Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Sep. 30, 2015 | Dec. 29, 2015 | Mar. 31, 2015 | |
Document and Entity Information [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Sep. 30, 2015 | ||
Entity Registrant Name | GULFSLOPE ENERGY, INC. | ||
Entity Central Index Key | 1,341,726 | ||
Current Fiscal Year End Date | --09-30 | ||
Document Fiscal Period Focus | FY | ||
Document Fiscal Year Focus | 2,015 | ||
Entity Filer Category | Accelerated Filer | ||
Entity Common Stock, Shares Outstanding | 679,991,952 | ||
Entity Public Float | $ 47,802,592 | ||
Entity Voluntary Filers | No | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Current Reporting Status | Yes |
BALANCE SHEETS
BALANCE SHEETS - USD ($) | Sep. 30, 2015 | Sep. 30, 2014 |
Current Assets | ||
Cash and Cash Equivalents | $ 1,428,014 | $ 4,410,302 |
Restricted Cash | 1,500,077 | |
Prepaid Expenses and Other Current Assets | $ 53,883 | 33,602 |
Total Current Assets | 1,481,897 | 5,943,981 |
Property and Equipment, net of depreciation | 70,515 | 107,971 |
Oil and Natural Gas Properties, Full Cost Method of Accounting, Unproved Properties | $ 5,557,183 | 2,055,978 |
Other Non-Current Assets | 150,000 | |
Total Non-Current Assets | $ 5,627,698 | 2,313,949 |
Total Assets | 7,109,595 | 8,257,930 |
Current Liabilities | ||
Accounts Payable | 178,649 | 45,210 |
Related Party Payable | 263,397 | 266,737 |
Accrued Interest Payable | 384,531 | 40,812 |
Accrued Expenses and Other Payables | 1,313,415 | 2,503,064 |
Loans from Related Parties | 7,955,000 | 6,460,000 |
Note Payable | 4,988 | 4,427 |
Total Current Liabilities | 10,099,980 | 9,320,250 |
Total Liabilities | $ 10,099,980 | $ 9,320,250 |
Commitments and Contingencies | ||
Stockholders' Equity (Deficit) | ||
Preferred Stock; par value ($0.001); Authorized 50,000,000 shares none issued or outstanding | ||
Common Stock; par value ($0.001); Authorized 975,000,000 as of September 30, 2015 and 2014; issued and outstanding 670,391,952 and 660,672,345, as of September 30, 2015 and 2014, respectively | $ 670,391 | $ 660,672 |
Additional Paid-in-Capital - Stock To Be Issued | 230,000 | |
Additional Paid-in-Capital | 24,460,484 | $ 22,936,685 |
Accumulated Deficit | (28,351,260) | (24,659,677) |
Total Stockholders' Equity (Deficit) | (2,990,385) | (1,062,320) |
Total Liabilities and Stockholders' Equity (Deficit) | $ 7,109,595 | $ 8,257,930 |
BALANCE SHEETS (Parenthetical)
BALANCE SHEETS (Parenthetical) - $ / shares | Sep. 30, 2015 | Sep. 30, 2014 |
Condensed Balance Sheets [Abstract] | ||
Preferred Stock, par value per share | $ 0.001 | $ 0.001 |
Preferred Stock, shares authorized | 50,000,000 | 50,000,000 |
Preferred Stock, shares issued | ||
Preferred Stock, shares outstanding | ||
Common Stock, par value per share | $ 0.001 | $ 0.001 |
Common Stock, shares authorized | 975,000,000 | 975,000,000 |
Common Stock, shares issued | 670,391,952 | 660,672,345 |
Common Stock, shares outstanding | 670,391,952 | 660,672,345 |
STATEMENTS OF OPERATIONS
STATEMENTS OF OPERATIONS - USD ($) | 12 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2014 | |
Condensed Statements of Operations [Abstract] | ||
Revenues | ||
Impairment of Oil and Natural Gas Properties | $ 93,052 | $ 2,726,103 |
General & Administrative Expenses | 3,219,454 | 2,496,248 |
Net Loss from Operations | (3,312,506) | (5,222,351) |
Other Income /(Expenses): | ||
Interest Income | 966 | 2,732 |
Interest Expense | (349,041) | (290,253) |
Net Loss Before Income Taxes | (3,660,581) | $ (5,509,872) |
Provision for Income Taxes | 31,002 | |
Net Loss | $ (3,691,583) | $ (5,509,872) |
Loss Per Share - Basic and Diluted | $ (0.01) | $ (0.01) |
Weighted Average Shares Outstanding - Basic and Diluted | 662,771,509 | 627,628,630 |
STATEMENTS OF STOCKHOLDERS' EQU
STATEMENTS OF STOCKHOLDERS' EQUITY / (DEFICIT) - USD ($) | Total | Common Stock [Member] | Additional Paid-in Capital Common Shares To Be Issued [Member] | Additional Paid-in Capital [Member] | Accumulated Deficit [Member] |
Balance at Sep. 30, 2013 | $ (9,432,678) | $ 577,210 | $ 9,139,917 | $ (19,149,805) | |
Balance, shares at Sep. 30, 2013 | 577,210,000 | ||||
Common stock issued for services | 194,400 | $ 1,620 | 192,780 | ||
Common stock issued for services, shares | 1,620,000 | ||||
Common stock issued to settle debt | 292,908 | $ 2,441 | 290,467 | ||
Common stock issued to settle debt, shares | 2,440,903 | ||||
Common stock issued for cash | 13,136,998 | $ 77,901 | 13,059,097 | ||
Common stock issued for cash, shares | 77,901,442 | ||||
Restricted Common stock issued to employees | 45,000 | $ 1,500 | 43,500 | ||
Restricted Common stock issued to employees, shares | 1,500,000 | ||||
Amortization of employee stock options and restricted stock | 210,928 | $ 210,928 | |||
Net loss for the twelve months | (5,509,872) | $ (5,509,872) | |||
Balance at Sep. 30, 2014 | $ (1,062,320) | $ 660,672 | $ 22,936,685 | $ (24,659,677) | |
Balance, shares at Sep. 30, 2014 | 660,672,345 | 660,672,345 | |||
Common stock issued for services | $ 177,393 | $ 1,579 | 175,814 | ||
Common stock issued for services, shares | 1,579,607 | ||||
Common stock issued for cash | 500,000 | $ 5,000 | $ 495,000 | ||
Common stock issued for cash, shares | 5,000,000 | ||||
Common stock purchased for cash - to be Issued | $ 230,000 | $ 230,000 | |||
Common stock purchased for cash - to be Issued, shares | |||||
Restricted Common stock issued to employees | $ 3,140 | $ (3,140) | |||
Restricted Common stock issued to employees, shares | 3,140,000 | ||||
Amortization of employee stock options and restricted stock | $ 856,125 | $ 856,125 | |||
Net loss for the twelve months | (3,691,583) | $ (3,691,583) | |||
Balance at Sep. 30, 2015 | $ (2,990,385) | $ 670,391 | $ 230,000 | $ 24,460,484 | $ (28,351,260) |
Balance, shares at Sep. 30, 2015 | 670,391,952 | 670,391,952 |
STATEMENTS OF CASH FLOWS
STATEMENTS OF CASH FLOWS - USD ($) | 12 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2014 | |
OPERATING ACTIVITIES | ||
Net Loss | $ (3,691,583) | $ (5,509,872) |
Adjustments to reconcile net loss to net cash From Operating Activities: | ||
Impairment of Oil and Natural Gas Properties | 93,052 | 2,726,103 |
Depreciation | 51,934 | 34,565 |
Stock issued for services | 119,650 | 194,400 |
Stock based compensation | 405,773 | 151,712 |
Changes in operating assets and liabilities: | ||
(Increase) Decrease in Prepaid Expenses | $ 213,142 | $ 121,299 |
(Increase) Decrease in Other Assets | ||
Increase (Decrease) in Accounts Payable | $ 12,720 | $ (130,619) |
Increase (Decrease) in Related Party Payable | (3,340) | (223,364) |
Increase (Decrease) in Accrued Interest | 343,719 | (53,766) |
Increase (Decrease) in Accrued Liabilities and other Payables | (1,189,651) | (3,480,565) |
Net Cash Used in Operating Activities | (3,644,584) | (6,170,107) |
INVESTING ACTIVITIES | ||
Lease Deposits | 150,000 | (150,000) |
Leases Purchased | (1,148,302) | (8,126,972) |
Proceeds From Sale of Working Interest | 1,800,000 | 8,200,000 |
Capitalized Exploration Costs | (3,617,142) | (4,731,506) |
Purchase of Equipment | (14,478) | (72,351) |
Net Cash Used in Investing Activities | (2,829,922) | (4,880,829) |
FINANCING ACTIVITIES | ||
Restricted cash | 1,500,077 | 1,000,240 |
Proceeds from Stock Sale or Issuance | 730,000 | 13,136,998 |
Proceeds from Related Party Loans | 1,495,000 | 1,160,000 |
Payments on Note Payable | $ (232,859) | (126,199) |
Payments on Related Party Loans | (20,000) | |
Net Cash Provided by Financing Activities | $ 3,492,218 | 15,151,039 |
Net Increase (Decrease) in cash | (2,982,288) | 4,100,103 |
Beginning Cash Balance | 4,410,302 | 310,199 |
Ending Cash Balance | $ 1,428,014 | $ 4,410,302 |
Supplemental Schedule of Cash Flow Activities | ||
Cash paid for income taxes | ||
Cash paid for interest | $ 5,322 | $ 344,427 |
Common stock issued for services | $ 119,650 | |
Common stock issued to settle accrued expenses | $ 112,500 | |
Shares issued upon conversion of note payable | $ 180,000 | |
Non-cash Investing and Financing Activities | ||
Purchase of Developmental Capital Expenditures Through Issuance of Common Stock | $ 57,743 | |
Purchases of Development Capital Expenditures Included in Accounts Payable | $ 120,720 | $ 19,390 |
Purchases of Development Capital Expenditures Included in Related Party Payable | 19,500 | |
Through Stock Based Compensation to Employees | $ 450,351 | $ 104,212 |
ORGANIZATION AND SUMMARY OF SIG
ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Sep. 30, 2015 | |
ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES [Abstract] | |
ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | NOTE 1 - ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (a) Organization GulfSlope Energy, Inc. (the Company, GulfSlope, us, we, or our), is an independent oil and natural gas exploration company whose interests are concentrated in the United States Gulf of Mexico federal waters offshore Louisiana in less than 800' of water depth. The Company has leased 23 2.2 (b) Basis of Presentation The accompanying financial statements have been prepared in accordance with accounting principles generally accepted in the United States ("GAAP") and the instructions to Form 10-K and Regulation S-X published by the US Securities and Exchange Commission (the "SEC"). The accompanying financial statements include the accounts of the Company. (c) Cash and Cash Equivalents The Company considers highly liquid investments with insignificant interest rate risk and original maturities to the Company of three months or less to be cash equivalents. Cash equivalents consist primarily of interest-bearing bank accounts and money market funds. The Company's cash positions represent assets held in a checking account. These assets are generally available on a daily or weekly basis and are highly liquid in nature. (d) Restricted Cash In accordance with a seismic data licensing agreement, certain funds have been placed in an escrow account for the purpose of making an installment payment in the future and are restricted from use in operations. These funds have been classified as restricted cash. In April 2015, these funds were disbursed in accordance with the terms of the seismic data licensing agreement. (e) Full Cost Method The Company uses the full cost method of accounting for oil and gas exploration and development activities. Under the full cost method of accounting, all costs associated with the exploration for and development of oil and gas reserves are capitalized on a country-by-country basis into a single cost center (full cost pool). Such costs include land acquisition costs, geological and geophysical (G&G) expenses, carrying charges on non-producing properties, costs of drilling both productive and non-productive wells and overhead charges directly related to acquisition, exploration and development activities. All of the Company's oil and gas properties are located within the United States, its sole cost center. The costs of unproved properties and related capitalized costs are withheld from the depletion base until such time as they are either developed or abandoned. When proved reserves are assigned or the property is considered to be impaired, the cost of the property or the amount of the impairment is added to costs subject to depletion and full cost ceiling calculations. Capitalized costs that are directly associated with unproved properties acquired by the Company during the year are included in the full cost pool. As of September 30, 2015, the Company had no proved reserves. Companies that use the full cost method of accounting for oil and natural gas exploration and development activities are required to perform a ceiling test calculation each quarter. The full cost ceiling test is an impairment test prescribed by SEC Regulation S-X Rule 4-10. The ceiling test is performed quarterly, on a country-by-country basis, utilizing the average of prices in effect on the first day of the month for the preceding twelve month period. The ceiling limits such pooled costs to the aggregate of the present value of future net revenues attributable to proved crude oil and natural gas reserves discounted at 10% plus the lower of cost or market value of unproved properties less any associated tax effects. If such capitalized costs exceed the ceiling, the Company will record a write-down to the extent of such excess as a non-cash charge to earnings. Any such write-down will reduce earnings in the period of occurrence and results in a lower depreciation, depletion and amortization rate in future periods. A write-down may not be reversed in future periods even though higher oil and natural gas prices may subsequently increase the ceiling. Proceeds from property sales will generally be credited to the full cost pool, with no gain or loss recognized, unless such a sale would significantly alter the relationship between capitalized costs and the proved reserves attributable to these costs. A significant alteration would typically involve a sale of 25% or more of the proved reserves related to a single full cost pool. (f) Capitalized Interest Interest is capitalized on the cost of unevaluated oil and gas properties that are excluded from amortization and actively being evaluated, if any. (g) Property and Equipment Property and equipment are carried at cost and include expenditures for new equipment and those expenditures that substantially increase the productive lives of existing equipment and leasehold improvements. Maintenance and repair costs are expensed as incurred. Property and equipment are depreciated on a straight-line basis over the assets' estimated useful lives. Fully depreciated property and equipment still in use are not eliminated from the accounts. The Company assesses the carrying value of its property and equipment for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability is measured by comparing estimated undiscounted cash flows, expected to be generated from such assets, to their net book value. If net book value exceeds estimated cash flows, the asset is written down to its fair value, determined by the estimated discounted cash flows from such asset. When an asset is retired or sold, its cost and related accumulated depreciation and amortization are removed from the accounts. The difference between the net book value of the asset and proceeds on disposition is recorded as a gain or loss in our statements of operations in the period in which they occur. (h) Income Taxes The Company applies the provisions of FASB Accounting Standard Codification (ASC) 740 Income Taxes. This standard requires an asset and liability approach for financial accounting and reporting for income taxes, and the recognition of deferred tax assets and liabilities for the temporary differences between the financial reporting basis and tax basis of the Company's assets and liabilities at enacted tax rates expected to be in effect when such amounts are realized or settled. A valuation allowance is provided if, based on the weight of available evidence, it is more likely than not that some portion or all of the deferred tax assets will not be realized. The Company's policy is to recognize potential interest and penalties accrued related to unrecognized tax benefits as a component of income tax expense (benefit). (i) Stock-Based Compensation The Company records expenses associated with the fair value of stock-based compensation. For fully vested and restricted stock grants, the Company calculates the stock based compensation expense based upon estimated fair value on the date of grant. For stock warrants and options, the Company uses the Black-Scholes option valuation model to calculate stock based compensation at the date of grant. Option pricing models require the input of highly subjective assumptions, including the expected price volatility. Changes in these assumptions can materially affect the fair value estimate. (j) Stock Issuance The Company records the stock-based compensation awards issued to non-employees and other external entities for goods and services at either the fair market value of the goods received or services rendered or the instruments issued in exchange for such services, whichever is more readily determinable, using the measurement date guidelines enumerated in FASB ASC 505-50-30. (k) Earnings per Share Basic and Dilutive Basic earnings per share (EPS) is computed by dividing net income (loss) by the weighted average number of common shares outstanding for the period. Diluted EPS is computed by dividing net income (loss) by the weighted average number of common shares and potential common shares outstanding (if dilutive) during each period. Potential common shares include stock options, warrants, and restricted stock. The number of potential common shares outstanding relating to stock options, warrants, and restricted stock is computed using the treasury stock method. As the Company has incurred losses for the years ended September 30, 2015 and 2014, the potentially dilutive shares are anti-dilutive and thus not added into the EPS calculations. As of September 30, 2015 and 2014, there were 51,824,819 52,786,765 (l) Statement of Cash Flows For purposes of the Statements of Cash Flows, the Company considers cash on deposit in the bank to be cash. The Company had $ 1,428,014 4,410,302 (m) Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. (n) Impact of New Accounting Standards In May 2014, the FASB issued Accounting Standards Update No. 2014-09 (ASU No. 2014-09), which requires an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers. The ASU will replace most existing revenue recognition guidance in GAAP when it becomes effective. The new standard is effective for annual reporting periods beginning after December 15, 2017. Early application is not permitted. The standard permits the use of either the retrospective or cumulative effect transition method. The Company is evaluating the effect that ASU 2014-09 will have on its consolidated financial statements and related disclosures. The Company has not yet selected a transition method nor has it determined the effect of the standard on its ongoing financial reporting. In August 2014, the FASB issued Accounting Standard Update No. 2014-15 (ASU No. 2014-15), Presentation of Financial Statements Going Concern (Subtopic 205-40) which requires management to assess an entity's ability to continue as a going concern by incorporating and expanding upon certain principles that are currently in U.S. auditing standards. Specifically, ASU 2014-15 provides a definition of the term substantial doubt and requires an assessment for a period of one year after the date that the financial statements are issued (or available to be issued). It also requires certain disclosures when substantial doubt is alleviated as a result of consideration of management's plans and requires an express statement and other disclosures when substantial doubt is not alleviated. ASU No. 2014-15 is effective for fiscal years, and interim periods within those years, beginning after December 15, 2016, early application is permitted. We are currently evaluating the accounting implication and do not believe the adoption of ASU 2014 The Company has evaluated all other recent accounting pronouncements and believes that none of them will have a significant effect on the company's financial statement. |
LIQUIDITY_GOING CONCERN
LIQUIDITY/GOING CONCERN | 12 Months Ended |
Sep. 30, 2015 | |
LIQUIDITY/GOING CONCERN [Abstract] | |
Liquidity/Going Concern | NOTE 2 - LIQUIDITY/GOING CONCERN The Company has incurred accumulated losses as of September 30, 2015 of $ 28,351,260 1,428,014 7.1 |
EXPLORATION COSTS
EXPLORATION COSTS | 12 Months Ended |
Sep. 30, 2015 | |
EXPLORATION COSTS [Abstract] | |
EXPLORATION COSTS | NOTE 3 EXPLORATION COSTS From October 2013 through March 2014, the Company incurred $ 1,426,786 1,219,317 80,000 2,726,103 |
OIL AND GAS PROPERTIES
OIL AND GAS PROPERTIES | 12 Months Ended |
Sep. 30, 2015 | |
OIL AND GAS PROPERTIES [Abstract] | |
OIL AND GAS PROPERTIES | NOTE 4 OIL AND GAS PROPERTIES During March 2014, the Company bid on 23 blocks in the Central Gulf of Mexico Lease Sale 231 conducted by the Bureau of Ocean Energy Management (BOEM). Of those 23 bids, the Company was the high bidder on 22 of 23 blocks. During May and June of 2014, the Company was awarded 21 of the 22 blocks and paid the remaining 80% lease bonus amount and the first year lease rentals on all of the awarded blocks. The total amount paid was $ 8,126,972 In March 2014, the Company entered into a farm-out letter agreement with Texas South Energy, Inc. (Texas South) relating to five prospects located within the blocks the Company bid on at the Central Gulf of Mexico Lease Sale 231. Under the terms of the farm-out letter agreement, Texas South may acquire up to a 20% working interest in these five prospects for up to $ 10 8.2 During the period April 1 to September 30, 2014, the Company incurred $1,365,239 $763,767 2,129,006 8,200,000 2,055,978 In March 2015, the Company competitively bid on four blocks in the Central Gulf of Mexico Lease Sale 235 conducted by BOEM. The Company was the high bidder on three of the four blocks. The Company was awarded two of the three blocks and paid the remaining 80% lease bonus amount and the first year rentals for total consideration of $ 340,547 The Company paid $ 807,755 In September 2015 the Company completed the March 2014 farm out agreement with Texas South. Texas South funded the final $ 1.8 10 20 During the period October 1, 2014 to September 30, 2015, the Company incurred $ 3,231,780 921,124 93,052 9,275,274 10,000,000 5,557,183 |
PROPERTY AND EQUIPMENT
PROPERTY AND EQUIPMENT | 12 Months Ended |
Sep. 30, 2015 | |
PROPERTY AND EQUIPMENT [Abstract] | |
PROPERTY AND EQUIPMENT | NOTE 5 PROPERTY AND EQUIPMENT Property and equipment consist of the following as of September 30, 2015 and 2014: 2015 2014 Office equipment and computers $ 143,897 $ 129,419 Furniture and fixtures 16,280 16,280 Leasehold improvements 4,054 4,054 Total 164,231 149,753 Less: accumulated depreciation (93,716 ) (41,782 ) Net property and equipment $ 70,515 $ 107,971 Depreciation is computed on a straight-line basis over the estimated useful lives of the assets, which were as follows: Life Office equipment and computers 3 Furniture and fixtures 5 Leasehold improvements Shorter of 5 Depreciation expense was $ 51,934 34,565 |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Sep. 30, 2015 | |
INCOME TAXES [Abstract] | |
INCOME TAXES | NOTE 6 - INCOME TAXES The provision for income taxes consists of the following as of September 30, 2015 and 2014: 9/30/2015 9/30/2014 FEDERAL Current $ - $ - Deferred - - STATE Current 31,002 - Deferred - - TOTAL PROVISION $ 31,002 $ - Deferred income tax assets and liabilities at September 30, 2015 and 2014 consist of the following temporary differences: 9/30/2015 9/30/2014 DEFERRED TAX ASSETS Current $ - $ - Noncurrent Net operating losses 3,095,457 2,825,208 Exploration costs (282,550 ) 873,708 Gain recognized on sale of working interest 1,404,763 - Stock based compensation 33,414 - Differences in book/tax depreciation - - Total noncurrent $ 4,251,084 $ 3,698,916 Valuation Allowance (4,251,084 ) (3,698,916 ) NET DEFERRED TAX ASSET - - DEFERRED TAX LIABILITIES - - NET DEFERRED TAXES $ - $ - The Company's valuation allowance has increased $ 552,168 831,524 The following is a summary of federal net operating loss carryforwards and their expiration dates: Amount Expiration $ 3,203 9 30 2024 7,695 9 30 2025 18,447 9 30 2026 16,876 9 30 2027 17,986 9 30 2028 8,596 9 30 2029 7,713 9 30 2030 64,097 9 30 2031 513,914 9 30 2032 7,155,229 9 30 2033 11,567,666 9 30 2034 1,254,956 9/30/2035 $ 20,636,378 Total The actual income tax provision for continuing operations is as follows as of September 30, 2015 and 2014, respectively: 9/30/2015 9/30/2014 Expected provision (based on statutory rate) $ (553,737 ) $ (826,481 ) Effect of: Increase (decrease) in valuation allowance 552,168 831,524 State minimum tax, net of federal benefit 31,002 - Non-deductible expense 1,081 1,108 Net operating loss adjustment - (5,736 ) Rate Change - - Other, net 488 (415 ) Total actual provision $ 31,002 $ - The Company has not made any adjustments to deferred tax assets or liabilities. The Company did not identify any material uncertain tax positions of the Company on returns that have been filed or that will be filed. The Company has not had operations and is carrying a large Net Operating Loss as disclosed above. Since this Net Operating Loss will not produce a tax benefit for several years, even if examined by taxing authorities and disallowed entirely, there would be no effect on the financial statements. The Company's policy is to recognize potential interest and penalties accrued related to unrecognized tax benefits as a component of income tax expense (benefit). For the years ended September 30, 2015 and 2014, the Company did not recognize any interest or penalties, nor did we have any interest or penalties accrued as of September 30, 2015 and 2014 relating to unrecognized benefits. The tax years ended September 30, 2012 through 2015 are open for examination for federal income tax purposes and by other major taxing jurisdictions to which we are subject. |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 12 Months Ended |
Sep. 30, 2015 | |
RELATED PARTY TRANSACTIONS [Abstract] | |
RELATED PARTY TRANSACTIONS | NOTE 7 - RELATED PARTY TRANSACTIONS In March 2013, the Company entered into a one 30,000 360,000 210,000 150,000 90,000 In March 2013, the Company entered into a one 40,000 120,000 During April 2013 through June 2013, the Company entered into convertible promissory notes whereby it borrowed a total of $ 6,500,000 5 0.12 1,200,000 10,000,000 1,160,000 5 In October 2013, the Company issued 937,500 112,500 In October 2013, the Company issued a ten 2,000,000 0.12 161,143 158,398 50 50 Domenica Seitz CPA, has provided accounting consulting services to the Company. During the twelve month period ended September 30, 2015, the services provided were valued at $ 59,510 Mr. James Askew, former CEO (resigned in May 2013) and former director (resigned in March 2014) was owed a $ 100,000 5 10 Mr. Seitz has not received a salary since May 31, 2013, the date he commenced serving as our CEO and accordingly, no amount has been accrued on our financial statements. Prior to serving as an executive officer, Mr. Seitz served as a Company consultant and the Company has accrued $ 120,000 246,270,375 Kevin Bain, son of Dr. Bain, is an employee of the Company and receives an annual salary of $ 175,000 In connection with the Company's 2013 private placement of common stock at a purchase price of $ 0.12 166,667 256,106 1,666,667 416,667 In connection with the Company's 2014 private placement of common stock at a purchase price of $ 0.24 750,000 100,000 416,667 During June through August 2015, the Company entered into promissory notes with John Seitz whereby it borrowed a total of $ 1,250,000 5 7,710,000 383,068 245,000 5 1,463 |
COMMON STOCK_PAID IN CAPITAL
COMMON STOCK/PAID IN CAPITAL | 12 Months Ended |
Sep. 30, 2015 | |
COMMON STOCK/PAID IN CAPITAL [Abstract] | |
COMMON STOCK/PAID IN CAPITAL | NOTE 8 - COMMON STOCK/PAID IN CAPITAL At our annual meeting in May of 2014 our shareholders approved increasing the number of authorized shares of common stock from 750,000,000 975,000,000 During October 2013, the Company sold 42,952,773 0.12 5,154,333 In October 2013, the Company issued 1,620,000 194,400 three three In October 2013, the Company issued a ten 2,000,000 0.12 50 50 In March 2014, the Company awarded 500,000 one In March 2014, the Company issued an aggregate of 1,000,000 two one one In May 2014, the Company awarded 550,000 one During July 2014, the Company sold 33,448,335 0.24 8,027,600 In July 2014, John H. Malanga, chief financial officer and chief accounting officer, was awarded an inducement grant of 2,500,000 600,000 one In August 2014, an employee was awarded an inducement grant of 200,000 48,000 one In August 2014, the Company closed an equity financing in which 1,500,000 0.24 360,000 In September 2014, the Company awarded 3,030,000 six one 2016. For the years ended September 30, 2015 and September 30, 2014 stock based compensation amortization of $ 363,600 30,300 ding to the vesting terms. On April 17, 2015, the Company sold 5,000,000 two 0.10 500,000 0.10 5,000,000 two 1,579,607 three 4,600,000 0.05 230,000 |
STOCK-BASED COMPENSATION
STOCK-BASED COMPENSATION | 12 Months Ended |
Sep. 30, 2015 | |
STOCK-BASED COMPENSATION [Abstract] | |
STOCK-BASED COMPENSATION | NOTE 9 STOCK-BASED COMPENSATION Stock -based compensation cost is measured at the grant date, based on the estimated fair value of the award, and is recognized over the required vesting period. The Company recognized $856,125 and $255,924 in stock-based compensation expense for the years ended September 30, 2015 and 2014. A portion of these costs, $450,351 and $104,212 were capitalized to unproved properties and the remainder were recorded as general and administrative expenses, for the years ended September 30, 2015 and 2014 respectively. The following table summarizes the Company's stock option activity during the year ended September 30, 2015: Number of Options Weighted Average Exercise Price Weighted Average Remaining Average Intrinsic Value Outstanding at beginning of period 2,000,000 - Granted - $ 0.12 - Exercised - - - Cancelled - - - Outstanding at end of period 2,000,000 $ 0.12 3.81 $ 260,000 Vested and expected to vest 2,000,000 $ 0.12 3.81 $ 260,000 Exercisable at end of period - - - - The Company uses the Black-Scholes option-pricing model to estimate the fair value of options granted. The weighted-average fair values of stock options granted for the year ended September 30, 2014 were based on the following assumptions at the date of grant as follows: Expected dividend yield 0 Expected stock price volatility 79.02 Risk-free interest rate 1.53 Expected life of options 5.75 Weighted-average grant date fair value $ 0.08 The Company used a variety of comparable and peer companies to determine the expected volatility. The Company has no historical data regarding the expected life of the options and therefore used the simplified method of calculating the expected life. The risk free rate was calculated using the U.S. Treasury constant maturity rates similar to the expected life of the options, as published by the Federal Reserve. The Company has no plans to declare any future dividends. As of September 30, 2015 there was $ 2,744 3 As of September 30, 2015 there was $ 667,550 one |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended |
Sep. 30, 2015 | |
COMMITMENTS AND CONTINGENCIES [Abstract] | |
COMMITMENTS AND CONTINGENCIES | NOTE 10 COMMITMENTS AND CONTINGENCIES In March 2013, the Company licensed certain seismic data pursuant to two agreements. With respect to the first agreement, as of September 30, 2015, the Company has paid $ 6,135,500 3,009,195 1,003,065 In July 2013, the Company entered into a two 20,200 20,500 18,760 In October 2014, the Company purchased an insurance policy for $ 245,291 224,360 In April 2015, the Company sold 5,000,000 0.10 500,000 0.10 5,000,000 5. |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 12 Months Ended |
Sep. 30, 2015 | |
SUBSEQUENT EVENTS [Abstract] | |
SUBSEQUENT EVENTS | NOTE 11 SUBSEQUENT EVENTS In October 2015, the Company purchased an insurance policy for $ 259,936 235,861 In October 2015, the Company substantially completed its technical work on six prospects bringing them to a drill ready status. Technical and management reviews with selected E&P companies have been underway for these prospects and the Company awaits a response on their interest in participation in the drilling of the respective prospects. |
ORGANIZATION AND SUMMARY OF S18
ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Sep. 30, 2015 | |
ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES [Abstract] | |
Organization | (a) Organization GulfSlope Energy, Inc. (the Company, GulfSlope, us, we, or our), is an independent oil and natural gas exploration company whose interests are concentrated in the United States Gulf of Mexico federal waters offshore Louisiana in less than 800' of water depth. The Company has leased 23 2.2 |
Basis of Presentation | (b) Basis of Presentation The accompanying financial statements have been prepared in accordance with accounting principles generally accepted in the United States ("GAAP") and the instructions to Form 10-K and Regulation S-X published by the US Securities and Exchange Commission (the "SEC"). The accompanying financial statements include the accounts of the Company. |
Cash and Cash Equivalents | (c) Cash and Cash Equivalents The Company considers highly liquid investments with insignificant interest rate risk and original maturities to the Company of three months or less to be cash equivalents. Cash equivalents consist primarily of interest-bearing bank accounts and money market funds. The Company's cash positions represent assets held in a checking account. These assets are generally available on a daily or weekly basis and are highly liquid in nature. |
Restricted Cash | (d) Restricted Cash In accordance with a seismic data licensing agreement, certain funds have been placed in an escrow account for the purpose of making an installment payment in the future and are restricted from use in operations. These funds have been classified as restricted cash. In April 2015, these funds were disbursed in accordance with the terms of the seismic data licensing agreement. |
Full Cost Method | (e) Full Cost Method The Company uses the full cost method of accounting for oil and gas exploration and development activities. Under the full cost method of accounting, all costs associated with the exploration for and development of oil and gas reserves are capitalized on a country-by-country basis into a single cost center (full cost pool). Such costs include land acquisition costs, geological and geophysical (G&G) expenses, carrying charges on non-producing properties, costs of drilling both productive and non-productive wells and overhead charges directly related to acquisition, exploration and development activities. All of the Company's oil and gas properties are located within the United States, its sole cost center. The costs of unproved properties and related capitalized costs are withheld from the depletion base until such time as they are either developed or abandoned. When proved reserves are assigned or the property is considered to be impaired, the cost of the property or the amount of the impairment is added to costs subject to depletion and full cost ceiling calculations. Capitalized costs that are directly associated with unproved properties acquired by the Company during the year are included in the full cost pool. As of September 30, 2015, the Company had no proved reserves. Companies that use the full cost method of accounting for oil and natural gas exploration and development activities are required to perform a ceiling test calculation each quarter. The full cost ceiling test is an impairment test prescribed by SEC Regulation S-X Rule 4-10. The ceiling test is performed quarterly, on a country-by-country basis, utilizing the average of prices in effect on the first day of the month for the preceding twelve month period. The ceiling limits such pooled costs to the aggregate of the present value of future net revenues attributable to proved crude oil and natural gas reserves discounted at 10% plus the lower of cost or market value of unproved properties less any associated tax effects. If such capitalized costs exceed the ceiling, the Company will record a write-down to the extent of such excess as a non-cash charge to earnings. Any such write-down will reduce earnings in the period of occurrence and results in a lower depreciation, depletion and amortization rate in future periods. A write-down may not be reversed in future periods even though higher oil and natural gas prices may subsequently increase the ceiling. Proceeds from property sales will generally be credited to the full cost pool, with no gain or loss recognized, unless such a sale would significantly alter the relationship between capitalized costs and the proved reserves attributable to these costs. A significant alteration would typically involve a sale of 25% or more of the proved reserves related to a single full cost pool. |
Capitalized Interest | (f) Capitalized Interest Interest is capitalized on the cost of unevaluated oil and gas properties that are excluded from amortization and actively being evaluated, if any. |
Property and Equipment | (g) Property and Equipment Property and equipment are carried at cost and include expenditures for new equipment and those expenditures that substantially increase the productive lives of existing equipment and leasehold improvements. Maintenance and repair costs are expensed as incurred. Property and equipment are depreciated on a straight-line basis over the assets' estimated useful lives. Fully depreciated property and equipment still in use are not eliminated from the accounts. The Company assesses the carrying value of its property and equipment for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability is measured by comparing estimated undiscounted cash flows, expected to be generated from such assets, to their net book value. If net book value exceeds estimated cash flows, the asset is written down to its fair value, determined by the estimated discounted cash flows from such asset. When an asset is retired or sold, its cost and related accumulated depreciation and amortization are removed from the accounts. The difference between the net book value of the asset and proceeds on disposition is recorded as a gain or loss in our statements of operations in the period in which they occur. |
Income Taxes | (h) Income Taxes The Company applies the provisions of FASB Accounting Standard Codification (ASC) 740 Income Taxes. This standard requires an asset and liability approach for financial accounting and reporting for income taxes, and the recognition of deferred tax assets and liabilities for the temporary differences between the financial reporting basis and tax basis of the Company's assets and liabilities at enacted tax rates expected to be in effect when such amounts are realized or settled. A valuation allowance is provided if, based on the weight of available evidence, it is more likely than not that some portion or all of the deferred tax assets will not be realized. The Company's policy is to recognize potential interest and penalties accrued related to unrecognized tax benefits as a component of income tax expense (benefit). |
Stock-Based Compensation | (i) Stock-Based Compensation The Company records expenses associated with the fair value of stock-based compensation. For fully vested and restricted stock grants, the Company calculates the stock based compensation expense based upon estimated fair value on the date of grant. For stock warrants and options, the Company uses the Black-Scholes option valuation model to calculate stock based compensation at the date of grant. Option pricing models require the input of highly subjective assumptions, including the expected price volatility. Changes in these assumptions can materially affect the fair value estimate. |
Stock Issuance | (j) Stock Issuance The Company records the stock-based compensation awards issued to non-employees and other external entities for goods and services at either the fair market value of the goods received or services rendered or the instruments issued in exchange for such services, whichever is more readily determinable, using the measurement date guidelines enumerated in FASB ASC 505-50-30. |
Earnings per Share - Basic and Dilutive | (k) Earnings per Share Basic and Dilutive Basic earnings per share (EPS) is computed by dividing net income (loss) by the weighted average number of common shares outstanding for the period. Diluted EPS is computed by dividing net income (loss) by the weighted average number of common shares and potential common shares outstanding (if dilutive) during each period. Potential common shares include stock options, warrants, and restricted stock. The number of potential common shares outstanding relating to stock options, warrants, and restricted stock is computed using the treasury stock method. As the Company has incurred losses for the years ended September 30, 2015 and 2014, the potentially dilutive shares are anti-dilutive and thus not added into the EPS calculations. As of September 30, 2015 and 2014, there were 51,824,819 52,786,765 |
Statement of Cash Flows | (l) Statement of Cash Flows For purposes of the Statements of Cash Flows, the Company considers cash on deposit in the bank to be cash. The Company had $ 1,428,014 4,410,302 |
Use of Estimates | (m) Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. |
Impact of New Accounting Standards | (n) Impact of New Accounting Standards In May 2014, the FASB issued Accounting Standards Update No. 2014-09 (ASU No. 2014-09), which requires an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers. The ASU will replace most existing revenue recognition guidance in GAAP when it becomes effective. The new standard is effective for annual reporting periods beginning after December 15, 2017. Early application is not permitted. The standard permits the use of either the retrospective or cumulative effect transition method. The Company is evaluating the effect that ASU 2014-09 will have on its consolidated financial statements and related disclosures. The Company has not yet selected a transition method nor has it determined the effect of the standard on its ongoing financial reporting. In August 2014, the FASB issued Accounting Standard Update No. 2014-15 (ASU No. 2014-15), Presentation of Financial Statements Going Concern (Subtopic 205-40) which requires management to assess an entity's ability to continue as a going concern by incorporating and expanding upon certain principles that are currently in U.S. auditing standards. Specifically, ASU 2014-15 provides a definition of the term substantial doubt and requires an assessment for a period of one year after the date that the financial statements are issued (or available to be issued). It also requires certain disclosures when substantial doubt is alleviated as a result of consideration of management's plans and requires an express statement and other disclosures when substantial doubt is not alleviated. ASU No. 2014-15 is effective for fiscal years, and interim periods within those years, beginning after December 15, 2016, early application is permitted. We are currently evaluating the accounting implication and do not believe the adoption of ASU 2014 The Company has evaluated all other recent accounting pronouncements and believes that none of them will have a significant effect on the company's financial statement. |
PROPERTY AND EQUIPMENT (Tables)
PROPERTY AND EQUIPMENT (Tables) | 12 Months Ended |
Sep. 30, 2015 | |
PROPERTY AND EQUIPMENT [Abstract] | |
Schedule of Property and Equipment | Property and equipment consist of the following as of September 30, 2015 and 2014: 2015 2014 Office equipment and computers $ 143,897 $ 129,419 Furniture and fixtures 16,280 16,280 Leasehold improvements 4,054 4,054 Total 164,231 149,753 Less: accumulated depreciation (93,716 ) (41,782 ) Net property and equipment $ 70,515 $ 107,971 |
Schedule of Estimated Useful Lives of Assets | Depreciation is computed on a straight-line basis over the estimated useful lives of the assets, which were as follows: Life Office equipment and computers 3 Furniture and fixtures 5 Leasehold improvements Shorter of 5 |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Sep. 30, 2015 | |
INCOME TAXES [Abstract] | |
Schedule of Income Tax Provision | The provision for income taxes consists of the following as of September 30, 2015 and 2014: 9/30/2015 9/30/2014 FEDERAL Current $ - $ - Deferred - - STATE Current 31,002 - Deferred - - TOTAL PROVISION $ 31,002 $ - |
Schedule of Deferred Income Tax Assets and Liabilities | Deferred income tax assets and liabilities at September 30, 2015 and 2014 consist of the following temporary differences: 9/30/2015 9/30/2014 DEFERRED TAX ASSETS Current $ - $ - Noncurrent Net operating losses 3,095,457 2,825,208 Exploration costs (282,550 ) 873,708 Gain recognized on sale of working interest 1,404,763 - Stock based compensation 33,414 - Differences in book/tax depreciation - - Total noncurrent $ 4,251,084 $ 3,698,916 Valuation Allowance (4,251,084 ) (3,698,916 ) NET DEFERRED TAX ASSET - - DEFERRED TAX LIABILITIES - - NET DEFERRED TAXES $ - $ - |
Summary of Federal Net Operating Loss Carryforwards | The following is a summary of federal net operating loss carryforwards and their expiration dates: Amount Expiration $ 3,203 9 30 2024 7,695 9 30 2025 18,447 9 30 2026 16,876 9 30 2027 17,986 9 30 2028 8,596 9 30 2029 7,713 9 30 2030 64,097 9 30 2031 513,914 9 30 2032 7,155,229 9 30 2033 11,567,666 9 30 2034 1,254,956 9/30/2035 $ 20,636,378 Total |
Schedule of Effective Income Tax Rate Reconciliation | The actual income tax provision for continuing operations is as follows as of September 30, 2015 and 2014, respectively: 9/30/2015 9/30/2014 Expected provision (based on statutory rate) $ (553,737 ) $ (826,481 ) Effect of: Increase (decrease) in valuation allowance 552,168 831,524 State minimum tax, net of federal benefit 31,002 - Non-deductible expense 1,081 1,108 Net operating loss adjustment - (5,736 ) Rate Change - - Other, net 488 (415 ) Total actual provision $ 31,002 $ - |
STOCK-BASED COMPENSATION (Table
STOCK-BASED COMPENSATION (Tables) | 12 Months Ended |
Sep. 30, 2015 | |
STOCK-BASED COMPENSATION [Abstract] | |
Summary of Stock Options Activity | Number of Options Weighted Average Exercise Price Weighted Average Remaining Average Intrinsic Value Outstanding at beginning of period 2,000,000 - Granted - $ 0.12 - Exercised - - - Cancelled - - - Outstanding at end of period 2,000,000 $ 0.12 3.81 $ 260,000 Vested and expected to vest 2,000,000 $ 0.12 3.81 $ 260,000 Exercisable at end of period - - - - |
Schedule of Fair Value Assumptions | Expected dividend yield 0 Expected stock price volatility 79.02 Risk-free interest rate 1.53 Expected life of options 5.75 Weighted-average grant date fair value $ 0.08 |
ORGANIZATION AND SUMMARY OF S22
ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) a in Millions | 12 Months Ended | ||
Sep. 30, 2015USD ($)aitemshares | Sep. 30, 2014USD ($)shares | Sep. 30, 2013USD ($) | |
ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES [Abstract] | |||
Number of leased federal outer continental shelf blocks | item | 23 | ||
Area of three-dimensional (3-D) seismic data licensed | a | 2.2 | ||
Shares excluded from the computation of diluted loss per share | shares | 51,824,819 | 52,786,765 | |
Cash | $ | $ 1,428,014 | $ 4,410,302 | $ 310,199 |
LIQUIDITY_GOING CONCERN (Detail
LIQUIDITY/GOING CONCERN (Details) - USD ($) | 12 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2013 | |
LIQUIDITY/GOING CONCERN [Abstract] | |||
Accumulated losses | $ 28,351,260 | $ 24,659,677 | |
Cash | 1,428,014 | $ 4,410,302 | $ 310,199 |
Minimum capital which company estimated to raise to meet its obligations and planned expenditures during October 1, 2014 through December 31, 2015 | $ 7,100,000 |
EXPLORATION COSTS (Details)
EXPLORATION COSTS (Details) - USD ($) | 12 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Mar. 31, 2014 | |
Deferred Costs, Capitalized, Prepaid And Other Assets [Line Items] | |||
Impairment of Oil and Natural Gas Properties | $ 93,052 | $ 2,726,103 | |
Technological Infrastructure And Third Party Hosting Services [Member] | |||
Deferred Costs, Capitalized, Prepaid And Other Assets [Line Items] | |||
Exploration costs capitalized during the period | $ 1,219,317 | ||
Consulting Fees And Salaries And Benefits [Member] | |||
Deferred Costs, Capitalized, Prepaid And Other Assets [Line Items] | |||
Exploration costs capitalized during the period | 1,426,786 | ||
Independent Reserve Study [Member] | |||
Deferred Costs, Capitalized, Prepaid And Other Assets [Line Items] | |||
Exploration costs capitalized during the period | $ 80,000 |
OIL AND GAS PROPERTIES (Details
OIL AND GAS PROPERTIES (Details) - USD ($) | 1 Months Ended | 2 Months Ended | 6 Months Ended | 12 Months Ended | 24 Months Ended | |
Mar. 31, 2015 | Jun. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | |
Deferred Costs, Capitalized, Prepaid And Other Assets [Line Items] | ||||||
Exploration costs capitalized during the period | $ 2,129,006 | |||||
Impairment of Oil and Natural Gas Properties | $ 93,052 | $ 2,726,103 | ||||
Paid for lease | 1,148,302 | 8,126,972 | $ 9,275,274 | |||
Proceeds from sale of working interest | 8,200,000 | 1,800,000 | 8,200,000 | 10,000,000 | ||
Unproved oil and gas properties | 2,055,978 | 5,557,183 | 2,055,978 | $ 5,557,183 | ||
Technological Infrastructure And Third Party Hosting Services [Member] | ||||||
Deferred Costs, Capitalized, Prepaid And Other Assets [Line Items] | ||||||
Exploration costs capitalized during the period | 763,767 | 3,231,780 | ||||
Consulting Fees And Salaries And Benefits [Member] | ||||||
Deferred Costs, Capitalized, Prepaid And Other Assets [Line Items] | ||||||
Exploration costs capitalized during the period | 1,365,239 | 921,124 | ||||
Farm Out Letter Agreement Texas South [Member] | ||||||
Deferred Costs, Capitalized, Prepaid And Other Assets [Line Items] | ||||||
Maximum proceeds to be received under farm out agreement | $ 10,000,000 | 10,000,000 | ||||
Proceeds received under farm out agreement | $ 1,800,000 | $ 8,200,000 | ||||
Ownership percentage by Texas South | 20.00% | 20.00% | ||||
BOEM [Member] | ||||||
Deferred Costs, Capitalized, Prepaid And Other Assets [Line Items] | ||||||
Paid for lease | $ 340,547 | $ 807,755 |
PROPERTY AND EQUIPMENT (Schedul
PROPERTY AND EQUIPMENT (Schedule of Property and Equipment) (Details) - USD ($) | Sep. 30, 2015 | Sep. 30, 2014 |
Property, Plant and Equipment [Line Items] | ||
Gross property and equipment | $ 164,231 | $ 149,753 |
Less: accumulated depreciation | (93,716) | (41,782) |
Net property and equipment | 70,515 | 107,971 |
Office Equipment and Computers [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Gross property and equipment | 143,897 | 129,419 |
Furniture and Fixtures [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Gross property and equipment | 16,280 | 16,280 |
Leasehold Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Gross property and equipment | $ 4,054 | $ 4,054 |
PROPERTY AND EQUIPMENT (Sched27
PROPERTY AND EQUIPMENT (Schedule of Estimated Useful Lives of Assets) (Details) - USD ($) | 12 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2014 | |
Property, Plant and Equipment [Line Items] | ||
Depreciation | $ 51,934 | $ 34,565 |
Office Equipment and Computers [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Estimated Useful Lives | 3 years | |
Furniture and Fixtures [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Estimated Useful Lives | 5 years | |
Leasehold Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Estimated Useful Lives | 5 years |
INCOME TAXES (Schedule of Incom
INCOME TAXES (Schedule of Income Tax Provision) (Details) - USD ($) | 12 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2014 | |
FEDERAL | ||
Current | ||
Deferred | ||
STATE | ||
Current | $ 31,002 | |
Deferred | ||
TOTAL PROVISION | $ 31,002 |
INCOME TAXES (Schedule of Defer
INCOME TAXES (Schedule of Deferred Income Tax Assets and Liabilities) (Details) - USD ($) | 12 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2014 | |
DEFERRED TAX ASSETS | ||
Current | ||
Noncurrent | ||
Net operating losses | $ 3,095,457 | $ 2,825,208 |
Exploration costs | (282,550) | $ 873,708 |
Gain recognized on sale of working interest | 1,404,763 | |
Stock based compensation | $ 33,414 | |
Differences in book/tax depreciation | ||
Total noncurrent | $ 4,251,084 | $ 3,698,916 |
Valuation Allowance | $ (4,251,084) | $ (3,698,916) |
NET DEFERRED TAX ASSET | ||
DEFERRED TAX LIABILITIES | ||
NET DEFERRED TAXES | ||
Valuation allowance increase | $ 552,168 | $ 831,524 |
INCOME TAXES (Summary of Federa
INCOME TAXES (Summary of Federal Net Operating Loss Carryforwards) (Details) | 12 Months Ended |
Sep. 30, 2015USD ($) | |
Operating Loss Carryforwards [Line Items] | |
Amount | $ 20,636,378 |
Federal Net Operating Loss Carryforward 1 [Member] | |
Operating Loss Carryforwards [Line Items] | |
Amount | $ 3,203 |
Expiration | Sep. 30, 2024 |
Federal Net Operating Loss Carryforward 2 [Member] | |
Operating Loss Carryforwards [Line Items] | |
Amount | $ 7,695 |
Expiration | Sep. 30, 2025 |
Federal Net Operating Loss Carryforward 3 [Member] | |
Operating Loss Carryforwards [Line Items] | |
Amount | $ 18,447 |
Expiration | Sep. 30, 2026 |
Federal Net Operating Loss Carryforward 4 [Member] | |
Operating Loss Carryforwards [Line Items] | |
Amount | $ 16,876 |
Expiration | Sep. 30, 2027 |
Federal Net Operating Loss Carryforward 5 [Member] | |
Operating Loss Carryforwards [Line Items] | |
Amount | $ 17,986 |
Expiration | Sep. 30, 2028 |
Federal Net Operating Loss Carryforward 6 [Member] | |
Operating Loss Carryforwards [Line Items] | |
Amount | $ 8,596 |
Expiration | Sep. 30, 2029 |
Federal Net Operating Loss Carryforward 7 [Member] | |
Operating Loss Carryforwards [Line Items] | |
Amount | $ 7,713 |
Expiration | Sep. 30, 2030 |
Federal Net Operating Loss Carryforward 8 [Member] | |
Operating Loss Carryforwards [Line Items] | |
Amount | $ 64,097 |
Expiration | Sep. 30, 2031 |
Federal Net Operating Loss Carryforward 9 [Member] | |
Operating Loss Carryforwards [Line Items] | |
Amount | $ 513,914 |
Expiration | Sep. 30, 2032 |
Federal Net Operating Loss Carryforward 10 [Member] | |
Operating Loss Carryforwards [Line Items] | |
Amount | $ 7,155,229 |
Expiration | Sep. 30, 2033 |
Federal Net Operating Loss Carryforward 11 [Member] | |
Operating Loss Carryforwards [Line Items] | |
Amount | $ 11,567,666 |
Expiration | Sep. 30, 2034 |
Federal Net Operating Loss Carryforward 12 [Member] | |
Operating Loss Carryforwards [Line Items] | |
Amount | $ 1,254,956 |
Expiration | Sep. 30, 2035 |
INCOME TAXES (Schedule of Effec
INCOME TAXES (Schedule of Effective Income Tax Rate Reconciliation) (Details) - USD ($) | 12 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2014 | |
INCOME TAXES [Abstract] | ||
Expected provision (based on statutory rate) | $ (553,737) | $ (826,481) |
Effect of: | ||
Increase (decrease) in valuation allowance | 552,168 | $ 831,524 |
State minimum tax, net of federal benefit | 31,002 | |
Non-deductible expense | $ 1,081 | $ 1,108 |
Net operating loss adjustment | $ (5,736) | |
Rate Change | ||
Other, net | $ 488 | $ (415) |
TOTAL PROVISION | $ 31,002 |
RELATED PARTY TRANSACTIONS (Det
RELATED PARTY TRANSACTIONS (Details) - USD ($) | 1 Months Ended | 7 Months Ended | 12 Months Ended | ||||||||||||
Dec. 31, 2015 | Apr. 30, 2015 | Aug. 31, 2014 | Mar. 31, 2014 | Oct. 31, 2013 | Oct. 30, 2013 | May. 31, 2013 | Mar. 31, 2013 | Oct. 31, 2013 | Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2013 | Aug. 31, 2015 | Jun. 30, 2014 | Jun. 30, 2013 | |
Related Party Transaction [Line Items] | |||||||||||||||
Common stock issued for consulting services, per share value | $ 0.12 | ||||||||||||||
Loans from Related Parties | $ 7,955,000 | $ 6,460,000 | |||||||||||||
Accrued Interest Payable | 384,531 | 40,812 | |||||||||||||
Accrued expense | 384,531 | 40,812 | |||||||||||||
Issuance of common stock for services | $ 177,393 | 194,400 | |||||||||||||
Exercise price | $ 0.12 | ||||||||||||||
Stock-based compensation expense | $ 405,773 | 151,712 | |||||||||||||
Stock issued during period, shares | 5,000,000 | 1,500,000 | 42,952,773 | ||||||||||||
Common stock issued, price per share | $ 0.10 | $ 0.24 | |||||||||||||
Subsequent Event [Member] | |||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||
Stock issued during period, shares | 5,000,000 | ||||||||||||||
ConRon Consulting Inc. [Member] | |||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||
Consulting agreement, term | 1 year | ||||||||||||||
Monthly consulting fee | $ 30,000 | 210,000 | |||||||||||||
Amount paid to related party | $ 90,000 | 150,000 | |||||||||||||
James Askew [Member] | |||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||
Severance expense | 100,000 | ||||||||||||||
Issuance of common stock for services, shares | 1,000,000 | ||||||||||||||
James Askew [Member] | Texas South Energy Inc [Member] | Minimum [Member] | |||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||
Percentage holding of related party in third party with whom entity has entered into the March 2014 farm-out letter agreement | 10.00% | ||||||||||||||
John Seitz [Member] | |||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||
Consulting agreement, term | 1 year | ||||||||||||||
Common stock issued for consulting services, per share value | $ 0.12 | ||||||||||||||
Interest rate | 5.00% | 5.00% | 5.00% | ||||||||||||
Conversion of notes payable, shares | 10,000,000 | ||||||||||||||
Debt conversion, price per share | $ 0.0012 | ||||||||||||||
Loans from Related Parties | $ 7,710,000 | ||||||||||||||
Accrued Interest Payable | $ 120,000 | 383,068 | |||||||||||||
Monthly consulting fee | $ 40,000 | $ 120,000 | |||||||||||||
Accrued expense | 120,000 | 383,068 | |||||||||||||
Note payable from related party, original amount | $ 1,250,000 | $ 1,160,000 | $ 6,500,000 | ||||||||||||
Stock issued for debt | $ 1,200,000 | ||||||||||||||
Number of common shares beneficially owned | $ 246,270,375 | ||||||||||||||
Dr. Ronald Bain [Member] | |||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||
Interest rate | 5.00% | ||||||||||||||
Accrued Interest Payable | $ 1,463 | ||||||||||||||
Base salary | 360,000 | ||||||||||||||
Accrued expense | 1,463 | ||||||||||||||
Note payable from related party, original amount | $ 245,000 | ||||||||||||||
Dr. Ronald Bain [Member] | Private Placement [Member] | |||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||
Stock issued during period, shares | 750,000 | ||||||||||||||
Common stock issued, price per share | $ 0.24 | ||||||||||||||
Brady Rodgers [Member] | |||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||
Issuance of common stock for services | $ 112,500 | ||||||||||||||
Issuance of common stock for services, shares | 937,500 | ||||||||||||||
Number of common stock shares that can be purchased through options granted | 2,000,000 | ||||||||||||||
Exercise price | $ 0.12 | $ 0.12 | |||||||||||||
Option term | 10 years | ||||||||||||||
Stock-based compensation expense | $ 161,143 | $ 158,398 | |||||||||||||
Brady Rodgers [Member] | Private Placement [Member] | |||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||
Stock issued during period, shares | 256,106 | ||||||||||||||
Brady Rodgers [Member] | October 2014 [Member] | |||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||
Vesting percentage of options granted | 50.00% | ||||||||||||||
Brady Rodgers [Member] | October 2015 [Member] | |||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||
Vesting percentage of options granted | 50.00% | ||||||||||||||
Paul Morris [Member] | Private Placement [Member] | |||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||
Stock issued during period, shares | 1,666,667 | 416,667 | |||||||||||||
Common stock issued, price per share | $ 0.24 | ||||||||||||||
Richard Langdon [Member] | Private Placement [Member] | |||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||
Stock issued during period, shares | 416,667 | ||||||||||||||
Domenica Seitz [Member] | |||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||
Accrued Interest Payable | $ 59,510 | ||||||||||||||
Accrued expense | $ 59,510 | ||||||||||||||
John Malanga [Member] | Private Placement [Member] | |||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||
Stock issued during period, shares | 166,667 | ||||||||||||||
Mr. Charles Hughes [Member] | Private Placement [Member] | |||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||
Stock issued during period, shares | 100,000 | ||||||||||||||
Common stock issued, price per share | $ 0.24 | ||||||||||||||
Kevin Bain [Member] | |||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||
Base salary | $ 175,000 |
COMMON STOCK_PAID IN CAPITAL (D
COMMON STOCK/PAID IN CAPITAL (Details) | Apr. 17, 2015USD ($)$ / sharesshares | Dec. 31, 2015shares | Sep. 30, 2015USD ($)$ / sharesshares | Apr. 30, 2015USD ($)$ / sharesshares | Sep. 30, 2014$ / sharesshares | Aug. 31, 2014USD ($)$ / sharesshares | Jul. 31, 2014USD ($)$ / sharesshares | May. 31, 2014shares | Mar. 31, 2014shares | Oct. 31, 2013USD ($)$ / sharesshares | Oct. 30, 2013USD ($)$ / sharesshares | Oct. 31, 2013USD ($)$ / sharesshares | Sep. 30, 2015USD ($)$ / sharesshares | Sep. 30, 2014USD ($)$ / sharesshares | Sep. 30, 2013$ / shares | May. 30, 2014shares |
Common Stock Issuance [Line Items] | ||||||||||||||||
Stock issued for services | $ | $ 119,650 | $ 194,400 | ||||||||||||||
Common stock issued for cash, shares | 5,000,000 | 1,500,000 | 42,952,773 | |||||||||||||
Common stock issued for cash | $ | $ 500,000 | $ 360,000 | $ 5,154,333 | $ 500,000 | $ 13,136,998 | |||||||||||
Common stock issued for consulting services, per share value | $ / shares | $ 0.12 | |||||||||||||||
Common Stock, shares authorized | 975,000,000 | 975,000,000 | 975,000,000 | 975,000,000 | 975,000,000 | 750,000,000 | ||||||||||
Preferred Stock, shares authorized | 50,000,000 | 50,000,000 | 50,000,000 | 50,000,000 | ||||||||||||
Value of stock issued for services | $ | $ 177,393 | $ 194,400 | ||||||||||||||
Amortization of employee stock options and restricted stock | $ | $ 856,125 | $ 210,928 | ||||||||||||||
Shares issued, price per share | $ / shares | $ 0.10 | $ 0.24 | ||||||||||||||
Weighted average exercise price per share | $ / shares | $ 0.12 | $ 0.12 | ||||||||||||||
Subsequent Event [Member] | ||||||||||||||||
Common Stock Issuance [Line Items] | ||||||||||||||||
Common stock issued for cash, shares | 5,000,000 | |||||||||||||||
James Askew [Member] | ||||||||||||||||
Common Stock Issuance [Line Items] | ||||||||||||||||
Shares of stock issued for services | 1,000,000 | |||||||||||||||
Private Placement [Member] | ||||||||||||||||
Common Stock Issuance [Line Items] | ||||||||||||||||
Common stock issued for cash, shares | 5,000,000 | 4,600,000 | 33,448,335 | |||||||||||||
Common stock issued for cash | $ | $ 500,000 | $ 230,000 | $ 8,027,600 | |||||||||||||
Shares issued, price per share | $ / shares | $ 0.10 | $ 0.05 | $ 0.05 | |||||||||||||
Stock price per share | $ / shares | $ 0.24 | |||||||||||||||
Common stock payable, shares | 5,000,000 | 5,000,000 | ||||||||||||||
John Seitz [Member] | ||||||||||||||||
Common Stock Issuance [Line Items] | ||||||||||||||||
Common stock issued for consulting services, per share value | $ / shares | $ 0.12 | |||||||||||||||
Dr. Ronald Bain [Member] | Private Placement [Member] | ||||||||||||||||
Common Stock Issuance [Line Items] | ||||||||||||||||
Common stock issued for cash, shares | 750,000 | |||||||||||||||
Shares issued, price per share | $ / shares | $ 0.24 | $ 0.24 | ||||||||||||||
Brady Rodgers [Member] | ||||||||||||||||
Common Stock Issuance [Line Items] | ||||||||||||||||
Shares of stock issued for services | 937,500 | |||||||||||||||
Value of stock issued for services | $ | $ 112,500 | |||||||||||||||
Weighted average exercise price per share | $ / shares | $ 0.12 | $ 0.12 | ||||||||||||||
Expiration period | 10 years | |||||||||||||||
Number of common stock shares that can be purchased through options granted | 2,000,000 | |||||||||||||||
Brady Rodgers [Member] | Private Placement [Member] | ||||||||||||||||
Common Stock Issuance [Line Items] | ||||||||||||||||
Common stock issued for cash, shares | 256,106 | |||||||||||||||
Employees [Member] | ||||||||||||||||
Common Stock Issuance [Line Items] | ||||||||||||||||
Stock issued for services | $ | $ 194,400 | |||||||||||||||
Shares of stock issued for services | 3,030,000 | 550,000 | 500,000 | 1,620,000 | ||||||||||||
Amortization of employee stock options and restricted stock | $ | $ 363,600 | $ 30,300 | ||||||||||||||
Number of individuals to whom restricted stock awarded | 6 | |||||||||||||||
John H. Malanga, Chief Financial Officer and Chief Accounting Officer [Member] | ||||||||||||||||
Common Stock Issuance [Line Items] | ||||||||||||||||
Shares of stock issued for services | 2,500,000 | |||||||||||||||
Value of stock issued for services | $ | $ 600,000 | |||||||||||||||
New Employee [Member] | ||||||||||||||||
Common Stock Issuance [Line Items] | ||||||||||||||||
Shares of stock issued for services | 200,000 | |||||||||||||||
Value of stock issued for services | $ | $ 48,000 | |||||||||||||||
Vendor [Member] | ||||||||||||||||
Common Stock Issuance [Line Items] | ||||||||||||||||
Common stock issued for cash, shares | 1,579,607 |
STOCK-BASED COMPENSATION (Narra
STOCK-BASED COMPENSATION (Narrative) (Details) - USD ($) | 12 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2014 | |
STOCK-BASED COMPENSATION [Abstract] | ||
Amortization of employee stock options and restricted stock | $ 856,125 | $ 210,928 |
Stock-based compensation expense | 405,773 | $ 151,712 |
Options outstanding, aggregate intrinsic value | $ 260,000 |
STOCK-BASED COMPENSATION (Summa
STOCK-BASED COMPENSATION (Summary of Stock Options Activity) (Details) - USD ($) | 12 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2014 | |
Number of Options | ||
Outstanding at beginning of period | 2,000,000 | |
Granted | ||
Exercised | ||
Cancelled | ||
Outstanding at end of period | 2,000,000 | |
Vested and expected to vest | 2,000,000 | |
Exercisable at end of period | ||
Weighted Average Exercise Price | ||
Granted | $ 0.12 | |
Exercised | ||
Cancelled | ||
Outstanding at end of period | $ 0.12 | |
Vested and expected to vest | $ 0.12 | |
Exercisable at end of period | ||
Weighted Average Remaining Contractual Term | ||
Outstanding at end of period | 3 years 9 months 22 days | |
Vested and expected to vest | 3 years 9 months 22 days | |
Exercisable at end of period | ||
Average Intrinsic Value | ||
Outstanding at end of period | $ 260,000 | |
Vested and expected to vest | $ 260,000 | |
Exercisable at end of period |
STOCK-BASED COMPENSATION (Sched
STOCK-BASED COMPENSATION (Schedule of Fair Value Assumptions) (Details) - USD ($) | 12 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2014 | |
STOCK-BASED COMPENSATION [Abstract] | ||
Expected dividend yield | 0.00% | |
Expected stock price volatility | 79.02% | |
Risk-free interest rate | 1.53% | |
Expected life of options | 5 years 9 months | |
Weighted-average grant date fair value | $ 0.08 | |
Stock option [Member] | ||
Stock-based compensation [Line Items] | ||
Unrecognized compensation cost | $ 2,744 | |
Unrecognized compensation cost, period of recognition | 3 months | |
Restricted stock [Member] | ||
Stock-based compensation [Line Items] | ||
Unrecognized compensation cost | $ 667,550 | |
Unrecognized compensation cost, period of recognition | 1 year |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Details) - USD ($) | 1 Months Ended | 12 Months Ended | 31 Months Ended | |||||||
Dec. 31, 2015 | Oct. 31, 2015 | Apr. 30, 2015 | Oct. 31, 2014 | Aug. 31, 2014 | Oct. 30, 2013 | Jul. 31, 2013 | Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | |
Purchase Commitment, Excluding Long-term Commitment [Line Items] | ||||||||||
Payments for exploration costs | $ 3,617,142 | $ 4,731,506 | ||||||||
Security deposit | $ 18,760 | |||||||||
Insurance policy purchased | $ 245,291 | |||||||||
Amount of premium paid by executing a note payable | $ 224,360 | |||||||||
Stock issued during period, shares | 5,000,000 | 1,500,000 | 42,952,773 | |||||||
Common stock issued, price per share | $ 0.10 | $ 0.24 | ||||||||
Common stock issued for cash | $ 500,000 | $ 360,000 | $ 5,154,333 | 500,000 | $ 13,136,998 | |||||
Subsequent Event [Member] | ||||||||||
Purchase Commitment, Excluding Long-term Commitment [Line Items] | ||||||||||
Insurance policy purchased | $ 259,936 | |||||||||
Amount of premium paid by executing a note payable | $ 235,861 | |||||||||
Stock issued during period, shares | 5,000,000 | |||||||||
First Period [Member] | ||||||||||
Purchase Commitment, Excluding Long-term Commitment [Line Items] | ||||||||||
Agreement monthly amount | 20,200 | |||||||||
Second Period [Member] | ||||||||||
Purchase Commitment, Excluding Long-term Commitment [Line Items] | ||||||||||
Agreement monthly amount | $ 20,500 | |||||||||
TGS [Member] | ||||||||||
Purchase Commitment, Excluding Long-term Commitment [Line Items] | ||||||||||
Payments for exploration costs | $ 6,135,500 | |||||||||
Nonspecified Siesmic Company [Member] | ||||||||||
Purchase Commitment, Excluding Long-term Commitment [Line Items] | ||||||||||
Payments for exploration costs | 3,009,195 | |||||||||
Payment due during December 2015 | $ 1,003,065 | $ 1,003,065 |
SUBSEQUENT EVENTS (Details)
SUBSEQUENT EVENTS (Details) - USD ($) | 1 Months Ended | |
Oct. 31, 2015 | Oct. 31, 2014 | |
Subsequent Event [Line Items] | ||
Insurance policy purchased | $ 245,291 | |
Amount of premium paid by executing a note payable | $ 224,360 | |
Subsequent Event [Member] | ||
Subsequent Event [Line Items] | ||
Insurance policy purchased | $ 259,936 | |
Amount of premium paid by executing a note payable | $ 235,861 |