Document And Entity Information
Document And Entity Information - shares | 9 Months Ended | |
Sep. 30, 2015 | Nov. 23, 2015 | |
Document And Entity Information | ||
Entity Central Index Key | 1,321,516 | |
Entity Registrant Name | United American Petroleum Corp. | |
Document Type | 10-Q | |
Current Fiscal Year End Date | --12-31 | |
Amendment Flag | false | |
Entity Filer Category | Smaller Reporting Company | |
Entity Current Reporting Status | Yes | |
Entity Voluntary Filers | No | |
Entity Well-known Seasoned Issuer | No | |
Document Period End Date | Sep. 30, 2015 | |
Entity Common Stock, Shares Outstanding | 321,867,909 | |
Document Fiscal Period Focus | Q3 | |
Document Fiscal Year Focus | 2,015 |
Consolidated Balance Sheets (Un
Consolidated Balance Sheets (Unaudited) - USD ($) | Sep. 30, 2015 | Dec. 31, 2014 |
CURRENT ASSET | ||
Cash and cash equivalents | $ 109,814 | $ 358,156 |
Accounts receivable, net of allowance of 395,550 and $267,790, respectively | 72,390 | 48,392 |
Related party receivables | 243 | 41,513 |
Total current assets | 182,447 | 448,061 |
Oil and gas properties (full cost method): net of accumulated depletion of $310,669 and $282,458 respectively | 85,000 | 418,380 |
TOTAL ASSETS | 267,447 | 866,441 |
CURRENT LIABILITIES | ||
Accounts payable and accrued liabilities | 951,965 | 780,890 |
Deferred gain on sale of assets | 7,500 | 7,500 |
Other payable | 485,048 | 499,048 |
Total current liabilities | 1,444,513 | 1,287,438 |
Asset retirement obligation | 202,362 | 193,362 |
TOTAL LIABILITIES | 1,646,875 | 1,480,800 |
STOCKHOLDERS' EQUITY (DEFICIT) | ||
Preferred Stock, Series B, $0.001 par value, 1,000 shares authorized, 1,000 shares issued and 1,000 share outstanding and no shares issued and outstanding, respectively | 1 | 1 |
Common stock, $0.001 par value, 750,000,000 shares authorized, 321,867,909 shares issued and 321,867,909 shares outstanding at September 30, 2015 and December 31, 2014 | 321,868 | 321,868 |
Additional paid-in capital | 8,506,218 | 8,506,218 |
Accumulated deficit | (10,207,515) | (9,442,446) |
Total stockholders' deficit | (1,379,428) | (614,359) |
Total liabilities and stock holder's deficit | $ 267,447 | $ 866,441 |
Consolidated Balance Sheets (U3
Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($) | Sep. 30, 2015 | Dec. 31, 2014 |
Condensed Consolidated Balance Sheets Parenthetical | ||
Accumulated depletion | $ 310,669 | $ 282,459 |
Preferred stock, par value | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized | 1,000 | 1,000 |
Preferred stock, shares issued | 1,000 | 0 |
Preferred stock, shares outstanding | 1,000 | 0 |
Common stock par value | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 750,000,000 | 750,000,000 |
Common stock, shares issued | 321,867,909 | 321,867,909 |
Common stock, shares outstanding | 321,867,909 | 321,867,909 |
Consolidated Statements of Oper
Consolidated Statements of Operations (Unaudited) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
REVENUE | ||||
Oil and Gas Revenues | $ 60,265 | $ 177,057 | $ 346,967 | $ 482,339 |
Administrative Revenues | 2,175 | 11,311 | 7,275 | 16,411 |
Revenues, net of sales returns and allowances | 62,440 | 188,368 | 354,242 | 498,750 |
OPERATING EXPENSES | ||||
Lease operating expenses | 145,022 | $ 42,274 | 384,526 | 295,410 |
Bad debt expense | 175,000 | 175,000 | $ 12,660 | |
Impairment loss of well assets | $ 178,494 | 178,494 | ||
Recovery of bad debt | (47,232) | |||
Accretion expense | $ 3,000 | $ 3,000 | 9,000 | $ 9,186 |
Depletion expense | 10,797 | 26,725 | 28,211 | 72,268 |
General and administrative | 134,547 | 163,564 | 391,317 | 562,876 |
Total Operating Expenses | 646,860 | 235,563 | 1,119,316 | 952,400 |
Net Loss Before Other Expenses | (584,420) | (47,195) | (765,074) | (453,650) |
Other Income (Expense) | ||||
Interest Income (expense) | $ 1 | (10,019) | $ 5 | (189,559) |
Gain on embedded derivatives | (29,874) | 96,523 | ||
Loss on Conversion of Debt | (47,688) | (47,688) | ||
Total other income (expense) | $ 1 | (87,581) | $ 5 | (140,724) |
Net Loss | $ (584,419) | $ (134,776) | $ (765,069) | $ (594,374) |
Basic and Diluted Loss Per Share | $ 0 | $ 0 | $ 0 | $ 0 |
Weighted average number of shares outstanding-Basic and Diluted | 321,867,909 | 181,276,760 | 321,867,909 | 126,198,617 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOW (Unaudited) - USD ($) | 9 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2014 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net loss | $ (765,069) | $ (594,374) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Bad debt expense | 175,000 | 12,660 |
Accretion expense | 9,000 | 9,186 |
Depletion expense | $ 28,211 | 72,268 |
Amortization of debt discount | 179,540 | |
(Gain) loss on embedded derivatives | (96,523) | |
Loss on convertible note conversion | $ 47,688 | |
Impairment loss of well assets | $ 178,494 | |
Reduction in full cost pool due to operator income from owned wells | 126,676 | $ 138,986 |
Change in assets and liabilities | ||
Accounts receivable | (198,998) | (1,751) |
Related party receivable | 41,270 | 2,043 |
Decrease in accounts payable and accrued expenses | 171,074 | (417,588) |
Decrease in Other payable | (14,000) | (1,817) |
Net cash used in operating activities | $ (248,342) | (649,656) |
CASH FLOWS USED IN INVESTING ACTIVITIES: | ||
Proceeds from sale of oil and gas properties | 450,000 | |
Net cash used in investing activities | 450,000 | |
NET DECREASE IN CASH AND CASH EQUIVALENTS | $ (248,342) | (199,656) |
CASH AND CASH EQUIVALENTS - BEGINNING OF PERIOD | 358,156 | 557,298 |
CASH AND CASH EQUIVALENTS - END OF PERIOD | $ 109,814 | 357,642 |
NON CASH TRANSACTIONS: | ||
Change in asset retirement liability (change in estimate) | 3,127 | |
Discount from derivative liabilities | 152,810 | |
Conversion of principal and interest to common shares | 201,533 | |
Reclassification of detachable warrants to derivative liability | 153,426 | |
Settlement of legal expenses through exchange of property | $ 93,525 |
Nature of Operations and Basis
Nature of Operations and Basis of Presentation | 9 Months Ended |
Sep. 30, 2015 | |
Nature Of Operations And Basis Of Presentation | |
Nature of Operations and Basis of Presentation | 1. Nature of Operations and Basis of Presentation Nature of Operations United American Petroleum Corp. (United) is incorporated under the laws of the state of Nevada. Uniteds principal business is the acquisition and management of leasehold interests in petroleum and natural gas rights, either directly or indirectly, and the exploitation and development of properties subject to these leases. Basis of Presentation These condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States for interim consolidated financial information and with the instructions to Securities and Exchange Commission (SEC) Form 10-Q and Article 8 of SEC Regulation S-X. The principles for interim consolidated financial information do not require the inclusion of all the information and footnotes required by generally accepted accounting principles for complete consolidated financial statements. Therefore, these condensed consolidated financial statements should be read in conjunction with the Companys audited consolidated financial statements on Form 10-K for the year ended December 31, 2014. The condensed consolidated financial statements included herein are unaudited; however, in the opinion of management, they contain all normal recurring adjustments necessary for a fair statement of the condensed results for the interim periods. Operating results for the three month period ended June 30, 2015 are not necessarily indicative of the results that may be expected for the year ending December 31, 2014. We made certain reclassifications to prior-period amounts to conform to the current presentation. |
Going Concern
Going Concern | 9 Months Ended |
Sep. 30, 2015 | |
Going Concern | |
Going Concern | 2. Going Concern The Company has incurred a net loss and negative operating cash flows since inception through September 30, 2015. These factors raise substantial doubt about the Companys ability to continue as a going concern. The Companys management is implementing plans to sustain the Companys cash flow from operating activities and/or acquire additional capital funding. The consolidated financial statements do not include any adjustments that might be necessary if the Company is unable to continue as a going concern. |
Related Party Transactions
Related Party Transactions | 9 Months Ended |
Sep. 30, 2015 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Our officers are also directors of a related-party company with which we do business. As of September 30, 2015, the Company had a receivable in the amount of $243 due from this related party, with working interest amounts payable. This represents a $41,270 decrease from an amount of $41,513 as of December 31, 2014.For the nine months ended September 30, 2015 Phoenix Oil and Gas, LLC had a total of $5,441 in revenue for the wells it has an interest in. They also incurred $40,007 in joint interest billings and paid a total amount of $4,700 towards those joint interest billings for the nine months ended September 30, 2015. |
Impairment of Well Assets
Impairment of Well Assets | 9 Months Ended |
Sep. 30, 2015 | |
Property, Plant and Equipment [Abstract] | |
Impairment of Well Assets | The Company evaluated the value of its well assets at September 30, 2015. Using the full cost pool method the Company determined that the fair value of its well assets was below net book value. The Company has impaired its well asset by $178,494, with a balance of $85,000, as of September 30, 2015. |
Accounts Receivable
Accounts Receivable | 9 Months Ended |
Sep. 30, 2015 | |
Notes to Financial Statements | |
Accounts Receivable | The Company evaluates the collectability of its accounts receivable on a quarterly basis. The Company reviewed its aging and determined that several balance would not be collectible, primarily based on current economic conditions that effect the industry as a whole. The Company estimated $175,000, of its outstanding accounts receivable balance to be uncollectible. An allowance was created for those accounts receivable. The accounts receivable balance was $72,390, at September 30, 2015. |
Summary of Significant Accounti
Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2015 | |
Accounting Policies [Abstract] | |
Nature of Operations | Nature of Operations United American Petroleum Corp. (United) is incorporated under the laws of the state of Nevada. Uniteds principal business is the acquisition and management of leasehold interests in petroleum and natural gas rights, either directly or indirectly, and the exploitation and development of properties subject to these leases. |
Basis of Presentation | Basis of Presentation These condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States for interim consolidated financial information and with the instructions to Securities and Exchange Commission (SEC) Form 10-Q and Article 8 of SEC Regulation S-X. The principles for interim consolidated financial information do not require the inclusion of all the information and footnotes required by generally accepted accounting principles for complete consolidated financial statements. Therefore, these condensed consolidated financial statements should be read in conjunction with the Companys audited consolidated financial statements on Form 10-K for the year ended December 31, 2014. The condensed consolidated financial statements included herein are unaudited; however, in the opinion of management, they contain all normal recurring adjustments necessary for a fair statement of the condensed results for the interim periods. Operating results for the three month period ended June 30, 2015 are not necessarily indicative of the results that may be expected for the year ending December 31, 2014. We made certain reclassifications to prior-period amounts to conform to the current presentation. |
Related Party Transactions (Det
Related Party Transactions (Details Narrative) - USD ($) | 9 Months Ended | 12 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2014 | Dec. 31, 2014 | |
Related Party Transactions Details Narrative | |||
Related party receivables | $ 243 | $ 41,513 | |
Related party receivable | $ 41,270 | $ 2,043 | $ 41,513 |