Virtus Oil & Gas (CURG) 10-Q 2 Apr 15 2015 Q1 Quarterly report Financial data

Document_and_Entity_Informatio

Document and Entity Information	3 Months Ended
	Feb. 28, 2015	Apr. 14, 2015
Document And Entity Information
Entity Registrant Name	Virtus Oil & Gas Corp.
Document Type	10-Q
Document Period End Date	28-Feb-15
Amendment Flag	FALSE
Entity Central Index Key	1478725
Current Fiscal Year End Date	-19
Entity Common Stock, Shares Outstanding		50,794,920
Entity Filer Category	Smaller Reporting Company
Entity Current Reporting Status	Yes
Entity Voluntary Filers	No
Entity Well-known Seasoned Issuer	No
Document Fiscal Year Focus	2015
Document Fiscal Period Focus	Q1

Condensed_Balance_Sheets

Condensed Balance Sheets (USD $)	Feb. 28, 2015	Nov. 30, 2014
Current assets:
Cash	$0	$175,869
Total current assets	0	175,869
Property and equipment, net	2,702	2,873
Oil and gas properties, net	706,717	659,331
Total assets	709,419	838,073
Current liabilities:
Accounts payable and accrued expenses	509,113	346,398
Total current liabilities	509,113	346,398
Commitments
Stockholders' equity (deficit):
Common stock, $0.001 par value, 150,000,000 shares authorized 50,794,920 and 50,110,064 shares issued and outstanding at February 28, 2015 and November 30, 2014, respectively	50,795	50,110
Additional paid-in capital	3,520,249	3,025,102
Stock subscription payable	60,000	310,000
Accumulated deficit	-3,430,738	-2,893,537
Total stockholders' equity	200,306	491,675
Total liabilities and stockholders' equity	$709,419	$838,073

Condensed_Balance_Sheets_Paren

Condensed Balance Sheets (Parenthetical) (USD $)	Feb. 28, 2015	Nov. 30, 2014
Statement of Financial Position [Abstract]
Common Stock, Par Value	$0.00	$0.00
Common Stock, Shares Authorized	150,000,000	150,000,000
Common Stock, Shares Issued	50,794,920	50,110,064
Common Stock, Shares Outstanding	50,794,920	50,110,064

Condensed_Statements_of_Operat

Condensed Statements of Operations (USD $)	3 Months Ended
	Feb. 28, 2015	Feb. 28, 2014
Income Statement [Abstract]
Revenue	$0	$0
Operating expenses:
General and administrative	433,672	651,633
Professional Fees	103,529	46,344
Total operating expenses	537,201	697,977
Net operating loss	-537,201	-697,977
Other income (expense):
Interest expense	0	-2,362
Total other income (expense)	0	-2,362
Net loss	($537,201)	($700,339)
Weighted average number of common shares outstanding - basic and fully diluted	50,310,337	47,979,775
Net loss per share - basic and fully diluted	($0.01)	($0.01)

Condensed_Statements_of_Cash_F

Condensed Statements of Cash Flows (USD $)	3 Months Ended
	Feb. 28, 2015	Feb. 28, 2014
CASH FLOWS FROM OPERATING ACTIVITIES
Net loss	($537,201)	($700,339)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation expense	171	72
Share based compensation expense	245,832	566,667
Decrease (increase) in assets:
Prepaid expenses	0	374
Increase (decrease) in liabilities:
Accounts payable	162,715	-33,664
Accrued expenses	0	24,675
Accrued expenses, related party	0	2,362
Net cash used in operating activities	-128,483	-139,853
CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of oil and gas properties	-47,386	-97,734
Net cash used in investing activities	-47,386	-97,734
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from sale of common stock	0	300,000
Net cash provided by financing activities	0	300,000
NET CHANGE IN CASH	-175,869	62,413
CASH AT BEGINNING OF PERIOD	175,869	486
CASH AT END OF PERIOD	0	62,899
SUPPLEMENTAL INFORMATION:
Interest paid	0	0
Income taxes paid	$0	$0

1_Nature_of_Business_and_Signi

1. Nature of Business and Significant Accounting Policies	3 Months Ended
	Feb. 28, 2015
Accounting Policies [Abstract]
Nature of Business and Significant Accounting Policies	Nature of Business
	Virtus Oil and Gas Corp. (“the Company”) was incorporated in the state of Nevada on September 30, 2009 (“Inception”). The Company was originally formed as Curry Gold Corp to become an operator and franchisor of fast-casual food catering vans that capitalize on the growing trend of food to go (convenience food) with its Currywurst product, a product native to Germany, and market it through Switzerland and into major metropolitan US cities. On July 17, 2012, however, the Company abandoned its plans to enter into the catering van business and is now an oil and gas exploration and production company.
	We are an oil and gas exploration company and have not significantly commenced our planned principal operations. Our operations to date have been devoted primarily to startup and development activities, which include forming our entity, developing our business plan, registering with the SEC and listing our Common Stock on the OTCBB exchange under the symbol, “VOIL”. In October 2013, the Company acquired an interest in an oil and gas property and is focusing its efforts on developing this property and identifying additional properties in which to invest.
	Our properties are located in Iron County in southern Utah.
	Basis of Presentation
	The financial statements included herein, presented in accordance with United States generally accepted accounting principles and is stated in US currency have been prepared by the Company pursuant to the rules and regulations of the SEC and should be read in conjunction with the audited financial statements and notes thereto contained in the Company's annual report for the year ended November 30, 2014 filed with the SEC on Form 10-K. 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 ended November 30, 2014 as reported in form 10-K have been omitted.
	The Company has adopted a fiscal year end of November 30.
	Use of Estimates
	The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, and the disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.
	Cash and Cash Equivalents
	We maintain cash balances in non-interest-bearing accounts, which do not currently exceed federally insured limits. For the purpose of the statements of cash flows, all highly liquid investments with an original maturity of three months or less are considered to be cash equivalents.
	Stock Based Compensation
	Stock-based awards to non-employees are accounted for using the fair value method.
	The Company adopted provisions which require that we measure and recognize compensation expense at an amount equal to the fair value of share-based payments granted under compensation arrangements.
	The Company has adopted the “modified prospective” method, which results in no restatement of prior period amounts. This method would apply to all awards granted or modified after the date of adoption. In addition, compensation expense must be recognized for any unvested stock option awards outstanding as of the date of adoption on a straight-line basis over the remaining vesting period. The Company will calculate the fair value of options using a Black-Scholes option pricing model. The Company does not currently have any outstanding options subject to future vesting therefore no charge is required for the periods presented. Our method also requires the benefits of tax deductions in excess of recognized compensation expense to be reported in the Statement of Cash Flows as a financing cash inflow rather than an operating cash inflow. In addition, our method required a modification to the Company’s calculation of the dilutive effect of stock option awards on earnings per share. For companies that are using the “modified prospective” method, disclosure of pro forma information for periods prior to adoption must continue to be made.
	Accounting for Oil and Gas Properties
	The Company utilizes the full cost method to account for its investment in oil and gas properties.  Accordingly, all costs associated with acquisition, exploration and development of oil and gas reserves, including such costs as leasehold acquisition costs, professional fees incurred for the lease acquisitions, capitalized interest costs relating to properties, geological expenditures, and tangible and intangible development costs (including direct internal costs), are capitalized into the full cost pool. When the Company commences production from established proven oil and gas reserves, capitalized costs, including estimated future costs to develop the reserves and estimated abandonment costs, will be depleted on the units-of-production  method using estimates of proven reserves. Investments in unproved properties and major development projects, including capitalized interest if any, are not depleted until proven reserves associated with the projects can be determined.  If the future exploration of unproven properties is determined to be uneconomical, the amount of such properties is added to the capital costs to be depleted.  As of February 28, 2015 and November 30, 2014, the Company's oil and gas properties consisted of capitalized acquisition and exploration costs for unproved mineral rights.
	Fair Value of Financial Instruments
	Financial instruments consist principally of cash, trade and related party payables and accrued liabilities. The carrying amounts of such financial instruments in the accompanying balance sheets approximate their fair values due to their relatively short-term nature. It is management’s opinion that the Company is not exposed to significant currency or credit risks arising from these financial instruments.
	Basic and Diluted Loss per Share
	The basic net loss per common share is computed by dividing the net loss by the weighted average number of common shares outstanding. Diluted net loss per common share is computed by dividing the net loss adjusted on an “as if converted” basis, by the weighted average number of common shares outstanding plus potential dilutive securities. For the periods presented, potential dilutive securities had an anti-dilutive effect and were not included in the calculation of diluted net loss per common share.
	Recent Accounting Pronouncements
	Management does not anticipate that the recently issued but not yet effective accounting pronouncements will materially impact the Company’s financial condition.

2_Going_Concern

2. Going Concern	3 Months Ended
	Feb. 28, 2015
Risks and Uncertainties [Abstract]
Going Concern	As shown in the accompanying financial statements, the Company has no revenues and has incurred continuous losses from operations, had an accumulated deficit of $3,430,738 and a working capital deficit of $509,113 at February 28, 2015. These factors raise substantial doubt about the Company’s ability to continue as a going concern. Management is actively pursuing new ventures to increase revenues. In addition, the Company is currently seeking additional sources of capital to fund short term operations. The Company, however, is dependent upon its ability to secure equity and/or debt financing and there are no assurances that the Company will be successful, therefore, without sufficient financing it would be unlikely for the Company to continue as a going concern.
	The financial statements do not include any adjustments that might result from the outcome of any uncertainty as to the Company’s ability to continue as a going concern. The financial statements also do not include any adjustments relating to the recoverability and classification of recorded asset amounts, or amounts and classifications of liabilities that might be necessary should the Company be unable to continue as a going concern.

3_Related_Party

3. Related Party	3 Months Ended
	Feb. 28, 2015
Related Party Transactions [Abstract]
Related Party	On August 1, 2013, the Company entered into an engagement letter with Clear Financial Solutions, Inc., a Texas corporation (Clear Financial). On December 5, 2013, the Company and Clear Financial entered into Amendment No. 1 to Engagement Letter. Under the engagement letter and the amendment (collectively, the “Engagement Letter”) Clear Financial will provide certain financial consulting services to the Company and Mr. Steven M. Plumb, founder and President of Clear Financial, will serve as the Chief Financial Officer of the Company. Clear Financial will, among other things, prepare and review the Company’s financial statements, oversee internal accounting controls and provide advice on generally accepted accounting principles. In addition, As compensation for the services provided, the Company will pay Clear Financial a fee of $4,500 per month and has agreed to issue up to 1,000,000 shares of the Company’s common stock, par value $0.001 per share (the “Common Stock”), to Mr. Plumb. The Engagement Letter has an initial term of one year and will automatically renew for successive one-year periods until terminated by either party upon 60 days’ written notice prior to the end of the then current term. Clear Financial was paid $15,000 for Mr. Plumb’s services during the period ended February 28, 2015. In addition, in February 2015, the Company issued 500,000 shares of the Company’s common stock to Mr. Plumb, having a fair market value of $400,000 on the date of grant, which the Company recorded $366,667 as compensation expense during the year ended November 30, 2014. The Company recognized the remaining $33,333 in compensation expense during the three months ended February 28, 2015.
	The Engagement Letter further provides that Clear Financial may from time to time bring oil and gas investment opportunities to the Company’s attention. Pursuant to the Engagement Letter, the Company will assign a 1% carried interest to each of Mr. Plumb and/or Mr. Jerry Walters, a principal of Clear Financial, with respect to each oil and gas investment opportunity that Messrs. Plumb and/or Walters bring to the Company’s attention and in which the Company invests.
	On May 13, 2014, the Company appointed Rupert Ireland to serve as President, Chief Executive Officer, Secretary and Treasurer of the Company, effective immediately. In connection with Mr. Ireland’s appointment as President and Chief Executive Officer, the Company entered into an Employment Agreement, dated May 13, 2014, with Mr. Ireland. Pursuant to the Employment Agreement, Mr. Ireland will be paid a base salary of $120,000 per year and a signing bonus of $5,000. Mr. Ireland will also be entitled to receive up to 3,000,000 shares of the Company’s common stock, $0.001 par value per share (“Common Stock”), to be issued in increments of 1,000,000 shares on May 13 in 2015, 2016 and 2017, if he continues to be employed. The Employment Agreement has an initial term of three years and will automatically renew for successive one-year periods until earlier terminated. The Employment Agreement may be terminated (i) at any time by the Company for “cause,” (ii) upon no less than 60 days’ written notice by either party for any reason, or (iii) upon no less than 30 days’ written notice by either party at the end of the original 3-year term or any renewal term. The Employment Agreement also terminates immediately upon Mr. Ireland’s death or disability.
	If Mr. Ireland’s employment is terminated for “cause” by the Company, or if he voluntarily resigns, then he will forfeit any shares of Common Stock that have not yet been issued by the Company as of the date of such termination or resignation. If Mr. Ireland’s employment is terminated for any other reason, he will be entitled to receive the full 3,000,000 shares of Common Stock. The Employment Agreement defines “cause” as the willful and continued failure by Mr. Ireland to perform his duties, the conviction of a felony, or any other material conduct that is contrary to the best interests of the Company or adversely affects the reputation of the Company.
	The fair market value of Mr. Ireland’s stock award was $2,550,000 on the date of grant. The Company is recognizing $70,833 per month in compensation related expense. The Company recognized $212,499 in expense related to Mr. Ireland’s stock grant during the three months ended February 28, 2015.

4_Oil_and_Gas_Properties

4. Oil and Gas Properties	3 Months Ended
	Feb. 28, 2015
Extractive Industries [Abstract]
6. Oil and Gas Properties	Oil and gas properties consist of the following at February 28, 2015 and November 30, 2014, respectively:
		February 28,			November 30,
		2015			2014
	Oil and gas properties:
	Beaver County, Utah Prospect	$	30,000		$	30,000
	Iron County, Utah Prospect		706,717			659,331
	Total oil and gas properties		736,717			689,331
	Less impairment		(30,000	)		(30,000	)
	Oil and gas properties, net	$	706,717		$	659,331
	Tidewater Agreement
	On August 19, 2014, Virtus Oil & Gas Corp. completed the acquisition of oil and gas leases issued by the U.S. Bureau of Land Management (the “BLM”) covering approximately 36,787 acres in Iron County, Utah (the “Tidewater Leases”) pursuant to a letter agreement entered into with Tidewater Oil & Gas Company, LLC (“Tidewater”) as of November 13, 2013 (as amended, the “Tidewater Agreement”).  The acreage subject to the Tidewater Leases is located in an area known as the Parowan Prospect in the Central Utah Overthrust region of southwestern Utah. Virtus acquired an 87.5% working interest and an 80% net revenue interest in the Leases.
	The aggregate purchase price of the Leases was $290,000, which was paid in installments beginning in December 2013. Virtus made the final payment of the purchase price on August 1, 2014, and thereafter the Company and Tidewater subsequently prepared and executed the appropriate assignments and other forms required by the BLM and the county clerk to reflect the assignment of the Leases from Tidewater to Virtus. Tidewater’s sale of the leases was subject to the approval of the U.S. District Court for the District of Colorado (the “Bankruptcy Court”), which is presiding over Tidewater’s Chapter 11 bankruptcy proceedings. The Bankruptcy Court approved the sale of the leases on December 11, 2013.
	The Tidewater Agreement contemplates the drilling of an initial 12,000 foot vertical test well in the Jurassic-Navajo, Permian-Kaibab formation on the leases. Although Tidewater will retain a 12.5% working interest in the leases, the Company has agreed to pay 100% of the cost of drilling and completing this test well, which is estimated to be approximately $2.5 million. The Company has agreed to pre-pay such costs at least 30 days prior to the spud date, which is expected to be no later than February 3, 2015. However, the Company and Tidewater extended the date to September 1, 2015, by a First Amendment to Letter Agreement dated May 6, 2014. If the Company fails to prepay such costs, it will forfeit its interests in the oil and gas leases and Tidewater will retain the purchase price.
	During the three months ended February 28, 2015, the Company made payments of $37,386 on expiring leases covered by the Tidewater Agreement, $10,000 for a survey for a drilling location, for a total of $47,386.
	TJBB Agreement
	On September 22, 2014, the Company, made the last payment ($75,000) required for the acquisition of BLM oil and gas leases covering approximately 18,690.50 acres in Iron County, Utah (the “TJBB Leases”) pursuant to a letter agreement with Tom Johnson and Bill Berryman (“TJBB”), dated May 6, 2014 (the “TJBB Agreement”). The total purchase price for the TJBB Leases was $168,215. The acreage subject to the TJBB Leases is also located in an area known as the Parowan Prospect in the Central Utah Overthrust region of southwestern Utah.
	Pursuant to the TJBB Agreement, the purchase price for the leases was $168,215, which was paid in installments from May through September of 2014. The Company acquired an 87.5% working interest and an 80% net revenue interest in the TJBB Leases. TJBB retained a 12.5% working interest in the TJBB Leases, although the Company agreed to pay 100% of the cost of drilling and completing a 12,000 foot vertical test well in the Jurassic-Navajo, Permian-Kaibab formation by September 1, 2015. The Company’s requirement to drill the initial test well is contained in both the Tidewater Agreement and the TJBB Agreement, and by drilling one well in the noted formation, the Company believes it will have satisfied its initial test well drilling obligation under each of those agreements. If the Company fails to drill and complete the initial test well in the Jurassic-Navajo, Permian-Kaibab formation by the deadline under the TJBB Agreement, the Company will forfeit its interest in the leases covered by both the TJBB Agreement and the Tidewater Agreement.
	Pioneer Agreement
	On October 19, 2013, the Company entered into a Purchase Agreement with Pioneer Oil and Gas, pursuant to which the Company agreed to purchase two separate oil and gas leases issued by the BLM covering approximately 4,150 acres in Beaver County, Utah, for an aggregate purchase price of $460,000. The Company made an initial payment of $30,000 to Seller on October 25, 2013, but did not make any subsequent payments because it chose not to pursue development of those leases. On December 23, 2013, the Company delivered written notice to Seller of the Company’s intention to terminate the purchase agreement. As a result, the agreement was terminated by seller in December 2013, and the Company forfeited its initial payment and any rights to the subject leases.
	Seismic Exchange
	On July 1, 2014, the Company engaged Seismic Exchange, Inc., a Louisiana corporation (“SEI”), to provide certain two-dimensional seismic data covering approximately 47.44 square miles for an aggregate purchase price of $98,434. The seismic data includes geophysical and geological information along the Parowan Prospect in Iron County, Utah, where the Company had acquired its working interest in oil and gas leases covering an aggregate 55,477.50 acres. The License Agreement has a term of seven years from the effective date of June 12, 2014, subject to earlier termination by SEI upon a material breach by the Company. The term of the Supplemental Agreement attached to the License Agreement will end 20 years after the effective date. The seismic data acquired from SEI is intended to provide the Company with a greater understanding of the subsurface geology and aid its geologists in selecting the optimal location to drill its first well. The Company has had the data reprocessed and integrated with its existing seismic data to outline potential drilling prospects. The Company has selected a drilling location for the first well that it expects to drill in the Parowan Prospect and has applied for a permit to drill this well.

5_Stockholders_Equity

5. Stockholders' Equity	3 Months Ended
	Feb. 28, 2015
Equity [Abstract]
Stockholders' Equity	The Company has authorized 150,000,000 shares of $0.001 par value common stock. The Company had 50,794,920 and 50,110,064 shares issued and outstanding at February 28, 2015 and November 30, 2014, respectively.
	Stock Compensation
	The Company has stock based compensation agreements with its senior executives, Rupert Ireland, Brett Murray and Steven Plumb. During the three months ended February 28, 2015, the Company recognized $212,500, $115,102 and $33,333, respectively, as compensation to each executive. Of the total compensation expense of $360,936, $245,832 was recorded as a charge to additional paid in capital and $115,103 was recorded as accrued expense.
	On January 21, 2015, the Company issued 184,856 to Mablewood Investments, pursuant to the October 30, 2014 Securities Purchase Agreement with Mablewood Investments. The proceeds were received on November 7, 2014, but the shares were not issued until January 21, 2015. The proceeds were recorded as a stock payable as of November 30, 2014.
	On February 7, 2015, the Company issued 500,000 shares of its $0.001 par value common stock to its chief financial officer per his contract.

6_Subsequent_Events

6. Subsequent Events	3 Months Ended
	Feb. 28, 2015
Subsequent Events [Abstract]
Subsequent Events	On January 26, 2015, the Company entered into a Securities Purchase Agreement with Mablewood Investments, pursuant to which the Company agreed to issue 187,794 shares of Common Stock to the investor for an aggregate purchase price of $100,000, or $1.88 per share. The proceeds were received on March 9, 2015.
	On March 23, 2015, the Company created a new subsidiary, Virtus Operations, Inc., a Utah corporation, to act as an operator for its oil and gas properties in Iron County in southern Utah. As of the date of this filing, the subsidiary has no operations or assets.

1_Nature_of_Business_and_Signi1

1. Nature of Business and Significant Accounting Policies (Policy)	3 Months Ended
	Feb. 28, 2015
Accounting Policies [Abstract]
Nature of Business	Nature of Business
	Virtus Oil and Gas Corp. (“the Company”) was incorporated in the state of Nevada on September 30, 2009 (“Inception”). The Company was originally formed as Curry Gold Corp to become an operator and franchisor of fast-casual food catering vans that capitalize on the growing trend of food to go (convenience food) with its Currywurst product, a product native to Germany, and market it through Switzerland and into major metropolitan US cities. On July 17, 2012, however, the Company abandoned its plans to enter into the catering van business and is now an oil and gas exploration and production company.
	We are an oil and gas exploration company and have not significantly commenced our planned principal operations. Our operations to date have been devoted primarily to startup and development activities, which include forming our entity, developing our business plan, registering with the SEC and listing our Common Stock on the OTCBB exchange under the symbol, “VOIL”. In October 2013, the Company acquired an interest in an oil and gas property and is focusing its efforts on developing this property and identifying additional properties in which to invest.
	Our properties are located in Iron County in southern Utah.
Basis of Presentation	Basis of Presentation
	The financial statements included herein, presented in accordance with United States generally accepted accounting principles and is stated in US currency have been prepared by the Company pursuant to the rules and regulations of the SEC and should be read in conjunction with the audited financial statements and notes thereto contained in the Company's annual report for the year ended November 30, 2014 filed with the SEC on Form 10-K. 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 ended November 30, 2014 as reported in form 10-K have been omitted.
	The Company has adopted a fiscal year end of November 30.
Use of Estimates	Use of Estimates
	The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, and the disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.
Cash and Cash Equivalents	Cash and Cash Equivalents
	We maintain cash balances in non-interest-bearing accounts, which do not currently exceed federally insured limits. For the purpose of the statements of cash flows, all highly liquid investments with an original maturity of three months or less are considered to be cash equivalents.
Stock Based Compensation	Stock Based Compensation
	Stock-based awards to non-employees are accounted for using the fair value method.
	The Company adopted provisions which require that we measure and recognize compensation expense at an amount equal to the fair value of share-based payments granted under compensation arrangements.
	The Company has adopted the “modified prospective” method, which results in no restatement of prior period amounts. This method would apply to all awards granted or modified after the date of adoption. In addition, compensation expense must be recognized for any unvested stock option awards outstanding as of the date of adoption on a straight-line basis over the remaining vesting period. The Company will calculate the fair value of options using a Black-Scholes option pricing model. The Company does not currently have any outstanding options subject to future vesting therefore no charge is required for the periods presented. Our method also requires the benefits of tax deductions in excess of recognized compensation expense to be reported in the Statement of Cash Flows as a financing cash inflow rather than an operating cash inflow. In addition, our method required a modification to the Company’s calculation of the dilutive effect of stock option awards on earnings per share. For companies that are using the “modified prospective” method, disclosure of pro forma information for periods prior to adoption must continue to be made.
Accounting for Oil and Gas Properties	Accounting for Oil and Gas Properties
	The Company utilizes the full cost method to account for its investment in oil and gas properties.  Accordingly, all costs associated with acquisition, exploration and development of oil and gas reserves, including such costs as leasehold acquisition costs, professional fees incurred for the lease acquisitions, capitalized interest costs relating to properties, geological expenditures, and tangible and intangible development costs (including direct internal costs), are capitalized into the full cost pool. When the Company commences production from established proven oil and gas reserves, capitalized costs, including estimated future costs to develop the reserves and estimated abandonment costs, will be depleted on the units-of-production  method using estimates of proven reserves. Investments in unproved properties and major development projects, including capitalized interest if any, are not depleted until proven reserves associated with the projects can be determined.  If the future exploration of unproven properties is determined to be uneconomical, the amount of such properties is added to the capital costs to be depleted.  As of February 28, 2015 and November 30, 2014, the Company's oil and gas properties consisted of capitalized acquisition and exploration costs for unproved mineral rights.
Fair Value of Financial Instruments	Fair Value of Financial Instruments
	Financial instruments consist principally of cash, trade and related party payables and accrued liabilities. The carrying amounts of such financial instruments in the accompanying balance sheets approximate their fair values due to their relatively short-term nature. It is management’s opinion that the Company is not exposed to significant currency or credit risks arising from these financial instruments.
Basic and Diluted Loss per Share	Basic and Diluted Loss per Share
	The basic net loss per common share is computed by dividing the net loss by the weighted average number of common shares outstanding. Diluted net loss per common share is computed by dividing the net loss adjusted on an “as if converted” basis, by the weighted average number of common shares outstanding plus potential dilutive securities. For the periods presented, potential dilutive securities had an anti-dilutive effect and were not included in the calculation of diluted net loss per common share.
Recent Accounting Pronouncements	Recent Accounting Pronouncements
	Management does not anticipate that the recently issued but not yet effective accounting pronouncements will materially impact the Company’s financial condition.

5_Oil_and_Gas_Properties_Table

5. Oil and Gas Properties (Tables)	3 Months Ended
	Feb. 28, 2015
Extractive Industries [Abstract]
Oil and gas properties		February 28,			November 30,
		2015			2014
	Oil and gas properties:
	Beaver County, Utah Prospect	$	30,000		$	30,000
	Iron County, Utah Prospect		706,717			659,331
	Total oil and gas properties		736,717			689,331
	Less impairment		(30,000	)		(30,000	)
	Oil and gas properties, net	$	706,717		$	659,331

2_Going_Concern_Details_Narrat

2. Going Concern (Details Narrative) (USD $)	Feb. 28, 2015
Risks and Uncertainties [Abstract]
Working capital	($509,113)

3_Related_Party_Details_Narrat

3. Related Party (Details Narrative) (USD $)	3 Months Ended		12 Months Ended
	Feb. 28, 2015	Feb. 28, 2014	Nov. 30, 2014
Compensation expense	$245,832	$566,667
Professional fees	103,529	46,344
Ireland
Compensation expense	212,499
Clear Financial
Compensation expense	33,333		366,667
Professional fees	15,000
Stock issued for services, shares	500,000
Stock issued for services, value	$400,000

4_Oil_and_gas_properties_Detai

4. Oil and gas properties (Details) (USD $)	Feb. 28, 2015	Nov. 30, 2014
Oil and gas properties, gross	$736,717	$689,331
Less impairment	-30,000	-30,000
Oil and gas properties, net	706,717	659,331
Beaver County
Oil and gas properties, gross	30,000	30,000
Iron County
Oil and gas properties, gross	$706,717	$659,331

4_Oil_and_gas_properties_net_D

4. Oil and gas properties, net (Details Narrative) (USD $)	3 Months Ended
	Feb. 28, 2015	Feb. 28, 2014
Purchase of oil and gas lease	$47,386	$97,734
Tidewater
Payments for leasing costs	47,386
TJBB
Purchase of oil and gas lease	168,215
Seismic Exchange
Purchase of oil and gas lease	$98,434

5_Stockholders_Equity_Details_

5. Stockholders' Equity (Details Narrative) (USD $)	3 Months Ended
	Feb. 28, 2015	Feb. 28, 2014
Share based compensation expense	$245,832	$566,667
Ireland
Share based compensation expense	212,499
Murray
Share based compensation expense	115,102
Plumb
Share based compensation expense	$33,333
Chief Financial Officer [Member]
Shares issued for compensation, shares	500,000