Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended | ||
Sep. 30, 2013 | Jan. 09, 2014 | Mar. 31, 2013 | |
Document and Entity Information [Abstract] | ' | ' | ' |
Document Type | '10-K | ' | ' |
Amendment Flag | 'false | ' | ' |
Entity Registrant Name | 'FIRST TITAN CORP. | ' | ' |
Document Period End Date | 30-Sep-13 | ' | ' |
Entity Central Index Key | '0001502152 | ' | ' |
Current Fiscal Year End Date | '--09-30 | ' | ' |
Document Fiscal Year Focus | '2013 | ' | ' |
Entity Filer Category | 'Smaller Reporting Company | ' | ' |
Document Fiscal Period Focus | 'FY | ' | ' |
Entity Common Stock, Shares Outstanding | ' | 11,863,730 | ' |
Entity Public Float | ' | ' | $3,251,390 |
Entity Well-known Seasoned Issuer | 'No | ' | ' |
Entity Voluntary Filers | 'No | ' | ' |
Entity Current Reporting Status | 'Yes | ' | ' |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Sep. 30, 2013 | Sep. 30, 2012 |
Current assets: | ' | ' |
Cash | $127,748 | $1,359 |
Accounts receivable | 10,458 | ' |
Total current assets | 138,206 | 1,359 |
Oil and gas properties, accounted for using the full cost method of accounting | ' | ' |
Evaluated property, net of accumulated depletion, depreciation and amortization of $60,671 and $0, respectively, and net of accumulated impairment of $80,141 and $0, respectively | 123,777 | 128,000 |
Unevaluated property | 200,575 | 153,264 |
TOTAL ASSETS | 462,558 | 282,623 |
Current liabilities: | ' | ' |
Accounts payable | 113,558 | 28,568 |
Current portion of asset retirement obligation | 7,500 | ' |
Advances payable | ' | 329,050 |
Total current liabilities | 121,058 | 357,618 |
Convertible note payable, net of discount of $925,840 and $110,410, respectively | 76,262 | 20,519 |
Accrued interest payable | 5,812 | 10,120 |
Asset retirement obligation | 14,144 | 500 |
TOTAL LIABILITIES | 217,276 | 388,757 |
Stockholders' equity (deficit): | ' | ' |
Common stock; $0.0001 par value; 250,000,000 shares authorized; 10,863,730 and 5,646,415 shares issued and outstanding at September 30, 2013 and 2012, respectively | 1,086 | 565 |
Additional paid in capital | 2,355,801 | 1,058,795 |
Accumulated deficit | -2,111,605 | -1,165,494 |
Total stockholders' equity (deficit) | 245,282 | -106,134 |
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT) | $462,558 | $282,623 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parenthetical) (USD $) | Sep. 30, 2013 | Sep. 30, 2012 |
Consolidated Balance Sheets [Abstract] | ' | ' |
Accumulated depletion, depreciation and amortization on evaluated oil and gas property accounted for using the full cost method of accounting | $60,671 | ' |
Accumulated impairment on evaluated oil and gas property accounted for using the full cost method of accounting | 80,141 | ' |
Discount on convertible notes payable | $925,840 | $110,410 |
Common stock, shares authorized | 250,000,000 | 250,000,000 |
Common stock, par value per share | $0.00 | $0.00 |
Common stock, shares issued | 10,863,730 | 5,646,415 |
Common stock, shares outstanding | 10,863,730 | 5,646,415 |
Consolidated_Statements_of_Ope
Consolidated Statements of Operations (USD $) | 12 Months Ended | |
Sep. 30, 2013 | Sep. 30, 2012 | |
Consolidated Statements of Operations [Abstract] | ' | ' |
OIL AND GAS SALES, net | $57,361 | ' |
OPERATING EXPENSE: | ' | ' |
Lease operating expense | 6,285 | ' |
Depletion, depreciation and amortization | 60,671 | ' |
Accretion expense | 330 | ' |
Impairment of oil and gas properties | 80,141 | ' |
General and administrative | 555,132 | 944,966 |
LOSS FROM OPERATIONS | -645,198 | -944,966 |
Other income (expense) | ' | ' |
Interest expense | -300,913 | -164,345 |
NET LOSS | ($946,111) | ($1,109,311) |
Net loss per common share - basic and fully diluted | ($0.12) | ($1.19) |
Weighted average number of common shares outstanding - basic and fully diluted | 7,892,394 | 935,640 |
Consolidated_Statements_of_Cha
Consolidated Statements of Changes in Stockholders' Deficit (USD $) | Total | Common Stock [Member] | Additional Paid-in Capital [Member] | Accumulated Deficit [Member] |
Balance at Sep. 30, 2011 | ($9,683) | $60 | $46,440 | ($56,183) |
Balance, shares at Sep. 30, 2011 | ' | 600,000 | ' | ' |
Rounding shares issued as a result of reverse split | ' | ' | ' | ' |
Rounding shares issued as a result of reverse split, shares | ' | 165 | ' | ' |
Issuance of common stock for services | 635,000 | 9 | 634,991 | ' |
Issuance of common stock for services, shares | ' | 85,000 | ' | ' |
Issuance of common stock for conversion of debt | 113,225 | 496 | 112,729 | ' |
Issuance of common stock for conversion of debt, shares | ' | 4,961,250 | ' | ' |
Discount on convertible notes payable | 244,154 | ' | 244,154 | ' |
Imputed interest | 20,481 | ' | 20,481 | ' |
Net loss | -1,109,311 | ' | ' | -1,109,311 |
Balance at Sep. 30, 2012 | -106,134 | 565 | 1,058,795 | -1,165,494 |
Balance, shares at Sep. 30, 2012 | 5,646,415 | 5,646,415 | ' | ' |
Issuance of common stock for conversion of debt | 208,693 | 521 | 208,172 | ' |
Issuance of common stock for conversion of debt, shares | ' | 5,217,315 | ' | ' |
Discount on convertible notes payable | 1,048,049 | ' | 1,048,049 | ' |
Imputed interest | 40,785 | ' | 40,785 | ' |
Net loss | -946,111 | ' | ' | -946,111 |
Balance at Sep. 30, 2013 | $245,282 | $1,086 | $2,355,801 | ($2,111,605) |
Balance, shares at Sep. 30, 2013 | 10,863,730 | 10,863,730 | ' | ' |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (USD $) | 12 Months Ended | |
Sep. 30, 2013 | Sep. 30, 2012 | |
Operating activities | ' | ' |
Net loss | ($946,111) | ($1,109,311) |
Adjustments to reconcile net loss to net cash used by operating activities: | ' | ' |
Depletion and accretion | 61,001 | ' |
Impairment of oil and gas properties | 80,141 | ' |
Amortization of discount on convertible notes payable | 232,619 | 133,744 |
Imputed interest | 40,785 | 20,481 |
Common stock issued for services | ' | 635,000 |
Changes in operating assets and liabilities: | ' | ' |
Accounts receivable | -10,458 | ' |
Accounts payable and accrued liabilities | 112,499 | 35,063 |
Net cash used by operating activities | -429,524 | -285,023 |
Investing activities | ' | ' |
Investment in oil and gas properties | -163,086 | -280,764 |
Net cash used by investing activities | -163,086 | -280,764 |
Financing activities | ' | ' |
Proceeds from advances | 718,999 | 545,204 |
Net cash provided by financing activities | 718,999 | 545,204 |
Net increase (decrease) in cash | 126,389 | -20,583 |
Cash at beginning of period | 1,359 | 21,942 |
Cash at end of period | 127,748 | 1,359 |
Supplemental disclosures of cash flow information and non cash investing and financing activities: | ' | ' |
Cash paid for interest | ' | ' |
Cash paid for taxes | ' | ' |
Noncash investing and financing transactions | ' | ' |
Stock issued for conversion of notes payable | 176,876 | 113,225 |
Discount on advances refinanced into convertible notes payable | 1,048,049 | 244,154 |
Asset retirement obligation acquired | $20,814 | $330 |
BACKGROUND_INFORMATION
BACKGROUND INFORMATION | 12 Months Ended |
Sep. 30, 2013 | |
BACKGROUND INFORMATION [Abstract] | ' |
BACKGROUND INFORMATION | ' |
1. BACKGROUND INFORMATION | |
First Titan Corp. (the "Company"), a Florida corporation, was formed to design and manufacture both panel and engineered/tooled custom vacuum formed instrument panels and wiring harnesses, required for the monitoring of any final product that utilizes a gas or diesel engine source. This product intends to be targeted to other manufacturers and the Company will be considered a sub-supplier to these customers. | |
The Company was incorporated on September 16, 2010 with our corporate headquarters located in Bradenton, Florida. The Company's year-end is September 30. | |
On September 16, 2011, First Titan Corporation created First Titan Energy, LLC for the purpose of investing in oil and gas properties, greenfield projects and in the development of cutting edge exploration and production technologies. | |
On September 16, 2011, we formed a new subsidiary company -First Titan Technical, LLC-to commence business operations designing and marketing automotive electronics custom-designed for heavy-duty vehicles. The Company received funding of $25,000 to implement the initial phase of First Titan Technical's business plan. | |
Since 2011, the Company has decided to focus solely on First Titan Energy's business. |
GOING_CONCERN
GOING CONCERN | 12 Months Ended |
Sep. 30, 2013 | |
GOING CONCERN [Abstract] | ' |
GOING CONCERN | ' |
2. GOING CONCERN | |
For the year ended September 30, 2013, the Company had a net loss of $946,111 and negative cash flow from operations of $429,524. | |
These factors raise a substantial doubt about the Company's ability to continue as a going concern. The accompanying financial statements do not include any adjustments to reflect the possible future effects on the recoverability and classification of assets or the amounts and classifications of liabilities that may result from the possible inability of the Company to continue as a going concern. | |
The Company does not have the resources at this time to repay its credit and debt obligations, make any payments in the form of dividends to its shareholders or fully implement its business plan. Without additional capital, the Company will not be able to remain in business. | |
Management has plans to address the Company's financial situation as follows: | |
In the near term, management plans to continue to focus on raising the funds necessary to fully implement the Company's business plan. Management will continue to seek out debt financing to obtain the capital required to meet the Company's financial obligations. There is no assurance, however, that lenders will continue to advance capital to the Company or that the new business operations will be profitable. The possibility of failure in obtaining additional funding and the potential inability to achieve profitability raise doubts about the Company's ability to continue as a going concern. | |
In the long term, management believes that the Company's projects and initiatives will be successful and will provide cash flow to the Company which will be used to finance the Company's future growth. However, there can be no assurances that the Company's planned activities will be successful, or that the Company will ultimately attain profitability. The Company's long term viability depends on its ability to obtain adequate sources of debt or equity funding to meet current commitments and fund the continuation of its business operations, and the ability of the Company to ultimately achieve adequate profitability and cash flows from operations to sustain its operations. |
SIGNIFICANT_ACCOUNTING_POLICIE
SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended | |||||||||||||
Sep. 30, 2013 | ||||||||||||||
SIGNIFICANT ACCOUNTING POLICIES [Abstract] | ' | |||||||||||||
SIGNIFICANT ACCOUNTING POLICIES | ' | |||||||||||||
3. SIGNIFICANT ACCOUNTING POLICIES | ||||||||||||||
The significant accounting policies followed are: | ||||||||||||||
FASB Codification | ||||||||||||||
In June 2009, the FASB issued ASC 105, Generally Accepted Accounting Principles, effective for interim and annual reporting periods ending after September 15, 2009. This statement establishes the Codification as the source of authoritative accounting principles used in the preparation of financial statements in conformity with generally accepted accounting principles. The Codification does not replace or affect guidance issued by the SEC or its staff. As a result of the Codification, the references to authoritative accounting pronouncements included herein in this Annual Report on Form 10-K now refer to the Codification topic section rather than a specific accounting rule as was past practice. | ||||||||||||||
Use of Estimates | ||||||||||||||
The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. | ||||||||||||||
Cash and Cash Equivalents | ||||||||||||||
All cash, other than held in escrow, is maintained with a major financial institution in the United States. Deposits with this bank may exceed the amount of insurance provided on such deposits. Temporary cash investments with an original maturity of three months or less are considered to be cash equivalents. | ||||||||||||||
Credit Risk Due to Certain Concentrations | ||||||||||||||
We extend credit, primarily in the form of uncollateralized oil and gas sales through the operators of our working interests, to various companies in the oil and gas industry, which results in a concentration of credit risk. The concentration of credit risk may be affected by changes in economic or other conditions within our industry and may accordingly impact our overall credit risk. However, we believe that the risk of these unsecured receivables is mitigated by the nature of the companies to which we extend credit. For the year ended September 30, 2013, two operators accounted for 86% and 14% of our oil and gas sales. Those operators account for 49% and 51% of accounts receivable as of September 30, 2013. We did not recognize any credit losses during the year ended September 30, 2013. We have not recognized an allowance for doubtful accounts as of September 30, 2013. All amounts receivable as of September 30, 2013 were collected subsequent to year end. We did not recognize any revenue during the year ended September 30, 2012. | ||||||||||||||
Oil and Gas Properties | ||||||||||||||
The Company follows the full cost method of accounting for its oil and gas properties, whereby all costs incurred in connection with the acquisition, exploration for and development of petroleum and natural gas reserves are capitalized. Such costs include lease acquisition, geological and geophysical activities, rentals on non-producing leases, drilling, completing and equipping of oil and gas wells and administrative costs directly attributable to those activities and asset retirement costs. Disposition of oil properties are accounted for as a reduction of capitalized costs, with no gain or loss recognized unless such adjustment would significantly alter the relationship between capital costs and proved reserves of oil, in which case the gain or loss is recognized in the statement of operations. | ||||||||||||||
Depletion of capitalized oil properties and estimated future development costs, excluding unproved properties, are based on the units-of-production method based on proved reserves. Net capitalized costs of oil properties, less related deferred taxes, are limited to the lower of unamortized cost or the cost ceiling, defined as the sum of the present value of estimated future net revenues from proved reserves based on unescalated prices discounted at 10 percent, plus the cost of properties not being amortized, if any, plus the lower of cost or estimated fair value of unproved properties included in the costs being amortized, if any, less related income taxes. As of September 30, 2013, the Company has oil properties in the amount of $200,575 which are being excluded from amortization because they have not been evaluated to determine whether proved reserves are associated with those properties. Costs in excess of the present value of estimated future net revenues as discussed above are charged to impairment expense. The Company applies the full cost ceiling test on a quarterly basis on the date of the latest balance sheet presented. | ||||||||||||||
Based on management's review, 100% of the unproved oil properties balance as of September 30, 2013 is expected to be added to amortization during the year ending September 30, 2014. The table below sets forth the cost of unproved properties excluded from the amortization base as of September 30, 2013 and notes the year in which the associated costs were incurred: | ||||||||||||||
Year of Acquisition | ||||||||||||||
2011 | 2012 | 2013 | Total | |||||||||||
Acquisition costs | $ | - | $ | 153,264 | $ | 47,311 | $ | 200,575 | ||||||
Development costs | - | - | - | - | ||||||||||
Exploration costs | - | - | - | - | ||||||||||
Total | $ | - | $ | 153,264 | $ | 47,311 | $ | 200,575 | ||||||
As discussed in Note 6, asset retirement costs are recognized when the asset is placed in service, and are included in the amortization base and amortized over proved reserves using the units of production method. Asset retirement costs are estimated by management using existing regulatory requirements and anticipated future inflation rates. | ||||||||||||||
Common Stock | ||||||||||||||
The Company records common stock issuances when all of the legal requirements for the issuance of such common stock have been satisfied. | ||||||||||||||
Revenue Recognition | ||||||||||||||
Sales of crude oil are recognized when the delivery to the purchaser has occurred and title has been transferred. This occurs when oil has been delivered to a pipeline or a tank lifting has occurred. Crude oil is priced on the delivery date based upon prevailing prices published by purchasers with certain adjustments related to oil quality and physical location. | ||||||||||||||
Research and development expenses | ||||||||||||||
Expenditures for research and development of products are expensed as incurred. There have been no research and development costs incurred for the year ended September 30, 2013. | ||||||||||||||
Advertising Costs | ||||||||||||||
The Company's policy regarding advertising is to expense advertising costs as incurred. There have been no advertising costs incurred for the period ended September 30, 2013. | ||||||||||||||
Income Taxes | ||||||||||||||
Income taxes are provided for the tax effects of transactions reported in the financial statements and consist of taxes currently due plus deferred taxes resulting from temporary differences. Such temporary differences result from differences in the carrying value of assets and liabilities for tax and financial reporting purposes. The deferred tax assets and liabilities represent the future tax consequences of those differences, which will either be taxable or deductible when the assets and liabilities are recovered or settled. Valuation allowances are established when necessary to reduce deferred tax assets to the amount expected to be realized. | ||||||||||||||
The Company adopted the provisions of FASB ASC 740-10 "Uncertainty in Income Taxes" (ASC 740-10), on January 1, 2007. The Company has not recognized a liability as a result of the implementation of ASC 740-10. A reconciliation of the beginning and ending amount of unrecognized tax benefits has not been provided since there is no unrecognized benefit since the date of adoption. The Company has not recognized interest expense or penalties as a result of the implementation of ASC 740-10. If there were an unrecognized tax benefit, the Company would recognize interest accrued related to unrecognized tax benefits in interest expense and penalties in operating expenses. | ||||||||||||||
Earnings (Loss) Per Share | ||||||||||||||
Basic loss per share is computed by dividing net loss attributable to common stockholders by the weighted average common shares outstanding for the period. Diluted loss per share is computed giving effect to all potentially dilutive common shares. Potentially dilutive common shares may consist of incremental shares issuable upon the exercise of stock options and warrants and the conversion of notes payable to common stock. In periods in which a net loss has been incurred, all potentially dilutive common shares are considered antidilutive and thus are excluded from the calculation. At September 30, 2013 and 2012, the Company did not have any potentially dilutive common shares. | ||||||||||||||
Financial Instruments | ||||||||||||||
In September 2006, the Financial Accounting Standards Board ("FASB") introduced a framework for measuring fair value and expanded required disclosure about fair value measurements of assets and liabilities. The Company adopted the standard for those financial assets and liabilities as of the beginning of the 2008 fiscal year and the impact of adoption was not significant. FASB Accounting Standards Codification ("ASC") 820 "Fair Value Measurements and Disclosures" ("ASC 820") defines fair value as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. ASC 820 also establishes a fair value hierarchy that distinguishes between (1) market participant assumptions developed based on market data obtained from independent sources (observable inputs) and (2) an entity's own assumptions about market participant assumptions developed based on the best information available in the circumstances (unobservable inputs). The fair value hierarchy consists of three broad levels, which gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3). The three levels of the fair value hierarchy are described below: | ||||||||||||||
· | Level 1 - Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities. | |||||||||||||
· | Level 2 - Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly, including quoted prices for similar assets or liabilities in active markets; quoted prices for identical or similar assets or liabilities in markets that are not active; inputs other than quoted prices that are observable for the asset or liability (e.g., interest rates); and inputs that are derived principally from or corroborated by observable market data by correlation or other means. | |||||||||||||
· | Level 3 - Inputs that are both significant to the fair value measurement and unobservable. | |||||||||||||
Fair value estimates discussed herein are based upon certain market assumptions and pertinent information available to management as of September 30, 2013. The respective carrying value of certain on-balance-sheet financial instruments approximated their fair values due to the short-term nature of these instruments. These financial instruments include accounts receivable, other current assets, accounts payable, accrued compensation and accrued expenses. The fair value of the Company's notes payable is estimated based on current rates that would be available for debt of similar terms which is not significantly different from its stated value. | ||||||||||||||
On September 16, 2010, the Company applied ASC 820 for all non-financial assets and liabilities measured at fair value on a non-recurring basis. The adoption of ASC 820 for non-financial assets and liabilities did not have a significant impact on the Company's financial statements. | ||||||||||||||
The following table presents assets that were measured and recognized at fair value as of September 30, 2013 and 2012 and the years then ended on a recurring and nonrecurring basis: | ||||||||||||||
30-Sep-13 | Total | |||||||||||||
Realized | ||||||||||||||
Description | Level 1 | Level 2 | Level 3 | Loss | ||||||||||
Asset retirement obligation | $ | - | $ | - | $ | 21,644 | $ | - | ||||||
Totals | $ | - | $ | - | $ | 21, 644 | $ | - | ||||||
30-Sep-12 | Total | |||||||||||||
Realized | ||||||||||||||
Description | Level 1 | Level 2 | Level 3 | Loss | ||||||||||
Asset retirement obligation | $ | - | $ | - | $ | 500 | $ | - | ||||||
Totals | $ | - | $ | - | $ | 500 | $ | - | ||||||
Recent Accounting Pronouncements | ||||||||||||||
In February 2013, the Financial Accounting Standards Board ("FASB") issued ASU No. 2013-02, Comprehensive Income (Topic 220): Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income, to improve the transparency of reporting these reclassifications. Other comprehensive income includes gains and losses that are initially excluded from net income for an accounting period. Those gains and losses are later reclassified out of accumulated other comprehensive income into net income. The amendments in the ASU do not change the current requirements for reporting net income or other comprehensive income in financial statements. All of the information that this ASU requires already is required to be disclosed elsewhere in the financial statements under U.S. GAAP. The new amendments will require an organization to: | ||||||||||||||
· | Present (either on the face of the statement where net income is presented or in the notes) the effects on the line items of net income of significant amounts reclassified out of accumulated other comprehensive income - but only if the item reclassified is required under U.S. GAAP to be reclassified to net income in its entirety in the same reporting period; and | |||||||||||||
· | Cross-reference to other disclosures currently required under U.S. GAAP for other reclassification items (that are not required under U.S. GAAP) to be reclassified directly to net income in their entirety in the same reporting period. This would be the case when a portion of the amount reclassified out of accumulated other comprehensive income is initially transferred to a balance sheet account (e.g., inventory for pension-related amounts) instead of directly to income or expense. | |||||||||||||
The amendments apply to all public and private companies that report items of other comprehensive income. Public companies are required to comply with these amendments for all reporting periods (interim and annual). The amendments are effective for reporting periods beginning after December 15, 2012, for public companies. Early adoption is permitted. The adoption of ASU No. 2013-02 is not expected to have a material impact on our financial position or results of operations. | ||||||||||||||
In January 2013, the FASB issued ASU No. 2013-01, Balance Sheet (Topic 210): Clarifying the Scope of Disclosures about Offsetting Assets and Liabilities, which clarifies which instruments and transactions are subject to the offsetting disclosure requirements originally established by ASU 2011-11. The new ASU addresses preparer concerns that the scope of the disclosure requirements under ASU 2011-11 was overly broad and imposed unintended costs that were not commensurate with estimated benefits to financial statement users. In choosing to narrow the scope of the offsetting disclosures, the Board determined that it could make them more operable and cost effective for preparers while still giving financial statement users sufficient information to analyze the most significant presentation differences between financial statements prepared in accordance with U.S. GAAP and those prepared under IFRSs. Like ASU 2011-11, the amendments in this update will be effective for fiscal periods beginning on, or after January 1, 2013. The adoption of ASU 2013-01 is not expected to have a material impact on our financial position or results of operations. | ||||||||||||||
In October 2012, the FASB issued Accounting Standards Update ASU 2012-04, "Technical Corrections and Improvements" in Accounting Standards Update No. 2012-04. The amendments in this update cover a wide range of Topics in the Accounting Standards Codification. These amendments include technical corrections and improvements to the Accounting Standards Codification and conforming amendments related to fair value measurements. The amendments in this update will be effective for fiscal periods beginning after December 15, 2012. The adoption of ASU 2012-04 is not expected to have a material impact on our financial position or results of operations. | ||||||||||||||
In August 2012, the FASB issued ASU 2012-03, "Technical Amendments and Corrections to SEC Sections: Amendments to SEC Paragraphs Pursuant to SEC Staff Accounting Bulletin (SAB) No. 114, Technical Amendments Pursuant to SEC Release No. 33-9250, and Corrections Related to FASB Accounting Standards Update 2010-22 (SEC Update)" in Accounting Standards Update No. 2012-03. This update amends various SEC paragraphs pursuant to the issuance of SAB No. 114. The adoption of ASU 2012-03 is not expected to have a material impact on our financial position or results of operations. | ||||||||||||||
In July 2012, the FASB issued ASU 2012-02, "Intangibles - Goodwill and Other (Topic 350): Testing Indefinite-Lived Intangible Assets for Impairment" in Accounting Standards Update No. 2012-02. This update amends ASU 2011-08, Intangibles - Goodwill and Other (Topic 350): Testing Indefinite-Lived Intangible Assets for Impairment and permits an entity first to assess qualitative factors to determine whether it is more likely than not that an indefinite-lived intangible asset is impaired as a basis for determining whether it is necessary to perform the quantitative impairment test in accordance with Subtopic 350-30, Intangibles - Goodwill and Other - General Intangibles Other than Goodwill. The amendments are effective for annual and interim impairment tests performed for fiscal years beginning after September 15, 2012. Early adoption is permitted, including for annual and interim impairment tests performed as of a date before July 27, 2012, if a public entity's financial statements for the most recent annual or interim period have not yet been issued or, for nonpublic entities, have not yet been made available for issuance. The adoption of ASU 2012-02 has not had a material impact on our financial position or results of operations. | ||||||||||||||
In December 2011, the FASB issued ASU 2011-12, "Deferral of the Effective Date for Amendments to the Presentation of Reclassifications of Items out of Accumulated Other Comprehensive Income in Accounting Standards Update No. 2011-05. This update defers the requirement to present items that are reclassified from accumulated other comprehensive income to net income in both the statement of income where net income is presented and the statement where other comprehensive income is presented. The adoption of ASU 2011-12 has not had a material impact on our financial position or results of operations. | ||||||||||||||
In December 2011, the FASB issued ASU No. 2011-11 "Balance Sheet: Disclosures about Offsetting Assets and Liabilities" ("ASU 2011-11"). This Update requires an entity to disclose information about offsetting and related arrangements to enable users of its financial statements to understand the effect of those arrangements on its financial position. The objective of this disclosure is to facilitate comparison between those entities that prepare their financial statements on the basis of U.S. GAAP and those entities that prepare their financial statements on the basis of IFRS. The amended guidance is effective for annual reporting periods beginning on or after January 1, 2013, and interim periods within those annual periods. The Company is currently evaluating the impact, if any, that the adoption of this pronouncement may have on its results of operations or financial position. | ||||||||||||||
Other recent accounting pronouncements issued are not believed by management to have a material impact on the Company's present or future financial statements. |
OIL_AND_GAS_PROPERTIES
OIL AND GAS PROPERTIES | 12 Months Ended | ||||||||
Sep. 30, 2013 | |||||||||
OIL AND GAS PROPERTIES [Abstract] | ' | ||||||||
OIL AND GAS PROPERTIES | ' | ||||||||
4. OIL AND GAS PROPERTIES | |||||||||
Oil and gas properties as of September 30, 2013 and 2012 consisted of the following: | |||||||||
September 30, | |||||||||
2013 | 2012 | ||||||||
Evaluated Properties | |||||||||
Costs subject to depletion | $ | 264,589 | $ | 128,000 | |||||
Accumulated depletion, depreciation and amortization | (60,671 | ) | - | ||||||
Accumulated impairment | (80,141 | ) | - | ||||||
Total evaluated properties | 123,777 | 128,000 | |||||||
Unevaluated properties | 200,575 | 153,264 | |||||||
Net oil and gas properties | $ | 324,352 | $ | 281,264 | |||||
We own interests in properties in Alabama, Louisiana and Texas. As of September 30, 2013, our interests in these properties were as follows: | |||||||||
Evaluated properties | |||||||||
Alabama - We have a one percent working interest in one well in Little Cedar Creek Field in Alabama. This well was drilled during the fiscal year ended September 30, 2012. We received revenue of $44,930 from this well during the year ended September 30, 2013. Little Cedar Creek Field is Alabama's largest producing oil field. | |||||||||
Texas - On January 19, 2012, the Company entered into a working interest purchase and sale agreement (the "Big Canyon Agreement") related to 640 acres of land located in Terrell County, Texas (the "Big Canyon Prospect"). According to the terms of the Big Canyon Agreement, the Company will purchase an 82.5% working interest and will receive a 64.35% net royalty interest in the Big Canyon Prospect. The Company paid $60,000 for the rights under this contract. Under the terms of the Big Canyon Agreement, the Company had the right to drill one well within six months and a second well within the next six months if the first well is unsuccessful. Our option to drill expires January 27, 2013 and no wells have been drilled. These costs were included in the amortization base as of September 30, 2012 and subjected to the ceiling test as of September 30, 2013 and 2012. | |||||||||
Unevaluated Properties | |||||||||
Louisiana - On January 3, 2012, the Company entered into a participation agreement in an oil and gas drilling project in Calcasieu Parish, Louisiana (the "Participation Agreement"). Under the terms of the Participation Agreement, the Company will participate in the drilling of one well and may participate in the drilling of future wells if it chooses. The Company will pay 25% of the drilling cost of the first well and will receive 13.59% of the net revenue from the well. The Company anticipates that its share of the total drilling and completion cost of the initial well, projected to be drilled to approximately 15,500 feet, will be $3.4 million. On August 12, 2013, the Participation Agreement was amended to reduce our working interest to 1.8%. As a result, our share of the drilling cost is expected to be approximately $181,000. The Company has paid $143,264 of its share of the costs of the well to date. We will receive 1.4% of the revenue from this well. The well is currently being drilled and is expected to be completed in the first half of fiscal 2014. |
RELATED_PARTY_TRANSACTIONS
RELATED PARTY TRANSACTIONS | 12 Months Ended |
Sep. 30, 2013 | |
RELATED PARTY TRANSACTIONS [Abstract] | ' |
RELATED PARTY TRANSACTIONS | ' |
5. RELATED PARTY TRANSACTIONS | |
The officers and directors of the Company are involved in other business activities and may, in the future, become involved in other business opportunities that become available. They may face a conflict in selecting between the Company and other business interests. The Company has not formulated a policy for the resolution of such conflicts. |
ASSET_RETIREMENT_OBLIGATION
ASSET RETIREMENT OBLIGATION | 12 Months Ended | |||||||
Sep. 30, 2013 | ||||||||
ASSET RETIREMENT OBLIGATION [Abstract] | ' | |||||||
ASSET RETIREMENT OBLIGATION | ' | |||||||
6. ASSET RETIREMENT OBLIGATION | ||||||||
ASC 410-20, Asset Retirement and Environmental Obligations, requires that an asset retirement obligation ("ARO") associated with the retirement of a tangible long-lived asset be recognized as a liability in the period in which it is incurred and becomes determinable. Under this method, when liabilities for dismantlement and abandonment costs, excluding salvage values, are initially recorded, the carrying amount of the related oil and natural gas properties is increased. The fair value of the ARO asset and liability is measured using expected future cash outflows discounted at the Company's credit-adjusted risk-free interest rate. Accretion of the liability is recognized each period using the interest method of allocation, and the capitalized cost is depleted using the units of production method. Should either the estimated life or the estimated abandonment costs of a property change materially upon the Company's quarterly review, a new calculation is performed using the same methodology of taking the abandonment cost and inflating it forward to its abandonment date and then discounting it back to the present using the Company's credit-adjusted-risk-free rate. The carrying value of the asset retirement obligation is adjusted to the newly calculated value, with a corresponding offsetting adjustment to the asset retirement cost related to oil property accounts. | ||||||||
The following table reflects the changes in the ARO during years ended September 30, 2013 and 2012: | ||||||||
Year Ended | ||||||||
September 30, | ||||||||
2013 | 2012 | |||||||
Asset retirement obligation - beginning of year | $ | 500 | $ | - | ||||
Current year revision to previous estimates | (155 | ) | - | |||||
Asset retirement obligation on properties drilled or acquired | 20,969 | 500 | ||||||
Current year accretion | 330 | - | ||||||
Asset retirement obligation - end of year | $ | 21,644 | $ | 500 |
ADVANCES_FROM_THIRD_PARTIES
ADVANCES FROM THIRD PARTIES | 12 Months Ended |
Sep. 30, 2013 | |
ADVANCES FROM THIRD PARTIES [Abstract] | ' |
ADVANCES FROM THIRD PARTIES | ' |
7. ADVANCES FROM THIRD PARTIES | |
During the year ended September 30, 2013, the Company received net, non-interest bearing advances from certain third parties totaling $718,999. The total amount due under these advances as of September 30, 2013 was $0. These advances are not collateralized and are due on demand. | |
During the year ended September 30, 2013, the Company imputed interest of $40,785 on these advances. |
CONVERTIBLE_NOTES_PAYABLE
CONVERTIBLE NOTES PAYABLE | 12 Months Ended | |||||||||
Sep. 30, 2013 | ||||||||||
CONVERTIBLE NOTES PAYABLE [Abstract] | ' | |||||||||
CONVERTIBLE NOTES PAYABLE | ' | |||||||||
8. CONVERTIBLE NOTES PAYABLE | ||||||||||
On February 28, 2013, the Company signed a Convertible Promissory Note which refinanced non-interest bearing advances in the amount of $329,050 into a convertible note payable. The Convertible Promissory Note bears interest at 10% per annum and is payable along with accrued interest on February 28, 2015. The Convertible Promissory Note is convertible into common stock at the option of the holder at the rate of $0.04 per share. | ||||||||||
On June 30, 2013, the Company signed a Convertible Promissory Note which refinanced non-interest bearing advances in the amount of $190,565 into a convertible note payable. The Convertible Promissory Note bears interest at 10% per annum and is payable along with accrued interest on June 30, 2015. The Convertible Promissory Note is convertible into common stock at the option of the holder at the rate of $0.04 per share. | ||||||||||
On September 30, 2013, the Company signed a Convertible Promissory Note which refinanced non-interest bearing advances in the amount of $528,434 into a convertible note payable. The Convertible Promissory Note bears interest at 10% per annum and is payable along with accrued interest on September 30, 2015. The Convertible Promissory Note is convertible into common stock at the option of the holder at the rate of $0.04 per share. | ||||||||||
The Company evaluated the terms of these notes in accordance with ASC Topic No. 815 - 40, Derivatives and Hedging - Contracts in Entity's Own Stock and determined that the underlying common stock is indexed to the Company's common stock. The Company determined that the conversion feature did not meet the definition of a liability and therefore did not bifurcate the conversion feature and account for it as a separate derivative liability. The Company evaluated the conversion feature for a beneficial conversion feature. The effective conversion price was compared to the market price on the date of the notes and was deemed to be less than the market value of underlying common stock at the inception of the notes. Therefore, the Company recognized a beneficial conversion features in the amount of $329,050 on February 28, 2013, $190,565 on June 30, 2013 and $528,434 on September 30, 2013. The beneficial conversion feature was recognized as an increase in additional paid-in capital and a discount to the Convertible Notes Payable. The discount to the Convertible Notes Payable is being amortized to interest expense over the life of the notes using the effective interest method. | ||||||||||
The Company evaluated the application of ASC 470-50-40/55, Debtor's Accounting for a Modification or Exchange of Debt Instrument as it applies to the three notes listed above and concluded that the revised terms constituted a debt modification rather than a debt extinguishment because the present value of the cash flow under the terms of each of the new instruments was less than 10% from the present value of the remaining cash flows under the terms of the original notes. No gain or loss on the modifications was required to be recognized. | ||||||||||
During the year ended September 30, 2013, the holders of the Convertible Note Payable dated January 31, 2012 elected to convert principal and accrued interest in the amounts shown below into shares of common stock at a rate of $0.04 per share. On the conversion date, the unamortized discount related to the principal amount converted was immediately amortized to interest expense. No gain or loss was recognized on the conversions as they occurred within the terms of the agreement which provided for conversion at $0.04 per share. | ||||||||||
Date | Amount Converted | Number of | Unamortized | |||||||
Shares Issued | Discount | |||||||||
30-Nov-12 | $ | 22,000 | 550,000 | $ | 18,262 | |||||
7-Jan-13 | 12,000 | 300,000 | 9,543 | |||||||
8-Feb-13 | 25,600 | 640,000 | 19,824 | |||||||
12-Mar-13 | 28,000 | 700,000 | 21,029 | |||||||
21-Mar-13 | 28,000 | 700,000 | 20,567 | |||||||
24-Apr-13 | 17,000 | 425,000 | 10,360 | |||||||
3-May-13 | 12,093 | 302,315 | - | |||||||
Total | $ | 144,693 | 3,617,315 | $ | 99,585 | |||||
As of September 30, 2013, the balance of the note dated January 31, 2012 was $0. | ||||||||||
During the year ended September 30, 2013, the holders of the Convertible Note Payable dated February 28, 2013 elected to convert principal and accrued interest in the amounts shown below into shares of common stock at a rate of $0.04 per share. On the conversion date, the unamortized discount related to the principal amount converted was immediately amortized to interest expense. No gain or loss was recognized on the conversions as they occurred within the terms of the agreement which provided for conversion at $0.04 per share. | ||||||||||
Date | Amount Converted | Number of | Unamortized | |||||||
Shares Issued | Discount | |||||||||
1-Sep-13 | $ | 32,000 | 800,000 | $ | 12,887 | |||||
17-Sep-13 | 32,000 | 800,000 | 25,745 | |||||||
Total | $ | 64,000 | 1,600,000 | $ | 38,632 | |||||
As of September 30, 2013, the balance of the note dated February 28, 2013 was $283,103. | ||||||||||
The Company accrued interest in the amount of $28,912 during the year ended September 30, 2013. As of September 30, 2013, accrued interest payable was $5,812. During the year ended September 30, 2013, discount on convertible notes payable in the amount of $232,619 was amortized to interest expense. |
INCOME_TAXES
INCOME TAXES | 12 Months Ended | ||||||
Sep. 30, 2013 | |||||||
INCOME TAXES [Abstract] | ' | ||||||
INCOME TAXES | ' | ||||||
9. INCOME TAXES | |||||||
There are no current or deferred income tax expense or benefit for the period ended September 30, 2013. | |||||||
The provision for income taxes is different from that which would be obtained by applying the statutory federal income tax rate to income before income taxes. The items causing this difference are as follows: | |||||||
Year ended September 30, | |||||||
2013 | 2012 | ||||||
Tax benefit at U.S. statutory rate | $ | 356,249 | $ | 127,529 | |||
Valuation allowance | (356,249 | ) | -127,529 | ||||
$ | - | $ | - | ||||
The Company has net operating loss carryforwards of $1,047,792 which will begin expiring in 2026. |
COMMON_STOCK
COMMON STOCK | 12 Months Ended |
Sep. 30, 2013 | |
COMMON STOCK [Abstract] | ' |
COMMON STOCK | ' |
10. COMMON STOCK | |
On November 30, 2012, the Company issued 550,000 shares of common stock to a third party for conversion of a note payable in the principal amount of $22,000. The shares were valued at $22,000 and no gain or loss was recognized on the conversion as it occurred within the terms of the agreement which provided for conversion at $0.04 per share.. | |
On January 7, 2013, the Company issued 300,000 shares of common stock to a third party for conversion of a note payable in the principal amount of $12,000. The shares were valued at $12,000 and no gain or loss was recognized on the conversion as it occurred within the terms of the agreement which provided for conversion at $0.04 per share. | |
On February 8, 2013, the Company issued 640,000 shares of common stock to a third party for conversion of a note payable in the principal amount of $25,600. The shares were valued at $25,600 and no gain or loss was recognized on the conversion as it occurred within the terms of the agreement which provided for conversion at $0.04 per share. | |
On March 12, 2013, the Company issued 700,000 shares of common stock to a third party for conversion of a note payable in the principal amount of $28,000. The shares were valued at $28,000 and no gain or loss was recognized on the conversion as it occurred within the terms of the agreement which provided for conversion at $0.04 per share. | |
On March 21, 2013, the Company issued 700,000 shares of common stock to a third party for conversion of a note payable in the principal amount of $28,000. The shares were valued at $28,000 and no gain or loss was recognized on the conversion as it occurred within the terms of the agreement which provided for conversion at $0.04 per share. | |
On April 24, 2013, the Company issued 425,000 shares of common stock to a third party for conversion of a note payable in the amount of $17,000 (including principal and accrued interest). The shares were valued at $17,000. No gain or loss was recognized on the conversion as it occurred within the terms of the agreement which provided for conversion at $0.04 per share. | |
On May 3, 2013, the Company issued 302,315 shares of common stock to a third party for conversion of a note payable in the amount of $12,093 (including principal and accrued interest). The shares were valued at $12,093. No gain or loss was recognized on the conversion as it occurred within the terms of the agreement which provided for conversion at $0.04 per share | |
On September 1, 2013, the Company issued 800,000 shares of common stock to a third party for conversion of a note payable in the amount of $32,000 (including principal and accrued interest). The shares were valued at $32,000. No gain or loss was recognized on the conversion as it occurred within the terms of the agreement which provided for conversion at $0.04 per share | |
On September 17, 2013, the Company issued 800,000 shares of common stock to a third party for conversion of a note payable in the amount of $32,000 (including principal and accrued interest). The shares were valued at $32,000. No gain or loss was recognized on the conversion as it occurred within the terms of the agreement which provided for conversion at $0.04 per share |
SUBSEQUENT_EVENTS
SUBSEQUENT EVENTS | 12 Months Ended | |||||||||
Sep. 30, 2013 | ||||||||||
SUBSEQUENT EVENTS [Abstract] | ' | |||||||||
SUBSEQUENT EVENTS | ' | |||||||||
11. SUBSEQUENT EVENTS | ||||||||||
Subsequent to the fiscal year end, the holders of the Convertible Note Payable dated February 28, 2013 elected to convert principal and accrued interest in the amounts shown below into shares of common stock at a rate of $0.04 per share. On the conversion date, the unamortized discount related to the principal amount converted was immediately amortized to interest expense. No gain or loss was recognized on the conversions as they occurred within the terms of the agreement which provided for conversion at $0.04 per share. | ||||||||||
Date | Amount Converted | Number of | Unamortized | |||||||
Shares Issued | Discount | |||||||||
25-Oct-13 | $ | 20,000 | 500,000 | $ | 13,906 | |||||
31-Oct-13 | 20,000 | 500,000 | 15,538 | |||||||
10-Dec-13 | 10,000 | 250,000 | 5,453 | |||||||
12-Dec-13 | 20,000 | 500,000 | 14,681 | |||||||
Total | $ | 70,000 | 1,750,000 | $ | 49,578 |
SUPPLEMENTAL_OIL_AND_GAS_INFOR
SUPPLEMENTAL OIL AND GAS INFORMATION (UNAUDITED) | 12 Months Ended | ||||||||||
Sep. 30, 2013 | |||||||||||
SUPPLEMENTAL OIL AND GAS INFORMATION (UNAUDITED) [Abstract] | ' | ||||||||||
SUPPLEMENTAL OIL AND GAS INFORMATION (UNAUDITED) | ' | ||||||||||
12. SUPPLEMENTAL OIL AND GAS INFORMATION (UNAUDITED) | |||||||||||
The following supplemental information regarding our oil and gas activities is presented pursuant to the disclosure requirements promulgated by the SEC and ASC 932, Extractive Activities -Oil and Gas, (ASC 932). | |||||||||||
Users of this information should be aware that the process of estimating quantities of "proved" and "proved developed" oil and natural gas reserves is very complex, requiring significant subjective decisions in the evaluation of all available geological, engineering and economic data for each reservoir. The data for a given reservoir may also change substantially over time as a result of numerous factors including, but not limited to, additional development activity, evolving production history and continual reassessment of the viability of production under varying economic conditions. As a result, revisions to existing reserve estimates may occur from time to time. Although every reasonable effort is made to ensure reserve estimates reported represent the most accurate assessments possible, the subjective decisions and variances in available data for various reservoirs make these estimates generally less precise than other estimates included in the financial statement disclosures. | |||||||||||
Proved reserves represent estimated quantities of natural gas, crude oil and condensate that geological and engineering data demonstrate, with reasonable certainty, to be recoverable in future years from known reservoirs under economic and operating conditions in effect when the estimates were made. Proved developed reserves are proved reserves expected to be recovered through wells and equipment in place and under operating methods used when the estimates were made. In the following table, natural gas liquids are included in natural gas reserves. The oil and natural gas liquids price as of September 30, 2013 is based on the 12-month un-weighted average of the first of the month prices of the NYMEX (Cushing, OK WTI) posted price which equates to $98.38 per barrel. The gas price as of September 30, 2013 is based on the 12-month un-weighted average of the first of the month prices of the NYMEX (Cushing, OK WTI) spot price which equates to $3.50 per Mcf. The oil and natural gas liquids price as of September 30, 2012 is based on the 12-month un-weighted average of the first of the month prices of the NYMEX (Cushing, OK WTI) posted price which equates to $94.97 per barrel. The gas price as of September 30, 2012 is based on the 12-month un-weighted average of the first of the month prices of the NYMEX (Cushing, OK WTI) spot price which equates to $2.79 per Mcf. The base prices were adjusted for heating content, premiums and product differentials based on historical revenue statements. All prices are held constant in accordance with SEC guidelines. All proved reserves are located in the United States in the states of Alabama and Texas. | |||||||||||
The following table illustrates our estimated net proved reserves, including changes, and proved developed reserves for the periods indicated, as estimated by third party reservoir engineers. Our proved reserves are located in the United States of America, our home country. | |||||||||||
Proved Reserves | |||||||||||
Oil | Gas | Total | |||||||||
(Barrels) | (MCF) | (BOE) | |||||||||
Balance - September 30, 2011 | - | - | - | ||||||||
New discoveries and extensions | 6,120 | 5,704 | 7,071 | ||||||||
Balance - September 30, 2012 | 6,120 | 5,704 | 7,071 | ||||||||
Revisions of previous estimates | (5,085 | ) | (5,553 | ) | (6,010 | ) | |||||
Purchases of minerals in place | 1,768 | - | 1,768 | ||||||||
Sales of oil and gas produced | (640 | ) | (51 | ) | (649 | ) | |||||
Balance - September 30, 2013 | 2,163 | 100 | 2,180 | ||||||||
Proved Reserves as of September 30, 2013 | |||||||||||
Oil | Gas | Total | |||||||||
(Barrels) | (MCF) | (BOE) | |||||||||
Proved developed producing | 2,163 | 100 | 2,180 | ||||||||
Proved developed non-producing | - | - | - | ||||||||
Proved undeveloped | - | - | - | ||||||||
Total Proved reserves | 2,163 | 100 | 2,180 | ||||||||
Proved Reserves as of September 30, 2012 | |||||||||||
Oil | Gas | Total | |||||||||
(Barrels) | (MCF) | (BOE) | |||||||||
Proved developed producing | - | - | - | ||||||||
Proved developed non-producing | 6,120 | 5,704 | 7,071 | ||||||||
Proved undeveloped | - | - | - | ||||||||
Total Proved reserves | 6,120 | 5,704 | 7,071 | ||||||||
The reserves in this report have been estimated using deterministic methods. For wells classified as proved developed producing where sufficient production history existed, reserves were based on individual well performance evaluation and production decline curve extrapolation techniques. For undeveloped locations and wells that lacked sufficient production history, reserves were based on analogy to producing wells within the same area exhibiting similar geologic and reservoir characteristics, combined with volumetric methods. The volumetric estimates were based on geologic maps and rock and fluid properties derived from well logs, core data, pressure measurements, and fluid samples. Well spacing was determined from drainage patterns derived from a combination of performance-based recoveries and volumetric estimates for each area or field. Proved undeveloped locations were limited to areas of uniformly high quality reservoir properties, between existing commercial producers. | |||||||||||
Capitalized Costs Related to Oil and Gas Activities | |||||||||||
The following table illustrates the total amount of capitalized costs relating to oil and natural gas producing activities and the total amount of related accumulated depreciation, depletion and amortization. All oil and gas properties are located in the United States of America. | |||||||||||
2013 | 2012 | ||||||||||
Unevaluated properties | $ | 200,575 | $ | 153,264 | |||||||
Evaluated properties | 264,589 | 128,000 | |||||||||
465,164 | 281,264 | ||||||||||
Less depreciation, depletion, amortization and impairment | 140,812 | - | |||||||||
Net capitalized cost | $ | 324,352 | $ | 281,264 | |||||||
Costs Incurred in Oil and Gas Activities | |||||||||||
All costs incurred associated with oil and gas activities were incurred in the United States of America. Costs incurred in property acquisition, exploration and development activities were as follows. | |||||||||||
2013 | 2012 | ||||||||||
Property acquisition | |||||||||||
Unproved | $ | 82,311 | $ | 280,764 | |||||||
Proved | 75,000 | - | |||||||||
Exploration | - | - | |||||||||
Development | 26,589 | - | |||||||||
Cost recovery | - | - | |||||||||
Total costs incurred | $ | 183,900 | $ | 280,764 | |||||||
Costs Excluded | |||||||||||
Our excluded costs relate to an ongoing project in Louisiana. As of September 30, 2013, the wells is currently being drilled. We anticipate including the excluded costs in the amortization base within the next fiscal year. | |||||||||||
Costs Excluded by Year Incurred as of September 30, 2013 | |||||||||||
Year Incurred | Acquisition Costs | Total | |||||||||
2012 | $ | 153,264 | $ | 153,264 | |||||||
2013 | 47,311 | 47,311 | |||||||||
Total | $ | 200,575 | $ | 200,575 | |||||||
Changes in Costs Excluded by Country | |||||||||||
United States | |||||||||||
Balance at September 30, 2011 | $ | - | |||||||||
Additional Costs Incurred | 280,764 | ||||||||||
Costs Transferred to DD&A Pool | (127,500 | ) | |||||||||
Balance at September 30, 2012 | $ | 153,264 | |||||||||
Additional Costs Incurred | 82,311 | ||||||||||
Costs Transferred to DD&A Pool | (35,000 | ) | |||||||||
Balance at September 30, 2013 | $ | 200,575 | |||||||||
Standardized Measure of Discounted Future Net Cash Flows Relating to Proved Oil and Natural Gas Reserves | |||||||||||
The following Standardized Measure of Discounted Future Net Cash Flow information has been developed utilizing ASC 932, Extractive Activities -Oil and Gas, (ASC 932) procedures and based on estimated oil and natural gas reserve and production volumes. It can be used for some comparisons, but should not be the only method used to evaluate us or our performance. Further, the information in the following table may not represent realistic assessments of future cash flows, nor should the Standardized Measure of Discounted Future Net Cash Flow be viewed as representative of our current value. | |||||||||||
We believe that the following factors should be taken into account when reviewing the following information: | |||||||||||
● | future costs and selling prices will probably differ from those required to be used in these calculations; | ||||||||||
● | due to future market conditions and governmental regulations, actual rates of production in future years may vary significantly from the rate of production assumed in the calculations; | ||||||||||
● | a 10% discount rate may not be reasonable as a measure of the relative risk inherent in realizing future net oil and natural gas revenues; and | ||||||||||
● | future net revenues may be subject to different rates of income taxation. | ||||||||||
Under the Standardized Measure, the future cash inflows were estimated by applying the un-weighted 12-month average of the first day of the month cash price quotes, except for volumes subject to fixed price contracts, to the estimated future production of year-end proved reserves. Estimates of future income taxes are computed using current statutory income tax rates including consideration for estimated future statutory depletion and tax credits. The resulting net cash flows are reduced to present value amounts by applying a 10% discount factor. | |||||||||||
The Standardized Measure is as follows: | |||||||||||
2013 | 2012 | ||||||||||
Future cash inflows | $ | 212,982 | $ | 549,360 | |||||||
Future production costs | (119,957 | ) | (18,450 | ) | |||||||
Future development costs | (30,250 | ) | (- | ) | |||||||
Future income tax expenses | (- | ) | (112,955 | ) | |||||||
Future net cash flows | 62,775 | 417,955 | |||||||||
10% annual discount for estimated timing of cash flows | (837 | ) | (131,626 | ) | |||||||
Future net cash flows at end of year | $ | 61,938 | $ | 286,329 | |||||||
Changes in Standardized Measure of Discounted Future Net Cash Flows Relating to Proved Oil and Natural Gas Reserves | |||||||||||
The following is a summary of the changes in the Standardized Measure of discounted future net cash flows for our proved oil and natural gas reserves during of the years ended September 30, 2103 and 2012: | |||||||||||
2013 | 2012 | ||||||||||
Standardized measure of discounted future net cash flows at beginning of year | $ | 286,329 | $ | - | |||||||
Discoveries and extensions | - | 363,711 | |||||||||
Revisions of previous estimates | (315,803 | ) | - | ||||||||
Purchases of minerals in place | 28,735 | - | |||||||||
Sales of oil and gas produced | (51,076 | ) | - | ||||||||
Change in income taxes | 77,382 | (77,382 | ) | ||||||||
Accretion of discount | 36,371 | - | |||||||||
Standardized measure of discounted future net cash flows at year end | $ | 61,938 | $ | 286,329 | |||||||
The following schedule includes only the revenues from the production and sale of oil and gas. There is no income tax provision, because the results of operations for producing activities resulted in a loss for the year ended September 30, 2013. The results of operations exclude general office overhead and interest expense attributable to oil and gas activities. | |||||||||||
Results of Operations for Producing Activities | |||||||||||
2013 | |||||||||||
Net revenues from production | $ | 57,361 | |||||||||
Expenses | |||||||||||
Lease operating expense | 6,285 | ||||||||||
Accretion | 330 | ||||||||||
Operating expenses | 6,615 | ||||||||||
Depreciation, depletion and amortization | 60,671 | ||||||||||
Impairment of oil and gas properties | 80,141 | ||||||||||
Total expenses | 147,427 | ||||||||||
Results of operations | $ | (114,358 | ) | ||||||||
Depreciation, depletion and amortization rate per net equivalent BOE | $ | 93.48 | |||||||||
We did not recognize any revenue or expense from the production and sale of oil and gas during the year ended September 30, 2012. |
SIGNIFICANT_ACCOUNTING_POLICIE1
SIGNIFICANT ACCOUNTING POLICIES (Policy) | 12 Months Ended | |||||||||||||
Sep. 30, 2013 | ||||||||||||||
SIGNIFICANT ACCOUNTING POLICIES [Abstract] | ' | |||||||||||||
FASB Codification | ' | |||||||||||||
FASB Codification | ||||||||||||||
In June 2009, the FASB issued ASC 105, Generally Accepted Accounting Principles, effective for interim and annual reporting periods ending after September 15, 2009. This statement establishes the Codification as the source of authoritative accounting principles used in the preparation of financial statements in conformity with generally accepted accounting principles. The Codification does not replace or affect guidance issued by the SEC or its staff. As a result of the Codification, the references to authoritative accounting pronouncements included herein in this Annual Report on Form 10-K now refer to the Codification topic section rather than a specific accounting rule as was past practice. | ||||||||||||||
Use of Estimates | ' | |||||||||||||
Use of Estimates | ||||||||||||||
The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. | ||||||||||||||
Cash and Cash Equivalents | ' | |||||||||||||
Cash and Cash Equivalents | ||||||||||||||
All cash, other than held in escrow, is maintained with a major financial institution in the United States. Deposits with this bank may exceed the amount of insurance provided on such deposits. Temporary cash investments with an original maturity of three months or less are considered to be cash equivalents. | ||||||||||||||
Credit Risk Due to Certain Concentrations | ' | |||||||||||||
Credit Risk Due to Certain Concentrations | ||||||||||||||
We extend credit, primarily in the form of uncollateralized oil and gas sales through the operators of our working interests, to various companies in the oil and gas industry, which results in a concentration of credit risk. The concentration of credit risk may be affected by changes in economic or other conditions within our industry and may accordingly impact our overall credit risk. However, we believe that the risk of these unsecured receivables is mitigated by the nature of the companies to which we extend credit. For the year ended September 30, 2013, two operators accounted for 86% and 14% of our oil and gas sales. Those operators account for 49% and 51% of accounts receivable as of September 30, 2013. We did not recognize any credit losses during the year ended September 30, 2013. We have not recognized an allowance for doubtful accounts as of September 30, 2013. All amounts receivable as of September 30, 2013 were collected subsequent to year end. We did not recognize any revenue during the year ended September 30, 2012. | ||||||||||||||
Oil and Gas Properties | ' | |||||||||||||
Oil and Gas Properties | ||||||||||||||
The Company follows the full cost method of accounting for its oil and gas properties, whereby all costs incurred in connection with the acquisition, exploration for and development of petroleum and natural gas reserves are capitalized. Such costs include lease acquisition, geological and geophysical activities, rentals on non-producing leases, drilling, completing and equipping of oil and gas wells and administrative costs directly attributable to those activities and asset retirement costs. Disposition of oil properties are accounted for as a reduction of capitalized costs, with no gain or loss recognized unless such adjustment would significantly alter the relationship between capital costs and proved reserves of oil, in which case the gain or loss is recognized in the statement of operations. | ||||||||||||||
Depletion of capitalized oil properties and estimated future development costs, excluding unproved properties, are based on the units-of-production method based on proved reserves. Net capitalized costs of oil properties, less related deferred taxes, are limited to the lower of unamortized cost or the cost ceiling, defined as the sum of the present value of estimated future net revenues from proved reserves based on unescalated prices discounted at 10 percent, plus the cost of properties not being amortized, if any, plus the lower of cost or estimated fair value of unproved properties included in the costs being amortized, if any, less related income taxes. As of September 30, 2013, the Company has oil properties in the amount of $200,575 which are being excluded from amortization because they have not been evaluated to determine whether proved reserves are associated with those properties. Costs in excess of the present value of estimated future net revenues as discussed above are charged to impairment expense. The Company applies the full cost ceiling test on a quarterly basis on the date of the latest balance sheet presented. | ||||||||||||||
Based on management's review, 100% of the unproved oil properties balance as of September 30, 2013 is expected to be added to amortization during the year ending September 30, 2014. The table below sets forth the cost of unproved properties excluded from the amortization base as of September 30, 2013 and notes the year in which the associated costs were incurred: | ||||||||||||||
Year of Acquisition | ||||||||||||||
2011 | 2012 | 2013 | Total | |||||||||||
Acquisition costs | $ | - | $ | 153,264 | $ | 47,311 | $ | 200,575 | ||||||
Development costs | - | - | - | - | ||||||||||
Exploration costs | - | - | - | - | ||||||||||
Total | $ | - | $ | 153,264 | $ | 47,311 | $ | 200,575 | ||||||
As discussed in Note 6, asset retirement costs are recognized when the asset is placed in service, and are included in the amortization base and amortized over proved reserves using the units of production method. Asset retirement costs are estimated by management using existing regulatory requirements and anticipated future inflation rates. | ||||||||||||||
Common Stock | ' | |||||||||||||
Common Stock | ||||||||||||||
The Company records common stock issuances when all of the legal requirements for the issuance of such common stock have been satisfied. | ||||||||||||||
Revenue Recognition | ' | |||||||||||||
Revenue Recognition | ||||||||||||||
Sales of crude oil are recognized when the delivery to the purchaser has occurred and title has been transferred. This occurs when oil has been delivered to a pipeline or a tank lifting has occurred. Crude oil is priced on the delivery date based upon prevailing prices published by purchasers with certain adjustments related to oil quality and physical location. | ||||||||||||||
Research and development expenses | ' | |||||||||||||
Research and development expenses | ||||||||||||||
Expenditures for research and development of products are expensed as incurred. There have been no research and development costs incurred for the year ended September 30, 2013. | ||||||||||||||
Advertising Costs | ' | |||||||||||||
Advertising Costs | ||||||||||||||
The Company's policy regarding advertising is to expense advertising costs as incurred. There have been no advertising costs incurred for the period ended September 30, 2013. | ||||||||||||||
Income Taxes | ' | |||||||||||||
Income Taxes | ||||||||||||||
Income taxes are provided for the tax effects of transactions reported in the financial statements and consist of taxes currently due plus deferred taxes resulting from temporary differences. Such temporary differences result from differences in the carrying value of assets and liabilities for tax and financial reporting purposes. The deferred tax assets and liabilities represent the future tax consequences of those differences, which will either be taxable or deductible when the assets and liabilities are recovered or settled. Valuation allowances are established when necessary to reduce deferred tax assets to the amount expected to be realized. | ||||||||||||||
The Company adopted the provisions of FASB ASC 740-10 "Uncertainty in Income Taxes" (ASC 740-10), on January 1, 2007. The Company has not recognized a liability as a result of the implementation of ASC 740-10. A reconciliation of the beginning and ending amount of unrecognized tax benefits has not been provided since there is no unrecognized benefit since the date of adoption. The Company has not recognized interest expense or penalties as a result of the implementation of ASC 740-10. If there were an unrecognized tax benefit, the Company would recognize interest accrued related to unrecognized tax benefits in interest expense and penalties in operating expenses. | ||||||||||||||
Earnings (Loss) Per Share | ' | |||||||||||||
Earnings (Loss) Per Share | ||||||||||||||
Basic loss per share is computed by dividing net loss attributable to common stockholders by the weighted average common shares outstanding for the period. Diluted loss per share is computed giving effect to all potentially dilutive common shares. Potentially dilutive common shares may consist of incremental shares issuable upon the exercise of stock options and warrants and the conversion of notes payable to common stock. In periods in which a net loss has been incurred, all potentially dilutive common shares are considered antidilutive and thus are excluded from the calculation. At September 30, 2013 and 2012, the Company did not have any potentially dilutive common shares. | ||||||||||||||
Financial Instruments | ' | |||||||||||||
Financial Instruments | ||||||||||||||
In September 2006, the Financial Accounting Standards Board ("FASB") introduced a framework for measuring fair value and expanded required disclosure about fair value measurements of assets and liabilities. The Company adopted the standard for those financial assets and liabilities as of the beginning of the 2008 fiscal year and the impact of adoption was not significant. FASB Accounting Standards Codification ("ASC") 820 "Fair Value Measurements and Disclosures" ("ASC 820") defines fair value as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. ASC 820 also establishes a fair value hierarchy that distinguishes between (1) market participant assumptions developed based on market data obtained from independent sources (observable inputs) and (2) an entity's own assumptions about market participant assumptions developed based on the best information available in the circumstances (unobservable inputs). The fair value hierarchy consists of three broad levels, which gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3). The three levels of the fair value hierarchy are described below: | ||||||||||||||
· | Level 1 - Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities. | |||||||||||||
· | Level 2 - Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly, including quoted prices for similar assets or liabilities in active markets; quoted prices for identical or similar assets or liabilities in markets that are not active; inputs other than quoted prices that are observable for the asset or liability (e.g., interest rates); and inputs that are derived principally from or corroborated by observable market data by correlation or other means. | |||||||||||||
· | Level 3 - Inputs that are both significant to the fair value measurement and unobservable. | |||||||||||||
Fair value estimates discussed herein are based upon certain market assumptions and pertinent information available to management as of September 30, 2013. The respective carrying value of certain on-balance-sheet financial instruments approximated their fair values due to the short-term nature of these instruments. These financial instruments include accounts receivable, other current assets, accounts payable, accrued compensation and accrued expenses. The fair value of the Company's notes payable is estimated based on current rates that would be available for debt of similar terms which is not significantly different from its stated value. | ||||||||||||||
On September 16, 2010, the Company applied ASC 820 for all non-financial assets and liabilities measured at fair value on a non-recurring basis. The adoption of ASC 820 for non-financial assets and liabilities did not have a significant impact on the Company's financial statements. | ||||||||||||||
The following table presents assets that were measured and recognized at fair value as of September 30, 2013 and 2012 and the years then ended on a recurring and nonrecurring basis: | ||||||||||||||
30-Sep-13 | Total | |||||||||||||
Realized | ||||||||||||||
Description | Level 1 | Level 2 | Level 3 | Loss | ||||||||||
Asset retirement obligation | $ | - | $ | - | $ | 21,644 | $ | - | ||||||
Totals | $ | - | $ | - | $ | 21, 644 | $ | - | ||||||
30-Sep-12 | Total | |||||||||||||
Realized | ||||||||||||||
Description | Level 1 | Level 2 | Level 3 | Loss | ||||||||||
Asset retirement obligation | $ | - | $ | - | $ | 500 | $ | - | ||||||
Totals | $ | - | $ | - | $ | 500 | $ | - | ||||||
Recent Accounting Pronouncements | ' | |||||||||||||
Recent Accounting Pronouncements | ||||||||||||||
In February 2013, the Financial Accounting Standards Board ("FASB") issued ASU No. 2013-02, Comprehensive Income (Topic 220): Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income, to improve the transparency of reporting these reclassifications. Other comprehensive income includes gains and losses that are initially excluded from net income for an accounting period. Those gains and losses are later reclassified out of accumulated other comprehensive income into net income. The amendments in the ASU do not change the current requirements for reporting net income or other comprehensive income in financial statements. All of the information that this ASU requires already is required to be disclosed elsewhere in the financial statements under U.S. GAAP. The new amendments will require an organization to: | ||||||||||||||
· | Present (either on the face of the statement where net income is presented or in the notes) the effects on the line items of net income of significant amounts reclassified out of accumulated other comprehensive income - but only if the item reclassified is required under U.S. GAAP to be reclassified to net income in its entirety in the same reporting period; and | |||||||||||||
· | Cross-reference to other disclosures currently required under U.S. GAAP for other reclassification items (that are not required under U.S. GAAP) to be reclassified directly to net income in their entirety in the same reporting period. This would be the case when a portion of the amount reclassified out of accumulated other comprehensive income is initially transferred to a balance sheet account (e.g., inventory for pension-related amounts) instead of directly to income or expense. | |||||||||||||
The amendments apply to all public and private companies that report items of other comprehensive income. Public companies are required to comply with these amendments for all reporting periods (interim and annual). The amendments are effective for reporting periods beginning after December 15, 2012, for public companies. Early adoption is permitted. The adoption of ASU No. 2013-02 is not expected to have a material impact on our financial position or results of operations. | ||||||||||||||
In January 2013, the FASB issued ASU No. 2013-01, Balance Sheet (Topic 210): Clarifying the Scope of Disclosures about Offsetting Assets and Liabilities, which clarifies which instruments and transactions are subject to the offsetting disclosure requirements originally established by ASU 2011-11. The new ASU addresses preparer concerns that the scope of the disclosure requirements under ASU 2011-11 was overly broad and imposed unintended costs that were not commensurate with estimated benefits to financial statement users. In choosing to narrow the scope of the offsetting disclosures, the Board determined that it could make them more operable and cost effective for preparers while still giving financial statement users sufficient information to analyze the most significant presentation differences between financial statements prepared in accordance with U.S. GAAP and those prepared under IFRSs. Like ASU 2011-11, the amendments in this update will be effective for fiscal periods beginning on, or after January 1, 2013. The adoption of ASU 2013-01 is not expected to have a material impact on our financial position or results of operations. | ||||||||||||||
In October 2012, the FASB issued Accounting Standards Update ASU 2012-04, "Technical Corrections and Improvements" in Accounting Standards Update No. 2012-04. The amendments in this update cover a wide range of Topics in the Accounting Standards Codification. These amendments include technical corrections and improvements to the Accounting Standards Codification and conforming amendments related to fair value measurements. The amendments in this update will be effective for fiscal periods beginning after December 15, 2012. The adoption of ASU 2012-04 is not expected to have a material impact on our financial position or results of operations. | ||||||||||||||
In August 2012, the FASB issued ASU 2012-03, "Technical Amendments and Corrections to SEC Sections: Amendments to SEC Paragraphs Pursuant to SEC Staff Accounting Bulletin (SAB) No. 114, Technical Amendments Pursuant to SEC Release No. 33-9250, and Corrections Related to FASB Accounting Standards Update 2010-22 (SEC Update)" in Accounting Standards Update No. 2012-03. This update amends various SEC paragraphs pursuant to the issuance of SAB No. 114. The adoption of ASU 2012-03 is not expected to have a material impact on our financial position or results of operations. | ||||||||||||||
In July 2012, the FASB issued ASU 2012-02, "Intangibles - Goodwill and Other (Topic 350): Testing Indefinite-Lived Intangible Assets for Impairment" in Accounting Standards Update No. 2012-02. This update amends ASU 2011-08, Intangibles - Goodwill and Other (Topic 350): Testing Indefinite-Lived Intangible Assets for Impairment and permits an entity first to assess qualitative factors to determine whether it is more likely than not that an indefinite-lived intangible asset is impaired as a basis for determining whether it is necessary to perform the quantitative impairment test in accordance with Subtopic 350-30, Intangibles - Goodwill and Other - General Intangibles Other than Goodwill. The amendments are effective for annual and interim impairment tests performed for fiscal years beginning after September 15, 2012. Early adoption is permitted, including for annual and interim impairment tests performed as of a date before July 27, 2012, if a public entity's financial statements for the most recent annual or interim period have not yet been issued or, for nonpublic entities, have not yet been made available for issuance. The adoption of ASU 2012-02 has not had a material impact on our financial position or results of operations. | ||||||||||||||
In December 2011, the FASB issued ASU 2011-12, "Deferral of the Effective Date for Amendments to the Presentation of Reclassifications of Items out of Accumulated Other Comprehensive Income in Accounting Standards Update No. 2011-05. This update defers the requirement to present items that are reclassified from accumulated other comprehensive income to net income in both the statement of income where net income is presented and the statement where other comprehensive income is presented. The adoption of ASU 2011-12 has not had a material impact on our financial position or results of operations. | ||||||||||||||
In December 2011, the FASB issued ASU No. 2011-11 "Balance Sheet: Disclosures about Offsetting Assets and Liabilities" ("ASU 2011-11"). This Update requires an entity to disclose information about offsetting and related arrangements to enable users of its financial statements to understand the effect of those arrangements on its financial position. The objective of this disclosure is to facilitate comparison between those entities that prepare their financial statements on the basis of U.S. GAAP and those entities that prepare their financial statements on the basis of IFRS. The amended guidance is effective for annual reporting periods beginning on or after January 1, 2013, and interim periods within those annual periods. The Company is currently evaluating the impact, if any, that the adoption of this pronouncement may have on its results of operations or financial position. | ||||||||||||||
Other recent accounting pronouncements issued are not believed by management to have a material impact on the Company's present or future financial statements. |
SIGNIFICANT_ACCOUNTING_POLICIE2
SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended | |||||||||||||
Sep. 30, 2013 | ||||||||||||||
SIGNIFICANT ACCOUNTING POLICIES [Abstract] | ' | |||||||||||||
Schedule of Costs of Unproved Properties Excluded from Amortization Base | ' | |||||||||||||
The table below sets forth the cost of unproved properties excluded from the amortization base as of September 30, 2013 and notes the year in which the associated costs were incurred: | ||||||||||||||
Year of Acquisition | ||||||||||||||
2011 | 2012 | 2013 | Total | |||||||||||
Acquisition costs | $ | - | $ | 153,264 | $ | 47,311 | $ | 200,575 | ||||||
Development costs | - | - | - | - | ||||||||||
Exploration costs | - | - | - | - | ||||||||||
Total | $ | - | $ | 153,264 | $ | 47,311 | $ | 200,575 | ||||||
Schedule of Assets Measured at Fair Value on a Recurring and Nonrecurring Basis | ' | |||||||||||||
The following table presents assets that were measured and recognized at fair value as of September 30, 2013 and 2012 and the years then ended on a recurring and nonrecurring basis: | ||||||||||||||
30-Sep-13 | Total | |||||||||||||
Realized | ||||||||||||||
Description | Level 1 | Level 2 | Level 3 | Loss | ||||||||||
Asset retirement obligation | $ | - | $ | - | $ | 21,644 | $ | - | ||||||
Totals | $ | - | $ | - | $ | 21, 644 | $ | - | ||||||
30-Sep-12 | Total | |||||||||||||
Realized | ||||||||||||||
Description | Level 1 | Level 2 | Level 3 | Loss | ||||||||||
Asset retirement obligation | $ | - | $ | - | $ | 500 | $ | - | ||||||
Totals | $ | - | $ | - | $ | 500 | $ | - |
OIL_AND_GAS_PROPERTIES_Tables
OIL AND GAS PROPERTIES (Tables) | 12 Months Ended | ||||||||
Sep. 30, 2013 | |||||||||
OIL AND GAS PROPERTIES [Abstract] | ' | ||||||||
Schedule of Oil and Gas Properties | ' | ||||||||
Oil and gas properties as of September 30, 2013 and 2012 consisted of the following: | |||||||||
September 30, | |||||||||
2013 | 2012 | ||||||||
Evaluated Properties | |||||||||
Costs subject to depletion | $ | 264,589 | $ | 128,000 | |||||
Accumulated depletion, depreciation and amortization | (60,671 | ) | - | ||||||
Accumulated impairment | (80,141 | ) | - | ||||||
Total evaluated properties | 123,777 | 128,000 | |||||||
Unevaluated properties | 200,575 | 153,264 | |||||||
Net oil and gas properties | $ | 324,352 | $ | 281,264 |
ASSET_RETIREMENT_OBLIGATION_Ta
ASSET RETIREMENT OBLIGATION (Tables) | 12 Months Ended | |||||||
Sep. 30, 2013 | ||||||||
ASSET RETIREMENT OBLIGATION [Abstract] | ' | |||||||
Schedule of Changes in Asset Retirement Obligations | ' | |||||||
The following table reflects the changes in the ARO during years ended September 30, 2013 and 2012: | ||||||||
Year Ended | ||||||||
September 30, | ||||||||
2013 | 2012 | |||||||
Asset retirement obligation - beginning of year | $ | 500 | $ | - | ||||
Current year revision to previous estimates | (155 | ) | - | |||||
Asset retirement obligation on properties drilled or acquired | 20,969 | 500 | ||||||
Current year accretion | 330 | - | ||||||
Asset retirement obligation - end of year | $ | 21,644 | $ | 500 |
CONVERTIBLE_NOTES_PAYABLE_Tabl
CONVERTIBLE NOTES PAYABLE (Tables) | 12 Months Ended | |||||||||
Sep. 30, 2013 | ||||||||||
Convertible Note Payable January 31, 2012 [Member] | ' | |||||||||
Debt Conversion [Line Items] | ' | |||||||||
Schedule of Notes Payable Converted | ' | |||||||||
Date | Amount Converted | Number of | Unamortized | |||||||
Shares Issued | Discount | |||||||||
30-Nov-12 | $ | 22,000 | 550,000 | $ | 18,262 | |||||
7-Jan-13 | 12,000 | 300,000 | 9,543 | |||||||
8-Feb-13 | 25,600 | 640,000 | 19,824 | |||||||
12-Mar-13 | 28,000 | 700,000 | 21,029 | |||||||
21-Mar-13 | 28,000 | 700,000 | 20,567 | |||||||
24-Apr-13 | 17,000 | 425,000 | 10,360 | |||||||
3-May-13 | 12,093 | 302,315 | - | |||||||
Total | $ | 144,693 | 3,617,315 | $ | 99,585 | |||||
Convertible Note Payable February 28, 2013 [Member] | ' | |||||||||
Debt Conversion [Line Items] | ' | |||||||||
Schedule of Notes Payable Converted | ' | |||||||||
Date | Amount Converted | Number of | Unamortized | |||||||
Shares Issued | Discount | |||||||||
1-Sep-13 | $ | 32,000 | 800,000 | $ | 12,887 | |||||
17-Sep-13 | 32,000 | 800,000 | 25,745 | |||||||
Total | $ | 64,000 | 1,600,000 | $ | 38,632 |
INCOME_TAXES_Tables
INCOME TAXES (Tables) | 12 Months Ended | ||||||
Sep. 30, 2013 | |||||||
INCOME TAXES [Abstract] | ' | ||||||
Reconciliation of Federal Statutory Tax Rate to Effective Tax Rate | ' | ||||||
The items causing this difference are as follows: | |||||||
Year ended September 30, | |||||||
2013 | 2012 | ||||||
Tax benefit at U.S. statutory rate | $ | 356,249 | $ | 127,529 | |||
Valuation allowance | (356,249 | ) | -127,529 | ||||
$ | - | $ | - |
SUBSEQUENT_EVENTS_Tables
SUBSEQUENT EVENTS (Tables) | 12 Months Ended | |||||||||
Sep. 30, 2013 | ||||||||||
SUBSEQUENT EVENTS [Abstract] | ' | |||||||||
Schedule of Subsequent Events | ' | |||||||||
Date | Amount Converted | Number of | Unamortized | |||||||
Shares Issued | Discount | |||||||||
25-Oct-13 | $ | 20,000 | 500,000 | $ | 13,906 | |||||
31-Oct-13 | 20,000 | 500,000 | 15,538 | |||||||
10-Dec-13 | 10,000 | 250,000 | 5,453 | |||||||
12-Dec-13 | 20,000 | 500,000 | 14,681 | |||||||
Total | $ | 70,000 | 1,750,000 | $ | 49,578 |
SUPPLEMENTAL_OIL_AND_GAS_INFOR1
SUPPLEMENTAL OIL AND GAS INFORMATION (UNAUDITED) (Tables) | 12 Months Ended | ||||||||||
Sep. 30, 2013 | |||||||||||
SUPPLEMENTAL OIL AND GAS INFORMATION (UNAUDITED) [Abstract] | ' | ||||||||||
Schedule of Proved Reserves | ' | ||||||||||
Oil | Gas | Total | |||||||||
(Barrels) | (MCF) | (BOE) | |||||||||
Balance - September 30, 2011 | - | - | - | ||||||||
New discoveries and extensions | 6,120 | 5,704 | 7,071 | ||||||||
Balance - September 30, 2012 | 6,120 | 5,704 | 7,071 | ||||||||
Revisions of previous estimates | (5,085 | ) | (5,553 | ) | (6,010 | ) | |||||
Purchases of minerals in place | 1,768 | - | 1,768 | ||||||||
Sales of oil and gas produced | (640 | ) | (51 | ) | (649 | ) | |||||
Balance - September 30, 2013 | 2,163 | 100 | 2,180 | ||||||||
Proved Reserves as of September 30, 2013 | |||||||||||
Oil | Gas | Total | |||||||||
(Barrels) | (MCF) | (BOE) | |||||||||
Proved developed producing | 2,163 | 100 | 2,180 | ||||||||
Proved developed non-producing | - | - | - | ||||||||
Proved undeveloped | - | - | - | ||||||||
Total Proved reserves | 2,163 | 100 | 2,180 | ||||||||
Proved Reserves as of September 30, 2012 | |||||||||||
Oil | Gas | Total | |||||||||
(Barrels) | (MCF) | (BOE) | |||||||||
Proved developed producing | - | - | - | ||||||||
Proved developed non-producing | 6,120 | 5,704 | 7,071 | ||||||||
Proved undeveloped | - | - | - | ||||||||
Total Proved reserves | 6,120 | 5,704 | 7,071 | ||||||||
Schedule of Capitalized Costs Related to Oil and Gas Activities | ' | ||||||||||
2013 | 2012 | ||||||||||
Unevaluated properties | $ | 200,575 | $ | 153,264 | |||||||
Evaluated properties | 264,589 | 128,000 | |||||||||
465,164 | 281,264 | ||||||||||
Less depreciation, depletion, amortization and impairment | 140,812 | - | |||||||||
Net capitalized cost | $ | 324,352 | $ | 281,264 | |||||||
Costs Incurred in Oil and Gas Activities | ' | ||||||||||
2013 | 2012 | ||||||||||
Property acquisition | |||||||||||
Unproved | $ | 82,311 | $ | 280,764 | |||||||
Proved | 75,000 | - | |||||||||
Exploration | - | - | |||||||||
Development | 26,589 | - | |||||||||
Cost recovery | - | - | |||||||||
Total costs incurred | $ | 183,900 | $ | 280,764 | |||||||
Schedule of Costs Excluded by Year | ' | ||||||||||
Costs Excluded by Year Incurred as of September 30, 2013 | |||||||||||
Year Incurred | Acquisition Costs | Total | |||||||||
2012 | $ | 153,264 | $ | 153,264 | |||||||
2013 | 47,311 | 47,311 | |||||||||
Total | $ | 200,575 | $ | 200,575 | |||||||
Schedule of Changes in Costs Excluded by Country | ' | ||||||||||
United States | |||||||||||
Balance at September 30, 2011 | $ | - | |||||||||
Additional Costs Incurred | 280,764 | ||||||||||
Costs Transferred to DD&A Pool | (127,500 | ) | |||||||||
Balance at September 30, 2012 | $ | 153,264 | |||||||||
Additional Costs Incurred | 82,311 | ||||||||||
Costs Transferred to DD&A Pool | (35,000 | ) | |||||||||
Balance at September 30, 2013 | $ | 200,575 | |||||||||
Schedule of Standardized Measure | ' | ||||||||||
The Standardized Measure is as follows: | |||||||||||
2013 | 2012 | ||||||||||
Future cash inflows | $ | 212,982 | $ | 549,360 | |||||||
Future production costs | (119,957 | ) | (18,450 | ) | |||||||
Future development costs | (30,250 | ) | (- | ) | |||||||
Future income tax expenses | (- | ) | (112,955 | ) | |||||||
Future net cash flows | 62,775 | 417,955 | |||||||||
10% annual discount for estimated timing of cash flows | (837 | ) | (131,626 | ) | |||||||
Future net cash flows at end of year | $ | 61,938 | $ | 286,329 | |||||||
Changes in Standardized Measure of Discounted Future Net Cash Flows Relating to Proved Oil and Natural Gas Reserves | ' | ||||||||||
2013 | 2012 | ||||||||||
Standardized measure of discounted future net cash flows at beginning of year | $ | 286,329 | $ | - | |||||||
Discoveries and extensions | - | 363,711 | |||||||||
Revisions of previous estimates | (315,803 | ) | - | ||||||||
Purchases of minerals in place | 28,735 | - | |||||||||
Sales of oil and gas produced | (51,076 | ) | - | ||||||||
Change in income taxes | 77,382 | (77,382 | ) | ||||||||
Accretion of discount | 36,371 | - | |||||||||
Standardized measure of discounted future net cash flows at year end | $ | 61,938 | $ | 286,329 | |||||||
Schedule of Results of Operations for Producing Activities | ' | ||||||||||
2013 | |||||||||||
Net revenues from production | $ | 57,361 | |||||||||
Expenses | |||||||||||
Lease operating expense | 6,285 | ||||||||||
Accretion | 330 | ||||||||||
Operating expenses | 6,615 | ||||||||||
Depreciation, depletion and amortization | 60,671 | ||||||||||
Impairment of oil and gas properties | 80,141 | ||||||||||
Total expenses | 147,427 | ||||||||||
Results of operations | $ | (114,358 | ) | ||||||||
Depreciation, depletion and amortization rate per net equivalent BOE | $ | 93.48 |
BACKGROUND_INFORMATION_Details
BACKGROUND INFORMATION (Details) (USD $) | Sep. 16, 2011 |
BACKGROUND INFORMATION [Abstract] | ' |
Funding to implement the initial business plan phase | $25,000 |
GOING_CONCERN_Details
GOING CONCERN (Details) (USD $) | 12 Months Ended | |
Sep. 30, 2013 | Sep. 30, 2012 | |
GOING CONCERN [Abstract] | ' | ' |
Net loss | $946,111 | $1,109,311 |
Net cash used in operations | $429,524 | $285,023 |
SIGNIFICANT_ACCOUNTING_POLICIE3
SIGNIFICANT ACCOUNTING POLICIES (Narrative) (Details) | 12 Months Ended |
Sep. 30, 2013 | |
Accounts Receivable [Member] | Operator One [Member] | ' |
Concentration Risk [Line Items] | ' |
Concentration risk percentage | 49.00% |
Accounts Receivable [Member] | Operator Two [Member] | ' |
Concentration Risk [Line Items] | ' |
Concentration risk percentage | 51.00% |
Oil and Gas Sales [Member] | Operator One [Member] | ' |
Concentration Risk [Line Items] | ' |
Concentration risk percentage | 86.00% |
Oil and Gas Sales [Member] | Operator Two [Member] | ' |
Concentration Risk [Line Items] | ' |
Concentration risk percentage | 14.00% |
SIGNIFICANT_ACCOUNTING_POLICIE4
SIGNIFICANT ACCOUNTING POLICIES (Oil and Gas Properties) (Details) (USD $) | 12 Months Ended | ||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2011 | |
Cost of unproved properties excluded from amortization, period costs: | ' | ' | ' |
Acquisition costs | $47,311 | $153,264 | ' |
Development costs | ' | ' | ' |
Exploration costs | ' | ' | ' |
Total | 47,311 | 153,264 | ' |
Cost of unproved properties excluded from amortization, cumulative costs: | ' | ' | ' |
Cumulative acquisition costs | 200,575 | 153,264 | ' |
Development costs | ' | ' | ' |
Exploration costs | ' | ' | ' |
Total | $200,575 | $153,264 | ' |
SIGNIFICANT_ACCOUNTING_POLICIE5
SIGNIFICANT ACCOUNTING POLICIES (Financial Instruments) (Details) (USD $) | 12 Months Ended | |
Sep. 30, 2013 | Sep. 30, 2012 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Total realized loss | ' | ' |
Level 1 [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Asset retirement obligation | ' | ' |
Totals | ' | ' |
Level 2 [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Asset retirement obligation | ' | ' |
Totals | ' | ' |
Level 3 [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Asset retirement obligation | 21,644 | 500 |
Totals | $21,644 | $500 |
OIL_AND_GAS_PROPERTIES_Schedul
OIL AND GAS PROPERTIES (Schedule of Oil and Gas Properties) (Details) (USD $) | Sep. 30, 2013 | Sep. 30, 2012 |
OIL AND GAS PROPERTIES [Abstract] | ' | ' |
Costs subject to depletion | $264,589 | $128,000 |
Accumulated depletion, depreciation and amortization | -60,671 | ' |
Accumulated impairment | -80,141 | ' |
Total evaluated properties | 123,777 | 128,000 |
Unevaluated property | 200,575 | 153,264 |
Net oil and gas properties | $324,352 | $281,264 |
OIL_AND_GAS_PROPERTIES_Evaluat
OIL AND GAS PROPERTIES (Evaluated and Unevaluated Properties) (Details) (USD $) | 1 Months Ended | 12 Months Ended | ||||
Aug. 12, 2013 | Jan. 31, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Jan. 19, 2012 | Jan. 03, 2012 | |
OIL AND GAS PROPERTIES [Abstract] | ' | ' | ' | ' | ' | ' |
Revenue received from oil and gas producing activities | ' | ' | $44,930 | ' | ' | ' |
The percentage of drilling cost the company will pay as outlined in Participation Agreement | ' | ' | ' | ' | ' | 25.00% |
The percentage of working interest purchased | ' | ' | ' | ' | 82.50% | ' |
Total estimated costs to drill well | 181,000 | 3,400,000 | ' | ' | ' | ' |
Reduction in percentage of working interest | 1.80% | ' | ' | ' | ' | ' |
Percentage of revenue to be received from well drilling | 1.40% | ' | ' | ' | 64.35% | 13.59% |
Development | 143,264 | ' | 26,589 | ' | ' | ' |
Total cost paid for rights under Big Canyon Prospect | ' | $60,000 | ' | ' | ' | ' |
ASSET_RETIREMENT_OBLIGATION_De
ASSET RETIREMENT OBLIGATION (Details) (USD $) | 12 Months Ended | |
Sep. 30, 2013 | Sep. 30, 2012 | |
ASSET RETIREMENT OBLIGATION [Abstract] | ' | ' |
Asset retirement obligation - beginning of year | $500 | ' |
Current year revision to previous estimates | -155 | ' |
Asset retirement obligation on properties drilled or acquired | 20,969 | 500 |
Current year accretion | 330 | ' |
Asset retirement obligation - end of year | $21,644 | $500 |
ADVANCES_FROM_THIRD_PARTIES_De
ADVANCES FROM THIRD PARTIES (Details) (USD $) | 12 Months Ended | |
Sep. 30, 2013 | Sep. 30, 2012 | |
Debt Instrument [Line Items] | ' | ' |
Proceeds from advances | $718,999 | $545,204 |
Advances payable | ' | 329,050 |
Interest expense | $40,785 | ' |
CONVERTIBLE_NOTES_PAYABLE_Deta
CONVERTIBLE NOTES PAYABLE (Details) (USD $) | 1 Months Ended | 12 Months Ended | 1 Months Ended | 12 Months Ended | 1 Months Ended | 12 Months Ended | ||||||||||||||||||||||
31-May-13 | Apr. 30, 2013 | Feb. 28, 2013 | Jan. 31, 2013 | Nov. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 17, 2013 | 3-May-13 | Apr. 24, 2013 | Mar. 21, 2013 | Mar. 12, 2013 | Feb. 08, 2013 | Jan. 07, 2013 | Feb. 28, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | |
Convertible Note Payable February 28, 2013 [Member] | Convertible Note Payable February 28, 2013 [Member] | Convertible Note Payable February 28, 2013 [Member] | Convertible Note Payable February 28, 2013 [Member] | Convertible Note Payable June 30, 2013 [Member] | Convertible Note Payable September 30, 2013 [Member] | Convertible Note Payable January 31, 2012 [Member] | Convertible Note Payable January 31, 2012 [Member] | Convertible Note Payable January 31, 2012 [Member] | Convertible Note Payable January 31, 2012 [Member] | Convertible Note Payable January 31, 2012 [Member] | Convertible Note Payable January 31, 2012 [Member] | Convertible Note Payable January 31, 2012 [Member] | Convertible Note Payable January 31, 2012 [Member] | |||||||||||||||
September 1, 2013 [Member] | September 17, 2013 [Member] | November 30, 2012 [Member] | January 7, 2013 [Member] | February 8, 2013 [Member] | March 12, 2013 [Member] | March 21, 2013 [Member] | April 24, 2013 [Member] | May 3, 2013 [Member] | ||||||||||||||||||||
Debt Instrument [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt, amount refinanced | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $329,050 | ' | ' | ' | $190,565 | $528,434 | ' | ' | ' | ' | ' | ' | ' | ' |
Debt instrument, interest rate | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 10.00% | ' | ' | ' | 10.00% | 10.00% | ' | ' | ' | ' | ' | ' | ' | ' |
Debt instrument, maturity date | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 28-Feb-15 | ' | ' | ' | 30-Jun-15 | 30-Sep-15 | ' | ' | ' | ' | ' | ' | ' | ' |
Debt conversion, price per share | ' | ' | ' | ' | $0.04 | ' | ' | $0.04 | $0.04 | $0.04 | $0.04 | $0.04 | $0.04 | $0.04 | $0.04 | ' | $0.04 | $0.04 | $0.04 | $0.04 | ' | $0.04 | $0.04 | $0.04 | $0.04 | $0.04 | $0.04 | $0.04 |
Beneficial conversion feature recognized | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 329,050 | ' | ' | ' | 190,565 | 528,434 | ' | ' | ' | ' | ' | ' | ' | ' |
Issuance of common stock for conversion of debt, shares | 302,315 | 425,000 | 640,000 | 300,000 | 550,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,600,000 | 800,000 | 800,000 | ' | ' | 3,617,315 | 550,000 | 300,000 | 640,000 | 700,000 | 700,000 | 425,000 | 302,315 |
Debt conversion, principal amount converted | 12,093 | 17,000 | 25,600 | 12,000 | 22,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 64,000 | 32,000 | 32,000 | ' | ' | 144,693 | 22,000 | 12,000 | 25,600 | 28,000 | 28,000 | 17,000 | 12,093 |
Unamortized discount | ' | ' | ' | ' | 18,262 | 925,840 | 110,410 | ' | ' | ' | ' | ' | ' | ' | ' | 38,632 | 12,887 | 25,745 | ' | ' | 99,585 | 18,262 | 9,543 | 19,824 | 21,029 | 20,567 | 10,360 | ' |
Convertible note payable | ' | ' | ' | ' | ' | 76,262 | 20,519 | ' | ' | ' | ' | ' | ' | ' | ' | 283,103 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Interest accrued during period | ' | ' | ' | ' | ' | 28,912 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Accrued interest payable | ' | ' | ' | ' | ' | 5,812 | 10,120 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Amortization of discount on convertible notes payable | ' | ' | ' | ' | ' | $232,619 | $133,744 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
INCOME_TAXES_Details
INCOME TAXES (Details) (USD $) | 12 Months Ended | |
Sep. 30, 2013 | Sep. 30, 2012 | |
INCOME TAXES [Abstract] | ' | ' |
Tax benefit at U.S. statutory rate | $356,249 | $127,529 |
Valuation allowance | -356,249 | -127,529 |
Total | ' | ' |
Net operating loss carry forwards | $1,047,792 | ' |
Net operating loss carry forwards, expiration dates | 30-Sep-26 | ' |
COMMON_STOCK_Details
COMMON STOCK (Details) (USD $) | 1 Months Ended | 12 Months Ended | 1 Months Ended | |||||||||||||||
31-May-13 | Apr. 30, 2013 | Feb. 28, 2013 | Jan. 31, 2013 | Nov. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 17, 2013 | 3-May-13 | Apr. 24, 2013 | Mar. 21, 2013 | Mar. 12, 2013 | Feb. 08, 2013 | Jan. 07, 2013 | Sep. 30, 2013 | Mar. 31, 2013 | Sep. 30, 2013 | Mar. 31, 2013 | |
Stockholders Equity Transaction One [Member] | Stockholders Equity Transaction One [Member] | Stockholders Equity Transaction Two [Member] | Stockholders Equity Transaction Two [Member] | |||||||||||||||
Stockholders Equity Note [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Issuance of common stock for conversion of debt | $12,093 | $17,000 | $25,600 | $12,000 | $22,000 | $208,693 | $113,225 | ' | ' | ' | ' | ' | ' | ' | $32,000 | $28,000 | $32,000 | $28,000 |
Issuance of common stock for conversion of debt, shares | 302,315 | 425,000 | 640,000 | 300,000 | 550,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | 800,000 | 700,000 | 800,000 | 700,000 |
Debt conversion, principal amount converted | $12,093 | $17,000 | $25,600 | $12,000 | $22,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | $32,000 | $28,000 | $32,000 | $28,000 |
Debt conversion, price per share | ' | ' | ' | ' | $0.04 | ' | ' | $0.04 | $0.04 | $0.04 | $0.04 | $0.04 | $0.04 | $0.04 | ' | ' | ' | ' |
SUBSEQUENT_EVENTS_Details
SUBSEQUENT EVENTS (Details) (USD $) | 1 Months Ended | 12 Months Ended | 3 Months Ended | 3 Months Ended | 3 Months Ended | 3 Months Ended | ||||||||||||||||||
31-May-13 | Apr. 30, 2013 | Feb. 28, 2013 | Jan. 31, 2013 | Nov. 30, 2012 | Sep. 30, 2013 | Sep. 17, 2013 | 3-May-13 | Apr. 24, 2013 | Mar. 21, 2013 | Mar. 12, 2013 | Feb. 08, 2013 | Jan. 07, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Feb. 28, 2013 | Dec. 12, 2013 | Dec. 12, 2013 | Oct. 25, 2013 | Dec. 12, 2013 | Oct. 31, 2013 | Dec. 12, 2013 | Dec. 10, 2013 | Dec. 12, 2013 | |
Convertible Note Payable February Twenty Eight Two Thousand Thirteen [Member] | Convertible Note Payable February Twenty Eight Two Thousand Thirteen [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] | |||||||||||||||
Convertible Note Payable February Twenty Eight Two Thousand Thirteen [Member] | Convertible Note Payable February Twenty Eight Two Thousand Thirteen [Member] | Convertible Note Payable February Twenty Eight Two Thousand Thirteen [Member] | Convertible Note Payable February Twenty Eight Two Thousand Thirteen [Member] | Convertible Note Payable February Twenty Eight Two Thousand Thirteen [Member] | Convertible Note Payable February Twenty Eight Two Thousand Thirteen [Member] | Convertible Note Payable February Twenty Eight Two Thousand Thirteen [Member] | Convertible Note Payable February Twenty Eight Two Thousand Thirteen [Member] | |||||||||||||||||
October 25, 2013 [Member] | October 25, 2013 [Member] | October 31, 2013 [Member] | October 31, 2013 [Member] | December 10, 2013 [Member] | December 10, 2013 [Member] | December 12, 2013 [Member] | ||||||||||||||||||
Subsequent Event [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt conversion, principal amount converted | $12,093 | $17,000 | $25,600 | $12,000 | $22,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | $64,000 | ' | $70,000 | $20,000 | ' | $20,000 | ' | $10,000 | ' | $20,000 |
Issuance of common stock for conversion of debt, shares | 302,315 | 425,000 | 640,000 | 300,000 | 550,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,600,000 | ' | 1,750,000 | 500,000 | ' | 500,000 | ' | 250,000 | ' | 500,000 |
Unamortized discount | ' | ' | ' | ' | $18,262 | $925,840 | ' | ' | ' | ' | ' | ' | ' | $110,410 | $38,632 | ' | $49,578 | ' | $13,906 | ' | $15,538 | ' | $5,453 | $14,681 |
Debt instrument, conversion price | ' | ' | ' | ' | $0.04 | ' | $0.04 | $0.04 | $0.04 | $0.04 | $0.04 | $0.04 | $0.04 | ' | ' | $0.04 | ' | ' | $0.04 | ' | $0.04 | ' | $0.04 | $0.04 |
SUPPLEMENTAL_OIL_AND_GAS_INFOR2
SUPPLEMENTAL OIL AND GAS INFORMATION (UNAUDITED) (Schedule of Proved Reserves) (Details) | 12 Months Ended | |
Sep. 30, 2013 | Sep. 30, 2012 | |
Boe | Boe | |
Reserve Quantities [Line Items] | ' | ' |
Beginning Balance | 7,071 | ' |
New discoveries and extensions | ' | 7,071 |
Revisions of previous estimates | -6,010 | ' |
Purchases of minerals in place | 1,768 | ' |
Sales of oil and gas produced | -649 | ' |
Ending Balance | 2,180 | 7,071 |
Proved developed producing | 2,180 | ' |
Proved developed non-producing | ' | 7,071 |
Proved undeveloped | ' | ' |
Oil [Member] | ' | ' |
Reserve Quantities [Line Items] | ' | ' |
Beginning Balance | 6,120 | ' |
New discoveries and extensions | ' | 6,120 |
Revisions of previous estimates | -5,085 | ' |
Purchases of minerals in place | 1,768 | ' |
Sales of oil and gas produced | -640 | ' |
Ending Balance | 2,163 | 6,120 |
Proved developed producing | 2,163 | ' |
Proved developed non-producing | ' | 6,120 |
Proved undeveloped | ' | ' |
Gas [Member] | ' | ' |
Reserve Quantities [Line Items] | ' | ' |
Beginning Balance | 5,704 | ' |
New discoveries and extensions | ' | 5,704 |
Revisions of previous estimates | -5,553 | ' |
Purchases of minerals in place | ' | ' |
Sales of oil and gas produced | -51 | ' |
Ending Balance | 100 | 5,704 |
Proved developed producing | 100 | ' |
Proved developed non-producing | ' | 5,704 |
Proved undeveloped | ' | ' |
SUPPLEMENTAL_OIL_AND_GAS_INFOR3
SUPPLEMENTAL OIL AND GAS INFORMATION (UNAUDITED) (Schedule of Capitalized Costs) (Details) (USD $) | Sep. 30, 2013 | Sep. 30, 2012 |
SUPPLEMENTAL OIL AND GAS INFORMATION (UNAUDITED) [Abstract] | ' | ' |
Unevaluated property | $200,575 | $153,264 |
Evaluated properties | 264,589 | 128,000 |
Gross capitalized costs | 465,164 | 281,264 |
Less depreciation, depletion, amortization and impairment | 140,812 | ' |
Net oil and gas properties | $324,352 | $281,264 |
SUPPLEMENTAL_OIL_AND_GAS_INFOR4
SUPPLEMENTAL OIL AND GAS INFORMATION (UNAUDITED) (Costs Incurred in Oil and Gas Activities) (Details) (USD $) | 1 Months Ended | 12 Months Ended | |
Aug. 12, 2013 | Sep. 30, 2013 | Sep. 30, 2012 | |
SUPPLEMENTAL OIL AND GAS INFORMATION (UNAUDITED) [Abstract] | ' | ' | ' |
Unproved | ' | $82,311 | $280,764 |
Proved | ' | 75,000 | ' |
Exploration | ' | ' | ' |
Development | 143,264 | 26,589 | ' |
Cost recovery | ' | ' | ' |
Total costs incurred | ' | $183,900 | $280,764 |
SUPPLEMENTAL_OIL_AND_GAS_INFOR5
SUPPLEMENTAL OIL AND GAS INFORMATION (UNAUDITED) (Schedule of Costs Excluded by Year Incurred) (Details) (USD $) | 12 Months Ended | ||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2011 | |
SUPPLEMENTAL OIL AND GAS INFORMATION (UNAUDITED) [Abstract] | ' | ' | ' |
Acquisition costs | $47,311 | $153,264 | ' |
Cumulative acquisition costs | $200,575 | $153,264 | ' |
SUPPLEMENTAL_OIL_AND_GAS_INFOR6
SUPPLEMENTAL OIL AND GAS INFORMATION (UNAUDITED) (Schedule of Changes in Costs Excluded by Country) (Details) (USD $) | 12 Months Ended | |
Sep. 30, 2013 | Sep. 30, 2012 | |
SUPPLEMENTAL OIL AND GAS INFORMATION (UNAUDITED) [Abstract] | ' | ' |
Beginning Balance | $153,264 | ' |
Additional Cost Incurred | 82,311 | 280,764 |
Costs Transferred to DD&A Pool | -35,000 | -127,500 |
Ending Balance | $200,575 | $153,264 |
SUPPLEMENTAL_OIL_AND_GAS_INFOR7
SUPPLEMENTAL OIL AND GAS INFORMATION (UNAUDITED) (Schedule of Standardized Measure) (Details) (USD $) | 12 Months Ended | |
Sep. 30, 2013 | Sep. 30, 2012 | |
SUPPLEMENTAL OIL AND GAS INFORMATION (UNAUDITED) [Abstract] | ' | ' |
Future cash inflows | $212,982 | $549,360 |
Future production costs | -119,957 | -18,450 |
Future development costs | -30,250 | ' |
Future income tax expenses | ' | -112,955 |
Future net cash flows | 62,775 | 417,955 |
10% annual discount for estimated timing of cash flows | -837 | -131,626 |
Future net cash flows at end of year | $61,938 | $286,329 |
SUPPLEMENTAL_OIL_AND_GAS_INFOR8
SUPPLEMENTAL OIL AND GAS INFORMATION (UNAUDITED) (Schedule of Changes in Standardized Measure) (Details) (USD $) | 12 Months Ended | |
Sep. 30, 2013 | Sep. 30, 2012 | |
SUPPLEMENTAL OIL AND GAS INFORMATION (UNAUDITED) [Abstract] | ' | ' |
Standardized measure of discounted future net cash flows at beginning of year | $286,329 | ' |
Discoveries and extensions | ' | 363,711 |
Revisions of previous estimates | -315,803 | ' |
Purchases of minerals in place | 28,735 | ' |
Sales of oil and gas produced | -51,076 | ' |
Change in income taxes | 77,382 | -77,382 |
Accretion of discount | 36,371 | ' |
Standardized measure of discounted future net cash flows at year end | $61,938 | $286,329 |
SUPPLEMENTAL_OIL_AND_GAS_INFOR9
SUPPLEMENTAL OIL AND GAS INFORMATION (UNAUDITED) (Schedule of Results of Operations for Producing Activities) (Details) (USD $) | 12 Months Ended | |
Sep. 30, 2013 | Sep. 30, 2012 | |
SUPPLEMENTAL OIL AND GAS INFORMATION (UNAUDITED) [Abstract] | ' | ' |
Net revenues from production | $57,361 | ' |
Expenses | ' | ' |
Lease operating expense | 6,285 | ' |
Current year accretion | 330 | ' |
Operating expenses | 6,615 | ' |
Depreciation, depletion and amortization | 60,671 | ' |
Impairment of oil and gas properties | 80,141 | ' |
Total expenses | 147,427 | ' |
Results of operations | -114,358 | ' |
Depreciation, depletion and amortization rate per net equivalent BOE | $93.48 | ' |