West Texas Resources (WTXR) 10-Q 22 Aug 16 2016 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	Jun. 30, 2016	Aug. 18, 2016
Document And Entity Information
Entity Registrant Name	West Texas Resources, Inc.
Entity Central Index Key	1,518,985
Document Type	10-Q
Document Period End Date	Jun. 30, 2016
Amendment Flag	false
Current Fiscal Year End Date	--09-30
Is Entity a Well-known Seasoned Issuer?	No
Is Entity a Voluntary Filer?	No
Is Entity's Reporting Status Current?	Yes
Entity Filer Category	Smaller Reporting Company
Entity Common Stock, Shares Outstanding		16,289,908
Document Fiscal Period Focus	Q3
Document Fiscal Year Focus	2,016

BALANCE SHEETS (Unaudited)

BALANCE SHEETS (Unaudited) - USD ($)	Jun. 30, 2016	Sep. 30, 2015
Current Assets
Cash	$ 40,273	$ 142,762
Receivable from shareholder	3,558	0
Total Current Assets	43,831	142,762
Equipment, pumping unit held in storage	13,200	0
Oil and gas properties, using successful efforts accounting	267,433	217,433
TOTAL ASSETS	324,464	360,195
Current Liabilities
Accrued expenses	142,052	161,370
Payroll liabilities	4,000	978
Investment payable	13,600	13,600
Lease payable	5,000	5,000
Asset retirement obligation	10,000	10,000
Shareholder advances	0	45,000
Other payable	24,843	40,414
Total Current Liabilities	199,495	276,362
Commitments and Contingencies
Shareholders' Equity
Preferred stock, $0.001 par value; 10,000,000 shares authorized; no shares issued and outstanding	0	0
Common stock, $0.001 par value; 200,000,000 shares authorized; 16,149,908 and 14,515,400 shares issued and outstanding at June 30, 2016 and September 30, 2015, respectively	16,150	14,515
Additional paid-in capital	2,569,122	1,947,896
Common Stock issuable	60,000	501,754
Accumulated deficit	(2,520,303)	(2,380,332)
Total Shareholders' Equity	124,969	83,833
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY	$ 324,464	$ 360,195

BALANCE SHEETS (Parenthetical)

BALANCE SHEETS (Parenthetical) - $ / shares	Jun. 30, 2016	Sep. 30, 2015
Statement of Financial Position [Abstract]
Preferred stock par value	$ 0.001	$ 0.001
Preferred stock shares authorized	10,000,000	10,000,000
Preferred stock shares issued	0	0
Preferred stock shares outstanding	0	0
Common stock par value	$ 0.001	$ 0.001
Common stock shares authorized	200,000,000	200,000,000
Common stock shares issued	16,149,908	14,515,400
Common stock shares outstanding	16,149,908	14,515,400

STATEMENTS OF OPERATIONS (Unaud

STATEMENTS OF OPERATIONS (Unaudited) - USD ($)	3 Months Ended		9 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Revenues
Oil and gas sales	$ 227	$ 91	$ 657	$ 81,231
General and administrative expenses	33,205	86,003	139,674	298,000
Operating Loss	(32,978)	(85,912)	(139,017)	(216,769)
Other income (expenses)
Interest expense	0	(10,732)	(954)	(25,266)
Amortization of debt discount	0	(26,110)	0	(115,830)
Loss on sale of oil and gas interest	0	(150,050)	0	(150,050)
Impairment loss on oil and gas properties	0	0	0	(317,876)
Other income	0	0	0	30,000
Loss Before Income Taxes	(32,978)	(272,804)	(139,971)	(795,791)
Tax Provision	0	0	0	0
Net Loss	$ (32,978)	$ (272,804)	$ (139,971)	$ (795,791)
Loss per share
Basic and diluted weighted average number of common shares outstanding	16,042,064	14,415,400	15,306,461	14,415,400
Basic and diluted net loss per share	$ 0	$ (.02)	$ (.01)	$ (.06)

STATEMENTS OF CASH FLOWS (Unaud

STATEMENTS OF CASH FLOWS (Unaudited) - USD ($)	9 Months Ended
	Jun. 30, 2016	Jun. 30, 2015
Cash flows from operating activities
Net loss	$ (139,971)	$ (795,791)
Adjustments to reconcile net loss to net cash from operating activities:
Stock-based compensation	26,357	19,491
Loss on sale of oil and gas interest	0	150,050
Impairment loss on investment	0	317,876
Depletion expense	0	20,000
Amortization of debt discount	0	115,830
Changes in operating assets and liabilities:
Accounts receivable	0	45,055
Payroll liabilities	3,022	(2,521)
Other payable - Bank of America	(15,571)	3,583
Interest payable	0	18,852
Accrued expenses	(19,318)	1,693
Net cash provided by (used in) operating activities	(145,481)	(105,882)
Cash used for investing activities
Cash to purchase oil and gas properties	(10,000)	0
Purchase of pumping unit	(7,200)	0
Proceeds from sale of oil and gas interest	0	185,450
Net cash provided by (used in) investing activities	(17,200)	185,450
Cash flows from financing activities
Proceeds from sale of common stock	72,750	0
Repayment on note payable	0	(66,005)
Shareholder Advances	(6,558)	13,000
Purchase of equipment on credit	(6,000)	0
Net cash provided by (used in) financing activities	60,192	(53,005)
Net increase (decrease) in cash	(102,489)	26,563
Cash, beginning of period	142,762	144,506
Cash, end of period	40,273	171,069
Supplemental cash flow disclosure:
Interest paid	954	6,414
Income taxes paid	0	0
Supplemental disclosure of non-cash transactions:
Conversion of shareholder advances to common stock	42,000	0
Common stock issued for investments in oil and gas properties	$ 40,000	$ 0

1. Organization and Summary of

1. Organization and Summary of Significant Accounting Policies	9 Months Ended
	Jun. 30, 2016
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Organization and Summary of Significant Accounting Policies	Organization and business West Texas Resources, Inc. (the “Company”) was incorporated under the laws of Nevada on December 9, 2010 under the name Texas Resources Energy, Inc., a Texas corporation. On June 30, 2011, the Company changed its name to West Texas Resources, Inc. The Company intends to engage in the acquisition, exploration and development of oil and gas properties in North America. From its inception, the Company has devoted its activities to developing a business plan, raising capital and acquiring operating assets. Basis of presentation The accompanying unaudited financial statements have been prepared in accordance with accounting principles generally accepted in the United States (U.S.) for interim financial information and with the instructions to Form 10-Q and Rule 8-03 of Regulation S-X promulgated by the Securities and Exchange Commission (“SEC”) and reflect all adjustments, consisting of normal recurring adjustments and other adjustments, which management believes are necessary to fairly present the financial position, results of operations and cash flows of the Company, for the respective periods presented. The results of operations for an interim period are not necessarily indicative of the results that may be expected for any other interim period or the year as a whole. The accompanying unaudited financial statements should be read in conjunction with the financial statements and notes for the year ended September 30, 2015. Going concern The accompanying financial statements have been prepared in conformity with accounting principles generally accepted in the United States (GAAP) that contemplate continuation of the Company as a going concern. The Company has not earned any significant revenues since inception. During the nine months ended June 30, 2016 and 2015, the Company incurred a net loss of $139,971 and $795,791, respectively. In addition, the Company had an accumulative deficit of $2,520,303 and $2,380,332, as of June 30, 2016 and September 30, 2015, respectively. These factors raise substantial doubt about the Company’s ability to continue as a going concern. The Company will require up to $1 million of additional capital in order to fund its proposed operations over the next 12 months. Management plans to continue to seek sources of financing on favorable terms; however, there are no assurances that any such financing can be obtained on favorable terms, if at all. Management expects to monitor and control the Company’s operating costs until cash is available through financing or operating activities. There are no assurances that the Company will be successful in achieving these plans. The Company anticipates that losses will continue until such time, if ever, as the Company is able to generate sufficient revenues to support its operations. Oil and gas properties The Company uses the successful efforts method of accounting for oil and gas producing activities. Costs to acquire mineral interests in oil and gas properties, to drill and equip exploratory wells that find proved reserves, to drill and equip development wells and related asset retirement costs 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. Unproved oil and gas properties that are individually significant are periodically assessed for impairment of value, and a loss is recognized at the time of impairment by providing an impairment allowance. Other unproved properties are amortized based on the Company's experience of successful drilling and average holding period. Capitalized costs of producing oil and gas properties, after considering estimated residual salvage values, are depreciated and depleted by the unit-of-production method. On the sale or retirement of a complete unit of a proved property, the cost and related accumulated depreciation, depletion, and amortization are eliminated from the property accounts, and the resultant gain or loss is recognized. On the retirement or sale of a partial unit of proved property, the cost is charged to accumulated depreciation, depletion, and amortization with a resulting gain or loss recognized in income. On the sale of an entire interest in an unproved property for cash or cash equivalent, gain or loss on the sale is recognized, taking into consideration the amount of any recorded impairment if the property had been assessed individually. If a partial interest in an unproved property is sold, the amount received is treated as a reduction of the cost of the interest retained. Impairment of long-lived assets The Company accounts for the impairment and disposition of long-lived assets in accordance with ASC 360-10-35, Impairment or Disposal of Long-Lived Assets Asset retirement obligations ASC 410-20, Asset Retirement Obligations Except for the Eastland County investment, the asset retirement obligations for the other properties are recognized by the operators of these properties and deducted against the revenue interest of the Company. Cash, cash equivalents, and other cash flow statement supplemental information Cash is commonly considered to consist of currency and demand in deposits. The Company considers all liquid investments with an original maturity of three months or less that are readily convertible into cash to be cash equivalents. The Company places its cash with high credit quality financial institutions. Accounts at these institutions are insured by the Federal Deposit Insurance Corporation (FDIC) up to $250,000. The Company performs ongoing evaluations of these institutions to limit its concentration of risk exposure. Management believes this risk is not significant due to the financial strength of the financial institutions utilized by the Company. 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 certain reported amounts and disclosures. Accordingly, actual results could differ from those estimates. Income taxes The Company reports certain expenses differently for financial and tax reporting purposes and, accordingly, provides for the related deferred taxes. Income taxes are accounted for under the liability method in accordance with ASC 740, Income Taxes. Management has considered its tax positions and believes that all of the positions taken by the Company in its Federal and State tax returns are more likely than not to be sustained upon examination. The Company is subject to examination by U.S. Federal and State tax authorities from 2012 to the present, generally for three years after they are filed. The Company has not filed its income tax returns for fiscal years 2012 to 2015. The Company plans to file these tax returns in the fourth calendar quarter of 2016. The Company believes that it should not have any material impact on the financials because the Company did not have any tax liabilities due to net loss incurred for these years. Basic and diluted net income (loss) per share Basic net income (loss) per share is based upon the weighted average number of common shares outstanding. Diluted net income (loss) per share is based on the assumption that all dilutive convertible shares and stock options were converted or exercised. Dilution is computed by applying the treasury stock method. Under this method, options and warrants are assumed to be exercised at the beginning of the period (or at the time of issuance, if later), and as if funds obtained thereby were used to purchase common stock at the average market price during the period. For the six months ended June 30, 2016 and 2015, all common stock equivalents were anti-dilutive. Stock-based payments Compensation costs for all share-based awards are measured based on the grant date fair value and are recognized over the vesting period. The Company has no awards with market or performance conditions. Excess tax benefits will be recognized as an addition to additional paid-in-capital. Revenue recognition In accordance with the requirements ASC topic 605 “Revenue Recognition”, revenues are recognized at such time as (1) persuasive evidence of an arrangement exists, (2) delivery has occurred or services have been rendered, (3) the seller’s price to the buyer is fixed or determinable and (4) collectability is reasonably assured. Fair value of financial instruments The accounting standards regarding fair value of financial instruments and related fair value measurements defines financial instruments and requires disclosure of the fair value of financial instruments held by the Company. The Company considers the carrying amount of cash and other current assets and liabilities to approximate their fair values because of the short period of time between the origination of such instruments and their expected realization. The Company has also adopted ASC 820-10 which defines fair value, establishes a three-level valuation hierarchy for disclosures of fair value measurement and enhances disclosure requirements for fair value measures. The three levels are defined as follows: · Level 1 inputs to the valuation methodology are quoted prices (unadjusted) for identical assets or liabilities in active markets. · Level 2 inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, and inputs that are observable for the assets or liability, either directly or indirectly, for substantially the full term of the financial instruments. · Level 3 inputs to the valuation methodology are unobservable and significant to the fair value. As of June 30, 2016 and September 30, 2015, the Company did not identify any assets or liabilities that are required to be presented on the balance sheet at fair value in accordance with ASC 820-10. Certain reclassifications have been made to the prior year financial statements in order for them to be in conformity with the current year presentation. Recent accounting pronouncement In May 2014, the FASB issued ASU No. 2014-09 " Revenue from Contracts with Customers " (Topic 606). Topic 606 supersedes the revenue recognition requirements in Topic 605, “Revenue Recognition”, including most industry-specific revenue recognition guidance throughout the Industry Topics of the Codification. In addition, the amendments create a new Subtopic 340-40, “Other Assets and Deferred Costs—Contracts with Customers”. In summary, the core principle of Topic 606 is that an entity recognizes revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. For a public entity, the amendments in this Update are effective for annual reporting periods beginning after December 15, 2017, including interim periods within that reporting period. Early application is not permitted. Management is currently evaluating the impact this guidance will have on Company’s financial position and statement of operations. In June 2014, the FASB issued ASU No. 2014-12, "Compensation - Stock Compensation (Topic 718)," which makes amendments to the codification topic 718, "Accounting for Share-Based Payments.” when the terms of an award provide that a performance target could be achieved after the requisite service period. The new guidance becomes effective for annual reporting periods beginning after December 15, 2015, early adoption is permitted. Management is currently evaluating the impact this guidance will have on our financial position and results of operations. In August 2014, the FASB issued Accounting Standards Update ("ASU") No. 2014-15, “Presentation of Financial Statements – Going Concern”, Subtopic 205-40, “Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern.” The amendments in this ASU apply to all entities and require management to assess an entity’s ability to continue as a going concern by incorporating and expanding upon certain principles that are currently in U.S. auditing standards. Specifically, the amendments (1) provide a definition of the term substantial doubt, (2) require an evaluation every reporting period including interim periods, (3) provide principles for considering the mitigating effect of management’s plans, (4) require certain disclosures when substantial doubt is alleviated as a result of consideration of management’s plans, (5) require an express statement and other disclosures when substantial doubt is not alleviated, and (6) require an assessment for a period of one year after the date that the financial statements are issued (or available to be issued). The amendments in this Update are effective for the annual period ending after December 15, 2016, and for annual periods and interim periods thereafter. Early application is permitted. Management is currently evaluating the impact this guidance will have on Company’s financial position and results of operations.

2. Oil and Gas Properties

2. Oil and Gas Properties	9 Months Ended
	Jun. 30, 2016
Extractive Industries [Abstract]
Oil and Gas Properties	Eastland County Field In September 2011, we acquired our initial property consisting of a 31.25% working interest in an exploratory oil and gas drilling prospect covering 120 acres in Eastland County, Texas. After exploratory work was performed, we determined that, as of the three months ended June 30, 2013, our investment in the Eastland County prospect was impaired due to an unsuccessful fracture simulation. The value of this property, subsequent the impairment, was $20,449. The operator has undertaken no further activity on the Eastland County prospect as of the date of this report. Port Hudson Field, Baton Rouge Parish, Louisiana Effective April 1, 2013, the Company acquired a 7.24625% working interest in the oil and gas leases, wells and attendant production in the Port Hudson field, Baton Rouge Parish, Louisiana, for a total consideration of $702,900. The Company’s working interest was subject to certain overriding royalty interests, subject to which it had a 5.65158% net revenue interest in the Port Hudson Field. On April 5, 2014, the Company entered into an agreement with EnTek Partners, LLC for the sale of 44.1% of the Company’s working interest in the Port Hudson field for the total consideration of $290,000, less any payments received by the Company for production from the Port Hudson field occurring after January 1, 2014. Pursuant to the Company’s agreement with EnTek Partners, the Company sold to EnTek an undivided 3.1956% of 8/8th working interest (2.4926% net revenue interest) out of the working interests in the Port Hudson field owned by the Company at that time. The transactions under the Entek Partners agreement closed on April 16, 2014, with an effective date of January 1, 2014. After giving effect to the sale, the Company continued to hold a 4.0506% working interest (3.1595% net revenue interest) in Port Hudson field. During the year ended September 30, 2014, the Company recorded a loss on sale of the working interest of $19,983. Pursuant to the same agreement, EnTek Partners had also agreed to provide to the Company $275,000 in non-recourse financing to pay for its share of a dual recompletion in the D-1 well at West Cam 225 property in exchange for its agreement to provide EnTek Partners with 75% of the net profits derived by the Company from the West Cam 225 property until such time as EnTek Partners has recouped 100% of the recompletion costs advanced on the Company’s behalf and 50% of the net profits thereafter. West Cam 225, Louisiana On August 16, 2013, the Company entered into an agreement with Enovation Resources, LLC to purchase a 10.0167% working interest (7.2120% net revenue interest) in an offshore oil and gas field, known as West Cam 225, located in the shallow waters of the Gulf of Mexico near Cameron, Louisiana. The Company’s purchase price for the working interest was $50,000. In addition to the purchase price, the Company paid $230,459 as advance for costs for development. Sunshine Prospect, Landry Parish, Louisiana On August 1, 2014, the Company entered into an agreement with Restech Resources, LLC to purchase a 15% (14.25% net revenue interest) in an oil and gas prospect located in Landry Parish, Louisiana. The working interest concerns 248 gross acres and net acres in the Sunshine Prospect. Our purchase price for the working interest was $76,500. Birnie Field, Motley County, Texas On September 17, 2014, the Company entered into an agreement with Escopeta Oil and Gas Corporation to purchase a 10% working interest (7.5% net revenue interest) in a natural gas prospect located in the Birnie field in Motley County, Texas. The working interest concerns 5,760 leased acres in the Palo Duro Basin prospect. Our purchase price for the working interest was $70,000. In 2014, the operator drilled an initial well on the prospect, however the drilling was unsuccessful and resulted in a dry hole. The operator agreed to provide us, for no additional consideration, a 1% working interest in the Stansell field prospect described below. Stansell Field, Floyd County, Texas We hold a 1% working interest in an oil prospect located in Floyd County, Texas. The working interest comprises 15,000 leased acres in the southern section of the Palo Duro basin. The initial project will be the re-entry of the Stansell #1-A well, an existing wellbore that was drilled in 2006. The original drilling encountered oil shows in three separate reservoirs and the operator intends to re-enter and recomplete the Stansell #1-A the Companying current fracture stimulation technology. We have a carried 1% working interest in the Stansell #1-A well through the tanks. In April 2015, the operator has started the re-entry of the Stansell #1-A well. Wolfcamp Field, Hale County, Texas In June and July 2014, the Company acquired non-operating leases covering approximately 1,070 gross mineral acre leases in the Wolfcamp field located in Hale County, Texas. The leases were acquired for cash payments of $45,484. The leases have a primary term of five years with the Company option to extend the term for another five years. The leased properties constitute the surface acreage comprising a natural gas prospect, for which we hold 50% of the working interest and 40% net revenue interest. The leased properties are subject to a 20% royalty interest held by the owners and a third party. The Company is currently evaluating the Company options for the exploitation of the leased properties, including the Company sale of the leases or the Company farm-out of the leases to a natural gas operator. Sale of Port Hudson Field and West Cam 225 During the quarter ended March 31, 2015, the Company decided to sell 100% of its interest in Port Hudson field and West Cam 225. The net investment of $653,376 was reclassed as oil and gas properties held for sale and recorded at market value of $335,500. The Company recorded impairment loss of $317,876 due to reduction of the market value comparing to the cost of these investments. On April 6, 2015, the Company entered into agreements with Hi-Tech exploration, LLC to sell its entire interests in the Port Hudson field and the West Cam 225 for a total consideration of $335,500. The Company completed the sale and paid $150,050 for outstanding costs and recorded it as loss on sale of oil and gas interest. Leased Properties from Kiowa Oil Company On September 30, 2015, the Company entered into an agreement with Kiowa Oil Company to lease 100% of interests, for a period of five years, of properties in North Dakota, Florida, Illinois, and Kentucky. The total price for the subject interests under this lease agreement is $5,000 and a 15% royalty interest in all the subject interests leased. The total price will be paid in the Company’s common shares at the per share price of $0.50. TW Lee Field, Gregg County, Texas On March 3, 2016, the Company entered into an agreement with Two Eagle Resources, a Texas corporation, to purchase 25% working interest (18.75% net revenue interest) in the properties located in Gregg County, Texas. The property is known as T.W. Lee. The purchase price for the subject interests under this agreement is $25,000, which will be paid in the Company’s common shares at the per share price of $0.25. T.A. Greer Lease On May 10, 2016, the Company acquired a 25% working interest (19.5% net revenue interest) in an East Texas oil and gas property. The property is known as the T.A. Greer lease and includes two tracts of land totaling approximately 407 acres in Panola County, Texas.. We acquired the property from an unaffiliated party in consideration of our payment of $10,000 and issuance of 60,000 shares of our common stock at $0.25 per share for a total consideration of $25,000. As of June 30, 2016 and September 30, 2015, total oil and gas properties amounted to $267,433 and $217,433, respectively.

3. Notes Payable - Related Part

3. Notes Payable - Related Parties	9 Months Ended
	Jun. 30, 2016
Debt Disclosure [Abstract]
Notes Payable - Related Parties	On August 14, 2013, the Company entered into a loan agreement with a shareholder, Gary Bryant, pursuant to which Mr. Bryant loaned the Company $417,762, the proceeds of which were used to partially finance the acquisition of the Port Hudson interest described in Note 2 above. The loan beared interest on the unpaid principal amount at the rate of 8% per annum. All principal and interest were payable over a four year period, commencing November 1, 2013, at the amortized rate of $10,198 per month. The Company’s obligations under the loan were secured by our working interest in the Port Hudson field. On September 6, 2013, the Company entered into another loan agreement with Mr. Gary Bryant, pursuant to which Mr. Bryant loaned the Company $130,000, the proceeds of which were used to partially finance the Company’s payment of its allocable expenses associated with its working interest in the West Cam 225 field, described in Note 2 above. The loan beared interest on the unpaid principal amount at the rate of 6% per annum. All principal and interest were payable on December 6, 2013 and were convertible into shares of the Company’s common stock, at the option of the holder, at the rate of $0.50 per share. In December 2013, Mr. Bryant and the Company entered to an agreement to extend the due date of the loan to February 6, 2016. The Company’s obligations under the loan were secured by its working interest in the Port Hudson field. The Company also entered into an amendment to its loan agreement with Mr. Bryant dated August 14, 2013, in the original principal amount of $417,762, to provide that all principal and interest under that loan agreement were convertible into shares of the Company’s common stock, at the option of the holder, at the rate of $0.50 per share. On April 3, 2015, Mr. Bryant agreed to release the security interest in the Port Hudson field as the Company engaged in negotiations to sell the property. The Company determined that the fair value of the above conversion options and the warrants using the Black–Scholes model with the variables listed below: · Volatility: 160% · Risk free rate of return: 0.01% to 0.875% · Expected term: 0.25 to 4 years On September 16, 2014, the Company entered into a Note purchase agreement with Lake Oswego Oil Company, LLC, an Oregon limited liability company controlled by one of the shareholders, pursuant to which the Company sold a secured promissory note in the principal amount of $50,000, for a purchase price of $50,000. Interest accrues on the unpaid principal balance of the note at the rate of six percent per annum. This note was fully paid off in the quarter ended December 31, 2014. As an inducement to the note holder to enter into this agreement, the Company also granted the note holder a warrant to purchase 100,000 shares of the Company’s common stock, and exercisable at $0.50 per share over a two year period expiring on September 16, 2019. The Company determined that the fair value of the warrants using Black–Scholes model with the variable listed below: · Volatility: 340% · Risk free rate of return: 1.688% · Expected term: 2 years On September 30, 2015, Mr. Bryant agreed to convert the outstanding principal amounts of $325,146 and $130,000 and accrued interest to the Company’s common stock at $0.5 and $0.5 per share respectively. In connection with the issuance of the above notes, the Company recorded a note discount of $50,000 and $647,762 for the years ended September 30, 2014 and 2013, respectively, which are to be amortized over the lives of the notes. On September 30, 2015, due to conversion of the full outstanding principal amount owed to Mr. Bryant, the related note discount was fully amortized.

4. Shareholder Advances

4. Shareholder Advances	9 Months Ended
	Jun. 30, 2016
ShareholderAdvancesAbstract
Shareholder Advances	During the year ended September 30, 2014 and 2013, a shareholder made advances to the Company to support its daily operations. These advances were due on demand and do not bear any interest. During the year ended September 30, 2015, a shareholder paid a total amount of $15,000 for payment of legal fees on behalf of the Company through his personal credit line. The outstanding balance was due on demand and bears variable interest of 25.99%. As of September 30, 2015, the total outstanding amount due to the shareholder was $45,000. The Company repaid $6,558 during the six months ended March 31, 2016. In January 2016, the Company issued 450,000 shares of its common stock upon conversion of the outstanding amount of $45,000. In addition, the shareholder retired 30,000 shares in exchange for $3,000 overpayment made to him. As of June 30, 2016, the Company had a receivable from shareholder of $3,558.

5. Shareholders' Equity

5. Shareholders' Equity	9 Months Ended
	Jun. 30, 2016
Shareholders' Equity
Shareholders' Equity	The Company is authorized to issue 200,000,000 shares of common stock, par value of $0.001, and 10,000,000 shares of preferred stock, par value of $0.001. In September 2015, the Company entered into a subscription agreement with an accredited investor to sell 100,000 shares of the Company’s common stock at $0.25 per share. The total amount of $25,000 was received and shares were issued in September 2015. On September 30, 2015, Mr. Bryant, a shareholder and convertible note holder, agreed to convert the outstanding principal amounts of $325,146 and $130,000 due to him to the Company’s common stock at $0.50 per share. The Company issued 1,003,508 shares in February 2016 as repayment of the outstanding principal and accrued interest. In January 2016, the Company issued 450,000 shares of its common stock upon conversion of the outstanding amount of shareholder advances of $45,000. In addition, the shareholder retired 30,000 shares in exchange for $3,000 overpayment made to him. During the quarter ended March 31, 2016, the Company entered into subscription agreements with various accredited investors to sell 191,000 shares of the Company’s common stock at $0.25 per share. The total amount of $47,750 was received and recorded as common stock issuable. On March 3, 2016, the Company entered into an agreement with Two Eagle Resources, a Texas corporation, to purchase 25% working interest / 18.75% net revenue interest in the properties known as T.W. Lee located in Gregg County, Texas. The purchase price for the subject interests under this agreement is $25,000, which will be paid in the Company’s common shares at the per share price of $0.25. As of June 30, 2016, the shares had not been issued and were recorded as common stock issuable. During the quarter ended June 30, 2016 the Company entered into subscription agreements with various accredited investors to sell 100,000 shares of the Company’s common stock at $0.25 per share. The total amount of $25,000 was received and $5,000 worth of the shares were issued as of June 30, 2016 with the remaining $20,000 recorded as common stock issuable. On May 10, 2016, the Company entered into an agreement with Two Eagle Resources, a Texas corporation, to purchase 25% working interest in the properties know as T.A. Greer located in Panola County, Texas. The purchase price for the subject interests under this agreement is $10,000 in cash and $15,000, which will be paid in the Company’s common shares at the per share price of $0.25. As of June 30, 2016, the shares had not been issued and were recorded as common stock issuable. The cash portion was paid May 12, 2016. As of June 30, 2016 and September 30, 2015, the Company had 16,149,908 and 14,515,400 shares of common stock issued and outstanding and had not issued any of its preferred stock. On September 15, 2011, the Company adopted the West Texas Resources, Inc. 2011 Stock Incentive Plan (the “Plan”) providing for the grant of non-qualified stock options and incentive stock options to purchase its common stock and for grant of restricted and unrestricted grants. The Company has reserved 3,000,000 shares of its common stock under the Plan. All officers, directors, employees and consultants to the Company are eligible to participate under the Plan. The purpose of the Plan is to provide eligible participants with an opportunity to acquire an ownership interest in the Company. In 2011, the Company granted options to certain consultants to purchase 400,000 shares of the Company’s common stock. The options vest immediately and expire on September 15, 2016. The fair value of each share-based award was estimated using the Black-Scholes option pricing model or a lattice model. The fair value of these options, determined to be $65,402, was included in general and administrative expenses for the year ended September 30, 2011. The following assumptions were used in the fair value method calculation: · Volatility: 83% · Risk free rate of return: 1% · Expected term: 5 years On March 7, 2014, the Company granted options to certain consultants to purchase 1,500,000 shares of the Company’s common stock, of which 200,000 options vested upon the date of grant and the balance of 1,300,000 options expired in October 2014 in connection with the termination of the consulting arrangement. The 200,000 vested options expire on March 7, 2019. The fair value of the vested options for 200,000 shares, determined to be $116,137, was recorded in general and administrative expenses for the year ended September 30, 2014. On March 11, 2014, the Company granted options to its officers to purchase a total of 200,000 shares of the Company’s common stock. The options expire on March 11, 2019 and vest immediately. The fair value of these options determined to be $116,119 and was included in general and administrative expenses for the year ended September 30, 2014. The following assumptions were used in the fair value method calculation: · Volatility: 190% · Risk free rate of return: 1.5% · Expected term: 5 years On April 16, 2015, the Company granted options to Mr. Paul Brogan, the Company’s director, to purchase a total of 200,000 shares of the Company’s common stock. The options have an exercise price of $0.5 per share and expire on April 16, 2020 and 66,667 shares vest immediately with the rest vest equally on April 16, 2016 and 2017. The fair value of these options was determined to be $99,712, of which $26,357 was amortized and included in general and administrative expenses for the nine months ended June 30, 2016. As of June 30, 2016, the unrecognized compensation expense related the non-vested stock options was $26,313 to be amortized over the vesting period. The following assumptions were used in the fair value method calculation: · Volatility: 266% · Risk free rate of return: 1.375% · Expected term: 5 years The following information applies to all options outstanding at June 30, 2016: · Weighted average exercise price: $0.44 · Options outstanding and exercisable: 947,223 · Average remaining life: 1.81 years

6. Income Taxes

6. Income Taxes	9 Months Ended
	Jun. 30, 2016
Income Tax Disclosure [Abstract]
Income Taxes	Based on the available information and other factors, management believes it is more likely than not that the net deferred tax assets at September 30, 2015 and 2014 will not be fully realizable. Accordingly, management has recorded a full valuation allowance against its net deferred tax assets at September 30, 2015 and 2014. As of September 30, 2015 and 2014, the Company had federal net operating loss carry-forwards of approximately $2,400,000 and $1,300,000, respectively, expiring beginning in 2032. Deferred tax assets consist of the following components: September 30, 2015 September 30, 2014 Net loss carryforward $ 840,000 $ 455,000 Valuation allowance (840,000 ) (455,000 ) Total deferred tax assets $ – $ –

7. Subsequent Event

7. Subsequent Event	9 Months Ended
	Jun. 30, 2016
Subsequent Events [Abstract]
Subsequent Event	Events subsequent to June 30, 2016 have been evaluated through the date these financial statements were issued to determine whether they should be disclosed to keep the financial statements from being misleading. Management noted the following subsequent event that should be disclosed: · On August 9, 2016, the Company issued 60,000 shares of the Company’s common stock at $0.25 per share to a shareholder in exchange for additional investment in the Greer property.

1. Organization and Summary o13

1. Organization and Summary of Significant Accounting Policies (Policies)	9 Months Ended
	Jun. 30, 2016
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Organization and business	Organization and business West Texas Resources, Inc. (the “Company”) was incorporated under the laws of Nevada on December 9, 2010 under the name Texas Resources Energy, Inc., a Texas corporation. On June 30, 2011, the Company changed its name to West Texas Resources, Inc. The Company intends to engage in the acquisition, exploration and development of oil and gas properties in North America. From its inception, the Company has devoted its activities to developing a business plan, raising capital and acquiring operating assets.
Basis of presentation	Basis of presentation The accompanying unaudited financial statements have been prepared in accordance with accounting principles generally accepted in the United States (U.S.) for interim financial information and with the instructions to Form 10-Q and Rule 8-03 of Regulation S-X promulgated by the Securities and Exchange Commission (“SEC”) and reflect all adjustments, consisting of normal recurring adjustments and other adjustments, which management believes are necessary to fairly present the financial position, results of operations and cash flows of the Company, for the respective periods presented. The results of operations for an interim period are not necessarily indicative of the results that may be expected for any other interim period or the year as a whole. The accompanying unaudited financial statements should be read in conjunction with the financial statements and notes for the year ended September 30, 2015.
Going concern	Going concern The accompanying financial statements have been prepared in conformity with accounting principles generally accepted in the United States (GAAP) that contemplate continuation of the Company as a going concern. The Company has not earned any significant revenues since inception. During the nine months ended June 30, 2016 and 2015, the Company incurred a net loss of $139,971 and $795,791, respectively. In addition, the Company had an accumulative deficit of $2,520,303 and $2,380,332, as of June 30, 2016 and September 30, 2015, respectively. These factors raise substantial doubt about the Company’s ability to continue as a going concern. The Company will require up to $1 million of additional capital in order to fund its proposed operations over the next 12 months. Management plans to continue to seek sources of financing on favorable terms; however, there are no assurances that any such financing can be obtained on favorable terms, if at all. Management expects to monitor and control the Company’s operating costs until cash is available through financing or operating activities. There are no assurances that the Company will be successful in achieving these plans. The Company anticipates that losses will continue until such time, if ever, as the Company is able to generate sufficient revenues to support its operations.
Oil and gas properties	Oil and gas properties The Company uses the successful efforts method of accounting for oil and gas producing activities. Costs to acquire mineral interests in oil and gas properties, to drill and equip exploratory wells that find proved reserves, to drill and equip development wells and related asset retirement costs 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. Unproved oil and gas properties that are individually significant are periodically assessed for impairment of value, and a loss is recognized at the time of impairment by providing an impairment allowance. Other unproved properties are amortized based on the Company's experience of successful drilling and average holding period. Capitalized costs of producing oil and gas properties, after considering estimated residual salvage values, are depreciated and depleted by the unit-of-production method. On the sale or retirement of a complete unit of a proved property, the cost and related accumulated depreciation, depletion, and amortization are eliminated from the property accounts, and the resultant gain or loss is recognized. On the retirement or sale of a partial unit of proved property, the cost is charged to accumulated depreciation, depletion, and amortization with a resulting gain or loss recognized in income. On the sale of an entire interest in an unproved property for cash or cash equivalent, gain or loss on the sale is recognized, taking into consideration the amount of any recorded impairment if the property had been assessed individually. If a partial interest in an unproved property is sold, the amount received is treated as a reduction of the cost of the interest retained.
Impairment of long-lived assets	Impairment of long-lived assets The Company accounts for the impairment and disposition of long-lived assets in accordance with ASC 360-10-35, Impairment or Disposal of Long-Lived Assets
Asset retirement obligations	Asset retirement obligations ASC 410-20, Asset Retirement Obligations Except for the Eastland County investment, the asset retirement obligations for the other properties are recognized by the operators of these properties and deducted against the revenue interest of the Company.
Cash, cash equivalents, and other cash flow statement supplemental information	Cash, cash equivalents, and other cash flow statement supplemental information Cash is commonly considered to consist of currency and demand in deposits. The Company considers all liquid investments with an original maturity of three months or less that are readily convertible into cash to be cash equivalents. The Company places its cash with high credit quality financial institutions. Accounts at these institutions are insured by the Federal Deposit Insurance Corporation (FDIC) up to $250,000. The Company performs ongoing evaluations of these institutions to limit its concentration of risk exposure. Management believes this risk is not significant due to the financial strength of the financial institutions utilized by the Company.
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 certain reported amounts and disclosures. Accordingly, actual results could differ from those estimates.
Income taxes	Income taxes The Company reports certain expenses differently for financial and tax reporting purposes and, accordingly, provides for the related deferred taxes. Income taxes are accounted for under the liability method in accordance with ASC 740, Income Taxes. Management has considered its tax positions and believes that all of the positions taken by the Company in its Federal and State tax returns are more likely than not to be sustained upon examination. The Company is subject to examination by U.S. Federal and State tax authorities from 2012 to the present, generally for three years after they are filed. The Company has not filed its income tax returns for fiscal years 2012 to 2015. The Company plans to file these tax returns in the fourth calendar quarter of 2016. The Company believes that it should not have any material impact on the financials because the Company did not have any tax liabilities due to net loss incurred for these years.
Basic and diluted net income (loss) per share	Basic and diluted net income (loss) per share Basic net income (loss) per share is based upon the weighted average number of common shares outstanding. Diluted net income (loss) per share is based on the assumption that all dilutive convertible shares and stock options were converted or exercised. Dilution is computed by applying the treasury stock method. Under this method, options and warrants are assumed to be exercised at the beginning of the period (or at the time of issuance, if later), and as if funds obtained thereby were used to purchase common stock at the average market price during the period. For the six months ended June 30, 2016 and 2015, all common stock equivalents were anti-dilutive.
Stock-based payments	Stock-based payments Compensation costs for all share-based awards are measured based on the grant date fair value and are recognized over the vesting period. The Company has no awards with market or performance conditions. Excess tax benefits will be recognized as an addition to additional paid-in-capital.
Revenue recognition	Revenue recognition In accordance with the requirements ASC topic 605 “Revenue Recognition”, revenues are recognized at such time as (1) persuasive evidence of an arrangement exists, (2) delivery has occurred or services have been rendered, (3) the seller’s price to the buyer is fixed or determinable and (4) collectability is reasonably assured.
Fair value of financial instruments	Fair value of financial instruments The accounting standards regarding fair value of financial instruments and related fair value measurements defines financial instruments and requires disclosure of the fair value of financial instruments held by the Company. The Company considers the carrying amount of cash and other current assets and liabilities to approximate their fair values because of the short period of time between the origination of such instruments and their expected realization. The Company has also adopted ASC 820-10 which defines fair value, establishes a three-level valuation hierarchy for disclosures of fair value measurement and enhances disclosure requirements for fair value measures. The three levels are defined as follows: · Level 1 inputs to the valuation methodology are quoted prices (unadjusted) for identical assets or liabilities in active markets. · Level 2 inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, and inputs that are observable for the assets or liability, either directly or indirectly, for substantially the full term of the financial instruments. · Level 3 inputs to the valuation methodology are unobservable and significant to the fair value. As of June 30, 2016 and September 30, 2015, the Company did not identify any assets or liabilities that are required to be presented on the balance sheet at fair value in accordance with ASC 820-10. Certain reclassifications have been made to the prior year financial statements in order for them to be in conformity with the current year presentation.
Recent accounting pronouncement	Recent accounting pronouncement In May 2014, the FASB issued ASU No. 2014-09 " Revenue from Contracts with Customers " (Topic 606). Topic 606 supersedes the revenue recognition requirements in Topic 605, “Revenue Recognition”, including most industry-specific revenue recognition guidance throughout the Industry Topics of the Codification. In addition, the amendments create a new Subtopic 340-40, “Other Assets and Deferred Costs—Contracts with Customers”. In summary, the core principle of Topic 606 is that an entity recognizes revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. For a public entity, the amendments in this Update are effective for annual reporting periods beginning after December 15, 2017, including interim periods within that reporting period. Early application is not permitted. Management is currently evaluating the impact this guidance will have on Company’s financial position and statement of operations. In June 2014, the FASB issued ASU No. 2014-12, "Compensation - Stock Compensation (Topic 718)," which makes amendments to the codification topic 718, "Accounting for Share-Based Payments.” when the terms of an award provide that a performance target could be achieved after the requisite service period. The new guidance becomes effective for annual reporting periods beginning after December 15, 2015, early adoption is permitted. Management is currently evaluating the impact this guidance will have on our financial position and results of operations. In August 2014, the FASB issued Accounting Standards Update ("ASU") No. 2014-15, “Presentation of Financial Statements – Going Concern”, Subtopic 205-40, “Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern.” The amendments in this ASU apply to all entities and require management to assess an entity’s ability to continue as a going concern by incorporating and expanding upon certain principles that are currently in U.S. auditing standards. Specifically, the amendments (1) provide a definition of the term substantial doubt, (2) require an evaluation every reporting period including interim periods, (3) provide principles for considering the mitigating effect of management’s plans, (4) require certain disclosures when substantial doubt is alleviated as a result of consideration of management’s plans, (5) require an express statement and other disclosures when substantial doubt is not alleviated, and (6) require an assessment for a period of one year after the date that the financial statements are issued (or available to be issued). The amendments in this Update are effective for the annual period ending after December 15, 2016, and for annual periods and interim periods thereafter. Early application is permitted. Management is currently evaluating the impact this guidance will have on Company’s financial position and results of operations.

6. Income Taxes (Tables)

6. Income Taxes (Tables)	9 Months Ended
	Jun. 30, 2016
Income Tax Disclosure [Abstract]
Schedule of deferred tax assets	September 30, 2015 September 30, 2014 Net loss carryforward $ 840,000 $ 455,000 Valuation allowance (840,000 ) (455,000 ) Total deferred tax assets $ – $ –

1. Organization (Details Narrat

1. Organization (Details Narrative) - USD ($)	3 Months Ended		9 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015	Sep. 30, 2015
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Net loss	$ (32,978)	$ (272,804)	$ (139,971)	$ (795,791)
Accumulated deficit	$ (2,520,303)		$ (2,520,303)		$ (2,380,332)

2. Oil and Gas Properties (Deta

2. Oil and Gas Properties (Details Narrative) - USD ($)	3 Months Ended		9 Months Ended		12 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015	Sep. 30, 2015	Sep. 30, 2014
Loss on sale of working interest	$ 0	$ (150,050)	$ 0	$ (150,050)
Oil and gas properties, successful effort	267,433		267,433		$ 217,433
Impairment loss on investment	0	$ 0	$ 0	$ 317,876
Eastland County Field [Member]
Working interest percentage in oil and gas property			31.25%
Oil and gas properties, successful effort	$ 20,449		$ 20,449
Port Hudson [Member]
Working interest percentage in oil and gas property			4.0506%
Net revenue interest percentage in oil and gas property			3.1595%
Loss on sale of working interest						$ (19,983)
West Cam [Member]
Working interest percentage in oil and gas property			10.0167%
Net revenue interest percentage in oil and gas property			7.212%
Sunshine Prospect [Member]
Working interest percentage in oil and gas property			15.00%
Net revenue interest percentage in oil and gas property			14.25%
Birnie Field [Member]
Working interest percentage in oil and gas property			10.00%
Net revenue interest percentage in oil and gas property			7.50%
Stansell Field [Member]
Working interest percentage in oil and gas property			1.00%
Wolfcamp Field [Member]
Working interest percentage in oil and gas property			50.00%
Net revenue interest percentage in oil and gas property			40.00%
Port Hudson and West Cam 225 [Member]
Loss on sale of working interest					(150,050)
Oil and gas properties, successful effort					(653,376)
Oil and gas property held for sale					335,500
Impairment loss on investment					317,876
Kiowa Oil Company [Member]
Costs incurred to acquire oil and gas property					$ 5,000
Working interest percentage in oil and gas property					100.00%
Royalty interest given as consideration					15.00%
TW Lee Field [Member]
Costs incurred to acquire oil and gas property			$ 25,000
Working interest percentage in oil and gas property			25.00%
Net revenue interest percentage in oil and gas property			18.75%
TA Greer Lease [Member]
Costs incurred to acquire oil and gas property			$ 10,000
Working interest percentage in oil and gas property			25.00%
Net revenue interest percentage in oil and gas property			19.50%
Stock issued for acquisition, shares			60,000

3. Notes Payable - Related Pa17

3. Notes Payable - Related Parties (Details Narrative) - Gary Bryant [Member]	12 Months Ended
	Sep. 30, 2015USD ($)
Conversion of notes into stock, amount converted	$ 325,146
Conversion of notes into stock, interest amount converted	$ 130,000

4. Shareholder Advances (Detail

4. Shareholder Advances (Details Narrative) - USD ($)	9 Months Ended	12 Months Ended
	Jun. 30, 2016	Sep. 30, 2015
Due to shareholder	$ 0	$ 45,000
Receivable from shareholder	3,558	0
Shareholder [Member]
Proceeds from shareholder		$ 15,000
Repayments to shareholder	$ 6,558
Interest rate	25.99%
Stock issued on conversion of note, shares issued	450,000
Stock issued on conversion of note, value	$ 45,000
Stock retired, shares	30,000
Shareholder [Member]
Due to shareholder	$ 45,000
Receivable from shareholder	$ 3,558

5. Shareholders' Equity (Detail

5. Shareholders' Equity (Details Narrative) - USD ($)	9 Months Ended		12 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Sep. 30, 2015	Sep. 30, 2014
Proceeds from sale of stock	$ 72,750	$ 0
Shares based compensation	26,357	$ 19,491
Unrecognized compensation expense	$ 26,313
Weighted average exercise price of options	$ .44
Options outstanding	947,223
Options exercisable	947,223
Average remaining life options	1 year 9 months 22 days
2011 Stock Incentive Plan [Member]
Common stock reserved under plan	3,000,000
Director Brogan [Member]
Options granted			200,000
Options vested			66,667
Fair value of options vested			$ 99,712
Shares based compensation			26,357
Consultants [Member]
Options granted				1,500,000
Options vested				200,000
Options expired				1,300,000
Fair value of options vested				$ 116,137
Officers [Member]
Options granted				200,000
Options vested				200,000
Fair value of options vested				$ 116,119
TW Lee Field [Member]
Costs incurred to acquire oil and gas property	$ 25,000
Working interest percentage in oil and gas property	25.00%
Net revenue interest percentage in oil and gas property	18.75%
Accredited Investor [Member]
Proceeds from subscriptions			$ 25,000
Stock issued for cash, shares issued	191,000		100,000
Proceeds from sale of stock	$ 47,750
Gary Bryant [Member]
Debt converted, stock issued	1,003,508
Debt converted, amount converted	$ 455,146
Shareholder [Member]
Debt converted, stock issued	450,000
Debt converted, amount converted	$ 45,000
Stock retired, shares	30,000

6. Income Taxes (Details)

6. Income Taxes (Details) - USD ($)	Sep. 30, 2015	Sep. 30, 2014
Income Tax Disclosure [Abstract]
Net loss carryforward	$ 840,000	$ 455,000
Valuation allowance	(840,000)	(455,000)
Total deferred tax assets	$ 0	$ 0

6. Income Taxes (Details Narrat

6. Income Taxes (Details Narrative) - USD ($)	12 Months Ended
	Sep. 30, 2015	Sep. 30, 2014
Income Tax Disclosure [Abstract]
Federal net operating loss carryforward	$ 2,400,000	$ 1,300,000
Operating loss carryforward expiration date	Dec. 31, 2032