons and Complaint filed by the State of North Dakota and the NDIC in the Northwest Judicial District Court of North Dakota alleging JayHawk had violated N.D.C.C. Chapter 38-08 by failing to post the $120,000 plugging and reclamation bond pursuant to Commission Order No. 25588. N.D.C.C. § 38-08-16 provides that anyone who violates a provision of N.D.C.C. Chapter 38-08, or any rule or regulation of the Commission is subject to a penalty of up to $12,500 for each offense, and each day’s violation is a separate offense. The Complaint’s prayer for relief requested that JayHawk be ordered to deposit $120,000 with the Bank of North Dakota to satisfy the Commission’s requirement for the plugging and reclamation bond on the Jenks #1 well. The NDIC also requested that JayHawk pay a fine of $12,500 per day beginning February 4, 2015, for failure to provide a plugging and reclamation bond on the Jenks #1. The Company subsequently met with the NDIC, which resulted in the NDIC staying the litigation subject to JayHawk’s immediate plugging, abandonment and reclamation of the Jenks #1. In September of 2015 the Company completed final plugging and abandonment of the Jenks #1 and completed a partial reclamation of the well and site. On February 12, 2015, the Company entered into a settlement agreement with the Staff of the Corporation Commission of the State of Kansas with respect to a Penalty Order served by the Company for failure to comply with certain portions of the Kansas Administrative Regulations. The Company was found in violation of failure to plug, return to service or temporarily abandon 71 wells and assessed a $7,100 penalty, of which $3,100 was payable immediately, a $2,000 payment due by April 1, 2015 and the final $2,000 payment by May 1, 2015. The Company has subsequently submitted 71 temporary abandonment applications, of which 71 applications were approved. The Company has up to one year to plug the wells, return them to service or file additional temporary abandonment applications.

Note 19 - Gain On Settlement of

Note 19 - Gain On Settlement of Liabilities	12 Months Ended
	Sep. 30, 2015
Notes
Note 19 - Gain On Settlement of Liabilities	NOTE 19 – GAIN ON SETTLEMENT OF LIABILITIES During the year ended September 30, 2015, the former President, Chief Executive Officer and Chairman of the board of directors forgave $84,500 of accrued compensation and four members of the Company’s board of directors entered into agreements in which $206,250 of accrued directors’ fees were forgiven in consideration of 6,000 shares of the Company’s common stock with a fair value of $6,000. The Company recognized ‘gain on settlement of liabilities” of $284,750. During the year ended September 30, 2015, the Company executed a settlement agreement with a vendor. As consideration for forgiveness of $36,983 including accrued interest, the vendor received a cash payment of $8,000. The Company recognized ‘gain on settlement of liabilities” of $18,540. During the year ended September 30, 2015, an entity controlled by a related party to the former President and Chairman of the Board of directors entered into a Lease Termination Agreement whereby certain leased property formerly utilized by the Company was returned to the related party. As consideration for forgiveness of $17,113 due from the Company per the terms of the Lease, the related party received 150,000 shares of the Company’s common stock with a fair value of $1,500 and the Company relinquished a security deposit of $1,500. The Company recognized ‘gain on settlement of liabilities” of $15,363. The total gain on settlement of liabilities as a result of the transactions described herein was $317,303 for the year ended September 30, 2015.

Note 20 - Subsequent Events

Note 20 - Subsequent Events	12 Months Ended
	Sep. 30, 2015
Notes
Note 20 - Subsequent Events	NOTE 20 – SUBSEQUENT EVENTS Warrant Purchase Agreement On September 25, 2015 , the Company executed a Warrant Purchase Agreement pursuant to which the Company plans to issue and sell securities . The terms of the Purchase Agreement allow a purchaser to receive a credit for its subscription for securities if the purchaser assumes certain accrued and/or contingent liabilities of the Company. The exercise price for the securities is $0.0050 per share for securities issued in exchange for the satisfaction of an assumed debt. The exercise price for the securities is $0.0025 per share for securities issued in exchange for the satisfaction of an assumed North Dakota reclamation liability. The securities are subject to adjustment for reverse and forward stock splits, stock dividends, stock combinations and other similar transactions of the Company’s common stock that occur after the date of the Purchase Agreement. Each purchaser is required to deliver to the Company, prior to the issuance of securities, the following: (a) immediately available funds sufficient to satisfy or otherwise terminate a given liability; or (b) a “receipt of funds and release of claims” executed by a creditor of the Company, or other evidence, in a form satisfactory to the Company in its sole discretion, of the satisfaction of an assumed debt or North Dakota reclamation liability by the purchaser. On October 8, 2015 , the Company granted 943,337 Warrants to Vast Exploration, LLC pursuant to that certain Warrant Purchase Agreement dated September 25, 2015. The Warrants were granted in consideration of Vast Exploration’s assumption of certain Company liabilities totaling approximately $471,668. The warrants may be exercised any time after October 8, 2015 until the close of business on October 7, 2020 for $0.50 per share. On November 3, 2015 , the Company granted 396,459 Warrants to Vast Exploration, LLC and/or assigns pursuant to that certain Warrant Purchase Agreement dated September 25, 2015. The Warrants were granted in consideration of Vast Exploration’s elimination of certain Company liabilities totaling approximately $198,229. The warrants may be exercised any time after November 3, 2015 until the close of business on November 3, 2020 for $0.50 per share.

Note 21 - Supplemental Oil and

Note 21 - Supplemental Oil and Gas Reserve Information (unaudited)	12 Months Ended
	Sep. 30, 2015
Notes
Note 21 - Supplemental Oil and Gas Reserve Information (unaudited)	NOTE 21 – SUPPLEMENTAL OIL AND GAS RESERVE INFORMATION (Unaudited) In January 2010, the FASB issued an ASU to amend existing oil and gas reserve accounting and disclosure guidance to align its requirements with the SEC's revised rules discussed in Note 1. The significant revisions involved revised definitions of oil and gas producing activities, changing the pricing used to estimate reserves the period end to a twelve-month arithmetic average of the first day of the month prices and additional disclosure requirements. In contrast to the SEC rule, the FASB does not permit the disclosure of probable and possible reserves in the supplemental oil and gas information in the notes to the financial statements. The amendments are effective for annual reporting periods ending on or after December 31, 2009. Application of the revised rules is prospective and companies are not required to change prior period presentation to conform to the amendments. Application of the amended guidance has only resulted in changes to the prices used to determine proved reserves at December 31, 2009. The new guidelines have expanded the definition of proved undeveloped reserves that can be recorded from an economic producer did not impact or prove undeveloped reserves. The Company follows the guidelines prescribed in ASC 932 for computing a standardized measure of future cash net cash flows and changes therein relating to estimated proved reserves. Future cash inflows and future production and development costs are determined by applying prices and costs, including transportation, quality and basis differentials to the year-end estimated quantities of oil and gas to be produced in the future. The resulting net cash flows are reduced to present value amounts by applying a ten percent annual discount factor. Future operating costs are determined based on estimates of expenditures to be incurred in producing the proved oil and gas reserves in place at the end of the period using year-end costs and assuming continuation of existing conditions, plus Company overhead incurred. Future development costs are determined based on estimates of capital expenditures to be incurred in developing proved oil and gas reserves. The assumptions used to compute the standardized measure are those prescribed by the FASB and the SEC. The assumptions do not necessarily reflect the Company's expectations of actual revenues to be derived from these reserves, nor their present value. The limitations inherent in the reserve quantity estimation process, as discussed previously, are equally applicable to the standardized measure computations since these reserve quantity estimates are the basis for the valuation process. The Company emphasizes that reserve estimates are inherently imprecise and that estimate of new discoveries and undeveloped locations are more imprecise than estimates of establishing proved producing oil properties. Users of this information should be aware that the process of estimating quantities of “proved” and “proved-developed” oil reserves is very complex, requiring significant subjective decisions in the evaluation of all available geological, engineering and economic data for each reservoir. The data for a given reservoir may also change substantially over time as a result of numerous factors including, but not limited to, additional development activity, evolving production history and continual reassessment of the viability of production under varying economic conditions. As a result, revisions to existing reserve estimates may occur from time to time. Although every reasonable effort is made to ensure reserve estimates reported represent the most accurate assessments possible, the subjective decisions and variances in available data for various reservoirs make these estimates generally less precise than other estimates included in the financial statements disclosures. Proved oil reserve quantities at September 30, 2014 and the related future net cash flows are based on the estimates prepared by independent petroleum engineers. The following reserve quantity and future net cash flow information for 2014 was prepared by Cedar Technical Associates and are consistent with internal estimates. The Company provided Cedar Technical Associates with engineering, geological and geophysical data, actual production histories and other information necessary for the reserve determination. The reserve estimates were prepared based on economic and operating conditions existing at September 30, 2014. At September 30, 2015, the Company held no ownership interest in proved developed oil reserves due to conveyance of its North Dakota property (Note 5). All of the Company's oil reserves were within the continental United States in the states of North Dakota. Based on the evaluation described in the preceding paragraph, presented below (in barrels) is a summary of changes to the Company's net interest in proved developed and proved undeveloped reserves for the years ending September 30, 2015 and 2014: September 30, 2013 60,900 Revisions of previous estimates 65,772 Purchase of minerals in place - Production (6,906) September 30, 2014 119,766 Conveyance of proved reserves (119,766) September 30, 2015 0 Oil reserves At September 30, 2015, the Company held no ownership interest in proved developed oil reserves due to conveyance of its North Dakota property (Note 5). Based on the evaluation described in the preceding paragraph, presented below (in barrels) is a summary of changes to the Company’s net interest in proved undeveloped and proved developed producing and non-producing reserves for the years ending September 30, 2015 and 2014: 2015 2014 Supplemental disclosures: Oil (Bbls) Oil (Bbls) Proved developed producing N/A 85,122 Proved developed non-producing N/A 7,635 Proved undeveloped reserves N/A 27,009 TOTAL PROVED RESERVES N/A 119,766 The reserves in this report have been estimated using deterministic methods. For wells classified as proved developed producing where sufficient production history existed, reserves were based on individual well performance evaluation and production decline curve extrapolation techniques. For undeveloped locations and wells that lacked sufficient production history, reserves were based on analogy to producing wells within the same area exhibiting similar geologic and reservoir characteristics, combined with volumetric methods. The volumetric estimates were based on geologic maps and rock and fluid properties derived from well logs, core data, pressure measurements, and fluid samples. Well spacing was determined from drainage patterns derived from a combination of performance-based recoveries and volumetric estimates for each area or field. Proved undeveloped locations were limited to areas of uniformly high quality reservoir properties, between existing commercial producers. Capitalized Costs Relating to Oil and Gas Producing Activities Evaluated and unevaluated capitalized costs related to the Company's oil and natural gas producing activities are summarized as follow in $ thousands: 2015 2014 Unproved properties $ - $ 1,462 Proved properties - 2,382 Wells and equipment 3,870 5,427 Total capitalized costs 3,870 9,271 Less: Allowance for depreciation, depletion, amortization and lease impairment (3,684) (8,993) TOTAL $ 186 $ 278 The Company will continue to evaluate its unevaluated properties; however, the timing of the ultimate evaluation and disposition of the properties has not been determined. Costs Incurred in Oil and Gas Producing Activities (in $ thousands) Costs incurred in oil and natural gas property acquisitions, exploration and development are summarized as follows, in $ thousands: Year ended September 30, 2015 2014 Property acquisitions: Unproved properties $ - $ - Proved properties (includes wells, equipment and related facilities acquired with proved reserves) - 12 Exploration - - Production and development capital expenditures - - TOTAL $ - $ 12 Standardized Measure of Discounted Future Net Cash Flow The following Standardized Measure of Discounted Future Net Cash Flow information has been developed utilizing ASC 932, Extractive Activities – Oil and Gas (ASC 932) procedures and based on estimated oil reserve and production volumes. It can be used for some comparisons, but should not be the only method used to evaluate the Company or the Company performance. Further, the information in the following table may not represent realistic assessments of future cash flows, nor should the Standardized Measure of Discounted Future Net Cash Flows be viewed as representative of the Company’s current value. The Company believes that the following factors should be taken into account when reviewing the following information: · · · · The Standardized Measure of discounted future net cash flows relating to the Company's ownership interests in proved developed oil reserves for the years ended September 30, 2015 and 2014 are as follows: Year ended September 30, 2015 2014 Future cash flows $ - $ 8,914,183 Future oil and natural gas operation expense - (2,654,896) Future abandonment costs - (910,000) Future severance tax - (445,714) Future income tax expense - - Future net cash flows - 4,903,573 Less: 10% annual discount for estimating time of cash flow - (2,518,637) STANDARDIZED MEASURE OF DISCOUNTED FUTURE CASH FLOW {sum} $ - $ 2,384,936 At September 30, 2015, the Company held no ownership interest in proved developed oil reserves due to conveyance of its North Dakota property (Note 5). Changes in Standardized Measure of Discounted Future Net Cash Flows Relating to Proved Oil Reserves The following is a summary of the changes in Standardized Measure of discounted future net cash flows for the Company’s proved oil reserves during each of the years in the two-year period ended September 30, 2015: Year ended September 30, 2015 2014 Standardized measure of discounted future cash flow at beginning of year {start} $ (878,400) $ 878,400 Net changes in price and production costs 1,339,226 (1,339,226) Sales of oil produced, net of production costs 230,238 (230,238) Revisions of previous quantity estimates (2,988,000) 2,988,000 Development costs incurred - - Change in income taxes - - Accretion of discount (88,000) 88,000 Results of Operations for Oil and Gas Producing Activities The results of operations shown below exclude non-oil and gas producing activities, corporate overhead items, interest expense and other incomes expense, gains and losses. Therefore, these results are on a different basis than results of operations reported upon in the consolidated statement of operations. All operations were conducted in the United States. The Company produces crude oil in North Dakota and natural gas in southeast Kansas. The Company produces no natural gas in North Dakota and no oil in Kansas at this time. Because of limited funding, exploration activities were not conducted in the years ended September 30, 2015 and 2014. 2015 2014 Operating revenue $ 244,283 $ 394,925 Costs and expenses: Exploration expenses - - Production expenses 399,483 238,382 Depreciation, depletion and amortization 122,806 257,097 North Dakota reclamation complaint 90,675 280,361 Accretion of asset retirement obligation 15,217 14,603 Loss on disposal and conveyance of leases and equipment 39,765 - Total costs and expenses {sum} 667,946 790,443 Net results of operations for oil and natural gas producing activities $ (423,663) $ (395,518)

Note 2 - Summary of Significa28

Note 2 - Summary of Significant Accounting Policies: Basis of Presentation (Policies)	12 Months Ended
	Sep. 30, 2015
Policies
Basis of Presentation	Basis of Presentation This summary of significant accounting policies is presented to assist in understanding the financial statements. These consolidated financial statements as of and for the years ended September 30, 2015 and 2014 are prepared using the accrual basis of accounting in accordance with generally accepted accounting principles in the United States of America ("US GAAP") and have been consistently applied in the preparation of the Consolidated Financial Statements.

Note 2 - Summary of Significa29

Note 2 - Summary of Significant Accounting Policies: Principles of Consolidation (Policies)	12 Months Ended
	Sep. 30, 2015
Policies
Principles of Consolidation	Principles of Consolidation The consolidated financial statements include the accounts of the Company and its wholly owned subsidiary JayHawk Gas Transportation Company after elimination of the intercompany accounts and transactions.

Note 2 - Summary of Significa30

Note 2 - Summary of Significant Accounting Policies: Going Concern (Policies)	12 Months Ended
	Sep. 30, 2015
Policies
Going Concern	Going Concern As shown in the accompanying consolidated financial statements, the Company has incurred operating losses since inception. As of September 30, 2015, the Company has limited financial resources with which to achieve the objectives and obtain profitability and positive cash flows. As shown in the accompanying balance sheets and statements of operations, the Company has an accumulated deficit of $27,739,165 and a net loss of $2,232,276 for the year ended September 30, 2015, and as of that date the Company's current liabilities exceeded its current assets by $2,510,515. Achievement of the Company's objectives will be dependent upon the ability to obtain additional financing, to locate profitable energy properties and generate revenue from current and planned business operations, and control costs. The Company plans to fund its future operations by joint venturing, obtaining additional financing from investors, and/or lenders, and attaining additional commercial production. However, there is no assurance that the Company will be able to achieve these objectives, therefore substantial doubt about its ability to continue as a going concern exists. The financial statements do not include adjustments relating to the recoverability of recorded assets nor the implications of associated bankruptcy costs should the Company be unable to continue as a going concern.

Note 2 - Summary of Significa31

Note 2 - Summary of Significant Accounting Policies: Reverse Stock Split (Policies)	12 Months Ended
	Sep. 30, 2015
Policies
Reverse Stock Split	Reverse Stock Split Subsequent to September 30, 2015, pursuant to a majority shareholder consent, a majority of the shareholders of the Company approved a one-for-one hundred reverse stock split of the Company’s common stock. After the reverse stock split, each holder of record will hold one share of common stock for every 100 shares held immediately prior to the effective date. As a result of the reverse stock split, the number of shares underlying outstanding stock options and warrants and the related exercise prices will be adjusted to reflect the change in the share price and outstanding shares on the date of the reverse stock split. The effect of fractional shares is not material. Following the effective date of the reverse stock split, the par value of the common stock will remain at $0.001. As a result, the Company has reduced the common stock in the consolidated balance sheets and statement of changes in stockholders’ equity included herein on a retrospective basis for all periods presented, with a corresponding increase to additional paid-in capital. All share and per-share amounts and related disclosures have been retrospectively adjusted for all periods to reflect the one-for-one hundred reverse stock split

Note 2 - Summary of Significa32

Note 2 - Summary of Significant Accounting Policies: Use of Estimates (Policies)	12 Months Ended
	Sep. 30, 2015
Policies
Use of Estimates	Use of Estimates The preparation of financial statements in accordance with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities as of the date of the consolidated financial statements and the reported amounts of revenues and expenses during the respective reporting periods. Significant areas requiring the use of management assumptions and estimates relate to asset impairments, asset retirement obligations, stock-based compensation, income taxes and derivatives. Actual results may differ from these estimates and assumptions which could have a material effect on the Company's reported financial position and results of operations.

Note 2 - Summary of Significa33

Note 2 - Summary of Significant Accounting Policies: Income Or Loss Per Common Share (Policies)	12 Months Ended
	Sep. 30, 2015
Policies
Income Or Loss Per Common Share	Income or Loss Per Common Share Basic earnings per share ("EPS") is computed as net income (loss) available to common stockholders divided by the weighted average number of common shares outstanding for the period. Diluted EPS reflects the potential dilution that could occur from common shares issuable through stock options, warrants, and other convertible securities. The dilutive effect of convertible and outstanding securities as of September 30, 2015 and 2014 would be as follows: September 30, 2015 September 30, 2014 Stock options 34,000 40,000 Convertible debt 1,573,597 1,100,287 Convertible line of credit 476,665 Warrants 160,000 37,778 TOTAL POSSIBLE DILUTION 2,244,262 1,178,065 At September 30, 2015 and 2014, the effect of the Company's outstanding options and common stock equivalents would have been anti-dilutive. Stock option, convertible debt and warrant amounts for all periods presented within this report for common stock and additional paid-in capital have been retrospectively adjusted to reflect the Reverse Stock Split (Note 20).

Note 2 - Summary of Significa34

Note 2 - Summary of Significant Accounting Policies: Revenue and Cost Recognition (Policies)	12 Months Ended
	Sep. 30, 2015
Policies
Revenue and Cost Recognition	Revenue and Cost Recognition The Company uses the sales method of accounting for oil and gas revenues. Under this method, revenues are recognized based on the actual volumes of gas and oil sold to purchasers. The volume sold may differ from the volumes the Company may be entitled to, based on the Company's individual interest in the property. Periodically, imbalances between production and nomination volumes can occur for various reasons. In cases where imbalances have occurred, a production imbalance receivable or liability will be recorded when determined. Costs associated with production are expensed in the period in which they are incurred.

Note 2 - Summary of Significa35

Note 2 - Summary of Significant Accounting Policies: Cash Equivalents (Policies)	12 Months Ended
	Sep. 30, 2015
Policies
Cash Equivalents	Cash Equivalents The Company considers all highly liquid instruments purchased with maturity of three months or less when acquired to be cash equivalents.

Note 2 - Summary of Significa36

Note 2 - Summary of Significant Accounting Policies: Trade Accounts Receivable (Policies)	12 Months Ended
	Sep. 30, 2015
Policies
Trade Accounts Receivable	Trade Accounts Receivable Trade accounts receivable are carried at original invoice amount less an estimate for doubtful accounts. There was no allowance for doubtful accounts at September 30, 2015 and 2014. Management determines the allowance 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 as income when received.

Note 2 - Summary of Significa37

Note 2 - Summary of Significant Accounting Policies: Concentrations (Policies)	12 Months Ended
	Sep. 30, 2015
Policies
Concentrations	Concentrations All of the Company’s direct operating revenues originated from oil production from its property in Crosby, North Dakota. Each revenue stream is sold to a single customer through month to month contracts. While this creates a customer concentration, there are alternate buyers of the production in the event the sole customer is unable or unwilling to purchase.

Note 2 - Summary of Significa38

Note 2 - Summary of Significant Accounting Policies: Property, Plant and Equipment (Policies)	12 Months Ended
	Sep. 30, 2015
Policies
Property, Plant and Equipment	Property, Plant and Equipment Acquisition costs associated with the acquisition of leases are capitalized when incurred. These consist of costs incurred in obtaining a mineral interest or right in the property, such as a lease, concession, license, production sharing agreement, or other type of agreement granting such rights. In addition, options to lease, brokers' fees, recording fees, legal costs, and other similar costs related to activities in acquiring property interests are capitalized. The Company follows the successful effort method of accounting for oil and gas property as promulgated in Accounting Standards Codification (ASC) Topic 932, "Extractive Activities – Oil and Gas". Under this method of accounting, acquisition costs for proved and unproved properties are capitalized when incurred. Exploration costs, including geological and geophysical costs, the costs of carrying and retaining unproved properties and exploratory dry hole drilling costs, are expensed. Development costs, including the costs to drill and equip development wells, and successful exploratory drilling costs to locate proved reserves are capitalized. Exploratory drilling costs are capitalized when incurred pending the determination of whether a well has found proved reserves. A determination of whether a well has found proved reserves is made shortly after drilling is completed. The determination is based on a process that relies on interpretations of available geologic, geophysics and engineering data. If a well is determined to be successful, the capitalized drilling costs will be reclassified as part of the cost of the well. If a well is determined to be unsuccessful, the capitalized drilling costs will be charged to expense in the period the determination is made. If an exploratory well requires a major capital expenditure before production can begin, the cost of drilling the exploratory well will continue to be carried as an asset pending determination of whether proved reserves have been found only as long as: i) the well has found a sufficient quantity of reserves to justify its completion as a producing well if the required capital expenditure is made and ii) drilling of the additional exploratory wells is under way or firmly planned for the near future. If drilling in the area is not under way or firmly planned, or if the well has not found a commercially producible quantity of reserves, the exploratory well is assumed to be impaired and its costs are charged to expense. In the absence of a determination as to whether the reserves that have been found can be classified as proved, the costs of drilling such an exploratory well is not carried as an asset for more than one year following completion of drilling. If, after that year has passed, a determination that proved reserves exist cannot be made, the well is assumed to be impaired, and its capitalized costs, net of salvage value are charged to expense. Its costs can, however, continue to be capitalized if sufficient quantities of reserves are discovered in the well to justify its completion as a producing well and sufficient progress is made in assessing the reserves and the well's economic and operating feasibility. The Company calculates depletion, depreciation and amortization (DD&A) of capitalized cost of proved oil properties on a field-by-field basis using the units-of-production method based upon proved reserves. In computing DD&A, the Company will take into consideration restoration, dismantlement and abandonment cost and the anticipated proceeds from equipment salvage. When applicable, the Company will apply the provisions of ASC Topic 410, "Accounting for Asset Retirement Obligations", ("ASC 410") which provides guidance on accounting for dismantlement and abandonment cost (see Note 11). Support equipment and other property, plant and equipment related to oil and gas production are depreciated on a straight-line basis over their estimated useful lives which range from 5 to 35 years. Property, plant and equipment unrelated to oil and gas producing activities is recorded at cost and depreciated on a straight-line basis over the estimated useful lives of the assets, which range from 3 to 25 years. The Company recognizes a gain or loss on sales or retirement of property, plant and equipment and includes the gain or loss in the results of operations in the period the sale or retirement occurs.

Note 2 - Summary of Significa39

Note 2 - Summary of Significant Accounting Policies: Impairment of Long-lived Assets (Policies)	12 Months Ended
	Sep. 30, 2015
Policies
Impairment of Long-lived Assets	Impairment of Long-Lived Assets The Company performs separate impairment tests for proved and unproved properties. Proved properties - The Company evaluates its proved properties for impairment Unproved properties In the case of unproved developed properties, the fair value of property is primarily evaluated based upon the present value of expected revenues directly associated with those assets. An impairment loss would be recognized if the carrying amount of a capitalized asset is not recoverable and exceeds its fair value.

Note 2 - Summary of Significa40

Note 2 - Summary of Significant Accounting Policies: Fair Value Measures (Policies)	12 Months Ended
	Sep. 30, 2015
Policies
Fair Value Measures	Fair Value Measures ASC Topic 820 "Fair Value Measurements" ("ASC 820") requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. ASC 820 establishes a fair value hierarchy based on the level of independent, objective evidence surrounding the inputs used to measure fair value. Categorization within the fair value hierarchy is based upon the lowest level of input that is significant to the fair value measurement. ASC 820 prioritizes the inputs into three levels that may be used to measure fair value: Level 1: Level 1 applies to assets or liabilities for which there are quoted prices in active markets for identical assets or liabilities. Level 2: Level 2 applies to assets or liabilities for which there are inputs other than quoted prices that are observable for the asset or liability such as quote prices for similar assets or liabilities in active markets; quoted prices for identical assets in markets with insufficient volume or infrequent transactions (less active markets); or model-derived valuations in which significant inputs are observable or can be derived principally from, or corroborated by, observable market data. Level 3: Level 3 applies to assets or liabilities for which there are unobservable inputs to the valuation methodology that are significant to the measurement of the fair value of the assets or liabilities.

Note 2 - Summary of Significa41

Note 2 - Summary of Significant Accounting Policies: Derivative Instruments (Policies)	12 Months Ended
	Sep. 30, 2015
Policies
Derivative Instruments	Derivative Instruments The Company has financing arrangements that contain freestanding derivative instruments or hybrid instruments that contained embedded derivative features. In accordance with U.S. GAAP, derivative instruments and hybrid instruments are recognized as either assets or liabilities in the Company’s balance sheet and are measured at fair value with gains or losses recognized in earnings depending on the nature of the derivative or hybrid instruments. Embedded derivatives that are not clearly and closely related to the host contract are bifurcated and recognized at fair value with changes in fair value recognized as either a gain or loss in earnings if they can be reliably measured. When the fair value of embedded derivative features cannot be reliably measured, the Company measures and reports the entire hybrid instrument at fair value with changes in fair value recognized as either a gain or loss in earnings. The Company determines the fair value of derivative instruments and hybrid instruments based on available market data using a Black Scholes model, giving consideration to all of the rights and obligations of each instrument and precluding the use of “blockage” discounts or premiums in determining the fair value of a large block of financial instruments. Fair value under these conditions does not necessarily represent fair value determined using valuation standards that give consideration to blockage discounts and other factors that may be considered by market participants in establishing fair value.

Note 2 - Summary of Significa42

Note 2 - Summary of Significant Accounting Policies: Income Tax and Accounting For Uncertainty (Policies)	12 Months Ended
	Sep. 30, 2015
Policies
Income Tax and Accounting For Uncertainty	Income Tax and Accounting for Uncertainty Income taxes are determined using the liability method in accordance with ASC Topic 740 "Income Taxes" ("ASC 740"). Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using the enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in the period that includes the enactment date. In addition, a valuation allowance is established to reduce any deferred tax asset for which it is determined that it is more likely than not that some portion of the deferred tax asset will not be realized. ASC 740 recognizes that the ultimate deductibility of positions taken or expected to be taken on tax returns is often uncertain. It provides guidance on when tax positions claimed by an entity can be recognized and guidance on the dollar amount at which those positions are recorded. In order to recognize the benefits associated with a tax position taken the entity must conclude that the ultimate allowability of the deduction is more likely than not. If the ultimate allowability of the tax position exceeds 50% (more likely than not), the benefit associated with the position is recognized at the largest dollar amount that has more than a 50% likelihood of being realized upon ultimate settlement. Differences between tax positions taken in a tax return and recognized in accordance with the guidance will generally result in (1) an increase in income taxes currently payable or a reduction in an income tax refund receivable or (2) an increase in a deferred tax liability or a decrease in a deferred tax asset, or both (1) and (2).

Note 2 - Summary of Significa43

Note 2 - Summary of Significant Accounting Policies: Stock Options Granted To Employees and Non-employees (Policies)	12 Months Ended
	Sep. 30, 2015
Policies
Stock Options Granted To Employees and Non-employees	Stock Options Granted to Employees and Non-Employees The Company follows financial accounting standards that require the measurement of the value of employee services received in exchange for an award of an equity instrument based on the grant-date fair value of the award. The Company estimates the fair value of employee stock option awards on the date of grant using a Black-Scholes valuation model which requires management to make certain assumptions regarding: (i) the expected volatility in the market price of the Company's common stock; (ii) dividend yield; (iii) risk-free interest rates; and (iv) the period of time employees are expected to hold the award prior to exercised (referred to as the expected holding period). The expected volatility under this valuation model is based on the current and historical implied volatilities of the Company's common stock. The dividend yield is based on the approved annual dividend rate in effect and current market price of the underlying common stock at the time of grant. The risk-free interest rate is based on the U.S. Treasury yield curve in effect at the time of grant for bonds with maturities ranging from one month to five years. The expected holding period of the awards granted is estimated using the historical exercise behavior of employees. In addition, the Company estimates the expected impact of forfeited awards and recognize stock-based compensation cost only for those awards expected to vest. The Company utilizes historical experience to estimate projected forfeitures. If actual forfeitures are materially different from estimates, stock-based compensation expense could be significantly different from what we have recorded in the current period. The cumulative effect on current and prior periods of a change in the estimated forfeiture rate is recognized as compensation cost in the period of the revision.

Note 2 - Summary of Significa44

Note 2 - Summary of Significant Accounting Policies: Stock Granted To Employees and Non-employees in Lieu of Cash Payments (Policies)	12 Months Ended
	Sep. 30, 2015
Policies
Stock Granted To Employees and Non-employees in Lieu of Cash Payments	Stock Granted to Employees and Non-Employees in Lieu of Cash Payments The Company periodically issues shares of its common stock in lieu of cash payments to certain consultants, vendors and employees. The Company follows financial accounting standards that require the measurement of the value of services received in exchange for an award of an equity instrument based on the grant-date fair value of the award.

Note 2 - Summary of Significa45

Note 2 - Summary of Significant Accounting Policies: Reclassifications (Policies)	12 Months Ended
	Sep. 30, 2015
Policies
Reclassifications	Reclassifications Certain reclassifications have been made to the 2014 financial statements in order to conform to the 2015 presentation. These reclassifications have no effect on net loss, total assets or accumulated deficit as previously reported.

Note 2 - Summary of Significa46

Note 2 - Summary of Significant Accounting Policies: New Accounting Pronouncements (Policies)	12 Months Ended
	Sep. 30, 2015
Policies
New Accounting Pronouncements	New Accounting Pronouncements From time to time, new accounting guidance is issued by the FASB that the Company adopts as of the specified effective date. If not discussed, management believe that the impact of recently issued standards, which are not yet effective, will not have a material impact on its financial statements upon adoption.

Note 2 - Summary of Significa47

Note 2 - Summary of Significant Accounting Policies: Income Or Loss Per Common Share: Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share (Tables)	12 Months Ended
	Sep. 30, 2015
Tables/Schedules
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share	September 30, 2015 September 30, 2014 Stock options 34,000 40,000 Convertible debt 1,573,597 1,100,287 Convertible line of credit 476,665 Warrants 160,000 37,778 TOTAL POSSIBLE DILUTION 2,244,262 1,178,065

Note 3 - Fair Value of Financ48

Note 3 - Fair Value of Financial Instruments: Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis (Tables)	12 Months Ended
	Sep. 30, 2015
Tables/Schedules
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis	September 30, 2015 September 30, 2014 Input Hierarchy Level Assets: Cash $ - $ 177,260 Level 1 Liabilities: Conversion option derivative liability - 676,533 Level 2 Warrant derivative liability 4,861 24,697 Level 2

Note 4 - Unproved Properties 49

Note 4 - Unproved Properties and Impairment Disclosure: Schedule of Unproved Properties and Impairment (Tables)	12 Months Ended
	Sep. 30, 2015
Tables/Schedules
Schedule of Unproved Properties and Impairment	September 30, 2015 September 30, 2014 UNPROVED AND DEVELOPED PROPERTIES Kansas Girard Project Field equipment – Jayhawk Gas Transport Company $ 2,605,871 $ 2,605,871 Field equipment - Girard 579,027 579,027 Capitalized drilling costs 684,696 614,756 Subtotal 3,869,594 3,799,654 Less accumulated impairments (2,432,087) (2,432,087) Less accumulated depreciation, depletion and amortization (1,251,984) (1,211,748) Unproved and developed properties, net 185,523 155,819 UNPROVED AND UNDEVELOPED PROPERTIES North Dakota Project, net - 40,325 Unproved and undeveloped properties, net - 40,325 TOTAL UNPROVED PROPERTIES $ 185,523 $ 196,144

Note 5 - Proved Properties an50

Note 5 - Proved Properties and Impairment: Schedule of Proved Properties and Impairment (Tables)	12 Months Ended
	Sep. 30, 2015
Tables/Schedules
Schedule of Proved Properties and Impairment	September 30, 2015 September 30, 2014 Crosby, North Dakota Properties Proved reserves $ - $ 2,381,962 Field equipment - 1,200,247 Capitalized drilling costs - 427,957 Subtotal - 4,010,166 Less impairments - (1,092,302) Less accumulated depreciation, depletion and amortization - (2,835,852) TOTAL PROVED OIL AND GAS PROPERTIES $ - $ 82,012

Note 6 - Reclamation Bonds an51

Note 6 - Reclamation Bonds and Other Long-term Assets: Schedule of Other Assets, Noncurrent (Tables)	12 Months Ended
	Sep. 30, 2015
Tables/Schedules
Schedule of Other Assets, Noncurrent	September 30, 2015 September 30, 2014 Rental security deposit $ - $ 1,500 Reclamation bonds 150,450 150,346 TOTAL RECLAMATION BONDS AND OTHER LONG TERM ASSETS $ 150,450 $ 151,846

Note 8 - Convertible Debentur52

Note 8 - Convertible Debentures: Schedule of Principal Payments on Convertible Debentures (Tables)	12 Months Ended
	Sep. 30, 2015
Tables/Schedules
Schedule of Principal Payments on Convertible Debentures	Related party Non-related party Total Year ending September 30, 2016 $ 470,439 $ - $ 470,439 Year ending September 30, 2017 - - - Year ending September 30, 2018 - - - Year ending September 30, 2019 400,000 200,000 600,000 TOTAL CONVERTIBLE DEBENTURES $ 870,439 $ 200,000 $ 1,070,439

Note 9 - Derivative Liabiliti53

Note 9 - Derivative Liabilities: Schedule of Conversion Option Derivative Liabilities, Fair value of conversion options (Tables)	12 Months Ended
	Sep. 30, 2015
Tables/Schedules
Schedule of Conversion Option Derivative Liabilities, Fair value of conversion options	Year Ended September 30, 2015 2014 Stock price $ 0.0169 $ 0.0294 Risk-free interest rate 0.01% to 0.28% 0.06% to 0.10% Expected term .25 years to 1 year .25 to .50 years Expected volatility 242.5% to 298.6% 248.6% to 339.3% Fair value of conversion option derivative units $0.003 to $0.015 $.002 to $0.01

Note 9 - Derivative Liabiliti54

Note 9 - Derivative Liabilities: Schedule of Conversion Option Derivative Liabilities, Change in conversion option liability balance (Tables)	12 Months Ended
	Sep. 30, 2015
Tables/Schedules
Schedule of Conversion Option Derivative Liabilities, Change in conversion option liability balance	For the year ended September 30, 2015 2014 Beginning balance $ 676,533 $ 177,553 Net change in fair value of conversion option liability (389,589) 115,029 Increase in fair value of conversion options due to debt amendment 957,527 383,951 Extinguishment of conversion option derivative (1,244,472) - Ending balance $ - $ 676,533

Note 9 - Derivative Liabiliti55

Note 9 - Derivative Liabilities: Schedule of fair value of warrant derivative liability (Tables)	12 Months Ended
	Sep. 30, 2015
Tables/Schedules
Schedule of fair value of warrant derivative liability	September 30, 2015 2014 Stock price $ 0.0169 $ 0.0294 Risk-free interest rate 0.56% 0.02% to 0.90% Expected term 1.88 year 1 month to 1 year Expected volatility 274.3% 128.4% to 297.7% Fair value of warrant derivative units $0.0106 $0.0002 to $0.028

Note 9 - Derivative Liabiliti56

Note 9 - Derivative Liabilities: Schedule of change in warrant derivative liability (Tables)	12 Months Ended
	Sep. 30, 2015
Tables/Schedules
Schedule of change in warrant derivative liability	Year ended September 30, 2015 2014 Beginning balance $ 24,697 $ 41,553 Net change in fair value of warrant derivative liability (19,836) (16,856) Ending balance $ 4,861 $ 24,697

Note 10 - Promissory Notes_ Sch

Note 10 - Promissory Notes: Schedule of Principal payments on Promissory Notes (Tables)	12 Months Ended
	Sep. 30, 2015
Tables/Schedules
Schedule of Principal payments on Promissory Notes	Related party Non-related party Total Year ending September 30, 2016 $ - 264,582 264,582 Year ending September 30, 2017 51,107 32,443 83,550 Year ending September 30, 2018 53,722 9,850 63,572 Year ending September 30, 2019 5,952 - 5,952 TOTAL PROMISSORY NOTES $ 110,781 $ 306,875 $ 417,656

Note 11. Asset Retirement Obl58

Note 11. Asset Retirement Obligations: Schedule of Change in Asset Retirement Obligation (Tables)	12 Months Ended
	Sep. 30, 2015
Tables/Schedules
Schedule of Change in Asset Retirement Obligation	For the year ended September 30, 2015 2014 Beginning balance $ 160,636 $ 146,033 Increase in present value of liability due to change in estimate costs (Kansas) 69,939 - Accretion expense 15,217 14,603 Ending balance $ 245,792 $ 160,636

Note 13 - Stock Based Compens59

Note 13 - Stock Based Compensation: Disclosure of Share-based Compensation Arrangements by Share-based Payment Award (Tables)	12 Months Ended
	Sep. 30, 2015
Tables/Schedules
Disclosure of Share-based Compensation Arrangements by Share-based Payment Award	Number of shares under options Weighted Average Exercise Price Per Share Aggregate Intrinsic Value Balance outstanding, September 30, 2013 20,400 $ 20.00 $ - Issued 40,000 1.00 - Exercised - - - Forfeited or rescinded (20,400) (20.00) - Balance outstanding and exercisable, September 30, 2014 40,000 $ 1.00 $ - Issued - - - Exercised - - - Forfeited (6,000) (1.00) - Balance outstanding and exercisable, September 30, 2015 34,000 $ 1.00 $ -

Note 14 - Broker and Share Pu60

Note 14 - Broker and Share Purchase Warrants: Schedule of Activity of the Company's share purchase and broker warrants (Tables)	12 Months Ended
	Sep. 30, 2015
Tables/Schedules
Schedule of Activity of the Company's share purchase and broker warrants	Broker Warrants Weighted Average Exercise Price Share Purchase Warrants Weighted Average Exercise Price Balance outstanding, September 30, 2013 10,553 $ 6.00 47,778 $ 5.00 Forfeited or expired (553) (5.00) (20,000) (5.00) Exercised - - - - Granted - - - - Balance outstanding, September 30, 2014 10,000 $ 6.00 27,778 $ 5.00 Forfeited or expired - - (27,778) (5.00) Exercised - - - - Granted - - 150,000 0.10 Balance outstanding, September 30, 2015 10,000 $ 6.00 150,000 $ 0.10

Note 16 - Supplemental Cash F61

Note 16 - Supplemental Cash Flow and Other Disclosures: Schedule of Cash Flow, Supplemental Disclosures (Tables)	12 Months Ended
	Sep. 30, 2015
Tables/Schedules
Schedule of Cash Flow, Supplemental Disclosures	For the year ended September 30, 2015 2014 Supplemental disclosures: Interest paid in cash $ 5,119 $ - Non-cash financing and investing activities: Proceeds from convertible debentures allocated to conversion option $ - 600,000 Common stock issued for conversion of debentures and interest, related party 1,187,499 35,000 Common stock issued for settlement of liabilities 7,500 - Due to working interest holder converted to promissory note 175,425 46,642 Due to related party converted to promissory note 110,781 -

Note 17 - Income Tax_ Schedule

Note 17 - Income Tax: Schedule of Deferred Tax Assets and Liabilities (Tables)	12 Months Ended
	Sep. 30, 2015
Tables/Schedules
Schedule of Deferred Tax Assets and Liabilities	For the year ended September 30, 2015 2014 Deferred tax assets rising from: Non-deductible stock based compensation $ 186,444 $ 186,444 Property and equipment 1,400,549 2,486,484 Other assets - 91,299 Net operating loss carryforward 5,752,595 3,949,318 7,339,588 6,713,545 Less valuation allowance (7,327,187) (6,713,545) Deferred tax assets $ 12,401 $ - Deferred tax liability (12,401) - NET DEFERRED TAX ASSETS AND LIABILITIES $ - $ -

Note 17 - Income Tax_ Schedul63

Note 17 - Income Tax: Schedule of Components of Income Tax Expense (Benefit) (Tables)	12 Months Ended
	Sep. 30, 2015
Tables/Schedules
Schedule of Components of Income Tax Expense (Benefit)	Year ended September 30, 2015 Rate 2014 Rate Provision (benefit) at federal statutory rate $ (781,297) 35.0 % $ (517,964) 35.0 % Permanent differences-financing instruments 244,360 (10.9%) 182,831 (12.3%) Effect of state taxes (76,705) 3.4 % (47,876) 3.2 % Increase in valuation allowances 613,642 (27.5%) 383,009 (25.9%) TOTAL $ 0 0.0 % $ 0 0.0 %

Note 21 - Supplemental Oil an64

Note 21 - Supplemental Oil and Gas Reserve Information (unaudited): Schedule of Proved Developed and Undeveloped Oil and Gas Reserve Quantities (Tables)	12 Months Ended
	Sep. 30, 2015
Tables/Schedules
Schedule of Proved Developed and Undeveloped Oil and Gas Reserve Quantities	September 30, 2013 60,900 Revisions of previous estimates 65,772 Purchase of minerals in place - Production (6,906) September 30, 2014 119,766 Conveyance of proved reserves (119,766) September 30, 2015 0

Note 21 - Supplemental Oil an65

Note 21 - Supplemental Oil and Gas Reserve Information (unaudited): Schedule Of Changes To The Company's Net Interest In Proved Undeveloped And Proved Developed Producing And Non-Producing Reserves (Tables)	12 Months Ended
	Sep. 30, 2015
Tables/Schedules
Schedule Of Changes To The Company's Net Interest In Proved Undeveloped And Proved Developed Producing And Non-Producing Reserves	2015 2014 Supplemental disclosures: Oil (Bbls) Oil (Bbls) Proved developed producing N/A 85,122 Proved developed non-producing N/A 7,635 Proved undeveloped reserves N/A 27,009 TOTAL PROVED RESERVES N/A 119,766

Note 21 - Supplemental Oil an66

Note 21 - Supplemental Oil and Gas Reserve Information (unaudited): Schedule of Evaluated and unevaluated capitalized costs related to the Company's oil and natural gas producing activities (Tables)	12 Months Ended
	Sep. 30, 2015
Tables/Schedules
Schedule of Evaluated and unevaluated capitalized costs related to the Company's oil and natural gas producing activities	2015 2014 Unproved properties $ - $ 1,462 Proved properties - 2,382 Wells and equipment 3,870 5,427 Total capitalized costs 3,870 9,271 Less: Allowance for depreciation, depletion, amortization and lease impairment (3,684) (8,993) TOTAL $ 186 $ 278

Note 21 - Supplemental Oil an67

Note 21 - Supplemental Oil and Gas Reserve Information (unaudited): Schedule of Costs incurred in oil and natural gas property acquisitions, exploration and development (Tables)	12 Months Ended
	Sep. 30, 2015
Tables/Schedules
Schedule of Costs incurred in oil and natural gas property acquisitions, exploration and development	Year ended September 30, 2015 2014 Property acquisitions: Unproved properties $ - $ - Proved properties (includes wells, equipment and related facilities acquired with proved reserves) - 12 Exploration - - Production and development capital expenditures - - TOTAL $ - $ 12

Note 21 - Supplemental Oil an68

Note 21 - Supplemental Oil and Gas Reserve Information (unaudited): Schedule of Standardized Measure of discounted future net cash flows relating to the Company's ownership interests in proved developed oil reserves (Tables)	12 Months Ended
	Sep. 30, 2015
Tables/Schedules
Schedule of Standardized Measure of discounted future net cash flows relating to the Company's ownership interests in proved developed oil reserves	Year ended September 30, 2015 2014 Future cash flows $ - $ 8,914,183 Future oil and natural gas operation expense - (2,654,896) Future abandonment costs - (910,000) Future severance tax - (445,714) Future income tax expense - - Future net cash flows - 4,903,573 Less: 10% annual discount for estimating time of cash flow - (2,518,637) STANDARDIZED MEASURE OF DISCOUNTED FUTURE CASH FLOW {sum} $ - $ 2,384,936

Note 21 - Supplemental Oil an69

Note 21 - Supplemental Oil and Gas Reserve Information (unaudited): Schedule of Changes in Standardized Measure of discounted future net cash flows for the Company's proved oil reserves (Tables)	12 Months Ended
	Sep. 30, 2015
Tables/Schedules
Schedule of Changes in Standardized Measure of discounted future net cash flows for the Company's proved oil reserves	Year ended September 30, 2015 2014 Standardized measure of discounted future cash flow at beginning of year {start} $ (878,400) $ 878,400 Net changes in price and production costs 1,339,226 (1,339,226) Sales of oil produced, net of production costs 230,238 (230,238) Revisions of previous quantity estimates (2,988,000) 2,988,000 Development costs incurred - - Change in income taxes - - Accretion of discount (88,000) 88,000

Note 21 - Supplemental Oil an70

Note 21 - Supplemental Oil and Gas Reserve Information (unaudited): Schedule of Results of Operations for Oil and Gas Producing Activities (Tables)	12 Months Ended
	Sep. 30, 2015
Tables/Schedules
Schedule of Results of Operations for Oil and Gas Producing Activities	2015 2014 Operating revenue $ 244,283 $ 394,925 Costs and expenses: Exploration expenses - - Production expenses 399,483 238,382 Depreciation, depletion and amortization 122,806 257,097 North Dakota reclamation complaint 90,675 280,361 Accretion of asset retirement obligation 15,217 14,603 Loss on disposal and conveyance of leases and equipment 39,765 - Total costs and expenses {sum} 667,946 790,443 Net results of operations for oil and natural gas producing activities $ (423,663) $ (395,518)

Note 1 - Organization and Des71

Note 1 - Organization and Description of Business (Details)	12 Months Ended
	Sep. 30, 2015
Details
Entity Incorporation, State Country Name	Colorado
Entity Incorporation, Date of Incorporation	Apr. 5, 2004
Entity Information, Former Legal or Registered Name	Bella Trading Company, Inc.
Entity Information, Date to Change Former Legal or Registered Name	Jun. 21, 2007
Disposal Date	Sep. 1, 2015

Note 2 - Summary of Significa72

Note 2 - Summary of Significant Accounting Policies: Going Concern (Details) - USD ($)	12 Months Ended
	Sep. 30, 2015	Sep. 30, 2014
Details
Accumulated deficit	$ (27,739,165)	$ (25,506,889)
Net Loss	$ (2,232,276)	$ (1,479,897)
Substantial Doubt about Going Concern, Conditions or Events	Achievement of the Company's objectives will be dependent upon the ability to obtain additional financing, to locate profitable energy properties and generate revenue from current and planned business operations, and control costs.
Substantial Doubt about Going Concern, Management's Plans, Substantial Doubt Not Alleviated	The Company plans to fund its future operations by joint venturing, obtaining additional financing from investors, and/or lenders, and attaining additional commercial production.

Note 2 - Summary of Significa73

Note 2 - Summary of Significant Accounting Policies: Income Or Loss Per Common Share: Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share (Details) - shares	Sep. 30, 2015	Sep. 30, 2014
Details
Dilutive effect of convertible and outstanding securities, Stock Options	34,000	40,000
Dilutive effect of convertible and outstanding securities, Convertible Debt	1,573,597	1,100,287
Dilutive effect of convertible and outstanding securities, Convertible Line of Credit	476,665
Dilutive effect of convertible and outstanding securities, Warrants	160,000	37,778
Dilutive effect of convertible and outstanding securities, Total Possible Dilution	2,244,262	1,178,065

Note 3 - Fair Value of Financ74

Note 3 - Fair Value of Financial Instruments: Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis (Details) - USD ($)		Sep. 30, 2015	Sep. 30, 2014
ASSETS
Cash and Cash Equivalents, Fair Value Disclosure	[1]		$ 177,260
Liabilities
Convertible Debt, Fair Value Disclosures	[2]		676,533
Derivative Liability	[2]	$ 4,861	$ 24,697
[1]	Input Hierarchy Level 1.
[2]	Input Hierarchy Level 2.

Note 4 - Unproved Properties 75

Note 4 - Unproved Properties and Impairment Disclosure: Schedule of Unproved Properties and Impairment (Details) - USD ($)		Sep. 30, 2015	Sep. 30, 2014
Unproved properties, net	[1]	$ 185,523	$ 196,144
Unproved and Developed
Capitalized drilling costs		684,696	614,756
Unproved properties, net		3,869,594	3,799,654
Oil and Gas Property, Successful Effort Method, Accumulated Impairment		(2,432,087)	(2,432,087)
Oil and Gas Property, Successful Effort Method, Accumulated Depreciation, Depletion and Amortization		(1,251,984)	(1,211,748)
Capitalized Costs, Oil and Gas Producing Activities, Net		185,523	155,819
Unproved and Developed | Jayhawk Gas Transport Company
Capitalized Costs, Support Equipment and Facilities		2,605,871	2,605,871
Unproved and Developed | Girard
Capitalized Costs, Support Equipment and Facilities		579,027	579,027
Unproved and Undeveloped
Capitalized Costs, Oil and Gas Producing Activities, Net			40,325
Unproved and Undeveloped | North Dakota Project
Capitalized Costs, Oil and Gas Producing Activities, Net			40,325
Unproved
Capitalized Costs, Oil and Gas Producing Activities, Net		$ 185,523	$ 196,144
[1]	Note 4

Note 5 - Proved Properties an76

Note 5 - Proved Properties and Impairment (Details)	12 Months Ended
	Sep. 30, 2015USD ($)
Jenks and Knudsen well bores
Loss on write-offs	$ 11,527

Note 5 - Proved Properties an77

Note 5 - Proved Properties and Impairment: Schedule of Proved Properties and Impairment (Details) - USD ($)		Sep. 30, 2015	Sep. 30, 2014
Proved properties, net	[1]		$ 82,012
Proved
Capitalized Costs, Support Equipment and Facilities			1,200,247
Capitalized drilling costs			427,957
Proved properties, net			4,010,166
Oil and Gas Property, Successful Effort Method, Accumulated Impairment			(1,092,302)
Oil and Gas Property, Successful Effort Method, Accumulated Depreciation, Depletion and Amortization			(2,835,852)
Capitalized Costs, Oil and Gas Producing Activities, Net			$ 82,012
[1]	Note 5

Note 6 - Reclamation Bonds an78

Note 6 - Reclamation Bonds and Other Long-term Assets: Schedule of Other Assets, Noncurrent (Details) - USD ($)	Sep. 30, 2015	Sep. 30, 2014
Details
Rental Security Deposit		$ 1,500
Reclamation Bonds	$ 150,450	150,346
Rental Security Deposit, Reclamation Bonds, and other long-term assets	$ 150,450	$ 151,846

Note 7 - Convertible Line of 79

Note 7 - Convertible Line of Credit Related Party (Details)	12 Months Ended
	Sep. 30, 2015USD ($)
Vast Exploration, LLC - Credit Loan Agreement
Line of Credit Facility, Initiation Date	Jun. 30, 2015
Line of Credit Facility, Description	revolving credit loan agreement
Line of Credit Facility, Maximum Borrowing Capacity	$ 100,000
Line of Credit Facility, Interest Rate Description	interest rate equal to 1.5% per month of the unpaid principal balance
Line of Credit Facility, Frequency of Payment and Payment Terms	The Company is required to pay principal on demand or, if not sooner demanded, then on or before June 30, 2016. The Company is required to pay interest on demand or, if not sooner demanded, then on the 1st day of each month, commencing August 1, 2015.
Line of Credit Facility, Fair Value of Amount Outstanding	$ 170,285
Line of Credit Facility, accrued interest balance	$ 16,183
Vast Exploration, LLC - Line of Credit Modification Agreement
Line of Credit Facility, Initiation Date	Aug. 6, 2015
Line of Credit Facility, Description	Line of Credit Modification Agreement
Line of Credit Facility, Maximum Borrowing Capacity	$ 150,000
Vast Exploration, LLC - Second Line of Credit Modification Agreement
Line of Credit Facility, Initiation Date	Sep. 25, 2015
Line of Credit Facility, Description	Second Line of Credit Modification Agreement

Note 8 - Convertible Debentur80

Note 8 - Convertible Debentures (Details) - USD ($)	12 Months Ended
	Sep. 30, 2015	Sep. 30, 2014
Details
Discount recognized on debentures		$ 600,000
Interest expense related to the amortization of discount	$ 120,000	$ 40,000
Debenture and accrued interest balance	$ 1,103,038

Note 8 - Convertible Debentur81

Note 8 - Convertible Debentures: Schedule of Principal Payments on Convertible Debentures (Details) - Convertible debentures	Sep. 30, 2015USD ($)
Long-term Debt, Maturities, Repayments of Principal, Remainder of Fiscal Year	$ 470,439
Long-term Debt, Maturities, Repayments of Principal in Year Four	600,000
Long-term Debt	1,070,439
Related party
Long-term Debt, Maturities, Repayments of Principal, Remainder of Fiscal Year	470,439
Long-term Debt, Maturities, Repayments of Principal in Year Four	400,000
Long-term Debt	870,439
Non-related party
Long-term Debt, Maturities, Repayments of Principal in Year Four	200,000
Long-term Debt	$ 200,000

Note 9 - Derivative Liabiliti82

Note 9 - Derivative Liabilities (Details)	Sep. 30, 2015USD ($)
Details
Derivative Liability, Fair Value, Gross Liability	$ 1,244,472

Note 9 - Derivative Liabiliti83

Note 9 - Derivative Liabilities: Schedule of Conversion Option Derivative Liabilities, Fair value of conversion options (Details) - Conversion option derivative - $ / shares	12 Months Ended
	Sep. 30, 2015	Sep. 30, 2014
Share Price	$ 0.0169	$ 0.0294
Minimum
Fair Value Assumptions, Risk Free Interest Rate	0.01%	0.06%
Fair Value Assumptions, Expected Term	3 months	3 months
Fair Value Assumptions, Expected Volatility Rate	242.50%	248.60%
Fair Value Assumptions, Exercise Price	$ 0.003	$ 0.002
Maximum
Fair Value Assumptions, Risk Free Interest Rate	0.28%	0.10%
Fair Value Assumptions, Expected Term	1 year	6 months
Fair Value Assumptions, Expected Volatility Rate	298.60%	339.30%
Fair Value Assumptions, Exercise Price	$ 0.015	$ 0.01

Note 9 - Derivative Liabiliti84

Note 9 - Derivative Liabilities: Schedule of Conversion Option Derivative Liabilities, Change in conversion option liability balance (Details) - Conversion option derivative - USD ($)	12 Months Ended
	Sep. 30, 2015	Sep. 30, 2014
Derivative Liability, Conversion Option	$ 676,533	$ 177,553
Increase (Decrease) in Derivative Liabilities	(389,589)	115,029
Increase in fair value of conversion options due to debt amendment	957,527	383,951
Extinguishment of conversion option derivative	$ (1,244,472)
Derivative Liability, Conversion Option		$ 676,533

Note 9 - Derivative Liabiliti85

Note 9 - Derivative Liabilities: Schedule of fair value of warrant derivative liability (Details) - Warrant derivative - $ / shares	12 Months Ended
	Sep. 30, 2015	Sep. 30, 2014
Share Price	$ 0.0169	$ 0.0294
Fair Value Assumptions, Risk Free Interest Rate	0.56%
Fair Value Assumptions, Expected Term	1 year 10 months 17 days
Fair Value Assumptions, Expected Volatility Rate	274.30%
Fair Value Assumptions, Exercise Price	$ 0.0106
Minimum
Fair Value Assumptions, Risk Free Interest Rate		0.02%
Fair Value Assumptions, Expected Term		1 month
Fair Value Assumptions, Expected Volatility Rate		128.40%
Fair Value Assumptions, Exercise Price		$ 0.0002
Maximum
Fair Value Assumptions, Risk Free Interest Rate		0.90%
Fair Value Assumptions, Expected Term		12 months
Fair Value Assumptions, Expected Volatility Rate		297.70%
Fair Value Assumptions, Exercise Price		$ 0.028

Note 9 - Derivative Liabiliti86

Note 9 - Derivative Liabilities: Schedule of change in warrant derivative liability (Details) - Warrant derivative - USD ($)	12 Months Ended
	Sep. 30, 2015	Sep. 30, 2014
Derivative Liability, Warrant	$ 24,697	$ 41,553
Increase (Decrease) in Derivative Liabilities	(19,836)	(16,856)
Derivative Liability, Warrant	$ 4,861	$ 24,697

Note 10 - Promissory Notes (Det

Note 10 - Promissory Notes (Details)	12 Months Ended
	Sep. 30, 2015USD ($)
Promissory Note 1
Debt Instrument, Issuance Date	Jul. 12, 2014
Debt Instrument, Description	Company entered into a promissory note
Debt Instrument, Face Amount	$ 46,642
Debt Instrument, Issuer	working interest partner
Debt Instrument, Payment Terms	The Company was scheduled to make seven monthly payments in the amount of $2,500 and subsequently make ten monthly payments in the amount of $2,914.
Long-term Debt	$ 31,642
Promissory Note 2
Debt Instrument, Issuance Date	Jan. 27, 2015
Debt Instrument, Description	Company entered into a promissory note
Debt Instrument, Face Amount	$ 189,790
Debt Instrument, Issuer	working interest partner
Debt Instrument, Payment Terms	The Company will make nineteen monthly payments in the amount of $9,542 and subsequently make one monthly payment in the amount of $19,016.
Long-term Debt	$ 201,139
Debt Instrument, Interest Rate, Stated Percentage	6.00%
Promissory Note 3
Debt Instrument, Issuance Date	Feb. 12, 2015
Debt Instrument, Description	Company entered into a promissory note
Debt Instrument, Face Amount	$ 49,696
Debt Instrument, Issuer	a vendor
Debt Instrument, Payment Terms	make one payment of $5,000, thirty-eight monthly payments in the amount of $1,500 and subsequently make one monthly payments in the amount of $1,378
Long-term Debt	$ 37,790
Debt Instrument, Interest Rate, Stated Percentage	8.00%
Promissory Note 4
Debt Instrument, Issuance Date	Aug. 28, 2015
Debt Instrument, Description	Company entered into a promissory note
Debt Instrument, Face Amount	$ 37,892
Debt Instrument, Issuer	service provider
Debt Instrument, Payment Terms	make twenty-four monthly payments in the amount of $1,579
Long-term Debt	$ 36,304
Debt Instrument, Interest Rate, Stated Percentage	0.00%
Separation Agreement
Debt Instrument, Description	Company entered into a Separation Agreement with an executive
Debt Instrument, Face Amount	$ 110,781
Debt Instrument, Issuer	an executive
Debt Instrument, Payment Terms	The Company is scheduled to make twenty-four monthly payments beginning no later than October 31, 2016.
Debt Instrument, Interest Rate, Stated Percentage	5.00%

Note 10 - Promissory Notes_ S88

Note 10 - Promissory Notes: Schedule of Principal payments on Promissory Notes (Details) - Promissory Notes	Sep. 30, 2015USD ($)
Long-term Debt, Maturities, Repayments of Principal, Remainder of Fiscal Year	$ 264,582
Long-term Debt, Maturities, Repayments of Principal in Year Two	83,550
Long-term Debt, Maturities, Repayments of Principal in Year Three	63,572
Long-term Debt, Maturities, Repayments of Principal in Year Four	5,952
Long-term Debt	417,656
Related party
Long-term Debt, Maturities, Repayments of Principal in Year Two	51,107
Long-term Debt, Maturities, Repayments of Principal in Year Three	53,722
Long-term Debt, Maturities, Repayments of Principal in Year Four	5,952
Long-term Debt	110,781
Non-related party
Long-term Debt, Maturities, Repayments of Principal, Remainder of Fiscal Year	264,582
Long-term Debt, Maturities, Repayments of Principal in Year Two	32,443
Long-term Debt, Maturities, Repayments of Principal in Year Three	9,850
Long-term Debt	$ 306,875

Note 11. Asset Retirement Obl89

Note 11. Asset Retirement Obligations (Details) - USD ($)	12 Months Ended
	Sep. 30, 2015	Sep. 30, 2014
Accretion of asset retirement obligation	$ 15,217	$ 14,603
Asset retirement obligation	245,792	160,636
Girard, Kansas and Crosby, North Dakota operating sites
Accretion of asset retirement obligation	15,217	$ 14,603
Asset retirement obligation	$ 133,481

Note 11. Asset Retirement Obl90

Note 11. Asset Retirement Obligations: Schedule of Change in Asset Retirement Obligation (Details) - USD ($)	12 Months Ended
	Sep. 30, 2015	Sep. 30, 2014
Asset Retirement Obligation, Beginning Balance	$ 160,636
Accretion of asset retirement obligation	15,217	$ 14,603
Asset Retirement Obligation, Ending Balance	245,792	160,636
Kansas properties
Asset Retirement Obligation, Beginning Balance	160,636	146,033
Asset Retirement Obligation, Revision of Estimate	69,939
Accretion of asset retirement obligation	15,217	14,603
Asset Retirement Obligation, Ending Balance	$ 245,792	$ 160,636

Note 12 - Common Stock (Details

Note 12 - Common Stock (Details) - shares	Sep. 30, 2015	Jun. 08, 2015	Apr. 30, 2015	Sep. 30, 2014	Nov. 11, 2013
Common Stock, Shares Issued	1,998,756			803,758
Holder of 10% convertible debentures
Common Stock, Shares Issued					35,000
Vast Exploration
Common Stock, Shares Issued			1,187,498
Certain directors of the Company
Common Stock, Shares Issued		6,000
A related party
Common Stock, Shares Issued	1,500

Note 13 - Stock Based Compens92

Note 13 - Stock Based Compensation (Details) - USD ($)	12 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Oct. 10, 2013	Aug. 11, 2009
Compensation cost related to options vested	$ 0	$ 24,803
Stock and option plan
Share-based Compensation Arrangement by Share-based Payment Award, Description	The Company’s board of directors approved a stock and option plan on August 11, 2009 (the “Plan”).
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized			40,000	4,000,000
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Weighted Average Remaining Contractual Term	3 years 9 months 11 days
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period, Intrinsic Value	$ 0	$ 0
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number	40,000	34,000

Note 13 - Stock Based Compens93

Note 13 - Stock Based Compensation: Disclosure of Share-based Compensation Arrangements by Share-based Payment Award (Details) - Stock Compensation Plan - $ / shares	12 Months Ended
	Sep. 30, 2015	Sep. 30, 2014
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number, Beginning Balance	40,000	20,400
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price, Beginning Balance	$ 1	$ 20
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross		40,000
Share-based Compensation Arrangements by Share-based Payment Award, Options, Grants in Period, Weighted Average Exercise Price		$ 1
Share-based Compensation Arrangement by Share-based Payment Award, Options, Forfeitures in Period	(6,000)	(20,400)
Share-based Compensation Arrangements by Share-based Payment Award, Options, Forfeitures in Period, Weighted Average Exercise Price	$ (1)	$ (20)
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number, Ending Balance	34,000	40,000
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price, Ending Balance	$ 1	$ 1

Note 14 - Broker and Share Pu94

Note 14 - Broker and Share Purchase Warrants: Schedule of Activity of the Company's share purchase and broker warrants (Details) - $ / shares	12 Months Ended
	Sep. 30, 2015	Sep. 30, 2014
Broker Warrants
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number, Beginning Balance	10,000	10,553
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price, Beginning Balance	$ 6	$ 6
Share-based Compensation Arrangement by Share-based Payment Award, Options, Forfeitures in Period		(553)
Share-based Compensation Arrangements by Share-based Payment Award, Options, Forfeitures in Period, Weighted Average Exercise Price		$ (5)
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number, Ending Balance	10,000	10,000
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price, Ending Balance	$ 6	$ 6
Share Purchase Warrants
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number, Beginning Balance	27,778	47,778
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price, Beginning Balance	$ 5	$ 5
Share-based Compensation Arrangement by Share-based Payment Award, Options, Forfeitures in Period	(27,778)	(20,000)
Share-based Compensation Arrangements by Share-based Payment Award, Options, Forfeitures in Period, Weighted Average Exercise Price	$ (5)	$ (5)
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross	150,000
Share-based Compensation Arrangements by Share-based Payment Award, Options, Grants in Period, Weighted Average Exercise Price	$ 0.10
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number, Ending Balance	150,000	27,778
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price, Ending Balance	$ 0.10	$ 5

Note 14 - Broker and Share Pu95

Note 14 - Broker and Share Purchase Warrants (Details) - USD ($)	12 Months Ended
	Sep. 30, 2015	Apr. 17, 2015
Fair value of the warrants issued		$ 167,441
Broker Warrants
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Date	Feb. 15, 2017
Class of Warrant or Right, Exercise Price of Warrants or Rights	$ 6

Note 15 - Related Party Trans96

Note 15 - Related Party Transactions (Details) - USD ($)	12 Months Ended
	Sep. 30, 2015	Sep. 30, 2014
Marlin Property Management, LLC
Related Party Transaction, Date	Dec. 1, 2011
Related Party Transaction, Description of Transaction	Company entered into a four-year lease
Related Party Transaction, Terms and Manner of Settlement	Company is required to pay $2,500 per month
Related Party Transaction, Purchases from Related Party	$ 15,000	$ 15,000
Due to Related Parties, Current	$ 0
Vast Exploration, LLC
Related Party Transaction, Date	Jul. 8, 2015
Related Party Transaction, Description of Transaction	Company executed a Contract Operating Agreement
Related Party Transaction, Terms and Manner of Settlement	Company will pay Vast Exploration a monthly fee for services in the amount of $20,000
Due to Related Parties, Current	$ 5,000

Note 16 - Supplemental Cash F97

Note 16 - Supplemental Cash Flow and Other Disclosures: Schedule of Cash Flow, Supplemental Disclosures (Details) - USD ($)	12 Months Ended
	Sep. 30, 2015	Sep. 30, 2014
Supplemental Cash Flow Information
Interest Paid	$ 5,119
Proceeds from convertible debentures allocated to conversion option
Cash Flow, Noncash Investing and Financing Activities Disclosure
Conversion of Stock, Amount Converted		$ 600,000
Common stock issued for conversion of debentures and interest, related party
Cash Flow, Noncash Investing and Financing Activities Disclosure
Conversion of Stock, Amount Issued	$ 1,187,499	$ 35,000
Common stock issued for settlement of liabilities
Cash Flow, Noncash Investing and Financing Activities Disclosure
Conversion of Stock, New Issuance	7,500
Due to working interest holder converted to promissory note
Cash Flow, Noncash Investing and Financing Activities Disclosure
Other Significant Noncash Transaction, Consideration Received	175,425	46,642
Due to related party converted to promissory note
Cash Flow, Noncash Investing and Financing Activities Disclosure
Other Significant Noncash Transaction, Consideration Received	110,781

Note 17 - Income Tax (Details)

Note 17 - Income Tax (Details) - USD ($)	12 Months Ended
	Sep. 30, 2015	Sep. 30, 2014
Details
Provision for income taxes	$ 0	$ 0

Note 17 - Income Tax_ Schedul99

Note 17 - Income Tax: Schedule of Deferred Tax Assets and Liabilities (Details) - USD ($)	Sep. 30, 2015	Sep. 30, 2014
Deferred Tax Assets, Net
Deferred Tax Assets, Tax Deferred Expense, Compensation and Benefits, Share-based Compensation Cost	$ 186,444	$ 186,444
Deferred Tax Assets, Property, Plant and Equipment	1,400,549	2,486,484
Deferred Tax Assets, Other		91,299
Deferred Tax Assets, Operating Loss Carryforwards	5,752,595	3,949,318
Deferred Tax Assets, Gross	7,339,588	6,713,545
Deferred Tax Assets, Valuation Allowance	(7,327,187)	$ (6,713,545)
Deferred Tax Assets, Net of Valuation Allowance	12,401
Deferred Tax Liabilities, Gross	$ (12,401)

Note 17 - Income Tax_ Schedu100

Note 17 - Income Tax: Schedule of Components of Income Tax Expense (Benefit) (Details) - USD ($)	12 Months Ended
	Sep. 30, 2015	Sep. 30, 2014
Details
Effective Income Tax Rate Reconciliation at Federal Statutory Income Tax Rate, Amount	$ (781,297)	$ (517,964)
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent	35.00%	35.00%
Effective Income Tax Rate Reconciliation, Other Adjustments, Amount	$ 244,360	$ 182,831
Effective Income Tax Rate Reconciliation, Other Adjustments, Percent	(10.90%)	(12.30%)
Effective Income Tax Rate Reconciliation, State and Local Income Taxes, Amount	$ (76,705)	$ (47,876)
Effective Income Tax Rate Reconciliation, State and Local Income Taxes, Percent	3.40%	3.20%
Valuation Allowance, Deferred Tax Asset, Increase (Decrease), Amount	$ 613,642	$ 383,009
Increase (decrease) in valuation allowances	(27.50%)	(25.90%)
Provision for income taxes	$ 0	$ 0
Effective Income Tax Rate Reconciliation, Percent	0.00%	0.00%

Note 18 - Commitments and Co101

Note 18 - Commitments and Contingencies (Details)	12 Months Ended
	Sep. 30, 2015USD ($)
Details
Loss Contingency, Settlement Agreement, Date	February 12, 2015
Loss Contingency, Settlement Agreement, Terms	The Company was found in violation of failure to plug, return to service or temporarily abandon 71 wells and assessed a $7,100 penalty, of which $3,100 was payable immediately, a $2,000 payment due by April 1, 2015 and the final $2,000 payment by May 1, 2015.
Litigation Settlement, Amount	$ (7,100)

Note 19 - Gain On Settlement102

Note 19 - Gain On Settlement of Liabilities (Details)	12 Months Ended
	Sep. 30, 2015USD ($)
Gain on settlement of liabilities	$ (317,303)
Former President, Chief Executive Officer and Chairman of the board
Gain on settlement of liabilities	84,500
Accrued directors' fees
Gain on settlement of liabilities	206,250
Former President and Directors
Gain on settlement of liabilities	284,750
A vendor
Gain on settlement of liabilities	18,540
An entity controlled by a related party
Gain on settlement of liabilities	15,363
Total
Gain on settlement of liabilities	$ 317,303

Note 20 - Subsequent Events (De

Note 20 - Subsequent Events (Details)	12 Months Ended
	Sep. 30, 2015
Event 1
Subsequent Event, Date	Sep. 25, 2015
Subsequent Event, Description	Company executed a Warrant Purchase Agreement pursuant to which the Company plans to issue and sell securities
Event 2
Subsequent Event, Date	Oct. 8, 2015
Subsequent Event, Description	Company granted 943,337 Warrants to Vast Exploration, LLC
Event 3
Subsequent Event, Date	Nov. 3, 2015
Subsequent Event, Description	Company granted 396,459 Warrants to Vast Exploration, LLC and/or assigns

Note 21 - Supplemental Oil a104

Note 21 - Supplemental Oil and Gas Reserve Information (unaudited): Schedule of Proved Developed and Undeveloped Oil and Gas Reserve Quantities (Details) - bbl	12 Months Ended
	Sep. 30, 2015	Sep. 30, 2014
Details
TOTAL PROVED RESERVES	119,766	60,900
Proved Developed and Undeveloped Reserves, Revisions of Previous Estimates		65,772
Proved Developed and Undeveloped Reserves, Production		(6,906)
Conveyance of proved reserves	(119,766)
TOTAL PROVED RESERVES		119,766

Note 21 - Supplemental Oil a105

Note 21 - Supplemental Oil and Gas Reserve Information (unaudited): Schedule Of Changes To The Company's Net Interest In Proved Undeveloped And Proved Developed Producing And Non-Producing Reserves (Details) - bbl	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2013
Details
Proved developed producing		85,122
Proved developed non-producing		7,635
Proved Undeveloped Reserves		27,009
TOTAL PROVED RESERVES		119,766	60,900

Note 21 - Supplemental Oil a106

Note 21 - Supplemental Oil and Gas Reserve Information (unaudited): Schedule of Evaluated and unevaluated capitalized costs related to the Company's oil and natural gas producing activities (Details) - USD ($) $ in Thousands	12 Months Ended
	Sep. 30, 2015	Sep. 30, 2014
Details
Capitalized Costs, Unproved Properties		$ 1,462
Capitalized Costs, Proved Properties		2,382
Capitalized Costs, Wells and Equipment	$ 3,870	5,427
Capitalized Costs, Total	3,870	9,271
Capitalized Costs,Allowance for Depreciation, Depletion, Amortization and Lease Impairment	(3,684)	(8,993)
Evaluated and unevaluated Capitalized Costs, Total	$ 186	$ 278

Note 21 - Supplemental Oil a107

Note 21 - Supplemental Oil and Gas Reserve Information (unaudited): Schedule of Costs incurred in oil and natural gas property acquisitions, exploration and development (Details) $ in Thousands	12 Months Ended
	Sep. 30, 2014USD ($)
Details
Costs incurred in oil and natural gas property acquisitions, Proved Properties	$ 12
Costs incurred in oil and natural gas property, Total	$ 12

Note 21 - Supplemental Oil a108

Note 21 - Supplemental Oil and Gas Reserve Information (unaudited): Schedule of Standardized Measure of discounted future net cash flows relating to the Company's ownership interests in proved developed oil reserves (Details)	Sep. 30, 2014USD ($)
Details
Future Net Cash Flows Relating to Proved Oil and Gas Reserves, Cash Inflows	$ 8,914,183
Future Net Cash Flows Relating to Proved Oil and Gas Reserves, Production Costs	(2,654,896)
Future abandonment costs	(910,000)
Future severance tax	(445,714)
Future Net Cash Flows Relating to Proved Oil and Gas Reserves, Net Cash Flows	4,903,573
Future Net Cash Flows Relating to Proved Oil and Gas Reserves, Ten Percent Annual Discount for Estimated Timing of Cash Flows	(2,518,637)
Standardized measure of discounted future cash flow relating to proved developed oil and gas reserves	$ 2,384,936

Note 21 - Supplemental Oil a109

Note 21 - Supplemental Oil and Gas Reserve Information (unaudited): Schedule of Changes in Standardized Measure of discounted future net cash flows for the Company's proved oil reserves (Details) - USD ($)	12 Months Ended
	Sep. 30, 2015	Sep. 30, 2014
Details
Standardized Measure of Discounted Future Net Cash Flows Relating to Proved Oil and Gas Reserves	$ (878,400)	$ 878,400
Net Increase (Decrease) in Sales and Transfer Prices and Production Costs	1,339,226	(1,339,226)
Sales and Transfers of Oil and Gas Produced, Net of Production Costs	230,238	(230,238)
Revisions of Previous Quantity Estimates	(2,988,000)	2,988,000
Accretion of Discount	$ (88,000)	$ 88,000

Note 21 - Supplemental Oil a110

Note 21 - Supplemental Oil and Gas Reserve Information (unaudited): Schedule of Results of Operations for Oil and Gas Producing Activities (Details) - USD ($)	12 Months Ended
	Sep. 30, 2015	Sep. 30, 2014
Details
Results of Operations, Revenue from Oil and Gas Producing Activities	$ 244,283	$ 394,925
Results of Operations, Expense from Oil and Gas Producing Activities
Results of Operations, Production or Lifting Costs	399,483	238,382
Results of Operations, Depreciation, Depletion and Amortization, and Valuation Provisions	122,806	257,097
Results of Operations, Impairment of Oil and Gas Properties	90,675	280,361
Results of Operations, Accretion of Asset Retirement Obligations	15,217	14,603
Costs Incurred, Asset Retirement Obligation Incurred	39,765
Results of Operations, Expense from Oil and Gas Producing Activities	667,946	790,443
Results of Operations, Oil and Gas Producing Activities Net Income (Excluding Corporate Overhead and Interest Costs)	$ (423,663)	$ (395,518)