Jayhawk Energy (JYHW) Inactive 10-K28 Jan 142013 FY Annual reportFinancial data

Company Profile

Document_and_Entity_Informatio

Document and Entity Information (USD $)	12 Months Ended
Document and Entity Information (USD $)	Sep. 30, 2013	Jan. 14, 2014	Mar. 31, 2013
Document And Entity Information	'	'	'
Entity Registrant Name	'Jayhawk Energy, Inc.	'	'
Entity Central Index Key	'0001308710	'	'
Document Type	'10-K	'	'
Document Period End Date	30-Sep-13	'	'
Amendment Flag	'false	'	'
Current Fiscal Year End Date	'--09-30	'	'
Is Entity a Well-known Seasoned Issuer?	'No	'	'
Is Entity a Voluntary Filer?	'No	'	'
Is Entity's Reporting Status Current?	'Yes	'	'
Entity Filer Category	'Smaller Reporting Company	'	'
Entity Public Float	'	'	$1,868,345
Entity Common Stock, Shares Outstanding	'	80,375,841	'
Document Fiscal Period Focus	'FY	'	'
Document Fiscal Year Focus	'2013	'	'

Consolidated_Balance_Sheets

Consolidated Balance Sheets (USD $)	Sep. 30, 2013	Sep. 30, 2012
Statement of Financial Position [Abstract]	'	'
Cash	$96,833	$74,496
Trade accounts receivable, less allowance for doubtful accounts	68,497	132,454
Other current assets	10,299	10,189
TOTAL CURRENT ASSETS	175,629	217,139
Unproved properties, net (NOTE 4)	235,341	380,371
Proved properties, net (NOTE 5)	288,384	509,705
Office equipment, furniture and leasehold improvements, net	'	3,781
NET PROPERTY AND EQUIPMENT	523,725	893,857
OTHER LONG-TERM ASSETS (NOTE 6)	151,736	101,621
TOTAL ASSETS	851,090	1,212,617
Accounts payable	571,107	587,228
Due to other working and royalty interests	540,676	437,202
Other payables, interest and taxes accrued	263,292	232,917
Accrual for North Dakota reclamation complaint (NOTE 16)	330,000	'
Convertible debenture (NOTE 7)	1,073,687	1,164,000
TOTAL CURRENT LIABILITIES	2,778,762	2,421,347
Conversion option derivative (NOTE 8)	177,553	109,414
Warrant derivative liability (NOTE 8)	41,553	58,257
Asset Retirement Obligation (NOTE 9)	146,033	187,463
TOTAL LONG TERM LIABILITIES	365,139	355,134
TOTAL LIABILITIES	3,143,901	2,776,481
COMMITMENTS AND CONTINGENCIES (NOTE 16)	'	'
Preferred Stock, $.001 par value; 10,000,0000 shares authorized, none issued and outstanding	'	'
Common Stock, $.001 par value; 200,000,000 shares authorized; 76,875,841 and 60,759,178 shares issued and outstanding, respectively	$76,875	$60,759
Additional paid-in capital	21,657,306	21,138,419
Accumulated deficit	-24,026,992	-22,763,042
TOTAL STOCKHOLDERS' EQUITY (DEFICIT)	-2,292,811	-1,563,864
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)	$851,090	$1,212,617

Consolidated_Balance_Sheets_Pa

Consolidated Balance Sheets (Parenthetical)	Sep. 30, 2013	Sep. 30, 2012
Statement of Financial Position [Abstract]	'	'
Preferred stock, $.001 par value, authorized	10,000,000	10,000,000
Preferred stock, $.001 par value issued	0	0
Common Stock, $.001 par value, authorized	200,000,000	200,000,000
Common Stock, $.001 par value issued	76,875,841	60,759,178

Consolidated_Statements_of_Ope

Consolidated Statements of Operations (USD $)	13 Months Ended
Consolidated Statements of Operations (USD $)	Oct. 31, 2013	Oct. 31, 2012
REVENUE	'	'
Oil sales	$411,756	$659,617
Gas sales	'	3,612
TOTAL GROSS REVENUE	411,756	663,229
OPERATING EXPENSE	'	'
Production costs-oil	195,513	293,107
Production costs-natural gas	14,551	30,949
Depreciation, depletion, amortization and asset impairment expense	298,156	730,868
(Gain) on sales of leases and equipment	-90,721	'
Impairment of proved and unproved properties	'	3,275,000
Accretion of asset retirement obligation	18,746	17,042
Gain on change of asset retirement obligation estimate	-36,242	'
North Dakota reclamation complaint	330,000	'
General and administrative	391,217	680,419
TOTAL OPERATING EXPENSES	1,121,220	5,027,385
OPERATING LOSS	-709,464	-4,364,156
OTHER INCOME (EXPENSE)	'	'
Interest and financing costs	-180,280	-128,594
Loss on extinguishment of debt	-1,492,912	-1,075,114
Gain on change in fair value of conversion option derivative	1,024,664	908,169
Gain (Loss) on change in fair value of warrant derivative	114,760	400,961
Amortization of discount on debentures	'	-94,075
Other income (expense)	-20,718	4,657
TOTAL OTHER INCOME (EXPENSE)	-554,486	16,004
LOSS BEFORE INCOME TAX	-1,263,950	-4,348,152
Provision for income taxes	'	'
NET LOSS	($1,263,950)	($4,348,152)
Basic and diluted loss per share	($0.02)	($0.07)
Basic and diluted weighted average number shares outstanding	67,465,443	59,890,346

Consolidated_Statement_of_Chan

Consolidated Statement of Changes in Stockholders' Equity (Deficit) (USD $)	12 Months Ended
	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2011
Issuance of common shares for conversion of debentures (in shares)	0	0	0
Issuance of common shares for conversion of debentures	$451,566	$76,228	$0
Issuance of common shares in lieu of cash for interest (in shares)	0	0	0
Issuance of common shares in lieu of cash for interest	70,853	79,666	0
Issuance of common shares for charitable contribution (in shares)	0	0	0
Issuance of common shares for charitable contribution	0	5,000	0
Stock options	12,584	12,584	0
Loss	-1,263,950	-4,348,152	0
Balance (in shares)	0	0	0
Balance	-2,292,811	-1,563,864	2,610,810
Common Stock	'	'	'
Issuance of common shares for conversion of debentures (in shares)	9,031,400	958,333	0
Issuance of common shares for conversion of debentures	9,031	958	0
Issuance of common shares in lieu of cash for interest (in shares)	7,085,263	1,481,267	0
Issuance of common shares in lieu of cash for interest	7,085	1,482	0
Issuance of common shares for charitable contribution (in shares)	0	83,333	0
Issuance of common shares for charitable contribution	0	83	0
Stock options	0	0	0
Loss	0	0	0
Balance (in shares)	76,875,841	60,759,178	58,236,245
Balance	76,875	60,759	58,236
Additional Paid-In Capital	'	'	'
Issuance of common shares for conversion of debentures (in shares)	0	0	0
Issuance of common shares for conversion of debentures	442,535	75,270	0
Issuance of common shares in lieu of cash for interest (in shares)	0	0	0
Issuance of common shares in lieu of cash for interest	63,768	78,184	0
Issuance of common shares for charitable contribution (in shares)	0	0	0
Issuance of common shares for charitable contribution	0	4,917	0
Stock options	12,584	12,584	0
Loss	0	0	0
Balance (in shares)	0	0	0
Balance	21,657,306	21,138,419	20,967,464
Retained Earnings / Accumulated Deficit	'	'	'
Issuance of common shares for conversion of debentures (in shares)	0	0	0
Issuance of common shares for conversion of debentures	0	0	0
Issuance of common shares in lieu of cash for interest (in shares)	0	0	0
Issuance of common shares in lieu of cash for interest	0	0	0
Issuance of common shares for charitable contribution (in shares)	0	0	0
Issuance of common shares for charitable contribution	0	0	0
Stock options	0	0	0
Loss	-1,263,950	-4,348,152	0
Balance (in shares)	0	0	0
Balance	($24,026,992)	($22,763,042)	($18,414,890)

Consolidated_Statements_of_Cas

Consolidated Statements of Cash Flows (USD $)	12 Months Ended
Consolidated Statements of Cash Flows (USD $)	Sep. 30, 2013	Sep. 30, 2012
CASH FLOWS FROM OPERATING ACTIVITIES:	'	'
Net loss	($1,263,950)	($4,348,152)
Depreciation, depletion and amortization	298,156	730,868
Accretion of asset retirement obligation	18,746	17,042
Amortization of discount on debentures	'	94,075
Warrant derivative issued for services	59,200	'
Loss on extinguishment and conversion of debt	1,492,912	1,075,114
Gain on change in fair value of conversion option derivative	-1,024,664	-908,169
Gain on change in fair value of warrant derivative	-114,760	-400,961
Gain on change of asset retirement obligation estimate	-36,242	'
Common stock used in consideration of charitable contribution	'	5,000
Common stock issued in lieu of interest	70,853	79,666
Gain on sale of leases and equipment	-90,721	'
Impairment of proved and unproved properties	'	3,275,000
Stock based compensation	12,584	12,584
Trade accounts receivable	63,957	-53,599
Other current assets and other long term assets	-50,225	-148
Accounts payable	-16,121	97,205
Accrual for North Dakota reclamation complaint	330,000	'
Due to royalty and working interest holders	103,474	255,835
Other payables, interest and taxes accrued	30,375	100,859
Net cash provided (used) by operating activities	-116,426	32,219
CASH FLOWS FROM INVESTING ACTIVITIES:	138,763	-10,635
Proceeds from sales of leases and equipment	138,763	'
Unproved oil and gas additions	'	-10,635
Net cash provided (used) by investing activities	138,763	-10,635
Net cash provided by financing activities	'	'
Net increase in cash	22,337	21,584
CASH AT BEGINNING OF YEAR	74,496	52,912
CASH AT END OF YEAR	96,833	74,496
Interest paid in cash	'	51,535
Non-cash financing and investing activities:	'	'
Common stock issued for conversion of debentures	90,313	115,000
Equipment exchanged for unproved property interest	'	$16,595

Note_1_Organization_and_Descri

Note 1 - Organization and Description of Business	12 Months Ended
Note 1 - Organization and Description of Business	Sep. 30, 2013
Organization, Consolidation and Presentation of Financial Statements [Abstract]	'
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. To date, the Company has acquired three properties, the Uniontown in Kansas, the Crosby in North Dakota, and Girard in Kansas. The Company also formed a wholly owned subsidiary to transport natural gas in Kansas called JayHawk Gas Transportation Corporation.

Note_2_Summary_of_Significant_

Note 2 - Summary of Significant Accounting Policies	12 Months Ended
	Sep. 30, 2013
Accounting Policies [Abstract]	'
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, 2013 and 2012 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, 2013, 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 $24,026,992 and a net loss of $1,263,950 for the year ended September 30, 2013, and as of that date the Company's current liabilities exceeded its current assets by $2,603,133. 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.

	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, 2013 and 2012, would be as follows:

		30-Sep-13	30-Sep-12
	Stock options	2,040,000	2,040,000
	Convertible debt	37,528,675	23,279,993
	Warrants	5,833,113	4,999,113
	Total Possible Dilution	45,401,788	30,319,106

	At September 30, 2013 and 2012, the effect of the Company's outstanding options and common stock equivalents would have been anti-dilutive.

	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. 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 originate 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 10).

	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.

	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 when circumstances or events occur that may impact the fair value of the assets. 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.

Unproved properties - Unproved properties are assessed periodically to determine whether they have been impaired. An undeveloped property may be considered impaired as the expiration of a lease term approaches and the Company has not begun drilling on the property or nearby properties and the possibility of partial or total impairment of the property increases. If the property is found to be impaired, an impairment allowance is provided and a loss is charged to operations. However, if the property is surrendered or the lease expires without identifying proved reserves, the cost of the property is charged against the impairment allowance already to the extent impairment has been recognized. Any remaining cost is charged to operations.

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.

Sales of Producing and Non-producing Property

The Company accounts for the sale of a partial interest in a proved property as normal retirement. The Company accounts for the sale of a partial interest in an unproved property as a recovery of cost when substantial uncertainty exists as to recovery of the cost applicable to the interest retained. The Company recognizes a gain or loss for all other sales of non-producing properties and include the gain or loss in the results of operations.

Fair Value Measures

ASC Topic 820 "Fair Value Measurements and Disclosures" ("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. A financial instrument's categorization within the fair value hierarchy is based upon the lowest level of input that is significant to the fair value measurement. ASC 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.

Asset Retirement Obligations

The Company recognizes the fair value of a liability for an asset retirement obligations in the period in which it is incurred if a reasonable estimate of fair value can be made. The associated asset retirement costs are capitalized as part of the carrying amount of the long-lived asset. The carrying value of a property associated with the capitalization of an asset retirement cost is included in proved oil and gas property in the balance sheets. The future cash outflows for oil and gas properties associated with settling the asset retirement obligations is accrued in the balance sheets. The asset retirement obligation consists of costs related to the plugging of wells and removal of facilities and equipment on its oil and gas properties (see Note 9).

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. Non-employee stock-based compensation is granted at the Board of Director’s discretion to award select consultants for exceptional performance. Prior to issuance of the awards, the Company is not under any obligation to issue the stock options. Subsequent to the award, the recipient is not obligated to perform any services. Therefore, the fair value of these options is expensed on the grant date, which is also the measurement date.

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 2012 financial statements in order to conform to the 2013 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_Financial

Note 3 - Fair Value of Financial Instruments	12 Months Ended
Note 3 - Fair Value of Financial Instruments	Sep. 30, 2013
Fair Value Disclosures [Abstract]	'
Fair Value of Financial Instruments	'
	The carrying values of cash and cash equivalents and reclamation bonds 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 based upon the number of shares into which the debentures are convertible is $375,287 using the current market price per share of stock at September 30, 2013.

	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, 2013 and September 30, 2012, respectively, and the fair value calculation input hierarchy that the Company has determined has applied to each asset and liability category.

		30-Sep-13	30-Sep-12	Input Hierarchy level
	Assets:
	Cash	$ 96,833	$ 74,496	Level 1
	Reclamation bonds	150,236	100,121	Level 1
	Liabilities:
	Conversion option derivative	$ 177,553	$ 109,414	Level 2
	Warrant derivative liability	41,553	58,257	Level 2

Note_4_Unproved_Properties_and

Note 4 - Unproved Properties and Impairment	12 Months Ended
Note 4 - Unproved Properties and Impairment	Sep. 30, 2013
Extractive Industries [Abstract]	'
Unproved Properties and Impairment	'
	NOTE 4 - UNPROVED PROPERTIES AND IMPAIRMENT

	The total of the Company's investment in unproved properties at September 30, 2013 and 2012, consists of the following capitalized costs respectively:

		30-Sep-13	30-Sep-12
	UNPROVED AND DEVELOPED PROPERTIES
	Kansas Girard Project
	Field equipment - Jayhawk Gas Transport Company	$ 2,605,871	$ 2,605,871
	Field equipment - Girard	579,027	587,091
	Capitalized drilling costs	614,756	662,899
	Subtotal	3,799,654	3,855,861
	Less impairments	(2,432,087)	(2,435,637)
	Less accumulated DD&A	(1,172,551)	(1,127,463)
	Unproved and developed properties, net	195,016	292,761

	UNPROVED AND UNDEVELOPED PROPERTIES
	Kansas Girard Project	1,421,199	1,421,199
	Less impairments	(839,363)	(839,363)
	Less accumulated amortization	(581,836)	(581,836)
	Girard Project, net	-	-
	North Dakota Project, net	40,325	87,610
	Unproved and undeveloped properties, net	40,325	87,610

	TOTAL UNPROVED PROPERTIES	$ 235,341	$ 380,371

	Impairment of Girard Project: In 2012, management made a review of its Kansas Girard project. Management's outlook for the U.S. natural gas prices indicated it is unlikely that sufficient U.S. demand for natural gas would materialize in the foreseeable future. Internal cash flow estimates prepared by management of the Company did not prove significant fair value exists in the properties. Therefore, the undeveloped and unproved Kansas natural gas properties and equipment have had impairment losses recorded, to the extent net book value exceeds estimated salvage value of such equipment. The Company also recognized impairment to its unproved and undeveloped properties in Girard, Kansas. Thus, the Company recognized impairment loss of $3,275,000 on the Girard project for the year ended September 30, 2012.

Note_5_Proved_Properties_and_I

Note 5 - Proved Properties and Impairment	12 Months Ended
Note 5 - Proved Properties and Impairment	Sep. 30, 2013
Extractive Industries [Abstract]	'
Proved Properties and Impairment	'
	NOTE 5 - PROVED PROPERTIES AND IMPAIRMENT

	Net capitalized costs are comprised of the following; detailed by property:

		30-Sep-13	30-Sep-12
	Crosby, North Dakota Properties
	Proved reserves	$ 2,381,962	$ 2,357,753
	Field equipment	1,200,247	1,200,247
	Capitalized drilling costs	416,429	416,429
	Subtotal	3,998,638	3,974,429
	Less impairments	(1,092,302)	(1,092,302)
	Less accumulated DD&A	(2,617,952)	(2,372,422)
	Total Proved Oil and Gas Properties	$ 288,384	$ 509,705


	For the years ended September 30, 2013 and 2012, respectively, the Company performed an analysis to determine whether the carrying amounts in its financial statements exceeded the net present value of the reserve estimates for the Crosby, North Dakota property. Management determined that the net value reflected in the financial statements did not exceed the net discounted present value of the reserves estimated by the independent reserve engineer.

Note_6_Other_LongTerm_Assets

Note 6 - Other Long-Term Assets	12 Months Ended
Note 6 - Other Long-Term Assets	Sep. 30, 2013
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]	'
Other Long-Term Assets	'
	Other assets consists of various deposits and reclamation bonds. Detail is disclosed in the following table:

		30-Sep-13	30-Sep-12
	Rental security deposit	$ 1,500	$ 1,500
	Reclamation bonds	150,236	100,121
	TOTAL	$ 151,736	$ 101,621

Note_7_Convertible_Debentures

Note 7 - Convertible Debentures	12 Months Ended
Note 7 - Convertible Debentures	Sep. 30, 2013
Debt Disclosure [Abstract]	'
Convertible Debentures	'
	NOTE 7 - CONVERTIBLE DEBENTURES

	During the year ended September 30, 2010, the Company issued, pursuant to a securities purchase agreement, 10% convertible debentures with a face value of $1,500,000. 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.

	During the year ended September 30, 2011, the Company entered into a Securities Purchase Agreement with certain institutional investors to purchase $500,000 of Secured Convertible Debentures. The debentures provide for interest to be paid quarterly, at the rate of 10% per annum, and are due two years from the issuance date. The debentures are secured by all assets of the Company except those specifically excluded in the agreement which include all Kansas properties and related assets.

	The debentures are 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. 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. Subsequent to the initial issue date, the initial conversion price of $0.18 per share was amended to $0.12 per share based on provisions in the agreements related to equity issuances and issuance of additional convertible debentures during the year ended September 30, 2011.

	The modified conversion price of $0.12 per share was amended on or about January 9, 2012, to $0.05 per share based on provisions in the agreements related to equity issuances of additional convertible shares.

	The debentures all contain anti-dilution provisions which call for the debt conversion and warrant exercise prices 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. See Note 8.

	Based upon the fair values as of the original agreement dates of the December 2009 and April 2010 debentures, $1,500,000 was allocated to the common stock purchase warrants and the conversion features resulting in a discount on the debt. Giving effect to the amortization of the discount and the debenture currently being in default, the discount was fully amortized during the year ended September 30, 2012.

	Based upon the fair values as of the original agreement dates of the October 2010 debentures, $500,000 was allocated to the common stock purchase warrants and the conversion features resulting in a discount on the debt. Giving effect to the amortization of the discount and the conversion of $115,000 in principal conversion and the debenture being in default, the discount was fully amortized during the year ended September 30, 2012.

	In all three cases, the entire proceeds of the debt issued was allocated to warrants and conversion option, resulting in a discount, and was amortized over the respective term of the debt.

	Loss on modification of debt

	On April 23, 2013, the Company entered into a Partial Reset of Conversion Price agreement (the “Partial Reset”) with certain institutional investors (the “Investors”) who are holders of convertible debentures of the Company. Under the terms of the Partial Reset, the Investors and the Company agreed to the following terms:

	Investors have the right to convert, into common stock of the Company, up to twenty five percent (25%) of the principal amount outstanding, as of April 12, 2013, of each Debenture held by each Investor, at a Conversion Price equal to $0.01 per share;

	Each Investor shall convert up to 25% of the amount of the outstanding principal amount, as of April 12, 2013, of each Debenture (the “Conversion Amount”), provided that such conversion will not cause the Investor to own more than 9.99% of the outstanding shares of the Company’s common stock. If such conversion would result in an Investor owning more than 9.99% of the outstanding shares of the Company’s common stock then each such Investor shall only convert so much of the Conversion Amount as would result in the Investor owning no more than 9.99% of the outstanding shares of the Company’s common stock. Each such Investor shall thereafter, as soon as practicably possible, continue to convert so much of the Conversion Amount as possible, without causing the Investor to beneficially own more than 9.99% of the outstanding shares of the Company’s common stock, until such time as each Investor has converted their full Conversion Amount;

	The Maturity Dates of all outstanding Debentures shall be extended to December 31, 2013;

	The Expiration Date of all of the remaining 2,000,000 outstanding share purchase warrants issued pursuant to the December 2009 and April 2010 Transactions shall be extended to July 21, 2014; and

	The Expiration Date of all of the remaining 2,833,113 outstanding Warrants issued pursuant to the October 2010 Transaction, shall be extended to January 26, 2015.

	The change in terms of the debentures and share purchase warrants created a substantial modification of terms of the notes resulting in a loss on extinguishment of $1,556,130 which was charged to Loss on extinguishment on the Consolidated Statements of Operations.

	On or about May 3, 2013, three (3) investors converted $90,313 in convertible debentures at $0.01 per share. Pursuant to these conversions, the Company issued 9,031,400 shares of its common stock. The Company also issued 7,085,263 shares of stock at $0.01 per share in payment of interest owed pursuant to the debentures.

	An expense is recognized when convertible debt is converted to equity securities of the debtor to the extent that the fair value of the securities and other consideration issued exceeds the fair value of convertible debt issuable pursuant to the original conversion terms. Management made an assessment of the modified terms of the conversion and determined that the fair value of the 9,031,400 shares on the date of the issuance was $514,784 and exceeded the value of the shares issuable pursuant to the amended agreement of $451,566 by $63,218. This gain was offset in Loss on extinguishment of debt on the Consolidated Statements of Operations.

Note_9_Asset_Retirement_Obliga

Note 9 - Asset Retirement Obligations	12 Months Ended
Note 9 - Asset Retirement Obligations	Sep. 30, 2013
Asset Retirement Obligation Disclosure [Abstract]	'
Asset Retirement Obligations	'
	NOTE 9 - 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, in today's dollars, to comply with these regulations. These estimates have been projected out to the anticipated retirement date 7 to 15 years in the future, at an assumed inflation rate of 1.5 percent. The anticipated future cost of remediation efforts in North Dakota and Kansas is $486,403. 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, 2013 and 2012, was computed to be $18,746 and $17,042, respectively.

	The following table summarizes the change in the asset retirement obligation since the beginning of the fiscal year ending September 30, 2013 and September 30, 2012, respectively:

		30-Sep-13	30-Sep-12
	Beginning balance	$ 187,463	$ 170,421
	Liabilities incurred	230,000	-
	Liabilities settled	(230,000)	-
	Reduction in present value of liability due to change in estimated costs, net	(60,176)	-
	Accretion expense	18,746	17,042
	Ending balance	$ 146,033	$ 187,463

Note_10_Common_Stock

Note 10 - Common Stock	12 Months Ended
	Sep. 30, 2013
Equity [Abstract]	'
Common Stock	'
	NOTE 10 - COMMON STOCK

	Fiscal Year End September 30, 2013

	On May 3, 2013, the Company issued 7,085,263 shares of common stock in lieu of paying interest with cash, to holders of convertible debentures described in Note 7.

	On May 3, 2013, the Company issued 9,031,400 shares of common stock to holders of 10% convertible debentures within the terms thereof referenced in Note 7 who elected to convert the principal amount of $90,313.

	Fiscal Year End September 30, 2012

	Per the terms of the convertible debentures (Note 8), holders of the debentures have the option to receive shares of common stock issued in lieu of cash for accrued interest at 10% per annum through the date of conversion. The table below details common shares issued for conversion of debentures and accrued interest during the year ended September 30, 2012:

			Date		Debt Converted	Conversion price per share	Shares Issued		Accrued Interest	Fair Market Value per share	Shares Issued

		4-Oct-11		$	-	-	-	$	5,835	$0.07	82,660
		20-Oct-11			60,000	$0.12	500,000		607	$0.07	9,141
		29-Nov-11			55,000	$0.12	458,333		932	$0.08	12,183
		16-Feb-12			-	-	-		25,643	$0.07	469,446
		16-Apr-12			-	-	-		20,292	$0.05	400,545
		11-Jul-12			-		-		20,292	$0.04	507,292
		TOTAL		$	115,000		958,333	$	73,601		1,481,267



	On December 8, 2011, the Company issued 83,333 shares of common stock as a charitable contribution. These shares were valued at $0.06 per share, representing the fair value of $5,000 at date of issuance.

Note_11_Stock_Based_Compensati

Note 11 - Stock Based Compensation	12 Months Ended
Note 11 - Stock Based Compensation	Sep. 30, 2013
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]	'
Stock Based Compensation	'
	NOTE 11 - STOCK BASED COMPENSATION

	The Company’s board of directors approved a stock option plan on August 11, 2009. 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 stock option price is the market price of the share at the date of issuance, but may be changed by the Board of Directors or designee from time to time. The stock options are non-transferable and expire not more than five (5) years from the date of the granting.

	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.

	At September 30, 2013 and 2012, the Company had 2,040,000 options granted and outstanding. The outstanding options have a weighted average remaining term of 2 years.

	The following table reflects the summary of changes during the years ended September 30, 2013 and 2012:
		Number of shares under options	Weighted Average Exercise Price Per Share	Aggregate Intinsic Value

	Balance outstanding, September 30, 2011	2,040,000	$ 0.20	$ 279,000
	Forfeited or rescinded	-	-	-
	Exercised	-	-	-
	Granted	-	-	-
	Balance outstanding, September 30, 2012	2,040,000	0.20	-
	Issued	-	-	-
	Exercised	-	-	-
	Forfeited or rescinded	-	-	-
	Balance outstanding, September 30, 2013	2,040,000	$ 0.20	$ -

	A summary of the status of the Company’s nonvested stock options outstanding at September 30, 2013 is presented as follows:
			Number of options	Weighted Average Fair Value Per Share
	Nonvested, September 30, 2011		160,000	$ 0.16
	Granted		-	-
	Vested		(80,000)	0.16
	Forfeited		-	-
	Nonvested, September 30, 2012		80,000	0.16
	Granted		-	-
	Vested		(80,000)	-
	Forfeited		-	-
	Nonvested, September 30, 2012		-	-

	As of September 30, 2013, there was no unrecognized compensation cost related to nonvested share-based compensation arrangements granted under the Plan.

Note_12_Broker_and_Share_Purch

Note 12 - Broker and Share Purchase Warrants	12 Months Ended
Note 12 - Broker and Share Purchase Warrants	Sep. 30, 2013
Brokers and Dealers [Abstract]	'
Broker and Share Purchase Warrants	'
	NOTE 12 - BROKER AND SHARE PURCHASE WARRANTS

	In conjunction with the issuance of the $1,500,000 convertible debentures described in Note 7, 166,000 broker warrants were issued for services provided in execution of the debentures. As discussed in Note 9, broker warrants are treated as derivatives. The warrants were valued at $104,580 using the Black-Scholes option pricing model with the following assumptions: risk free interest rate of 1.70%, volatility of 165.4%, exercise price of $0.45, current market price of $0.63 per share and an expected life of 3.5 years. The broker warrants expired June 14, 2013.

	In conjunction with the issuance of the $1,500,000 convertible debentures described in Note 7, 2,000,000 share purchase warrants were issued. As discussed in Note 9, the share purchase warrants are treated as derivatives. The warrants were valued at $1,320,000 using the Black-Scholes option pricing model with the following assumptions: risk free interest rate of 1.68%, volatility of 166.2%, exercise price of $0.45, current market price of $0.74 per share and an expected life of 3.5 years. The share purchase warrants, as amended, expire July 21, 2014.

	In conjunction with the issuance of the $500,000 convertible debenture issuance of October 26, 2010 described in Note 9, 2,77,777 share purchase warrants and 55,335 broker warrants were issued. The warrants were valued at $435,296 using the Black-Scholes option pricing model with the following assumptions: risk free interest rate of 0.59%, volatility of 159.6%, exercise price of $0.18, current market price of $0.18 per share and an expected life of 3.5 years. The broker warrants expire April 26, 2014. The share purchase warrants, as modified April 23, 2013, expire January 26, 2015.

	In conjunction with consulting services provided, 1,000,000 broker warrants were issued on or about February 15, 2012. The broker warrants were valued at $59,100 using the Black-Scholes option pricing model with the following assumptions: risk free interest rate of 0.81%, volatility of 159.6%, exercise price of $0.05, current market price of $0.06 per share and an expected life of 5.0 years. The broker warrants expire April 26, 2014. The share purchase warrants, as modified, expire February 15, 2017.


	The fair value of the broker warrants were expensed as financing costs.

	A summary of activity of the Company's share purchase and broker warrants outstanding at September 30, 2013 is presented as follows:

		Broker Warrants	Weighted Average Exercise Price	Share Purchase Warrants	Weighted Average Exercise Price
	Balance outstanding, September 30, 2011	221,335	$ 0.12	4,777,778	$ 0.12
	Forfeited	-	-	-	-
	Exercised	-	-	-	-
	Granted	-	-	-	-
	Balance outstanding, September 30, 2012	221,335	0.05	4,777,778	0.05
	Forfeited	(166,000)	0.05	-	-
	Exercised	-	-	-	-
	Granted	1,000,000	0.06	-	-
	Balance outstanding, September 30, 2013	1,055,335	$ 0.06	4,777,778	$ 0.05

	The exercise price and expiration dates of the broker and share purchase warrants as revised by the Partial Reset (Note 7) is presented as follows:
	Holder	Warrants outstanding	Exercise Price	Expiration date

	Share purchase warrants	2,000,000	$0.05	21-Jul-14
	Share purchase warrants	2,777,778	$0.05	26-Jan-15
	Total share purchase warrants	4,777,778

	Broker warrants	55,335	$0.05	26-Apr-14
	Broker warrants	1,000,000	$0.06	15-Feb-17
	Total broker warrants	1,055,335

Note_13_Related_Party_Transact

Note 13 - Related Party Transactions	12 Months Ended
Note 13 - Related Party Transactions	Sep. 30, 2013
Related Party Transactions [Abstract]	'
Related Party Transactions	'
	NOTE 13 - RELATED PARTY TRANSACTIONS

	On 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 Chairman of the board of directors, for $2,500 per month for office space in Coeur d'Alene, Idaho, at market rate on terms acceptable to the Company. For the years ended September 30, 2013 and 2012, $30,000 and $30,000, respectively, were due under the terms of the lease.

Note_14_Supplemental_Cash_Flow

Note 14 - Supplemental Cash Flow and Other Disclosures	12 Months Ended
Note 14 - Supplemental Cash Flow and Other Disclosures	Sep. 30, 2013
Supplemental disclosures:	'
Supplemental Cash Flow and Other Disclosures	'
	NOTE 14 - SUPPLEMENTAL CASH FLOW AND OTHER DISCLOSURES
		Year ended September 30,
		2013	2012
	Supplemental disclosures:
	Interest paid in cash	$ 18,617	$ 51,535

	Non-cash financing and investing activities:
	Common stock issued for conversion of debentures	$ 90,313	$ 115,000
	Equipment exchanged for unproved property interest	-	16,595

Note_15_Income_Tax

Note 15 - Income Tax	12 Months Ended
Note 15 - Income Tax	Sep. 30, 2013
Income Tax Disclosure [Abstract]	'
Income Tax	'
	NOTE 15- INCOME TAX

	The Company did not recognize an income tax benefit or expense for the fiscal years ended September 30, 2013 and 2012.

	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:
					2013		2012
	Deferred tax assets arising from:
	Non-deductible share based compensation				$ 176,522		$ 171,489
	Property, plant and equipment				2,253,118		2,260,616
	Other assets				111,700		-
	Net operating loss carryforward				4,000,017		3,498,262
					6,541,357		5,930,367
	Less valuation allowance				(6,541,357)		(5,930,367)
	Net deferred tax assets				$ -		$ -


	As management of the Company cannot determine that it is more likely than not the Company will realize the benefit of the net deferred tax asset, a valuation allowance equal to 100% of the net deferred tax asset has been recorded at September 30, 2013 and 2012.

	The Company has approximately $10 million of federal and state net operating loss carryforwards that expire through 2025 and 2033 that may be used to offset future taxable income.

	Based on the net loss for the year ended September 30, 2013 and 2012, of $1,263,950 and $4,348,152, respectively, the income tax benefit shown in the financial statements for the years ended September 30, 2013 and 2012 differs from the statutory rate as follows:

		2013	Rate	2012		Rate

	Provision (benefit) at federal statutory rate	$ (442,382)	35.00%	$ (1,522,000)		35%
	Permanent differences-financing instruments	(92,234)	7.10%	(45,000)		1%
	Effect of state taxes	(76,374)	6.00%	(224,000)		5%
	Increase in valuation allowances	610,990	-48.10%	1,791,000		-41%
	Total	$ -	0.00%	$ -		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, 2013 or 2012. Therefore, the Company does not have an accrual for uncertain tax positions as of September 30, 2013 or 2012. 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. Fiscal years 2009 through 2013 remain subject to examination by state and federal tax authorities.

Note_16_Commitments_and_Contin

Note 16 - Commitments and Contingencies	12 Months Ended
Note 16 - Commitments and Contingencies	Sep. 30, 2013
Commitments and Contingencies Disclosure [Abstract]	'
Commitments and Contingencies	'
	NOTE 16 – COMMITMENTS AND CONTINGENCIES

	On December 1, 2011, the Company leased office space for a period of four years for fixed monthly rental of $2,500. Accordingly, the Company's commitment to make these lease payments for each successive year is $30,000.

	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 production costs to 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 alleges the Company violated certain portions of the North Dakota Century Code and request 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. It is the Company’s intention to complete plugging activity on Knudsen 1 by December 31, 2013, and finish reclamation work on the two adjacent waste water storage pits by June 30, 2014. Further, it is the Company’s intention to convert the Jenks 1 well to a salt water disposal well, pending approval by NDIC inspectors. The range of associated penalties as proposed by the NDIC is $100,000 to $525,000 for failure to comply. The Company has accrued $330,000 as an estimate of total liability related to the Jenks and Knudsen reclamation.

Note_17_Subsequent_Events

Note 17 - Subsequent Events	12 Months Ended
Note 17 - Subsequent Events	Sep. 30, 2013
Subsequent Events [Abstract]	'
Subsequent Events	'
	NOTE 17 – SUBSEQUENT EVENTS
	On October 10, 2013, the Board of Directors rescinded options to purchase the Corporation’s common stock previously granted at an exercise price of $0.20 per share. Whereas, the Board determined that in order to reward, compensate and incentivize members of the Board and certain employees, it granted 4,000,000 options to purchase shares of common stock of the Company. The options have a strike price of $0.01 per share which approximates the fair value of the Company’s common equity on the date of the grant. The Company will recognize stock option expense related to these grants in subsequent periods.

Note_18_Schedule_of_Oil_and_Ga

Note 18 - Schedule of Oil and Gas Reserve Information (Unaudited)	12 Months Ended
	Sep. 30, 2013
Extractive Industries [Abstract]	'
Supplemental Oil and Gas Reserve Information (Unaudited)	'
	NOTE 18 - 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, no 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, 2013 and 2012, 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 2013 and 2012 was prepared by McDaniel & Associates Consultants, Ltd and are consistent with internal estimates. The Company provided McDaniel & 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, 2013 and 2012.

	All of the Company's oil reserves are 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, 2013 and 2012:

	30-Sep-11		81,400
	Revisions of previous estimates		(7,000)
	Purchare of minerals in place		-
	Production		(8,700)
	30-Sep-12		65,700
	Revisions of previous estimates		1,800
	Purchare of minerals in place		-
	Production		(6,600)
	30-Sep-13		60,900


	Oil reserves

	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, 2013 and 2012:
					2013		2012
					Oil (Bbls)		Oil (Bbls)
	Proved developed producing				39,300		44,100
	Proved developed non-producing				-		-
	Proved undeveloped reserves				21,600		21,600
	Total proved reserves				60,900		65,700

	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:
					2013		2012
	Unproved properties				$ 1,462		$ 1,509
	Proved properties				2,382		2,358
	Wells and equipment				5,416		5,473
	Total capitalized costs				9,260		9,339
	Less: Allowance for depreciation, depletion, amortization and lease impairment				(8,736)		(8,449)
	TOTAL				$ 524		$ 890

	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,
					2013		2012
	Property acquisitions:
	Unproved properties				$ -		$ 10
	Proved properties (includes wells, equipment and related facilities acquired with proved reserves)				-		-
	Exploration				-		-
	Production and development capital expenditures				-		-
	TOTAL				$ -		$ 10


	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:

	·	future costs and selling prices will probably differ from those required to be used in these calculations;

	·	due to future market conditions and governmental regulations, actual rates of production in future years may vary significantly from the rate of production assumed in the calculations;

	·	a 10% discount rate may not be reasonable as a measure of the relative risk in realizing future net oil reserves; and

	·	future net revenues may be subject to different rates of income taxation.

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 December 31, 2013 and 2012 are as follows:

				Year ended September 30,
				2013		2012
Future cash flows				$ 3,049,000		$ 3,288,000
Future oil and natural gas operation expense				(1,709,000)		(1,343,000)
Future abandonment costs				(98,000)		(147,000)
Future severance tax				(175,000)		(164,000)
Future income tax expense				-		-
Future net cash flows				1,067,000		1,634,000
Less: 10% annual discount for estimating time of cash flow				(188,600)		(151,000)
Standardized measure of discounted future cash flow				$ 878,400		$ 1,483,000


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, 2013:

		Year ended September 30,
		2013	2012
Standardized measure of discounted future cash flow at beginning of year		$ 1,483,000	$ 1,455,000
Net changes in price and production costs		(392,607)	366,510
Sales of oil produced, net of production costs		(216,243)	(386,902)
Revisions of previous quantity estimates		(14,496)	31,350
Development costs incurred		-	-
Change in income taxes		-	-
Accretion of discount		18,746	17,042
Standardized measure of discounted future net cash flows at year end		$ 878,400	$ 1,483,000

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, 2013 and 2012.

				2013		2012
Operating revenue				$ 411,756		$ 663,229
Costs and expenses:
Exploration expenses				-		-
Production expenses				195,513		324,056
Depreciation, depletion and amortization				245,530		726,397
North Dakota reclamation complaint				330,000		-
Loss (gain) on sales of leases and equipment				(53,976)		-
Impairment of proved and unproved properties				-		3,275,000
General and administrative expenses				-		20,570
Total costs and expenses				717,067		4,346,023
Net results of operations for oil and natural gas producing activities				$ (305,311)		$ (3,682,794)

Note_2_Summary_of_Significant_1

Note 2 - Summary of Significant Accounting Policies (Policies)	12 Months Ended
	Sep. 30, 2013
Accounting Policies [Abstract]	'
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, 2013 and 2012 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	'
	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	'
	Going Concern

	As shown in the accompanying consolidated financial statements, the Company has incurred operating losses since inception. As of September 30, 2013, 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 $24,026,992 and a net loss of $1,263,950 for the year ended September 30, 2013, and as of that date the Company's current liabilities exceeded its current assets by $2,603,133. 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.
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.
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, 2013 and 2012, would be as follows:

		30-Sep-13		30-Sep-12
	Stock options	2,040,000		2,040,000
	Convertible debt	37,528,675		23,279,993
	Warrants	5,833,113		4,999,113
	Total Possible Dilution	45,401,788		30,319,106

	At September 30, 2013 and 2012, the effect of the Company's outstanding options and common stock equivalents would have been anti-dilutive.
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.
Trade Accounts Receivable	'
	Trade Accounts Receivable

	Trade accounts receivable are carried at original invoice amount less an estimate for doubtful accounts. 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	'
	Concentrations

	All of the Company’s direct operating revenues originate 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	'
	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 10).

	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.
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 when circumstances or events occur that may impact the fair value of the assets. 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.

	Unproved properties - Unproved properties are assessed periodically to determine whether they have been impaired. An undeveloped property may be considered impaired as the expiration of a lease term approaches and the Company has not begun drilling on the property or nearby properties and the possibility of partial or total impairment of the property increases. If the property is found to be impaired, an impairment allowance is provided and a loss is charged to operations. However, if the property is surrendered or the lease expires without identifying proved reserves, the cost of the property is charged against the impairment allowance already to the extent impairment has been recognized. Any remaining cost is charged to operations.

	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.
Sales of Producing and Non-producing Property	'
	Sales of Producing and Non-producing Property

	The Company accounts for the sale of a partial interest in a proved property as normal retirement. The Company accounts for the sale of a partial interest in an unproved property as a recovery of cost when substantial uncertainty exists as to recovery of the cost applicable to the interest retained. The Company recognizes a gain or loss for all other sales of non-producing properties and include the gain or loss in the results of operations.
Fair Value Measures	'
	Fair Value Measures

	ASC Topic 820 "Fair Value Measurements and Disclosures" ("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. A financial instrument's categorization within the fair value hierarchy is based upon the lowest level of input that is significant to the fair value measurement. ASC 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	'
	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.
Asset Retirement Obligations	'
	Asset Retirement Obligations

	The Company recognizes the fair value of a liability for an asset retirement obligations in the period in which it is incurred if a reasonable estimate of fair value can be made. The associated asset retirement costs are capitalized as part of the carrying amount of the long-lived asset. The carrying value of a property associated with the capitalization of an asset retirement cost is included in proved oil and gas property in the balance sheets. The future cash outflows for oil and gas properties associated with settling the asset retirement obligations is accrued in the balance sheets. The asset retirement obligation consists of costs related to the plugging of wells and removal of facilities and equipment on its oil and gas properties (see Note 9).
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).
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. Non-employee stock-based compensation is granted at the Board of Director’s discretion to award select consultants for exceptional performance. Prior to issuance of the awards, the Company is not under any obligation to issue the stock options. Subsequent to the award, the recipient is not obligated to perform any services. Therefore, the fair value of these options is expensed on the grant date, which is also the measurement date.

	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	'
	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	'
	Reclassifications

	Certain reclassifications have been made to the 2012 financial statements in order to conform to the 2013 presentation. These reclassifications have no effect on net loss, total assets or accumulated deficit as previously reported.
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_Significant_2

Note 2 - Summary of Significant Accounting Policies (Tables)	12 Months Ended
	Sep. 30, 2013
Accounting Policies [Abstract]	'
Dilutive effect of convertible and outstanding securities	'
		30-Sep-13	30-Sep-12
	Stock options	2,040,000	2,040,000
	Convertible debt	37,528,675	23,279,993
	Warrants	5,833,113	4,999,113
	Total Possible Dilution	45,401,788	30,319,106

Note_3_Fair_Value_of_Financial1

Note 3 - Fair Value of Financial Instruments (Tables)	12 Months Ended
Note 3 - Fair Value of Financial Instruments (Tables)	Sep. 30, 2013
Fair Value Disclosures [Abstract]	'
Fair Value Calculation	'
		30-Sep-13	30-Sep-12	Input Hierarchy level
	Assets:
	Cash	$ 96,833	$ 74,496	Level 1
	Reclamation bonds	150,236	100,121	Level 1
	Liabilities:
	Conversion option derivative	$ 177,553	$ 109,414	Level 2
	Warrant derivative liability	41,553	58,257	Level 2

Note_4_Unproved_Properties_and1

Note 4 - Unproved Properties and Impairment (Tables)	12 Months Ended
Note 4 - Unproved Properties and Impairment (Tables)	Sep. 30, 2013
Extractive Industries [Abstract]	'
Capitalized Costs	'
		30-Sep-13	30-Sep-12
	UNPROVED AND DEVELOPED PROPERTIES
	Kansas Girard Project
	Field equipment - Jayhawk Gas Transport Company	$ 2,605,871	$ 2,605,871
	Field equipment - Girard	579,027	587,091
	Capitalized drilling costs	614,756	662,899
	Subtotal	3,799,654	3,855,861
	Less impairments	(2,432,087)	(2,435,637)
	Less accumulated DD&A	(1,172,551)	(1,127,463)
	Unproved and developed properties, net	195,016	292,761

	UNPROVED AND UNDEVELOPED PROPERTIES
	Kansas Girard Project	1,421,199	1,421,199
	Less impairments	(839,363)	(839,363)
	Less accumulated amortization	(581,836)	(581,836)
	Girard Project, net	-	-
	North Dakota Project, net	40,325	87,610
	Unproved and undeveloped properties, net	40,325	87,610

	TOTAL UNPROVED PROPERTIES	$ 235,341	$ 380,371

Note_5_Proved_Properties_and_I1

Note 5 - Proved Properties and Impairment (Tables)	12 Months Ended
Note 5 - Proved Properties and Impairment (Tables)	Sep. 30, 2013
Extractive Industries [Abstract]	'
Net capitalized costs	'
		30-Sep-13	30-Sep-12
	Crosby, North Dakota Properties
	Proved reserves	$ 2,381,962	$ 2,357,753
	Field equipment	1,200,247	1,200,247
	Capitalized drilling costs	416,429	416,429
	Subtotal	3,998,638	3,974,429
	Less impairments	(1,092,302)	(1,092,302)
	Less accumulated DD&A	(2,617,952)	(2,372,422)
	Total Proved Oil and Gas Properties	$ 288,384	$ 509,705

Note_6_Other_LongTerm_Assets_T

Note 6 - Other Long-Term Assets (Tables)	12 Months Ended
Note 6 - Other Long-Term Assets (Tables)	Sep. 30, 2013
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]	'
Schedule of other assets	'
		30-Sep-13	30-Sep-12
	Rental security deposit	$ 1,500	$ 1,500
	Reclamation bonds	150,236	100,121
	TOTAL	$ 151,736	$ 101,621

Note_8_Derivative_Liabilities_

Note 8 - Derivative Liabilities (Tables)	12 Months Ended
Note 8 - Derivative Liabilities (Tables)	Sep. 30, 2013
Notes to Financial Statements	'
Weighted average assumptions and reevaluation range of assumptions	'
		30-Sep-13	30-Sep-12
	Risk-free interest rate	0.04% to 0.11%	0.09% to 0.17%
	Expected term	.25 to .50 years	.25 years to 1 year
	Expected volatility	194.5% to 375.2%	140.3% to 248.3%
	Fair value of conversion option derivative units	$.0051 to $0.047	$0.01
Change in Conversion Option Liability Balance	'
		Year ended September 30,
		2013	2012

	Beginning balance	$ 109,414	$ 286,498
	Change in value of conversion liability resulting from Partial Reset (Note 7)	1,517,274	-
	Fair value of option units converted	(424,471)	731,085
	Net change in fair value of conversion option liability	(1,024,664)	(908,169)
	Ending balance	$ 177,553	$ 109,414
Fair Value of Warrants	'
		30-Sep-13	30-Sep-12
	Risk-free interest rate	0.07% to 0.15%	0.11% to 0.33%
	Expected term	6 months to 1 year	6 months to 2 years
	Expected volatility	127.41% to 330.72%	148.0% to 244.3%
	Fair value of conversion option derivative units	$0.0016 to $0.0391	$0.01
Change in warrant derivative liability	'
		Year ended September 30,
		2013	2013

	Beginning balance	$ 58,257	$ 299,947
	Warrant derivative issued for services	59,200
	Revaluation of warrant derivatives resulting from Partial Reset (Note 7)	38,856	159,271
	Net change in fair value of warrant derivative liability	(114,760)	(400,961)
		$ 41,553	$ 58,257

Note_9_Asset_Retirement_Obliga1

Note 9 - Asset Retirement Obligations (Tables)	12 Months Ended
Note 9 - Asset Retirement Obligations (Tables)	Sep. 30, 2013
Asset Retirement Obligation Disclosure [Abstract]	'
Change in Asset Retirement Obligation	'
		30-Sep-13	30-Sep-12
	Beginning balance	$ 187,463	$ 170,421
	Liabilities incurred	230,000	-
	Liabilities settled	(230,000)	-
	Reduction in present value of liability due to change in estimated costs, net	(60,176)	-
	Accretion expense	18,746	17,042
	Ending balance	$ 146,033	$ 187,463

Note_10_Common_Stock_Tables

Note 10 - Common Stock (Tables)	12 Months Ended
Note 10 - Common Stock (Tables)	Sep. 30, 2013
Equity [Abstract]	'
Common Shares Issued for Conversion of Debentures	'
			Date		Debt Converted	Conversion price per share	Shares Issued		Accrued Interest	Fair Market Value per share	Shares Issued

		4-Oct-11		$	-	-	-	$	5,835	$0.07	82,660
		20-Oct-11			60,000	$0.12	500,000		607	$0.07	9,141
		29-Nov-11			55,000	$0.12	458,333		932	$0.08	12,183
		16-Feb-12			-	-	-		25,643	$0.07	469,446
		16-Apr-12			-	-	-		20,292	$0.05	400,545
		11-Jul-12			-		-		20,292	$0.04	507,292
		TOTAL		$	115,000		958,333	$	73,601		1,481,267

Note_11_Stock_Based_Compensati1

Note 11 - Stock Based Compensation (Tables)	12 Months Ended
Note 11 - Stock Based Compensation (Tables)	Sep. 30, 2013
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]	'
Schedule of Stock Based Compensation	'
		Number of shares under options	Weighted Average Exercise Price Per Share	Aggregate Intinsic Value

	Balance outstanding, September 30, 2011	2,040,000	$ 0.20	$ 279,000
	Forfeited or rescinded	-	-	-
	Exercised	-	-	-
	Granted	-	-	-
	Balance outstanding, September 30, 2012	2,040,000	0.20	-
	Issued	-	-	-
	Exercised	-	-	-
	Forfeited or rescinded	-	-	-
	Balance outstanding, September 30, 2013	2,040,000	$ 0.20	$ -
Schedule of Nonvested Stock Awards	'
			Number of options	Weighted Average Fair Value Per Share
	Nonvested, September 30, 2011		160,000	$ 0.16
	Granted		-	-
	Vested		(80,000)	0.16
	Forfeited		-	-
	Nonvested, September 30, 2012		80,000	0.16
	Granted		-	-
	Vested		(80,000)	-
	Forfeited		-	-
	Nonvested, September 30, 2012		-	-

Note_12_Broker_and_Share_Purch1

Note 12 - Broker and Share Purchase Warrants (Tables)	12 Months Ended
Note 12 - Broker and Share Purchase Warrants (Tables)	Sep. 30, 2013
Brokers and Dealers [Abstract]	'
Broker Warrants	'

		Broker Warrants	Weighted Average Exercise Price	Share Purchase Warrants	Weighted Average Exercise Price
	Balance outstanding, September 30, 2011	221,335	$ 0.12	4,777,778	$ 0.12
	Forfeited	-	-	-	-
	Exercised	-	-	-	-
	Granted	-	-	-	-
	Balance outstanding, September 30, 2012	221,335	0.05	4,777,778	0.05
	Forfeited	(166,000)	0.05	-	-
	Exercised	-	-	-	-
	Granted	1,000,000	0.06	-	-
	Balance outstanding, September 30, 2013	1,055,335	$ 0.06	4,777,778	$ 0.05

Note_14_Supplemental_Cash_Flow1

Note 14 - Supplemental Cash Flow and Other Disclosures (Tables)	12 Months Ended
	Sep. 30, 2013
Supplemental disclosures:	'
Supplemental Cash Flow Disclosures	'
		Year ended September 30,
		2013	2012
	Supplemental disclosures:
	Interest paid in cash	$ 18,617	$ 51,535

	Non-cash financing and investing activities:
	Common stock issued for conversion of debentures	$ 90,313	$ 115,000
	Equipment exchanged for unproved property interest	-	16,595

Note_15_Income_Tax_Tables

Note 15 - Income Tax (Tables)	12 Months Ended
Note 15 - Income Tax (Tables)	Sep. 30, 2013
Income Tax Disclosure [Abstract]	'
Deferred tax assets	'
					2013		2012
	Deferred tax assets arising from:
	Non-deductible share based compensation				$ 176,522		$ 171,489
	Property, plant and equipment				2,253,118		2,260,616
	Other assets				111,700		-
	Net operating loss carryforward				4,000,017		3,498,262
					6,541,357		5,930,367
	Less valuation allowance				(6,541,357)		(5,930,367)
	Net deferred tax assets				$ -		$ -

Income Tax Benefits	'
		2013	Rate	2012		Rate

	Provision (benefit) at federal statutory rate	$ (442,382)	35.00%	$ (1,522,000)		35%
	Permanent differences-financing instruments	(92,234)	7.10%	(45,000)		1%
	Effect of state taxes	(76,374)	6.00%	(224,000)		5%
	Increase in valuation allowances	610,990	-48.10%	1,791,000		-41%
	Total	$ -	0.00%	$ -		0%

Note_18_Schedule_of_Oil_and_Ga1

Note 18 - Schedule of Oil and Gas Reserve Information (Tables)	12 Months Ended
	Sep. 30, 2013
Extractive Industries [Abstract]	'
Net Interest in Proved Developed and Undeveloped Reserves	'
	30-Sep-11			81,400
	Revisions of previous estimates			(7,000)
	Purchare of minerals in place			-
	Production			(8,700)
	30-Sep-12			65,700
	Revisions of previous estimates			1,800
	Purchare of minerals in place			-
	Production			(6,600)
	30-Sep-13			60,900
Changes in net interest in proved undeveloped and developed reserves	'
					2013	2012
					Oil (Bbls)	Oil (Bbls)
	Proved developed producing				39,300	44,100
	Proved developed non-producing				-	-
	Proved undeveloped reserves				21,600	21,600
	Total proved reserves				60,900	65,700
Capitalized Costs	'
					2013	2012
	Unproved properties				$ 1,462	$ 1,509
	Proved properties				2,382	2,358
	Wells and equipment				5,416	5,473
	Total capitalized costs				9,260	9,339
	Less: Allowance for depreciation, depletion, amortization and lease impairment				(8,736)	(8,449)
	TOTAL				$ 524	$ 890
Costs Incurred	'
					Year ended September 30,
					2013	2012
	Property acquisitions:
	Unproved properties				$ -	$ 10
	Proved properties (includes wells, equipment and related facilities acquired with proved reserves)				-	-
	Exploration				-	-
	Production and development capital expenditures				-	-
	TOTAL				$ -	$ 10


	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:

		·	future costs and selling prices will probably differ from those required to be used in these calculations;

		·	due to future market conditions and governmental regulations, actual rates of production in future years may vary significantly from the rate of production assumed in the calculations;

		·	a 10% discount rate may not be reasonable as a measure of the relative risk in realizing future net oil reserves; and

		·	future net revenues may be subject to different rates of income taxation.
Results of Operations for Producing Activities	'
					2013	2012
	Operating revenue				$ 411,756	$ 663,229
	Costs and expenses:
	Exploration expenses				-	-
	Production expenses				195,513	324,056
	Depreciation, depletion and amortization				245,530	726,397
	North Dakota reclamation complaint				330,000	-
	Loss (gain) on sales of leases and equipment				(53,976)	-
	Impairment of proved and unproved properties				-	3,275,000
	General and administrative expenses				-	20,570
	Total costs and expenses				717,067	4,346,023
	Net results of operations for oil and natural gas producing activities				$ (305,311)	$ (3,682,794)