Document_And_Entity_Informatio
Document And Entity Information (USD $) | 12 Months Ended | ||
Jul. 31, 2013 | Oct. 31, 2013 | Jan. 31, 2013 | |
Document and Entity Information [Abstract] | ' | ' | ' |
Entity Registrant Name | 'Blue Water Petroleum Corp. | ' | ' |
Document Type | '10-K | ' | ' |
Current Fiscal Year End Date | '--07-31 | ' | ' |
Entity Common Stock, Shares Outstanding | ' | 49,071,666 | ' |
Entity Public Float | ' | ' | $51,869,600 |
Amendment Flag | 'false | ' | ' |
Entity Central Index Key | '0001502772 | ' | ' |
Entity Current Reporting Status | 'Yes | ' | ' |
Entity Voluntary Filers | 'No | ' | ' |
Entity Filer Category | 'Smaller Reporting Company | ' | ' |
Entity Well-known Seasoned Issuer | 'No | ' | ' |
Document Period End Date | 31-Jul-13 | ' | ' |
Document Fiscal Year Focus | '2013 | ' | ' |
Document Fiscal Period Focus | 'FY | ' | ' |
Blue_Water_Petroleum_Corp_Cons
Blue Water Petroleum Corp. - Consolidated Balance Sheets (USD $) | Jul. 31, 2013 | Jul. 31, 2012 |
Current Assets | ' | ' |
Cash | $39,841 | $1,572 |
Total Current Assets | 39,841 | 1,572 |
Property and equipment, net | 14,012 | 15,842 |
Oil and gas properties not subject to amortization | 79,354 | ' |
Total Assets | 133,207 | 17,414 |
Current Liabilities | ' | ' |
Accounts payable and accrued liabilities | 113,001 | 10,231 |
Related party payables | 82,589 | 20,874 |
Loans payable | 270,926 | 42,551 |
Deferred revenue | ' | 3,624 |
Total Current Liabilities | 466,516 | 77,280 |
Preferred stock, 100,000,000 shares authorized, $0.001 par value; no shares issued and outstanding | 0 | 0 |
Common stock, 100,000,000 shares authorized, $0.0001 par value; 49,071,666 and 51,155,000 shares issued and outstanding, respectively | 4,907 | 5,116 |
Additional paid-in capital | 266,199 | 47,452 |
Deficit accumulated during the exploration stage | -604,415 | -112,434 |
Total Stockholders’ Deficit | -333,309 | -59,866 |
Total Liabilities and Stockholders’ Deficit | $133,207 | $17,414 |
Blue_Water_Petroleum_Corp_Cons1
Blue Water Petroleum Corp. - Consolidated Balance Sheets (Parentheticals) (USD $) | Jul. 31, 2013 | Jul. 31, 2012 |
Preferred stock par value (in Dollars per share) | $0.00 | $0.00 |
Preferred stock, shares authorized | 100,000,000 | 100,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock par value (in Dollars per share) | $0.00 | $0.00 |
Common stock, shares authorized | 100,000,000 | 100,000,000 |
Common stock, shares issued | 49,071,666 | 51,155,000 |
Common stock, shares outstanding | 49,071,666 | 51,155,000 |
Blue_Water_Petroleum_Corp_Cons2
Blue Water Petroleum Corp. - Consolidated Statements of Operations (USD $) | 12 Months Ended | 44 Months Ended | |
Jul. 31, 2013 | Jul. 31, 2012 | Jul. 31, 2013 | |
Operating expenses: | ' | ' | ' |
General and administrative | $376,020 | $12,023 | $402,427 |
Depreciation expense | 1,830 | 1,690 | 4,293 |
Professional fees | 104,740 | 30,201 | 184,030 |
Total operating expenses | 482,590 | 43,914 | 590,750 |
Interest expense | 9,391 | 4,258 | 13,665 |
Net loss | ($491,981) | ($48,172) | ($604,415) |
Net Loss Per Common Share – Basic and Diluted (in Dollars per share) | ($0.01) | $0 | ' |
Weighted Average Common Shares Outstanding – Basic and Diluted (in Shares) | 50,749,749 | 51,155,000 | 50,749,749 |
Blue_Water_Petroleum_Corp_Cons3
Blue Water Petroleum Corp. - Consolidated Statement of Stockholders’ Deficit (USD $) | StockIssuedForCash | StockIssuedForCash | StockIssuedForCash | Common Stock [Member] | Additional Paid-in Capital [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | Total |
Common Stock [Member] | Additional Paid-in Capital [Member] | ||||||
Balances – at Dec. 07, 2009 | ' | ' | ' | ' | ' | ' | ' |
Issuance of common stock for cash | $2,116 | $40,194 | $42,310 | $3,000 | $3,000 | ' | $6,000 |
Issuance of common stock for cash (in Shares) | 21,155,000 | ' | ' | 30,000,000 | ' | ' | ' |
Net loss | ' | ' | ' | ' | ' | -5,816 | -5,816 |
Balances – at Jul. 31, 2010 | ' | ' | ' | 5,116 | 43,194 | -5,816 | 42,494 |
Balances – (in Shares) at Jul. 31, 2010 | ' | ' | ' | 51,155,000 | ' | ' | ' |
Net loss | ' | ' | ' | ' | ' | -58,446 | -58,446 |
Balances – at Jul. 31, 2011 | ' | ' | ' | 5,116 | 43,194 | -64,262 | -15,952 |
Balances – (in Shares) at Jul. 31, 2011 | ' | ' | ' | 51,155,000 | ' | ' | ' |
Imputed interest | ' | ' | ' | ' | 4,258 | ' | 4,258 |
Net loss | ' | ' | ' | ' | ' | -48,172 | -48,172 |
Balances – at Jul. 31, 2012 | ' | ' | ' | 5,116 | 47,452 | -112,434 | -59,866 |
Balances – (in Shares) at Jul. 31, 2012 | ' | ' | ' | 51,155,000 | ' | ' | ' |
Cancellation of shares | ' | ' | ' | -250 | 250 | ' | ' |
Cancellation of shares (in Shares) | ' | ' | ' | -2,500,000 | ' | ' | ' |
Stock-based compensation | ' | ' | ' | 41 | 212,459 | ' | 212,500 |
Stock-based compensation (in Shares) | ' | ' | ' | 416,666 | ' | ' | ' |
Imputed interest | ' | ' | ' | ' | 6,038 | ' | 6,038 |
Net loss | ' | ' | ' | ' | ' | -491,981 | -491,981 |
Balances – at Jul. 31, 2013 | ' | ' | ' | $4,907 | $266,199 | ($604,415) | ($333,309) |
Balances – (in Shares) at Jul. 31, 2013 | ' | ' | ' | 49,071,666 | ' | ' | ' |
Blue_Water_Petroleum_Corp_Cons4
Blue Water Petroleum Corp. - Consolidated Statements of Cash Flows (USD $) | 12 Months Ended | 44 Months Ended | |
Jul. 31, 2013 | Jul. 31, 2012 | Jul. 31, 2013 | |
Net loss | ($491,981) | ($48,172) | ($604,415) |
Adjustments to reconcile net loss to net cash used in operating activities: | ' | ' | ' |
Depreciation expense | 1,830 | 1,690 | 4,293 |
Imputed interest | 6,038 | 4,258 | 10,296 |
Stock-based compensation | 271,528 | ' | 271,528 |
Accounts payable and accrued liabilities | 38,416 | 1,982 | 48,647 |
Deferred revenue | -3,624 | ' | ' |
Net cash used in operating activities | -177,793 | -40,242 | -269,651 |
Cash flows from investing activities | ' | ' | ' |
Cash paid for drilling costs | -15,000 | ' | -15,000 |
Purchase of property and equipment | ' | -5,935 | -18,305 |
Net cash used in investing activities | -15,000 | -5,935 | -33,305 |
Cash flows from financing activities | ' | ' | ' |
Proceeds from the sale of common stock | ' | ' | 48,310 |
Advances from related parties | 2,687 | 13,158 | 23,561 |
Proceeds from loans payable | 228,375 | 30,204 | 270,926 |
Net cash provided by financing activities | 231,062 | 43,362 | 342,797 |
(Decrease) increase in cash | 38,269 | -2,815 | 39,841 |
Cash - beginning of period | 1,572 | 4,387 | ' |
Cash - end of period | 39,841 | 1,572 | 39,841 |
Supplemental cash flows information: | ' | ' | ' |
Interest paid | 0 | 0 | 0 |
Income taxes paid | $0 | $0 | $0 |
1_Nature_of_Business_and_Conti
1. Nature of Business and Continuance of Operations | 12 Months Ended |
Jul. 31, 2013 | |
Disclosure Text Block [Abstract] | ' |
Nature of Operations [Text Block] | ' |
1. Nature of Business and Continuance of Operations | |
The Company was incorporated in the State of Nevada on December 8, 2009 as “Degaro Innovations Corp.” Up until May 2013, our management has devoted a significant amount of time to the development of our prior solar power installation business. In furtherance of our prior solar power installation business, our management investigated the market demand for solar power in the Jamaican and Caribbean markets, raised seed capital, investigated various suppliers of solar power equipment. During the fiscal quarter ended April 30, 2013, management began to evaluate our Company’s current business in a changing competitive environment and exploring a plan to diversify its business to include other opportunities in the renewable energy business and the exploration of conventional sources of energy such as oil and natural gas. Based on this review, management began evaluating various business opportunities and projects, including growth in the oil and gas sector in the United States. | |
As part of the Company’s change in business strategy, on June 20, 2013, our Board and majority shareholders, by written consent, approved an amendment to our articles of incorporation to change the name of our Company to “Blue Water Petroleum Corp.” which management believed was necessary to better reflect the Company’s transition from a solar power marketing, installation and delivery company, to a company focused on the acquisition, exploration and development of oil and natural gas properties across the United States. | |
To effect the name change, on July 15, 2013, the Company filed a certificate of amendment to our articles of incorporation with the Secretary of State of Nevada changing the name of our Company from “Degaro Innovations Corp.” to “Blue Water Petroleum Corp.”, effective July 30, 2013. | |
These consolidated financial statements have been prepared on a going concern basis, which assumes the Company will continue to realize its assets and discharge its liabilities in the normal course of business. The continuation of the Company as a going concern is dependent upon the continued financial support from its shareholders, the ability of the Company to obtain necessary equity financing to continue operations, and the attainment of profitable operations. At July 31, 2013, the Company has incurred losses totaling $604,415 since inception, and has not yet generated any revenue from operations. These factors raise substantial doubt regarding the Company’s ability to continue as a going concern. These consolidated financial statements do not include any adjustments to the recoverability and classification of recorded asset amounts and classification of liabilities that might be necessary should the Company be unable to continue as a going concern. |
2_Summary_of_Significant_Accou
2. Summary of Significant Accounting Policies | 12 Months Ended |
Jul. 31, 2013 | |
Accounting Policies [Abstract] | ' |
Significant Accounting Policies [Text Block] | ' |
2. Summary of Significant Accounting Policies | |
a) Basis of Presentation | |
These consolidated financial statements of the Company have been prepared in accordance with generally accepted accounting principles in the United States and are expressed in US dollars. The Company’s fiscal year end is July 31. | |
b) Principal of Consolidation | |
The consolidated financial statements include the accounts of Blue Water Limited, its 100% owned subsidiary. All significant intercompany balances and transactions have been eliminated upon consolidation. | |
c) Use of Estimates | |
The preparation of consolidated financial statements in conformity with United States generally accepted accounting principles 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 consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. The Company regularly evaluates estimates and assumptions related to useful life of long-lived assets and deferred income tax asset valuation allowances. The Company bases its estimates and assumptions on current facts, historical experience and various other factors that it believes to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities and the accrual of costs and expenses that are not readily apparent from other sources. The actual results experienced by the Company may differ materially and adversely from the Company’s estimates. To the extent there are material differences between the estimates and the actual results, future results of operations will be affected. | |
d) Cash and Cash Equivalents | |
The Company considers all highly liquid instruments with maturity of three months or less at the time of issuance to be cash equivalents. | |
e) Property and Equipment | |
Property and equipment are recorded at cost. Depreciation is provided over the estimated useful lives of the related assets using the straight-line method for financial statement purposes. The Company uses other depreciation methods (generally, accelerated depreciation methods) for tax purposes where appropriate. Repairs and maintenance are expensed as incurred. Expenditures that increase the value or productive capacity of assets are capitalized. When property and equipment are retired, sold, or otherwise disposed of, the asset’s carrying amount and related accumulated depreciation are removed from the accounts and any gain or loss is included in operations. The Company reviews the carrying value of property, plant, and equipment for impairment whenever events and circumstances indicate that the carrying value of an asset may not be recoverable from the estimated future cash flows expected to result from its use and eventual disposition. In cases where undiscounted expected future cash flows are less than the carrying value, an impairment loss is recognized equal to an amount by which the carrying value exceeds the fair value of assets. The factors considered by management in performing this assessment include current operating results, trends, and prospects, as well as the effects of obsolescence, demand, competition, and other economic factors. | |
The estimated service lives of property and equipment are principally as follows: | |
Equipment 10 years | |
f) Oil and Gas Properties, Successful Efforts Method | |
The Company uses the successful efforts method of accounting for oil and gas producing activities. Under the successful efforts method, costs to acquire mineral interests in oil and gas properties, to drill and equip exploratory wells that find proved reserves, and to drill and equip development wells are capitalized. Costs to drill exploratory wells that do not find proved reserves, geological and geophysical costs, and costs of carrying and retaining unproved properties are expensed as incurred. | |
The cost of oil and gas properties is amortized at the well level based on the unit of production method. Unit of production rates are based on oil and gas reserves and developed producing reserves estimated to be recoverable from existing facilities based on the current terms of the respective production agreements. The Company’s reserve estimates represent crude oil and natural gas which management believes can be reasonably produced within the current terms of their production agreements. | |
The Company evaluates its proved oil and gas properties for impairment on a field-by-field basis whenever events or changes in circumstances indicate that an asset’s carrying value may not be recoverable. The Company follows Accounting Standards Codification ASC 360 - Property, Plant, and Equipment, for these evaluations. Unamortized capital costs are reduced to fair value if the undiscounted future net cash flows from our interest in the property’s estimated proved reserves are less than the asset’s net book value. | |
g) Support Facilities and Equipment | |
Our support facilities and equipment are generally located in proximity to certain of our principal fields. Depreciation of these support facilities is provided on the straight-line method based on estimated useful lives of 7 to 20 years. | |
Maintenance and repair costs that do not extend the useful lives of property and equipment are charged to expense as incurred. | |
h) Proved Reserves | |
Estimates of the Company’s proved reserves included in this report are prepared in accordance with GAAP and guidelines from the United States Securities and Exchange Commission (“SEC”). The Company’s engineering estimates of proved oil and natural gas reserves directly impact financial accounting estimates, including depreciation, depletion and amortization expense and impairment. Proved oil and natural gas reserves are the estimated quantities of oil and natural gas reserves that geological and engineering data demonstrate with reasonable certainty to be recoverable in future years from known reservoirs under period-end economic and operating conditions. The process of estimating quantities of proved reserves is very complex, requiring significant subjective decisions in the evaluation of all geological, engineering and economic data for each reservoir. The accuracy of a reserves estimate is a function of: (i) the quality and quantity of available data; (ii) the interpretation of that data; (iii) the accuracy of various mandated economic assumptions, and (iv) the judgment of the persons preparing the estimate. The data for a given reservoir may change substantially over time as a result of numerous factors, including additional development activity, evolving production history and continual reassessment of the viability of production under varying economic conditions. Changes in oil and natural gas prices, operating costs and expected performance from a given reservoir also will result in revisions to the amount of the Company’s estimated proved reserves. The Company engages independent reserve engineers to estimate its proved reserves. | |
i) Asset Retirement Obligations | |
The Company follows the provisions of the Accounting Standards Codification ASC 410 - Asset Retirement and Environmental Obligations. The fair value of an asset retirement obligation is recognized in the period in which it is incurred if a reasonable estimate of fair value can be made. The present value of the estimated asset retirement costs is capitalized as part of the carrying amount of the long-lived asset. The Company’s asset retirement obligations relate to the abandonment of oil and gas producing facilities and facilities that support the production of oil and gas. The amounts recognized are based upon numerous estimates and assumptions, including future retirement costs, future inflation rates and the credit-adjusted risk-free interest rate. After recording these amounts, the ARO will be accreted to its future estimated value using the same assumed cost of funds and the capitalized costs are depreciated on a unit-of-production basis within the related full cost pool. Both the accretion and the depreciation will be included in depreciation, depletion and amortization expense on our consolidated statements of operations. | |
j) Revenue Recognition | |
The Company recognizes sales revenues for natural gas, oil, and NGLs based on the amount of each product sold to purchasers when delivery to the purchaser has occurred and title has transferred. This occurs when product has been delivered to a pipeline or when a tanker lifting has occurred. The Company follows the sales method of accounting for natural-gas production imbalances. If the Company’s sales volumes for a well exceed the Company’s proportionate share of production from the well, a liability is recognized to the extent that the Company’s share of estimated remaining recoverable reserves from the well is insufficient to satisfy this imbalance. No receivables are recorded for those wells on which the Company has taken less than its proportionate share of production. | |
k) Financial Instruments | |
The Company’s financial instruments consist principally of cash, accounts payable and accrued liabilities, related party payables and loan payable. Pursuant to ASC 820, Fair Value Measurements and Disclosures and ASC 825, Financial Instruments the fair value of the Company’s cash equivalents is determined based on “Level 1” inputs, which consist of quoted prices in active markets for identical assets. | |
l) Earnings (Loss) Per Common Share | |
Basic EPS is computed by dividing net income (loss) available to common shareholders (numerator) by the weighted average number of shares outstanding (denominator) during the period. Diluted EPS gives effect to all dilutive potential common shares outstanding during the period using the treasury stock method and convertible preferred stock using the if-converted method. In computing Diluted EPS, the average stock price for the period is used in determining the number of shares assumed to be purchased from the exercise of stock options or warrants. Diluted EPS excludes all dilutive potential shares if their effect is anti-dilutive. At July 31, 2013 and 2012, the Company has no potentially dilutive securities outstanding. | |
m) Foreign Currency Translation | |
The Company’s previously planned operations were in Jamaica and the Caribbean, which resulted in exposure to market risks from changes in foreign currency exchange rates. The financial risk is the risk to the Company’s operations that arose from fluctuations in foreign exchange rates and the degree of volatility of these rates. Currently, the Company does not use derivative instruments to reduce its exposure to foreign currency risk. The Company's functional currency for all operations worldwide is the U.S. dollar. Nonmonetary assets and liabilities are translated at historical rates and monetary assets and liabilities are translated at exchange rates in effect at the end of the year. Revenues and expenses are translated at average rates for the year. Gains and losses from translation of foreign currency financial statements into U.S. dollars are included in current results of operations. Aggregate foreign currency translation and transaction losses were insignificant for the years ended July 31, 2013 and 2012. As of the year ended July 31, 2013, the Company no longer had operations outside the United States. | |
n) Income Taxes | |
The Company accounts for income taxes using the asset and liability method. The asset and liability method provides that deferred tax assets and liabilities are recognized for the expected future tax consequences of temporary differences between the financial reporting and tax bases of assets and liabilities, and for operating loss and tax credit carryforwards. Deferred tax assets and liabilities are measured using the currently enacted tax rates and laws that will be in effect when the differences are expected to reverse. The Company records a valuation allowance to reduce deferred tax assets to the amount that is believed more likely than not to be realized. | |
o) Subsequent Events | |
The Company has evaluated all transactions through the date the consolidated financial statements were issued for subsequent event disclosure consideration. | |
p) Recent Accounting Pronouncements | |
The Company has implemented all new accounting pronouncements that are in effect and that may impact its consolidated financial statements and does not believe that there are any other new accounting pronouncements that have been issued that might have a material impact on its financial position or results of operations. |
3_Property_and_Equipment
3. Property and Equipment | 12 Months Ended | ||
Jul. 31, 2013 | |||
Property, Plant and Equipment [Abstract] | ' | ||
Property, Plant and Equipment Disclosure [Text Block] | ' | ||
3. Property and Equipment | |||
Net property and equipment consisted of the following as of July 31, 2013 and 2012: | |||
31-Jul-13 | 31-Jul-12 | ||
Furniture and equipment | $ 18,305 | $ 18,305 | |
Accumulated depreciation | -4,293 | -2,463 | |
Property and equipment, net | $ 14,012 | $ 15,842 | |
During the years ended July 31, 2013 and 2012, the Company recorded depreciation expense of $1,830 and $1,690, respectively. |
4_Related_Party_Transactions
4. Related Party Transactions | 12 Months Ended |
Jul. 31, 2013 | |
Related Party Transactions [Abstract] | ' |
Related Party Transactions Disclosure [Text Block] | ' |
4. Related Party Transactions | |
As of July 31, 2013 and 2012, the Company owes its former sole officer and director $23,562 and $20,874, respectively, for expenditures paid on behalf of the Company. The amount owed is unsecured, non-interest bearing, and has no specified repayment terms. The Company also had a stock payable in the amount of $59,027 recorded in related party payables. See note 8 for details |
5_Loan_Payable
5. Loan Payable | 12 Months Ended |
Jul. 31, 2013 | |
Debt Disclosure [Abstract] | ' |
Debt Disclosure [Text Block] | ' |
5. Loan Payable | |
At July 31, 2013 and 2012, the Company was indebted to an unrelated third party for $70,926 and $42,551, respectively. This loan is non-interest bearing and is due on demand. During the year ended July 31, 2013, the Company recorded imputed interest of $6,038. | |
On May 20, 2013, the Company issued a $200,000 promissory note to Kor Energy Holdings Limited. Under the terms of the note, the amount is unsecured, due interest at 8.5% per annum, and due on demand May 20, 2014. During the year ended July 31, 2013, the Company recorded interest of $3,353. |
6_Commitments
6. Commitments | 12 Months Ended |
Jul. 31, 2013 | |
Commitments and Contingencies Disclosure [Abstract] | ' |
Commitments and Contingencies Disclosure [Text Block] | ' |
6. Commitments | |
On July 2, 2013, the Company entered into a Farmout Agreement with Blue Water Petroleum LLC an unrelated thrid party relating to certain leased lands represented by 12,979.28 gross acres located in Big Horn County, Montana. Under the Farmout Agreement, Blue Water Petroleum LLC granted to the Company, as farmee, all of Farmor’s right, title and interest in and to the leases covering the leased lands, subject to the completion of the Work Program (as defined in the Farmout Agreement). Blue Water Petroleum LLC reserved and retained an 8% royalty interest in the leases prior to payout and a 16% royalty interest in the leases after payout for each 40 acre drillsite, or portion thereof, located within the leased lands. |
7_Income_Taxes
7. Income Taxes | 12 Months Ended | ||
Jul. 31, 2013 | |||
Income Tax Disclosure [Abstract] | ' | ||
Income Tax Disclosure [Text Block] | ' | ||
7. Income Taxes | |||
Significant components of the Company’s deferred tax assets and liabilities as at July 31, 2013 and 2012, after applying enacted corporate income tax rates, are as follows: | |||
31-Jul-13 | 31-Jul-12 | ||
Deferred tax assets | |||
Net operating losses | $ 91,820 | $ 16,865 | |
Valuation allowance | -91,820 | -16,865 | |
Net deferred tax assets | $ – | $ – | |
As of July 31, 2013, the Company had net operating loss carry forwards of $349,410 which expire commencing in 2031. |
8_Capital_Stock
8. Capital Stock | 12 Months Ended |
Jul. 31, 2013 | |
Stockholders' Equity Note [Abstract] | ' |
Stockholders' Equity Note Disclosure [Text Block] | ' |
8. Capital Stock | |
The Company’s authorized capital consisted of 100,000,000 shares of common stock with a par value of $0.0001 and 100,000,000 shares of preferred stock with a par value of $0.001. | |
On January 29, 2010, 30,000,000 shares of common stock were issued to the Company’s previous sole director, Ms. Sheryl Briscoe, for cash proceeds of $6,000. | |
On July 16, 2010, 21,155,000 shares of common stock were issued for cash proceeds of $42,310. | |
On May 24, 2013, Ms. Briscoe’s resigned and in connection with her resignation she and the Company entered into a contribution agreement whereas she agreed to contribute 2,500,000 shares of common stock back to the Company. There shares were cancelled by the Company. | |
On May 24, 2013, the Company’s President, Thomas Hynes, received 2,500,000 shares of common stock of the Company. These shares were valued at their fair market value of $1,275,000. Of the 2,500,000 shares of common stock offered, 416,666 shares vest immediately, with the remaining 2,083,334 shares to vest biannual until May 24, 2016. As of July 31, 2013, the Company recognized $271,528 in stock-based compensation. For the shares earned by Mr. Hynes but yet issued, the Company recorded a stock payable of $59,027. |
9_Subsequent_Event
9. Subsequent Event | 12 Months Ended |
Jul. 31, 2013 | |
Subsequent Events [Abstract] | ' |
Subsequent Events [Text Block] | ' |
9. Subsequent Event | |
On October 18, 2013, the Company issued a $100,000 promissory note to Kor Energy Holdings Limited to evidence funds previously lent by the Noteholder to the Company. Under the terms of the Note, the amount is unsecured, bears interest at 8.5% per annum, and due on demand after October 18, 2014. | |
On October 21, 2013, the Company issued an additional $200,000 promissory note to Kor Energy Holdings Limited to evidence funds previously lent by the Noteholder to the Company. Under the terms of the Note, the amount is unsecured, bears interest at 8.5% per annum, and due on demand after October 21, 2014. |
Accounting_Policies_by_Policy_
Accounting Policies, by Policy (Policies) | 12 Months Ended |
Jul. 31, 2013 | |
Accounting Policies [Abstract] | ' |
Basis of Presentation and Significant Accounting Policies [Text Block] | ' |
These consolidated financial statements of the Company have been prepared in accordance with generally accepted accounting principles in the United States and are expressed in US dollars. The Company’s fiscal year end is July 31 | |
Consolidation, Policy [Policy Text Block] | ' |
The consolidated financial statements include the accounts of Blue Water Limited, its 100% owned subsidiary. All significant intercompany balances and transactions have been eliminated upon consolidation | |
Use of Estimates, Policy [Policy Text Block] | ' |
The preparation of consolidated financial statements in conformity with United States generally accepted accounting principles 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 consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. The Company regularly evaluates estimates and assumptions related to useful life of long-lived assets and deferred income tax asset valuation allowances. The Company bases its estimates and assumptions on current facts, historical experience and various other factors that it believes to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities and the accrual of costs and expenses that are not readily apparent from other sources. The actual results experienced by the Company may differ materially and adversely from the Company’s estimates. To the extent there are material differences between the estimates and the actual results, future results of operations will be affected | |
Cash and Cash Equivalents, Policy [Policy Text Block] | ' |
The Company considers all highly liquid instruments with maturity of three months or less at the time of issuance to be cash equivalents | |
Impairment or Disposal of Long-Lived Assets, Policy [Policy Text Block] | ' |
Property and equipment are recorded at cost. Depreciation is provided over the estimated useful lives of the related assets using the straight-line method for financial statement purposes. The Company uses other depreciation methods (generally, accelerated depreciation methods) for tax purposes where appropriate. Repairs and maintenance are expensed as incurred. Expenditures that increase the value or productive capacity of assets are capitalized. When property and equipment are retired, sold, or otherwise disposed of, the asset’s carrying amount and related accumulated depreciation are removed from the accounts and any gain or loss is included in operations. The Company reviews the carrying value of property, plant, and equipment for impairment whenever events and circumstances indicate that the carrying value of an asset may not be recoverable from the estimated future cash flows expected to result from its use and eventual disposition. In cases where undiscounted expected future cash flows are less than the carrying value, an impairment loss is recognized equal to an amount by which the carrying value exceeds the fair value of assets. The factors considered by management in performing this assessment include current operating results, trends, and prospects, as well as the effects of obsolescence, demand, competition, and other economic factors. | |
The estimated service lives of property and equipment are principally as follows: | |
Equipment 10 years | |
Oil and Gas Properties Policy [Policy Text Block] | ' |
Oil and Gas Properties, Successful Efforts Method | |
The Company uses the successful efforts method of accounting for oil and gas producing activities. Under the successful efforts method, costs to acquire mineral interests in oil and gas properties, to drill and equip exploratory wells that find proved reserves, and to drill and equip development wells are capitalized. Costs to drill exploratory wells that do not find proved reserves, geological and geophysical costs, and costs of carrying and retaining unproved properties are expensed as incurred. | |
The cost of oil and gas properties is amortized at the well level based on the unit of production method. Unit of production rates are based on oil and gas reserves and developed producing reserves estimated to be recoverable from existing facilities based on the current terms of the respective production agreements. The Company’s reserve estimates represent crude oil and natural gas which management believes can be reasonably produced within the current terms of their production agreements. | |
The Company evaluates its proved oil and gas properties for impairment on a field-by-field basis whenever events or changes in circumstances indicate that an asset’s carrying value may not be recoverable. The Company follows Accounting Standards Codification ASC 360 - Property, Plant, and Equipment, for these evaluations. Unamortized capital costs are reduced to fair value if the undiscounted future net cash flows from our interest in the property’s estimated proved reserves are less than the asset’s net book value | |
Share-based Compensation, Option and Incentive Plans Policy [Policy Text Block] | ' |
The Company follows the provisions of the Accounting Standards Codification ASC 410 - Asset Retirement and Environmental Obligations. The fair value of an asset retirement obligation is recognized in the period in which it is incurred if a reasonable estimate of fair value can be made. The present value of the estimated asset retirement costs is capitalized as part of the carrying amount of the long-lived asset. The Company’s asset retirement obligations relate to the abandonment of oil and gas producing facilities and facilities that support the production of oil and gas. The amounts recognized are based upon numerous estimates and assumptions, including future retirement costs, future inflation rates and the credit-adjusted risk-free interest rate. After recording these amounts, the ARO will be accreted to its future estimated value using the same assumed cost of funds and the capitalized costs are depreciated on a unit-of-production basis within the related full cost pool. Both the accretion and the depreciation will be included in depreciation, depletion and amortization expense on our consolidated statements of operations | |
Revenue Recognition Accounting Policy, Gross and Net Revenue Disclosure [Policy Text Block] | ' |
The Company recognizes sales revenues for natural gas, oil, and NGLs based on the amount of each product sold to purchasers when delivery to the purchaser has occurred and title has transferred. This occurs when product has been delivered to a pipeline or when a tanker lifting has occurred. The Company follows the sales method of accounting for natural-gas production imbalances. If the Company’s sales volumes for a well exceed the Company’s proportionate share of production from the well, a liability is recognized to the extent that the Company’s share of estimated remaining recoverable reserves from the well is insufficient to satisfy this imbalance. No receivables are recorded for those wells on which the Company has taken less than its proportionate share of production | |
Fair Value of Financial Instruments, Policy [Policy Text Block] | ' |
The Company’s financial instruments consist principally of cash, accounts payable and accrued liabilities, related party payables and loan payable. Pursuant to ASC 820, Fair Value Measurements and Disclosures and ASC 825, Financial Instruments the fair value of the Company’s cash equivalents is determined based on “Level 1” inputs, which consist of quoted prices in active markets for identical assets | |
Earnings Per Share, Policy [Policy Text Block] | ' |
l) Earnings (Loss) Per Common Share | |
Basic EPS is computed by dividing net income (loss) available to common shareholders (numerator) by the weighted average number of shares outstanding (denominator) during the period. Diluted EPS gives effect to all dilutive potential common shares outstanding during the period using the treasury stock method and convertible preferred stock using the if-converted method. In computing Diluted EPS, the average stock price for the period is used in determining the number of shares assumed to be purchased from the exercise of stock options or warrants. Diluted EPS excludes all dilutive potential shares if their effect is anti-dilutive. At July 31, 2013 and 2012, the Company has no potentially dilutive securities outstanding | |
Foreign Currency Transactions and Translations Policy [Policy Text Block] | ' |
The Company’s previously planned operations were in Jamaica and the Caribbean, which resulted in exposure to market risks from changes in foreign currency exchange rates. The financial risk is the risk to the Company’s operations that arose from fluctuations in foreign exchange rates and the degree of volatility of these rates. Currently, the Company does not use derivative instruments to reduce its exposure to foreign currency risk. The Company's functional currency for all operations worldwide is the U.S. dollar. Nonmonetary assets and liabilities are translated at historical rates and monetary assets and liabilities are translated at exchange rates in effect at the end of the year. Revenues and expenses are translated at average rates for the year. Gains and losses from translation of foreign currency financial statements into U.S. dollars are included in current results of operations. Aggregate foreign currency translation and transaction losses were insignificant for the years ended July 31, 2013 and 2012 | |
Income Tax, Policy [Policy Text Block] | ' |
The Company accounts for income taxes using the asset and liability method. The asset and liability method provides that deferred tax assets and liabilities are recognized for the expected future tax consequences of temporary differences between the financial reporting and tax bases of assets and liabilities, and for operating loss and tax credit carryforwards. Deferred tax assets and liabilities are measured using the currently enacted tax rates and laws that will be in effect when the differences are expected to reverse. The Company records a valuation allowance to reduce deferred tax assets to the amount that is believed more likely than not to be realized | |
Subsequent Events, Policy [Policy Text Block] | ' |
The Company has evaluated all transactions through the date the consolidated financial statements were issued for subsequent event disclosure consideration | |
Revenue Recognition, New Accounting Pronouncement, Timing | 'The Company has implemented all new accounting pronouncements that are in effect and that may impact its consolidated financial statements and does not believe that there are any other new accounting pronouncements that have been issued that might have a material impact on its financial position or results of operations |
3_Property_and_Equipment_Table
3. Property and Equipment (Tables) | 12 Months Ended | ||
Jul. 31, 2013 | |||
Property, Plant and Equipment [Abstract] | ' | ||
Property, Plant and Equipment [Table Text Block] | ' | ||
31-Jul-13 | 31-Jul-12 | ||
Furniture and equipment | $ 18,305 | $ 18,305 | |
Accumulated depreciation | -4,293 | -2,463 | |
Property and equipment, net | $ 14,012 | $ 15,842 |
7_Income_Taxes_Tables
7. Income Taxes (Tables) | 12 Months Ended | ||
Jul. 31, 2013 | |||
Income Tax Disclosure [Abstract] | ' | ||
Schedule of Deferred Tax Assets and Liabilities [Table Text Block] | ' | ||
31-Jul-13 | 31-Jul-12 | ||
Deferred tax assets | |||
Net operating losses | $ 91,820 | $ 16,865 | |
Valuation allowance | -91,820 | -16,865 | |
Net deferred tax assets | $ – | $ – |
1_Nature_of_Business_and_Conti1
1. Nature of Business and Continuance of Operations (Details) (USD $) | Jul. 31, 2013 |
Disclosure Text Block [Abstract] | ' |
Retained Earnings (Accumulated Deficit) | $604,415 |
2_Summary_of_Significant_Accou1
2. Summary of Significant Accounting Policies (Details) (USD $) | Jul. 31, 2013 |
Accounting Policies [Abstract] | ' |
Property, Plant, and Equipment, Salvage Value (in Dollars) | $10 |
3_Property_and_Equipment_Detai
3. Property and Equipment (Details) (USD $) | 12 Months Ended | 44 Months Ended | |
Jul. 31, 2013 | Jul. 31, 2012 | Jul. 31, 2013 | |
Property, Plant and Equipment [Abstract] | ' | ' | ' |
Depreciation, Depletion and Amortization, Nonproduction | $1,830 | $1,690 | $4,293 |
3_Property_and_Equipment_Detai1
3. Property and Equipment (Details) - Net property and equipment consisted of the following: (USD $) | Jul. 31, 2013 | Jul. 31, 2012 |
Net property and equipment consisted of the following: [Abstract] | ' | ' |
Furniture and equipment | $18,305 | $18,305 |
Accumulated depreciation | -4,293 | -2,463 |
Property and equipment, net | $14,012 | $15,842 |
4_Related_Party_Transactions_D
4. Related Party Transactions (Details) (USD $) | Jul. 31, 2013 | Jul. 31, 2012 |
4. Related Party Transactions (Details) [Line Items] | ' | ' |
Due to Related Parties | $23,562 | $20,874 |
FormerOfficer | ' | ' |
4. Related Party Transactions (Details) [Line Items] | ' | ' |
Due to Related Parties | $59,027 | ' |
5_Loan_Payable_Details
5. Loan Payable (Details) (USD $) | 3 Months Ended | 11 Months Ended | ||
Jul. 31, 2013 | Jul. 01, 2013 | 20-May-13 | Jul. 31, 2012 | |
Debt Disclosure [Abstract] | ' | ' | ' | ' |
Notes Payable, Current | $42,551 | ' | ' | $70,926 |
Interest Expense, Debt | 3,353 | 6,038 | ' | ' |
Notes Payable | ' | ' | $200,000 | ' |
Debt Instrument, Interest Rate During Period | 8.50% | ' | ' | ' |
6_Commitments_Details
6. Commitments (Details) | Jul. 02, 2013 |
acre | |
Commitments and Contingencies Disclosure [Abstract] | ' |
GrossAcresOfLeasedLand (in Acres) | 12,979.28 |
RoyaltyInterestPriorToPayout | 8.00% |
RoyaltyInterestAfterPayout | 16.00% |
7_Income_Taxes_Details
7. Income Taxes (Details) (USD $) | Jul. 31, 2013 |
Income Tax Disclosure [Abstract] | ' |
Operating Loss Carryforwards | $349,410 |
7_Income_Taxes_Details_Signifi
7. Income Taxes (Details) - Significant components of the Company’s deferred tax assets and liabilities as at July 31, 2013 and (USD $) | Jul. 31, 2013 | Jul. 31, 2012 |
Deferred tax assets | ' | ' |
Net operating losses | $91,820 | $16,865 |
Valuation allowance | ($91,820) | ($16,865) |
8_Capital_Stock_Details
8. Capital Stock (Details) (USD $) | 0 Months Ended | 2 Months Ended | 12 Months Ended | |||
24-May-13 | Jul. 16, 2010 | Jan. 29, 2010 | Jul. 31, 2013 | Jul. 31, 2013 | Jul. 31, 2012 | |
Stockholders' Equity Note [Abstract] | ' | ' | ' | ' | ' | ' |
Common Stock, Shares Authorized | ' | ' | ' | 100,000,000 | 100,000,000 | 100,000,000 |
Common Stock, Par or Stated Value Per Share (in Dollars per share) | ' | ' | ' | $0.00 | $0.00 | $0.00 |
Preferred Stock, Shares Authorized | ' | ' | ' | 100,000,000 | 100,000,000 | 100,000,000 |
Preferred Stock, Par or Stated Value Per Share (in Dollars per share) | ' | ' | ' | $0.00 | $0.00 | $0.00 |
Development Stage Entities, Stock Issued, Shares, Issued for Cash | ' | 21,155,000 | 30,000,000 | ' | ' | ' |
Sale of Stock, Consideration Received on Transaction (in Dollars) | ' | $42,310 | $6,000 | ' | ' | ' |
Stock Repurchased During Period, Shares | 2,500,000 | ' | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number | 2,500,000 | ' | ' | 2,083,334 | 2,083,334 | ' |
Stock Granted, Value, Share-based Compensation, Net of Forfeitures (in Dollars) | ' | ' | ' | 1,275,000 | 59,027 | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested, Number of Shares | ' | ' | ' | 416,666 | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested in Period, Fair Value (Deprecated 2013-01-31) (in Dollars) | ' | ' | ' | ' | $271,528 | ' |
9_Subsequent_Event_Details
9. Subsequent Event (Details) (USD $) | 0 Months Ended | 12 Months Ended | 44 Months Ended | ||
Oct. 21, 2013 | Oct. 18, 2013 | Jul. 31, 2013 | Jul. 31, 2012 | Jul. 31, 2013 | |
Subsequent Events [Abstract] | ' | ' | ' | ' | ' |
Proceeds from Notes Payable (in Dollars) | $200,000 | $100,000 | $228,375 | $30,204 | $270,926 |
Debt Instrument, Interest Rate, Effective Percentage | 8.50% | 8.50% | ' | ' | ' |