Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended | ||
Apr. 30, 2014 | Jul. 23, 2014 | Oct. 31, 2013 | |
Document And Entity Information | ' | ' | ' |
Entity Registrant Name | 'NORTH AMERICAN ENERGY RESOURCES, INC. | ' | ' |
Entity Central Index Key | '0001392694 | ' | ' |
Document Type | '10-K | ' | ' |
Document Period End Date | 30-Apr-14 | ' | ' |
Amendment Flag | 'false | ' | ' |
Current Fiscal Year End Date | '--04-30 | ' | ' |
Entity a Well-known Seasoned Issuer | 'No | ' | ' |
Entity a Voluntary Filer | 'No | ' | ' |
Entity Current Reporting Status | 'Yes | ' | ' |
Entity Filer Category | 'Smaller Reporting Company | ' | ' |
Entity Public Float | ' | ' | $185,624 |
Entity Common Stock, Shares Outstanding | ' | 21,554,945 | ' |
Document Fiscal Period Focus | 'FY | ' | ' |
Document Fiscal Year Focus | '2014 | ' | ' |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Apr. 30, 2014 | Apr. 30, 2013 |
Current assets: | ' | ' |
Cash and cash equivalents | $322 | $482 |
Accounts receivable | 367 | 244 |
Total current assets | 689 | 726 |
Properties and equipment, at cost: | ' | ' |
Proved oil and natural gas properties and equipment using full cost accounting | 2,358 | 2,358 |
Proved oil and natural gas properties and equipment, total | 2,358 | 2,358 |
Accumulated depreciation and amortization | -449 | -290 |
Total properties and equipment | 1,909 | 2,068 |
Total assets | 2,598 | 2,794 |
Accounts payable | ' | ' |
Trade | 19,511 | 49,554 |
Related parties | 30,043 | 20,257 |
Accrued expenses | 300,993 | 260,316 |
Convertible notes payable due officer | 500,000 | 464,992 |
Convertible notes payable | 38,678 | 38,678 |
Total current liabilities | 889,225 | 833,797 |
Commitments and contingencies | ' | ' |
Stockholders' deficit: | ' | ' |
Preferred stock: $0.001 par value; 100,000,000 shares authorized; no shares issued and outstanding | ' | ' |
Common stock: $0.001 par value; 100,000,000 shares authorized; 21,554,945 shares issued and outstanding at April 30, 2014 and 2013 | 21,555 | 21,555 |
Additional paid in capital | 2,838,197 | 2,838,197 |
Deficit accumulated during the development stage | -3,746,379 | -3,690,755 |
Total stockholders' deficit | -886,627 | -831,003 |
Total liabilities and stockholders' deficit | $2,598 | $2,794 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parenthetical) (USD $) | Apr. 30, 2014 | Apr. 30, 2013 |
Statement of Financial Position [Abstract] | ' | ' |
Preferred stock, par value | $0.00 | $0.00 |
Preferred stock, shares authorized | 100,000,000 | 100,000,000 |
Preferred stock, shares issued | ' | ' |
Preferred stock, shares outstanding | ' | ' |
Common stock, par value | $0.00 | $0.00 |
Common stock, shares authorized | 100,000,000 | 100,000,000 |
Common stock, shares issued | 21,554,945 | 21,554,945 |
Common stock, shares outstanding | 21,554,945 | 21,554,945 |
Consolidated_Statements_of_Ope
Consolidated Statements of Operations (USD $) | 12 Months Ended | 92 Months Ended | |
Apr. 30, 2014 | Apr. 30, 2013 | Apr. 30, 2014 | |
Income Statement [Abstract] | ' | ' | ' |
Oil and natural gas sales | $1,875 | $1,451 | $49,314 |
Pipeline fees | ' | ' | 2,450 |
Total revenues | 1,875 | 1,451 | 51,764 |
Costs and expenses | ' | ' | ' |
Oil and natural gas production taxes | 135 | 105 | 3,550 |
Oil and natural gas production expenses | 1,051 | 1,075 | 110,236 |
Depreciation and amortization | 159 | 108 | 16,513 |
Asset impairment | ' | ' | 910,714 |
General and administrative expense, net of operator's overhead fees | 50,008 | 36,624 | 2,634,382 |
Total costs and expenses | 51,353 | 37,912 | 3,675,395 |
Loss from operations | -49,478 | -36,461 | -3,623,631 |
Other income (expense): | ' | ' | ' |
Other income | 34,483 | 11,667 | 56,089 |
Interest income - stockholder | ' | ' | 900 |
Interest expense - officer and stockholders | -40,629 | -37,494 | -179,737 |
Total other income (expense) | -6,146 | -25,827 | -122,748 |
Net loss | ($55,624) | ($62,288) | ($3,746,379) |
Net loss per common share, basic and diluted | $0 | $0 | ' |
Weighted average common shares outstanding | 21,554,945 | 21,554,945 | ' |
Consolidated_Statements_of_Sha
Consolidated Statements of Shareholders' Deficit (USD $) | Common Stock [Member] | Additional Paid-In Capital [Member] | Intrinsic Value Of Common Stock Options [Member] | Prepaid Officer Compensation [Member] | Accumulated Other Comprehensive Loss [Member] | Deficit Accumulated During The Development Stage [Member] | Total |
Balance at Aug. 17, 2006 | ' | ' | ' | ' | ' | ' | ' |
Balance, shares at Aug. 17, 2006 | ' | ' | ' | ' | ' | ' | ' |
Common stock issued for net assets | 11,265 | 88,735 | ' | ' | ' | ' | 100,000 |
Common stock issued for net assets, shares | 11,264,485 | ' | ' | ' | ' | ' | ' |
Common stock issued for cash | 1,126 | 8,874 | ' | ' | ' | ' | 10,000 |
Common stock issued for cash, shares | 1,126,448 | ' | ' | ' | ' | ' | ' |
Common stock issued for cash | 1,126 | 8,874 | ' | ' | ' | ' | 10,000 |
Common stock issued for cash, shares | 1,126,448 | ' | ' | ' | ' | ' | ' |
Net Loss | ' | ' | ' | ' | ' | -5,379 | -5,379 |
Balance at Apr. 30, 2007 | 13,517 | 106,483 | ' | ' | ' | -5,379 | 114,621 |
Balance, shares at Apr. 30, 2007 | 13,517,381 | ' | ' | ' | ' | ' | ' |
Net Loss | ' | ' | ' | ' | ' | -24,805 | -24,805 |
Balance at Apr. 30, 2008 | 13,517 | 106,483 | ' | ' | ' | -30,184 | 89,816 |
Balance, shares at Apr. 30, 2008 | 13,517,381 | ' | ' | ' | ' | ' | ' |
Acquisition of North American Energy Resources, Inc. | 177 | 119,653 | ' | ' | ' | ' | 119,830 |
Acquisition of North American Energy Resources, Inc., shares | 177,000 | ' | ' | ' | ' | ' | ' |
Conversion of note payable and accrued interest for common stock | 153 | 35,377 | ' | ' | ' | ' | 35,530 |
Conversion of note payable and accurued interes for common stock, shares | 153,000 | ' | ' | ' | ' | ' | ' |
Common stock options granted for 350000 shares at $1.00 per share | ' | 178,000 | -178,000 | ' | ' | ' | ' |
Common stock options granted for 50000 shares at $1.25 per share | ' | 27,096 | -27,096 | ' | ' | ' | ' |
Exercise common stock options for $1.25 per share | ' | 6,250 | ' | ' | ' | ' | 6,250 |
Exercise common stock options for $1.25 per share, shares | 100 | ' | ' | ' | ' | ' | ' |
Exercise common stock options for $1.00 per share | 1 | 49,999 | ' | ' | ' | ' | 50,000 |
Exercise common stock options for $1.00 per share, shares | 1,000 | ' | ' | ' | ' | ' | ' |
Exercise common stock options for $1.25 per share | ' | 6,250 | ' | ' | ' | ' | 6,250 |
Exercise common stock options for $1.25 per share, shares | 100 | ' | ' | ' | ' | ' | ' |
Exercise common stock options for $1.00 per share | ' | 3,500 | ' | ' | ' | ' | 3,500 |
Exercise common stock options for $1.00 per share, shares | 70 | ' | ' | ' | ' | ' | ' |
Accounts payable paid with common stock | ' | 9,016 | ' | ' | ' | ' | 9,016 |
Accounts payable paid with common stock, shares | 90 | ' | ' | ' | ' | ' | ' |
Amortize Intrinsic value of options | ' | ' | 17,091 | ' | ' | ' | 17,091 |
Cancel common stock options | ' | -188,005 | 188,005 | ' | ' | ' | ' |
Common stock issued for compensation | ' | 6,250 | ' | ' | ' | ' | 6,250 |
Common stock issued for compensation, shares | 100 | ' | ' | ' | ' | ' | ' |
Common stock issued for accounts payable | ' | 3,000 | ' | ' | ' | ' | 3,000 |
Common stock issued for accounts payable, shares | 60 | ' | ' | ' | ' | ' | ' |
Common stock issued for consulting services | 3 | 310,497 | ' | ' | ' | ' | 310,500 |
Common stock issued for consulting services, shares | 3,000 | ' | ' | ' | ' | ' | ' |
Common stock issued for accounts payable | 1 | 24,999 | ' | ' | ' | ' | 25,000 |
Common stock issued for accounts payable, shares | 400 | ' | ' | ' | ' | ' | ' |
Capital contribution by shareholder in cash | ' | 50,000 | ' | ' | ' | ' | 50,000 |
Common stock issued for compensation | ' | 5,000 | ' | ' | ' | ' | 5,000 |
Common stock issued for compensation, shares | 338 | ' | ' | ' | ' | ' | ' |
Common stock issued for accounts payable | ' | 1,200 | ' | ' | ' | ' | 1,200 |
Common stock issued for accounts payable, shares | 300 | ' | ' | ' | ' | ' | ' |
Common stock issued for accounts payable | ' | 6,000 | ' | ' | ' | ' | 6,000 |
Common stock issued for accounts payable, shares | 400 | ' | ' | ' | ' | ' | ' |
Common stock issued for compensation | 1 | 4,999 | ' | ' | ' | ' | 5,000 |
Common stock issued for compensation, shares | 500 | ' | ' | ' | ' | ' | ' |
Common stock issued for accounts payable | 1 | 3,199 | ' | ' | ' | ' | 3,200 |
Common stock issued for accounts payable, shares | 800 | ' | ' | ' | ' | ' | ' |
Common stock issued for accounts payable | 1 | 3,999 | ' | ' | ' | ' | 4,000 |
Common Stock issued for Accounts payable, shares | 400 | ' | ' | ' | ' | ' | ' |
Common stock issued for accounts payable | 4 | 14,996 | ' | ' | ' | ' | 15,000 |
Common stock issued for accounts payable, shares | 4,000 | ' | ' | ' | ' | ' | ' |
Common stock issued for compensation | 2 | 4,998 | ' | ' | ' | ' | 5,000 |
Common stock issued for compensation, shares | 1,500 | ' | ' | ' | ' | ' | ' |
Common stock issued for accounts payable | 6 | 9,761 | ' | ' | ' | ' | 9,767 |
Common stock issued for accounts payable, shares | 6,000 | ' | ' | ' | ' | ' | ' |
Common stock issued for compensation | 1 | 1,999 | ' | ' | ' | ' | 2,000 |
Common stock issued for compensation, shares | 1,000 | ' | ' | ' | ' | ' | ' |
Common stock issued for compensation | 4 | 4,996 | ' | ' | ' | ' | 5,000 |
Common stock issued for compensation, shares | 4,000 | ' | ' | ' | ' | ' | ' |
Common stock issued for compensation | 4 | 5,996 | ' | ' | ' | ' | 6,000 |
Common stock issued for compensation,share | 4,000 | ' | ' | ' | ' | ' | ' |
Common stock issued for officer compensation | 160 | 145,440 | ' | -84,933 | ' | ' | 60,667 |
Common stock issued for officer compensation, shares | 160,000 | ' | ' | ' | ' | ' | ' |
Net Loss | ' | ' | ' | ' | ' | -1,097,468 | -1,097,468 |
Balance at Apr. 30, 2009 | 14,036 | 960,948 | ' | -84,933 | ' | -1,127,652 | -237,601 |
Balance, shares at Apr. 30, 2009 | 14,035,539 | ' | ' | ' | ' | ' | ' |
Common stock issued for consulting agreement | 400 | 419,600 | ' | ' | ' | ' | 420,000 |
Common stock issued for consulting agreement, shares | 400,000 | ' | ' | ' | ' | ' | ' |
Common stock issued for consulting agreement | 200 | 209,800 | ' | ' | ' | ' | 210,000 |
Common stock issued for consulting agreement, shares | 200,000 | ' | ' | ' | ' | ' | ' |
Common stock issued for oil and gas producing property | 700 | 125,300 | ' | ' | ' | ' | 126,000 |
Common stock issued for oil and gas producing property, shares | 700,000 | ' | ' | ' | ' | ' | ' |
Common stock issued for accounts payable | 10 | 4,990 | ' | ' | ' | ' | 5,000 |
Common stock issued for accounts payable, shares | 10,000 | ' | ' | ' | ' | ' | ' |
Common stock issued for consulting agreement | 30 | 14,970 | ' | ' | ' | ' | 15,000 |
Common stock issued for consulting agreement, shares | 30,000 | ' | ' | ' | ' | ' | ' |
Common stock issued for consulting agreement | 30 | 14,970 | ' | ' | ' | ' | 15,000 |
Common stock issued for consulting agreement, shares | 30,000 | ' | ' | ' | ' | ' | ' |
Common stock issued for oil and gas producing property | 350 | 192,150 | ' | ' | ' | ' | 192,500 |
Common stock issued for oil and gas producing property, shares | 350,000 | ' | ' | ' | ' | ' | ' |
Common stock issued for consulting contract | 300 | 182,700 | ' | ' | ' | ' | 183,000 |
Common stock issued for consulting contract, shares | 300,000 | ' | ' | ' | ' | ' | ' |
Common stock issued for cash | 200 | 5,800 | ' | ' | ' | ' | 6,000 |
Common stock issued for cash, shares | 200,000 | ' | ' | ' | ' | ' | ' |
Common stock issued for consulting agreement | 400 | 31,600 | ' | ' | ' | ' | 32,000 |
Common stock issued for consulting agreement, shares | 400,000 | ' | ' | ' | ' | ' | ' |
Common stock issued for consulting agreement - director fees | 450 | 35,550 | ' | ' | ' | ' | 36,000 |
Common stock issued for consulting agreement - director fees, shares | 450,000 | ' | ' | ' | ' | ' | ' |
Common stock issued for consulting agreement - director fees | 150 | 11,850 | ' | ' | ' | ' | 12,000 |
Common stock issued for consulting agreement - director fees, shares | 150,000 | ' | ' | ' | ' | ' | ' |
Common stock issued for officer compensation - director fees | 120 | 9,480 | ' | ' | ' | ' | 9,600 |
Common stock issued for officer compensation - director fees, shares | 120,000 | ' | ' | ' | ' | ' | ' |
Other comprehensive loss on available-for-sale securities | ' | ' | ' | ' | -1,000 | ' | -1,000 |
Amortize officer compensation | ' | ' | ' | 72,804 | ' | ' | 72,804 |
Net Loss | ' | ' | ' | ' | ' | -1,382,974 | -1,382,974 |
Balance at Apr. 30, 2010 | 17,376 | 2,219,708 | ' | -12,129 | -1,000 | -2,510,626 | -286,671 |
Balance, shares at Apr. 30, 2010 | 17,375,539 | ' | ' | ' | ' | ' | ' |
Amortize officer compensation | ' | ' | ' | 12,129 | ' | ' | 12,129 |
Recission of available-for-sale securities transaction | ' | ' | ' | ' | 1,000 | ' | 1,000 |
Convertible note payable forgiven by related party | ' | 57,920 | ' | ' | ' | ' | 57,920 |
Common stock issued for consulting agreement | 850 | 7,650 | ' | ' | ' | ' | 8,500 |
Common stock issued for consulting agreement, shares | 850,000 | ' | ' | ' | ' | ' | ' |
Common stock issued for conversion of convertible notes payable | 3,329 | 552,919 | ' | ' | ' | ' | 556,248 |
Common stock issued for conversion of convertible notes payable, shares | 3,329,406 | ' | ' | ' | ' | ' | ' |
Net Loss | ' | ' | ' | ' | ' | -462,392 | -462,392 |
Balance at Apr. 30, 2011 | 21,555 | 2,838,197 | ' | ' | ' | -2,973,018 | -113,266 |
Balance, shares at Apr. 30, 2011 | 21,554,945 | ' | ' | ' | ' | ' | ' |
Net Loss | ' | ' | ' | ' | ' | -655,449 | -655,449 |
Balance at Apr. 30, 2012 | 21,555 | 2,838,197 | ' | ' | ' | -3,628,467 | -768,715 |
Balance, shares at Apr. 30, 2012 | 21,554,945 | ' | ' | ' | ' | ' | ' |
Net Loss | ' | ' | ' | ' | ' | -62,288 | -62,288 |
Balance at Apr. 30, 2013 | 21,555 | 2,838,197 | ' | ' | ' | -3,690,755 | -831,003 |
Balance, shares at Apr. 30, 2013 | 21,554,945 | ' | ' | ' | ' | ' | ' |
Net Loss | ' | ' | ' | ' | ' | -55,624 | -55,624 |
Balance at Apr. 30, 2014 | $21,555 | $2,838,197 | ' | ' | ' | ($3,746,379) | ($886,627) |
Balance, shares at Apr. 30, 2014 | 21,554,945 | ' | ' | ' | ' | ' | ' |
Consolidated_Statements_of_Sha1
Consolidated Statements of Shareholders' Deficit (Parenthetical) (USD $) | 12 Months Ended |
Apr. 30, 2009 | |
Statement of Stockholders' Equity [Abstract] | ' |
Common stock options granted, shares | 350,000 |
Common stock options granted, shares | 50,000 |
Common stock options granted, per share | $1 |
Common stock options granted, per share | $1.25 |
Exercise common stock options, per share | $1.25 |
Exercise common stock options, per share | $1 |
Exercise common stock options, per share | $1.25 |
Exercise common stock options, per share | $1 |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (USD $) | 12 Months Ended | 92 Months Ended | |
Apr. 30, 2014 | Apr. 30, 2013 | Apr. 30, 2014 | |
Operating activities | ' | ' | ' |
Net loss | ($55,624) | ($62,288) | ($3,746,379) |
Adjustments to reconcile net loss to net cash used in operating activities: | ' | ' | ' |
Depreciation and amortization | 159 | 108 | 16,513 |
Non-cash compensation | ' | ' | 1,414,291 |
Asset impairment | ' | ' | 910,714 |
Bad debt expense | ' | ' | 104,243 |
Accounts payable forgiven | -34,484 | ' | -34,484 |
Changes in operating assets and liabilities: | ' | ' | ' |
Accounts receivable | -123 | 123 | -96,424 |
Accrued interest income - stockholder | ' | ' | -900 |
Prepaid expenses and other assets | ' | ' | 12,232 |
Accounts payable | 4,441 | -48,062 | 321,882 |
Accrued expenses | 40,677 | 36,544 | 387,108 |
Advances from joint interest owners | ' | ' | -9,643 |
Net cash used in operating activities | -44,954 | -73,575 | -720,847 |
Investing activities | ' | ' | ' |
Payments for oil and natural gas properties | ' | ' | -166,311 |
Cash received in excess of cash paid to acquire North American Energy Resources, Inc | ' | ' | 119,830 |
Proceeds from sale of oil and natural gas properties | ' | ' | 7,500 |
Payments for pipeline | ' | ' | -7,500 |
Net cash used in investing activities | 0 | 0 | -46,481 |
Financing activities | ' | ' | ' |
Loan proceeds | ' | ' | 48,750 |
Loans from officers and shareholders | 35,008 | 72,182 | 630,850 |
Related party advances for working capital | 9,786 | 1,559 | 12,050 |
Cash contributions from shareholders | ' | ' | 50,000 |
Sale of common stock | ' | ' | 26,000 |
Net cash provided by financing activities | 44,794 | 73,741 | 767,650 |
Net increase in cash and cash equivalents | -160 | 166 | 322 |
Cash, beginning of period | 482 | 316 | ' |
Cash, end of period | 322 | 482 | 322 |
Cash paid for interest and income taxes: | ' | ' | ' |
Interest | ' | ' | 437 |
Income taxes | ' | ' | ' |
Common stock issued for: | ' | ' | ' |
Notes receivable | ' | ' | 76,000 |
Oil and gas properties | ' | ' | 303,670 |
Interest in pipeline | ' | ' | 100,000 |
Loans to shareholders assumed | ' | ' | -371,000 |
Advance from joint interest participant assumed | ' | ' | -8,670 |
Common stock issued, total | ' | ' | 100,000 |
Common stock issued for convertible note payable and accrued interest | ' | ' | 591,778 |
Exchange of joint interest receivable for oil and natural gas properties | ' | ' | 53,068 |
Common stock options granted | ' | ' | 205,096 |
Common stock options cancelled | ' | ' | 188,005 |
Common stock issued for consulting agreements | ' | ' | 911,100 |
Unevaluated oil and natural gas properties | ' | ' | 126,000 |
Proven oil and natural gas properties | ' | ' | 192,500 |
Accounts payable | ' | ' | 106,183 |
Chief executive officer compensation | ' | ' | 155,200 |
Credit balance transferred from accounts receivable to accounts payable | ' | ' | 1,068 |
Accounts receivable applied as payment on note payable to related party | ' | ' | 4,572 |
Option exercises paid by reducing note payable related party | ' | ' | 75,250 |
Advance from shareholder converted to note | ' | ' | 2,000 |
Accounts payable converted to convertible note payable | ' | ' | $38,678 |
Organization_and_Summary_of_Si
Organization and Summary of Significant Accounting Policies | 12 Months Ended |
Apr. 30, 2014 | |
Accounting Policies [Abstract] | ' |
Organization and Summary of Significant Accounting Policies | ' |
Note 1: Organization and summary of significant accounting policies | |
Organization | |
The consolidated financial statements include the accounts of North American Energy Resources (“NAEY”) and its wholly owned subsidiary North American Exploration, Inc. (“NAE”) (collectively the “Company”). All intercompany balances and transactions have been eliminated in consolidation. | |
NAEY was originally organized in Nevada on August 22, 2006 with the name Mar Ked Mineral Exploration, Inc. (“Mar Ked”). The Company changed its name from Mar Ked to North American Energy Resources, Inc. on August 11, 2008. | |
On July 28, 2008, the Company acquired 100% of the outstanding stock of NAE for 420,000 shares of its common stock pursuant to a Stock Purchase Agreement (“SPA”). Completion of the SPA resulted in the shareholders of NAE having control of NAEY. Accordingly, the transaction was recorded for accounting purposes as the acquisition of NAE by NAEY with NAE as the acquirer (reverse acquisition). The financial statements of the Company prior to July 28, 2008 are those of NAE. Formerly NAEY used a November 30 year-end. The Company will utilize the April 30 year-end of NAE after April 30, 2008. | |
The SPA provided that NAEY was to have $1,500,000 in cash and no liabilities at closing. At closing, NAEY had $150,000 of the required cash and on August 28, 2008, the parties to the SPA entered into a Modification Agreement (“MA”) which provided an extension until January 27, 2009 for the additional cash to be contributed to the Company. At January 27, 2009, the Company had received an additional $50,000 and was still short of the agreed amount by $1,300,000. The MA provided that the Buyer would make contingent issuances of shares to the Seller equal to 95% of all the outstanding stock after issuance. Accordingly, effective April 30, 2009, an additional 13,250,381 shares were issued to the Sellers. Accordingly, the total purchase price for NAE was 13,690,381 shares of common stock. | |
NAE was organized in Nevada on August 18, 2006 as Signature Energy, Inc. and changed its name to North American Exploration, Inc. on June 2, 2008. | |
Going concern | |
The accompanying financial statements are prepared assuming the company will continue as a going concern. As of April 30, 2014, the Company’s current liabilities exceed its current assets by $888,536 and its total liabilities exceed its total assets by $886,627. The company has also incurred net losses since its inception. These factors, among others, raise substantial doubt as to the Company’s ability to continue as a going concern. The consolidated financial statements do not include any adjustments that might result from the outcome of this uncertainty. | |
The Company expects to attempt to raise capital with private placements of common stock or preferred stock and borrow funds as necessary to implement its business plan. | |
Business | |
NAE is an independent oil and natural gas company engaged in the acquisition, exploration and development of oil and natural gas properties and the production of oil and natural gas. The Company operates in the upstream segment of the oil and gas industry which includes the drilling, completion and operation of oil and gas wells. The Company has an interest in a pipeline in Washington County, Oklahoma which is currently shut-in, but has been used to gather natural gas production. The Company’s gas production in Washington County, Oklahoma was shut-in due to low prices in February 2009 and was sold effective October 1, 2010 along with the Company’s oil production in the area. The Company has acquired an interest in a non-operated gas well in Texas County, Oklahoma and is continuing to seek additional acquisition possibilities. | |
Development stage | |
We are considered a development stage company because we have had limited resources and do not currently have sufficient capital to complete our business plan, which includes acquiring and operating producing properties with development potential. Accordingly, the operations of the Companies are presented as those of a development stage enterprise, from inception (August 18, 2006). | |
Cash | |
The Company maintains cash balances at various financial institutions. Accounts at each institution are insured by the Federal Deposit Insurance Corporation up to $250,000. The Company’s accounts at these institutions may, at times, exceed the federally insured limits. The Company has not experienced any losses in such accounts. | |
Revenue recognition | |
We derive our revenue primarily from the sale of produced crude oil and natural gas. Revenue is recorded in the month the product is delivered to the purchaser. We receive payment from one to three months after delivery. At the end of each month, we estimate the amount of production delivered to purchasers and the price we will receive. Variances between our estimated revenue and actual payment are recorded in the month the payment is received; however, the differences should be insignificant. | |
Property and equipment | |
The Company follows the full cost method of accounting for oil and natural gas operations. Under this method all productive and nonproductive costs incurred in connection with the acquisition, exploration and development of oil and natural gas reserves are capitalized. No gains or losses are recognized upon the sale or other disposition of oil and natural gas properties except in transactions that would significantly alter the relationship between capitalized costs and proved reserves. The costs of unevaluated oil and natural gas properties are excluded from the amortizable base until the time that either proven reserves are found or it has determined that such properties are impaired. The Company had no capitalized costs related to unevaluated properties at April 30, 2014 and 2013. As properties are evaluated, the related costs would be transferred to proven oil and natural gas properties using full cost accounting. All capitalized costs were included in the amortization base as of April 30, 2014 and 2013. | |
Under the full cost method the net book value of oil and natural gas properties, less related deferred income taxes, may not exceed the estimated after-tax future net revenues from proved oil and natural gas properties, discounted at 10% (the “Ceiling Limitation”). In arriving at estimated future net revenues, estimated lease operating expenses, development costs, and certain production-related taxes are deducted. In calculating future net revenues, revenues are based on the arithmetic average of beginning of month prices for both years. Costs in effect at the time of the calculation for both years are held constant indefinitely, except for changes that are fixed and determinable by existing contracts. The net book value is compared to the ceiling limitation on a quarterly and yearly basis. The excess, if any, of the net book value above the ceiling limitation is charged to expense in the period in which it occurs and is not subsequently reinstated. Reserve estimates used in determining estimated future net revenues have been prepared by an independent engineer for 2014 and 2013. The Company has not recorded an impairment in 2014 or 2013. | |
Other property and equipment consists principally of the Company’s interest in a pipeline. Other property and equipment and related accumulated amortization and depreciation are relieved upon retirement or sale and the gain or loss is included in operations. Renewals and replacements that extend the useful life of property and equipment are treated as capital additions. The pipeline was written off at the end of 2010 and an asset impairment charge of $132,663 was recorded. | |
The Company assesses the recoverability of the carrying value of its non-oil and gas long-lived assets when events occur that indicate an impairment in value may exist. An impairment loss is indicated if the sum of the expected undiscounted future net cash flows is less than the carrying amount of the assets. If this occurs, an impairment loss is recognized for the amount by which the carrying amount of the assets exceeds the estimated fair value of the asset. | |
Depreciation and amortization | |
All capitalized costs of oil and natural gas properties and equipment, including the estimated future costs to develop proved reserves, are amortized using the unit-of-production method based on total proved reserves. Depreciation of other equipment is computed on the straight-line method over the estimated useful lives of the assets, which range from three to twenty-five years. | |
Natural gas sales and gas imbalances | |
The Company follows the entitlement method of accounting for natural gas sales, recognizing as revenues only its net interest share of all production sold. Any amount attributable to the sale of production in excess of or less than the Company’s net interest is recorded as a gas balancing asset or liability. At April 30, 2014 and 2013, there were no natural gas imbalances. | |
Credit and market risk | |
The Company sells oil and natural gas to one customer and participates with other parties in the drilling, completion and operation of oil and natural gas wells. Joint interest and oil and natural gas sales receivables related to these operations are generally unsecured. The Company provides an allowance for doubtful accounts for certain joint interest owners’ receivable balances when the Company believes the recoverable balance may not be collected. The Company has the right of offset of the joint interest owners’ share of oil and natural gas production against amounts owed by the joint interest owners. Accounts receivable are presented net of the related allowance for doubtful accounts. At April 30, 2014 and 2013, the Company’s accounts receivable balance was solely for its share of gas production. | |
In 2014 and 2013, the Company did not have cash deposits in its bank that exceeded the maximum insured by the Federal Deposit Insurance Corporation. The Company monitors the financial condition of its banks and has experienced no losses on these accounts. | |
Oil and natural gas reserve estimates | |
The Company engaged an independent consultant to prepare its oil and natural gas reserves in 2014 and 2013. Proved reserves, estimated future net revenues and the present value of our reserves are estimated based upon a combination of historical data and estimates of future activity. Consistent with SEC requirements, we have based our revenue projections on the arithmetic average of beginning of the month historical prices in 2014 and 2013. The reserve estimates are used in calculating depletion, depreciation and amortization and in the assessment of the Company’s Ceiling Limitation. Significant assumptions are required in the valuation of proved oil and natural gas reserves which, as described herein, may affect the amount at which oil and natural gas properties are recorded. Actual results could differ materially from these estimates. | |
Income taxes | |
Provisions for income taxes are based on taxes payable or refundable for the current year and deferred taxes. Deferred taxes are provided on differences between the tax bases of assets and liabilities and their reported amounts in the financial statements, and tax carry forwards. Deferred tax assets and liabilities are included in the financial statements at currently enacted income tax rates applicable to the period in which the deferred tax assets and liabilities are expected to be realized or settled. As changes in tax laws or rates are enacted, deferred tax assets and liabilities are adjusted through the provision for income taxes. | |
At April 30, 2014 and 2013, the Company had no accrued interest or penalties relating to any tax obligations. The Company currently has no federal or state examinations in progress, nor has it had any federal or state examinations since its inception. The last three years of the Company’s tax years are subject to federal and state tax examination. | |
In assessing the realization of the deferred tax assets, management considers whether it is more likely than not that some portion of the deferred tax assets will be realized. The ultimate realization of the deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible. Management considers the projected future taxable income and tax planning strategies in making this assessment. Based on this assessment, management has established a full valuation allowance against all of the deferred tax assets relating to the NOLs for every period because it is more likely than not that all of the deferred tax assets will not be realized. | |
Earnings (loss) per common share | |
The Company is required to report both basic earnings per share, which is based on the weighted-average number of common shares outstanding, and diluted earnings per share, which is based on the weighted-average number of common shares outstanding plus all potential dilutive shares outstanding. At April 30, 2014 and 2013, there are warrants outstanding that could be converted into 30,500,000 shares of our common stock. At April 30, 2014 and 2013, there were no potentially dilutive common stock equivalents. Accordingly, basic and diluted earnings (loss) per share are the same for each of the periods presented. | |
Estimates | |
The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. | |
Fair value of financial instruments | |
Financial instruments consist of accounts payable, accrued expenses and short-term borrowings. The carrying amount of these financial instruments approximates fair value due to their short-term nature or the current rates at which the Company could borrow funds with similar remaining maturities. | |
Stock option plans | |
The compensation cost relating to share-based payment transactions (including the cost of all employee stock options) is required to be recognized in the financial statements. That cost will be measured based on the estimated fair value of the equity or liability instruments issued. The accounting literature covers a wide range of share-based compensation arrangements including share options, restricted share plans, performance-based awards, share appreciation rights, and employee share purchase plans. | |
The Black-Scholes option valuation model was developed for use in estimating the fair value of traded options that have no vesting restrictions and are fully transferable. In addition, option valuation models require the input of highly subjective assumptions including the expected stock price volatility. Because the Company’s options have characteristics significantly different from those of traded options, and because changes in the subjective input assumptions can materially affect the fair value estimate, in management’s opinion, the existing models may not necessarily provide a reliable single measure of the fair value of its options. However, the Black-Scholes option valuation model provides the best available estimate for this purpose. | |
The North American Energy Resources, Inc. 2008 Stock Option plan was filed on September 11, 2008 and terminated on July 23, 2013. | |
Contingencies | |
Certain conditions may exist as of the date financial statements are issued, which may result in a loss to the Company, but which will only be resolved when one or more future events occur or fail to occur. Company management and its legal counsel assess such contingencies related to legal proceedings that are pending against the Company or unasserted claims that may result in such proceedings, the Company’s legal counsel evaluates the perceived merits of any legal proceedings or unasserted claims as well as the perceived merits of the amount of relief sought or expected to be sought therein. If the assessment of a contingency indicates that it is probable that a liability has been incurred and the amount of the liability can be estimated, then the estimated liability would be accrued in the Company’s consolidated financial statements. If the assessment indicates that a potential material loss contingency is not probable but is reasonably possible, or if probable but cannot be estimated, then the nature of the contingent liability, together with an estimate of the range of possible loss if determinable would be disclosed. | |
Asset retirement obligations | |
The fair value of a liability for an asset retirement obligation is required to be recognized in the period in which it is incurred if a reasonable estimate of fair value can be made, and that the associated retirement costs be capitalized as part of the carrying amount of the long-lived asset. The Company determines its asset retirement obligation by calculating the present value of the estimated cash flows related to the liability. Periodic accretion of the discount of the estimated liability would be recorded in the statement of operations. At April 30, 2014 and 2013 the Company has estimated that its share of the cost of plugging and abandoning its producing properties was $508 and $460, respectively. | |
Impairment of oil and gas properties | |
Producing properties and significant unproved properties are assessed annually, or more frequently as economic events dictate, for potential impairment. Any impairment loss is the difference between the carrying value of the asset and its fair value. Fair value is calculated as the present value of estimated expected future cash flows from proved, probable and, as appropriate, possible reserves. | |
Recent accounting pronouncements | |
There are several new accounting pronouncements issued by the Financial Accounting Standards Board (“FASB”) which are not yet effective. Each of these pronouncements, as applicable, has been or will be adopted by the Company. As of June 30, 2014, none of these pronouncements is expected to have a material effect on the financial position, results of operations or cash flows of the Company. |
Accounts_and_Note_Receivable
Accounts and Note Receivable | 12 Months Ended | ||||||||
Apr. 30, 2014 | |||||||||
Accounts And Note Receivable | ' | ||||||||
Accounts and Note Receivable | ' | ||||||||
Note 2: accounts and note receivable | |||||||||
Accounts receivable at April 30, 2014 and 2013 include the following: | |||||||||
2014 | 2013 | ||||||||
Natural gas sales, net | $ | 367 | $ | 244 | |||||
Note receivable | 5,000 | 5,000 | |||||||
Allowance for doubtful accounts | (5,000 | ) | (5,000 | ) | |||||
$ | 367 | $ | 244 | ||||||
The Company received a note for $5,000 for a portion of the purchase price when it sold its oil properties and gas leases in Washington County, Oklahoma in the fall of 2010. The Company determined uncertainty about the collectability of the note existed and fully reserved the note balance at April 30, 2011. At April 30, 2014, there had been no activity on the note. |
Related_Party_Transactions
Related Party Transactions | 12 Months Ended | ||||||||
Apr. 30, 2014 | |||||||||
Related Party Transactions [Abstract] | ' | ||||||||
Related Party Transactions | ' | ||||||||
Note 3: related party transactions | |||||||||
At April 30, 2014 and 2013, the Company owes its CEO and its CFO the following amounts for expense reimbursements. | |||||||||
2014 | 2013 | ||||||||
Chief executive officer | $ | 7,155 | $ | - | |||||
Chief financial officer | 22,888 | 20,257 | |||||||
$ | 30,043 | $ | 20,257 | ||||||
Effective June 15, 2011, the Board of Directors approved compensation to begin accruing at the rate of $10,000 per month for each of the two listed executive officers. Beginning effective November 1, 2011, the compensation rate for Mr. Coldren increased to $20,833 per month and for Mr. Massara increased to $18,750 per month. Both agreed to discontinue accruing their salary effective January 31, 2012 until conditions improve. | |||||||||
Accrued expenses include the following: | |||||||||
2014 | 2013 | ||||||||
Accrued compensation due officers | $ | 208,750 | $ | 208,750 | |||||
Accrued interest due CEO | 86,616 | 47,534 | |||||||
Amount due related parties | 295,366 | 256,284 | |||||||
Accrued interest - other | 5,119 | 3,572 | |||||||
Asset retirement obligation | 508 | 460 | |||||||
$ | 300,993 | $ | 260,316 | ||||||
Convertible note payable – officer | |||||||||
Interim financing for due diligence expenses and operations is being funded pursuant to a $500,000 multiple advance bridge loan provided to the Company by Clinton W. Coldren, CEO. In evidence of the loan, on November 3, 2011, the Company issued to Clinton W. Coldren that certain 8% Convertible Note in the principal amount of $500,000. The Convertible Note has an original term of one year and is convertible, at the option of the Holder, into shares of common stock of the Company, in whole or in part at any time, at an initial conversion price equal to 130% of the volume-weighted average price of the common stock for the 50 trading days following October 31, 2011, subject to adjustment for distributions to shareholders, stock splits, reclassification of shares and tender or exchange offers. The Company does not have the right to prepay all or any portion of the Note prior to the Maturity Date. The due date of the Note has been extended until June 30, 2014. | |||||||||
April 30, | |||||||||
2014 | 2013 | ||||||||
Principal balance | $ | 500,000 | $ | 464,992 | |||||
Accrued interest | 86,616 | 47,534 | |||||||
$ | 586,616 | $ | 512,526 | ||||||
Warrants | |||||||||
On December 15, 2010, the Board of Directors granted Warrants to its new Executive Team as described in Note 5 below. | |||||||||
The Board of Directors issued a warrant to acquire 500,000 shares of the Company’s common stock at $0.18 per share to its new director, Larry D. Hall, on November 10, 2011. The strike price exceeded the market price when the warrants were granted. |
Convertible_Notes_Payable
Convertible Notes Payable | 12 Months Ended |
Apr. 30, 2014 | |
Debt Disclosure [Abstract] | ' |
Convertible Notes Payable | ' |
Note 4: CONVERTIBLE NOTES PAYABLE | |
Convertible notes payable at April 30, 2014 and 2013 consists of one convertible note in the amount of $38,678 with interest accruing at 4% per annum which is due June 30, 2014. The note is convertible into the Company’s common stock at the rate of $0.02 per share. The note consists of accounts payable to a consultant that was converted into the convertible note. |
Stockholders_Equity
Stockholder's Equity | 12 Months Ended | ||
Apr. 30, 2014 | |||
Equity [Abstract] | ' | ||
Stockholder's Equity | ' | ||
Note 5: Stockholder’s equity | |||
PREFERRED STOCK | |||
The Company has 100,000,000 shares of $0.001 par value preferred stock authorized and no shares issued or outstanding at April 30, 2014 and 2013. | |||
COMMON STOCK | |||
The Company has 100,000,000 shares of its $0.001 par value common stock authorized. At April 30, 2014 and 2013 the Company had 21,554,945 shares issued and outstanding. | |||
WARRANTS | |||
As a part of their initial compensation, on December 15, 2010, the new Executive Team was granted Warrants with the following primary terms and conditions. The strike price exceeded the market price when the Warrants were granted. | |||
a) Each Warrant shall entitle the owner to purchase one share of common stock of the Company. The warrants contain price protection when the shares will be used for an acquisition at a price lower than the conversion price in force. The anti dilution provision will not apply to financings done below the strike price. | |||
b) The Executive Team was granted three Warrant Certificates as follows: | |||
1 | Certificate #1 for 10,000,000 warrants with a strike price of $0.025 per share must be exercised within one year of the date Executive Team begins collecting salaries from the Company, | ||
2 | Certificate #2 for 10,000,000 warrants with a strike price of $0.04 per share and a Term of 5 years from the vesting date, and | ||
3 | Certificate #3 for 10,000,000 warrants with a strike price of $0.055 per share and a Term of 5 years from the vesting date. | ||
c) Other warrant terms are as follows: | |||
1 | Certificate #1 vests immediately, Certificate #2 shall vest upon execution of Certificate #1 and Certificate #3 shall vest upon execution of Certificate #1, | ||
2 | All Warrants may vest early if the Company has revenue of $12,500,000 total for two consecutive quarters and records a pre-tax net profit for the two quarters and other conditions including change in control, termination, etc., | ||
3 | The Warrant Certificates may be allocated among the Executive Team as they so determine, and | ||
4 | The Warrants shall be registered in the first registration statement the Company files, subject to legal counsel approval. | ||
The Board of Directors issued a warrant to acquire 500,000 shares of the Company’s common stock at $0.18 per share to its new director, Larry D. Hall, on November 10, 2011. The strike price exceeded the market price when the warrants were granted. | |||
COMMON STOCK OPTIONS | |||
The North American Energy Resources, Inc. 2008 Stock Option Plan (“Plan”) was filed on September 11, 2008 and reserved 2,500,000 shares for awards under the Plan. The Company’s Board of Directors was designated to administer the Plan and may form a Compensation Committee for this purpose. The Plan terminated on July 23, 2013. | |||
At April 30, 2013 there were 1,242,333 shares available for grant which expired when the Plan terminated. |
Income_Taxes
Income Taxes | 12 Months Ended | ||||||||
Apr. 30, 2014 | |||||||||
Income Tax Disclosure [Abstract] | ' | ||||||||
Income Taxes | ' | ||||||||
Note 6: income taxes | |||||||||
The Company has not provided a deferred tax benefit or expense for the years ended April 30, 2014 and 2013, as all net deferred tax assets have a full valuation allowance. | |||||||||
Actual income tax benefit applicable to net loss before income taxes is reconciled with the “normally expected” federal income tax as follows: | |||||||||
2014 | 2013 | ||||||||
“Normally expected” income tax benefit | $ | (18,900 | ) | $ | (21,200 | ) | |||
State income taxes net of federal income tax benefit | (2,200 | ) | (2,500 | ) | |||||
Other | 200 | 100 | |||||||
Valuation allowance | 20,900 | 23,600 | |||||||
Total | $ | - | $ | - | |||||
The Company’s income tax provision was computed based on the federal statutory rate and the average state rate, net of the related federal benefit. Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. Significant components of the Company’s deferred tax assets and liabilities are as follows: | |||||||||
2014 | 2013 | ||||||||
Net operating loss carryforward | $ | 1,105,200 | $ | 1,096,400 | |||||
Accrued compensation and accrued interest | 113,900 | 98,500 | |||||||
Depreciable/depletable property, plant and equipment | 44,400 | 47,700 | |||||||
Bad debts | 1,900 | 1,900 | |||||||
Valuation allowance | (1,265,400 | ) | (1,244,500 | ) | |||||
Total | $ | - | $ | - | |||||
At April 30, 2014, the Company has net operating loss carryforwards in the amount of approximately $3,327,000, which expire between 2027 and 2034. |
Subsequent_Event
Subsequent Event | 12 Months Ended |
Apr. 30, 2014 | |
Subsequent Events [Abstract] | ' |
Subsequent Event | ' |
Note 7: SUBSEQUENT EVENT | |
On June 30, 2014, the Board of Directors of the Company approved the following convertible notes and convertible note extensions. All notes are due April 30, 2015, are convertible into the Company’s common stock at the rate of $0.015 per common share and bear interest at 4% per annum. | |
1. The $500,000 convertible note payable due to the Company’s CEO was extended and the interest rate and conversion rate reduced; | |
2. The $38,678 convertible note payable was extended and the conversion rate was reduced; | |
3. New convertible notes were issued for $17,100 in accounts payable trade and $30,043 in accounts payable related parties. |
Supplementary_Oil_and_Gas_Rese
Supplementary Oil and Gas Reserve Information (Unaudited) | 12 Months Ended | ||||||||
Apr. 30, 2014 | |||||||||
Extractive Industries [Abstract] | ' | ||||||||
Supplementary Oil and Gas Reserve Information (Unaudited) | ' | ||||||||
Note 8: supplementary oil and gas reserve information (unaudited) | |||||||||
The Company has an interest in a gas well in Texas County, Oklahoma at April 30, 2014 and 2013. | |||||||||
The Company engaged Pinnacle Energy Services, LLC to prepare its estimate of future net recoverable natural gas reserves as of May 1, 2014 and 2013. Estimated proved net recoverable reserves as shown below include only those quantities that can be expected to be commercially recoverable using the beginning of month average prices and costs in effect at the balance sheet dates existing under existing regulatory practices and with conventional equipment and operating methods. | |||||||||
Proved developed reserves represent only those reserves expected to be recovered through existing wells. Proved undeveloped reserves would include those reserves expected to be recovered from new wells on un-drilled acreage or from existing wells on which a relatively major expenditure is required for re-completion. | |||||||||
Capitalized costs relating to oil and natural gas producing activities and related accumulated depreciation and amortization at April 30, 2014 and 2013 are summarized as follows: | |||||||||
2014 | 2013 | ||||||||
Proved oil and natural gas properties under full cost | $ | 2,358 | $ | 2,358 | |||||
Accumulated depreciation and amortization | (449 | ) | (290 | ) | |||||
$ | 1,909 | $ | 2,068 | ||||||
The Company incurred no costs in oil and natural gas producing activities for the years ended April 30, 2014 and 2013. | |||||||||
Net quantities of proved and proved developed reserves of oil and natural gas are summarized as follows: | |||||||||
Gas (MCF) | |||||||||
Balance, April 30, 2012 | 12,679 | ||||||||
Production | (671 | ) | |||||||
Revisions of estimates | (3,398 | ) | |||||||
Balance, April 30, 2013 | 8,610 | ||||||||
Production | (658 | ) | |||||||
Revisions of estimates | 2,848 | ||||||||
Balance, April 30, 2014 | 10,800 | ||||||||
The following is a summary of a standardized measure of discounted net cash flows related to the Company’s proved oil and natural gas reserves. For these calculations, estimated future cash flows from estimated future production of proved reserves were computed using the arithmetic average of beginning of month prices. Future development and production costs attributable to the proved reserves were estimated assuming that existing conditions would continue over the economic lives of the individual leases and costs were not escalated for the future. Estimated future income tax expenses were calculated by applying future statutory tax rates (based on the current tax law adjusted for permanent differences and tax credits) to the estimated future pretax net cash flows related to proved oil and natural gas reserves, less the tax basis of the properties involved. | |||||||||
The Company cautions against using this data to determine the fair value of its oil and natural gas properties. To obtain the best estimate of the fair value of the oil and natural gas properties, forecasts of future economic conditions, varying discount rates, and consideration of other than proved reserves would have to be incorporated into the calculation. In addition, there are significant uncertainties inherent in estimating quantities of proved reserves and in projection rates of production that impair the usefulness of the data. | |||||||||
The standardized measure of discounted future net cash flows relating to proved oil and natural gas reserves at April 30, 2014 and 2013 are summarized as follows: | |||||||||
2014 | 2013 | ||||||||
Future cash inflows | $ | 30,660 | $ | 19,630 | |||||
Future production costs and taxes | (23,850 | ) | (16,380 | ) | |||||
Future income tax expenses | - | - | |||||||
Future net cash flows | 6,810 | 3,250 | |||||||
10% annual discount for estimated timing of cash flows | (2,890 | ) | (1,130 | ) | |||||
Standardized measure of discounted future net cash flows | $ | 3,920 | $ | 2,120 | |||||
The following are the principal sources of changes in the standardized measure of discounted future net cash flows of the Company for the years ended April 30, 2014 and 2013: | |||||||||
2014 | 2013 | ||||||||
Standardized measure of discounted future net cash flows at beginning of period | $ | 2,120 | $ | 4,671 | |||||
Changes during the period: | |||||||||
Sales of natural gas produced, net of production costs | (736 | ) | (315 | ) | |||||
Revisions of previous quantity estimates | 1,453 | (189 | ) | ||||||
Net changes in prices and production costs | 1,083 | (2,047 | ) | ||||||
Net change | 1,800 | (2,551 | ) | ||||||
Standardized measure of discounted future net cash flows at end of period | $ | 3,920 | $ | 2,120 | |||||
Prices used in computing these calculations of future production of proved reserves were $2.83 and $2.28 per thousand cubic feet (MCF) of natural gas at April 30, 2014 and 2013, respectively. |
Organization_and_Summary_of_Si1
Organization and Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Apr. 30, 2014 | |
Accounting Policies [Abstract] | ' |
Organization | ' |
Organization | |
The consolidated financial statements include the accounts of North American Energy Resources (“NAEY”) and its wholly owned subsidiary North American Exploration, Inc. (“NAE”) (collectively the “Company”). All intercompany balances and transactions have been eliminated in consolidation. | |
NAEY was originally organized in Nevada on August 22, 2006 with the name Mar Ked Mineral Exploration, Inc. (“Mar Ked”). The Company changed its name from Mar Ked to North American Energy Resources, Inc. on August 11, 2008. | |
On July 28, 2008, the Company acquired 100% of the outstanding stock of NAE for 420,000 shares of its common stock pursuant to a Stock Purchase Agreement (“SPA”). Completion of the SPA resulted in the shareholders of NAE having control of NAEY. Accordingly, the transaction was recorded for accounting purposes as the acquisition of NAE by NAEY with NAE as the acquirer (reverse acquisition). The financial statements of the Company prior to July 28, 2008 are those of NAE. Formerly NAEY used a November 30 year-end. The Company will utilize the April 30 year-end of NAE after April 30, 2008. | |
The SPA provided that NAEY was to have $1,500,000 in cash and no liabilities at closing. At closing, NAEY had $150,000 of the required cash and on August 28, 2008, the parties to the SPA entered into a Modification Agreement (“MA”) which provided an extension until January 27, 2009 for the additional cash to be contributed to the Company. At January 27, 2009, the Company had received an additional $50,000 and was still short of the agreed amount by $1,300,000. The MA provided that the Buyer would make contingent issuances of shares to the Seller equal to 95% of all the outstanding stock after issuance. Accordingly, effective April 30, 2009, an additional 13,250,381 shares were issued to the Sellers. Accordingly, the total purchase price for NAE was 13,690,381 shares of common stock. | |
NAE was organized in Nevada on August 18, 2006 as Signature Energy, Inc. and changed its name to North American Exploration, Inc. on June 2, 2008. | |
Going concern | ' |
Going concern | |
The accompanying financial statements are prepared assuming the company will continue as a going concern. As of April 30, 2014, the Company’s current liabilities exceed its current assets by $888,536 and its total liabilities exceed its total assets by $886,627. The company has also incurred net losses since its inception. These factors, among others, raise substantial doubt as to the Company’s ability to continue as a going concern. The consolidated financial statements do not include any adjustments that might result from the outcome of this uncertainty. | |
The Company expects to attempt to raise capital with private placements of common stock or preferred stock and borrow funds as necessary to implement its business plan. | |
Business | ' |
Business | |
NAE is an independent oil and natural gas company engaged in the acquisition, exploration and development of oil and natural gas properties and the production of oil and natural gas. The Company operates in the upstream segment of the oil and gas industry which includes the drilling, completion and operation of oil and gas wells. The Company has an interest in a pipeline in Washington County, Oklahoma which is currently shut-in, but has been used to gather natural gas production. The Company’s gas production in Washington County, Oklahoma was shut-in due to low prices in February 2009 and was sold effective October 1, 2010 along with the Company’s oil production in the area. The Company has acquired an interest in a non-operated gas well in Texas County, Oklahoma and is continuing to seek additional acquisition possibilities. | |
Development Stage | ' |
Development stage | |
We are considered a development stage company because we have had limited resources and do not currently have sufficient capital to complete our business plan, which includes acquiring and operating producing properties with development potential. Accordingly, the operations of the Companies are presented as those of a development stage enterprise, from inception (August 18, 2006). | |
Cash | ' |
Cash | |
The Company maintains cash balances at various financial institutions. Accounts at each institution are insured by the Federal Deposit Insurance Corporation up to $250,000. The Company’s accounts at these institutions may, at times, exceed the federally insured limits. The Company has not experienced any losses in such accounts. | |
Revenue recognition | ' |
Revenue recognition | |
We derive our revenue primarily from the sale of produced crude oil and natural gas. Revenue is recorded in the month the product is delivered to the purchaser. We receive payment from one to three months after delivery. At the end of each month, we estimate the amount of production delivered to purchasers and the price we will receive. Variances between our estimated revenue and actual payment are recorded in the month the payment is received; however, the differences should be insignificant. | |
Property and equipment | ' |
Property and equipment | |
The Company follows the full cost method of accounting for oil and natural gas operations. Under this method all productive and nonproductive costs incurred in connection with the acquisition, exploration and development of oil and natural gas reserves are capitalized. No gains or losses are recognized upon the sale or other disposition of oil and natural gas properties except in transactions that would significantly alter the relationship between capitalized costs and proved reserves. The costs of unevaluated oil and natural gas properties are excluded from the amortizable base until the time that either proven reserves are found or it has determined that such properties are impaired. The Company had no capitalized costs related to unevaluated properties at April 30, 2014 and 2013. As properties are evaluated, the related costs would be transferred to proven oil and natural gas properties using full cost accounting. All capitalized costs were included in the amortization base as of April 30, 2014 and 2013. | |
Under the full cost method the net book value of oil and natural gas properties, less related deferred income taxes, may not exceed the estimated after-tax future net revenues from proved oil and natural gas properties, discounted at 10% (the “Ceiling Limitation”). In arriving at estimated future net revenues, estimated lease operating expenses, development costs, and certain production-related taxes are deducted. In calculating future net revenues, revenues are based on the arithmetic average of beginning of month prices for both years. Costs in effect at the time of the calculation for both years are held constant indefinitely, except for changes that are fixed and determinable by existing contracts. The net book value is compared to the ceiling limitation on a quarterly and yearly basis. The excess, if any, of the net book value above the ceiling limitation is charged to expense in the period in which it occurs and is not subsequently reinstated. Reserve estimates used in determining estimated future net revenues have been prepared by an independent engineer for 2014 and 2013. The Company has not recorded an impairment in 2014 or 2013. | |
Other property and equipment consists principally of the Company’s interest in a pipeline. Other property and equipment and related accumulated amortization and depreciation are relieved upon retirement or sale and the gain or loss is included in operations. Renewals and replacements that extend the useful life of property and equipment are treated as capital additions. The pipeline was written off at the end of 2010 and an asset impairment charge of $132,663 was recorded. | |
The Company assesses the recoverability of the carrying value of its non-oil and gas long-lived assets when events occur that indicate an impairment in value may exist. An impairment loss is indicated if the sum of the expected undiscounted future net cash flows is less than the carrying amount of the assets. If this occurs, an impairment loss is recognized for the amount by which the carrying amount of the assets exceeds the estimated fair value of the asset. | |
Depreciation and amortization | ' |
Depreciation and amortization | |
All capitalized costs of oil and natural gas properties and equipment, including the estimated future costs to develop proved reserves, are amortized using the unit-of-production method based on total proved reserves. Depreciation of other equipment is computed on the straight-line method over the estimated useful lives of the assets, which range from three to twenty-five years. | |
Natural gas sales and gas imbalances | ' |
Natural gas sales and gas imbalances | |
The Company follows the entitlement method of accounting for natural gas sales, recognizing as revenues only its net interest share of all production sold. Any amount attributable to the sale of production in excess of or less than the Company’s net interest is recorded as a gas balancing asset or liability. At April 30, 2014 and 2013, there were no natural gas imbalances. | |
Credit and market risk | ' |
Credit and market risk | |
The Company sells oil and natural gas to one customer and participates with other parties in the drilling, completion and operation of oil and natural gas wells. Joint interest and oil and natural gas sales receivables related to these operations are generally unsecured. The Company provides an allowance for doubtful accounts for certain joint interest owners’ receivable balances when the Company believes the recoverable balance may not be collected. The Company has the right of offset of the joint interest owners’ share of oil and natural gas production against amounts owed by the joint interest owners. Accounts receivable are presented net of the related allowance for doubtful accounts. At April 30, 2014 and 2013, the Company’s accounts receivable balance was solely for its share of gas production. | |
In 2014 and 2013, the Company did not have cash deposits in its bank that exceeded the maximum insured by the Federal Deposit Insurance Corporation. The Company monitors the financial condition of its banks and has experienced no losses on these accounts. | |
Oil and natural gas reserve estimates | ' |
Oil and natural gas reserve estimates | |
The Company engaged an independent consultant to prepare its oil and natural gas reserves in 2014 and 2013. Proved reserves, estimated future net revenues and the present value of our reserves are estimated based upon a combination of historical data and estimates of future activity. Consistent with SEC requirements, we have based our revenue projections on the arithmetic average of beginning of the month historical prices in 2014 and 2013. The reserve estimates are used in calculating depletion, depreciation and amortization and in the assessment of the Company’s Ceiling Limitation. Significant assumptions are required in the valuation of proved oil and natural gas reserves which, as described herein, may affect the amount at which oil and natural gas properties are recorded. Actual results could differ materially from these estimates. | |
Income taxes | ' |
Income taxes | |
Provisions for income taxes are based on taxes payable or refundable for the current year and deferred taxes. Deferred taxes are provided on differences between the tax bases of assets and liabilities and their reported amounts in the financial statements, and tax carry forwards. Deferred tax assets and liabilities are included in the financial statements at currently enacted income tax rates applicable to the period in which the deferred tax assets and liabilities are expected to be realized or settled. As changes in tax laws or rates are enacted, deferred tax assets and liabilities are adjusted through the provision for income taxes. | |
At April 30, 2014 and 2013, the Company had no accrued interest or penalties relating to any tax obligations. The Company currently has no federal or state examinations in progress, nor has it had any federal or state examinations since its inception. The last three years of the Company’s tax years are subject to federal and state tax examination. | |
In assessing the realization of the deferred tax assets, management considers whether it is more likely than not that some portion of the deferred tax assets will be realized. The ultimate realization of the deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible. Management considers the projected future taxable income and tax planning strategies in making this assessment. Based on this assessment, management has established a full valuation allowance against all of the deferred tax assets relating to the NOLs for every period because it is more likely than not that all of the deferred tax assets will not be realized. | |
Earnings (loss) per common share | ' |
Earnings (loss) per common share | |
The Company is required to report both basic earnings per share, which is based on the weighted-average number of common shares outstanding, and diluted earnings per share, which is based on the weighted-average number of common shares outstanding plus all potential dilutive shares outstanding. At April 30, 2014 and 2013, there are warrants outstanding that could be converted into 30,500,000 shares of our common stock. At April 30, 2014 and 2013, there were no potentially dilutive common stock equivalents. Accordingly, basic and diluted earnings (loss) per share are the same for each of the periods presented. | |
Estimates | ' |
Estimates | |
The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. | |
Fair value of financial instruments | ' |
Fair value of financial instruments | |
Financial instruments consist of accounts payable, accrued expenses and short-term borrowings. The carrying amount of these financial instruments approximates fair value due to their short-term nature or the current rates at which the Company could borrow funds with similar remaining maturities. | |
Stock option plans | ' |
Stock option plans | |
The compensation cost relating to share-based payment transactions (including the cost of all employee stock options) is required to be recognized in the financial statements. That cost will be measured based on the estimated fair value of the equity or liability instruments issued. The accounting literature covers a wide range of share-based compensation arrangements including share options, restricted share plans, performance-based awards, share appreciation rights, and employee share purchase plans. | |
The Black-Scholes option valuation model was developed for use in estimating the fair value of traded options that have no vesting restrictions and are fully transferable. In addition, option valuation models require the input of highly subjective assumptions including the expected stock price volatility. Because the Company’s options have characteristics significantly different from those of traded options, and because changes in the subjective input assumptions can materially affect the fair value estimate, in management’s opinion, the existing models may not necessarily provide a reliable single measure of the fair value of its options. However, the Black-Scholes option valuation model provides the best available estimate for this purpose. | |
The North American Energy Resources, Inc. 2008 Stock Option plan was filed on September 11, 2008 and terminated on July 23, 2013. | |
Contingencies | ' |
Contingencies | |
Certain conditions may exist as of the date financial statements are issued, which may result in a loss to the Company, but which will only be resolved when one or more future events occur or fail to occur. Company management and its legal counsel assess such contingencies related to legal proceedings that are pending against the Company or unasserted claims that may result in such proceedings, the Company’s legal counsel evaluates the perceived merits of any legal proceedings or unasserted claims as well as the perceived merits of the amount of relief sought or expected to be sought therein. If the assessment of a contingency indicates that it is probable that a liability has been incurred and the amount of the liability can be estimated, then the estimated liability would be accrued in the Company’s consolidated financial statements. If the assessment indicates that a potential material loss contingency is not probable but is reasonably possible, or if probable but cannot be estimated, then the nature of the contingent liability, together with an estimate of the range of possible loss if determinable would be disclosed. | |
Asset retirement obligations | ' |
Asset retirement obligations | |
The fair value of a liability for an asset retirement obligation is required to be recognized in the period in which it is incurred if a reasonable estimate of fair value can be made, and that the associated retirement costs be capitalized as part of the carrying amount of the long-lived asset. The Company determines its asset retirement obligation by calculating the present value of the estimated cash flows related to the liability. Periodic accretion of the discount of the estimated liability would be recorded in the statement of operations. At April 30, 2014 and 2013 the Company has estimated that its share of the cost of plugging and abandoning its producing properties was $508 and $460, respectively. | |
Impairment of oil and gas properties | ' |
Impairment of oil and gas properties | |
Producing properties and significant unproved properties are assessed annually, or more frequently as economic events dictate, for potential impairment. Any impairment loss is the difference between the carrying value of the asset and its fair value. Fair value is calculated as the present value of estimated expected future cash flows from proved, probable and, as appropriate, possible reserves. | |
Recent accounting pronouncements | ' |
Recent accounting pronouncements | |
There are several new accounting pronouncements issued by the Financial Accounting Standards Board (“FASB”) which are not yet effective. Each of these pronouncements, as applicable, has been or will be adopted by the Company. As of June 30, 2014, none of these pronouncements is expected to have a material effect on the financial position, results of operations or cash flows of the Company. |
Accounts_and_Note_Receivable_T
Accounts and Note Receivable (Tables) | 12 Months Ended | ||||||||
Apr. 30, 2014 | |||||||||
Receivables [Abstract] | ' | ||||||||
Schedule of Accounts Receivable | ' | ||||||||
Accounts receivable at April 30, 2014 and 2013 include the following: | |||||||||
2014 | 2013 | ||||||||
Natural gas sales, net | $ | 367 | $ | 244 | |||||
Note receivable | 5,000 | 5,000 | |||||||
Allowance for doubtful accounts | (5,000 | ) | (5,000 | ) | |||||
$ | 367 | $ | 244 |
Related_Party_Transactions_Tab
Related Party Transactions (Tables) | 12 Months Ended | ||||||||
Apr. 30, 2014 | |||||||||
Related Party Transactions [Abstract] | ' | ||||||||
Schedule of Expense Reimbursements | ' | ||||||||
At April 30, 2014 and 2013, the Company owes its CEO and its CFO the following amounts for expense reimbursements. | |||||||||
2014 | 2013 | ||||||||
Chief executive officer | $ | 7,155 | $ | - | |||||
Chief financial officer | 22,888 | 20,257 | |||||||
$ | 30,043 | $ | 20,257 | ||||||
Schedule of Accrued Expenses | ' | ||||||||
Accrued expenses include the following: | |||||||||
2014 | 2013 | ||||||||
Accrued compensation due officers | $ | 208,750 | $ | 208,750 | |||||
Accrued interest due CEO | 86,616 | 47,534 | |||||||
Amount due related parties | 295,366 | 256,284 | |||||||
Accrued interest - other | 5,119 | 3,572 | |||||||
Asset retirement obligation | 508 | 460 | |||||||
$ | 300,993 | $ | 260,316 | ||||||
Schedule of convertible note payable-officer | ' | ||||||||
April 30, | |||||||||
2014 | 2013 | ||||||||
Principal balance | $ | 500,000 | $ | 464,992 | |||||
Accrued interest | 86,616 | 47,534 | |||||||
$ | 586,616 | $ | 512,526 |
Income_Taxes_Tables
Income Taxes (Tables) | 12 Months Ended | ||||||||
Apr. 30, 2014 | |||||||||
Income Tax Disclosure [Abstract] | ' | ||||||||
Schedule of Components of Income Tax Expense (Benefit) | ' | ||||||||
Actual income tax benefit applicable to net loss before income taxes is reconciled with the “normally expected” federal income tax as follows: | |||||||||
2014 | 2013 | ||||||||
“Normally expected” income tax benefit | $ | (18,900 | ) | $ | (21,200 | ) | |||
State income taxes net of federal income tax benefit | (2,200 | ) | (2,500 | ) | |||||
Other | 200 | 100 | |||||||
Valuation allowance | 20,900 | 23,600 | |||||||
Total | $ | - | $ | - | |||||
Schedule of Deferred Tax Assets and Liabilities | ' | ||||||||
Significant components of the Company’s deferred tax assets and liabilities are as follows: | |||||||||
2014 | 2013 | ||||||||
Net operating loss carryforward | $ | 1,105,200 | $ | 1,096,400 | |||||
Accrued compensation and accrued interest | 113,900 | 98,500 | |||||||
Depreciable/depletable property, plant and equipment | 44,400 | 47,700 | |||||||
Bad debts | 1,900 | 1,900 | |||||||
Valuation allowance | (1,265,400 | ) | (1,244,500 | ) | |||||
Total | $ | - | $ | - |
Supplementary_Oil_and_Gas_Rese1
Supplementary Oil and Gas Reserve Information (Tables) | 12 Months Ended | ||||||||
Apr. 30, 2014 | |||||||||
Extractive Industries [Abstract] | ' | ||||||||
Schedule of Capitalized Costs Relating to Oil and Gas Producing Activities Disclosure | ' | ||||||||
Capitalized costs relating to oil and natural gas producing activities and related accumulated depreciation and amortization at April 30, 2014 and 2013 are summarized as follows: | |||||||||
2014 | 2013 | ||||||||
Proved oil and natural gas properties under full cost | $ | 2,358 | $ | 2,358 | |||||
Accumulated depreciation and amortization | (449 | ) | (290 | ) | |||||
$ | 1,909 | $ | 2,068 | ||||||
Schedule of Operations for Oil and Gas Producing Activities Disclosure | ' | ||||||||
Net quantities of proved and proved developed reserves of oil and natural gas are summarized as follows: | |||||||||
Gas (MCF) | |||||||||
Balance, April 30, 2012 | 12,679 | ||||||||
Production | (671 | ) | |||||||
Revisions of estimates | (3,398 | ) | |||||||
Balance, April 30, 2013 | 8,610 | ||||||||
Production | (658 | ) | |||||||
Revisions of estimates | 2,848 | ||||||||
Balance, April 30, 2014 | 10,800 | ||||||||
Schedule of Reserved Oil and Natural Gas | ' | ||||||||
The standardized measure of discounted future net cash flows relating to proved oil and natural gas reserves at April 30, 2014 and 2013 are summarized as follows: | |||||||||
2014 | 2013 | ||||||||
Future cash inflows | $ | 30,660 | $ | 19,630 | |||||
Future production costs and taxes | (23,850 | ) | (16,380 | ) | |||||
Future income tax expenses | - | - | |||||||
Future net cash flows | 6,810 | 3,250 | |||||||
10% annual discount for estimated timing of cash flows | (2,890 | ) | (1,130 | ) | |||||
Standardized measure of discounted future net cash flows | $ | 3,920 | $ | 2,120 | |||||
Schedule of Changes in Standardized Measure of Discounted Future Net Cash Flows | ' | ||||||||
The following are the principal sources of changes in the standardized measure of discounted future net cash flows of the Company for the years ended April 30, 2014 and 2013: | |||||||||
2014 | 2013 | ||||||||
Standardized measure of discounted future net cash flows at beginning of period | $ | 2,120 | $ | 4,671 | |||||
Changes during the period: | |||||||||
Sales of natural gas produced, net of production costs | (736 | ) | (315 | ) | |||||
Revisions of previous quantity estimates | 1,453 | (189 | ) | ||||||
Net changes in prices and production costs | 1,083 | (2,047 | ) | ||||||
Net change | 1,800 | (2,551 | ) | ||||||
Standardized measure of discounted future net cash flows at end of period | $ | 3,920 | $ | 2,120 |
Organization_and_Summary_of_Si2
Organization and Summary of Significant Accounting Policies (Details Narrative) (USD $) | 0 Months Ended | 12 Months Ended | 12 Months Ended | 0 Months Ended | |||||
Dec. 31, 2010 | Jan. 27, 2009 | Apr. 30, 2014 | Apr. 30, 2013 | Aug. 28, 2008 | Dec. 31, 2013 | Dec. 31, 2013 | Apr. 30, 2009 | Jul. 28, 2008 | |
Minimum [Member] | Maximum [Member] | North American Exploration, Inc [Member] | North American Exploration, Inc [Member] | ||||||
Business acquisition, percentage | ' | ' | ' | ' | ' | ' | ' | ' | 100.00% |
Number of shares issued for acquisition | ' | ' | ' | ' | ' | ' | ' | 13,690,381 | 420,000 |
Cash in hand | ' | $1,300,000 | $1,500,000 | ' | $150,000 | ' | ' | ' | ' |
Additional cash received during the period | ' | 50,000 | ' | ' | ' | ' | ' | ' | ' |
Percentage of outstanding stock after issuance | ' | 95.00% | ' | ' | ' | ' | ' | ' | ' |
Additional shares issued for acquisition during the period | ' | ' | ' | ' | ' | ' | ' | 13,250,381 | ' |
Value of current liabilities exceed its current assets | ' | ' | 888,536 | ' | ' | ' | ' | ' | ' |
Value of total liabilities exceed its total assets | ' | ' | 886,627 | ' | ' | ' | ' | ' | ' |
Cash deposited by Federal Deposit Insurance Corporation | ' | ' | 250,000 | ' | ' | ' | ' | ' | ' |
Discounted percentage for oil and natural gas properties | ' | ' | 10.00% | ' | ' | ' | ' | ' | ' |
Asset impairment charge | 132,663 | ' | 508 | 460 | ' | ' | ' | ' | ' |
Estimated useful of equipment | ' | ' | ' | ' | ' | '3 years | '25 years | ' | ' |
Natural gas imbalances | ' | ' | 0 | 0 | ' | ' | ' | ' | ' |
Warrants converted into common stock | ' | ' | 30,500,000 | 30,500,000 | ' | ' | ' | ' | ' |
Potentially dilutive common stock | ' | ' | $0 | $0 | ' | ' | ' | ' | ' |
Accounts_and_Note_Receivable_D
Accounts and Note Receivable (Details Narrative) (USD $) | Apr. 30, 2014 | Apr. 30, 2013 |
Receivables [Abstract] | ' | ' |
Note receivable | $5,000 | $5,000 |
Activity in note receivable | $0 | ' |
Accounts_and_Note_Receivable_S
Accounts and Note Receivable - Schedule of Accounts Receivable (Details) (USD $) | Apr. 30, 2014 | Apr. 30, 2013 |
Receivables [Abstract] | ' | ' |
Natural gas sales, net | $367 | $244 |
Note receivable | 5,000 | 5,000 |
Allowance for doubtful accounts | -5,000 | -5,000 |
Accounts receivable | $367 | $244 |
Related_Party_Transactions_Det
Related Party Transactions (Details Narrative) (USD $) | 0 Months Ended | 12 Months Ended | 92 Months Ended | 0 Months Ended | 0 Months Ended | 0 Months Ended | |||||
Nov. 03, 2011 | Apr. 30, 2014 | Apr. 30, 2013 | Apr. 30, 2014 | Nov. 04, 2011 | Nov. 03, 2011 | Jun. 15, 2011 | Nov. 04, 2011 | Jun. 15, 2011 | Nov. 11, 2011 | Nov. 10, 2011 | |
Mr. Coldren [Member} | Mr. Coldren [Member} | Mr. Coldren [Member} | Mr. Massara [Member] | Mr. Massara [Member] | Larry D Hall [Member] | Larry D Hall [Member] | |||||
Warrant [Member] | Warrant [Member] | ||||||||||
Accrued expenses related compensation | ' | ' | ' | ' | ' | ' | $10,000 | ' | $10,000 | ' | ' |
Compensation rate increased | ' | ' | ' | ' | 20,833 | ' | ' | 18,750 | ' | ' | ' |
Proceeds from bridge loan | 500,000 | ' | ' | 48,750 | ' | ' | ' | ' | ' | ' | ' |
Interest rate of notes | ' | ' | ' | ' | ' | 8.00% | ' | ' | ' | ' | ' |
Convertible notes payable | $500,000 | $38,678 | ' | $38,678 | ' | ' | ' | ' | ' | ' | ' |
Convertible note term | ' | '1 year | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Percentage of volume-weighted average price of the common stock | ' | 130.00% | ' | 130.00% | ' | ' | ' | ' | ' | ' | ' |
Convertible note payable - officer, maturity date | ' | 30-Jun-14 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Acquisition of stock | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $0.18 |
Acquisition of shares | ' | ' | ' | ' | ' | ' | ' | ' | ' | 500,000 | ' |
Schedule_of_Expense_Reimbursem
Schedule of Expense Reimbursements (Details) (USD $) | Apr. 30, 2014 | Apr. 30, 2013 |
Related parties | $30,043 | $20,257 |
Chief financial officer [Member] | ' | ' |
Related parties | 22,888 | 20,257 |
Chief executive officer [Member] | ' | ' |
Related parties | $7,155 | ' |
Related_Party_Transactions_Sch
Related Party Transactions - Schedule of Accrued Expenses (Details) (USD $) | Apr. 30, 2014 | Apr. 30, 2013 |
Related Party Transactions [Abstract] | ' | ' |
Accrued compensation due officers | $208,750 | $208,750 |
Accrued interest due CEO | 86,616 | 47,534 |
Amount due related parties | 295,366 | 256,284 |
Accrued interest - other | 5,119 | 3,572 |
Asset retirement obligation | 508 | 460 |
Accrued expenses | $300,993 | $260,316 |
Related_Party_Transactions_Sch1
Related Party Transactions - Schedule of Note Payable Officer (Details) (USD $) | Apr. 30, 2014 | Apr. 30, 2013 |
Related Party Transactions - Schedule Of Note Payable Officer Details | ' | ' |
Principal balance | $500,000 | $464,992 |
Accrued interest | 86,616 | 47,534 |
Convertible note payable officer, Total | $586,616 | $512,526 |
Convertible_Notes_Payable_Deta
Convertible Notes Payable (Details Narrative) (USD $) | 12 Months Ended | |
Apr. 30, 2014 | Apr. 30, 2013 | |
Debt Disclosure [Abstract] | ' | ' |
Convertible note payable | $38,678 | $38,678 |
Interest rate | 4.00% | 4.00% |
Convertible note payable, maturity date | 30-Jun-14 | 30-Jun-14 |
Conversion price | $0.02 | $0.02 |
Stockholders_Equity_Details_Na
Stockholder's Equity (Details Narrative) (USD $) | 12 Months Ended | 0 Months Ended | 12 Months Ended | 0 Months Ended | |||||||
Apr. 30, 2014 | Apr. 30, 2013 | Sep. 11, 2008 | Apr. 30, 2014 | Apr. 30, 2014 | Apr. 30, 2014 | Apr. 30, 2014 | Apr. 30, 2014 | Apr. 30, 2014 | Nov. 10, 2011 | Nov. 10, 2013 | |
2008 Stock Option Plan [Member] | Certificate One [Member] | Certificate Two [Member] | Certificate Three [Member] | Certificate One [Member] | Certificate Two [Member] | Certificate Three [Member] | Larry D. Hall [Member] | Larry D. Hall [Member] | |||
Warrant [Member] | Warrant [Member] | ||||||||||
Preferred stock, shares authorized | 100,000,000 | 100,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Preferred stock, par value | $0.00 | $0.00 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Preferred stock, shares issued | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Preferred stock, shares outstanding | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Common stock, shares authorized | 100,000,000 | 100,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Common stock, par value | $0.00 | $0.00 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Common stock, shares issued | 21,554,945 | 21,554,945 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Common stock, shares outstanding | 21,554,945 | 21,554,945 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of warrants issued | ' | ' | ' | 10,000,000 | 10,000,000 | 10,000,000 | ' | ' | ' | ' | ' |
Warrants, strike price | ' | ' | ' | $0.03 | $0.04 | $0.06 | ' | ' | ' | ' | ' |
Warrants expiration term | ' | ' | ' | ' | ' | ' | '1 year | '5 years | '5 years | ' | ' |
Required revenue amount to vest all issued warrants | $12,500,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Acquisition of shares | ' | ' | ' | ' | ' | ' | ' | ' | ' | 500,000 | ' |
Number of stock options reserved | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0.18 |
Stock option plan reserved | ' | ' | 2,500,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Stock option plan termination period | ' | ' | 23-Jul-13 | ' | ' | ' | ' | ' | ' | ' | ' |
Stock option shares granted | ' | 1,242,333 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Income_Taxes_Details_Narrative
Income Taxes (Details Narrative) (USD $) | 12 Months Ended |
Apr. 30, 2014 | |
Net operating loss carryforwards | 3,327,000 |
Minimum [Member] | ' |
Operating loss carryforwards, expiration date | '2027 |
Maximum [Member] | ' |
Operating loss carryforwards, expiration date | '2034 |
Income_Taxes_Schedule_of_Compo
Income Taxes - Schedule of Components of Income Tax Expense (Benefit) (Details) (USD $) | 12 Months Ended | |
Apr. 30, 2014 | Apr. 30, 2013 | |
Income Tax Disclosure [Abstract] | ' | ' |
"Normally expected" income tax benefit | ($18,900) | ($21,200) |
State income taxes net of federal income tax benefit | -2,200 | -2,500 |
Other | 200 | 100 |
Valuation allowance | 20,900 | 23,600 |
Total | ' | ' |
Income_Taxes_Schedule_of_Defer
Income Taxes - Schedule of Deferred Tax Assets and Liabilities (Details) (USD $) | Apr. 30, 2014 | Apr. 30, 2013 |
Income Tax Disclosure [Abstract] | ' | ' |
Net operating loss carryforward | $1,105,200 | $1,096,400 |
Accrued compensation and accrued interest | 113,900 | 98,500 |
Depreciable/depletable property, plant and equipment | 44,400 | 47,700 |
Bad debts | 1,900 | 1,900 |
Valuation allowance | -1,265,400 | -1,244,500 |
Total | ' | ' |
Subsequent_Events_Details_Narr
Subsequent Events (Details Narrative) (USD $) | 12 Months Ended | 0 Months Ended | |||
Apr. 30, 2014 | Apr. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | |
Subsequent Event [Member] | Subsequent Event [Member] | Subsequent Event [Member] | |||
Convertible Debt [Member] | CEO [Member] | ||||
Convertible notes maturity date | 30-Jun-14 | ' | 30-Apr-15 | ' | ' |
Notes converted to common stock | $0.02 | $0.02 | $0.02 | ' | ' |
Convertible notes bears interest rate | ' | ' | 4.00% | ' | ' |
Convertible notes payable | $38,678 | $38,678 | $38,678 | ' | $500,000 |
Accounts payable trade | ' | ' | ' | 17,100 | ' |
Accounts payable related parties | ' | ' | ' | $30,043 | ' |
Supplementary_Oil_and_Gas_Rese2
Supplementary Oil and Gas Reserve Information (Details Narrative) (USD $) | Apr. 30, 2014 | Apr. 30, 2013 |
Mcf | Mcf | |
Extractive Industries [Abstract] | ' | ' |
Proved reserve for future production, per thousand cubic feet (MCF) | 2.83 | 2.28 |
Costs incurred in oil and natural gas | $0 | $0 |
Supplementary_Oil_and_Gas_Rese3
Supplementary Oil and Gas Reserve Information - Schedule of Capitalized Costs Relating to Oil and Gas Producing Activities Disclosure (Details) (USD $) | Apr. 30, 2014 | Apr. 30, 2013 |
Extractive Industries [Abstract] | ' | ' |
Proved oil and natural gas properties under full cost | $2,358 | $2,358 |
Accumulated depreciation and amortization | -449 | -290 |
Capitalized Costs, Oil and Gas Producing Activities, Net | $1,909 | $2,068 |
Supplementary_Oil_and_Gas_Rese4
Supplementary Oil and Gas Reserve Information (Unaudited) - Summary of Proved and Proved Developed Reserves of Oil and Natural Gas (Details) | 12 Months Ended | |
Apr. 30, 2014 | Apr. 30, 2013 | |
Mcf | Mcf | |
Extractive Industries [Abstract] | ' | ' |
Balance at the beginning | 8,610 | 12,679 |
Production | -658 | -671 |
Revisions of estimates | 2,848 | -3,398 |
Balance at the end | 10,800 | 8,610 |
Supplementary_Oil_and_Gas_Rese5
Supplementary Oil and Gas Reserve Information - Schedule of Reserved Oil and Natural Gas (Details) (USD $) | 12 Months Ended | |
Apr. 30, 2014 | Apr. 30, 2013 | |
Extractive Industries [Abstract] | ' | ' |
Future cash inflows | $30,660 | $19,630 |
Future production costs and taxes | -23,850 | -16,380 |
Future income tax expenses | ' | ' |
Future net cash flows | 6,810 | 3,250 |
10% annual discount for estimated timing of cash flows | -2,890 | -1,130 |
Standardized measure of discounted future net cash flows | $3,920 | $2,120 |
Percentage of annual discount for estimated timing of cash flows | 10.00% | 10.00% |
Supplementary_Oil_and_Gas_Rese6
Supplementary Oil and Gas Reserve Information - Schedule of Changes in Standardized Measure of Discounted Future Net Cash Flows (Details) (USD $) | 12 Months Ended | |
Apr. 30, 2014 | Apr. 30, 2013 | |
Extractive Industries [Abstract] | ' | ' |
Standardized measure of discounted future net cash flows at beginning of period | $2,120 | $4,671 |
Sales of natural gas produced, net of production costs | -736 | -315 |
Revisions of previous quantity estimates | 1,453 | -189 |
Net changes in prices and production costs | 1,083 | -2,047 |
Net change | 1,800 | -2,551 |
Standardized measure of discounted future net cash flows at end of period | $3,920 | $2,120 |