Cover
Cover - shares | 9 Months Ended | |
Jun. 30, 2021 | Aug. 13, 2021 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Document Period End Date | Jun. 30, 2021 | |
Document Fiscal Period Focus | Q3 | |
Document Fiscal Year Focus | 2021 | |
Current Fiscal Year End Date | --09-30 | |
Entity File Number | 000-51638 | |
Entity Registrant Name | GULFSLOPE ENERGY, INC. | |
Entity Central Index Key | 0001341726 | |
Entity Tax Identification Number | 16-1689008 | |
Entity Incorporation, State or Country Code | DE | |
Entity Address, Address Line One | 1331 Lamar St. | |
Entity Address, Address Line Two | Suite 1665 | |
Entity Address, City or Town | Houston | |
Entity Address, State or Province | TX | |
Entity Address, Postal Zip Code | 77010 | |
City Area Code | 281 | |
Local Phone Number | 918-4100 | |
Title of 12(b) Security | Common stock, par value $0.001 per share | |
Trading Symbol | GSPE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 1,268,240,346 |
Condensed Balance Sheets (Unaud
Condensed Balance Sheets (Unaudited) - USD ($) | Jun. 30, 2021 | Sep. 30, 2020 |
Current Assets | ||
Cash | $ 1,839,886 | $ 3,190,418 |
Accounts Receivable | 366,173 | |
Prepaid Expenses and Other Current Assets | 118,705 | 84,129 |
Total Current Assets | 1,958,591 | 3,640,720 |
Property and Equipment, net | 2,887 | 6,347 |
Oil and Natural Gas Properties, Full Cost Method of Accounting, Unproved Properties | 12,510,329 | 12,372,853 |
Operating Lease Right of Use Asset | 14,473 | 54,768 |
Total Non-Current Assets | 12,527,689 | 12,433,968 |
Total Assets | 14,486,280 | 16,074,688 |
Current Liabilities | ||
Accounts Payable | 70,795 | 228,892 |
Related Party Payable | 417,983 | 417,984 |
Accrued Interest Payable | 2,961,156 | 2,616,008 |
Accrued Expenses and Other Payables | 268,863 | 268,863 |
Loans from Related Parties | 8,725,500 | 8,725,500 |
Notes Payable | 120,827 | |
Convertible Notes Payable, net of Debt Discount | 154,819 | 461,613 |
Derivative Financial Instruments | 1,332,229 | 1,070,551 |
Current Portion of Operating Lease Liability | 24,378 | 62,074 |
Total Current Liabilities | 13,955,723 | 13,972,312 |
Total Liabilities | 13,955,723 | 13,972,312 |
Stockholders’ Equity | ||
Preferred Stock; par value ($0.001); Authorized 50,000,000 shares none issued or outstanding | ||
Common Stock; par value ($0.001); Authorized 1,500,000,000 shares; issued and outstanding 1,268,240,346 and 1,250,740,346 as of June 30, 2021 and September 30, 2020, respectively | 1,268,240 | 1,250,740 |
Additional Paid-in-Capital | 58,967,810 | 58,728,308 |
Additional Paid-in Capital – Shares to Be Issued | 105,000 | |
Accumulated Deficit | (59,705,493) | (57,981,672) |
Total Stockholders’ Equity | 530,557 | 2,102,376 |
Total Liabilities and Stockholders’ Equity | $ 14,486,280 | $ 16,074,688 |
Condensed Balance Sheets (Una_2
Condensed Balance Sheets (Unaudited) (Parenthetical) - $ / shares | Jun. 30, 2021 | Sep. 30, 2020 |
Statement of Financial Position [Abstract] | ||
Preferred stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Preferred stock, authorized | 50,000,000 | 50,000,000 |
Preferred stock, issued | 0 | 0 |
Preferred stock, outstanding | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Common stock, authorized | 1,500,000,000 | 1,500,000,000 |
Common stock, issued | 1,268,240,346 | 1,250,740,346 |
Common stock, outstanding | 1,268,240,346 | 1,250,740,346 |
Condensed Statements of Operati
Condensed Statements of Operations (Unaudited) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Income Statement [Abstract] | ||||
Revenues | ||||
Impairment of Oil and Natural Gas Properties | 2,124,885 | 2,124,885 | ||
General and Administrative Expenses | 381,794 | 325,697 | 1,137,848 | 1,238,940 |
Net Loss from Operations | (381,794) | (2,450,582) | (1,137,848) | (3,363,825) |
Other Income/(Expenses): | ||||
Interest Expense, net | (131,495) | (1,108) | (414,674) | (15,927) |
Gain (Loss) on Debt Extinguishment | (18,269) | 136,640 | (1,617,036) | |
Gain (Loss) on Derivative Financial Instrument | 148,976 | (235,412) | (307,939) | 1,503,392 |
Net Loss Before Income Taxes | (364,313) | (2,705,371) | (1,723,821) | (3,493,396) |
Provision for Income Taxes | ||||
Net Loss | $ (364,313) | $ (2,705,371) | $ (1,723,821) | $ (3,493,396) |
Loss Per Share - Basic and Diluted | $ 0 | $ 0 | $ 0 | $ 0 |
Weighted Average Shares Outstanding – Basic and Diluted | 1,268,240,346 | 1,233,094,593 | 1,267,663,423 | 1,162,730,812 |
Condensed Statements of Stockho
Condensed Statements of Stockholders Equity (Unaudited) - USD ($) | Common Stock [Member] | Additional Paid-in Capital [Member] | Additional Paid in Capital Shares to Be Issued [Member] | Retained Earnings [Member] | Total |
Beginning balance, value at Sep. 30, 2019 | $ 1,092,266 | $ 54,160,836 | $ (55,582,010) | $ (328,908) | |
Beginning balance, shares at Sep. 30, 2019 | 1,092,266,844 | ||||
Cumulative adjustment upon ASC 842 adoption | 16,431 | 16,431 | |||
Stock based compensation | 968,257 | 968,257 | |||
Warrants issued for debt extension | 19,300 | 19,300 | |||
Common stock issued for conversion of convertible note and accrued interest | $ 105,558 | 1,975,068 | 2,080,626 | ||
Common stock issued for conversion of convertible note and accrued interest (in shares) | 105,557,528 | ||||
Common stock registration costs | (15,398) | (15,398) | |||
Stock issued to extinguish liability | $ 38,423 | 1,498,506 | 1,536,929 | ||
Stock issued to extinguish liability (in shares) | 38,423,221 | ||||
Net Loss | (3,493,396) | (3,493,396) | |||
Ending balance, value at Jun. 30, 2020 | $ 1,236,247 | 58,606,569 | (59,058,975) | 783,841 | |
Ending balance, shares at Jun. 30, 2020 | 1,236,247,593 | ||||
Beginning balance, value at Mar. 31, 2020 | $ 1,212,337 | 57,988,449 | (56,353,604) | 2,847,182 | |
Beginning balance, shares at Mar. 31, 2020 | 1,212,337,346 | ||||
Stock based compensation | 240,166 | 240,166 | |||
Warrants issued for debt extension | 19,300 | 19,300 | |||
Common stock issued for conversion of convertible note and accrued interest | $ 23,910 | 358,654 | 382,564 | ||
Common stock issued for conversion of convertible note and accrued interest (in shares) | 23,910,247 | ||||
Net Loss | (2,705,371) | (2,705,371) | |||
Ending balance, value at Jun. 30, 2020 | $ 1,236,247 | 58,606,569 | (59,058,975) | 783,841 | |
Ending balance, shares at Jun. 30, 2020 | 1,236,247,593 | ||||
Beginning balance, value at Sep. 30, 2020 | $ 1,250,740 | 58,728,308 | $ 105,000 | (57,981,672) | $ 2,102,376 |
Beginning balance, shares at Sep. 30, 2020 | 1,250,740,346 | 1,250,740,346 | |||
Common Stock issued in settlement of debt interest | $ 17,500 | 87,500 | (105,000) | ||
Common Stock issued in settlement of debt interest (in shares) | 17,500,000 | ||||
Stock based compensation | 65,100 | 65,100 | |||
Warrants issued for debt extension | 86,902 | 86,902 | |||
Net Loss | (1,723,821) | (1,723,821) | |||
Ending balance, value at Jun. 30, 2021 | $ 1,268,240 | 58,967,810 | (59,705,493) | $ 530,557 | |
Ending balance, shares at Jun. 30, 2021 | 1,268,240,346 | 1,268,240,346 | |||
Beginning balance, value at Mar. 31, 2021 | $ 1,268,240 | 58,848,358 | (59,341,180) | $ 775,418 | |
Beginning balance, shares at Mar. 31, 2021 | 1,268,240,346 | ||||
Stock based compensation | 32,550 | 32,550 | |||
Warrants issued for debt extension | 86,902 | 86,902 | |||
Net Loss | (364,313) | (364,313) | |||
Ending balance, value at Jun. 30, 2021 | $ 1,268,240 | $ 58,967,810 | $ (59,705,493) | $ 530,557 | |
Ending balance, shares at Jun. 30, 2021 | 1,268,240,346 | 1,268,240,346 |
Condensed Statements of Cash Fl
Condensed Statements of Cash Flows (Unaudited) - USD ($) | 9 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
OPERATING ACTIVITIES | ||
Net Loss | $ (1,723,821) | $ (3,493,396) |
Adjustments to Reconcile Net Loss to Net Cash Used In Operating Activities: | ||
Impairment of Oil and Natural Gas Properties | 2,124,885 | |
Capitalization of Interest Expense | (2,345,278) | |
Depreciation | 5,625 | 4,944 |
Stock Based Compensation | 65,100 | 470,457 |
(Gain) Loss on Derivative Financial Instruments | 307,939 | (1,503,392) |
Debt Discount Amortization | 69,525 | 1,690,260 |
Loss Recorded to Interest Expense for Issuance of Convertible Notes | 32,539 | |
(Gain) Loss on Debt Extinguishment | (136,640) | 1,617,036 |
Changes in Operating Assets and Liabilities: | ||
Accounts Receivable | 37,232 | 4,261,064 |
Prepaid Expenses and Other Current Assets | (34,576) | 255,054 |
Accounts Payable | (187,239) | (3,855,582) |
Related Party Payable | 44,640 | |
Accrued Interest Payable | 345,810 | 604,951 |
Operating Lease Liabilities | 2,598 | (27,834) |
Net Cash Used In Operating Activities | (1,248,447) | (119,652) |
INVESTING ACTIVITIES | ||
Insurance Proceeds Received | 223,650 | 1,190,469 |
Purchases of Property and Equipment | (2,165) | |
Proceeds from Disposal of Property and Equipment | 133,108 | |
Investments in Oil and Gas Properties | (136,151) | (1,546,210) |
Net Cash Provided By (Used In) Investing Activities | 218,442 | (355,741) |
FINANCING ACTIVITIES | ||
Proceeds from Issuance of Convertible Notes Payable | 535,300 | |
Payments on Notes Payable | (320,527) | (139,089) |
Net Cash Provided By (Used In) Financing Activities | (320,527) | 396,211 |
Net Decrease in Cash | (1,350,532) | (79,182) |
Beginning Cash Balance | 3,190,418 | 1,138,919 |
Ending Cash Balance | 1,839,886 | 1,059,737 |
Supplemental Schedule of Cash Flow Activities: | ||
Cash Paid for Interest, Net of Amounts Capitalized | 424 | 5,272 |
Non-Cash Financing and Investing Activities: | ||
Prepaid Asset Financed by Note Payable | 220,629 | |
Capital Expenditures in Accounts Payable | 1,324 | 480,998 |
Stock-Based Compensation Capitalized to Oil and Gas properties | 497,800 | |
Accounts Receivable Exchanged for Working Interest in Oil and Natural Gas Properties | 3,629,789 | |
Accrued Expense Extinguished through Issuance of Common Stock | 1,613,775 | |
Common Stock Issued upon Conversion of Convertible Notes Payable and Accrued Interest | 105,000 | 2,080,626 |
Derivative Liability Related to Issued Convertible Note | 433,425 | |
Warrants issued to Extend Maturity of Debt Instrument | 86,902 | 19,300 |
Reduction of Oil and Natural Gas Properties Due to Credits Received | 2,053,195 | |
Accounts Receivable Recovery Through Credits Received | $ 3,906,972 |
ORGANIZATION AND NATURE OF BUSI
ORGANIZATION AND NATURE OF BUSINESS | 9 Months Ended |
Jun. 30, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
ORGANIZATION AND NATURE OF BUSINESS | NOTE 1 – ORGANIZATION AND NATURE OF BUSINESS GulfSlope Energy, Inc. (the “Company” or “GulfSlope”) is an independent oil and natural gas exploration company whose interests are concentrated in the United States Gulf of Mexico federal waters offshore Louisiana. The Company currently has under lease three |
SIGNIFICANT ACCOUNTING POLICIES
SIGNIFICANT ACCOUNTING POLICIES | 9 Months Ended |
Jun. 30, 2021 | |
Accounting Policies [Abstract] | |
SIGNIFICANT ACCOUNTING POLICIES | NOTE 2 – SIGNIFICANT ACCOUNTING POLICIES The condensed financial statements included herein are unaudited. However, these condensed financial statements include all adjustments (consisting of normal recurring adjustments), which, in the opinion of management are necessary for a fair presentation of financial position, results of operations and cash flows for the interim periods. The results of operations for interim periods are not necessarily indicative of the results to be expected for an entire year. The preparation of financial statements in accordance with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the amounts reported in the Company’s condensed financial statements and accompanying notes. Actual results could differ materially from those estimates. Certain information, accounting policies, and footnote disclosures normally included in the financial statements prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) have been omitted pursuant to certain rules and regulations of the Securities and Exchange Commission (“SEC”). The condensed financial statements should be read in conjunction with the audited financial statements for the year ended September 30, 2020, which were included in the Company’s Annual Report on Form 10-K for the fiscal year ended September 30, 2020 and filed with the Securities and Exchange Commission on December 29, 2020. Cash GulfSlope considers highly liquid investments with original maturities to the Company of three months or less to be cash equivalents. There were no cash equivalents at June 30, 2021 and September 30, 2020. Liquidity / Going Concern The Company has incurred accumulated losses as of June 30, 2021 of $ 59.7 12 1.7 1.8 10 10 11.9 million Accounts Receivable The Company records accounts receivable for the sale of crude oil, NGL, and natural gas production, and joint interest billings to our partners for their share of expenses on joint venture properties for which we are the operator. The Company estimates allowances for doubtful accounts based on the aged receivable balances and historical losses. If the Company determines any account to be uncollectible based on significant delinquency or other factors, the receivable and the underlying asset are assessed for recovery. As of June 30, 2021 and September 30, 2020, there was no allowance for doubtful accounts receivable. Gross accounts receivable was nil and approximately $ 0.4 million Full Cost Method The Company uses the full cost method of accounting for its oil and gas exploration and development activities. Under the full cost method of accounting, all costs associated with successful and unsuccessful exploration and development activities are capitalized on a country-by-country basis into a single cost center (“full cost pool”). Such costs include property acquisition costs, geological and geophysical (“G&G”) costs, carrying charges on non-producing properties, costs of drilling both productive and non-productive wells. Overhead costs, which includes employee compensation and benefits including stock-based compensation, incurred that are directly related to acquisition, exploration and development activities are capitalized. Interest expense is capitalized related to unevaluated properties and wells in process during the period in which the Company is incurring costs and expending resources to get the properties ready for their intended purpose. For significant investments in unproved properties and major development projects that are not being currently depreciated, depleted, or amortized and on which exploration or development activities are in progress, interest costs are capitalized. Proceeds from property sales will generally be credited to the full cost pool, with no gain or loss recognized, unless such a sale would significantly alter the relationship between capitalized costs and the proved reserves attributable to these costs. A significant alteration would typically involve a sale of 25% or more of the proved reserves related to a single full cost pool. Proved properties are amortized on a country-by-country basis using the units of production method (“UOP”), whereby capitalized costs are amortized over total proved reserves. The amortization base in the UOP calculation includes the sum of proved property, net of accumulated depreciation, depletion and amortization (“DD&A”), estimated future development costs (future costs to access and develop proved reserves), and asset retirement costs, less related salvage value. The costs of unproved properties and related capitalized costs (such as G&G costs) are withheld from the amortization calculation until such time as they are either developed or abandoned. Unproved properties and properties under development are reviewed for impairment at least quarterly and are determined through an evaluation that considers, among other factors, seismic data, requirements to relinquish acreage, drilling results, remaining time in the commitment period, remaining capital plan, and political, economic, and market conditions. In countries where proved reserves exist, exploratory drilling costs associated with dry holes are transferred to proved properties immediately upon determination that a well is dry and amortized accordingly. In countries where a reserve base has not yet been established, impairments are charged to earnings. At June 30, 2021, the Company continues to pursue the development of its unproved properties and is actively finalizing the permitting of the Tau No. 2 well. As such, project economics continue to support cost incurred plus future development therefore no impairment is required at June 30, 2021. Companies that use the full cost method of accounting for oil and natural gas exploration and development activities are required to perform a ceiling test calculation each quarter. The full cost ceiling test is an impairment test prescribed by SEC Regulation S-X Rule 4-10. The ceiling test is performed quarterly, on a country-by-country basis, utilizing the average of prices in effect on the first day of the month for the preceding twelve-month period. The cost center ceiling is defined as the sum of (a) estimated future net revenues, discounted at 10% per annum, from proved reserves, (b) the cost of properties not being amortized, if any, and (c) the lower of cost or market value of unproved properties included in the cost being amortized. If such capitalized costs exceed the ceiling, the Company will record a write-down to the extent of such excess as a non-cash charge to earnings. Any such write-down will reduce earnings in the period of occurrence and results in a lower depreciation, depletion and amortization rate in future periods. A write-down may not be reversed in future periods even though higher oil and natural gas prices may subsequently increase the ceiling. The Company capitalizes exploratory well costs into oil and gas properties until a determination is made that the well has either found proved reserves or is impaired. If proved reserves are found, the capitalized exploratory well costs are reclassified to proved properties. The well costs are charged to expense if the exploratory well is determined to be impaired. Capitalized exploratory well costs remain pending the outcome of exploration activities involving the drilling of the Tau No. 2 well (twin well). Accordingly, these costs are included as suspended well costs at June 30, 2021 and it is expected that a final analysis will be completed upon the drilling of the Tau No. 2 well or within the next twelve months at which time the costs will be transferred to the full cost pool upon final evaluation. As of June 30, 2021, the Company’s oil and gas properties consisted of unproved properties, wells in process and no proved reserves. Due to a combination of the COVID-19 pandemic and related pressures on the global supply-demand balance for crude oil and related products, commodity prices significantly declined in 2020. Despite a strong recovery of prices in 2021, oil and gas operators have reduced exploration budgets and activity. The Company has evaluated the effect of these factors on its business and notes these factors have caused a delay in the plans for the Company’s 2021 drilling program. The Company continues to monitor the economic environment and evaluate the impact on the business. Asset Retirement Obligations The Company’s asset retirement obligations will represent the present value of the estimated future costs associated with plugging and abandoning oil and natural gas wells, removing production equipment and facilities and restoring the seabed in accordance with the terms of oil and gas leases and applicable state and federal laws. Determining asset retirement obligations requires estimates of the costs of plugging and abandoning oil and natural gas wells, removing production equipment and facilities and restoring the sea bed as well as estimates of the economic lives of the oil and gas wells and future inflation rates. The resulting estimate of future cash outflows will be discounted using a credit-adjusted risk-free interest rate that corresponds with the timing of the cash outflows. Cost estimates will consider historical experience, third party estimates, the requirements of oil and natural gas leases and applicable local, state and federal laws, but do not consider estimated salvage values. Asset retirement obligations will be recognized when the wells drilled reach total depth or when the production equipment and facilities are installed or acquired with an associated increase in proved oil and gas property costs. Asset retirement obligations will be accreted each period through depreciation, depletion and amortization to their expected settlement values with any difference between the actual cost of settling the asset retirement obligations and recorded amount being recognized as an adjustment to proved oil and gas property costs. Cash paid to settle asset retirement obligations will be included in net cash provided by operating activities from continuing operations in the statements of cash flows. On a quarterly basis, when indicators suggest there have been material changes in the estimates underlying the obligation, the Company reassesses its asset retirement obligations to determine whether any revisions to the obligations are necessary. At least annually, the Company will assess all of its asset retirement obligations to determine whether any revisions to the obligations are necessary. Future revisions could occur due to changes in estimated costs or well economic lives, or if federal or state regulators enact new requirements regarding plugging and abandoning oil and natural gas wells. The Company drilled two Derivative Financial Instruments The accounting treatment for derivative financial instruments requires that the Company Prior to November 19, 2020, the Company had a certain note payable which contained a variable conversion feature with no floor, and accordingly, the Company Basic and Dilutive Earnings Per Share Basic income (loss) per share (“EPS”) is computed by dividing net income (loss) (the numerator) by the weighted average number of common shares outstanding for the period (denominator). Diluted EPS is computed by dividing net income (loss) by the weighted average number of common shares and potential common shares outstanding (if dilutive) during each period. Potential common shares include stock options, warrants, and convertible notes payable. The number of potential common shares outstanding relating to stock options and warrants, is computed using the treasury stock method. The number of potential common shares related to convertible notes payable is determined using the if-converted method. As the Company has incurred losses for the three and nine months ended June 30, 2021 and 2020, the potentially dilutive shares are anti-dilutive and are thus not added into the loss per share calculations. As of June 30, 2021 and 2020, there were 299,064,844 586,722,166 Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Recently Adopted Accounting Pronouncements In February 2016, the FASB issued ASU No. 2016-02, “Leases”, and in March 2019, the FASB issued ASU No. 2019-01, “Leases: Codification Improvements”, which updated the accounting guidance related to leases to increase transparency and comparability among organizations by recognizing lease assets and lease liabilities on the balance sheet and disclosing key information about leasing arrangements. They also clarify implementation issues. These updates are effective for public companies for annual periods beginning after December 15, 2018, including interim periods therein. Accordingly, the standard was adopted by the Company on October 1, 2019. The standard was applied utilizing a modified retrospective approach and is reflected in these financial statements. In June 2018, the FASB issued ASU 2018-07, Compensation-Stock Compensation (Topic 718) The Company has evaluated all other recent accounting pronouncements and believes that none of them will have a significant effect on the Company’s financial statements. |
OIL AND NATURAL GAS PROPERTIES
OIL AND NATURAL GAS PROPERTIES | 9 Months Ended |
Jun. 30, 2021 | |
Extractive Industries [Abstract] | |
OIL AND NATURAL GAS PROPERTIES | NOTE 3 – OIL AND NATURAL GAS PROPERTIES The Company currently has under lease three 2.2 million The Company, as the operator of two 15,254 29,857 In January 2019, the Tau well experienced an underground control of well event and as a result, the Company filed an insurance claim pursuant to its insurance policy with its insurance underwriters (the “Underwriters”). The total amount of the claim was approximately $ 10.8 million 100 2.5 million 0.9 million 1.6 million 38.4 million In May 2019, the Tau No. 1 well experienced a second underground control of well event and as a result, the Company filed an insurance claim. The claim was related to a subsurface well occurrence that happened during the drilling of the Company’s Tau No. 1 well on May 5, 2019 at a measured depth of 15,254 15,254 4.8 million 100 1.2 million On July 27, 2020, the Company entered into a settlement with the Underwriters of the well control events insurance policy for their claims associated with the re-drilling of the Tau No. 1 well. In accordance with the settlement, in lieu of the insurer paying for the redrill of the well and for a complete release of any further liability under the insurance policy, the Company will receive approximately $ 6.6 million 25 As of June 30, 2021, the Company’s oil and natural gas properties consisted of unproved properties, wells in process and no proved reserves. During the three months ended June 30, 2021 and 2020, the Company capitalized nil and approximately $ 1.2 million 4 0.3 million 2.3 million 0.1 million 0.7 million |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 9 Months Ended |
Jun. 30, 2021 | |
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 approximately $ 8.7 million 5 5.3 million 0.12 8.7 million 2.9 million On November 15, 2016, a family member of the CEO entered into a $ 50,000 Domenica Seitz CPA, related to John Seitz, has provided accounting services to the Company through September 30, 2020, as a consultant and beginning October 2020 as an employee. During the three months ended June 30, 2021 and 2020, the services provided were valued at approximately $ 19,000 15,000 56,000 45,000 |
NOTES PAYABLE
NOTES PAYABLE | 9 Months Ended |
Jun. 30, 2021 | |
Debt Disclosure [Abstract] | |
NOTES PAYABLE | NOTE 5 – NOTES PAYABLE The Company’s notes payable consisted of the following as of September 30, 2020 and June 30, 2021. September 30, 2020 June 30, 2021 PPP Loan Payable $ 100,300 $ — Insurance Note Payable 20,527 — Total $ 120,827 $ — PPP Loan On April 16, 2020, GulfSlope Energy, Inc. entered into a promissory note (the “Note”) evidencing an unsecured $ 100,300 600 100,900 Insurance Note Payable In November 2019, the Company purchased an insurance policy for approximately $ 241,000 220,629 5.6 21,000 |
CONVERTIBLE NOTES PAYABLE
CONVERTIBLE NOTES PAYABLE | 9 Months Ended |
Jun. 30, 2021 | |
Debt Disclosure [Abstract] | |
CONVERTIBLE NOTES PAYABLE | NOTE 6 – CONVERTIBLE NOTES PAYABLE The Company’s convertible promissory notes consisted of the following as of September 30, 2020, and June 30, 2021 September 30, 2020 June 30, 2021 Notes Discount Notes, Net Notes Discount Notes Net Bridge Financing Notes $ 227,000 $ (11,209) $ 215,791 $ 227,000 $ (72,181) $ 154,819 Bridge Financing Note to Related Party included in Loans from Related Parties 50,000 — 50,000 50,000 — 50,000 June 2019 Convertible Debenture 300,000 (54,178) 245,822 — — — Total $ 577,000 $ (65,387) $ 511,613 $ 277,000 $ (72,181) $ 204,819 Bridge Financing Notes Between June and November 2016, the Company issued eleven 837,000 222,000 one year April 30, 2022 8 0.025 3 million 277,000 72,000 11,000 16,000 17,000 26,000 103,000 April 30, 2022 87,000 June 2019 Convertible Debenture On June 21, 2019, the Company entered into a securities purchase agreement to borrow up to $ 3,000,000 2,100,000 400,000 500,000 eight 0.05 80 60 In addition, the holder received warrants to purchase an aggregate of 50 million 0.04 0.02 398,000 The Company evaluated the conversion feature and concluded that it should be bifurcated and accounted for as a derivative liability due to the variable conversion feature which does not contain an explicit limit on the number of shares that are required to be issued upon conversion. In addition, the Company concluded the warrants required treatment as derivative liabilities as the Company could not assert it has sufficient authorized but unissued shares to settle the warrants upon exercise when taking into account other stock-based commitments including the Convertible Debentures. Accordingly, the embedded conversion feature and warrants were recorded at fair value at issuance and are subsequently re-measured to fair value each reporting period. In June 2020, the Company extended the maturity dates of Tranche 1 and Tranche2 to August 21, 2020 50,000 50,000 On July 27, 2020 50,000 700,000 August 21, 2020 750,000 September 30, 2020 November 30, 2020 1,900,000 300,000 During the year ended September 30, 2020, the lender converted approximately $ 1,200,000 139,000 300,000 In November 2020, the Company made a $ 300,000 The fair value of the embedded conversion feature at September 30, 2020 was determined utilizing a Geometric Brownian Motion Stock Path Based Monte Carlo Simulation that utilized the following key assumptions: September 30, 2020 Stock Price $ 0.006 Fixed Exercise Price $ 0.05 Volatility 122 % Term (Years) 0.17 Risk Free Rate 0.10 % In addition to the fixed exercise price noted above, the model incorporated the variable conversion price which is simulated as 80 |
FAIR VALUE MEASUREMENT
FAIR VALUE MEASUREMENT | 9 Months Ended |
Jun. 30, 2021 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE MEASUREMENT | NOTE 7 – FAIR VALUE MEASUREMENT Fair value is defined as the price that would be received upon the sale of an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Fair value measurements are classified and disclosed in one of the following categories: Level 1: Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities. The Company considers active markets as those in which transactions for the assets or liabilities occur in sufficient frequency and volume to provide pricing information on an ongoing basis. Level 2: Quoted prices in markets that are not active, or inputs which are observable, either directly or indirectly, for substantially the full term of the asset or liability. This category includes those derivative instruments that the Company values using observable market data. Substantially all of these inputs are observable in the marketplace throughout the term of the derivative instrument, can be derived from observable data, or are supported by observable levels at which transactions are executed in the marketplace. Instruments in this category include non-exchange traded derivative financial instruments as well as warrants to purchase common stock and long-term incentive plan liabilities calculated using the Black-Scholes model to estimate the fair value as of the measurement date. Level 3: Measured based on prices or valuation models that require inputs that are both significant to the fair value measurement and less observable from objective sources (i.e. supported by little or no market activity). As required by ASC 820-10, financial assets and liabilities are classified based on the lowest level of input that is significant to the fair value measurement. The Company’s assessment of the significance of a particular input to the fair value measurement requires judgment and may affect the valuation of the fair value of assets and liabilities and their placement within the fair value hierarchy levels. Fair Value on a Recurring Basis The following table sets forth by level within the fair value hierarchy the Company’s derivative financial instruments that were accounted for at fair value on a recurring basis as of September 30, 2020, and June 30, 2021, respectively: Description Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Other Unobservable Inputs (Level 3) Total Fair Derivative Financial Instrument at September 30, 2020 $ — $ (1,070,551 ) $ — $ (1,070,551 ) Derivative Financial Instrument at June 30, 2021 $ — $ (1,332,229 ) $ — $ (1,332,229 ) The change in derivative financial instruments for the nine months ended June 30, 2021 is as follows: September 30, 2020 balance $ (1,070,551) New derivative instruments issued — Derivative instruments extinguished 46,261 Change in fair value (307,939) June 30, 2021 balance $ (1,332,229) Non-recurring fair value assessments include oil and natural gas impairments and stock-based compensation. During the nine months ended June 30, 2021 and 2020, the Company recorded an impairment charge of nil and approximately $ 2,125,000 65,000 none 968,000 498,000 |
COMMON STOCK_PAID IN CAPITAL
COMMON STOCK/PAID IN CAPITAL | 9 Months Ended |
Jun. 30, 2021 | |
Stockholders’ Equity | |
COMMON STOCK/PAID IN CAPITAL | NOTE 8 – COMMON STOCK/PAID IN CAPITAL Nine Months Ended June 30, 2021 In October 2020, the Company issued approximately 17.5 million 0.1 million Nine Months Ended June 30, 2020 The Company issued approximately 106 million 2.1 million The Company issued 38,423,221 1,536,929 1,613,775 77,000 |
STOCK-BASED COMPENSATION
STOCK-BASED COMPENSATION | 9 Months Ended |
Jun. 30, 2021 | |
Share-based Payment Arrangement [Abstract] | |
STOCK-BASED COMPENSATION | NOTE 9 – STOCK-BASED COMPENSATION Stock-based compensation cost is measured at the grant date, based on the estimated fair value of the award using the Black Scholes option pricing model, and is recognized over the vesting period. The Company recognized stock-based compensation of approximately $ 65,000 961,000 65,000 961,000 498,000 During the nine months ended June 30, 2020, upon the passing of a member of the management team, the Company modified a stock option grant for three million 8,000 The following table summarizes the Company’s stock option activity during the nine months ended June 30, 2021: Number of Options Weighted Average Weighted Average Outstanding at September 30, 2020 104,500,000 $ 0.0604 4.5 Granted 41,500,000 0.004 — Exercised — — — Cancelled — — — Outstanding at June 30, 2021 146,000,000 $ 0.0444 4.0 Vested and expected to vest 146,000,000 $ 0.0444 4.0 Exercisable at June 30, 2021 104,500,000 $ 0.0604 3.8 As of June 30, 2021, there was approximately $0.0 6 |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 9 Months Ended |
Jun. 30, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | NOTE 10 – COMMITMENTS AND CONTINGENCIES From time to time, the Company may become involved in litigation relating to claims arising out of its operations in the normal course of business. No legal proceedings, government actions, administrative actions, investigations or claims are currently pending against us or involve the Company. In July 2018, the Company entered into a 39 5,000 $94,000 $97,000 $99,000 $14,000 $24,000 $25,000 The Company reached an agreement in August 2018 for the settlement of approximately $ 1 million 0.16 million 10 million 1.3 million 0.7 million |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 9 Months Ended |
Jun. 30, 2021 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | NOTE 11 – SUBSEQUENT EVENTS The Company’s office lease has been extended for 12 30 The Company completed a review and analysis of all events that occurred after the condensed balance sheet date to determine if any such events must be reported and has determined that there are no other subsequent events to be disclosed. |
SIGNIFICANT ACCOUNTING POLICI_2
SIGNIFICANT ACCOUNTING POLICIES (Policies) | 9 Months Ended |
Jun. 30, 2021 | |
Accounting Policies [Abstract] | |
Cash | Cash GulfSlope considers highly liquid investments with original maturities to the Company of three months or less to be cash equivalents. There were no cash equivalents at June 30, 2021 and September 30, 2020. |
Liquidity / Going Concern | Liquidity / Going Concern The Company has incurred accumulated losses as of June 30, 2021 of $ 59.7 12 1.7 1.8 10 10 11.9 million |
Accounts Receivable | Accounts Receivable The Company records accounts receivable for the sale of crude oil, NGL, and natural gas production, and joint interest billings to our partners for their share of expenses on joint venture properties for which we are the operator. The Company estimates allowances for doubtful accounts based on the aged receivable balances and historical losses. If the Company determines any account to be uncollectible based on significant delinquency or other factors, the receivable and the underlying asset are assessed for recovery. As of June 30, 2021 and September 30, 2020, there was no allowance for doubtful accounts receivable. Gross accounts receivable was nil and approximately $ 0.4 million |
Full Cost Method | Full Cost Method The Company uses the full cost method of accounting for its oil and gas exploration and development activities. Under the full cost method of accounting, all costs associated with successful and unsuccessful exploration and development activities are capitalized on a country-by-country basis into a single cost center (“full cost pool”). Such costs include property acquisition costs, geological and geophysical (“G&G”) costs, carrying charges on non-producing properties, costs of drilling both productive and non-productive wells. Overhead costs, which includes employee compensation and benefits including stock-based compensation, incurred that are directly related to acquisition, exploration and development activities are capitalized. Interest expense is capitalized related to unevaluated properties and wells in process during the period in which the Company is incurring costs and expending resources to get the properties ready for their intended purpose. For significant investments in unproved properties and major development projects that are not being currently depreciated, depleted, or amortized and on which exploration or development activities are in progress, interest costs are capitalized. Proceeds from property sales will generally be credited to the full cost pool, with no gain or loss recognized, unless such a sale would significantly alter the relationship between capitalized costs and the proved reserves attributable to these costs. A significant alteration would typically involve a sale of 25% or more of the proved reserves related to a single full cost pool. Proved properties are amortized on a country-by-country basis using the units of production method (“UOP”), whereby capitalized costs are amortized over total proved reserves. The amortization base in the UOP calculation includes the sum of proved property, net of accumulated depreciation, depletion and amortization (“DD&A”), estimated future development costs (future costs to access and develop proved reserves), and asset retirement costs, less related salvage value. The costs of unproved properties and related capitalized costs (such as G&G costs) are withheld from the amortization calculation until such time as they are either developed or abandoned. Unproved properties and properties under development are reviewed for impairment at least quarterly and are determined through an evaluation that considers, among other factors, seismic data, requirements to relinquish acreage, drilling results, remaining time in the commitment period, remaining capital plan, and political, economic, and market conditions. In countries where proved reserves exist, exploratory drilling costs associated with dry holes are transferred to proved properties immediately upon determination that a well is dry and amortized accordingly. In countries where a reserve base has not yet been established, impairments are charged to earnings. At June 30, 2021, the Company continues to pursue the development of its unproved properties and is actively finalizing the permitting of the Tau No. 2 well. As such, project economics continue to support cost incurred plus future development therefore no impairment is required at June 30, 2021. Companies that use the full cost method of accounting for oil and natural gas exploration and development activities are required to perform a ceiling test calculation each quarter. The full cost ceiling test is an impairment test prescribed by SEC Regulation S-X Rule 4-10. The ceiling test is performed quarterly, on a country-by-country basis, utilizing the average of prices in effect on the first day of the month for the preceding twelve-month period. The cost center ceiling is defined as the sum of (a) estimated future net revenues, discounted at 10% per annum, from proved reserves, (b) the cost of properties not being amortized, if any, and (c) the lower of cost or market value of unproved properties included in the cost being amortized. If such capitalized costs exceed the ceiling, the Company will record a write-down to the extent of such excess as a non-cash charge to earnings. Any such write-down will reduce earnings in the period of occurrence and results in a lower depreciation, depletion and amortization rate in future periods. A write-down may not be reversed in future periods even though higher oil and natural gas prices may subsequently increase the ceiling. The Company capitalizes exploratory well costs into oil and gas properties until a determination is made that the well has either found proved reserves or is impaired. If proved reserves are found, the capitalized exploratory well costs are reclassified to proved properties. The well costs are charged to expense if the exploratory well is determined to be impaired. Capitalized exploratory well costs remain pending the outcome of exploration activities involving the drilling of the Tau No. 2 well (twin well). Accordingly, these costs are included as suspended well costs at June 30, 2021 and it is expected that a final analysis will be completed upon the drilling of the Tau No. 2 well or within the next twelve months at which time the costs will be transferred to the full cost pool upon final evaluation. As of June 30, 2021, the Company’s oil and gas properties consisted of unproved properties, wells in process and no proved reserves. Due to a combination of the COVID-19 pandemic and related pressures on the global supply-demand balance for crude oil and related products, commodity prices significantly declined in 2020. Despite a strong recovery of prices in 2021, oil and gas operators have reduced exploration budgets and activity. The Company has evaluated the effect of these factors on its business and notes these factors have caused a delay in the plans for the Company’s 2021 drilling program. The Company continues to monitor the economic environment and evaluate the impact on the business. |
Asset Retirement Obligations | Asset Retirement Obligations The Company’s asset retirement obligations will represent the present value of the estimated future costs associated with plugging and abandoning oil and natural gas wells, removing production equipment and facilities and restoring the seabed in accordance with the terms of oil and gas leases and applicable state and federal laws. Determining asset retirement obligations requires estimates of the costs of plugging and abandoning oil and natural gas wells, removing production equipment and facilities and restoring the sea bed as well as estimates of the economic lives of the oil and gas wells and future inflation rates. The resulting estimate of future cash outflows will be discounted using a credit-adjusted risk-free interest rate that corresponds with the timing of the cash outflows. Cost estimates will consider historical experience, third party estimates, the requirements of oil and natural gas leases and applicable local, state and federal laws, but do not consider estimated salvage values. Asset retirement obligations will be recognized when the wells drilled reach total depth or when the production equipment and facilities are installed or acquired with an associated increase in proved oil and gas property costs. Asset retirement obligations will be accreted each period through depreciation, depletion and amortization to their expected settlement values with any difference between the actual cost of settling the asset retirement obligations and recorded amount being recognized as an adjustment to proved oil and gas property costs. Cash paid to settle asset retirement obligations will be included in net cash provided by operating activities from continuing operations in the statements of cash flows. On a quarterly basis, when indicators suggest there have been material changes in the estimates underlying the obligation, the Company reassesses its asset retirement obligations to determine whether any revisions to the obligations are necessary. At least annually, the Company will assess all of its asset retirement obligations to determine whether any revisions to the obligations are necessary. Future revisions could occur due to changes in estimated costs or well economic lives, or if federal or state regulators enact new requirements regarding plugging and abandoning oil and natural gas wells. The Company drilled two |
Derivative Financial Instruments | Derivative Financial Instruments The accounting treatment for derivative financial instruments requires that the Company Prior to November 19, 2020, the Company had a certain note payable which contained a variable conversion feature with no floor, and accordingly, the Company |
Basic and Dilutive Earnings Per Share | Basic and Dilutive Earnings Per Share Basic income (loss) per share (“EPS”) is computed by dividing net income (loss) (the numerator) by the weighted average number of common shares outstanding for the period (denominator). Diluted EPS is computed by dividing net income (loss) by the weighted average number of common shares and potential common shares outstanding (if dilutive) during each period. Potential common shares include stock options, warrants, and convertible notes payable. The number of potential common shares outstanding relating to stock options and warrants, is computed using the treasury stock method. The number of potential common shares related to convertible notes payable is determined using the if-converted method. As the Company has incurred losses for the three and nine months ended June 30, 2021 and 2020, the potentially dilutive shares are anti-dilutive and are thus not added into the loss per share calculations. As of June 30, 2021 and 2020, there were 299,064,844 586,722,166 |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. |
Recently Adopted Accounting Pronouncements | Recently Adopted Accounting Pronouncements In February 2016, the FASB issued ASU No. 2016-02, “Leases”, and in March 2019, the FASB issued ASU No. 2019-01, “Leases: Codification Improvements”, which updated the accounting guidance related to leases to increase transparency and comparability among organizations by recognizing lease assets and lease liabilities on the balance sheet and disclosing key information about leasing arrangements. They also clarify implementation issues. These updates are effective for public companies for annual periods beginning after December 15, 2018, including interim periods therein. Accordingly, the standard was adopted by the Company on October 1, 2019. The standard was applied utilizing a modified retrospective approach and is reflected in these financial statements. In June 2018, the FASB issued ASU 2018-07, Compensation-Stock Compensation (Topic 718) The Company has evaluated all other recent accounting pronouncements and believes that none of them will have a significant effect on the Company’s financial statements. |
NOTES PAYABLE (Tables)
NOTES PAYABLE (Tables) | 9 Months Ended |
Jun. 30, 2021 | |
Debt Disclosure [Abstract] | |
The Company’s notes payable consisted of the following as of September 30, 2020 and June 30, 2021. | The Company’s notes payable consisted of the following as of September 30, 2020 and June 30, 2021. September 30, 2020 June 30, 2021 PPP Loan Payable $ 100,300 $ — Insurance Note Payable 20,527 — Total $ 120,827 $ — |
CONVERTIBLE NOTES PAYABLE (Tabl
CONVERTIBLE NOTES PAYABLE (Tables) | 9 Months Ended |
Jun. 30, 2021 | |
Debt Disclosure [Abstract] | |
The Company’s convertible promissory notes consisted of the following as of September 30, 2020, and June 30, 2021 | The Company’s convertible promissory notes consisted of the following as of September 30, 2020, and June 30, 2021 September 30, 2020 June 30, 2021 Notes Discount Notes, Net Notes Discount Notes Net Bridge Financing Notes $ 227,000 $ (11,209) $ 215,791 $ 227,000 $ (72,181) $ 154,819 Bridge Financing Note to Related Party included in Loans from Related Parties 50,000 — 50,000 50,000 — 50,000 June 2019 Convertible Debenture 300,000 (54,178) 245,822 — — — Total $ 577,000 $ (65,387) $ 511,613 $ 277,000 $ (72,181) $ 204,819 |
The fair value of the embedded conversion feature at September 30, 2020 was determined utilizing a Geometric Brownian Motion Stock Path Based Monte Carlo Simulation that utilized the following key assumptions: | The fair value of the embedded conversion feature at September 30, 2020 was determined utilizing a Geometric Brownian Motion Stock Path Based Monte Carlo Simulation that utilized the following key assumptions: September 30, 2020 Stock Price $ 0.006 Fixed Exercise Price $ 0.05 Volatility 122 % Term (Years) 0.17 Risk Free Rate 0.10 % |
FAIR VALUE MEASUREMENT (Tables)
FAIR VALUE MEASUREMENT (Tables) | 9 Months Ended |
Jun. 30, 2021 | |
Fair Value Disclosures [Abstract] | |
The following table sets forth by level within the fair value hierarchy the Company’s derivative financial instruments that were accounted for at fair value on a recurring basis as of September 30, 2020, and June 30, 2021, respectively: | The following table sets forth by level within the fair value hierarchy the Company’s derivative financial instruments that were accounted for at fair value on a recurring basis as of September 30, 2020, and June 30, 2021, respectively: Description Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Other Unobservable Inputs (Level 3) Total Fair Derivative Financial Instrument at September 30, 2020 $ — $ (1,070,551 ) $ — $ (1,070,551 ) Derivative Financial Instrument at June 30, 2021 $ — $ (1,332,229 ) $ — $ (1,332,229 ) |
The change in derivative financial instruments for the nine months ended June 30, 2021 is as follows: | The change in derivative financial instruments for the nine months ended June 30, 2021 is as follows: September 30, 2020 balance $ (1,070,551) New derivative instruments issued — Derivative instruments extinguished 46,261 Change in fair value (307,939) June 30, 2021 balance $ (1,332,229) |
STOCK-BASED COMPENSATION (Table
STOCK-BASED COMPENSATION (Tables) | 9 Months Ended |
Jun. 30, 2021 | |
Share-based Payment Arrangement [Abstract] | |
The following table summarizes the Company’s stock option activity during the nine months ended June 30, 2021: | The following table summarizes the Company’s stock option activity during the nine months ended June 30, 2021: Number of Options Weighted Average Weighted Average Outstanding at September 30, 2020 104,500,000 $ 0.0604 4.5 Granted 41,500,000 0.004 — Exercised — — — Cancelled — — — Outstanding at June 30, 2021 146,000,000 $ 0.0444 4.0 Vested and expected to vest 146,000,000 $ 0.0444 4.0 Exercisable at June 30, 2021 104,500,000 $ 0.0604 3.8 |
ORGANIZATION AND NATURE OF BU_2
ORGANIZATION AND NATURE OF BUSINESS (Details Narrative) | Jun. 30, 2021Number |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Number of leased federal outer continental shelf blocks | 3 |
SIGNIFICANT ACCOUNTING POLICI_3
SIGNIFICANT ACCOUNTING POLICIES (Details Narrative) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||||
Jun. 30, 2021USD ($) | Jun. 30, 2020USD ($) | Jun. 30, 2021USD ($)shares | Jun. 30, 2020USD ($)shares | Sep. 30, 2019Number | Sep. 30, 2018Number | Sep. 30, 2020USD ($) | |
Accounting Policies [Abstract] | |||||||
Accumulated losses | $ (59,705,493) | $ (59,705,493) | $ (57,981,672) | ||||
Amount of negative working capital | 12,000,000 | 12,000,000 | |||||
Generated losses | 364,313 | $ 2,705,371 | 1,723,821 | $ 3,493,396 | |||
Unrestricted cash | 1,839,886 | 1,839,886 | 3,190,418 | ||||
Minimum capital which company estimated to raise to meet its obligations and planned expenditures | 10,000,000 | ||||||
Outstanding debt obligations | $ 11,900,000 | $ 11,900,000 | |||||
Gross accounts receivable | $ 400,000 | ||||||
Number of wellbores drilled | Number | 2 | 2 | |||||
Antidilutive securities excluded from EPS calculation | shares | 299,064,844 | 586,722,166 |
OIL AND NATURAL GAS PROPERTIES
OIL AND NATURAL GAS PROPERTIES (Details Narrative) | Jul. 27, 2020USD ($) | Dec. 31, 2019shares | May 31, 2019USD ($)ft | Jan. 31, 2019USD ($) | Jun. 30, 2021USD ($)Number | Jun. 30, 2020USD ($) | Jun. 30, 2021USD ($)ft²Numberft | Jun. 30, 2020USD ($) | Sep. 30, 2019Number | Sep. 30, 2018Number |
Number of leased federal outer continental shelf blocks | Number | 3 | 3 | ||||||||
Acres of three-dimensional (3-D) seismic data | ft² | 2,200,000 | |||||||||
Number of wellbores drilled | Number | 2 | 2 | ||||||||
Oil and Gas Properties [Member] | ||||||||||
Amount of interest expense capitalized during period | $ 1,200,000 | $ 2,300,000 | ||||||||
Amount of general and administrative expenses capitalized during period | $ 40,000 | $ 300,000 | $ 100,000 | $ 700,000 | ||||||
Oil and Gas Properties [Member] | Underwriters [Member] | ||||||||||
Percent of working interest | 25.00% | |||||||||
Accounts receivable | $ 6,600,000 | |||||||||
Gulf of Mexico Well Tau [Member] | ||||||||||
Number of wellbores drilled | Number | 2 | |||||||||
Depth of second drilled well | ft | 15,254 | |||||||||
Depth of originally permitted second drilled well | ft | 29,857 | |||||||||
Estimated insurance claim | $ 10,800,000 | |||||||||
Percent of working interest | 100.00% | 100.00% | ||||||||
Received insurance claim | $ 1,200,000 | $ 2,500,000 | ||||||||
Wells in process | 900,000 | |||||||||
Accrued payable | $ 1,600,000 | |||||||||
Number of shares issued for settlement of accrued payable | shares | 38,400,000 | |||||||||
Total depth of first drilled well | ft | 15,254 | |||||||||
Total costs and expenses | $ 4,800,000 |
RELATED PARTY TRANSACTIONS (Det
RELATED PARTY TRANSACTIONS (Details Narrative) - USD ($) | Nov. 15, 2016 | Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Sep. 30, 2017 | Sep. 30, 2020 |
Related Party Transaction [Line Items] | |||||||
Debt face amount | $ 277,000 | $ 277,000 | $ 577,000 | ||||
Accrued interest payable | 2,961,156 | 2,961,156 | $ 2,616,008 | ||||
Proceeds from issuance of convertible notes and warrants | $ 535,300 | ||||||
Accounting Service [Member] | |||||||
Related Party Transaction [Line Items] | |||||||
Accounting consulting services, included in related party payables | 19,000 | $ 15,000 | 56,000 | $ 45,000 | |||
Convertible Notes Payable [Member] | Chief Executive Officer [Member] | |||||||
Related Party Transaction [Line Items] | |||||||
Debt face amount | $ 8,700,000 | ||||||
Interest rate | 5.00% | ||||||
Value of stock issued in conversion of notes payable | $ 5,300,000 | ||||||
Debt conversion, price per share | $ 0.12 | ||||||
Amount owed to related party | 8,700,000 | 8,700,000 | |||||
Accrued interest payable | $ 2,900,000 | $ 2,900,000 | |||||
Promissory Notes [Member] | Related Party [Member] | |||||||
Related Party Transaction [Line Items] | |||||||
Proceeds from issuance of convertible notes and warrants | $ 50,000 |
The Company_s notes payable con
The Company’s notes payable consisted of the following as of September 30, 2020 and June 30, 2021. (Details) - USD ($) | Jun. 30, 2021 | Sep. 30, 2020 |
Short-term Debt [Line Items] | ||
Total | $ 120,827 | |
PPP Loan Payable [Member] | ||
Short-term Debt [Line Items] | ||
Total | 100,300 | |
Insurance Note Payable [Member] | ||
Short-term Debt [Line Items] | ||
Total | $ 20,527 |
The Company_s convertible promi
The Company’s convertible promissory notes consisted of the following as of September 30, 2020, and June 30, 2021 (Details) - USD ($) | Jun. 30, 2021 | Sep. 30, 2020 |
Short-term Debt [Line Items] | ||
Notes | $ 277,000 | $ 577,000 |
Discount | (72,181) | (65,387) |
Notes, Net of Discount | 204,819 | 511,613 |
Bridge Financing Notes [Member] | ||
Short-term Debt [Line Items] | ||
Notes | 227,000 | 227,000 |
Discount | (72,181) | (11,209) |
Notes, Net of Discount | 154,819 | 215,791 |
Bridge Financing Note to Related Party included in Loans from Related Parties [Member] | ||
Short-term Debt [Line Items] | ||
Notes | 50,000 | 50,000 |
Discount | ||
Notes, Net of Discount | 50,000 | 50,000 |
June 2019 Convertible Debenture [Member] | ||
Short-term Debt [Line Items] | ||
Notes | 300,000 | |
Discount | (54,178) | |
Notes, Net of Discount | $ 245,822 |
NOTES PAYABLE (Details Narrativ
NOTES PAYABLE (Details Narrative) - USD ($) | 1 Months Ended | 3 Months Ended | 9 Months Ended | |||||
Nov. 30, 2019 | Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Dec. 17, 2020 | Sep. 30, 2020 | Apr. 16, 2020 | |
Short-term Debt [Line Items] | ||||||||
Principal amount | $ 277,000 | $ 277,000 | $ 577,000 | |||||
Accrued interest | 2,961,156 | 2,961,156 | 2,616,008 | |||||
Gain on debt extinguishment | $ (18,269) | 136,640 | $ (1,617,036) | |||||
PPP Loan Payable [Member] | ||||||||
Short-term Debt [Line Items] | ||||||||
Principal amount | $ 100,300 | |||||||
Accrued interest | $ 600 | |||||||
Gain on debt extinguishment | $ 100,900 | |||||||
Insurance Note Payable [Member] | ||||||||
Short-term Debt [Line Items] | ||||||||
Principal amount | $ 220,629 | |||||||
Insurance policy | $ 241,000 | |||||||
Interest rate | 5.60% | |||||||
Note payable | $ 21,000 |
The fair value of the embedded
The fair value of the embedded conversion feature at September 30, 2020 was determined utilizing a Geometric Brownian Motion Stock Path Based Monte Carlo Simulation that utilized the following key assumptions: (Details) - June 2019 Convertible Debenture [Member] | Sep. 30, 2020$ / shares |
Measurement Input, Share Price [Member] | |
Short-term Debt [Line Items] | |
Debt, measurement input | 0.006 |
Measurement Input, Exercise Price [Member] | |
Short-term Debt [Line Items] | |
Debt, measurement input | 0.05 |
Measurement Input, Price Volatility [Member] | |
Short-term Debt [Line Items] | |
Debt, measurement input | 1.22 |
Measurement Input, Expected Term [Member] | |
Short-term Debt [Line Items] | |
Debt term | 2 months 1 day |
Measurement Input, Risk Free Interest Rate [Member] | |
Short-term Debt [Line Items] | |
Debt, measurement input | 0.0010 |
CONVERTIBLE NOTES PAYABLE (Deta
CONVERTIBLE NOTES PAYABLE (Details Narrative) | Jul. 27, 2020USD ($) | Nov. 06, 2019USD ($) | Aug. 07, 2019USD ($) | Jun. 21, 2019USD ($)$ / sharesshares | Nov. 30, 2020USD ($)Number$ / shares | Jun. 30, 2020USD ($) | Jun. 30, 2021USD ($)$ / shares | Jun. 30, 2020USD ($) | Nov. 30, 2020USD ($)Number$ / shares | Jun. 30, 2021USD ($)$ / shares | Jun. 30, 2020USD ($) | Sep. 30, 2020USD ($) |
Debt Instrument [Line Items] | ||||||||||||
Proceeds from issuance of convertible notes | $ 535,300 | |||||||||||
Principal amount | $ 277,000 | 277,000 | $ 577,000 | |||||||||
Amortization of debt discount | $ 69,525 | 1,690,260 | ||||||||||
Bridge Financing Notes [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Number of convertible promissory notes issued | Number | 11 | 11 | ||||||||||
Proceeds from issuance of convertible notes | $ 837,000 | |||||||||||
Maturity term | 1 year | |||||||||||
Maturity date | Apr. 30, 2022 | |||||||||||
Interest rate | 8.00% | 8.00% | ||||||||||
Conversion price (in dollars per share) | $ / shares | $ 0.025 | $ 0.025 | ||||||||||
Qualified equity financing amount | $ 3,000,000 | $ 3,000,000 | ||||||||||
Principal amount | 277,000 | $ 277,000 | 277,000 | |||||||||
Remaining debt unamortized discount | 72,000 | 72,000 | $ 11,000 | |||||||||
Amortization of debt discount | $ 16,000 | $ 17,000 | $ 26,000 | $ 103,000 | ||||||||
Warrants maturity date | Apr. 30, 2022 | Apr. 30, 2022 | ||||||||||
Additional debt discount | $ 87,000 | |||||||||||
Bridge Financing Notes [Member] | Related Parties [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Proceeds from issuance of convertible notes | $ 222,000 | |||||||||||
June 2019 Convertible Debenture [Member] | Securities Purchase Agreement [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Maturity date | Nov. 30, 2020 | |||||||||||
Interest rate | 8.00% | |||||||||||
Conversion price (in dollars per share) | $ / shares | $ 0.05 | |||||||||||
Principal amount | $ 3,000,000 | |||||||||||
Additional debt discount | $ 50,000 | |||||||||||
Percentage of variable conversion price | 80.00% | 80.00% | ||||||||||
Percentage of variable conversion price in default | 60.00% | |||||||||||
Offering costs | $ 398,000 | |||||||||||
Outstanding debt amount | $ 1,900,000 | $ 300,000 | ||||||||||
Maximum amount agreed to convert | 300,000 | |||||||||||
June 2019 Convertible Debenture [Member] | Securities Purchase Agreement [Member] | Debt Instrument, Redemption, Period One [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Debt payments due | $ 50,000 | |||||||||||
Debt repayment period end date | Jul. 27, 2020 | |||||||||||
June 2019 Convertible Debenture [Member] | Securities Purchase Agreement [Member] | Debt Instrument, Redemption, Period Two [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Debt payments due | $ 700,000 | |||||||||||
Debt repayment period end date | Aug. 21, 2020 | |||||||||||
June 2019 Convertible Debenture [Member] | Securities Purchase Agreement [Member] | Debt Instrument, Redemption, Period Three [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Debt payments due | $ 750,000 | |||||||||||
Debt repayment period end date | Sep. 30, 2020 | |||||||||||
June 2019 Convertible Debenture [Member] | Securities Purchase Agreement [Member] | Warrant [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Number of warrants issued | shares | 50,000,000 | |||||||||||
Warrant exercise price (in dollars per share) | $ / shares | $ 0.04 | $ 0.02 | $ 0.02 | |||||||||
June 2019 Convertible Debenture [Member] | Securities Purchase Agreement [Member] | Tranche One [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Proceeds from issuance of convertible notes | $ 2,100,000 | |||||||||||
Maturity date | Aug. 21, 2020 | |||||||||||
Principal amount converted | 1,200,000 | |||||||||||
Accrued interest amount converted | $ 139,000 | |||||||||||
June 2019 Convertible Debenture [Member] | Securities Purchase Agreement [Member] | Tranche Two [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Proceeds from issuance of convertible notes | $ 400,000 | |||||||||||
Maturity date | Aug. 21, 2020 | |||||||||||
June 2019 Convertible Debenture [Member] | Securities Purchase Agreement [Member] | Tranche Three [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Proceeds from issuance of convertible notes | $ 500,000 | |||||||||||
Convertible Debentures One [Member] | Securities Purchase Agreement [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Repayment of convertible notes | $ 300,000 |
The following table sets forth
The following table sets forth by level within the fair value hierarchy the Company’s derivative financial instruments that were accounted for at fair value on a recurring basis as of September 30, 2020, and June 30, 2021, respectively: (Details) - Fair Value, Recurring [Member] - USD ($) | Jun. 30, 2021 | Sep. 30, 2020 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative Financial Instrument | $ (1,332,229) | $ (1,070,551) |
Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative Financial Instrument | ||
Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative Financial Instrument | (1,332,229) | (1,070,551) |
Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative Financial Instrument |
The change in derivative financ
The change in derivative financial instruments for the nine months ended June 30, 2021 is as follows: (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Change in fair value | $ 148,976 | $ (235,412) | $ (307,939) | $ 1,503,392 |
Fair Value, Recurring [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Derivative Financial Instrument, beginning | (1,070,551) | |||
New derivative instruments issued | ||||
Derivative instruments extinguished | 46,261 | |||
Change in fair value | (307,939) | |||
Derivative Financial Instrument, ending | $ (1,332,229) | $ (1,332,229) |
FAIR VALUE MEASUREMENT (Details
FAIR VALUE MEASUREMENT (Details Narrative) - USD ($) | 9 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Fair Value Disclosures [Abstract] | ||
Asset Impairment Charges | $ 2,125,000 | |
Stock-based compensation | $ 65,000 | 968,000 |
Stock-based compensation capitalized | $ 0 | $ 498,000 |
COMMON STOCK_PAID IN CAPITAL (D
COMMON STOCK/PAID IN CAPITAL (Details Narrative) - USD ($) | 1 Months Ended | 3 Months Ended | 9 Months Ended | ||
Oct. 31, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Class of Stock [Line Items] | |||||
Common Stock issued in settlement of debt | |||||
Common stock issued for conversion of convertible note payable and accrued interest | $ 382,564 | $ 2,080,626 | |||
Stock Issued to extinguish liability | 1,536,929 | ||||
Gain (loss) on extinguishment of debt | $ (18,269) | $ 136,640 | $ (1,617,036) | ||
Convertible Notes Payable [Member] | |||||
Class of Stock [Line Items] | |||||
Common stock issued for conversion of convertible note payable and accrued interest (in shares) | 106,000,000 | ||||
Common stock issued for conversion of convertible note payable and accrued interest | $ 2,100,000 | ||||
Common Stock [Member] | |||||
Class of Stock [Line Items] | |||||
Common Stock issued in settlement of debt (in shares) | 17,500,000 | 17,500,000 | |||
Common Stock issued in settlement of debt | $ 17,500 | ||||
Common stock issued for conversion of convertible note payable and accrued interest (in shares) | 23,910,247 | 105,557,528 | |||
Common stock issued for conversion of convertible note payable and accrued interest | $ 23,910 | $ 105,558 | |||
Stock Issued to extinguish liability (in shares) | 38,423,221 | ||||
Stock Issued to extinguish liability | $ 38,423 | ||||
Debt amount extinguished | 1,613,775 | ||||
Gain (loss) on extinguishment of debt | $ 77,000 | ||||
Additional Paid in Capital Shares to Be Issued [Member] | |||||
Class of Stock [Line Items] | |||||
Common Stock issued in settlement of debt | $ (105,000) | $ (105,000) |
The following table summarizes
The following table summarizes the Company’s stock option activity during the nine months ended June 30, 2021: (Details) - $ / shares | 9 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Share-based Payment Arrangement [Abstract] | ||
Outstanding at beginning of period, number of options | 104,500,000 | |
Outstanding at beginning of period, weighted average exercise price | $ 0.0604 | |
Outstanding, weighted average remaining contractual term | 4 years | 4 years 6 months |
Granted, number of options | 41,500,000 | |
Granted, weighted average exercise price | $ 0.004 | |
Exercised, number of options | ||
Exercised, weighted average exercise price | ||
Cancelled, number of options | ||
Cancelled, weighted average exercise price | ||
Outstanding at end of period, number of options | 146,000,000 | |
Outstanding at end of period, weighted average exercise price | $ 0.0444 | |
Vested and expected to vest, number of options | 146,000,000 | |
Vested and expected to vest, weighted average exercise price | $ 0.0444 | |
Vested and expected to vest, weighted average remaining contractual term | 4 years | |
Exercisable at end of period, number of options | 104,500,000 | |
Exercisable at end of period, weighted average exercise price | $ 0.0604 | |
Exercisable at end of period, weighted average remaining contractual term | 3 years 9 months 18 days |
STOCK-BASED COMPENSATION (Detai
STOCK-BASED COMPENSATION (Details Narrative) - USD ($) | 9 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Share-based Payment Arrangement [Abstract] | ||
Stock-based compensation | $ 65,000 | $ 961,000 |
Stock-based compensation expense capitalized to unproved properties | $ 0 | $ 498,000 |
Number of options immediately vested | 3,000,000 | |
Additional compensation expense | $ 8,000 | |
Unrecognized stock-based compensation expense | $ 60,000 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Details Narrative) | Aug. 31, 2018USD ($) | Aug. 31, 2018USD ($)shares | Jul. 31, 2018USD ($)ft² | Jun. 30, 2021USD ($) | Sep. 30, 2020USD ($) |
Other Commitments [Line Items] | |||||
Lease term | 39 months | ||||
Office space | ft² | 5,000 | ||||
Annual base rent for the first 18 months | $ 94,000 | ||||
Annual base rent - year two | $ 97,000 | ||||
Annual base rent - year three | 99,000 | ||||
Right-of-use asset | 14,473 | $ 54,768 | |||
Operating lease liability | 24,378 | 62,074 | |||
Remaining payment | 25,000 | ||||
Principal amount | 277,000 | $ 577,000 | |||
Fair value liability | 700,000 | ||||
Vendor [Member] | |||||
Other Commitments [Line Items] | |||||
Principal amount | $ 1,000,000 | $ 1,000,000 | |||
Repayments of Debt | $ 160,000 | ||||
Common Stock issued in settlement of debt (in shares) | shares | 10,000,000 | ||||
Vendor [Member] | Minimum [Member] | |||||
Other Commitments [Line Items] | |||||
Gain on sale of stock by vendor in excess | $ 1,300,000 | ||||
TEXAS | |||||
Other Commitments [Line Items] | |||||
Right-of-use asset | 14,000 | ||||
Operating lease liability | $ 24,000 |
SUBSEQUENT EVENTS (Details Narr
SUBSEQUENT EVENTS (Details Narrative) - Subsequent Event [Member] | 2 Months Ended |
Aug. 16, 2021 | |
Subsequent Event [Line Items] | |
Office lease extension period | 12 months |
Notice period for lease cancellation | 30 days |