GulfSlope Energy (GSPE) 10-Q 14 Aug 18 2018 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	Jun. 30, 2018	Aug. 13, 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	Jun. 30, 2018
Amendment Flag	false
Current Fiscal Year End Date	--09-30
Entity a Well-known Seasoned Issuer	No
Entity a Voluntary Filer	No
Entity Current Reporting Status	Yes
Entity Filer Category	Smaller Reporting Company
Entity Common Stock, Shares Outstanding		817,957,712
Document Fiscal Period Focus	Q3
Document Fiscal Year Focus	2,018

Condensed Balance Sheets (Unaud

Condensed Balance Sheets (Unaudited) - USD ($)	Jun. 30, 2018	Sep. 30, 2017
Current Assets
Cash	$ 4,876,667	$ 6,426
Accounts Receivable - Joint Interest Owners	627,552
Prepaid Expenses and Other Current Assets	125,387	40,573
Total Current Assets	5,629,606	46,999
Property and Equipment, Net of Depreciation	3,016	3,484
Oil and Natural Gas Properties, Full Cost Method of Accounting
Unproved Properties	5,334,903	1,887,879
Total Non-Current Assets	5,337,919	1,891,363
Total Assets	10,967,525	1,938,362
Current Liabilities
Accounts Payable	1,145,024	476,244
Deposit from Joint Interest Owners	3,015,000
Related Party Payable	300,469	298,458
Accrued Interest Payable	1,625,589	1,318,188
Accrued Expenses and Other Payables	1,171,927	1,321,927
Loans from Related Parties	8,992,500	9,155,581
Notes Payable	43,526	3,690
Convertible Promissory Notes Payable	307,000	669,419
Stock Payable		11,605
Total Current Liabilities	16,601,035	13,255,112
Total Liabilities	16,601,035	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 1,500,000,000 shares; issued and outstanding 813,800,512 and 692,196,625 as of June 30, 2018 and June 30, 2017 respectively	813,800	692,196
Additional Paid-in-Capital	34,827,711	27,212,577
Accumulated Deficit	(41,275,021)	(39,221,523)
Total Stockholders' Deficit	(5,633,510)	(11,316,750)
Total Liabilities and Stockholders' Deficit	$ 10,967,525	$ 1,938,362

Condensed Balance Sheets (Unau3

Condensed Balance Sheets (Unaudited) (Parenthetical) - $ / shares	Jun. 30, 2018	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	1,500,000,000	1,500,000,000
Common Stock, issued	813,800,512	692,196,625
Common Stock, outstanding	813,800,512	692,196,625

Condensed Statements of Operati

Condensed Statements of Operations (Unaudited) - USD ($)	3 Months Ended		9 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Income Statement [Abstract]
Revenues
Impairment of Oil and Natural Gas Properties		3,316,212		3,316,212
General & Administrative Expenses	785,990	67,857	1,176,455	744,682
Net Loss from Operations	(785,990)	(3,384,069)	(1,176,455)	(4,060,894)
Other Income/(Expenses):
Interest Expense	(207,335)	(383,457)	(659,901)	(1,085,625)
Loss on Debt Extinguishment		(50,701)	(217,141)	(50,701)
Net Loss Before Income Taxes	(993,325)	(3,818,227)	(2,053,497)	(5,197,220)
Provision for Income Taxes
Net Loss	$ (993,325)	$ (3,818,227)	$ (2,053,497)	$ (5,197,220)
Loss Per Share - Basic and Diluted (in dollars per share)	$ 0	$ (0.01)	$ 0	$ (0.01)
Weighted Average Shares Outstanding - Basic and Diluted (in shares)	785,008,992	685,152,225	750,498,503	683,955,339

Condensed Statement of Stockhol

Condensed Statement of Stockholder's Deficit (Unaudited) - 9 months ended Jun. 30, 2018 - USD ($)	Common Stock [Member]	Additional Paid-in Capital [Member]	Accumulated Deficit [Member]	Total
Beginnig balance at Sep. 30, 2017	$ 692,196	$ 27,212,577	$ (39,221,523)	$ (11,316,750)
Beginnig balance (in shares) at Sep. 30, 2017	692,196,625			692,196,625
Common stock issued for conversion of convertible promissory note and accrued interest	$ 38,111	834,700		$ 872,811
Common stock issued for conversion of convertible promissory note and accrued interest (in shares)	38,110,462
Common stock issued for convertible promissory note	$ 2,000	47,094		49,094
Common stock issued for convertible promissory note (in shares)	2,000,000
Value of beneficial conversion feature in conjunction with issuance of convertible promissory notes		103,519		103,519
Value of warrants in conjunction with convertible promissory note		47,387		47,387
Amortization of employee stock options		1,464,532		1,464,532
Common stock issued for services	$ 80,293	4,814,961		4,895,254
Common stock issued for services (in shares)	80,293,425
Loss on extinguishment of debt		217,141	(217,141)	(217,141)
Common stock issued to settle debt	$ 1,200	85,800		87,000
Common stock issued to settle debt (in shares)	1,200,000
Net loss			(1,836,357)	(1,836,357)
Ending balance at Jun. 30, 2018	$ 813,800	$ 34,827,711	$ (41,275,021)	$ (5,633,510)
Ending balance (in shares) at Jun. 30, 2018	813,800,512			813,800,512

Condensed Statements of Cash Fl

Condensed Statements of Cash Flows (Unaudited) - USD ($)	9 Months Ended
	Jun. 30, 2018	Jun. 30, 2017
OPERATING ACTIVITIES
Net Loss	$ (2,053,497)	$ (5,197,220)
Adjustments to reconcile net loss to net cash From Operating Activities:
Impairment of Oil and Natural Gas Properties		3,316,212
Changes in Allowance for Doubtful Accounts Receivable		(128,024)
Depreciation	3,712	17,763
Stock Based Compensation	850,798	393,037
Stock Issued for Services	17,145
Debt Discount Amortization	254,501	701,959
Loss on Debt Extinguishment	217,141	50,701
Changes in Operating Assets and Liabilities
(Increase)/Decrease in Accounts Receivable	(627,552)	191,171
(Increase)/Decrease in Prepaid Expenses and Other Current Assets	96,688	100,230
Increase/(Decrease) in Deposits from Joint Interest Owners	3,015,000
Increase/(Decrease) in Accounts Payable and Stock Payable	607,156	(35,843)
Increase/(Decrease) in Related Party Payable	2,011	26,710
Increase/(Decrease) in Accrued Liabilities and Other Payables	(100,000)
Increase/(Decrease) in Accrued Interest	400,212	380,888
Net Cash From Operating Activities	2,683,315	(183,216)
INVESTING ACTIVITIES
Equipment Purchases	(3,244)
Deposits	(24,785)
Investments in Oil and Gas Properties	(752,814)	(371,808)
Proceeds From Sale of Working Interest	2,884,651
Net Cash From Investing Activities	2,103,808	(371,808)
FINANCING ACTIVITIES
Proceeds from Related Party Loans		492,500
Proceeds from Convertible Promissory Notes and Warrants	200,000	150,000
Payments on Note Payable	(116,882)	(127,134)
Net Cash From Financing Activities	83,118	515,366
Net Increase/(Decrease) in Cash	4,870,241	(39,658)
Beginning Cash Balance	6,426	64,114
Ending Cash Balance	4,876,667	24,456
Supplemental Schedule of Cash Flow Activities
Cash Paid for Interest	5,188	4,144
Non-Cash Financing and Investing Activities
Prepaid Asset Financed by Note Payable	156,718	159,188
Stock Issued for Settlement of Accounts Payable & Accrued Expenses	73,505
Stock Issued to Settle Convertible Promissory Notes and Accrued Interest	872,812
Capital Expenditures Included in Accounts Payable	3,088	50,628
Stock-Based Compensation Capitalized to Unproved Properties	613,733	167,250
Stock Issued for Consulting Services Capitalized to Unproved Properties	4,880,000
Wells In Process Included in Accounts Payable	$ 85,127

ORGANIZATION AND NATURE OF BUSI

ORGANIZATION AND NATURE OF BUSINESS	9 Months Ended
	Jun. 30, 2018
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). As of June 30, 2018, we have no production or proved reserves.

SIGNIFICANT ACCOUNTING POLICIES

SIGNIFICANT ACCOUNTING POLICIES	9 Months Ended
	Jun. 30, 2018
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 June 30, 2018 of $41.3 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 June 30, 2018, we had $4.9 million of unrestricted cash on hand, $3.2 million of this amount is for the payment of joint payables for drilling operations. The Company estimates that it will need to raise a minimum of $7.5 million to meet its obligations and planned expenditures through August 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 June 30, 2018, the Company’s oil and gas properties consisted of wells in process, 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 nine months ended June 30, 2018 and 2017, the potentially dilutive shares are anti-dilutive and are thus not added into the loss per share calculations. As of June 30, 2018 and 2017, there were 214,418,438 and 163,805,888 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) 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	9 Months Ended
	Jun. 30, 2018
Oil and Gas Exploration and Production Industries Disclosures [Abstract]
OIL AND NATURAL GAS PROPERTIES	NOTE 3 – OIL AND NATURAL GAS PROPERTIES In January 2018, the Company entered into a strategic partnership with Delek Group Ltd. (“Delek”), and Texas South Energy, Inc. (“Texas South”) (collectively, the “Parties”) 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 respective exploration plan is filed with BOEM. Also, each Party will be responsible for their pro rata share (based on working interest) of delay rentals associated with the Prospects. The Company will be the Operator during exploratory drilling of the 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 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 oil and gas 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 oil and gas consulting services provided in facilitating the Delek farm out agreement. The value of the shares was capitalized to unproved properties. The Company, as the operator of two wells being drilled in the Gulf of Mexico, has incurred tangible and intangible drilling costs for the wells in process and has billed its working interest partners for their respective shares of the drilling costs to date. The first of the two wells was spud in early August 2018 and the second well will be drilled after the first well. 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 that sets out the terms of an agreement for the Company’s Tau prospect. In exchange for $166,989, Texas South acquired an undivided 20% interest in the prospect. In accordance with full cost requirements, the Company recorded the proceeds from the transaction as an adjustment to the capitalized costs of its oil and 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. 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. 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. As these G&G costs relate to specific company-owned unevaluated properties, the Company capitalized these G&G costs to unproved properties. These capitalized costs when added to the amounts 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 nine months ended June 30, 2018, the Company incurred $180,379 in consulting fees, salaries and benefits associated with geoscientists, $544,958 in stock option costs associated with geoscientists and engineers, $35,125 associated with technological infrastructure and third party hosting services and $90,716 of engineering costs. The Company capitalized these G&G costs to unproved properties. These amounts when added to unproved properties at September 30, 2017 and netted with the receipts of $2,884,651 from the sale of working interests and $140,591 the amount paid for the lease that was acquired in October 2017, the Company’s share of lease rentals of $75,274 paid in May and June of 2018 and the capitalized consulting services of $4,880,000 paid for with the issuance of stock and the wells in process of $384,632 results in unproved properties of $5,334,903 at June 30, 2018.

RELATED PARTY TRANSACTIONS

RELATED PARTY TRANSACTIONS	9 Months Ended
	Jun. 30, 2018
Related Party Transactions [Abstract]
RELATED PARTY TRANSACTIONS	NOTE 4 – RELATED PARTY TRANSACTIONS During April 2013 through September 2017, the Company entered into convertible promissory notes whereby it borrowed a total of $8,675,500 from John Seitz, its current chief executive officer. The notes are due on demand, bear interest at the rate of 5% per annum, and $5,300,000 of the notes are convertible into shares of common stock at a conversion price equal to $0.12 per share of common stock (the then offering price of shares of common stock to unaffiliated investors). As of June 30, 2018 the total amount owed to John Seitz, our CEO, is $8,675,500. There was a total of $1,530,232 of unpaid interest associated with these loans included in accrued interest within our balance sheet as of June 30, 2018. 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 $80,000 promissory note was converted into the Bridge Financing (see Note 5). The Bridge note and accrued interest was converted into 3.7 million shares of common stock in June 2018, under the same terms received by other investors. The note was paid in full in June 2018 (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 June 30, 2018, the services provided were valued at $5,915. The Company has accrued these amounts, and they have been reflected in the June 30, 2018 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.

BRIDGE FINANCING - CONVERTIBLE

BRIDGE FINANCING - CONVERTIBLE PROMISSORY NOTES WITH ASSOCIATED WARRANTS	9 Months Ended
	Jun. 30, 2018
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 June 30, 2018 the amortization of this discount and the discount associated with the extension warrants (see below) was zero, because it was fully amortized at March 31, 2018. Accrued interest expense for the quarter ended June 30, 2018 was $14,462. Cumulative accrued interest at June 30, 2018 was $56,996 after the conversion of three of the notes with a principal balance of $480,000 plus accrued interest of $73,012. The remaining Bridge note balance at June 30, 2018 was $357,000. 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. Upon maturity on January 15, 2018 of the eleven promissory notes, the Company issued 2,790,000 extension warrants (equal to 10% of the original warrant amount) to the holders of the notes to extend the term to April 16, 2018. Three of the notes were converted prior to June 30 th 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 nine months ended June 30, 2018 amortization of this discount totaled $110,000 and is included in interest expense in the statement of operations. Accrued interest expense for the nine months ended June 30, 2018 is $6,600. On April 16, 2018 this note, and accrued interest was paid in full by the issuance of 5.8 million shares of common stock. 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 nine months ended June 30, 2018 amortization of this discount totaled $110,000 and is included in interest expense in the statement of operations. Accrued interest expense for the nine months June 30, 2018 is $6,600. On June 15, 2018 this note, and accrued interest was paid in full by the issuance of 5.8 million shares of common stock.

COMMON STOCK_PAID IN CAPITAL

COMMON STOCK/PAID IN CAPITAL	9 Months Ended
	Jun. 30, 2018
Stockholders' Equity Note [Abstract]
COMMON STOCK/PAID IN CAPITAL	NOTE 6 – COMMON STOCK/PAID IN CAPITAL At our annual shareholder meeting in May of 2018 our shareholders approved increasing the number of authorized shares of common stock from 975,000,000 to 1,500,000,000. The number of authorized shares of preferred stock was not changed and is 50,000,000. 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. On January 15, 2018 the maturity date of the Bridge Financing Notes was extended to April 16, 2018 in exchange for the issuance of 10% additional warrants. (See Note 5 for status of notes). The warrants have an exercise price of $0.10 per share 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 January 2018 Warrants Issued 12.9 million 10.0 million 3.3 million 1.7 million 3.2 million 2.5 million 1.25 million 2.8 million Stock Price (1) $ 0.054 $ 0.040 $ 0.032 $ 0.029 $ 0.025 $ 0.019 $ 0.016 $ 0.11 Exercise Price $ 0.03 $ 0.03 $ 0.03 $ 0.03 $ 0.03 $ 0.03 $ 0.03 $ 0.10 Term 3 years 3 years 3 years 3 years 2 years 2 years 2 years 1.5 years (2) Risk Free Rate .87 % .80 % .88 % 1.28 % 1.35 % 1.35 % 1.33 % 1.89 % Volatility 135 % 138 % 137 % 131 % 135 % 136 % 135 % 163 % (1) Fair market value on the date of agreement. (2) Average term. During the period December 2016 through December 2017 the Company issued 3,500,000 shares of restricted stock to an investor 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	9 Months Ended
	Jun. 30, 2018
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
STOCK-BASED COMPENSATION	NOTE 7 – STOCK-BASED COMPENSATION On May 1, 2018, 500,000 stock options, with an exercise price of $0.065 per share were granted to an employee. The stock options vested on May 1, 2018. The stock options are exercisable for approximately 7.5 years from the date of grant of May 1, 2018 to December 31, 2025. These stock options were awarded from the Company’s 2014 Omnibus Incentive Plan. On June 1, 2018, 67.5 million stock options, with an exercise price of $0.075 per share were granted to employees, directors and contractors. 18.5 million of the stock options vested on June 1, 2018, 24 million will vest on June 1, 2019 and 25 million will vest on June 1, 2020 provided the holder continues to serve as an employee or a director on the vesting date. The stock options are exercisable for approximately 7.5 years from the date of grant of June 1, 2018 to December 31, 2025. 49 million of these stock options were awarded from the Company’s 2018 Omnibus Incentive Plan and 18.5 million stock options were inducement awards. The fair value of the stock-options were determined using the Black Scholes valuation model with the following key assumptions: Date of Grant May 1, 2018 June 1, 2018 Number of Stock Options Granted 500,000 67,500,000 Stock Price $0.065 $0.075 Exercise Price $0.065 $0.075 Expected Life of Options 4.25 years 4.25 years Risk Free Rate 2.74% 2.675% Volatility 145.21% 145.21% The Company used the historical volatility of its stock for the period June 2014 through June 1, 2018 for the Black Scholes computation. 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. On January 1, 2017, 33.5 million stock options were granted to 6 employees and 2 directors of the Company. The CEO was not included in the award. The stock options vested 50% on January 1, 2017 and the remaining 50% vested on January 1, 2018, provided that the option holder continues to serve as an employee or director on the vesting date. The stock options are exercisable for seven years from the original grant date of January 1, 2017, until January 1, 2024. The following table summarizes the Company’s stock option activity during the three months ended June 30, 2018: Number Weighted Weighted Average Average Intrinsic Outstanding at September 30, 2017 35,500,000 0.033 Granted 68,000,000 0.075 Exercised — — Cancelled — — Outstanding at June 30, 2018 103,500,000 $ 0.0605 5.71 $5.1 million Vested and expected to vest 103,500,000 $ 0.0605 5.71 $5.1 million Exercisable at June 30, 2018 54,500,000 $ 0.0475 4.17 $3.4 million The intrinsic value of the options outstanding as of June 30, 2018 was $5.1 million. As of June 30, 2018 there was $3.1 million of unrecognized stock-based compensation. Stock-based compensation cost is measured at the grant date, using the estimated fair value of the award, and is recognized over the required vesting period. The Company recognized $1,371,150 and $1,464,534 in stock based compensation during the three and nine months ended June 30, 2018 and $93,381 and $560,287 in stock-based compensation during the three and nine months ended June 30, 2017, respectively. A portion of these costs, $585,858 and $613,733 were capitalized to unproved properties for the three and nine months ended June 30, 2018 and $27,875 and $167,250 was capitalized to unproved properties for the three months and nine months ended June 30, 2017 and the remainder were recorded as general and administrative expenses.

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES	9 Months Ended
	Jun. 30, 2018
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 June 30, 2018, the Company has paid $3,109,195 in cash and is obligated to pay $903,065 during 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 June 30, 2018 is $43,526. In June 2018, the Company entered into a thirty-nine month office lease agreement effective July 1, 2018. In addition, the Company paid a $24,785 security deposit in June 2018. The Company signed a contract with Atlantic Maritime Services, LLC, a sub subsidiary of Rowan Companies plc, for the use of the Ralph Coffman drilling rig for its joint operations in the Gulf of Mexico. The company’s share of the cost of the drilling rig is approximately $1.1 million. As of June 30, 2018 $0.08 million of this amount has been paid.

SUBSEQUENT EVENTS

SUBSEQUENT EVENTS	9 Months Ended
	Jun. 30, 2018
Subsequent Events [Abstract]
SUBSEQUENT EVENTS	NOTE 9 – SUBSEQUENT EVENTS In the fourth quarter of fiscal 2018, three investors converted their June 2016 bridge notes and accrued interest into approximately 3.7 million shares of common stock in accordance with the terms of the loan documents. These three June 2016 notes and accrued interest have been paid in full. In the fourth quarter of fiscal 2018, 416,666 warrants were exercised by a Bridge note investor.

SIGNIFICANT ACCOUNTING POLICI16

SIGNIFICANT ACCOUNTING POLICIES (Policies)	9 Months Ended
	Jun. 30, 2018
Accounting Policies [Abstract]
Cash	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 June 30, 2018 of $41.3 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 June 30, 2018, we had $4.9 million of unrestricted cash on hand, $3.2 million of this amount is for the payment of joint payables for drilling operations. The Company estimates that it will need to raise a minimum of $7.5 million to meet its obligations and planned expenditures through August 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 June 30, 2018, the Company’s oil and gas properties consisted of wells in process, 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 nine months ended June 30, 2018 and 2017, the potentially dilutive shares are anti-dilutive and are thus not added into the loss per share calculations. As of June 30, 2018 and 2017, there were 214,418,438 and 163,805,888 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) 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)	9 Months Ended
	Jun. 30, 2018
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 January 2018 Warrants Issued 12.9 million 10.0 million 3.3 million 1.7 million 3.2 million 2.5 million 1.25 million 2.8 million Stock Price (1) $ 0.054 $ 0.040 $ 0.032 $ 0.029 $ 0.025 $ 0.019 $ 0.016 $ 0.11 Exercise Price $ 0.03 $ 0.03 $ 0.03 $ 0.03 $ 0.03 $ 0.03 $ 0.03 $ 0.10 Term 3 years 3 years 3 years 3 years 2 years 2 years 2 years 1.5 years (2) Risk Free Rate .87 % .80 % .88 % 1.28 % 1.35 % 1.35 % 1.33 % 1.89 % Volatility 135 % 138 % 137 % 131 % 135 % 136 % 135 % 163 % (1) Fair market value on the date of agreement. (2) Average term. 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)	9 Months Ended
	Jun. 30, 2018
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Schedule of fair value assumptions for stock-options	The fair value of the stock-options were determined using the Black Scholes valuation model with the following key assumptions: Date of Grant May 1, 2018 June 1, 2018 Number of Stock Options Granted 500,000 67,500,000 Stock Price $0.065 $0.075 Exercise Price $0.065 $0.075 Expected Life of Options 4.25 years 4.25 years Risk Free Rate 2.74% 2.675% Volatility 145.21% 145.21%
Summary of stock options activity	The following table summarizes the Company’s stock option activity during the three months ended June 30, 2018: Number Weighted Weighted Average Average Intrinsic Outstanding at September 30, 2017 35,500,000 0.033 Granted 68,000,000 0.075 Exercised — — Cancelled — — Outstanding at June 30, 2018 103,500,000 $ 0.0605 5.71 $5.1 million Vested and expected to vest 103,500,000 $ 0.0605 5.71 $5.1 million Exercisable at June 30, 2018 54,500,000 $ 0.0475 4.17 $3.4 million

ORGANIZATION AND NATURE OF BU19

ORGANIZATION AND NATURE OF BUSINESS (Details Narrative)	Jun. 30, 2018Number
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Number of outer continental shelf blocks held	12

SIGNIFICANT ACCOUNTING POLICI20

SIGNIFICANT ACCOUNTING POLICIES (Details Narrative) - USD ($)	9 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Sep. 30, 2017	Sep. 30, 2016
Accounting Policies [Abstract]
Accumulated losses	$ 41,275,021		$ 39,221,523
Unrestricted cash	4,876,667	$ 24,456	$ 6,426	$ 64,114
Payment of joint payables for drilling operations	3,200,000
Minimum capital which company estimated to raise to meet its obligations and planned expenditures	$ 7,500,000
Shares excluded from the computation of diluted loss per share	214,418,438	163,805,888
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) - USD ($)	Jan. 08, 2018	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017	Sep. 30, 2017	May 31, 2018	Jan. 02, 2018	Oct. 31, 2017	Aug. 31, 2017
Impairment of oil and natural gas properties			$ 3,316,212		$ 3,316,212	$ 3,316,212
Gross annual lease rental payments						402,766
Ownership percentage by Texas South										20.00%
Proceeds received under letter agreement										$ 166,989
Unproved oil and gas properties		5,334,903		5,334,903		1,887,879
Proceeds from sale of working interest				2,884,651		26,400
Lease rentals receivable		$ 75,274		$ 75,274			$ 75,274
Working interest portion of annual rentals						$ 118,679
Common Stock, par value (in dollars per share)		$ 0.001		$ 0.001		$ 0.001
Issuance of stock for consulting services				$ 4,895,254
Well [Member]
Unproved oil and gas properties		$ 384,632		384,632
Second Amendment [Member]
Ownership percentage by Texas South									20.00%
Proceeds to be received under farm out agreement									$ 329,062
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	5.00%
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%
Third Amendment [Member]
Ownership percentage by Texas South								20.00%
Proceeds to be received under farm out agreement								$ 225,000
Consulting Fees And Salaries And Benefits [Member]
Exploration costs capitalized during the period				180,379		$ 172,094
Stock Option Costs [Member]
Exploration costs capitalized during the period				544,958		195,125
Technological Infrastructure And Third Party Hosting Services [Member]
Exploration costs capitalized during the period				35,125		53,014
Engineering Costs [Member]
Exploration costs capitalized during the period				$ 90,716
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	Jun. 30, 2018	Jun. 30, 2018	Sep. 30, 2017	Mar. 31, 2016
Accrued interest payable		$ 357,000	$ 357,000
Accounting Consulting Service [Member]
Accounting consulting services, included in related party payables			5,915
Convertible Promissory Notes [Member] | John Seitz, CEO [Member]
Debt Face amount				$ 8,675,500
Interest rate				5.00%
Debt conversion, price per share				$ 0.12
Debt maturity date				due on demand
Amount owed to related party		8,675,500	8,675,500
Stock issued in conversion of notes payable, shares				5,300,000
Accrued interest payable		$ 1,530,232	$ 1,530,232
Convertible Promissory Notes [Member] | Mr. Paul Morris [Member]
Debt Face amount					$ 80,000
Amount owed to related party					$ 80,000
Conversion of common stock into accrued interest		3,700,000
Promissory Notes [Member] | Related party [Member]
Proceeds from issuance of convertible notes and warrants	$ 50,000

BRIDGE FINANCING - CONVERTIBL23

BRIDGE FINANCING - CONVERTIBLE PROMISSORY NOTES WITH ASSOCIATED WARRANTS (Details Narrative) - USD ($)		Jan. 15, 2018	Dec. 31, 2017	Dec. 15, 2017	Oct. 16, 2017	Dec. 28, 2016	Jun. 30, 2017	Aug. 31, 2017	Jun. 30, 2018	Jun. 30, 2017	Nov. 30, 2016	Jun. 30, 2018	Jun. 30, 2017	Aug. 16, 2018	Jun. 15, 2018	Jun. 01, 2018	May 01, 2018
Loss on Debt Extinguishment										$ (50,701)		$ (217,141)	$ (50,701)
Stock Price																$ 0.075	$ 0.065
Amortization of debt discount												254,501	701,959
Interest expense									207,335	383,457		659,901	1,085,625
Accrued interest payable									$ 357,000			$ 357,000
June 2017 Warrants [Member]
Number of warrants issued												3,200,000
Warrant exercise price									$ 0.03			$ 0.03
Risk-free rate												1.35%
Stock Price	[1]								$ 0.025			$ 0.025
Volatility												135.00%
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												$ 0
Interest expense												56,996
Face value									$ 480,000			480,000
Accrued interest payable									14,462			14,462
Cumulative accrued interest									$ 73,012			73,012
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] | June 2017 Warrants [Member]
Number of warrants issued							3,225,000
Amount allocated to warrants							$ 50,701			$ 50,701			$ 50,701
Loss on Debt Extinguishment							$ (50,701)
Percentage of original warrants issued							25.00%
June - Nov 2016 Promissory Notes [Member] | Warrants [Member]
Number of warrants issued		2,790,000									27,900,000
Warrant exercise price											$ 0.03
Warrant term											3 years
Fair value of warrants		$ 217,141
June - Nov 2016 Promissory Notes [Member] | Warrants [Member] | Related Parties [Member]
Number of warrants issued											7,400,000
Dec 2016 Promissory Notes [Member] | Private Placement [Member] | Restricted Stock [Member]
Stock issued			3,500,000			3,500,000
Dec 2016 Promissory Notes [Member] | 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
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												110,000
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] | Subsequent Event [Member]
Accrued interest paid														$ 5,800,000
October 2017 Promissory Notes [Member] | Private Placement [Member] | Restricted Stock [Member]
Stock issued					1,000,000
October 2017 Promissory Notes [Member] | Warrants [Member] | Private Placement [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												110,000
Interest expense												$ 6,600
Face value				110,000
Additional funding available				150,000
Amount allocated to restricted stock				$ 27,807
Accrued interest paid															$ 5,800,000
December 2017 Promissory Notes [Member] | Private Placement [Member] | Restricted Stock [Member]
Stock issued				1,000,000
December 2017 Promissory Notes [Member] | Warrants [Member] | Private Placement [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		9 Months Ended
		Jun. 30, 2018	Jun. 01, 2018	May 01, 2018
Stock Price			$ 0.075	$ 0.065
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	[1]	$ 0.025
Exercise Price		$ 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%
January 2018 Warrants [Member]
Warrants issued		2,800,000
Stock Price	[1]	$ 0.11
Exercise Price		$ 0.10
Term	[2]	1 year 6 months
Risk Free Rate		1.89%
Volatility		163.00%
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.
[2]	Average term.

COMMON STOCK_PAID IN CAPITAL 25

COMMON STOCK/PAID IN CAPITAL (Details Narrative) - USD ($)	Dec. 31, 2017	Dec. 28, 2016	Jun. 30, 2018	May 31, 2018	Sep. 30, 2017
Common Stock, authorized			1,500,000,000	975,000,000	1,500,000,000
Preferred Stock, authorized			50,000,000		50,000,000
June 2016 Warrants [Member]
Warrant exercise price			$ 0.03
Fair value of warrants			$ 452,422
December 2016 Warrants [Member]
Amount allocated to warrants			$ 13,188
Warrant exercise price			$ 0.10
March 2017 Warrants [Member]
Amount allocated to warrants			$ 14,051
Warrant exercise price			$ 0.10
October 2017 Warrants [Member]
Amount allocated to warrants			$ 20,175
Warrant exercise price			$ 0.10
December 2017 Warrants [Member]
Amount allocated to warrants			$ 27,212
Warrant exercise price			$ 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) - $ / shares	Jun. 01, 2018	May 01, 2018	Jun. 30, 2018
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Number of Stock Options Granted	67,500,000	500,000	68,000,000
Stock Price	$ 0.075	$ 0.065
Exercise Price	$ 0.075	$ 0.065
Expected Life of Options	4 years 3 months	4 years 3 months
Risk Free Rate	2.675%	2.74%
Volatility	145.21%	145.21%

STOCK-BASED COMPENSATION (Det27

STOCK-BASED COMPENSATION (Details 1) - USD ($)	Jun. 01, 2018	May 01, 2018	Jun. 30, 2018
Number of Options
Outstanding at beginning of period			35,500,000
Granted	67,500,000	500,000	68,000,000
Outstanding at end of period			103,500,000
Vested and expected to vest			103,500,000
Exercisable at end of period			54,500,000
Weighted Average Exercise Price
Granted			$ 0.033
Exercised			0.075
Outstanding at end of period			0.0605
Vested and expected to vest			0.0605
Exercisable at end of period			$ 0.0475
Weighted Average Remaining Contractual Term
Outstanding at end of period			5 years 8 months 16 days
Vested and expected to vest			5 years 8 months 16 days
Exercisable at end of period			4 years 2 months 1 day
Average Intrinsic Value
Outstanding at end of period			$ 5,100,000
Vested and expected to vest			5,100,000
Exercisable at end of period			$ 3,400,000

STOCK-BASED COMPENSATION (Det28

STOCK-BASED COMPENSATION (Details Narrative) - USD ($)	Jun. 01, 2018	May 01, 2018	Jan. 01, 2017	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation expense				$ 1,371,150	$ 93,381	$ 1,464,534	$ 560,287
Stock-based compensation capitalized to unproved properties				585,858	$ 27,875	613,733	$ 167,250
Unrecognized compensation expense related to stock options				3,100,000		3,100,000
Intrinsic value of stock options outstanding				5,100,000		$ 5,100,000
Number of Stock Options Granted	67,500,000	500,000				68,000,000
Exercise Price	$ 0.075	$ 0.065
Expected Life of Options	4 years 3 months	4 years 3 months
Vested and expected to vest				$ 5,100,000		$ 5,100,000
Omnibus Incentive Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vested and expected to vest	$ 18,500,000
Vested and expected to vest date	Dec. 31, 2025
Share-based Compensation Award, Tranche January 1, 2017 [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vested and expected to vest	$ 18,500,000
Vested and expected to vest date	Jun. 1, 2018
Stock option of vested			50.00%
Share-based Compensation Award, Tranche January 1, 2018 [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vested and expected to vest	$ 24,000,000
Vested and expected to vest date	Jun. 1, 2019
Stock option of vested			50.00%
Share-based Compensation Award, Tranche June 1, 2020 [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vested and expected to vest	$ 25,000,000
Vested and expected to vest date	Jun. 1, 2020
Employee Stock Option [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of Stock Options Granted	67,500,000	500,000	33,500,000
Exercise Price	$ 0.075	$ 0.065
Expected Life of Options	7 years 5 months	7 years 5 months

COMMITMENTS AND CONTINGENCIES (

COMMITMENTS AND CONTINGENCIES (Details Narrative) - USD ($)	1 Months Ended	9 Months Ended
	Oct. 31, 2017	Jun. 30, 2018	Sep. 30, 2017	Mar. 31, 2013
Notes payable life insurance		$ 43,526	$ 3,690
Security deposit		24,785
Atlantic Maritime Services, LLC [Member]
Drilling cost		1,100,000
Licensed Data Agreement [Member]
Licensing agreement commitment				$ 4,012,260
Payment due under agreement during fiscal 2018		903,065
Licensed Data Agreement [Member]
Payments to date under licensing agreement		3,109,195
Directors and Officers [Member]
Insurance policy purchased	$ 171,360
Insurance policy premium financed	$ 156,718
Life Insurance Premiums Notes [Member]
Notes payable life insurance		$ 43,526

SUBSEQUENT EVENTS (Details Narr

SUBSEQUENT EVENTS (Details Narrative) - Subsequent Event [Member] - Investor [Member]	3 Months Ended
	Sep. 30, 2018USD ($)Numbershares
Number of shares issued upon conversion of note | shares	3,700,000
Number of investors | Number	3
Warrants exercised | $	$ 416,666