Document_and_Entity_Informatio
Document and Entity Information | 3 Months Ended | |
Nov. 30, 2013 | Jan. 13, 2014 | |
Document And Entity Information [Abstract] | ' | ' |
Document Type | '10-Q | ' |
Amendment Flag | 'false | ' |
Document Period End Date | 30-Nov-13 | ' |
Entity Registrant Name | 'SARA CREEK GOLD CORP. | ' |
Entity Central Index Key | '0001415286 | ' |
Current Fiscal Year End Date | '--08-31 | ' |
Document Fiscal Year Focus | '2014 | ' |
Document Fiscal Period Focus | 'Q1 | ' |
Entity Filer Category | 'Smaller Reporting Company | ' |
Entity Common Stock, Shares Outstanding | ' | 32,561,983 |
CONDENSED_CONSOLIDATED_BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS (USD $) | Nov. 30, 2013 | Aug. 31, 2013 |
Current assets | ' | ' |
Cash | $18,793 | $8,298 |
Accounts receivable | 21,780 | 18,755 |
Inventory | 3,637 | 7,064 |
Prepaid expenses | 363 | 2,658 |
Total current assets | 44,573 | 36,775 |
Fixed assets: | ' | ' |
Machinery and equipment, net of accumulated depreciation of $16,191 and $15,179, respectively | 12,144 | 13,156 |
Other assets: | ' | ' |
Capitalized oil and gas properties, net of accumulated depletion of $64,760 and $59,878, respectively | 319,208 | 297,590 |
Deposits | 5,000 | ' |
Total assets | 380,925 | 347,521 |
Current liabilities: | ' | ' |
Accounts payable and accrued expenses | 139,178 | 31,018 |
Net profits interest payable, current portion | 12,414 | 12,109 |
Total current liabilities | 151,592 | 43,127 |
Long term liabilities: | ' | ' |
Loans payable to related parties | 90,205 | 89,833 |
Asset retirement obligations | 105,494 | 103,299 |
Net profits interest payable, long term portion | 109,267 | 112,488 |
Total long term liabilities | 304,966 | 305,620 |
Total liabilities | 456,558 | 348,747 |
Stockholders' deficit: | ' | ' |
Common stock; $0.001 par value; 750,000,000 shares authorized, 25,961,985 shares issued and outstanding | 25,962 | ' |
Common stock payable | 2,000 | ' |
Additional paid in capital | 323,664 | 350,000 |
Accumulated deficit | -427,259 | -351,226 |
Total stockholders' deficit | -75,633 | -1,226 |
Total liabilities and stockholders' deficit | $380,925 | $347,521 |
CONDENSED_CONSOLIDATED_BALANCE1
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $) | Nov. 30, 2013 | Aug. 31, 2013 |
CONDENSED CONSOLIDATED BALANCE SHEETS [Abstract] | ' | ' |
Accumulated depreciation of machinery and equipment | $16,191 | $15,179 |
Capitalized oil and gas properties accumulated depletion | $64,760 | $59,878 |
Common stock, par value per share | $0.00 | $0.00 |
Common stock, shares authorized | 750,000,000 | 750,000,000 |
Common stock, shares issued | 25,961,985 | 0 |
Common stock, shares outstanding | 25,961,985 | 0 |
CONDENSED_CONSOLIDATED_STATEME
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (USD $) | 3 Months Ended | |
Nov. 30, 2013 | Nov. 30, 2012 | |
Revenue: | ' | ' |
Oil revenues | $25,764 | $23,425 |
Expenses: | ' | ' |
Direct operating costs | 12,972 | 12,294 |
Depletion, depreciation and amortization | 8,110 | 7,557 |
Professional fees | 71,071 | 1,117 |
General and administrative expenses | 6,231 | 794 |
Total expenses | 98,384 | 21,762 |
Net operating (loss) income | -72,620 | 1,663 |
Other expense: | ' | ' |
Interest expense | 3,413 | 3,319 |
Total other expense | 3,413 | 3,319 |
Loss before income taxes | -76,033 | -1,656 |
Provision for income taxes | ' | ' |
Net loss | ($76,033) | ($1,656) |
Net loss per common share - basic and diluted | ' | ' |
Weighted average common shares outstanding - basic and diluted | 17,654,293 | 5,264,862 |
CONDENSED_CONSOLIDATED_STATEME1
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) | 3 Months Ended | |
Nov. 30, 2013 | Nov. 30, 2012 | |
Cash flows from operating activities: | ' | ' |
Net loss | ($76,033) | ($1,656) |
Depletion, depreciation and amortization | 5,915 | 5,534 |
Accretion of asset retirement obligation | 2,195 | 2,023 |
Accretion of net profits interest liability | 3,041 | 3,319 |
Adjustments to reconcile net loss to net cash used in operating activities: | ' | ' |
Accounts receivable | -1,493 | -3,352 |
Inventory | 3,427 | 4,279 |
Prepaid expenses | 2,295 | 919 |
Accounts payable and accrued expenses | 71,101 | -3,096 |
Net cash used by operating activities | 10,448 | 7,970 |
Cash flows from investing activities: | ' | ' |
Cash acquired in acquisition | 6,004 | ' |
Net cash used by investing activities | 6,004 | ' |
Cash flows from financing activities: | ' | ' |
Payments on net profits interest agreement | -5,957 | -6,040 |
Net cash provided by (used in) financing activities | -5,957 | -6,040 |
Net change in cash | 10,495 | 1,930 |
Cash, beginning | 8,298 | 7,822 |
Cash, end | 18,793 | 9,752 |
Supplemental disclosure of cash flow information: | ' | ' |
Interest paid | $3,041 | $3,319 |
CONDENSED_STATEMENT_OF_STOCKHO
CONDENSED STATEMENT OF STOCKHOLDERS' (DEFICIT) (USD $) | Total | Common Stock [Member] | Common Stock Payable [Member] | Additional Paid-in Capital [Member] | Accumulated (Deficit) [Member] |
Balance at Aug. 31, 2012 | $40,765 | ' | ' | $350,000 | ($309,235) |
Balance, shares at Aug. 31, 2012 | ' | ' | ' | ' | ' |
Net loss | -41,991 | ' | ' | ' | -41,991 |
Balance at Aug. 31, 2013 | -1,226 | ' | ' | 350,000 | -351,226 |
Balance, shares at Aug. 31, 2013 | 0 | ' | ' | ' | ' |
Recapitalization on completion of acquisition of SCNRG | 1,626 | 25,962 | 2,000 | -26,336 | ' |
Recapitalization on completion of acquisition of SCNRG, shares | ' | 25,961,985 | 2,000,000 | ' | ' |
Net loss | -76,033 | ' | ' | ' | -76,033 |
Balance at Nov. 30, 2013 | ($75,633) | $25,962 | $2,000 | $323,664 | ($427,259) |
Balance, shares at Nov. 30, 2013 | 25,961,985 | 25,961,985 | 2,000,000 | ' | ' |
DESCRIPTION_OF_BUSINESS
DESCRIPTION OF BUSINESS | 3 Months Ended |
Nov. 30, 2013 | |
DESCRIPTION OF BUSINESS [Abstract] | ' |
DESCRIPTION OF BUSINESS | ' |
1. DESCRIPTION OF BUSINESS | |
Sara Creek Gold Corp. ("we", "our", "us", "SCGC" or "the Company") was incorporated under the laws of the State of Nevada on June 12, 2006, under the name of Uventus Technologies Corp. On September 23, 2009, we merged with our wholly owned subsidiary and changed our name to Sara Creek Gold Corp. | |
On October 25, 2013, we closed on the Agreement and Plan of Reorganization with SCNRG, LLC ("SCNRG"), a California limited liability company, whereby we acquired 100% of the membership interest in SCNRG, resulting in SCNRG becoming a wholly-owned subsidiary of SCGC, in exchange for 14.0 million shares of our common stock issued to the members of SCNRG. For accounting purposes, the acquisition of SCNRG by SCGC has been accounted for as a recapitalization of SCGC. Accordingly, SCNRG is considered the acquirer for accounting purposes and thus, the historical financial statements are SCNRG's, consolidated with SCGC's beginning October 25, 2013. As a result of this transaction, SCGC changed its business direction and is now in the oil and gas industry. |
SUMMARY_OF_SIGNIFICANT_ACCOUNT
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 3 Months Ended |
Nov. 30, 2013 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES [Abstract] | ' |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ' |
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
Basis of Presentation | |
The accompanying unaudited interim financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America ("GAAP") and the rules and regulations of the United States Securities and Exchange Commission ("SEC") for interim financial information. | |
The unaudited interim financial statements should be read in conjunction with the Company's Annual Report on Form 10-K filed with the SEC on November 29, 2013, which contains the audited financial statements and notes thereto for the year ended August 31, 2013 for SCGC. Additionally, the Company's Amendment No. 1 to Current Report on Form 8-K/A filed with the SEC on December 24, 2013, contains the audited financial statements and notes thereto for the years ended August 31, 2013 and 2012 for SCNRG. | |
Certain information or footnote disclosures normally included in financial statements prepared in accordance with GAAP have been omitted, pursuant to the rules and regulations of the SEC for interim financial reporting. Accordingly, they do not include all the information and footnotes necessary for a comprehensive presentation of financial position, results of operations, or cash flows. It is management's opinion, however, that all material adjustments (consisting of normal recurring adjustments) have been made which are necessary for a fair financial statement presentation. The interim results for the three months ended November 30, 2013 are not necessarily indicative of results for the full fiscal year. | |
Principles of Consolidation | |
The acquisition of SCNRG by SCGC on October 25, 2013, has been accounted for as a recapitalization of SCGC and SCNRG is considered the acquirer for accounting purposes. Therefore, our condensed consolidated financial statements include the historic accounts of SCNRG, and from the date of our acquisition of SCNRG on October 25, 2013, include the accounts of SCGC. All significant intercompany balances and transactions have been eliminated. | |
Use of Estimates | |
The preparation of financial statements in conformity with GAAP 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. Significant estimates included in the financial statements are: (1) depreciation and depletion; (2) accrued assets and liabilities; (3) asset retirement obligations; and (4) net profits interest payable. Although management believes these estimates are reasonable, changes in facts and circumstances or discovery of new information may result in revised estimates. Actual results could differ from those estimates. | |
Financial Instruments | |
Financial instruments consist of cash, accounts receivable, accounts payable and notes payable. Recorded values of cash, receivables, accounts payable and accrued liabilities approximate fair values due to the short maturities of such instruments. Recorded values for notes payable approximate fair values, since their stated or imputed interest rates are commensurate with prevailing market rates for similar obligations. | |
Oil Properties | |
We follow the full-cost method of accounting under which all costs associated with property acquisition, exploration and development activities are capitalized. We also capitalize internal costs that can be directly identified with our acquisition, and exploration and development activities. We do not capitalize any costs related to production, general corporate overhead or similar activities. Surface equipment on a property is also part of the amounts capitalized. | |
Under the full-cost method, capitalized costs are depleted (amortized) on a composite unit-of-production method based on proved oil reserves. If we maintain the same level of production year over year, the depletion expense may be significantly different if our estimate of remaining reserves changes significantly. Proceeds from the sale of properties are accounted for as reductions of capitalized costs unless such sales involve a significant change in the relationship between costs and the value of proved reserves or the underlying value of unproved properties, in which case a gain or loss is recognized. The costs of unproved properties are excluded from amortization until the properties are evaluated. We review all of our unevaluated properties quarterly to determine whether or not and to what extent proved reserves have been assigned to the properties, and if impairment has occurred. Unevaluated properties are assessed individually when individual costs are significant. | |
We review the carrying value of our oil properties under the full-cost accounting rules of the SEC on a quarterly basis. This quarterly review is referred to as a ceiling test. Under the ceiling test, capitalized costs, less accumulated amortization and related deferred income taxes, may not exceed an amount equal to the sum of the present value of estimated future net revenues (adjusted for cash flow hedges) less estimated future expenditures to be incurred in developing and producing the proved reserves, less any related income tax effects. In calculating future net revenues, current SEC regulations require us to utilize prices at the end of the appropriate quarterly period. Such prices are utilized except where different prices are fixed and determinable from applicable contracts for the remaining term of those contracts, including the effects of derivatives qualifying as cash flow hedges. Two primary factors impacting this test are reserve levels and current prices, and their associated impact on the present value of estimated future net revenues. Revisions to estimates of oil reserves and/or an increase or decrease in prices can have a material impact on the present value of estimated future net revenues. Any excess of the net book value, less deferred income taxes, is generally written off as an expense. Under SEC regulations, the excess above the ceiling is not expensed (or is reduced) if, subsequent to the end of the period, but prior to the release of the financial statements, oil prices increase sufficiently such that an excess above the ceiling would have been eliminated (or reduced) if the increased prices were used in the calculations. | |
The estimates of proved crude oil reserves utilized in the preparation of the financial statements are estimated in accordance with guidelines established by the SEC and the Financial Accounting Standards Board ("FASB"), which require that reserve estimates be prepared under existing economic and operating conditions using a 12-month average price with no provision for price and cost escalations in future years except by contractual arrangements. Actual results could differ materially from these estimates. | |
Long-Lived Assets | |
Impairment of long-lived assets is recorded when indicators of impairment are present and the undiscounted cash flows estimated to be generated by those assets are less than the assets' carrying value. The carrying value of the assets is then reduced to their estimated fair value that is usually measured based on an estimate of future discounted cash flows. | |
Asset Retirement Obligations | |
Asset retirement obligations relate to the plug and abandonment costs when our wells are no longer useful, and for the cost of removing related surface facilities. We determine the value of the liability by reviewing operator estimates and estimate the increase we will face in the future. We then discount the future value based on an intrinsic interest rate that is appropriate for us. If costs rise more than what we have expected there could be additional charges in the future, however, on a quarterly basis we monitor the costs of the abandoned wells and adjust this liability if necessary. | |
Revenue Recognition | |
Oil revenues are recognized net of royalties when production is sold to a purchaser at a fixed or determinable price, when title has transferred, and if collection of the revenue is probable. | |
Net Profits Interest | |
A Net Profits Interest ("NPI") on the DEEP property calls for 40% of the net cash flow, as defined in the Assignment of Net Profit Interest (see Note 6), to be paid each month to the owner of the NPI. If net cash flow is negative, such losses carry forward to be deducted against future positive net cash flow. There is a minimum monthly payment of $1,985 (SCNRG's 66.67% share). Payments are required until SCNRG's NPI payments total between $231,345 and $238,285 (the actual maximum amount within this range dependent on when SCNRG satisfies its aggregate NPI payment obligations) has been paid on or before December 31, 2022. As of November 30, 2013, SCNRG has made NPI payments totaling $67,588. | |
Given its terminating nature, the discounted present value of the minimum monthly NPI payments, based on a discount rate of 10.0% per annum, was recorded as a liability at SCNRG's December 1, 2009 acquisition date of the DEEP property. | |
Concentrations | |
Pursuant to a January 13, 2010 Crude Oil Purchase Contract between the DEEP operator and Plains Marketing L.P. ("PMLP"), all production from the DEEP property is sold to PMLP. The initial term of the agreement was for one year, expiring on December 31, 2010, and was automatically renewed for an additional one-year term that expired on December 31, 2011. Since January 1, 2012, the agreement has continued on a month-to-month basis and is cancellable upon thirty day's written notice by either party. | |
New Accounting Pronouncements | |
There are no recent accounting pronouncements that are expected to have a material effect on the Company's financial statements. | |
ACQUISITION_OF_SCNRG
ACQUISITION OF SCNRG | 3 Months Ended | ||||||||
Nov. 30, 2013 | |||||||||
ACQUISITION OF SCNRG [Abstract] | ' | ||||||||
ACQUISITION OF SCNRG | ' | ||||||||
3. ACQUISITION OF SCNRG | |||||||||
As described in Note 1, on October 25, 2013, we acquired 100% of the membership interest in SCNRG, resulting in SCNRG becoming a wholly-owned subsidiary of the SCGC, in exchange for 14.0 million shares of our common stock issued to the members of SCNRG. For accounting purposes, the acquisition of SCNRG by SCGC has been accounted for as a recapitalization of SCGC. Accordingly, SCNRG is considered the acquirer for accounting purposes and thus, the historical financial statements are SCNRG's, consolidated with SCGC's beginning October 25, 2013. | |||||||||
The 14.0 million common shares issued by SCGC had an aggregate par value of $14,000. The net assets acquired by SCNRG as the accounting acquirer were: | |||||||||
Cash | $ | 6,004 | |||||||
Accounts receivable | 1,553 | ||||||||
Oil properties | 26,500 | ||||||||
Deposit | 5,000 | ||||||||
Accounts payable and accrued liabilities | (37,431 | ) | |||||||
Net assets acquired | $ | 1,626 | |||||||
The difference between the par value of the common shares issued and the net assets acquired was recorded in additional paid-in capital. | |||||||||
The following table presents unaudited pro forma consolidated information, adjusted for the acquisition of the SCGC, as if the acquisition had occurred on September 1, 2012: | |||||||||
Three Months Ended | |||||||||
November 30, | |||||||||
2013 | 2012 | ||||||||
Revenue | $ | 28,097 | $ | 23,425 | |||||
Net loss | $ | (87,473 | ) | $ | (13,875 | ) | |||
Loss per share | $ | -- | $ | -- | |||||
These amounts have been calculated after applying our accounting policies and adjusting the results to reflect the recapitalization of SCGC. The unaudited pro forma adjustments are based on available information and certain assumptions we believe are reasonable. | |||||||||
LOANS_PAYABLE_RELATED_PARTY
LOANS PAYABLE, RELATED PARTY | 3 Months Ended | ||||||||
Nov. 30, 2013 | |||||||||
LOANS PAYABLE, RELATED PARTY [Abstract] | ' | ||||||||
LOANS PAYABLE, RELATED PARTY | ' | ||||||||
4. LOANS PAYABLE, RELATED PARTY | |||||||||
SCNRG received various loans from its former members from its inception totaling $90,205 and $89,833 as of November 30, 2013 and August 31, 2013, respectively. Each loan was originally unsecured, non-interest bearing and due on demand. On September 18, 2013, each loan was formalized through the issuance of an amended and restated promissory note to each former member. The amended and restated promissory notes are unsecured, bear interest at a rate of 1.66% per annum and mature no later than September 18, 2018. The unpaid principal and interest are payable upon the earlier of their maturity or upon the issuance of new debt or equity securities in a transaction or series of transactions resulting in aggregate gross proceeds to Sara Creek of a minimum of $5 million. Sara Creek assumed these loans payable upon its acquisition of SCNRG on October 25, 2013. | |||||||||
Loans from related parties consist of the following at November 30, 2013 and August 31, 2013: | |||||||||
30-Nov-13 | 31-Aug-13 | ||||||||
Darren Katic | $ | 38,500 | $ | 38,500 | |||||
Manhattan Holdings, LLC | 38,500 | 38,500 | |||||||
Gerald Tywoniuk | 12,833 | 12,833 | |||||||
Total long-term term loans | 89,833 | 89,833 | |||||||
Accrued interest payable | 372 | - | |||||||
Less current portion | - | - | |||||||
Long-term loans from related parties | $ | 90,205 | $ | 89,833 |
ASSET_RETIREMENT_OBLIGATION
ASSET RETIREMENT OBLIGATION | 3 Months Ended | ||||||||
Nov. 30, 2013 | |||||||||
ASSET RETIREMENT OBLIGATION [Abstract] | ' | ||||||||
ASSET RETIREMENT OBLIGATION | ' | ||||||||
5. ASSET RETIREMENT OBLIGATION | |||||||||
Our asset retirement obligations relate to the abandonment of oil wells and related surface facilities. The amounts recognized are based on numerous estimates and assumptions, including future retirement costs, inflation rates and credit adjusted risk-free interest rates. | |||||||||
The following shows the changes in asset retirement obligations: | |||||||||
2013 | 2012 | ||||||||
Asset retirement obligations, August 31 | $ | 103,299 | $ | 95,206 | |||||
Liabilities incurred during the period | - | - | |||||||
Liabilities settled during the period | - | - | |||||||
Accretion | 2,195 | 2,023 | |||||||
Asset retirement obligations, November 30 | $ | 105,494 | $ | 97,229 | |||||
NET_PROFITS_INTEREST_NPI_PAYAB
NET PROFITS INTEREST ("NPI") PAYABLE | 3 Months Ended | ||||||||
Nov. 30, 2013 | |||||||||
NET PROFITS INTEREST ("NPI") PAYABLE [Abstract] | ' | ||||||||
NET PROFITS INTEREST ("NPI") PAYABLE | ' | ||||||||
6. NET PROFITS INTEREST ("NPI") PAYABLE | |||||||||
In connection with SCNRG's December 1, 2009 Purchase and Sale Agreement for DEEP, and as part of the purchase price consideration, SCNRG entered into an Assignment of Net Profit Interest with Christian Hall Petroleum. Pursuant to the agreement, SCNRG is required to make monthly payments to the holder in an amount equal to 40% of SCNRG's share of net profit (as defined in the agreement) from production, with a stated minimum payment of not less than $1,985 per month (SCNRG's 66.67% share), for a period of twelve years commencing on January 1, 2011 and expiring December 31, 2022. Payments are required until NPI payments total between $231,345 and $238,285 (the actual maximum amount within this range dependent on when SCNRG satisfies the aggregate NPI payment obligations). The discounted present value of the NPI, utilizing a discount rate of 10% per annum, was recorded on December 1, 2009 in the amount of $135,466. As of November 30, 2013, SCNRG has made NPI payments totaling $67,588. | |||||||||
Changes in the NPI liability are as follows: | |||||||||
2013 | 2012 | ||||||||
NPI liability, August 31 | $ | 124,597 | $ | 135,640 | |||||
Accretion recorded during the period | 3,041 | 3,319 | |||||||
Payments made during the period | (5,957 | ) | (6,040 | ) | |||||
NPI liability, November 30 | $ | 121,681 | $ | 132,919 | |||||
The current portion is $12,414 and $12,109 respectively at November 30, 2013, and August 31, 2013. | |||||||||
FAIR_VALUE_MEASUREMENTS
FAIR VALUE MEASUREMENTS | 3 Months Ended | ||||||||||||
Nov. 30, 2013 | |||||||||||||
FAIR VALUE MEASUREMENTS [Abstract] | ' | ||||||||||||
FAIR VALUE MEASUREMENTS | ' | ||||||||||||
7. FAIR VALUE MEASUREMENTS | |||||||||||||
We hold certain financial assets, which are required to be measured at fair value on a recurring basis in accordance with the Statement of Financial Accounting Standard No. 157, "Fair Value Measurements" ("ASC Topic 820-10"). ASC Topic 820-10 establishes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). ASC Topic 820-10 defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants on the measurement date. A fair value measurement assumes that the transaction to sell the asset or transfer the liability occurs in the principal market for the asset or liability. | |||||||||||||
The three levels of the fair value hierarchy under ASC Topic 820-10 are described below: | |||||||||||||
o | Level 1 - Valuations based on quoted prices in active markets for identical assets or liabilities that an entity has the ability to access. We believe receivables, payables and our loans approximate fair value at August 31, 2013. | ||||||||||||
o | Level 2 - Valuations based on quoted prices for similar assets or liabilities, quoted prices for identical assets or liabilities in markets that are not active, or other inputs that are observable or can be corroborated by observable data for substantially the full term of the assets or liabilities. | ||||||||||||
o | Level 3 - Valuations based on inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. We consider depleting assets, asset retirement obligations and net profit interest liability to be Level 3. We determine the fair value of Level 3 assets and liabilities utilizing various inputs, including oil price quotations and contract terms. | ||||||||||||
Fair Value Measurement | |||||||||||||
November 30, 2013 | Level 1 | Level 2 | Level 3 | ||||||||||
Capitalized oil and gas properties | $ | - | $ | - | $ | 319,208 | |||||||
Net profit interest liability | - | - | (121,681 | ) | |||||||||
Asset retirement obligation | - | - | (105,494 | ) | |||||||||
Total | $ | - | $ | - | $ | 92,033 | |||||||
COMMITMENTS_AND_CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 3 Months Ended |
Nov. 30, 2013 | |
COMMITMENTS AND CONTINGENCIES [Abstract] | ' |
COMMITMENTS AND CONTINGENCIES | ' |
8. COMMITMENTS AND CONTINGENCIES | |
Commitments | |
Pursuant to SCNRG's December 1, 2009 Purchase and Sale Agreement, oil production from the DEEP property is subject to a 1% overriding royalty. Additionally, production is also subject to an aggregate additional 19.92% royalty for total royalties of 20.92%. | |
Further, in connection with the aforementioned agreement, SCNRG has entered into an Operating Agreement with Caleco, LLC ("Caleco") for a term equal to the life of the wells. Caleco owns a 16.83% working interest in DEEP, which is subject to a purchase option described in Note 11, Subsequent Events. As the operator, Caleco incurs production and other costs, which are subsequently billed to SCNRG through a joint interest billing process; and the operator distributes to SCNRG its share of revenue received from production, less royalties and NPI obligations. All expenses and revenue presented by the operator represent the pro rata share of the revenue earned and expenses incurred. In accordance with the terms of the agreement, the operator is entitled to a fee for services but has instead elected to bill SCNRG based on actual time and materials. | |
Contingencies | |
We are subject to various federal, state and local laws and regulations relating to discharge of materials into, and protection of, the environment. These laws and regulations may, among other things, impose liability on the owners for the cost of pollution cleanup resulting from operations and subject the owners to liability for pollution damages. In some instances, the operator may be directed to suspend or cease operations in the affected area. As of November 30, 2013, and August 31, 2013, we have no reserve for environmental remediation and are not aware of any environmental claims. |
STOCKHOLDERS_DEFICIT
STOCKHOLDERS' (DEFICIT) | 3 Months Ended |
Nov. 30, 2013 | |
STOCKHOLDERS' (DEFICIT) [Abstract] | ' |
SHAREHOLDERS' (DEFICIT) | ' |
9. STOCKHOLDERS' (DEFICIT) | |
Three Months Ended November 30, 2013 | |
On October 25, 2013, the Company issued 14,000,000 shares of its common stock to the members of SCNRG for 100% of the membership interests in SCNRG. | |
As described in Note 1, the acquisition of SCNRG by SCGC has been accounted for as a recapitalization of SCGC for accounting purposes. |
RELATED_PARTY_TRANSACTIONS
RELATED PARTY TRANSACTIONS | 3 Months Ended |
Nov. 30, 2013 | |
Related Party Transactions [Abstract] | ' |
RELATED PARTY TRANSACTIONS | ' |
10. RELATED PARTY TRANSACTIONS | |
On January 1, 2014, we exercised our option to acquire all of the membership interests in Hawker Energy, LLC, a California limited liability company ("Hawker"), from Darren Katic and Charles Moore (collectively the "Sellers"). We issued 3,000,000 shares of our common to the Sellers as consideration for the acquisition, 1,500,000 shares to each Seller. We may be required to issue up to an additional 33,000,000 shares to Sellers upon SCGC or Hawker achieving certain milestones. (See Note 11). Mr. Katic is a director and our Chief Executive Officer and Chief Financial Officer. He was a member of SCNRG, LLC, which we acquired on October 25, 2013, and at which point Mr. Katic became a director, officer and a significant shareholder of SCGC. | |
The Hawker option was originally entered into with Sara Creek on October 15, 2013 and amended on November 20, 2013 to (a) extend the term of the option, (b) revise the option consideration payable upon consummation of certain transactions described in the Agreement and (c) provide for additional option consideration in the event of the consummation of certain transactions not previously contemplated by the parties. | |
On January 10, 2014, Darren Katic, one of the sellers of SCNRG and a director and officer and significant shareholder of SCGC, purchased 380,000 units of SCGC for $38,000, Manhattan Holdings, LLC, one of the sellers of SCNRG and a significant shareholder of SCGC, acquired 900,000 units of SCGC for $90,000, and Gerald Tywoniuk, also one of the sellers of SCNRG, purchased 500,000 units of SCGC for $50,000. All of these amounts are a portion of the monies we raised described in "Note 11-Subsequent Events" below. Each unit is comprised of one share of our common stock, together with a warrant to acquire an additional one-half share of our common stock at $0.20 per share. The warrants expire five years from the closing date. The price of each unit was $0.10 per unit. | |
SUBSEQUENT_EVENTS
SUBSEQUENT EVENTS | 3 Months Ended |
Nov. 30, 2013 | |
SUBSEQUENT EVENTS [Abstract] | ' |
SUBSEQUENT EVENTS | ' |
11. SUBSEQUENT EVENTS | |
Acquisition of Hawker Energy, LLC | |
On January 1, 2014, we exercised our option to acquire all of the membership interests in Hawker from Darren Katic and Charles Moore (collectively the "Sellers"). We issued 3,000,000 shares of our common to the Sellers as consideration for the acquisition, 1,500,000 shares to each Seller. We may be required to issue up to an additional 33,000,000 shares to Sellers upon SCGC or Hawker achieving certain milestones as described below. Mr. Katic is a director of SCGC, our Chief Executive Officer and Chief Financial Officer, and a significant shareholder of SCGC. | |
Hawker is a California-based independent development-stage oil company focused on identifying and evaluating low-risk developmental opportunities in proven oil reserves in existing oil fields. Over the last two years, Hawker has assembled an inventory of potential development opportunities. Hawker, through its wholly-owned subsidiary Punta Gorda Resources, LLC, claims developmental rights of certain mineral rights of coastal lease PRC 145.1 just offshore Ventura County in the Rincon Field and ownership rights to an associated on-shore drilling and production site. This lease is subject to 24.5% in overriding royalties, primarily to the State of California. A single active well on PRC 145.1 has historically produced between 5 and 15 barrels of oil per day (gross production before royalties). This lease has ten other non-active wells, one or more of which may be recompleted or re-drilled. All rights claimed by Hawker to PRC 145.1 are being challenged in court by the lease's operator of record -- Case No. 56-2013-00440672-CU-BC-VTA pending in Ventura County Superior Court. | |
Sellers may be entitled to additional shares of our common stock upon the following terms: | |
(a) 2,000,000 shares of our common stock shall be issued upon our or Hawker's acquisition of California Oil Independents (or certain oil and gas interests held by it located in the Monroe Swell Field, Monterey, California); | |
(b) 2,000,000 shares of our common stock shall be issued upon our or Hawker's acquisition of a participation in South Coast Oil - Huntington Beach (or the oil and gas interests held by it); | |
(c) 5,000,000 shares of our common stock shall be issued upon our or Hawker's acquisition of the Midway-Sunset Lease oil and gas interests held by Christian Hall (or affiliates); | |
(d) 10,000,000 shares of our common stock shall be issued upon our or Hawker's acquisition TEG Oil & Gas, Inc. (or certain oil and gas interests held by it located in the Tapia Field, Los Angeles County, California); | |
(e) 7,000,000 shares of our common stock shall be issued upon the conveyance to us or Hawker of certain assets and rights regarding PRC 145.1 Lease held by Rincon Island Limited Partnership or settlement in lieu of such conveyance; and | |
(f) 7,000,000 shares of our common stock shall be issued upon the conveyance to us or Hawker of certain mineral rights regarding PRC 427 Lease held by ExxonMobil. | |
Sale of common stock and warrant units | |
On January 10, 2014, we closed a private placement of 3,600,000 units for gross proceeds of $360,000. No commissions were paid or are payable. The price of each unit was $0.10. Each unit is comprised of one share of our common stock, together with a warrant to acquire an additional one-half share of our common stock at $0.20 per share. The warrants expire five years from the closing date. | |
Acquisition of remaining interest in the DEEP Lease | |
Our wholly-owned subsidiary SCNRG is in the process of closing on its option to acquire the remaining one-third working interest in the DEEP Lease for $325,000, which would bring SCNRG's working interest to 100%. The operator, Caleco, LLC, will continue to operate the DEEP Lease on our behalf during a transitional period. We expect to complete this acquisition in January 2014. | |
SUMMARY_OF_SIGNIFICANT_ACCOUNT1
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 3 Months Ended |
Nov. 30, 2013 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES [Abstract] | ' |
Basis of Presentation | ' |
Basis of Presentation | |
The accompanying unaudited interim financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America ("GAAP") and the rules and regulations of the United States Securities and Exchange Commission ("SEC") for interim financial information. | |
The unaudited interim financial statements should be read in conjunction with the Company's Annual Report on Form 10-K filed with the SEC on November 29, 2013, which contains the audited financial statements and notes thereto for the year ended August 31, 2013 for SCGC. Additionally, the Company's Amendment No. 1 to Current Report on Form 8-K/A filed with the SEC on December 24, 2013, contains the audited financial statements and notes thereto for the years ended August 31, 2013 and 2012 for SCNRG. | |
Certain information or footnote disclosures normally included in financial statements prepared in accordance with GAAP have been omitted, pursuant to the rules and regulations of the SEC for interim financial reporting. Accordingly, they do not include all the information and footnotes necessary for a comprehensive presentation of financial position, results of operations, or cash flows. It is management's opinion, however, that all material adjustments (consisting of normal recurring adjustments) have been made which are necessary for a fair financial statement presentation. The interim results for the three months ended November 30, 2013 are not necessarily indicative of results for the full fiscal year. | |
Principles of Consolidation | ' |
Principles of Consolidation | |
The acquisition of SCNRG by SCGC on October 25, 2013, has been accounted for as a recapitalization of SCGC and SCNRG is considered the acquirer for accounting purposes. Therefore, our condensed consolidated financial statements include the historic accounts of SCNRG, and from the date of our acquisition of SCNRG on October 25, 2013, include the accounts of SCGC. All significant intercompany balances and transactions have been eliminated. | |
Use of Estimates | ' |
Use of Estimates | |
The preparation of financial statements in conformity with GAAP 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. Significant estimates included in the financial statements are: (1) depreciation and depletion; (2) accrued assets and liabilities; (3) asset retirement obligations; and (4) net profits interest payable. Although management believes these estimates are reasonable, changes in facts and circumstances or discovery of new information may result in revised estimates. Actual results could differ from those estimates. | |
Financial Instruments | ' |
Financial Instruments | |
Financial instruments consist of cash, accounts receivable, accounts payable and notes payable. Recorded values of cash, receivables, accounts payable and accrued liabilities approximate fair values due to the short maturities of such instruments. Recorded values for notes payable approximate fair values, since their stated or imputed interest rates are commensurate with prevailing market rates for similar obligations. | |
Oil Properties | ' |
Oil Properties | |
We follow the full-cost method of accounting under which all costs associated with property acquisition, exploration and development activities are capitalized. We also capitalize internal costs that can be directly identified with our acquisition, and exploration and development activities. We do not capitalize any costs related to production, general corporate overhead or similar activities. Surface equipment on a property is also part of the amounts capitalized. | |
Under the full-cost method, capitalized costs are depleted (amortized) on a composite unit-of-production method based on proved oil reserves. If we maintain the same level of production year over year, the depletion expense may be significantly different if our estimate of remaining reserves changes significantly. Proceeds from the sale of properties are accounted for as reductions of capitalized costs unless such sales involve a significant change in the relationship between costs and the value of proved reserves or the underlying value of unproved properties, in which case a gain or loss is recognized. The costs of unproved properties are excluded from amortization until the properties are evaluated. We review all of our unevaluated properties quarterly to determine whether or not and to what extent proved reserves have been assigned to the properties, and if impairment has occurred. Unevaluated properties are assessed individually when individual costs are significant. | |
We review the carrying value of our oil properties under the full-cost accounting rules of the SEC on a quarterly basis. This quarterly review is referred to as a ceiling test. Under the ceiling test, capitalized costs, less accumulated amortization and related deferred income taxes, may not exceed an amount equal to the sum of the present value of estimated future net revenues (adjusted for cash flow hedges) less estimated future expenditures to be incurred in developing and producing the proved reserves, less any related income tax effects. In calculating future net revenues, current SEC regulations require us to utilize prices at the end of the appropriate quarterly period. Such prices are utilized except where different prices are fixed and determinable from applicable contracts for the remaining term of those contracts, including the effects of derivatives qualifying as cash flow hedges. Two primary factors impacting this test are reserve levels and current prices, and their associated impact on the present value of estimated future net revenues. Revisions to estimates of oil reserves and/or an increase or decrease in prices can have a material impact on the present value of estimated future net revenues. Any excess of the net book value, less deferred income taxes, is generally written off as an expense. Under SEC regulations, the excess above the ceiling is not expensed (or is reduced) if, subsequent to the end of the period, but prior to the release of the financial statements, oil prices increase sufficiently such that an excess above the ceiling would have been eliminated (or reduced) if the increased prices were used in the calculations. | |
The estimates of proved crude oil reserves utilized in the preparation of the financial statements are estimated in accordance with guidelines established by the SEC and the Financial Accounting Standards Board ("FASB"), which require that reserve estimates be prepared under existing economic and operating conditions using a 12-month average price with no provision for price and cost escalations in future years except by contractual arrangements. Actual results could differ materially from these estimates. | |
Long-Lived Assets | ' |
Long-Lived Assets | |
Impairment of long-lived assets is recorded when indicators of impairment are present and the undiscounted cash flows estimated to be generated by those assets are less than the assets' carrying value. The carrying value of the assets is then reduced to their estimated fair value that is usually measured based on an estimate of future discounted cash flows. | |
Asset Retirement Obligations | ' |
Asset Retirement Obligations | |
Asset retirement obligations relate to the plug and abandonment costs when our wells are no longer useful, and for the cost of removing related surface facilities. We determine the value of the liability by reviewing operator estimates and estimate the increase we will face in the future. We then discount the future value based on an intrinsic interest rate that is appropriate for us. If costs rise more than what we have expected there could be additional charges in the future, however, on a quarterly basis we monitor the costs of the abandoned wells and adjust this liability if necessary. | |
Revenue Recognition | ' |
Revenue Recognition | |
Oil revenues are recognized net of royalties when production is sold to a purchaser at a fixed or determinable price, when title has transferred, and if collection of the revenue is probable. | |
Net Profits Interest | ' |
Net Profits Interest | |
A Net Profits Interest ("NPI") on the DEEP property calls for 40% of the net cash flow, as defined in the Assignment of Net Profit Interest (see Note 6), to be paid each month to the owner of the NPI. If net cash flow is negative, such losses carry forward to be deducted against future positive net cash flow. There is a minimum monthly payment of $1,985 (SCNRG's 66.67% share). Payments are required until SCNRG's NPI payments total between $231,345 and $238,285 (the actual maximum amount within this range dependent on when SCNRG satisfies its aggregate NPI payment obligations) has been paid on or before December 31, 2022. As of November 30, 2013, SCNRG has made NPI payments totaling $67,588. | |
Given its terminating nature, the discounted present value of the minimum monthly NPI payments, based on a discount rate of 10.0% per annum, was recorded as a liability at SCNRG's December 1, 2009 acquisition date of the DEEP property. | |
Concentrations | ' |
Concentrations | |
Pursuant to a January 13, 2010 Crude Oil Purchase Contract between the DEEP operator and Plains Marketing L.P. ("PMLP"), all production from the DEEP property is sold to PMLP. The initial term of the agreement was for one year, expiring on December 31, 2010, and was automatically renewed for an additional one-year term that expired on December 31, 2011. Since January 1, 2012, the agreement has continued on a month-to-month basis and is cancellable upon thirty day's written notice by either party. | |
New Accounting Pronouncements | ' |
New Accounting Pronouncements | |
There are no recent accounting pronouncements that are expected to have a material effect on the Company's financial statements. | |
ACQUISITION_OF_SCNRG_Tables
ACQUISITION OF SCNRG (Tables) | 3 Months Ended | ||||||||
Nov. 30, 2013 | |||||||||
ACQUISITION OF SCNRG [Abstract] | ' | ||||||||
Schedule of Net Assets Acquired | ' | ||||||||
The net assets acquired by SCNRG as the accounting acquirer were: | |||||||||
Cash | $ | 6,004 | |||||||
Accounts receivable | 1,553 | ||||||||
Oil properties | 26,500 | ||||||||
Deposit | 5,000 | ||||||||
Accounts payable and accrued liabilities | (37,431 | ) | |||||||
Net assets acquired | $ | 1,626 | |||||||
Schedule of Pro Forma Consolidated Information | ' | ||||||||
The following table presents unaudited pro forma consolidated information, adjusted for the acquisition of the SCGC, as if the acquisition had occurred on September 1, 2012: | |||||||||
Three Months Ended | |||||||||
November 30, | |||||||||
2013 | 2012 | ||||||||
Revenue | $ | 28,097 | $ | 23,425 | |||||
Net loss | $ | (87,473 | ) | $ | (13,875 | ) | |||
Loss per share | $ | -- | $ | -- | |||||
LOANS_PAYABLE_RELATED_PARTY_Ta
LOANS PAYABLE, RELATED PARTY (Tables) | 3 Months Ended | ||||||||
Nov. 30, 2013 | |||||||||
LOANS PAYABLE, RELATED PARTY [Abstract] | ' | ||||||||
Schedule of Loans from Related Parties | ' | ||||||||
Loans from related parties consist of the following at November 30, 2013 and August 31, 2013: | |||||||||
30-Nov-13 | 31-Aug-13 | ||||||||
Darren Katic | $ | 38,500 | $ | 38,500 | |||||
Manhattan Holdings, LLC | 38,500 | 38,500 | |||||||
Gerald Tywoniuk | 12,833 | 12,833 | |||||||
Total long-term term loans | 89,833 | 89,833 | |||||||
Accrued interest payable | 372 | - | |||||||
Less current portion | - | - | |||||||
Long-term loans from related parties | $ | 90,205 | $ | 89,833 |
ASSET_RETIREMENT_OBLIGATION_Ta
ASSET RETIREMENT OBLIGATION (Tables) | 3 Months Ended | ||||||||
Nov. 30, 2013 | |||||||||
ASSET RETIREMENT OBLIGATION [Abstract] | ' | ||||||||
Schedule of Changes in Asset Retirement Obligation | ' | ||||||||
The following shows the changes in asset retirement obligations: | |||||||||
2013 | 2012 | ||||||||
Asset retirement obligations, August 31 | $ | 103,299 | $ | 95,206 | |||||
Liabilities incurred during the period | - | - | |||||||
Liabilities settled during the period | - | - | |||||||
Accretion | 2,195 | 2,023 | |||||||
Asset retirement obligations, November 30 | $ | 105,494 | $ | 97,229 | |||||
NET_PROFITS_INTEREST_NPI_PAYAB1
NET PROFITS INTEREST ("NPI") PAYABLE (Tables) | 3 Months Ended | ||||||||
Nov. 30, 2013 | |||||||||
NET PROFITS INTEREST ("NPI") PAYABLE [Abstract] | ' | ||||||||
Schedule of Changes in NPI Liability | ' | ||||||||
Changes in the NPI liability are as follows: | |||||||||
2013 | 2012 | ||||||||
NPI liability, August 31 | $ | 124,597 | $ | 135,640 | |||||
Accretion recorded during the period | 3,041 | 3,319 | |||||||
Payments made during the period | (5,957 | ) | (6,040 | ) | |||||
NPI liability, November 30 | $ | 121,681 | $ | 132,919 | |||||
FAIR_VALUE_MEASUREMENTS_Tables
FAIR VALUE MEASUREMENTS (Tables) | 3 Months Ended | ||||||||||||
Nov. 30, 2013 | |||||||||||||
FAIR VALUE MEASUREMENTS [Abstract] | ' | ||||||||||||
Schedule of Assets and Liabilities Measured at Fair Value on a Recurring Basis | ' | ||||||||||||
Fair Value Measurement | |||||||||||||
November 30, 2013 | Level 1 | Level 2 | Level 3 | ||||||||||
Capitalized oil and gas properties | $ | - | $ | - | $ | 319,208 | |||||||
Net profit interest liability | - | - | (121,681 | ) | |||||||||
Asset retirement obligation | - | - | (105,494 | ) | |||||||||
Total | $ | - | $ | - | $ | 92,033 | |||||||
DESCRIPTION_OF_BUSINESS_Detail
DESCRIPTION OF BUSINESS (Details) (SCNRG [Member]) | 1 Months Ended |
Oct. 25, 2013 | |
SCNRG [Member] | ' |
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | ' |
Ownership interest | 100.00% |
Number of shares issued for acquisition | 14,000,000 |
SUMMARY_OF_SIGNIFICANT_ACCOUNT2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) (USD $) | 3 Months Ended |
Nov. 30, 2013 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES [Abstract] | ' |
Percentage of monthly payments equal to net profit | 40.00% |
Stated minimum monthly payment | $1,985 |
Minimum NPI payment requirement | 231,345 |
Maximum NPI payment requirement | 238,285 |
Maturity date | 31-Dec-22 |
NPI payments | $67,588 |
Interest rate utilizing a discount rate | 10.00% |
ACQUISITION_OF_SCNRG_Narrative
ACQUISITION OF SCNRG (Narrative) (Details) (USD $) | 3 Months Ended | 1 Months Ended |
Nov. 30, 2013 | Oct. 25, 2013 | |
SCNRG [Member] | ||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | ' | ' |
Ownership interest | ' | 100.00% |
Number of shares issued for acquisition | ' | 14,000,000 |
Stock issued during period for acquisition | $1,626 | $14,000 |
ACQUISITION_OF_SCNRG_Schedule_
ACQUISITION OF SCNRG (Schedule of Net Assets Acquired) (Details) (USD $) | Oct. 25, 2013 |
ACQUISITION OF SCNRG [Abstract] | ' |
Cash | $6,004 |
Accounts receivable | 1,553 |
Oil properties | 26,500 |
Deposits | 5,000 |
Accounts payable and accrued liabilities | -37,431 |
Net assets acquired | $1,626 |
ACQUISITION_OF_SCNRG_Schedule_1
ACQUISITION OF SCNRG (Schedule of Pro Forma Consolidated Information) (Details) (USD $) | 3 Months Ended | |
Nov. 30, 2013 | Nov. 30, 2012 | |
ACQUISITION OF SCNRG [Abstract] | ' | ' |
Revenue | $28,097 | $23,425 |
Net loss | ($87,473) | ($13,875) |
Loss per share | ' | ' |
LOANS_PAYABLE_RELATED_PARTY_Na
LOANS PAYABLE, RELATED PARTY (Narrative) (Details) (USD $) | 1 Months Ended | ||
Sep. 18, 2013 | Nov. 30, 2013 | Aug. 31, 2013 | |
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | ' | ' | ' |
Loans payable to related parties | ' | $90,205 | $89,833 |
Maturity date | 18-Sep-18 | ' | ' |
Interest rate | 1.66% | ' | ' |
Gross proceeds recieved to trigger repayment of loans to related party | $5,000,000 | ' | ' |
LOANS_PAYABLE_RELATED_PARTY_Sc
LOANS PAYABLE, RELATED PARTY (Schedule of Loans from Related Parties) (Details) (USD $) | Nov. 30, 2013 | Aug. 31, 2013 |
Related Party Transaction [Line Items] | ' | ' |
Total long-term term loans | $89,833 | $89,833 |
Accrued interest payable | 372 | ' |
Less - current maturities | ' | ' |
Long-term loans from related parties | 90,205 | 89,833 |
Darren Katic [Member] | ' | ' |
Related Party Transaction [Line Items] | ' | ' |
Total long-term term loans | 38,500 | 38,500 |
Manhattan Holdings, LLC [Member] | ' | ' |
Related Party Transaction [Line Items] | ' | ' |
Total long-term term loans | 38,500 | 38,500 |
Gerald Tywoniuk [Member] | ' | ' |
Related Party Transaction [Line Items] | ' | ' |
Total long-term term loans | $12,833 | $12,833 |
ASSET_RETIREMENT_OBLIGATION_De
ASSET RETIREMENT OBLIGATION (Details) (USD $) | 3 Months Ended | |
Nov. 30, 2013 | Nov. 30, 2012 | |
ASSET RETIREMENT OBLIGATION [Abstract] | ' | ' |
Asset retirement obligations, August 31 | $103,299 | $95,206 |
Liabilities incurred during the period | ' | ' |
Liabilities settled during the period | ' | ' |
Accretion | 2,195 | 2,023 |
Asset retirement obligations, November 30 | $105,494 | $97,229 |
NET_PROFITS_INTEREST_NPI_PAYAB2
NET PROFITS INTEREST ("NPI") PAYABLE (Narrative) (Details) (USD $) | 3 Months Ended | ||
Nov. 30, 2013 | Aug. 31, 2013 | Dec. 01, 2009 | |
NET PROFITS INTEREST ("NPI") PAYABLE [Abstract] | ' | ' | ' |
Percentage of monthly payments equal to net profit | 40.00% | ' | ' |
Stated minimum monthly payment | $1,985 | ' | ' |
Payment period | '12 years | ' | ' |
Commencement date | 1-Jan-11 | ' | ' |
Maturity date | 31-Dec-22 | ' | ' |
Discounted value | ' | ' | 135,466 |
Interest rate utilizing a discount rate | 10.00% | ' | ' |
Minimum NPI payment requirement | 231,345 | ' | ' |
Maximum NPI payment requirement | 238,285 | ' | ' |
NPI payments | 67,588 | ' | ' |
Net profits interest payable, current portion | $12,414 | $12,109 | ' |
NET_PROFITS_INTEREST_NPI_PAYAB3
NET PROFITS INTEREST ("NPI") PAYABLE (Schedule of Changes in NPI Liability) (Details) (USD $) | 3 Months Ended | |
Nov. 30, 2013 | Nov. 30, 2012 | |
NET PROFITS INTEREST ("NPI") PAYABLE [Abstract] | ' | ' |
NPI liability, August 31 | $124,597 | $135,640 |
Accretion of net profits interest liability | 3,041 | 3,319 |
Payments made during the period | -5,957 | -6,040 |
NPI liability, November 30 | $121,681 | $132,919 |
FAIR_VALUE_MEASUREMENTS_Detail
FAIR VALUE MEASUREMENTS (Details) (USD $) | Nov. 30, 2013 |
Level 1 [Member] | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' |
Capitalized oil and gas properties | ' |
Net profit interest liability | ' |
Asset retirement obligation | ' |
Total | ' |
Level 2 [Member] | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' |
Capitalized oil and gas properties | ' |
Net profit interest liability | ' |
Asset retirement obligation | ' |
Total | ' |
Level 3 [Member] | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' |
Capitalized oil and gas properties | 319,208 |
Net profit interest liability | -121,681 |
Asset retirement obligation | -105,494 |
Total | $92,033 |
COMMITMENTS_AND_CONTINGENCIES_
COMMITMENTS AND CONTINGENCIES (Details) (DEEP Property [Member]) | 3 Months Ended |
Nov. 30, 2013 | |
Long-term Purchase Commitment [Line Items] | ' |
Overriding royalty percentage | 1.00% |
Aggregate additional royalty percentage subject to production | 19.92% |
Total royalties | 20.92% |
Caleco, LLC [Member] | ' |
Long-term Purchase Commitment [Line Items] | ' |
Working interest | 16.83% |
STOCKHOLDERS_DEFICIT_Details
STOCKHOLDERS' (DEFICIT) (Details) (SCNRG [Member]) | 1 Months Ended |
Oct. 25, 2013 | |
SCNRG [Member] | ' |
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | ' |
Ownership interest | 100.00% |
Number of shares issued for acquisition | 14,000,000 |
RELATED_PARTY_TRANSACTIONS_Det
RELATED PARTY TRANSACTIONS (Details) (USD $) | 0 Months Ended | 3 Months Ended |
Jan. 10, 2014 | Nov. 30, 2013 | |
Related Party Transaction [Line Items] | ' | ' |
Warrant exercise price | ' | 0.2 |
Price per unit | ' | 0.1 |
Possible additional shares required to issue | ' | 33,000,000 |
Darren Katic [Member] | ' | ' |
Related Party Transaction [Line Items] | ' | ' |
Number of shares issued for acquisition | ' | 1,500,000 |
Purchased units | 380,000 | ' |
Value of purchased units | $38,000 | ' |
Manhattan Holdings, LLC [Member] | ' | ' |
Related Party Transaction [Line Items] | ' | ' |
Purchased units | 900,000 | ' |
Value of purchased units | 90,000 | ' |
Sellers [Member] | ' | ' |
Related Party Transaction [Line Items] | ' | ' |
Number of shares issued for acquisition | ' | 3,000,000 |
Gerald Tywoniuk [Member] | ' | ' |
Related Party Transaction [Line Items] | ' | ' |
Purchased units | 500,000 | ' |
Value of purchased units | $50,000 | ' |
Charles Moore [Member] | ' | ' |
Related Party Transaction [Line Items] | ' | ' |
Number of shares issued for acquisition | ' | 1,500,000 |
SUBSEQUENT_EVENTS_Details
SUBSEQUENT EVENTS (Details) (USD $) | 3 Months Ended | 1 Months Ended | 0 Months Ended | 3 Months Ended | 3 Months Ended | |||||||
Nov. 30, 2013 | Oct. 25, 2013 | Jan. 10, 2014 | Nov. 30, 2013 | Nov. 30, 2013 | Nov. 30, 2013 | Nov. 30, 2013 | Nov. 30, 2013 | Nov. 30, 2013 | Nov. 30, 2013 | Nov. 30, 2013 | Nov. 30, 2013 | |
SCNRG [Member] | Subsequent Event [Member] | Subsequent Event [Member] | Subsequent Event [Member] | Subsequent Event [Member] | Subsequent Event [Member] | Subsequent Event [Member] | Subsequent Event [Member] | Subsequent Event [Member] | Subsequent Event [Member] | Sellers [Member] | ||
SCNRG [Member] | California Oil Independents [Member] | South Coast Oil [Member] | Midway Sunset Lease Oil And Gas [Member] | TEG Oil & Gas, Inc. [Member] | Rincon Island Limited Partnership [Member] | ExxonMobil [Member] | ||||||
Related Party Transaction [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of shares issued for acquisition | ' | 14,000,000 | ' | ' | ' | 2,000,000 | 2,000,000 | 5,000,000 | 10,000,000 | 7,000,000 | 7,000,000 | 3,000,000 |
Price per unit | $0.10 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Value issued for acquisition | $1,626 | $14,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Ownership interest | ' | 100.00% | ' | ' | 100.00% | ' | ' | ' | ' | ' | ' | ' |
Possible additional shares required to issue | 33,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Amount raised from private placement | ' | ' | 360,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Private placement units | ' | ' | 3,600,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Purchase of one third working interest | ' | ' | ' | $325,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Warrant exercise price | 0.2 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |