Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | |
Dec. 31, 2015 | Jun. 17, 2016 | |
Document And Entity Information | ||
Entity Registrant Name | Rockdale Resources Corp | |
Entity Central Index Key | 1,368,637 | |
Document Type | 10-K | |
Trading Symbol | BBLS | |
Document Period End Date | Dec. 31, 2015 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 | |
Entity a Well-known Seasoned Issuer | No | |
Entity a Voluntary Filer | No | |
Entity's Reporting Status Current | Yes | |
Entity Filer Category | Smaller Reporting Company | |
Entity Public Float | $ 1,960,539 | |
Entity Common Stock, Shares Outstanding | 46,108,707 | |
Document Fiscal Period Focus | FY | |
Document Fiscal Year Focus | 2,015 |
BALANCE SHEETS
BALANCE SHEETS - USD ($) | Dec. 31, 2015 | Dec. 31, 2014 |
Current assets | ||
Cash | $ 3,091 | $ 24,688 |
Accounts receivable | 48,633 | 26,176 |
Other current assets | 31,049 | 40,801 |
Total current assets | 82,773 | 91,665 |
Oil and gas, on the basis of full cost accounting | ||
Evaluated properties | 4,733,853 | 3,715,779 |
Furniture, equipment & software | 108,234 | 94,283 |
Less accumulated DD&A | (1,045,644) | (283,984) |
Net property and equipment | 3,796,443 | 3,526,078 |
Other Assets | 316,800 | |
Total Assets | 4,196,016 | 3,617,743 |
Current liabilities | ||
Accounts payable | 169,564 | 99,425 |
Accrued liabilities | 130,582 | 8,875 |
Convertible debt - related party, net of discount of $171,573 | 378,427 | |
Current maturities of installment notes payable | 21,144 | 18,877 |
Deferred rent | 2,816 | 2,816 |
Note Payable - related party | 192,875 | |
Total current liabilities | 895,408 | 129,993 |
Asset retirement obligations | 213,328 | 100,175 |
Convertible debt - related party, net of discount of $324,533 | 225,447 | |
Installment note payable | 6,652 | 26,362 |
Total Liabilities | 1,115,388 | 481,977 |
Stockholders' Equity | ||
Common stock, $.001 par value; 150,000,000 shares authorized; 42,839,958 and 19,353,152 shares issued and outstanding | 42,840 | 19,353 |
Additional paid in capital | 9,129,629 | 7,351,640 |
Accumulated deficit | (6,091,841) | (4,235,227) |
Total Stockholders' Equity | 3,080,628 | 3,135,766 |
Total Liabilities and Stockholders' Equity | $ 4,196,016 | $ 3,617,743 |
BALANCE SHEETS (Parenthetical)
BALANCE SHEETS (Parenthetical) - USD ($) | Dec. 31, 2015 | Dec. 31, 2014 |
Statement of Financial Position [Abstract] | ||
Discount of Convertible debt - related party | $ 171,573 | $ 324,533 |
Preferred stock, par value (in dollars per share) | $ 0.10 | $ 0.10 |
Preferred stock, authorized | 1,000,000 | 1,000,000 |
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 | 150,000,000 | 150,000,000 |
Common stock, issued | 42,839,958 | 19,353,152 |
Common stock, outstanding | 42,839,958 | 19,353,152 |
STATEMENT OF OPERATIONS
STATEMENT OF OPERATIONS - USD ($) | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Income Statement [Abstract] | ||
Oil and gas sales | $ 187,976 | $ 683,536 |
Operating expenses | ||
Lease operating expense | 241,644 | 290,557 |
Production tax | 8,659 | 29,748 |
General and administrative expenses | 706,456 | 1,756,668 |
Depreciation, depletion and amortization | 94,964 | 165,943 |
Asset retirement obligation accretion | 11,856 | 1,872 |
Impairment of oil & gas properties | 668,073 | |
Total Operating Expense | 1,731,652 | 2,244,788 |
Loss from Operations | (1,543,676) | (1,561,252) |
Interest (expense) | (241,778) | (113,281) |
Other income (expense) | 38,719 | |
Loss on conversion of debt | (109,879) | |
Net loss from continuing operations before taxes | (1,856,614) | (1,674,533) |
Income tax provision (benefit) | 0 | 0 |
Net Loss | $ (1,856,614) | $ (1,674,533) |
Loss per share (Basic and fully diluted) (in dollars per share) | $ (0.07) | $ (0.09) |
Weighted average number of common shares outstanding, basic and diluted (in shares) | 24,875,600 | 18,070,038 |
STATEMENTS OF CASH FLOWS
STATEMENTS OF CASH FLOWS - USD ($) | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Cash Flows from Operating Activities | ||
Net Loss | $ (1,856,614) | $ (1,674,533) |
Adjustment to reconcile net loss to net cash Used in operating activities: | ||
Depreciation and amortization | 94,964 | 165,943 |
Accretion of debt discount | 152,980 | 86,124 |
Finance fee for extension on note payable | 37,500 | |
Impairment of oil & gas properties | 668,073 | |
Loss on conversion of debt | 109,879 | |
Loss on disposal of assets | 497 | 10,945 |
Asset retirement obligation accretion | 11,856 | 1,872 |
Stock-based compensation expense-employees | 185,395 | 700,303 |
Stock-based compensation expense-consultants and directors | 447,000 | |
Changes in operating assets and liabilities | ||
Accounts receivable | (22,457) | 32,300 |
Other assets | 9,752 | 12,879 |
Accounts payable | 70,139 | 48,485 |
Accrued liabilities | 81,707 | (1,041) |
Deferred rent | (4,172) | |
Deferred salaries | 40,000 | |
Net cash flows used in operating activities | (416,329) | (173,895) |
Cash Flows from Investing Activities | ||
Purchase property and equipment | (19,854) | (15,803) |
Proceeds from sale of property and equipment | 4,029 | |
Capital expenditures on oil and gas properties | (675,426) | |
Cash flows used in investing activities | (15,825) | (691,229) |
Cash Flows from Financing Activities | ||
Proceeds from shareholder advances | 134,000 | |
Proceeds from issuance of common stock | 302,000 | 780,024 |
Payments of shareholder advances | (8,000) | |
Payments on notes payable | (17,443) | (69,987) |
Note payable for purchase of equipment | 57,613 | |
Cash flows provided by financing activities | 410,557 | 767,650 |
Net change in cash and cash equivalents | (21,597) | (97,474) |
Cash and cash equivalents | ||
Beginning of period | 24,688 | 122,162 |
End of period | 3,091 | 24,688 |
SUPPLEMENTAL DISCLOSURES | ||
Interest paid | 5,660 | |
NON-CASH INVESTING AND FINANCIAL DISCLOSURES | ||
Truck transferred to former CEO | 41,636 | |
Initial recognition of asset retirement obligations | 26,201 | 19,418 |
Change in estimated cash flows from asset retirement obligation | 75,096 | 66,081 |
Fair value of stock issued for oil properties (TLSAU) | 196,875 | |
Fair value of stock issued for oil properties (SUDS) | 719,903 | |
Fair value of stock issued for note receivable (TLSAU) | 316,800 | |
Shares issued in payment of shareholder advance | $ 130,000 | |
Note payable for equipment | $ 57,613 |
STATEMENTS OF STOCKHOLDERS' EQU
STATEMENTS OF STOCKHOLDERS' EQUITY (DEFICIT) - USD ($) | Common Stock [Member] | Additional Paid-In Capital [Member] | Accumulated Deficit [Member] | Total |
Balance, beginning at Dec. 31, 2013 | $ 14,178 | $ 5,429,488 | $ (2,560,694) | $ 2,882,972 |
Balance, beginning (in shares) at Dec. 31, 2013 | 14,178,041 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Stock based compensation - directors | $ 200 | 34,800 | ||
Stock based compensation - directors (in shares) | 200,000 | |||
Repurchase and cancellation of common shares | $ (1,000) | 1,000 | ||
Repurchase and cancellation of common shares (in shares) | (1,000,000) | |||
Shares issued for cash | $ 2,600 | 777,424 | ||
Shares issued for cash (in shares) | 2,600,111 | |||
Stock-based compensation - employees | $ 2,425 | 697,878 | ||
Stock-based compensation - employees (in shares) | 2,425,000 | |||
Stock-based compensation - consultants | $ 950 | 411,050 | ||
Stock-based compensation - consultants (in shares) | 950,000 | |||
Net loss | (1,674,533) | (1,674,533) | ||
Balance, ending at Dec. 31, 2014 | $ 19,353 | 7,351,640 | (4,235,227) | 3,135,766 |
Balance, ending (in shares) at Dec. 31, 2014 | 19,353,152 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Shares issued for services | $ 1,100 | 52,178 | 53,278 | |
Shares issued for services (in shares) | 1,100,000 | |||
Stock based compensation - directors | 132,117 | $ 132,117 | ||
Repurchase and cancellation of common shares | $ (400) | 400 | ||
Repurchase and cancellation of common shares (in shares) | (400,000) | |||
Shares issued related to acquisitions | $ 10,587 | 709,316 | $ 719,903 | |
Shares issued related to acquisitions (in shares) | 10,586,806 | |||
Shares issued for note receivable | $ 6,000 | 310,800 | 316,800 | |
Shares issued for note receivable (in shares) | 6,000,000 | |||
Shares issued for note extension | $ 500 | 37,000 | 37,500 | |
Shares issued for note extension (in shares) | 500,000 | |||
Shares issued for cash | $ 4,100 | 297,900 | 302,000 | |
Shares issued for cash (in shares) | 4,100,000 | |||
Shares issued for conversion of shareholder advances | $ 1,600 | 238,278 | 239,878 | |
Shares issued for conversion of shareholder advances (in shares) | 1,600,000 | |||
Net loss | (1,856,614) | (1,856,614) | ||
Balance, ending at Dec. 31, 2015 | $ 42,840 | $ 9,129,629 | $ (6,091,841) | $ 3,080,628 |
Balance, ending (in shares) at Dec. 31, 2015 | 42,839,958 |
ORGANIZATION
ORGANIZATION | 12 Months Ended |
Dec. 31, 2015 | |
Disclosure Text Block [Abstract] | |
ORGANIZATION | NOTE 1. ORGANIZATION Rockdale Resources Corporation (“we”, “us”, the “Company”) was formed for the purpose of oil and gas exploration, development, and production. 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”). |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Dec. 31, 2015 | |
Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | NOTE 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation The accompanying financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) and pursuant to the accounting and disclosure rules and regulations of the U.S. Securities and Exchange Commission (“SEC”). A summary of the significant accounting policies applied in the preparation of the accompanying financial statements follows. Management Estimates The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect 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. Significant estimates made in preparing these financial statements include asset retirement obligations , income and the estimate of proved oil and gas reserves and related present value estimates of future net cash flows therefrom (Note 10). Reclassifications Cash and Cash Equivalents Oil and Gas Properties The capitalized costs of oil and gas properties, excluding unevaluated and unproved properties, are amortized as depreciation, depletion and amortization expense using the units-of-production method based on estimated proved recoverable oil and gas reserves. The costs associated with unevaluated and unproved properties, initially excluded from the amortization base, relate to unproved leasehold acreage, wells and production facilities in progress and wells pending determination of the existence of proved reserves, together with capitalized interest costs for these projects. Unproved leasehold costs are transferred to the amortization base with the costs of drilling the related well once a determination of the existence of proved reserves has been made or upon impairment of a lease. Costs associated with wells in progress and completed wells that have yet to be evaluated are transferred to the amortization base once a determination is made whether or not proved reserves can be assigned to the property. Costs of dry wells are transferred to the amortization base immediately upon determination that the well is unsuccessful. All items classified as unproved property are assessed on a quarterly basis for possible impairment or reduction in value. Properties are assessed on an individual basis or as a group if properties are individually insignificant. The assessment includes consideration of various factors, including, but not limited to, the following: intent to drill; remaining lease term; geological and geophysical evaluations; drilling results and activity; assignment of proved reserves; and economic viability of development if proved reserves are assigned. During any period in which these factors indicate an impairment, the cumulative drilling costs incurred to date for such property and all or a portion of the associated leasehold costs are transferred to the full cost pool and become subject to amortization. Under full cost accounting rules for each cost center, capitalized costs of evaluated oil and gas properties, including asset retirement costs, less accumulated amortization and related deferred income taxes, may not exceed an amount (the “cost ceiling”) equal to the sum of (a) the present value of future net cash flows from estimated production of proved oil and gas reserves, based on current prices and operating conditions, discounted at ten percent (10%), plus (b) the cost of properties not being amortized, plus (c) the lower of cost or estimated fair value of any unproved properties included in the costs being amortized, less (d) any income tax effects related to differences between the book and tax basis of the properties involved. If capitalized costs exceed this limit, the excess is charged to operations. For purposes of the ceiling test calculation, current prices are defined as the unweighted arithmetic average of the first day of the month price for each month within the 12 month period prior to the end of the reporting period. Prices are adjusted for basis or location differentials. Unless sales contracts specify otherwise, prices are held constant for the productive life of each well. Similarly, current costs are assumed to remain constant over the entire calculation period. There was no impairment during the year ended December 31, 2014. In 2015, there was an impairment of $668,073 which was primarily due to the decrease in oil prices during the year. Given the volatility of oil and gas prices, it is reasonably possible that the estimate of discounted future net cash flows from proved oil and gas reserves could change in the near term. If oil and gas prices decline in the future, even if only for a short period of time, it is possible that impairments of oil and gas properties could occur. In addition, it is reasonably possible that impairments could occur if costs are incurred in excess of any increases in the present value of future net cash flows from proved oil and gas reserves, or if properties are sold for proceeds less than the discounted present value of the related proved oil and gas reserves. Revenue Recognition Receivables and allowance for doubtful accounts Asset Retirement Obligations Inherent in the fair value calculation of an ARO are numerous assumptions and judgments including the ultimate settlement amounts, inflation factors, credit adjusted discount rates, timing of settlement, and changes in the legal, regulatory, environmental and political environments. To the extent future revisions to these assumptions impact the fair value of the existing ARO liability, a corresponding adjustment is made to the oil and gas property balance. Settlements greater than or less than amounts accrued as ARO are recorded as a gain or loss upon settlement. Debt Issuance Costs Stock-Based Compensation The Company accounts for stock-based compensation to employees in accordance with FASB ASC 718. Stock-based compensation to employees is measured at the grant date, based on the fair value of the award, and is recognized as expense over the requisite employee service period. The Company accounts for stock-based compensation to other than employees in accordance with FASB ASC 505-50. Equity instruments issued to other than employees are valued at the earlier of a commitment date or upon completion of the services, based on the fair value of the equity instruments, and is recognized as expense over the service period. The Company estimates the fair value of stock-based payments using the Black-Scholes option-pricing model for common stock options and warrants and the closing price of the Company’s common stock for common share issuances. The Company may grant stock to employees and contractors in exchange for services rendered. Income Taxes Income Taxes Uncertain tax positions are recognized in the financial statements only if that position is more likely than not of being sustained upon examination by taxing authorities, based on the technical merits of the position. The Company recognizes interest and penalties related to uncertain tax positions in the income tax provision. There are currently no unrecognized tax benefits that if recognized would affect the tax rate. There was no interest or penalties recognized for the twelve months ended December 31, 2015. The Company is required to file federal income tax returns in the United States and in various state and local jurisdictions. The Company’s tax returns filed since the 2010 tax year are subject to examination by taxing authorities in the jurisdictions in which it operates in accordance with the normal statutes of limitations in the applicable jurisdiction. Furniture, equipment, and software Earnings (Loss) Per Share Concentration of Credit Risk At times, the Company maintains deposits in federally insured financial institutions in excess of federally insured limits. Management monitors the credit ratings and concentration of risk with these financial institutions on a continuing basis to safeguard cash deposits. Fair Value Measurements 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. |
GOING CONCERN
GOING CONCERN | 12 Months Ended |
Dec. 31, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
GOING CONCERN | NOTE 3. GOING CONCERN The Company has suffered recurring losses from operations. These conditions raise substantial doubt about the CompanyÂ’s ability to continue as a going concern. We plan to generate profits by drilling productive oil or gas wells. However, we will need to raise the funds required to drill new wells through the sale of our securities, through loans from third parties or from third parties willing to pay our share of drilling and completing the wells. We do not have any commitments or arrangements from any person to provide us with any additional capital. If additional financing is not available when needed, we may need to cease operations. We may not be successful in raising the capital needed to drill oil or gas wells. Any wells that we may drill may not be productive of oil or gas. Management believes that actions presently being taken to obtain additional funding provide the opportunity for the Company to continue as a going concern. 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 RECEIVABLE
NOTE RECEIVABLE | 12 Months Ended |
Dec. 31, 2015 | |
Receivables [Abstract] | |
NOTE RECEIVABLE | NOTE 4. NOTE RECEIVABLE The Company purchased a Note Receivable from Blue Sky New Mexico, Inc. (“BSNM”) on November 4, 2015 with a face value of $1,300,000. BSNM had previously purchased this note from the Bankruptcy Trustee, it was an asset of the Orbit Petroleum bankruptcy liquidation. The Company issued six million (6,000,000) shares of Rockdale Resources Corporation stock as consideration for the note. The dollar value of the shares on this date was $316,800, specifically 6,000,000 shares at a market price of $0.528 per share. The note bears an annual simple interest rate that accrues at the rate of 10%. The note is secured by mortgages on the Twin Lakes oil and gas leases. On November 4, 2015, the note was past due and is considered to be in default. As the owner of the note, the Company is implementing foreclosure proceedings. |
RELATED PARTY
RELATED PARTY | 12 Months Ended |
Dec. 31, 2015 | |
Related Party Transactions [Abstract] | |
RELATED PARTY | NOTE 5. RELATED PARTY During the year ended December 31, 2014, the Company sold 2,600,111 shares to private investors as part of the private placement detailed in During 2015, shareholder advances of $184,000 were made to the Company ($134,000 in cash, $50,000 in a non-cash part of the Twin Lakes purchase). During 2015, $88,000 of those advances were repaid in cash. The $50,000 non-cash payment was resulted from the issuance of 800,000 shares at a price of $0.06 per share. At year end, the balance of $46,000 remains outstanding but was repaid during the first quarter of 2016. On January 27, 2014, 800,000 shares were granted to David Baker in the first quarter of 2014 as consideration for his services as a consultant. The consulting agreement can be found in the 8-K filed on January 27, 2014. The shares granted to David Baker resulted in $380,000 of general and administrative expense in the first quarter of 2014. On June 2, 2014 we issued 50,000 shares to an analyst for one year of service to research surrounding production near future oil and gas properties the Company is evaluating. The shares granted resulted in $19,000 of general and administrative expense in the second quarter of 2014. On June 2, 2014, David Baker and Marc Spezialy entered into employment agreements with the Company. In addition to a base salary and in consideration for both Mr. Baker's and Mr. Spezialy's future services as officers and directors, each received restricted shares of the Company's common stock according to the terms of their respective employment agreements which can be found in the 8-K filed on June 4, 2014. Mr. Baker received a one-time grant of 800,000 restricted shares of the Company's common stock effective June 1, 2014 for his service as Chief Executive Officer. The shares shall be forfeited should the employment agreement be terminated for any reason prior to the conclusion of the initial 18 month term at a rate equal to 44,445 of the shares for each whole month that the employment period is terminated prior to the conclusion of the initial 18 month term. The Company is accounting for the expense of these shares over the term of Mr. Baker's employment. As of December 31, 2014, $118,225 has been expensed related to this 800,000 share grant. Mr. Baker also received a separate grant of an additional 100,000 restricted shares of the Company's common stock for his services as a Director effective June 1, 2014. These shares are not subject to potential forfeiture. Mr. Spezialy received a one-time grant of 1,000,000 restricted shares of the Company's common stock, effective June 1, 2014 for his service as Chief Operating Officer. These shares were fully vested and non-forfeitable at the time of the grant. Mr. Spezialy also received a separate grant of an additional 100,000 restricted shares of the Company's common stock for his services as a Director, effective June 1, 2014. Matthew Ferguson received a grant of 100,000 restricted shares of the Company's common stock as compensation for his services as a Director and a separate grant of an additional 100,000 restricted shares of the Company's stock for his services as a board advisor. All of these grants effective June 1, 2014 were valued at $.38 cents the closing price of the Companies’ stock at that date. In August 2014, the Company granted 100,000 shares of common stock to Leo Womack for his services as a director during. These shares were valued, using the closing stock price on the date of grant, at $23,000. In September 2014, Marc Spezialy resigned as an officer and director of the company and transferred 1,000,000 shares of the Company's common stock, to the Company for no consideration. These shares were returned to treasury and cancelled. In October 2014 an individual received 100,000 shares of restricted common stock in connection with consulting services he has rendered and will render in the future. These shares are not subject to vesting, the grant date fair value is $0.13 and it was determined by the closing stock price on the date of grant. As of December 15, 2014 Mr. Lee H. Lytton was elected a Director of the Company and was granted 100,000 shares of common stock valued at $0.12 as of the closing stock price on the day granted. The company has granted 488,895 restricted shares to David Baker which were not vested on December 31, 2014. After his resignation on February 28, 2015, 400,000 of these shares were voided and returned to the treasury. Stock based compensation of $33,778 shares was recorded related to shares issued to David N. Baker, former CEO and Director of the Company, during the three months ended March 31, 2015. The Company received 400,000 shares from David N. Baker upon his resignation and cancelled the certificates with its transfer agent. On May 1, 2015, the Company commenced a private offering of its securities under Regulation D to accredited investors. Each unit is comprised of 100,000 shares of common stock at a price of $0.10 cents per share and one warrant to purchase an additional 100,000 shares of common stock at a price of $0.12 cents per share at any time prior to August 5, 2018. As of December 31, 2015 fourteen (14) units had been subscribed for and 1,400,000 shares of common stock had been purchased. Also, Jovian Petroleum Corporation, a contract operator for the Company, purchased 100,000 of those shares. Included in the fourteen units was a purchase of 100,000 shares by Joel Oppenheim, a Director of the Company. Eight (8) units were subscribed for and 800,000 shares were issued for conversion of debt. The eight units issued for the conversion of debt were issued as follows. Mr. Leo Womack, Chairman of Rockdale Resources, purchased 300,000 shares (including 300,000 warrants) through the Leo B. Womack Family Trust. Mr. Lee Lytton, a Director of the Company, purchased 300,000 shares (including 300,000 warrants). Mr. Joel Oppenheim, a Director of the Company, purchased 200,000 shares (including 200,000 warrants). These 800,000 shares (and 800,000 warrants) offset a total of $80,000 in advances from affiliates that was disclosed as a liability in the financial statements as of March 31, 2015 and were converted to equity in this offering. The conversion resulted in a $90,800 loss on the conversion (including the value of the warrants). On June 11, 2015, our board of directors agreed to issue Joel Oppenheim 100,000 shares of our restricted common stock at a price of $0.11 cents per share in consideration for agreeing to serve on our board of directors. On September 1, 2015, the Company commenced a private offering of its securities under Regulation D to accredited investors. Each unit is comprised of 100,000 shares of common stock at a price of $0.06 cents per share and one warrant to purchase an additional 100,000 shares of common stock at a price of $0.10 cents per share at any time prior to August 31, 2018. As of December 31, 2015 twenty seven (27) units had been subscribed for and 2,700,000 shares of common stock had been purchased. Included in the twenty seven units was a purchase of 400,000 shares by both Mr. Joel Oppenheim and Mr. Lee Lytton, both Directors of the Company. Both Directors’ purchased 200,000 shares each. This offering was closed on May 31, 2016. Eight (8) units were subscribed for and 800,000 shares were issued for conversion of debt. The eight units issued for the conversion of debt were issued to Zel Khan, the CEO of the Company. Mr. Khan was issued 800,000 shares valued at $48,000 and 800,000 warrants valued at $21,107 resulting in a loss on conversion of $19,079. On September 23, 2015, the Board of Directors granted Leo B. Womack, the Chairman of the Board of Directors of the Company an option to purchase 1 million shares of the Company’s common stock at an exercise price of $0.06 per share, which vests on January 1, 2016, 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 on January 1, 2016, and are exercisable for 36 months thereafter. The fair value of the options granted on September 23, 2015 is $129,216. The total amount of the options was expensed in 2015. On September 23, 2015, Rockdale’s Board of Directors agreed to issue Mr. Zel C. Khan, the CEO and President of the Company, 1,000,000 shares of Rockdale’s restricted common stock in consideration for entering into an employment agreement with the Company. The value of the award on the issuance date was $68,000. In 2015, $8,500 of this award was expensed. The remaining award amount at year end is $59,500. The Company will issue one warrant to purchase one share of the Company’s restricted common stock at an exercise price of $0.20 cents per share for each dollar of Mr. Khan’s gross salary that is deferred. The Warrants will have a term of 36 months from date of grant, which will be quarterly. At December 31, 2015, 40,000 warrants were issued related to the gross salary deferral. A total of 1,600,000 shares were issued through the conversion of debt, along with 1,600,000 warrants. These conversions resulted in a total of $130,000 being repaid through the issuance of the equity. The total corresponding loss on conversion of the debt was $109,879, which was primarily resulting from the valuation of the warrants. (See Note 7. EQUITY for the details of these transactions) On November 4, 2015, a note was issued to BSNM for $146,875 as part of the TLSAU acquisition. See footnote 6 for further details The Company acquired a 10% working interest in the SUDS field from Jovian, in exchange for 10,586,805 shares of restricted common stock. Based on that current market value of Rockdale stock at $0.068 per share, the price paid was $719,903 or $4.77 dollars per barrel of oil (Bbl). (See Item1: Business for more information). On November 4, 2015, the Company acquired a 15% net working interest in the TLSAU field located in Chavez County, New Mexico (the “Net Working Interest”) and all operating equipment on the field. The total purchase price for the acquisition of the Net Working Interest and equipment rights was $196,875 or $0.52 dollars per barrel of oil (Bbl). In addition, a $1.3M face value BSNM note was purchased for $316,800 (6,000,000 shares or .0528 per share). (See Item 1: Business for more information) |
NOTES PAYABLE
NOTES PAYABLE | 12 Months Ended |
Dec. 31, 2015 | |
Notes Payable [Abstract] | |
NOTES PAYABLE | NOTE 6. NOTES PAYABLE Convertible Debt – Related Party On June 17, 2013, the Company entered into a Convertible Secured Note and Warrant Purchase Agreement (the “Purchase Agreement”) with Rick Wilber. Pursuant to the Purchase Agreement, the Company agreed to sell, and Mr. Wilber agreed to buy, for aggregate consideration of $350,000, a convertible secured promissory note in the principal amount of $350,000 (the “Note”) convertible at $0.30 per share, and a warrant to purchase 1,000,000 shares of the Company’s common stock (the “Warrant”) at an exercise price of $0.80 per share. The Company analyzed the Note and the Warrant for derivative accounting consideration and determined that derivative accounting is not applicable for these debts. The Warrant vests immediately and has a term of 10 years. The relative fair value of the Warrant was measured using the Black-Scholes option pricing model and determined to be $148,925, which was recorded as a debt discount. Variables used in the Black-Scholes option pricing model for the Warrant included: (1) discount rate of 2.19%, (2), expected life of ten years, (3) expected volatility of 196% and (4) zero expected dividends. The Note was then evaluated for a beneficial conversion feature and it was determined that a beneficial conversion feature existed. The intrinsic value of the beneficial conversion feature was determined to be $102,259 and was recorded as a debt discount. The debt discounts are being amortized over the life of the Note using the effective interest method. The effective interest rate was 53.7%. The $350,000 balance is due June 17, 2016. Negotiations are in progress to extend the due date to December 31, 2016. On September 30, 2013, the Company entered into a Convertible Secured Note and Warrant Purchase Agreement (the “September Purchase Agreement”) with Rick Wilber. Pursuant to the September Purchase Agreement, the Company agreed to sell, and Mr. Wilber agreed to buy, for aggregate consideration of $100,000, a convertible secured promissory note in the principal amount of $100,000 (the “September Note”) convertible at $0.30 per share, and a warrant to purchase 285,000 shares of the Company’s common stock (the “September Warrant”) at an exercise price of $0.80 per share. The Company analyzed the September Note and the September Warrant for derivative accounting consideration and determined that derivative accounting is not applicable for these debts. The September Warrant vests immediately and has a term of 10 years. The relative fair value of the September Warrant was measured using the Black-Scholes option pricing model and determined to be $46,022 which was recorded as a debt discount. Variables used in the Black-Scholes option pricing model for the September Warrant included: (1) discount rate of 2.64%, (2), expected life of ten years, (3) expected volatility of 196.3% and (4) zero expected dividends. The September Note was then evaluated for a beneficial conversion feature and it was determined that a beneficial conversion feature existed. The intrinsic value of the beneficial conversion feature was determined to be $46,022 and was recorded as a debt discount. The debt discounts are being amortized over the life of the September Note using the effective interest method. The effective interest rate was 119.7%. The $100,000 balance is due September 30, 2016. Negotiations are in progress to extend the due date to December 31, 2016. On December 31, 2013, the Company entered into a Convertible Secured Note and Warrant Purchase Agreement (the “December Purchase Agreement”) with Rick Wilber. The September Note was consolidated into the December Purchase Agreement. Pursuant to the December Purchase Agreement, in addition to the proceeds of the September Note, the Company agreed to sell, and Mr. Wilber agreed to buy, for aggregate consideration of $100,000, a convertible secured promissory note in the principal amount of $100,000 (the “December Note”) convertible at $0.30 per share, and a warrant to purchase 285,000 shares of the Company’s common stock (the “December Warrant”) at an exercise price of $0.80 per share. The Company analyzed the December Note and the December Warrant for derivative accounting consideration and determined that derivative accounting is not applicable for these debts. The December Warrant vests immediately and has a term of 10 years. The relative fair value of the December Warrant was measured using the Black-Scholes option pricing model and determined to be $49,873 which was recorded as a debt discount. Variables used in the Black-Scholes option pricing model for the December Warrant included: (1) discount rate of 2.64%, (2), expected life of ten years, (3) expected volatility of 195.8% and (4) zero expected dividends. The December Note was then evaluated for a beneficial conversion feature and it was determined that a beneficial conversion feature existed. The intrinsic value of the beneficial conversion feature was determined to be $50,127 and was recorded as a debt discount. The debt discounts are being amortized over the life of the December Note using the effective interest method. The effective interest rate was 132.2%. The $100,000 balance is due September 30, 2016. Negotiations are in progress to extend the due date to December 31, 2016. During the years ended December 31, 2015 and 2014, the Company amortized $152,980 and 86,124 of the total discounts on the three transactions above to interest expense. The unamortized discount at December 31, 2015 was $171,573, and the ending note payable-related party balance was $550,000; resulting in net convertible debt-related party of $378,427. Promissory Note – non convertible On November 4, 2015 the Company executed a Promissory Note for $146,875 related to the TLSAU acquisition. The note was due on December 31, 2015 and accrues at a rate of 10% per annum and 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 stock. On May 2, 2016, this note was converted to Rockdale shares. The 500,000 shares were issued at a price of $0.75 cents per share at a value of $37,500. (see Subsequent Events footnote for later payoff of this note) Installment Notes On May 8, 2014, the Company entered into an installment note with CNH Industrial Capital in the amount of $57,613 for a term of three years at 2.9% APR. Principal payments of $19,015 were made during 2015, leaving a remaining balance of $26,225 at year end ($19,573 current, $6,652 long term). Five Year Maturity As of December 31, 2015, future maturities on our notes payable, which include the $550,000 convertible notes payable-related party, $146,875 Promissory Note, $46,000 Related Party Notes and the $26,225 remaining balance of the installment note described above, were as follows: Fiscal year ending: 2016 $ 762,448 2017 $ 6,652 Total $ 769,100 Of the total future maturities, $550,000 relates to the convertible debt with Mr. Wilber, which all comes due in 2016. |
EQUITY
EQUITY | 12 Months Ended |
Dec. 31, 2015 | |
Stockholders' Equity Note [Abstract] | |
EQUITY | NOTE 7. EQUITY Preferred Stock 1,000,000 Common Stock During the year ended December 31, 2014, the Company sold 2,600,111 shares to private investors as part of the private placement detailed in the 8-K filed on February 14, 2014. The shares were all purchased at a price of $0.30 per share and include warrants to purchase additional shares (one-for-one) at $0.75 per share any time before August 5, 2019. The purchasers included David Baker, who after his investment on February 16, 2014 subsequently joined our Board of Directors on May 8, 2014 and became the Company’s Chief Executive Officer on June 2, 2014. The purchasers also included Leo Womack, who after his investment on August 15, 2014 simultaneously joined our Board of Directors. Mr. Womack purchased 166,667 shares and Mr. Baker purchased 416,675 shares. Mr. Lee Lytton also purchased 33,400 shares. On May 28, 2014 the Company entered into a financing services agreement (“Service Agreement”) with ViewTrade Securities Corporation (“ViewTrade”). The Company will pay a commission in an amount equal to 10% of the gross proceeds received from any purchaser of Units directly introduced to the Company by ViewTrade, together with a five-year warrant to purchase up to 10% of the Securities sold by ViewTrade at an exercise price of 110% of the Offering Price. The Service Agreement resulted in $2,500 of commission expense and 8,334 warrants issued at a strike price of $0.33 in the second quarter of 2014. As of June 30, 2014 the Service Agreement has been terminated. The Company evaluated the warrants for derivative accounting consideration under ASC Topic 815-40, Derivatives and Hedging - Contracts in Entity’s own stock. We concluded that the warrants meet the criteria for classification in stockholders’ equity. Therefore, derivative accounting is not applicable for the warrants. On January 27, 2014, 800,000 shares were granted to David Baker in the first quarter of 2014 as consideration for his services as a consultant. The consulting agreement can be found in the 8-K filed on January 27, 2014. The shares granted to David Baker resulted in $380,000 of general and administrative expense in the first quarter of 2014. On June 2, 2014 we issued 50,000 shares to an analyst for one year of service to research surrounding production near future oil and gas properties the Company is evaluating. The shares granted resulted in $19,000 of general and administrative expense in the second quarter of 2014. On June 2, 2014, David Baker and Marc Spezialy entered into employment agreements with the Company. In addition to a base salary and in consideration for both Mr. Baker’s and Mr. Spezialy’s future services as officers and directors, each received restricted shares of the Company’s common stock according to the terms of their respective employment agreements which can be found in the 8-K filed on June 4, 2014. Mr. Baker received a one-time grant of 800,000 restricted shares of the Company’s common stock effective June 1, 2014 for his service as Chief Executive Officer. The shares shall be forfeited should the employment agreement be terminated for any reason prior to the conclusion of the initial 18 month term at a rate equal to 44,445 of the shares for each whole month that the employment period is terminated prior to the conclusion of the initial 18 month term. The Company is accounting for the expense of these shares over the term of Mr. Baker’s employment. As of December 31, 2014, $118,225 has been expensed related to this 800,000 share grant. Mr. Baker also received a separate grant of an additional 100,000 restricted shares of the Company’s common stock for his services as a Director effective June 1, 2014. These shares are not subject to potential forfeiture. Mr. Spezialy received a one-time grant of 1,000,000 restricted shares of the Company’s common stock, effective June 1, 2014 for his service as Chief Operating Officer. These shares were fully vested and non-forfeitable at the time of the grant. Mr. Spezialy also received a separate grant of an additional 100,000 restricted shares of the Company’s common stock for his services as a Director, effective June 1, 2014. Matthew Ferguson received a grant of 100,000 restricted shares of the Company’s common stock as compensation for his services as a Director and a separate grant of an additional 100,000 restricted shares of the Company’s stock for his services as a board advisor. All of these grants effective June 1, 2014 were valued at $.38 cents the closing price of the Companies’ stock at that date. In August 2014, the Company granted 100,000 shares of common stock to Leo Womack for his services as a director during. These shares were valued, using the closing stock price on the date of grant, at $23,000. In September 2014, Marc Spezialy resigned as an officer and director of the company and transferred 1,000,000 shares of the Company’s common stock, to the Company for no consideration. These shares were returned to treasury and cancelled. In October 2014 an individual received 100,000 shares of restricted common stock in connection with consulting services he has rendered and will render in the future. These shares are not subject to vesting, the grant date fair value is $0.13 and it was determined by the closing stock price on the date of grant. As of December 15, 2014 Mr. Lee H. Lytton was elected a Director of the Company and was granted 100,000 shares of common stock valued at $0.12 as of the closing stock price on the day granted. The company has granted 488,895 restricted shares to David Baker which were not vested on December 31, 2014. After his resignation on February 28, 2015, 400,000 of these shares were voided and returned to the treasury. Stock based compensation of $33,778 shares was recorded related to shares issued to David N. Baker, former CEO and Director of the Company, during the three months ended March 31, 2015. The Company received 400,000 shares from David N. Baker upon his resignation and cancelled the certificates with its transfer agent. On May 1, 2015, the Company commenced a private offering of its securities under Regulation D to accredited investors. Each unit is comprised of 100,000 shares of common stock at a price of $0.10 cents per share and one warrant to purchase an additional 100,000 shares of common stock at a price of $0.12 cents per share at any time prior to August 5, 2018. As of December 31, 2015 fourteen (14) units had been subscribed for and 1,400,000 shares of common stock had been purchased. Included in the fourteen units was a purchase of 100,000 shares by Joel Oppenheim, a Director of the Company. Also, Jovian Petroleum Corporation, a contract operator for the Company, purchased 100,000 of those shares. Eight (8) units were subscribed for and 800,000 shares were issued for conversion of debt. The eight units issued for the conversion of debt were issued as follows. Mr. Leo Womack, Chairman of Rockdale Resources, purchased 300,000 shares (including 300,000 warrants) through the Leo B. Womack Family Trust. Mr. Lee Lytton, a Director of the Company, purchased 300,000 shares (including 300,000 warrants). Mr. Joel Oppenheim, a Director of the Company, purchased 200,000 shares (including 200,000 warrants). These 800,000 shares (and 800,000 warrants) offset a total of $80,000 in advances from affiliates that was disclosed as a liability in the financial statements as of March 31, 2015 and were converted to equity in this offering. The conversion resulted in a $90,800 loss on the conversion (including the value of the warrants). On June 11, 2015, our board of directors agreed to issue Joel Oppenheim 100,000 shares of our restricted common stock at a price of $0.11 cents per share in consideration for agreeing to serve on our board of directors. On September 1, 2015, the Company commenced a private offering of its securities under Regulation D to accredited investors. Each unit is comprised of 100,000 shares of common stock at a price of $0.06 cents per share and one warrant to purchase an additional 100,000 shares of common stock at a price of $0.10 cents per share at any time prior to August 31, 2018. As of December 31, 2015 twenty seven (27) units had been subscribed for and 2,700,000 shares of common stock had been purchased. Included in the twenty seven units was a purchase of 400,000 shares by both Mr. Joel Oppenheim and Mr. Lee Lytton, both Directors of the Company. Both Directors’ purchased 200,000 shares each. This offering was closed on May 31, 2016. Eight (8) units were subscribed for and 800,000 shares were issued for conversion of debt. The eight units issued for the conversion of debt were issued to Zel Khan, the CEO of the Company. Mr. Khan was issued 800,000 shares valued at $48,000 and 800,000 warrants valued at $21,107 resulting in a loss on conversion of $19,079. On September 23, 2015, 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 on January 1, 2016, 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 on January 1, 2016, and are exercisable for 36 months thereafter. The fair value of the options granted on September 23, 2015 is $129,216. The total amount of the options was expensed in 2015. On September 23, 2015, Rockdale’s Board of Directors agreed to issue Mr. Zel C. Khan, the CEO and President of the Company, 1,000,000 shares of Rockdale’s restricted common stock in consideration for entering into an employment agreement with the Company. The value of the award on the issuance date was $68,000. In 2015, $8,500 of this award was expensed. The remaining award amount at year end is $59,500. The Company will issue one warrant to purchase one share of the Company’s restricted common stock at an exercise price of $0.20 cents per share for each dollar of Mr. Khan’s gross salary that is deferred. The Warrants will have a term of 36 months from date of grant, which will be quarterly. At December 31, 2015, 40,000 warrants were issued related to the gross salary deferral. On September 24, 2015, the Board of Directors of the Company approved the adoption of the 2015 Stock Incentive Plan (the “Plan”). The Plan provides an opportunity, subject to approval of our Board of Directors of individual grants and awards, for any employee, officer, director or consultant of the Company. The maximum aggregate number of shares of common stock which may be issued pursuant to awards under the Plan is 4,000,000 shares. The plan was ratified by the stockholders at the Company’s annual meeting which was held on April 14, 2016. Summary information regarding common stock warrants issued and outstanding as of December 31, 2015, is as follows: Warrants Weighted Average Exercise Price Aggregate intrinsic value Weighted average remaining contractual life (years) Outstanding at year ended December 31, 2013 1,570,000 $ 0.80 $ — 8.6 Granted 2,608,445 0.75 — 4.5 Exercised — — — Expired (8,334 ) — — Outstanding at year ended December 31, 2014 4,170,111 0.77 — 6.1 Granted 7,740,000 0.10 — 2.6 Exercised — — — Expired — — — Outstanding at year ended December 31, 2015 11,910,111 $ 0.33 $ — 3.5 |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended |
Dec. 31, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | NOTE 8. COMMITMENTS AND CONTINGENCIES Environmental Matters – Office Lease |
OIL AND GAS ACQUISITIONS
OIL AND GAS ACQUISITIONS | 12 Months Ended |
Dec. 31, 2015 | |
Oil and Gas Property [Abstract] | |
OIL AND GAS ACQUISITIONS | NOTE 9. OIL AND GAS ACQUISITIONS The Minerva-Rockdale Field, which is located approximately 30 miles Northeast of Austin, was first discovered in 1921 and is approximately 50 square miles in size. The main producing formation for this field is the Upper Cretaceous Navarro Group of sands and shale’s. The Navarro is typically subdivided into several producing zones from the uppermost “A” and “B” sands to the lower “C” and “D” sands. The “B” sand is the primary producing zone. These sands are commonly fine grained and poorly sorted and were deposited close to a shoreline during a cycle of marine regression. In April 2013, the Company entered into a lease pertaining to a 423 acre tract in Milam County, Texas, which is adjacent to the Company’s original 200 acre lease. The Company issued 500,000 shares of its common stock as consideration for a 100% working interest (75% net revenue interest) in such lease. As of December 31, 2015, the Company had completed the drilling of sixteen wells on the leased properties. Four of these wells have been pledged as collateral for the convertible notes payable. On September 23, 2015, the Company entered into a Purchase and Sale Agreement with SUDS Properties, LLC (“SUDS” and the “Purchase Agreement”). SUDS is 100% owned by Jovian Resources LLC (“Jovian”). Mr. Zel C. Khan, our present CEO, is the former manager of Jovian. Pursuant to the Purchase Agreement, the Company acquired a 10% working interest (carrying a 7.8% NRI) in the SUDS field located in Creek County Oklahoma, in exchange for 10,586,805 shares of restricted common stock. Based on that current market value of Rockdale stock at $0.068 per share, the price paid was $719,903 or $4.77 dollars per barrel of oil (Bbl). Through this transaction, the Company increased its reserve base by approximately 151,000 Bbls of (1P) proven reserves. Concurrently with the purchase, Jovian agreed to assign to Rockdale all rights to be the operator of the SUDS unit under a standard operating agreement. The Company did not prepare an unaudited pro-forma income statement table for 2015 and 2014, related to this SUDS purchase, because the net income effect of those transactions was consider to be immaterial. On November 4, 2015, the Company acquired a 15% net working interest in the TLSAU field located in Chavez County, New Mexico (the “Net Working Interest”) and all operating equipment on the field, pursuant to the terms of a Memorandum of Agreement between the Company and BSNM, which was dated November 4, 2015 (the “Purchase Agreement”). |
ASSET RETIREMENT OBLIGATIONS
ASSET RETIREMENT OBLIGATIONS | 12 Months Ended |
Dec. 31, 2015 | |
Asset Retirement Obligation Disclosure [Abstract] | |
ASSET RETIREMENT OBLIGATIONS | NOTE 10. ASSET RETIREMENT OBLIGATIONS During the calendar years presented, the Company brought a number of oil and gas wells into productive status and will have asset retirement obligations once the wells are permanently removed from service. The primary obligations involve the removal and disposal of surface equipment, plugging and abandoning the wells, and site restoration. For the purpose of determining the fair value of ARO incurred during the calendar years presented, the Company used the following assumptions: December Inflation rate (avg.) 1.6 % Estimated asset life 16 years The following table shows the change in the Company’s ARO for 2015 and 2014: Asset retirement obligations at December 31, 2013 $ 12,804 Obligations assumed in acquisition — Additional retirement obligations incurred 19,418 Change in estimate 66,081 Accretion expense 1,872 Settlements — Asset retirement obligations at December 31, 2014 $ 100,175 Obligations assumed in acquisition 26,201 Additional retirement obligations incurred Change in estimate 75,096 Accretion expense 11,856 Settlements — Asset retirement obligations at December 31, 2015 $ 213,328 |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | NOTE 11. INCOME TAXES There was no provision for income taxes for 2015 and 2014 due to a net operating losses and doubt as to the entity’s ability to continue as a going concern resulting in a 100% valuation allowance. Years from 2012 forward are open to IRS examination. The provision for income taxes differs from the amount computed by applying the federal statutory income tax rate (35%) on operations due primarily to permanent differences attributable to organizational expenses. Fiscal Year Fiscal Year Income tax expense computed at statutory rates $ (649,815 ) $ (603,209 ) Non-deductible items 66,313 468,253 Change in valuation allowance 583,502 134,956 Total $ — $ — The components of the net deferred tax asset were as follows: December 31, 2014 Gross Values Tax Effect Deferred tax assets Book Impairment $ — $ — Net operating loss carryforwards 4,235,227 1,482,329 Asset retirement obligation — — Other — — Total deferred tax assets 4,235,227 1,482,329 Deferred tax liabilities O&G Properties (1,631,976 ) (571,192 ) Other — — Total deferred tax liabilities (1,631,976 ) (571,192 ) Less: Valuation allowance (2,603,251 ) (911,137 ) Net deferred tax assets (liabilities) $ — $ — December 31, 2015 Gross Values Tax Effect Deferred tax assets Book Impairment $ 668,073 $ 233,826 Net operating loss carryforwards 5,911,319 1,742,830 Asset retirement obligation — — Other — — Total deferred tax assets 6,579,392 1,976,656 Deferred tax liabilities O&G Properties (2,211,892 ) (774,162 ) Other — — Total deferred tax liabilities (2,211,892 ) (774,162 ) Less: Valuation allowance (4,367,500 ) (1,202,494 ) Net deferred tax assets (liabilities) $ — $ — A valuation allowance has been established to offset deferred tax assets. The Company’s accumulated net operating losses were approximately $5.6 million at December 31, 2015 and begin to expire if not utilized beginning in the year 2032. |
SUPPLEMENTAL INFORMATION RELATI
SUPPLEMENTAL INFORMATION RELATING TO OIL AND GAS PRODUCING ACTIVITIES (UNAUDITED) | 12 Months Ended |
Dec. 31, 2015 | |
Oil and Gas Exploration and Production Industries Disclosures [Abstract] | |
SUPPLEMENTAL INFORMATION RELATING TO OIL AND GAS PRODUCING ACTIVITIES (UNAUDITED) | NOTE 12. SUPPLEMENTAL INFORMATION RELATING TO OIL AND GAS PRODUCING ACTIVITIES (UNAUDITED) Costs Incurred in Oil and Gas Property Acquisition, Exploration and Development. In 2014, the Company has incurred in a capital cost of $675,426 on Noack’s lease, drilling seven (7) wells and reworking an existing well. In 2015, the Company incurred a capital costs related to non-production related repairs of $65,450 on the Noack’s lease. In addition, they purchased ownership interests in the SUDS and TLSAU fields. Fiscal Fiscal Property acquisitions $ 916,777 $ — Unevaluated — — Evaluated — — Exploration — — Development — 675,426 Total Costs Incurred $ 916,777 $ 675,426 Capitalized costs. December 31, 2015 December 31, 2014 Capitalized costs Unevaluated properties $ — $ — Evaluated properties 4,733,853 3,715,779 4,733,853 3,715,779 Less: Accumulated DD&A (996,863 ) (251,185 ) Net capitalized costs $ 3,736,990 $ 3,464,594 Oil and Gas Reserve Information. Discounted future cash flow estimates like those shown below are not intended to represent estimates of the fair value of oil and gas properties. Estimates of fair value should also consider unproved reserves, anticipated future oil and gas prices, interest rates, changes in development and production costs and risks associated with future production. Because of these and other considerations, any estimate of fair value is subjective and imprecise. The following table sets forth estimates of the proved oil and gas reserves (net of royalty interests) for the Company and changes therein, for the periods indicated. Oil December 31, 2013 226,600 Revisions of prior estimates 83,396 Production (8,096 ) December 31, 2014 301,900 Revisions of prior estimates (99,207 ) Purchases of reserves in place 536,140 Production (4,313 ) December 31, 2015 734,520 December December Estimated Quantities of Proved Developed Reserves – Oil (Bbls) 287,780 79,100 Estimated Quantities of Proved Undeveloped Reserves – Oil (Bbls) 446,740 222,800 The net increase –after production of 5,663 bbls– of “Total Proved Reserves” in the amount of 438,283 bbls from December 31, 2014 to December 31, 2015 was primarily because the Company acquired reserves in TSLAU and SUDS fields. This was offset by a reduction in reserve estimates in the Noack field by 65,450 barrels of oil. This resulted in an overall increase of 438,283 barrels of oil of “net proved reserves”. The following table sets forth estimates of the proved developed and proved undeveloped oil and gas reserves (net of royalty interests) for the Company and changes therein, for the period indicates. Proved developed producing and non-producing reserves Oil (bbls) December 31, 2014 79,100 Acquired Reserves 274,140 Revision of prior estimates (59,797 ) Production (5,663 ) December 31, 2015 287,780 Proved undeveloped reserves Oil (bbls) December 31, 2014 222,800 Acquired Reserves 262,000 Revisions to prior estimates (38,060 ) December 31, 2015 446,740 The increases in Proved Undeveloped (PUD) reserves were all due to the SUDS and TLSAU acquisitions. Standardized Measure of Discounted Future Net Cash Flows. Standardized Measure of Oil and Gas The following table sets forth the changes in standardized measure of discounted future net cash flows relating to proved oil and gas reserves for the periods indicated. December 31, 2015 December 31, 2014 Future cash inflows $ 35,738,970 $ 27,417,550 Future production costs (17,472,870 ) (14,381,500 ) Future development costs (4,955,500 ) (2,507,000 ) Future income taxes — — Future net cash flows 13,310,600 10,529,050 Discount of future net cash flows at 10% per annum (7,090,100 ) (4,225,170 ) Standardized measure of discounted future net cash flows $ 6,220,500 $ 6,303,880 Changes in standardized measure of discounted future cash flows 12/31/15 12/31/14 Beginning of year $ 6,303,880 $ 7,966,550 Sales and transfers of oil & gas produced, net of production costs 40,633 (392,979 ) Net changes in prices and production costs (3,346,098 ) (1,454,390 Development costs incurred — 675,426 Changes in estimated future development costs 360,790 (1,896,600 ) Acquisitions of minerals in place, net of production costs 4,851,420 — Revision of previous estimates (1,477,073 ) 2,099,177 Change in discount 630,388 796,655 Change in production rate or other (1,143,449 ) (1,489,959 ) End of year $ 6,220,500 $ 6,303,880 |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 12 Months Ended |
Dec. 31, 2015 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | NOTE 13. SUBSEQUENT EVENTS 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 (1) million restricted common shares. Based on the current market value of the Rockdale stock at $0.05 per share, the aggregate value of the transaction is $50,000. As a result of the 2015 Annual Meeting of our Stockholders, Quinten Beasley was elected as a new director on the Board of Directors. At the same meeting, the shareholders approved moving the Company’s domicile Colorado to Texas And changing the Company’s name to “Petrolia Energy Corporation”. Additionally the shareholders voted to increase the total number of authorized shares of common stock to 150M shares and they ratified the 2015 Stock Incentive Plan. On May 2, 2016, the Company paid off their outstanding Promissory Note to 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 through the issuing of 1,468,750 shares of Company 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. On May 31, 2016, the Company issued 8 units or 800,000 shares to a private investor as part of the September 1, 2015 private offering. The shares were issued at a price of $0.06 cents per share and one warrant to purchase an additional 100,000 shares of common stock at a price of $0.12 cents per share at any time prior to August 5, 2018. This represented the final issuance under this offering. |
SUMMARY OF SIGNIFICANT ACCOUN20
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Dec. 31, 2015 | |
Summary Of Significant Accounting Policies Policies | |
Basis of Presentation | Basis of Presentation The accompanying financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) and pursuant to the accounting and disclosure rules and regulations of the U.S. Securities and Exchange Commission (“SEC”). A summary of the significant accounting policies applied in the preparation of the accompanying financial statements follows. |
Management Estimates | Management Estimates The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect 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. Significant estimates made in preparing these financial statements include asset retirement obligations(Note 8), income taxes (Note 9) and the estimate of proved oil and gas reserves and related present value estimates of future net cash flows therefrom (Note 10). |
Reclassification | Reclassifications |
Cash and Cash Equivalents | Cash and Cash Equivalents |
Oil and Gas Properties | Oil and Gas Properties The capitalized costs of oil and gas properties, excluding unevaluated and unproved properties, are amortized as depreciation, depletion and amortization expense using the units-of-production method based on estimated proved recoverable oil and gas reserves. The costs associated with unevaluated and unproved properties, initially excluded from the amortization base, relate to unproved leasehold acreage, wells and production facilities in progress and wells pending determination of the existence of proved reserves, together with capitalized interest costs for these projects. Unproved leasehold costs are transferred to the amortization base with the costs of drilling the related well once a determination of the existence of proved reserves has been made or upon impairment of a lease. Costs associated with wells in progress and completed wells that have yet to be evaluated are transferred to the amortization base once a determination is made whether or not proved reserves can be assigned to the property. Costs of dry wells are transferred to the amortization base immediately upon determination that the well is unsuccessful. All items classified as unproved property are assessed on a quarterly basis for possible impairment or reduction in value. Properties are assessed on an individual basis or as a group if properties are individually insignificant. The assessment includes consideration of various factors, including, but not limited to, the following: intent to drill; remaining lease term; geological and geophysical evaluations; drilling results and activity; assignment of proved reserves; and economic viability of development if proved reserves are assigned. During any period in which these factors indicate an impairment, the cumulative drilling costs incurred to date for such property and all or a portion of the associated leasehold costs are transferred to the full cost pool and become subject to amortization. Under full cost accounting rules for each cost center, capitalized costs of evaluated oil and gas properties, including asset retirement costs, less accumulated amortization and related deferred income taxes, may not exceed an amount (the “cost ceiling”) equal to the sum of (a) the present value of future net cash flows from estimated production of proved oil and gas reserves, based on current prices and operating conditions, discounted at ten percent (10%), plus (b) the cost of properties not being amortized, plus (c) the lower of cost or estimated fair value of any unproved properties included in the costs being amortized, less (d) any income tax effects related to differences between the book and tax basis of the properties involved. If capitalized costs exceed this limit, the excess is charged to operations. For purposes of the ceiling test calculation, current prices are defined as the unweighted arithmetic average of the first day of the month price for each month within the 12 month period prior to the end of the reporting period. Prices are adjusted for basis or location differentials. Unless sales contracts specify otherwise, prices are held constant for the productive life of each well. Similarly, current costs are assumed to remain constant over the entire calculation period. There was no impairment during the year ended December 31, 2014. In 2015, there was an impairment of $668,073 which was primarily due to the decrease in oil prices during the year. Given the volatility of oil and gas prices, it is reasonably possible that the estimate of discounted future net cash flows from proved oil and gas reserves could change in the near term. If oil and gas prices decline in the future, even if only for a short period of time, it is possible that impairments of oil and gas properties could occur. In addition, it is reasonably possible that impairments could occur if costs are incurred in excess of any increases in the present value of future net cash flows from proved oil and gas reserves, or if properties are sold for proceeds less than the discounted present value of the related proved oil and gas reserves. |
Revenue Recognition | Revenue Recognition |
Receivables and allowance for doubtful accounts | Receivables and allowance for doubtful accounts |
Asset Retirement Obligations | Asset Retirement Obligations Inherent in the fair value calculation of an ARO are numerous assumptions and judgments including the ultimate settlement amounts, inflation factors, credit adjusted discount rates, timing of settlement, and changes in the legal, regulatory, environmental and political environments. To the extent future revisions to these assumptions impact the fair value of the existing ARO liability, a corresponding adjustment is made to the oil and gas property balance. Settlements greater than or less than amounts accrued as ARO are recorded as a gain or loss upon settlement. |
Debt Issuance Costs | Debt Issuance Costs |
Stock-Based Compensation | Stock-Based Compensation The Company accounts for stock-based compensation to employees in accordance with FASB ASC 718. Stock-based compensation to employees is measured at the grant date, based on the fair value of the award, and is recognized as expense over the requisite employee service period. The Company accounts for stock-based compensation to other than employees in accordance with FASB ASC 505-50. Equity instruments issued to other than employees are valued at the earlier of a commitment date or upon completion of the services, based on the fair value of the equity instruments, and is recognized as expense over the service period. The Company estimates the fair value of stock-based payments using the Black-Scholes option-pricing model for common stock options and warrants and the closing price of the CompanyÂ’s common stock for common share issuances. The Company may grant stock to employees and contractors in exchange for services rendered. |
Income Taxes | Income Taxes Income Taxes, Uncertain tax positions are recognized in the financial statements only if that position is more likely than not of being sustained upon examination by taxing authorities, based on the technical merits of the position. The Company recognizes interest and penalties related to uncertain tax positions in the income tax provision. There are currently no unrecognized tax benefits that if recognized would affect the tax rate. There was no interest or penalties recognized for the twelve months ended December 31, 2015. The Company is required to file federal income tax returns in the United States and in various state and local jurisdictions. The CompanyÂ’s tax returns filed since the 2010 tax year are subject to examination by taxing authorities in the jurisdictions in which it operates in accordance with the normal statutes of limitations in the applicable jurisdiction. |
Furniture, equipment, and software | Furniture, equipment, and software |
Earnings (Loss) Per Share | Earnings (Loss) Per Share |
Concentration of Credit Risk | Concentration of Credit Risk At times, the Company maintains deposits in federally insured financial institutions in excess of federally insured limits. Management monitors the credit ratings and concentration of risk with these financial institutions on a continuing basis to safeguard cash deposits. |
Fair Value Measurements | Fair Value Measurements |
Recent Accounting Pronouncements | 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. |
NOTES PAYABLE (Tables)
NOTES PAYABLE (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Notes Payable [Abstract] | |
Schedule of future maturities of notes payable | As of December 31, 2015, future maturities on our notes payable, which include the $550,000 convertible notes payable-related party, $146,875 Promissory Note, $46,000 Related Party Notes and the $26,225 remaining balance of the installment note described above, were as follows: Fiscal year ending: 2016 $ 762,448 2017 $ 6,652 Total $ 769,100 |
EQUITY (Tables)
EQUITY (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Stockholders' Equity Note [Abstract] | |
Schedule of information about common stock warrants issued and outstanding | Summary information regarding common stock warrants issued and outstanding as of December 31, 2015, is as follows: Warrants Weighted Average Exercise Price Aggregate intrinsic value Weighted average remaining contractual life (years) Outstanding at year ended December 31, 2013 1,570,000 $ 0.80 $ — 8.6 Granted 2,608,445 0.75 — 4.5 Exercised — — — Expired (8,334 ) — — Outstanding at year ended December 31, 2014 4,170,111 0.77 — 6.1 Granted 7,740,000 0.10 — 2.6 Exercised — — — Expired — — — Outstanding at year ended December 31, 2015 11,910,111 $ 0.33 $ — 3.5 |
ASSET RETIREMENT OBLIGATIONS (T
ASSET RETIREMENT OBLIGATIONS (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Asset Retirement Obligation Disclosure [Abstract] | |
Schedule of fair value of asset retirement obligation | For the purpose of determining the fair value of ARO incurred during the calendar years presented, the Company used the following assumptions: December Inflation rate (avg.) 1.6 % Estimated asset life 16 years |
Schedule of asset Retirement obligations | The following table shows the change in the Company’s ARO for 2015 and 2014: Asset retirement obligations at December 31, 2013 $ 12,804 Obligations assumed in acquisition — Additional retirement obligations incurred 19,418 Change in estimate 66,081 Accretion expense 1,872 Settlements — Asset retirement obligations at December 31, 2014 $ 100,175 Obligations assumed in acquisition 26,201 Additional retirement obligations incurred Change in estimate 75,096 Accretion expense 11,856 Settlements — Asset retirement obligations at December 31, 2015 $ 213,328 |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |
Schedule of effective income tax rate reconciliation | The provision for income taxes differs from the amount computed by applying the federal statutory income tax rate (35%) on operations due primarily to permanent differences attributable to organizational expenses. Fiscal Year Fiscal Year Income tax expense computed at statutory rates $ (649,815 ) $ (603,209 ) Non-deductible items 66,313 468,253 Change in valuation allowance 583,502 134,956 Total $ — $ — |
Schedule of deferred tax assets and liabilities | The components of the net deferred tax asset were as follows: December 31, 2014 Gross Values Tax Effect Deferred tax assets Book Impairment $ — $ — Net operating loss carryforwards 4,235,227 1,482,329 Asset retirement obligation — — Other — — Total deferred tax assets 4,235,227 1,482,329 Deferred tax liabilities O&G Properties (1,631,976 ) (571,192 ) Other — — Total deferred tax liabilities (1,631,976 ) (571,192 ) Less: Valuation allowance (2,603,251 ) (911,137 ) Net deferred tax assets (liabilities) $ — $ — December 31, 2015 Gross Values Tax Effect Deferred tax assets Book Impairment $ 668,073 $ 233,826 Net operating loss carryforwards 5,911,319 1,742,830 Asset retirement obligation — — Other — — Total deferred tax assets 6,579,392 1,976,656 Deferred tax liabilities O&G Properties (2,211,892 ) (774,162 ) Other — — Total deferred tax liabilities (2,211,892 ) (774,162 ) Less: Valuation allowance (4,367,500 ) (1,202,494 ) Net deferred tax assets (liabilities) $ — $ — |
SUPPLEMENTAL INFORMATION RELA25
SUPPLEMENTAL INFORMATION RELATING TO OIL AND GAS PRODUCING ACTIVITIES (UNAUDITED) (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Oil and Gas Exploration and Production Industries Disclosures [Abstract] | |
Schedule of cost incurred in acqusitions | In addition, they purchased ownership interests in the SUDS and TLSAU fields. Fiscal Fiscal Property acquisitions $ 916,777 $ — Unevaluated — — Evaluated — — Exploration — — Development — 675,426 Total Costs Incurred $ 916,777 $ 675,426 |
Schedule of capitalized costs relating to oil and gas producing activities | Capitalized costs for unproved properties include costs for acquiring oil and gas leaseholds and geological and geophysical expenses where no proved reserves have been identified. December 31, 2015 December 31, 2014 Capitalized costs Unevaluated properties $ — $ — Evaluated properties 4,733,853 3,715,779 4,733,853 3,715,779 Less: Accumulated DD&A (996,863 ) (251,185 ) Net capitalized costs $ 3,736,990 $ 3,464,594 |
Schedule of estimates of proved oil and gas reserves | The following table sets forth estimates of the proved oil and gas reserves (net of royalty interests) for the Company and changes therein, for the periods indicated. Oil December 31, 2013 226,600 Revisions of prior estimates 83,396 Production (8,096 ) December 31, 2014 301,900 Revisions of prior estimates (99,207 ) Purchases of reserves in place 536,140 Production (4,313 ) December 31, 2015 734,520 December December Estimated Quantities of Proved Developed Reserves – Oil (Bbls) 287,780 79,100 Estimated Quantities of Proved Undeveloped Reserves – Oil (Bbls) 446,740 222,800 |
Schedule of proved developed and undeveloped oil and gas reserves | The following table sets forth estimates of the proved developed and proved undeveloped oil and gas reserves (net of royalty interests) for the Company and changes therein, for the period indicates. Proved developed producing and non-producing reserves Oil (bbls) December 31, 2014 79,100 Acquired Reserves 274,140 Revision of prior estimates (59,797 ) Production (5,663 ) December 31, 2015 287,780 Proved undeveloped reserves Oil (bbls) December 31, 2014 222,800 Acquired Reserves 262,000 Revisions to prior estimates (38,060 ) December 31, 2015 446,740 |
Schedule of changes in standardized measure of discounted future net cash flows | The following table sets forth the changes in standardized measure of discounted future net cash flows relating to proved oil and gas reserves for the periods indicated. December 31, 2015 December 31, 2014 Future cash inflows $ 35,738,970 $ 27,417,550 Future production costs (17,472,870 ) (14,381,500 ) Future development costs (4,955,500 ) (2,507,000 ) Future income taxes — — Future net cash flows 13,310,600 10,529,050 Discount of future net cash flows at 10% per annum (7,090,100 ) (4,225,170 ) Standardized measure of discounted future net cash flows $ 6,220,500 $ 6,303,880 Changes in standardized measure of discounted future cash flows 12/31/15 12/31/14 Beginning of year $ 6,303,880 $ 7,966,550 Sales and transfers of oil & gas produced, net of production costs 40,633 (392,979 ) Net changes in prices and production costs (3,346,098 ) (1,454,390 Development costs incurred — 675,426 Changes in estimated future development costs 360,790 (1,896,600 ) Acquisitions of minerals in place, net of production costs 4,851,420 — Revision of previous estimates (1,477,073 ) 2,099,177 Change in discount 630,388 796,655 Change in production rate or other (1,143,449 ) (1,489,959 ) End of year $ 6,220,500 $ 6,303,880 |
SUMMARY OF SIGNIFICANT ACCOUN26
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Narrative) - USD ($) | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Discount rate | 10.00% | |
Impairment of oil and gas properties | $ 668,073 | |
Weighted average number of common stock outstanding | 24,875,600 | 18,070,038 |
Furniture Equipment And Software[Member] | Minimum [Member] | ||
Useful life | 3 years | |
Furniture Equipment And Software[Member] | Maximum [Member] | ||
Useful life | 5 years |
NOTE RECEIVABLE (Details Narrat
NOTE RECEIVABLE (Details Narrative) - USD ($) | Nov. 04, 2015 | Dec. 31, 2015 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Value of shares issued for note receivable | $ 316,800 | |
Market price (in dollar per share) | $ 0.06 | |
10% Note Receivable [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Receivable face amount | $ 1,300,000 | |
Market price (in dollar per share) | $ 0.528 | |
Blue Sky New Mexico, Inc [Member] | 10% Note Receivable [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Receivable face amount | $ 1,300,000 | |
Number of shares issued for note receivable (in shares) | 6,000,000 | |
Value of shares issued for note receivable | $ 316,800 | |
Market price (in dollar per share) | $ 0.528 | |
Description of notes receivable collateral | Note is secured by mortgages on the Twin Lakes oil and gas leases. |
RELATED PARTY (Details Narrativ
RELATED PARTY (Details Narrative) | Nov. 04, 2015USD ($)$ / shares$ / bblshares | Dec. 31, 2015USD ($)$ / sharesshares | Apr. 30, 2013 |
Related Party Transaction [Line Items] | |||
Shareholder advances | $ 134,000 | ||
Advance repaid in cash | $ 8,000 | ||
Share price (in dollars per share) | $ / shares | $ 0.06 | ||
Note payable-related party | $ 192,875 | ||
Number of shares issued upon conversion of warrants | shares | 1,600,000 | ||
Repaid through issuance of the equity | $ 130,000 | ||
Loss on conversion of debt | (109,879) | ||
Percentage of working interest | 100.00% | ||
Price paid for acquisition | 719,903 | ||
Total purchase price for net working interest and equipment rights | 196,875 | ||
Value for number of shares | 316,800 | ||
10% Note Receivable [Member] | |||
Related Party Transaction [Line Items] | |||
Share price (in dollars per share) | $ / shares | $ 0.528 | ||
Receivable face amount | $ 1,300,000 | ||
Twin Lakes San Andres Unit [Member] | |||
Related Party Transaction [Line Items] | |||
Shareholder advances | 134,000 | ||
Non cash payment in stock | 50,000 | ||
Shareholder advances outstanding | $ 46,000 | ||
Receivable face amount | $ 146,875 | ||
Percentage of working interest | 15.00% | ||
Purchase price in dollar per barrel | $ / bbl | 0.52 | ||
Total purchase price for net working interest and equipment rights | $ 196,875 | ||
SUDS Properties, LLC [Member] | |||
Related Party Transaction [Line Items] | |||
Share price (in dollars per share) | $ / shares | $ 0.068 | ||
Price paid for acquisition | $ 719,903 | ||
Purchase price in dollar per barrel | $ / bbl | 4.77 | ||
Number of shares for consideration of note | shares | 6,000,000 | ||
Value for number of shares | $ 316,800 | ||
SUDS Properties, LLC [Member] | Restricted Stock [Member] | |||
Related Party Transaction [Line Items] | |||
Number of shares issued upon conversion of debt | shares | 10,586,805 | ||
Percentage of working interest | 10.00% |
NOTES PAYABLE (Details Narrativ
NOTES PAYABLE (Details Narrative) - USD ($) | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 17, 2013 | Apr. 30, 2013 | Dec. 31, 2015 | Dec. 31, 2014 |
Number of common shares issued | 500,000 | |||||
Discount rate | 10.00% | |||||
Amortization of debt discount | $ 152,980 | $ 86,124 | ||||
Unamortized discount | 171,573 | $ 324,533 | ||||
All Convertible Secured Note and Warrant Purchase Agreement [Member] | Mr. Rick Wilber [Member] | Convertible Secured Promissory Note Due On June 17, 2016 [Member] | ||||||
Convertible debt - related party, gross | 550,000 | |||||
Convertible debt - related party, net of discount | 378,427 | |||||
Unamortized discount | 171,573 | |||||
Convertible Secured Note and Warrant Purchase Agreement (the "Purchase Agreement") [Member] | Mr. Rick Wilber [Member] | Warrant [Member] | ||||||
Number of common shares issued | 1,000,000 | |||||
Warrant exercise price (in dollars per share) | $ 0.80 | |||||
Warrant term | 10 years | |||||
Warrant fair value | $ 148,925 | |||||
Discount rate | 2.19% | |||||
Expected life | 10 years | |||||
Expected volatility | 196.00% | |||||
Expected dividends | 0.00% | |||||
Convertible Secured Note and Warrant Purchase Agreement (the "Purchase Agreement") [Member] | Mr. Rick Wilber [Member] | Convertible Secured Promissory Note Due On June 17, 2016 [Member] | ||||||
Aggregate consideration of promissory note | $ 350,000 | |||||
Principal amount | $ 350,000 | |||||
Conversion price (in dollars per share) | $ 0.30 | |||||
Debt instrument beneficial conversion | $ 102,259 | |||||
Debt instrument effective interest rate | 53.70% | |||||
Convertible debt - related party, gross | $ 350,000 | |||||
Maturity date | Jun. 17, 2016 | |||||
Extended maturity date | Dec. 31, 2016 | |||||
Convertible Secured Note and Warrant Purchase Agreement (the "September Purchase Agreement") [Member] | Mr. Rick Wilber [Member] | Warrant [Member] | ||||||
Number of common shares issued | 285,000 | |||||
Warrant exercise price (in dollars per share) | $ 0.80 | |||||
Warrant term | 10 years | |||||
Warrant fair value | $ 46,022 | |||||
Discount rate | 2.64% | |||||
Expected life | 10 years | |||||
Expected volatility | 196.30% | |||||
Expected dividends | 0.00% | |||||
Convertible Secured Note and Warrant Purchase Agreement (the "September Purchase Agreement") [Member] | Mr. Rick Wilber [Member] | Convertible Secured Promissory Note Due On June 17, 2016 [Member] | ||||||
Aggregate consideration of promissory note | $ 100,000 | |||||
Principal amount | $ 100,000 | |||||
Conversion price (in dollars per share) | $ 0.30 | |||||
Debt instrument beneficial conversion | $ 46,022 | |||||
Debt instrument effective interest rate | 119.70% | |||||
Convertible debt - related party, gross | $ 100,000 | |||||
Maturity date | Sep. 30, 2016 | |||||
Extended maturity date | Dec. 31, 2016 | |||||
Convertible Secured Note and Warrant Purchase Agreement (the "December Purchase Agreement") [Member] | Mr. Rick Wilber [Member] | Warrant [Member] | ||||||
Number of common shares issued | 285,000 | |||||
Warrant exercise price (in dollars per share) | $ 0.80 | |||||
Warrant term | 10 years | |||||
Warrant fair value | $ 49,873 | |||||
Discount rate | 2.64% | |||||
Expected life | 10 years | |||||
Expected volatility | 195.80% | |||||
Expected dividends | 0.00% | |||||
Convertible Secured Note and Warrant Purchase Agreement (the "December Purchase Agreement") [Member] | Mr. Rick Wilber [Member] | Convertible Secured Promissory Note Due On June 17, 2016 [Member] | ||||||
Aggregate consideration of promissory note | $ 100,000 | |||||
Principal amount | $ 100,000 | |||||
Conversion price (in dollars per share) | $ 0.30 | |||||
Debt instrument beneficial conversion | $ 50,127 | |||||
Debt instrument effective interest rate | 132.20% | |||||
Convertible debt - related party, gross | $ 100,000 | |||||
Maturity date | Sep. 30, 2016 | |||||
Extended maturity date | Dec. 31, 2016 |
NOTES PAYABLE (Details Narrat30
NOTES PAYABLE (Details Narrative 1) - USD ($) | May 02, 2016 | Nov. 04, 2015 | May 08, 2014 | Apr. 30, 2013 | Dec. 31, 2015 | Dec. 31, 2014 |
Number of common shares issued | 500,000 | |||||
Share price (in dollars per share) | $ 0.06 | |||||
Value of additional shares issued | $ 302,000 | |||||
Installment notes payable, curent | 21,144 | $ 18,877 | ||||
Installment note payable, noncurrent | $ 6,652 | $ 26,362 | ||||
Twin Lakes San Andres Unit [Member] | Subsequent Event [Member] | ||||||
Number of common shares issued | 1,468,750 | |||||
Blue Sky New Mexico, Inc [Member] | Subsequent Event [Member] | ||||||
Share price (in dollars per share) | $ 0.10 | |||||
Blue Sky New Mexico, Inc [Member] | Restricted Stock [Member] | ||||||
Number of common shares issued | 500,000 | |||||
Promissory Note - Non Convertible [Member] | Subsequent Event [Member] | ||||||
Number of common shares issued | 500,000 | |||||
Share price (in dollars per share) | $ 0.75 | |||||
Value of additional shares issued | $ 37,500 | |||||
Promissory Note - Non Convertible [Member] | Twin Lakes San Andres Unit [Member] | ||||||
Debt instrument, face amount | $ 146,875 | |||||
Maturity date | Dec. 31, 2015 | |||||
Interest rate | 10.00% | |||||
Description of collateral | The repayment of the note is secured by 1,000,000 shares of restricted stock of the Company. | |||||
Number of restricted shares for collateral | 1,000,000 | |||||
Notes payable outstanding | $ 146,875 | |||||
Installment Notes Payable [Memer] | CNH Industrial Capital [Member] | ||||||
Debt instrument, face amount | $ 57,613 | |||||
Interest rate | 2.90% | |||||
Debt instrument term | 3 years | |||||
Principal payment | 19,015 | |||||
Notes payable outstanding | 26,225 | |||||
Installment notes payable, curent | 19,573 | |||||
Installment note payable, noncurrent | $ 6,652 |
NOTES PAYABLE (Details Narrat31
NOTES PAYABLE (Details Narrative 2) | Dec. 31, 2015USD ($) |
Twin Lakes San Andres Unit [Member] | |
Shareholder advances outstanding | $ 46,000 |
Promissory Note - Non Convertible [Member] | Twin Lakes San Andres Unit [Member] | |
Notes payable outstanding | 146,875 |
Installment Notes Payable [Memer] | CNH Industrial Capital [Member] | |
Notes payable outstanding | 26,225 |
All Convertible Secured Note and Warrant Purchase Agreement [Member] | Mr. Rick Wilber [Member] | Convertible Secured Promissory Note Due On June 17, 2016 [Member] | |
Convertible debt - related party, gross | $ 550,000 |
NOTES PAYABLE (Details)
NOTES PAYABLE (Details) | Dec. 31, 2015USD ($) |
Fiscal year ending: | |
2,016 | $ 762,448 |
2,017 | 6,652 |
Total | $ 769,100 |
EQUITY (Details Narrative)
EQUITY (Details Narrative) - USD ($) | Jun. 11, 2015 | May 01, 2015 | May 01, 2015 | Dec. 15, 2014 | Jun. 02, 2014 | Jun. 01, 2014 | May 28, 2014 | Jan. 27, 2014 | Oct. 31, 2014 | Aug. 31, 2014 | Apr. 30, 2013 | Mar. 31, 2015 | Jun. 30, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Sep. 24, 2015 | Sep. 23, 2015 | Feb. 28, 2015 | Sep. 30, 2014 |
Class of Stock [Line Items] | |||||||||||||||||||
Preferred stock, authorized | 1,000,000 | 1,000,000 | |||||||||||||||||
Number of shares issued | 500,000 | ||||||||||||||||||
Share price (in dollars per share) | $ 0.06 | ||||||||||||||||||
General and administrative expense | $ 706,456 | $ 1,756,668 | |||||||||||||||||
Value of shares issued for services | 53,278 | ||||||||||||||||||
Stock based compensation | $ 185,395 | $ 700,303 | |||||||||||||||||
Employment Agreement [Member] | |||||||||||||||||||
Class of Stock [Line Items] | |||||||||||||||||||
Grant date fair value (in dollars per share) | $ 0.0038 | ||||||||||||||||||
Leo Womack [Member] | |||||||||||||||||||
Class of Stock [Line Items] | |||||||||||||||||||
Number of shares issued | 166,667 | ||||||||||||||||||
Share price (in dollars per share) | $ 0.06 | ||||||||||||||||||
Number of shares issued for services | 100,000 | ||||||||||||||||||
Value of shares issued for services | $ 23,000 | ||||||||||||||||||
Mr. David N. Baker [Member] | |||||||||||||||||||
Class of Stock [Line Items] | |||||||||||||||||||
Number of shares issued | 416,675 | ||||||||||||||||||
Number of shares returned | 400,000 | ||||||||||||||||||
Stock based compensation | $ 33,778 | ||||||||||||||||||
Mr. David N. Baker [Member] | Employment Agreement [Member] | |||||||||||||||||||
Class of Stock [Line Items] | |||||||||||||||||||
Number of shares forfeited monthly | 44,445 | ||||||||||||||||||
Agreement term (in years) | 18 months | ||||||||||||||||||
Expenses relating to granted shares | $ 118,225 | ||||||||||||||||||
Mr. David N. Baker [Member] | Consulting Agreement [Member] | |||||||||||||||||||
Class of Stock [Line Items] | |||||||||||||||||||
Number of shares granted | 800,000 | ||||||||||||||||||
General and administrative expense | $ 380,000 | ||||||||||||||||||
Lee H. Lytton [Member] | |||||||||||||||||||
Class of Stock [Line Items] | |||||||||||||||||||
Number of shares issued | 33,400 | ||||||||||||||||||
Share price (in dollars per share) | 0.06 | ||||||||||||||||||
Number of shares granted | 100,000 | ||||||||||||||||||
Grant date fair value (in dollars per share) | $ 0.12 | ||||||||||||||||||
Analyst [Member] | |||||||||||||||||||
Class of Stock [Line Items] | |||||||||||||||||||
Number of shares issued | 50,000 | ||||||||||||||||||
General and administrative expense | $ 19,000 | ||||||||||||||||||
Term of service provided | 1 year | ||||||||||||||||||
Mr. Marc Spezialy [Member] | |||||||||||||||||||
Class of Stock [Line Items] | |||||||||||||||||||
Number of shares returned | 1,000,000 | ||||||||||||||||||
Joel Oppenheim [Member] | |||||||||||||||||||
Class of Stock [Line Items] | |||||||||||||||||||
Share price (in dollars per share) | $ 0.06 | ||||||||||||||||||
Individual [Member] | |||||||||||||||||||
Class of Stock [Line Items] | |||||||||||||||||||
Number of shares issued for services | 100,000 | ||||||||||||||||||
Grant date fair value (in dollars per share) | $ 0.13 | ||||||||||||||||||
Warrant [Member] | |||||||||||||||||||
Class of Stock [Line Items] | |||||||||||||||||||
Share price (in dollars per share) | $ 0.75 | ||||||||||||||||||
Description of share purchased | O ne-for-one. | ||||||||||||||||||
Warrant [Member] | Financing Services Agreement [Member] | |||||||||||||||||||
Class of Stock [Line Items] | |||||||||||||||||||
Number of shares issued | 8,334 | ||||||||||||||||||
Warrant price (in dollars per share) | $ 0.33 | ||||||||||||||||||
Restricted Stock [Member] | Mr. David N. Baker [Member] | |||||||||||||||||||
Class of Stock [Line Items] | |||||||||||||||||||
Number of shares granted | 488,895 | ||||||||||||||||||
Number of shares cancelled | 400,000 | ||||||||||||||||||
Restricted Stock [Member] | Mr. David N. Baker [Member] | Employment Agreement [Member] | |||||||||||||||||||
Class of Stock [Line Items] | |||||||||||||||||||
Number of shares issued for services | 800,000 | ||||||||||||||||||
Number of additional shares issued for services | 100,000 | ||||||||||||||||||
Restricted Stock [Member] | Mr. Marc Spezialy [Member] | Employment Agreement [Member] | |||||||||||||||||||
Class of Stock [Line Items] | |||||||||||||||||||
Number of shares issued for services | 1,000,000 | ||||||||||||||||||
Number of additional shares issued for services | 100,000 | ||||||||||||||||||
Restricted Stock [Member] | Joel Oppenheim [Member] | |||||||||||||||||||
Class of Stock [Line Items] | |||||||||||||||||||
Share price (in dollars per share) | $ 0.0011 | ||||||||||||||||||
Number of shares issued for services | 100,000 | ||||||||||||||||||
Restricted Stock [Member] | Joel Oppenheim [Member] | Employment Agreement [Member] | |||||||||||||||||||
Class of Stock [Line Items] | |||||||||||||||||||
Number of shares issued for services | 100,000 | ||||||||||||||||||
Number of additional shares issued for services | 100,000 | ||||||||||||||||||
Private Placement Dated May 1, 2015 [Member] | |||||||||||||||||||
Class of Stock [Line Items] | |||||||||||||||||||
Number of shares issued | 1,400,000 | ||||||||||||||||||
Number of units subscribed | 14 | ||||||||||||||||||
Private Placement Dated May 1, 2015 [Member] | Convertible Debt [Member] | |||||||||||||||||||
Class of Stock [Line Items] | |||||||||||||||||||
Number of shares issued | 800,000 | ||||||||||||||||||
Number of units subscribed | 8 | ||||||||||||||||||
Number of shares issued on conversion | 800,000 | ||||||||||||||||||
Advances from affiliates | $ 80,000 | ||||||||||||||||||
Loss on stock conversion | $ 90,800 | ||||||||||||||||||
Private Placement Dated May 1, 2015 [Member] | Lee H. Lytton [Member] | Convertible Debt [Member] | |||||||||||||||||||
Class of Stock [Line Items] | |||||||||||||||||||
Number of shares issued | 300,000 | ||||||||||||||||||
Private Placement Dated May 1, 2015 [Member] | Mr. Joel Oppenheim [Member] | |||||||||||||||||||
Class of Stock [Line Items] | |||||||||||||||||||
Number of shares issued | 100,000 | ||||||||||||||||||
Private Placement Dated May 1, 2015 [Member] | Mr. Joel Oppenheim [Member] | Convertible Debt [Member] | |||||||||||||||||||
Class of Stock [Line Items] | |||||||||||||||||||
Number of shares issued | 200,000 | ||||||||||||||||||
Private Placement Dated May 1, 2015 [Member] | Leo B. Womack Family Trust [Member] | Convertible Debt [Member] | |||||||||||||||||||
Class of Stock [Line Items] | |||||||||||||||||||
Number of shares issued | 300,000 | ||||||||||||||||||
Private Placement Dated May 1, 2015 [Member] | Warrant [Member] | Convertible Debt [Member] | |||||||||||||||||||
Class of Stock [Line Items] | |||||||||||||||||||
Number of shares issued | 800,000 | ||||||||||||||||||
Private Placement Dated May 1, 2015 [Member] | Warrant [Member] | Lee H. Lytton [Member] | Convertible Debt [Member] | |||||||||||||||||||
Class of Stock [Line Items] | |||||||||||||||||||
Number of shares issued | 300,000 | ||||||||||||||||||
Private Placement Dated May 1, 2015 [Member] | Warrant [Member] | Mr. Joel Oppenheim [Member] | Convertible Debt [Member] | |||||||||||||||||||
Class of Stock [Line Items] | |||||||||||||||||||
Number of shares issued | 200,000 | ||||||||||||||||||
Private Placement Dated May 1, 2015 [Member] | Warrant [Member] | Leo B. Womack Family Trust [Member] | Convertible Debt [Member] | |||||||||||||||||||
Class of Stock [Line Items] | |||||||||||||||||||
Number of shares issued | 300,000 | ||||||||||||||||||
Investor [Member] | Private Placement Dated May 1, 2015 [Member] | |||||||||||||||||||
Class of Stock [Line Items] | |||||||||||||||||||
Number of shares issued | 100,000 | ||||||||||||||||||
Share price (in dollars per share) | $ 0.001 | $ 0.001 | |||||||||||||||||
Investor [Member] | Private Placement Dated May 1, 2015 [Member] | Warrant [Member] | |||||||||||||||||||
Class of Stock [Line Items] | |||||||||||||||||||
Number of shares issued | 100,000 | ||||||||||||||||||
Share price (in dollars per share) | $ 0.0012 | $ 0.0012 | |||||||||||||||||
Investor [Member] | Private Placement [Member] | |||||||||||||||||||
Class of Stock [Line Items] | |||||||||||||||||||
Number of shares issued | 2,600,111 | ||||||||||||||||||
Share price (in dollars per share) | $ 0.30 | ||||||||||||||||||
ViewTrade Securities Corporation [Member] | Financing Services Agreement [Member] | |||||||||||||||||||
Class of Stock [Line Items] | |||||||||||||||||||
Description of payment for services | The Company will pay a commission in an amount equal to 10% of the gross proceeds received from any purchaser of Units directly introduced to the Company by ViewTrade, together with a five-year warrant to purchase up to 10% of the Securities sold by ViewTrade at an exercise price of 110% of the Offering Price. | ||||||||||||||||||
Commission expense | $ 2,500 | ||||||||||||||||||
Jovian Petroleum Corporation [Member] | Private Placement Dated May 1, 2015 [Member] | Contract Operator [Member] | |||||||||||||||||||
Class of Stock [Line Items] | |||||||||||||||||||
Number of shares issued | 100,000 |
EQUITY (Details Narrative 1)
EQUITY (Details Narrative 1) - USD ($) | Sep. 23, 2015 | Sep. 01, 2015 | Jun. 11, 2015 | Jun. 01, 2014 | Aug. 31, 2014 | Apr. 30, 2013 | Dec. 31, 2015 | Dec. 31, 2014 | Sep. 24, 2015 |
Class of Stock [Line Items] | |||||||||
Share price (in dollars per share) | $ 0.06 | ||||||||
Number of shares issued | 500,000 | ||||||||
Value of stock issued | $ 302,000 | ||||||||
Fair value of options granted | $ 129,216 | 59,500 | |||||||
Expenses of award | $ 8,500 | ||||||||
2015 Stock Incentive Plan [Member] | |||||||||
Class of Stock [Line Items] | |||||||||
Maximum aggregate number of shares | 4,000,000 | ||||||||
Private Placement Dated September 1, 2015 [Member] | |||||||||
Class of Stock [Line Items] | |||||||||
Number of shares issued | 2,700,000 | ||||||||
Number of units subscribed | 27 | ||||||||
Private Placement Dated September 1, 2015 [Member] | Convertible Debt [Member] | |||||||||
Class of Stock [Line Items] | |||||||||
Number of units subscribed | 8 | ||||||||
Number of shares issued on conversion | 800,000 | ||||||||
Loss on stock conversion | $ 19,079 | ||||||||
Private Placement Dated September 1, 2015 [Member] | Joel Oppenheim [Member] | |||||||||
Class of Stock [Line Items] | |||||||||
Number of shares issued | 200,000 | ||||||||
Private Placement Dated September 1, 2015 [Member] | Lee H. Lytton [Member] | |||||||||
Class of Stock [Line Items] | |||||||||
Number of shares issued | 200,000 | ||||||||
Investor [Member] | Private Placement Dated September 1, 2015 [Member] | |||||||||
Class of Stock [Line Items] | |||||||||
Share price (in dollars per share) | $ 0.0006 | ||||||||
Number of shares issued | 100,000 | ||||||||
Warrant [Member] | |||||||||
Class of Stock [Line Items] | |||||||||
Share price (in dollars per share) | $ 0.75 | ||||||||
Warrant [Member] | Gross Salary Deferral [Member] | |||||||||
Class of Stock [Line Items] | |||||||||
Number of shares issued | 40,000 | ||||||||
Warrant [Member] | Investor [Member] | Private Placement Dated September 1, 2015 [Member] | |||||||||
Class of Stock [Line Items] | |||||||||
Share price (in dollars per share) | $ 0.001 | ||||||||
Number of shares issued for warrant | 100,000 | ||||||||
Joel Oppenheim [Member] | |||||||||
Class of Stock [Line Items] | |||||||||
Share price (in dollars per share) | $ 0.06 | ||||||||
Number of option shares | 500,000 | ||||||||
Vesting period | Jan. 1, 2016 | ||||||||
Exercisable term | 36 months | ||||||||
Joel Oppenheim [Member] | Restricted Stock [Member] | |||||||||
Class of Stock [Line Items] | |||||||||
Number of shares issued for services | 100,000 | ||||||||
Share price (in dollars per share) | $ 0.0011 | ||||||||
Joel Oppenheim [Member] | Restricted Stock [Member] | Employment Agreement [Member] | |||||||||
Class of Stock [Line Items] | |||||||||
Number of shares issued for services | 100,000 | ||||||||
Zel Khan [Member] | Private Placement Dated September 1, 2015 [Member] | Convertible Debt [Member] | |||||||||
Class of Stock [Line Items] | |||||||||
Number of shares issued | 800,000 | ||||||||
Value of stock issued | $ 48,000 | ||||||||
Zel Khan [Member] | Restricted Stock [Member] | Employment Agreement [Member] | |||||||||
Class of Stock [Line Items] | |||||||||
Number of shares issued | 1,000,000 | ||||||||
Fair value of options granted | $ 68,000 | ||||||||
Zel Khan [Member] | Warrant [Member] | |||||||||
Class of Stock [Line Items] | |||||||||
Warrant price (in dollars per share) | $ 0.002 | ||||||||
Warrant term | 36 months | ||||||||
Zel Khan [Member] | Warrant [Member] | Private Placement Dated September 1, 2015 [Member] | Convertible Debt [Member] | |||||||||
Class of Stock [Line Items] | |||||||||
Number of shares issued | 800,000 | ||||||||
Value of stock issued | $ 21,107 | ||||||||
Leo Womack [Member] | |||||||||
Class of Stock [Line Items] | |||||||||
Number of shares issued for services | 100,000 | ||||||||
Share price (in dollars per share) | $ 0.06 | ||||||||
Number of shares issued | 166,667 | ||||||||
Number of option shares | 1,000,000 | ||||||||
Lee H. Lytton [Member] | |||||||||
Class of Stock [Line Items] | |||||||||
Share price (in dollars per share) | $ 0.06 | ||||||||
Number of shares issued | 33,400 | ||||||||
Number of option shares | 500,000 | ||||||||
Vesting period | Jan. 1, 2016 | ||||||||
Exercisable term | 36 months |
EQUITY (Details)
EQUITY (Details) - Warrant [Member] - $ / shares | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | ||
Outstanding at beginning | 4,170,111 | 1,570,000 |
Granted | 7,740,000 | 2,608,445 |
Expired | (8,334) | |
Outstanding at ending | 11,910,111 | 4,170,111 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted-Average Exercise Price [Roll Forward] | ||
Outstanding at beginning | $ 0.77 | $ 0.80 |
Granted | 0.10 | 0.75 |
Outstanding at ending | $ 0.33 | $ 0.77 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Additional Disclosures [Roll Forward] | ||
Outstanding at beginning | 6 years 1 month 6 days | 8 years 7 months 6 days |
Granted | 2 years 7 months 6 days | 4 years 6 months |
Outstanding at ending | 3 years 6 months | 6 years 1 month 6 days |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Details Narrative) | 12 Months Ended | |
Dec. 31, 2015USD ($)Number | Dec. 31, 2014USD ($) | |
Gain Contingencies [Line Items] | ||
Lease operating expenses per month | $ 241,644 | $ 290,557 |
Office Lease [Member] | ||
Gain Contingencies [Line Items] | ||
Lease operating expenses per month | $ 1,650 | |
Number of operating lease | Number | 1 |
OIL AND GAS ACQUISITIONS (Detai
OIL AND GAS ACQUISITIONS (Details Narrative) | Nov. 04, 2015USD ($)$ / shares$ / bbl | Sep. 23, 2015USD ($)Boe$ / shares$ / bblshares | Apr. 30, 2013ashares | Dec. 31, 2015USD ($)Number$ / sharesshares | Dec. 31, 2014BoeNumber |
Capitalized Costs of Unproved Properties Excluded from Amortization [Line Items] | |||||
Description of land | The Minerva-Rockdale Field, which is located approximately 30 miles Northeast of Austin, was first discovered in 1921 and is approximately 50 square miles in size. | ||||
Number of common shares issued | shares | 500,000 | ||||
Percentage of working interest | 100.00% | ||||
Percentage of net revenue interest | 75.00% | ||||
Number of completed wells drilled | Number | 16 | 7 | |||
Number of completed wells pledged | Number | 4 | ||||
Share price (in dollars per share) | $ / shares | $ 0.06 | ||||
Price paid for acquisition | $ | $ 719,903 | ||||
Increase reserve base for dollar per barrel of oil | Boe | 438,283 | ||||
SUDS Properties, LLC [Member] | |||||
Capitalized Costs of Unproved Properties Excluded from Amortization [Line Items] | |||||
Percentage of ownership | 100.00% | ||||
Share price (in dollars per share) | $ / shares | $ 0.068 | ||||
Price paid for acquisition | $ | $ 719,903 | ||||
Purchase price (in dollar per barrel) | $ / bbl | 4.77 | ||||
SUDS Properties, LLC [Member] | Restricted Stock [Member] | |||||
Capitalized Costs of Unproved Properties Excluded from Amortization [Line Items] | |||||
Percentage of working interest | 10.00% | ||||
SUDS Properties, LLC [Member] | Purchase and Sale Agreement [Member] | |||||
Capitalized Costs of Unproved Properties Excluded from Amortization [Line Items] | |||||
Percentage of working interest | 10.00% | ||||
Percentage of net revenue interest | 7.80% | ||||
Share price (in dollars per share) | $ / shares | $ 0.068 | ||||
Price paid for acquisition | $ | $ 719,903 | ||||
Purchase price (in dollar per barrel) | $ / bbl | 4.77 | ||||
Increase reserve base for dollar per barrel of oil | Boe | 151,000 | ||||
SUDS Properties, LLC [Member] | Purchase and Sale Agreement [Member] | Restricted Stock [Member] | |||||
Capitalized Costs of Unproved Properties Excluded from Amortization [Line Items] | |||||
Number of shares issued | shares | 10,586,805 | ||||
Twin Lakes San Andres Unit [Member] | |||||
Capitalized Costs of Unproved Properties Excluded from Amortization [Line Items] | |||||
Percentage of working interest | 15.00% | ||||
Purchase price (in dollar per barrel) | $ / bbl | 0.52 | ||||
Blue Sky New Mexico, Inc [Member] | Restricted Stock [Member] | |||||
Capitalized Costs of Unproved Properties Excluded from Amortization [Line Items] | |||||
Number of common shares issued | shares | 500,000 | ||||
Blue Sky New Mexico, Inc [Member] | Memorandum of Agreement [Member] | |||||
Capitalized Costs of Unproved Properties Excluded from Amortization [Line Items] | |||||
Date of agreement | Nov. 4, 2015 | ||||
Milam County, Texas [Member] | |||||
Capitalized Costs of Unproved Properties Excluded from Amortization [Line Items] | |||||
Oil and gas lease (in acre) | a | 423 | ||||
Original oil and gas lease (in acre) | a | 200 |
ASSET RETIREMENT OBLIGATIONS (D
ASSET RETIREMENT OBLIGATIONS (Details) - Asset Retirement Obligation Costs [Member] | 12 Months Ended |
Dec. 31, 2015 | |
Inflation rate (avg.) | 1.60% |
Estimated asset life | 16 years |
ASSET RETIREMENT OBLIGATIONS 39
ASSET RETIREMENT OBLIGATIONS (Details 1) - USD ($) | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Additional retirement obligations incurred | $ 26,201 | $ 19,418 |
Accretion expense | 11,856 | 1,872 |
Asset Retirement Obligation Costs [Member] | ||
Asset retirement obligations, beginning | 100,175 | 12,804 |
Obligations assumed in acquisition | 26,201 | |
Additional retirement obligations incurred | 19,418 | |
Change in estimate | 75,096 | 66,081 |
Accretion expense | 11,856 | 1,872 |
Asset retirement obligations, ending | $ 213,328 | $ 100,175 |
INCOME TAXES (Details Narrative
INCOME TAXES (Details Narrative) | 12 Months Ended |
Dec. 31, 2015USD ($) | |
Income Tax Disclosure [Abstract] | |
Federal statutory income tax rate | 35.00% |
Net operating losses | $ 5,600,000 |
INCOME TAXES (Details)
INCOME TAXES (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Income Tax Disclosure [Abstract] | ||
Income tax expense computed at statutory rates | $ (649,815) | $ (603,209) |
Non-deductible items | 66,313 | 468,253 |
Change in valuation allowance | 583,502 | 134,956 |
Total | $ 0 | $ 0 |
INCOME TAXES (Details 1)
INCOME TAXES (Details 1) - USD ($) | Dec. 31, 2015 | Dec. 31, 2014 |
Gross Values [Member] | ||
Deferred tax assets | ||
Book Impairment | $ 668,073 | |
Net operating loss carryforwards | 5,911,319 | $ 4,235,227 |
Total deferred tax assets | 6,579,392 | 4,235,227 |
Deferred tax liabilities | ||
O&G Properties | (2,211,892) | (1,631,976) |
Total deferred tax liabilities | (2,211,892) | (1,631,976) |
Less: Valuation allowance | (4,367,500) | (2,603,251) |
Tax Effect [Member] | ||
Deferred tax assets | ||
Book Impairment | 233,826 | |
Net operating loss carryforwards | 1,742,830 | 1,482,329 |
Total deferred tax assets | 1,976,656 | 1,482,329 |
Deferred tax liabilities | ||
O&G Properties | (774,162) | (571,192) |
Total deferred tax liabilities | (774,162) | (571,192) |
Less: Valuation allowance | $ (1,202,494) | $ (911,137) |
SUPPLEMENTAL INFORMATION RELA43
SUPPLEMENTAL INFORMATION RELATING TO OIL AND GAS PRODUCING ACTIVITIES (UNAUDITED) (Details Narrative) | 12 Months Ended | |
Dec. 31, 2015USD ($)Numberbbl | Dec. 31, 2014USD ($)BoeNumber | |
Oil and Gas Exploration and Production Industries Disclosures [Abstract] | ||
Number of completed wells drilled | Number | 16 | 7 |
Capital cost on lease | $ | $ 675,426 | |
Capital cost related to non production | $ | $ 65,450 | |
Total proved reserves | Boe | 438,283 | |
Production | bbl | 5,663 | |
Net proved reserves | Boe | 438,283 |
SUPPLEMENTAL INFORMATION RELA44
SUPPLEMENTAL INFORMATION RELATING TO OIL AND GAS PRODUCING ACTIVITIES (UNAUDITED) (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Oil and Gas Exploration and Production Industries Disclosures [Abstract] | ||
Property acquisitions | $ 916,777 | |
Development | $ 675,426 | |
Total Costs Incurred | $ 916,777 | $ 675,426 |
SUPPLEMENTAL INFORMATION RELA45
SUPPLEMENTAL INFORMATION RELATING TO OIL AND GAS PRODUCING ACTIVITIES (UNAUDITED) (Details 1) - USD ($) | Dec. 31, 2015 | Dec. 31, 2014 |
Oil and Gas Exploration and Production Industries Disclosures [Abstract] | ||
Evaluated properties | $ 4,733,853 | $ 3,715,779 |
Gross capitalized costs | 4,733,853 | 3,715,779 |
Less: Accumulated DD&A | (996,863) | (251,185) |
Net capitalized costs | $ 3,736,990 | $ 3,464,594 |
SUPPLEMENTAL INFORMATION RELA46
SUPPLEMENTAL INFORMATION RELATING TO OIL AND GAS PRODUCING ACTIVITIES (UNAUDITED) (Details 2) - bbl | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Proved Developed and Undeveloped Reserves [Roll Forward] | ||
Balance at the beginning | 301,900 | 226,600 |
Revisions of prior estimates | (99,207) | 83,396 |
Purchases of reserves in place | 536,140 | |
Production | (4,313) | (8,096) |
Balance at the end | 734,520 | 301,900 |
SUPPLEMENTAL INFORMATION RELA47
SUPPLEMENTAL INFORMATION RELATING TO OIL AND GAS PRODUCING ACTIVITIES (UNAUDITED) (Details 3) - bbl | Dec. 31, 2015 | Dec. 31, 2014 |
Oil and Gas Exploration and Production Industries Disclosures [Abstract] | ||
Estimated Quantities of Proved Developed Reserves - Oil (Bbls) | 287,780 | 79,100 |
Estimated Quantities of Proved Undeveloped Reserves - Oil (Bbls) | 446,740 | 222,800 |
SUPPLEMENTAL INFORMATION RELA48
SUPPLEMENTAL INFORMATION RELATING TO OIL AND GAS PRODUCING ACTIVITIES (UNAUDITED) (Details 4) | 12 Months Ended |
Dec. 31, 2015bbl | |
Proved Developed Reserves [Roll Forward] | |
Balance at beginning | 79,100 |
Acquired Reserves | 274,140 |
Revision of prior estimates | (59,797) |
Production | 5,663 |
Balance at ending | 287,780 |
Proved Undeveloped Reserves [Roll Forward] | |
Balance at beginning | 222,800 |
Acquired Reserves | 262,000 |
Revision of prior estimates | (38,060) |
Balance at ending | 446,740 |
SUPPLEMENTAL INFORMATION RELA49
SUPPLEMENTAL INFORMATION RELATING TO OIL AND GAS PRODUCING ACTIVITIES (UNAUDITED) (Details 5) - USD ($) | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Oil and Gas Exploration and Production Industries Disclosures [Abstract] | |||
Future cash inflows | $ 35,738,970 | $ 27,417,550 | |
Future production costs | (17,472,870) | (14,381,500) | |
Future development costs | (4,955,500) | (2,507,000) | |
Future net cash flows | 13,310,600 | 10,529,050 | |
Discount of future net cash flows at 10% per annum | (7,090,100) | (4,225,170) | |
Standardized measure of discounted future net cash flows | $ 6,220,500 | $ 6,303,880 | $ 7,966,550 |
SUPPLEMENTAL INFORMATION RELA50
SUPPLEMENTAL INFORMATION RELATING TO OIL AND GAS PRODUCING ACTIVITIES (UNAUDITED) (Details 6) - USD ($) | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Standardized Measure of Discounted Future Net Cash Flows Relating to Proved Oil and Gas Reserves [Roll Forward] | ||
Beginning of year | $ 6,303,880 | $ 7,966,550 |
Sales and transfers of oil & gas produced, net of production costs | 40,633 | (392,979) |
Net changes in prices and production costs | (3,346,098) | (1,454,390) |
Development costs incurred | 675,426 | |
Changes in estimated future development costs | 360,790 | (1,896,600) |
Acquisitions of minerals in place, net of production costs | 4,851,420 | |
Revision of previous estimates | (1,477,073) | 2,099,177 |
Change in discount | 630,388 | 796,655 |
Change in production rate or other | (1,143,449) | (1,489,959) |
End of year | $ 6,220,500 | $ 6,303,880 |
SUBSEQUENT EVENTS (Details Narr
SUBSEQUENT EVENTS (Details Narrative) | May 31, 2016Number$ / sharesshares | May 02, 2016USD ($)$ / sharesshares | Feb. 01, 2016USD ($)$ / sharesshares | Apr. 30, 2013shares | Dec. 31, 2015$ / sharesshares | Apr. 15, 2016shares | Nov. 04, 2015 | Dec. 31, 2014$ / sharesshares |
Subsequent Event [Line Items] | ||||||||
Share price (in dollars per share) | $ / shares | $ 0.06 | |||||||
Increase the total number of authorized shares of common stock | 150,000,000 | 150,000,000 | ||||||
Percentage of working interest | 100.00% | |||||||
Number of shares issued | 500,000 | |||||||
Warrant [Member] | ||||||||
Subsequent Event [Line Items] | ||||||||
Share price (in dollars per share) | $ / shares | $ 0.75 | |||||||
Blue Sky New Mexico, Inc [Member] | Restricted Stock [Member] | ||||||||
Subsequent Event [Line Items] | ||||||||
Number of shares issued | 500,000 | |||||||
Twin Lakes San Andres Unit [Member] | ||||||||
Subsequent Event [Line Items] | ||||||||
Percentage of working interest | 15.00% | |||||||
Subsequent Event [Member] | Private Investor [Member] | ||||||||
Subsequent Event [Line Items] | ||||||||
Share price (in dollars per share) | $ / shares | $ 0.06 | |||||||
Number of shares issued | 800,000 | |||||||
Number of units | Number | 8 | |||||||
Subsequent Event [Member] | 2015 Stock Incentive Plan [Member] | ||||||||
Subsequent Event [Line Items] | ||||||||
Increase the total number of authorized shares of common stock | 150,000,000 | |||||||
Subsequent Event [Member] | Warrant [Member] | ||||||||
Subsequent Event [Line Items] | ||||||||
Share price (in dollars per share) | $ / shares | $ 0.12 | |||||||
Number of warrant issued | 100,000 | |||||||
Warrant expiration date | Aug. 5, 2018 | |||||||
Subsequent Event [Member] | Askarii Resources [Member] | ||||||||
Subsequent Event [Line Items] | ||||||||
Percentage of issued and outstanding shares acquired | 100.00% | |||||||
Subsequent Event [Member] | Askarii Resources [Member] | Restricted Stock [Member] | ||||||||
Subsequent Event [Line Items] | ||||||||
Number of shares issued for services | 1,000,000 | |||||||
Number of shares issued for business acquired | 100,000 | |||||||
Business acquisition per share | $ / shares | $ 0.05 | |||||||
Aggregate amount of business acquired | $ | $ 50,000 | |||||||
Subsequent Event [Member] | Blue Sky New Mexico, Inc [Member] | ||||||||
Subsequent Event [Line Items] | ||||||||
Share price (in dollars per share) | $ / shares | $ 0.10 | |||||||
Promissory notes payable | $ | $ 146,875 | |||||||
Subsequent Event [Member] | Twin Lakes San Andres Unit [Member] | ||||||||
Subsequent Event [Line Items] | ||||||||
Promissory notes payable | $ | $ 146,875 | |||||||
Percentage of working interest | 15.00% | |||||||
Number of shares issued | 1,468,750 | |||||||
Remaining outstanding interest payoff | $ | $ 4,869 |