Document_and_Entity_Informatio
Document and Entity Information | 3 Months Ended |
Dec. 31, 2013 | |
Document and Entity Information [Abstract] | ' |
Document Type | 'S-1/A |
Amendment Flag | 'true |
Amendment Description | 'Amendment No. 1 to Form S-1 Registration Statement Filed on March 29, 2014 with the Securities and Exchange Commission |
Document Period End Date | 31-Dec-13 |
Entity Registrant Name | 'GULFSLOPE ENERGY, INC. |
Entity Central Index Key | '0001341726 |
Current Fiscal Year End Date | '--09-30 |
Entity Filer Category | 'Smaller Reporting Company |
BALANCE_SHEETS
BALANCE SHEETS (USD $) | Dec. 31, 2013 | Sep. 30, 2013 | Sep. 30, 2012 |
Current Assets | ' | ' | ' |
Cash | $3,344,071 | $310,199 | $423,009 |
Restricted Cash | 2,500,506 | 2,500,317 | ' |
Prepaid Expenses | 348,711 | 5,514 | 329,373 |
Total Current Assets | 6,193,288 | 2,816,030 | 752,382 |
Property, Plant, and Equipment (net) | 78,434 | 70,188 | ' |
Other Non-Current Assets | 18,760 | 18,760 | ' |
Total Assets | 6,290,482 | 2,904,978 | 752,382 |
Current Liabilities | ' | ' | ' |
Accounts Payable | 274,379 | 156,439 | 31,731 |
Related Party Payable | 366,480 | 490,101 | 31,183 |
Accrued Interest | 162,042 | 94,986 | ' |
Accrued Expenses and Other Payables | 3,003,065 | 3,093,065 | ' |
Note Payable | 94,273 | ' | ' |
Loans from Related Parties | 5,300,000 | 5,500,000 | ' |
Total Current Liabilities | 9,200,239 | 9,334,591 | 62,914 |
Accrued Expenses and Other Payables, Net of Current Portion | 3,003,065 | 3,003,065 | ' |
Total Liabilities | 12,203,304 | 12,337,656 | 62,914 |
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 750,000,000 shares; issued and outstanding 577,210,000 and 235,150,000, as of September 30, 2013 and 2012, respectively | 624,223 | 577,210 | 235,150 |
Additional Paid-in Capital | 14,761,617 | 9,139,917 | 2,151,610 |
Deficit Accumulated during the development stage | -21,298,662 | -19,149,805 | -1,697,292 |
Total Stockholders' Equity (Deficit) | -5,912,822 | -9,432,678 | 689,468 |
Total Liabilities and Stockholders' Equity (Deficit) | $6,290,482 | $2,904,978 | $752,382 |
BALANCE_SHEETS_Parenthetical
BALANCE SHEETS (Parenthetical) (USD $) | Dec. 31, 2013 | Sep. 30, 2013 | Sep. 30, 2012 |
BALANCE SHEETS [Abstract] | ' | ' | ' |
Preferred Stock, par value per share | $0.00 | $0.00 | $0.00 |
Preferred Stock, shares authorized | 50,000,000 | 50,000,000 | 50,000,000 |
Preferred Stock, shares issued | 0 | 0 | 0 |
Preferred Stock, shares outstanding | 0 | 0 | 0 |
Common Stock, par value per share | $0.00 | $0.00 | $0.00 |
Common Stock, shares authorized | 750,000,000 | 750,000,000 | 750,000,000 |
Common Stock, shares issued | 624,223,676 | 577,210,000 | 235,150,000 |
Common Stock, shares outstanding | 624,223,676 | 577,210,000 | 235,150,000 |
STATEMENTS_OF_OPERATIONS
STATEMENTS OF OPERATIONS (USD $) | 3 Months Ended | 12 Months Ended | 118 Months Ended | 121 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Dec. 31, 2013 | |
STATEMENTS OF OPERATIONS [Abstract] | ' | ' | ' | ' | ' | ' |
Revenues | ' | ' | ' | ' | $9,694 | $9,694 |
Revenues from Related Parties | ' | ' | ' | ' | 2,346 | 2,346 |
Total Revenue | ' | ' | ' | ' | 12,040 | 12,040 |
Cost of Sales | ' | ' | ' | ' | 8,394 | 8,394 |
Cost of Sales to Related Parties | ' | ' | ' | ' | 2,101 | 2,101 |
Total Cost of Sales | ' | ' | ' | ' | 10,495 | 10,495 |
Gross Profit | ' | ' | ' | ' | 1,545 | 1,545 |
Impairment of Oil and Natural Gas Properties | 1,676,548 | ' | 15,120,574 | ' | 15,120,574 | 16,797,122 |
General & Administrative Expenses | 404,253 | 396,376 | 2,237,269 | 1,537,215 | 3,919,792 | 4,324,045 |
Net Loss from Operations | -2,080,801 | -396,376 | -17,357,843 | -1,537,215 | -19,038,821 | -21,119,622 |
Other Income/(Expenses): | ' | ' | ' | ' | ' | ' |
Interest income | 1,300 | ' | 316 | ' | 316 | 1,616 |
Interest expense | -69,356 | ' | -94,986 | -60 | -110,500 | -179,856 |
Net Loss Before Income Taxes | -2,148,857 | -396,376 | -17,452,513 | -1,537,275 | -19,149,005 | -21,297,862 |
Provision for Income Taxes | ' | ' | ' | ' | -800 | -800 |
Net Loss | ($2,148,857) | ($396,376) | ($17,452,513) | ($1,537,275) | ($19,149,805) | ($21,298,662) |
Loss Per Share - Basic and Diluted | $0 | $0 | ($0.04) | ($0.02) | ' | ' |
Weighted Average Shares Outstanding - Basic and Diluted | 609,025,787 | 235,150,000 | 394,016,867 | 83,487,568 | ' | ' |
STATEMENTS_OF_STOCKHOLDERS_EQU
STATEMENTS OF STOCKHOLDERS' EQUITY / (DEFICIT) (USD $) | Total | Common Stock [Member] | Additional Paid-in Capital [Member] | Common Shares To Be Issued [Member] | Additional Paid-in Capital Common Shares To Be Issued [Member] | Subscription Receivable [Member] | Accumulated Deficit [Member] |
Balance at Dec. 11, 2003 | ' | ' | ' | ' | ' | ' | ' |
Balance, shares at Dec. 11, 2003 | ' | ' | ' | ' | ' | ' | ' |
Common shares issued for cash | 34,737 | 1,200 | 33,537 | ' | ' | ' | ' |
Common shares issued for cash, shares | ' | 1,200,000 | ' | ' | ' | ' | ' |
Property contributed by shareholder | 1,500 | ' | 1,500 | ' | ' | ' | ' |
Net loss | -3,400 | ' | ' | ' | ' | ' | -3,400 |
Balance at Sep. 30, 2004 | 32,837 | 1,200 | 35,037 | ' | ' | ' | -3,400 |
Balance, shares at Sep. 30, 2004 | ' | 1,200,000 | ' | ' | ' | ' | ' |
Net loss | -11,324 | ' | ' | ' | ' | ' | -11,324 |
Balance at Sep. 30, 2005 | 21,513 | 1,200 | 35,037 | ' | ' | ' | -14,724 |
Balance, shares at Sep. 30, 2005 | ' | 1,200,000 | ' | ' | ' | ' | ' |
Net loss | -21,682 | ' | ' | ' | ' | ' | -21,682 |
Balance at Sep. 30, 2006 | -169 | 1,200 | 35,037 | ' | ' | ' | -36,406 |
Balance, shares at Sep. 30, 2006 | ' | 1,200,000 | ' | ' | ' | ' | ' |
Net loss | -18,256 | ' | ' | ' | ' | ' | -18,256 |
Balance at Sep. 30, 2007 | -18,425 | 1,200 | 35,037 | ' | ' | ' | -54,662 |
Balance, shares at Sep. 30, 2007 | ' | 1,200,000 | ' | ' | ' | ' | ' |
Net loss | -21,674 | ' | ' | ' | ' | ' | -21,674 |
Balance at Sep. 30, 2008 | -40,099 | 1,200 | 35,037 | ' | ' | ' | -76,336 |
Balance, shares at Sep. 30, 2008 | ' | 1,200,000 | ' | ' | ' | ' | ' |
Net loss | -11,289 | ' | ' | ' | ' | ' | -11,289 |
Balance at Sep. 30, 2009 | -51,388 | 1,200 | 35,037 | ' | ' | ' | -87,625 |
Balance, shares at Sep. 30, 2009 | ' | 1,200,000 | ' | ' | ' | ' | ' |
Net loss | -11,562 | ' | ' | ' | ' | ' | -11,562 |
Balance at Sep. 30, 2010 | -62,950 | 1,200 | 35,037 | ' | ' | ' | -99,187 |
Balance, shares at Sep. 30, 2010 | ' | 1,200,000 | ' | ' | ' | ' | ' |
Common shares issued for cash | 88,000 | 8,800 | 79,200 | ' | ' | ' | ' |
Common shares issued for cash, shares | ' | 8,800,000 | ' | ' | ' | ' | ' |
Related party debt forgiveness | 11,023 | ' | 11,023 | ' | ' | ' | ' |
Additional paid in capital - shares to be issued | 110,000 | ' | ' | 11,000,000 | 110,000 | ' | ' |
Common stock to be issued | ' | ' | ' | 650,000 | 6,500 | -6,500 | ' |
Net loss | -60,830 | ' | ' | ' | ' | ' | -60,830 |
Balance at Sep. 30, 2011 | 85,243 | 10,000 | 125,260 | 11,650,000 | 116,500 | -6,500 | -160,017 |
Balance, shares at Sep. 30, 2011 | ' | 10,000,000 | ' | ' | ' | ' | ' |
Shares issued from common shares to be issued | 6,500 | 11,650 | 104,850 | -11,650,000 | -116,500 | 6,500 | ' |
Shares issued from common share to be issued, shares | ' | 11,650,000 | ' | ' | ' | ' | ' |
Common shares issued for cash | 785,000 | 78,500 | 706,500 | ' | ' | ' | ' |
Common shares issued for cash, shares | ' | 78,500,000 | ' | ' | ' | ' | ' |
Shares issued for services | 1,350,000 | 135,000 | 1,215,000 | ' | ' | ' | ' |
Shares issued for services, shares | ' | 135,000,000 | ' | ' | ' | ' | ' |
Net loss | -1,537,275 | ' | ' | ' | ' | ' | -1,537,275 |
Balance at Sep. 30, 2012 | 689,468 | 235,150 | 2,151,610 | ' | ' | ' | -1,697,292 |
Balance, shares at Sep. 30, 2012 | 235,150,000 | 235,150,000 | ' | ' | ' | ' | ' |
Shares issued from common shares to be issued | 2,435,167 | 243,517 | 2,191,650 | ' | ' | ' | ' |
Shares issued from common share to be issued, shares | ' | 243,516,666 | ' | ' | ' | ' | ' |
Common shares issued for cash | 3,535,200 | 72,543 | 3,462,657 | ' | ' | ' | ' |
Common shares issued for cash, shares | ' | 72,543,334 | ' | ' | ' | ' | ' |
Shares issued to settle debt with related party | 1,200,000 | 10,000 | 1,190,000 | ' | ' | ' | ' |
Shares issued to settle debt with related party, shares | ' | 10,000,000 | ' | ' | ' | ' | ' |
Shares issued for services | 160,000 | 16,000 | 144,000 | ' | ' | ' | ' |
Shares issued for services, shares | ' | 16,000,000 | ' | ' | ' | ' | ' |
Net loss | -17,452,513 | ' | ' | ' | ' | ' | -17,452,513 |
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 | 577,210,000 | ' | ' | ' | ' | ' |
STATEMENTS_OF_CASH_FLOWS
STATEMENTS OF CASH FLOWS (USD $) | 3 Months Ended | 12 Months Ended | 118 Months Ended | 121 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Dec. 31, 2013 | |
OPERATING ACTIVITIES | ' | ' | ' | ' | ' | ' |
Net Loss | ($2,148,857) | ($396,376) | ($17,452,513) | ($1,537,275) | ($19,149,805) | ($21,298,662) |
Adjustments to reconcile net loss to net cash From Operating Activities: | ' | ' | ' | ' | ' | ' |
Impairment of Oil and Natural Gas Properties | 1,676,548 | ' | 15,120,574 | ' | 15,120,574 | 16,797,122 |
Depreciation | 6,558 | ' | 7,217 | ' | 16,123 | 22,681 |
Stock issued for services | 221,472 | ' | 160,000 | 1,350,000 | 1,510,000 | 1,731,472 |
Changes in operating assets and liabilities: | ' | ' | ' | ' | ' | ' |
(Increase)/Decrease in Prepaid Expenses | -228,449 | 128,818 | 323,859 | -329,373 | -5,514 | -233,963 |
(Increase) in Other Assets | ' | ' | -18,760 | ' | -18,760 | -18,760 |
Increase/(Decrease) in Accounts Payable | 19,130 | 2,976 | 15,250 | 31,189 | 46,981 | 66,111 |
Increase/(Decrease) in Related Party Payable | -123,621 | -31,183 | 322,418 | 29,563 | 364,624 | 241,003 |
Increase/(Decrease) in Accrued Interest | 67,464 | ' | 94,986 | ' | 94,986 | 162,450 |
Increase/(Decrease) in Accrued Liabilities | 22,500 | ' | 45,000 | -100 | 45,000 | 67,500 |
Net Cash From Operating Activities | -487,255 | -295,765 | -1,381,969 | -455,996 | -1,975,791 | -2,463,046 |
INVESTING ACTIVITIES | ' | ' | ' | ' | ' | ' |
Exploration Costs | -1,577,738 | ' | -6,388,319 | ' | -6,388,319 | -7,966,057 |
Purchase of equipment | -14,804 | ' | -77,405 | ' | -84,811 | -99,615 |
Net Cash From Investing Activities | -1,592,542 | 0 | -6,465,724 | ' | -6,473,130 | -8,065,672 |
FINANCING ACTIVITIES | ' | ' | ' | ' | ' | ' |
Restricted Cash | -189 | ' | -2,500,317 | ' | -2,500,317 | -2,500,506 |
Proceeds for stock issuance | 5,154,333 | ' | 3,535,200 | 791,500 | 4,559,437 | 9,713,770 |
Proceeds for loan from shareholders | ' | ' | 6,700,000 | ' | 6,741,769 | 6,741,769 |
Payments on Note Payable | -20,475 | ' | ' | ' | ' | -20,475 |
Payment on loans from shareholders | -20,000 | ' | ' | ' | -41,769 | -61,769 |
Net Cash From Financing Activities | 5,113,669 | ' | 7,734,883 | 791,500 | 8,759,120 | 13,872,789 |
Net Increase/(Decrease) in cash | 3,033,872 | -295,765 | -112,810 | 335,504 | 310,199 | 3,344,071 |
Beginning Cash Balance | 310,199 | 423,009 | 423,009 | ' | ' | ' |
Ending Cash Balance | 3,344,071 | 127,244 | 310,199 | 423,009 | 310,199 | 3,344,071 |
Supplemental Schedule of Cash Flow Activities | ' | ' | ' | ' | ' | ' |
Cash paid for income taxes | ' | ' | 125 | ' | 925 | 925 |
Cash paid for interest | 912 | ' | ' | 60 | 11,356 | 12,268 |
Related party debt forgiveness | ' | ' | ' | ' | 11,023 | 11,023 |
Property contributed by shareholder | ' | ' | ' | ' | 1,500 | 1,500 |
Stock issued for prepaid services | ' | ' | ' | 550,000 | 550,000 | 550,000 |
Shares issued upon conversion of note payable | ' | ' | 1,200,000 | ' | 1,200,000 | ' |
Purchase of Developmental Capital Expenditures Through Issuance of Common Stock | ' | ' | 2,435,167 | ' | 2,435,167 | ' |
Included in Accrued Expenses | ' | ' | 6,051,130 | ' | 6,051,130 | ' |
Included in Accounts Payable | ' | ' | 109,458 | ' | 109,458 | ' |
Noncash Or Part Noncash Acquisition Related Party Payables | ' | ' | 136,500 | ' | 136,500 | ' |
Stock Issued on Settlement of Related Party Note | 180,000 | ' | ' | ' | ' | 1,380,000 |
Prepaid Asset Financed by Note Payable | 114,748 | ' | ' | ' | ' | 114,748 |
Settlement of Accrued Expenses through Stock Issuance | $112,500 | ' | ' | ' | ' | $112,500 |
ORGANIZATION_AND_SUMMARY_OF_SI
ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 3 Months Ended | 12 Months Ended |
Dec. 31, 2013 | Sep. 30, 2013 | |
ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES [Abstract] | ' | ' |
ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ' | ' |
NOTE 1 - ORGANIZATION AND NATURE OF BUSINESS | NOTE 1 - ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
GulfSlope Energy, Inc. (the "Company," "GulfSlope," "our" and words of similar import), a Delaware corporation, is an independent energy company intent upon engaging in the acquisition, exploration, exploitation, development and production of crude oil and natural gas properties. To this end, the Company entered the exploration stage on March 22, 2013 when it executed a master license agreement with a geophysical company to license certain seismic data for the purposes of engaging in the exploration of oil and natural gas. | (a) Organization | |
NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES | GulfSlope Energy, Inc. (the "Company") was founded December 12, 2003 as Lostwood Professional Services, Inc. and was organized to engage in the business of producing and selling promotional merchandise. The Company was incorporated under the laws of the State of Utah. The Company is no longer actively involved in the promotional merchandise industry. The Company, now a Delaware corporation, is an independent energy company intent upon engaging in the acquisition, exploration, exploitation, development and production of crude oil and natural gas properties. To this end, the Company entered the exploration stage on March 22, 2013 when it executed a master license agreement with a seismic company to license certain seismic data for the purposes of engaging in the exploration of oil and natural gas. | |
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. | (b) Cash and Cash Equivalents | |
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 in this Form 10-Q 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, 2013, which were included in the Company's Annual Report on Form 10-K for the fiscal year ended September 30, 2013. | 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 checking accounts. These assets are generally available on a daily or weekly basis and are highly liquid in nature. | |
Cash and Cash Equivalents | (c) Restricted Cash | |
GulfSlope 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 checking and money market accounts. These assets are generally available on a daily or weekly basis and are highly liquid in nature. | 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. Refer to Note 8. Those funds have been classified as restricted cash. | |
Liquidity/Going Concern | (d) Full Cost Method | |
We have incurred accumulated losses for the period from inception to December 31, 2013 of $21,298,662. Further losses are anticipated in developing our business. These factors raise substantial doubt about the Company's ability to continue as a going concern. As a result, our auditors have expressed substantial doubt about our ability to continue as a going concern. As of December 31, 2013, we had $3,344,071 of unrestricted cash on hand excluding $2,500,506 of restricted cash in an escrow account earmarked for a future payment associated with the acquisition of seismic data. The Company estimates that it will need to raise a minimum of $15 million to fund operations through December 31, 2014, and likely significantly more capital to meet its obligations during the subsequent 12 months. The Company plans to finance the Company through best-efforts equity and/or debt financings. The financial statements do not include any adjustments that might result from the outcome of this uncertainty. | 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 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. | |
Full Cost Method | The costs of unproved properties and related capitalized costs (such as G&G 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. Further, capitalized G&G costs that are directly associated with unevaluated properties not yet owned by the Company are included in the depletion base. As of September 30, 2013, the Company had no proved reserves, nor any unevaluated properties. As a result, the geological and geophysical costs are included in the amortization base as incurred and, per Rule 4-10, are subject ceiling limitation test, resulting in immediate impairment. | |
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. | 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 ("DD&A") 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 costs of unproved properties and related capitalized costs (such as G&G 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. Further, capitalized G&G costs that are directly associated with unevaluated properties not yet owned by the Company are included in the depletion base. As of December 31, 2013, the Company had no proved reserves, nor any unevaluated properties. As a result, the geological and geophysical costs are included in the amortization base as incurred and, per Rule 4-10, are subject to the ceiling limitation test, resulting in immediate impairment. | (e) Capitalized Interest | |
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. | Interest is capitalized on the cost of unevaluated gas and oil properties that are excluded from amortization and actively being evaluated, if any. | |
Net Loss Per Share | (e) Property and Equipment | |
Basic earnings 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 restricted stock. The number of potential common shares outstanding relating to stock options, warrants, and restricted stock is computed using the treasury stock method. | 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. | |
As the Company has incurred losses for the three months ended December 31, 2013 and 2012, the potentially dilutive shares are anti-dilutive and are thus not added into the loss per share calculations. As of December 31, 2013 and 2012, there were 46,166,667 and 0 potentially dilutive shares. | 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. | |
Recent Accounting Pronouncements | (f) Income Taxes | |
The Company has reviewed all recently issued, but not yet adopted, accounting standards in order to determine their effects, if any, on its results of operations, financial position or cash flows. Based on that review, the Company believes that none of these pronouncements will have a significant effect on its financial statements. | 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. | |
(g) Net Loss Per Common Share | ||
Basic earnings 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 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, 2013 and 2012, the potentially dilutive shares are anti-dilutive and are thus not added into the loss per share calculations. As of September 30, 2013 and 2012, there were 45,833,333 and 0 potentially dilutive shares, respectively. | ||
(h) 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 $310,199 unrestricted cash as of September 30, 2013. The Company had $423,009 unrestricted cash as of September 30, 2012. | ||
(i) Use of Estimates in Preparation of Financial Statements | ||
The preparation of financial statements in conformity with U.S. generally accepted accounting principles 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. | ||
(j) Impact of New Accounting Standards | ||
The Company has reviewed all recently issued, but not yet adopted, accounting standards in order to determine their effects, if any, on its results of operation, financial position or cash flows. Based on that review, the Company believes that none of these pronouncements will have a significant effect on its financial statements. |
LIQUIDITYGOING_CONCERN
LIQUIDITY/GOING CONCERN | 3 Months Ended | 12 Months Ended |
Dec. 31, 2013 | Sep. 30, 2013 | |
LIQUIDITY/GOING CONCERN [Abstract] | ' | ' |
Liquidity/Going Concern | ' | ' |
Liquidity/Going Concern | NOTE 2 - LIQUIDITY/GOING CONCERN | |
We have incurred accumulated losses for the period from inception to December 31, 2013 of $21,298,662. Further losses are anticipated in developing our business. These factors raise substantial doubt about the Company's ability to continue as a going concern. As a result, our auditors have expressed substantial doubt about our ability to continue as a going concern. As of December 31, 2013, we had $3,344,071 of unrestricted cash on hand excluding $2,500,506 of restricted cash in an escrow account earmarked for a future payment associated with the acquisition of seismic data. The Company estimates that it will need to raise a minimum of $15 million to fund operations through December 31, 2014, and likely significantly more capital to meet its obligations during the subsequent 12 months. The Company plans to finance the Company through best-efforts equity and/or debt financings. The financial statements do not include any adjustments that might result from the outcome of this uncertainty. | The Company has incurred accumulated losses and negative cash flows from operations for the period from inception to September 30, 2013 of $19,149,805. Further losses are anticipated in developing its business. As a result, the Company's auditors have expressed substantial doubt about its ability to continue as a going concern. As of September 30, 2013, the Company had $310,199 of unrestricted cash on hand. The Company estimates that it will need to raise a minimum of $19.4 million to meet its obligations and planned expenditures during calendar year 2014. The Company plans to finance the Company through equity and/or debt financings. The financial statements do not include any adjustments that might result from the outcome of this uncertainty. |
EXPLORATION_COSTS
EXPLORATION COSTS | 3 Months Ended | 12 Months Ended |
Dec. 31, 2013 | Sep. 30, 2013 | |
EXPLORATION COSTS [Abstract] | ' | ' |
EXPLORATION COSTS | ' | ' |
NOTE 3 - EXPLORATION COSTS | NOTE 3 - EXPLORATION COSTS | |
On March 20, 2013, the Company entered into an assignment and assumption agreement (the "Assignment Agreement") with third parties pursuant to which the Company was assigned the exclusive right to license certain seismic data. On March 22, 2013, the Company executed a master license agreement with this seismic company. In consideration for the assignment and other transactions contemplated by the Assignment Agreement, the Company agreed to issue to the assignor parties an aggregate of 243,516,666 shares of the Company's common stock. The common stock was valued at $2,435,167 and the shares were subsequently issued in April 2013. These expenses were included in accrued expenses as of March 31, 2013. | ||
On March 20, 2013, the Company entered into an assignment and assumption agreement (the "Assignment Agreement") with third parties pursuant to which the Company was assigned the exclusive right to license certain seismic data. On March 22, 2013, the Company executed a master license agreement with this seismic company. In consideration for the assignment and other transactions contemplated by the Assignment Agreement, the Company agreed to issue to the assignor parties an aggregate of 243,516,666 shares of the Company's common stock. The common stock was valued at $2,435,167 and the shares were subsequently issued in April 2013. These expenses were included in accrued expenses as of March 31, 2013. | ||
In March 2013, the Company licensed certain seismic data from a seismic company. The seismic data license fee totaled $6,135,500. | ||
In March 2013, the Company licensed certain seismic data from this geophysical company. The seismic data license fee totaled $6,135,500. | ||
In March 2013, the Company licensed certain seismic data from a different seismic company pursuant to another ordinary business course agreement. The seismic data purchase totaled $4,012,260. | ||
In March 2013, the Company licensed certain seismic data from a second seismic company pursuant to another ordinary business course agreement. The seismic data purchase totaled $4,012,260. | ||
During May 2013, the Company incurred $90,000 in costs to participate in a geophysical research program with a public institution. | ||
During May 2013, the Company incurred $90,000 in costs to participate in a geophysical research program with a public institution. | ||
During May through September 2013, the Company incurred $1,674,376 in costs associated with technological infrastructure and third party hosting services to maintain and interpret the aforementioned seismic data. | ||
During May through September 2013, the Company incurred $1,674,376 in costs associated with technological infrastructure and third party hosting services to maintain the aforementioned seismic data. | ||
During May through September 2013, the Company incurred $773,271 in consulting fees and salaries and benefits associated with full-time employed geoscientists analyzing the aforementioned seismic data. | ||
During May through September 2013, the Company incurred $773,271 in consulting fees, salaries and benefits associated with full-time employed geoscientists analyzing the aforementioned seismic data. | ||
The Company properly capitalized these G&G costs and included them in the depletion base because the Company did not yet own the specific unevaluated properties these costs related to. Therefore, these G&G costs were subject to the ceiling limitation test, resulting in immediate impairment for accounting purposes. | ||
During October through December 2013, the Company incurred $808,613 in consulting fees, salaries and benefits associated with consultants and full-time geoscientists, $787,935 associated with technological infrastructure and third party hosting services and seismic data, and $80,000 for an independent reserve study. | ||
The Company properly capitalized these G&G costs and included them in the depletion base because the Company did not yet own the specific unevaluated properties these costs related to. Therefore, these G&G costs were subject to the ceiling limitation test, resulting in immediate impairment for accounting purposes. | ||
PROPERTY_AND_EQUIPMENT
PROPERTY AND EQUIPMENT | 12 Months Ended | ||||||||
Sep. 30, 2013 | |||||||||
PROPERTY AND EQUIPMENT [Abstract] | ' | ||||||||
PROPERTY AND EQUIPMENT | ' | ||||||||
NOTE 4 - PROPERTY AND EQUIPMENT | |||||||||
Property and equipment consist of the following as of September 30, 2013 and September 30, 2012: | |||||||||
September 30, | |||||||||
2013 | 2012 | ||||||||
Office equipment and computers | $ | 57,071 | $ | - | |||||
Furniture and fixtures | 16,280 | - | |||||||
Leasehold improvements | 4,054 | - | |||||||
Total | 77,405 | - | |||||||
Less: accumulated depreciation | (7,217 | ) | - | ||||||
Net property and equipment | $ | 70,188 | $ | - | |||||
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 years | ||||||||
Furniture and fixtures | 5 years | ||||||||
Leasehold improvements | 5 years | ||||||||
Depreciation expense was $7,217 and $0 for the years ended September 30, 2013 and 2012, respectively. |
INCOME_TAXES
INCOME TAXES | 12 Months Ended | ||||||||
Sep. 30, 2013 | |||||||||
INCOME TAXES [Abstract] | ' | ||||||||
INCOME TAXES | ' | ||||||||
NOTE 5 - INCOME TAXES | |||||||||
The provision for income taxes consists of the following as of September 30, 2013 and 2012: | |||||||||
September 30, | |||||||||
2013 | 2012 | ||||||||
FEDERAL | |||||||||
Current | $ | - | $ | - | |||||
Deferred | - | - | |||||||
STATE | |||||||||
Current | - | - | |||||||
Deferred | - | - | |||||||
TOTAL PROVISION | $ | - | $ | - | |||||
Deferred income tax assets and liabilities at September 30, 2013 and 2012 consist of the following temporary differences: | |||||||||
September 30, | |||||||||
2013 | 2012 | ||||||||
DEFERRED TAX ASSETS | |||||||||
Current | $ | - | $ | - | |||||
Noncurrent | |||||||||
Net operating losses | 1,166,327 | 336,029 | |||||||
Exploration costs | 1,701,065 | - | |||||||
Differences in book/tax depreciation | 0 | 0 | |||||||
Total noncurrent | $ | 2,867,392 | $ | 336,029 | |||||
Valuation Allowance | (2,867,392 | ) | (336,029 | ) | |||||
NET DEFERRED TAX ASSET | - | - | |||||||
DEFERRED TAX LIABILITIES | - | - | |||||||
NET DEFERRED TAXES | $ | - | $ | - | |||||
The Company's valuation allowance has increased $2,531,363 during the year ended September 30, 2013. | |||||||||
The following is a summary of federal net operating loss carry forwards and their expiration dates: | |||||||||
Amount | Expiration | ||||||||
$ | 3,203 | 9/30/24 | |||||||
7,695 | 9/30/25 | ||||||||
18,447 | 9/30/26 | ||||||||
16,876 | 9/30/27 | ||||||||
17,986 | 9/30/28 | ||||||||
8,596 | 9/30/29 | ||||||||
7, 713 | 9/30/30 | ||||||||
64,097 | 9/30/31 | ||||||||
513,914 | 9/30/32 | ||||||||
7,116,987 | 9/30/33 | ||||||||
$ | 7,775,514 | Total | |||||||
A reconciliation between income taxes at statutory tax rates (15%) and (20%) as of September 30, 2013 and 2012, respectively, and the actual income tax provision for continuing operations is as follows: | |||||||||
September 30, | |||||||||
2013 | 2012 | ||||||||
Expected provision (based on statutory rate) | $ | (2,617,887 | ) | $ | (307,455 | ) | |||
Effect of: | |||||||||
Increase in valuation allowance | 2,531,363 | 307,152 | |||||||
State minimum tax, net of federal benefit | 0 | 0 | |||||||
Non-deductible expense | 2,541 | 303 | |||||||
Temporary differences due to depreciation | 0 | 0 | |||||||
Rate Change | 83,973 | 0 | |||||||
Total actual provision | $ | 0 | $ | 0 | |||||
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 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 within general and administrative expenses for penalties and interest expense. For the years ended September 30, 2013 and 2012, the Company did not recognize any interest or penalties, nor did we have any interest or penalties accrued as of September 30, 2013 and 2012 relating to unrecognized benefits. | |||||||||
The tax years ended September 30, 2010 through 2013 are open for examination for federal income tax purposes and by other major taxing jurisdictions to which we are subject. |
STOCKBASED_COMPENSATION
STOCK-BASED COMPENSATION | 3 Months Ended | ||
Dec. 31, 2013 | |||
STOCK-BASED COMPENSATION [Abstract] | ' | ||
STOCK-BASED COMPENSATION | ' | ||
NOTE 6- 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 $25,632 and $0 in stock-based compensation expense during the three months ended December 31, 2013 and 2012, respectively. These expenses were recorded as exploration costs and as general and administrative expenses in the condensed consolidated statements of operations. | |||
The following table summarizes the Company's stock option activity during the three-month period ended December 31, 2013. | |||
Number of Options | Weighted Average Exercise Price | ||
Outstanding at beginning of period | - | - | |
Granted | 2,000,000 | $0.12 | |
Exercised | - | - | |
Cancelled | - | - | |
Outstanding at end of period | 2,000,000 | $0.12 | |
Exercisable at end of period | - | - | |
The Black-Scholes option-pricing model is used to estimate the fair value of options granted. The fair values of stock options granted for the three months ended December 31, 2013 were based on the following assumptions at the date of grant as follows: | |||
Expected dividend yield | -% | ||
Expected stock price volatility | 91.42% | ||
Risk-free interest rate | 1.53% | ||
Expected life of options | 5.75 years | ||
Grant date fair value | 0.09 | ||
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 December 31, 2013 there was $151,666 of unrecognized stock-based compensation cost, related to the stock option grant that is expected to be expensed over a period of two years. There was $0 of intrinsic value for options outstanding as of December 31, 2013. |
RELATED_PARTY_TRANSACTIONS
RELATED PARTY TRANSACTIONS | 3 Months Ended | 12 Months Ended |
Dec. 31, 2013 | Sep. 30, 2013 | |
RELATED PARTY TRANSACTIONS [Abstract] | ' | ' |
RELATED PARTY TRANSACTIONS | ' | ' |
NOTE 4 - RELATED PARTY TRANSACTIONS | NOTE 6 - RELATED PARTY TRANSACTIONS | |
In May 2013, James Askew resigned as the Company's chief executive officer. Simultaneously, John Seitz was appointed chief executive officer and chairman of the board of directors. | In May 2012, the Company issued 20,000,000 shares of common stock to John Preftokis, the Company's former president and chief executive officer, for services rendered valued at $200,000 or $0.01 per share. John Preftokis resigned as sole officer and director of the Company in June 2012. | |
In May 2013, Ronald A. Bain was appointed as the president and chief operating officer, and Dwight "Clint" M. Moore was appointed as the vice president and secretary. | In May 2012, James Askew, a shareholder and the Company's former president and chief executive officer, loaned the Company the sum of $7,200 which was paid in June 2012. | |
During April through September 2013, the Company entered into convertible promissory notes whereby it borrowed a total of $6,500,000 from John Seitz, its current chief executive officer. The notes are due on demand, bear interest at the rate of 5% per annum, and 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). In May 2013, John Seitz converted $1,200,000 of the aforementioned debt into 10,000,000 shares of common stock, which shares were issued in July 2013. As of December 31, 2013, there was a total of $162,042 accrued interest associated with these loans and the Company has recorded $94,319 in interest expense for the year ended September 30, 2013 and $67,723 in interest expense for the quarter ended December 31, 2013. | In May 2012, the Company and Mr. Askew entered into a consulting agreement pursuant to which Mr. Askew would provide the Company's board of directors advice relating to certain of the Company's strategic and business development activities, including business development financing, and corporate strategy. In consideration for entering into the consulting agreement, Mr. Askew was issued 50 million shares of the Company's common stock. Mr. Askew's obligations under the consulting agreement were replaced and superseded as described below. | |
In May 2012, the Company and John B. Connally III, entered into a consulting agreement pursuant to which Mr. Connally would provide the Company's board of directors advice relating to certain of the Company's strategic and business development activities, including business development financing, and corporate strategy. In consideration for entering into the consulting agreement, Mr. Connally was issued 50 million shares of the Company's common stock. In July 2012, Mr. Connally's consulting agreement was amended, providing for the Company to pay Mr. Connally a one-time $25,000 cash retainer and a monthly cash consulting fee of $10,000 per month beginning July 1, 2012. | ||
During September 2013, the Company entered into convertible promissory notes whereby it borrowed a total of $200,000 from Dr. Ronald Bain, its current president and chief operating officer, and his affiliate ConRon. The notes are due on demand, bear interest at the rate of 5% per annum, and 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 September 30, 2013, there was a total of $667 accrued interest associated with these loans and the Company has recorded interest expense for the same amount. In October 2013, Dr. Bain converted principal and accrued interest in the amount of $180,408 into 1,503,403 shares of common stock (a conversion rate of $0.12 per share). In November 2013, the Company repaid in full the $20,000 remaining principal balance (plus accrued interest) of the convertible promissory note. | ||
In June 2012, James Askew was appointed as the Company's president, chief executive officer, secretary, treasurer, and as chairman of the board of directors. In connection with the appointment of Mr. Askew, in June 2012, the Company and Mr. Askew entered into an employment agreement whereby Mr. Askew was paid a base salary of $300,000 per year and a one-time cash sign-on bonus of $100,000. The employment agreement replaced and superseded Mr. Askew's consulting agreement entered into in May 2012 (see description of the May 2012 consulting agreement above in this Note 6). The 50 million shares issued to Mr. Askew were unaffected by the replacement of the May 2012 consulting agreement with the June 2012 employment agreement. | ||
In October 2013, the Company issued 937,500 shares of common stock to Brady Rodgers, the Company's vice president, to settle $112,500 of fees due to Mr. Rodgers for services rendered. | ||
In June 2012, subsequent to the date of his resignation as an officer and director of the Company, the Company entered into a one-year consulting agreement with John Preftokis. In consideration for entering into the consulting agreement, Mr. Preftokis was issued 5 million shares of Company common stock. This agreement was valued at $50,000, or $0.01 per share. As of September 30, 2012, $13,611 had been expensed with $36,389 recorded as a prepaid expense. | ||
In October 2013, the Company issued to Brady Rodgers, the Company's vice president Engineering and Business Development, a ten-year option to purchase 2,000,000 shares of the Company's common stock at an exercise price of $0.12 per share. A fair value of $177,298 was computed using the Black-Scholes option-pricing model, of which $25,632 has been expensed during the three months ended December 31, 2013. The options vest 50% in October 2014 and 50% in October 2015. | ||
During August and September 2012, James Askew paid $31,183 in expenses on behalf of the Company. The $31,183 related party payable was outstanding as of September 30, 2012 and paid during the twelve months ended September 30, 2013. | ||
As of December 31, 2013, executive officers paid $56,480 to trade vendors on behalf of the Company in the ordinary course of business. | ||
Effective March 2013, the Company amended the employment agreement of James Askew to allow the Company to terminate such agreement at any time. The Company agreed to pay Mr. Askew a severance payment upon termination in the amount of up to $100,000 as reimbursement for any tax liabilities incurred by Mr. Askew during calendar year 2013 arising from previous salary and other compensation paid to Mr. Askew. The termination amount was accrued and recorded as a related party payable as of September 30, 2013. | ||
In March 2013, the Company entered into a one-year consulting agreement with ConRon Consulting, Inc. ("ConRon") whereby ConRon assisted the Company in negotiating licensing for certain seismic data, as well as providing other general consulting. ConRon is an affiliate of Ron Bain, the Company's current chief operating officer. Pursuant to the agreement, compensation for ConRon was $30,000 per month. The ConRon consulting agreement was terminated in October 2013, and beginning in November 2013, Mr. Bain is paid an annual salary of $360,000 as an employee of the Company. As of September 30, 2013, the consulting fees for the months of March through September totaling $210,000 were unpaid and recorded as a related party payable. | ||
In March 2013, the Company entered into a one-year consulting agreement with John N. Seitz, whereby Mr. Seitz assisted the Company in negotiating licensing for certain seismic data, and provided other general consulting. Pursuant to the agreement, Mr. Seitz was to receive compensation of $40,000 per month. The agreement was terminated in May 2013, as Mr. Seitz was appointed as the Company's chief executive officer and chairman and it is expected that Mr. Seitz will enter into an arrangement with the Company in the near future providing equity-based compensation. As of September 30, 2013, the consulting fees for the months of March through May totaling $120,000 were unpaid and recorded as a related party payable. | ||
Mr. Seitz has not received a salary since May 31, 2013, the date he commenced serving as our chief executive officer 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 of consulting compensation owed to Mr. Seitz. As Mr. Seitz beneficially owns a significant number of shares of the Company's common stock (including shares issuable upon conversion of the principal amount of convertible notes held by Mr. Seitz), the Company recognizes that his level of stock ownership significantly aligns his interests with shareholders' interests. From time to time, the compensation committee may consider compensation arrangements for Mr. Seitz given his continuing contributions and leadership. | ||
In March 2013, John N. Seitz, Ronald A. Bain, and Dwight "Clint" M. Moore were issued 190,045,556 shares, 40,045,555 shares, and 10,045,555 shares, respectively, of common stock in consideration for the assignment of rights to purchase certain seismic data. The shares issued were valued at $0.01 per share. As a result of that transaction, both Mr. Seitz and Dr. Bain became holders in excess of 5% of our outstanding shares of common stock. | ||
In May 2013, James Askew resigned as the Company's chief executive officer. Simultaneously, John Seitz was appointed chief executive officer and chairman of the board of directors. Mr. Askew remains a director of the Company. | ||
In May 2013, Ronald A. Bain was appointed as the president and chief operating officer, and Dwight "Clint" M. Moore was appointed as the vice president and secretary. | ||
During April through September 2013, the Company entered into convertible promissory notes whereby it borrowed a total of $6,500,000 from John Seitz, its current chief executive officer. The notes are due on demand, bear interest at the rate of 5% per annum, and 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). In May 2013, John Seitz converted $1,200,000 of the aforementioned debt into 10,000,000 shares of common stock pursuant to the aforementioned convertible promissory notes. The shares were issued in July 2013. As of September 30, 2013, there was a total of $94,319 accrued interest associated with these loans and the Company has recorded $94,319 in interest expense. | ||
During September 2013, the Company entered into promissory notes whereby it borrowed a total of $200,000 from Dr. Ronald Bain, its current president and chief operating officer, and his affiliate ConRon. The notes are due on demand, bear interest at the rate of 5% per annum, and 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 September 30, 2013, there was a total of $667 accrued interest associated with these loans and the Company has recorded interest expense for the same amount. In October 2013, Dr. Bain converted principal and accrued interest in the amount of $180,408 into 1,503,403 shares of common stock (a conversion rate of $.12 per share). In November 2013, the Company repaid in full the $20,000 remaining principal balance (plus accrued interest) of the convertible promissory note. | ||
Domenica Seitz, CPA, has provided consulting services to the Company. During the fiscal year ended September 30, 2013, the amount of services rendered was nominal and was donated. | ||
As of September 30, 2013, executive officers paid $60,100 to trade vendors on behalf of the Company in the ordinary course of business. |
COMMON_STOCKPAID_IN_CAPITAL
COMMON STOCK/PAID IN CAPITAL | 3 Months Ended | 12 Months Ended |
Dec. 31, 2013 | Sep. 30, 2013 | |
COMMON STOCK/PAID IN CAPITAL [Abstract] | ' | ' |
COMMON STOCK/PAID IN CAPITAL | ' | ' |
NOTE 5 - COMMON STOCK/PAID IN CAPITAL | NOTE 7 - COMMON STOCK/PAID IN CAPITAL | |
Effective April 2012, the Company completed a reincorporation in the State of Delaware from the State of Utah. The current number of authorized shares of common stock is 750,000,000 and the number of authorized shares of preferred stock is 50,000,000. | In October 2011, the Company sold 2,000,000 shares of common stock for $20,000 cash in a private placement. | |
During February and March 2013, the Company sold 47,000,000 shares of common stock for cash proceeds of $470,000. | Effective April 13, 2012, the Company completed a reincorporation in the State of Delaware from the State of Utah. The reincorporation was effected by the merger of Plan A with and into GulfSlope Energy, Inc., a newly formed, wholly owned Delaware subsidiary. As of the effective time of the reincorporation merger, Plan A ceased to exist as a separate entity with GulfSlope being the surviving entity. Each outstanding share of common stock of Plan A was automatically converted into one share of GulfSlope common stock. The par value of GulfSlope common stock and preferred stock changed from $0.01 per share to $0.001 per share. In addition, the number of authorized shares of common stock was increased from 50,000,000 to 750,000,000 and the number of authorized shares of preferred stock was increased from 5,000,000 to 50,000,000. These financial statements and related notes give retroactive effect to the change in par value. | |
During April 2013, the Company issued a total of 6,000,000 shares of common stock to two third parties for services rendered. The shares were valued at $60,000. | In May 2012, the Company issued 20,000,000 shares of common stock to John Preftokis, the Company's former president and chief executive officer, for services rendered valued at $200,000 or $0.01 per share. | |
During April 2013, the Company issued 10,000,000 shares of common stock to John B. Connally III as consideration for termination of a consulting agreement. The shares were valued at $100,000. | In May 2012, the Company issued 10,000,000 shares of common stock to five third parties for services rendered valued at $100,000 or $0.01 per share. | |
During April 2013, the Company issued 243,516,666 shares of common stock to third parties in connection with the Assignment Agreement (see Note 3 above). The shares were valued at $2,435,167. | In May 2012, the Company issued 50,000,000 shares of common stock to a third party for services rendered pursuant to a one-year consulting agreement. This agreement was valued at $500,000 or $0.01 per share. As of September 30, 2012, $208,333 had been expensed with $291,667 recorded as a prepaid expense. The remaining $291,667 was expensed as of September 30, 2013. | |
During April 2013, the Company sold 16,666,667 shares of common stock for $2,000,000 cash or $0.12 per share. The shares were subsequently issued in July 2013. | In May 2012, the Company issued 50,000,000 shares of common stock to James Askew, its former president and chief executive officer, for services rendered pursuant to a one-year consulting agreement. This agreement was valued at $500,000 or $0.01 per share and expensed in full as the issuance was to an employee of the Company (see Note 6 above). | |
During May 2013, the Company was obligated to issue 10,000,000 shares of common stock to its chief executive officer to settle $1,200,000 in debt (see Note 4 above). The shares were subsequently issued in July 2013. | In May and June 2012, the Company sold 76,500,000 shares of common stock for $765,000 cash in a private placement. | |
During June 2013, the Company sold 833,333 shares of common stock for $100,000 cash or $0.12 per share. The shares were subsequently issued in July 2013. | In June 2012, the Company entered into a one-year consulting agreement with John Preftokis, the Company's former president and chief executive officer, for 5,000,000 shares of common stock. The shares were subsequently issued in July 2012. This agreement was valued at $50,000, or $0.01 per share. As of September 30, 2012, $13,611 had been expensed with $36,389 recorded as a prepaid expense. The remaining $36,389 was expensed as of September 30, 2013. | |
During August and September 2013, the Company sold a total of 8,043,334 shares of common stock for $965,200 cash at $0.12 per share. | During February and March 2013, the Company sold 47,000,000 shares of common stock for cash proceeds of $470,000. | |
During October 2013, the Company sold 42,952,773 shares of common stock in a private placement at a price of $0.12 per share for $5,154,333 cash. | During April 2013, the Company issued a total of 6,000,000 shares of common stock to two third parties for services rendered. The shares were valued at $60,000. | |
In October 2013, the Company issued 1,503,403 shares of common stock to Dr. Bain, the Company's chief operating officer, for the conversion of $180,408 of convertible debt and accrued interest (see Note 4, above). | During April 2013, the Company issued 10,000,000 shares of common stock to John B. Connally III as consideration for termination of a consulting agreement (see Note 6 above). | |
In October 2013, the Company issued 937,500 shares of common stock to Brady Rodgers, the Company's vice president, to settle $112,500 of fees due to Mr. Rodgers for services rendered. | During April 2013, the Company issued 243,516,666 shares of common stock to third parties in relation to the licensing of certain seismic data (see Note 3 above), of which 190,045,556 of the shares were issued to John Seitz and 40,045,555 shares were issued to Ronald A. Bain. As a result of that transaction, both Mr. Seitz and Dr. Bain became holders in excess of 5% of our outstanding shares of common stock. Prior to this transaction neither Mr. Seitz nor Dr. Bain were officers, directors or 5% or more shareholders. | |
During April 2013, the Company sold 16,666,667 shares of common stock for $2,000,000 cash or $0.12 per share. | ||
In October 2013, the Company issued 1,620,000 shares of common stock, with a fair value of $194,400, to three employees pursuant to employment arrangements. The Company also made gross-up payments to cover the three employees' personal income tax obligations in connection with these grants. | ||
During June 2013, the Company sold 833,333 shares of common stock for $100,000 cash or $0.12 per share. | ||
In October 2013, the Company issued to Brady Rodgers, the Company's vice president Engineering and Business Development, a ten-year option to purchase 2,000,000 shares of the Company's common stock at an exercise price of $0.12 per share. A fair value of $177,298 was computed using the Black-Scholes option-pricing model, of which $12,816 has been capitalized to exploration costs and subsequently impaired, and $12,816 has been recorded as general & administrative expense during the three months ended December 31, 2013. The options vest 50% in October 2014 and 50% in October 2015. | ||
During July 2013, the Company issued 10,000,000 shares of common stock to its chief executive officer upon conversion of $1,200,000 in debt (see Note 6 above). | ||
During August and September 2013, the Company sold a total of 8,043,334 shares of common stock for $965,200 cash or $0.12 per share. |
COMMITMENTS_AND_CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 3 Months Ended | 12 Months Ended |
Dec. 31, 2013 | Sep. 30, 2013 | |
COMMITMENTS AND CONTINGENCIES [Abstract] | ' | ' |
COMMITMENTS AND CONTINGENCIES | ' | ' |
NOTE 7- COMMITMENTS AND CONTINGENCIES | NOTE 8- COMMITMENTS AND CONTINGENCIES | |
In March 2013, the Company licensed certain seismic data pursuant to two agreements. With respect to the first agreement, as of December 31, 2013, the Company has paid $2,135,500 in cash, and has provided an additional $2,500,000 in an escrow account, which will be released to the vendor at a later date. This amount has been recorded as restricted cash as of December 31, 2013. The Company is obligated to provide the remaining $1,500,000 in an escrow account upon the delivery of certain additional seismic data by the vendor to the Company, which is expected to occur during the first calendar quarter of 2014. With respect to the second agreement, as of December 31, 2013, the Company has paid $2,006,130 in cash and is obligated to pay $1,003,065 during April 2014 and $1,003,065 during April 2015. | In March 2013, the Company licensed certain seismic data pursuant to two agreements. With respect to the first agreement, as of September 30, 2013, the Company has paid $2,135,500 in cash, and has provided an additional $2,500,000 in an escrow account, $2,000,000 of which will be released to the vendor in the third quarter of fiscal 2014. This amount has been recorded as restricted cash as of September 30, 2013. The Company is obligated to provide the remaining $1,500,000 in an escrow account upon the delivery of certain additional seismic data by the vendor to the Company, which is expected to occur during the first calendar quarter of 2014. With respect to the second agreement, as of September 30, 2013, the Company has paid $2,006,130 in cash and is obligated to pay $1,003,065 during April 2014 and $1,003,065 during April 2015. | |
In July 2013, the Company entered into a two-year office lease agreement. The agreement calls for monthly payments of approximately $20,200 for the first twelve months and $20,500 for the second twelve months. In addition, the Company paid a $18,760 security deposit in July 2013. | In July 2013, the Company entered into a two-year office lease agreement. The agreement calls for monthly payments of approximately $20,200 for the first twelve months and $20,500 for the second twelve months. In addition, the Company paid a $18,760 security deposit in July 2013. | |
In August 2013, the Company entered into a one-year consulting agreement with a third party. The agreement calls for monthly retainer payments of $11,000 per month for the first four months (a total of $44,000). As of December 31, 2013, the Company has paid 3 payments for a total of $33,000. After the fourth payment, the consultant will be compensated on a time and materials basis. | In August 2013, the Company entered into a one-year consulting agreement with a third party. The agreement calls for monthly retainer payments of $11,000 per month for the first four months (a total of $44,000). As of September 30, 2013, the Company has paid two payments for a total of $22,000. After the fourth month, the consultant will be compensated on a time and materials basis. | |
In October 2013, the Company purchased an insurance policy and financed the premium by executing a note payable in the amount of $114,748. The balance of the note payable at December 31, 2013 is $94,273. |
SUBSEQUENT_EVENTS
SUBSEQUENT EVENTS | 12 Months Ended |
Sep. 30, 2013 | |
SUBSEQUENT EVENTS [Abstract] | ' |
SUBSEQUENT EVENTS | ' |
NOTE 9 - SUBSEQUENT EVENTS | |
During October 2013, the Company sold 42,952,773 shares of common stock in a private placement at a price of $0.12 per share for $5,154,333 cash. | |
In October 2013, the Company issued 1,503,403 shares of common stock to Dr. Bain, the Company's chief operating officer, to settle $180,408 of debt. | |
In October 2013, the Company issued 937,500 shares of common stock to Brady Rodgers, the Company's vice president, to settle $112,500 of fees due to Mr. Rodgers for services rendered. | |
In October 2013, the Company issued 1,620,000 shares of common stock to three employees pursuant to employment arrangements. The Company has agreed to make gross-up payments to these recipients to cover the three employees' personal income tax obligations in connection with these grants. | |
In October 2013, the Company issued to Brady Rodgers, the Company's vice president Engineering and Business Development, a ten-year option to purchase 2,000,000 shares of our common stock at an exercise price of $0.12 per share. The options vest 50% in October 2014 and 50% in October 2015. |
ORGANIZATION_AND_SUMMARY_OF_SI1
ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 3 Months Ended | 12 Months Ended |
Dec. 31, 2013 | Sep. 30, 2013 | |
ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES [Abstract] | ' | ' |
Organization | ' | ' |
Organization | ||
GulfSlope Energy, Inc. (the "Company") was founded December 12, 2003 as Lostwood Professional Services, Inc. and was organized to engage in the business of producing and selling promotional merchandise. The Company was incorporated under the laws of the State of Utah. The Company is no longer actively involved in the promotional merchandise industry. The Company, now a Delaware corporation, is an independent energy company intent upon engaging in the acquisition, exploration, exploitation, development and production of crude oil and natural gas properties. To this end, the Company entered the exploration stage on March 22, 2013 when it executed a master license agreement with a seismic company to license certain seismic data for the purposes of engaging in the exploration of oil and natural gas. | ||
Cash and Cash Equivalents | ' | ' |
Cash and Cash Equivalents | Cash and Cash Equivalents | |
GulfSlope 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 checking and money market accounts. These assets are generally available on a daily or weekly basis and are highly liquid in nature. | 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 checking accounts. These assets are generally available on a daily or weekly basis and are highly liquid in nature. | |
Restricted Cash | ' | ' |
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. Refer to Note 8. Those funds have been classified as restricted cash. | ||
Liquidity/Going Concern | ' | ' |
Liquidity/Going Concern | NOTE 2 - LIQUIDITY/GOING CONCERN | |
We have incurred accumulated losses for the period from inception to December 31, 2013 of $21,298,662. Further losses are anticipated in developing our business. These factors raise substantial doubt about the Company's ability to continue as a going concern. As a result, our auditors have expressed substantial doubt about our ability to continue as a going concern. As of December 31, 2013, we had $3,344,071 of unrestricted cash on hand excluding $2,500,506 of restricted cash in an escrow account earmarked for a future payment associated with the acquisition of seismic data. The Company estimates that it will need to raise a minimum of $15 million to fund operations through December 31, 2014, and likely significantly more capital to meet its obligations during the subsequent 12 months. The Company plans to finance the Company through best-efforts equity and/or debt financings. The financial statements do not include any adjustments that might result from the outcome of this uncertainty. | The Company has incurred accumulated losses and negative cash flows from operations for the period from inception to September 30, 2013 of $19,149,805. Further losses are anticipated in developing its business. As a result, the Company's auditors have expressed substantial doubt about its ability to continue as a going concern. As of September 30, 2013, the Company had $310,199 of unrestricted cash on hand. The Company estimates that it will need to raise a minimum of $19.4 million to meet its obligations and planned expenditures during calendar year 2014. The Company plans to finance the Company through equity and/or debt financings. The financial statements do not include any adjustments that might result from the outcome of this uncertainty. | |
Full Cost Method | ' | ' |
Full Cost Method | 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. | 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 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. | |
The costs of unproved properties and related capitalized costs (such as G&G 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. Further, capitalized G&G costs that are directly associated with unevaluated properties not yet owned by the Company are included in the depletion base. As of September 30, 2013, the Company had no proved reserves, nor any unevaluated properties. As a result, the geological and geophysical costs are included in the amortization base as incurred and, per Rule 4-10, are subject ceiling limitation test, resulting in immediate impairment. | ||
The costs of unproved properties and related capitalized costs (such as G&G 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. Further, capitalized G&G costs that are directly associated with unevaluated properties not yet owned by the Company are included in the depletion base. As of December 31, 2013, the Company had no proved reserves, nor any unevaluated properties. As a result, the geological and geophysical costs are included in the amortization base as incurred and, per Rule 4-10, are subject to the ceiling limitation test, resulting in immediate impairment. | ||
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 ("DD&A") 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. | ||
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. | ||
Capitalized Interest | ' | ' |
Capitalized Interest | ||
Interest is capitalized on the cost of unevaluated gas and oil properties that are excluded from amortization and actively being evaluated, if any. | ||
Property and Equipment | ' | ' |
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. | ||
Income Taxes | ' | ' |
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. | ||
Net Loss Per Common Share | ' | ' |
Net Loss Per Share | Net Loss Per Common Share | |
Basic earnings 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 restricted stock. The number of potential common shares outstanding relating to stock options, warrants, and restricted stock is computed using the treasury stock method. | Basic earnings 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 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 three months ended December 31, 2013 and 2012, the potentially dilutive shares are anti-dilutive and are thus not added into the loss per share calculations. As of December 31, 2013 and 2012, there were 46,166,667 and 0 potentially dilutive shares. | As the Company has incurred losses for the years ended September 30, 2013 and 2012, the potentially dilutive shares are anti-dilutive and are thus not added into the loss per share calculations. As of September 30, 2013 and 2012, there were 45,833,333 and 0 potentially dilutive shares, respectively. | |
Statement of Cash Flows | ' | ' |
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 $310,199 unrestricted cash as of September 30, 2013. The Company had $423,009 unrestricted cash as of September 30, 2012. | ||
Use of Estimates in Preparation of Financial Statements | ' | ' |
Use of Estimates in Preparation of Financial Statements | ||
The preparation of financial statements in conformity with U.S. generally accepted accounting principles 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 | ' | ' |
Recent Accounting Pronouncements | Impact of New Accounting Standards | |
The Company has reviewed all recently issued, but not yet adopted, accounting standards in order to determine their effects, if any, on its results of operations, financial position or cash flows. Based on that review, the Company believes that none of these pronouncements will have a significant effect on its financial statements. | The Company has reviewed all recently issued, but not yet adopted, accounting standards in order to determine their effects, if any, on its results of operation, financial position or cash flows. Based on that review, the Company believes that none of these pronouncements will have a significant effect on its financial statements. |
PROPERTY_AND_EQUIPMENT_Tables
PROPERTY AND EQUIPMENT (Tables) | 12 Months Ended | ||||||||
Sep. 30, 2013 | |||||||||
PROPERTY AND EQUIPMENT [Abstract] | ' | ||||||||
Schedule of Property and Equipment | ' | ||||||||
Property and equipment consist of the following as of September 30, 2013 and September 30, 2012: | |||||||||
September 30, | |||||||||
2013 | 2012 | ||||||||
Office equipment and computers | $ | 57,071 | $ | - | |||||
Furniture and fixtures | 16,280 | - | |||||||
Leasehold improvements | 4,054 | - | |||||||
Total | 77,405 | - | |||||||
Less: accumulated depreciation | (7,217 | ) | - | ||||||
Net property and equipment | $ | 70,188 | $ | - | |||||
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 years | ||||||||
Furniture and fixtures | 5 years | ||||||||
Leasehold improvements | 5 years |
INCOME_TAXES_Tables
INCOME TAXES (Tables) | 12 Months Ended | ||||||||
Sep. 30, 2013 | |||||||||
INCOME TAXES [Abstract] | ' | ||||||||
Schedule of Income Tax Provision | ' | ||||||||
The provision for income taxes consists of the following as of September 30, 2013 and 2012: | |||||||||
September 30, | |||||||||
2013 | 2012 | ||||||||
FEDERAL | |||||||||
Current | $ | - | $ | - | |||||
Deferred | - | - | |||||||
STATE | |||||||||
Current | - | - | |||||||
Deferred | - | - | |||||||
TOTAL PROVISION | $ | - | $ | - | |||||
Schedule of Deferred Income Tax Assets and Liabilities | ' | ||||||||
Deferred income tax assets and liabilities at September 30, 2013 and 2012 consist of the following temporary differences: | |||||||||
September 30, | |||||||||
2013 | 2012 | ||||||||
DEFERRED TAX ASSETS | |||||||||
Current | $ | - | $ | - | |||||
Noncurrent | |||||||||
Net operating losses | 1,166,327 | 336,029 | |||||||
Exploration costs | 1,701,065 | - | |||||||
Differences in book/tax depreciation | 0 | 0 | |||||||
Total noncurrent | $ | 2,867,392 | $ | 336,029 | |||||
Valuation Allowance | (2,867,392 | ) | (336,029 | ) | |||||
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 carry forwards and their expiration dates: | |||||||||
Amount | Expiration | ||||||||
$ | 3,203 | 9/30/24 | |||||||
7,695 | 9/30/25 | ||||||||
18,447 | 9/30/26 | ||||||||
16,876 | 9/30/27 | ||||||||
17,986 | 9/30/28 | ||||||||
8,596 | 9/30/29 | ||||||||
7, 713 | 9/30/30 | ||||||||
64,097 | 9/30/31 | ||||||||
513,914 | 9/30/32 | ||||||||
7,116,987 | 9/30/33 | ||||||||
$ | 7,775,514 | Total | |||||||
Schedule of Effective Income Tax Rate Reconciliation | ' | ||||||||
A reconciliation between income taxes at statutory tax rates (15%) and (20%) as of September 30, 2013 and 2012, respectively, and the actual income tax provision for continuing operations is as follows: | |||||||||
September 30, | |||||||||
2013 | 2012 | ||||||||
Expected provision (based on statutory rate) | $ | (2,617,887 | ) | $ | (307,455 | ) | |||
Effect of: | |||||||||
Increase in valuation allowance | 2,531,363 | 307,152 | |||||||
State minimum tax, net of federal benefit | 0 | 0 | |||||||
Non-deductible expense | 2,541 | 303 | |||||||
Temporary differences due to depreciation | 0 | 0 | |||||||
Rate Change | 83,973 | 0 | |||||||
Total actual provision | $ | 0 | $ | 0 |
STOCKBASED_COMPENSATION_Tables
STOCK-BASED COMPENSATION (Tables) | 3 Months Ended | ||
Dec. 31, 2013 | |||
STOCK-BASED COMPENSATION [Abstract] | ' | ||
Summary of Stock Options Activity | ' | ||
The following table summarizes the Company's stock option activity during the three-month period ended December 31, 2013. | |||
Number of Options | Weighted Average Exercise Price | ||
Outstanding at beginning of period | - | - | |
Granted | 2,000,000 | $0.12 | |
Exercised | - | - | |
Cancelled | - | - | |
Outstanding at end of period | 2,000,000 | $0.12 | |
Exercisable at end of period | - | - | |
Schedule of Fair Value Assumptions | ' | ||
The Black-Scholes option-pricing model is used to estimate the fair value of options granted. The fair values of stock options granted for the three months ended December 31, 2013 were based on the following assumptions at the date of grant as follows: | |||
Expected dividend yield | -% | ||
Expected stock price volatility | 91.42% | ||
Risk-free interest rate | 1.53% | ||
Expected life of options | 5.75 years | ||
Grant date fair value | 0.09 |
ORGANIZATION_AND_SUMMARY_OF_SI2
ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) (USD $) | 3 Months Ended | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | |
ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES [Abstract] | ' | ' | ' | ' |
Shares excluded from the computation of diluted loss per share | 46,166,667 | 0 | 45,833,333 | 0 |
Unrestricted cash | $3,344,071 | $127,244 | $310,199 | $423,009 |
LIQUIDITYGOING_CONCERN_Details
LIQUIDITY/GOING CONCERN (Details) (USD $) | 3 Months Ended | 12 Months Ended | ||
Dec. 31, 2013 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | |
LIQUIDITY/GOING CONCERN [Abstract] | ' | ' | ' | ' |
Assets | $6,290,482 | $2,904,978 | ' | $752,382 |
Capital required to meet obligations during fiscal year 2014 | 15,000,000 | 19,400,000 | ' | ' |
Unrestricted cash | 3,344,071 | 310,199 | 127,244 | 423,009 |
Accumulated losses | -21,298,662 | -19,149,805 | ' | -1,697,292 |
Restricted cash and cash equivalents | $2,500,506 | ' | ' | ' |
EXPLORATION_COSTS_Details
EXPLORATION COSTS (Details) (USD $) | Mar. 31, 2013 | Mar. 31, 2013 | 31-May-13 | Dec. 31, 2013 | Sep. 30, 2013 | Dec. 31, 2013 | Sep. 30, 2013 | Dec. 31, 2013 | Mar. 22, 2013 |
License Fee [Member] | Seismic Data Purchase [Member] | Geophysical Research Program [Member] | Technological Infrastructure And Third Party Hosting Services [Member] | Technological Infrastructure And Third Party Hosting Services [Member] | Consulting Fees And Salaries And Benefits [Member] | Consulting Fees And Salaries And Benefits [Member] | Independent Reserve Study [Member] | TGS [Member] | |
Deferred Costs, Capitalized, Prepaid And Other Assets [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Shares issued in consideration for seismic data | ' | ' | ' | ' | ' | ' | ' | ' | 243,516,666 |
Exploration costs capitalized during the period | $6,135,000 | $4,012,260 | $90,000 | $787,935 | $1,674,376 | $808,613 | $773,271 | $80,000 | $2,435,167 |
PROPERTY_AND_EQUIPMENT_Schedul
PROPERTY AND EQUIPMENT (Schedule of Property and Equipment) (Details) (USD $) | Dec. 31, 2013 | Sep. 30, 2013 | Sep. 30, 2012 |
Property, Plant and Equipment [Line Items] | ' | ' | ' |
Gross property and equipment | ' | $77,405 | ' |
Less: accumulated depreciation | ' | -7,217 | ' |
Net property and equipment | 78,434 | 70,188 | ' |
Office Equipment and Computers [Member] | ' | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' | ' |
Gross property and equipment | ' | 57,071 | ' |
Furniture and Fixtures [Member] | ' | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' | ' |
Gross property and equipment | ' | 16,280 | ' |
Leasehold Improvements [Member] | ' | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' | ' |
Gross property and equipment | ' | $4,054 | ' |
PROPERTY_AND_EQUIPMENT_Schedul1
PROPERTY AND EQUIPMENT (Schedule of Estimated Useful Lives of Assets) (Details) (USD $) | 3 Months Ended | 12 Months Ended | 118 Months Ended | 121 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Dec. 31, 2013 | |
Property, Plant and Equipment [Line Items] | ' | ' | ' | ' | ' | ' |
Depreciation | $6,558 | ' | $7,217 | ' | $16,123 | $22,681 |
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 $) | 3 Months Ended | 12 Months Ended | 118 Months Ended | 121 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Dec. 31, 2013 | |
FEDERAL | ' | ' | ' | ' | ' | ' |
Current | ' | ' | ' | ' | ' | ' |
Deferred | ' | ' | ' | ' | ' | ' |
STATE | ' | ' | ' | ' | ' | ' |
Current | ' | ' | ' | ' | ' | ' |
Deferred | ' | ' | ' | ' | ' | ' |
TOTAL PROVISION | ' | ' | ' | ' | $800 | $800 |
INCOME_TAXES_Schedule_of_Defer
INCOME TAXES (Schedule of Deferred Income Tax Assets and Liabilities) (Details) (USD $) | 12 Months Ended | |
Sep. 30, 2013 | Sep. 30, 2012 | |
Noncurrent | ' | ' |
Net operating losses | $1,166,327 | $336,029 |
Exploration costs | 1,701,065 | ' |
Differences in book/tax depreciation | 0 | 0 |
Total noncurrent | 2,867,392 | 336,029 |
Current | ' | ' |
Valuation Allowance | -2,867,392 | -336,029 |
NET DEFERRED TAX ASSET | ' | ' |
DEFERRED TAX LIABILITIES | ' | ' |
NET DEFERRED TAXES | ' | ' |
Valuation allowance increase | $2,531,363 | ' |
INCOME_TAXES_Summary_of_Federa
INCOME TAXES (Summary of Federal Net Operating Loss Carryforwards) (Details) (USD $) | 12 Months Ended |
Sep. 30, 2013 | |
Operating Loss Carryforwards [Line Items] | ' |
Amount | $7,775,514 |
Federal Net Operating Loss Carryforward 1 [Member] | ' |
Operating Loss Carryforwards [Line Items] | ' |
Amount | 3,203 |
Expiration | 30-Sep-24 |
Federal Net Operating Loss Carryforward 2 [Member] | ' |
Operating Loss Carryforwards [Line Items] | ' |
Amount | 7,695 |
Expiration | 30-Sep-25 |
Federal Net Operating Loss Carryforward 3 [Member] | ' |
Operating Loss Carryforwards [Line Items] | ' |
Amount | 18,447 |
Expiration | 30-Sep-26 |
Federal Net Operating Loss Carryforward 4 [Member] | ' |
Operating Loss Carryforwards [Line Items] | ' |
Amount | 16,876 |
Expiration | 30-Sep-27 |
Federal Net Operating Loss Carryforward 5 [Member] | ' |
Operating Loss Carryforwards [Line Items] | ' |
Amount | 17,986 |
Expiration | 30-Sep-28 |
Federal Net Operating Loss Carryforward 6 [Member] | ' |
Operating Loss Carryforwards [Line Items] | ' |
Amount | 8,596 |
Expiration | 30-Sep-29 |
Federal Net Operating Loss Carryforward 7 [Member] | ' |
Operating Loss Carryforwards [Line Items] | ' |
Amount | 7,713 |
Expiration | 30-Sep-30 |
Federal Net Operating Loss Carryforward 8 [Member] | ' |
Operating Loss Carryforwards [Line Items] | ' |
Amount | 64,097 |
Expiration | 30-Sep-31 |
Federal Net Operating Loss Carryforward 9 [Member] | ' |
Operating Loss Carryforwards [Line Items] | ' |
Amount | 513,914 |
Expiration | 30-Sep-32 |
Federal Net Operating Loss Carryforward 10 [Member] | ' |
Operating Loss Carryforwards [Line Items] | ' |
Amount | $7,116,987 |
Expiration | 30-Sep-33 |
INCOME_TAXES_Schedule_of_Effec
INCOME TAXES (Schedule of Effective Income Tax Rate Reconciliation) (Details) (USD $) | 3 Months Ended | 12 Months Ended | 118 Months Ended | 121 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Dec. 31, 2013 | |
INCOME TAXES [Abstract] | ' | ' | ' | ' | ' | ' |
Statutory tax rate | ' | ' | 15.00% | 20.00% | ' | ' |
Expected provision (based on statutory rate) | ' | ' | ($2,617,887) | ($307,455) | ' | ' |
Effect of: | ' | ' | ' | ' | ' | ' |
Increase in valuation allowance | ' | ' | 2,531,363 | 307,152 | ' | ' |
State minimum tax, net of federal benefit | ' | ' | 0 | 0 | ' | ' |
Non-deductible expense | ' | ' | 2,541 | 303 | ' | ' |
Temporary differences due to depreciation | ' | ' | 0 | 0 | ' | ' |
Rate Change | ' | ' | 83,973 | 0 | ' | ' |
Total actual provision | ' | ' | ' | ' | $800 | $800 |
STOCKBASED_COMPENSATION_Narrat
STOCK-BASED COMPENSATION (Narrative) (Details) (USD $) | 3 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
STOCK-BASED COMPENSATION [Abstract] | ' | ' |
Stock-based compensation expense | $25,632 | ' |
Unrecognized compensation cost related to stock options | 151,666 | ' |
Unrecognized compensation cost related to stock options, period of recognition | '2 years | ' |
Options outstanding, aggregate intrinsic value | ' | ' |
STOCKBASED_COMPENSATION_Summar
STOCK-BASED COMPENSATION (Summary of Stock Options Activity) (Details) (USD $) | 3 Months Ended |
Dec. 31, 2013 | |
Number of Options | ' |
Outstanding at beginning of period | ' |
Granted | 2,000,000 |
Exercised | ' |
Cancelled | ' |
Outstanding at end of period | 2,000,000 |
Weighted Average Exercise Price | ' |
Outstanding at beginning of period | ' |
Granted | $0.12 |
Exercised | ' |
Cancelled | ' |
Outstanding at end of period | $0.12 |
Exercisable at end of period | ' |
STOCKBASED_COMPENSATION_Schedu
STOCK-BASED COMPENSATION (Schedule of Fair Value Assumptions) (Details) (USD $) | 3 Months Ended |
Dec. 31, 2013 | |
STOCK-BASED COMPENSATION [Abstract] | ' |
Expected dividend yield | 0.00% |
Expected stock price volatility | 91.42% |
Risk-free interest rate | 1.53% |
Expected life of options | '5 years 9 months |
Grant date fair value | $0.09 |
RELATED_PARTY_TRANSACTIONS_Det
RELATED PARTY TRANSACTIONS (Details) (USD $) | 3 Months Ended | 12 Months Ended | 118 Months Ended | 121 Months Ended | 1 Months Ended | 12 Months Ended | 1 Months Ended | 1 Months Ended | 1 Months Ended | 1 Months Ended | 3 Months Ended | 12 Months Ended | 1 Months Ended | 12 Months Ended | 1 Months Ended | |||||||||||||||||
Dec. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Dec. 31, 2013 | Jun. 30, 2013 | Apr. 30, 2013 | Mar. 31, 2013 | Sep. 30, 2013 | Jun. 22, 2012 | 31-May-12 | Sep. 30, 2013 | Jun. 22, 2012 | 31-May-12 | Jun. 21, 2012 | Apr. 30, 2013 | Jun. 30, 2012 | 31-May-12 | 31-May-13 | Mar. 31, 2013 | Dec. 31, 2013 | Sep. 30, 2013 | Nov. 30, 2013 | Mar. 31, 2013 | Nov. 30, 2013 | Oct. 31, 2013 | Mar. 31, 2013 | Sep. 30, 2013 | Oct. 31, 2013 | Oct. 31, 2013 | Oct. 31, 2013 | |
ConRon Consulting Inc. [Member] | ConRon Consulting Inc. [Member] | John Preftokis [Member] | John Preftokis [Member] | John Preftokis [Member] | James Askew [Member] | James Askew [Member] | James Askew [Member] | John Connally III [Member] | John Connally III [Member] | John Connally III [Member] | John N. Seitz [Member] | John N. Seitz [Member] | John N. Seitz [Member] | John N. Seitz [Member] | Officers [Member] | Officers [Member] | Dr. Ronald Bain [Member] | Dr. Ronald Bain [Member] | Dr. Ronald Bain [Member] | Dr. Ronald Bain [Member] | Brady Rodgers [Member] | Brady Rodgers [Member] | Brady Rodgers [Member] | |||||||||
October 2014 [Member] | October 2015 [Member] | |||||||||||||||||||||||||||||||
Related Party Transaction [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Related parties payable | $366,480 | ' | $490,101 | $31,183 | $490,101 | $366,480 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Consulting agreement, term | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '1 year | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Shares issued | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 5,000,000 | 20,000,000 | ' | ' | 50,000,000 | ' | 10,000,000 | ' | 50,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 937,500 | ' | ' |
Stock issued for services | 221,472 | ' | 160,000 | 1,350,000 | 1,510,000 | 1,731,472 | ' | ' | ' | ' | 50,000 | 200,000 | ' | ' | 500,000 | ' | 100,000 | ' | ' | ' | 190,045,556 | ' | ' | ' | 10,045,555 | ' | ' | 40,045,555 | ' | 112,500 | ' | ' |
Common stock issued for consulting services, per share value | ' | ' | $0.12 | ' | $0.12 | ' | $0.12 | $0.12 | ' | ' | $0.01 | $0.01 | ' | ' | $0.01 | ' | ' | ' | $0.01 | ' | $0.01 | ' | $0.12 | ' | $0.01 | ' | ' | $0.01 | ' | ' | ' | ' |
Number of common stock shares that can be purchased through options granted | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2,000,000 | ' | ' |
Fair value of options vested | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 177,298 | ' | ' |
Stock-based compensation expense | 25,632 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 25,632 | ' | ' |
Vesting percentage of options granted | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 50.00% | 50.00% |
Proceeds for loan from shareholders | ' | ' | 6,700,000 | ' | 6,741,769 | 6,741,769 | ' | ' | ' | ' | ' | ' | ' | ' | 7,200 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 200,000 | ' | ' | ' |
Promissory note | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 7,200 | ' | ' | ' | ' | ' | ' | ' | 6,500,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Annual rate | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 5.00% | ' | ' | ' | ' | ' | 5.00% | ' | ' | ' |
Amount of note converted | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,200,000 | ' | ' | ' | ' | ' | ' | 180,408 | ' | ' | ' | ' | ' |
Conversion of notes payable, shares | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 10,000,000 | ' | ' | ' | ' | ' | ' | 1,503,403 | ' | ' | ' | ' | ' |
Minimum proceeds from equity financing event to trigger debt maturity | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 50,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt conversion, price per share | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $0.12 | ' | ' | ' | $0.12 | ' | $0.12 | $0.12 | ' | ' |
Repayments of related party debt | 20,000 | ' | ' | ' | 41,769 | 61,769 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 60,100 | ' | 20,000 | ' | ' | ' | ' | ' | ' |
Cash retainer | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 25,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Severance expense | ' | ' | ' | ' | ' | ' | ' | ' | 100,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Monthly consulting fee | ' | ' | ' | ' | ' | ' | ' | ' | 30,000 | 210,000 | ' | ' | ' | ' | ' | ' | ' | 10,000 | ' | ' | 40,000 | ' | 120,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Outstanding common stock owned, percent | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 10.00% | ' | 5.00% | ' | ' | ' | ' | ' | ' | 5.00% | ' | ' | ' | ' |
Base salary | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 300,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 360,000 | ' | ' | ' |
Signing bonus | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 100,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Prepaid expense | 348,711 | ' | 5,514 | 329,373 | 5,514 | 348,711 | ' | ' | ' | ' | ' | ' | 36,389 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Accrued expense | 162,042 | ' | 94,986 | ' | 94,986 | 162,042 | ' | ' | ' | ' | ' | ' | 13,611 | ' | ' | ' | ' | ' | ' | ' | ' | 120,000 | 94,319 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Accrued interest | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 67,723 | 94,319 | ' | ' | ' | ' | ' | 667 | ' | ' | ' |
Amount of vendor expenses paid by officers. | $56,480 | ' | ' | ' | ' | $56,480 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
COMMON_STOCKPAID_IN_CAPITAL_De
COMMON STOCK/PAID IN CAPITAL (Details) (USD $) | 1 Months Ended | 2 Months Ended | 3 Months Ended | 10 Months Ended | 12 Months Ended | 118 Months Ended | 121 Months Ended | 1 Months Ended | 1 Months Ended | 1 Months Ended | 1 Months Ended | 1 Months Ended | ||||||||||||||||||||||||
Oct. 31, 2013 | Jul. 31, 2013 | Jun. 30, 2013 | Apr. 30, 2013 | Sep. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2004 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2011 | Sep. 30, 2013 | Dec. 31, 2013 | Apr. 13, 2012 | Jun. 22, 2012 | 31-May-12 | Sep. 30, 2013 | 31-May-12 | Apr. 30, 2013 | 31-May-12 | Jun. 30, 2012 | 31-May-12 | Apr. 30, 2013 | 31-May-12 | Sep. 30, 2013 | Sep. 30, 2012 | 31-May-13 | Apr. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2013 | Sep. 30, 2013 | Oct. 31, 2013 | Apr. 30, 2013 | Oct. 31, 2013 | Oct. 31, 2013 | |
John Preftokis [Member] | John Preftokis [Member] | John Preftokis [Member] | James Askew [Member] | John Connally III [Member] | John Connally III [Member] | 2010 Private Placement [Member] | 2010 Private Placement [Member] | Third Party [Member] | Third Party [Member] | Third Party [Member] | Third Party [Member] | John N. Seitz [Member] | John N. Seitz [Member] | John N. Seitz [Member] | John N. Seitz [Member] | John N. Seitz [Member] | Dr. Ronald Bain [Member] | Dr. Ronald Bain [Member] | Brady Rodgers [Member] | Employees [Member] | ||||||||||||||||
Common Stock Issuance [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Shares to be issued, gross proceeds | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Stock subscription receivable | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Shares issued | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 5,000,000 | 20,000,000 | ' | 50,000,000 | 10,000,000 | 50,000,000 | 76,500,000 | 76,500,000 | 6,000,000 | 10,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | 937,500 | 1,620,000 |
Proceeds from issuance of common stock | ' | ' | ' | ' | ' | ' | 5,154,333 | ' | ' | 3,535,200 | 791,500 | ' | 4,559,437 | 9,713,770 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Shares issued for services, value | ' | ' | ' | ' | ' | ' | 221,472 | ' | ' | 160,000 | 1,350,000 | ' | 1,510,000 | 1,731,472 | ' | 50,000 | 200,000 | ' | 500,000 | 100,000 | ' | 765,000 | 765,000 | 60,000 | 100,000 | ' | ' | ' | ' | 190,045,556 | ' | ' | ' | ' | 112,500 | 194,400 |
Common shares issued for cash, shares | 42,952,773 | 10,000,000 | 833,333 | 16,666,667 | 8,043,334 | 47,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Common shares issued for cash | 5,154,333 | 12,000,000 | 100,000 | 2,000,000 | 965,200 | 470,000 | ' | ' | 34,737 | 3,535,200 | 785,000 | 88,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Price per share | $0.12 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Shares of stock issued for property | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 243,516,666 | ' | ' | ' | ' | 190,045,556 | ' | ' | ' | ' | 40,045,555 | ' | ' |
Value of stock issued for property | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2,435,167 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Common stock issued for consulting services, per share value | ' | ' | $0.12 | $0.12 | $0.12 | ' | ' | ' | ' | $0.12 | ' | ' | $0.12 | ' | ' | $0.01 | $0.01 | ' | $0.01 | ' | $0.01 | ' | ' | ' | $0.01 | ' | ' | ' | ' | $0.01 | ' | $0.12 | ' | ' | ' | ' |
Common Stock, shares authorized | ' | ' | ' | ' | 750,000,000 | ' | 750,000,000 | ' | ' | 750,000,000 | 750,000,000 | ' | 750,000,000 | 750,000,000 | 50,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Common Stock, par value per share | ' | ' | ' | ' | $0.00 | ' | $0.00 | ' | ' | $0.00 | $0.00 | ' | $0.00 | $0.00 | $0.01 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Consulting agreement, term | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '1 year | ' | ' | ' | ' | ' | ' |
Preferred Stock, shares authorized | ' | ' | ' | ' | 50,000,000 | ' | 50,000,000 | ' | ' | 50,000,000 | 50,000,000 | ' | 50,000,000 | 50,000,000 | 5,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Preferred Stock, par value per share | ' | ' | ' | ' | $0.00 | ' | $0.00 | ' | ' | $0.00 | $0.00 | ' | $0.00 | $0.00 | $0.01 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Prepaid expense | ' | ' | ' | ' | 5,514 | ' | 348,711 | ' | ' | 5,514 | 329,373 | ' | 5,514 | 348,711 | ' | ' | ' | 36,389 | ' | ' | ' | ' | ' | ' | ' | ' | 291,667 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Accrued expense | ' | ' | ' | ' | 94,986 | ' | 162,042 | ' | ' | 94,986 | ' | ' | 94,986 | 162,042 | ' | ' | ' | 13,611 | ' | ' | ' | ' | ' | ' | ' | 291,667 | 208,333 | ' | ' | ' | 120,000 | 94,319 | ' | ' | ' | ' |
Shares issued for conversion of debt | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,200,000 | ' | ' | ' | ' | 1,503,403 | ' | ' | ' |
Shares issued from conversion of convertible debt | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 10,000,000 | ' | ' | ' | ' | 180,408 | ' | ' | ' |
Note payable, conversion price | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $0.12 | $0.12 | ' | $0.12 | ' |
Fair value of options granted | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 177,298 | ' |
Exploration costs recorded as general and administrative expense | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 12,816 | ' |
Exploration costs capitalized during the period | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $12,816 | ' |
Number of common stock shares that can be purchased through options granted | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2,000,000 | ' |
COMMITMENTS_AND_CONTINGENCIES_
COMMITMENTS AND CONTINGENCIES (Details) (USD $) | 1 Months Ended | 3 Months Ended | 12 Months Ended | 121 Months Ended | 1 Months Ended | |||||
Aug. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2013 | Jul. 31, 2013 | Aug. 31, 2013 | Jul. 31, 2013 | Aug. 31, 2013 | Jul. 31, 2013 | |
First Period [Member] | First Period [Member] | Second Period [Member] | Second Period [Member] | |||||||
Purchase Commitment, Excluding Long-term Commitment [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Cash paid to seismic company | ' | ' | ' | $2,135,500 | ' | ' | ' | ' | ' | ' |
Cash paid to escrow account | ' | ' | ' | 2,500,000 | ' | ' | ' | ' | ' | ' |
Escrow amount to be released to vendor in the third quarter 2014 | ' | ' | ' | 2,000,000 | ' | ' | ' | ' | ' | ' |
Remaining amount obligated to escrow by end of 2014 | ' | ' | ' | 1,500,000 | ' | ' | ' | ' | ' | ' |
Payments made through September 30, 2013 | ' | ' | ' | 2,006,130 | ' | ' | ' | ' | ' | ' |
Payment due during April 2014 | ' | ' | ' | 1,003,065 | ' | ' | ' | ' | ' | ' |
Payment due during April 2015 | ' | ' | ' | 1,003,065 | ' | ' | ' | ' | ' | ' |
Agreement monthly amount | ' | ' | ' | ' | ' | ' | 11,000 | 20,200 | 22,000 | 20,500 |
Agreement total principal amount | 44,000 | 33,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Security deposit | ' | ' | ' | ' | ' | 18,760 | ' | ' | ' | ' |
Prepaid Asset Financed by Note Payable | ' | 114,748 | ' | ' | 114,748 | ' | ' | ' | ' | ' |
Note Payable | ' | $94,273 | ' | ' | $94,273 | ' | ' | ' | ' | ' |
SUBSEQUENT_EVENTS_Details
SUBSEQUENT EVENTS (Details) (USD $) | 1 Months Ended | 2 Months Ended | 10 Months Ended | 12 Months Ended | |||||||
Oct. 31, 2013 | Jul. 31, 2013 | Jun. 30, 2013 | Apr. 30, 2013 | Sep. 30, 2013 | Mar. 31, 2013 | Sep. 30, 2004 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2011 | Dec. 31, 2013 | |
Subsequent Event [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Common shares issued for cash, shares | 42,952,773 | 10,000,000 | 833,333 | 16,666,667 | 8,043,334 | 47,000,000 | ' | ' | ' | ' | ' |
Stock price per share | $0.12 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Common shares issued for cash | $5,154,333 | $12,000,000 | $100,000 | $2,000,000 | $965,200 | $470,000 | $34,737 | $3,535,200 | $785,000 | $88,000 | ' |
Option amount | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2,000,000 |
Exercise price | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $0.12 |
Three Employees [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Subsequent Event [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Common shares issued for cash, shares | 1,620,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Dr. Ronald Bain [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Subsequent Event [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Common shares issued for cash, shares | 1,503,403 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Common shares issued for cash | 180,408 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Brady Rodgers [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Subsequent Event [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Common shares issued for cash, shares | 937,500 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Common shares issued for cash | $112,500 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Option amount | 2,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Option term | '10 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Exercise price | $0.12 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Vesting rate | 50.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |