Petrolia Energy (BBLSQ) 10-Q 16 Nov 16 2016 Q3 Quarterly report Financial data

Document And Entity Information

Document And Entity Information - shares	9 Months Ended
	Sep. 30, 2016	Nov. 14, 2016
Document and Entity Information [Abstract]
Entity Registrant Name	Petrolia Energy Corporation
Document Type	10-Q
Current Fiscal Year End Date	--12-31
Entity Common Stock, Shares Outstanding		78,604,741
Amendment Flag	false
Entity Central Index Key	1,368,637
Entity Current Reporting Status	Yes
Entity Voluntary Filers	No
Entity Filer Category	Smaller Reporting Company
Entity Well-known Seasoned Issuer	No
Document Period End Date	Sep. 30, 2016
Document Fiscal Year Focus	2,016
Document Fiscal Period Focus	Q3

BALANCE SHEETS (Unaudited)

BALANCE SHEETS (Unaudited) - USD ($)	Sep. 30, 2016	Dec. 31, 2015
Current assets
Cash	$ 12,071	$ 3,091
Accounts receivable	170,689	48,633
Inventory	113,531	0
Other current assets	29,225	31,049
Total current assets	325,516	82,773
Oil and gas, on the basis of full cost accounting
Evaluated properties	13,331,768	4,733,853
Furniture, equipment & software	200,416	108,234
Less accumulated depreciation	(1,096,608)	(1,045,644)
Net property and equipment	12,435,576	3,796,443
Other Assets
Intangible assets	49,886	0
Note receivable	316,800	316,800
Total Assets	13,127,778	4,196,016
Current liabilities
Accounts payable	317,927	169,564
Accrued liabilities	351,357	130,582
Convertible debt – related party, net of discount of $0 and $171,573	550,000	378,427
Current maturities of installment notes payable	111,186	21,144
Note Payable to Affiliates	1,247,980	192,875
Deferred rent	2,816	2,816
Total current liabilities	2,581,266	895,408
Asset retirement obligations	284,856	213,328
Note Payable to Affiliates – Long Term	2,904,020	0
Note Payable – related party	0	6,652
Total Liabilities	5,770,142	1,115,388
Stockholders’ Equity
Preferred stock, $0.10 par value, 1,000,000 shares authorized; No shares issued & outstanding	0	0
Common stock, $.001 par value; 150,000,000 shares authorized; 78,079,741 and 42,839,958 shares issued and outstanding	78,080	42,840
Additional paid in capital	14,672,748	9,129,629
Accumulated deficit	(7,393,192)	(6,091,841)
Total Stockholders’ Equity	7,357,636	3,080,628
Total Liabilities and Stockholders’ Equity	$ 13,127,778	$ 4,196,016

BALANCE SHEETS (Unaudited) (Par

BALANCE SHEETS (Unaudited) (Parentheticals) - USD ($)	Sep. 30, 2016	Dec. 31, 2015
Convertible debt, discount (in Dollars)	$ 0	$ 171,573
Preferred stock, par value (in Dollars per share)	$ 0.10	$ 0.10
Preferred stock, shares authorized	1,000,000	1,000,000
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Common stock par value (in Dollars per share)	$ 0.001	$ 0.001
Common stock, shares authorized	150,000,000	150,000,000
Common stock, shares issued	78,079,741	42,839,958
Common stock, shares outstanding	78,079,741	42,839,958

STATEMENT OF OPERATIONS (Unaudi

STATEMENT OF OPERATIONS (Unaudited) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Oil and gas sales
Oil and gas sales	$ 21,863	$ 34,689	$ 79,156	$ 162,848
Equipment sales	0	0	198,000	0
Total Revenue	21,863	34,689	277,156	162,848
Operating expenses
Lease operating expense	47,621	45,368	155,424	179,422
Cost of equipment sold	0	0	33,330	0
Production tax	1,074	1,447	3,846	7,364
General and administrative expenses	508,329	122,203	1,139,432	365,686
Depreciation, depletion and amortization	15,764	19,727	50,964	78,937
Impairment of Oil & Gas Properties	0	0	0	668,073
Asset retirement obligation accretion	8,199	8,733	21,232	8,733
Total operating expenses	580,987	197,478	1,404,228	1,308,215
Loss from operations	(559,124)	(162,789)	(1,127,072)	(1,145,367)
Other Income (expenses)
Interest (expense)	(53,811)	(49,851)	(211,288)	(137,881)
Other income	16,385	10,000	51,345	18,484
Loss on conveyance of PORRI warrants	0	0	(14,336)	0
Loss on conversion of debt	0	0	0	(69,107)
Net loss	$ (596,550)	$ (202,640)	$ (1,301,351)	$ (1,333,871)
Loss per share (Basic and fully diluted) (in Dollars per share)	$ (0.01)	$ (0.01)	$ (0.03)	$ (0.07)
Weighted average number of common shares outstanding (in Shares)	48,079,201	22,134,757	44,445,850	20,368,565

STATEMENTS OF CASH FLOWS (Unaud

STATEMENTS OF CASH FLOWS (Unaudited) - USD ($)	9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015
Cash Flows from Operating Activities
Net loss	$ (1,301,351)	$ (1,333,871)
Adjustment to reconcile net loss to net cash provided by/(used in) operating activities:
Depreciation and amortization	50,964	78,937
Accretion of debt discount	171,573	103,520
Impairment of Oil & Gas Properties	0	668,073
Loss on Conveyance of PORRI warrants	14,336	69,107
ARO accretion	21,232	8,733
Stock-based compensation expense – Board of Directors	195,264	0
Debt Issuance Costs	22,166	0
Stock-based compensation expense - employees	118,425	44,779
Changes in operating assets and liabilities
Accounts receivable	(122,056)	3,219
Inventory	33,330	0
Other assets	1,824	7,484
Accounts payable	258,470	60,504
Accrued liabilities	220,775	(755)
Net cash flows from operating activities	(315,048)	(290,270)
Cash Flows from Investing Activities
Cash acquired from investment in Askarii	114	0
Proceeds from sale of property and equipment	30,000	4,525
Purchase of fixed asset	(93,476)	(19,854)
Cash flows from investing activities	(63,362)	(15,329)
Cash Flows from Financing Activities
Payments of shareholder advances	(112,000)	(7,000)
Proceeds from shareholder advances	368,000	71,000
Proceeds from issuance of common stock	48,000	238,000
Proceeds from short term loans	85,000	0
Payments on notes payable	(1,610)	(12,638)
Cash flows from financing activities	387,390	289,362
Net change in cash and cash equivalents	8,980	(16,237)
Cash and cash equivalents
Beginning of period	3,091	24,688
End of period	12,071	8,451
SUPPLEMENTAL DISCLOSURES
Interest Paid	24,770	34,361
NON-CASH INVESTING AND FINANCIAL DISCLOSURES
Purchase of Askarii	50,000	0
Initial recognition of asset retirement obligation	50,296	958
Share issued for oil and gas property interest	4,723,186	719,902
Note payable for oil and gas property interest	4,000,000	0
Cancellation of shares	0	400
Transfer to Askarii Inventory	146,861	0
Shares Issued as Payment for Affiliated Note [Member]
NON-CASH INVESTING AND FINANCIAL DISCLOSURES
Debt conversion, original debt amount	146,876	0
Shares Issued as Settlement of Accounts Payable [Member]
NON-CASH INVESTING AND FINANCIAL DISCLOSURES
Debt conversion, original debt amount	110,106	0
Shares Issued as Payment of Shareholder Advances [Member]
NON-CASH INVESTING AND FINANCIAL DISCLOSURES
Debt conversion, original debt amount	150,000	0
Shares Issued for Conversion of Debt [Member]
NON-CASH INVESTING AND FINANCIAL DISCLOSURES
Debt conversion, original debt amount	$ 0	$ 60,000

NOTE 1. ORGANIZATION AND BASIS

NOTE 1. ORGANIZATION AND BASIS OF PRESENTATION	9 Months Ended
	Sep. 30, 2016
Disclosure Text Block [Abstract]
Organization, Consolidation and Presentation of Financial Statements Disclosure [Text Block]	NOTE 1. ORGANIZATION AND BASIS OF PRESENTATION: Petrolia Energy Corporation (“we”, “us”, “Petrolia” and the “Company”) an oil and gas exploration, development, and production company. The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America and the rules of the Securities and Exchange Commission (“SEC”). Basis of Presentation The accompanying unaudited interim financial statements of the Company have been prepared in accordance with accounting principles generally accepted in the United States of America and the rules of the Securities and Exchange Commission (“SEC”), and should be read in conjunction with the audited financial statements and notes thereto contained in the Company’s latest Annual Report filed with the SEC on Form 10-K. In the opinion of management, all adjustments, consisting of normal recurring adjustments, necessary for a fair presentation of the results of operations for the interim periods presented have been reflected herein. The results of operations for such interim periods are not necessarily indicative of operations for a full year. Notes to the consolidated financial statements which would substantially duplicate the disclosure contained in the audited financial statements for the most recent fiscal year, 2015, as reported in Form 10-K, have been omitted. The consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries, Askarii Resources, LLC (“Askarii”) and SUDS Properties LLC (acquired on September 28, 2016. Our subsidiary, Askarii, operates in the oil field services industry, providing equipment and services to various oil field related companies. All significant intercompany transactions are eliminated in the consolidation process. Since the single subsidiary is wholly-owned, all non intercompany balances are included in the consolidated financial statement balances.

NOTE 2. SUMMARY OF SIGNIFICANT

NOTE 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	9 Months Ended
	Sep. 30, 2016
Accounting Policies [Abstract]
Significant Accounting Policies [Text Block]	NOTE 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES A summary of the significant accounting policies applied in the preparation of the accompanying unaudited consolidated financial statements follows. Management Estimates - Inventories - Intangible Assets - Our intangible assets are subject to amortization and are amortized using the straight-line method over their estimated period of benefit. Intangible assets acquired as part of a business combination are capitalized at their acquisition-date fair value. Equipment sales - when the significant risks and rewards of ownership have been transferred to the buyer and the recovery of the consideration is probable. Recent Accounting Pronouncements The Company has evaluated all the recent accounting pronouncements through the filing date and believes that none of them will have a material effect on the Company.

NOTE 3. GOING CONCERN

NOTE 3. GOING CONCERN	9 Months Ended
	Sep. 30, 2016
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Substantial Doubt about Going Concern [Text Block]	NOTE 3. GOING CONCERN The Company has suffered recurring losses from operations. These conditions raise substantial doubt about the Company’s ability to continue as a going concern. The Company plans to generate profits by reworking its existing oil or gas wells and drilling additional wells, as needed. The Company will need to raise funds through either the sale of its securities, issuance of corporate bonds, joint venture agreements and/or bank financing to accomplish its goals. If additional financing is not available when needed, the Company may need to cease operations. The Company may not be successful in raising the capital needed to drill and/or rework existing oil wells. Any additional wells that the Company may drill may be non-productive. Management believes that actions presently being taken to secure additional funding for the reworking of its existing infrastructure will provide the opportunity for the Company to continue as a going concern. Since the Company has an oil producing asset, its goal is to increase the production rate by optimizing its current infrastructure. The accompanying financial statements have been prepared assuming the Company will continue as a going concern; no adjustments to the financial statements have been made to account for this uncertainty.

NOTE 4. NOTES PAYABLE - RELATED

NOTE 4. NOTES PAYABLE - RELATED PARTY	9 Months Ended
	Sep. 30, 2016
Receivables [Abstract]
Loans, Notes, Trade and Other Receivables Disclosure [Text Block]	NOTE 4. NOTES PAYABLE – RELATED PARTY On June 30, 2016, the maturity date of the $350,000 and $200,000 Convertible Secured Promissory Notes (the “Notes”) between the Company and Rick Wilber (“Holder”) were extended to December 31, 2016. If at any time prior to December 31, 2016, the Company pays the Holder $500,000 on the Notes (together with all accrued interest), the Company will receive a $50,000 discount on the total principal amount of $550,000 outstanding under the Notes. If the Notes are fully paid by the Company, the Company will issue new warrants for the purchase of 500,000 shares of stock at an exercise price of $0.15 per share that will expire five (5) years from the grant date (and the old warrants will be extinguished). If payment is not made before December 31, 2016, no discount is allowed. During the nine months ended September 30, 2016 and 2015 the Company amortized $171,573 and $103,520, respectively, of debt discount to interest expense. At September 30, 2016 the remaining unamortized debt discount is $0. Purchase and Sale Agreement With an effective date of September 28 2016, the Company acquired an additional 50% net working interest (bringing the Company’s interest to 60%) in the Slick Unit Dutcher Sands field (“SUDS”) located in Creek County Oklahoma, based on a Purchase and Sale Agreement between the Company and Jovian Petroleum Corporation and its subsidiaries, Jovian Resources, LLC. and SUDS Properties, LLC (together known as “Jovian”). The largest interest owner of Jovian is Zel C. Khan, our Chief Executive Officer, President and Director, and our Director Quinten Beasley who is the President of Jovian. The Company issued two notes for a combined value of $4,000,000 in exchange for a cumulative 50% working interest in SUDS. One note is a Promissory Note for $1,000,000 bearing interest at 5% per annum and is due on December 31, 2016. If full payment is not made by December 31, 2016, we are entitled to extend the Note to March 31, 2017 by making a $10,000 payment in cash prior to maturity. The Promissory Note is secured by a 12.5% undivided working interest in the SUDS field. Although the note is due on December 31, 2016, in the event the Company closes a financing related to the SUDS field, 50% of the net proceeds received from the financing will be applied to reduce the Note. The second note is a Production Payment Note for $3,000,000 paid out of twenty percent (20%) of the 50% undivided interest of net revenues received in the purchase which are attributable to the SUDS field assets. We are required to make the production payments to seller no later than the end of each calendar month. The Production Payment Note is secured by a 37.5% undivided working interest in the SUDS field. For additional details on the acquisition of property see Note 8.

NOTE 5. EQUITY

NOTE 5. EQUITY	9 Months Ended
	Sep. 30, 2016
Stockholders' Equity Note [Abstract]
Stockholders' Equity Note Disclosure [Text Block]	NOTE 5. EQUITY Preferred Stock – 1,000,000 Common Stock – On February 1, 2016, the Company acquired 100% of the issued and outstanding shares in Askarii Resources, a private Texas based oil & gas service company. The Company acquired Askarii by issuing one million restricted common shares. Based on the current market value of the Company’s stock at $0.05 per share, the aggregate value of the transaction is $50,000. There were minimal tangible assets purchased from Askarii. The final purchase price allocation is as follows: trademarks $10,000, internet/website $5,000, customer lists $10,000 and customer relationships $25,000. On February 10, 2016, a shareholder provided an advance of $20,000 in order to temporarily fund the Company’s working capital needs. On April 1, 2016, in order to compensate the shareholder, the Company issued 285,714 shares in consideration for forgiveness of the debt in full. The valuation of the issuance was $20,000, based on 285,714 shares valued at $0.07 per share on April 1, 2016. On March 11, 2016, the Board of Directors granted three (3) contract employees 700,000 shares of the Company’s restricted common stock for settlement of outstanding payables. The shares were issued at the current market price of $0.06 per share on March 11, 2016, at an aggregate value of $42,000. As a result of the 2015 Annual Meeting of our Stockholders, held on April14, 2016, the shareholders voted to increase the total number of authorized shares of common stock to 150,000,000. On May 2, 2016, the Company paid off its outstanding Promissory Note to Blue Sky NM (“BSNM”) for $146,875. This Note was created when the 15% working interest in the Twin Lakes field was purchased earlier in the year. The payoff was made by issuing 1,468,750 shares of Company common stock. Based on the market value of the stock on May 2, 2016 of $0.10, the value of the transaction was $146,875 and resulted in no gain or loss. In addition, a cash payment of $4,869 was made to pay off the remaining outstanding interest. During the nine months ended September 30, 2016, the Company expensed $25,500 of stock based compensation (for its CEO) related to restricted stock awards. The remaining value to be expensed on these awards is $34,000 at September 30, 2016 On September 1, 2016, the Company issued 3.5 million shares of its restricted common stock to Whistler to acquire an additional 25% working interest ownership of TSLAU. For additional details on the acquisition see Note 8. Share Exchange Agreement On September 28, 2016 the Company issued 24,308,985 shares of its restricted common stock to Jovian, a related party, to acquire 100% (an additional 40% working interest ownership) As a result of the exchange, SUD became a wholly-owned subsidiary of the Company. The purchase price of the shares equates to a $4,373,186 value, based on the $0.1799 per share market price of Petrolia’s shares on September 28, 2016 (the effective date of the transaction). Warrants Summary information regarding common stock warrants granted and outstanding as of and for the nine months ended September 30, 2016, is as follows: Warrants Weighted Average Exercise Price Aggregate intrinsic value Weighted average remaining contractual life (years) Outstanding at year ended December 31, 2015 11,910,111 $ 0.33 $ - 3.52 Granted 4,927,916 0.08 - 2.36 Exercised - - - - Expired - - - - Outstanding at quarter ended September 30, 2016 16,838,027 $ 0.26 $ 479,425 2.69

NOTE 6. COMMITMENTS AND CONTING

NOTE 6. COMMITMENTS AND CONTINGENCIES	9 Months Ended
	Sep. 30, 2016
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies Disclosure [Text Block]	NOTE 6. COMMITMENTS AND CONTINGENCIES The Company, as a lessee of oil and gas properties, is subject to various federal, state and local laws and regulations relating to discharge of materials into, and protection of, the environment. These laws and regulations may, among other things, impose liability on the Company for the cost of pollution clean-up resulting from operations and subject the Company to liability for pollution damages. In some instances, the Company may be directed to suspend or cease operations in the affected area. The Company is not aware of any environmental claims existing as of September 30, 2016, which have not been provided for, or covered by insurance or which may have a material impact on its financial position or results of operations. There can be no assurance, however, that current regulatory requirements will not change, or past noncompliance with environmental laws will not be discovered on the Company’s properties. Office Lease

NOTE 7. RELATED PARTY

NOTE 7. RELATED PARTY	9 Months Ended
	Sep. 30, 2016
Related Party Transactions [Abstract]
Related Party Transactions Disclosure [Text Block]	NOTE 7. RELATED PARTY Transactions with related parties and affiliates Beginning February 1, 2016, the Company sponsored the SUDS 1% Term Overriding Royalty Interest (“ORRI”) offering on behalf of the SUDS field to raise $300,000. Under the terms of the Company offering, investors received 1% of the gross revenue from the field monthly, based on their investment of $20,000 until such time as they receive a cumulative revenue amount of $30,000. With each unit purchased, a warrant to purchase 10,000 shares of Company’s common stock was granted with an exercise price of $0.10 per share, and an expiration date of February 28, 2019. At the end of the second quarter, the $300,000 offering had been received which resulted in the granting of warrants to purchase 150,000 shares of common stock. The following affiliated investors each purchased one (1) unit: Joel Oppenheim, Zel C Khan, Lee Lytton, Paul Deputy and Leo Womack. The fair value of all these SUDS related warrants was $14,336 based on a $0.06 per share valuation, volatility of 235%, a discount rate of 1.09%, over a 3 year term. In addition, to properly account for the Company’s 10% working interest owner in the SUDS field, $30,000 was offset against the full cost pool of Oil & Gas Properties. The Company through its wholly-owned subsidiary Askarii sold pump jacks to the other owners of the SUDS properties (before the September acquisition), totaling $198,000 for the nine months ended September 30, 2016. For the nine months ended, Askarii booked a profit of $164,670 on the sale of pump jacks to the other owners of the SUDs properties. To compensate the independent Directors for their service during 2016, on March 11, 2016, the Board of Directors granted Leo B. Womack, the Chairman of the Board of Directors of the Company an option to purchase 1,000,000 shares of the Company’s common stock at an exercise price of $0.06 per share, which vests immediately, and is exercisable for 36 months thereafter. The Board also granted Lee Lytton and Joel Oppenheim, members of the Board of Directors each an option to purchase 500,000 shares of the Company’s common stock at an exercise price of $0.06 per share, which vest immediately, and are exercisable for 36 months thereafter. The fair value of the options granted on March 11, 2016 is $115,045 and was based on a $0.06 valuation, volatility of 235%, a discount rate of 1.09% and a 3 year term. The total amount of the options was expensed in 2016. These warrants are subject to a clawback provision which would be ratably invoked if a director did not complete his 2016 service term. Effective April 18, 2016, Quinten Beasley was compensated for his service during 2016 through a grant of 500,000 warrants to purchase 500,000 shares of the Company’s common stock at an exercise price of $0.06 per share, which vests immediately, and is exercisable for 36 months thereafter. The fair value of the warrants is $41,891 based on a $0.08 valuation, volatility of 235%, a discount rate of 1.09% and a 3 year term. The total amount of the warrants was expensed in 2016. These warrants are subject to a clawback provision which would be ratably invoked if a director did not complete his 2016 service term. On May 31, 2016, in consideration for the cancellation of debt incurred as a result of a $48,000 advance, the Company issued 8 units or 800,000 shares to the current CFO as part of, and under the terms of, the September 1, 2015 private offering. The shares were issued at a price of $0.06 per share and included warrants to purchase an additional 800,000 shares of common stock at a price of $0.10 cents per share at any time prior to August 5, 2018. This represented the final sale under this offering. During the nine months ended September 30, 2016, shareholders advanced an additional $378,000, while also receiving offsetting cash payments of $122,000 on outstanding advances and converting $150,000 of advances into shares of common stock, as described in Note 5. This resulted in a cumulative increase of $116,000 in borrowings through shareholders. This increased the shareholder advance liability from $46,000 at December 31, 2015 to $162,000 at September 30, 2016 which is included under Note payable to affiliates. . In connection with these loans the Company granted 290,000 warrants to purchase 290,000 shares of common stock at an average exercise price of $0.09 per share. The fair value of these warrants was $19,536, based on an average $0.08 price per share valuation, volatility of 284%, a discount rate of 0.87% and a 3 year term. The value of the warrants was recorded as debt issuance costs on the date of issuance. On November 4, 2015 the Company executed a Promissory Note for $146,875 to BSNM, related to the TLSAU acquisition. The note was due on December 31, 2015 and accrues at a rate of 10% per annum. The repayment of the note is secured by 1,000,000 shares of restricted stock of the Company. The Company exercised its one time right for a 6 month extension of the maturity date of the note by issuing BSNM 500,000 additional shares of restricted Company common stock on December 31, 2015. On May 2, 2016, this note was converted into 500,000 shares of common stock at a price of $0.075 per share at a value of $37,500. On June 24, 2016, the Company purchased a 2007 Toyota Tundra vehicle for $10,625 from Jovian Petroleum Corporation. It is being used for field operations. During July 2016, payments of $7,000 were made against the outstanding balance. There was no promissory note created for the remaining outstanding balance of $3,264, and both parties agreed for the balance to be paid when funds become available. The truck’s estimated useful life is 5 years. In association with Mr. Zel C. Khan’s employment agreement dated September 23, 2015, the Company issued one warrant to purchase one share of the Company’s restricted stock at an exercise price of $0.20 per share for each dollar of Mr. Khan’s deferred gross salary for the nine months ended 2016. Mr. Khan’s total accrued salary at September 30, 2016 was $120,000. The Company granted warrants to purchase 120,000 shares of common shares for the nine months ended 2016 (40,000 warrants per quarter). The warrants have a term of 36 months from their issuance date. The fair value of all three quarter’s warrants was $11,376, based on an average $0.10 price per share valuation, volatility of 235%, a discount rate of 1.09% and a 3 year term. The warrants were recognized as stock compensation expense. During the nine months ended September 30, 2016, two directors were granted warrants to purchase 31,250 shares of common stock in exchange for providing collateral to a bank to collateralize the Company’s letters of credit. The value of the warrants was $2,629 with an exercise price of each warrant is $0.06 per share and they expire three (3) years from their grant date. The value of these warrants was recorded as debt issuance costs on the date of the grant. On August 17, 2016 Paul M. Deputy was appointed Chief Financial Officer (“CFO”) of the Company and entered into an employment agreement with the Company effective July 1, 2016 to serve as Chief Financial Officer for an initial term of twelve (12) months (automatically renewable thereafter for additional one year terms). The agreement provides that the Company will pay Mr. Deputy $140,000 per year. The Company granted Mr. Deputy options to purchase 550,000 shares of the Company’s restricted common stock at a value of $26,096 with an exercise price of $0.077 per share with a term of three (3) years beginning July 1, 2016, as a signing bonus. These warrants were recognized as stock compensation expense. Mr. Deputy’s compensation for the first 90 days of the contract period will be deferred with the Board having the option to, (a) authorize payment at that time or (b) elect to defer payment until the closing of the financing in exchange for granting Mr. Deputy a warrant to purchase Petrolia shares equal to the amount of salary deferred at a price equal to the closing price of the stock on the day of the Board meeting or (c) issue shares of common stock based on a strike price equal to the closing price of the company’s shares on the previous day. In association with Mr. Deputy’s employment agreement dated July 1, 2016, the Company issued one warrant to purchase one share of the Company’s restricted stock at an exercise price of $0.20 per share for each dollar of Mr. Deputy’s deferred gross salary for the nine months ended 2016. Mr. Deputy’s total accrued salary at September 30, 2016 was $11,667. The Company granted warrants to purchase 11,666 shares of common shares for the nine months ended 2016. The warrants have a term of 36 months from their issuance date. The fair value of all three quarter’s warrants was $1,533, based on a $0.14 price per share valuation, volatility of 317%, a discount rate of 1.09% and a 3 year term. The warrants were recognized as stock compensation expense. On August 17, 2016 the Board of Directors issued two key employees (Carla Petty and Jason Bagby) 200,000 shares of the Company’s restricted common stock. The shares were issued at current market price of $0.077 per share on August 17, 2016 at a value of $15,400 and recorded as stock based compensation. On August 17, 2016 the Board of Directors issued the CFO 500,000 shares of the Company’s restricted common stock for settlement of outstanding payables. The shares were issued at current market price of $0.077 per share on August 17, 2016 at a value of $38,500 and recorded as stock based compensation. On August 17, 2016 the Board of Directors granted Joel Oppenheim options to purchase 300,000 shares of the Company’s restricted common stock at an exercise price of $0.077 per share and have a term of three (3) years beginning August 17, 2016 at a value of $23,100 as compensation for arranging and guaranteeing certain bank relationships for the Company. On August 25, 2016, in consideration for the cancellation of $56,107 of accounts payable and $110,000 of debts incurred, the Company issued 2,076,000 shares at a valuation of $166,107 priced at $0.06 per share, to the CFO. Effective September 30, 2016, the seven (7) Advisory Board members were compensated for their service from April 1, 2016 through September 30, 2016 (for two quarters) though the granting of 12,500 warrants each (87,500 total warrants per quarter), per quarter per Board member, to purchase 12,500 shares of the Company’s common stock at an average exercise price of $0.095 per share, which vests immediately, and is exercisable for 36 months thereafter. The fair value of the warrants is $13,191 based on an average $0.095 valuation, volatility of 235%, a discount rate of 1.09% and a 3 year term. The total amount of the warrants was expensed in 2016. These warrants are subject to a clawback provision which would be ratably invoked if a director did not complete his 2016 service term.

NOTE 8. ASSET ACQUISITIONS

NOTE 8. ASSET ACQUISITIONS	9 Months Ended
	Sep. 30, 2016
Business Combinations [Abstract]
Business Combination Disclosure [Text Block]	NOTE 8. ASSET ACQUISITIONS SUDs Acquisition On September 28, 2016, the Company acquired an additional 90% working interest ownership of SUDs through the issuance of a note payable for $4,000,000 as outlined above in note 4 and the issuance 24,308,985 shares of its restricted common stock, from a related party. The purchase price of the shares equates to a $4,373,186 value, based on the $0.1799/share market price of Petrolia’s shares on September 28, 2016. After the acquisition the company holds a total working interest ownership of 100%. The final purchase price allocation of the combined transactions is as follows: oil and gas properties acquired $8,765,438, asset retirement obligation assumed of $42,252 Twin Lakes Acquisition On September 1, 2016, the Company acquired an additional 25% working interest ownership of TLSAU field through the issuance of 3,500,000 shares of its restricted common stock with an unrelated party. The purchase price of the shares equates to a $350,000 value, based on the $0.10/share market price of Petrolia’s shares on September 1, 2016. After the purchase, the company holds a total working interest ownership of 40%. The final purchase price allocation of the transaction is as follows: oil and gas properties acquired $358,044, asset retirement obligation assumed of $8,044. The below table represent the proforma financial statement to show the effects of the combined entity for the periods presented above: Three Months ended September 30, Three Months ended September 30, 2015 Petrolia Energy SUDS Properties Combined Petrolia Energy SUDS Properties Combined Oil and gas sales 21,863 18,803 40,666 34,689 11,763 46,452 Operating expenses LOE 47,621 53,726 101,347 45,368 18,304 63,672 Production tax 1,074 1,355 2,429 1,447 847 2,294 G&A expenses 508,329 508,329 122,203 - 122,203 DD&A 15,764 15,764 19,727 - 19,727 ARO 8,199 8,199 8,733 - 8,733 Total operating expenses 580,987 55,081 636,068 197,478 19,151 216,629 Loss from operations (559,124 ) (36,278 ) (595,402 ) (162,789 ) (7,388 ) (170,177 ) Loss on conversion of debt - - - - - Other Income 16,385 16,385 10,000 - 10,000 Interest (expense) (53,811 ) (53,811 ) (49,851 ) - (49,851 ) Net loss (596,550 ) (36,278 ) (632,828 ) (202,640 ) (7,388 ) (210,028 ) Nine Months ended September 30, 2016 Nine Months ended September 30, 2015 Petrolia Energy SUDS Properties Combined Petrolia Energy SUDS Properties Combined Oil and gas sales 277,156 62,158 339,314 162,848 35,289 198,137 Operating expenses Lease operating expense 155,424 300,290 455,714 179,422 54,911 234,333 Cost of equipment sold 33,330 33,330 Production tax 3,846 4,478 8,324 7,364 2,541 9,905 G&A expenses 1,139,432 1,139,432 365,686 - 365,686 DD&A 50,964 50,964 78,937 - 78,937 Impair O&G Properties - - 668,073 - 668,073 ARO 21,232 21,232 8,733 - 8,733 Total operating expenses 1,404,228 304,768 1,708,996 1,308,215 57,452 1,365,667 Loss from operations (1,127,072 ) (242,610 ) (1,369,682 ) (1,145,367 ) (22,163 ) (1,167,530 ) Loss on conversion of debt (14,336 ) - (14,336 ) (69,107 ) - (69,107 ) Other Income 51,345 - 51,345- 18,484 - 18,484 Interest (expense) (211,288 ) - (211,288 ) (137,881 ) - (137,881 ) Net loss (1,301,351 ) (242,610 ) (1,543,961 ) (1,333,871 ) (22,163 ) (1,356,034 )

NOTE 9. BUSINESS SEGMENTS

NOTE 9. BUSINESS SEGMENTS	9 Months Ended
	Sep. 30, 2016
Segment Reporting [Abstract]
Segment Reporting Disclosure [Text Block]	NOTE 9. BUSINESS SEGMENTS We are a diversified oil and gas company with operations in two segments: Oil and Gas Exploration and Production exploration, development, and production Oil field services Three Months Ended September 30, 2016 Three Months Ended September 30, 2015 Nine Months Ended September 30, 2016 Nine Months Ended September 30, 2015 Revenues Oil & Gas $ 21,863 $ 34,689 $ 79,156 $ 162,848 Oil field services - - 198,000 - Net Income (Loss) Oil & Gas (37,425 ) (202,640 ) (1,458,595 ) (1,333,870 ) Oil field services - - 180,273 - September 30, 2016 December 31, 2015 Assets Oil & Gas 12,908,826 4,196,016 Oil field services 109,476 - Accounts Receivable Oil & Gas 170,689 48,633 Oil field services $ - $ - All segment expenses were incurred by the Oil & Gas segment except the cost of equipment sold of $33,330 which was incurred in the nine months ended September 30, 2016 by the Oil field service segment.

NOTE 10. SUBSEQUENT EVENTS

NOTE 10. SUBSEQUENT EVENTS	9 Months Ended
	Sep. 30, 2016
Subsequent Events [Abstract]
Subsequent Events [Text Block]	NOTE 10. SUBSEQUENT EVENTS The Board authorized the Company to allowed all outstand warrant-holders to exercise their outstanding warrants at a 20% discount. In October 2016, four (4) warrant holders exercised a total of 525,000 warrants by remitting payments of $50,000 at an average share price of $0.095 per shares. Director Lee Lytton exercised 10,000 shares (included in the total above) by remitting a payment of $479 at a share price of $0.59 per share. On November 11, 2016, the Board approved an issuance of a $2 million Preferred Stock offering. The Company is currently negotiating with an institutional investment group to fund the offering. On November 11, 2016, the Board approved the expenditure of $100,000 to drill two new wells at the SUDS leasehold. These wells are to be step-out wells from existing wells that are currently producing.

Accounting Policies, by Policy

Accounting Policies, by Policy (Policies)	9 Months Ended
	Sep. 30, 2016
Accounting Policies [Abstract]
Use of Estimates, Policy [Policy Text Block]	Management Estimates -
Inventory, Policy [Policy Text Block]	Inventories -
Intangible Assets, Finite-Lived, Policy [Policy Text Block]	Intangible Assets - Our intangible assets are subject to amortization and are amortized using the straight-line method over their estimated period of benefit. Intangible assets acquired as part of a business combination are capitalized at their acquisition-date fair value.
Revenue Recognition, Policy [Policy Text Block]	Equipment sales - when the significant risks and rewards of ownership have been transferred to the buyer and the recovery of the consideration is probable.
New Accounting Pronouncements, Policy [Policy Text Block]	Recent Accounting Pronouncements The Company has evaluated all the recent accounting pronouncements through the filing date and believes that none of them will have a material effect on the Company.

NOTE 5. EQUITY (Tables)

NOTE 5. EQUITY (Tables)	9 Months Ended
	Sep. 30, 2016
Stockholders' Equity Note [Abstract]
Schedule of Stockholders' Equity Note, Warrants or Rights [Table Text Block]	Summary information regarding common stock warrants granted and outstanding as of and for the nine months ended September 30, 2016, is as follows: Warrants Weighted Average Exercise Price Aggregate intrinsic value Weighted average remaining contractual life (years) Outstanding at year ended December 31, 2015 11,910,111 $ 0.33 $ - 3.52 Granted 4,927,916 0.08 - 2.36 Exercised - - - - Expired - - - - Outstanding at quarter ended September 30, 2016 16,838,027 $ 0.26 $ 479,425 2.69

NOTE 8. ASSET ACQUISITIONS (Tab

NOTE 8. ASSET ACQUISITIONS (Tables)	9 Months Ended
	Sep. 30, 2016
Business Combinations [Abstract]
Business Acquisition, Pro Forma Information [Table Text Block]	The below table represent the proforma financial statement to show the effects of the combined entity for the periods presented above: Three Months ended September 30, Three Months ended September 30, 2015 Petrolia Energy SUDS Properties Combined Petrolia Energy SUDS Properties Combined Oil and gas sales 21,863 18,803 40,666 34,689 11,763 46,452 Operating expenses LOE 47,621 53,726 101,347 45,368 18,304 63,672 Production tax 1,074 1,355 2,429 1,447 847 2,294 G&A expenses 508,329 508,329 122,203 - 122,203 DD&A 15,764 15,764 19,727 - 19,727 ARO 8,199 8,199 8,733 - 8,733 Total operating expenses 580,987 55,081 636,068 197,478 19,151 216,629 Loss from operations (559,124 ) (36,278 ) (595,402 ) (162,789 ) (7,388 ) (170,177 ) Loss on conversion of debt - - - - - Other Income 16,385 16,385 10,000 - 10,000 Interest (expense) (53,811 ) (53,811 ) (49,851 ) - (49,851 ) Net loss (596,550 ) (36,278 ) (632,828 ) (202,640 ) (7,388 ) (210,028 ) Nine Months ended September 30, 2016 Nine Months ended September 30, 2015 Petrolia Energy SUDS Properties Combined Petrolia Energy SUDS Properties Combined Oil and gas sales 277,156 62,158 339,314 162,848 35,289 198,137 Operating expenses Lease operating expense 155,424 300,290 455,714 179,422 54,911 234,333 Cost of equipment sold 33,330 33,330 Production tax 3,846 4,478 8,324 7,364 2,541 9,905 G&A expenses 1,139,432 1,139,432 365,686 - 365,686 DD&A 50,964 50,964 78,937 - 78,937 Impair O&G Properties - - 668,073 - 668,073 ARO 21,232 21,232 8,733 - 8,733 Total operating expenses 1,404,228 304,768 1,708,996 1,308,215 57,452 1,365,667 Loss from operations (1,127,072 ) (242,610 ) (1,369,682 ) (1,145,367 ) (22,163 ) (1,167,530 ) Loss on conversion of debt (14,336 ) - (14,336 ) (69,107 ) - (69,107 ) Other Income 51,345 - 51,345- 18,484 - 18,484 Interest (expense) (211,288 ) - (211,288 ) (137,881 ) - (137,881 ) Net loss (1,301,351 ) (242,610 ) (1,543,961 ) (1,333,871 ) (22,163 ) (1,356,034 )

NOTE 9. BUSINESS SEGMENTS (Tabl

NOTE 9. BUSINESS SEGMENTS (Tables)	9 Months Ended
	Sep. 30, 2016
Segment Reporting [Abstract]
Schedule of Segment Reporting Information, by Segment [Table Text Block]	Three Months Ended September 30, 2016 Three Months Ended September 30, 2015 Nine Months Ended September 30, 2016 Nine Months Ended September 30, 2015 Revenues Oil & Gas $ 21,863 $ 34,689 $ 79,156 $ 162,848 Oil field services - - 198,000 - Net Income (Loss) Oil & Gas (37,425 ) (202,640 ) (1,458,595 ) (1,333,870 ) Oil field services - - 180,273 - September 30, 2016 December 31, 2015 Assets Oil & Gas 12,908,826 4,196,016 Oil field services 109,476 - Accounts Receivable Oil & Gas 170,689 48,633 Oil field services $ - $ -

NOTE 4. NOTES PAYABLE - RELAT20

NOTE 4. NOTES PAYABLE - RELATED PARTY (Details) - USD ($)	Sep. 28, 2016	Sep. 01, 2016	Jun. 30, 2016	May 02, 2016	Sep. 30, 2016	Sep. 30, 2015	Dec. 31, 2015
NOTE 4. NOTES PAYABLE - RELATED PARTY (Details) [Line Items]
Amortization of Debt Discount (Premium)					$ 171,573	$ 103,520
Debt Instrument, Unamortized Discount					0		$ 171,573
Working interest		25.00%		15.00%
Acquisition of SUDS Properties LLC #1 [Member]
NOTE 4. NOTES PAYABLE - RELATED PARTY (Details) [Line Items]
Working interest	50.00%
Working Interest Ownership	60.00%
Convertible Debt [Member]
NOTE 4. NOTES PAYABLE - RELATED PARTY (Details) [Line Items]
Debt Instrument, Payment Terms			If at any time prior to December 31, 2016, the Company pays the Holder $500,000 on the Notes (together with all accrued interest), the Company will receive a $50,000 discount on the total principal amount of $550,000 outstanding under the Notes. If the Notes are fully paid by the Company, the Company will issue new warrants for the purchase of 500,000 shares of stock at an exercise price of $0.15 per share that will expire five (5) years from the grant date (and the old warrants will be extinguished). If payment is not made before December 31, 2016, no discount is allowed.
Amortization of Debt Discount (Premium)					171,573	$ 103,520
Debt Instrument, Unamortized Discount					$ 0
Loans Payable [Member] | Acquisition of SUDS Properties LLC #1 [Member]
NOTE 4. NOTES PAYABLE - RELATED PARTY (Details) [Line Items]
Debt Instrument, Face Amount	$ 4,000,000
Convertible Secured Note #1 [Member]
NOTE 4. NOTES PAYABLE - RELATED PARTY (Details) [Line Items]
Debt Instrument, Face Amount			$ 350,000
Debt Instrument, Maturity Date			Dec. 31, 2016
Convertible Secured Note #2 [Member]
NOTE 4. NOTES PAYABLE - RELATED PARTY (Details) [Line Items]
Debt Instrument, Face Amount			$ 200,000
Debt Instrument, Maturity Date			Dec. 31, 2016
Promissory Note [Member] | Loans Payable [Member] | Acquisition of SUDS Properties LLC #1 [Member]
NOTE 4. NOTES PAYABLE - RELATED PARTY (Details) [Line Items]
Debt Instrument, Face Amount	$ 1,000,000
Debt Instrument, Maturity Date	Dec. 31, 2016
Debt Instrument, Payment Terms	If full payment is not made by December 31, 2016, we are entitled to extend the Note to March 31, 2017 by making a $10,000 payment in cash prior to maturity
Debt Instrument, Interest Rate, Stated Percentage	5.00%
Debt Instrument, Collateral	The Promissory Note is secured by a 12.5% undivided working interest in the SUDS field.
Production Payment Note [Member] | Loans Payable [Member] | Acquisition of SUDS Properties LLC #1 [Member]
NOTE 4. NOTES PAYABLE - RELATED PARTY (Details) [Line Items]
Debt Instrument, Face Amount	$ 3,000,000
Debt Instrument, Payment Terms	paid out of twenty percent (20%) of the 50% undivided interest of net revenues received in the purchase which are attributable to the SUDS field assets
Debt Instrument, Collateral	The Production Payment Note is secured by a 37.5% undivided working interest in the SUDS field.

NOTE 5. EQUITY (Details)

NOTE 5. EQUITY (Details)	Sep. 28, 2016USD ($)$ / sharesshares	Sep. 01, 2016shares	Aug. 25, 2016USD ($)$ / sharesshares	May 02, 2016USD ($)$ / sharesshares	Mar. 11, 2016USD ($)$ / sharesshares	Feb. 10, 2016USD ($)$ / sharesshares	Feb. 01, 2016USD ($)$ / sharesshares	Sep. 23, 2015$ / shares	Sep. 30, 2016USD ($)shares	Sep. 30, 2015USD ($)	Jun. 30, 2016shares	Apr. 18, 2016$ / shares	Apr. 14, 2016shares	Dec. 31, 2015shares
NOTE 5. EQUITY (Details) [Line Items]
Preferred Stock, Shares Authorized (in Shares) | shares									1,000,000		1,000,000			1,000,000
Stock Issued During Period, Shares, Acquisitions (in Shares) | shares		3,500,000
Shares Issued, Price Per Share (in Dollars per share) | $ / shares			$ 0.06		$ 0.06	$ 0.07
Proceeds from Loans						$ 20,000
Stock Issued During Period, Shares, Other (in Shares) | shares						285,714
Stock Issued During Period, Value, Other						$ 20,000
					3
Stock Issued During Period, Shares, Share-based Compensation, Gross (in Shares) | shares					700,000
Stock Issued During Period, Value, Share-based Compensation, Gross					$ 42,000				$ 25,500
Common Stock, Shares Authorized (in Shares) | shares									150,000,000				150,000,000	150,000,000
Debt Conversion, Original Debt, Amount			$ 166,107	$ 146,875
Working interest		25.00%		15.00%
Debt Conversion, Converted Instrument, Shares Issued (in Shares) | shares			2,076,000	1,468,750
Share Price (in Dollars per share) | $ / shares				$ 100,000								$ 0.08
Interest Paid				$ 4,869					$ 24,770	$ 34,361
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized									$ 34,000
Employee Stock Option [Member]
NOTE 5. EQUITY (Details) [Line Items]
Option Exercise Price (in Dollars per share) | $ / shares								$ 146,875
Askarii Resources [Member]
NOTE 5. EQUITY (Details) [Line Items]
Business Acquisition, Percentage of Voting Interests Acquired							100.00%
Stock Issued During Period, Shares, Acquisitions (in Shares) | shares							1,000,000
Shares Issued, Price Per Share (in Dollars per share) | $ / shares							$ 0.05
Business Combination, Consideration Transferred							$ 50,000
Acquisition of SUDS Properties LLC #2 [Member]
NOTE 5. EQUITY (Details) [Line Items]
Stock Issued During Period, Shares, Acquisitions (in Shares) | shares	24,308,985
Working interest	40.00%
Share Price (in Dollars per share) | $ / shares	$ 0.1799
Subsidiary or Equity Method Investee, Cumulative Percentage Ownership after All Transactions	100.00%
Stock Issued During Period, Value, Acquisitions	$ 4,373,186
Trademarks [Member]
NOTE 5. EQUITY (Details) [Line Items]
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles							10,000
Internet Domain Names [Member] | Askarii Resources [Member]
NOTE 5. EQUITY (Details) [Line Items]
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles							5,000
Customer Lists [Member] | Askarii Resources [Member]
NOTE 5. EQUITY (Details) [Line Items]
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles							10,000
Customer Relationships [Member] | Askarii Resources [Member]
NOTE 5. EQUITY (Details) [Line Items]
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles							$ 25,000

NOTE 5. EQUITY (Details) - Sch

NOTE 5. EQUITY (Details) - Schedule of Stockholders' Equity Note, Warrants or Rights - USD ($)	Apr. 18, 2016	Sep. 30, 2016	Dec. 31, 2015
Schedule of Stockholders' Equity Note, Warrants or Rights [Abstract]
Warrants Outstanding			11,910,111
Warrants Outstanding, Weighted Average Exercise Price			$ 0.33
Warrants Outstanding, Aggregate Intrinsic Value			$ 0
Warrants Outstanding, Weighted Average Remianing Contractual Term		2 years 251 days	3 years 189 days
Granted	500,000	4,927,916
Granted		$ 0.08
Granted		2 years 131 days
Exercised		0
Exercised		$ 0
Expired		0
Expired		$ 0
Warrants Outstanding		16,838,027
Warrants Outstanding, Weighted Average Exercise Price		$ 0.26
Warrants Outstanding, Aggregate Intrinsic Value		$ 479,425

NOTE 6. COMMITMENTS AND CONTI23

NOTE 6. COMMITMENTS AND CONTINGENCIES (Details)	9 Months Ended
	Sep. 30, 2016USD ($)
Commitments and Contingencies Disclosure [Abstract]
Operating Leases, Rent Expense, Minimum Rentals	$ 1,650

NOTE 7. RELATED PARTY (Details)

NOTE 7. RELATED PARTY (Details) - USD ($)

Aug. 25, 2016

Aug. 17, 2016

Jul. 01, 2016

Jun. 24, 2016

May 31, 2016

May 02, 2016

Apr. 18, 2016

Mar. 11, 2016

Feb. 10, 2016

Feb. 01, 2016

Nov. 04, 2015

Sep. 23, 2015

Jul. 31, 2016

Sep. 30, 2016

Jun. 30, 2016

Mar. 31, 2016

Sep. 30, 2016

Sep. 30, 2015

Dec. 31, 2015

Sep. 23, 2016

NOTE 7. RELATED PARTY (Details) [Line Items]

Class of Warrant or Right, Exercise Price of Warrants or Rights (in Dollars per share)

$ 0.06

Class of Warrant or Right, Granted, Fair Value

$ 41,891

Share Price (in Dollars per share)

$ 100,000

$ 0.08

Fair Value Assumptions, Expected Volatility Rate

235.00%

Fair Value Inputs, Discount Rate

1.09%

Fair Value Assumptions, Expected Term

3 years

Class of Warrant or Rights, Granted (in Shares)

500,000

4,927,916

Warrants, Term of Warrants

36 years

Shares Issued, Price Per Share (in Dollars per share)

$ 0.06

$ 0.06

$ 0.07

Proceeds from Related Party Debt

$ 368,000

$ 71,000

Repayments of Related Party Debt

$ 112,000

7,000

Debt Conversion, Original Debt, Amount

$ 166,107

$ 146,875

Stock Issued During Period, Shares, Other (in Shares)

285,714

Debt Conversion, Converted Instrument, Shares Issued (in Shares)

2,076,000

1,468,750

Warrants, Weighted Average Remaining Contractual Ter

2 years 251 days

3 years 189 days

Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Term

3 years

Class of Warrant or Rights, Weighted-Average Exercise Price of Warrants or Rights, Granted (in Dollars per share)

$ 0.08

Vehicles [Member]

NOTE 7. RELATED PARTY (Details) [Line Items]

Debt Instrument, Face Amount

$ 10,625

Repayments of Other Debt

$ 7,000

Loans Payable

$ 3,264

Property, Plant and Equipment, Useful Life

5 years

Board of Directors Chairman [Member]

NOTE 7. RELATED PARTY (Details) [Line Items]

Options granted (in Shares)

1,000,000

Exercise price of option (in Dollars per share)

$ 0.06

Exercise term of options

36 months

Director #1 [Member]

NOTE 7. RELATED PARTY (Details) [Line Items]

Options granted (in Shares)

500,000

Exercise price of option (in Dollars per share)

$ 0.06

Exercise term of options

36 months

Director #2 [Member]

NOTE 7. RELATED PARTY (Details) [Line Items]

Options granted (in Shares)

500,000

Exercise price of option (in Dollars per share)

$ 0.06

Exercise term of options

36 months

Chairman of the Board of Directors and Two Directors [Member]

NOTE 7. RELATED PARTY (Details) [Line Items]

Share Price (in Dollars per share)

$ 0.06

Fair Value Assumptions, Expected Volatility Rate

235.00%

Fair Value Inputs, Discount Rate

1.09%

Fair Value Assumptions, Expected Term

3 years

Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Grant Date Fair Value

$ 115,045

Chief Financial Officer [Member]

NOTE 7. RELATED PARTY (Details) [Line Items]

Class of Warrant or Right, Exercise Price of Warrants or Rights (in Dollars per share)

$ 0.20

Class of Warrant or Right, Granted, Fair Value

$ 1,533

Share Price (in Dollars per share)

$ 0.14

$ 0.14

Fair Value Assumptions, Expected Volatility Rate

317.00%

Fair Value Inputs, Discount Rate

1.09%

Fair Value Assumptions, Expected Term

3 years

Options granted (in Shares)

550,000

Exercise price of option (in Dollars per share)

$ 0.077

Class of Warrant or Rights, Granted (in Shares)

1

800,000

11,666

Warrants, Term of Warrants

36 months

Debt Instrument, Decrease, Forgiveness

$ 48,000

Number of Units Issued (in Shares)

8

Stock Issued During Period, Shares, New Issues (in Shares)

800,000

Shares Issued, Price Per Share (in Dollars per share)

$ 0.077

$ 0.06

Accrued Salaries

$ 11,667

$ 11,667

Officers' Compensation

$ 140,000

Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Weighted Average Grant Date Fair Value (in Dollars per share)

$ 26,096

Stock Issued During Period, Shares, Restricted Stock Award, Gross (in Shares)

500,000

Stock Issued During Period, Value, Restricted Stock Award, Gross

$ 38,500

Chief Executive Officer [Member]

NOTE 7. RELATED PARTY (Details) [Line Items]

Class of Warrant or Right, Granted, Fair Value

$ 11,376

Share Price (in Dollars per share)

$ 0.10

Fair Value Assumptions, Expected Volatility Rate

235.00%

Fair Value Inputs, Discount Rate

1.09%

Fair Value Assumptions, Expected Term

3 years

Class of Warrant or Rights, Granted (in Shares)

40,000

40,000

40,000

120,000

Accrued Salaries

$ 120,000

$ 120,000

Warrants, Weighted Average Remaining Contractual Ter

36 months

Director [Member]

NOTE 7. RELATED PARTY (Details) [Line Items]

Class of Warrant or Right, Exercise Price of Warrants or Rights (in Dollars per share)

$ 0.06

$ 0.06

Class of Warrant or Right, Granted, Fair Value

$ 2,629

Options granted (in Shares)

300,000

Exercise price of option (in Dollars per share)

$ 0.077

Class of Warrant or Rights, Granted (in Shares)

31,250

Warrants, Term of Warrants

3 years

Number of Directors

2

Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Weighted Average Grant Date Fair Value (in Dollars per share)

$ 23,100

Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Term

3 years

Two Key Employees [Member]

NOTE 7. RELATED PARTY (Details) [Line Items]

Shares Issued, Price Per Share (in Dollars per share)

$ 0.077

Stock Issued During Period, Shares, Restricted Stock Award, Gross (in Shares)

200,000

Stock Issued During Period, Value, Restricted Stock Award, Gross

$ 15,400

Advisory Board Member]

NOTE 7. RELATED PARTY (Details) [Line Items]

Class of Warrant or Right, Granted, Fair Value

$ 13,191

Fair Value Assumptions, Expected Volatility Rate

235.00%

Fair Value Inputs, Discount Rate

1.09%

Fair Value Assumptions, Expected Term

3 years

Class of Warrant or Rights, Granted (in Shares)

87,500

Warrants, Term of Warrants

36 years

Shares Issued, Price Per Share (in Dollars per share)

0.095

$ 0.095

Number of Advisory Board Members

7

Class of Warrant or Rights, Weighted-Average Exercise Price of Warrants or Rights, Granted (in Dollars per share)

$ 0.095

Sale of Pump Jacks to Related Parties [Member]

NOTE 7. RELATED PARTY (Details) [Line Items]

Related Party Transaction, Amounts of Transaction

$ 198,000

Warrants Issued for Each Dollar of Deferred Salary [Member] | Chief Executive Officer [Member]

NOTE 7. RELATED PARTY (Details) [Line Items]

Class of Warrant or Right, Exercise Price of Warrants or Rights (in Dollars per share)

$ 0.20

Class of Warrant or Right, Number of Securities Called by Warrants or Rights (in Shares)

1

Class of Warrant or Rights, Granted (in Shares)

1

STUDS 1% Term Overriding Royalty Interest [Member]

NOTE 7. RELATED PARTY (Details) [Line Items]

Offering Amount

$ 300,000

Percentage of Monthly Gross Revenues Paid to Investors (in Dollars per share)

$ 0.01

Investor, Investment Amount

$ 20,000

Investor, Maximum Cumlative Renvue

$ 30,000

Class of Warrant or Right, Number of Securities Called by Each Warrant or Right (in Shares)

10,000

Class of Warrant or Right, Exercise Price of Warrants or Rights (in Dollars per share)

$ 0.10

Class of Warrant or Right, Expiration Date

Feb. 28, 2019

Proceeds from Overriding Royalty Interest Offering

$ 300,000

Class of Warrant or Right, Number of Securities Called by Warrants or Rights (in Shares)

150,000

Share Price (in Dollars per share)

$ 0.06

Fair Value Assumptions, Expected Volatility Rate

235.00%

Fair Value Inputs, Discount Rate

1.09%

Fair Value Assumptions, Expected Term

3 years

Working Interest Ownership

10.00%

Cost Method Investments, Original Cost

$ 30,000

STUDS 1% Term Overriding Royalty Interest [Member] | Accredited Investors [Member]

NOTE 7. RELATED PARTY (Details) [Line Items]

Class of Warrant or Right, Granted, Fair Value

$ 14,336

Number of Warrants Issued to Each Board Member [Member] | Advisory Board Member]

NOTE 7. RELATED PARTY (Details) [Line Items]

Class of Warrant or Rights, Granted (in Shares)

12,500

Shares Issued as Settlement of Accounts Payable [Member]

NOTE 7. RELATED PARTY (Details) [Line Items]

Debt Conversion, Original Debt, Amount

$ 56,107

$ 110,106

0

Shares Issued for Conversion of Debt [Member]

NOTE 7. RELATED PARTY (Details) [Line Items]

Debt Conversion, Original Debt, Amount

$ 110,000

$ 0

$ 60,000

Shareholder Advances [Member]

NOTE 7. RELATED PARTY (Details) [Line Items]

Class of Warrant or Right, Exercise Price of Warrants or Rights (in Dollars per share)

0.09

$ 0.09

Class of Warrant or Right, Granted, Fair Value

$ 19,536

Share Price (in Dollars per share)

$ 0.08

$ 0.08

Fair Value Assumptions, Expected Volatility Rate

284.00%

Fair Value Inputs, Discount Rate

0.87%

Fair Value Assumptions, Expected Term

3 years

Class of Warrant or Rights, Granted (in Shares)

290,000

Proceeds from Related Party Debt

$ 378,000

Repayments of Related Party Debt

122,000

Debt Conversion, Original Debt, Amount

150,000

Increase (Decrease) in Due to Related Parties

116,000

Due to Related Parties

$ 162,000

$ 162,000

$ 46,000

Note for TLSAU Acquisition [Member]

NOTE 7. RELATED PARTY (Details) [Line Items]

Shares Issued, Price Per Share (in Dollars per share)

$ 0.075

Debt Instrument, Face Amount

$ 146,875

Debt Instrument, Interest Rate, Stated Percentage

10.00%

Debt Instrument, Description

The Company exercised its one time right for a 6 month extension of the maturity date of the note by issuing BSNM 500,000 additional shares of restricted Company common stock on December 31, 2015.

Stock Issued During Period, Shares, Other (in Shares)

500,000

Debt Conversion, Converted Instrument, Shares Issued (in Shares)

500,000

Debt Conversion, Converted Instrument, Amount

$ 37,500

NOTE 8. ASSET ACQUISITIONS (Det

NOTE 8. ASSET ACQUISITIONS (Details) - USD ($)	Sep. 28, 2016	Sep. 01, 2016	Sep. 30, 2016	Sep. 30, 2015	May 02, 2016	Apr. 18, 2016
NOTE 8. ASSET ACQUISITIONS (Details) [Line Items]
Stock Issued During Period, Shares, Acquisitions (in Shares)		3,500,000
Share Price (in Dollars per share)					$ 100,000	$ 0.08
Asset Retirement Obligation, Liabilities Incurred			$ 50,296	$ 958
SUDs [Member]
NOTE 8. ASSET ACQUISITIONS (Details) [Line Items]
Working Interest Ownership	90.00%
Debt Instrument, Face Amount	$ 4,000,000
Stock Issued During Period, Shares, Acquisitions (in Shares)	24,308,985
Payments to Acquire Businesses, Gross	$ 4,373,186
Share Price (in Dollars per share)	$ 0.1799
Equity Method Investment, Ownership Percentage	100.00%
Business Combination, Consideration Transferred	$ 8,765,438
Asset Retirement Obligation, Liabilities Incurred	$ 42,252
Twin Lakes [Member]
NOTE 8. ASSET ACQUISITIONS (Details) [Line Items]
Working Interest Ownership		25.00%
Stock Issued During Period, Shares, Acquisitions (in Shares)		3,500,000
Payments to Acquire Businesses, Gross		$ 350,000
Share Price (in Dollars per share)		$ 0.10
Equity Method Investment, Ownership Percentage		40.00%
Asset Retirement Obligation, Liabilities Incurred		$ 8,044
Payments to Acquire Oil and Gas Property		$ 358,044

NOTE 8. ASSET ACQUISITIONS (D26

NOTE 8. ASSET ACQUISITIONS (Details) - Business Acquisition, Pro Forma Information - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
NOTE 8. ASSET ACQUISITIONS (Details) - Business Acquisition, Pro Forma Information [Line Items]
Oil and gas sales	$ 21,863	$ 34,689	$ 79,156	$ 162,848
Operating expenses
Lease operating expense	47,621	45,368	155,424	179,422
Cost of equipment sold	0	0	33,330	0
Production tax	1,074	1,447	3,846	7,364
G&A expenses	508,329	122,203	1,139,432	365,686
DD&A	15,764	19,727	50,964	78,937
ARO	8,199	8,733	21,232	8,733
Impair O&G Properties	0	0	0	668,073
Total operating expenses	580,987	197,478	1,404,228	1,308,215
Loss from operations	(559,124)	(162,789)	(1,127,072)	(1,145,367)
Loss on conversion of debt	0	0	0	(69,107)
Interest (expense)	(53,811)	(49,851)	(211,288)	(137,881)
Net loss	(596,550)	(202,640)	(1,301,351)	(1,333,871)
Pro Forma [Member]
NOTE 8. ASSET ACQUISITIONS (Details) - Business Acquisition, Pro Forma Information [Line Items]
Oil and gas sales	40,666	46,452	339,314	198,137
Operating expenses
Lease operating expense	101,347	63,672	455,714	234,333
Cost of equipment sold			33,330
Production tax	2,429	2,294	8,324	9,905
G&A expenses	508,329	122,203	1,139,432	365,686
DD&A	15,764	19,727	50,964	78,937
ARO	8,199	8,733	21,232	8,733
Impair O&G Properties			0	668,073
Total operating expenses	636,068	216,629	1,708,996	1,365,667
Loss from operations	(595,402)	(170,177)	(1,369,682)	(1,167,530)
Loss on conversion of debt	0	0	(14,336)	(69,107)
Other Income	16,385	10,000	51,345	18,484
Interest (expense)	(53,811)	(49,851)	(211,288)	(137,881)
Net loss	(632,828)	(210,028)	(1,543,961)	(1,356,034)
Parent Company [Member]
NOTE 8. ASSET ACQUISITIONS (Details) - Business Acquisition, Pro Forma Information [Line Items]
Oil and gas sales	21,863	34,689	277,156	162,848
Operating expenses
Lease operating expense	47,621	45,368	155,424	179,422
Cost of equipment sold			33,330	0
Production tax	1,074	1,447	3,846	7,364
G&A expenses	508,329	122,203	1,139,432	365,686
DD&A	15,764	19,727	50,964	78,937
ARO	8,199	8,733	21,232	8,733
Impair O&G Properties			0	668,073
Total operating expenses	580,987	197,478	1,404,228	1,308,215
Loss from operations	(559,124)	(162,789)	(1,127,072)	(1,145,367)
Loss on conversion of debt	0	0	(14,336)	(69,107)
Other Income	16,385	10,000	51,345	18,484
Interest (expense)	(53,811)	(49,851)	(211,288)	(137,881)
Net loss	(596,550)	(202,640)	(1,301,351)	(1,333,871)
SUDs [Member]
NOTE 8. ASSET ACQUISITIONS (Details) - Business Acquisition, Pro Forma Information [Line Items]
Oil and gas sales	18,803	11,763	62,158	35,289
Operating expenses
Lease operating expense	53,726	18,304	300,290	54,911
Cost of equipment sold			0	0
Production tax	1,355	847	4,478	2,541
G&A expenses	0	0	0	0
DD&A	0	0	0	0
ARO	0	0	0	0
Impair O&G Properties			0	0
Total operating expenses	55,081	19,151	304,768	57,452
Loss from operations	(36,278)	(7,388)	(242,610)	(22,163)
Loss on conversion of debt	0	0	0	0
Other Income	0	0	0	0
Interest (expense)	0	0	0	0
Net loss	$ (36,278)	$ (7,388)	$ (242,610)	$ (22,163)

NOTE 9. BUSINESS SEGMENTS (Deta

NOTE 9. BUSINESS SEGMENTS (Details)	9 Months Ended
	Sep. 30, 2016USD ($)
Segment Reporting [Abstract]
Number of Operating Segments	2
Cost of equipment sold	$ 33,330

NOTE 9. BUSINESS SEGMENTS (De28

NOTE 9. BUSINESS SEGMENTS (Details) - Schedule of Segment Reporting Information, by Segment - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015	Dec. 31, 2015
Revenues
Revenues	$ 21,863	$ 34,689	$ 277,156	$ 162,848
Net Income (Loss)
Net Income (Loss)	(596,550)	(202,640)	(1,301,351)	(1,333,871)
Assets
Assets	13,127,778		13,127,778		$ 4,196,016
Oil and Gas Exploration [Member]
Revenues
Revenues	21,863	34,689	79,156	162,848
Net Income (Loss)
Net Income (Loss)	(37,425)	(202,640)	(1,458,595)	(1,333,870)
Assets
Assets	12,908,826		12,908,826		4,196,016
Accounts Receivable
Accounts Receivable	170,689		170,689		48,633
Oil Field Services [Member]
Revenues
Revenues	0	0	198,000	0
Net Income (Loss)
Net Income (Loss)	0	$ 0	180,273	$ 0
Assets
Assets	109,476		109,476		0
Accounts Receivable
Accounts Receivable	$ 0		$ 0		$ 0

NOTE 10. SUBSEQUENT EVENTS (Det

NOTE 10. SUBSEQUENT EVENTS (Details) - USD ($)	Nov. 11, 2016	Nov. 14, 2016	Sep. 30, 2016	Apr. 18, 2016
NOTE 10. SUBSEQUENT EVENTS (Details) [Line Items]
Class of Warrant or Rights, Exercised (in Shares)			0
Class of Warrant or Right, Exercise Price of Warrants or Rights (in Dollars per share)				$ 0.06
Subsequent Event [Member]
NOTE 10. SUBSEQUENT EVENTS (Details) [Line Items]
Subsequent Event, Description		The Board authorized the Company to allowed all outstand warrant-holders to exercise their outstanding warrants at a 20% discount
Class of Warrant or Rights, Exercised (in Shares)		525,000
Proceeds from Warrant Exercises		$ 50,000
Class of Warrant or Right, Exercise Price of Warrants or Rights (in Dollars per share)		$ 0.095
Offering Amount	$ 2,000,000
Exploration Expenditures Authorized	$ 100,000
Director [Member]
NOTE 10. SUBSEQUENT EVENTS (Details) [Line Items]
Class of Warrant or Right, Exercise Price of Warrants or Rights (in Dollars per share)			$ 0.06
Director [Member] | Subsequent Event [Member]
NOTE 10. SUBSEQUENT EVENTS (Details) [Line Items]
Class of Warrant or Rights, Exercised (in Shares)		10,000
Proceeds from Warrant Exercises		$ 479
Class of Warrant or Right, Exercise Price of Warrants or Rights (in Dollars per share)		$ 0.59