Document and Entity Information
Document and Entity Information | 9 Months Ended |
Nov. 30, 2016shares | |
Document and Entity Information: | |
Entity Registrant Name | STRONGBOW RESOURCES INC. |
Document Type | 10-Q |
Document Period End Date | Nov. 30, 2016 |
Trading Symbol | stbr |
Amendment Flag | false |
Entity Central Index Key | 1,382,231 |
Current Fiscal Year End Date | --02-29 |
Entity Common Stock, Shares Outstanding | 31,732,567 |
Entity Filer Category | Smaller Reporting Company |
Entity Current Reporting Status | Yes |
Entity Voluntary Filers | No |
Entity Well-known Seasoned Issuer | No |
Document Fiscal Year Focus | 2,017 |
Document Fiscal Period Focus | Q3 |
STRONGBOW RESOURCES INC - Balan
STRONGBOW RESOURCES INC - Balance Sheets - USD ($) | Nov. 30, 2016 | Feb. 29, 2016 | |
Current Assets: | |||
Cash | $ 83,768 | $ 22,426 | |
Receivable | 1,333 | 3,279 | |
Prepaid expense and other | 13,949 | 7,809 | |
Total Current Assets | 99,050 | 33,514 | |
Non-current Assets: | |||
Deposit | 32,656 | 32,224 | |
Equipment | 55,182 | 57,236 | |
Oil and gas properties, full cost method | 578,989 | 568,151 | |
Total Assets | 765,877 | 691,125 | |
Current liabilities: | |||
Accounts payable | 470,852 | 632,983 | |
Accrued liabilities | 100,535 | 99,765 | |
Due to related parties | 453,112 | 334,869 | |
Note payable | 18,618 | 18,475 | |
Convertible debenture | 211,017 | ||
Derivative liability | 652,373 | 150,136 | |
Subscriptions received | 50,000 | ||
Total Current Liabilities | 1,906,507 | 1,286,228 | |
Asset retirement obligation | 23,724 | 21,900 | |
Total Liabilities | 1,930,231 | 1,308,128 | |
Stockholders' Deficit: | |||
Capital stock | [1] | 23,623 | 21,919 |
Additional paid-in capital | 3,283,476 | 3,115,078 | |
Accumulated other comprehensive loss | (156,954) | (133,280) | |
Accumulated deficit | (4,314,499) | (3,620,720) | |
Total Stockholders' Deficit | (1,164,354) | (617,003) | |
TOTAL LIABILITIES AND STOCKHOLDERS' DEFICIT | $ 765,877 | $ 691,125 | |
[1] | 750,000,000 common shares, par value $0.001 per share; 31,732,567 common shares (30,029,046 at February 29, 2016) |
Statement of Financial Position
Statement of Financial Position - Parenthetical - $ / shares | Nov. 30, 2016 | Feb. 29, 2016 |
Statement of Financial Position | ||
Common Stock, Par Value | $ 0.001 | $ 0.001 |
Common Stock, Shares Authorized | 750,000,000 | 750,000,000 |
Common Stock, Shares Issued | 31,732,567 | 30,029,046 |
Common Stock, Shares Outstanding | 31,732,567 | 30,029,046 |
STRONGBOW RESOURCES INC. - Stat
STRONGBOW RESOURCES INC. - Statements of Operations - USD ($) | 3 Months Ended | 9 Months Ended | ||||
Nov. 30, 2016 | Nov. 30, 2015 | Nov. 30, 2016 | Nov. 30, 2015 | |||
General and administrative expenses | ||||||
Accretion | $ 558 | $ 509 | $ 1,703 | [1] | $ 1,578 | [1] |
Consulting | 4,349 | 11,530 | 41,639 | 39,373 | ||
Depreciation | 841 | 843 | 2,563 | 2,619 | ||
Management fees | 127,467 | 22,665 | 173,709 | 70,353 | ||
Office, travel and general (recovery) | (373) | 25,278 | (3,008) | 70,649 | ||
Professional fees | 27,619 | 7,012 | 66,500 | 56,315 | ||
Salaries and benefits | 24,600 | 83,846 | ||||
Stock-based compensation | 107,021 | 107,021 | ||||
Loss from operations | (160,461) | (199,458) | (283,106) | (431,754) | ||
Accretion expense | (196,983) | (199,999) | ||||
Gain on settlement of debt | 11,471 | 71,703 | ||||
Interest income | 62 | 62 | 188 | 164 | ||
Interest expense | (15,217) | (87,398) | ||||
Gain (loss) on fair value adjustment of derivative liability | (430,673) | (529) | (195,167) | 350,818 | ||
Net loss | (791,801) | (199,925) | (693,779) | (80,772) | ||
Foreign currency translation | 237 | 8,912 | (23,674) | 20,645 | ||
Comprehensive loss | $ (791,564) | $ (191,013) | $ (717,453) | $ (60,127) | ||
Basic and diluted loss per share | $ (0.03) | $ (0.01) | $ (0.02) | $ 0 | ||
Weighted average number of basic and diluted shares outstanding | 31,283,666 | 29,904,046 | 31,019,904 | 29,890,874 | ||
[1] | Accretion of ARO |
STRONGBOW RESOURCES INC. - Sta5
STRONGBOW RESOURCES INC. - Statements of Cash Flows - USD ($) | 3 Months Ended | 9 Months Ended | ||||
Nov. 30, 2016 | Nov. 30, 2015 | Nov. 30, 2016 | Nov. 30, 2015 | |||
Cash flows used in operating activities: | ||||||
Net loss | $ (791,801) | $ (199,925) | $ (693,779) | $ (80,772) | ||
Non-cash items: | ||||||
Accretion | 558 | 509 | 1,703 | [1] | 1,578 | [1] |
Accretion of debt discount | 199,999 | |||||
Gain on settlement of debt | (71,703) | |||||
Loss (gain) on fair value adjustment of derivative liability | 195,167 | (350,818) | ||||
Unrealized foreign exchange | (23,919) | |||||
Shares to be issued for salaries and benefits | 13,125 | |||||
Depreciation | 841 | 843 | 2,563 | 2,619 | ||
Interest income | (432) | |||||
Interest expense | 11,017 | |||||
Management fees | 127,467 | 22,665 | 173,709 | 70,353 | ||
Shares issued for services | 73,821 | |||||
Stock-based compensation | 107,021 | 107,021 | ||||
Changes in non-cash working capital items: | ||||||
Receivable | 1,946 | 2,152 | ||||
Prepaid expenses and other | (6,140) | 454 | ||||
Accounts payable and accrued liabilities | (54,306) | 99,939 | ||||
Cash used in operating activities | (190,354) | (204,702) | ||||
Cash flows used in investing activities: | ||||||
Expenditures on oil and gas properties | (10,838) | (15,466) | ||||
Cash used in investing activities | (10,838) | (15,466) | ||||
Cash flows from financing activities: | ||||||
Common stock issued for cash | 100,750 | 7,606 | ||||
Proceeds of private placement allocated to warrant liability | 24,250 | |||||
Finders' fees | (7,000) | |||||
Issuance of convertible debenture | 200,000 | |||||
Net proceeds from related parties | (55,466) | 182,959 | ||||
Cash provided by financing activities | 262,534 | 190,565 | ||||
Effect of foreign exchange | 3,383 | |||||
Change in cash | 61,342 | (26,220) | ||||
Cash, beginning of period | 22,426 | 26,858 | ||||
Cash, end of period | $ 83,768 | $ 638 | $ 83,768 | 638 | ||
Non-cash transactions | ||||||
Accrued expenditures on oil and gas properties | $ 10,182 | |||||
[1] | Accretion of ARO |
1. Nature and Continuance of Op
1. Nature and Continuance of Operations | 9 Months Ended |
Nov. 30, 2016 | |
Notes | |
1. Nature and Continuance of Operations | 1. NATURE AND CONTINUANCE OF OPERATIONS Strongbow Resources Inc. (the Company) was incorporated in the State of Nevada on July 9, 2004. The Company 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 November 30, 2016, the Company has not achieved profitable operations, has incurred losses in developing its business, and further losses are anticipated. The Company has an accumulated deficit of $4,314,499. The Companys 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. The financial statements do not include any adjustments to be recorded to assets or liabilities that might be necessary should the Company be unable to continue as a going concern. |
2. Summary of Significant Accou
2. Summary of Significant Accounting Policies | 9 Months Ended |
Nov. 30, 2016 | |
Notes | |
2. Summary of Significant Accounting Policies | 2. 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 have been no material changes in the information disclosed in the notes to the financial statements for the year ended February 29, 2016 included in the Companys 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 nine months ended November 30, 2016 are not necessarily indicative of the results that may be expected for the year ending February 28, 2017. Fair Value of Financial Instruments The estimated fair values for financial instruments are determined based on relevant market information. These estimates involve uncertainties and cannot be determined with precision. The estimated fair value of cash, receivable, accounts payable and accrued liabilities, amounts due to related party and note payable approximate their carrying value due to the short-term nature of those instruments. ASC 820 establishes a fair value hierarchy based on the level of independent, objective evidence surrounding the inputs used to measure fair value. A financial instruments categorization within the fair value hierarchy is based upon the lowest level of input that is significant to the fair value measurement. ASC 820 prioritizes the inputs into three levels that may be used to measure fair value; Level 1 Quoted prices in active markets for identical assets or liabilities; Level 2 Inputs other than quoted prices included within Level 1 that are either directly or indirectly observable; and Level 3 Unobservable inputs that are supported by little or no market activity, there for requiring an entity to develop its own assumptions about the assumption that market participants would use in pricing. The Company had certain Level 3 liabilities required to be recorded at fair value on a recurring basis in accordance with US GAAP as at November 30, 2016. As at November 30, 2016, the Companys Level 3 liabilities consisted of warrants and a convertible debenture. The resulting Level 3 liabilities have no active market and are required to be measured at their fair value each reporting period based on information that is unobservable. A summary of the Companys level 3 liabilities for the nine months ended November 30, 2016 and November 30, 2015 is as follows: November 30, 2016 November 30, 2015 Warrants Beginning fair value $ 150,136 $ 379,463 Issuance 107,071 - Effect of foreign exchange - 1,211 Change in fair value 235,598 (350,818) Ending fair value of warrants 492,805 29,856 Embedded Conversion feature Beginning fair value - - Bifurcation of embedded conversion feature 199,999 - Change in fair value (40,431) - Ending fair value of embedded conversion feature 159,568 - Ending fair value of Level 3 liability $ 652,373 $ 29,856 Basic and Diluted Income (Loss) per Share Earnings or loss per share (EPS) is computed by dividing net income (loss) available to common stockholders by the weighted average number of common shares outstanding for the period. Diluted EPS is computed by dividing net income (loss) by the weighted-average of all potentially dilutive shares of the common stock that were outstanding during the period presented. There were 6,360,170 (November 30, 2015: 3,680,000) potentially dilutive securities excluded from the calculation of diluted loss per share as their effect would be anti-dilutive. The treasury stock method is used in calculating diluted EPS for potentially dilutive stock options and share purchase warrants, which assumes that any proceeds received from the exercise of in-the-money stock options and share purchase warrants, would be used to purchase common shares at the average market price for the period. Under the if-converted method, EPS is calculated as the more dilutive of EPS (i) including all interest (both cash interest and non-cash discount amortization) and excluding all shares underlying the convertible debt or; (ii) excluding all interest and costs directly related to the convertible debt (both cash interest and non-cash discount amortization) and including all shares underlying the convertible debt. Recent Accounting Pronouncements In August 2014, the FASB issued ASU 2014-15, Presentation of Financial Statements - Going Concern (Subtopic 205-40): Disclosure of Uncertainties about an Entitys Ability to Continue as a Going Concern |
3. Oil and Gas Properties
3. Oil and Gas Properties | 9 Months Ended |
Nov. 30, 2016 | |
Notes | |
3. Oil and Gas Properties | 3. 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 Companys 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 Companys Working Interest in the Farmout Lands will be held subject to a non-convertible overriding royalty payable to the Farmor (Farmors Royalty). The Farmors 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 Farmors Royalty on net gas and other petroleum product revenues is 15%. The Test Well was spudded on May 27, 2012, and on September 5, 2012, the Company received an earning notice granting the Company a 100% working interest in the Farmout Lands. As of November 30, 2016, the Company has incurred $578,989 (February 29, 2016 - $568,151) in exploration costs to drill, complete and equip the Test Well, net of impairment charges in prior periods. The Company also has $32,656 (CAD$43,851) (February 29, 2016 - $32,224 (CAD$43,605)) in bonds held with the Alberta Energy Regulator for its oil and gas properties. |
4. Equipment
4. Equipment | 9 Months Ended |
Nov. 30, 2016 | |
Notes | |
4. Equipment | 4. EQUIPMENT November 30, 2016 Cost Accumulated Depreciation $ $ $ Oil and gas equipment 66,548 11,366 55,182 February 29, 2016 Cost Accumulated Depreciation $ $ $ Oil and gas equipment 66,038 8,802 57,236 |
5. Accounts Payable
5. Accounts Payable | 9 Months Ended |
Nov. 30, 2016 | |
Notes | |
5. Accounts Payable | 5. ACCOUNTS PAYABLE During the nine months ended November 30, 2016, the Company issued 353,521 common shares with a fair value of $35,352 to settle accounts payable of $95,584 (CAD$123,733). As a result, the Company recorded a gain on settlement of debt of $60,232. In addition, the Company paid $11,471 (CAD$15,000) in cash to settle $22,942 (CAD$30,000) of balance owing to the former chief operating officer of the Company. As a result, the Company recorded a gain on settlement of debt of $11,471. |
6. Note Payable
6. Note Payable | 9 Months Ended |
Nov. 30, 2016 | |
Notes | |
6. Note Payable | 6. NOTE PAYABLE As at November 30, 2016, the Company had $18,618 (CAD$25,000) (February 29, 2016 - $18,475 (CAD$25,000)) in short term note obligations to an unrelated party. The note payable is unsecured, non-interest bearing and payable upon demand. |
7. Asset Retirement Obligation
7. Asset Retirement Obligation | 9 Months Ended |
Nov. 30, 2016 | |
Notes | |
7. Asset Retirement Obligation | 7. ASSET RETIREMENT OBLIGATION The Companys 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 Companys 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 $37,235 (CAD$50,000) (February 29, 2016 - $36,950 (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 10.00% for a net present value of $23,724 (CAD$31,857) (February 29, 2016 - $21,900 (CAD$29,660)) as at November 30, 2016. |
8. Convertible Debenture and De
8. Convertible Debenture and Derivative Financial Liabilities | 9 Months Ended |
Nov. 30, 2016 | |
Notes | |
8. Convertible Debenture and Derivative Financial Liabilities | 8. CONVERTIBLE DEBENTURE AND DERIVATIVE FINANCIAL LIABILITIES On May 17, 2016, the Company entered into a secured convertible debenture agreement (the Debenture) with the Lender. Under the Debenture, the Lender agreed to lend to the Company $200,000. The maturity date under the Debenture was November 17, 2016 (the Maturity Date). At the discretion of the Lender, the principal and accrued but unpaid interest under the Debenture may be converted into units of the Company at $0.20 per unit at any time until the Maturity Date. Each unit consists of one common share of the Company and one common share purchase warrant. Each warrant is exercisable to purchase one common share at a price of $0.40 per share for a period of two years. As at November 30, 2016, the Company has not repaid the Debenture and the balance owing was $211,017 including accrued interest of $11,017. The conversion feature was determined to be a derivative liability due to the conversion price being denominated in a currency other than the Companys functional currency; therefore, at initial measurement, the proceeds were allocated to the conversion feature and any residual proceeds to the principal. At issuance date, the fair value of the conversion feature was $199,999 and a value of $1 was allocated to the principal. During the nine months ended November 30, 2016, the Company recognized accretion expense of $199,999 (November 30, 2015 - $Nil). At November 30, 2016, the fair value of the derivative liability associated with the conversion feature was $159,568 (February 29, 2016 - $nil). During the nine months ended November 30, 2016, a gain on fair value adjustment of $40,431 (November 30, 2015 - $nil) was recognized. In consideration for the Debenture, the Company issued the Lender 200,000 units. Each unit consists of one common share of the Company and one common share purchase warrant. Each warrant is exercisable to purchase one common share at a price of $0.40 per share for a period of two years. The warrants were determined to be derivatives. At issuance date, the fair value of the common shares and warrants was $73,831. The fair value of the conversion feature was calculated using the Black-Scholes Option Pricing Model at the issuance date, and was revalued at the reporting dates using the following assumptions: November 30, 2016 Volatility 129 % Risk-free interest rate 0.93 % Expected life 1.46 years Dividend yield nil |
9. Derivative Financial Liabili
9. Derivative Financial Liabilities - Warrants | 9 Months Ended |
Nov. 30, 2016 | |
Notes | |
9. Derivative Financial Liabilities - Warrants | 9. DERIVATIVE FINANCIAL LIABILITIES - WARRANTS Balance, February 28, 2015 $ 379,463 Fair value adjustment (229,327) Balance, February 29, 2016 150,136 Warrants issued 107,071 Fair value adjustment 235,598 Balance, November 30, 2016 $ 492,805 The derivative liability consists of the fair value of share purchase warrants that were issued in unit private placements that have an exercise price in a currency other than the functional currency of the Company. At November 30, 2016, the fair value of the warrants was determined using the Black-Scholes Option Pricing Model using the following weighted average market assumptions: November 30, 2016 Volatility 199 %- 214 % Risk-free interest rate 0.91 % Expected life 1.46-3.00 years Dividend yield nil |
10. Share Capital
10. Share Capital | 9 Months Ended |
Nov. 30, 2016 | |
Notes | |
10. Share Capital | 10. SHARE CAPITAL During the nine months ended November 30, 2016: In March 2016, the Company issued 500,000 units at a price of $0.10 per unit for a total of $50,000. Each unit consists of one common share of the Company and one common share purchase warrant, with each warrant being exercisable into one additional share at an exercise price of $0.40 for a period of three years. The proceeds for this issuance were received in the year ended February 29, 2016 and on the issuance of these units, the Company allocated $500 to share capital and $49,500 to the warrant liability In May 2016, the Company issued 353,521 common shares with a fair price of $0.10 per share for a total of $35,352 to settle accounts payable of $95,584 (Note 5). In May 2016, the Company issued 200,000 units with a fair price of $0.21 per share in regards to the secured convertible debenture (Note 8). Each unit consists of one common share of the Company and one common share purchase warrant. Each warrant is exercisable to purchase one common share at a price of $0.40 per share for a period of two years. The warrants were determined to be derivatives. At issuance date, the fair value of the common shares and warrants was $73,821 with $41,000 allocated to share capital and $32,821 allocated to warrant liability. In September 2016, the Company issued 250,000 units at a price of $0.10 per unit for gross proceeds of $25,000. Each unit consists of one common share of the Company and one common share purchase warrant, with each warrant being exercisable into one additional share at an exercise price of $0.40 for a period of three years. Upon the issuance of these units, the Company allocated $250 to share capital and $24,750 to the warrant liability In November 2016, the Company issued 400,000 common shares at a price of $0.25 per share for gross proceeds of $100,000. The Company paid a finder fees of $7,000 in connection with the financing. During the year ended February 29, 2016: In August 2015, the Company issued 22,222 common shares at CAD$0.45 for gross proceeds of $7,606 (CAD$10,000) in subscriptions for a private placement. In January 2016, the Company issued 125,000 common shares to a former officer for an employment contract entered in April 2015. The fair value of the shares issued was $37,500, and is included in salaries and benefits. Warrants Below is a summary of the common share purchase warrant transactions: Number of Warrants Weighted Average Exercise Price per Warrant $ Outstanding at February 29, 2016 1,080,000 0.40 Issued 950,000 0.40 Expired (80,000) 1.50 Number of warrants at November 30, 2016 1,950,000 0.40 A summary of the common share purchase warrants outstanding and exercisable at November 30, 2016 is as follows: Exercise Price Number Outstanding Expiry Date $ 0.40 200,000 May 17, 2018 0.40 1,000,000 March 8, 2019 0.40 500,000 March 9, 2019 0.40 250,000 September 22, 2019 1,950,000 The weighted average exercise price is $0.40 and weighted average life of the warrants is 2.26 years. Stock Options The Companys Stock Option Plan allows a maximum 5,579,335 shares to be reserved for issuance under the plan. Options granted under the plan may not have a term exceeding 10 years and vesting provisions are at the discretion of the Board of Directors. In November 2015, the Company granted 2,600,000 stock options for a period of five years, valued at $0.04 per option for a total value of $107,172 calculated using the Black-Scholes Option Pricing Model assuming a life expectancy of five years, a risk free rate of 1.59%, a forfeiture rate of 0%, and volatility of 168%. During the nine months ended November 30, 2016, 300,000 stock options expired unexercised. A summary of the stock options outstanding and exercisable at November 30, 2016 is as follows: Exercise Price Number Outstanding and Exercisable Expiry Date Aggregate Intrinsic Value $ $ 0.10 2,300,000 November 3, 2020 460,000 As at November 30, 2016, the remaining contractual life of the stock options outstanding was 3.93 years. The aggregate intrinsic value in the proceeding table represents the total intrinsic value, based on the Companys closing stock price of $0.30 per share as of November 30, 2016. |
11. Related Party Transactions
11. Related Party Transactions | 9 Months Ended |
Nov. 30, 2016 | |
Notes | |
11. Related Party Transactions | 11. RELATED PARTY TRANSACTIONS During the nine months ended November 30, 2016, the Company Incurred a total of $0 (November 30, 2015 - $3,713) in consulting fees to a director and officer of the Company. As at November 30, 2016, $4,392 (February 29, 2016 - $nil) was owing to a company with a common director. This amount is non-interest bearing, unsecured and payable upon demand. Due to related parties consist of the following: November 30, 2016 February 29, 2016 $ $ Due to directors and officers of the Company 448,720 334,869 |
2. Summary of Significant Acc17
2. Summary of Significant Accounting Policies: Basis of Presentation (Policies) | 9 Months Ended |
Nov. 30, 2016 | |
Policies | |
Basis of Presentation | 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 have been no material changes in the information disclosed in the notes to the financial statements for the year ended February 29, 2016 included in the Companys 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 nine months ended November 30, 2016 are not necessarily indicative of the results that may be expected for the year ending February 28, 2017. |
2. Summary of Significant Acc18
2. Summary of Significant Accounting Policies: Fair Value of Financial Instruments (Policies) | 9 Months Ended |
Nov. 30, 2016 | |
Policies | |
Fair Value of Financial Instruments | Fair Value of Financial Instruments The estimated fair values for financial instruments are determined based on relevant market information. These estimates involve uncertainties and cannot be determined with precision. The estimated fair value of cash, receivable, accounts payable and accrued liabilities, amounts due to related party and note payable approximate their carrying value due to the short-term nature of those instruments. ASC 820 establishes a fair value hierarchy based on the level of independent, objective evidence surrounding the inputs used to measure fair value. A financial instruments categorization within the fair value hierarchy is based upon the lowest level of input that is significant to the fair value measurement. ASC 820 prioritizes the inputs into three levels that may be used to measure fair value; Level 1 Quoted prices in active markets for identical assets or liabilities; Level 2 Inputs other than quoted prices included within Level 1 that are either directly or indirectly observable; and Level 3 Unobservable inputs that are supported by little or no market activity, there for requiring an entity to develop its own assumptions about the assumption that market participants would use in pricing. The Company had certain Level 3 liabilities required to be recorded at fair value on a recurring basis in accordance with US GAAP as at November 30, 2016. As at November 30, 2016, the Companys Level 3 liabilities consisted of warrants and a convertible debenture. The resulting Level 3 liabilities have no active market and are required to be measured at their fair value each reporting period based on information that is unobservable. A summary of the Companys level 3 liabilities for the nine months ended November 30, 2016 and November 30, 2015 is as follows: November 30, 2016 November 30, 2015 Warrants Beginning fair value $ 150,136 $ 379,463 Issuance 107,071 - Effect of foreign exchange - 1,211 Change in fair value 235,598 (350,818) Ending fair value of warrants 492,805 29,856 Embedded Conversion feature Beginning fair value - - Bifurcation of embedded conversion feature 199,999 - Change in fair value (40,431) - Ending fair value of embedded conversion feature 159,568 - Ending fair value of Level 3 liability $ 652,373 $ 29,856 |
2. Summary of Significant Acc19
2. Summary of Significant Accounting Policies: Basic and Diluted Income (loss) Per Share (Policies) | 9 Months Ended |
Nov. 30, 2016 | |
Policies | |
Basic and Diluted Income (loss) Per Share | Basic and Diluted Income (Loss) per Share Earnings or loss per share (EPS) is computed by dividing net income (loss) available to common stockholders by the weighted average number of common shares outstanding for the period. Diluted EPS is computed by dividing net income (loss) by the weighted-average of all potentially dilutive shares of the common stock that were outstanding during the period presented. There were 6,360,170 (November 30, 2015: 3,680,000) potentially dilutive securities excluded from the calculation of diluted loss per share as their effect would be anti-dilutive. The treasury stock method is used in calculating diluted EPS for potentially dilutive stock options and share purchase warrants, which assumes that any proceeds received from the exercise of in-the-money stock options and share purchase warrants, would be used to purchase common shares at the average market price for the period. Under the if-converted method, EPS is calculated as the more dilutive of EPS (i) including all interest (both cash interest and non-cash discount amortization) and excluding all shares underlying the convertible debt or; (ii) excluding all interest and costs directly related to the convertible debt (both cash interest and non-cash discount amortization) and including all shares underlying the convertible debt. |
2. Summary of Significant Acc20
2. Summary of Significant Accounting Policies: Recent Accounting Pronouncements (Policies) | 9 Months Ended |
Nov. 30, 2016 | |
Policies | |
Recent Accounting Pronouncements | Recent Accounting Pronouncements In August 2014, the FASB issued ASU 2014-15, Presentation of Financial Statements - Going Concern (Subtopic 205-40): Disclosure of Uncertainties about an Entitys Ability to Continue as a Going Concern |
2. Summary of Significant Acc21
2. Summary of Significant Accounting Policies: Fair Value of Financial Instruments: Fair Value of Financial Instrument Table Text Block (Tables) | 9 Months Ended |
Nov. 30, 2016 | |
Tables/Schedules | |
Fair Value of Financial Instrument Table Text Block | November 30, 2016 November 30, 2015 Warrants Beginning fair value $ 150,136 $ 379,463 Issuance 107,071 - Effect of foreign exchange - 1,211 Change in fair value 235,598 (350,818) Ending fair value of warrants 492,805 29,856 Embedded Conversion feature Beginning fair value - - Bifurcation of embedded conversion feature 199,999 - Change in fair value (40,431) - Ending fair value of embedded conversion feature 159,568 - Ending fair value of Level 3 liability $ 652,373 $ 29,856 |
4. Equipment_ Property, Plant a
4. Equipment: Property, Plant and Equipment (Tables) | 9 Months Ended |
Nov. 30, 2016 | |
Tables/Schedules | |
Property, Plant and Equipment | November 30, 2016 Cost Accumulated Depreciation $ $ $ Oil and gas equipment 66,548 11,366 55,182 February 29, 2016 Cost Accumulated Depreciation $ $ $ Oil and gas equipment 66,038 8,802 57,236 |
8. Convertible Debenture and 23
8. Convertible Debenture and Derivative Financial Liabilities: Schedule of Assumptions Used (Tables) | 9 Months Ended |
Nov. 30, 2016 | |
Tables/Schedules | |
Schedule of Assumptions Used | November 30, 2016 Volatility 129 % Risk-free interest rate 0.93 % Expected life 1.46 years Dividend yield nil |
9. Derivative Financial Liabi24
9. Derivative Financial Liabilities - Warrants: Schedule of Derivative Liabilities at Fair Value (Tables) | 9 Months Ended |
Nov. 30, 2016 | |
Tables/Schedules | |
Schedule of Derivative Liabilities at Fair Value | Balance, February 28, 2015 $ 379,463 Fair value adjustment (229,327) Balance, February 29, 2016 150,136 Warrants issued 107,071 Fair value adjustment 235,598 Balance, November 30, 2016 $ 492,805 |
9. Derivative Financial Liabi25
9. Derivative Financial Liabilities - Warrants: Fair Value of Warrants Issued Table Text Block (Tables) | 9 Months Ended |
Nov. 30, 2016 | |
Tables/Schedules | |
Fair Value of Warrants Issued Table Text Block | November 30, 2016 Volatility 199 %- 214 % Risk-free interest rate 0.91 % Expected life 1.46-3.00 years Dividend yield nil |
10. Share Capital_ Warrants Out
10. Share Capital: Warrants Outstanding Table Text Block (Tables) | 9 Months Ended |
Nov. 30, 2016 | |
Tables/Schedules | |
Warrants Outstanding Table Text Block | Number of Warrants Weighted Average Exercise Price per Warrant $ Outstanding at February 29, 2016 1,080,000 0.40 Issued 950,000 0.40 Expired (80,000) 1.50 Number of warrants at November 30, 2016 1,950,000 0.40 |
10. Share Capital_ Schedule of
10. Share Capital: Schedule of Stockholders' Equity Note, Warrants or Rights (Tables) | 9 Months Ended |
Nov. 30, 2016 | |
Tables/Schedules | |
Schedule of Stockholders' Equity Note, Warrants or Rights | Exercise Price Number Outstanding Expiry Date $ 0.40 200,000 May 17, 2018 0.40 1,000,000 March 8, 2019 0.40 500,000 March 9, 2019 0.40 250,000 September 22, 2019 1,950,000 |
10. Share Capital_ Schedule o28
10. Share Capital: Schedule of Stockholders Equity (Tables) | 9 Months Ended |
Nov. 30, 2016 | |
Tables/Schedules | |
Schedule of Stockholders Equity | Exercise Price Number Outstanding and Exercisable Expiry Date Aggregate Intrinsic Value $ $ 0.10 2,300,000 November 3, 2020 460,000 |
11. Related Party Transactions_
11. Related Party Transactions: Schedule of Related Party Transactions (Tables) | 9 Months Ended |
Nov. 30, 2016 | |
Tables/Schedules | |
Schedule of Related Party Transactions | November 30, 2016 February 29, 2016 $ $ Due to directors and officers of the Company 448,720 334,869 |
3. Oil and Gas Properties (Deta
3. Oil and Gas Properties (Details) - USD ($) | 9 Months Ended | 12 Months Ended |
Nov. 30, 2016 | Feb. 29, 2016 | |
Details | ||
Exploration and Production Costs | $ 578,989 | $ 568,151 |
4. Equipment_ Property, Plant31
4. Equipment: Property, Plant and Equipment (Details) - USD ($) | Nov. 30, 2016 | Feb. 29, 2016 |
Cost | ||
Property, Plant and Equipment, Net | $ 66,548 | $ 66,038 |
Accumulated Depreciation | ||
Property, Plant and Equipment, Net | 11,366 | 8,802 |
Net Book Value | ||
Property, Plant and Equipment, Net | $ 55,182 | $ 57,236 |
5. Accounts Payable (Details)
5. Accounts Payable (Details) | 9 Months Ended |
Nov. 30, 2016USD ($)shares | |
Details | |
Common Shares Issued | shares | 353,521 |
Accounts Payable, Other, Current | $ 95,584 |
Settlement of Debt | 11,471 |
Gain on Debt Settlement | $ 11,471 |
6. Note Payable (Details)
6. Note Payable (Details) | Nov. 30, 2016USD ($) |
Details | |
Notes and Loans Payable | $ 18,618 |
7. Asset Retirement Obligation
7. Asset Retirement Obligation (Details) - USD ($) | Nov. 30, 2016 | Feb. 29, 2016 |
Details | ||
Asset Retirement Obligations, Noncurrent | $ 23,724 | $ 21,900 |
8. Convertible Debenture and 35
8. Convertible Debenture and Derivative Financial Liabilities (Details) | 9 Months Ended |
Nov. 30, 2016USD ($) | |
Details | |
Convertible Debt | $ 199,999 |
Derivative financial liabilities - conversion feature | 159,568 |
Gain on Fair Value Adjustment | $ 40,431 |
8. Convertible Debenture and 36
8. Convertible Debenture and Derivative Financial Liabilities: Schedule of Assumptions Used (Details) - At issuance date | 9 Months Ended |
Nov. 30, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Volatility Rate, Minimum | 129.00% |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Risk Free Interest Rate, Minimum | 0.93% |
Maximum | |
Expected Life | 1 year 5 months 16 days |
9. Derivative Financial Liabi37
9. Derivative Financial Liabilities - Warrants: Schedule of Derivative Liabilities at Fair Value (Details) - Derivative Financial Liabilities - Warrants - USD ($) | 9 Months Ended | 12 Months Ended | ||
Nov. 30, 2016 | Feb. 28, 2016 | Feb. 29, 2016 | Feb. 28, 2015 | |
Warrants | $ 492,805 | $ 150,136 | $ 379,463 | |
Fair Value Adjustment of Warrants | 235,598 | $ (229,327) | ||
Warrants Issued | $ 107,071 |
9. Derivative Financial Liabi38
9. Derivative Financial Liabilities - Warrants: Fair Value of Warrants Issued Table Text Block (Details) - Warrants issued and amended | 3 Months Ended |
Nov. 30, 2016 | |
Fair Value Assumptions, Risk Free Interest Rate | 0.91% |
Minimum | |
Fair Value Assumptions, Expected Volatility Rate | 199.00% |
Expected Life | 1 year 5 months 16 days |
Maximum | |
Fair Value Assumptions, Expected Volatility Rate | 214.00% |
Expected Life | 3 years |
10. Share Capital (Details)
10. Share Capital (Details) - USD ($) | 1 Months Ended | 9 Months Ended | |||||||
Sep. 30, 2016 | Nov. 30, 2016 | Nov. 29, 2016 | May 31, 2016 | May 30, 2016 | Mar. 30, 2016 | Feb. 29, 2016 | Jan. 31, 2016 | Aug. 31, 2015 | |
Common Stock, Shares Issued | 31,732,567 | 30,029,046 | |||||||
Shares issued for services | $ 73,821 | ||||||||
Finders' fees | 7,000 | ||||||||
During the Nine Months Ended November 30, 2016 | |||||||||
Common Stock, Shares Issued | 250,000 | 400,000 | 353,521 | 200,000 | 500,000 | ||||
Gross Proceeds for Subscriptions | $ 25,000 | $ 100,000 | $ 50,000 | ||||||
Shares Issued, Price Per Share | $ 0.10 | $ 0.21 | |||||||
Share Capital | 250 | 41,000 | |||||||
Warrant Liability | $ 24,750 | 32,821 | |||||||
Finders' fees | $ 7,000 | ||||||||
During the Year Ended February 29, 2016 | |||||||||
Common Stock, Shares Issued | 125,000 | 22,222 | |||||||
Gross Proceeds for Subscriptions | $ 7,606 | ||||||||
Fair Value of Common Stock Shares Issued | $ 37,500 |
10. Share Capital_ Warrants O40
10. Share Capital: Warrants Outstanding Table Text Block (Details) - $ / shares | 9 Months Ended | |
Nov. 30, 2016 | Feb. 29, 2016 | |
Details | ||
Class of Warrant or Right, Outstanding | 1,950,000 | 1,080,000 |
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ 0.40 | $ 0.40 |
Debt Conversion, Converted Instrument, Warrants or Options Issued | 950,000 | |
Warrants per share issued | $ 0.40 | |
Warrants Expired | (80,000) | |
Warrants Expired Price Per Share | $ 1.50 |
10. Share Capital_ Schedule o41
10. Share Capital: Schedule of Stockholders' Equity Note, Warrants or Rights (Details) | 9 Months Ended |
Nov. 30, 2016$ / sharesshares | |
Warrant 1 | |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Exercise Price | $ / shares | $ 0.40 |
Temporary Equity, Shares Outstanding | shares | 200,000 |
Expiry Date | May 17, 2018 |
Warrant 2 | |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Exercise Price | $ / shares | $ 0.40 |
Temporary Equity, Shares Outstanding | shares | 1,000,000 |
Expiry Date | Mar. 8, 2019 |
Warrant 3 | |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Exercise Price | $ / shares | $ 0.40 |
Temporary Equity, Shares Outstanding | shares | 500,000 |
Expiry Date | Mar. 9, 2019 |
Warrant 4 | |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Exercise Price | $ / shares | $ 0.40 |
Temporary Equity, Shares Outstanding | shares | 250,000 |
Expiry Date | Sep. 22, 2019 |
10. Share Capital_ Schedule o42
10. Share Capital: Schedule of Stockholders Equity (Details) | 9 Months Ended |
Nov. 30, 2016USD ($)$ / sharesshares | |
Details | |
Exercise Price | $ / shares | $ 0.10 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number | shares | 2,300,000 |
Expiration Date | Nov. 3, 2020 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding, Aggregate Intrinsic Value | $ | $ 460,000 |
11. Related Party Transactions
11. Related Party Transactions (Details) - USD ($) | 9 Months Ended | |
Nov. 30, 2016 | Nov. 30, 2015 | |
Details | ||
Management Fees | $ 0 | $ 3,713 |
11. Related Party Transaction44
11. Related Party Transactions: Schedule of Related Party Transactions (Details) - USD ($) | Nov. 30, 2016 | Feb. 29, 2016 |
Details | ||
Due to Other Related Parties | $ 448,720 | $ 334,869 |