Document And Entity Information
Document And Entity Information - USD ($) | 12 Months Ended | |
Jul. 31, 2015 | Nov. 12, 2015 | |
Document and Entity Information [Abstract] | ||
Entity Registrant Name | Amazing Energy Oil & Gas, Co. | |
Document Type | 10-K | |
Current Fiscal Year End Date | --07-31 | |
Entity Common Stock, Shares Outstanding | 53,441,528 | |
Entity Public Float | $ 1,650,149 | |
Amendment Flag | false | |
Entity Central Index Key | 1,375,618 | |
Entity Current Reporting Status | Yes | |
Entity Voluntary Filers | No | |
Entity Filer Category | Smaller Reporting Company | |
Entity Well-known Seasoned Issuer | No | |
Document Period End Date | Jul. 31, 2015 | |
Document Fiscal Year Focus | 2,015 | |
Document Fiscal Period Focus | FY |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) | Jul. 31, 2015 | Jul. 31, 2014 |
CURRENT ASSETS: | ||
Cash and cash equivalents | $ 97,531 | $ 434,619 |
Prepaid expenses | 18,530 | |
Oil and gas receivables, related party | 111,678 | 234,598 |
Total current assets | 227,739 | 669,217 |
Property, plant, and equipment, net of accumulated depreciation of $12,399 and $10,828, respectively | 25,150 | 59,917 |
Mineral property | 3,314 | |
OIL AND GAS PROPERTIES, full cost method: | ||
Evaluated properties, net of accumulated depletion of $873,027 and $566,882, respectively | 6,131,752 | 6,185,430 |
Other assets | 26,622 | 26,621 |
Total Assets | 6,414,577 | 6,941,185 |
CURRENT LIABILITIES: | ||
Accounts payable | 38,449 | |
Accounts payable, related party | 203,939 | 145,176 |
Accrued liabilities | 76,447 | 6,805 |
Interest payable, related party | 343,219 | 112,259 |
Short-term convertible debt, related party | 519,014 | 412,413 |
Loan and deposit from Afranex | 100,213 | |
Total current liabilities | 1,281,281 | 676,653 |
LONG TERM LIABILITIES: | ||
Asset retirement obligation | 240,254 | 278,612 |
Long-term convertible debt, related party | 2,849,459 | 2,956,061 |
Total long-term liabilities | 3,089,713 | 3,234,673 |
Total Liabilities | 4,370,994 | 3,911,326 |
STOCKHOLDERS' EQUITY: | ||
Preferred stock, no par value per share, 10,000,000 shares authorized, 0 and 4,987,027 shares issued and outstanding, respectively | 49,870 | |
Common stock, $0.001 par value per share, 3,000,000,000 shares authorized, 53,441,528 and 10,249,088 issued and outstanding respectively | 53,442 | 10,249 |
Treasury stock | (90,998) | |
Additional paid-in capital | 20,480,686 | 6,467,291 |
Accumulated deficit | (18,490,545) | (3,406,553) |
2,043,583 | 3,029,859 | |
Total Liabilities and Stockholders' Equity | $ 6,414,577 | $ 6,941,185 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parentheticals) - USD ($) | Jul. 31, 2015 | Jul. 31, 2014 |
Property, plant, and equipment, net of accumulated depreciation (in Dollars) | $ 12,399 | $ 10,828 |
Evaluated properties, net of accumulated depletion (in Dollars) | $ 873,027 | $ 566,882 |
Preferred stock, shares authorized | 10,000,000 | 10,000,000 |
Preferred stock, shares issued | 0 | 4,987,027 |
Preferred stock, shares outstanding | 0 | 4,987,027 |
Common stock, par value (in Dollars per share) | $ 0.001 | $ 0.001 |
Common stock, authorized | 3,000,000,000 | 3,000,000,000 |
Common stock, issued | 53,441,528 | 10,249,088 |
Common stock, outstanding | 53,441,528 | 10,249,088 |
Consolidated Statement of Opera
Consolidated Statement of Operations - USD ($) | 12 Months Ended | |
Jul. 31, 2015 | Jul. 31, 2014 | |
REVENUES: | ||
Oil and Gas Sales | $ 781,133 | $ 1,414,276 |
OPERATING COSTS AND EXPENSES: | ||
Lease operating expenses | 683,889 | 449,960 |
Selling, general, and administrative costs | 694,423 | 671,873 |
Depreciation expense | 22,283 | 10,828 |
Depletion expense | 306,145 | 500,355 |
Accretion expense | 11,596 | 12,605 |
Gain on asset sale | (5,192) | |
Total operating costs and expenses | 1,713,144 | 1,645,621 |
LOSS FROM OPERATIONS | (932,011) | (231,345) |
OTHER INCOME (EXPENSE): | ||
Interest income | 218 | (192,313) |
Loss on modification of related party notes payable | (13,921,168) | |
Interest expense, related party | (231,031) | (192,313) |
Total other income (expense) | (14,151,981) | (192,313) |
NET LOSS | (15,083,992) | (423,658) |
NET LOSS - NON-CONTROLLING INTEREST | (6,157,632) | |
NET LOSS - AMAZING ENERGY OIL AND GAS, CO. | (8,926,360) | (423,658) |
PREFERRED DIVIDENDS ATTRIBUTABLE TO AMAZING ENERGY OIL AND GAS, CO. | (834,697) | |
NET LOSS ATTRIBUTABLE TO AMAZING ENERGY OIL AND GAS, CO. COMMON STOCKHOLDERS | $ (9,761,057) | $ (423,658) |
NET LOSS PER COMMON SHARE - Basic and diluted (in Dollars per share) | $ (0.56) | $ (0.04) |
WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING - Basic and diluted (in Shares) | 17,509,962 | 10,268,666 |
Consolidated Statement of Chang
Consolidated Statement of Changes in Stockholders' Equity - USD ($) | Preferred Stock [Member] | Common Stock [Member] | Treasury Stock [Member] | Noncontrolling Interest [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Total |
BALANCES (in Shares) | 4,977,027 | 10,287,925 | |||||
BALANCES at Jul. 31, 2013 | $ 49,770 | $ 10,288 | $ (90,998) | $ 6,382,658 | $ (2,982,895) | $ 3,368,823 | |
Forfeiture of stock award | $ (39) | (9,256) | (9,295) | ||||
Forfeiture of stock award (in Shares) | (38,837) | ||||||
Share based compensation | 76,489 | 76,489 | |||||
Preferred shares issued for cash | $ 100 | 17,400 | $ 17,500 | ||||
Preferred shares issued for cash (in Shares) | 10,000 | 10,000 | |||||
(423,658) | $ (423,658) | ||||||
BALANCES at Jul. 31, 2014 | $ 49,870 | $ 10,249 | (90,998) | 6,467,291 | (3,406,553) | $ 3,029,859 | |
BALANCES (in Shares) | 4,987,027 | 10,249,088 | 10,249,088 | ||||
$ 1,875 | $ 9,744 | 1,493,860 | $ 1,495,735 | ||||
(in Shares) | 1,874,895 | ||||||
Share based compensation | $ 94 | 69,775 | 74,906 | 75,000 | |||
Share based compensation (in Shares) | 93,745 | ||||||
Conversion option on modification of debt | 5,806,767 | 8,114,401 | 13,921,168 | ||||
Subsidiary shares exchanged for shares of common stock | $ 21,215 | (7,172,817) | 8,645,974 | (1,494,372) | |||
Subsidiary shares exchanged for shares of common stock (in Shares) | 21,215,169 | ||||||
Conversion of preferred stock | $ (49,720) | $ 4,289 | 45,431 | 4,289 | |||
Conversion of preferred stock | (4,972,027) | 4,288,544 | |||||
Preferred shares repurchased | $ (150) | (21,850) | $ (22,000) | ||||
Preferred shares repurchased (in Shares) | (15,000) | 15,000 | |||||
Dividends paid on preferred stock | (1,432,017) | $ (1,432,017) | |||||
Recapitalization | $ 80 | $ 2,666 | $ 112,848 | (246,369) | (130,775) | ||
Recapitalization (in Shares) | 79,755 | 2,666,396 | |||||
Non-controlling interest resulting from recapitalization | $ (6,885) | $ 1,286,531 | (2,774,018) | 1,494,372 | |||
Non-controlling interest resulting from recapitalization (in Shares) | (6,885,059) | ||||||
(15,083,992) | (15,083,992) | ||||||
BALANCES at Jul. 31, 2015 | $ 53,442 | $ 20,480,686 | $ (18,490,545) | $ 2,043,583 | |||
BALANCES (in Shares) | 53,441,528 | 53,441,528 |
Consolidated Statement of Cash
Consolidated Statement of Cash Flows - USD ($) | 12 Months Ended | |
Jul. 31, 2015 | Jul. 31, 2014 | |
CASH FLOWS FROM OPERATING ACTIVITIES | ||
Net loss | $ (15,083,992) | $ (423,658) |
provided (used) by operating activities: | ||
Stock based compensation expense | 75,000 | 76,489 |
Gain from asset sale | 5,192 | |
Depreciation expense | 22,283 | 10,828 |
Depletion expense | 306,145 | 500,355 |
Accretion expense | 11,596 | 12,605 |
Loss on modification of related party notes payable | (13,921,168) | |
Changes in operating assets and liabilities, net of business acquired: | ||
Accounts receivable | (160,695) | |
Oil and gas receivables, related party | 122,920 | |
Accounts payable | 14,430 | (23,798) |
Accounts payable, related party | 58,763 | 34,560 |
Prepaid expenses and other assets | (18,530) | 1,122 |
Accrued liabilities | 22,277 | 113,462 |
Interest payable, related party | 230,960 | |
NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES | (154,893) | 131,976 |
CASH FLOWS FROM INVESTING ACTIVITIES | ||
Proceeds from the sale of oil and gas properties | 66,777 | 30,785 |
Cash paid for purchase of property and equipment | (1,325) | (21,949) |
Proceeds from the sale of property and equipment | 19,000 | |
Cash acquired in business acquisition | 37,508 | |
Cash paid for purchase of oil and gas properties | (369,198) | (1,048,697) |
NET CASH (USED IN) INVESTING ACTIVITIES | (247,238) | (1,039,861) |
CASH FLOWS FROM FINANCING ACTIVITIES | ||
Proceeds from sale of common stock, net of issuance costs | 1,519,060 | |
Proceeds from sale of preferred stock | 17,500 | |
Repurchase of preferred shares | 22,000 | |
Preferred stock dividends paid | (1,432,017) | |
NET CASH PROVIDED BY FINANCING ACTIVITIES | 65,043 | 17,500 |
NET DECREASE IN CASH | (337,088) | (890,385) |
CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR | 434,619 | 1,325,004 |
CASH AND CASH EQUIVALENTS AT YEAR END | 97,531 | 434,619 |
NON-CASH INVESTING AND FINANCING ACTIVITIES: | ||
Mineral property acquired in reverse acquisition | 3,314 | |
Liablities acquired in reverse acquisition | 171,597 | |
Subsidiary shares exchanged for common stock | 21,215 | |
Oil and gas properties purchased with accounts payable | 4,274,870 | 7,014 |
Conversion of preferred stock | $ 4,289 | |
SUPPLEMENTAL DISCLOSURE OF CASH FLOWS: | ||
Cash paid for interest | $ 80,185 |
Note 1. Nature of Business
Note 1. Nature of Business | 12 Months Ended |
Jul. 31, 2015 | |
Disclosure Text Block [Abstract] | |
Nature of Operations [Text Block] | Note 1. Nature of Business On October 14, 2014, Gold Crest Mines, Inc. ("Gold Crest", "the Company" or the "the Parent") incorporated a wholly owned Nevada subsidiary corporation named Amazing Energy Oil and Gas, Co. On October 15, 2014, Gold Crest merged the foregoing wholly owned subsidiary corporation into Gold Crest Mines, Inc. and, pursuant to Nevada law, changed its name to Amazing Energy Oil and Gas, Co. The Company entered into a change in control agreement as the first step in a reverse acquisition process with certain shareholders of Amazing Energy, Inc. on October 7, 2014. Through its primary subsidiary, Amazing Energy, Inc. (also a Nevada corporation) the main business of the Company is the exploration, development, and production of oil and gas in the Permian Basin of west Texas. Amazing Energy, Inc. was formed in 2010 as a Texas corporation and then changed its domicile to Nevada in 2011. The Company owns interests in oil and gas properties located in Texas. The Company is primarily engaged in the acquisition, exploration and development of oil and gas properties and the production and sale of oil and natural gas. Amazing Energy, LLC was formed in December 2008 as a Texas Limited Liability Company. In December of 2010, Amazing Energy, Inc. and Amazing Energy, LLC were combined as commonly controlled entities. |
Note 2. Recapitalization
Note 2. Recapitalization | 12 Months Ended |
Jul. 31, 2015 | |
Business Combinations [Abstract] | |
Business Combination Disclosure [Text Block] | Note 2. Recapitalization On October 7, 2014, Amazing Energy, Inc. entered into a change in control agreement ("Plan of Merger") with Gold Crest Mines, Inc. Pursuant to the change in control agreement, the shareholders of Amazing Energy, Inc. would control approximately 95% of the shares of common stock of the Parent, Amazing Energy Oil and Gas, Co. Specific to the terms of the agreement, certain controlling shareholders of Amazing Energy, Inc. exchanged 12,829,000 shares of its common stock to Gold Crest Mines, Inc. for 384,848,504 (pre-reverse stock split, see below) shares of common stock and 79,755 shares of Series "A" convertible preferred stock of Gold Crest Mines. Each Series "A" convertible preferred share is convertible into 10,000 shares of Gold Crest Mines, Inc. common stock. The remaining outstanding shares of Amazing Energy, Inc. were held by non-controlling interests. On July 31, 2015, the non-controlling interest shares were converted into shares of the Parent's common stock at the same exchange ratio as the controlling shareholders. The Plan of Merger was accounted for as a reverse acquisition with Amazing Energy, Inc. (the legal subsidiary) regarded as the accounting acquirer and Gold Crest Mines, Inc. (the legal parent) deemed the accounting acquiree. The reverse acquisition is characterized as a recapitalization and the consolidated financial statements represent the continuation of the financial statements of the Amazing Energy Inc. with the exception of the capital structure which reflects the capital structure of Gold Crest Mines, Inc. On October 15, 2014, the Board of Directors approved a one-for-forty reverse stock split of the Company's common stock. The one-for-forty reverse stock split was effective February 15, 2015. As a result of the reverse stock split, the number of issued and outstanding shares was adjusted. Following the effective date of the reverse stock split, the par value of the common stock remained at $0.001 per share. Unless otherwise indicated, all references herein to shares outstanding and share issuances have been adjusted to give effect to the aforementioned stock split. |
Note 3. Significant Accounting
Note 3. Significant Accounting Policies | 12 Months Ended |
Jul. 31, 2015 | |
Significant Accounting Policies And Going Concern [Abstract] | |
Significant Accounting Policies And Going Concern | Note 3. Significant Accounting Policies The Company maintains its accounts on the accrual method of accounting in accordance with accounting principles generally accepted in the United States of America ("GAAP"). Accounting principles followed and the methods of applying those principles, which materially affect the determination of financial position, results of operations and cash flows are summarized below: Use of estimates Basis of presentation – Risks and uncertainties Concentration of risks Cash and Cash Equivalents Income Taxes Fair value of financial instruments Oil and gas receivables Property, plant, and equipment Depreciation Oil and gas properties Depletion and amortization Long-Lived Assets Ceiling test The determination of oil and gas reserves is a subjective process, and the accuracy of any reserve estimate depends on the quality of available data and the application of engineering and geological interpretation and judgment. Estimates of economically recoverable reserves and future net cash flows depend on a number of variable factors and assumptions that are difficult to predict and may vary considerably from actual results. In particular, reserve estimates for wells with limited or no production history are less reliable than those based on actual production. Subsequent re- evaluation of reserves and cost estimates related to future development of proved oil and gas reserves could result in significant revisions to proved reserves. There other issues, such as changes in regulatory requirements, technological advances, and other factors, which are difficult to predict, could also affect estimates of proved reserves in the future. Gains and losses on the sale of oil and gas properties are not generally reflected in income. Sales of less than 100% of the Company's interest in the oil and gas property are treated as a reduction of the capital cost of the field, with no gain or loss recognized, as long as doing so does not significantly affect the unit-of-production depletion rate. Costs of retired equipment, net of salvage value, are usually charged to accumulated depreciation. Asset retirement obligations Inherent in the fair value calculation of an ARO are numerous assumptions and judgments including the ultimate settlement amounts, inflation factors, credit-adjusted discount rates, timing of settlement, and changes in the legal, regulatory, environmental, and political environments. To the extent future revisions to these assumptions impact the fair value of the existing ARO liability, a corresponding adjustment is made to the related long-lived asset. Stock-based compensation Revenue recognition Environmental laws and regulations Major customers Fair value measurements The Company discloses the following information for each class of assets and liabilities that are measured at fair value: 1) the fair value measurement; 2) the level within the fair value hierarchy in which the fair value measurements in their entirety fall, segregating significant other observable inputs (Level 2), and significant unobservable inputs (Level 3); 3) for fair value measurements using significant unobservable inputs (Level 3), a reconciliation of the beginning and ending balances, separately presenting changes during the period attributable to the following: a) total gains or losses for the period (realized and unrealized), segregating those gains or losses included in earnings, and a description of where those gains or losses included in earnings are reported in the statement of operations; b) the amount of these gains or losses attributable to the change in unrealized gains or losses relating to those assets or liabilities still held at the reporting period date and a description of where those unrealized gains or losses are reported; c) purchases, sales, issuances, and settlements (net); and d) transfers into and/or out of Level 3. 4) the amount of the total gains or losses for the period included in earnings that are attributable to the change in unrealized gains or losses relating to those assets and liabilities still held at the reporting date and a description of where those unrealized gains or losses are reported in the statement of operations; and 5) in annual periods only, the valuation technique(s) used to measure fair value and a discussion of changes in valuation techniques, if any, during the period. At July 31, 2015 and 2014 the Company had no assets or liabilities subject to fair value measurements on a recurring basis. Going Concern As of the independent registered public accounting firm's report date, the Company has not yet achieved profitable operations, has had accumulated losses since its inception and expects to incur further losses in the development of its business. These conditions raise substantial doubt about the Company's ability to continue as a going concern. The Company's ability to continue as a going concern is dependent on its ability to generate future profitable operations and/or to obtain the necessary financing to meet its obligations and repay its liabilities arising from normal business operations when they come due. Management's plan to address the Company's ability to continue as a going concern includes: (1) obtaining debt or equity funding from private placement or institutional sources; (2) obtaining loans from financial institutions, where possible, or (3) participating in joint venture transactions with third parties. Although management believes that it will be able to obtain the necessary funding to allow the Company to remain a going concern through the methods discussed above, there can be no assurances that such methods will prove successful. The accompanying consolidated financial statements do not include any adjustments that might result from the outcome of this uncertainty. Recent accounting pronouncements In May 2014, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2014-09, "Revenue from Contracts with Customers" (ASU 2014-09), which supersedes the revenue recognition requirements in FASB Accounting Standards Codification (ASC) Topic 605, "Revenue Recognition". The guidance requires that an entity recognize revenue in a way that depicts the transfer of promised goods or services to customers in the amount that reflects the consideration to which the entity expects to be entitled to in exchange for those goods and services. The guidance will be effective for annual reporting periods beginning after December 15, 2017, including interim periods within that reporting period and is to be applied retrospectively, with early application not permitted. The Company is currently evaluating the new standard and its impact on the Company's consolidated financial statements. |
Note 4. Earnings Per Share
Note 4. Earnings Per Share | 12 Months Ended |
Jul. 31, 2015 | |
Earnings Per Share [Abstract] | |
Earnings Per Share [Text Block] | Note 4. Earnings Per Share Basic earnings per share include no dilution and are computed by dividing net income (loss) by the weighted-average number of shares outstanding during the period. Diluted earnings per share reflect the potential dilution of securities that could share in the earnings of the Company. At July 31, 2015 the number of potential shares outstanding relating to conversion options contained in related party debt would provide for 13,921,168 (See Note 10) additional shares of common stock. Potentially dilutive securities outstanding are not included in the calculation when such securities would have an anti-dilutive effect on earnings per share. |
Note 5. Oil and Gas Properties
Note 5. Oil and Gas Properties | 12 Months Ended |
Jul. 31, 2015 | |
Oil and Gas Property [Abstract] | |
Oil and Gas Properties [Text Block] | Note 5. Oil and Gas Properties The Company is currently participating in oil and gas exploration activities in Texas. All of the Company's oil and gas properties are located in the United States. Pecos County, Texas Years Ended July 31, 2015 2014 Proved leasehold costs $ 2,521,916 $ 2,530,888 Cost of wells and development 4,274,870 3,963,480 Asset retirement obligation, asset 207,993 257,944 Total cost of oil and gas properties 7,004,779 6,752,312 Less: Accumulated depletion (873,027 ) (566,882 ) Oil and gas properties, net full cost method $ 6,131,752 $ 6,185,430 |
Note 6. Related Party Receivabl
Note 6. Related Party Receivables and Payables | 12 Months Ended |
Jul. 31, 2015 | |
Related Party Transactions [Abstract] | |
Related Party Transactions Disclosure [Text Block] | Note 6. Related Party Receivables and Payables The Company contracts under a joint operating agreement with Jilpetco, Inc. as the oil and gas field operating entity. All of the Company's revenues are received from and well operating expenses are billed by, Jilpetco, Inc., which is wholly owned by Jed Miesner, sales and remits the Company's share to the Company. Related party payables consist of accrued oil and gas drilling and production expenses billed to the Company by Jilpetco, Inc. related party receivables and accounts payable are as follows: Years Ended July 31, 2015 2014 Related Party: Oil and gas receivables $ 111,678 $ 234,598 Accounts payable $ 203,939 $ 145,176 |
Note 7. Commitments and Conting
Note 7. Commitments and Contingencies | 12 Months Ended |
Jul. 31, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies Disclosure [Text Block] | Note 7. Commitments and Contingencies The Company is subject to contingencies as a result of environmental laws and regulations. Present and future environmental laws and regulations applicable to the Company's operations could require substantial capital expenditures or could adversely affect its operations in other ways that cannot be predicted at this time. Lease Commitments – Legal Proceedings Mineral Properties |
Note 8. Stockholders' Equity
Note 8. Stockholders' Equity | 12 Months Ended |
Jul. 31, 2015 | |
Stockholders' Equity Note [Abstract] | |
Stockholders' Equity Note Disclosure [Text Block] | Note 8. Stockholders' Equity The Company is authorized to issue 3,000,000,000 shares of its common stock. All shares of common stock are equal to each other with respect to voting, liquidation, dividend, and other rights. Owners of shares are entitled to one vote for each share owned at any Shareholders' meeting. The common stock of the Company does not have cumulative voting rights, which means that the holders of more than fifty percent (50%) of the shares voting in an election of directors may elect all of the directors if they choose to do so. The Company is authorized to issue 10,000,000 shares of its preferred stock with a no par value per share. Each share of preferred stock has 10,000 votes and votes with the common shares on all matters submitted to the shareholders for a vote. During the year ended July 31, 2015, the Company had the following equity transactions: Shares Issued for Cash Stock Based Compensation Repurchase of Preferred Shares Non-Controlling Interest During the year ended July 31, 2014, the Company sold 10,000 shares of its preferred stock for $17,500. Also during fiscal 2014, the Company recognized $67,194 in net stock based compensation from share grants in prior years that had vested in 2014. The compensation was valued based upon management's estimate of fair value of the shares granted at the date of the grant. |
Note 9. Income Taxes
Note 9. Income Taxes | 12 Months Ended |
Jul. 31, 2015 | |
Income Tax Disclosure [Abstract] | |
Income Tax Disclosure [Text Block] | Note 9. Income Taxes Income taxes are accounted for under the asset and liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and operating loss carry forwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. A valuation allowance is established to reduce deferred tax assets if it is more likely than not that the related tax benefits will not be realized. Authoritative guidance for uncertainty in income taxes requires that the Company recognize the financial statement benefit of a tax position only after determining that the relevant tax authority would more likely than not sustain the position following an examination. Management has reviewed the Company's tax positions and determined there were no uncertain tax positions requiring recognition in the consolidated financial statements. Currently tax years from fiscal 2013 through 2015 remain open for examination by tax authorities. Net operating losses prior to 2013 could be adjusted during an examination of open years. Estimated interest and penalties related to potential underpayment on any unrecognized tax benefits are classified as a component of tax expense in the statement of operation. The Company has not recorded any interest or penalties associated with unrecognized tax benefits for any periods covered by these financial statements. The following is reconciliation between the federal income tax benefit computed at the statutory federal income tax rate of 35% and actual income tax benefit for the years ended July 31, 2015 and July 31, 2014: 2015 2014 Statutory benefit (5,279,397 ) (148,280 ) Permanent differences: Debt modification 4,872,409 - Other 65,401 14,867 Change in valuation allowance 341,587 133,413 Net tax benefit $ - $ - The tax effects of temporary differences that gave rise to significant portions of deferred tax assets and liabilities at July 31, 2015 and July 31, 2014 are as follows: Years Ended July 31, 2015 2014 Deferred Tax Assets: Net operating loss carryforward $ 2,416,443 $ 2,091,317 Deferred Tax Liabilities: Intangible drilling and other costs for oil and gas properties (1,305,495 ) (1,321,956 ) Net deferred tax assets and liabilities 1,110,948 769,361 Less: Valuation allowance (1,110,948 ) (769,361 ) Total Deferred Tax Assets and Liabilities $ - $ - The Company had federal net operating loss carry forwards of approximately $7,107,186 and $6,150,933 at July 31, 2015 and July 31, 2014, respectively. The federal net operating loss carry forwards will begin to expire in fiscal years ending July 31, 2031 through July 31, 2035. Realization of the deferred tax asset is dependent, in part, on generating sufficient taxable income prior to expiration of the loss carry forwards. The Company has placed a 100% valuation allowance against the net deferred tax asset because future realization of these assets is not assured. |
Note 10. Related Party Converti
Note 10. Related Party Convertible Debt | 12 Months Ended |
Jul. 31, 2015 | |
Long Term Debt Related Party [Abstract] | |
Long Term Debt Related Party | Note 10. Related Party Convertible Debt On January 3, 2011, the Company formalized a loan agreement with Jed Miesner, the Company's CEO and Chairman for $1,940,000. The loan is scheduled to mature on December 31, 2030, bear interest at the rate of 8% per annum, and are collateralized with a leasehold deed of trust covering certain leasehold interests in Pecos County, Texas. At July 31, 2015 and 2014 the short term components of this loan were $291,559 and $230,709 respectively. The long term amounts at July 31, 2015 and 2014 were $1,648,441 and $1,709,291 respectively. On December 30, 2010, Amazing Energy, LLC, (a wholly owned subsidiary of the Company) entered into a $2,000,000 line of credit facility with JLM Strategic Investments, an entity controlled by Jed Miesner. Funds advanced on the line of credit mature on December 31, 2030, bear interest at the rate of 8% per annum and are collateralized with a leasehold deed of trust covering certain leasehold interests in Pecos County, Texas. At July 31, 2015 and 2014 the short term components of this loan were $62,138 and $50,890 respectively. The long term amounts at July 31, 2015 and 2014 were $266,335 and $277,584 respectively. On December 30, 2010, Amazing Energy, LLC, formalized loan agreements with Petro Pro Ltd., an entity also controlled by Jed Miesner for $1,100,000. The loan is scheduled to mature on December 31, 2030, bear interest at the rate of 8% per annum and are collateralized with a leasehold deed of trust covering certain leasehold interests in Pecos County, Texas. At July 31, 2015 and 2014 the short term components of this loan were $165,317 and $130,814 respectively. The long term amounts at July 31, 2015 and 2014 were $934,683 and $969,186 respectively. As of July 31, 2015 and 2014, the accrued and unpaid interest due to related parties was $343,219 and $112,259, respectively. Related party interest expense for the years ended July 30, 2015 and 2014 was $231,031 and $192,313 respectively. Contractual principal maturities for the two loan agreements and the credit facility outstanding at July 31, 2015, for the remaining terms are summarized by year as follows: Contractual Principal Maturities Years Ending JLM Strategic July 31, Jed Miesner Petro Pro, Ltd. Investments, LP Total 2016 $ 291,559 $ 165,317 $ 62,138 $ 519,014 2017 49,448 28,037 8,372 85,857 2018 53,403 30,280 9,042 92,725 2019 57,676 32,703 9,765 100,144 2020 62,290 35,319 10,547 108,156 Subsequent years 1,425,624 808,344 228,609 2,462,577 $ 1,940,000 $ 1,100,000 $ 328,473 $ 3,368,473 No principal payments have been paid on the two loan agreements and the credit facility since their inception. At July 31, 2015, Mr. Miesner has waived any event of default on the aforementioned delinquent payments of principal and interest due on the loans and credit facility. Modification of Debt Agreements Fair value of the Company's stock price at the date of conversion $ 1.00 Conversion rate as adjusted for the Amazing Energy Inc. exchange ratio $ 0.26 Estimated volatility 248.00 % Risk free interest rate 1.88 % Conversion period 15 yrs. The fair value was calculated using Level 2 inputs. |
Note 11. Loan and Deposit from
Note 11. Loan and Deposit from Afranex | 12 Months Ended |
Jul. 31, 2015 | |
Policy Text Block [Abstract] | |
Loan Commitments, Policy [Policy Text Block] | Note 11. Loan and Deposit from Afranex As part of the recapitalization (Note 2), the Company has entered into an Option Agreement (the "Agreement") with Afranex; our wholly owned subsidiary Kisa; and, North Fork LLC whereby the Company and Kisa granted Afranex an exclusive option to acquire, at the election of Afranex, either: (1) 100% of the issued and outstanding stock of Kisa; or, (2) 100% of Kisa's right, title and interest in certain mining permits and associated assets. The option expires on December 31, 2015 if not exercised by then. Afranex was obligated to pay a non-refundable fee of $20,000 within 5 days of the execution of the Agreement which has been received by the Company and recorded as a deposit on option agreement and included in the loan from Afranex. The Agreement is subject to additional terms, warranties, and conditions between Kisa, North Fork, Afranex and the Company. Upon exercise of the option, Afranex will pay $380,000 for either the Kisa shares or the Kisa assets. As of July 31, 2015, Afranex has provided non-interest bearing loans totaling approximately $80,000 that will be paid back to Afranex in the event they do not exercise the option. |
Note 12. Asset Retirement Oblig
Note 12. Asset Retirement Obligations | 12 Months Ended |
Jul. 31, 2015 | |
Asset Retirement Obligation Disclosure [Abstract] | |
Asset Retirement Obligation Disclosure [Text Block] | Note 12. Asset Retirement Obligations The Company accounts for its future asset retirement obligations by recording the fair value of the liability during the period in which it was incurred. The associated asset retirement costs are capitalized as part of the carrying amount of the long lived asset. The Company depletes the amount added to proved oil and gas property costs and gathering assets using the units-of-production method. The Company's asset retirement obligation consists of costs related to the plugging of wells, removal of facilities and equipment and site restoration on its oil and gas properties and gathering assets. The asset retirement liability is allocated to operating expense using a systematic and rational method. The information below reconciles the value of the asset retirement obligation for the periods presented. Years Ended July 31, 2015 2014 Asset retirement obligation - Beginning of year $ 278,612 $ 252,870 Asset retirement obligation incurred 7,434 24,847 Accretion 11,596 12,605 Revisions in estimated cash flows (57,388 ) (11,710 ) Asset retirement obligation - End of year $ 240,254 $ 278,612 |
Note 13. Subsequent Events
Note 13. Subsequent Events | 12 Months Ended |
Jul. 31, 2015 | |
Subsequent Events [Abstract] | |
Subsequent Events [Text Block] | Note 13. Subsequent Events On August 10, 2015, we entered into an agreement with Jed Miesner, President and CEO, to acquire all of his interest (100% of the total outstanding shares of common stock) of Jilpetco, Inc., a Texas corporation ("Jilpetco") in exchange for 500,000 restricted shares of our common stock. Jilpetco is engaged in the business of operating and providing oilfield services to oil and gas properties. As a result, Jilpetco will become our wholly owned subsidiary corporation. |
Note 14. Supplemental Oil and G
Note 14. Supplemental Oil and Gas Disclosures (Unaudited) | 12 Months Ended |
Jul. 31, 2015 | |
Policy Text Block [Abstract] | |
Oil and Gas Properties Policy [Policy Text Block] | Note 14. Supplemental Oil and Gas Disclosures (Unaudited) Costs Incurred 2015 2014 Development costs $ 369,198 $ 1,055,711 Total costs incurred $ 369,198 $ 1,055,711 Capitalized Costs 2015 2014 Proved properties $ 7,004,779 $ 6,752,312 Total oil and gas properties 7,004,779 6,752,312 Accumulted DD&A (873,027 ) (566,882 ) Net oil and gas properties $ 6,131,752 $ 6,185,430 Proved Oil and Gas Reserve · Future revenues were based on an un-weighted 12-month average of the first-day-of-the-month price held constant throughout the life of the properties. · Production and development costs were computed using year-end costs assuming no change in present economic conditions. · Future net cash flows were discounted at an annual rate of 10%. Reserve estimates are inherently imprecise and these estimates are expected to change as future information becomes available. Basis of Presentation As of July 31, 2015, we had nineteen wells drilled with fifteen producing and four wells shut-in awaiting workovers. The proved reserves as of July 31, 2015 represent the reserves that were estimated to be recovered from nineteen current wells and plus a well (the WWJD #15) that was drilled prior to July 31, 2015, and subsequently completed. There are also three wells planned for future drilling. All direct offset well locations in this report are proved undeveloped and are based on 10-acre drainage patterns unless current developed completions are estimated to drain an area larger than their volumetric assignment. In this case, the reserves of certain offset locations have been reduced. All locations have a scheduled Queens and/or Grayburg reservoir completion and each of these reservoir completions includes the cost of drilling a single wellbore. All reserves included in this report were estimated using either historical performance or volumetric methods. Estimated Quantities of Net Proved Oil and Natural Gas Reserves 2015 2014 Oil (1) Natural Gas (1) Oil (1) Natural Gas (1) reserves: Beginning of year 274,750 1,055,550 597,898 1,992,686 Revisions of previous estimates 15,023 122,743 (351,117 ) (1,112,901 ) Extensions, discoveries and other additions 55,050 82,580 39,435 283,223 Production 12,467 51,627 (11,466 ) (107,458 ) End of year 357,290 1,312,500 274,750 1,055,550 Beginning of year 201,150 753,670 419,214 1,677,460 End of year 262,740 1,170,670 201,150 753,670 (1) Oil reserves are stated in barrels; gas reserves are stated in thousand cubic feet. The downward revision of previous gas reserves estimates was primarily due to reassessment of reservoir mapping based on additional log analysis from drilling. Standardized Measure of Discounted Future Net Cash Flows Relating to Proved Oil and Gas Reserves – In reviewing the information that follows, we believe that the following factors should be taken into account: · future costs and sales prices will probably differ from those required to be used in these calculations; · actual production rates for future periods may vary significantly from the rates assumed in the calculations; · a 10% discount rate may not be reasonable relative to risk inherent in realizing future net oil and gas revenues; and · future net revenues may be subject to different rates of income taxation. Under the standardized measure, future cash inflows were estimated by applying year-end oil and gas prices applicable to our reserves to the estimated future production of year-end proved reserves. Future cash inflows do not reflect the impact of open hedge positions. Future cash inflows were reduced by estimated future development, abandonment and production costs based on year-end costs in order to arrive at net cash flows before tax. Future income tax expense has been computed by applying year-end statutory tax rates to aggregate future pre-tax net cash flows reduced by the tax basis of the properties involved and tax carryforwards. Use of a 10% discount rate and year- end prices and costs are required by ASC 932-235. In general, management does not rely on the following information in making investment and operating decisions. Such decisions are based upon a wide range of factors, including estimates of probable as well as proved reserves and varying price and cost assumptions considered more representative of a range of possible outcomes. Basis of Presentation Standardized Measure of Discounted Future Net Cash Flows – 2015 2014 Future cash inflows $ 24,859,110 $ 27,530,730 Future production costs (5,929,190 ) (8,252,720 ) Future development costs (1,361,600 ) (1,908,400 ) Future income tax expense (6,148,912 ) (6,079,363 ) Discount at 10% for estimated timing of cash flows (3,569,707 ) (3,529,403 ) Standardized measure of discounted future net cash flows $ 7,849,701 $ 7,760,844 The following table presents a reconciliation of changes in the standardized measure of discounted future net cash flows: Years Ended July 31, 2015 2014 Standardized Measure, beginning of year $ 7,760,844 $ 10,468,301 Sales of oil produced, net of production costs (97,244 ) (964,317 ) Net changes in prices, development and production costs (1,394,949 ) (3,492,083 ) Extensions, discoveries and improved recovery, less related costs 2,047,764 2,605,202 Development costs incurred and changes during the period 369,198 1,055,711 Revisions of previous quantity estimates (6,394,510 ) (8,232,979 ) Accretion of discount 7,079,423 4,059,268 Net changes in production rates and other 161,173 428,376 Net changes in income taxes (1,681,992 ) 1,833,365 Standardized Measure, end of year $ 7,849,707 $ 7,760,844 |
Note 5. Oil and Gas Properties
Note 5. Oil and Gas Properties (Tables) | 12 Months Ended |
Jul. 31, 2015 | |
Oil and Gas Property [Abstract] | |
Property, Plant and Equipment [Table Text Block] | Years Ended July 31, 2015 2014 Proved leasehold costs $ 2,521,916 $ 2,530,888 Cost of wells and development 4,274,870 3,963,480 Asset retirement obligation, asset 207,993 257,944 Total cost of oil and gas properties 7,004,779 6,752,312 Less: Accumulated depletion (873,027 ) (566,882 ) Oil and gas properties, net full cost method $ 6,131,752 $ 6,185,430 |
Note 6. Related Party Receiva22
Note 6. Related Party Receivables and Payables (Tables) | 12 Months Ended |
Jul. 31, 2015 | |
Related Party Transactions [Abstract] | |
Schedule of Related Party Payable | Years Ended July 31, 2015 2014 Related Party: Oil and gas receivables $ 111,678 $ 234,598 Accounts payable $ 203,939 $ 145,176 |
Note 9. Income Taxes (Tables)
Note 9. Income Taxes (Tables) | 12 Months Ended |
Jul. 31, 2015 | |
Income Tax Disclosure [Abstract] | |
Schedule of Components of Income Tax Expense (Benefit) [Table Text Block] | 2015 2014 Statutory benefit (5,279,397 ) (148,280 ) Permanent differences: Debt modification 4,872,409 - Other 65,401 14,867 Change in valuation allowance 341,587 133,413 Net tax benefit $ - $ - |
Schedule of Deferred Tax Assets and Liabilities [Table Text Block] | Years Ended July 31, 2015 2014 Deferred Tax Assets: Net operating loss carryforward $ 2,416,443 $ 2,091,317 Deferred Tax Liabilities: Intangible drilling and other costs for oil and gas properties (1,305,495 ) (1,321,956 ) Net deferred tax assets and liabilities 1,110,948 769,361 Less: Valuation allowance (1,110,948 ) (769,361 ) Total Deferred Tax Assets and Liabilities $ - $ - |
Note 10. Related Party Conver24
Note 10. Related Party Convertible Debt (Tables) | 12 Months Ended |
Jul. 31, 2015 | |
Long Term Debt Related Party [Abstract] | |
Contractual Obligation, Fiscal Year Maturity Schedule [Table Text Block] | Contractual Principal Maturities Years Ending JLM Strategic July 31, Jed Miesner Petro Pro, Ltd. Investments, LP Total 2016 $ 291,559 $ 165,317 $ 62,138 $ 519,014 2017 49,448 28,037 8,372 85,857 2018 53,403 30,280 9,042 92,725 2019 57,676 32,703 9,765 100,144 2020 62,290 35,319 10,547 108,156 Subsequent years 1,425,624 808,344 228,609 2,462,577 $ 1,940,000 $ 1,100,000 $ 328,473 $ 3,368,473 |
Schedule of Servicing Liabilities at Fair Value [Table Text Block] | Fair value of the Company's stock price at the date of conversion $ 1.00 Conversion rate as adjusted for the Amazing Energy Inc. exchange ratio $ 0.26 Estimated volatility 248.00 % Risk free interest rate 1.88 % Conversion period 15 yrs. |
Note 12. Asset Retirement Obl25
Note 12. Asset Retirement Obligations (Tables) | 12 Months Ended |
Jul. 31, 2015 | |
Asset Retirement Obligation Disclosure [Abstract] | |
Schedule of Asset Retirement Obligations [Table Text Block] | Years Ended July 31, 2015 2014 Asset retirement obligation - Beginning of year $ 278,612 $ 252,870 Asset retirement obligation incurred 7,434 24,847 Accretion 11,596 12,605 Revisions in estimated cash flows (57,388 ) (11,710 ) Asset retirement obligation - End of year $ 240,254 $ 278,612 |
Note 14. Supplemental Oil and26
Note 14. Supplemental Oil and Gas Disclosures (Unaudited) (Tables) | 12 Months Ended |
Jul. 31, 2015 | |
Policy Text Block [Abstract] | |
Schedule of Development Wells Drilled [Table Text Block] | 2015 2014 Development costs $ 369,198 $ 1,055,711 Total costs incurred $ 369,198 $ 1,055,711 |
Schedule of Aging of Capitalized Exploratory Well Costs [Table Text Block] | 2015 2014 Proved properties $ 7,004,779 $ 6,752,312 Total oil and gas properties 7,004,779 6,752,312 Accumulted DD&A (873,027 ) (566,882 ) Net oil and gas properties $ 6,131,752 $ 6,185,430 |
Schedule of Proved Developed and Undeveloped Oil and Gas Reserve Quantities [Table Text Block] | 2015 2014 Oil (1) Natural Gas (1) Oil (1) Natural Gas (1) reserves: Beginning of year 274,750 1,055,550 597,898 1,992,686 Revisions of previous estimates 15,023 122,743 (351,117 ) (1,112,901 ) Extensions, discoveries and other additions 55,050 82,580 39,435 283,223 Production 12,467 51,627 (11,466 ) (107,458 ) End of year 357,290 1,312,500 274,750 1,055,550 Beginning of year 201,150 753,670 419,214 1,677,460 End of year 262,740 1,170,670 201,150 753,670 |
Schedule of Changes in Standardized Measure of Discounted Future Net Cash Flows [Table Text Block] | 2015 2014 Future cash inflows $ 24,859,110 $ 27,530,730 Future production costs (5,929,190 ) (8,252,720 ) Future development costs (1,361,600 ) (1,908,400 ) Future income tax expense (6,148,912 ) (6,079,363 ) Discount at 10% for estimated timing of cash flows (3,569,707 ) (3,529,403 ) Standardized measure of discounted future net cash flows $ 7,849,701 $ 7,760,844 |
Fair Value, Instruments Classified in Shareholders' Equity Measured on Recurring Basis, Unobservable Input Reconciliation [Table Text Block] | Years Ended July 31, 2015 2014 Standardized Measure, beginning of year $ 7,760,844 $ 10,468,301 Sales of oil produced, net of production costs (97,244 ) (964,317 ) Net changes in prices, development and production costs (1,394,949 ) (3,492,083 ) Extensions, discoveries and improved recovery, less related costs 2,047,764 2,605,202 Development costs incurred and changes during the period 369,198 1,055,711 Revisions of previous quantity estimates (6,394,510 ) (8,232,979 ) Accretion of discount 7,079,423 4,059,268 Net changes in production rates and other 161,173 428,376 Net changes in income taxes (1,681,992 ) 1,833,365 Standardized Measure, end of year $ 7,849,707 $ 7,760,844 |
Note 2. Recapitalization (Detai
Note 2. Recapitalization (Details) - USD ($) | 2 Months Ended | |||||||
Oct. 07, 2014 | Dec. 31, 2015 | Aug. 10, 2015 | Jul. 31, 2015 | Oct. 31, 2014 | Oct. 15, 2014 | Sep. 30, 2014 | Jul. 31, 2014 | |
Business Combinations [Abstract] | ||||||||
Equity Method Investment, Ownership Percentage | 95.00% | 100.00% | 100.00% | 41.70% | 41.70% | 58.30% | ||
Business Acquisition, Share Exchange (in Dollars) | $ 12,829,000 | |||||||
Business Acquisition, Equity Interest Issued or Issuable, Number of Shares | 384,848,504 | |||||||
Business Acquisition, Equity Interest Issued or Issuable, Number of Preferred Shares | 79,755 | |||||||
Convertible Preferred Stock, Shares Issued upon Conversion | 10,000 | |||||||
Common Stock, Par or Stated Value Per Share (in Dollars per share) | $ 0.001 | $ 0.001 | $ 0.001 |
Note 4. Earnings Per Share (Det
Note 4. Earnings Per Share (Details) | 12 Months Ended |
Jul. 31, 2015shares | |
Earnings Per Share [Abstract] | |
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 13,921,168 |
Note 5. Oil and Gas Propertie29
Note 5. Oil and Gas Properties (Details) - 12 months ended Jul. 31, 2015 | m² | a |
Oil and Gas Property [Abstract] | ||
Area of Land (in Square Meters) | 70,000 | 5,840 |
Exploratory Wells Drilled, Net Productive | 19 | |
Development Wells Drilled, Net Productive | 15 | |
Exploratory Wells Drilled, Net Nonproductive | 4 |
Note 5. Oil and Gas Propertie30
Note 5. Oil and Gas Properties (Details) - Oil and Gas Properties - USD ($) | 12 Months Ended | 24 Months Ended | ||
Jul. 31, 2015 | Jul. 31, 2014 | Jul. 31, 2015 | Jul. 31, 2013 | |
Oil and Gas Properties [Abstract] | ||||
Proved leasehold costs | $ 2,521,916 | $ 2,530,888 | $ 2,521,916 | |
Cost of wells and development | 4,274,870 | 7,014 | 1,055,711 | |
Asset retirement obligation, asset | 207,993 | 257,944 | 207,993 | $ 252,870 |
Total cost of oil and gas properties | 7,004,779 | 6,752,312 | 7,004,779 | |
Less: Accumulated depletion | 12,399 | 10,828 | 12,399 | |
Oil and gas properties, net full cost method | $ 6,131,752 | $ 6,185,430 | $ 6,131,752 |
Note 6. Related Party Receiva31
Note 6. Related Party Receivables and Payables (Details) - Related Party Payables - USD ($) | Jul. 31, 2015 | Jul. 31, 2014 |
Related Party: | ||
Oil and gas receivables | $ 111,678 | $ 234,598 |
Accounts payable | $ 203,939 | $ 145,176 |
Note 7. Commitments and Conti32
Note 7. Commitments and Contingencies (Details) | 43 Months Ended | |||||
Feb. 28, 2019USD ($) | Jul. 31, 2015USD ($) | Jul. 31, 2015m² | Jul. 31, 2015ft² | Jul. 31, 2015$ / item | Jul. 31, 2015a | |
Commitments and Contingencies Disclosure [Abstract] | ||||||
Area of Real Estate Property (in Square Feet) | ft² | 3,700 | |||||
Occupancy, Net | $ 52,000 | |||||
Mining Claim (in Dollars per Item) | $ / item | 38 | |||||
Area of Land (in Acres) | 70,000 | 5,840 | ||||
Mining Property, Carrying Value | $ 3,314 |
Note 8. Stockholders' Equity (D
Note 8. Stockholders' Equity (Details) - USD ($) | Feb. 11, 2015 | Dec. 02, 2014 | Oct. 03, 2014 | Oct. 02, 2014 | Jul. 31, 2015 | Jul. 31, 2014 | Dec. 31, 2015 | Aug. 10, 2015 | Oct. 31, 2014 | Oct. 07, 2014 | Sep. 30, 2014 |
Stockholders' Equity Note [Abstract] | |||||||||||
Common Stock, Shares Authorized (in Shares) | 3,000,000,000 | 3,000,000,000 | |||||||||
Preferred Stock, Shares Authorized (in Shares) | 10,000,000 | 10,000,000 | |||||||||
Preferred Stock, Voting Rights | 10,000 | ||||||||||
Development Stage Entities, Stock Issued, Shares, Issued for Cash (in Shares) | 28,000 | 2,500,000 | |||||||||
Development Stage Entities, Stock Issued, Value, Issued for Cash | $ 23,325 | $ 1,495,735 | $ 1,495,735 | ||||||||
Share-based Compensation | $ 55,000 | $ 125,000 | $ 75,000 | $ 76,489 | |||||||
Stock Issued During Period, Value, Share-based Compensation, Gross | $ 167,280 | $ 75,000 | |||||||||
Stock Repurchased During Period, Shares (in Shares) | 15,000 | ||||||||||
Payments for Repurchase of Convertible Preferred Stock | $ (22,000) | ||||||||||
Equity Method Investment, Ownership Percentage | 41.70% | 100.00% | 100.00% | 41.70% | 95.00% | 58.30% | |||||
Income (Loss) Attributable to Noncontrolling Interest | $ 6,157,632 | ||||||||||
Preferred Stock Issued During Period, Shares, Issued for Cash (in Shares) | 10,000 | ||||||||||
Preferred Stock Issued During Period, Value, Issued for Cash | $ 17,500 | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested, Weighted Average Grant Date Fair Value (in Dollars per share) | $ 67,194 |
Note 9. Income Taxes (Details)
Note 9. Income Taxes (Details) - USD ($) | 12 Months Ended | |
Jul. 31, 2015 | Jul. 31, 2014 | |
Income Tax Disclosure [Abstract] | ||
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 35.00% | |
Deferred Tax Assets, Operating Loss Carryforwards, Subject to Expiration | $ 7,107,186 | $ 6,150,933 |
Deferred Tax Assets, Net of Valuation Allowance | $ 1 | $ (769,361) |
Note 9. Income Taxes (Details)
Note 9. Income Taxes (Details) - Reconciliation of Federal Income Tax Benefit - USD ($) | 12 Months Ended | |
Jul. 31, 2015 | Jul. 31, 2014 | |
Reconciliation of Federal Income Tax Benefit [Abstract] | ||
Statutory benefit | $ (5,279,397) | $ (148,280) |
Permanent differences: | ||
Debt modification | (13,921,168) | |
Other | 65,401 | 14,867 |
Change in valuation allowance | $ 341,587 | $ 133,413 |
Note 9. Income Taxes (Details36
Note 9. Income Taxes (Details) - Deferred Tax Assets and Liabilities - USD ($) | Jul. 31, 2015 | Jul. 31, 2014 |
Deferred Tax Assets: | ||
Net operating loss carryforward | $ 2,416,443 | $ 2,091,317 |
Deferred Tax Liabilities: | ||
Intangible drilling and other costs for oil and gas properties | (1,305,495) | (1,321,956) |
Net deferred tax assets and liabilities | 1,110,948 | 769,361 |
Less: Valuation allowance | $ 1 | $ (769,361) |
Note 10. Related Party Conver37
Note 10. Related Party Convertible Debt (Details) | Feb. 02, 2015$ / shares | Apr. 30, 2015USD ($) | Jul. 31, 2015USD ($) | Jul. 31, 2015USD ($) | Jul. 31, 2014USD ($) | Jul. 31, 2015USD ($) | Dec. 31, 2030 | Jul. 30, 2015USD ($) | Jul. 30, 2014USD ($) | Jan. 03, 2011USD ($) | Dec. 31, 2010USD ($) | Dec. 30, 2010USD ($) |
Long Term Debt Related Party [Abstract] | ||||||||||||
Due to Officers or Stockholders | $ 1,940,000 | |||||||||||
Debt Instrument, Interest Rate, Effective Percentage | 8.00% | 8.00% | ||||||||||
Short-Term Debt, Related Party | $ 291,559 | $ 291,559 | $ 230,709 | $ 291,559 | $ 165,317 | $ 130,814 | ||||||
Long-Term Debt, Due to a Related Party | 1,648,441 | 1,648,441 | 1,709,291 | $ 1,648,441 | $ 934,683 | $ 969,186 | ||||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 2,000,000 | |||||||||||
Line of Credit Facility, Interest Rate During Period | 8.00% | |||||||||||
Short-Term Line of Credit | 62,138 | 62,138 | 50,890 | $ 62,138 | ||||||||
Long-term Line of Credit | 266,335 | 266,335 | 277,584 | 266,335 | ||||||||
Debt Instrument, Face Amount | $ 1,100,000 | |||||||||||
Interest Payable | $ 343,219 | 343,219 | 112,259 | $ 343,219 | ||||||||
Interest Expense | $ (218) | $ 192,313 | ||||||||||
Debt Instrument, Interest Rate, Increase (Decrease) | 6.00% | |||||||||||
Debt Instrument, Convertible, Conversion Price (in Dollars per share) | $ / shares | $ 0.60 | |||||||||||
Debt Instrument, Convertible, Number of Equity Instruments | 6,041,775 | 13,921,168 | ||||||||||
Debt Instrument, Convertible, Carrying Amount of Equity Component | $ 13,921,168 |
Note 10. Related Party Conver38
Note 10. Related Party Convertible Debt (Details) - Contractual Principal Maturities - USD ($) | Jul. 31, 2021 | Jul. 31, 2020 | Jul. 31, 2019 | Jul. 31, 2018 | Jul. 31, 2017 | Jul. 31, 2016 | Jul. 31, 2015 |
Contractual Principal Maturities [Abstract] | |||||||
$ 1,425,624 | $ 62,290 | $ 57,676 | $ 53,403 | $ 49,448 | $ 291,559 | $ 1,940,000 | |
808,344 | 35,319 | 32,703 | 30,280 | 28,037 | 165,317 | 1,100,000 | |
228,609 | 10,547 | 9,765 | 9,042 | 8,372 | 62,138 | 328,473 | |
$ 2,462,577 | $ 108,156 | $ 100,144 | $ 92,725 | $ 85,857 | $ 519,014 | $ 3,368,473 |
Note 10. Related Party Conver39
Note 10. Related Party Convertible Debt (Details) - Modification of Debt Agreements – On February 1, 2015, the Company amended the related party loan ag | 12 Months Ended |
Jul. 31, 2015$ / shares | |
Modification of Debt Agreements – On February 1, 2015, the Company amended the related party loan ag [Abstract] | |
Fair value of the Company's stock price at the date of conversion (in Dollars per share) | $ 1 |
Conversion rate as adjusted for the Amazing Energy Inc. exchange ratio | 0.26 |
Estimated volatility | 248.00% |
Risk free interest rate | 1.88% |
Conversion period | 15 years |
Note 11. Loan and Deposit fro40
Note 11. Loan and Deposit from Afranex (Details) - USD ($) | Dec. 31, 2015 | Aug. 10, 2015 | Aug. 05, 2015 | Jul. 31, 2015 | Oct. 31, 2014 | Oct. 07, 2014 | Sep. 30, 2014 |
Policy Text Block [Abstract] | |||||||
Equity Method Investment, Ownership Percentage | 100.00% | 100.00% | 41.70% | 41.70% | 95.00% | 58.30% | |
Contractual Obligation | $ 80,000 | $ 380,000 | $ 20,000 |
Note 12. Asset Retirement Obl41
Note 12. Asset Retirement Obligations (Details) - Asset Retirement Obligations - USD ($) | 12 Months Ended | |
Jul. 31, 2015 | Jul. 31, 2014 | |
Asset Retirement Obligations [Abstract] | ||
Asset retirement obligation | $ 257,944 | $ 252,870 |
Asset retirement obligation incurred | 7,434 | 24,847 |
Accretion | 11,596 | 12,605 |
Revisions in estimated cash flows | (57,388) | (11,710) |
Asset retirement obligation | $ 207,993 | $ 257,944 |
Note 13. Subsequent Events (Det
Note 13. Subsequent Events (Details) - shares | Aug. 10, 2015 | Dec. 31, 2015 | Jul. 31, 2015 | Oct. 31, 2014 | Oct. 07, 2014 | Sep. 30, 2014 |
Subsequent Events [Abstract] | ||||||
Equity Method Investment, Ownership Percentage | 100.00% | 100.00% | 41.70% | 41.70% | 95.00% | 58.30% |
Stock Issued During Period, Shares, Acquisitions | 500,000 |
Note 14. Supplemental Oil and43
Note 14. Supplemental Oil and Gas Disclosures (Unaudited) (Details) | 12 Months Ended |
Jul. 31, 2015 | |
Policy Text Block [Abstract] | |
Exploratory Wells Drilled, Net Productive | 19 |
Development Wells Drilled, Net Productive | 15 |
Exploratory Wells Drilled, Net Nonproductive | 4 |
Note 14. Supplemental Oil and44
Note 14. Supplemental Oil and Gas Disclosures (Unaudited) (Details) - Costs Incurred - USD ($) | 12 Months Ended | 24 Months Ended | |
Jul. 31, 2015 | Jul. 31, 2014 | Jul. 31, 2015 | |
Costs Incurred [Abstract] | |||
Development costs | $ 4,274,870 | $ 7,014 | $ 1,055,711 |
Total costs incurred | $ 369,198 | $ 1,055,711 |
Note 14. Supplemental Oil and45
Note 14. Supplemental Oil and Gas Disclosures (Unaudited) (Details) - Capitalized Costs - USD ($) | Jul. 31, 2015 | Jul. 31, 2014 |
Capitalized Costs [Abstract] | ||
Proved properties | $ 7,004,779 | $ 6,752,312 |
Total oil and gas properties | 7,004,779 | 6,752,312 |
Accumulted DD&A | (873,027) | (566,882) |
Net oil and gas properties | $ 6,131,752 | $ 6,185,430 |
Note 14. Supplemental Oil and46
Note 14. Supplemental Oil and Gas Disclosures (Unaudited) (Details) - Estimated Quantities of Net Proved Oil and Natural Gas Reserves - USD ($) | 12 Months Ended | ||
Jul. 31, 2015 | Jul. 31, 2014 | Jul. 31, 2013 | |
reserves: | |||
Beginning of year | $ 274,750 | $ 597,898 | |
Revisions of previous estimates | 15,023 | (351,117) | |
Extensions, discoveries and other additions | 55,050 | 39,435 | |
Production | 12,467 | (11,466) | |
End of year | $ 97,531 | $ 434,619 | $ 1,325,004 |
Note 14. Supplemental Oil and47
Note 14. Supplemental Oil and Gas Disclosures (Unaudited) (Details) - Standardized Measure of Discounted Future Net Cash Flows - USD ($) | 12 Months Ended | |
Jul. 31, 2015 | Jul. 31, 2014 | |
Standardized Measure of Discounted Future Net Cash Flows [Abstract] | ||
Future cash inflows | $ 24,859,110 | $ 27,530,730 |
Future production costs | 12,467 | (11,466) |
Future development costs | (1,361,600) | (1,908,400) |
Future income tax expense | (6,148,912) | (6,079,363) |
Discount at 10% for estimated timing of cash flows | (3,569,707) | (3,529,403) |
Standardized measure of discounted future net cash flows | $ 7,849,701 | $ 7,760,844 |
Note 14. Supplemental Oil and48
Note 14. Supplemental Oil and Gas Disclosures (Unaudited) (Details) - Reconciliation of Changes in Standardized Measure of Discounted Future Net Cash Flows - USD ($) | 12 Months Ended | |
Jul. 31, 2015 | Jul. 31, 2014 | |
Reconciliation of Changes in Standardized Measure of Discounted Future Net Cash Flows [Abstract] | ||
Standardized Measure | $ 7,849,701 | $ 7,760,844 |
Sales of oil produced, net of production costs | (97,244) | (964,317) |
Net changes in prices, development and production costs | (1,394,949) | (3,492,083) |
Extensions, discoveries and improved recovery, less related costs | 55,050 | 39,435 |
Development costs incurred and changes during the period | 369,198 | 1,055,711 |
Revisions of previous quantity estimates | 15,023 | (351,117) |
Accretion of discount | 7,079,423 | 4,059,268 |
Net changes in production rates and other | 161,173 | 428,376 |
Net changes in income taxes | $ (1,681,992) | $ 1,833,365 |