Discovery Energy (DENR) 10-Q 19 Jul 16 2017 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	May 31, 2016	Jul. 19, 2016
Document and Entity Information [Abstract]
Entity Registrant Name	Discovery Energy Corp.
Document Type	10-Q
Amendment Flag	false
Document Period End Date	May 31, 2016
Document Fiscal Year Focus	2,017
Document Fiscal Period Focus	Q1
Trading Symbol	denr
Entity Central Index Key	1,435,387
Current Fiscal Year End Date	--02-28
Entity Filer Category	Smaller Reporting Company
Entity Common Stock, Shares Outstanding		140,189,501
Entity Current Reporting Status	Yes
Entity Voluntary Filers	No
Entity Well Known Seasoned Issuer	No

Consolidated Balance Sheets (Un

Consolidated Balance Sheets (Unaudited) - USD ($)	May 31, 2016	Feb. 29, 2016
Current Assets
Cash	$ 3,502,303	$ 15,895
Prepaid expenses	11,706	17,059
Total Current Assets	3,514,009	32,954
Oil and gas property - unproved (successful efforts method)	2,421,415	2,421,415
Total Assets	5,935,424	2,454,369
Current Liabilities
Accounts payable and accrued liabilities	290,305	97,277
Accounts payable- related parties	151,151	123,508
Other liabilities	12,827	13,623
Promissory notes-related parties	146,353	139,953
Promissory notes	542,294	542,294
Derivative liability	7,837,081	0
Total Current Liabilities	8,980,011	916,655
Convertible note payable, net of debt discount and deferred financing costs of $3,312,727 and $179,606. respectively at May 31,2016	7,667	0
Total Liabilities	8,987,678	916,655
Stockholders' Equity (Deficit)
Preferred Stock- 10,000,000 shares authorized, zero issued and outstanding	0	0
Common Stock - 500,000,000 shares authorized, $0.001 par value - 140,089,501 shares issued and outstanding as of May 31, 2016 and February 29, 2016	140,189	140,189
Additional paid in capital	3,952,947	3,952,947
Accumulated deficit	(7,149,339)	(2,543,592)
Accumulated other comprehensive income (loss)	3,949	(11,830)
Total Stockholders' Equity	(3,052,254)	1,537,714
Total Liabilities and Stockholders' Equity (Deficit)	$ 5,935,424	$ 2,454,369

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parenthetical) (Unaudited) - USD ($)	May 31, 2016	Feb. 29, 2016
Consolidated Balance Sheets (Unaudited) [Abstract]
Debt discount on convertible note payable	$ 3,312,727	$ 0
Deferred financing costs on convertible note payable	$ 179,606	$ 0
Preferred Stock, shares authorized (in Shares)	10,000,000	10,000,000
Preferred Stock, issued (in Shares)	0	0
Preferred Stock, outstanding (in Shares)	0	0
Common Stock, shares authorized (in Shares)	500,000,000	500,000,000
Common Stock, par value (in Dollars per Share)	$ 0.001	$ 0.001
Common Stock, shares issued (in Shares)	140,089,501	140,089,501
Common Stock, shares outstanding (in Shares)	140,089,501	140,089,501

Consolidated Statements of Expe

Consolidated Statements of Expenses and Other Comprehensive Income (Loss) (Unaudited) - USD ($)	3 Months Ended
	May 31, 2016	May 31, 2015
Expenses
General and administrative	$ 27,589	$ 25,616
Exploration costs	10,524	2,550
Professional fees	30,982	18,667
Rent	2,542	5,526
Travel	283	40,000
Total expenses	71,920	92,359
Other (Income) Expenses
Interest expense	16,449	5,343
Loss on derivative liability	4,517,081	0
Miscellaneous income	(52)	(16)
Foreign exchange loss/(gain)	349	(5,567)
Other (income) expenses	4,533,827	(240)
Net loss	(4,605,747)	(92,119)
Comprehensive loss
Net loss	(4,605,747)	(92,119)
Foreign currency translation adjustments	15,779	11,243
Total comprehensive loss	$ (4,589,968)	$ (80,876)
Net loss per share - basic and diluted (in Dollars per Share)	$ (0.03)	$ 0
Weighted average number of shares outstanding - basic and diluted (in Shares)	140,089,501	139,768,486

Consolidated Statements of Cash

Consolidated Statements of Cash Flows (Unaudited) - USD ($)	3 Months Ended
	May 31, 2016	May 31, 2015
Cash flows used in operating activities
Net loss	$ (4,605,747)	$ (92,119)
Adjustments to reconcile net loss to net Cash used in operating activities
Loan amortization	7,667	0
Change in derivative liability	4,517,081	0
Changes in assets and liabilities:
Prepaid expenses	5,354	5,076
Accounts payable - related party	27,643	(21,379)
Interest payable	7,768	4,300
Accounts payable and accrued liabilities	4,463	(41,916)
Net cash used in operating activities	(35,771)	(146,038)
Cash flows from financing activities
Proceeds from debenture	3,500,000	0
Common stock issued	0	200,000
Repayments on notes payable-related party	0	(50,000)
Proceeds from notes payable-related party	6,400	4,000
Net cash flows from financing activities	3,506,400	154,000
Foreign exchange effect on cash	15,779	11,244
Change in cash during the period	3,486,408	19,206
Cash beginning of the period	15,895	859
Cash end of the period	3,502,303	20,065
Supplemental disclosures
Interest paid in the period	0	0
Income taxes paid in the period	0	0
Noncash investing and financing activities
Deferred financing costs	180,000	0
Debt discount from beneficial conversion feature	$ 3,320,000	$ 0

Nature of Operations and Basis

Nature of Operations and Basis of Presentation	3 Months Ended
	May 31, 2016
Nature of Operations and Basis of Presentation [Abstract]
Nature of Operations and Basis of Presentation	1. Nature of Operations and Basis of Presentation The principal business of Discovery Energy, Inc. (the “Company”) is the proposed exploration and development of the 584,651 gross acres (the “Prospect”) in the State of South Australia covered by Petroleum Exploration License (PEL) 512 (the “License”). The Prospect involves a 100% working interest in the preceding acreage, which overlies portions of the Cooper and Eromanga basins. The Company has not presently determined whether the Prospect contains any crude oil and natural gas reserves that are economically recoverable. While the Company’s present focus is on the Prospect, the Company may consider the acquisition of other attractive oil and gas properties under the right circumstances. In May 2012, the Company incorporated a wholly-owned Australian subsidiary, Discovery Energy SA Ltd. (the “Subsidiary”) for purposes of acquiring the License. On May 25, 2016 the Subsidiary changed its status from a public company to private company (as those forms of entities are provided under applicable Australian law) and, accordingly changed its name to Discovery Energy SA Pty Ltd.

Summary of Significant Accounti

Summary of Significant Accounting Policies	3 Months Ended
	May 31, 2016
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 of the Company have been prepared in accordance with accounting principles generally accepted in the United States of America and the rules of the Securities and Exchange Commission, and should be read in conjunction with the audited financial statements and notes thereto contained in the Company’s February 29, 2016 Annual Report on Form 10-K filed with the SEC. In the opinion of management, all adjustments, consisting of normal recurring adjustments, necessary for a fair presentation of financial position and the results of operations for the interim periods presented have been reflected herein. The results of operations for interim periods are not necessarily indicative of the results to be expected for the full year. Notes to the financial statements, which would substantially duplicate the disclosure contained in the audited financial statements for the most recent fiscal year end February 29, 2016, as reported on Form 10-K, have been omitted. Fair Value Considerations The Company follows ASC 820, “ Fair Value Measurements and Disclosures There are three levels of inputs to fair value measurements - Level 1, meaning the use of quoted prices for identical instruments in active markets; Level 2, meaning the use of quoted prices for similar instruments in active markets or quoted prices for identical or similar instruments in markets that are not active or are directly or indirectly observable; and Level 3, meaning the use of unobservable inputs. The Company uses Level 1 inputs for its fair value measurements whenever there is an active market, with actual quotes, market prices, and observable inputs on the measurement date. The Company uses Level 2 inputs for fair value measurements whenever there are quoted prices for similar securities in an active market or quoted prices for identical securities in an inactive market. The Company uses observable market data whenever available. Derivative Liabilities The Company, in accordance with ASC 815-40-25 and ASC 815-10-15 Derivatives and Hedging and ASC 480-10-25 Liabilities-Distinguishing Liabilities from Equity, the embedded derivate associated with the convertible note payable and warrant are accounted for as liabilities during the term of the related note payable and warrant.

Going Concern

Going Concern	3 Months Ended
	May 31, 2016
Going Concern [Abstract]
Going Concern	3. Going Concern The accompanying financial statements have been prepared on a going concern basis, which implies the Company will continue to realize its assets and discharge its liabilities in the normal course of business. The Company has not generated revenues since inception and has never paid dividends and is unlikely to pay dividends or generate earnings in the immediate or foreseeable future. The continuation of the Company as a going concern is dependent upon the ability of the Company to obtain necessary equity or debt financing to continue operations, the successful development of the Prospect or one or more alternative oil and gas properties, and the attainment of profitable operations. As of May 31, 2016, the Company has not generated any revenues and has an accumulated loss of $7,149,339 since inception. These factors raise substantial doubt regarding the Company's ability to continue as a going concern. In May 2016, we secured $3.5 million in funding through a convertible debenture sale. We have an additional $1.5 million in convertible debentures that we are seeking to sell for short-term funding. Moreover, the purchaser of the $3.5 million convertible debentures has a right of first offer through the end of June 2017 to invest an additional $20.0 million in our company. These financial statements do not include any adjustments to the recoverability and classification of recorded asset amounts and classification of liabilities that might be necessary should the Company be unable to continue as a going concern.

Related Party Transactions

Related Party Transactions	3 Months Ended
	May 31, 2016
Related Party Transactions [Abstract]
Related Party Transactions	4. Related Party Transactions As of May 31 and February 29, 2016, the Company owed $151,151 and $123,508, respectively, to certain Company directors for reimbursement of expenses paid on behalf of the Company. In addition, as of May 31 and February 29, 2016, the Company owed $146,353 and $139,953, respectively, for promissory notes issued to various related parties. These amounts are unsecured, non-interest bearing and due on demand. During the three months ended May 31, 2016, notes totaling $6,400 were executed with two related parties as described in Note 6 below. Additionally, a related party payable of $9,100 was created when a director advanced cash to settle payables to a third party.

Oil and Gas Properties

Oil and Gas Properties	3 Months Ended
	May 31, 2016
Oil and Gas Properties [Abstract]
Oil and Gas Properties	5. Oil and Gas Properties On May 19, 2014, the Company received notice from the Government of South Australia that this government had issued certain modifications to the License and suspended the License for a period of six months. Such a suspension functions like an extension. Under the amended License, the Company will be required to drill 7 exploratory wells rather than 12, as originally required. These required wells must be drilled in years 3, 4, and 5 (2, 2, and 3 wells, respectively). The amount of required 2D seismic was also reduced to 100 kilometers (in year 3) from 250 kilometers (in year 2) but the total 3D seismic work guaranteed increased to 500 square kilometers from 400 square kilometers. However, the 3D seismic survey requirement is spread over years 2, 3 and 4 (100, 200 and 200 sq. km. respectively). Subsequent to this modification and suspension, the Company received two additional six-month suspensions, one in February 2015 and one in July 2015, and a one-year suspension in February 2016. In view of these modifications and suspensions, the Company’s remaining work commitment involves the following: * Year 2 ending April 27, 2017 - Conduct a new 3D seismic survey totaling at least 100 kilometers. * Year 3 ending April 27, 2018 - Acquire new 2D seismic data totaling at least 100 kilometers, acquire 3D seismic data totaling at least 200 square kilometers and drill two wells. * Year 4 ending April 27, 2019 - Acquire new 3D seismic data totaling at least 200 square kilometers and drill two wells. * Year 5 ending April 27, 2020 - Drill three wells

Notes Payable

Notes Payable	3 Months Ended
	May 31, 2016
Notes Payable [Abstract]
Notes Payable	6. Notes Payable Two promissory notes were issued on October 26, 2012 to Liberty Petroleum Corporation (“Liberty”) upon delivery of the License with an aggregate principal amount of $650,000. The original terms of the note were: (i) One note in the original principal amount of $500,000 was originally due on April 26, 2013. (ii) The other note in the original principal amount of $150,000 was originally due on July 26, 2013. (iii) Both notes accrued interest at a floating rate equal to the one-month term LIBOR rate, plus an additional 3%. Accrued interest of $46,765 and $42,065 is included in other liabilities as of May 31, 2016 and February 29, 2016, respectively These promissory notes had undergone a number of amendments, including extensions of the due dates. On September 26, 2013, these promissory notes were combined into a single consolidation promissory note (the “Consolidated Note”) in the original principal amount of $542,294, as some of the principal had been reduced and some interest had accrued. Effective May 5, 2016, the Company and Liberty amended the Consolidated Note so that all the outstanding principal of this note ($587,724) and interest hereafter accrues on such Note shall be due in a single balloon payment on July 20, 2016, and provided that on or prior to the Due Date of July 20, 2016, the Note can be paid in its entirety by the Company’s a) payment in cash of $300,000, plus the amount of accrued interest and b) issuance of 1,150,895 restricted shares of the Company’s common stock, which number of shares was determined by dividing $287,724 by a per-share price of $0.25. On April 20, 2016, the Company entered into an unsecured corporate demand note with William E. Begley, a related party. The note was in the amount of $1,800, and repayment can be demanded, with 5-days notice, at any time after the passage of 20 business days from the date of the note. If no demand is made on the note, the note becomes due and payable in full on its first anniversary. The note is non-interest bearing. On May 13, 2016, the Company entered into an unsecured corporate demand note with Keith Spickelmier, a related party. The note was in the amount of $4,600, and repayment can be demanded, with 5-days notice, at any time after the passage of 20 business days from the date of the note. If no demand is made on the note, the note becomes due and payable in full on its first anniversary. The note is non-interest bearing.

Convertible Note Payable

Convertible Note Payable	3 Months Ended
	May 31, 2016
Convertible Note Payable [Abstract]
Convertible Note Payable	7. Convertible Note Payable On May 27, 2016, the Company sold a $3.5 million senior secured convertible debenture to DEC Funding LLC (the “Debenture”). The Debenture is due on May 27, 2021 and bears interest at 8% per annum. The use of these proceeds is limited to the payment of our and the Debenture purchaser’s costs of the transaction (including legal fees), the funding of our 3D seismic survey with respect to our Prospect and the interpretation of such seismic survey, and the payment of our expenses associated with the seismic survey. The remainder of these proceeds may be used for general and administrative expenses with the Debenture purchaser’s consent. The conversion price for the Debentures is $0.16, subject to certain adjustments that are believed to be customary in transactions of this nature. Debentures are secured by virtually all of the Company’s assets owned directly or indirectly but for the License. Among other provisions, the sale transaction included warrants to purchase 13,125,000 shares of the Company’s common stock at $0.20 (the “Warrant”). The warrants have a three-year term. Further information regarding the details of this transaction is found in Form 8K filed with the Securities and Exchange Commission on June 3, 2016. The Company incurred legal and professional fees in the amount of $180,000 related to the sale transaction. These costs have been discounted as deferred financing costs. During the three months ended May 31, 2016, the Company recorded $394 in amortization expense related to the deferred financing costs. Related debt discount in the amount of $3,320,000 was recorded. During the three months ended May 31,2016, the Company recorded $7,273 in amortization expense related to the debt discount. The Debenture and the Warrant include a reset provision whereby the investor is entitled to reset the conversion price of the Debenture and the Warrant in the event that the Company issues securities priced below the conversion price of the Debenture or the Warrant. The Company has analyzed the reset provision of the Debenture and Warrant and calculated the fair market value of the ensuing derivative liability, as discussed in Note 8.

Derivative Liability

Derivative Liability	3 Months Ended
	May 31, 2016
Derivative Liability [Abstract]
Derivative Liability	8. Derivative Liability The debenture and related warrant issued by the Company contain a price reset provision (the Reset Provision) that gives rise to a derivative liability. The Company has measured its derivative liability at fair value and recognized the derivative value as a current liability and recorded the derivative value on its consolidated balance sheet. The derivative is valued primarily using a binomial latticed-based model based on unobservable inputs that are supported by little to no market activity. These inputs represent management’s best estimate of what market participants would use in pricing the liability at the measurement date and thus are classified as Level 3. Changes in the fair values of the derivative are recognized as earnings or losses in the current period. The fair values of derivative liability related to the Reset Provision contained within the debenture as of May 27, 2016, the date of issuance, and as of May 31, 2016 were estimated on the transaction dates and balance sheet dates under the following assumptions: May 27, Issuances / May 31, Shares of common stock issuable upon exercise of debt 21,875,000 - 21,875,000 Estimated market value of common stock on measurement date $ 0.26 $ - $ 0.26 Exercise price $ 0.16 $ - $ 0.16 Risk free interest rate 1.37 % - % 1.37 % Expected dividend yield 0.00 % 0.00 % 0.00 % Expected volatility 306.96 % - % 306.96 % Expected exercise term in years 5.000 0.00 4.992 The fair values of derivative liability related to the Reset Provision contained within the warrant as of May 27, 2016, the date of issuance, and as of May 31, 2016 were estimated on the transaction dates and balance sheet dates under the following assumptions: May 27, Issuances / May 31, Shares of common stock issuable upon exercise of warrant 13,125,000 - 13,125,000 Estimated market value of common stock on measurement date $ 0.26 $ - $ 0.26 Exercise price $ 0.20 $ - $ 0.20 Risk free interest rate 1.37 % - % 1.37 % Expected dividend yield 0.00 % 0.00 % 0.00 % Expected volatility 306.96 % - % 306.96 % Expected exercise term in years 3.000 0.00 2.992 The changes in fair values of the derivative liabilities related to the debenture and warrant for the three months ended May 31, 2016 are summarized as follows: Fair value of derivative liabilities at inceptio’n (May 27, 2016) $ 4,522,016 Discount on debenture 3,320,000 Conversion of derivative liabilities - Change in fair value of derivative liabilities (4,935 ) Fair value of derivative liabilities at May 31, 2016 $ 7,837,081 The Company recognized a net loss on derivative liability of $4,517,081during the three months ended May 31, 2016.

Subsequent Events

Subsequent Events	3 Months Ended
	May 31, 2016
Subsequent Events [Abstract]
Subsequent Events	9 . Subsequent Events Effective July 11, 2016, the Subsidiary, entered into a seismic services agreement (the "Seismic Agreement") with Terrex Pty Ltd. (“Terrex”). The material terms, provisions and conditions of the Seismic Agreement are as follows: * Per the terms of the Seismic Agreement, Terrex is to conduct a 3D seismic survey (the “Survey”) comprised of from approximately 175 to approximately 200 square kilometers on the southwest portion of the Prospect. The Company believes that after regulatory approvals have been acquired and an archeological review of the survey area has been completed Terrex will start the 3D seismic fieldwork on or about August 10, 2016. It is expected the field data acquisition will require about 2 months to complete, after which the data will then be processed and interpreted by other contractors. Once this Survey project has been completed and the results reported to the South Australian government, the Company’s work commitment for the second year of the License and a portion of the Company’s work commitment for the third year will have been satisfied. * For Terrex’s services, the Company will pay a “turnkey price” of approximately AU$3,057,000 (approximately US$2,287,000 based on the average exchange rate for the five business days preceding July 12, 2016). The Company expects that the Survey, in combinations with the expenses associated with required pre- and post-field work, will largely deplete the funds raised in the Company’s recent sale and issuance of its Senior Secured Convertible Debenture due May 27, 2021 having an original principal amount of US$3,500,000. Effective July 16, 2016, a director’s demand note in the amount of $10,000 was amended to extend the term to July 16, 2017.

Summary of Significant Accoun15

Summary of Significant Accounting Policies (Policies)	3 Months Ended
	May 31, 2016
Summary of Significant Accounting Policies [Abstract]
Basis of Presentation	Basis of Presentation The accompanying unaudited interim financial statements of the Company have been prepared in accordance with accounting principles generally accepted in the United States of America and the rules of the Securities and Exchange Commission, and should be read in conjunction with the audited financial statements and notes thereto contained in the Company’s February 29, 2016 Annual Report on Form 10-K filed with the SEC. In the opinion of management, all adjustments, consisting of normal recurring adjustments, necessary for a fair presentation of financial position and the results of operations for the interim periods presented have been reflected herein. The results of operations for interim periods are not necessarily indicative of the results to be expected for the full year. Notes to the financial statements, which would substantially duplicate the disclosure contained in the audited financial statements for the most recent fiscal year end February 29, 2016, as reported on Form 10-K, have been omitted.
Fair Value Considerations	Fair Value Considerations The Company follows ASC 820, “ Fair Value Measurements and Disclosures There are three levels of inputs to fair value measurements - Level 1, meaning the use of quoted prices for identical instruments in active markets; Level 2, meaning the use of quoted prices for similar instruments in active markets or quoted prices for identical or similar instruments in markets that are not active or are directly or indirectly observable; and Level 3, meaning the use of unobservable inputs. The Company uses Level 1 inputs for its fair value measurements whenever there is an active market, with actual quotes, market prices, and observable inputs on the measurement date. The Company uses Level 2 inputs for fair value measurements whenever there are quoted prices for similar securities in an active market or quoted prices for identical securities in an inactive market. The Company uses observable market data whenever available.
Derivative Liabilities	Derivative Liabilities The Company, in accordance with ASC 815-40-25 and ASC 815-10-15 Derivatives and Hedging and ASC 480-10-25 Liabilities-Distinguishing Liabilities from Equity, the embedded derivate associated with the convertible note payable and warrant are accounted for as liabilities during the term of the related note payable and warrant.

Derivative Liability (Tables)

Derivative Liability (Tables)	3 Months Ended
	May 31, 2016
Derivative Liability [Abstract]
Derviative Liability Valuation Assumptions	The fair values of derivative liability related to the Reset Provision contained within the debenture as of May 27, 2016, the date of issuance, and as of May 31, 2016 were estimated on the transaction dates and balance sheet dates under the following assumptions: May 27, Issuances / May 31, Shares of common stock issuable upon exercise of debt 21,875,000 - 21,875,000 Estimated market value of common stock on measurement date $ 0.26 $ - $ 0.26 Exercise price $ 0.16 $ - $ 0.16 Risk free interest rate 1.37 % - % 1.37 % Expected dividend yield 0.00 % 0.00 % 0.00 % Expected volatility 306.96 % - % 306.96 % Expected exercise term in years 5.000 0.00 4.992 The fair values of derivative liability related to the Reset Provision contained within the warrant as of May 27, 2016, the date of issuance, and as of May 31, 2016 were estimated on the transaction dates and balance sheet dates under the following assumptions: May 27, Issuances / May 31, Shares of common stock issuable upon exercise of warrant 13,125,000 - 13,125,000 Estimated market value of common stock on measurement date $ 0.26 $ - $ 0.26 Exercise price $ 0.20 $ - $ 0.20 Risk free interest rate 1.37 % - % 1.37 % Expected dividend yield 0.00 % 0.00 % 0.00 % Expected volatility 306.96 % - % 306.96 % Expected exercise term in years 3.000 0.00 2.992
Derivative Liability Rollforward	The changes in fair values of the derivative liabilities related to the debenture and warrant for the three months ended May 31, 2016 are summarized as follows: Fair value of derivative liabilities at inceptio’n (May 27, 2016) $ 4,522,016 Discount on debenture 3,320,000 Conversion of derivative liabilities - Change in fair value of derivative liabilities (4,935 ) Fair value of derivative liabilities at May 31, 2016 $ 7,837,081

Nature of Operations and Basi17

Nature of Operations and Basis of Presentation (Narrative) (Details)	3 Months Ended
	May 31, 2016a
Nature of Operations and Basis of Presentation [Abstract]
Principal business, proposed exploration and development area (in Acreage)	584,651
Percent working interest of preceeding acreas owned by company (in Percent)	100.00%

Going Concern (Narrative) (Deta

Going Concern (Narrative) (Details) - USD ($)	1 Months Ended	3 Months Ended
	May 31, 2016	May 31, 2016	May 31, 2015	Feb. 29, 2016
Going Concern [Abstract]
Accumulated loss since inception	$ 7,149,339	$ 7,149,339		$ 2,543,592
Proceeds from sale of convertible debenture	3,500,000	3,500,000	$ 0
Value of additional convertible debenture offered for sale	1,500,000	1,500,000
Amount of additional investment holder of $3.5 investor has the right to make	$ 20,000,000	$ 20,000,000

Related Party Transactions (Nar

Related Party Transactions (Narrative) (Details) - USD ($)	May 31, 2016	Feb. 29, 2016
Related Party Transactions [Abstract]
Accounts payable- related parties	$ 151,151	$ 123,508
Promissory notes-related parties	$ 146,353	$ 139,953

Oil and Gas Properties (Narrati

Oil and Gas Properties (Narrative) (Details) - $ / shares	May 19, 2014	Jan. 31, 2016	Jul. 31, 2015	Feb. 28, 2015	May 31, 2016
Oil And Gas Delivery Commitments And Contracts [Line Items]
Period of suspension of the License subsequent to certain modifications (in Duration)		1 year	6 months	6 months
Original License Agreement [Member]
Oil And Gas Delivery Commitments And Contracts [Line Items]
Period of suspension of the License subsequent to certain modifications (in Duration)	6 months
Number of exploratory wells required to be drilled under license (in Wells)	12
3D seismic survey work required to be completed (in Square Kilometers)	400
Original License Agreement [Member] | Year 2 [Member]
Oil And Gas Delivery Commitments And Contracts [Line Items]
2D seismic survey work required to be completed (in Kilometers)	250
License Amendment [Member]
Oil And Gas Delivery Commitments And Contracts [Line Items]
Number of exploratory wells required to be drilled under license (in Wells)					7
3D seismic survey work required to be completed (in Square Kilometers)					500
License Amendment [Member] | Year 2 [Member]
Oil And Gas Delivery Commitments And Contracts [Line Items]
3D seismic survey work required to be completed (in Square Kilometers)					100
License Amendment [Member] | Year 3 [Member]
Oil And Gas Delivery Commitments And Contracts [Line Items]
Number of exploratory wells required to be drilled under license (in Wells)					2
2D seismic survey work required to be completed (in Kilometers)					100
3D seismic survey work required to be completed (in Square Kilometers)					200
License Amendment [Member] | Year 4 [Member]
Oil And Gas Delivery Commitments And Contracts [Line Items]
Number of exploratory wells required to be drilled under license (in Wells)					2
3D seismic survey work required to be completed (in Square Kilometers)					200
License Amendment [Member] | Year 5 [Member]
Oil And Gas Delivery Commitments And Contracts [Line Items]
Number of exploratory wells required to be drilled under license (in Wells)					3

Notes Payable (Narrative) (Deta

Notes Payable (Narrative) (Details)	Oct. 26, 2012USD ($)$ / shares	May 31, 2016USD ($)$ / sharesshares	May 13, 2016USD ($)	Apr. 20, 2016USD ($)	Feb. 29, 2016USD ($)
Aggregate Liberty Notes [Member]
Debt Instrument [Line Items]
Number of notes issued (in Integer) | $ / shares	2
Notes payable	$ 650,000
$500,000 Liberty Note [Member]
Debt Instrument [Line Items]
Notes payable	$ 500,000
Debt instrument, maturity date (Date)	Apr. 26, 2013
Debt instrument, variable rate basis (in Description)	LIBOR
Debt instrument, basis spread on variable rate (in Percent)	3.00%
$150,000 Liberty Note [Member]
Debt Instrument [Line Items]
Notes payable	$ 150,000
Debt instrument, maturity date (Date)	Jul. 26, 2013
Debt instrument, variable rate basis (in Description)	LIBOR
Debt instrument, basis spread on variable rate (in Percent)	3.00%
Liberty Notes Combined in Debt Modification [Member]
Debt Instrument [Line Items]
Notes payable		$ 587,724
Accrued interest included in accounts payable and accrued liabilities		46,765			$ 42,065
Cash payment due on note at maturity		$ 300,000
Restricted share issuance payment due on note at maturity (in Shares) | shares		1,150,895
Note principal to be paid by restricted share issuance		$ 287,724
Per share price of restricted shares issuable for note payment (in Dollars per Share) | $ / shares		$ .25
CFO Begley $1,800 Note [Member]
Debt Instrument [Line Items]
Related party demand note payable on five days' notice after twenty days from issuance, face amount				$ 1,800
BOD Spickelmier $4,600 Note [Member]
Debt Instrument [Line Items]
Related party demand note payable on five days' notice after twenty days from issuance, face amount			$ 4,600

Convertible Note Payable (Narra

Convertible Note Payable (Narrative) (Details) - USD ($)	3 Months Ended
	May 31, 2016	May 31, 2015	May 27, 2016
Convertible Note Payable [Abstract]
Senior secured convertible debenture sold			$ 3,500,000
Debenture interest rate			8.00%
Debenture conversion price (in Dollars per Unit)			$ 0.16
Number of common shares purchasable with warrants issued with debenture (in Shares)			13,125,000
Price per share of comon stock purchasable with warrants issued with debenture (in Dollars per Share)	$ 0.20
Warrant term (in Duration)	3 years
Legal and professional fees incurred with convertible debt issuance	$ 180,000	$ 0
Amortization of deferred financing costs	394
Debt discount from beneficial conversion feature	3,320,000	$ 0
Amortization of debt discount	$ 7,273

Derivative Liability (Schedule

Derivative Liability (Schedule of Derivative Liability Valuation) (Details) - Level 3 - Unobservable Inputs [Member] - $ / shares	May 31, 2016	May 31, 2016	May 27, 2016
Debenture [Member]
Derivative Liability Valuation [Line Items]
Shares of common stock issuable upon exercise (in Shares)		21,875,000	21,875,000
Estimated market value of common stock on measurement date (in Dollars per Share)	$ .26	$ .26	$ .26
Exercise price (in Dollars per Share)	$ .16	$ .16	$ .16
Risk free interest rate (in Percent)		1.37%	1.37%
Expected dividend yield (in Percent)		0.00%	0.00%
Expected volatility (in Percent)		306.96%	306.96%
Expected exercise term in years (in Duration)		4 years 11 months 28 days	5 years
Issuances / changes in Shares of common stock issuable upon exercise (in Shares)	0
Issuances / changes in estimated market value of common stock on measurement date (in Dollars per Share)	$ 0
Issuances / changes in exercise price (in Dollars per Share)	$ 0
Issuances / changes in risk free interest rate (in Percent)	0.00%
Issuances / changes in expected dividend yield (in Percent)	0.00%
Issuances / changes in expected volatility (in Percent)	0.00%
Issuances / changes in expected exercise term in years (in Duration)	0 years
Warrant [Member]
Derivative Liability Valuation [Line Items]
Shares of common stock issuable upon exercise (in Shares)		13,125,000	13,125,000
Estimated market value of common stock on measurement date (in Dollars per Share)	$ .26	$ .26	$ .26
Exercise price (in Dollars per Share)	$ .20	$ .20	$ .20
Risk free interest rate (in Percent)		1.37%	1.37%
Expected dividend yield (in Percent)		0.00%	0.00%
Expected volatility (in Percent)		306.96%	306.96%
Expected exercise term in years (in Duration)		2 years 11 months 28 days	3 years
Issuances / changes in Shares of common stock issuable upon exercise (in Shares)	0
Issuances / changes in estimated market value of common stock on measurement date (in Dollars per Share)	$ 0
Issuances / changes in exercise price (in Dollars per Share)	$ 0
Issuances / changes in risk free interest rate (in Percent)	0.00%
Issuances / changes in expected dividend yield (in Percent)	0.00%
Issuances / changes in expected volatility (in Percent)	0.00%
Issuances / changes in expected exercise term in years (in Duration)	0 years

DerivativeLiability (Schedule o

DerivativeLiability (Schedule of Derivative Liability Rollforward) (Details) - USD ($)	May 31, 2016	May 27, 2016	Feb. 29, 2016
Derivative Liability [Abstract]
Derivative liabilities	$ 7,837,081	$ 4,522,016	$ 0
Discount on debenture	3,320,000
Conversion of derivative liabilities	0
Change in fair value of derivative liabilities	$ (4,935)

Subsequent Events (Narrative) (

Subsequent Events (Narrative) (Details)	Jul. 11, 2016USD ($)
Subsequent Events [Abstract]
Area of 3D seismic survey outsourced to third party, minimum (in Square Kilometers)	175
Area of 3D seismic survey outsourced to third party, maximum (in Square Kilometers)	200
Expected term of 3D seismic survey outsourced (in Duration)	2 months
Approximate cost payable to third party for outsourced 3D seismic work (in Australian Dollars)	$ 3,057,000
Approximate cost payable to third party for outsourced 3D seismic work (in US Dollars)	2,287,000
Convertible note payable proceeds expected to be depleted by payment for 3D seismic work	3,500,000
Amount of related party note payable to Board Chair for which the due date was extended to July 16, 2017	$ 10,000