Cover
Cover - USD ($) | 12 Months Ended | ||
Dec. 31, 2020 | May 12, 2022 | Jun. 30, 2020 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Annual Report | true | ||
Document Transition Report | false | ||
Document Period End Date | Dec. 31, 2020 | ||
Document Fiscal Period Focus | FY | ||
Document Fiscal Year Focus | 2020 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity File Number | 000-52690 | ||
Entity Registrant Name | PETROLIA ENERGY CORPORATION | ||
Entity Central Index Key | 0001368637 | ||
Entity Tax Identification Number | 86-1061005 | ||
Entity Incorporation, State or Country Code | TX | ||
Entity Address, Address Line One | 710 N. Post Oak Road | ||
Entity Address, Address Line Two | Suite 400 | ||
Entity Address, City or Town | Houston | ||
Entity Address, State or Province | TX | ||
Entity Address, Postal Zip Code | 77024 | ||
City Area Code | 832 | ||
Local Phone Number | 723-1266 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | No | ||
Entity Interactive Data Current | No | ||
Entity Filer Category | Non-accelerated Filer | ||
Entity Small Business | true | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 3,415,018 | ||
Entity Common Stock, Shares Outstanding | 176,988,322 | ||
Documents Incorporated by Reference | None | ||
ICFR Auditor Attestation Flag | false | ||
Auditor Firm ID | 2738 | ||
Auditor Name | M&K CPAS, PLLC | ||
Auditor Location | Houston, TX |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) | Dec. 31, 2020 | Dec. 31, 2019 |
Current assets | ||
Cash | $ 155,045 | $ 34,513 |
Accounts receivable | 5,000 | 5,000 |
Other current assets | 39,443 | 135,195 |
Total current assets | 199,488 | 174,708 |
Oil and gas, on the basis of full cost accounting: | ||
Evaluated Properties | 8,619,427 | 12,913,972 |
Furniture, equipment & software | 201,110 | 201,110 |
Less accumulated depreciation & depletion | (2,868,453) | (1,663,994) |
Net property and equipment | 5,952,084 | 11,451,088 |
Other assets | ||
Operating Lease Right-of-Use Asset | 23,145 | |
Other assets | 985,187 | 944,055 |
Total Assets | 7,159,904 | 12,569,851 |
Current liabilities | ||
Accounts payable | 1,067,841 | 598,029 |
Accounts payable - related parties | 587 | 25,587 |
Operating Lease Liability | 13,107 | |
Accrued liabilities | 1,572,055 | 677,890 |
Accrued liabilities - related parties | 751,949 | 1,053,564 |
Notes payable - short term | 3,037,737 | 653,540 |
Notes payable - related party | 1,035,329 | 983,291 |
Total current liabilities | 7,478,605 | 3,991,901 |
Asset retirement obligations | 3,624,133 | 1,723,364 |
Operating Lease Liability | 13,909 | |
Notes payable | 573 | 1,443,538 |
Derivative liability | 183,798 | 24,509 |
Total Liabilities | 11,301,018 | 7,183,312 |
Stockholders’ Equity (Deficit) | ||
Preferred stock, $0.001 par value; 1,000,000 shares authorized; 199,100 and 199,100 shares issued and outstanding | 199 | 199 |
Common stock, $0.001 par value; 400,000,000 shares authorized; 168,696,226 and 164,548,726 shares issued and outstanding | 168,696 | 164,549 |
Additional paid in capital | 59,044,519 | 57,985,359 |
Shares to be issued | 55,375 | |
Accumulated other comprehensive income (loss) | (266,432) | (218,565) |
Accumulated deficit | (63,088,096) | (52,600,378) |
Total Stockholders’ Equity (Deficit) | (4,141,114) | 5,386,539 |
Total Liabilities and Stockholders’ Equity (Deficit) | $ 7,159,904 | $ 12,569,851 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Dec. 31, 2020 | Dec. 31, 2019 |
Statement of Financial Position [Abstract] | ||
Preferred stock, par value | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized | 1,000,000 | 1,000,000 |
Preferred stock, shares issued | 199,100 | 199,100 |
Preferred stock, shares outstanding | 199,100 | 199,100 |
Common stock, par value | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 400,000,000 | 400,000,000 |
Common stock, shares issued | 168,696,226 | 164,548,726 |
Common stock, shares outstanding | 168,696,226 | 164,548,726 |
Consolidated Statements of Oper
Consolidated Statements of Operations and Comprehensive Loss - USD ($) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Total revenue | $ 2,892,241 | $ 2,916,734 |
Operating expenses | ||
Lease operating expense | 3,627,541 | 3,382,133 |
Production tax | 3,066 | 4,966 |
General and administrative expenses | 864,583 | 1,412,249 |
Depreciation, depletion and amortization | 1,147,281 | 1,037,019 |
Asset retirement obligation accretion | 287,758 | 149,624 |
Loss on forfeiture | 6,255,103 | |
Impairment of oil and gas properties | 396,922 | |
Total operating expenses | 12,582,254 | 5,985,991 |
Loss from operations | (9,690,013) | (3,069,256) |
Other income (expenses) | ||
Interest expense | (735,622) | (279,141) |
Foreign exchange gain (loss) | 62,004 | |
Change in fair value of derivative liabilities | (159,289) | 12,504 |
Other income (expense) | 275,905 | 10,242 |
Gain on sale of assets | 280,000 | |
Gain/(loss) on related party debt settlement of accrued salaries | 92,750 | |
Total other income (expenses) | (619,006) | 178,359 |
Net loss before taxes | (10,309,019) | (2,890,898) |
Income tax provision (benefit) | ||
Net Loss | (10,309,019) | (2,890,898) |
Series A preferred dividends | (178,699) | (178,208) |
Net loss attributable to common stockholders | (10,487,718) | (3,069,106) |
Other comprehensive income, net of tax | ||
Foreign currency translation adjustments | (47,867) | (226,838) |
Comprehensive loss | $ (10,535,585) | $ (3,295,944) |
Loss per share | ||
(Basic and diluted) | $ (0.06) | $ (0.02) |
Weighted average number of common shares outstanding, basic and diluted | 165,389,389 | 162,955,319 |
Oil and Gas Sales [Member] | ||
Total revenue | $ 2,892,241 | $ 2,916,734 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Cash Flows from Operating Activities | ||
Net loss | $ (10,309,019) | $ (2,890,898) |
Adjustment to reconcile net loss to net cash used in operating activities: | ||
Depletion, depreciation and amortization | 1,147,281 | 1,037,019 |
Asset retirement obligation accretion | 287,758 | 149,624 |
Operating Lease Accrual | 1,054 | |
Amortization of debt discount | 209,570 | 13,148 |
Change in fair value of derivative liabilities | 159,289 | (12,504) |
Warrant expense related to business combination | 34,867 | 72,037 |
Stock-based compensation expense | 244,520 | 473,353 |
Gain on settlement of accrued salaries | (92,750) | |
Gain on extinguishment of debt | (32,600) | |
Gain on sale of assets | (280,000) | |
Impairment of oil and gas properties | 396,922 | |
Loss on forfeiture | 6,255,103 | |
Accounts receivable | (5,000) | |
Prepaids and other current assets | 346,114 | 1,379 |
Accounts payable | 462,979 | 333,375 |
Accounts payable – related parties | (25,000) | (16,907) |
Accrued liabilities | 792,578 | (108,676) |
Accrued liabilities – related parties | (281,615) | 513,681 |
Net cash used in operating activities | (277,599) | (845,719) |
Cash Flows from Investing Activities | ||
Purchase of working interest in Canadian Properties | (944,055) | |
Sale of NOACK property | 120,000 | |
Proceeds from 2nd NOACK sale | 375,000 | |
Cash used in investing activities | (449,055) | |
Cash Flows from Financing Activities | ||
Proceeds from issuance of common stock | 30,000 | |
Proceeds from notes payable | 10,000 | 1,225,000 |
Proceeds from Paycheck Protection Loan | 56,680 | |
Repayments of notes payable | (68,367) | (7,096) |
Proceeds from related party notes payable | 657,470 | 797,793 |
Repayments of related party notes payable | (334,268) | (558,726) |
Proceeds from exercise of warrants | 119,375 | 55,375 |
Cash provided by financing activities | 440,890 | 1,542,346 |
Foreign exchange | (42,759) | (226,838) |
Net change in cash | 120,532 | 20,734 |
Cash at beginning of period | 34,513 | 13,779 |
Cash at end of period | 155,045 | 34,513 |
SUPPLEMENTAL DISCLOSURES | ||
Interest paid | 187,662 | 82,657 |
Income taxes paid | ||
NON-CASH INVESTING AND FINANCIAL DISCLOSURES | ||
Settlement of related party accrued liabilities for common shares | 77,500 | 17,000 |
Settlement of notes payable related party for common shares | 113,000 | |
Assumption of note payable by related party | 125,000 | |
Debt discount on warrant issue | 499,170 | 38,249 |
Shares to be issued | 119,375 | |
Shares issued for related party expense | 20,000 | |
Issuing of previous shares to be issued | 55,375 | |
Accrued Series A preferred dividends | 178,699 | 178,208 |
Utikuma acquisition – purchase price | 678,675 | |
Utikuma acquisition – initial ARO | 906,146 | |
Third party loan for Utikuma purchase | 1,120,000 | |
Related party loan payments on Company’s behalf | $ 170,000 |
Statements of Changes in Stockh
Statements of Changes in Stockholders' Equity (Deficit) - USD ($) | Preferred Stock [Member] | Common Stock [Member] | Additional Paid-in Capital [Member] | Shares to be Issued [Member] | AOCI Attributable to Parent [Member] | Retained Earnings [Member] | Total |
Beginning balance, value at Dec. 31, 2018 | $ 199 | $ 162,674 | $ 57,253,595 | $ 8,273 | $ (49,531,272) | $ 7,893,469 | |
Beginning balance, shares at Dec. 31, 2018 | 19,100 | 162,673,726 | |||||
Common shares issued for the exercise of warrants | $ 1,875 | 148,125 | 150,000 | ||||
Common shares issued for the exercise of warrants, shares | 1,875,000 | ||||||
Stock based compensation | 473,353 | 473,353 | |||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Grants in Period, Gross | |||||||
Warrants issued as financing fee | 72,037 | 72,037 | |||||
Series A preferred dividends | (178,208) | (178,208) | |||||
Shares to be issued | 55,375 | 55,375 | |||||
Warrants issued for loans | 38,249 | 34,249 | |||||
Other comprehensive income (loss) | (226,838) | (226,838) | |||||
Net loss | (2,890,898) | (2,890,898) | |||||
Ending balance, value at Dec. 31, 2019 | $ 199 | $ 164,549 | 57,985,359 | 55,375 | (218,565) | (52,600,378) | 5,386,539 |
Ending balance, shares at Dec. 31, 2019 | 199,100 | 164,548,726 | |||||
Common shares issued for the exercise of warrants | $ 2,650 | 116,725 | 119,375 | ||||
Common shares issued for the exercise of warrants, shares | 2,650,000 | ||||||
Stock based compensation | 244,520 | 244,520 | |||||
Warrants issued as financing fee | 34,867 | 34,867 | |||||
Series A preferred dividends | (178,699) | (178,699) | |||||
Shares to be issued | 591 | 54,784 | (55,375) | ||||
Warrants issued for loans | 499,170 | 499,170 | |||||
Other comprehensive income (loss) | (47,867) | (47,867) | |||||
Net loss | (10,309,019) | (10,309,019) | |||||
Shares issued for extinguishment of debt | $ 656 | 89,344 | 90,000 | ||||
Shares issued for extinguishment of debt, shares | 656,250 | ||||||
Common shares issued for services | $ 250 | 19,750 | $ 20,000 | ||||
Common shares issued for services, shares | 250,000 | ||||||
Shares to be issued, shares | 591,250 | ||||||
Ending balance, value at Dec. 31, 2020 | $ 199 | $ 168,696 | $ 59,044,519 | $ (266,432) | $ (63,088,096) | $ (4,141,114) | |
Ending balance, shares at Dec. 31, 2020 | 199,100 | 168,696,226 |
ORGANIZATION AND BASIS OF PRESE
ORGANIZATION AND BASIS OF PRESENTATION | 12 Months Ended |
Dec. 31, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
ORGANIZATION AND BASIS OF PRESENTATION | NOTE 1. ORGANIZATION AND BASIS OF PRESENTATION Petrolia Energy Corporation (the “Company”) is in the business of oil and gas exploration, development and production. 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 United States Securities and Exchange Commission (“SEC”). A summary of the significant accounting policies applied in the preparation of the accompanying financial statements follows. |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Dec. 31, 2020 | |
Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | NOTE 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Principles of consolidation The consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries, Askarii Resources and Petrolia Canada Corporation. All significant intercompany balances and transactions have been eliminated upon consolidation. The Company accounts for its investment in companies in which it has significant influence by the equity method. The Company’s proportionate share of earnings is included in earnings and added to or deducted from the cost of the investment. Foreign currency translation The functional and reporting currency of the Company is the United States dollar. The functional currencies of the Company’s wholly-owned subsidiaries, Askarii Resources and Petrolia Canada Corporation, are the United States dollar and the Canadian dollar, respectively. Transactions involving foreign currencies are converted into the Company’s functional currency using the exchange rates in effect at the time of the transactions. At the balance sheet date, monetary assets and liabilities that are denominated in currencies other than the Company’s functional currency are translated using exchange rates at that date. Exchange gains and losses are included in net earnings. On consolidation, Petrolia Canada Corporation’s income statement amounts are translated at average exchange rates for the year, while the assets and liabilities are translated at year-end exchange rates. Translation adjustments are accumulated as a separate component of stockholders’ equity in other comprehensive income. 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 depreciation of furniture, equipment and software, asset retirement obligations (“AROs”) (Note 9), income taxes (Note 13) and the estimate of proved oil and gas reserves and related present value estimates of future net cash flows therefrom (Note 15). Cash and cash equivalents The Company considers all highly liquid instruments purchased with an original maturity date of three months or less to be cash equivalents. At December 31, 2020, the Company did no Receivables and allowance for doubtful accounts Oil revenues receivable do not bear any interest. These receivables are primarily comprised of joint interest billings. Management regularly reviews collectability and establishes or adjusts an allowance for uncollectible amounts as necessary using the specific identification method. Account balances are charged off against the allowance after all means of collection have been exhausted and the potential for recovery is considered remote. Management has determined that a reserve for uncollectible amounts was not required in the periods presented. Oil and gas properties The Company follows the full cost accounting method to account for oil and natural gas properties, whereby costs incurred in the acquisition, exploration and development of oil and gas reserves are capitalized. Such costs include lease acquisition, geological and geophysical activities, rentals on nonproducing leases, drilling, completing and equipping of oil and gas wells and administrative costs directly attributable to those activities and asset retirement costs. Disposition of oil and gas properties are accounted for as a reduction of capitalized costs, with no gain or loss recognized unless such adjustment would significantly alter the relationship between capital costs and proved reserves of oil and gas, in which case the gain or loss is recognized to operations. 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 un-weighted 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. 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. Furniture, equipment and software Furniture, equipment, and software are stated at cost, less accumulated depreciation. Depreciation is computed using the straight-line method over the estimated useful lives of the related asset, generally three five years Derivative financial instruments The Company’s derivative financial instruments consist of warrants with an exercise price denominated in a currency other than the Company’s functional currency. These derivative financial instruments are measured at their fair value at the end of each reporting period. Changes in fair value are recorded in net income. Asset retirement obligations The Company records a liability for Asset Retirement Obligations (“AROs”) associated with its oil and gas wells when those assets are placed in service. The corresponding cost is capitalized as an asset and included in the carrying amount of oil and gas properties and is depleted over the useful life of the properties. Subsequently, the ARO liability is accreted to its then-present value. 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 Costs incurred in connection with the issuance of long-term debt are presented as a direct deduction from the carrying value of the related debt and amortized over the term of the related debt. Revenue recognition In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2014-09, Revenue from Contracts with Customers Revenue from contracts with customers The Company recognizes revenue when it satisfies a performance obligation by transferring control over a product to a customer. Revenue is measured based on the consideration the Company expects to receive in exchange for those products. Performance obligations and significant judgments The Company sells oil and natural gas products in the United States through a single reportable segment. The Company enters into contracts that generally include one type of distinct product in variable quantities and priced based on a specific index related to the type of product. The oil and natural gas is typically sold in an unprocessed state to processors and other third parties for processing and sale to customers. The Company recognizes revenue at a point in time when control of the oil or natural gas passes to the customer or processor, as applicable, discussed below. For oil sales, control is typically transferred to the customer upon receipt at the wellhead or a contractually agreed upon delivery point. Under our natural gas contracts with processors, control transfers upon delivery at the wellhead or the inlet of the processing entity’s system. For our other natural gas contracts, control transfers upon delivery to the inlet or to a contractually agreed upon delivery point. In the cases where the Company sells to a processor, management has determined that the Company is the principal in the arrangement and the processors are customers. The Company recognizes the revenue in these contracts based on the net proceeds received from the processor. Transfer of control drives the presentation of transportation and gathering costs within the accompanying consolidated statements of operations. Transportation and gathering costs incurred prior to control transfer are recorded within the transportation and gathering expense line item on the accompanying consolidated statements of operations, while transportation and gathering costs incurred subsequent to control transfer are recorded as a reduction to the related revenue. A portion of our product sales are short-term in nature. For those contracts, the Company uses the practical expedient in Accounting Standards Codification (“ASC”) 606-10-50-14 exempting us from disclosure of the transaction price allocated to remaining performance obligations if the performance obligation is part of a contract that has an original expected duration of one year or less. For our product sales that have a contract term greater than one year, the Company has utilized the practical expedient in ASC 606-10-50-14(a) which states the Company is not required to disclose the transaction price allocated to remaining performance obligations if the variable consideration is allocated entirely to an unsatisfied performance obligation. Under these sales contracts, each unit of product represents a separate performance obligation; therefore, future volumes are unsatisfied, and disclosure of the transaction price allocated to remaining performance obligations is not required. The Company has no unsatisfied performance obligations at the end of each reporting period. Management does not believe that significant judgments are required with respect to the determination of the transaction price, including any variable consideration identified. There is a low level of uncertainty due to the precision of measurement and use of index-based pricing with predictable differentials. Additionally, any variable consideration identified is not constrained. Stock-based compensation The Company accounts for stock-based compensation to employees in accordance with FASB ASC 718. Stock-based compensation Income taxes Income taxes are accounted for pursuant to ASC 740, 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 no The Company is required to file federal income tax returns in the United States and Canada, and in various state and local jurisdictions. The Company’s tax returns 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. Earnings (loss) per share Basic earnings (loss) per share has been calculated based on the weighted-average number of common shares outstanding. The treasury stock method is used to compute the dilutive effect of the Company’s share-based compensation awards. Under this method, the incremental number of shares used in computing diluted earnings per share (“EPS”) is the difference between the number of shares assumed issued and purchased using assumed proceeds. Diluted EPS amounts would include the effect of outstanding stock options, warrants, and other convertible securities if including such potential shares of common stock is dilutive. Basic and diluted earnings per share are the same in all periods presented as all outstanding instruments are anti-dilutive. Concentration of credit risk The Company is subject to credit risk resulting from the concentration of its oil receivables with significant purchasers. Two purchasers accounted for all of the Company’s oil sales revenues for 2019 and 2020. The Company does not require collateral. While the Company believes its recorded receivables will be collected, in the event of default the Company would follow normal collection procedures. The Company does not believe the loss of a purchaser would materially impact its operating results as oil is a fungible product with a well-established market and numerous purchasers. 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 is defined as the price that would be received to sell an asset or paid to transfer a liability (i.e., the “exit price”) in an orderly transaction between market participants at the measurement date. The hierarchy is broken down into three levels based on the observability of inputs as follows: ● Level 1 — Valuations based on quoted prices in active markets for identical assets or liabilities that the Company has the ability to access. Valuation adjustments and block discounts are not applied to Level 1 instruments. Since valuations are based on quoted prices that are readily and regularly available in an active market, valuation of these products does not entail a significant degree of judgment; ● Level 2 — Valuations based on one or more quoted prices in markets that are not active or for which all significant inputs are observable, either directly or indirectly; and ● Level 3 — Valuations based on inputs that are unobservable and significant to the overall fair value measurement. Our derivative liabilities are measured at fair value on a recurring basis and estimated as follows: SCHEDULE OF DERIVATIVE LIABILITIES MEASURED AT FAIR VALUE ON RECURRING BASIS December 31, 2020 Level 1 Level 2 Level 3 Total Derivative liabilities — 183,798 183,798 ARO liabilities — — 3,624,133 3,624,133 December 31, 2019 Derivative liabilities — 24,509 24,509 ARO liabilities — — 1,723,364 1,723,364 The carrying value of cash, accounts receivable, other current assets, accounts payable, accounts payable – related parties, accrued liabilities and accrued liabilities – related parties, as reflected in the consolidated balance sheets, approximate fair value, due to the short-term maturity of these instruments. The carrying value of notes payable approximates their fair value due to immaterial changes in market interest rates and the Company’s credit risk since issuance of the instruments or due to their short-term nature. Derivative liabilities are remeasured at fair value every reporting period. Our derivative liabilities are considered level 3 financial instruments. Related parties The Audit Committee approves all material related party transactions. The Audit Committee is provided with the details of each new, existing or proposed related party transaction, including the terms of the transaction, the business purpose of the transaction, and the benefits to the Company and the relevant related party. In determining whether to approve a related party transaction, the following factors are considered: (1) if the terms are fair to the Company, (2) if there are business reasons to enter into the transaction, (3) if the transaction would impair independence of an outside Director, or (4) if the transaction would present an improper conflict of interest for any Director or executive officer. Any member of the Audit Committee who has an interest in the transaction will abstain from voting on the approval of the related party transaction. Business combinations In January 2017, the FASB issued ASU 2017-01 Business Combinations Clarifying the Definition of a Business Reclassifications Certain amounts previously presented for prior periods have been reclassified to conform to the current presentation. The reclassifications had no effect on net loss, working capital or equity previously reported. 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 other than those discussed below. Leases In February 2016, the FASB issued ASU 2016-02, “Leases” Under ASU 2016-02, each lease agreement will be evaluated to identify the lease components and non-lease components at lease inception. The total consideration in the lease agreement will be allocated to the lease and non-lease components based on their relative standalone selling prices. In July 2018, the FASB issued ASU 2018-11, “Leases – Targeted Improvements” The Company adopted ASU 2016-02 on January 1, 2019 using the modified retrospective method, whereby a cumulative effect adjustment will be made as of that day with no retrospective effect. The Company applied the package of practical expedients such that for any expired or existing leases it will not reassess lease classification, initial direct costs or whether any expired or existing contracts are or contain leases. Note that the Company had no outstanding leases as of December 31, 2019. In 2020, we entered a lease with a related party, that is accounted for and disclosed using the framework of ASC 842. |
GOING CONCERN
GOING CONCERN | 12 Months Ended |
Dec. 31, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
GOING CONCERN | NOTE 3. GOING CONCERN The Company has suffered recurring losses from operations and currently has a working capital deficit. These conditions raise substantial doubt about the Company’s ability to continue as a going concern. The Company plans to generate profits by reworking its existing oil or gas wells, as needed, funding permitting. The Company will need to raise funds through either the sale of its securities, issuance of corporate bonds, joint venture agreements and/or bank financing to accomplish its goals. The Company does not have any commitments or arrangements from any person to provide the Company with any additional capital. If additional financing is not available when needed, we may need to cease operations. The Company may not be successful in raising the capital needed to drill and/or rework existing oil wells. Any additional wells that the Company may drill may be non-productive. Management believes that actions presently being taken to secure additional funding for the reworking of its existing infrastructure will provide the opportunity for the Company to continue as a going concern. Since the Company has an oil producing asset, its goal is to increase the production rate by optimizing its current infrastructure. The accompanying financial statements have been prepared assuming the Company will continue as a going concern; no adjustments to the financial statements have been made to account for this uncertainty. |
EVALUATED PROPERTIES
EVALUATED PROPERTIES | 12 Months Ended |
Dec. 31, 2020 | |
Disclosure Evaluated Properties Abstract | |
EVALUATED PROPERTIES | NOTE 4. EVALUATED PROPERTIES The acquired properties and current properties can be summarized as follows: SCHEDULE OF ACQUIRED AND CURRENT PROPERTIES Cost Canadian properties US properties Total As of December 31, 2018 2,443,747 10,350,538 12,794,285 Additions — — — Dispositions — — — Asset retirement cost additions — — — Foreign currency translations 119,687 — 119,687 As of December 31, 2019 $ 2,563,434 $ 10,350,538 $ 12,913,972 Additions 678,765 — 678,765 Dispositions — 5,648,904 ) (6,255,103 ) Impairment of oil and gas properties (396,922 ) (396,922 ) Asset retirement cost additions 906,146 — 1,512,256 Foreign currency translation 166,459 — 166,459 As of December 31, 2020 4,314,804 4,304,622 8,619,427 Accumulated depletion As of December 31, 2018 413,657 61,551 475,208 Dispositions — — — Impairment of oil and gas properties — — — Depletion 1,004,832 — 1,004,832 Foreign currency translations 40,487 — 40,487 As of December 31, 2019 1,458,976 61,551 1,520,527 Dispositions — — — Depletion 1,115,595 — 1,115,595 Foreign currency translation 57,178 — 57,178 As of December 31, 2020 $ 2,631,749 $ 61,551 $ 2,693,300 Net book value as at December 31, 2020 $ 1,683,055 $ 4,243,071 $ 5,926,126 Net book value as at December 31, 2019 $ 1,104,458 $ 10,288,987 $ 11,393,445 U.S. Properties – Minerva-Rockdale Field (“NOACK”) Field On November 1, 2018, the Company sold 83 100 375,000 260,000 115,000 120,000 255,000 On August 6, 2019, the Company entered into a Purchase and Sale Agreement (“PSA”) for the sale of the same NOACK property with Flowtex Energy LLC. (“FT”). The purchaser agreed to pay $ 400,000 20,000 380,000 375,000 25,000 400,000 25,000 8,995 16,005 U.S. Properties – Slick Unit Dutcher Sands (“SUDS”) Field On July 24, 2018, the Company announced the signing of the Slick Unit Exploration and Development Agreement (the “Development Agreement”) with Boone Operating Inc. (“Boone”), a private Exploration & Production company, to explore and develop the Misener and Simpson Formations at the SUDS Field. The Development Agreement expired and was not renewed. The Company’s primary focus remains to develop the Dutcher Sands formation. The SUDS Field is a 2604-acre lease located in Creek County, 36 miles Southwest of Tulsa, Oklahoma. The field was first discovered in 1918 by SOHIO Oil Company utilizing over 100 wells with the primary objective to produce from the Dutcher Sands at an average well depth of 3,100 ft U.S. properties – Twin Lakes San Andres Unit (“TLSAU”) Field TLSAU is located 45 miles from Roswell, Chaves County, New Mexico. The last independent reserve report prepared by MKM Engineering on December 31, 2020, reflects approximately 98,250 barrels of proven oil reserves remaining for the 100% working interest . On July 27, 2020 the Company entered into a settlement agreement with their Trustee pursuant to which nine leases totaling approximately 3,800 4,880 56 10,175,456 5,648,994 10,175,456 56 Canadian properties – Luseland, Hearts Hill and Cuthbert fields Effective on June 29, 2018, the Company acquired a 25 % working interest in approximately 41,526 acres located in the Luseland, Hearts Hill, and Cuthbert fields, located in Southwest Saskatchewan and Eastern Alberta, Canada (collectively, the “Canadian Properties” and the “Working Interest”). The Canadian Properties currently encompass 64 sections, with 240 oil and 12 natural gas wells currently producing on the properties. Additionally, there are several idle wells with potential for reactivation and 34 sections of undeveloped land (approximately 21,760 acres) . The Canadian Properties and the Working Interest were acquired from Blue Sky (a related party). Blue Sky had previously acquired an 80 % working interest in the Canadian Properties from Georox Resources Inc., who had acquired the Canadian Properties from Cona Resources Ltd. and Cona Resources Partnership prior to the acquisition by the Company. The effective date of the acquisition was June 1, 2018. The acquisition of the Canadian Properties was evidenced and documented by a Memorandum of Understanding between the Company and Blue Sky dated June 29, 2018 and a Conveyance between the parties dated as of the same date, pursuant to which the Company agreed to acquire the Working Interest in consideration for $ 1,428,581 1,096,216 1,022,400 782,441 406,181 313,775 1,530,000 12 19 The Working Interest will be held in the name of the Company’s wholly-owned Alberta, Canada, subsidiary, Petrolia Canada Corporation. The Acquisition Note which was dated June 8, 2018, bears interest at the rate of 9 extend the maturity date for a period six months with 10 days’ notice to Blue Sky, in the event the Company pays 25% of the principal amount of the Acquisition Note at the time of extension On September 17, 2018, the Company entered into a Memorandum of Understanding (“MOU”) with Blue Sky. Pursuant to the MOU, the Company obtained the rights to acquire an additional 3 28 150,000 On February 16, 2022, Petrolia Canada Corporation (PCC), a wholly owned subsidiary of Petrolia Energy Corporation (PEC), entered into a Purchase and Sale Agreement (PSA) and Debt Settlement Agreement (DSA) with Prospera Energy, Inc. whereby PCC sold its 28 Utikuma field On May 1, 2020, Petrolia Energy Corporation acquired a 50 % working interest in approximately 28,000 acres located in the Utikuma Lake area in Alberta, Canada. The property is an oil-weighted asset currently producing approximately 500 bpd of light oil. The working interest was acquired from Blue Sky Resources Ltd. in an affiliated party transaction as Zel C. Khan, the Company’s former Chief Executive Officer, is related to the ownership of Blue Sky. Blue Sky acquired a 100 % working interest in the Canadian Property from Vermilion Energy Inc. via Vermilion’s subsidiary Vermilion Resources. The effective date of the acquisition was May 1, 2020. The total purchase price of the property was $2,000,000 (CAD), with $1,000,000 of that total due initially. The additional $1,000,000 was contingent on the future price of WTI crude. At the time WTI price exceeded $50/bbl, the Company would pay an additional $750,000. In addition, at the time WTI price exceeded $57/bbl the Company would pay an additional $250,000 (for a cumulative contingent total of $1,000,000). Note that WTI crude prices did not exceed those price thresholds until 2021, so the contingent $1,000,000 will not be recorded until 2021. Included in the terms of the agreement, the Company also funded their portion of the Alberta Energy Regulator (“AER”) bond fund requirement ($599,851 USD), necessary for the wells to continue in production after the acquisition. Additional funds ($385,336 USD) remain in the other current asset balance for future payments to BSR, related to the acquisition . On December 2, 2020 Petrolia Canada Corporation received $ 602,404.84 |
NOTES PAYABLE
NOTES PAYABLE | 12 Months Ended |
Dec. 31, 2020 | |
Debt Disclosure [Abstract] | |
NOTES PAYABLE | NOTE 5. NOTES PAYABLE SCHEDULE OF NOTES PAYABLE Interest rate Date of maturity December 31, 2020 December 31, 2019 Truck loan (ii) 5.49 % January 20, 2022 9,916 16,141 Credit note I (iii) 12 % May 11, 2021 800,000 800,000 Credit note II (iv) 12 % October 17, 2019 346,038 346,038 Credit note III (v) 15 % April 25, 2021 750,000 750,000 Discount on credit note III — — (5,976 ) (25,101 ) Credit note VI (vi) 10 % January 01, 2020 937,019 — Discount on credit note VI (285,768 ) — Lee Lytton (i) On demand 3,500 — Joel Oppenheim (vii) 10 % On demand 161,900 — Joel Oppenheim (vii) 10 % On demand 15,000 — Joel Oppenheim (vii) 10 % October 17, 2018 240,000 — Origin Bank (PPP loan) 56,680 — Mark Allen (viii) 12 % June 30, 2021 — 200,000 M. Hortwitz 10 % October 14, 2016 10,000 10,000 3,038,309 2,097,078 Current portion: Truck loan 9,343 7,502 Credit note I 800,000 90,000 Credit note II 346,038 346,038 Credit note III 744,023 — Credit note VI 651,251 — M. Hortwitz 10,000 10,000 Lee Lytton 3,500 — Joel Oppenheim 176,900 — Joes Oppenheim 240,000 — Mark Allen — 200,000 Origin Bank (PPP Loan) 56,680 — Current portion of notes payable $ 3,037,737 $ 653,540 (i) Note needs to be settled with the estate of Lee Lytton. (ii) On January 6, 2017, the Company purchased a truck and entered into an installment note in the amount of $ 35,677 5.49 683 (iii) On May 9, 2018, Bow entered into an Amended and Restated Loan Agreement with a third party. The Loan Agreement increased by $ 800,000 1,530,000 12 19 10,000 710,000 May 11, 2021 The additional $ 800,000 In order to induce the Lender to enter into the Loan Agreement, the Company agreed to issue the Lender 500,000 2,320,000 320,000 0.10 May 15, 2021 500,000 0.12 May 15, 2021 1,500,000 0.10 May 15, 2020 The fair value of the 500,000 47,500 30,012 182,650 260,162 Upon the disposition of Bow pursuant to the Exchange Agreement, a total of $ 730,000 (iv) On September 17, 2018, the Company entered into a loan agreement (LOC) with a third party for $ 200,000 500,000 3 3.5 6,000 3 During 2019, the LOC balance increased by $ 150,000 346,038 157,753 188,285 (v) On April 25, 2019, the Company entered into a promissory note (an Acquisition Note”) with a third party in the amount of $ 750,000 15% April 25, 2021 500,000 0.012 5,976 50% 100% (vi) On January 2, 2020, the Company entered into a loan agreement in the amount of $ 1,000,000 120,000 10% June 30, 2020 5,000,000 0.10 January 2, 2023 266,674 11,111 (vii) Various Shareholder Advances provided by Mr. Oppenheim during 2018 and 2019. There were no formal documents drawn. Interest rates were applied based on other similar loan agreements entered into by the Company during that period. On February 22, 2021, Mr. Oppenheimer combined the loans, which now bear an interest rate of 10% December 31, 2021 During 2019, the Company entered into a loan agreement in the amount of $ 200,000 12 June 30, 2021 2,500,000 0.08 10,000,000 0.10 On January 15, 2019, the Company entered into a loan agreement in the amount of $ 125,000 with a third party. The note bore interest at an interest rate of $ 4 % per annum and was to mature on January 15, 2020. On September 30, 2019, Jovian Petroleum Corporation reimbursed the $ 125,000 to the third party. Consequently, the $125,000 debt balances was transferred into the Jovian LOC and is now included in the $ 362,583 at December 31, 2020 (see Note 7: Related Party Notes Payable) On April 23, 2020, the Company was granted a $ 56,680 1 2 (viii) Mark Allen became a related party in 2020, therefore his note has been moved to that schedule. The following is a schedule of future minimum repayments of notes payable as of December 31: SCHEDULE OF FUTURE MINIMUM REPAYMENTS OF NOTES PAYABLE 2021 3,037,737 2022 573 Thereafter — Total $ 3,038,310 |
LEASES
LEASES | 12 Months Ended |
Dec. 31, 2020 | |
Leases | |
LEASES | NOTE 6. LEASES Our adoption of ASU 2016-02, Leases (Topic 842), and subsequent ASUs related to Topic 842, requires us to recognize substantially all leases on the balance sheet as an ROU asset and a corresponding lease liability. The new guidance also requires additional disclosures as detailed below. We adopted this standard on the effective date of January 1, 2019 and used this effective date as the date of initial application. Under this application method, we were not required to restate prior period financial information or provide Topic 842 disclosures for prior periods. We elected the ‘package of practical expedients,’ which permitted us to not reassess our prior conclusions related to lease identification, lease classification, and initial direct costs, and we did not elect the use of hindsight. Lease ROU assets and liabilities are recognized at commencement date of the lease, based on the present value of lease payments over the lease term. The lease ROU asset also includes any lease payments made and excludes any lease incentives. When readily determinable, we use the implicit rate in determining the present value of lease payments. When leases do not provide an implicit rate, we use our incremental borrowing rate based on the information available at the lease commencement date, including the lease term. Short-term leases with an initial term of 12 months or less are not recorded on the balance sheet. Lease expense for short-term leases is recognized on a straight-line basis over the lease term. As of December 31, 2020 and 2019, we did not have any short-term leases. The tables below present financial information associated with our lease. SCHEDULE OF FINANCIAL INFORMATION LEASE December 31, December 31, Balance Sheet Classification 2020 2019 Right-of-use assets Other long-term assets 23,145 - Current lease liabilities Other current liabilities 13,107 - Non-current lease liabilities Other long-term liabilities 13,909 - As of December 31, 2020, our maturities of our lease liability are as follows: SCHEDULE OF MATURITIES LEASE LIABILITY 2021 $ 14,997 Total $ 14,997 Less: Imputed interest (1,088 ) Present value of lease liabilities $ 13,909 |
RELATED PARTY NOTES PAYABLE
RELATED PARTY NOTES PAYABLE | 12 Months Ended |
Dec. 31, 2020 | |
Related Party Notes Payable | |
RELATED PARTY NOTES PAYABLE | NOTE 7. RELATED PARTY NOTES PAYABLE The chart below summarizes the related party Notes Payable as of December 31, 2020 and 2019. SCHEDULE OF RELATED PARTY NOTES PAYABLE Interest rate Date of maturity December 31, 2020 December 31, 2019 Lee Lytton (i) — On demand — 3,500 Quinten Beasley 10 % October 14, 2016 5,000 10,000 Joel Oppenheim — On demand — 217,208 Joel Oppenheim 12 % On demand — 15,000 Jovian Petroleum Corporation (ii) 3.5 % December 31, 2021 188,285 362,583 Ivar Siem (vi) 12 % On demand 200,000 100,000 Ivar Siem (vi) No interest On demand 50,000 50,000 Joel Oppenheim (iii) 12 % December 31, 2019 — 200,000 Mark Allen–SUDS Development (ix) 9 % September 2, 2021 55,000 — Mark Allen-SUDS Development (vii) 10 % June 30, 2021 135,000 — Mark Allen 12 % June 30, 2020 200,000 — Mark Allen (iv) 10 % June 30, 2020 100,000 — Discount on note (11,536 ) — Mark Allen (v) 10 % June 30, 2020 125,000 — Discount on note (11,420 ) — $ 1,035,329 $ 983,291 Note: Mark Allen’s notes were not included in related party notes payable at December 31, 2019 because he was not appointed as an officer of the Company until September 1, 2020. In 2020 his notes are reported in related party notes payable. (i) Not used (ii) On February 9, 2018, the Company entered into a Revolving Line of Credit Agreement (“LOC”) for $ 200,000 500,000 25 3.5 On January 20, 2020, Jovian Petroleum, purchased 1 unit of debt private placement with gross proceeds of $ 12,500 156,250 12,500 0.08 (iii) Joel Oppenheim was no longer a related party on December 31, 2020. This note is now reflected in Note 5 (Notes Payable). (iv) On January 3, 2020, the Company entered into a loan agreement in the amount of $ 100,000 10% June 1, 2020 400,000 0.10 January 3, 2023 31,946 1,775 (v) On February 14, 2020, the Company entered into a loan agreement in the amount of $ 125,000 10 June 1, 2020 750,000 0.10 February 14, 2022 38,249 1,903 (vi) On August 15, 2019, the Company entered into a loan agreement in the amount of $ 75,000 12 On December 4, 2019, the Company entered into a loan agreement in the amount of $ 100,000 12 1,250,000 0.08 5,000,000 0.10 On February 28, 2020, the Company entered into a $ 50,000 0 200,000 0.10 March 1, 2022 (vii) On January 6, 2020, the Company entered into a consulting agreement, with Mark M Allen, that included a funding clause where the Company borrowed $ 135,000 62,000 45,000 28,000 10 June 30, 2020 (viii) During 2019, the Company entered into a loan agreement in the amount of $ 200,000 12 2,500,000 0.08 10,000,000 0.10 (ix) On April 15, 2020, the Company entered into a consulting agreement, with Mark M Allen, that included a funding clause where the Company borrowed $ 55,000 9 August 15, 2021 During 2019, $ 120,000 20,000 40,000 40,000 20,000 The following is a schedule of future minimum repayments of related party notes payable as of December 31, 2020: SCHEDULE OF FUTURE MINIMUM REPAYMENTS OF RELATED PARTY NOTES PAYABLE 2021 $ 1,035,329 Thereafter — Total $ 1,035,329 |
DERIVATIVE FINANCIAL INSTRUMENT
DERIVATIVE FINANCIAL INSTRUMENTS | 12 Months Ended |
Dec. 31, 2020 | |
Investments, All Other Investments [Abstract] | |
DERIVATIVE FINANCIAL INSTRUMENTS | NOTE 8. DERIVATIVE FINANCIAL INSTRUMENTS On May 18, 2018, as an inducement to enter into an Amended and Restated Loan Agreement, the Company issued, among other instruments, warrants to acquire 320,000 0.10 30,012 On January 06, 2020, as an inducement to enter into a Loan Agreement, the Company issued, among other instruments, warrants to acquire 5,000,000 0.10 144,259 On October 30, 2020, as an inducement to extend the principal payment deadline from the previously issued Loan Agreement, the Company issued additional warrants to acquire 5,000,000 0.10 95,352 A summary of the activity of the derivative liabilities is shown below: SCHEDULE OF DERIVATIVE LIABILITIES Balance, December 31, 2019 $ 24,509 Additions 236,611 Fair value adjustments (77,322 ) As of December 31, 2020 $ 183,798 Derivative liability classified warrants in the years ended December 31, 2020 were valued using the Black Scholes Option Pricing Model with the range of assumptions outlined below. Expected life was determined based on historical exercise data of the Company. SCHEDULE OF DERIVATIVE LIABILITY OF FAIR VALUE ASSUMPTION December 31, 2020 Risk-free interest rate 1.58 2.27 % Expected life 1.4 2.1 Expected dividend rate 0 % Expected volatility 208 240 % |
ASSET RETIREMENT OBLIGATIONS
ASSET RETIREMENT OBLIGATIONS | 12 Months Ended |
Dec. 31, 2020 | |
Asset Retirement Obligation Disclosure [Abstract] | |
ASSET RETIREMENT OBLIGATIONS | NOTE 9. ASSET RETIREMENT OBLIGATIONS The Company has a number of oil and gas wells in production and will have AROs 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. Petrolia Energy Corporation (“Petrolia” or the “Company”) is the operator of certain wells located in New Mexico, at the Twin Lakes San Andres Unit (“TLSAU”) Field. TLSAU is located 45 miles from Roswell, Chaves County, New Mexico. On March 4, 2021, the Company received a letter from the Commissioner of Public Lands of the State of New Mexico, which was sent to us and certain other parties notifying such parties of certain non-compliance with the laws and regulations that it administers. The deficiencies are currently in the process of being settled by a third party agreeing to plug six wells, including at least two Company operated wells (TLSAU wells #316 and #037). The scope of the matter above included only 240 acres of the 640 acres of The New Mexico State Land Office (SLO) lease. The Commissioner of Public Lands of the State of New Mexico could still file suit and require the plugging and surface remediation of all wells in section 36. On April 8, 2021, the State of New Mexico Energy, Minerals and Natural Resources Department Oil Conservation Division (“OCD”) sent the Company a Notice of Violation alleging that the Company was not in compliance with certain New Mexico Oil and Gas Act regulations (the “NMAC”), associated with required reporting, inactive wells and financial assurance requirements, plugging certain abandoned wells, providing required financial assurance in connection with plugging expenses, and proposing to assess certain civil penalties in the amount of an aggregate of approximately $ 35,100 As previously reported and in Petrolia’s Form 8-K dated October 25, 2021 (reference to which is hereby made), on April 8, 2021, the State of New Mexico Energy, Minerals and Natural Resources Department, Oil Conservation Division (the “OCD”) issued a Notice of Violation (the “NOV”) to Petrolia alleging that the Company violated four regulations under Title 19, Chapter 15 of the New Mexico Administrative Code (the “NMAC”) by: (i) failing to file production reports for certain wells, (ii) exceeding the number of inactive wells allowed, (iii) failing to provide financial assurance in the amount required, and (iv) failing to provide additional financial assurance in the amount required. The Company acknowledged the violations alleged in the NOV and requested an informal resolution. On December 30, 2021, to resolve this matter, Petrolia entered into a Stipulated Final Order ( the “SFO”) in Case No. 21982 with the OCD whereby Petrolia among other things agreed to: (i) submit appropriate forms for wells identified on the SFO Inactive Well List, (ii) plug the specific TLSAU wells listed in section 8 (c) and (d) of the SFO, as well as submit all required information and forms specified in the SFO, (iii) open an escrow account meeting the terms listed in the SFO, (iv) deposit funds into an escrow account within the timeframe described in the SFO, and (v) provide the OCD with a report proposing deadlines for bringing all remaining wells into compliance. The company recognized an additional liability of $ 660,000 The Company entered into a settlement agreement on July 27, 2020 with Moon Company, Trustee of the O’Brien Mineral Trust pursuant to which nine leases totaling approximately 3,800 acres of the 4,880 acre Twin Lakes San Andres Unit were terminated as a part of the settlement agreement. Pursuant to this settlement agreement, the Company no longer has the right to produce oil, gas, or other hydrocarbons and any other minerals from the mineral estate encumbered by the leases and owned by the trustee of the O’Brien Mineral Trust. AROs associated with the retirement of tangible long-lived assets are recognized as liabilities with an increase to the carrying amounts of the related long-lived assets in the period incurred. The fair value of AROs is recognized as of the acquisition date of the working interest. The cost of the tangible asset, including the asset retirement cost, is depleted over the life of the asset. AROs are recorded at estimated fair value, measured by reference to the expected future cash outflows required to satisfy the retirement obligations discounted at the Company’s credit-adjusted risk-free interest rate. Accretion expense is recognized over time as the discounted liabilities are accreted to their expected settlement value. If estimated future costs of AROs change, an adjustment is recorded to both the ARO and the long-lived asset. Revisions to estimated AROs can result from changes in retirement cost estimates, revisions to estimated discount rates and changes in the estimated timing of abandonment. SCHEDULE OF FAIR VALUE OF ASSET RETIREMENT OBLIGATIONS December 31, 2020 Inflation rate 1.92 2.15 % Estimated asset life 12 22 The following table shows the change in the Company’s ARO liability for the years ended December 31, 2020 and 2019: SCHEDULE OF ASSET RETIREMENT OBLIGATIONS Canadian properties United States properties Total Asset retirement obligations, December 31, 2018 $ 1,258,399 $ 251,223 $ 1,509,622 Additions — — — Accretion expense 123,474 26,150 149,624 Disposition — — — Foreign currency translation 64,118 — 64,118 Asset retirement obligations, December 31, 2019 1,445,991 277,373 1,723,364 Acquisition of Canadian property - Utikuma 906,146 — 906,146 Plugging liability at Twin Lakes 606,109 606,109 Accretion expense 259,016 28,742 287,758 Disposition — — — Foreign currency translation 100,756 — 100,756 Asset retirement obligations, December 31, 2020 $ 2,711,909 $ 912,225 $ 3,624,133 |
EQUITY
EQUITY | 12 Months Ended |
Dec. 31, 2020 | |
Equity [Abstract] | |
EQUITY | NOTE 10. EQUITY Preferred stock The holders of Series A Preferred Stock are entitled to receive cumulative dividends at a rate of 9 0.28 the value of each dollar of preferred stock (based on a $10 per share price) will convert into 7.1429 common shares (which results in a $0.14 per common share conversion rate) In accordance with the terms of the Preferred Stock, cumulative dividends of $ 178,699 178,208 Common stock During the year ended December 31, 2019, the Company closed private placements for $ 0.08 per unit for a total of 1,875,000 units and gross proceeds of $ 150,000 (the “2019 Units”). Each 2019 Unit was comprised of one common share and two warrants entitling the holder to exercise such warrant for one common share for a period of two years from the date of issuance. The warrants have exercise price of $0.10 per share. See additional description of the detail transactions concerning those warrants in Note 7: Related Party Transactions , below. On July 23, 2019, director Joel Martin Oppenheim purchased additional 2019 private placements for $ 0.08 156,250 12,500 0.10 2,500 10,000 On August 8, 2019, director Joel Martin Oppenheim exercised warrants to purchase 150,000 15,000 0.10 On August 14, 2019, director Joel Martin Oppenheim exercised warrants to purchase 10,000 1,000 0.10 During 2019, a Mark Allen exercised warrants to purchase 275,000 shares of common stock for cash proceeds of $ 26,875 at an average exercise price of $ 0.098 per share. These shares were not issued until January 2020. On January 20, 2020, a related party, purchased 1 unit of the debt private placement with gross proceeds of $12,500 156,250 312,500 0.08 On February 29, 2020, the Company signed a consulting agreement with Mark Allen to provide Management services related to the SUDS field. The compensation related terms included the issuance of 250,000 shares of Common Stock. The shares were not issued and earned until December 15, 2020. On September 1, 2020, the Company entered into an employment agreement with Mark Allen, to serve as President for a period of six months (with monthly extensions). The President was to be paid a salary of $ 15,000 2,000,000 1,000,000 1,000,000 1,000,000 0.08 equally vesting over 24 months 36 On December 15, 2020, President Mark Allen exercised warrants to purchase 1,650,000 69,375 0.04 On December 22, 2020, prior CFO Tariq Chaudhary was issued 500,000 77,500 0.15 The common stock is currently not actively traded because of SEC Rule 15c2-11. Warrants Continuity of the Company’s common stock purchase warrants issued and outstanding is as follows: SCHEDULE OF COMMON STOCK PURCHASE WARRANTS ISSUED AND OUTSTANDING Warrants Weighted average exercise price Outstanding at year ended December 31, 2018 51,066,864 0.20 Granted 12,250,000 0.15 Exercised (125,000 ) 0.09 Expired (6,148,028 ) 0.25 Outstanding at year ended December 31, 2019 57,043,836 $ 0.14 Granted 18,650,000 0.15 Exercised (1,650,000 ) 0.08 Expired (33,279,170 ) 0.19 Outstanding at year ended December 31, 2020 40,764,666 0.13 As of December 31, 2020, the weighted-average remaining contractual life of warrants outstanding was 1.39 1.04 As of December 31, 2020, the intrinsic value of warrants outstanding is $ 0 8,256 The table below summarizes warrant issuances during the years ended December 31, 2020 and 2019: SCHEDULE OF WARRANTS ISSUANCE DURING PERIOD Year ended December 31, 2020 2019 Warrants granted: Board of directors and advisory board service 5,250,000 7,000,000 Private placements 3,750,000 Pursuant to employment agreements 1,000,000 — Pursuant to financing arrangements 1,000,000 1,500,000 Pursuant to consulting agreements 250,000 — Pursuant to loan agreements 11,150,000 — Total 18,650,000 12,250,000 Warrants granted in the years ended December 31, 2020 and 2019 were valued using the Black Scholes Option Pricing Model with the range of assumptions outlined below. Expected life was determined based on historical exercise data of the Company. SCHEDULE OF FAIR VALUE OF ASSUMPTION December 31, 2020 December 31, 2019 Risk-free interest rate 1.65 2.38 % 1.94 2.39 % Expected life 1.0 3.0 1.0 3.0 Expected dividend rate 0 % 0 % Expected volatility 240 274 % 240 283 % On October 30, 2020, a third party debtor was issued warrants to purchase 5,000,000 shares of common stock at an exercise price of $ 0.05 per share. The warrants have a 3 year expiration date. The warrants were issued in exchange of an agreement to extend a debt principal payment deadline. The fair value of the warrants is calculated using the Black Sholes Option Pricing Model and recorded as a debt discount. See Note 7 for more details. |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 12 Months Ended |
Dec. 31, 2020 | |
Related Party Transactions [Abstract] | |
RELATED PARTY TRANSACTIONS | NOTE 11. RELATED PARTY TRANSACTIONS On August 21, 2019, Jovian, a related party, purchased 4 units of the debt private placement with gross proceeds of $ 50,000 625,000 1,250,000 0.08 62,066 On August 21, 2019, Joel Oppenheim, a related party in 2019, purchased 4 units of the debt private placement with gross proceeds of $ 50,000 625,000 1,250,000 0.08 62,066 On August 21, 2019, American Resources Offshore, Inc., a related party, purchased 2 units of the debt private placement with gross proceeds of $ 25,000 312,500 625,000 0.08 31,033 On January 20, 2020, a related party, purchased 1 unit of the debt private placement with gross proceeds of $ 12,500 156,250 312,500 0.08 On May 29, 2020, Petrolia Energy Corporation acquired a 50 % working interest in approximately 28,000 acres located in the Utikuma Lake area in Alberta, Canada. The property is an oil-weighted asset currently producing approximately 500 bpd of light oil. The working interest was acquired from Blue Sky Resources Ltd. in an affiliated party transaction as Zel C. Khan, the Company’s former Chief Executive Officer, is related to the ownership of Blue Sky. Blue Sky acquired a 100 % working interest in the Canadian Property from Vermilion Energy Inc. via Vermilion’s subsidiary Vermilion Resources. The effective date of the acquisition was May 1, 2020. The total purchase price of the property was $ 2,000,000 (CAD), with $ 1,000,000 of that total due initially. The additional $ 1,000,000 At the time WTI price exceeded $50/bbl, the Company would pay an additional $750,000. In addition, at the time WTI price exceeded $57/bbl the Company would pay an additional $250,000 (for a cumulative contingent total of $ 1,000,000 . Note that WTI crude prices did not exceed those price thresholds until 2021, so the contingent $1,000,000 will not be recorded until 2021. Included in the terms of the agreement, the Company also funded their portion of the Alberta Energy Regulator (“AER”) bond fund requirement ($ 599,851 USD), necessary for the wells to continue in production after the acquisition. Additional funds ($ 385,336 USD) remain in the other current asset balance for future payments to BSR, related to the acquisition. On August 21, 2019, Leo Womack, a related party, purchased 2 units of the debt private placement with gross proceeds of $ 25,000 312,500 625,000 0.08 31,033 On September 1, 2020, the Company entered into an employment agreement with Mark Allen, to serve as President for a period of six months (with monthly extensions). The President was to be paid a salary of $ 15,000 2,000,000 1,000,000 1,000,000 1,000,000 0.08 36 months On December 15, 2020, President Mark Allen exercised warrants to purchase 1,650,000 shares of common stock for cash proceeds of $ 69,375 at an average exercise price of $ 0.04 per share. On December 15, 2020, in accordance with the Mark Allen’s Consulting agreement that was signed prior to the Employment agreement, the Company issued Mr. Allen 250,000 On December 22, 2020, prior CFO Tariq Chaudhary was issued 500,000 77,500 0.15 |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended |
Dec. 31, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | NOTE 12. COMMITMENTS AND CONTINGENCIES Environmental Matters – Office Lease 1,500 As mentioned in Note 6, the Company holds a lease for acreage at SUDS Field from Joel Opeenheim. On August 1, 2017, Mr. Joel Oppenheim provided a Letter of Credit (LOC), which was posted as collateral in order for the Company to issue operating bonds with the State of New Mexico for the operation of Twin Lakes San Andres Unit wells. In exchange for the LOC, the Company issued Mr. Oppenheim 2,000,000 246,000 2,000,000 0.14 |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | NOTE 13. INCOME TAXES There was no provision for income taxes for 2020 and 2019 due to net operating losses and doubt as to the entity’s ability to continue as a going concern resulting in a 100% The provision for income taxes differs from the amount computed by applying the federal statutory income tax rate of 21% 21% SCHEDULE OF INCOME TAX EXPENSES 1 1 Fiscal Year Ended Fiscal Year Ended Income tax (benefit) expense computed at statutory rates $ (2,078,000 ) $ (629,000 ) Non-deductible items 85,000 69,000 Change in statutory, foreign tax, foreign exchange rates and other (2,427,000 ) 172,000 Change in valuation allowance 4,420,000 388,000 Total $ — $ — The significant components of the net deferred tax asset were as follows: SCHEDULE OF DEFERRED TAX ASSETS 2020 2019 December 31, 2020 2019 Deferred tax assets $ Net operating loss carryforwards $ 5,772,000 $ 2,174,000 Asset retirement obligation 679,000 331,000 Oil and gas properties (644,000 ) (430,000 ) Property and equipment 6,000 — Other — — Total deferred tax assets (liabilities) 5,813,000 2,075,000 Less: Valuation allowance (5,813,000 ) (2,075,000 ) Net deferred tax assets (liabilities) $ — $ — A valuation allowance has been established to offset deferred tax assets. The Company’s accumulated net operating losses in the United States were approximately $ 2.2 begin to expire if not utilized beginning in the year 2033 27.5 expire in 2039 The Tax Cuts and Jobs Act was signed into law on December 22, 2017 and reduced the corporate income tax rate from 34% to 21% |
SEGMENT REPORTING
SEGMENT REPORTING | 12 Months Ended |
Dec. 31, 2020 | |
Segment Reporting [Abstract] | |
SEGMENT REPORTING | NOTE 14. SEGMENT REPORTING The Company has a single SCHEDULE OF LONG-LIVED ASSETS Canada United States Total Year ended December 31, 2020 Revenue $ 2,860,324 $ 31,917 $ 2,892,241 Production costs (3,377,055 ) (253,552 ) (3,630,607 ) Depreciation, depletion, amortization and accretion (1,374,611 ) (60,429 ) (1,435,039 ) Results of operations from producing activities $ (1,891,341 ) $ (282,064 ) $ (2,173,405 ) Total long-lived assets $ 1,683,055 $ 4,767,628 $ 5,952,084 Year ended December 31, 2019 Revenue $ 2,827,877 $ 88,857 $ 2,916,734 Production costs (3,021,805 ) (365,294 ) (3,387,099 ) Depreciation, depletion, amortization and accretion (1,004,832 ) (32,187 ) (1,037,019 ) Results of operations from producing activities $ (1,198,760 ) $ (308,624 ) $ (1,507,384 ) Total long-lived assets $ 1,104,458 $ 10,346,630 $ 11,451,088 The Company’s revenues are derived from the following major customers: SCHEDULE OF REVENUES December 31, 2020 December 31, 2019 Customer A $ 2,860,324 $ 2,827,877 Customer B 31,917 88,857 Other customers — — Total revenues $ 2,892,241 $ 2,916,734 |
SUPPLEMENTAL INFORMATION RELATI
SUPPLEMENTAL INFORMATION RELATING TO OIL AND GAS PRODUCING ACTIVITIES (UNAUDITED) | 12 Months Ended |
Dec. 31, 2020 | |
Extractive Industries [Abstract] | |
SUPPLEMENTAL INFORMATION RELATING TO OIL AND GAS PRODUCING ACTIVITIES (UNAUDITED) | NOTE 15. SUPPLEMENTAL INFORMATION RELATING TO OIL AND GAS PRODUCING ACTIVITIES (UNAUDITED) Costs Incurred in Oil and Gas Property Acquisition, Exploration and Development Amounts reported as costs incurred include both capitalized costs and costs charged to expense during the year for oil and gas property acquisition, exploration and development activities. Costs incurred also include new ARO established in the current year, as well as increases or decreases to the ARO resulting from changes to cost estimates during the year. Exploration costs presented below include the costs of drilling and equipping successful exploration wells, as well as dry hole costs, leasehold impairments, geological and geophysical expenses, and the costs of retaining undeveloped leaseholds. Development costs include the costs of drilling and equipping development wells, and construction of related production facilities. In 2019, the Company did not make any acquisitions or purchase any working interests. In 2020, the Company purchased 50% working interest in the Utikuma field in Alberta, Canada for an aggregate purchase price of $ 678,765 906,146 SCHEDULE OF COSTS INCURRED IN OIL AND GAS PROPERTY ACQUISITION, EXPLORATION AND DEVELOPMENT 1 1 Fiscal Year Ended 2020 Fiscal Year Ended 2019 Property acquisitions $ 678,765 $ — Unevaluated — — Evaluated — — Exploration — — Development — — Total costs incurred $ 678,765 $ — Capitalized costs Capitalized costs include the cost of properties, equipment and facilities for oil and natural-gas producing activities, excluding any asset retirement obligations. Capitalized costs for proved properties include costs for oil and natural-gas leaseholds where proved reserves have been identified, development wells, and related equipment and facilities, including development wells in progress. 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. SCHEDULE OF CAPITALIZED COSTS IN OIL AND GAS PROPERTY ACQUISITION, EXPLORATION AND DEVELOPMENT 1 1 December 31, 2020 December 31, 2019 Capitalized costs: Unevaluated properties $ — $ — Evaluated properties 6,456,367 11,400,285 Gross capitalized costs 6,456,367 11,400,284 Less: Accumulated DD&A (2,693,300 ) (1,520,527 ) Net capitalized costs $ 3,763,067 $ 9,879,758 Oil and Gas Reserve Information MKM Engineering (“MKM”), an independent engineering firm, prepared the estimates of the proved reserves, future production, and income attributable to the Chaves County, New Mexico and Creek County, Oklahoma and Canadian property leasehold interests as of December 31, 2020 and the estimates of the proved reserves, future production, and income attributable to the Milam County, Texas, Chaves County, New Mexico and Creek County, Oklahoma leasehold interests as of December 31, 2017. The estimated proved net recoverable reserves presented below include only those quantities that were expected to be commercially recoverable at prices and costs in effect at the balance sheet dates under the then existing regulatory practices and with conventional equipment and operating methods. Proved Developed Reserves represent only those reserves estimated to be recovered through existing wells. Proved Undeveloped Reserves include those reserves that may be recovered from new wells on undrilled acreage or from existing wells on which a relatively major expenditure for recompletion or secondary recovery operations is required. All of the Company’s Proved Reserves are located onshore in the continental United States of America and Canada. 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. SCHEDULE OF PROVED OIL AND GAS RESERVES Oil (Bbls) December 31, 2018 1,894,180 Revisions of prior estimates (11,217 ) Purchases of reserves in place — Disposition of mineral in place — Production (82,506 ) December 31, 2019 1,800,457 Revisions of prior estimates (860,450 ) Purchases of reserves in place 466,800 Disposition of mineral in place — Production (95,135 ) December 31, 2020 1,311,672 SCHEDULE OF PROVED DEVELOPED AND UNDEVELOPED RESERVES December 31, 2020 December 31, 2019 Estimated quantities of proved developed reserves – Oil (Bbls) 1,245,512 1,668,437 Estimated quantities of proved undeveloped reserves – Oil (Bbls) 66,160 112,020 Proved developed and proved undeveloped reserves decreased from December 31, 2019 to December 31, 2020, primarily due the forfeiture of wells in New Mexico, production and revision of prior estimates, partially offset by the acquisition of the Canadian Properties. 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 reserve Oil (bbls) December 31, 2019 1,688,439 Acquired reserves 466,800 Disposition of reserves — Revision of prior estimates (827,234 ) Production (95,135 ) December 31, 2020 1,245,512 Proved undeveloped reserves Oil (bbls) December 31, 2019 112,020 Acquired reserves Revisions to prior estimates (45,860 ) December 31, 2020 66,160 Standardized Measure of Discounted Future Net Cash Flows The Standardized Measure related to proved oil and gas reserves is summarized below. Future cash inflows were computed by applying a twelve-month average of the first day of the month prices to estimated future production, less estimated future expenditures (based on year end costs) to be incurred in developing and producing the proved reserves, less estimated future income tax expense. Future income tax expenses are calculated by applying appropriate year-end tax rates to future pretax net cash flows, less the tax basis of properties involved. Future net cash flows are discounted at a rate of 10% 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. SCHEDULE OF STANDARDIZED MEASURE OF DISCOUNTED FUTURE NET CASH FLOWS 1 2 December 31, December 31, Future cash inflows $ 47,647,500 $ 95,308,120 Future production costs (25,203,830 ) (30,349,800 ) Future development costs (2,148,510 ) (2,051,730 ) Future income taxes — — Future net cash flows 20,295,160 62,906,590 Discount of future net cash flows at 10% (12,339,240 ) (37,081,860 ) Standardized measure of discounted future net cash flows $ 7,956,920 $ 25,824,730 Changes in standardized measure of discounted future cash flows SCHEDULE OF CHANGES IN STANDARDIZED MEASURE OF DISCOUNTED FUTURE CASH FLOWS 1 2 December 31, 2020 December 31, 2019 Beginning of year $ 25,824,730 $ 23,638,725 Sales and transfers of oil & gas produced, net of production costs (735,300 ) (1,514,335 ) Net changes in prices and production costs (249,508 ) 5,780,704 Changes in estimated future development costs 96,780 (676,141 ) Acquisitions/dispositions of minerals in place, net of production costs — — Revision of previous estimates (14,938,598 ) (878,772 ) Change in discount 436,490 1,386,793 Change in production rate or other (2,477,674 ) (1,912,244 ) End of year $ 7,956,920 $ 25,824,730 |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 12 Months Ended |
Dec. 31, 2020 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | NOTE 16. SUBSEQUENT EVENTS On January 25, 2021, the Company signed an Executive Salary Payable Agreement with Zel Khan as the Chief Executive Officer. All of Mr. Khan’s previous salary obligation will be satisfied by the issuance of 1,992,272 Paul Deputy was reinstated Interim Chief Financial Officer, signed a Settlement and Mutual Release Agreement. In exchange for releasing the Company for any current, outstanding payroll and/or service-related liability at January 29, 2021, the Company agreed to pay Mr. Deputy $ 50,000 250,000 Joel Oppenheim, former Director, was issued 316,491 On March 30, 2021, Mark Allen converted $ 30,000 333,333 0.09 On March 30, 2021, Mark Allen converted a defaulted secured loan of $ 270,000 0.05 5,400,000 5,400,000 0.08 Effective September 1, 2021, the Board accepted Zel Khan’s resignation as Chief Executive Officer (“CEO”). See Form 8-K filing reference in Exhibits section below Effective September 1, 2021, Mark M Allen was promoted from President to CEO. See Form 8-K reference in Exhibits section below. |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Dec. 31, 2020 | |
Accounting Policies [Abstract] | |
Principles of consolidation | Principles of consolidation The consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries, Askarii Resources and Petrolia Canada Corporation. All significant intercompany balances and transactions have been eliminated upon consolidation. The Company accounts for its investment in companies in which it has significant influence by the equity method. The Company’s proportionate share of earnings is included in earnings and added to or deducted from the cost of the investment. |
Foreign currency translation | Foreign currency translation The functional and reporting currency of the Company is the United States dollar. The functional currencies of the Company’s wholly-owned subsidiaries, Askarii Resources and Petrolia Canada Corporation, are the United States dollar and the Canadian dollar, respectively. Transactions involving foreign currencies are converted into the Company’s functional currency using the exchange rates in effect at the time of the transactions. At the balance sheet date, monetary assets and liabilities that are denominated in currencies other than the Company’s functional currency are translated using exchange rates at that date. Exchange gains and losses are included in net earnings. On consolidation, Petrolia Canada Corporation’s income statement amounts are translated at average exchange rates for the year, while the assets and liabilities are translated at year-end exchange rates. Translation adjustments are accumulated as a separate component of stockholders’ equity in other comprehensive income. |
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 depreciation of furniture, equipment and software, asset retirement obligations (“AROs”) (Note 9), income taxes (Note 13) and the estimate of proved oil and gas reserves and related present value estimates of future net cash flows therefrom (Note 15). |
Cash and cash equivalents | Cash and cash equivalents The Company considers all highly liquid instruments purchased with an original maturity date of three months or less to be cash equivalents. At December 31, 2020, the Company did no |
Receivables and allowance for doubtful accounts | Receivables and allowance for doubtful accounts Oil revenues receivable do not bear any interest. These receivables are primarily comprised of joint interest billings. Management regularly reviews collectability and establishes or adjusts an allowance for uncollectible amounts as necessary using the specific identification method. Account balances are charged off against the allowance after all means of collection have been exhausted and the potential for recovery is considered remote. Management has determined that a reserve for uncollectible amounts was not required in the periods presented. |
Oil and gas properties | Oil and gas properties The Company follows the full cost accounting method to account for oil and natural gas properties, whereby costs incurred in the acquisition, exploration and development of oil and gas reserves are capitalized. Such costs include lease acquisition, geological and geophysical activities, rentals on nonproducing leases, drilling, completing and equipping of oil and gas wells and administrative costs directly attributable to those activities and asset retirement costs. Disposition of oil and gas properties are accounted for as a reduction of capitalized costs, with no gain or loss recognized unless such adjustment would significantly alter the relationship between capital costs and proved reserves of oil and gas, in which case the gain or loss is recognized to operations. 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 un-weighted 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. 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. |
Furniture, equipment and software | Furniture, equipment and software Furniture, equipment, and software are stated at cost, less accumulated depreciation. Depreciation is computed using the straight-line method over the estimated useful lives of the related asset, generally three five years |
Derivative financial instruments | Derivative financial instruments The Company’s derivative financial instruments consist of warrants with an exercise price denominated in a currency other than the Company’s functional currency. These derivative financial instruments are measured at their fair value at the end of each reporting period. Changes in fair value are recorded in net income. |
Asset retirement obligations | Asset retirement obligations The Company records a liability for Asset Retirement Obligations (“AROs”) associated with its oil and gas wells when those assets are placed in service. The corresponding cost is capitalized as an asset and included in the carrying amount of oil and gas properties and is depleted over the useful life of the properties. Subsequently, the ARO liability is accreted to its then-present value. 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 Costs incurred in connection with the issuance of long-term debt are presented as a direct deduction from the carrying value of the related debt and amortized over the term of the related debt. |
Revenue recognition | Revenue recognition In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2014-09, Revenue from Contracts with Customers Revenue from contracts with customers The Company recognizes revenue when it satisfies a performance obligation by transferring control over a product to a customer. Revenue is measured based on the consideration the Company expects to receive in exchange for those products. Performance obligations and significant judgments The Company sells oil and natural gas products in the United States through a single reportable segment. The Company enters into contracts that generally include one type of distinct product in variable quantities and priced based on a specific index related to the type of product. The oil and natural gas is typically sold in an unprocessed state to processors and other third parties for processing and sale to customers. The Company recognizes revenue at a point in time when control of the oil or natural gas passes to the customer or processor, as applicable, discussed below. For oil sales, control is typically transferred to the customer upon receipt at the wellhead or a contractually agreed upon delivery point. Under our natural gas contracts with processors, control transfers upon delivery at the wellhead or the inlet of the processing entity’s system. For our other natural gas contracts, control transfers upon delivery to the inlet or to a contractually agreed upon delivery point. In the cases where the Company sells to a processor, management has determined that the Company is the principal in the arrangement and the processors are customers. The Company recognizes the revenue in these contracts based on the net proceeds received from the processor. Transfer of control drives the presentation of transportation and gathering costs within the accompanying consolidated statements of operations. Transportation and gathering costs incurred prior to control transfer are recorded within the transportation and gathering expense line item on the accompanying consolidated statements of operations, while transportation and gathering costs incurred subsequent to control transfer are recorded as a reduction to the related revenue. A portion of our product sales are short-term in nature. For those contracts, the Company uses the practical expedient in Accounting Standards Codification (“ASC”) 606-10-50-14 exempting us from disclosure of the transaction price allocated to remaining performance obligations if the performance obligation is part of a contract that has an original expected duration of one year or less. For our product sales that have a contract term greater than one year, the Company has utilized the practical expedient in ASC 606-10-50-14(a) which states the Company is not required to disclose the transaction price allocated to remaining performance obligations if the variable consideration is allocated entirely to an unsatisfied performance obligation. Under these sales contracts, each unit of product represents a separate performance obligation; therefore, future volumes are unsatisfied, and disclosure of the transaction price allocated to remaining performance obligations is not required. The Company has no unsatisfied performance obligations at the end of each reporting period. Management does not believe that significant judgments are required with respect to the determination of the transaction price, including any variable consideration identified. There is a low level of uncertainty due to the precision of measurement and use of index-based pricing with predictable differentials. Additionally, any variable consideration identified is not constrained. |
Stock-based compensation | Stock-based compensation The Company accounts for stock-based compensation to employees in accordance with FASB ASC 718. Stock-based compensation |
Income taxes | Income taxes Income taxes are accounted for pursuant to ASC 740, 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 no The Company is required to file federal income tax returns in the United States and Canada, and in various state and local jurisdictions. The Company’s tax returns 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. |
Earnings (loss) per share | Earnings (loss) per share Basic earnings (loss) per share has been calculated based on the weighted-average number of common shares outstanding. The treasury stock method is used to compute the dilutive effect of the Company’s share-based compensation awards. Under this method, the incremental number of shares used in computing diluted earnings per share (“EPS”) is the difference between the number of shares assumed issued and purchased using assumed proceeds. Diluted EPS amounts would include the effect of outstanding stock options, warrants, and other convertible securities if including such potential shares of common stock is dilutive. Basic and diluted earnings per share are the same in all periods presented as all outstanding instruments are anti-dilutive. |
Concentration of credit risk | Concentration of credit risk The Company is subject to credit risk resulting from the concentration of its oil receivables with significant purchasers. Two purchasers accounted for all of the Company’s oil sales revenues for 2019 and 2020. The Company does not require collateral. While the Company believes its recorded receivables will be collected, in the event of default the Company would follow normal collection procedures. The Company does not believe the loss of a purchaser would materially impact its operating results as oil is a fungible product with a well-established market and numerous purchasers. 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 Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability (i.e., the “exit price”) in an orderly transaction between market participants at the measurement date. The hierarchy is broken down into three levels based on the observability of inputs as follows: ● Level 1 — Valuations based on quoted prices in active markets for identical assets or liabilities that the Company has the ability to access. Valuation adjustments and block discounts are not applied to Level 1 instruments. Since valuations are based on quoted prices that are readily and regularly available in an active market, valuation of these products does not entail a significant degree of judgment; ● Level 2 — Valuations based on one or more quoted prices in markets that are not active or for which all significant inputs are observable, either directly or indirectly; and ● Level 3 — Valuations based on inputs that are unobservable and significant to the overall fair value measurement. Our derivative liabilities are measured at fair value on a recurring basis and estimated as follows: SCHEDULE OF DERIVATIVE LIABILITIES MEASURED AT FAIR VALUE ON RECURRING BASIS December 31, 2020 Level 1 Level 2 Level 3 Total Derivative liabilities — 183,798 183,798 ARO liabilities — — 3,624,133 3,624,133 December 31, 2019 Derivative liabilities — 24,509 24,509 ARO liabilities — — 1,723,364 1,723,364 The carrying value of cash, accounts receivable, other current assets, accounts payable, accounts payable – related parties, accrued liabilities and accrued liabilities – related parties, as reflected in the consolidated balance sheets, approximate fair value, due to the short-term maturity of these instruments. The carrying value of notes payable approximates their fair value due to immaterial changes in market interest rates and the Company’s credit risk since issuance of the instruments or due to their short-term nature. Derivative liabilities are remeasured at fair value every reporting period. Our derivative liabilities are considered level 3 financial instruments. |
Related parties | Related parties The Audit Committee approves all material related party transactions. The Audit Committee is provided with the details of each new, existing or proposed related party transaction, including the terms of the transaction, the business purpose of the transaction, and the benefits to the Company and the relevant related party. In determining whether to approve a related party transaction, the following factors are considered: (1) if the terms are fair to the Company, (2) if there are business reasons to enter into the transaction, (3) if the transaction would impair independence of an outside Director, or (4) if the transaction would present an improper conflict of interest for any Director or executive officer. Any member of the Audit Committee who has an interest in the transaction will abstain from voting on the approval of the related party transaction. |
Business combinations | Business combinations In January 2017, the FASB issued ASU 2017-01 Business Combinations Clarifying the Definition of a Business |
Reclassifications | Reclassifications Certain amounts previously presented for prior periods have been reclassified to conform to the current presentation. The reclassifications had no effect on net loss, working capital or equity previously reported. |
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 other than those discussed below. Leases In February 2016, the FASB issued ASU 2016-02, “Leases” Under ASU 2016-02, each lease agreement will be evaluated to identify the lease components and non-lease components at lease inception. The total consideration in the lease agreement will be allocated to the lease and non-lease components based on their relative standalone selling prices. In July 2018, the FASB issued ASU 2018-11, “Leases – Targeted Improvements” The Company adopted ASU 2016-02 on January 1, 2019 using the modified retrospective method, whereby a cumulative effect adjustment will be made as of that day with no retrospective effect. The Company applied the package of practical expedients such that for any expired or existing leases it will not reassess lease classification, initial direct costs or whether any expired or existing contracts are or contain leases. Note that the Company had no outstanding leases as of December 31, 2019. In 2020, we entered a lease with a related party, that is accounted for and disclosed using the framework of ASC 842. |
SUMMARY OF SIGNIFICANT ACCOUN_3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Accounting Policies [Abstract] | |
SCHEDULE OF DERIVATIVE LIABILITIES MEASURED AT FAIR VALUE ON RECURRING BASIS | Our derivative liabilities are measured at fair value on a recurring basis and estimated as follows: SCHEDULE OF DERIVATIVE LIABILITIES MEASURED AT FAIR VALUE ON RECURRING BASIS December 31, 2020 Level 1 Level 2 Level 3 Total Derivative liabilities — 183,798 183,798 ARO liabilities — — 3,624,133 3,624,133 December 31, 2019 Derivative liabilities — 24,509 24,509 ARO liabilities — — 1,723,364 1,723,364 |
EVALUATED PROPERTIES (Tables)
EVALUATED PROPERTIES (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Disclosure Evaluated Properties Abstract | |
SCHEDULE OF ACQUIRED AND CURRENT PROPERTIES | The acquired properties and current properties can be summarized as follows: SCHEDULE OF ACQUIRED AND CURRENT PROPERTIES Cost Canadian properties US properties Total As of December 31, 2018 2,443,747 10,350,538 12,794,285 Additions — — — Dispositions — — — Asset retirement cost additions — — — Foreign currency translations 119,687 — 119,687 As of December 31, 2019 $ 2,563,434 $ 10,350,538 $ 12,913,972 Additions 678,765 — 678,765 Dispositions — 5,648,904 ) (6,255,103 ) Impairment of oil and gas properties (396,922 ) (396,922 ) Asset retirement cost additions 906,146 — 1,512,256 Foreign currency translation 166,459 — 166,459 As of December 31, 2020 4,314,804 4,304,622 8,619,427 Accumulated depletion As of December 31, 2018 413,657 61,551 475,208 Dispositions — — — Impairment of oil and gas properties — — — Depletion 1,004,832 — 1,004,832 Foreign currency translations 40,487 — 40,487 As of December 31, 2019 1,458,976 61,551 1,520,527 Dispositions — — — Depletion 1,115,595 — 1,115,595 Foreign currency translation 57,178 — 57,178 As of December 31, 2020 $ 2,631,749 $ 61,551 $ 2,693,300 Net book value as at December 31, 2020 $ 1,683,055 $ 4,243,071 $ 5,926,126 Net book value as at December 31, 2019 $ 1,104,458 $ 10,288,987 $ 11,393,445 |
NOTES PAYABLE (Tables)
NOTES PAYABLE (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Debt Disclosure [Abstract] | |
SCHEDULE OF NOTES PAYABLE | SCHEDULE OF NOTES PAYABLE Interest rate Date of maturity December 31, 2020 December 31, 2019 Truck loan (ii) 5.49 % January 20, 2022 9,916 16,141 Credit note I (iii) 12 % May 11, 2021 800,000 800,000 Credit note II (iv) 12 % October 17, 2019 346,038 346,038 Credit note III (v) 15 % April 25, 2021 750,000 750,000 Discount on credit note III — — (5,976 ) (25,101 ) Credit note VI (vi) 10 % January 01, 2020 937,019 — Discount on credit note VI (285,768 ) — Lee Lytton (i) On demand 3,500 — Joel Oppenheim (vii) 10 % On demand 161,900 — Joel Oppenheim (vii) 10 % On demand 15,000 — Joel Oppenheim (vii) 10 % October 17, 2018 240,000 — Origin Bank (PPP loan) 56,680 — Mark Allen (viii) 12 % June 30, 2021 — 200,000 M. Hortwitz 10 % October 14, 2016 10,000 10,000 3,038,309 2,097,078 Current portion: Truck loan 9,343 7,502 Credit note I 800,000 90,000 Credit note II 346,038 346,038 Credit note III 744,023 — Credit note VI 651,251 — M. Hortwitz 10,000 10,000 Lee Lytton 3,500 — Joel Oppenheim 176,900 — Joes Oppenheim 240,000 — Mark Allen — 200,000 Origin Bank (PPP Loan) 56,680 — Current portion of notes payable $ 3,037,737 $ 653,540 (i) Note needs to be settled with the estate of Lee Lytton. (ii) On January 6, 2017, the Company purchased a truck and entered into an installment note in the amount of $ 35,677 5.49 683 (iii) On May 9, 2018, Bow entered into an Amended and Restated Loan Agreement with a third party. The Loan Agreement increased by $ 800,000 1,530,000 12 19 10,000 710,000 May 11, 2021 The additional $ 800,000 In order to induce the Lender to enter into the Loan Agreement, the Company agreed to issue the Lender 500,000 2,320,000 320,000 0.10 May 15, 2021 500,000 0.12 May 15, 2021 1,500,000 0.10 May 15, 2020 The fair value of the 500,000 47,500 30,012 182,650 260,162 Upon the disposition of Bow pursuant to the Exchange Agreement, a total of $ 730,000 (iv) On September 17, 2018, the Company entered into a loan agreement (LOC) with a third party for $ 200,000 500,000 3 3.5 6,000 3 During 2019, the LOC balance increased by $ 150,000 346,038 157,753 188,285 (v) On April 25, 2019, the Company entered into a promissory note (an Acquisition Note”) with a third party in the amount of $ 750,000 15% April 25, 2021 500,000 0.012 5,976 50% 100% (vi) On January 2, 2020, the Company entered into a loan agreement in the amount of $ 1,000,000 120,000 10% June 30, 2020 5,000,000 0.10 January 2, 2023 266,674 11,111 (vii) Various Shareholder Advances provided by Mr. Oppenheim during 2018 and 2019. There were no formal documents drawn. Interest rates were applied based on other similar loan agreements entered into by the Company during that period. On February 22, 2021, Mr. Oppenheimer combined the loans, which now bear an interest rate of 10% December 31, 2021 During 2019, the Company entered into a loan agreement in the amount of $ 200,000 12 June 30, 2021 2,500,000 0.08 10,000,000 0.10 On January 15, 2019, the Company entered into a loan agreement in the amount of $ 125,000 with a third party. The note bore interest at an interest rate of $ 4 % per annum and was to mature on January 15, 2020. On September 30, 2019, Jovian Petroleum Corporation reimbursed the $ 125,000 to the third party. Consequently, the $125,000 debt balances was transferred into the Jovian LOC and is now included in the $ 362,583 at December 31, 2020 (see Note 7: Related Party Notes Payable) On April 23, 2020, the Company was granted a $ 56,680 1 2 (viii) Mark Allen became a related party in 2020, therefore his note has been moved to that schedule. |
SCHEDULE OF FUTURE MINIMUM REPAYMENTS OF NOTES PAYABLE | The following is a schedule of future minimum repayments of notes payable as of December 31: SCHEDULE OF FUTURE MINIMUM REPAYMENTS OF NOTES PAYABLE 2021 3,037,737 2022 573 Thereafter — Total $ 3,038,310 |
LEASES (Tables)
LEASES (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Leases | |
SCHEDULE OF FINANCIAL INFORMATION LEASE | The tables below present financial information associated with our lease. SCHEDULE OF FINANCIAL INFORMATION LEASE December 31, December 31, Balance Sheet Classification 2020 2019 Right-of-use assets Other long-term assets 23,145 - Current lease liabilities Other current liabilities 13,107 - Non-current lease liabilities Other long-term liabilities 13,909 - |
SCHEDULE OF MATURITIES LEASE LIABILITY | As of December 31, 2020, our maturities of our lease liability are as follows: SCHEDULE OF MATURITIES LEASE LIABILITY 2021 $ 14,997 Total $ 14,997 Less: Imputed interest (1,088 ) Present value of lease liabilities $ 13,909 |
RELATED PARTY NOTES PAYABLE (Ta
RELATED PARTY NOTES PAYABLE (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Related Party Notes Payable | |
SCHEDULE OF RELATED PARTY NOTES PAYABLE | The chart below summarizes the related party Notes Payable as of December 31, 2020 and 2019. SCHEDULE OF RELATED PARTY NOTES PAYABLE Interest rate Date of maturity December 31, 2020 December 31, 2019 Lee Lytton (i) — On demand — 3,500 Quinten Beasley 10 % October 14, 2016 5,000 10,000 Joel Oppenheim — On demand — 217,208 Joel Oppenheim 12 % On demand — 15,000 Jovian Petroleum Corporation (ii) 3.5 % December 31, 2021 188,285 362,583 Ivar Siem (vi) 12 % On demand 200,000 100,000 Ivar Siem (vi) No interest On demand 50,000 50,000 Joel Oppenheim (iii) 12 % December 31, 2019 — 200,000 Mark Allen–SUDS Development (ix) 9 % September 2, 2021 55,000 — Mark Allen-SUDS Development (vii) 10 % June 30, 2021 135,000 — Mark Allen 12 % June 30, 2020 200,000 — Mark Allen (iv) 10 % June 30, 2020 100,000 — Discount on note (11,536 ) — Mark Allen (v) 10 % June 30, 2020 125,000 — Discount on note (11,420 ) — $ 1,035,329 $ 983,291 Note: Mark Allen’s notes were not included in related party notes payable at December 31, 2019 because he was not appointed as an officer of the Company until September 1, 2020. In 2020 his notes are reported in related party notes payable. (i) Not used (ii) On February 9, 2018, the Company entered into a Revolving Line of Credit Agreement (“LOC”) for $ 200,000 500,000 25 3.5 On January 20, 2020, Jovian Petroleum, purchased 1 unit of debt private placement with gross proceeds of $ 12,500 156,250 12,500 0.08 (iii) Joel Oppenheim was no longer a related party on December 31, 2020. This note is now reflected in Note 5 (Notes Payable). (iv) On January 3, 2020, the Company entered into a loan agreement in the amount of $ 100,000 10% June 1, 2020 400,000 0.10 January 3, 2023 31,946 1,775 (v) On February 14, 2020, the Company entered into a loan agreement in the amount of $ 125,000 10 June 1, 2020 750,000 0.10 February 14, 2022 38,249 1,903 (vi) On August 15, 2019, the Company entered into a loan agreement in the amount of $ 75,000 12 On December 4, 2019, the Company entered into a loan agreement in the amount of $ 100,000 12 1,250,000 0.08 5,000,000 0.10 On February 28, 2020, the Company entered into a $ 50,000 0 200,000 0.10 March 1, 2022 (vii) On January 6, 2020, the Company entered into a consulting agreement, with Mark M Allen, that included a funding clause where the Company borrowed $ 135,000 62,000 45,000 28,000 10 June 30, 2020 (viii) During 2019, the Company entered into a loan agreement in the amount of $ 200,000 12 2,500,000 0.08 10,000,000 0.10 (ix) On April 15, 2020, the Company entered into a consulting agreement, with Mark M Allen, that included a funding clause where the Company borrowed $ 55,000 9 August 15, 2021 |
SCHEDULE OF FUTURE MINIMUM REPAYMENTS OF RELATED PARTY NOTES PAYABLE | The following is a schedule of future minimum repayments of related party notes payable as of December 31, 2020: SCHEDULE OF FUTURE MINIMUM REPAYMENTS OF RELATED PARTY NOTES PAYABLE 2021 $ 1,035,329 Thereafter — Total $ 1,035,329 |
DERIVATIVE FINANCIAL INSTRUME_2
DERIVATIVE FINANCIAL INSTRUMENTS (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Investments, All Other Investments [Abstract] | |
SCHEDULE OF DERIVATIVE LIABILITIES | A summary of the activity of the derivative liabilities is shown below: SCHEDULE OF DERIVATIVE LIABILITIES Balance, December 31, 2019 $ 24,509 Additions 236,611 Fair value adjustments (77,322 ) As of December 31, 2020 $ 183,798 |
SCHEDULE OF DERIVATIVE LIABILITY OF FAIR VALUE ASSUMPTION | SCHEDULE OF DERIVATIVE LIABILITY OF FAIR VALUE ASSUMPTION December 31, 2020 Risk-free interest rate 1.58 2.27 % Expected life 1.4 2.1 Expected dividend rate 0 % Expected volatility 208 240 % |
ASSET RETIREMENT OBLIGATIONS (T
ASSET RETIREMENT OBLIGATIONS (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Asset Retirement Obligation Disclosure [Abstract] | |
SCHEDULE OF FAIR VALUE OF ASSET RETIREMENT OBLIGATIONS | SCHEDULE OF FAIR VALUE OF ASSET RETIREMENT OBLIGATIONS December 31, 2020 Inflation rate 1.92 2.15 % Estimated asset life 12 22 |
SCHEDULE OF ASSET RETIREMENT OBLIGATIONS | SCHEDULE OF ASSET RETIREMENT OBLIGATIONS Canadian properties United States properties Total Asset retirement obligations, December 31, 2018 $ 1,258,399 $ 251,223 $ 1,509,622 Additions — — — Accretion expense 123,474 26,150 149,624 Disposition — — — Foreign currency translation 64,118 — 64,118 Asset retirement obligations, December 31, 2019 1,445,991 277,373 1,723,364 Acquisition of Canadian property - Utikuma 906,146 — 906,146 Plugging liability at Twin Lakes 606,109 606,109 Accretion expense 259,016 28,742 287,758 Disposition — — — Foreign currency translation 100,756 — 100,756 Asset retirement obligations, December 31, 2020 $ 2,711,909 $ 912,225 $ 3,624,133 |
EQUITY (Tables)
EQUITY (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Equity [Abstract] | |
SCHEDULE OF COMMON STOCK PURCHASE WARRANTS ISSUED AND OUTSTANDING | Continuity of the Company’s common stock purchase warrants issued and outstanding is as follows: SCHEDULE OF COMMON STOCK PURCHASE WARRANTS ISSUED AND OUTSTANDING Warrants Weighted average exercise price Outstanding at year ended December 31, 2018 51,066,864 0.20 Granted 12,250,000 0.15 Exercised (125,000 ) 0.09 Expired (6,148,028 ) 0.25 Outstanding at year ended December 31, 2019 57,043,836 $ 0.14 Granted 18,650,000 0.15 Exercised (1,650,000 ) 0.08 Expired (33,279,170 ) 0.19 Outstanding at year ended December 31, 2020 40,764,666 0.13 |
SCHEDULE OF WARRANTS ISSUANCE DURING PERIOD | The table below summarizes warrant issuances during the years ended December 31, 2020 and 2019: SCHEDULE OF WARRANTS ISSUANCE DURING PERIOD Year ended December 31, 2020 2019 Warrants granted: Board of directors and advisory board service 5,250,000 7,000,000 Private placements 3,750,000 Pursuant to employment agreements 1,000,000 — Pursuant to financing arrangements 1,000,000 1,500,000 Pursuant to consulting agreements 250,000 — Pursuant to loan agreements 11,150,000 — Total 18,650,000 12,250,000 |
SCHEDULE OF FAIR VALUE OF ASSUMPTION | Warrants granted in the years ended December 31, 2020 and 2019 were valued using the Black Scholes Option Pricing Model with the range of assumptions outlined below. Expected life was determined based on historical exercise data of the Company. SCHEDULE OF FAIR VALUE OF ASSUMPTION December 31, 2020 December 31, 2019 Risk-free interest rate 1.65 2.38 % 1.94 2.39 % Expected life 1.0 3.0 1.0 3.0 Expected dividend rate 0 % 0 % Expected volatility 240 274 % 240 283 % |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
SCHEDULE OF INCOME TAX EXPENSES | The provision for income taxes differs from the amount computed by applying the federal statutory income tax rate of 21% 21% SCHEDULE OF INCOME TAX EXPENSES 1 1 Fiscal Year Ended Fiscal Year Ended Income tax (benefit) expense computed at statutory rates $ (2,078,000 ) $ (629,000 ) Non-deductible items 85,000 69,000 Change in statutory, foreign tax, foreign exchange rates and other (2,427,000 ) 172,000 Change in valuation allowance 4,420,000 388,000 Total $ — $ — |
SCHEDULE OF DEFERRED TAX ASSETS | The significant components of the net deferred tax asset were as follows: SCHEDULE OF DEFERRED TAX ASSETS 2020 2019 December 31, 2020 2019 Deferred tax assets $ Net operating loss carryforwards $ 5,772,000 $ 2,174,000 Asset retirement obligation 679,000 331,000 Oil and gas properties (644,000 ) (430,000 ) Property and equipment 6,000 — Other — — Total deferred tax assets (liabilities) 5,813,000 2,075,000 Less: Valuation allowance (5,813,000 ) (2,075,000 ) Net deferred tax assets (liabilities) $ — $ — |
SEGMENT REPORTING (Tables)
SEGMENT REPORTING (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Segment Reporting [Abstract] | |
SCHEDULE OF LONG-LIVED ASSETS | SCHEDULE OF LONG-LIVED ASSETS Canada United States Total Year ended December 31, 2020 Revenue $ 2,860,324 $ 31,917 $ 2,892,241 Production costs (3,377,055 ) (253,552 ) (3,630,607 ) Depreciation, depletion, amortization and accretion (1,374,611 ) (60,429 ) (1,435,039 ) Results of operations from producing activities $ (1,891,341 ) $ (282,064 ) $ (2,173,405 ) Total long-lived assets $ 1,683,055 $ 4,767,628 $ 5,952,084 Year ended December 31, 2019 Revenue $ 2,827,877 $ 88,857 $ 2,916,734 Production costs (3,021,805 ) (365,294 ) (3,387,099 ) Depreciation, depletion, amortization and accretion (1,004,832 ) (32,187 ) (1,037,019 ) Results of operations from producing activities $ (1,198,760 ) $ (308,624 ) $ (1,507,384 ) Total long-lived assets $ 1,104,458 $ 10,346,630 $ 11,451,088 |
SCHEDULE OF REVENUES | The Company’s revenues are derived from the following major customers: SCHEDULE OF REVENUES December 31, 2020 December 31, 2019 Customer A $ 2,860,324 $ 2,827,877 Customer B 31,917 88,857 Other customers — — Total revenues $ 2,892,241 $ 2,916,734 |
SUPPLEMENTAL INFORMATION RELA_2
SUPPLEMENTAL INFORMATION RELATING TO OIL AND GAS PRODUCING ACTIVITIES (UNAUDITED) (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Extractive Industries [Abstract] | |
SCHEDULE OF COSTS INCURRED IN OIL AND GAS PROPERTY ACQUISITION, EXPLORATION AND DEVELOPMENT | SCHEDULE OF COSTS INCURRED IN OIL AND GAS PROPERTY ACQUISITION, EXPLORATION AND DEVELOPMENT 1 1 Fiscal Year Ended 2020 Fiscal Year Ended 2019 Property acquisitions $ 678,765 $ — Unevaluated — — Evaluated — — Exploration — — Development — — Total costs incurred $ 678,765 $ — |
SCHEDULE OF CAPITALIZED COSTS IN OIL AND GAS PROPERTY ACQUISITION, EXPLORATION AND DEVELOPMENT | Capitalized costs include the cost of properties, equipment and facilities for oil and natural-gas producing activities, excluding any asset retirement obligations. Capitalized costs for proved properties include costs for oil and natural-gas leaseholds where proved reserves have been identified, development wells, and related equipment and facilities, including development wells in progress. 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. SCHEDULE OF CAPITALIZED COSTS IN OIL AND GAS PROPERTY ACQUISITION, EXPLORATION AND DEVELOPMENT 1 1 December 31, 2020 December 31, 2019 Capitalized costs: Unevaluated properties $ — $ — Evaluated properties 6,456,367 11,400,285 Gross capitalized costs 6,456,367 11,400,284 Less: Accumulated DD&A (2,693,300 ) (1,520,527 ) Net capitalized costs $ 3,763,067 $ 9,879,758 |
SCHEDULE 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. SCHEDULE OF PROVED OIL AND GAS RESERVES Oil (Bbls) December 31, 2018 1,894,180 Revisions of prior estimates (11,217 ) Purchases of reserves in place — Disposition of mineral in place — Production (82,506 ) December 31, 2019 1,800,457 Revisions of prior estimates (860,450 ) Purchases of reserves in place 466,800 Disposition of mineral in place — Production (95,135 ) December 31, 2020 1,311,672 |
SCHEDULE OF PROVED DEVELOPED AND UNDEVELOPED RESERVES | SCHEDULE OF PROVED DEVELOPED AND UNDEVELOPED RESERVES December 31, 2020 December 31, 2019 Estimated quantities of proved developed reserves – Oil (Bbls) 1,245,512 1,668,437 Estimated quantities of proved undeveloped reserves – Oil (Bbls) 66,160 112,020 Proved developed and proved undeveloped reserves decreased from December 31, 2019 to December 31, 2020, primarily due the forfeiture of wells in New Mexico, production and revision of prior estimates, partially offset by the acquisition of the Canadian Properties. 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 reserve Oil (bbls) December 31, 2019 1,688,439 Acquired reserves 466,800 Disposition of reserves — Revision of prior estimates (827,234 ) Production (95,135 ) December 31, 2020 1,245,512 Proved undeveloped reserves Oil (bbls) December 31, 2019 112,020 Acquired reserves Revisions to prior estimates (45,860 ) December 31, 2020 66,160 |
SCHEDULE OF 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. SCHEDULE OF STANDARDIZED MEASURE OF DISCOUNTED FUTURE NET CASH FLOWS 1 2 December 31, December 31, Future cash inflows $ 47,647,500 $ 95,308,120 Future production costs (25,203,830 ) (30,349,800 ) Future development costs (2,148,510 ) (2,051,730 ) Future income taxes — — Future net cash flows 20,295,160 62,906,590 Discount of future net cash flows at 10% (12,339,240 ) (37,081,860 ) Standardized measure of discounted future net cash flows $ 7,956,920 $ 25,824,730 |
SCHEDULE OF CHANGES IN STANDARDIZED MEASURE OF DISCOUNTED FUTURE CASH FLOWS | Changes in standardized measure of discounted future cash flows SCHEDULE OF CHANGES IN STANDARDIZED MEASURE OF DISCOUNTED FUTURE CASH FLOWS 1 2 December 31, 2020 December 31, 2019 Beginning of year $ 25,824,730 $ 23,638,725 Sales and transfers of oil & gas produced, net of production costs (735,300 ) (1,514,335 ) Net changes in prices and production costs (249,508 ) 5,780,704 Changes in estimated future development costs 96,780 (676,141 ) Acquisitions/dispositions of minerals in place, net of production costs — — Revision of previous estimates (14,938,598 ) (878,772 ) Change in discount 436,490 1,386,793 Change in production rate or other (2,477,674 ) (1,912,244 ) End of year $ 7,956,920 $ 25,824,730 |
SCHEDULE OF DERIVATIVE LIABILIT
SCHEDULE OF DERIVATIVE LIABILITIES MEASURED AT FAIR VALUE ON RECURRING BASIS (Details) - USD ($) | Dec. 31, 2020 | Dec. 31, 2019 |
Defined Benefit Plan Disclosure [Line Items] | ||
Derivative liabilities | $ 183,798 | $ 24,509 |
ARO liabilities | 3,624,133 | 1,723,364 |
Fair Value, Inputs, Level 1 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Derivative liabilities | ||
ARO liabilities | ||
Fair Value, Inputs, Level 2 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
ARO liabilities | ||
Fair Value, Inputs, Level 3 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Derivative liabilities | 183,798 | 24,509 |
ARO liabilities | $ 3,624,133 | $ 1,723,364 |
SUMMARY OF SIGNIFICANT ACCOUN_4
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Narrative) - USD ($) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Property, Plant and Equipment [Line Items] | ||
Cash equivalents | $ 0 | |
Unrecognized tax benefits | 0 | $ 0 |
Income tax, interest or penalties | $ 0 | $ 0 |
Furniture, Equipment and Software [Member] | Minimum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Estimated useful life | 3 years | |
Furniture, Equipment and Software [Member] | Maximum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Estimated useful life | 5 years |
SCHEDULE OF ACQUIRED AND CURREN
SCHEDULE OF ACQUIRED AND CURRENT PROPERTIES (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Property, Plant and Equipment [Line Items] | ||
Cost, Beginning balance | $ 12,913,972 | $ 12,794,285 |
Cost, Additions | 678,765 | |
Cost, Disposition | (6,255,103) | |
Cost, Asset retirement cost additions | 1,512,256 | |
Cost, Foreign currency translation | 166,459 | 119,687 |
Cost, Impairment of oil and gas properties | (396,922) | |
Cost, Ending balance | 8,619,427 | 12,913,972 |
Accumulated depletion, Beginning balance | 1,520,527 | 475,208 |
Accumulated depletion, Dispositions | ||
Accumulated depletion, Impairment of oil and gas properties | ||
Accumulated depletion, Depletion | 1,115,595 | 1,004,832 |
Accumulated depletion, Foreign currency translation | 57,178 | 40,487 |
Accumulated depletion, Ending balance | 2,693,300 | 1,520,527 |
Net book value as at ending balance | 5,926,126 | 11,393,445 |
Canadian Properties [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Cost, Beginning balance | 2,563,434 | 2,443,747 |
Cost, Additions | 678,765 | |
Cost, Disposition | ||
Cost, Asset retirement cost additions | 906,146 | |
Cost, Foreign currency translation | 166,459 | 119,687 |
Cost, Ending balance | 4,314,804 | 2,563,434 |
Accumulated depletion, Beginning balance | 1,458,976 | 413,657 |
Accumulated depletion, Dispositions | ||
Accumulated depletion, Impairment of oil and gas properties | ||
Accumulated depletion, Depletion | 1,115,595 | 1,004,832 |
Accumulated depletion, Foreign currency translation | 57,178 | 40,487 |
Accumulated depletion, Ending balance | 2,631,749 | 1,458,976 |
Net book value as at ending balance | 1,683,055 | 1,104,458 |
US Properties [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Cost, Beginning balance | 10,350,538 | 10,350,538 |
Cost, Additions | ||
Cost, Disposition | 5,648,904 | |
Cost, Asset retirement cost additions | ||
Cost, Foreign currency translation | ||
Cost, Impairment of oil and gas properties | (396,922) | |
Cost, Ending balance | 4,304,622 | 10,350,538 |
Accumulated depletion, Beginning balance | 61,551 | 61,551 |
Accumulated depletion, Dispositions | ||
Accumulated depletion, Impairment of oil and gas properties | ||
Accumulated depletion, Depletion | ||
Accumulated depletion, Foreign currency translation | ||
Accumulated depletion, Ending balance | 61,551 | 61,551 |
Net book value as at ending balance | $ 4,243,071 | $ 10,288,987 |
EVALUATED PROPERTIES (Details N
EVALUATED PROPERTIES (Details Narrative) | Jul. 06, 2021USD ($) | Dec. 02, 2020USD ($) | May 01, 2020a | Aug. 06, 2019USD ($) | Apr. 15, 2019USD ($) | Nov. 02, 2018USD ($) | Sep. 17, 2018USD ($) | Jun. 29, 2018a | Jun. 08, 2018 | Jun. 01, 2018USD ($) | Jun. 01, 2018CAD ($) | May 09, 2018USD ($) | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Feb. 16, 2022 | Feb. 22, 2021 | Jul. 27, 2020USD ($)a | Feb. 28, 2020USD ($) | Jan. 02, 2020USD ($) | Sep. 30, 2019USD ($) | Aug. 15, 2019USD ($) | Apr. 25, 2019USD ($) | Jan. 15, 2019USD ($) | Dec. 31, 2018USD ($) | Jun. 01, 2018CAD ($) |
Proceeds from 2nd NOACK sale | $ 375,000 | ||||||||||||||||||||||||
Oil and Gas, Developed Acreage, Gross | a | 28,000 | ||||||||||||||||||||||||
Debt instrument face amount | $ 500,000 | ||||||||||||||||||||||||
Increased working interest | 50.00% | 28.00% | 28.00% | ||||||||||||||||||||||
Acquisition Note [Member] | |||||||||||||||||||||||||
Debt instrument face amount | $ 750,000 | ||||||||||||||||||||||||
Debt interest rate | 9.00% | 15.00% | |||||||||||||||||||||||
Debt instrument description | extend the maturity date for a period six months with 10 days’ notice to Blue Sky, in the event the Company pays 25% of the principal amount of the Acquisition Note at the time of extension | ||||||||||||||||||||||||
Blue Sky [Member] | |||||||||||||||||||||||||
Percentage of working interest acquired | 3.00% | 80.00% | |||||||||||||||||||||||
Purchase price | $ 1,096,216 | $ 1,428,581 | |||||||||||||||||||||||
Cash payment | 782,441 | $ 1,022,400 | |||||||||||||||||||||||
Debt instrument face amount | $ 313,775 | ||||||||||||||||||||||||
Cash payment for working interest acquired | $ 150,000 | ||||||||||||||||||||||||
Business combination, description | The total purchase price of the property was $2,000,000 (CAD), with $1,000,000 of that total due initially. The additional $1,000,000 was contingent on the future price of WTI crude. At the time WTI price exceeded $50/bbl, the Company would pay an additional $750,000. In addition, at the time WTI price exceeded $57/bbl the Company would pay an additional $250,000 (for a cumulative contingent total of $1,000,000). Note that WTI crude prices did not exceed those price thresholds until 2021, so the contingent $1,000,000 will not be recorded until 2021. Included in the terms of the agreement, the Company also funded their portion of the Alberta Energy Regulator (“AER”) bond fund requirement ($599,851 USD), necessary for the wells to continue in production after the acquisition. Additional funds ($385,336 USD) remain in the other current asset balance for future payments to BSR, related to the acquisition | ||||||||||||||||||||||||
Proceeds from secured royalty interest | $ 602,404.84 | ||||||||||||||||||||||||
Blue Sky [Member] | Acquisition Note [Member] | |||||||||||||||||||||||||
Debt instrument face amount | $ 406,181 | ||||||||||||||||||||||||
Settlement Agreement [Member] | |||||||||||||||||||||||||
Reserves forfeited percentage | 56.00% | ||||||||||||||||||||||||
Net property balance | $ 10,175,456 | ||||||||||||||||||||||||
Property write down value | $ 5,648,994 | ||||||||||||||||||||||||
Amended and Restated Loan Agreement [Member] | |||||||||||||||||||||||||
Cash payment for working interest acquired | $ 1,530,000 | ||||||||||||||||||||||||
Loan Agreement [Member] | |||||||||||||||||||||||||
Debt instrument face amount | $ 200,000 | $ 200,000 | $ 50,000 | $ 1,000,000 | $ 125,000 | ||||||||||||||||||||
Debt interest rate | 12.00% | 12.00% | 10.00% | 0.00% | 10.00% | 4.00% | 12.00% | ||||||||||||||||||
Debt default percentage | 19.00% | 19.00% | |||||||||||||||||||||||
Moon Company [Member] | Settlement Agreement [Member] | |||||||||||||||||||||||||
Area of land | a | 3,800 | ||||||||||||||||||||||||
TLSAU [Member] | |||||||||||||||||||||||||
Area of land | a | 4,880 | ||||||||||||||||||||||||
NOACK [Member] | Purchase and Sale Agreement [Member] | FlowTex Energy L.L.C. [Member] | |||||||||||||||||||||||||
Proceeds from 2nd NOACK sale | 375,000 | ||||||||||||||||||||||||
Deposit | $ 380,000 | $ 20,000 | |||||||||||||||||||||||
Receivable for the sale | $ 25,000 | 25,000 | |||||||||||||||||||||||
Debt payment principal | $ 400,000 | ||||||||||||||||||||||||
Gain on sale of properties | $ 400,000 | ||||||||||||||||||||||||
Remitted a cash payment | 8,995 | ||||||||||||||||||||||||
Outstanding property tax | $ 16,005 | ||||||||||||||||||||||||
NOACK [Member] | Crossroads Petroleum L.L.C. [Member] | |||||||||||||||||||||||||
Leasehold net revenue interest, percentage | 83.00% | ||||||||||||||||||||||||
Assets working interest | 100.00% | ||||||||||||||||||||||||
Proceeds from 2nd NOACK sale | $ 375,000 | ||||||||||||||||||||||||
Deposit | $ 260,000 | $ 115,000 | |||||||||||||||||||||||
Receivable for the sale | $ 120,000 | ||||||||||||||||||||||||
Payments for previous acquisitions forfeited | $ 255,000 | ||||||||||||||||||||||||
SUDS [Member] | |||||||||||||||||||||||||
Acquired field, description | The SUDS Field is a 2604-acre lease located in Creek County, 36 miles Southwest of Tulsa, Oklahoma. The field was first discovered in 1918 by SOHIO Oil Company utilizing over 100 wells with the primary objective to produce from the Dutcher Sands at an average well depth of 3,100 ft | ||||||||||||||||||||||||
TLSAU [Member] | |||||||||||||||||||||||||
Acquired field, description | TLSAU is located 45 miles from Roswell, Chaves County, New Mexico. The last independent reserve report prepared by MKM Engineering on December 31, 2020, reflects approximately 98,250 barrels of proven oil reserves remaining for the 100% working interest | ||||||||||||||||||||||||
Luseland, Hearts Hill and Cuthbert Fields [Member] | |||||||||||||||||||||||||
Assets working interest | 25.00% | ||||||||||||||||||||||||
Acquired field, description | The Canadian Properties currently encompass 64 sections, with 240 oil and 12 natural gas wells currently producing on the properties. Additionally, there are several idle wells with potential for reactivation and 34 sections of undeveloped land (approximately 21,760 acres) | ||||||||||||||||||||||||
Oil and Gas, Developed Acreage, Gross | a | 41,526 | ||||||||||||||||||||||||
Vermilion Energy Inc [Member] | |||||||||||||||||||||||||
Increased working interest | 100.00% |
SCHEDULE OF NOTES PAYABLE (Deta
SCHEDULE OF NOTES PAYABLE (Details) - USD ($) | Feb. 22, 2021 | Feb. 28, 2020 | Jan. 02, 2020 | May 09, 2018 | Dec. 31, 2020 | Apr. 23, 2020 | Dec. 31, 2019 | Jan. 15, 2019 | Jun. 01, 2018 | Jan. 06, 2017 | ||
Short-Term Debt [Line Items] | ||||||||||||
Notes payable | $ 3,038,309 | $ 2,097,078 | ||||||||||
Current portion of notes payable | $ 3,037,737 | $ 653,540 | ||||||||||
Loan Agreement [Member] | ||||||||||||
Short-Term Debt [Line Items] | ||||||||||||
Interest rate | 10.00% | 0.00% | 10.00% | 12.00% | 4.00% | 12.00% | ||||||
Debt instrument, maturity date | Dec. 31, 2021 | Mar. 1, 2022 | Jun. 30, 2020 | |||||||||
Discount | $ (266,674) | |||||||||||
Warrant expiry date | Jan. 2, 2023 | |||||||||||
Truck Loan [Member] | ||||||||||||
Short-Term Debt [Line Items] | ||||||||||||
Interest rate | 5.49% | [1] | 5.49% | |||||||||
Debt instrument, maturity date | [1] | Jan. 20, 2022 | ||||||||||
Notes payable | [1] | $ 9,916 | $ 16,141 | |||||||||
Current portion of notes payable | $ 9,343 | 7,502 | $ 683 | |||||||||
Credit Note I [Member] | ||||||||||||
Short-Term Debt [Line Items] | ||||||||||||
Interest rate | [2] | 12.00% | ||||||||||
Debt instrument, maturity date | [2] | May 11, 2021 | ||||||||||
Notes payable | [2] | $ 800,000 | 800,000 | |||||||||
Current portion of notes payable | $ 800,000 | 90,000 | ||||||||||
Credit Note I [Member] | Amended and Restated Loan Agreement [Member] | Bow Energy Ltd [Member] | ||||||||||||
Short-Term Debt [Line Items] | ||||||||||||
Interest rate | 12.00% | |||||||||||
Debt instrument, maturity date | May 11, 2021 | |||||||||||
Current portion of notes payable | $ 710,000 | |||||||||||
Credit Note I [Member] | Loan Agreement [Member] | ||||||||||||
Short-Term Debt [Line Items] | ||||||||||||
Notes payable | $ 730,000 | |||||||||||
Credit Note II [Member] | ||||||||||||
Short-Term Debt [Line Items] | ||||||||||||
Interest rate | [3] | 12.00% | ||||||||||
Debt instrument, maturity date | [3] | Oct. 17, 2019 | ||||||||||
Notes payable | [3] | $ 346,038 | 346,038 | |||||||||
Current portion of notes payable | $ 346,038 | 346,038 | ||||||||||
Credit Note III [Member] | ||||||||||||
Short-Term Debt [Line Items] | ||||||||||||
Interest rate | [4] | 15.00% | ||||||||||
Debt instrument, maturity date | [4] | Apr. 25, 2021 | ||||||||||
Notes payable | [4] | $ 750,000 | 750,000 | |||||||||
Discount | (5,976) | (25,101) | ||||||||||
Current portion of notes payable | $ 744,023 | |||||||||||
Credit Note VI [Member] | ||||||||||||
Short-Term Debt [Line Items] | ||||||||||||
Interest rate | [5] | 10.00% | ||||||||||
Debt instrument, maturity date | [5] | Jan. 1, 2020 | ||||||||||
Notes payable | [5] | $ 937,019 | ||||||||||
Discount | (285,768) | |||||||||||
Current portion of notes payable | 651,251 | |||||||||||
Lee Lytton [Member] | ||||||||||||
Short-Term Debt [Line Items] | ||||||||||||
Notes payable | [6] | $ 3,500 | ||||||||||
Date of maturity | [6] | On demand | ||||||||||
Current portion of notes payable | $ 3,500 | |||||||||||
Joel Oppenheim [Member] | ||||||||||||
Short-Term Debt [Line Items] | ||||||||||||
Interest rate | [7] | 10.00% | ||||||||||
Notes payable | [7] | $ 161,900 | ||||||||||
Date of maturity | [7] | On demand | ||||||||||
Current portion of notes payable | $ 176,900 | |||||||||||
Joel Oppenheim One [Member] | ||||||||||||
Short-Term Debt [Line Items] | ||||||||||||
Interest rate | [7] | 10.00% | ||||||||||
Notes payable | [7] | $ 15,000 | ||||||||||
Date of maturity | [7] | On demand | ||||||||||
Current portion of notes payable | $ 240,000 | |||||||||||
Joel Oppenheim Two [Member | ||||||||||||
Short-Term Debt [Line Items] | ||||||||||||
Interest rate | [7] | 10.00% | ||||||||||
Debt instrument, maturity date | [7] | Oct. 17, 2018 | ||||||||||
Notes payable | [7] | $ 240,000 | ||||||||||
Origin Bank (PPP Loan) [Member] | ||||||||||||
Short-Term Debt [Line Items] | ||||||||||||
Notes payable | 56,680 | $ 56,680 | ||||||||||
Current portion of notes payable | $ 56,680 | |||||||||||
Mark Allen [Member] | ||||||||||||
Short-Term Debt [Line Items] | ||||||||||||
Interest rate | [8] | 12.00% | ||||||||||
Debt instrument, maturity date | [8] | Jun. 30, 2021 | ||||||||||
Notes payable | [8] | 200,000 | ||||||||||
Current portion of notes payable | 200,000 | |||||||||||
M. Hortwitz [Member] | ||||||||||||
Short-Term Debt [Line Items] | ||||||||||||
Interest rate | 10.00% | |||||||||||
Debt instrument, maturity date | Oct. 14, 2016 | |||||||||||
Notes payable | $ 10,000 | 10,000 | ||||||||||
Current portion of notes payable | $ 10,000 | $ 10,000 | ||||||||||
[1] | On January 6, 2017, the Company purchased a truck and entered into an installment note in the amount of $ 35,677 5.49 683 | |||||||||||
[2] | On May 9, 2018, Bow entered into an Amended and Restated Loan Agreement with a third party. The Loan Agreement increased by $ 800,000 1,530,000 12 19 10,000 710,000 May 11, 2021 | |||||||||||
[3] | On September 17, 2018, the Company entered into a loan agreement (LOC) with a third party for $ 200,000 500,000 3 3.5 6,000 3 | |||||||||||
[4] | On April 25, 2019, the Company entered into a promissory note (an Acquisition Note”) with a third party in the amount of $ 750,000 15% April 25, 2021 500,000 0.012 5,976 50% 100% | |||||||||||
[5] | On January 2, 2020, the Company entered into a loan agreement in the amount of $ 1,000,000 120,000 10% June 30, 2020 5,000,000 0.10 January 2, 2023 266,674 11,111 | |||||||||||
[6] | Note needs to be settled with the estate of Lee Lytton. | |||||||||||
[7] | Various Shareholder Advances provided by Mr. Oppenheim during 2018 and 2019. There were no formal documents drawn. Interest rates were applied based on other similar loan agreements entered into by the Company during that period. On February 22, 2021, Mr. Oppenheimer combined the loans, which now bear an interest rate of 10% December 31, 2021 | |||||||||||
[8] | Mark Allen became a related party in 2020, therefore his note has been moved to that schedule. |
SCHEDULE OF NOTES PAYABLE (De_2
SCHEDULE OF NOTES PAYABLE (Details) (Parenthetical) - USD ($) | Feb. 22, 2021 | Sep. 01, 2020 | Apr. 23, 2020 | Feb. 28, 2020 | Jan. 02, 2020 | Apr. 25, 2019 | Sep. 17, 2018 | May 18, 2018 | May 09, 2018 | Dec. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 15, 2020 | Oct. 30, 2020 | Sep. 30, 2019 | Jan. 15, 2019 | Jun. 08, 2018 | Jun. 01, 2018 | Jan. 06, 2017 | ||
Short-Term Debt [Line Items] | |||||||||||||||||||||
Debt face amount | $ 500,000 | ||||||||||||||||||||
Notes payable current | $ 653,540 | $ 3,037,737 | $ 653,540 | ||||||||||||||||||
Repayment of notes | 68,367 | 7,096 | |||||||||||||||||||
Debt obligation | 2,097,078 | 3,038,309 | 2,097,078 | ||||||||||||||||||
Number of common stock issued | 2,000,000 | ||||||||||||||||||||
Warrant exercise price per share | $ 0.08 | $ 0.04 | |||||||||||||||||||
Number of common stock issued, value | 119,375 | 150,000 | |||||||||||||||||||
Fair value of warrants issued | 34,867 | 72,037 | |||||||||||||||||||
Working interest percentage | 3.00% | ||||||||||||||||||||
Amortization of debt discount (premium) | 209,570 | 13,148 | |||||||||||||||||||
Amended and Restated Loan Agreement [Member] | |||||||||||||||||||||
Short-Term Debt [Line Items] | |||||||||||||||||||||
Warrant to purchase common stock | 320,000 | ||||||||||||||||||||
Warrant exercise price per share | $ 0.10 | ||||||||||||||||||||
Loan Agreement [Member] | |||||||||||||||||||||
Short-Term Debt [Line Items] | |||||||||||||||||||||
Debt face amount | $ 50,000 | $ 1,000,000 | $ 200,000 | $ 200,000 | $ 200,000 | $ 125,000 | |||||||||||||||
Debt interest rate | 10.00% | 0.00% | 10.00% | 12.00% | 12.00% | 4.00% | 12.00% | ||||||||||||||
Debt default interest rate | 19.00% | ||||||||||||||||||||
Warrant to purchase common stock | 200,000 | 5,000,000 | 5,000,000 | ||||||||||||||||||
Warrant exercise price per share | $ 0.10 | $ 0.10 | $ 0.10 | ||||||||||||||||||
Warrant expiry date | Jan. 2, 2023 | ||||||||||||||||||||
Working interest percentage | 3.00% | ||||||||||||||||||||
Loan interest percentage | 3.50% | ||||||||||||||||||||
Payments of principal and interest amount | $ 6,000 | ||||||||||||||||||||
Debt instrument, maturity date | Dec. 31, 2021 | Mar. 1, 2022 | Jun. 30, 2020 | ||||||||||||||||||
Debt instrument, unamortized discount | $ 266,674 | ||||||||||||||||||||
Origination fee | 120,000 | ||||||||||||||||||||
Amortization of debt discount (premium) | $ 11,111 | ||||||||||||||||||||
Loan Agreement [Member] | Mr Oppenheim [Member] | |||||||||||||||||||||
Short-Term Debt [Line Items] | |||||||||||||||||||||
Debt instrument, maturity date | Jun. 30, 2021 | ||||||||||||||||||||
Shares issued on conversion of debt | 2,500,000 | ||||||||||||||||||||
Debt conversion price per shares | $ 0.08 | $ 0.08 | |||||||||||||||||||
Loan Agreement [Member] | Jovian Resources LLC [Member] | |||||||||||||||||||||
Short-Term Debt [Line Items] | |||||||||||||||||||||
Notes payable current | 362,583 | $ 125,000 | |||||||||||||||||||
Loan Agreement [Member] | Jovian Resources LLC [Member] | Minimum [Member] | |||||||||||||||||||||
Short-Term Debt [Line Items] | |||||||||||||||||||||
Notes payable current | $ 346,038 | $ 346,038 | |||||||||||||||||||
Increase in debt amount | 150,000 | ||||||||||||||||||||
Loan Agreement [Member] | Jovian Resources LLC [Member] | Maximum [Member] | |||||||||||||||||||||
Short-Term Debt [Line Items] | |||||||||||||||||||||
Notes payable current | $ 188,285 | ||||||||||||||||||||
Increase in debt amount | $ 157,753 | ||||||||||||||||||||
Loan Agreement [Member] | Warrant [Member] | Mr Oppenheim [Member] | |||||||||||||||||||||
Short-Term Debt [Line Items] | |||||||||||||||||||||
Warrant exercise price per share | $ 0.10 | $ 0.10 | |||||||||||||||||||
Shares issued on conversion of debt | 10,000,000 | ||||||||||||||||||||
Truck Loan [Member] | |||||||||||||||||||||
Short-Term Debt [Line Items] | |||||||||||||||||||||
Debt face amount | $ 35,677 | ||||||||||||||||||||
Debt interest rate | 5.49% | [1] | 5.49% | ||||||||||||||||||
Notes payable current | $ 7,502 | $ 9,343 | $ 7,502 | $ 683 | |||||||||||||||||
Debt obligation | [1] | 16,141 | $ 9,916 | 16,141 | |||||||||||||||||
Debt instrument, maturity date | [1] | Jan. 20, 2022 | |||||||||||||||||||
Credit Note I [Member] | |||||||||||||||||||||
Short-Term Debt [Line Items] | |||||||||||||||||||||
Debt interest rate | [2] | 12.00% | |||||||||||||||||||
Notes payable current | 90,000 | $ 800,000 | 90,000 | ||||||||||||||||||
Debt obligation | [2] | 800,000 | $ 800,000 | 800,000 | |||||||||||||||||
Debt instrument, maturity date | [2] | May 11, 2021 | |||||||||||||||||||
Credit Note I [Member] | Amended and Restated Loan Agreement [Member] | Bow Energy Ltd [Member] | |||||||||||||||||||||
Short-Term Debt [Line Items] | |||||||||||||||||||||
Debt face amount | $ 800,000 | ||||||||||||||||||||
Debt interest rate | 12.00% | ||||||||||||||||||||
Notes payable current | $ 710,000 | ||||||||||||||||||||
Increase in loan amount | $ 1,530,000 | ||||||||||||||||||||
Debt default interest rate | 19.00% | ||||||||||||||||||||
Repayment of notes | $ 10,000 | ||||||||||||||||||||
Debt instrument, maturity date | May 11, 2021 | ||||||||||||||||||||
Credit Note I [Member] | Loan Agreement [Member] | |||||||||||||||||||||
Short-Term Debt [Line Items] | |||||||||||||||||||||
Debt obligation | $ 730,000 | ||||||||||||||||||||
Number of common stock issued | 500,000 | ||||||||||||||||||||
Number of common stock issued, value | $ 47,500 | ||||||||||||||||||||
Fair value of warrants issued | 182,650 | ||||||||||||||||||||
Loss on extinguishment of debt | 260,162 | ||||||||||||||||||||
Credit Note I [Member] | Loan Agreement [Member] | Canadian Dollars [Member] | |||||||||||||||||||||
Short-Term Debt [Line Items] | |||||||||||||||||||||
Fair value of warrants issued | $ 30,012 | ||||||||||||||||||||
Credit Note I [Member] | Loan Agreement [Member] | Lender [Member] | Warrant [Member] | |||||||||||||||||||||
Short-Term Debt [Line Items] | |||||||||||||||||||||
Warrant to purchase common stock | 2,320,000 | ||||||||||||||||||||
Credit Note I [Member] | Loan Agreement [Member] | Lender [Member] | Loan Warrant One [Member] | |||||||||||||||||||||
Short-Term Debt [Line Items] | |||||||||||||||||||||
Warrant to purchase common stock | 320,000 | ||||||||||||||||||||
Warrant exercise price per share | $ 0.10 | ||||||||||||||||||||
Warrant expiry date | May 15, 2021 | ||||||||||||||||||||
Credit Note I [Member] | Loan Agreement [Member] | Lender [Member] | Loan Warrant Two [Member] | |||||||||||||||||||||
Short-Term Debt [Line Items] | |||||||||||||||||||||
Warrant to purchase common stock | 500,000 | ||||||||||||||||||||
Warrant exercise price per share | $ 0.12 | ||||||||||||||||||||
Warrant expiry date | May 15, 2021 | ||||||||||||||||||||
Credit Note I [Member] | Loan Agreement [Member] | Lender [Member] | Loan Warrant Three [Member] | |||||||||||||||||||||
Short-Term Debt [Line Items] | |||||||||||||||||||||
Warrant to purchase common stock | 1,500,000 | ||||||||||||||||||||
Warrant exercise price per share | $ 0.10 | ||||||||||||||||||||
Warrant expiry date | May 15, 2020 | ||||||||||||||||||||
Credit Note I [Member] | Loan Agreement [Member] | Lender [Member] | Restricted Stock [Member] | |||||||||||||||||||||
Short-Term Debt [Line Items] | |||||||||||||||||||||
Number of common stock issued | 500,000 | ||||||||||||||||||||
Acquisition Note [Member] | |||||||||||||||||||||
Short-Term Debt [Line Items] | |||||||||||||||||||||
Debt face amount | $ 750,000 | ||||||||||||||||||||
Debt interest rate | 15.00% | 9.00% | |||||||||||||||||||
Warrant to purchase common stock | 500,000 | ||||||||||||||||||||
Warrant exercise price per share | $ 0.012 | ||||||||||||||||||||
Working interest percentage | 50.00% | ||||||||||||||||||||
Debt instrument, maturity date | Apr. 25, 2021 | ||||||||||||||||||||
Debt instrument, unamortized discount | $ 5,976 | ||||||||||||||||||||
Acquisition Note [Member] | Twin Lakes Properties [Member] | |||||||||||||||||||||
Short-Term Debt [Line Items] | |||||||||||||||||||||
Working interest percentage | 100.00% | ||||||||||||||||||||
Origin Bank (PPP Loan) [Member] | |||||||||||||||||||||
Short-Term Debt [Line Items] | |||||||||||||||||||||
Notes payable current | $ 56,680 | ||||||||||||||||||||
Debt obligation | $ 56,680 | $ 56,680 | |||||||||||||||||||
Paycheck Protection Program [Member] | |||||||||||||||||||||
Short-Term Debt [Line Items] | |||||||||||||||||||||
Debt interest rate | 1.00% | ||||||||||||||||||||
Debt term | 2 years | ||||||||||||||||||||
[1] | On January 6, 2017, the Company purchased a truck and entered into an installment note in the amount of $ 35,677 5.49 683 | ||||||||||||||||||||
[2] | On May 9, 2018, Bow entered into an Amended and Restated Loan Agreement with a third party. The Loan Agreement increased by $ 800,000 1,530,000 12 19 10,000 710,000 May 11, 2021 |
SCHEDULE OF FUTURE MINIMUM REPA
SCHEDULE OF FUTURE MINIMUM REPAYMENTS OF NOTES PAYABLE (Details) | Dec. 31, 2020USD ($) |
Debt Disclosure [Abstract] | |
2021 | $ 3,037,737 |
2022 | 573 |
Thereafter | |
Total | $ 3,038,310 |
SCHEDULE OF FINANCIAL INFORMATI
SCHEDULE OF FINANCIAL INFORMATION LEASE (Details) - USD ($) | Dec. 31, 2020 | Dec. 31, 2019 |
Operating Lease, Right-of-Use Asset | $ 23,145 | |
Operating Lease, Liability, Current | 13,107 | |
Other Noncurrent Assets [Member] | ||
Operating Lease, Right-of-Use Asset | 23,145 | |
Other Current Liabilities [Member] | ||
Operating Lease, Liability, Current | 13,107 | |
Other Noncurrent Liabilities [Member] | ||
Operating Lease, Liability, Noncurrent | $ 13,909 |
SCHEDULE OF MATURITIES LEASE LI
SCHEDULE OF MATURITIES LEASE LIABILITY (Details) - USD ($) | Dec. 31, 2020 | Dec. 31, 2019 |
Leases | ||
2021 | $ 14,997 | |
Total | 14,997 | |
Less: Imputed interest | (1,088) | |
Present value of lease liabilities | $ 13,909 |
SCHEDULE OF RELATED PARTY NOTES
SCHEDULE OF RELATED PARTY NOTES PAYABLE (Details) - USD ($) | Feb. 22, 2021 | Feb. 28, 2020 | Feb. 14, 2020 | Jan. 03, 2020 | Jan. 02, 2020 | Jul. 23, 2019 | Dec. 31, 2020 | Oct. 30, 2020 | Dec. 31, 2019 | Dec. 04, 2019 | Aug. 21, 2019 | Aug. 15, 2019 | Jan. 15, 2019 | Jun. 01, 2018 | |
Defined Benefit Plan Disclosure [Line Items] | |||||||||||||||
Notes payable - related party | $ 1,035,329 | $ 983,291 | |||||||||||||
Loan Agreement [Member] | |||||||||||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||||||||||
Interest rate | 10.00% | 0.00% | 10.00% | 12.00% | 4.00% | 12.00% | |||||||||
Date of maturity | Dec. 31, 2021 | Mar. 1, 2022 | Jun. 30, 2020 | ||||||||||||
Discount | $ (266,674) | ||||||||||||||
Warrants to purchase shares | 200,000 | 5,000,000 | 5,000,000 | ||||||||||||
Warrant expiry date | Jan. 2, 2023 | ||||||||||||||
Jovian Petroleum Corporation [Member] | |||||||||||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||||||||||
Gross proceeds form private placement | $ 12,500 | ||||||||||||||
Number of shares converted | 156,250 | ||||||||||||||
Warrants to purchase shares | 12,500 | ||||||||||||||
Conversion price per share | $ 0.08 | ||||||||||||||
Lee Lytton [Member] | |||||||||||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||||||||||
Interest rate | [1] | ||||||||||||||
Date of maturity | [1] | On demand | |||||||||||||
Notes payable - related party | [1] | $ 3,500 | |||||||||||||
Quinten Beasley [Member] | |||||||||||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||||||||||
Interest rate | 10.00% | ||||||||||||||
Notes payable - related party | $ 5,000 | 10,000 | |||||||||||||
Date of maturity | Oct. 14, 2016 | ||||||||||||||
Joel Oppenheim [Member] | |||||||||||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||||||||||
Interest rate | |||||||||||||||
Date of maturity | On demand | ||||||||||||||
Notes payable - related party | 217,208 | ||||||||||||||
Gross proceeds form private placement | $ 12,500 | ||||||||||||||
Warrants to purchase shares | 1,250,000 | ||||||||||||||
Joel Oppenheim One [Member] | |||||||||||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||||||||||
Interest rate | 12.00% | ||||||||||||||
Date of maturity | On demand | ||||||||||||||
Notes payable - related party | 15,000 | ||||||||||||||
Jovian Petroleum Corporation [Member] | |||||||||||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||||||||||
Interest rate | [2] | 3.50% | |||||||||||||
Notes payable - related party | [2] | $ 188,285 | 362,583 | ||||||||||||
Date of maturity | [2] | Dec. 31, 2021 | |||||||||||||
Warrants to purchase shares | 1,250,000 | ||||||||||||||
Ivar Siem [Member] | |||||||||||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||||||||||
Interest rate | [3] | 12.00% | |||||||||||||
Date of maturity | [3] | On demand | |||||||||||||
Notes payable - related party | [3] | $ 200,000 | 100,000 | ||||||||||||
Ivar Siem [Member] | Loan Agreement [Member] | |||||||||||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||||||||||
Interest rate | 12.00% | 12.00% | |||||||||||||
Ivar Siem One [Member] | |||||||||||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||||||||||
Date of maturity | [3] | On demand | |||||||||||||
Notes payable - related party | [3] | $ 50,000 | 50,000 | ||||||||||||
Joel Oppenheim Two [Member | |||||||||||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||||||||||
Interest rate | [4] | 12.00% | |||||||||||||
Notes payable - related party | [4] | 200,000 | |||||||||||||
Date of maturity | [4] | Dec. 31, 2019 | |||||||||||||
Mark Allen-SUDS Development [Member] | |||||||||||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||||||||||
Interest rate | [5] | 9.00% | |||||||||||||
Notes payable - related party | [5] | $ 55,000 | |||||||||||||
Date of maturity | [5] | Sep. 2, 2021 | |||||||||||||
Mark Allen-SUDS Development One [Member] | |||||||||||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||||||||||
Interest rate | [6] | 10.00% | |||||||||||||
Notes payable - related party | [6] | $ 135,000 | |||||||||||||
Date of maturity | [6] | Jun. 30, 2021 | |||||||||||||
Mark Allen [Member] | |||||||||||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||||||||||
Interest rate | 12.00% | ||||||||||||||
Notes payable - related party | $ 200,000 | ||||||||||||||
Date of maturity | Jun. 30, 2020 | ||||||||||||||
Mark Allen One [Member] | |||||||||||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||||||||||
Interest rate | 10.00% | ||||||||||||||
Notes payable - related party | $ 100,000 | ||||||||||||||
Date of maturity | Jun. 30, 2020 | ||||||||||||||
Discount | $ (11,536) | ||||||||||||||
Mark Allen Two [Member] | |||||||||||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||||||||||
Interest rate | [7] | 10.00% | |||||||||||||
Notes payable - related party | [7] | $ 125,000 | |||||||||||||
Date of maturity | [7] | Jun. 30, 2020 | |||||||||||||
Discount | $ (11,420) | ||||||||||||||
Mark M Allen [Member] | Loan Agreement [Member] | |||||||||||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||||||||||
Interest rate | 10.00% | 10.00% | 12.00% | ||||||||||||
Date of maturity | Jun. 1, 2020 | Jun. 1, 2020 | |||||||||||||
Warrants to purchase shares | 750,000 | 400,000 | |||||||||||||
Conversion price per share | $ 0.08 | ||||||||||||||
Warrant expiry date | Feb. 14, 2022 | Jan. 3, 2023 | |||||||||||||
[1] | Not used | ||||||||||||||
[2] | On February 9, 2018, the Company entered into a Revolving Line of Credit Agreement (“LOC”) for $ 200,000 500,000 25 3.5 | ||||||||||||||
[3] | On August 15, 2019, the Company entered into a loan agreement in the amount of $ 75,000 12 | ||||||||||||||
[4] | Joel Oppenheim was no longer a related party on December 31, 2020. This note is now reflected in Note 5 (Notes Payable). | ||||||||||||||
[5] | On April 15, 2020, the Company entered into a consulting agreement, with Mark M Allen, that included a funding clause where the Company borrowed $ 55,000 9 August 15, 2021 | ||||||||||||||
[6] | On January 6, 2020, the Company entered into a consulting agreement, with Mark M Allen, that included a funding clause where the Company borrowed $ 135,000 62,000 45,000 28,000 10 June 30, 2020 | ||||||||||||||
[7] | On February 14, 2020, the Company entered into a loan agreement in the amount of $ 125,000 10 June 1, 2020 750,000 0.10 February 14, 2022 38,249 1,903 |
SCHEDULE OF RELATED PARTY NOT_2
SCHEDULE OF RELATED PARTY NOTES PAYABLE (Details) (Parenthetical) - USD ($) | Feb. 22, 2021 | Apr. 15, 2020 | Feb. 28, 2020 | Feb. 14, 2020 | Jan. 06, 2020 | Jan. 03, 2020 | Jan. 02, 2020 | Dec. 04, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 15, 2020 | Oct. 30, 2020 | Sep. 01, 2020 | Jun. 26, 2020 | May 18, 2020 | Aug. 21, 2019 | Aug. 15, 2019 | Jan. 15, 2019 | Sep. 17, 2018 | Jun. 01, 2018 | Apr. 12, 2018 | Feb. 09, 2018 | |
Defined Benefit Plan Disclosure [Line Items] | |||||||||||||||||||||||
Debt instrument face amount | $ 500,000 | ||||||||||||||||||||||
Warrant exercise price | $ 0.04 | $ 0.08 | |||||||||||||||||||||
Debt discount | $ 209,570 | $ 13,148 | |||||||||||||||||||||
Loan Agreement [Member] | |||||||||||||||||||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||||||||||||||||||
Debt interest rate | 10.00% | 0.00% | 10.00% | 12.00% | 4.00% | 12.00% | |||||||||||||||||
Debt instrument face amount | $ 50,000 | $ 1,000,000 | $ 200,000 | $ 125,000 | $ 200,000 | ||||||||||||||||||
Debt instrument maturity date | Dec. 31, 2021 | Mar. 1, 2022 | Jun. 30, 2020 | ||||||||||||||||||||
Warrant to purchase of common stock | 200,000 | 5,000,000 | 5,000,000 | ||||||||||||||||||||
Warrant exercise price | $ 0.10 | $ 0.10 | $ 0.10 | ||||||||||||||||||||
Debt discount | $ 11,111 | ||||||||||||||||||||||
Jovian Petroleum Corporation [Member] | |||||||||||||||||||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||||||||||||||||||
Ownership interest | 25.00% | ||||||||||||||||||||||
Debt interest rate | [1] | 3.50% | |||||||||||||||||||||
Debt instrument maturity date | [1] | Dec. 31, 2021 | |||||||||||||||||||||
Warrant to purchase of common stock | 1,250,000 | ||||||||||||||||||||||
Jovian Petroleum Corporation [Member] | Revolving Line of Credit Agreement [Member] | |||||||||||||||||||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||||||||||||||||||
Revolving line of credit | $ 500,000 | $ 200,000 | |||||||||||||||||||||
Debt interest rate | 3.50% | ||||||||||||||||||||||
Mark M Allen [Member] | Loan Agreement [Member] | |||||||||||||||||||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||||||||||||||||||
Debt interest rate | 10.00% | 10.00% | 12.00% | ||||||||||||||||||||
Debt instrument face amount | $ 125,000 | $ 100,000 | $ 200,000 | ||||||||||||||||||||
Debt instrument maturity date | Jun. 1, 2020 | Jun. 1, 2020 | |||||||||||||||||||||
Warrant to purchase of common stock | 750,000 | 400,000 | |||||||||||||||||||||
Warrant exercise price | $ 0.10 | $ 0.10 | |||||||||||||||||||||
Debt discount | $ 38,249 | $ 31,946 | |||||||||||||||||||||
Amortization of debt | $ 1,903 | $ 1,775 | |||||||||||||||||||||
Shares issued on conversion of debt | 2,500,000 | ||||||||||||||||||||||
Conversion price per share | $ 0.08 | ||||||||||||||||||||||
Mark M Allen [Member] | Loan Agreement [Member] | Warrant [Member] | |||||||||||||||||||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||||||||||||||||||
Warrant exercise price | $ 0.10 | ||||||||||||||||||||||
Shares issued on conversion of debt | 10,000,000 | ||||||||||||||||||||||
Mark M Allen [Member] | Consulting Agreement [Member] | |||||||||||||||||||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||||||||||||||||||
Debt interest rate | 9.00% | 10.00% | |||||||||||||||||||||
Debt instrument face amount | $ 55,000 | $ 135,000 | |||||||||||||||||||||
Debt instrument maturity date | Aug. 15, 2021 | Jun. 30, 2020 | |||||||||||||||||||||
Ivar Siem [Member] | |||||||||||||||||||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||||||||||||||||||
Debt interest rate | [2] | 12.00% | |||||||||||||||||||||
Ivar Siem [Member] | Loan Agreement [Member] | |||||||||||||||||||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||||||||||||||||||
Debt interest rate | 12.00% | 12.00% | |||||||||||||||||||||
Debt instrument face amount | $ 100,000 | $ 75,000 | |||||||||||||||||||||
Shares issued on conversion of debt | 1,250,000 | ||||||||||||||||||||||
Ivar Siem [Member] | Loan Agreement [Member] | Warrant [Member] | |||||||||||||||||||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||||||||||||||||||
Warrant exercise price | $ 0.10 | ||||||||||||||||||||||
Shares issued on conversion of debt | 5,000,000 | ||||||||||||||||||||||
Third Party [Member] | Consulting Agreement [Member] | |||||||||||||||||||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||||||||||||||||||
Debt instrument face amount | $ 62,000 | $ 28,000 | $ 45,000 | ||||||||||||||||||||
[1] | On February 9, 2018, the Company entered into a Revolving Line of Credit Agreement (“LOC”) for $ 200,000 500,000 25 3.5 | ||||||||||||||||||||||
[2] | On August 15, 2019, the Company entered into a loan agreement in the amount of $ 75,000 12 |
SCHEDULE OF FUTURE MINIMUM RE_2
SCHEDULE OF FUTURE MINIMUM REPAYMENTS OF RELATED PARTY NOTES PAYABLE (Details) - USD ($) | Dec. 31, 2020 | Dec. 31, 2019 |
Short-Term Debt [Line Items] | ||
2021 | $ 3,037,737 | |
Thereafter | ||
Total | 1,035,329 | $ 983,291 |
Notes Payable [Member] | ||
Short-Term Debt [Line Items] | ||
2021 | 1,035,329 | |
Thereafter | ||
Total | $ 1,035,329 |
RELATED PARTY NOTES PAYABLE (De
RELATED PARTY NOTES PAYABLE (Details Narrative) - Related Party Notes and Payables [Member] | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Short-Term Debt [Line Items] | |
Debt conversion amount | $ 120,000 |
Leo Womack [Member] | |
Short-Term Debt [Line Items] | |
Debt conversion amount | 20,000 |
Joel Oppenheim [Member] | |
Short-Term Debt [Line Items] | |
Debt conversion amount | 40,000 |
Jovian Petroleum Corporation [Member] | |
Short-Term Debt [Line Items] | |
Debt conversion amount | 40,000 |
American Resource Offshore Inc. [Member] | |
Short-Term Debt [Line Items] | |
Debt conversion amount | $ 20,000 |
SCHEDULE OF DERIVATIVE LIABIL_2
SCHEDULE OF DERIVATIVE LIABILITIES (Details) | 12 Months Ended |
Dec. 31, 2020USD ($) | |
Investments, All Other Investments [Abstract] | |
Balance, beginning | $ 24,509 |
Additions | 236,611 |
Fair value adjustments | (77,322) |
Balance, ending | $ 183,798 |
SCHEDULE OF DERIVATIVE LIABIL_3
SCHEDULE OF DERIVATIVE LIABILITY OF FAIR VALUE ASSUMPTION (Details) | 12 Months Ended |
Dec. 31, 2020 | |
Measurement Input, Risk Free Interest Rate [Member] | Minimum [Member] | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Derivative liability, measurement input | 1.58 |
Measurement Input, Risk Free Interest Rate [Member] | Maximum [Member] | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Derivative liability, measurement input | 2.27 |
Measurement Input, Expected Term [Member] | Minimum [Member] | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Derivative liability, expected life | 1 year 4 months 24 days |
Measurement Input, Expected Term [Member] | Maximum [Member] | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Derivative liability, expected life | 2 years 1 month 6 days |
Measurement Input, Expected Dividend Rate [Member] | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Derivative liability, measurement input | 0 |
Expected Volatility [Member] | Minimum [Member] | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Derivative liability, measurement input | 208 |
Expected Volatility [Member] | Maximum [Member] | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Derivative liability, measurement input | 240 |
DERIVATIVE FINANCIAL INSTRUME_3
DERIVATIVE FINANCIAL INSTRUMENTS (Details Narrative) - USD ($) | Dec. 31, 2020 | Dec. 15, 2020 | Oct. 30, 2020 | Sep. 01, 2020 | Feb. 28, 2020 | Jan. 06, 2020 | Jan. 02, 2020 | Dec. 31, 2019 | May 18, 2018 |
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |||||||||
Warrant exercise price | $ 0.04 | $ 0.08 | |||||||
Derivative liability | $ 183,798 | $ 24,509 | |||||||
Amended and Restated Loan Agreement [Member] | |||||||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |||||||||
Warrant to purchase common stock | 320,000 | ||||||||
Warrant exercise price | $ 0.10 | ||||||||
Derivative liability | $ 30,012 | ||||||||
Acquisition Note [Member] | |||||||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |||||||||
Warrant to purchase common stock | 5,000,000 | ||||||||
Warrant exercise price | $ 0.10 | ||||||||
Derivative liability | $ 144,259 | ||||||||
Loan Agreement [Member] | |||||||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |||||||||
Warrant to purchase common stock | 5,000,000 | 200,000 | 5,000,000 | ||||||
Warrant exercise price | $ 0.10 | $ 0.10 | $ 0.10 | ||||||
Derivative liability | $ 95,352 |
SCHEDULE OF FAIR VALUE OF ASSET
SCHEDULE OF FAIR VALUE OF ASSET RETIREMENT OBLIGATIONS (Details) | 12 Months Ended |
Dec. 31, 2020 | |
Minimum [Member] | |
Inflation rate | 1.92% |
Estimated asset life | 12 years |
Maximum [Member] | |
Inflation rate | 2.15% |
Estimated asset life | 22 years |
SCHEDULE OF ASSET RETIREMENT OB
SCHEDULE OF ASSET RETIREMENT OBLIGATIONS (Details) - USD ($) | 9 Months Ended | 12 Months Ended | |
Sep. 30, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | |
Property, Plant and Equipment [Line Items] | |||
Asset retirement obligations at end of period | $ 1,723,364 | $ 1,723,364 | $ 1,509,622 |
Additions | 0 | ||
Accretion expense | 287,758 | 149,624 | |
Disposition | 0 | ||
Foreign currency translation | 100,756 | 64,118 | |
Acquisition of Canadian property - Utikuma | 906,146 | ||
Plugging liability | 606,109 | ||
Asset retirement obligations at end of period | 3,624,133 | 1,723,364 | |
Canadian Properties [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Asset retirement obligations at end of period | 1,445,991 | 1,445,991 | 1,258,399 |
Additions | 0 | ||
Accretion expense | 259,016 | 123,474 | |
Disposition | 0 | 0 | |
Foreign currency translation | 100,756 | 64,118 | |
Acquisition of Canadian property - Utikuma | 906,146 | ||
Asset retirement obligations at end of period | 2,711,909 | 1,445,991 | |
US Properties [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Asset retirement obligations at end of period | 277,373 | 277,373 | 251,223 |
Additions | 0 | ||
Accretion expense | 28,742 | 26,150 | |
Disposition | 0 | 0 | |
Foreign currency translation | $ 0 | 0 | |
Plugging liability | 606,109 | ||
Asset retirement obligations at end of period | $ 912,225 | $ 277,373 |
ASSET RETIREMENT OBLIGATIONS (D
ASSET RETIREMENT OBLIGATIONS (Details Narrative) - USD ($) | Apr. 08, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Subsequent Event [Line Items] | |||
Liabilities | $ 11,301,018 | $ 7,183,312 | |
Subsequent Event [Member] | |||
Subsequent Event [Line Items] | |||
Legal penalties | $ 35,100 | ||
Subsequent Event [Member] | Oil and Gas Properties [Member] | |||
Subsequent Event [Line Items] | |||
Liabilities | $ 660,000 |
SCHEDULE OF COMMON STOCK PURCHA
SCHEDULE OF COMMON STOCK PURCHASE WARRANTS ISSUED AND OUTSTANDING (Details) - $ / shares | Sep. 01, 2020 | Dec. 31, 2020 | Dec. 31, 2019 |
Equity [Abstract] | |||
Warrants Outstanding, Beginning balance | 57,043,836 | 51,066,864 | |
Weighted Average Exercise Price, Ending balance | $ 0.14 | $ 0.20 | |
Warrants Outstanding, Granted | 1,000,000 | 18,650,000 | 12,250,000 |
Weighted Average Exercise Price, Granted | $ 0.15 | $ 0.15 | |
Warrants Outstanding, Exercised | (1,650,000) | (125,000) | |
Weighted Average Exercise Price, Exercised | $ 0.08 | $ 0.09 | |
Warrants Outstanding, Expired | (33,279,170) | (6,148,028) | |
Weighted Average Exercise Price, Expired | $ 0.19 | $ 0.25 | |
Warrants Outstanding, Ending balance | 40,764,666 | 57,043,836 | |
Weighted Average Exercise Price, Ending balance | $ 0.13 | $ 0.14 |
SCHEDULE OF WARRANTS ISSUANCE D
SCHEDULE OF WARRANTS ISSUANCE DURING PERIOD (Details) - shares | Sep. 01, 2020 | Dec. 31, 2020 | Dec. 31, 2019 |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Number of Warrants granted | 1,000,000 | 18,650,000 | 12,250,000 |
Warrant [Member] | Employment Agreement [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Number of Warrants granted | 1,000,000 | ||
Warrant [Member] | Financing Agreement [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Number of Warrants granted | 1,000,000 | 1,500,000 | |
Warrant [Member] | Consulting Agreement [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Number of Warrants granted | 250,000 | ||
Warrant [Member] | Loan Agreement [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Number of Warrants granted | 11,150,000 | ||
Warrant [Member] | Private Placement [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Number of Warrants granted | 3,750,000 | ||
Warrant [Member] | Board of Directors and Advisory Board Service [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Number of Warrants granted | 5,250,000 | 7,000,000 |
SCHEDULE OF FAIR VALUE OF ASSUM
SCHEDULE OF FAIR VALUE OF ASSUMPTION (Details) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Expected dividend rate | 0.00% | 0.00% |
Minimum [Member] | ||
Risk-free interest rate | 1.65% | 1.94% |
Expected life | 1 year | 1 year |
Expected volatility | 240.00% | 240.00% |
Maximum [Member] | ||
Risk-free interest rate | 2.38% | 2.39% |
Expected life | 3 years | 3 years |
Expected volatility | 274.00% | 283.00% |
EQUITY (Details Narrative)
EQUITY (Details Narrative) - USD ($) | Dec. 22, 2020 | Dec. 15, 2020 | Sep. 01, 2020 | Feb. 29, 2020 | Jan. 20, 2020 | Aug. 14, 2019 | Aug. 08, 2019 | Jul. 23, 2019 | Oct. 30, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | Aug. 21, 2019 |
Class of Stock [Line Items] | ||||||||||||
Stock conversion price | $ 0.28 | |||||||||||
Preferred stock conversion, description | the value of each dollar of preferred stock (based on a $10 per share price) will convert into 7.1429 common shares (which results in a $0.14 per common share conversion rate) | |||||||||||
Cumulative cash dividends | $ 178,699 | $ 178,208 | ||||||||||
Number of shares issued | 2,000,000 | |||||||||||
Warrant exercise price | $ 0.04 | $ 0.08 | ||||||||||
Proceeds from warrant exercise | $ 69,375 | $ 119,375 | $ 55,375 | |||||||||
Warrants expire term | 36 months | |||||||||||
Number of warrant exercised | 1,650,000 | 125,000 | ||||||||||
Warrants outstanding, weighted-average remaining contractual life | 1 year 4 months 20 days | 1 year 14 days | ||||||||||
Warrants outstanding, intrinsic value | $ 0 | $ 8,256 | ||||||||||
Bow Energy Ltd [Member] | Stock Options [Member] | ||||||||||||
Class of Stock [Line Items] | ||||||||||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Grants in Period, Gross | 5,000,000 | |||||||||||
Share-Based Compensation Arrangements by Share-Based Payment Award, Options, Grants in Period, Weighted Average Exercise Price | $ 0.05 | |||||||||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Fair Value Assumptions, Expected Term | 3 years | |||||||||||
Issued Upon Signing [Member] | ||||||||||||
Class of Stock [Line Items] | ||||||||||||
Number of shares issued | 1,000,000 | |||||||||||
Consulting Agreement [Member] | ||||||||||||
Class of Stock [Line Items] | ||||||||||||
Issuance of common stock related shares | 250,000 | |||||||||||
Joel Oppenheim [Member] | ||||||||||||
Class of Stock [Line Items] | ||||||||||||
Warrant exercise price | $ 0.10 | $ 0.10 | $ 0.10 | |||||||||
Warrants to purchase common stock | 10,000 | 150,000 | ||||||||||
Proceeds from warrant exercise | $ 1,000 | $ 15,000 | ||||||||||
Mark Allen [Member] | ||||||||||||
Class of Stock [Line Items] | ||||||||||||
Warrant exercise price | $ 0.098 | |||||||||||
Warrants to purchase common stock | 275,000 | |||||||||||
Mark Allen [Member] | Employment Agreement [Member] | ||||||||||||
Class of Stock [Line Items] | ||||||||||||
Warrant exercise price | $ 0.04 | $ 0.08 | ||||||||||
Proceeds from warrant exercise | $ 69,375 | |||||||||||
Salary | $ 15,000 | |||||||||||
Shares issued for compensation | 2,000,000 | |||||||||||
Warrant to purchase common stock | 1,000,000 | |||||||||||
Vesting, description | equally vesting over 24 months | |||||||||||
Warrants expire term | 36 months | |||||||||||
Number of warrant exercised | 1,650,000 | |||||||||||
Mark Allen [Member] | Employment Agreement [Member] | Issued Upon Signing [Member] | ||||||||||||
Class of Stock [Line Items] | ||||||||||||
Shares issued for compensation | 1,000,000 | |||||||||||
Mark Allen [Member] | Employment Agreement [Member] | At Completion of 6 Month Probationary Period [Member] | ||||||||||||
Class of Stock [Line Items] | ||||||||||||
Shares issued for compensation | 1,000,000 | |||||||||||
Mark Allen [Member] | Warrant [Member] | ||||||||||||
Class of Stock [Line Items] | ||||||||||||
Proceeds from warrant exercise | $ 26,875 | |||||||||||
Joel Oppenheim [Member] | ||||||||||||
Class of Stock [Line Items] | ||||||||||||
Share issued price per share | $ 0.08 | |||||||||||
Proceeds from private placement | $ 12,500 | |||||||||||
Warrant exercise price | $ 0.08 | |||||||||||
Shares issued on conversion of debt | 156,250 | |||||||||||
Cash payment of debt | $ 2,500 | |||||||||||
Debt instrument, forgiveness amount | $ 10,000 | |||||||||||
Warrant to purchase common stock | 1,250,000 | |||||||||||
Jovian [Member] | ||||||||||||
Class of Stock [Line Items] | ||||||||||||
Private placement, description | purchased 1 unit of the debt private placement with gross proceeds of $12,500 | |||||||||||
Warrant exercise price | $ 0.08 | |||||||||||
Shares issued on conversion of debt | 156,250 | |||||||||||
Warrants to purchase common stock | 312,500 | |||||||||||
Tariq Chaudhary [Member] | ||||||||||||
Class of Stock [Line Items] | ||||||||||||
Number of shares issued | 500,000 | |||||||||||
Accrued salaries | $ 77,500 | |||||||||||
Conversion Price | $ 0.15 | |||||||||||
Series A Preferred Stock [Member] | ||||||||||||
Class of Stock [Line Items] | ||||||||||||
Preferred stock, dividend rate | 900.00% | |||||||||||
2019 Units [Member] | Private Placement [Member] | ||||||||||||
Class of Stock [Line Items] | ||||||||||||
Share issued price per share | $ 0.08 | |||||||||||
Number of shares issued | 1,875,000 | |||||||||||
Proceeds from private placement | $ 150,000 | |||||||||||
Private placement, description | Each 2019 Unit was comprised of one common share and two warrants entitling the holder to exercise such warrant for one common share for a period of two years from the date of issuance. The warrants have exercise price of $0.10 per share. See additional description of the detail transactions concerning those warrants in Note 7: Related Party Transactions |
RELATED PARTY TRANSACTIONS (Det
RELATED PARTY TRANSACTIONS (Details Narrative) | Dec. 22, 2020USD ($)$ / sharesshares | Dec. 15, 2020USD ($)$ / sharesshares | Sep. 01, 2020USD ($)$ / sharesshares | May 29, 2020USD ($)a | May 29, 2020CAD ($) | Jan. 20, 2020USD ($)$ / sharesshares | Aug. 21, 2019USD ($)$ / sharesshares | Dec. 31, 2020USD ($)shares | Dec. 31, 2019USD ($)shares | Jul. 23, 2019$ / shares | Feb. 09, 2018 |
Related Party Transaction [Line Items] | |||||||||||
Number of shares issued | shares | 2,000,000 | ||||||||||
Exercise price of warrants | $ / shares | $ 0.04 | $ 0.08 | |||||||||
Purchase price | $ 944,055 | ||||||||||
Payment for contingent consideration | $ 1,000,000 | ||||||||||
West texas intermediate terms, description | At the time WTI price exceeded $50/bbl, the Company would pay an additional $750,000. In addition, at the time WTI price exceeded $57/bbl the Company would pay an additional $250,000 (for a cumulative contingent total of $1,000,000) | At the time WTI price exceeded $50/bbl, the Company would pay an additional $750,000. In addition, at the time WTI price exceeded $57/bbl the Company would pay an additional $250,000 (for a cumulative contingent total of $1,000,000) | |||||||||
Additional funds required in other asset | $ 39,443 | $ 135,195 | |||||||||
Warrants to purchase shares of common stock, granted | shares | 1,000,000 | 18,650,000 | 12,250,000 | ||||||||
Warrant term | 36 months | ||||||||||
Warrants to purchase of common stock shares, exercised | shares | 1,650,000 | 125,000 | |||||||||
Proceeds from warrant exercise | $ 69,375 | $ 119,375 | $ 55,375 | ||||||||
Issued Upon Signing [Member] | |||||||||||
Related Party Transaction [Line Items] | |||||||||||
Number of shares issued | shares | 1,000,000 | ||||||||||
Six Month Probationary Period [Member] | |||||||||||
Related Party Transaction [Line Items] | |||||||||||
Number of shares issued | shares | 1,000,000 | ||||||||||
Alberta Enegry Regulator [Member] | |||||||||||
Related Party Transaction [Line Items] | |||||||||||
Amount of acquisition fund requirement | $ 599,851 | ||||||||||
Additional funds required in other asset | $ 385,336 | ||||||||||
Blue Sky Resources Ltd [Member] | |||||||||||
Related Party Transaction [Line Items] | |||||||||||
Business acquisition percentage | 50.00% | ||||||||||
Area of land | a | 280 | ||||||||||
Equity ownership interest percentage | 100.00% | ||||||||||
Purchase price | $ 20,000 | ||||||||||
Jovian [Member] | |||||||||||
Related Party Transaction [Line Items] | |||||||||||
Exercise price of warrants | $ / shares | $ 0.08 | ||||||||||
Jovian [Member] | Debt Private Placements [Member] | |||||||||||
Related Party Transaction [Line Items] | |||||||||||
Proceeds from issuance of debt | $ 50,000 | ||||||||||
Jovian Petroleum Resources Two [Member] | Debt Private Placements [Member] | |||||||||||
Related Party Transaction [Line Items] | |||||||||||
Number of shares issued | shares | 625,000 | ||||||||||
Fair value of warrants issued | $ 62,066 | ||||||||||
Jovian Petroleum Corporation [Member] | |||||||||||
Related Party Transaction [Line Items] | |||||||||||
Warrant to purchase of common stock | shares | 1,250,000 | ||||||||||
Shares issued, price per share | $ / shares | $ 0.08 | ||||||||||
Equity ownership interest percentage | 25.00% | ||||||||||
Joel Oppenheim [Member] | |||||||||||
Related Party Transaction [Line Items] | |||||||||||
Warrant to purchase of common stock | shares | 1,250,000 | ||||||||||
Shares issued, price per share | $ / shares | $ 0.08 | ||||||||||
Exercise price of warrants | $ / shares | $ 0.08 | ||||||||||
Joel Oppenheim [Member] | Debt Private Placements [Member] | |||||||||||
Related Party Transaction [Line Items] | |||||||||||
Proceeds from issuance of debt | $ 50,000 | ||||||||||
Number of shares issued | shares | 625,000 | ||||||||||
Fair value of warrants issued | $ 62,066 | ||||||||||
American Resource Offshore Inc. [Member] | Debt Private Placements [Member] | |||||||||||
Related Party Transaction [Line Items] | |||||||||||
Proceeds from issuance of debt | $ 12,500 | $ 25,000 | |||||||||
Number of shares issued | shares | 156,250 | 312,500 | |||||||||
Warrant to purchase of common stock | shares | 312,500 | 625,000 | |||||||||
Fair value of warrants issued | $ 31,033 | ||||||||||
Exercise price of warrants | $ / shares | $ 0.08 | $ 0.08 | |||||||||
Leo Womack [Member] | Debt Private Placements [Member] | |||||||||||
Related Party Transaction [Line Items] | |||||||||||
Proceeds from issuance of debt | $ 25,000 | ||||||||||
Number of shares issued | shares | 312,500 | ||||||||||
Warrant to purchase of common stock | shares | 625,000 | ||||||||||
Fair value of warrants issued | $ 31,033 | ||||||||||
Exercise price of warrants | $ / shares | $ 0.08 | ||||||||||
Mr allen [Member] | |||||||||||
Related Party Transaction [Line Items] | |||||||||||
Salary | $ 15,000 | ||||||||||
Mr allen [Member] | Consulting Agreement [Member] | |||||||||||
Related Party Transaction [Line Items] | |||||||||||
Number of shares issued | shares | 250,000 | ||||||||||
Mark Allen [Member] | Debt Private Placements [Member] | |||||||||||
Related Party Transaction [Line Items] | |||||||||||
Warrants to purchase of common stock shares, exercised | shares | 1,650,000 | ||||||||||
Tariq Chaudhary [Member] | |||||||||||
Related Party Transaction [Line Items] | |||||||||||
Number of shares issued | shares | 500,000 | ||||||||||
Accrued Salaries | $ 77,500 | ||||||||||
Debt conversion price per shares | $ / shares | $ 0.15 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Details Narrative) - USD ($) | Sep. 01, 2020 | Apr. 01, 2017 | Dec. 31, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 15, 2020 |
Financing Receivable, Past Due [Line Items] | ||||||
Common shares issued for the exercise of warrants, shares | 2,000,000 | |||||
Shares issued during period value | $ 119,375 | $ 150,000 | ||||
Warrant exercise price per share | $ 0.08 | $ 0.04 | ||||
Common Stock [Member] | ||||||
Financing Receivable, Past Due [Line Items] | ||||||
Common shares issued for the exercise of warrants, shares | 2,650,000 | 1,875,000 | ||||
Shares issued during period value | $ 2,650 | $ 1,875 | ||||
Common Stock [Member] | Mr Oppenheim [Member] | ||||||
Financing Receivable, Past Due [Line Items] | ||||||
Common shares issued for the exercise of warrants, shares | 2,000,000 | |||||
Shares issued during period value | $ 246,000 | |||||
Warrant to purchase common stock | 2,000,000 | |||||
Warrant exercise price per share | $ 0.14 | |||||
Houston [Member] | ||||||
Financing Receivable, Past Due [Line Items] | ||||||
Minimum contractual lease payments | $ 1,500 |
SCHEDULE OF INCOME TAX EXPENSES
SCHEDULE OF INCOME TAX EXPENSES (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | ||
Income tax (benefit) expense computed at statutory rates | $ (2,078,000) | $ (629,000) |
Non-deductible items | 85,000 | 69,000 |
Change in statutory, foreign tax, foreign exchange rates and other | (2,427,000) | 172,000 |
Change in valuation allowance | 4,420,000 | 388,000 |
Total |
SCHEDULE OF DEFERRED TAX ASSETS
SCHEDULE OF DEFERRED TAX ASSETS (Details) - USD ($) | Dec. 31, 2020 | Dec. 31, 2019 |
Deferred tax assets | ||
Net operating loss carryforwards | $ 5,772,000 | $ 2,174,000 |
Asset retirement obligation | 679,000 | 331,000 |
Oil and gas properties | (644,000) | (430,000) |
Property and equipment | 6,000 | |
Other | ||
Total deferred tax assets (liabilities) | 5,813,000 | 2,075,000 |
Less: Valuation allowance | (5,813,000) | (2,075,000) |
Net deferred tax assets (liabilities) |
INCOME TAXES (Details Narrative
INCOME TAXES (Details Narrative) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Operating losses valuation allowance | 100.00% | 100.00% |
Income tax description | The Tax Cuts and Jobs Act was signed into law on December 22, 2017 and reduced the corporate income tax rate from 34% to 21% | |
UNITED STATES | ||
Operating losses | $ 2.2 | |
Operating losses expiration, description | begin to expire if not utilized beginning in the year 2033 | |
CANADA | ||
Accumulated non-capital tax losses | $ 27.5 | |
Accumulated non-capital tax losses, expiration description | expire in 2039 |
SCHEDULE OF LONG-LIVED ASSETS (
SCHEDULE OF LONG-LIVED ASSETS (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Segment Reporting Information [Line Items] | ||
Total long-lived assets | $ 5,952,084 | $ 11,451,088 |
Operating Segments [Member] | ||
Segment Reporting Information [Line Items] | ||
Revenue | 2,892,241 | 2,916,734 |
Production costs | (3,630,607) | (3,387,099) |
Depreciation, depletion, amortization and accretion | (1,435,039) | (1,037,019) |
Results of operations from producing activities | (2,173,405) | (1,507,384) |
Total long-lived assets | 5,952,084 | 11,451,088 |
Operating Segments [Member] | CANADA | ||
Segment Reporting Information [Line Items] | ||
Revenue | 2,860,324 | 2,827,877 |
Production costs | (3,377,055) | (3,021,805) |
Depreciation, depletion, amortization and accretion | (1,374,611) | (1,004,832) |
Results of operations from producing activities | (1,891,341) | (1,198,760) |
Total long-lived assets | 1,683,055 | 1,104,458 |
Operating Segments [Member] | UNITED STATES | ||
Segment Reporting Information [Line Items] | ||
Revenue | 31,917 | 88,857 |
Production costs | (253,552) | (365,294) |
Depreciation, depletion, amortization and accretion | (60,429) | (32,187) |
Results of operations from producing activities | (282,064) | (308,624) |
Total long-lived assets | $ 4,767,628 | $ 10,346,630 |
SCHEDULE OF REVENUES (Details)
SCHEDULE OF REVENUES (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Revenue, Major Customer [Line Items] | ||
Total revenues | $ 2,892,241 | $ 2,916,734 |
Customer A [Member] | ||
Revenue, Major Customer [Line Items] | ||
Total revenues | 2,860,324 | 2,827,877 |
Customer B [Member] | ||
Revenue, Major Customer [Line Items] | ||
Total revenues | 31,917 | 88,857 |
Other Customer [Member] | ||
Revenue, Major Customer [Line Items] | ||
Total revenues |
SEGMENT REPORTING (Details Narr
SEGMENT REPORTING (Details Narrative) | 12 Months Ended |
Dec. 31, 2020Integer | |
Segment Reporting [Abstract] | |
Number of reportable segments | 1 |
SCHEDULE OF COSTS INCURRED IN O
SCHEDULE OF COSTS INCURRED IN OIL AND GAS PROPERTY ACQUISITION, EXPLORATION AND DEVELOPMENT (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Extractive Industries [Abstract] | ||
Property acquisitions | $ 678,765 | |
Unevaluated | ||
Evaluated | ||
Exploration | ||
Development | ||
Total costs incurred | $ 678,765 |
SCHEDULE OF CAPITALIZED COSTS I
SCHEDULE OF CAPITALIZED COSTS IN OIL AND GAS PROPERTY ACQUISITION, EXPLORATION AND DEVELOPMENT (Details) - USD ($) | Dec. 31, 2020 | Dec. 31, 2019 |
Capitalized costs: | ||
Unevaluated properties | ||
Evaluated properties | 6,456,367 | 11,400,285 |
Gross capitalized costs | 6,456,367 | 11,400,284 |
Less: Accumulated DD&A | (2,693,300) | (1,520,527) |
Net capitalized costs | $ 3,763,067 | $ 9,879,758 |
SCHEDULE OF PROVED OIL AND GAS
SCHEDULE OF PROVED OIL AND GAS RESERVES (Details) - bbl | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Extractive Industries [Abstract] | ||
Proved oil and gas reserves, beginning | 1,800,457 | 1,894,180 |
Proved oil and gas reserves, revisions of prior estimates | (860,450) | (11,217) |
Proved oil and gas reserves, purchases of reserves in place | 466,800 | |
Proved oil and gas reserves, disposition of mineral in place | ||
Proved oil and gas reserves, production | (95,135) | (82,506) |
Proved oil and gas reserves, ending | 1,311,672 | 1,800,457 |
SCHEDULE OF PROVED DEVELOPED AN
SCHEDULE OF PROVED DEVELOPED AND UNDEVELOPED RESERVES (Details) - bbl | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Reserve Quantities [Line Items] | ||
Estimated quantities of proved undeveloped reserves | 1,311,672 | 1,800,457 |
Proved oil and gas reserves, beginning | 1,800,457 | 1,894,180 |
Acquired reserves | 466,800 | |
Disposition of reserves | ||
Revision of prior estimates | (860,450) | (11,217) |
Production | (95,135) | (82,506) |
Proved oil and gas reserves, ending | 1,311,672 | 1,800,457 |
Proved Developed Reserve [Member] | ||
Reserve Quantities [Line Items] | ||
Estimated quantities of proved undeveloped reserves | 1,245,512 | 1,668,437 |
Proved oil and gas reserves, beginning | 1,668,437 | |
Proved oil and gas reserves, ending | 1,245,512 | 1,668,437 |
Proved Undeveloped Reserves [Member] | ||
Reserve Quantities [Line Items] | ||
Estimated quantities of proved undeveloped reserves | 66,160 | 112,020 |
Proved oil and gas reserves, beginning | 112,020 | |
Proved oil and gas reserves, ending | 66,160 | 112,020 |
Proved Developed Reserve and Non-producing [Member] | ||
Reserve Quantities [Line Items] | ||
Estimated quantities of proved undeveloped reserves | 1,245,512 | 1,688,439 |
Proved oil and gas reserves, beginning | 1,688,439 | |
Acquired reserves | 466,800 | |
Disposition of reserves | ||
Revision of prior estimates | (827,234) | |
Production | (95,135) | |
Proved oil and gas reserves, ending | 1,245,512 | 1,688,439 |
Proved Undeveloped Reserve [Member] | ||
Reserve Quantities [Line Items] | ||
Estimated quantities of proved undeveloped reserves | 66,160 | 112,020 |
Proved oil and gas reserves, beginning | 112,020 | |
Revision of prior estimates | (45,860) | |
Proved oil and gas reserves, ending | 66,160 | 112,020 |
SCHEDULE OF STANDARDIZED MEASUR
SCHEDULE OF STANDARDIZED MEASURE OF DISCOUNTED FUTURE NET CASH FLOWS (Details) - USD ($) | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Extractive Industries [Abstract] | |||
Future cash inflows | $ 47,647,500 | $ 95,308,120 | |
Future production costs | (25,203,830) | (30,349,800) | |
Future development costs | (2,148,510) | (2,051,730) | |
Future income taxes | |||
Future net cash flows | 20,295,160 | 62,906,590 | |
Discount of future net cash flows at 10% per annum | (12,339,240) | (37,081,860) | |
Standardized measure of discounted future net cash flows | $ 7,956,920 | $ 25,824,730 | $ 23,638,725 |
SCHEDULE OF STANDARDIZED MEAS_2
SCHEDULE OF STANDARDIZED MEASURE OF DISCOUNTED FUTURE NET CASH FLOWS (Details) (Parenthetical) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Extractive Industries [Abstract] | ||
Discount of future net cash flows interest rate | 10.00% | 10.00% |
SCHEDULE OF CHANGES IN STANDARD
SCHEDULE OF CHANGES IN STANDARDIZED MEASURE OF DISCOUNTED FUTURE CASH FLOWS (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Extractive Industries [Abstract] | ||
Beginning of year | $ 25,824,730 | $ 23,638,725 |
Sales and transfers of oil & gas produced, net of production costs | (735,300) | (1,514,335) |
Net changes in prices and production costs | (249,508) | 5,780,704 |
Changes in estimated future development costs | 96,780 | (676,141) |
Acquisitions/dispositions of minerals in place, net of production costs | ||
Revision of previous estimates | (14,938,598) | (878,772) |
Change in discount | 436,490 | 1,386,793 |
Change in production rate or other | (2,477,674) | (1,912,244) |
End of year | $ 7,956,920 | $ 25,824,730 |
SUPPLEMENTAL INFORMATION RELA_3
SUPPLEMENTAL INFORMATION RELATING TO OIL AND GAS PRODUCING ACTIVITIES (UNAUDITED) (Details Narrative) - USD ($) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Property, Plant and Equipment [Line Items] | ||
Asset retirement obligation | $ 3,624,133 | $ 1,723,364 |
Discount of future net cash flows interest rate | 10.00% | 10.00% |
Utikuma Field [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Assets acquired, percentage | 50.00% | |
Purchase price | $ 678,765 | |
Asset retirement obligation | $ 906,146 |
SUBSEQUENT EVENTS (Details Narr
SUBSEQUENT EVENTS (Details Narrative) - USD ($) | Mar. 30, 2021 | Jan. 29, 2021 | Jan. 25, 2021 | Sep. 01, 2020 | Jan. 31, 2021 | Dec. 15, 2020 | Dec. 31, 2019 | Aug. 21, 2019 | Jul. 23, 2019 |
Subsequent Event [Line Items] | |||||||||
Number of common stock issued | 2,000,000 | ||||||||
Warrant exercise price per share | $ 0.08 | $ 0.04 | |||||||
Joel Oppenheim [Member] | |||||||||
Subsequent Event [Line Items] | |||||||||
Shares issued, price per share | $ 0.08 | ||||||||
Warrant exercise price per share | $ 0.08 | ||||||||
Mark Allen [Member] | |||||||||
Subsequent Event [Line Items] | |||||||||
Warrants to purchase common stock | 275,000 | ||||||||
Warrant exercise price per share | $ 0.098 | ||||||||
Subsequent Event [Member] | Joel Oppenheim [Member] | |||||||||
Subsequent Event [Line Items] | |||||||||
Number of common stock issued | 316,491 | ||||||||
Subsequent Event [Member] | Mark Allen [Member] | |||||||||
Subsequent Event [Line Items] | |||||||||
Number of common stock issued | 5,400,000 | ||||||||
Unpaid contract wages | $ 30,000 | ||||||||
Conversion of stock shares converted | 333,333 | ||||||||
Shares issued, price per share | $ 0.09 | ||||||||
Secured loan | $ 270,000 | ||||||||
Debt conversion price per shares | $ 0.05 | ||||||||
Warrants to purchase common stock | 5,400,000 | ||||||||
Warrant exercise price per share | $ 0.08 | ||||||||
Subsequent Event [Member] | Executive Salary Payable Agreement [Member] | |||||||||
Subsequent Event [Line Items] | |||||||||
Number of stock issued related to compensation | 1,992,272 | ||||||||
Subsequent Event [Member] | Settlement and Mutual Release Agreement [Member] | Paul Deputy [Member] | |||||||||
Subsequent Event [Line Items] | |||||||||
Description on agreement terms | Paul Deputy was reinstated Interim Chief Financial Officer, signed a Settlement and Mutual Release Agreement. In exchange for releasing the Company for any current, outstanding payroll and/or service-related liability at January 29, 2021, the Company agreed to pay Mr. Deputy $50,000, to be paid in $2,500 monthly increments, starting April 1, 2021. In addition, was issued 250,000 shares of Petrolia common stock | ||||||||
Cash payment | $ 50,000 | ||||||||
Number of shares to be issued | 250,000 |