GulfSlope Energy (GSPE) 10-Q 16 Feb 21 2021 Q1 Quarterly report Financial data

Cover

Cover - shares	3 Months Ended
	Dec. 31, 2020	Feb. 12, 2021
Cover [Abstract]
Entity Registrant Name	GULFSLOPE ENERGY, INC.
Entity Central Index Key	0001341726
Document Type	10-Q
Document Period End Date	Dec. 31, 2020
Entity File Number	000-51638
Entity Incorporation, State Code	DE
Amendment Flag	false
Current Fiscal Year End Date	--09-30
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Non-accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		1,268,240,346
Document Fiscal Period Focus	Q1
Document Fiscal Year Focus	2021

Condensed Balance Sheets (Unaud

Condensed Balance Sheets (Unaudited) - USD ($)	Dec. 31, 2020	Sep. 30, 2020
Current Assets
Cash	$ 2,558,646	$ 3,190,418
Accounts Receivable		366,173
Prepaid Expenses and Other Current Assets	269,354	84,129
Total Current Assets	2,828,000	3,640,720
Property and Equipment, net	4,624	6,347
Oil and Natural Gas Properties, Full Cost Method of Accounting, Unproved Properties	12,453,023	12,372,853
Operating Lease Right of Use Asset	41,441	54,768
Total Non-Current Assets	12,499,088	12,433,968
Total Assets	15,327,088	16,074,688
Current Liabilities
Accounts Payable	178,393	228,892
Related Party Payable	417,983	417,984
Accrued Interest Payable	2,731,983	2,616,008
Accrued Expenses and Other Payables	268,863	268,863
Loans from Related Parties	8,725,500	8,725,500
Notes Payable		120,827
Convertible Notes Payable, net of Debt Discount	220,656	461,613
Derivative Financial Instruments	972,552	1,070,551
Current Portion of Operating Lease Liability	67,271	62,074
Total Current Liabilities	13,583,201	13,972,312
Total Liabilities	13,583,201	13,972,312
Commitments and Contingencies
Stockholders' Equity
Preferred Stock; par value ($0.001); Authorized 50,000,000 shares none issued or outstanding
Common Stock; par value ($0.001); Authorized 1,500,000,000 shares; issued and outstanding 1,268,240,346 and 1,250,740,346 as of December 31, 2020 and September 30, 2020, respectively	1,268,240	1,250,740
Additional Paid-in-Capital	58,815,808	58,728,308
Additional Paid-in Capital - Shares to Be Issued		105,000
Accumulated Deficit	(58,340,161)	(57,981,672)
Total Stockholders' Equity	1,743,887	2,102,376
Total Liabilities and Stockholders' Equity	$ 15,327,088	$ 16,074,688

Condensed Balance Sheets (Una_2

Condensed Balance Sheets (Unaudited) (Parenthetical) - $ / shares	Dec. 31, 2020	Sep. 30, 2020
Statement of Financial Position [Abstract]
Preferred stock, par value (in dollars per share)	$ 0.001	$ 0.001
Preferred stock, authorized	50,000,000	50,000,000
Preferred stock, issued	0	0
Preferred stock, outstanding	0	0
Common stock, par value (in dollars per share)	$ 0.001	$ 0.001
Common stock, authorized	1,500,000,000	1,500,000,000
Common stock, issued	1,268,240,346	1,250,740,346
Common stock, outstanding	1,268,240,346	1,250,740,346

Condensed Statements of Operati

Condensed Statements of Operations (Unaudited) - USD ($)	3 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
Income Statement [Abstract]
Revenues
General and Administrative Expenses	382,116	$ 476,922
Net Loss from Operations	(382,116)	(476,922)
Other Income/(Expenses):
Interest Expense, net	(164,751)	(21,226)
Gain (Loss) on Debt Extinguishment	136,640	(879,522)
Gain on Derivative Financial Instruments	51,738	1,224,527
Net Loss Before Income Taxes	(358,489)	(153,143)
Provision for Income Taxes
Net Loss	$ (358,489)	$ (153,143)
Loss Per Share - Basic and Diluted (in dollars per share)	$ 0	$ 0
Weighted Average Shares Outstanding - Basic and Diluted (in shares)	1,266,534,389	1,105,662,883

Statements of Stockholders' Equ

Statements of Stockholders' Equity (unaudited) - USD ($)	Common Stock [Member]	Additional Paid-in Capital [Member]	Additional Paid - In Capital Shares to Be Issued [Member]	Accumulated Deficit [Member]Cumulative adjustment upon ASC 842 adoption [Member]	Accumulated Deficit [Member]	Cumulative adjustment upon ASC 842 adoption [Member]	Total
Balance at beginning at Sep. 30, 2019	$ 1,092,266	$ 54,160,836		$ 16,429	$ (55,582,010)	$ 16,429	$ (328,908)
Balance at beginning (in shares) at Sep. 30, 2019	1,092,266,844
Stock based compensation		367,841					367,841
Common stock issued for conversion of convertible note payable and accrued interest	$ 17,920	530,471					548,391
Common stock issued for conversion of convertible note payable and accrued interest (in shares)	17,919,455
Common stock registration costs		(15,398)					(15,398)
Stock Issued to extinguish liability	$ 38,423	1,498,506					1,536,929
Stock Issued to extinguish liability (in shares)	38,423,221
Net Loss					(153,143)		(153,143)
Balance at end at Dec. 31, 2019	$ 1,148,609	56,542,256			(55,718,724)		1,972,141
Balance at end (in shares) at Dec. 31, 2019	1,148,609,520
Balance at beginning at Sep. 30, 2020	$ 1,250,740	58,728,308	$ 105,000		(57,981,672)		$ 2,102,376
Balance at beginning (in shares) at Sep. 30, 2020	1,250,740,346						1,250,740,346
Common Stock issued in settlement of debt	$ 17,500	87,500	$ (105,000)
Common Stock issued in settlement of debt (in shares)	17,500,000
Net Loss					(358,489)		$ (358,489)
Balance at end at Dec. 31, 2020	$ 1,268,240	$ 58,815,808			$ 58,340,161		$ 1,743,887
Balance at end (in shares) at Dec. 31, 2020	1,268,240,346						1,268,240,346

Condensed Statements of Cash Fl

Condensed Statements of Cash Flows (Unaudited) - USD ($)	3 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
OPERATING ACTIVITIES
Net Loss	$ (358,489)	$ (153,143)
Adjustments to Reconcile Net Loss to Net Cash Provided By (Used In) Operating Activities:
Capitalization of Interest Expense		(442,338)
Depreciation	1,723	1,535
Stock Based Compensation		181,166
Gain on Derivative Financial Instruments	(51,738)	(1,224,527)
Debt Discount Amortization	48,460	238,039
Loss Recorded to Interest Expense for Issuance of Convertible Notes		32,539
(Gain) Loss on Debt Extinguishment	(136,640)	879,522
Changes in Operating Assets and Liabilities:
Accounts Receivable	189,729	5,769,927
Prepaid Expenses and Other Current Assets	(185,225)	142,902
Accounts Payable	(103,046)	(3,086,387)
Related Party Payable		14,880
Accrued Interest Payable	116,637	204,298
Operating Lease Liabilities	18,523	(8,864)
Net Cash Provided By (Used In) Operating Activities	(460,066)	2,549,549
INVESTING ACTIVITIES
Insurance Proceeds Received	223,650	637,875
Investments in Oil and Gas Properties	(74,829)	(970,353)
Net Cash Provided By (Used In) Investing Activities	148,821	(332,478)
FINANCING ACTIVITIES
Proceeds from Issuance of Convertible Notes Payable		435,000
Payments on Notes Payable	(320,527)	(19,594)
Net Cash Provided By (Used In) Financing Activities	(320,527)	415,406
Net Increase (Decrease) in Cash	(631,772)	2,632,477
Beginning Cash Balance	3,190,418	1,138,919
Ending Cash Balance	2,558,646	3,771,395
Supplemental Schedule of Cash Flow Activities:
Cash Paid for Interest, Net of Amounts Capitalized	96	1,030
Non-Cash Financing and Investing Activities:
Prepaid Asset Financed by Note Payable		220,629
Capital Expenditures in Accounts Payable	5,341	480,900
Stock-Based Compensation Capitalized to Oil and Gas properties		186,675
Accounts Receivable Exchanged for Working Interest in Oil and Natural Gas Properties		3,629,789
Accrued Expense Extinguished through Issuance of Common Stock		1,536,929
Common Stock Issued upon Conversion of Convertible Notes Payable and Accrued Interest	$ 17,500	548,391
Derivative Liability Related to Issued Convertible Note		433,425
Convertible Debenture Proceeds Retained by Lender to Settle Loan Issuance Costs		$ 65,000

ORGANIZATION AND NATURE OF BUSI

ORGANIZATION AND NATURE OF BUSINESS	3 Months Ended
	Dec. 31, 2020
Organization, Consolidation and Presentation of Financial Statements [Abstract]
ORGANIZATION AND NATURE OF BUSINESS	NOTE 1 – ORGANIZATION AND NATURE OF BUSINESS GulfSlope Energy, Inc. (the “Company“ or “GulfSlope“) is an independent oil and natural gas exploration company whose interests are concentrated in the United States Gulf of Mexico federal waters offshore Louisiana. The Company currently has under lease three federal Outer Continental Shelf blocks (referred to as “prospect,“ “portfolio“ or “leases“) and licensed three-dimensional (3-D) seismic data across its area of concentration.

SIGNIFICANT ACCOUNTING POLICIES

SIGNIFICANT ACCOUNTING POLICIES	3 Months Ended
	Dec. 31, 2020
Accounting Policies [Abstract]
SIGNIFICANT ACCOUNTING POLICIES	NOTE 2 – SIGNIFICANT ACCOUNTING POLICIES The condensed financial statements included herein are unaudited. However, these condensed financial statements include all adjustments (consisting of normal recurring adjustments), which, in the opinion of management are necessary for a fair presentation of financial position, results of operations and cash flows for the interim periods. The results of operations for interim periods are not necessarily indicative of the results to be expected for an entire year. The preparation of financial statements in accordance with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the amounts reported in the Company’s condensed financial statements and accompanying notes. Actual results could differ materially from those estimates. Certain information, accounting policies, and footnote disclosures normally included in the financial statements prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP“) have been omitted pursuant to certain rules and regulations of the Securities and Exchange Commission (“SEC“). The condensed financial statements should be read in conjunction with the audited financial statements for the year ended September 30, 2020, which were included in the Company’s Annual Report on Form 10-K for the fiscal year ended September 30, 2020 and filed with the Securities and Exchange Commission on December 29, 2020. Cash GulfSlope considers highly liquid investments with original maturities to the Company of three months or less to be cash equivalents. There were no cash equivalents at December 31, 2020 and September 30, 2020. Liquidity / Going Concern The Company has incurred accumulated losses as of December 31, 2020 of $58.3 million, has negative working capital of $10.8 million and for the three months ended December 31, 2020 generated losses of $0.1 million. Further losses are anticipated in developing our business. As a result, there exists substantial doubt about our ability to continue as a going concern. As of December 31, 2020, we had $2.6 million of unrestricted cash on hand. The Company estimates that it will need to raise a minimum of $10.0 million to meet its obligations and planned expenditures. The $10.0 million is comprised primarily of capital project expenditures as well as general and administrative expenses. It does not include any amounts due under outstanding debt obligations, which amounted to $11.7 million of current principal and accrued interest as of December 31, 2020. The Company plans to finance operations and planned expenditures through the issuance of equity securities, debt financings and farm-out agreements, asset sales or mergers. The Company also plans to extend the agreements associated with all loans, the accrued interest payable on these loans, as well as the Company’s accrued liabilities. There are no assurances that financing will be available with acceptable terms, if at all, or that obligations can be extended. If the Company is not successful in obtaining financing or extending obligations, operations would need to be curtailed or ceased, or the Company would need to sell assets or consider alternative plans up to and including restructuring. The financial statements do not include any adjustments that might result from the outcome of this uncertainty. Accounts Receivable The Company records an accounts receivable for operations expense reimbursements due from joint interest partners and also from normal operations. The Company estimates allowances for doubtful accounts based on the aged receivable balances and historical losses. If the Company determines any account to be uncollectible based on significant delinquency or other factors, the receivable and the underlying asset are assessed for recovery. As of December 31, 2020 and September 30, 2020, there was no allowance for doubtful accounts receivable. Gross accounts receivable was nil and approximately $0.4 million at December 31, 2020 and September 30, 2020, respectively. Full Cost Method The Company uses the full cost method of accounting for its oil and gas exploration and development activities. Under the full cost method of accounting, all costs associated with successful and unsuccessful exploration and development activities are capitalized on a country-by-country basis into a single cost center (“full cost pool“). Such costs include property acquisition costs, geological and geophysical (“G&G“) costs, carrying charges on non-producing properties, costs of drilling both productive and non-productive wells. Overhead costs, which includes employee compensation and benefits including stock-based compensation, incurred that are directly related to acquisition, exploration and development activities are capitalized. Interest expense is capitalized related to unevaluated properties and wells in process during the period in which the Company is incurring costs and expending resources to get the properties ready for their intended purpose. For significant investments in unproved properties and major development projects that are not being currently depreciated, depleted, or amortized and on which exploration or development activities are in progress, interest costs are capitalized. 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. Proved properties are amortized on a country-by-country basis using the units of production method (“UOP“), whereby capitalized costs are amortized over total proved reserves. The amortization base in the UOP calculation includes the sum of proved property, net of accumulated depreciation, depletion and amortization (“DD&A“), estimated future development costs (future costs to access and develop proved reserves), and asset retirement costs, less related salvage value. The costs of unproved properties and related capitalized costs (such as G&G costs) are withheld from the amortization calculation until such time as they are either developed or abandoned. Unproved properties and properties under development are reviewed for impairment at least quarterly and are determined through an evaluation that considers, among other factors, seismic data, requirements to relinquish acreage, drilling results, remaining time in the commitment period, remaining capital plan, and political, economic, and market conditions. In countries where proved reserves exist, exploratory drilling costs associated with dry holes are transferred to proved properties immediately upon determination that a well is dry and amortized accordingly. In countries where a reserve base has not yet been established, impairments are charged to earnings. At December 31, 2020 the Company continues to pursue the development of its unproved properties and is actively finalizing the permitting of the Tau #2 well. As such, project economics continue to support cost incurred plus future development therefore no impairment is required at December 31, 2020. 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 cost center ceiling is defined as the sum of (a) estimated future net revenues, discounted at 10% per annum, from proved reserves, (b) the cost of properties not being amortized, if any, and (c) the lower of cost or market value of unproved properties included in the cost being amortized. 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. The Company capitalizes exploratory well costs into oil and gas properties until a determination is made that the well has either found proved reserves or is impaired. If proved reserves are found, the capitalized exploratory well costs are reclassified to proved properties. The well costs are charged to expense if the exploratory well is determined to be impaired. The Company is currently evaluating one well for proved reserves and capitalized exploratory well costs remain pending the outcome of exploration activities involving the drilling of the Tau No. 2 well (twin well). Accordingly, these costs are included as suspended well costs at December 31, 2020 and it is expected that a final analysis will be completed in the next twelve months at which time the costs will be transferred to the full cost pool upon final evaluation. As of December 31, 2020, the Company’s oil and gas properties consisted of unproved properties, wells in process and no proved reserves. Due to a combination of the COVID-19 pandemic and related pressures on the global supply-demand balance for crude oil and related products, commodity prices have significantly declined in recent months, and oil and gas operators have reduced exploration budgets and activity. The Company has evaluated the effect of these factors on its business and notes these factors have caused a delay in the plans for the Company’s 2021 drilling program. The Company continues to monitor the economic environment and evaluate the impact on the business. Asset Retirement Obligations The Company’s asset retirement obligations will represent the present value of the estimated future costs associated with plugging and abandoning oil and natural gas wells, removing production equipment and facilities and restoring the seabed in accordance with the terms of oil and gas leases and applicable state and federal laws. Determining asset retirement obligations requires estimates of the costs of plugging and abandoning oil and natural gas wells, removing production equipment and facilities and restoring the sea bed as well as estimates of the economic lives of the oil and gas wells and future inflation rates. The resulting estimate of future cash outflows will be discounted using a credit-adjusted risk-free interest rate that corresponds with the timing of the cash outflows. Cost estimates will consider historical experience, third party estimates, the requirements of oil and natural gas leases and applicable local, state and federal laws, but do not consider estimated salvage values. Asset retirement obligations will be recognized when the wells drilled reach total depth or when the production equipment and facilities are installed or acquired with an associated increase in proved oil and gas property costs. Asset retirement obligations will be accreted each period through depreciation, depletion and amortization to their expected settlement values with any difference between the actual cost of settling the asset retirement obligations and recorded amount being recognized as an adjustment to proved oil and gas property costs. Cash paid to settle asset retirement obligations will be included in net cash provided by operating activities from continuing operations in the statements of cash flows. On a quarterly basis, when indicators suggest there have been material changes in the estimates underlying the obligation, the Company reassesses its asset retirement obligations to determine whether any revisions to the obligations are necessary. At least annually, the Company will assess all of its asset retirement obligations to determine whether any revisions to the obligations are necessary. Future revisions could occur due to changes in estimated costs or well economic lives, or if federal or state regulators enact new requirements regarding plugging and abandoning oil and natural gas wells. The Company drilled two well bores in 2018 and 2019 and these wellbores were both plugged with no further cost required and as such, the asset retirement obligation was completely extinguished. Derivative Financial Instruments The accounting treatment of derivative financial instruments requires that the Company the Company Basic and Dilutive Earnings Per Share Basic income (loss) per share (“EPS“) is computed by dividing net income (loss) (the numerator) by the weighted average number of common shares outstanding for the period (denominator). 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 convertible notes payable. The number of potential common shares outstanding relating to stock options and warrants, is computed using the treasury stock method. The number of potential common shares related to convertible notes payable is determined using the if-converted method. As the Company has incurred losses for the three months ended December 31, 2020 and 2019, the potentially dilutive shares are anti-dilutive and are thus not added into the loss per share calculations. As of December 31, 2020 and 2019, there were 256,011,343 and 437,801,388 potentially dilutive shares, respectively. 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. Recent Accounting Pronouncements In February 2016, the FASB issued ASU No. 2016-02, “Leases,“ and in March 2019, the FASB issued ASU No. 2019-01, “Leases: Codification Improvements“, which updated the accounting guidance related to leases to increase transparency and comparability among organizations by recognizing lease assets and lease liabilities on the balance sheet and disclosing key information about leasing arrangements. They also clarify implementation issues. These updates are effective for public companies for annual periods beginning after December 15, 2018, including interim periods therein. Accordingly, the standard was adopted by the Company on October 1, 2019. The standard was applied utilizing a modified retrospective approach and is reflected in these financial statements. In June 2018, the FASB issued ASU 2018-07, Compensation-Stock Compensation (Topic 718) 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 statements.

OIL AND NATURAL GAS PROPERTIES

OIL AND NATURAL GAS PROPERTIES	3 Months Ended
	Dec. 31, 2020
Oil and Gas Exploration and Production Industries Disclosures [Abstract]
OIL AND NATURAL GAS PROPERTIES	NOTE 3 – OIL AND NATURAL GAS PROPERTIES The Company currently has under lease three federal Outer Continental Shelf blocks and has licensed 2.2 million acres of three-dimensional (3-D) seismic data in its area of concentration. The Company, as the operator of two wells drilled in the Gulf of Mexico, has incurred tangible and intangible drilling costs for the wells in process and has billed its working interest partners for their respective share of the drilling costs to date. The intangible drilling and all other costs related to the first well have been impaired. The second well, Tau, was drilled to a measured depth of 15,254 feet, as compared to the originally permitted 29,857 foot measured depth. Producible hydrocarbon zones were not established to that depth, but hydrocarbon shows were encountered. Complex geomechanical conditions required two by-pass wellbores, one sidetrack wellbore, and eight casing strings to reach that depth. Equipment limitations prevented further drilling. In addition, the drilling rig had contractual obligations related to another operator. The Company elected to plug this well in a manner that would allow for re-entry at a later time. The Company is evaluating various options related to future operations in this wellbore and testing of the deeper Tau prospect. The Company plans to re-drill this prospect within the next twelve months, however, the impact of the CoVid In January 2019, the Tau well experienced an underground control of well event and as a result, the Company filed an insurance claim pursuant to its insurance policy with its insurance underwriters (the “Underwriters“). The total amount of the claim was approximately $10.8 million for 100% working interest after the insurance deductible amount. The Company received approximately $2.5 million of this amount and credited wells in process for approximately $0.9 million for the Company’s portion, and recorded an accrued payable for approximately $1.6 million, pending evaluation of distributions to the working interest owners. In December 2019, the accrued payable was settled by the issuance to the working interest partner of approximately 38.4 million shares of the Company’s common stock. In May 2019, the Tau No. 1 well experienced a second underground control of well event and as a result, the Company filed an insurance claim. The claim was related to a subsurface well occurrence that happened during the drilling of the Company‘s Tau No. 1 well on May 5, 2019 at a measured depth of 15,254 feet. The Company subsequently controlled the occurrence and ceased drilling operations and plugs were placed in the well to meet regulatory requirements prior to rig release. Pursuant to the Policy terms and conditions, the Underwriters were obligated to reimburse GulfSlope for qualified actual costs and expenses incurred to (i) regain control of the well, and (ii) restore or re-drill the well to 15,254 feet. Total costs and expenses to regain control of the well were determined to be approximately $4.8 million (net of deductible) for 100% working interest and all of this amount had been received as of December 31, 2020. GulfSlope’s share of this amount was approximately $1.2 million. In November 2019, an agreement was reached with a working interest partner whereby the working interest partner re-conveyed to the Company their 5% interest in Tau and Canoe in exchange for the release of claims and the Company foregoing collection of accounts receivable owed by the working interest partner. As a result of this agreement approximately $3.6 million of accounts receivable was reclassified to oil and gas properties – unproved during the year ended September 30, 2020. On July 27, 2020, the Company entered into a settlement with the Underwriters of the well control events insurance policy for their claims associated with the re-drilling of the Tau No. 1 well. In accordance with the settlement, in lieu of the insurer paying for the redrill of the well and for a complete release of any further liability under the insurance policy, the Company will receive approximately $6.6 million in cash net to its 25% working interest. At December 31, 2020, all of this amount has been received. As of December 31, 2020, the Company’s oil and natural gas properties consisted of unproved properties, wells in process and no proved reserves. During the three months ended December 31, 2020 and 2019, the Company capitalized approximately nil and $0.4 million of interest expense to oil and natural gas properties, respectively, and approximately $0.03 million and $0.3 million of general and administrative expenses, capitalized to oil and natural gas properties, respectively.

RELATED PARTY TRANSACTIONS

RELATED PARTY TRANSACTIONS	3 Months Ended
	Dec. 31, 2020
Related Party Transactions [Abstract]
RELATED PARTY TRANSACTIONS	NOTE 4 – RELATED PARTY TRANSACTIONS During April 2013 through September 2017, the Company entered into convertible promissory notes whereby it borrowed a total of $8,675,500 from John Seitz, the chief executive officer (“CEO“). The notes are due on demand, bear interest at the rate of 5% per annum, and $5,300,000 of the notes are convertible into shares of common stock at a conversion price equal to $0.12 per share of common stock (the then offering price of shares of common stock to unaffiliated investors). As of December 31, 2020, the total amount owed to John Seitz is $8,675,500. This amount is included in loans from related parties within the condensed balance sheets. There was approximately $2.6 million of unpaid interest associated with these loans included in accrued interest payable within the balance sheet as of December 31, 2020. On November 15, 2016, a family member of the CEO entered into a $50,000 convertible promissory note with associated warrants (“Bridge Financing“) under the same terms received by other investors (see Note 5). Domenica Seitz CPA, related to John Seitz, has provided accounting services to the Company through September 30, 2020 as a consultant and beginning October 2020 as an employee. During the three months ended December 31, 2020 and 2019, the services provided were valued at approximately $19,000 and $15,000, respectively.

NOTES PAYABLE

NOTES PAYABLE	3 Months Ended
	Dec. 31, 2020
Notes Payable [Abstract]
NOTES PAYABLE	NOTE 5 – NOTES PAYABLE The Company’s notes payable consisted of the following as of September 30, 2020 and December 31, 2020. September 30, 2020 December 31, 2020 PPP Loan Payable $ 100,300 $ 0 Insurance Note Payable 20,527 0 Total $ 120,827 $ 0 PPP Loan On April 16, 2020, GulfSlope Energy, Inc. entered into a promissory note (the “Note“) evidencing an unsecured $100,300 loan under the Paycheck Protection Program (the “PPP Loan“). The Paycheck Protection Program was established under the Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act“) and is administered by the U.S. Small Business Administration. The PPP Loan was made through Zions Bancorporation, N.A. dba Amegy Bank (the “Lender“). On December 17, 2020, the PPP Loan plus accrued interest of approximately $600 was formally forgiven in full by the U.S. Small Business Administration. The forgiven loan balance and related interest totaling approximately $100,900 was accounted for as a gain on debt extinguishment in the Condensed Statements of Operations during the three months ended December 31, 2020. Insurance Note Payable In November 2019, the Company purchased an insurance policy for approximately $241,000 and financed $220,629 of the premium by executing a note payable at an interest rate of 5.6%. The note was paid in full with the October 2020 payment. The balance of the note payable was nil and approximately $21,000 at December 31, 2020 and September 30, 2020, respectively. This note is included in the Notes Payable balance in the Condensed Balance Sheet.

CONVERTIBLE NOTES PAYABLE

CONVERTIBLE NOTES PAYABLE	3 Months Ended
	Dec. 31, 2020
Debt Disclosure [Abstract]
CONVERTIBLE NOTES PAYABLE	NOTE 6 – CONVERTIBLE NOTES PAYABLE The Company’s convertible promissory notes consisted of the following as of September 30, 2020 and December 31, 2020. September 30, 2020 December 31, 2020 Notes Discount Notes, Net of Discount Notes Discount Notes Net of Discount Bridge Financing Notes $ 227,000 $ (11,209 ) $ 215,791 $ 227,000 $ (6,344) $ 220,656 June 2019 Convertible Debenture 300,000 (54,178 ) 245,822 0 0 0 Total $ 527,000 $ (65,387 ) $ 461,613 $ 227,000 $ (6,344) $ 220,656 Bridge Financing Notes Between June and November 2016, the Company issued eleven convertible promissory notes (“Bridge Financing Notes“) with associated warrants in a private placement to accredited investors for total gross proceeds of $837,000, including $222,000 from related parties. These notes and associated warrants had a maturity of one year (which has been extended at maturity to April 30, 2021), an annual interest rate of 8% and can be converted at the option of the holder at a conversion price of $0.025 per share. In addition, the convertible notes will automatically convert if a qualified equity financing of at least $3 million occurs before maturity and such mandatory conversion price will equal the effective price per share paid in the qualified equity financing. The note balances as of December 31, 2020 and September 30, 2020 were $277,000, with unamortized debt discounts of approximately $6,000 and $11,000, respectively. Debt discount amortization for the three months ended December 31, 2020 and 2019 was approximately $5,000 and $43,000, respectively. As noted above, on April 30, 2020, the maturity date related to these notes and associated warrants was extended to April 30, 2021. In consideration for the extension of the notes in April 2020, the Company extended the term of the related warrants until April 30, 2021 and recognized $19,300 of additional debt discount which represented the incremental value of the modified warrants over the pre-modification warrants. Delek Note On March 1, 2019, the Company entered into a term loan agreement with Delek, where Delek agreed to provide the Company with multiple draw term loans in an aggregate stated principal amount of up to $11.0 million, of which $10.0 million was initially advanced and subsequently converted to equity through the exercise of a warrant. The maturity date of the facility was September 4, 2019, and until such time any loans would bear interest at a rate per annum equal to 5.0% or 7% upon the occurrence of default. Amounts outstanding under the Term Loan Agreement are secured by a security interest in substantially all of the properties and assets of the Company. On April 19, 2019, the Company borrowed the remaining $1.0 million under this agreement. The term loan facility expired as of September 4, 2019, and in October 2019, the Company signed a Post-Drilling Agreement with Delek modifying this arrangement. The Post-Drilling Agreement states that as payoff for the Company’s outstanding obligations of $1,000,000 plus accrued interest (and additional fees of approximately $200,000), the Company shall issue a convertible note payable to Delek in the amount of $1,220,548. The new note is convertible at the option of Delek at a conversion price of $0.05 per share, and in the event of default the conversion rate adjusts to 60% of the lowest volume weighted average price in the previous 20 trading days. Interest on the note accrues at 12% per annum (15% upon default) and the maturity of the note is October 22, 2020. The Company has a right to prepay all principal and accrued interest prior to maturity. The Company accounted for the October 2019 transaction as an extinguishment of the prior note given the addition of the substantive conversion feature discussed above. In addition, The Company concluded that the embedded conversion feature within the note requires derivative accounting treatment under ASC 815, Derivatives and Hedging On September 30, 2020, the Company and Delek settled this convertible note and related accrued interest of $129,211 for a cash payment of $1,220,548 and the issuance 17,500,000 shares of common stock. The shares were not issued until October 2020 and accordingly are reflected on the September 30, 2020 Condensed Balance Sheet as additional paid in capital – shares to be issued. June 2019 Convertible Debenture On June 21, 2019, the Company entered into a securities purchase agreement to borrow up to $3,000,000 through the issuance of convertible debentures (“Convertible Debentures”) and associated warrants. On June 21, 2019, approximately $2,100,000 (“Tranche 1”) of Convertible Debentures were purchased with other tranches closing on August 7, 2019 for $400,000 (“Tranche 2”) and November 6, 2019 (“Tranche 3”) for $500,000. All tranches accrue interest at eight percent per annum, and mature one year after each respective closing date, and are convertible at the option of the holder any time after issuance into common stock at a conversion rate of the lesser of: (1) $0.05 per share; or (2) 80% of the lowest volume weighted adjusted price (as reported by Bloomberg, LP) for the ten consecutive trading days immediately preceding conversion, and in the event of default the conversion rate adjusts to 60% of the lowest volume weighted average price in the previous 20 trading days. In addition, the holder received warrants to purchase an aggregate of 50 million shares of common stock at an exercise price of $0.04 per share (subsequently reduced to an exercise price $0.02 in 2020). Such warrants expire on the fifth anniversary of issuance. In total the offering costs incurred related to this Convertible Debenture were approximately $398,000. The Company evaluated the conversion feature and concluded that it should be bifurcated and accounted for as a derivative liability due to the variable conversion feature which does not contain an explicit limit on the number of shares that are required to be issued upon conversion. In addition, the Company concluded the warrants required treatment as derivative liabilities as the Company could not assert it has sufficient authorized but unissued shares to settle the warrants upon exercise when taking into account other stock-based commitments including the Convertible Debentures. Accordingly, the embedded conversion feature and warrants were recorded at fair value at issuance and are subsequently re-measured to fair value each reporting period. In June 2020, the Company extended the maturity dates of Tranche 1 and Tranche2 to August 21, 2020 in exchange for a cash payment of $50,000. The extension was treated as a modification for accounting purposes which resulted in the $50,000 being recognized as an additional debt discount allocated on a pro-rata basis between Tranche 1 and Tranche 2 and will be amortized using the effective interest method over the remaining life of the respective tranches. On July 27, 2020, the Company and the holder agreed to the following cash payments in full satisfaction of the obligations thereunder: (1) $50,000 on the date of the Agreement; (2) $700,000 on or before August 21, 2020; (3) $750,000 on or before September 30, 2020; and (4) any remaining principal amount outstanding on or before November 30, 2020. As of the date of the agreement, the principal balance outstanding on the Convertible Debenture was $1,900,000, which amount may be reduced in the event that holder elects to convert to equity all or any portion of principal prior to repayment. In connection with the agreement, the holder agreed not to convert more than $300,000 of principal of the Debenture between the date of the agreement and November 30, 2020. Upon the timely payment by the Company of the amounts set forth above, all other amounts due on the Debentures, including any interest or fees accrued or that will accrue or become due or payable on the Debentures, will be extinguished. The Company accounted for this arrangement as a modification of the existing debt. During the year ended September 30, 2020, the lender converted approximately $1,200,000 of principal of Tranche 1 and approximately $139,000 of accrued interest into common stock. The remaining balance of the convertible debenture at September 30, 2020 was $300,000. In November 2020, the Company made a $300,000 payment in full to satisfy the remaining balance of the convertible debenture. The fair value of the embedded conversion feature at September 30, 2020 was determined utilizing a Geometric Brownian Motion Stock Path Based Monte Carlo Simulation that utilized the following key assumptions: September 30, 2020 Stock Price $ 0.006 Fixed Exercise Price $ 0.05 Volatility 122 % Term (Years) 0.17 Risk Free Rate 0.10 % In addition to the fixed exercise price noted above, the model incorporated the variable conversion price which is simulated as 80% of the lowest trading price within the ten consecutive days preceding presumed conversion.

FAIR VALUE MEASUREMENT

FAIR VALUE MEASUREMENT	3 Months Ended
	Dec. 31, 2020
Fair Value Disclosures [Abstract]
FAIR VALUE MEASUREMENT	NOTE 7 – FAIR VALUE MEASUREMENT Fair value is defined as the price that would be received upon the sale of an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Fair value measurements are classified and disclosed in one of the following categories: Level 1: Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities. The Company considers active markets as those in which transactions for the assets or liabilities occur in sufficient frequency and volume to provide pricing information on an ongoing basis. Level 2: Quoted prices in markets that are not active, or inputs which are observable, either directly or indirectly, for substantially the full term of the asset or liability. This category includes those derivative instruments that the Company values using observable market data. Substantially all of these inputs are observable in the marketplace throughout the term of the derivative instrument, can be derived from observable data, or are supported by observable levels at which transactions are executed in the marketplace. Instruments in this category include non-exchange traded derivative financial instruments as well as warrants to purchase common stock and long-term incentive plan liabilities calculated using the Black-Scholes model to estimate the fair value as of the measurement date. Level 3: Measured based on prices or valuation models that require inputs that are both significant to the fair value measurement and less observable from objective sources (i.e. supported by little or no market activity). As required by ASC 820-10, financial assets and liabilities are classified based on the lowest level of input that is significant to the fair value measurement. The Company’s assessment of the significance of a particular input to the fair value measurement requires judgment and may affect the valuation of the fair value of assets and liabilities and their placement within the fair value hierarchy levels. Fair Value on a Recurring Basis The following table sets forth by level within the fair value hierarchy the Company’s derivative financial instruments that were accounted for at fair value on a recurring basis as of September 30, 2020 and December 31, 2020, respectively: Description Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs Significant Other Unobservable Inputs Total Fair Value as of Derivative Financial Instrument at September 30, 2020 $ $ (1,070,551) $ $ (1,070,551) Derivative Financial Instrument at December 31, 2020 $ — $ (972,552) $ — $ (972,552) The change in derivative financial instruments for the three months ended December 31, 2020 is as follows: September 30, 2020 balance $ (1,070,551) New derivative instruments issued — Derivative instruments extinguished 46,261 Change in fair value 51,738 December 31, 2020 balance $ (972,552) Non-recurring fair value assessments include stock-based compensation. The Company recorded stock-based compensation of nil and $367,841 for the three months ended December 31, 2020 and 2019, respectively.

COMMON STOCK_PAID IN CAPITAL

COMMON STOCK/PAID IN CAPITAL	3 Months Ended
	Dec. 31, 2020
Stockholders' Equity Note [Abstract]
COMMON STOCK/PAID IN CAPITAL	NOTE 8 – COMMON STOCK/PAID IN CAPITAL Three Months Ended December 31, 2020 As noted in Note 6, in October 2020 the Company issued approximately 17.5 million common shares with a fair value of approximately $0.1 million that were reflected on the September 30, 2020 balance sheet as additional paid in capital – shares to be issued Three Months Ended December 31, 2019 The Company issued 17,919,455 common shares with a fair value of $548,391 upon partial conversions of the notes and related accrued interest during the three months ended December 31, 2019. The common shares were valued based upon the closing common share prices on the respective conversion dates. The Company issued 38,423,221 common shares with a fair value of $1,536,929 to extinguish an accrued expense that totaled $1,613,775 during the three months ended December 31, 2019. The common shares were valued based upon the closing common share price on the date of settlement resulting in a gain on the extinguishment of the obligation of approximately $77,000.

STOCK-BASED COMPENSATION

STOCK-BASED COMPENSATION	3 Months Ended
	Dec. 31, 2020
Share-based Payment Arrangement [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 using the Black Scholes option pricing model, and is recognized over the vesting period. The Company recognized stock based compensation of nil and $367,841 for the three months ended December 31, 2020 and 2019, respectively. Of the $367,841 of stock based compensation recognized for the three months ended December 31, 2019, $186,675 was capitalized to unproved oil and gas properties, with the remainder recorded as general and administrative expenses for each respective period. During the three months ended December 31, 2019, upon the passing of a member of the management team, the Company modified a stock option grant for three million shares made to said management team member in June 2018 to vest such award immediately. The Company recorded approximately $8,000 in additional compensation expense related to this modification. The following table summarizes the Company’s stock option activity during the three months ended December 31, 2020: Number of Options Weighted Average Exercise Price Weighted Average Contractual Term (In years) Outstanding at September 30, 2020 104,500,000 $ 0.0605 Granted — — Exercised — — Cancelled — — Outstanding at December 31, 2020 104,500,000 $ 0.0605 4.3 Vested and expected to vest 104,500,000 $ 0.0605 4.3 Exercisable at December 31, 2020 104,500,000 $ 0.0565 4.3 As of December 31, 2020, there was no unrecognized stock-based compensation expense.

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES	3 Months Ended
	Dec. 31, 2020
Commitments and Contingencies Disclosure [Abstract]
COMMITMENTS AND CONTINGENCIES	NOTE 10 – COMMITMENTS AND CONTINGENCIES From time to time, the Company may become involved in litigation relating to claims arising out of its operations in the normal course of business. No legal proceedings, government actions, administrative actions, investigations or claims are currently pending against us or involve the Company. In July 2018, the Company entered into a 39 month lease for approximately 5,000 square feet of office space in 4 Houston Center in downtown Houston. Annual base rent is approximately $94,000 for the first 18 months, increasing to approximately $97,000 and $99,000, respectively, during the remaining term of the lease. The Company accounted for this lease as an operating lease in accordance with ASC 842, Leases. At December 31, 2020, the right-of-use asset, net related to this lease is $41,441 and the operating lease liability is $67,271. All remaining payments totaling approximately $74,000 are payable within the current fiscal year. The Company reached an agreement in August 2018 for the settlement of approximately $1 million in debt owed to a third party. As required under the terms of the settlement, the Company made a payment of approximately $0.16 million in cash and 10 million shares of common stock at such time. The agreement also contained a provision such that upon the sale of the common stock by the holder, if the proceeds received were not sufficient to fully satisfy the original debt balance, additional payment by the Company will be made under a mutually agreed payment plan. If the stock is sold for a gain any surplus in excess of $1.3 million shall be a credit against future purchases. The agreement was determined to meet the definition of a derivative in accordance with ASC 815. At December 31, 2020, there is a derivative financial instrument liability recorded of approximately $0.8 million related to this agreement.

SUBSEQUENT EVENTS

SUBSEQUENT EVENTS	3 Months Ended
	Dec. 31, 2020
Subsequent Events [Abstract]
SUBSEQUENT EVENTS	NOTE 11 – SUBSEQUENT EVENTS The Company completed a review and analysis of all events that occurred after the condensed balance sheet date to determine if any such events must be reported and has determined that there are no other subsequent events to be disclosed.

SIGNIFICANT ACCOUNTING POLICI_2

SIGNIFICANT ACCOUNTING POLICIES (Policies)	3 Months Ended
	Dec. 31, 2020
Accounting Policies [Abstract]
Cash	Cash GulfSlope considers highly liquid investments with original maturities to the Company of three months or less to be cash equivalents. There were no cash equivalents at December 31, 2020 and September 30, 2020.
Liquidity/Going Concern	Liquidity / Going Concern The Company has incurred accumulated losses as of December 31, 2020 of $58.3 million, has negative working capital of $10.8 million and for the three months ended December 31, 2020 generated losses of $0.1 million. Further losses are anticipated in developing our business. As a result, there exists substantial doubt about our ability to continue as a going concern. As of December 31, 2020, we had $2.6 million of unrestricted cash on hand. The Company estimates that it will need to raise a minimum of $10.0 million to meet its obligations and planned expenditures. The $10.0 million is comprised primarily of capital project expenditures as well as general and administrative expenses. It does not include any amounts due under outstanding debt obligations, which amounted to $11.7 million of current principal and accrued interest as of December 31, 2020. The Company plans to finance operations and planned expenditures through the issuance of equity securities, debt financings and farm-out agreements, asset sales or mergers. The Company also plans to extend the agreements associated with all loans, the accrued interest payable on these loans, as well as the Company’s accrued liabilities. There are no assurances that financing will be available with acceptable terms, if at all, or that obligations can be extended. If the Company is not successful in obtaining financing or extending obligations, operations would need to be curtailed or ceased, or the Company would need to sell assets or consider alternative plans up to and including restructuring. The financial statements do not include any adjustments that might result from the outcome of this uncertainty.
Accounts Receivable	Accounts Receivable The Company records an accounts receivable for operations expense reimbursements due from joint interest partners and also from normal operations. The Company estimates allowances for doubtful accounts based on the aged receivable balances and historical losses. If the Company determines any account to be uncollectible based on significant delinquency or other factors, the receivable and the underlying asset are assessed for recovery. As of December 31, 2020 and September 30, 2020, there was no allowance for doubtful accounts receivable. Gross accounts receivable was nil and approximately $0.4 million at December 31, 2020 and September 30, 2020, respectively.
Full Cost Method	Full Cost Method The Company uses the full cost method of accounting for its oil and gas exploration and development activities. Under the full cost method of accounting, all costs associated with successful and unsuccessful exploration and development activities are capitalized on a country-by-country basis into a single cost center (“full cost pool“). Such costs include property acquisition costs, geological and geophysical (“G&G“) costs, carrying charges on non-producing properties, costs of drilling both productive and non-productive wells. Overhead costs, which includes employee compensation and benefits including stock-based compensation, incurred that are directly related to acquisition, exploration and development activities are capitalized. Interest expense is capitalized related to unevaluated properties and wells in process during the period in which the Company is incurring costs and expending resources to get the properties ready for their intended purpose. For significant investments in unproved properties and major development projects that are not being currently depreciated, depleted, or amortized and on which exploration or development activities are in progress, interest costs are capitalized. 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. Proved properties are amortized on a country-by-country basis using the units of production method (“UOP“), whereby capitalized costs are amortized over total proved reserves. The amortization base in the UOP calculation includes the sum of proved property, net of accumulated depreciation, depletion and amortization (“DD&A“), estimated future development costs (future costs to access and develop proved reserves), and asset retirement costs, less related salvage value. The costs of unproved properties and related capitalized costs (such as G&G costs) are withheld from the amortization calculation until such time as they are either developed or abandoned. Unproved properties and properties under development are reviewed for impairment at least quarterly and are determined through an evaluation that considers, among other factors, seismic data, requirements to relinquish acreage, drilling results, remaining time in the commitment period, remaining capital plan, and political, economic, and market conditions. In countries where proved reserves exist, exploratory drilling costs associated with dry holes are transferred to proved properties immediately upon determination that a well is dry and amortized accordingly. In countries where a reserve base has not yet been established, impairments are charged to earnings. At December 31, 2020 the Company continues to pursue the development of its unproved properties and is actively finalizing the permitting of the Tau #2 well. As such, project economics continue to support cost incurred plus future development therefore no impairment is required at December 31, 2020. 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 cost center ceiling is defined as the sum of (a) estimated future net revenues, discounted at 10% per annum, from proved reserves, (b) the cost of properties not being amortized, if any, and (c) the lower of cost or market value of unproved properties included in the cost being amortized. 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. The Company capitalizes exploratory well costs into oil and gas properties until a determination is made that the well has either found proved reserves or is impaired. If proved reserves are found, the capitalized exploratory well costs are reclassified to proved properties. The well costs are charged to expense if the exploratory well is determined to be impaired. The Company is currently evaluating one well for proved reserves and capitalized exploratory well costs remain pending the outcome of exploration activities involving the drilling of the Tau No. 2 well (twin well). Accordingly, these costs are included as suspended well costs at December 31, 2020 and it is expected that a final analysis will be completed in the next twelve months at which time the costs will be transferred to the full cost pool upon final evaluation. As of December 31, 2020, the Company’s oil and gas properties consisted of unproved properties, wells in process and no proved reserves. Due to a combination of the COVID-19 pandemic and related pressures on the global supply-demand balance for crude oil and related products, commodity prices have significantly declined in recent months, and oil and gas operators have reduced exploration budgets and activity. The Company has evaluated the effect of these factors on its business and notes these factors have caused a delay in the plans for the Company’s 2021 drilling program. The Company continues to monitor the economic environment and evaluate the impact on the business.
Asset Retirement Obligations	Asset Retirement Obligations The Company’s asset retirement obligations will represent the present value of the estimated future costs associated with plugging and abandoning oil and natural gas wells, removing production equipment and facilities and restoring the seabed in accordance with the terms of oil and gas leases and applicable state and federal laws. Determining asset retirement obligations requires estimates of the costs of plugging and abandoning oil and natural gas wells, removing production equipment and facilities and restoring the sea bed as well as estimates of the economic lives of the oil and gas wells and future inflation rates. The resulting estimate of future cash outflows will be discounted using a credit-adjusted risk-free interest rate that corresponds with the timing of the cash outflows. Cost estimates will consider historical experience, third party estimates, the requirements of oil and natural gas leases and applicable local, state and federal laws, but do not consider estimated salvage values. Asset retirement obligations will be recognized when the wells drilled reach total depth or when the production equipment and facilities are installed or acquired with an associated increase in proved oil and gas property costs. Asset retirement obligations will be accreted each period through depreciation, depletion and amortization to their expected settlement values with any difference between the actual cost of settling the asset retirement obligations and recorded amount being recognized as an adjustment to proved oil and gas property costs. Cash paid to settle asset retirement obligations will be included in net cash provided by operating activities from continuing operations in the statements of cash flows. On a quarterly basis, when indicators suggest there have been material changes in the estimates underlying the obligation, the Company reassesses its asset retirement obligations to determine whether any revisions to the obligations are necessary. At least annually, the Company will assess all of its asset retirement obligations to determine whether any revisions to the obligations are necessary. Future revisions could occur due to changes in estimated costs or well economic lives, or if federal or state regulators enact new requirements regarding plugging and abandoning oil and natural gas wells. The Company drilled two well bores in 2018 and 2019 and these wellbores were both plugged with no further cost required and as such, the asset retirement obligation was completely extinguished.
Derivative Financial Instruments	Derivative Financial Instruments The accounting treatment of derivative financial instruments requires that the Company the Company
Basic and Dilutive Earnings Per Share	Basic and Dilutive Earnings Per Share Basic income (loss) per share (“EPS“) is computed by dividing net income (loss) (the numerator) by the weighted average number of common shares outstanding for the period (denominator). 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 convertible notes payable. The number of potential common shares outstanding relating to stock options and warrants, is computed using the treasury stock method. The number of potential common shares related to convertible notes payable is determined using the if-converted method. As the Company has incurred losses for the three months ended December 31, 2020 and 2019, the potentially dilutive shares are anti-dilutive and are thus not added into the loss per share calculations. As of December 31, 2020 and 2019, there were 256,011,343 and 437,801,388 potentially dilutive shares, respectively.
Use of Estimates	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.
Recent Accounting Pronouncements	Recent Accounting Pronouncements In February 2016, the FASB issued ASU No. 2016-02, “Leases,“ and in March 2019, the FASB issued ASU No. 2019-01, “Leases: Codification Improvements“, which updated the accounting guidance related to leases to increase transparency and comparability among organizations by recognizing lease assets and lease liabilities on the balance sheet and disclosing key information about leasing arrangements. They also clarify implementation issues. These updates are effective for public companies for annual periods beginning after December 15, 2018, including interim periods therein. Accordingly, the standard was adopted by the Company on October 1, 2019. The standard was applied utilizing a modified retrospective approach and is reflected in these financial statements. In June 2018, the FASB issued ASU 2018-07, Compensation-Stock Compensation (Topic 718) 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 statements.

NOTES PAYABLE (Tables)

NOTES PAYABLE (Tables)	3 Months Ended
	Dec. 31, 2020
Notes Payable [Abstract]
Schedule of notes payable	The Company’s notes payable consisted of the following as of September 30, 2020 and December 31, 2020. September 30, 2020 December 31, 2020 PPP Loan Payable $ 100,300 $ 0 Insurance Note Payable 20,527 0 Total $ 120,827 $ 0

CONVERTIBLE NOTES PAYABLE (Tabl

CONVERTIBLE NOTES PAYABLE (Tables)	3 Months Ended
	Dec. 31, 2020
Debt Disclosure [Abstract]
Schedule of convertible promissory notes	The Company’s convertible promissory notes consisted of the following as of September 30, 2020 and December 31, 2020. September 30, 2020 December 31, 2020 Notes Discount Notes, Net of Discount Notes Discount Notes Net Bridge Financing Notes $ 227,000 $ (11,209 ) $ 215,791 $ 227,000 $ (6,344) $ 220,656 June 2019 Convertible Debenture 300,000 (54,178 ) 245,822 0 0 0 Total $ 527,000 $ (65,387 ) $ 461,613 $ 227,000 $ (6,344) $ 220,656
Schedule of fair value embedded conversion feature	The fair value of the embedded conversion feature at September 30, 2020 was determined utilizing a Geometric Brownian Motion Stock Path Based Monte Carlo Simulation that utilized the following key assumptions: September 30, 2020 Stock Price $ 0.006 Fixed Exercise Price $ 0.05 Volatility 122 % Term (Years) 0.17 Risk Free Rate 0.10 %

FAIR VALUE MEASUREMENT (Tables)

FAIR VALUE MEASUREMENT (Tables)	3 Months Ended
	Dec. 31, 2020
Fair Value Disclosures [Abstract]
Schedule of fair value on recurring basis	The following table sets forth by level within the fair value hierarchy the Company’s derivative financial instruments that were accounted for at fair value on a recurring basis as of September 30, 2020 and December 31, 2020, respectively: Description Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs Significant Other Unobservable Inputs Total Fair Value as of Derivative Financial Instrument at September 30, 2020 $ $ (1,070,551) $ $ (1,070,551) Derivative Financial Instrument at December 31, 2020 $ — $ (972,552) $ — $ (972,552)
Schedule of change in derivative financial instruments	The change in derivative financial instruments for the three months ended December 31, 2020 is as follows: September 30, 2020 balance $ (1,070,551) New derivative instruments issued — Derivative instruments extinguished 46,261 Change in fair value 51,738 December 31, 2020 balance $ (972,552)

STOCK-BASED COMPENSATION (Table

STOCK-BASED COMPENSATION (Tables)	3 Months Ended
	Dec. 31, 2020
Share-based Payment Arrangement [Abstract]
Schedule for summary of stock options activity	The following table summarizes the Company’s stock option activity during the three months ended December 31, 2020: Number of Options Weighted Average Exercise Price Weighted Average Contractual Term (In years) Outstanding at September 30, 2020 104,500,000 $ 0.0605 Granted — — Exercised — — Cancelled — — Outstanding at December 31, 2020 104,500,000 $ 0.0605 4.3 Vested and expected to vest 104,500,000 $ 0.0605 4.3 Exercisable at December 31, 2020 104,500,000 $ 0.0565 4.3

ORGANIZATION AND NATURE OF BU_2

ORGANIZATION AND NATURE OF BUSINESS (Details Narrative)	Dec. 31, 2020Number
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Number of leased federal outer continental shelf blocks	3

SIGNIFICANT ACCOUNTING POLICI_3

SIGNIFICANT ACCOUNTING POLICIES (Details Narrative)	3 Months Ended		12 Months Ended
	Dec. 31, 2020USD ($)shares	Dec. 31, 2019USD ($)shares	Dec. 31, 2019USD ($)Number	Dec. 31, 2018Number	Sep. 30, 2020USD ($)	Sep. 30, 2019USD ($)
Accounting Policies [Abstract]
Net Loss	$ (358,489)	$ (153,143)
Accumulated losses	(58,340,161)				$ (57,981,672)
Gross accounts receivable	$ 0				400,000
Antidilutive securities excluded from EPS calculation | shares	256,011,343	437,801,388
Number of wellbores drilled | Number			2	2
Amount of working capital	$ (10,800,000)
Outstanding debt obligations	11,700,000
Unrestricted cash	2,558,646	$ 3,771,395	$ 3,771,395		$ 3,190,418	$ 1,138,919
Minimum capital which company estimated to raise to meet its obligations and planned expenditures	$ 10,000,000

OIL AND NATURAL GAS PROPERTIES

OIL AND NATURAL GAS PROPERTIES (Details Narrative)	Jul. 27, 2020USD ($)	Dec. 31, 2019shares	Nov. 30, 2019	May 31, 2019USD ($)ft	Jan. 31, 2019USD ($)	Dec. 31, 2020USD ($)aNumberft	Dec. 31, 2019USD ($)	Dec. 31, 2019Number	Dec. 31, 2018Number	Sep. 30, 2020USD ($)
Acres of three-dimensional (3-D) seismic data | a						2,200,000
Number of leased federal outer continental shelf blocks | Number						3
Number of wellbores drilled | Number								2	2
Oil and Natural Gas Properties [Member]
Amount of interest expense capitalized during period						$ 0	$ 400,000
Amount of general and administrative expenses capitalized during period						$ 300,000	$ 300,000
Accounts receivable										$ 3,600,000
Number of leased federal outer continental shelf blocks | Number						3
Oil and Natural Gas Properties [Member] | Underwriters [Member]
Percent of working interest	25.00%
Settlement receivable	$ 6,600,000
Gulf of Mexico Well Tau [Member]
Percent of working interest			5.00%	100.00%	100.00%
Estimated insurance claim					$ 10,800,000
Total depth of first drilled well | ft				15,254
Depth of second drilled well | ft						15,254
Depth of originally permitted second drilled well | ft						29,857
Received insurance claim				$ 1,200,000	2,500,000
Wells in process					900,000
Accrued payable					$ 1,600,000
Number of shares issued for settlement of accrued payable | shares		38,400,000
Total costs and expenses				$ 4,800,000
Number of wellbores drilled | Number						2

RELATED PARTY TRANSACTIONS (Det

RELATED PARTY TRANSACTIONS (Details Narrative) - USD ($)	Nov. 15, 2016	Dec. 31, 2020	Dec. 31, 2019	Sep. 30, 2017	Sep. 30, 2020
Debt face amount		$ 227,000			$ 527,000
John Seitz, CEO [Member] | Convertible Promissory Notes [Member]
Debt face amount				$ 8,675,500
Interest rate				5.00%
Debt conversion, price per share				$ 0.12
Amount owed to related party		8,675,500
Value of stock issued in conversion of notes payable				$ 5,300,000
Accrued interest payable		2,600,000
Related party [Member] | Promissory Notes [Member]
Proceeds from issuance of convertible notes and warrants	$ 50,000
Accounting Consulting Service [Member]
Accounting consulting services, included in related party payables		$ 19,000	$ 15,000

NOTES PAYABLE (Details)

NOTES PAYABLE (Details) - USD ($)	Dec. 31, 2020	Sep. 30, 2020
Total	$ 0	$ 120,827
PPP Loan Payable [Member]
Total	0	100,300
Insurance Note Payable [Member]
Total	$ 0	$ 20,527

NOTES PAYABLE (Details Narrativ

NOTES PAYABLE (Details Narrative) - USD ($)	1 Months Ended	3 Months Ended		15 Months Ended
	Nov. 30, 2019	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2021	Dec. 17, 2020	Sep. 30, 2020	Apr. 16, 2020
Principal amount		$ 227,000				$ 527,000
Gain on debt extinguishment		136,640	$ (879,522)
PPP Loan Payable [Member]
Principal amount							$ 100,300
Accrued interest					$ 600
Gain on debt extinguishment				$ 100,900
Insurance Note Payable [Member]
Principal amount	$ 220,629
Interest rate	5.60%
Insurance policy	$ 241,000
Note payable		$ 0				$ 21,000

CONVERTIBLE NOTES PAYABLE (Deta

CONVERTIBLE NOTES PAYABLE (Details) - USD ($)	Dec. 31, 2020	Sep. 30, 2020
Notes	$ 227,000	$ 527,000
Discount	(6,344)	(65,387)
Notes, Net of Discount	220,656	461,613
Bridge Financing Notes [Member]
Notes	227,000	227,000
Discount	(6,344)	(11,209)
Notes, Net of Discount	220,656	215,791
Convertible Debentures [Member]
Notes	0	300,000
Discount	0	(54,178)
Notes, Net of Discount	$ 0	$ 245,822

CONVERTIBLE NOTES PAYABLE (De_2

CONVERTIBLE NOTES PAYABLE (Details 1) - June 2019 Convertible Debenture [Member]	Sep. 30, 2020$ / shares
Stock Price [Member]
Debt, measurement input	0.006
Fixed Exercise Price [Member]
Debt, measurement input	0.05
Price Volatility [Member]
Debt, measurement input	1.22
Expected Term [Member]
Debt term	2 months 1 day
Risk Free Interest Rate [Member]
Debt, measurement input	0.10

CONVERTIBLE NOTES PAYABLE (De_3

CONVERTIBLE NOTES PAYABLE (Details Narrative)	Jul. 27, 2020USD ($)	Nov. 06, 2019USD ($)	Aug. 07, 2019USD ($)	Jun. 21, 2019USD ($)$ / sharesshares	Apr. 19, 2019USD ($)	Mar. 01, 2019USD ($)	Nov. 30, 2020USD ($)	Jun. 30, 2020USD ($)	Apr. 30, 2020USD ($)	Oct. 31, 2019USD ($)$ / shares	Dec. 31, 2020USD ($)$ / shares	Dec. 31, 2019USD ($)	Nov. 30, 2016USD ($)Number$ / shares	Sep. 30, 2020USD ($)shares	Sep. 30, 2020USD ($)
Gain (Loss) on Debt Extinguishment											$ 136,640	$ (879,522)
Principal amount											227,000			$ 527,000	$ 527,000
Amortization of debt discount											48,460	238,039
Term Loan Agreement [Member] | Delek GOM Investments, LLC [Member]
Maturity date						Sep. 4, 2019
Principal amount						$ 11,000,000
Proceeds from notes payable					$ 1,000,000	$ 10,000,000
Interest rate						5.00%
Default interest rate						7.00%
Delek GOM Investments, LLC [Member] | Post Drilling Agreement [Member]
Repayment of convertible notes														1,220,548
Maturity date										Oct. 22, 2020
Interest rate										12.00%
Debt amount converted										$ 1,000,000
Gain (Loss) on Debt Extinguishment										(676,785)
Beneficial conversion feature										479,498
Principal amount										$ 1,220,548
Default interest rate										15.00%
Legal fees										$ 200,000
Term Loan Payoff										$ 1,220,548
Conversion price (in dollars per share) | $ / shares										$ 0.05
Conversion rate										60.00%
Accrued interest payable														$ 129,211	129,211
Common Stock issued in settlement of debt (in shares) | shares														17,500,000
Bridge Financing Notes [Member]
Proceeds from issuance of convertible notes													$ 837,000
Number of convertible promissory notes issued | Number													11
Maturity term													1 year
Maturity date									Apr. 30, 2021
Interest rate													8.00%
Qualified equity financing amount													$ 3,000,000
Remaining debt unamortized discount											6,000			$ 11,000	11,000
Additional debt discount									$ 19,300
Principal amount											277,000			277,000	277,000
Amortization of debt discount											$ 5,000	$ 43,000
Conversion price (in dollars per share) | $ / shares													$ 0.025
Bridge Financing Notes [Member] | Related Parties [Member]
Proceeds from issuance of convertible notes													$ 222,000
Convertible Debentures [Member] | Securities Purchase Agreement [Member]
Repayment of convertible notes							$ 300,000
Maturity date	Nov. 30, 2020
Interest rate				8.00%
Additional debt discount								$ 50,000
Outstanding debt amount	$ 1,900,000													$ 300,000	300,000
Maximum amount agreed to convert	300,000
Principal amount				$ 3,000,000
Percentage of variable conversion price				80.00%
Percentage of variable conversion price in default				60.00%
Conversion price (in dollars per share) | $ / shares				$ 0.05
Offering costs				$ 398,000
Convertible Debentures [Member] | Securities Purchase Agreement [Member] | Date of Agreement [Member]
Debt payments due	50,000
Convertible Debentures [Member] | Securities Purchase Agreement [Member] | August 21, 2020 [Member]
Debt payments due	700,000
Convertible Debentures [Member] | Securities Purchase Agreement [Member] | September 30, 2020 [Member]
Debt payments due	$ 750,000
Convertible Debentures [Member] | Securities Purchase Agreement [Member] | Warrants [Member]
Number of warrants issued | shares				50,000,000
Warrant exercise price (in dollars per share) | $ / shares				$ 0.04							$ 0.02
Convertible Debentures [Member] | Securities Purchase Agreement [Member] | Tranche One [Member]
Proceeds from issuance of convertible notes				$ 2,100,000
Maturity date								Aug. 21, 2020
Accrued interest amount converted															1,200,000
Cumulative accrued interest															$ 139,000
Convertible Debentures [Member] | Securities Purchase Agreement [Member] | Tranche Two [Member]
Proceeds from issuance of convertible notes			$ 400,000
Maturity date								Aug. 21, 2020
Convertible Debentures [Member] | Securities Purchase Agreement [Member] | Tranche Three [Member]
Proceeds from issuance of convertible notes		$ 500,000

FAIR VALUE MEASUREMENT (Details

FAIR VALUE MEASUREMENT (Details) - Recurring [Member] - USD ($)	Dec. 31, 2020	Sep. 30, 2020
Derivative Financial Instrument	$ (972,552)	$ (1,070,551)
Significant Other Observable Inputs (Level 2) [Member]
Derivative Financial Instrument	$ (972,552)	$ (1,070,551)

FAIR VALUE MEASUREMENT (Detai_2

FAIR VALUE MEASUREMENT (Details 1) - USD ($)	3 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
Change in fair value	$ 51,738	$ 1,224,527
Recurring [Member]
Derivative Financial Instrument, beginning	(1,070,551)
Derivative instruments extinguished	46,261
Change in fair value	51,738
Derivative Financial Instrument, ending	$ (972,552)

FAIR VALUE MEASUREMENT (Detai_3

FAIR VALUE MEASUREMENT (Details Narrative)	3 Months Ended
	Dec. 31, 2019USD ($)
Fair Value Disclosures [Abstract]
Stock-based compensation	$ 181,166

COMMON STOCK_PAID IN CAPITAL (D

COMMON STOCK/PAID IN CAPITAL (Details Narrative) - USD ($)	1 Months Ended	3 Months Ended
	Oct. 31, 2020	Dec. 31, 2020	Dec. 31, 2019	Sep. 30, 2020
Additional Paid-in Capital - Shares to Be Issued				$ 105,000
Common stock issued for conversion of convertible note payable and accrued interest			$ 548,391
Stock Issued to extinguish liability			1,536,929
Gain (loss) on extinguishment of debt		$ 136,640	$ (879,522)
Common Stock [Member]
Common Stock issued in settlement of debt (in shares)	17,500,000	17,500,000
Common stock issued for conversion of convertible note payable and accrued interest (in shares)			17,919,455
Common stock issued for conversion of convertible note payable and accrued interest			$ 17,920
Stock Issued to extinguish liability (in shares)			38,423,221
Stock Issued to extinguish liability			$ 38,423
Debt amount extinguished			1,613,775
Gain (loss) on extinguishment of debt			$ 77,000

STOCK-BASED COMPENSATION (Detai

STOCK-BASED COMPENSATION (Details)	3 Months Ended
	Dec. 31, 2020$ / sharesshares
Number of Options
Outstanding at beginning of period | shares	104,500,000
Outstanding at end of period | shares	104,500,000
Vested and expected to vest | shares	104,500,000
Exercisable at end of period | shares	104,500,000
Weighted Average Exercise Price
Outstanding at beginning of period | $ / shares	$ 0.0605
Outstanding at end of period | $ / shares	0.0605
Vested and expected to vest | $ / shares	0.0605
Exercisable at end of period | $ / shares	$ 0.0565
Weighted Average Remaining Contractual Term
Outstanding at end of period	4 years 3 months 18 days
Vested and expected to vest	4 years 3 months 18 days
Exercisable at end of period	4 years 3 months 18 days

STOCK-BASED COMPENSATION (Det_2

STOCK-BASED COMPENSATION (Details Narrative) - USD ($)	3 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
Share-based Payment Arrangement [Abstract]
Stock-based compensation	$ 0	$ 367,841
Stock-based compensation expense capitalized to unproved properties	186,675
Additional compensation expense	$ 8,000

COMMITMENTS AND CONTINGENCIES (

COMMITMENTS AND CONTINGENCIES (Details Narrative)	1 Months Ended
	Aug. 31, 2018USD ($)shares	Jul. 31, 2018USD ($)ft²	Dec. 31, 2020USD ($)	Sep. 30, 2020USD ($)
Lease term		39 months
Office space | ft²		5,000
Annual base rent for the first 18 months		$ 94,000
Annual base rent - year two			$ 97,000
Annual base rent - year three			99,000
Right-of-use asset			41,441	$ 54,768
Operating lease liability			67,271	62,074
Remaining payment			74,000
Principal amount			227,000	$ 527,000
Fair value liability			$ 800,000
Vendor [Member]
Principal amount	$ 1,000,000
Repayment of debt	$ 160,000
Common Stock issued in settlement of debt (in shares) | shares	10,000,000
Vendor [Member] | Minimum [Member]
Gain on sale of stock by vendor in excess	$ 1,300,000