Document_and_Entity_Informatio
Document and Entity Information | 3 Months Ended | |
31-May-14 | Jul. 15, 2014 | |
Document And Entity Information | ' | ' |
Entity Registrant Name | 'STRONGBOW RESOURCES INC. | ' |
Entity Central Index Key | '0001382231 | ' |
Document Type | '10-Q | ' |
Document Period End Date | 31-May-14 | ' |
Amendment Flag | 'false | ' |
Current Fiscal Year End Date | '--02-28 | ' |
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 | ' | 28,263,363 |
Document Fiscal Period Focus | 'Q1 | ' |
Document Fiscal Year Focus | '2015 | ' |
Balance_Sheets
Balance Sheets (USD $) | 31-May-14 | Feb. 28, 2014 |
CURRENT ASSETS | ' | ' |
Cash | $25,551 | $43,137 |
Receivable | 3,807 | 1,702 |
Prepaid expense and other | 29,999 | 81 |
Current Assets | 59,357 | 44,920 |
Equipment | 59,989 | 60,789 |
Oil and gas properties, full cost method, unproven | 994,618 | 992,197 |
Total Assets | 1,113,964 | 1,097,906 |
LIABILITIES AND STOCKHOLDERS EQUITY (DEFICIT) | ' | ' |
Accounts payable | 1,023,266 | 984,288 |
Accrued liabilities | 124,200 | 92,557 |
Due to related parties | 72,553 | 72,553 |
Advances and Notes payable | 568,400 | 558,540 |
Total current liabilities | 1,788,419 | 1,707,938 |
Asset retirement obligations | 32,583 | 31,354 |
Liabilities | 1,821,002 | 1,739,292 |
STOCKHOLDERS' EQUITY (DEFICIT) | ' | ' |
Capital Stock Authorized: 750,000,000 common shares, par value $0.001 per share Issued and outstanding:27,996,684 common shares (27,896,684 at February 28, 2014) | 19,887 | 19,787 |
Additional paid in capital | 2,305,204 | 2,255,304 |
Accumulated other Comprehensive loss | -47,643 | -21,560 |
Deficit accumulated during the exploration stage | -2,984,486 | -2,894,917 |
Total Stockholders' Equity (Deficit) | -707,038 | -641,386 |
Total Liabilities and Stockholders' Equity (Deficit) | $1,113,964 | $1,097,906 |
Balance_Sheets_Parenthetical
Balance Sheets (Parenthetical) (USD $) | 31-May-14 | Feb. 28, 2014 |
Stockholders equity: | ' | ' |
Common stock, par value | $0.00 | $0.00 |
Common stock, authorized shares | 750,000,000 | 750,000,000 |
Common stock, issued shares | 27,996,684 | 27,896,684 |
Common stock, outstanding shares | 27,996,684 | 27,896,684 |
Statements_of_Operations_Unaud
Statements of Operations (Unaudited) (USD $) | 3 Months Ended | 119 Months Ended | |
31-May-14 | 31-May-13 | 31-May-14 | |
GENERAL AND ADMINISTRATIVE EXPENSES | ' | ' | ' |
Consulting | $22,592 | $0 | $590,357 |
Depreciation | 800 | 800 | 3,999 |
Impairment of oil and gas property | 0 | 0 | 913,215 |
Management fees | 27,279 | 38,197 | 558,775 |
Office, travel and general | 7,713 | 16,672 | 472,347 |
Professional fees | 31,185 | 28,873 | 512,648 |
Loss from operations | -89,569 | -84,542 | -3,051,341 |
Gain on settlement of debt | 0 | 37,015 | 124,757 |
Interest expense | 0 | 0 | -41,655 |
Interest expense recovery | 0 | 8,769 | 8,753 |
Loss on settlement of deposit | 0 | 0 | -25,000 |
Net loss | -89,569 | -38,758 | -2,984,486 |
Foreign Currency Translation | -26,083 | 3,994 | -47,643 |
Comprehensive loss | ($115,652) | ($34,764) | ($3,032,129) |
Basic and diluted loss per share | ($0.01) | $0 | ' |
Weighted average number of basic and diluted common shares outstanding | 27,936,914 | 27,151,024 | ' |
Statements_of_Cash_Flows_Unaud
Statements of Cash Flows (Unaudited) (USD $) | 3 Months Ended | 119 Months Ended | |
31-May-14 | 31-May-13 | 31-May-14 | |
CASH FLOWS FROM OPERATING ACTIVITIES | ' | ' | ' |
Net loss | ($89,569) | ($38,758) | ($2,984,486) |
Adjustments to reconcile net loss to net cash used in operating activities: | ' | ' | ' |
Gain from settlement of debt | 0 | -37,015 | -124,757 |
Impairment of oil and gas property | 0 | 0 | 913,215 |
Service fees paid in stock | 0 | 0 | 44,000 |
Depreciation | 800 | 800 | 3,999 |
Changes in non-cash working capital items | ' | ' | ' |
Restricted cash | 0 | -92,480 | 0 |
Receivable | -2,105 | -937 | -3,807 |
Prepaid expenses | -29,918 | 2,902 | -30,000 |
Accounts payable and accrued liabilities | 61,892 | -67,454 | 280,755 |
Assignment of accrued expenses | 0 | 0 | 25,271 |
Cash used in operating activities | -58,900 | -232,942 | -1,859,373 |
CASH FLOWS FROM INVESTING ACTIVITIES | ' | ' | ' |
Expenditures on oil and gas properties | -1,192 | -1,301 | -983,066 |
Expenditures on equipment | 0 | 0 | -63,988 |
Cash used in investing activities | -1,192 | -1,301 | -1,047,054 |
CASH FLOWS FROM FINANCING ACTIVITIES | ' | ' | ' |
Common stock issued for cash | 50,000 | 291,420 | 2,002,320 |
Proceeds from advances and notes payable | 0 | 0 | 618,655 |
Net proceeds from related parties | 0 | 0 | 293,309 |
Cash provided by financing activities | 50,000 | 291,420 | 2,914,284 |
EFFECT OF FOREIGN EXCHANGE | -9,878 | -764 | 17,694 |
CHANGE IN CASH | -17,586 | 56,413 | 25,551 |
CASH, BEGINNING OF PERIOD | 43,137 | 4,429 | 0 |
CASH, END OF PERIOD | 25,551 | 60,842 | 25,551 |
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 | 0 | 44,000 |
Accrued expenditures on oil and gas properties | 0 | 892,552 | 878,345 |
Note payable forgiven in assignment transaction | 0 | 0 | 150,000 |
Settlement of related parties debt | 0 | 0 | 85,500 |
Common stock issued as repayment of note payable | $0 | $0 | $18,000 |
1_NATURE_AND_CONTINUANCE_OF_OP
1. NATURE AND CONTINUANCE OF OPERATIONS | 3 Months Ended |
31-May-14 | |
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 May 31, 2014, the Company has not achieved profitable operations and has accumulated a deficit of $2,984,486. | |
As of May 31, 2014, nine Statements of Claim totaling $497,799 (CAD$541,086) are outstanding against the Company for non-payment of past due invoices. All nine Claims remaining 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 | 3 Months Ended |
31-May-14 | |
Notes to Financial Statements | ' |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ' |
Basis of Presentation | |
The unaudited interim financial statements of 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, 2014 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 three months ended May 31, 2014 are not necessarily indicative of the results that may be expected for the year ending February 28, 2015. | |
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 | 3 Months Ended |
31-May-14 | |
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. 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. | |
On September 5, 2012, the Company received an earning notice granting the Company a 100% working interest in the Farmout Lands. | |
During the year ended February 28, 2014, the Company estimated that the net present value of future cash flows from the property is $992,197 and recorded an impairment charge of $344,603. | |
During the year ended February 28, 2014, net proceeds of $18,632 received from the sales of oil less direct costs of $35,565 was credited to the carrying value of the oil and gas properties. | |
As of May 31, 2014, the Company has incurred approximately $962,000 in exploration costs to drill, complete and equip the Test Well. | |
During the three months ended May 31, 2014, net proceeds of $4,239 received from the sales of oil less direct costs of $5,432 was credited to the carrying value of the oil and gas properties. |
4_EQUIPMENT
4. EQUIPMENT | 3 Months Ended | ||||||||||||
31-May-14 | |||||||||||||
Property, Plant and Equipment [Abstract] | ' | ||||||||||||
EQUIPMENT | ' | ||||||||||||
31-May-14 | |||||||||||||
Cost | Accumulated Depreciation | Net Book Value | |||||||||||
$ | $ | $ | |||||||||||
Oil and gas equipment | 63,988 | 3,999 | 59,989 | ||||||||||
28-Feb-14 | |||||||||||||
Cost | Accumulated Depreciation | Net Book Value | |||||||||||
$ | $ | $ | |||||||||||
Oil and gas equipment | 63,988 | 3,199 | 60,789 |
5_ADVANCES_AND_NOTES_PAYABLE
5. ADVANCES AND NOTES PAYABLE | 3 Months Ended |
31-May-14 | |
Debt Disclosure [Abstract] | ' |
ADVANCES AND NOTES PAYABLE | ' |
At May 31, 2014, the Company had $568,400 (CAD$617,826) in short term note obligations to unrelated parties. The notes payable are unsecured, non-interest bearing and payable upon demand. $510,600 (CAD$555,000) of the notes 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. | |
On December 5, 2013, the Company received a demand for the repayment of $510,600 (CAD$555,000) of the notes payable. The lender has demanded the repayment of $142,600 (CAD$155,000) by December 31, 2013 and the repayment of $368,000 (CAD$400,000) by March 31, 2014. As at the date of these financial statements, the amounts have not yet been repaid by the Company. |
6_ASSET_RETIREMENT_OBLIGATIONS
6. ASSET RETIREMENT OBLIGATIONS | 3 Months Ended |
31-May-14 | |
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 $46,000 (CAD$50,000) reflecting payments commencing in 2024. 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 $32,583 (CAD$34,722) as at May 31, 2014. |
7_SHARE_CAPITAL
7. SHARE CAPITAL | 3 Months Ended |
31-May-14 | |
Notes to Financial Statements | ' |
SHARE CAPITAL | ' |
On May 23, 2013, the Company issued 300,000 common shares at a price of $0.96 (CAD$1.00) per share. Gross proceeds from the private placement totaled $291,420 (CAD$300,000). | |
On September 19, 2013, the Company issued 400,000 common shares to fulfill its obligation to issue shares. | |
On January 3, 2014, the Company issued 375,000 common shares at a price of $0.40 per share. Gross proceeds from the private placement totaled $150,000. Pursuant to the private placement, the Company paid a finder’s fee of $9,000. | |
On March 17, 2014, the Company completed a one for four reverse stock split of the issued and outstanding common stock. All share and per share information in these financial statements has been retroactively restated to reflect the consolidation. | |
On April 25, 2014, the Company issued 100,000 common shares at a price of $0.50 per share. Gross proceeds from the private placement totaled $50,000. |
8_RELATED_PARTY_TRANSACTIONS
8. RELATED PARTY TRANSACTIONS | 3 Months Ended | ||||||||
31-May-14 | |||||||||
Notes to Financial Statements | ' | ||||||||
RELATED PARTY TRANSACTIONS | ' | ||||||||
During the three months ended May 31, 2014, the Company: | |||||||||
● | Incurred a total of $nil (May 31, 2013 - $38,197) in management fees to former directors and officers of the Company. | ||||||||
● | Incurred a total of $27,279 (May 31, 2013 - $nil) in management fees to a director and officer of the Company. | ||||||||
● | Incurred a total of $2,592 (May 31, 2013 - $nil) in consulting fees to a director and officer of the Company. | ||||||||
As at May 31, 2014, $36,000 (February 28, 2014 - $36,000) was owing to a former director and officer of the Company and have been included in accounts payable. As at May 31, 2014, $92,000 (February 28, 2014 - $66,913) was owing to a director and officer of the Company and has been included in accrued liabilities. The amounts are non-interest bearing and unsecured. | |||||||||
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: | |||||||||
May 31, | February 28, | ||||||||
2014 | 2014 | ||||||||
$ | $ | ||||||||
Advances from a shareholder | 10,500 | 10,500 | |||||||
Advances from a director and officer of the Company | 62,053 | 62,053 | |||||||
Total | 72,553 | 72,553 |
9_CONTINGENCIES
9. CONTINGENCIES | 3 Months Ended |
31-May-14 | |
Commitments and Contingencies Disclosure [Abstract] | ' |
CONTINGENCIES | ' |
As of May 31, 2014, nine Statements of Claim totaling $497,799 (CAD$541,086) are outstanding against the Company for non-payment of past due invoices. On May 2, 2013, five Claims totaling $133,259 (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 $88,204 (CAD$95,884) and were distributed to the vendors proportional to the amounts owed. | |
The Company has not yet resolved the remaining nine Statements of Claim. All remaining Claims are currently recorded as accounts payable. | |
On December 5, 2013, the Company received a demand for the repayment of $510,600 (CAD$555,000) of the notes payable. The lender has demanded the repayment of $142,600 (CAD$155,000) by December 31, 2013 and the repayment of $368,000 (CAD$400,000) by March 31, 2014. As at the date of these financial statements, the amounts have not yet been repaid by the Company. |
10_SUBSEQUENT_EVENT
10. SUBSEQUENT EVENT | 3 Months Ended |
31-May-14 | |
Subsequent Events [Abstract] | ' |
10. SUBSEQUENT EVENT | ' |
In June 2014, the Company issued 200,000 common shares at a deemed price of $0.64 (CAD$0.70) per share to settle outstanding debt of $128,800 (CAD$140,000). | |
In June 2014, the Company issued 66,666 common shares at a price of $0.69 (CAD$0.75) per share for gross proceeds of $46,000 (CAD$50,000). Pursuant to the private placement, the Company paid a finder’s fee of $2,300 (CAD$2,500). |
2_SUMMARY_OF_SIGNIFICANT_ACCOU1
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 3 Months Ended |
31-May-14 | |
Summary Of Significant Accounting Policies Policies | ' |
Basis of Presentation | ' |
The unaudited interim financial statements of 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, 2014 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 three months ended May 31, 2014 are not necessarily indicative of the results that may be expected for the year ending February 28, 2015. | |
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) | 3 Months Ended | ||||||||||||
31-May-14 | |||||||||||||
Property, Plant and Equipment [Abstract] | ' | ||||||||||||
Oil and gas equipment | ' | ||||||||||||
31-May-14 | |||||||||||||
Cost | Accumulated Depreciation | Net Book Value | |||||||||||
$ | $ | $ | |||||||||||
Oil and gas equipment | 63,988 | 3,999 | 59,989 | ||||||||||
28-Feb-14 | |||||||||||||
Cost | Accumulated Depreciation | Net Book Value | |||||||||||
$ | $ | $ | |||||||||||
Oil and gas equipment | 63,988 | 3,199 | 60,789 |
8_RELATED_PARTY_TRANSACTIONS_T
8. RELATED PARTY TRANSACTIONS (Tables) | 3 Months Ended | ||||||||
31-May-14 | |||||||||
Related Party Transactions Tables | ' | ||||||||
Schedule of related party transactions | ' | ||||||||
May 31, | February 28, | ||||||||
2014 | 2014 | ||||||||
$ | $ | ||||||||
Advances from a shareholder | 10,500 | 10,500 | |||||||
Advances from a director and officer of the Company | 62,053 | 62,053 | |||||||
Total | 72,553 | 72,553 |
3_OIL_AND_GAS_PROPERTIES_Detai
3. OIL AND GAS PROPERTIES (Details Narrative) (USD $) | 3 Months Ended | 12 Months Ended |
31-May-14 | Feb. 28, 2014 | |
Oil And Gas Properties Details Narrative | ' | ' |
Exploration Costs | $962,000 | ' |
Revenue | 4,239 | 18,632 |
Reserves | ' | $992,197 |
4_EQUIPMENT_Details
4. EQUIPMENT (Details) (USD $) | 31-May-14 | Feb. 28, 2014 |
Cost | ' | ' |
Oil and gas equipment | $63,988 | $63,988 |
Accumulated Depreciation | ' | ' |
Oil and gas equipment | 3,999 | 3,199 |
Net Book Value | ' | ' |
Oil and gas equipment | $59,989 | $60,789 |
5_ADVANCES_AND_NOTES_PAYABLE_D
5. ADVANCES AND NOTES PAYABLE (Details Narrative) (USD $) | 31-May-14 | Feb. 28, 2014 |
Advances And Notes Payable Details Narrative | ' | ' |
Advances and Notes payable | $568,400 | $558,540 |
6_ASSET_RETIREMENT_OBLIGATIONS1
6. ASSET RETIREMENT OBLIGATIONS (Details Narrative) (USD $) | 31-May-14 | Feb. 28, 2014 |
Asset Retirement Obligations Details Narrative | ' | ' |
Assets retirement obligation related to Test Well on Farmout Lands | $32,583 | $31,354 |
8_RELATED_PARTY_TRANSACTIONS_D
8. RELATED PARTY TRANSACTIONS (Details) (USD $) | 31-May-14 | Feb. 28, 2014 |
Related Party Transactions Tables | ' | ' |
Advances from a shareholder | $10,500 | $10,500 |
Advances from a director and officer of the Company | 62,053 | 62,053 |
Total | $72,553 | $72,553 |
9_CONTINGENCIES_Details_Narrat
9. CONTINGENCIES (Details Narrative) (Vendor Claim, USD $) | 31-May-14 |
Vendor Claim | ' |
Vendor claims included in accrued liabilities | $497,799 |