Diversified Resources 10-Q 14 Mar 16 2016 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - USD ($)	3 Months Ended
	Jan. 31, 2016	Apr. 30, 2015
Document and Entity Information:
Entity Registrant Name	Diversified Resources Inc.
Document Type	10-Q
Document Period End Date	Jan. 31, 2016
Trading Symbol	divr
Amendment Flag	false
Entity Central Index Key	1,509,692
Current Fiscal Year End Date	--10-31
Entity Common Stock, Shares Outstanding		23,165,926
Entity Public Float		$ 0
Entity Filer Category	Smaller Reporting Company
Entity Current Reporting Status	Yes
Entity Voluntary Filers	No
Entity Well-known Seasoned Issuer	No
Document Fiscal Year Focus	2,016
Document Fiscal Period Focus	Q1

CONSOLIDATED BALANCE SHEETS (Un

CONSOLIDATED BALANCE SHEETS (Unaudited for January 31, 2016) - USD ($)	Jan. 31, 2016		Oct. 31, 2015
CURRENT ASSETS
Cash	$ 164,421		$ 21,706
Accounts receivable, trade	0		67,189
Accounts receivable, other	0		313,989
Total current assets	164,421		402,884
LONG-LIVED ASSETS
Property and Equipment	1,800,441	[1]	1,846,111	[2]
Bonds and deposits	167,867		167,867
Oil and gas properties - proved (successful efforts method)	1,246,266	[3]	1,282,876	[4]
Oil and gas properties - proved undeveloped (successful efforts method)	1,241,880		1,241,724
Oil and gas properties - unproved (successful efforts method)	2,932,730		2,932,730
Total assets	7,553,605		7,874,192
CURRENT LIABILITIES
Accounts payable	360,113		387,028
Accounts payable, related party	147,736		147,736
Current portion of notes payable	319,632		319,632
Note payable - related party	107,070		107,070
Accrued interest, related party	17,984		15,287
Accrued expenses	376,194		405,669
Total current liabilities	1,328,729		1,382,422
LONG TERM LIABILITIES
Long term debt, notes payable	3,709,306		3,498,108
Asset retirement obligation	329,837		321,101
COMMITMENTS AND CONTINGENT LIABILITIES	0		0
STOCKHOLDERS' EQUITY
Preferred stock	301		301
Common stock	23,216		23,216
Additional paid in capital	9,741,759		9,741,759
Accumulated deficit	(7,579,544)		(7,092,714)
Total stockholders' equity	2,185,732		2,672,562
Total liabilities and stockholders' equity	$ 7,553,605		$ 7,874,192
[1]	Net of accumulated depreciation of $367,951.
[2]	Net of accumulated depreciation of $322,281.
[3]	Net of accumulated depletion and impairment of $2,659,950.
[4]	Net of accumulated depletion and impairment of $2,623,339.

Statement of Financial Position

Statement of Financial Position - Parenthetical - $ / shares	Jan. 31, 2016	Oct. 31, 2015
Statement of Financial Position
Preferred Stock, Par Value	$ 0.001	$ 0.001
Preferred Stock, Shares Authorized	50,000,000	50,000,000
Preferred Stock, Shares Issued	301,000	301,000
Preferred Stock, Shares Outstanding	301,000	301,000
Common Stock, Par Value	$ 0.001	$ 0.001
Common Stock, Shares Authorized	450,000,000	450,000,000
Common Stock, Shares Issued	23,215,926	23,215,926
Common Stock, Shares Outstanding	23,215,926	23,215,926

CONSOLIDATED STATEMENTS OF OPER

CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) - USD ($)	3 Months Ended
	Jan. 31, 2016	Jan. 31, 2015
Operating revenues
Oil and gas sales	$ 34,548	$ 240,274
Total operating revenues	34,548	240,274
Operating expenses
Lease operating expenses	81,688	150,078
General and administrative	277,061	552,368
Depreciation expense	74,502	41,768
Depletion expense	7,778	38,775
Production tax and royalty expense	12,830	93,046
Accretion expense	8,736	6,709
Total operating expenses	462,595	882,744
Loss from operations	(428,047)	(642,470)
Other income (expense)
Interest expense	(58,783)	(8,886)
Other income (expense)	(58,783)	(8,886)
Net loss	$ (486,830)	$ (651,356)
Net loss per common share - Basic and diluted	$ (0.02)	$ (0.03)
Weighted average shares outstanding - Basic and diluted	22,904,666	20,198,075

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($)	3 Months Ended
	Jan. 31, 2016	Jan. 31, 2015
CASH FLOWS FROM OPERATING ACTIVITIES:
Net cash (used in) operating activities	$ (50,483)	$ (702,559)
CASH FLOWS FROM INVESTING ACTIVITIES:
Net cash (used in) investing activities	0	0
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from sale of common stock	0	663,720
Proceeds from notes payables	200,000	0
Payment on notes payable	(6,802)	(40,891)
Net cash provided by financing activities	193,198	622,829
INCREASE (DECREASE) IN CASH	142,715	(79,730)
BEGINNING BALANCE	21,706	209,054
ENDING BALANCE	164,421	129,054
Cash paid for income taxes	0	0
Cash paid for interest	$ 2,196	$ 6,186

Note 1 - Basis of Presentation

Note 1 - Basis of Presentation	3 Months Ended
	Jan. 31, 2016
Notes
Note 1 - Basis of Presentation	NOTE 1 – BASIS OF PRESENTATION The interim consolidated financial statements of Diversified Resources, Inc. (“we”, “us”, “our”, “Diversified”, or the “Company”) are unaudited and contain all adjustments (consisting primarily of normal recurring accruals) necessary for a fair presentation of the results for the interim periods presented. Results for interim periods are not necessarily indicative of results to be expected for a full year or for previously reported periods due in part, but not limited to, interest rates, drilling risks, geological risks, the timing of acquisitions, and our ability to obtain additional capital. These interim financial statements should be read in conjunction with the audited financial statements and notes thereto included in Diversified’s Annual Report on Form 10-K for the year ended October 31, 2015 as filed with the Securities and Exchange Commission (“SEC”) on February 16, 2016. The accompanying consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America. The consolidated financial statements of the Company have been prepared pursuant to the rules and regulations of the SEC for Quarterly Reports on Form 10-Q and in accordance with US GAAP. Accordingly, these consolidated financial statements do not include all of the information and footnotes required by US GAAP for annual consolidated financial statements. Although, from a legal standpoint, we acquired Natural Resource Group, Inc. (“NRG”) on November 21, 2013, for financial reporting purposes the acquisition of NRG constituted a recapitalization, and the acquisition was accounted for as a reverse merger, whereby NRG was deemed to have acquired us. Consequently, this report contains only the historical financial statements of NRG prior to November 21, 2013. From and after November 21, 2013, NRG’s financial statements have been consolidated with our financial statements.

Note 2 - Organization and Going

Note 2 - Organization and Going Concern	3 Months Ended
	Jan. 31, 2016
Notes
Note 2 - Organization and Going Concern	NOTE 2 – ORGANIZATION AND GOING CONCERN Diversified Resources Inc. (“the Company”) was incorporated in the State of Nevada on March 19, 2009 to pursue mineral extraction in the United States. Effective November 21, 2013 we acquired 100% of the outstanding shares of Natural Resource Group, Inc. in exchange for 14,558,150 shares of our common stock. In connection with this acquisition, the then President of the Company sold 2,680,033 shares of the Company’s common stock to the Company for nominal consideration. The shares purchased from the President were returned to the status of authorized but unissued shares. Additionally, the former principals of the Company assumed all of the debts of the Company at the date of the exchange. As shown in the accompanying financial statements, the Company has incurred significant operating losses since inception, has an accumulated deficit of $7,561,544 and has negative working capital of $1,164,308 at January 31, 2016. As of January 31, 2016, the Company has limited financial resources. These factors raise substantial doubt about the Company's ability to continue as a going concern. The Company's ability to achieve and maintain profitability and positive cash flow is dependent upon its ability to locate profitable mineral properties, generate revenue from planned business operations, and control exploration costs. Management plans to fund its future operations by joint venturing and obtaining additional financing, and commercial production. However, there is no assurance that the Company will be able to obtain additional financing from investors or private lenders, or that additional commercial production can be attained. The financial statements do not include any adjustments to reflect the possible future effects on the recoverability and classification of assets or the amounts and classification of liabilities that may result from the possible inability of the Company to continue as a going concern.

Note 3 - Summary of Significant

Note 3 - Summary of Significant Accounting Policies	3 Months Ended
	Jan. 31, 2016
Notes
Note 3 - Summary of Significant Accounting Policies	NOTE 3 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Principles of Consolidation The accompanying consolidated unaudited financial statements include the accounts of Diversified Resources, Inc. and its wholly owned subsidiaries, Natural Resource Group, Inc. and BIYA Operators, Inc. Any inter-company accounts and transactions have been eliminated. Cash and cash equivalents The Company considers all liquid investments with a maturity of three months or less from the date of purchase that are readily convertible into cash to be cash equivalents. Use of estimates The preparation of financial statements in conformity with 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 financial statements and the reported amounts of revenues and expenses during the reporting period. Estimates of oil and gas reserve quantities provide the basis for the calculation of depletion, depreciation, and amortization, and impairment, each of which represents a significant component of the financial statements. Actual results could differ from those estimates. Revenue Recognition We recognize oil and gas revenue from interests in producing wells as the oil and gas is sold. Revenue from the purchase, transportation, and sale of natural gas is recognized upon completion of the sale and when transported volumes are delivered. We recognize revenue related to gas balancing agreements based on the sales method. Our net imbalance position at January 31, 2016 and 2015 was immaterial. Accounting for Oil and Gas Activities Successful Efforts Method Assets are grouped in accordance with the Extractive Industries - Oil and Gas Topic of the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”). The basis for grouping is a reasonable aggregation of properties with a common geological structural feature or stratigraphic condition, such as a reservoir or field. Depreciation, depletion and amortization Proved Property Impairment Unproved Property Impairment Exploration Costs , Asset Retirement Obligations The following table reconciles the asset retirement obligation for three months ended January 31, 2016 and year ended October 31, 2015: 2016 2015 Asset retirement obligation as of beginning of period $ 321,101 $ 290,312 Liabilities added - - Liabilities settled - - Revision of estimated obligation - - Accretion expense on discounted obligation 8,736 30,789 Asset retirement obligation as of end of period $ 329,837 $ 321,101 Property and Equipment Property and equipment consists of production buildings, furniture, fixtures, equipment and vehicles which are recorded at cost and depreciated using the straight-line method over the estimated useful lives of five to fifteen years. Maintenance and repairs are charged to expense as incurred. Income Taxes We account for income taxes in accordance with Accounting Standards Codification (“ASC”) Topic 740, Income Taxes. Under this standard, deferred tax liabilities and assets are determined based on the difference between the financial statement and tax bases of assets and liabilities using the enacted tax rates in effect for the year in which the differences are expected to reverse. Deferred tax assets are reduced by a valuation allowance when we cannot make the determination that it is more likely than not that some portion or all of the related tax asset will be realized. Interest and penalties on tax deficiencies recognized in accordance with ACS accounting standards are classified as income taxes in accordance with ASC Topic 740-10-50-19.The Company follows ASC 740-10-05 Accounting for Uncertainty in Income Taxes which prescribes a threshold and a measurement attribute for the financial statement recognition and measurement of tax positions taken or expected to be taken on a tax return. For those benefits to be recognized, a tax position must be more-likely-than-not to be sustained upon examination by taxing authorities. The amount recognized is measured as the largest amount of benefit that is greater than 50 percent likely of being realized upon ultimate settlement. Contingent Liabilities The Company records contingent liabilities when the amounts were incurred and determinable. Otherwise the Company will disclose the matter(s) and provide a range or best estimate of the contingency in the notes to the financial statements. As of January 31, 2016 there were no legal proceedings against the Company. Neither the Company nor any of its officers or directors is involved in any litigation either as plaintiffs or defendants, and have no knowledge of any threatened or pending litigation against them or any of the officers or directors. As of January 31, 2016, there were no contingent liabilities that required disclosure or accrual in the Company’s financial statements. Loss Per Share The Company computes net loss per share in accordance with ASC Topic 260, “Earnings per Share,” Under the provisions of the standard, basic and diluted net loss per share is computed by dividing the net loss available to common stockholders for the period by the weighted average number of shares of common stock outstanding during the period. During periods when losses occur, common stock equivalents, if any, are not considered in the computation as their effect would be anti-dilutive. Recent Accounting Pronouncements In August 2015, the FASB issued Update No. 2015-14 - Revenue from Contracts with Customers to defer the effective date of the new revenue recognition standard by one year. The new revenue recognition standard is now effective for annual periods, and interim periods within those annual periods, beginning after December 15, 2017. Early adoption is permitted but only for annual periods, and interim periods within those annual periods, beginning after December 15, 2016. The Company has started going through its contracts and is assessing their impact, but does not currently believe this guidance will have a material effect on the Company’s financial statements or disclosures. The Company does not believe that any other recently issued or proposed accounting pronouncements will have a material impact on its financial position, results of operations or cash flows.

Note 4 - Participation Agreemen

Note 4 - Participation Agreement	3 Months Ended
	Jan. 31, 2016
Notes
Note 4 - Participation Agreement	NOTE 4 – Participation Agreement In connection with the convertible promissory note described in Note 6, the Company entered into a participation agreement with a nonaffiliated company whereby the nonaffiliated company would advance up to $350,000 to conduct additional development of the underlying leases at the Garcia Field and drill and complete three additional wells on the acreage. During 2012, $250,000 was advanced to the Company. In consideration for extending this credit arrangement, the lender was assigned a 1% overriding royalty interest in the 4,600 acre field, a 20% modified net profits interest in the existing four producing wells in the Garcia Field and a 20% modified net profits interest in three additional wells to be drilled on the acreage. The Company valued the net profits interest and the overriding royalty interest at $136,599 using 10% present value over the estimated life of the wells. The amount was recorded as a debt discount and was amortized using the effective interest rate method over the life of the promissory note (3 years). The modified net profits interest is based on the gross proceeds from the sale of oil, gas and other minerals in the four producing wells in the Garcia Field and three additional wells to be drilled. The 20% is applied to 100% of the Company’s net revenue interest in the wells which cannot be less than 80% and is reduced by any of the following expenditures: any overriding royalties or other burden on production in excess of the 80% net revenue interest; production, severance and similar taxes assessed by any taxing authority based on volume or value of the production; direct costs incurred in producing oil or natural gas, or the operation of the wells excluding administrative, supervisory or other indirect costs; costs reasonably incurred to process the production for market; costs reasonably incurred in transportation, delivery, storage or marketing the production.

Note 5 - Notes Payable - Relate

Note 5 - Notes Payable - Related Party	3 Months Ended
	Jan. 31, 2016
Notes
Note 5 - Notes Payable - Related Party	NOTE 5 – Notes Payable – Related Party In December 2010, the Company entered into a purchase and sale agreement to acquire certain oil and gas assets located in Adams, Broomfield, Huerfano, Las Animas, Morgan and Weld counties, Colorado. The Company issued 2,500,000 shares of its $0.0001 par value common stock and a promissory note for $360,000 bearing interest at 10% with an original maturity date of March 1, 2011. The shares were valued at $1 per share based on sales of the Company’s common stock to third-parties. The promissory note is collateralized by the property and equipment transferred and was subsequently subrogated to a convertible promissory note on January 12, 2012 and matures on December 11, 2016. The balance on the note is $107,070 at January 31, 2016 with interest accrued in the amount of $17,984.

Note 6 - Long Term Debt and Not

Note 6 - Long Term Debt and Note Payable	3 Months Ended
	Jan. 31, 2016
Notes
Note 6 - Long Term Debt and Note Payable	NOTE 6 – Long Term Debt and Note Payable Convertible Promissory Note On October 14, 2014 the Company acquired approximately 98% of the outstanding shares of BIYA Operators, Inc. (“BIYA”) an independent oil and gas company. The Company issued a promissory note in the principal amount of approximately $1,860,000 (subject to adjustment for unknown liabilities). The note will be effective when certain leases covering Indian tribal lands have been issued. The note will bear interest at 5% a year and will be payable in October 2016. In May 2012 BIYA entered into a settlement agreement with a previous partner for $1.2 million. The amount is non-interest bearing and has a minimum monthly payment of $10,000, plus one third of BIYA’s net profits, as defined in the agreement. On April 1, 2015, the agreement was amended, where the balance due will bear interest at 6% a year and has a fixed monthly payment of $5,500 until paid in full. The balance due was $489,154 at January 31, 2016. Secured Notes Installment Loan The following summarizes the notes payable at: January 31, 2016 October 31, 2015 Convertible promissory note $ 248,895 $ 248,895 BIYA note 1,860,000 1,860,000 BIYA settlement 489,154 489,154 Convertible promissory notes 1,450,000 1,250,000 Discount on convertible promissory notes (108,000) (126,000) Installment loan 88,889 95,691 4,028,938 3,817,740 Current portion (319,632) (319,632) $ 3,709,306 $ 3,498,108

Note 7 - Income Taxes

Note 7 - Income Taxes	3 Months Ended
	Jan. 31, 2016
Notes
Note 7 - Income Taxes	NOTE 7 – INCOME TAXES No provision was made for federal income tax for the three months ended January 31, 2016 and 2015, since the Company had net operating losses.

Note 8 - Stockholders' Equity

Note 8 - Stockholders' Equity	3 Months Ended
	Jan. 31, 2016
Notes
Note 8 - Stockholders' Equity	NOTE 8 – STOCKHOLDERS’ EQUITY The Company is authorized to issue 450,000,000 common shares of par value at $0.001 and 50,000,000 preferred shares of par value at $0.001. As of January 31, 2016, 23,215,926 shares of common stock and 301,000 preferred shares were issued and outstanding.

Note 9 - Related Party Transact

Note 9 - Related Party Transactions	3 Months Ended
	Jan. 31, 2016
Notes
Note 9 - Related Party Transactions	NOTE 9 – RELATED PARTY TRANSACTIONS Natural Resource Group, Inc. has a lease for office space in Littleton, Colorado, with Spotswood Properties, LLC, a Colorado limited liability company (“Spotswood”), and an affiliate of the president, effective January 1, 2009, for a three-year term. Commencing July 1, 2010 the Company entered into a new lease for office space for a 3 year period ending July 1, 2013. The lease provides for the payment of $2,667 per month plus utilities and other incidentals. The president of the Company owns 50% of Spotswood. The Company is of the opinion that the terms of the lease are no less favorable than could be obtained from an unaffiliated party. Spotswood was paid $10,667 in each of the three months ended January 31, 2016 and 2015. Natural Resource Group, Inc. is currently leasing the office space on a month to month basis under the same terms and conditions as the lease that expired July 31, 2013. The Company paid a director and shareholder $31,250 and $48,000 during the three months ended January 31, 2016 and 2015, respectively for financial public relations consulting. The Company paid the President’s brother $17,395 and $16,270 during the three months ended January 31, 2016 and 2015, respectively for landman consulting services. The Company paid $2,707 and $7,725 to companies owned by President of BIYA Operators Inc., the Company’s wholly owned subsidiary and by his son during three months ended January 31, 2016 and 2015, respectively for field services.

Note 10 - Commitments and Conti

Note 10 - Commitments and Contingencies	3 Months Ended
	Jan. 31, 2016
Notes
Note 10 - Commitments and Contingencies	NOTE 10 – COMMITMENTS AND CONTINGENCIES Legal — Environmental — Concentration –

Note 11 - Subsequent Events

Note 11 - Subsequent Events	3 Months Ended
	Jan. 31, 2016
Notes
Note 11 - Subsequent Events	NOTE 11 – SUBSEQUENT EVENTS On February 5, 2016, the Company entered into an Agreement to Exchange Securities with Diversified Energy Services, Inc. (“DESI”) a Colorado based company. The Company issued 20,032,710 shares of its common stock in exchange for all the outstanding shares of DESI and assumed DESI’s liabilities effective February 1, 2016. DESI offers a full range of services to the Rocky Mountain energy and construction industries and is dedicated to becoming the “one call, last call” solution to a full range of oil field service needs. DESI offers Crane Service, Well Site Construction, Materials Handling and Disposal, Trucking Services, Equipment Operation, and Rigging to the energy industry in the Denver Julesburg Basin and the Rockies. DESI employs upwards of 140 highly qualified, safety focused professionals and operators. DESI operates as a wholly owned subsidiary of the Company and is not expected to experience any change in management, operations, policies or business practices.

Note 3 - Summary of Significa17

Note 3 - Summary of Significant Accounting Policies: Principles of Consolidation (Policies)	3 Months Ended
	Jan. 31, 2016
Policies
Principles of Consolidation	Principles of Consolidation The accompanying consolidated unaudited financial statements include the accounts of Diversified Resources, Inc. and its wholly owned subsidiaries, Natural Resource Group, Inc. and BIYA Operators, Inc. Any inter-company accounts and transactions have been eliminated.

Note 3 - Summary of Significa18

Note 3 - Summary of Significant Accounting Policies: Cash and Cash Equivalents (Policies)	3 Months Ended
	Jan. 31, 2016
Policies
Cash and Cash Equivalents	Cash and cash equivalents The Company considers all liquid investments with a maturity of three months or less from the date of purchase that are readily convertible into cash to be cash equivalents.

Note 3 - Summary of Significa19

Note 3 - Summary of Significant Accounting Policies: Use of Estimates (Policies)	3 Months Ended
	Jan. 31, 2016
Policies
Use of Estimates	Use of estimates The preparation of financial statements in conformity with 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 financial statements and the reported amounts of revenues and expenses during the reporting period. Estimates of oil and gas reserve quantities provide the basis for the calculation of depletion, depreciation, and amortization, and impairment, each of which represents a significant component of the financial statements. Actual results could differ from those estimates.

Note 3 - Summary of Significa20

Note 3 - Summary of Significant Accounting Policies: Revenue Recognition (Policies)	3 Months Ended
	Jan. 31, 2016
Policies
Revenue Recognition	Revenue Recognition We recognize oil and gas revenue from interests in producing wells as the oil and gas is sold. Revenue from the purchase, transportation, and sale of natural gas is recognized upon completion of the sale and when transported volumes are delivered. We recognize revenue related to gas balancing agreements based on the sales method. Our net imbalance position at January 31, 2016 and 2015 was immaterial.

Note 3 - Summary of Significa21

Note 3 - Summary of Significant Accounting Policies: Accounting For Oil and Gas Activities (Policies)	3 Months Ended
	Jan. 31, 2016
Policies
Accounting For Oil and Gas Activities	Accounting for Oil and Gas Activities Successful Efforts Method Assets are grouped in accordance with the Extractive Industries - Oil and Gas Topic of the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”). The basis for grouping is a reasonable aggregation of properties with a common geological structural feature or stratigraphic condition, such as a reservoir or field. Depreciation, depletion and amortization Proved Property Impairment Unproved Property Impairment Exploration Costs , Asset Retirement Obligations The following table reconciles the asset retirement obligation for three months ended January 31, 2016 and year ended October 31, 2015: 2016 2015 Asset retirement obligation as of beginning of period $ 321,101 $ 290,312 Liabilities added - - Liabilities settled - - Revision of estimated obligation - - Accretion expense on discounted obligation 8,736 30,789 Asset retirement obligation as of end of period $ 329,837 $ 321,101

Note 3 - Summary of Significa22

Note 3 - Summary of Significant Accounting Policies: Property and Equipment (Policies)	3 Months Ended
	Jan. 31, 2016
Policies
Property and Equipment	Property and Equipment Property and equipment consists of production buildings, furniture, fixtures, equipment and vehicles which are recorded at cost and depreciated using the straight-line method over the estimated useful lives of five to fifteen years. Maintenance and repairs are charged to expense as incurred.

Note 3 - Summary of Significa23

Note 3 - Summary of Significant Accounting Policies: Income Taxes (Policies)	3 Months Ended
	Jan. 31, 2016
Policies
Income Taxes	Income Taxes We account for income taxes in accordance with Accounting Standards Codification (“ASC”) Topic 740, Income Taxes. Under this standard, deferred tax liabilities and assets are determined based on the difference between the financial statement and tax bases of assets and liabilities using the enacted tax rates in effect for the year in which the differences are expected to reverse. Deferred tax assets are reduced by a valuation allowance when we cannot make the determination that it is more likely than not that some portion or all of the related tax asset will be realized. Interest and penalties on tax deficiencies recognized in accordance with ACS accounting standards are classified as income taxes in accordance with ASC Topic 740-10-50-19.The Company follows ASC 740-10-05 Accounting for Uncertainty in Income Taxes which prescribes a threshold and a measurement attribute for the financial statement recognition and measurement of tax positions taken or expected to be taken on a tax return. For those benefits to be recognized, a tax position must be more-likely-than-not to be sustained upon examination by taxing authorities. The amount recognized is measured as the largest amount of benefit that is greater than 50 percent likely of being realized upon ultimate settlement.

Note 3 - Summary of Significa24

Note 3 - Summary of Significant Accounting Policies: Contingent Liabilities (Policies)	3 Months Ended
	Jan. 31, 2016
Policies
Contingent Liabilities	Contingent Liabilities The Company records contingent liabilities when the amounts were incurred and determinable. Otherwise the Company will disclose the matter(s) and provide a range or best estimate of the contingency in the notes to the financial statements. As of January 31, 2016 there were no legal proceedings against the Company. Neither the Company nor any of its officers or directors is involved in any litigation either as plaintiffs or defendants, and have no knowledge of any threatened or pending litigation against them or any of the officers or directors. As of January 31, 2016, there were no contingent liabilities that required disclosure or accrual in the Company’s financial statements.

Note 3 - Summary of Significa25

Note 3 - Summary of Significant Accounting Policies: Loss Per Share (Policies)	3 Months Ended
	Jan. 31, 2016
Policies
Loss Per Share	Loss Per Share The Company computes net loss per share in accordance with ASC Topic 260, “Earnings per Share,” Under the provisions of the standard, basic and diluted net loss per share is computed by dividing the net loss available to common stockholders for the period by the weighted average number of shares of common stock outstanding during the period. During periods when losses occur, common stock equivalents, if any, are not considered in the computation as their effect would be anti-dilutive.

Note 3 - Summary of Significa26

Note 3 - Summary of Significant Accounting Policies: Recent Accounting Pronouncements (Policies)	3 Months Ended
	Jan. 31, 2016
Policies
Recent Accounting Pronouncements	Recent Accounting Pronouncements In August 2015, the FASB issued Update No. 2015-14 - Revenue from Contracts with Customers to defer the effective date of the new revenue recognition standard by one year. The new revenue recognition standard is now effective for annual periods, and interim periods within those annual periods, beginning after December 15, 2017. Early adoption is permitted but only for annual periods, and interim periods within those annual periods, beginning after December 15, 2016. The Company has started going through its contracts and is assessing their impact, but does not currently believe this guidance will have a material effect on the Company’s financial statements or disclosures. The Company does not believe that any other recently issued or proposed accounting pronouncements will have a material impact on its financial position, results of operations or cash flows.

Note 10 - Commitments and Con27

Note 10 - Commitments and Contingencies: Legal Matters and Contingencies (Policies)	3 Months Ended
	Jan. 31, 2016
Policies
Legal Matters and Contingencies	Legal —

Note 10 - Commitments and Con28

Note 10 - Commitments and Contingencies: Commitments Contingencies and Guarantees (Policies)	3 Months Ended
	Jan. 31, 2016
Policies
Commitments Contingencies and Guarantees	Environmental —

Note 10 - Commitments and Con29

Note 10 - Commitments and Contingencies: Commitments Disclosure (Policies)	3 Months Ended
	Jan. 31, 2016
Policies
Commitments Disclosure	Concentration –

Note 3 - Summary of Significa30

Note 3 - Summary of Significant Accounting Policies: Accounting For Oil and Gas Activities: Schedule of Asset Retirement Obligations (Tables)	3 Months Ended
	Jan. 31, 2016
Tables/Schedules
Schedule of Asset Retirement Obligations	2016 2015 Asset retirement obligation as of beginning of period $ 321,101 $ 290,312 Liabilities added - - Liabilities settled - - Revision of estimated obligation - - Accretion expense on discounted obligation 8,736 30,789 Asset retirement obligation as of end of period $ 329,837 $ 321,101

Note 6 - Long Term Debt and N31

Note 6 - Long Term Debt and Note Payable: Schedule of Debt (Tables)	3 Months Ended
	Jan. 31, 2016
Tables/Schedules
Schedule of Debt	January 31, 2016 October 31, 2015 Convertible promissory note $ 248,895 $ 248,895 BIYA note 1,860,000 1,860,000 BIYA settlement 489,154 489,154 Convertible promissory notes 1,450,000 1,250,000 Discount on convertible promissory notes (108,000) (126,000) Installment loan 88,889 95,691 4,028,938 3,817,740 Current portion (319,632) (319,632) $ 3,709,306 $ 3,498,108

Note 2 - Organization and Goi32

Note 2 - Organization and Going Concern (Details)	Jan. 31, 2016USD ($)
Details
Capital	$ 1,164,308

Note 5 - Notes Payable - Rela33

Note 5 - Notes Payable - Related Party (Details) - USD ($)	Jan. 31, 2016	Oct. 31, 2015
Details
Note payable - related party	$ 107,070	$ 107,070

Note 6 - Long Term Debt and N34

Note 6 - Long Term Debt and Note Payable (Details)	Jan. 31, 2016USD ($)
Details
Settlement Liabilities, Current	$ 489,154

Note 8 - Stockholders' Equity (

Note 8 - Stockholders' Equity (Details) - $ / shares	Jan. 31, 2016	Oct. 31, 2015
Details
Common Stock, Shares Authorized	450,000,000	450,000,000
Common Stock, Par Value	$ 0.001	$ 0.001
Preferred Stock, Shares Authorized	50,000,000	50,000,000
Common Stock, Shares Issued	23,215,926	23,215,926
Preferred Stock, Shares Issued	301,000	301,000

Note 9 - Related Party Transa36

Note 9 - Related Party Transactions (Details) - USD ($)	3 Months Ended
	Jan. 31, 2016	Jan. 31, 2015
Details
Operating Leases, Rent Expense	$ 10,667
Marketing and Advertising Expense	31,250	$ 48,000
Professional and Contract Services Expense	17,395	16,270
Cost of Services, Oil and Gas	$ 2,707	$ 7,725