Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Dec. 31, 2017 | Feb. 14, 2018 | |
Document And Entity Information | ||
Entity Registrant Name | GULFSLOPE ENERGY, INC. | |
Entity Central Index Key | 1,341,726 | |
Document Type | 10-Q | |
Trading Symbol | GSPE | |
Document Period End Date | Dec. 31, 2017 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --09-30 | |
Entity a Well-known Seasoned Issuer | No | |
Entity a Voluntary Filer | No | |
Entity's Reporting Status Current | Yes | |
Entity Filer Category | Smaller Reporting Company | |
Entity Common Stock, Shares Outstanding | 778,526,625 | |
Document Fiscal Period Focus | Q1 | |
Document Fiscal Year Focus | 2,018 |
Condensed Balance Sheets (Unaud
Condensed Balance Sheets (Unaudited) - USD ($) | Dec. 31, 2017 | Sep. 30, 2017 |
Current Assets | ||
Cash | $ 108,483 | $ 6,426 |
Prepaid Expenses and Other Current Assets | 158,493 | 40,573 |
Total Current Assets | 266,976 | 46,999 |
Property and Equipment, Net of Depreciation | 1,310 | 3,484 |
Oil and Natural Gas Properties, Full Cost Method of Accounting, Unproved Properties | 1,817,587 | 1,887,879 |
Total Non-Current Assets | 1,818,897 | 1,891,363 |
Total Assets | 2,085,873 | 1,938,362 |
Current Liabilities | ||
Accounts Payable | 488,550 | 476,244 |
Related Party Payable | 304,374 | 298,458 |
Accrued Interest Payable | 1,455,793 | 1,318,188 |
Accrued Expenses and Other Payables | 1,321,927 | 1,321,927 |
Loans from Related Parties | 9,164,500 | 9,155,581 |
Note Payable | 130,934 | 3,690 |
Convertible Promissory Notes Payable | 659,363 | 669,419 |
Stock Payable | 11,605 | 11,605 |
Total Current Liabilities | 13,537,046 | 13,255,112 |
Total Liabilities | 13,537,046 | 13,255,112 |
Stockholders' Deficit | ||
Preferred Stock; par value ($0.001); Authorized 50,000,000 shares none issued or outstanding | ||
Common Stock; par value ($0.001); Authorized 975,000,000 shares; issued and outstanding 698,526,625 and 692,196,625, respectively | 698,526 | 692,196 |
Additional Paid-in Capital | 27,586,227 | 27,212,577 |
Accumulated Deficit | (39,735,926) | (39,221,523) |
Total Stockholders' Deficit | (11,451,173) | (11,316,750) |
Total Liabilities and Stockholders' Deficit | $ 2,085,873 | $ 1,938,362 |
Condensed Balance Sheets (Unau3
Condensed Balance Sheets (Unaudited) (Parenthetical) - $ / shares | Dec. 31, 2017 | Sep. 30, 2017 |
Statement of Financial Position [Abstract] | ||
Preferred Stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Preferred Stock, authorized | 50,000,000 | 50,000,000 |
Preferred Stock, issued | 0 | 0 |
Preferred Stock, outstanding | 0 | 0 |
Common Stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Common Stock, authorized | 975,000,000 | 975,000,000 |
Common Stock, issued | 698,526,625 | 692,196,625 |
Common Stock, outstanding | 698,526,625 | 692,196,625 |
Condensed Statements of Operati
Condensed Statements of Operations (Unaudited) - USD ($) | 3 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Income Statement [Abstract] | ||
General & Administrative Expenses | $ 289,327 | $ 219,928 |
Net Loss from Operations | (289,327) | (219,928) |
Other Income/(Expenses): | ||
Interest Expense | (225,077) | (332,835) |
Net Loss Before Income Taxes | (514,404) | (552,763) |
Net Loss | $ (514,404) | $ (552,763) |
Loss Per Share - Basic and Diluted (in dollars per share) | $ 0 | $ 0 |
Weighted Average Shares Outstanding - Basic and Diluted (in shares) | 696,744,886 | 682,407,660 |
Condensed Statements of Cash Fl
Condensed Statements of Cash Flows (Unaudited) - USD ($) | 3 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
OPERATING ACTIVITIES | ||
Net Loss | $ (514,404) | $ (552,763) |
Adjustments to reconcile net loss to net cash From Operating Activities: | ||
Depreciation | 2,174 | 7,568 |
Stock Based Compensation | 65,506 | |
Debt Discount Amortization | 78,864 | 205,430 |
Changes in Operating Assets and Liabilities | ||
(Increase)/Decrease in Accounts Receivable | 63,147 | |
(Increase)/Decrease in Prepaid Expenses | 38,798 | 22,167 |
Increase/(Decrease) in Accounts Payable | 3,067 | 3,462 |
Increase/(Decrease) in Related Party Payable | 5,916 | 14,880 |
Increase/(Decrease) in Accrued Interest | 144,205 | 126,176 |
Net Cash From Operating Activities | (175,874) | (109,933) |
INVESTING ACTIVITIES | ||
Investments in Oil and Gas Properties | (183,185) | (58,929) |
Proceeds From Sale of Working Interest | 290,589 | |
Net Cash From Investing Activities | 107,404 | (58,929) |
FINANCING ACTIVITIES | ||
Proceeds from Related Party Loans | 143,000 | |
Proceeds from Convertible Promissory Notes and Warrants | 200,000 | 50,000 |
Payments on Note Payable | (29,473) | (36,448) |
Net Cash From Financing Activities | 170,527 | 156,552 |
Net Increase/(Decrease) in Cash | 102,057 | (12,310) |
Beginning Cash Balance | 6,426 | 64,114 |
Ending Cash Balance | 108,483 | 51,804 |
Supplemental Schedule of Cash Flow Activities | ||
Cash Paid for Interest | 2,008 | 2,015 |
Non-Cash Financing and Investing Activities | ||
Prepaid Asset Financed by Note Payable | 156,718 | 159,188 |
Capital Expenditures Included in Accounts Payable | 9,238 | $ 5,463 |
Stock-Based Compensation Capitalized to Unproved Properties | $ 27,875 |
ORGANIZATION AND NATURE OF BUSI
ORGANIZATION AND NATURE OF BUSINESS | 3 Months Ended |
Dec. 31, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
ORGANIZATION AND NATURE OF BUSINESS | NOTE 1 – ORGANIZATION AND NATURE OF BUSINESS GulfSlope Energy, Inc. (the “Company,” “GulfSlope,” “our” and words of similar import), a Delaware corporation, is an independent crude oil and natural gas exploration and production company whose interests are concentrated in the United States Gulf of Mexico (“GOM”) federal waters offshore Louisiana. The Company currently has under lease twelve federal Outer Continental Shelf blocks (referred to as “prospect,” “portfolio” or “leases” in this Report). Since March 2013, we have been singularly focused on identifying high-potential oil and gas prospects located on the shelf in the U.S. GOM. We have licensed 3-D seismic data covering approximately 2.2 million acres and have evaluated this data using advanced interpretation technologies. As a result of these analyses, we have identified and acquired leases on multiple prospects that we believe may contain economically recoverable hydrocarbon deposits, and we plan to continue to conduct more refined analyses of our prospects as well as target additional lease and property acquisitions. We have given preference to areas with water depths of 450 feet or less where production infrastructure already exists, which will allow for any discoveries to be developed rapidly and cost effectively with the goal to reduce economic risk while increasing returns. We have nine prospects currently under lease that we deem technically complete and ready to drill. Recent actions of the Bureau of Ocean Energy Management (“BOEM”) have reduced the royalty rate for leases acquired in future lease sales in water depths of less than 200 meters (approximately 656 feet) from 18.75% to 12.5%, which further enhances the economics for the drilling of any leases acquired after August 2017 in these water depths. We currently hold one lease to which this reduced rate applies. We expect that drilling activities on two of our prospects will commence in mid-2018. As of December 31, 2017, we have no production or proved reserves. |
SIGNIFICANT ACCOUNTING POLICIES
SIGNIFICANT ACCOUNTING POLICIES | 3 Months Ended |
Dec. 31, 2017 | |
Accounting Policies [Abstract] | |
SIGNIFICANT ACCOUNTING POLICIES | NOTE 2 – SIGNIFICANT ACCOUNTING POLICIES The condensed financial statements included herein are unaudited. However, these condensed financial statements include all adjustments (consisting of normal recurring adjustments), which, in the opinion of management are necessary for a fair presentation of financial position, results of operations and cash flows for the interim periods. The results of operations for interim periods are not necessarily indicative of the results to be expected for an entire year. The preparation of financial statements in accordance with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the amounts reported in the Company’s condensed financial statements and accompanying notes. Actual results could differ materially from those estimates. Certain information, accounting policies, and footnote disclosures normally included in the financial statements prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) have been omitted 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, 2017, which were included in the Company’s Annual Report on Form 10-K for the fiscal year ended September 30, 2017 and filed with the Securities and Exchange Commission on December 29, 2017. 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. Liquidity/Going Concern The Company has incurred accumulated losses as of December 31, 2017 of $39.7 million. Further losses are anticipated in developing our business. As a result, there exists substantial doubt about our ability to continue as a going concern. As of December 31, 2017, we had $0.1 million of unrestricted cash on hand. The Company estimates that it will need to raise a minimum of $10 million to meet its obligations and planned expenditures through February 2019. The Company plans to finance its operations through the issuance of equity and debt offerings. Our policy has been to periodically raise funds through the sale of equity on a limited basis, to avoid undue dilution while at the early stages of execution of our business plan. Short term needs have been historically funded through loans from executive management and other related parties. There are no assurances that financing will be available with acceptable terms, if at all. If the Company is not successful in obtaining adequate financing, operations would need to be curtailed or ceased, including those associated with being a public reporting company. The financial statements do not include any adjustments that might result from the outcome of this uncertainty. Full Cost Method The Company uses the full cost method of accounting for its oil and gas exploration and development activities as defined by the Securities and Exchange Commission (“SEC”). Under the full cost method of accounting, all costs associated with successful and unsuccessful exploration and development activities are capitalized on a country-by-country basis into a single cost center (“full cost pool”). Such costs include property acquisition costs, geological and geophysical (“G&G”) costs, carrying charges on non-producing properties, costs of drilling both productive and non-productive wells and overhead charges directly related to acquisition, exploration and development activities. Proceeds from property sales will generally be credited to the full cost pool, with no gain or loss recognized, unless such a sale would significantly alter the relationship between capitalized costs and the proved reserves attributable to these costs. A significant alteration would typically involve a sale of 25% or more of the proved reserves related to a single full cost pool. Proved properties are amortized on a country-by-country basis using the units of production method (UOP). The UOP calculation multiplies the percentage of estimated proved reserves produced each quarter by the cost of those reserves. The amortization base in the UOP calculation includes the sum of proved property, net of accumulated depreciation, depletion and amortization (DD&A), estimated future development costs (future costs to access and develop proved reserves), and asset retirement costs, less related salvage value. The costs of unproved properties and related capitalized costs (such as G&G costs) are withheld from the amortization calculation until such time as they are either developed or abandoned. Unproved properties and properties under development are reviewed for impairment at least quarterly and are determined through an evaluation considering, among other factors, seismic data, requirements to relinquish acreage, drilling results, remaining time in the commitment period, remaining capital plan, and political, economic, and market conditions. In countries where proved reserves exist, exploratory drilling costs associated with dry holes are transferred to proved properties immediately upon determination that a well is dry and amortized accordingly. In countries where a reserve base has not yet been established, impairments are charged to earnings. 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. As of December 31, 2017, the Company’s oil and gas properties consisted of capitalized exploration and acquisition costs for unproved properties and no proved reserves. Basic and Dilutive Earnings Per Share Basic (loss) per share (“EPS”) is computed by dividing net income (loss) (the numerator) by the weighted average number of common shares outstanding for the period (denominator). Diluted EPS is computed by dividing net income (loss) by the weighted average number of common shares and potential common shares outstanding (if dilutive) during each period. Potential common shares include stock options, warrants, and 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, 2017 and 2016, the potentially dilutive shares are anti-dilutive and are thus not added into the loss per share calculations. As of December 31, 2017 and 2016, there were 175,050,492 and 118,268,823 potentially dilutive shares, respectively. Recent Accounting Pronouncements In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606). On February 25, 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842) In March 2016, the FASB issued Accounting Standards Update (“ASU”) 2016-09, “Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting” (“ASU 2016-09”) In March 2016, the FASB issued ASU No. 2016-06, Derivatives and Hedging (Topic 815): Contingent Put and Call Options in Debt Instruments (a consensus of the Emerging Issues Task Force) The Company has evaluated all other recent accounting pronouncements and believes that none of them will have a significant effect on the Company’s financial statements. Recent Tax and Financial Legislation The Tax Cuts and Jobs Act of 2017 was signed into law on December 22, 2017 by President Donald J. Trump. The law includes significant changes to the U.S. corporate income tax system, including a Federal corporate rate reduction from 35% to 21%, limitations on the deductibility of interest expense and executive compensation, and the transition of U.S. international taxation from a worldwide tax system to a territorial tax system. We are in the process of analyzing the final legislation and determining an estimate of the financial impact. |
OIL AND NATURAL GAS PROPERTIES
OIL AND NATURAL GAS PROPERTIES | 3 Months Ended |
Dec. 31, 2017 | |
Oil and Gas Exploration and Production Industries Disclosures [Abstract] | |
OIL AND NATURAL GAS PROPERTIES | NOTE 3 – OIL AND NATURAL GAS PROPERTIES In March 2014 and 2015, the Company was awarded a total of 23 Outer Continental Shelf blocks in the Central Gulf of Mexico. During the year ended September 30, 2016, the Company relinquished six of these lease blocks. The capitalized lease costs of $2,610,678 associated with these blocks were recorded as impairment of oil and natural gas properties. The Company also deducted $280,000 as an impairment of certain capitalized exploration costs that were directly allocable to the relinquished blocks, for a total impairment deduction of $2,890,678 for the year ended September 30, 2016. During the year ended September 30, 2017, the Company relinquished six lease blocks. The capitalized lease costs of $2,054,212 associated with these blocks were recorded as impairment of oil and natural gas properties. The Company also deducted $1,262,000 as an impairment of certain capitalized exploration costs that were directly allocable to the 2017 relinquished blocks, for a total impairment deduction of $3,316,212. In September 2017, the Company was notified by Bureau of Ocean Energy Management (“BOEM”) that its August bid for an additional Outer Continental Shelf Block was accepted, and the block was awarded in October 2017. As of December 31, 2017 the Company holds twelve Outer Continental Shelf blocks. The Company paid $632,665 in gross annual lease rental payments to the BOEM for the year ended September 30, 2017. The Company’s share of these amounts are included in unproved properties. In August 2017, the Company competitively bid on one block in the Central Gulf of Mexico Lease Sale 249 conducted by BOEM. The Company was the high bidder on the block and paid $26,398, which represents 20% of the total lease bonus amount. On September he Company’s bid was accepted. After payment in October 2017 of, $140,591, which represents the remaining 80% lease bonus and first year rentals, the Company was awarded the lease block in October 2017. In August 2017, the Company entered into a letter agreement with Texas South Energy, Inc. (“TSE” or “Texas South”) that sets out the terms of a farm-out agreement for the Company’s Tau prospect. In exchange for $166,989, TSE will acquire an undivided 20% interest in the prospect. Through December 31, 2017, GulfSlope had received $166,989 in payments from TSE. In accordance with full cost requirements, the Company recorded the proceeds from the transaction as an adjustment to the capitalized costs of its oil & gas properties with no gain or loss recognition. In October 2017, the Company executed the second amendment to the March 2014 farm-out agreement with Texas South under which Texas South will acquire 20% of Gulfslope’s interest in two prospects for $329,062. $150,000 of this amount has been paid through December 31, 2017. For the year ended September 30, 2017, the Company incurred $172,094 in consulting fees, salaries and benefits, $195,125 in stock option costs associated with geoscientists, and $53,014 associated with technological infrastructure and third party hosting services. The Company capitalized these G&G costs because the Company owned specific unevaluated properties that these costs relate to. These capitalized amounts when added to the amount paid in 2017 for lease rental and lease acquisition payments of $402,766 and netted with the 2017 receipts from working interest portion of annual rentals of $118,679 and the amount received through September 30, 2017 for sale of working interest of $26,400 as well as the relinquished leases impairment amount of $3,316,212 results in unproved oil and gas properties of $1,887,879 reflected on the Company’s balance sheet at September 30, 2017. For the quarter ended December 31, 2017, the Company incurred $68,631 in consulting fees and salaries and benefits associated with geoscientists, and $11,075 associated with technological infrastructure and third party hosting services. The Company capitalized these G&G costs because the Company owned specific unevaluated properties that these costs relate to. These amounts when added to unproved properties at September 30, 2017 and netted with the receipts to date from the sale of working interest result in $1,817,587 unproved properties at December 31, 2017. In September 2017, GulfSlope Energy, Inc. announced that they had executed an exclusive letter of intent (“LOI”) with a large international oil and gas company (the “Partner”) and with Texas South to jointly drill and develop their oil and gas prospects located offshore Gulf of Mexico. In January 2018 the Company entered into a strategic partnership with Delek Group, Ltd, and Texas South and executed a participation agreement for a multi-phase exploration program. Under the terms of the Agreement, the Parties have committed to drill the Company’s “Canoe” and “Tau” prospects (the “Initial Phase”) with Delek having the option to participate in two additional two-well drilling phases and a final, three-well drilling phase (collectively, the “Phases”). In each Phase, Delek will earn a 75% working interest upon paying 90% of the exploratory costs associated with drilling each exploratory well. The Company will retain a 20% working interest while paying 8% of the exploratory costs associated with drilling each well. In addition, Delek will pay the Company approximately $1.1 million in cash for each Prospect when the exploration plan is filed with BOEM and/or BSEE. Also, each Party will be responsible for its pro rata share (based on working interest) of delay rentals associated with the Prospects. The Company will be the Operator during exploratory drilling of a Prospect, however, subsequent to a commercial discovery, Delek will have the right to become the Operator. Delek will have the right to terminate this Agreement at the conclusion of any drilling Phase. Delek will also have the option to purchase up to 5% of the Company’s common stock, par value $0.001 per share (the “Common Stock”), upon fulfilling its obligation for each Phase (maximum of 20% in the aggregate) at a price per share equal to a 10% discount to the 30-day weighted average closing price for the Common Stock preceding the acquisition. This option will expire January 8, 2020. |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 3 Months Ended |
Dec. 31, 2017 | |
Related Party Transactions [Abstract] | |
RELATED PARTY TRANSACTIONS | NOTE 4 – RELATED PARTY TRANSACTIONS 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. Between June of 2014 and December 2015, the Company entered into promissory notes whereby it borrowed a total of $2,410,000 from Mr. Seitz. The notes are not convertible, due on demand and bear interest at a rate of 5% per annum. During January through September 2017, the Company entered into promissory notes whereby it borrowed a total of $965,500 from Mr. Seitz. The notes are due on demand, bear interest at the rate of 5% per annum, and the outstanding principal and interest is convertible at the option of the holder into securities issued by the Company in a future offering, at the same price and terms received by unaffiliated investors. As of December 31, 2017 the total amount owed to John Seitz, our CEO, is $8,675,500. There was a total of $1,312,139 of unpaid interest associated with these loans included in accrued interest within our balance sheet as of December 31, 2017. From August 2015 through February 2016 the Company entered into promissory notes whereby it borrowed a total of $267,000 from Dr. Ronald Bain, its current president and chief operating officer, and his affiliate ConRon Consulting, Inc. These notes are not convertible, due on demand and bear interest at the rate of 5% per annum. As of December 31, 2017, the total amount owed to Dr. Bain and his affiliate was $267,000. There was a total of $31,583 of accrued interest associated with these loans included within our balance sheet as of December 31, 2017. In June of 2016, Dr. Ronald Bain also entered into a $92,000 convertible promissory note with associated warrants (“Bridge Financing”) under the same terms received by other investors (see Note 5). During March 2016, the Company entered into a promissory note for a total of $80,000 with the Morris Family Partnership, L.P., an affiliate of Mr. Paul Morris, a director of the Company. The note is due on demand and bears interest at the rate of 5% per annum and the principal amount is convertible at the option of the holder into securities issued by the Company in a future offering, at the same price and terms received by investors. The $80,000 promissory note was converted into the Bridge Financing (see Note 5). On November 15, 2016, a family member of the CEO, a related party, entered into a $50,000 convertible promissory note with associated warrants (“Bridge Financing”) under the same terms received by other investors (see Note 5). Domenica Seitz CPA, related to John Seitz, has provided accounting consulting services to the Company. During the three month period ended December 31, 2017, the services provided were valued at $5,915. The Company has accrued these amounts, and they have been reflected in the December 31, 2017 financial statements. John Seitz has not received a salary since May 31, 2013, the date he commenced serving as our CEO and accordingly, no amount has been accrued on our financial statements. Kevin Bain, son of Dr. Bain, is a geoscientist and an employee of the Company. |
BRIDGE FINANCING - CONVERTIBLE
BRIDGE FINANCING - CONVERTIBLE PROMISSORY NOTES WITH ASSOCIATED WARRANTS | 3 Months Ended |
Dec. 31, 2017 | |
Bridge Financing - Convertible Promissory Notes With Associated Warrants | |
BRIDGE FINANCING - CONVERTIBLE PROMISSORY NOTES WITH ASSOCIATED WARRANTS | NOTE 5 – BRIDGE FINANCING – CONVERTIBLE PROMISSORY NOTES WITH ASSOCIATED WARRANTS Between June and November 2016, the Company issued eleven convertible promissory notes with associated warrants in a private placement to accredited investors for total gross proceeds of $837,000. Three of the notes were to related parties for proceeds totaling $222,000, including the extinguishment of $70,000 worth of related party payables. The convertible notes have a maturity of one year, bear an annual interest rate of 8% and can be converted at the option of the holder at a conversion price of $0.025 per share. In addition, the convertible notes will automatically convert if a qualified equity financing of at least $3 million occurs before maturity and such mandatory conversion price will equal the effective price per share paid in the qualified equity financing. In addition to the convertible notes, the investors received 27.9 million warrants (7.4 million to the above mentioned related parties) with an exercise price of $0.03 and a term of the earlier of three years or upon a change of control. The Company evaluated the various financial instruments under ASC 480 and ASC 815 and determined no instruments or features required fair value accounting. Therefore, in accordance with ASC 470-20-25-2, the Company allocated the proceeds between the convertible notes and warrants based on their relative fair values. This resulted in an allocation of $452,422 to the warrants and $384,368 to the convertible notes. After such allocation, the Company evaluated the conversion option to discern whether a beneficial conversion feature existed based upon comparing the effective exercise price of the convertible notes to the fair value of the shares they are convertible into. The Company concluded a beneficial conversion feature existed and measured such beneficial conversion feature at $384,368. Accordingly, the debt discount associated with these notes was $836,790. Such discount was amortized using the effective interest rate method over the term (one year) of the convertible notes. For the quarter ended December 31, 2017 the amortization of this discount and the discount associated with the extension warrants (see below) totaled $26,970, and is included in interest expense in the statement of operations. Accrued interest expense for the quarter ended December 31, 2017 was $16,740. Cumulative accrued interest expense at December 31, 2017 was $98,804. Upon maturity of eight of the eleven promissory notes in June 2017, the Company issued 3,225,000 extension warrants (equal to 25% of the original warrant amount) to the holders of the notes to extend the terms to January 15, 2018. The Company evaluated this modification including considering the fair value of the warrants issued and concluded that extinguishment accounting was required as the present value of future cash flows from the new note, including the fair value of the warrants issued to extend, exceeded the present value of future cash flows of the old note by more than 10%. The fair value of the warrants was deemed to be $50,701 and such amount was recognized immediately as a loss on extinguishment of debt. The fair value of the warrants was determined using the Black-Scholes option pricing model. In July and August 2017, the three remaining promissory notes issued in July, August and November 2016 were extended until January 15, 2018 and issued 3,750,000 extension warrants (equal to 25% of the original warrant amount). The Company evaluated this transaction including considering the fair value of the warrants issued and concluded that modification accounting was required as the present value of future cash flows from the new note, including the fair value of the warrants issued to extend, are less than 10% of the present value of future cash flows of the old note. When an instrument is modified, any incremental increase in value (in this case the warrants) should be added to the discount of the notes and such discount should be amortized to interest expense using the effective interest rate method over the new remaining life of the note. The fair value of the warrants, $38,946, was determined using the Black-Scholes option pricing model. ☐ On December 28, 2016, the Company issued a convertible promissory note with 500,000 shares of restricted stock and 550,000 warrants in a private placement to an accredited investor for $50,000 in proceeds. The warrants have a five year term and an exercise price of $0.10. The promissory note has a face value of $55,555, which includes 10% original issue discount (“OID”) and incurs a one-time upfront interest charge of six percent. The holder of the note has the option to convert the note into shares of common stock at a conversion price of $0.02 per share. Approximately $450,000 of additional funding is available under similar terms if the Company and the lender mutually agree to further tranches. The Company evaluated the various financial instruments under ASC 480 and ASC 815 and determined no material instruments or features required fair value accounting. Therefore, in accordance with ASC 470-20-25-2, the Company allocated the proceeds between the convertible note, restricted common stock, and warrants based on their relative fair values. This resulted in an allocation of $8,460 to the restricted stock, $7,969 to the warrants and $33,571 to the convertible note. After such allocation, the Company evaluated the conversion option to discern whether a beneficial conversion feature existed based upon comparing the effective exercise price of the convertible note to the fair value of the shares it is convertible into. The Company concluded a beneficial conversion feature existed and measured such beneficial conversion feature at $33,571. Accordingly, at December 28, 2016, the debt discount associated with these notes was $55,555. Such discount was amortized using the effective interest rate method over the term (seven months) of the convertible note. For the year ended September 30, 2017 amortization of this discount totaled $55,555 and is included in interest expense in the statement of operations. Accrued interest expense for the year ended September 30, 2017 is $3,333. The note, related OID and accrued interest were converted into approximately 5.5 million shares of GulfSlope Energy common stock in a series of conversions beginning on July 10, 2017 and ending with a conversion on September 18, 2017 on which date all were paid in full. On March 14, 2017, the Company issued a convertible promissory note with 1,000,000 shares of restricted stock and 1,100,000 warrants in a private placement to an accredited investor for $100,000 in proceeds. The warrants have a five-year term and an exercise price of $0.10. The promissory note has a face value of $111,111, which includes 10% original issue discount (“OID”), and incurs a one-time upfront interest charge of six percent. The holder of the note has the option to convert the note into shares of common stock at a conversion price of $0.02 per share. Approximately $350,000 of additional funding is available under similar terms if the Company and the lender mutually agree to further tranches. The Company evaluated the various financial instruments under ASC 480 and ASC 815 and determined no material instruments or features required fair value accounting. Therefore, in accordance with ASC 470-20-25-2, the Company allocated the proceeds between the convertible note, restricted common stock, and warrants based on their relative fair values. This resulted in an allocation of $17,250 to the restricted stock, $14,051 to the warrants and $68,699 to the convertible note. After such allocation, the Company evaluated the conversion option to discern whether a beneficial conversion feature existed based upon comparing the effective exercise price of the convertible note to the fair value of the shares it is convertible into. The Company concluded a beneficial conversion feature existed and measured such beneficial conversion feature at $68,699. Accordingly, at March 14, 2017, the debt discount associated with these notes was $111,111. Such discount will be amortized using the effective interest rate method over the term (seven months) of the convertible note. For the year ended September 30, 2017 amortization of this discount totaled $105,841 and is included in interest expense in the statement of operations. Accrued interest expense for the year ended September 30, 2017 is $6,666. In September 2017, $30,000 was converted into 1.5 million shares of stock, leaving a note balance of $81,111 at September 30, 2017. In October 2017, the note balance of $81,111 and accrued interest of $6,600 were converted into approximately 4.3 million shares of GulfSlope Energy common stock. During the quarter ended December 31, 2017 the note and all accrued interest were paid in full. On October 16, 2017, the Company issued a convertible promissory note with 1,000,000 shares of restricted stock and 1,100,000 warrants in a private placement to an accredited investor for $100,000 in proceeds. The warrants have a five-year term and an exercise price of $0.10. The promissory note has a face value of $110,000, which includes 10% original issue discount (“OID”), and incurs a one-time upfront interest charge of six percent. The holder of the note has the option to convert the note into shares of common stock at a conversion price of $0.02 per share. Approximately $250,000 of additional funding is available under similar terms if the Company and the lender mutually agree to further tranches. The Company evaluated the various financial instruments under ASC 480 and ASC 815 and determined no material instruments or features required fair value accounting. Therefore, in accordance with ASC 470-20-25-2, the Company allocated the proceeds between the convertible note, restricted common stock, and warrants based on their relative fair values. This resulted in an allocation of $21,287 to the restricted stock, $20,175 to the warrants and $58,538 to the convertible note. After such allocation, the Company evaluated the conversion option to discern whether a beneficial conversion feature existed based upon comparing the effective exercise price of the convertible note to the fair value of the shares it is convertible into. The Company concluded a beneficial conversion feature existed and measured such beneficial conversion feature at $58,538. Accordingly, at October 16, 2017, the debt discount associated with these notes was $110,000. Such discount will be amortized using the effective interest rate method over the term (seven months) of the convertible note. For the quarter ended December 31, 2017 amortization of this discount totaled $39,434 and is included in interest expense in the statement of operations. Accrued interest expense for the quarter ended December 31, 2017 is $6,600. On December 15, 2017, the Company issued a convertible promissory note with 1,000,000 shares of restricted stock and 1,100,000 warrants in a private placement to an accredited investor for $100,000 in proceeds. The warrants have a five-year term and an exercise price of $0.10. The promissory note has a face value of $110,000, which includes 10% original issue discount (“OID”), and incurs a one-time upfront interest charge of six percent. The holder of the note has the option to convert the note into shares of common stock at a conversion price of $0.02 per share. Approximately $150,000 of additional funding is available under similar terms if the Company and the lender mutually agree to further tranches. The Company evaluated the various financial instruments under ASC 480 and ASC 815 and determined no material instruments or features required fair value accounting. Therefore, in accordance with ASC 470-20-25-2, the Company allocated the proceeds between the convertible note, restricted common stock, and warrants based on their relative fair values. This resulted in an allocation of $27,807 to the restricted stock, $27,212 to the warrants and $44,981 to the convertible note. After such allocation, the Company evaluated the conversion option to discern whether a beneficial conversion feature existed based upon comparing the effective exercise price of the convertible note to the fair value of the shares it is convertible into. The Company concluded a beneficial conversion feature existed and measured such beneficial conversion feature at $44,981. Accordingly, at December 15, 2017, the debt discount associated with these notes was $110,000. Such discount will be amortized using the effective interest rate method over the term (seven months) of the convertible note. For the quarter ended December 31, 2017 amortization of this discount totaled $8,302 and is included in interest expense in the statement of operations. Accrued interest expense for the quarter ended December 31, 2017 is $6,600. |
COMMON STOCK_PAID IN CAPITAL
COMMON STOCK/PAID IN CAPITAL | 3 Months Ended |
Dec. 31, 2017 | |
Stockholders' Equity Note [Abstract] | |
COMMON STOCK/PAID IN CAPITAL | NOTE 6 – COMMON STOCK/PAID IN CAPITAL As discussed in Note 5, between June and November 2016, the Company issued 27.9 million warrants in conjunction with convertible notes payable. The warrants have an exercise price of $0.03 and a term of the earlier of 3 years or upon a change of control. Based upon the allocation of proceeds between the convertible notes payable and the warrants, approximately $452,422 was allocated to the warrants. During June through August 2017, the maturity date of all of the Bridge Financing Notes was extended to January 15, 2018 in exchange for the issuance of 25% additional warrants. The warrants have an exercise price of $0.03 and the same expiration date (three years from original transaction) as the original warrants. The fair value of the warrants were determined using the Black Scholes valuation model with the following key assumptions: June 2016 July 2016 August 2016 November 2016 June 2017 July 2017 August 2017 Warrants Issued 12.9 million 10.0 million 3.3 million 1.7 million 3.2 million 2.5 million 1.25 million Stock Price: $ 0.054 (1) $ 0.040 (1) $ 0.032 (1) $ 0.029 (1) $ 0.025 (1) $ 0.019 (1) $ 0.016 (1) Exercise Price $ 0.03 $ 0.03 $ 0.03 $ 0.03 $ 0.03 $ 0.03 $ 0.03 Term 3 years 3 years 3 years 3 years 2 years 2 years 2 years Risk Free Rate .87 % .80 % .88 % 1.28 % 1.35 % 1.35 % 1.33 % Volatility 135 % 138 % 137 % 131 % 135 % 136 % 135 % (1) Fair market value on the date of agreement During the period December 2016 through December 2017 the Company issued 3,500,000 shares of restricted stock to Lucas Hoppel as part of financing transactions (see Note 5). As discussed in Note 5, in December 2016, the Company issued 550,000 warrants in conjunction with a convertible note payable. The warrants have an exercise price of $0.10 and a term of the earlier of 5 years or upon a change of control. Based upon the allocation of proceeds between the convertible note payable and the warrants, approximately $13,188 was allocated to the warrants. In March 2017, the Company issued 1,100,000 warrants in conjunction with a convertible note payable. The warrants have an exercise price of $0.10 and a term of the earlier of 5 years or upon a change of control. Based upon the allocation of proceeds between the convertible note payable and the warrants, approximately $14,051 was allocated to the warrants. In October 2017, the Company issued 1,100,000 warrants in conjunction with a convertible note payable. The warrants have an exercise price of $0.10 and a term of the earlier of 5 years or upon a change of control. Based upon the allocation of proceeds between the convertible note payable and the warrants, approximately $20,175 was allocated to the warrants. In December 2017, the Company issued 1,100,000 warrants in conjunction with a convertible note payable. The warrants have an exercise price of $0.10 and a term of the earlier of 5 years or upon a change of control. Based upon the allocation of proceeds between the convertible note payable and the warrants, approximately $27,212 was allocated to the warrants. The fair value of the warrants were determined using the Black Scholes valuation model with the following key assumptions: December 2016 March 2017 October 2017 December 2017 Number of Warrants Issued 550,000 1,100,000 1,100,000 1,100,000 Stock Price: $ 0.028 $ 0.0279 $ 0.04 $ 0.068 Exercise Price: $ 0.10 $ 0.10 $ 0.10 $ 0.10 Term: 5 years 5 years 5 years 5 years Risk Free Rate: 2.02% 2.13% 1.95% 2.16% Volatility: 155% 127% 150% 149% |
STOCK-BASED COMPENSATION
STOCK-BASED COMPENSATION | 3 Months Ended |
Dec. 31, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
STOCK-BASED COMPENSATION | NOTE 7– 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 $93,381 and $0 in stock-based compensation during the three months ended December 31, 2017, and December 31, 2016, respectively. For the three months ended December 31, 2017, a portion of these costs, $27,875 were capitalized to unproved properties and the remainder were recorded as general and administrative expenses. The following table summarizes the Company’s stock option activity during the three months ended December 31, 2017: Number Weighted Weighted Average Average Intrinsic Value Outstanding at September 30, 2017 35,500,000 0.033 Granted — — Exercised — — Cancelled — — Outstanding at December 31, 2017 35,500,000 $ 0.033 5 $1.2 million Vested and expected to vest 35,500,000 $ 0.033 5 $1.2 million Exercisable at December 31, 2017 18,750,000 — — 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. For the quarter ended December 31, 2017 and 2016 there was $93,381 and $0 in stock-based compensation cost, respectively. For the quarter ended December 31, 2017 a portion of these costs, $27,875, were capitalized to unproved properties and the remainder were recorded as general and administrative expenses. The intrinsic value of the options outstanding as of December 31, 2017 was $1.2 million. As of December 31, 2017 there was no unrecognized stock-based compensation. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 3 Months Ended |
Dec. 31, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | NOTE 8 – COMMITMENTS AND CONTINGENCIES In March 2013, the Company licensed certain seismic data pursuant to an agreement for $4,012,260. As of December 31, 2017, the Company has paid $3,009,195 in cash and is obligated to pay $1,003,065 during fiscal 2018. In October 2017, the Company purchased a directors and officers’ insurance policy for $171,360 and financed $156,718 of the premium by executing a note payable. The balance of the note payable at December 31, 2017 is $128,807. |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 3 Months Ended |
Dec. 31, 2017 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | NOTE 9 – SUBSEQUENT EVENTS On January 8, 2018, GulfSlope Energy, Inc. (the “Company”) entered into a participation agreement (the “Agreement”) with Delek GOM Investments, LLC, a subsidiary of Delek Group Ltd. (“Delek”), and Texas South Energy, Inc. (“Texas South”) (collectively, the “Parties”) for the Company’s interests in its Gulf of Mexico oil and gas leases (the “Farm-out”). The Agreement sets out the terms and conditions of the Parties’ participation in the drilling of a multi-phase exploration program targeting the Company’s prospects (the “Prospects”) located on the Company’s existing leases (the “Leases”). Under the terms of the Agreement, the Parties have committed to drill the Company’s “Canoe” and “Tau” prospects (the “Initial Phase”) with Delek having the option to participate in two additional two-well drilling phases and a final, three-well drilling phase (collectively, the “Phases”). In each Phase, Delek will earn a 75% working interest upon paying 90% of the exploratory costs associated with drilling each exploratory well. The Company will retain a 20% working interest while paying 8% of the exploratory costs associated with drilling each well. In addition, Delek will pay the Company approximately $1.1 million in cash for each Prospect exploration plan filed with BOEM and/or BSEE. Also, each Party will be responsible for its pro rata share (based on working interest) of delay rentals associated with the Prospects. The Company will be the Operator during exploratory drilling of a Prospect, however, subsequent to a commercial discovery, Delek will have the right to become the Operator. Delek will have the right to terminate this Agreement at the conclusion of any drilling Phase. Delek will also have the option to purchase up to 5% of the Company’s common stock, par value $0.001 per share (the “Common Stock”), upon fulfilling its obligation for each Phase (maximum of 20% in the aggregate) at a price per share equal to a 10% discount to the 30-day weighted average closing price for the Common Stock preceding the acquisition. This option will expire January 8, 2020. The foregoing description of the Agreement does not purport to be a complete description of the terms, provisions and conditions of such document, and represents only a summary of certain of the principal terms, provisions and conditions thereof. The Company will assign an eight-tenths of one percent of eight/eights net profits interest in certain of the Company’s oil and gas leases to include Vermilion Area, South Addition 378, Ship Shoal Area, South Addition 336, and Ship Shoal Area, South Addition 351, to Hi-View Investment Partners, LLC (“Hi-View”) in consideration for consulting services provided pursuant to a non-exclusive consulting engagement dated October 25, 2017, by and between Hi-View, the Company, and Texas South (the ”Advisory Agreement”). Hi-View will be entitled to additional assignments on the same terms and conditions as described above related to any of the Leases whereby Delek elects to participate in drilling of an exploratory well. In addition, the Company issued an aggregate of eighty million shares of Common Stock to Hi-View in consideration for consulting services provided pursuant to the Advisory Agreement. In the event that Delek has not funded the approximately one million one hundred thousand payment referenced above within six months of execution of this Agreement, then the Common Stock will be returned by Hi-View to the Company. On January 1, 2018, the Company executed the third amendment to the March 2014 farm-out agreement with Texas South under which Texas South will acquire 20% of GulfSlope’s interest in two prospects for $225,000. In January 2018 the maturity date of convertible promissory notes (bridge financing) that matured on January 15, 2018 was extended to April 16, 2018 in exchange for 2.79 million additional warrants. In February 2018, the Company executed a drilling rig contract with Atlantic Maritime Services LLC, a wholly owned subsidiary of Rowan Companies plc, to secure and utilize the Rowan Ralph Coffman jackup drilling rig for the Company’s 2018 Gulf of Mexico drilling program. GulfSlope anticipates spudding the first well in mid-2018 on Vermilion Area, South Addition Block 378 (Canoe Shallow prospect) and the second well on Ship Shoal Area, South Addition Blocks 336 / 351 (Tau prospect) shortly thereafter. Initial drilling on both prospects is expected to be completed before the end of the year. |
SIGNIFICANT ACCOUNTING POLICI15
SIGNIFICANT ACCOUNTING POLICIES (Policies) | 3 Months Ended |
Dec. 31, 2017 | |
Accounting Policies [Abstract] | |
Cash and Cash Equivalents | 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. |
Liquidity/Going Concern | Liquidity/Going Concern The Company has incurred accumulated losses as of December 31, 2017 of $39.7 million. Further losses are anticipated in developing our business. As a result, there exists substantial doubt about our ability to continue as a going concern. As of December 31, 2017, we had $0.1 million of unrestricted cash on hand. The Company estimates that it will need to raise a minimum of $10 million to meet its obligations and planned expenditures through February 2019. The Company plans to finance its operations through the issuance of equity and debt offerings. Our policy has been to periodically raise funds through the sale of equity on a limited basis, to avoid undue dilution while at the early stages of execution of our business plan. Short term needs have been historically funded through loans from executive management and other related parties. There are no assurances that financing will be available with acceptable terms, if at all. If the Company is not successful in obtaining adequate financing, operations would need to be curtailed or ceased, including those associated with being a public reporting company. The financial statements do not include any adjustments that might result from the outcome of this uncertainty. |
Full Cost Method | Full Cost Method The Company uses the full cost method of accounting for its oil and gas exploration and development activities as defined by the Securities and Exchange Commission (“SEC”). Under the full cost method of accounting, all costs associated with successful and unsuccessful exploration and development activities are capitalized on a country-by-country basis into a single cost center (“full cost pool”). Such costs include property acquisition costs, geological and geophysical (“G&G”) costs, carrying charges on non-producing properties, costs of drilling both productive and non-productive wells and overhead charges directly related to acquisition, exploration and development activities. Proceeds from property sales will generally be credited to the full cost pool, with no gain or loss recognized, unless such a sale would significantly alter the relationship between capitalized costs and the proved reserves attributable to these costs. A significant alteration would typically involve a sale of 25% or more of the proved reserves related to a single full cost pool. Proved properties are amortized on a country-by-country basis using the units of production method (UOP). The UOP calculation multiplies the percentage of estimated proved reserves produced each quarter by the cost of those reserves. The amortization base in the UOP calculation includes the sum of proved property, net of accumulated depreciation, depletion and amortization (DD&A), estimated future development costs (future costs to access and develop proved reserves), and asset retirement costs, less related salvage value. The costs of unproved properties and related capitalized costs (such as G&G costs) are withheld from the amortization calculation until such time as they are either developed or abandoned. Unproved properties and properties under development are reviewed for impairment at least quarterly and are determined through an evaluation considering, among other factors, seismic data, requirements to relinquish acreage, drilling results, remaining time in the commitment period, remaining capital plan, and political, economic, and market conditions. In countries where proved reserves exist, exploratory drilling costs associated with dry holes are transferred to proved properties immediately upon determination that a well is dry and amortized accordingly. In countries where a reserve base has not yet been established, impairments are charged to earnings. 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. As of December 31, 2017, the Company’s oil and gas properties consisted of capitalized exploration and acquisition costs for unproved properties and no proved reserves. |
Basic and Dilutive Earnings Per Share | Basic and Dilutive Earnings Per Share Basic (loss) per share (“EPS”) is computed by dividing net income (loss) (the numerator) by the weighted average number of common shares outstanding for the period (denominator). Diluted EPS is computed by dividing net income (loss) by the weighted average number of common shares and potential common shares outstanding (if dilutive) during each period. Potential common shares include stock options, warrants, and 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, 2017 and 2016, the potentially dilutive shares are anti-dilutive and are thus not added into the loss per share calculations. As of December 31, 2017 and 2016, there were 175,050,492 and 118,268,823 potentially dilutive shares, respectively. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606). On February 25, 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842) In March 2016, the FASB issued Accounting Standards Update (“ASU”) 2016-09, “Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting” (“ASU 2016-09”) In March 2016, the FASB issued ASU No. 2016-06, Derivatives and Hedging (Topic 815): Contingent Put and Call Options in Debt Instruments (a consensus of the Emerging Issues Task Force) The Company has evaluated all other recent accounting pronouncements and believes that none of them will have a significant effect on the Company’s financial statements. |
Recent Tax and Financial Legislation | Recent Tax and Financial Legislation The Tax Cuts and Jobs Act of 2017 was signed into law on December 22, 2017 by President Donald J. Trump. The law includes significant changes to the U.S. corporate income tax system, including a Federal corporate rate reduction from 35% to 21%, limitations on the deductibility of interest expense and executive compensation, and the transition of U.S. international taxation from a worldwide tax system to a territorial tax system. We are in the process of analyzing the final legislation and determining an estimate of the financial impact. |
COMMON STOCK_PAID IN CAPITAL (T
COMMON STOCK/PAID IN CAPITAL (Tables) | 3 Months Ended |
Dec. 31, 2017 | |
Stockholders' Equity Note [Abstract] | |
Schedule of fair value assumptions for warrants | The fair value of the warrants were determined using the Black Scholes valuation model with the following key assumptions: June 2016 July 2016 August 2016 November 2016 June 2017 July 2017 August 2017 Warrants Issued 12.9 million 10.0 million 3.3 million 1.7 million 3.2 million 2.5 million 1.25 million Stock Price: $ 0.054 (1) $ 0.040 (1) $ 0.032 (1) $ 0.029 (1) $ 0.025 (1) $ 0.019 (1) $ 0.016 (1) Exercise Price $ 0.03 $ 0.03 $ 0.03 $ 0.03 $ 0.03 $ 0.03 $ 0.03 Term 3 years 3 years 3 years 3 years 2 years 2 years 2 years Risk Free Rate .87 % .80 % .88 % 1.28 % 1.35 % 1.35 % 1.33 % Volatility 135 % 138 % 137 % 131 % 135 % 136 % 135 % (1) Fair market value on the date of agreement The fair value of the warrants were determined using the Black Scholes valuation model with the following key assumptions: December 2016 March 2017 October 2017 December 2017 Number of Warrants Issued 550,000 1,100,000 1,100,000 1,100,000 Stock Price: $ 0.028 $ 0.0279 $ 0.04 $ 0.068 Exercise Price: $ 0.10 $ 0.10 $ 0.10 $ 0.10 Term: 5 years 5 years 5 years 5 years Risk Free Rate: 2.02% 2.13% 1.95% 2.16% Volatility: 155% 127% 150% 149% |
STOCK-BASED COMPENSATION (Table
STOCK-BASED COMPENSATION (Tables) | 3 Months Ended |
Dec. 31, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Summary of stock options activity | The following table summarizes the Company’s stock option activity during the three months ended December 31, 2017: Number Weighted Weighted Average Average Intrinsic Value Outstanding at September 30, 2017 35,500,000 0.033 Granted — — Exercised — — Cancelled — — Outstanding at December 31, 2017 35,500,000 $ 0.033 5 $1.2 million Vested and expected to vest 35,500,000 $ 0.033 5 $1.2 million Exercisable at December 31, 2017 18,750,000 — — |
ORGANIZATION AND NATURE OF BU18
ORGANIZATION AND NATURE OF BUSINESS (Details Narrative) | 3 Months Ended |
Dec. 31, 2017aftm | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Number of outer continental shelf blocks held | 12 |
Concentration of 3-D seismic data | a | 2,200,000 |
Maximum water depth, in meters | m | 200 |
Maximum water depth, in feet | ft | 656 |
Royalty rate for leases | 12.50% |
Royalty rate for leases, as amended | 18.75% |
SIGNIFICANT ACCOUNTING POLICI19
SIGNIFICANT ACCOUNTING POLICIES (Details Narrative) - USD ($) | 3 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Accounting Policies [Abstract] | ||||
Accumulated losses | $ 39,735,926 | $ 39,221,523 | ||
Unrestricted cash | 108,483 | $ 51,804 | $ 6,426 | $ 64,114 |
Minimum capital which company estimated to raise to meet its obligations and planned expenditures | $ 10,000,000 | |||
Shares excluded from the computation of diluted loss per share | 175,050,492 | 118,268,823 | ||
Net Loss | $ (514,404) | $ (552,763) | ||
Pre-enactment U.S. federal statutory corporate tax rate | 35.00% | |||
Post-enactment U.S. federal statutory corporate tax rate | 21.00% |
OIL AND NATURAL GAS PROPERTIES
OIL AND NATURAL GAS PROPERTIES (Details Narrative) | Jan. 08, 2018USD ($)$ / shares | Dec. 31, 2017USD ($)$ / shares | Sep. 30, 2017USD ($)Number$ / shares | Dec. 31, 2016USD ($) | Sep. 30, 2016USD ($)Number | Sep. 30, 2017USD ($)$ / shares | Sep. 30, 2016USD ($) | Mar. 31, 2015Number | Oct. 31, 2017USD ($) |
Blocks awarded | Number | 23 | ||||||||
Blocks divested | Number | 6 | 6 | |||||||
Impairment of oil and natural gas properties | $ 3,316,212 | $ 2,890,678 | |||||||
Impairment of capitalized lease costs | $ 2,054,212 | $ 2,610,678 | |||||||
Impairment of capitalized exploration costs | 1,262,000 | $ 280,000 | |||||||
Gross annual lease rental payments | 402,766 | ||||||||
Ownership percentage by Texas South | 20.00% | 20.00% | |||||||
Proceeds received under letter agreement | $ 166,989 | ||||||||
Proceeds to be received under farm out agreement | $ 329,062 | ||||||||
Amount received under farm out agreement | 150,000 | ||||||||
Unproved oil and gas properties | 1,817,587 | $ 1,887,879 | 1,887,879 | ||||||
Proceeds from sale of working interest | $ 290,589 | 26,400 | |||||||
Working interest portion of annual rentals | $ 118,679 | ||||||||
Number of outer continental shelf blocks held | 12 | ||||||||
Common Stock, par value (in dollars per share) | $ / shares | $ 0.001 | $ 0.001 | $ 0.001 | ||||||
Subsequent Event [Member] | Participation agreement [Member] | Delek GOM Investments, LLC [Member] | |||||||||
Percentage of working interest | 75.00% | ||||||||
Percentage of exploratory costs | 90.00% | ||||||||
Description of costs associated with drilling | The Company will retain a 20% working interest while paying 8% of the exploratory costs associated with drilling each well. | ||||||||
Cash for each prospect exploration plan | $ 1,100,000 | ||||||||
Percentage of option to purchase | 5% | ||||||||
Common Stock, par value (in dollars per share) | $ / shares | $ 0.001 | ||||||||
Percentage of obligation for each Phase | 20.00% | ||||||||
Percentage of common stock preceding under acquisition | 10.00% | ||||||||
Consulting Fees And Salaries And Benefits [Member] | |||||||||
Exploration costs capitalized during the period | $ 68,631 | $ 172,094 | |||||||
Stock Option Costs [Member] | |||||||||
Exploration costs capitalized during the period | 195,125 | ||||||||
Technological Infrastructure And Third Party Hosting Services [Member] | |||||||||
Exploration costs capitalized during the period | $ 11,075 | 53,014 | |||||||
Bureau Of Ocean Energy Management [Member] | |||||||||
Gross annual lease rental payments | $ 632,665 |
RELATED PARTY TRANSACTIONS (Det
RELATED PARTY TRANSACTIONS (Details Narrative) - USD ($) | Nov. 15, 2016 | May 31, 2013 | Dec. 31, 2017 | Sep. 30, 2013 | Feb. 29, 2016 | Sep. 30, 2017 | Dec. 31, 2015 | Jun. 30, 2017 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 |
Dr. Ronald Bain, President [Member] | |||||||||||
Debt Face amount | $ 267,000 | ||||||||||
Interest rate | 5.00% | ||||||||||
Debt maturity date | due on demand | ||||||||||
Amount owed to related party | $ 267,000 | ||||||||||
Accrued interest payable | 31,583 | ||||||||||
Accounting Consulting Service [Member] | |||||||||||
Accounting consulting services, included in related party payables | 5,915 | ||||||||||
Promissory Notes [Member] | Related party [Member] | |||||||||||
Proceeds from issuance of convertible notes and warrants | $ 50,000 | ||||||||||
Convertible Promissory Notes [Member] | John Seitz, CEO [Member] | |||||||||||
Debt Face amount | $ 6,500,000 | $ 965,500 | $ 2,410,000 | $ 442,500 | $ 363,000 | ||||||
Interest rate | 5.00% | 5.00% | 5.00% | 5.00% | 5.00% | ||||||
Debt conversion, price per share | $ 0.12 | ||||||||||
Debt maturity date | due on demand | due on demand | due on demand | ||||||||
Amount owed to related party | 8,675,500 | ||||||||||
Stock issued in conversion of notes payable, shares | 10,000,000 | ||||||||||
Value of stock issued in conversion of notes payable | $ 1,200,000 | ||||||||||
Accrued interest payable | $ 1,312,139 | ||||||||||
Convertible Promissory Notes [Member] | Dr. Ronald Bain, President [Member] | |||||||||||
Debt Face amount | $ 92,000 | ||||||||||
Convertible Promissory Notes [Member] | Mr. Paul Morris [Member] | |||||||||||
Debt Face amount | $ 80,000 | ||||||||||
Interest rate | 5.00% | ||||||||||
Amount owed to related party | $ 80,000 |
BRIDGE FINANCING - CONVERTIBL22
BRIDGE FINANCING - CONVERTIBLE PROMISSORY NOTES WITH ASSOCIATED WARRANTS (Details Narrative) - USD ($) | Dec. 31, 2017 | Dec. 15, 2017 | Oct. 16, 2017 | Mar. 14, 2017 | Dec. 28, 2016 | Nov. 15, 2016 | Oct. 31, 2017 | Jun. 30, 2017 | May 31, 2013 | Aug. 31, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | Nov. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | Jun. 30, 2016 | Feb. 29, 2016 | Dec. 31, 2015 | Sep. 30, 2013 | ||
Amortization of debt discount | $ 78,864 | $ 205,430 | |||||||||||||||||||
Interest expense | 225,077 | $ 332,835 | |||||||||||||||||||
Dr. Ronald Bain, President [Member] | |||||||||||||||||||||
Interest rate | 5.00% | ||||||||||||||||||||
Face value | $ 267,000 | ||||||||||||||||||||
Accrued interest payable | $ 31,583 | $ 31,583 | |||||||||||||||||||
June 2017 Warrants [Member] | |||||||||||||||||||||
Number of warrants issued | 3,200,000 | ||||||||||||||||||||
Warrant exercise price | $ 0.03 | $ 0.03 | $ 0.03 | ||||||||||||||||||
Risk-free rate | 1.35% | ||||||||||||||||||||
Stock Price | $ 0.025 | [1] | $ 0.025 | $ 0.025 | [1] | ||||||||||||||||
Volatility | 135.00% | ||||||||||||||||||||
Dec 2016 Promissory Notes [Member] | July August and November 2016 Warrants [Member] | |||||||||||||||||||||
Number of warrants issued | 3,750,000 | ||||||||||||||||||||
Percentage of original warrants issued | 25.00% | ||||||||||||||||||||
Fair value of warrants | $ 38,946 | ||||||||||||||||||||
Dec 2016 Promissory Notes [Member] | Private Placement [Member] | |||||||||||||||||||||
Proceeds from issuance of convertible notes and warrants | $ 50,000 | ||||||||||||||||||||
Interest rate | 6.00% | ||||||||||||||||||||
Conversion price | $ 0.02 | ||||||||||||||||||||
Amount allocated to debt | $ 33,571 | ||||||||||||||||||||
Amount allocated to warrants | 7,969 | ||||||||||||||||||||
Percentage of original warrants issued | 10.00% | ||||||||||||||||||||
Beneficial conversion feature | 33,571 | ||||||||||||||||||||
Debt discount | 55,555 | ||||||||||||||||||||
Amortization of debt discount | $ 55,555 | ||||||||||||||||||||
Interest expense | $ 3,333 | ||||||||||||||||||||
Face value | 55,555 | ||||||||||||||||||||
Additional funding available | 450,000 | ||||||||||||||||||||
Amount allocated to restricted stock | $ 8,460 | ||||||||||||||||||||
Number of shares converted into stock | 5,500,000 | ||||||||||||||||||||
Dec 2016 Promissory Notes [Member] | Private Placement [Member] | Restricted Stock [Member] | |||||||||||||||||||||
Stock issued | 3,500,000 | 3,500,000 | |||||||||||||||||||
Dec 2016 Promissory Notes [Member] | Private Placement [Member] | Warrants [Member] | |||||||||||||||||||||
Number of warrants issued | 550,000 | ||||||||||||||||||||
Warrant exercise price | $ 0.10 | ||||||||||||||||||||
Warrant term | 5 years | ||||||||||||||||||||
Promissory Notes [Member] | Related party [Member] | |||||||||||||||||||||
Proceeds from issuance of convertible notes and warrants | $ 50,000 | ||||||||||||||||||||
June - Nov 2016 Promissory Notes [Member] | |||||||||||||||||||||
Proceeds from issuance of convertible notes and warrants | $ 837,000 | ||||||||||||||||||||
Maturity term | 1 year | ||||||||||||||||||||
Interest rate | 8.00% | ||||||||||||||||||||
Conversion price | $ 0.025 | ||||||||||||||||||||
Qualified equity financing amount | $ 3,000,000 | ||||||||||||||||||||
Amount allocated to debt | 384,368 | ||||||||||||||||||||
Amount allocated to warrants | 452,422 | ||||||||||||||||||||
Beneficial conversion feature | 384,368 | ||||||||||||||||||||
Debt discount | 836,790 | ||||||||||||||||||||
Amortization of debt discount | $ 26,970 | ||||||||||||||||||||
Interest expense | 98,804 | ||||||||||||||||||||
Accrued interest payable | $ 16,740 | 16,740 | |||||||||||||||||||
June - Nov 2016 Promissory Notes [Member] | Related Parties [Member] | |||||||||||||||||||||
Proceeds from issuance of convertible notes and warrants | 222,000 | ||||||||||||||||||||
Extinguishment of related party payables | $ 70,000 | ||||||||||||||||||||
June - Nov 2016 Promissory Notes [Member] | Warrants [Member] | |||||||||||||||||||||
Number of warrants issued | 27,900,000 | ||||||||||||||||||||
Warrant exercise price | $ 0.03 | ||||||||||||||||||||
Warrant term | 3 years | ||||||||||||||||||||
June - Nov 2016 Promissory Notes [Member] | Warrants [Member] | Related Parties [Member] | |||||||||||||||||||||
Number of warrants issued | 7,400,000 | ||||||||||||||||||||
June - Nov 2016 Promissory Notes [Member] | June 2017 Warrants [Member] | |||||||||||||||||||||
Number of warrants issued | 3,225,000 | ||||||||||||||||||||
Amount allocated to warrants | $ 50,701 | ||||||||||||||||||||
Loss on Debt Extinguishment | $ (50,701) | ||||||||||||||||||||
Percentage of original warrants issued | 25.00% | ||||||||||||||||||||
Convertible Promissory Notes [Member] | John Seitz, CEO [Member] | |||||||||||||||||||||
Interest rate | 5.00% | 5.00% | 5.00% | 5.00% | 5.00% | ||||||||||||||||
Conversion price | $ 0.12 | ||||||||||||||||||||
Face value | $ 442,500 | $ 965,500 | $ 363,000 | $ 2,410,000 | $ 6,500,000 | ||||||||||||||||
Accrued interest payable | $ 1,312,139 | 1,312,139 | |||||||||||||||||||
Number of shares converted into stock | 10,000,000 | ||||||||||||||||||||
Amount of balance | $ 1,200,000 | ||||||||||||||||||||
Convertible Promissory Notes [Member] | Dr. Ronald Bain, President [Member] | |||||||||||||||||||||
Face value | $ 92,000 | ||||||||||||||||||||
March 2017 Promissory Notes [Member] | Private Placement [Member] | |||||||||||||||||||||
Proceeds from issuance of convertible notes and warrants | $ 100,000 | ||||||||||||||||||||
Interest rate | 6.00% | ||||||||||||||||||||
Conversion price | $ 0.02 | ||||||||||||||||||||
Amount allocated to debt | $ 68,699 | ||||||||||||||||||||
Amount allocated to warrants | $ 14,051 | ||||||||||||||||||||
Percentage of original warrants issued | 10.00% | ||||||||||||||||||||
Beneficial conversion feature | $ 68,699 | ||||||||||||||||||||
Debt discount | 111,111 | ||||||||||||||||||||
Amortization of debt discount | $ 81,111 | 105,841 | |||||||||||||||||||
Interest expense | $ 6,600 | 6,666 | |||||||||||||||||||
Face value | 111,111 | ||||||||||||||||||||
Additional funding available | 350,000 | ||||||||||||||||||||
Amount allocated to restricted stock | $ 17,250 | ||||||||||||||||||||
Outstanding amount of debt | $ 81,111 | ||||||||||||||||||||
Number of shares converted into stock | 4,300,000 | 1,500,000 | |||||||||||||||||||
Amount of balance | $ 30,000 | ||||||||||||||||||||
March 2017 Promissory Notes [Member] | Private Placement [Member] | Restricted Stock [Member] | |||||||||||||||||||||
Stock issued | 1,000,000 | ||||||||||||||||||||
March 2017 Promissory Notes [Member] | Private Placement [Member] | Warrants [Member] | |||||||||||||||||||||
Number of warrants issued | 1,100,000 | ||||||||||||||||||||
Warrant exercise price | $ 0.10 | ||||||||||||||||||||
Warrant term | 5 years | ||||||||||||||||||||
October 2017 Promissory Notes [Member] | Private Placement [Member] | |||||||||||||||||||||
Proceeds from issuance of convertible notes and warrants | $ 100,000 | ||||||||||||||||||||
Interest rate | 6.00% | ||||||||||||||||||||
Conversion price | $ 0.02 | ||||||||||||||||||||
Amount allocated to debt | $ 58,538 | ||||||||||||||||||||
Amount allocated to warrants | $ 20,175 | ||||||||||||||||||||
Percentage of original warrants issued | 10.00% | ||||||||||||||||||||
Beneficial conversion feature | $ 58,538 | ||||||||||||||||||||
Debt discount | 110,000 | ||||||||||||||||||||
Amortization of debt discount | 39,434 | ||||||||||||||||||||
Interest expense | 6,600 | ||||||||||||||||||||
Face value | 110,000 | ||||||||||||||||||||
Additional funding available | 250,000 | ||||||||||||||||||||
Amount allocated to restricted stock | $ 21,287 | ||||||||||||||||||||
October 2017 Promissory Notes [Member] | Private Placement [Member] | Restricted Stock [Member] | |||||||||||||||||||||
Stock issued | 1,000,000 | ||||||||||||||||||||
October 2017 Promissory Notes [Member] | Private Placement [Member] | Warrants [Member] | |||||||||||||||||||||
Number of warrants issued | 1,100,000 | ||||||||||||||||||||
Warrant exercise price | $ 0.10 | ||||||||||||||||||||
Warrant term | 5 years | ||||||||||||||||||||
December 2017 Promissory Notes [Member] | Private Placement [Member] | |||||||||||||||||||||
Proceeds from issuance of convertible notes and warrants | $ 100,000 | ||||||||||||||||||||
Interest rate | 6.00% | ||||||||||||||||||||
Conversion price | $ 0.02 | ||||||||||||||||||||
Amount allocated to debt | $ 44,981 | ||||||||||||||||||||
Amount allocated to warrants | $ 27,212 | ||||||||||||||||||||
Percentage of original warrants issued | 10.00% | ||||||||||||||||||||
Beneficial conversion feature | $ 44,981 | ||||||||||||||||||||
Debt discount | 110,000 | ||||||||||||||||||||
Amortization of debt discount | $ 8,302 | ||||||||||||||||||||
Interest expense | 6,600 | ||||||||||||||||||||
Face value | 110,000 | ||||||||||||||||||||
Additional funding available | 150,000 | ||||||||||||||||||||
Amount allocated to restricted stock | $ 27,807 | ||||||||||||||||||||
December 2017 Promissory Notes [Member] | Private Placement [Member] | Restricted Stock [Member] | |||||||||||||||||||||
Stock issued | 1,000,000 | ||||||||||||||||||||
December 2017 Promissory Notes [Member] | Private Placement [Member] | Warrants [Member] | |||||||||||||||||||||
Number of warrants issued | 1,100,000 | ||||||||||||||||||||
Warrant exercise price | $ 0.10 | ||||||||||||||||||||
Warrant term | 5 years | ||||||||||||||||||||
[1] | Fair market value on the date of agreement |
COMMON STOCK_PAID IN CAPITAL (D
COMMON STOCK/PAID IN CAPITAL (Details) - $ / shares | 3 Months Ended | |||
Dec. 31, 2017 | Jun. 30, 2017 | |||
June 2016 Warrants [Member] | ||||
Warrants issued | 12,900,000 | |||
Stock Price | [1] | $ 0.054 | ||
Exercise Price | $ 0.03 | |||
Term | 3 years | |||
Risk Free Rate | 0.87% | |||
Volatility | 135.00% | |||
July 2016 Warrants [Member] | ||||
Warrants issued | 10,000,000 | |||
Stock Price | [1] | $ 0.040 | ||
Exercise Price | $ 0.03 | |||
Term | 3 years | |||
Risk Free Rate | 0.80% | |||
Volatility | 138.00% | |||
August 2016 Warrants [Member] | ||||
Warrants issued | 3,300,000 | |||
Stock Price | [1] | $ 0.032 | ||
Exercise Price | $ 0.03 | |||
Term | 3 years | |||
Risk Free Rate | 0.88% | |||
Volatility | 137.00% | |||
November 2016 Warrants [Member] | ||||
Warrants issued | 1,700,000 | |||
Stock Price | [1] | $ 0.029 | ||
Exercise Price | $ 0.03 | |||
Term | 3 years | |||
Risk Free Rate | 1.28% | |||
Volatility | 131.00% | |||
June 2017 Warrants [Member] | ||||
Warrants issued | 3,200,000 | |||
Stock Price | $ 0.025 | [1] | $ 0.025 | |
Exercise Price | $ 0.03 | $ 0.03 | ||
Term | 2 years | |||
Risk Free Rate | 1.35% | |||
Volatility | 135.00% | |||
July 2017 Warrants [Member] | ||||
Warrants issued | 2,500,000 | |||
Stock Price | [1] | $ 0.019 | ||
Exercise Price | $ 0.03 | |||
Term | 2 years | |||
Risk Free Rate | 1.35% | |||
Volatility | 136.00% | |||
August 2017 Warrants [Member] | ||||
Warrants issued | 1,250,000 | |||
Stock Price | [1] | $ 0.016 | ||
Exercise Price | $ 0.03 | |||
Term | 2 years | |||
Risk Free Rate | 1.33% | |||
Volatility | 135.00% | |||
December 2016 Warrants [Member] | ||||
Warrants issued | 550,000 | |||
Stock Price | $ 0.028 | |||
Exercise Price | $ 0.10 | |||
Term | 5 years | |||
Risk Free Rate | 2.02% | |||
Volatility | 155.00% | |||
March 2017 Warrants [Member] | ||||
Warrants issued | 1,100,000 | |||
Stock Price | $ 0.0279 | |||
Exercise Price | $ 0.10 | |||
Term | 5 years | |||
Risk Free Rate | 2.13% | |||
Volatility | 127.00% | |||
October 2017 Warrants [Member] | ||||
Warrants issued | 1,100,000 | |||
Stock Price | $ 0.04 | |||
Exercise Price | $ 0.10 | |||
Term | 5 years | |||
Risk Free Rate | 1.95% | |||
Volatility | 150.00% | |||
December 2017 Warrants [Member] | ||||
Warrants issued | 1,100,000 | |||
Stock Price | $ 0.068 | |||
Exercise Price | $ 0.10 | |||
Term | 5 years | |||
Risk Free Rate | 2.16% | |||
Volatility | 149.00% | |||
[1] | Fair market value on the date of agreement |
COMMON STOCK_PAID IN CAPITAL 24
COMMON STOCK/PAID IN CAPITAL (Details Narrative) - USD ($) | Dec. 31, 2017 | Dec. 28, 2016 | Dec. 31, 2017 |
June 2016 Warrants [Member] | |||
Warrant exercise price | $ 0.03 | $ 0.03 | |
Fair value of warrants | $ 452,422 | $ 452,422 | |
December 2016 Warrants [Member] | |||
Amount allocated to warrants | $ 13,188 | ||
Warrant exercise price | $ 0.10 | $ 0.10 | |
March 2017 Warrants [Member] | |||
Amount allocated to warrants | $ 14,051 | ||
Warrant exercise price | 0.10 | $ 0.10 | |
October 2017 Warrants [Member] | |||
Amount allocated to warrants | $ 20,175 | ||
Warrant exercise price | 0.10 | $ 0.10 | |
December 2017 Warrants [Member] | |||
Amount allocated to warrants | $ 27,212 | ||
Warrant exercise price | $ 0.10 | $ 0.10 | |
Warrants [Member] | |||
Number of warrants issued | 27,900,000 | ||
Term | 3 years | ||
Restricted Stock [Member] | Dec 2016 Promissory Notes [Member] | Private Placement [Member] | |||
Stock issued | 3,500,000 | 3,500,000 |
STOCK-BASED COMPENSATION (Detai
STOCK-BASED COMPENSATION (Details) | 3 Months Ended |
Dec. 31, 2017USD ($)$ / sharesshares | |
Number of Options | |
Outstanding at beginning of period | shares | 35,500,000 |
Outstanding at end of period | shares | 35,500,000 |
Vested and expected to vest | shares | 35,500,000 |
Exercisable at end of period | shares | 18,750,000 |
Weighted Average Exercise Price | |
Outstanding at beginning of period | $ / shares | $ 0.033 |
Outstanding at end of period | $ / shares | 0.033 |
Vested and expected to vest | $ / shares | 0.033 |
Exercisable at end of period | $ / shares | $ 0.033 |
Weighted Average Remaining Contractual Term | |
Outstanding at end of period | 5 years |
Vested and expected to vest | 5 years |
Average Intrinsic Value | |
Outstanding at end of period | $ | $ 1,200,000 |
Vested and expected to vest | $ | $ 1,200,000 |
STOCK-BASED COMPENSATION (Det26
STOCK-BASED COMPENSATION (Details Narrative) - USD ($) | 3 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||
Stock-based compensation expense | $ 93,381 | $ 0 |
Stock-based compensation capitalized to unproved properties | 27,875 | |
Unrecognized compensation expense related to stock options | 0 | |
Intrinsic value of stock options outstanding | $ 1,200,000 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Details Narrative) - USD ($) | 1 Months Ended | 3 Months Ended | |
Oct. 31, 2017 | Dec. 31, 2017 | Sep. 30, 2017 | |
Notes payable life insurance | $ 130,934 | $ 3,690 | |
Licensed Data Agreement [Member] | |||
Licensing agreement commitment | 4,012,260 | ||
Payment due under agreement during fiscal 2018 | 1,003,065 | ||
Licensed Data Agreement [Member] | |||
Payments to date under licensing agreement | 3,009,195 | ||
Directors and Officers [Member] | |||
Insurance policy purchased | $ 171,360 | ||
Insurance policy premium financed | $ 156,718 | ||
Life Insurance Premiums Notes [Member] | |||
Notes payable life insurance | $ 128,807 |
SUBSEQUENT EVENTS (Details Narr
SUBSEQUENT EVENTS (Details Narrative) - USD ($) | Jan. 08, 2018 | Dec. 31, 2017 | Sep. 30, 2017 |
Common Stock, par value (in dollars per share) | $ 0.001 | $ 0.001 | |
Subsequent Event [Member] | Participation agreement [Member] | |||
Working interest to be retained (percent) | 20.00% | ||
Exploratory costs to be paid (percent) | 8.00% | ||
Subsequent Event [Member] | Participation agreement [Member] | Delek GOM Investments, LLC [Member] | |||
Percentage of working interest to be earned | 75.00% | ||
Percentage of exploratory costs to earn working interest | 90.00% | ||
Cash for each prospect exploration plan | $ 1,100,000 | ||
Percentage of option to purchase | 5% | ||
Common Stock, par value (in dollars per share) | $ 0.001 | ||
Percentage of obligation for each Phase | 20.00% | ||
Percentage of common stock preceding under acquisition | 10.00% |