Fortem Resources (FTMRQ) 10-Q 15 Oct 13 2013 Q2 Quarterly report Financial data

Document_and_Entity_Informatio

Document and Entity Information	6 Months Ended
	Aug. 31, 2013	Oct. 15, 2013
Document And Entity Information
Entity Registrant Name	STRONGBOW RESOURCES INC.
Entity Central Index Key	1382231
Document Type	10-Q
Document Period End Date	31-Aug-13
Amendment Flag	FALSE
Current Fiscal Year End Date	-26
Is Entity a Well-known Seasoned Issuer?	No
Is Entity a Voluntary Filer?	No
Is Entity's Reporting Status Current?	Yes
Entity Filer Category	Smaller Reporting Company
Entity Common Stock, Shares Outstanding		110,086,705
Document Fiscal Period Focus	Q2
Document Fiscal Year Focus	2013

Balance_Sheets

Balance Sheets (USD $)	Aug. 31, 2013	Feb. 28, 2013
CURRENT ASSETS
Cash	$74,901	$4,429
Receivable	16,036	100,072
Prepaid expense and other	3,905	8,850
Current Assets	94,842	113,351
Equipment	62,388	63,988
Oil and gas properties, full cost method, unproven	1,434,632	1,401,463
Total Assets	1,591,862	1,578,802
LIABILITIES AND STOCKHOLDERS EQUITY (DEFICIT)
Accounts payable	1,147,024	1,309,679
Accrued liabilities	7,598	47,026
Due to related parties	64,395	63,928
Advances and Notes payable	527,084	539,627
Total current liabilities	1,746,101	1,960,260
Asset retirement obligations	31,754	31,259
Liabilities	1,777,855	1,991,519
STOCKHOLDERS' EQUITY (DEFICIT)
Capital Stock Authorized: 750,000,000 common shares, par value $0.001 Issued and outstanding 109,686,705 common shares (108,486,705 at February 28, 2013)	17,887	16,687
Additional paid in capital	1,930,704	1,640,484
Obligation to issue shares	100,000	100,000
Accumulated other Comprehensive loss	40,722	16,329
Deficit accumulated during the exploration stage	-2,275,306	-2,186,217
Total Stockholders' Equity (Deficit)	-185,993	-412,717
Total Liabilities and Stockholders' Equity (Deficit)	$1,591,862	$1,578,802

Balance_Sheets_Parenthetical

Balance Sheets (Parenthetical) (USD $)	Aug. 31, 2013	Feb. 28, 2013
Stockholders equity:
Common stock, par value	$0.00	$0.00
Common stock, authorized shares	750,000,000	750,000,000
Common stock, issued shares	109,686,705	108,486,705
Common stock, outstanding shares	109,686,705	108,486,705

Statements_of_Operations_Unaud

Statements of Operations (Unaudited) (USD $)	3 Months Ended		6 Months Ended		110 Months Ended
	Aug. 31, 2013	Aug. 31, 2012	Aug. 31, 2013	Aug. 31, 2012	Aug. 31, 2013
GENERAL AND ADMINISTRATIVE EXPENSES
Consulting	$0	$38,400	$0	$149,000	$565,949
Depreciation	800	0	1,600	0	1,600
Management fees	4,206	38,643	42,403	77,689	464,926
Office, travel and general	15,873	39,785	32,545	95,990	396,621
Professional fees	48,988	12,955	77,861	18,478	341,855
Total General and Administrative	-69,867	-129,783	-154,409	-341,157	-1,770,951
Gain on settlement of debt	19,175	0	56,190	0	105,138
Impairment of oil and gas property	0	0	0	0	-568,612
Interest expense	0	0	0	0	-25,011
Interest expense recovery	361	0	9,130	0	9,130
Loss on settlement of deposit	0	0	0	0	-25,000
NET LOSS	-50,331	-129,783	-89,089	-341,157	-2,275,306
Foreign Currency Translation	20,399	-15,380	24,393	-15,380	40,722
COMPREHENSIVE LOSS	($29,932)	($145,163)	($64,696)	($356,537)	($2,234,584)
BASIC AND DILUTED NET LOSS PER COMMON SHARE	$0	$0	$0	$0
WEIGHTED AVERAGE NUMBER OF BASIC AND DILUTED COMMON SHARES OUTSTANDING	109,684,705	108,182,357	109,143,401	107,488,793

Statements_of_Cash_Flows_Unaud

Statements of Cash Flows (Unaudited) (USD $)	6 Months Ended		110 Months Ended
	Aug. 31, 2013	Aug. 31, 2012	Aug. 31, 2013
CASH FLOWS FROM OPERATING ACTIVITIES
Net loss from continuing operations	($89,089)	($341,157)	($2,275,306)
Adjustments to reconcile net loss to net cash used in operating activities:
Gain from settlement of debt	-56,190	0	-105,138
Impairment of oil and gas property	0	0	568,612
Service fees paid in stock	0	44,000	44,000
Depreciation	1,600	0	1,600
Changes in non-cash working capital items
Receivable	84,036	0	-16,036
Prepaid expenses	4,945	-64,847	-3,906
Accounts payable	-21,879	-64,101	320,705
Assignment of accrued expenses	0	0	25,271
Cash used in operating activities	-76,577	-426,105	-1,440,198
CASH FLOWS FROM INVESTING ACTIVITIES
Expenditures on oil and gas properties	-156,688	-742,477	-1,081,381
Expenditures on equipment	0	0	-63,988
Cash used in investing activities	-156,688	-742,477	-1,145,369
CASH FLOWS FROM FINANCING ACTIVITIES
Common stock issued for cash	291,420	699,625	1,711,320
Obligation to issue shares	0	49,527	100,000
Proceeds from advances and notes payable	0	535,285	561,280
Payments to related parties	0	0	-11,350
Proceeds from related parties	1,709	0	293,934
Cash provided by financing activities	293,129	1,284,437	2,655,184
EFFECT OF FOREIGN EXCHANGE	10,608	9,275	5,284
CHANGE IN CASH	70,472	125,130	74,901
CASH, BEGINNING OF PERIOD	4,429	78,196	0
CASH, END OF PERIOD	74,901	203,326	74,901
SUPPLEMENTAL DISCLOSURE:
Cash paid for interest	0	0	900
Cash paid for income taxes	0	0	0
NON-CASH INVESTING AND FINANCING ACTIVITIES:
Common stock issued for services	0	44,000	44,000
Accrued expenditures on oil and gas properties	829,194	932,114	828,394
Note payable forgiven in assignment transaction	0	0	150,000
Common stock issued as repayment of note payable	$0	$0	$18,000

1_NATURE_AND_CONTINUANCE_OF_OP

1. NATURE AND CONTINUANCE OF OPERATIONS	6 Months Ended
	Aug. 31, 2013
Organization, Consolidation and Presentation of Financial Statements [Abstract]
NATURE AND CONTINUANCE OF OPERATIONS	Strongbow Resources Inc. (the “Company”) was incorporated in the State of Nevada on July 9, 2004. The Company is in the exploration stage and focuses its business efforts on the acquisition, exploration, and development of oil and gas properties.
	The accompanying financial statements have been prepared assuming the Company will continue as a going concern. As of August 31, 2013, the Company has not achieved profitable operations and has accumulated a deficit of $2,275,306.
	As of August 31, 2013, eight Statements of Claim totaling $443,056 (CAD$466,522) are outstanding against the Company for non-payment of past due invoices. Five Claims totaling $137,561 (CAD$144,847) were ruled by the Court of Queen’s Bench of Alberta and resulted in garnishment of the Company’s deposit account of $91,061 (CAD$95,884) and were distributed to the vendors proportional to the amounts owed. All remaining Claims are currently recorded as accounts payable.
	The Company’s ability to continue as a going concern is dependent upon its ability to obtain the necessary financing to meet its obligations and pay its liabilities when they come due. To date, the Company has funded operations through the issuance of capital stock and debt. Management plans to continue raising additional funds through equity or debt financings and loans from directors. There is no certainty that further funding will be available as needed. These factors raise substantial doubt about the ability of the Company to continue operating as a going concern. The ability of the Company to continue its operations as a going concern is dependent upon its ability to raise sufficient new capital to fund its operating commitments and ongoing losses and ultimately on generating profitable operations.

2_SUMMARY_OF_SIGNIFICANT_ACCOU

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	6 Months Ended
	Aug. 31, 2013
Notes to Financial Statements
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	Basis of Presentation
	The unaudited interim financial statements of Strongbow Resources Inc. (the “Company”) have been prepared in accordance with United States Generally Accepted Accounting Principles (“GAAP”) for interim financial information and the rules and regulations of the Securities and Exchange Commission (“SEC”). They do not include all information and footnotes required by GAAP for complete financial statements. However, except as disclosed herein, there has been no material changes in the information disclosed in the notes to the financial statements for the year ended February 28, 2013 included in the Company’s Annual Report on Form 10-K filed with the SEC. The interim unaudited financial statements should be read in conjunction with those financial statements included in the 10-K report. In the opinion of management, all adjustments considered necessary for fair presentation, consisting solely of normal recurring adjustments, have been made. Operating results for the six months ended August 31, 2013 are not necessarily indicative of the results that may be expected for the year ending February 28, 2014.
	Inventory
	Inventory is carried at the lower of cost or market. The cost of inventory includes all direct expenditures to ready inventory for sale, including allocable overhead. Market is defined as current replacement cost as long as market is not greater than net realizable value and is not less than net realizable value reduced by a normal sales margin.
	Revenue
	Revenue is recognized when:
		·	The significant risks and rewards of ownership have been transferred;
		·	Neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold has been retained;
		·	The amount of revenue can be measured reliably; and
		·	The costs incurred or to be incurred in respect of the transaction can be measured reliably.
	Revenue is measured at the fair value of consideration received or receivable.
	Proceeds from the sale of oil and gas prior to commercial production are credited to costs deferred during development.
	Recent Accounting Pronouncements
	Recent pronouncements with future effective dates are either not applicable or are not expected to be significant to the financial statements of the Company.

3_OIL_AND_GAS_PROPERTIES

3. OIL AND GAS PROPERTIES	6 Months Ended
	Aug. 31, 2013
Notes to Financial Statements
OIL AND GAS PROPERTIES	Effective February 21, 2012, the Company entered into a Farmout Agreement (the “Agreement”) with Harvest Operations Corp. (“Farmor”). The Agreement provided for the Company’s acquisition of an undivided 100% working interest (“Working Interest”) in a petroleum and natural gas license covering land located in the Compeer Area in the Province of Alberta, Canada (the “Farmout Lands”).
	To earn the Working Interest the Company was required to drill, complete, equip or abandon a test well on the Farmout Lands (“Test Well”). On March 14, 2012, the Company obtained operator status and was transferred the well license relating to the Test Well.
	The Company’s Working Interest in the Farmout Lands will be held subject to a non-convertible overriding royalty payable to the Farmor (“Farmor’s Royalty”).  The Farmor’s Royalty on net crude oil revenues will be measured on a sliding scale from 5% to 15% over a range of production volumes from 1 to 150 barrels per day. The Farmor’s Royalty on net gas and other petroleum product revenues is 15%.
	The Test Well was spudded on May 27, 2012, and the total depth drilled in the Test Well met the contract depth requirements under the Agreement.
	On September 5, 2012, the Company received an earning notice granting the Company a 100% working interest in the Farmout Lands.
	As of August 31, 2013, the Company has incurred approximately $1,410,000 in exploration costs to drill, complete and equip the Test Well. Two cores were cut in the Test Well; the first core was in the Viking Formation and the second was in the deeper Bakken Formation.
	During the six months ended August 31, 2013, net proceeds of $18,784 received from the sales of oil less direct costs of $11,845 was credited to the carrying value of the oil and gas properties.
	During the year ended February 28, 2013, the Bakken core confirmed there was no oil potential in the Bakken Formation and an impairment charge of $568,612 was recorded.

4_EQUIPMENT

4. EQUIPMENT	6 Months Ended
	Aug. 31, 2013
Property, Plant and Equipment [Abstract]
EQUIPMENT		31-Aug-13
			Cost		Accumulated Depreciation
	Oil and gas equipment	$	63,988	$	1,600	$	62,388
		28-Feb-13
			Cost		Accumulated Depreciation
	Oil and gas equipment	$	63,988	$	—	$	63,988

5_ADVANCES_AND_NOTES_PAYABLE

5. ADVANCES AND NOTES PAYABLE	6 Months Ended
	Aug. 31, 2013
Debt Disclosure [Abstract]
ADVANCES AND NOTES PAYABLE	At August 31, 2013, the Company had $527,084 (CAD$555,000) in short term note obligations to an unrelated party. The notes payable are unsecured, non-interest bearing, payable upon demand, and may be used by the payee, in whole or in part, to offset any funding obligations incurred by the payee in connection with any existing or future farm-in/farm-out agreements with the Company.

6_ASSET_RETIREMENT_OBLIGATIONS

6. ASSET RETIREMENT OBLIGATIONS	6 Months Ended
	Aug. 31, 2013
Asset Retirement Obligation Disclosure [Abstract]
ASSET RETIREMENT OBLIGATIONS	The Company’s asset retirement obligation consists of reclamation and closure costs associated with the Test Well in the Farmout Lands. The asset retirement obligation was estimated based on the Company’s understanding of its requirements to reclaim currently disturbed areas. Significant reclamation and closure activities include land rehabilitation, water, removal of building and well facilities and tailings reclamation.
	The undiscounted estimate of this liability was $48,225 (CAD$50,000) reflecting payments commencing in 2021. This estimate was adjusted for an inflation rate of 2.00% and then discounted at a rate of 8.00% for a net present value of $31,754 as at August 31, 2013.

7_SHARE_CAPITAL

7. SHARE CAPITAL	6 Months Ended
	Aug. 31, 2013
Notes to Financial Statements
SHARE CAPITAL	On May 23, 2013, the Company issued 1,200,000 common shares at a price of $0.24 (CAD$0.25) per share. Gross proceeds from the private placement totaled $291,420 (CAD$300,000).

8_RELATED_PARTY_TRANSACTIONS

8. RELATED PARTY TRANSACTIONS	6 Months Ended
	Aug. 31, 2013
Notes to Financial Statements
RELATED PARTY TRANSACTIONS	During the six months ended August 31, 2013, the Company incurred a total of $42,403 (August 31, 2012 - $77,689) in management fees paid to former directors and officers of the Company.
	As at August 31, 2013, $125,805 (February 28, 2013 - $89,673) was owing to former directors of the Company and have been included in accounts payable. The amounts are non-interest bearing, unsecured, and payable upon demand.
	All of the Company’s notes and advances from related parties are non-interest bearing, unsecured, and payable upon demand. They consist of the following:
		31-Aug-13		28-Feb-13
	Advances from a shareholder	$	10,500	$	10,500
	Advances from a director and officer of the Company		53,895		53,428
	Total		64,395		63,928

9_CONTINGENCIES

9. CONTINGENCIES	6 Months Ended
	Aug. 31, 2013
Commitments and Contingencies Disclosure [Abstract]
CONTINGENCIES	During the period ended August 31, 2013, the Company settled five Statements of Claim totaling $153,895 (CAD$159,801) with the aggregate settlement amount of $97,705 (CAD$101,455) and recognized a gain on the settlement of $56,190.
	As of August 31, 2013, eight Statements of Claim totaling $443,056 (CAD$466,522) are outstanding against the Company for non-payment of past due invoices. Five Claims totaling $137,561 (CAD$144,847) were ruled by the Court of Queen’s Bench of Alberta and resulted in garnishment of the Company’s deposit account of $91,061 (CAD$95,884) and were distributed to the vendors proportional to the amounts owed.
	The Company has not yet resolved the remaining Statements of Claim. All remaining Claims are currently recorded as accounts payable.

10_SUBSEQUENT_EVENT

10. SUBSEQUENT EVENT	6 Months Ended
	Aug. 31, 2013
Subsequent Events [Abstract]
10. SUBSEQUENT EVENT	Subsequent to August 31, 2013, the Company issued 400,000 common shares to meet the obligation to issue shares.

2_SUMMARY_OF_SIGNIFICANT_ACCOU1

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	6 Months Ended
	Aug. 31, 2013
Summary Of Significant Accounting Policies Policies
Basis of Presentation	The unaudited interim financial statements of Strongbow Resources Inc. (the “Company”) have been prepared in accordance with United States Generally Accepted Accounting Principles (“GAAP”) for interim financial information and the rules and regulations of the Securities and Exchange Commission (“SEC”). They do not include all information and footnotes required by GAAP for complete financial statements. However, except as disclosed herein, there has been no material changes in the information disclosed in the notes to the financial statements for the year ended February 28, 2013 included in the Company’s Annual Report on Form 10-K filed with the SEC. The interim unaudited financial statements should be read in conjunction with those financial statements included in the 10-K report. In the opinion of management, all adjustments considered necessary for fair presentation, consisting solely of normal recurring adjustments, have been made. Operating results for the six months ended August 31, 2013 are not necessarily indicative of the results that may be expected for the year ending February 28, 2014.
Inventory	Inventory is carried at the lower of cost or market. The cost of inventory includes all direct expenditures to ready inventory for sale, including allocable overhead. Market is defined as current replacement cost as long as market is not greater than net realizable value and is not less than net realizable value reduced by a normal sales margin.
Revenue	Revenue is recognized when:
		·	The significant risks and rewards of ownership have been transferred;
		·	Neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold has been retained;
		·	The amount of revenue can be measured reliably; and
		·	The costs incurred or to be incurred in respect of the transaction can be measured reliably.
	Revenue is measured at the fair value of consideration received or receivable.
	Proceeds from the sale of oil and gas prior to commercial production are credited to costs deferred during development.
Recent Accounting Pronouncements	Recent pronouncements with future effective dates are either not applicable or are not expected to be significant to the financial statements of the Company.

4_EQUIPMENT_Tables

4. EQUIPMENT (Tables)	6 Months Ended
	Aug. 31, 2013
Property, Plant and Equipment [Abstract]
Oil and gas equipment		31-Aug-13
			Cost		Accumulated Depreciation
	Oil and gas equipment	$	63,988	$	1,600	$	62,388
		28-Feb-13
			Cost		Accumulated Depreciation
	Oil and gas equipment	$	63,988	$	—	$	63,988

8_RELATED_PARTY_TRANSACTIONS_T

8. RELATED PARTY TRANSACTIONS (Tables)	6 Months Ended
	Aug. 31, 2013
Related Party Transactions Tables
Schedule of related party transactions
		31-Aug-13		28-Feb-13
	Advances from a shareholder	$	10,500	$	10,500
	Advances from a director and officer of the Company		53,895		53,428
	Total		64,395		63,928

3_OIL_AND_GAS_PROPERTIES_Detai

3. OIL AND GAS PROPERTIES (Details Narrative) (USD $)	6 Months Ended
	Aug. 31, 2013
Oil And Gas Properties Details Narrative
Exploration Costs	$1,410,000

4_EQUIPMENT_Details

4. EQUIPMENT (Details) (USD $)	Aug. 31, 2013	Feb. 28, 2013
Cost
Oil and gas equipment	$63,988	$63,988
Accumulated Depreciation
Oil and gas equipment	1,600
Net Book Value
Oil and gas equipment	$62,388	$63,988

5_ADVANCES_AND_NOTES_PAYABLE_D

5. ADVANCES AND NOTES PAYABLE (Details Narrative) (USD $)	Aug. 31, 2013
Advances And Notes Payable Details Narrative
Due to related party	$527,084

6_ASSET_RETIREMENT_OBLIGATIONS1

6. ASSET RETIREMENT OBLIGATIONS (Details Narrative) (USD $)	Aug. 31, 2013	Feb. 28, 2013
Asset Retirement Obligations Details Narrative
Assets retirement obligation related to Test Well on Farmout Lands	$31,754	$31,259

8_RELATED_PARTY_TRANSACTIONS_D

8. RELATED PARTY TRANSACTIONS (Details) (USD $)	Aug. 31, 2013	Feb. 28, 2013
Related Party Transactions Tables
Advances from a shareholder	$10,500	$10,500
Advances from a director and officer of the Company	53,895	53,428
Total	$64,395	$63,928

9_CONTINGENCIES_Details_Narrat

9. CONTINGENCIES (Details Narrative) (Vendor Claim, USD $)	Aug. 31, 2013
Vendor Claim
Vendor claims included in accrued liabilities	$443,056