Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended | ||
Jul. 31, 2014 | Oct. 27, 2014 | Jan. 31, 2014 | |
Document and Entity Information [Abstract] | ' | ' | ' |
Entity Registrant Name | 'FREEDOM PETROLEUM INC. | ' | ' |
Entity Central Index Key | '0001557798 | ' | ' |
Trading Symbol | 'fpet | ' | ' |
Entity Current Reporting Status | 'Yes | ' | ' |
Entity Voluntary Filers | 'No | ' | ' |
Current Fiscal Year End Date | '--07-31 | ' | ' |
Entity Filer Category | 'Smaller Reporting Company | ' | ' |
Entity Well-known Seasoned Issuer | 'No | ' | ' |
Entity Common Stock, Shares Outstanding | ' | 52,828,852 | ' |
Entity Public Float | ' | ' | $3,779,985 |
Document Type | '10-K | ' | ' |
Document Period End Date | 31-Jul-14 | ' | ' |
Amendment Flag | 'false | ' | ' |
Document Fiscal Period Focus | 'FY | ' | ' |
Document Fiscal Year Focus | '2014 | ' | ' |
BALANCE_SHEETS
BALANCE SHEETS (USD $) | Jul. 31, 2014 | Jul. 31, 2013 |
Current Assets | ' | ' |
Cash and cash equivalents | $76,108 | $1,674 |
Deposits | 1,318 | ' |
Total Current Assets | 77,426 | 1,674 |
Total Assets | 77,426 | 1,674 |
Current Liabilities | ' | ' |
Accounts payable and accrued expenses | 6,300 | 6,400 |
Due to related parties | 54,274 | 5,824 |
Total Current Liabilities | 60,574 | 12,224 |
Stockholders' Equity (Deficit) | ' | ' |
Preferred stock, $0.0001 par value; 20,000,000 shares authorized, 0 shares issued and outstanding | ' | ' |
Common stock, $0.0001 par value, 100,000,000 shares authorized; 52,828,852 and 52,200,000 shares issued and outstanding, respectively | 5,283 | 5,220 |
Additional paid-in capital | 295,515 | 62,740 |
Common stock subscription | 150,000 | ' |
Accumulated deficit | -433,946 | -78,510 |
Total Stockholders' Equity (Deficit) | 16,852 | -10,550 |
Total Liabilities and Stockholders' Equity (Deficit) | $77,426 | $1,674 |
BALANCE_SHEETS_Parentheticals
BALANCE SHEETS (Parentheticals) (USD $) | Jul. 31, 2014 | Jul. 31, 2013 |
Statement Of Financial Position [Abstract] | ' | ' |
Preferred stock, par value (in dollars per share) | $0.00 | $0.00 |
Preferred stock, shares authorized | 20,000,000 | 20,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value (in dollars per share) | $0.00 | $0.00 |
Common stock, shares authorized | 100,000,000 | 100,000,000 |
Common stock, shares issued | 52,828,852 | 52,200,000 |
Common stock, shares outstanding | 52,828,852 | 52,200,000 |
STATEMENTS_OF_OPERATIONS
STATEMENTS OF OPERATIONS (USD $) | 12 Months Ended | |
Jul. 31, 2014 | Jul. 31, 2013 | |
Income Statement [Abstract] | ' | ' |
GROSS REVENUES | ' | ' |
OPERATING EXPENSES | ' | ' |
General and administrative | 42,542 | 26,956 |
Professional fees | 69,610 | 18,750 |
Consulting fees - related party | 50,000 | 10,000 |
Impairment | ' | 15,000 |
Stock-based compensation | 175,000 | ' |
Website design | 19,184 | ' |
TOTAL OPERATING EXPENSES | 356,336 | 70,706 |
LOSS FROM OPERATIONS | -356,336 | -70,706 |
OTHER INCOME | 900 | 600 |
LOSS BEFORE PROVISION FOR INCOME TAXES | -355,436 | -70,106 |
PROVISION FOR INCOME TAXES | ' | ' |
NET LOSS | ($355,436) | ($70,106) |
NET LOSS PER SHARE: BASIC AND DILUTED (in dollars per share) | ($0.01) | $0 |
WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING: BASIC AND DILUTED (in shares) | 52,473,839 | 41,821,644 |
STATEMENT_OF_STOCKHOLDERS_EQUI
STATEMENT OF STOCKHOLDERS' EQUITY (DEFICIT) (USD $) | Common Stock | Additional Paid in Capital | Common stock Subscription | Accumulated Deficit | Total |
Balance at Jul. 31, 2012 | $2,700 | $24,460 | ' | ($8,404) | $18,756 |
Balance (in shares) at Jul. 31, 2012 | 27,000,000 | ' | ' | ' | ' |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ' | ' | ' | ' | ' |
Stock issued for cash | 2,520 | 35,280 | ' | ' | 37,800 |
Stock issued for cash (in shares) | 25,200,000 | ' | ' | ' | ' |
Forgiveness of related party payable | ' | 3,000 | ' | ' | 3,000 |
Net loss | ' | ' | ' | -70,106 | -70,106 |
Balance at Jul. 31, 2013 | 5,220 | 62,740 | ' | -78,510 | -10,550 |
Balance (in shares) at Jul. 31, 2013 | 52,200,000 | ' | ' | ' | 52,200,000 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ' | ' | ' | ' | ' |
Forgiveness of related party payable | ' | 12,740 | ' | ' | 12,740 |
Stock issued for debt | 13 | 45,085 | ' | ' | 45,098 |
Stock issued for debt (in shares) | 128,852 | ' | ' | ' | ' |
Stock issued for compensation | 50 | 174,950 | ' | ' | 175,000 |
Stock issued for compensation (in shares) | 500,000 | ' | ' | ' | ' |
Common stock subscription received | ' | ' | 150,000 | ' | 150,000 |
Net loss | ' | ' | ' | -355,436 | -355,436 |
Balance at Jul. 31, 2014 | $5,283 | $295,515 | $150,000 | ($433,946) | $16,852 |
Balance (in shares) at Jul. 31, 2014 | 52,828,852 | ' | ' | ' | 52,828,852 |
STATEMENT_OF_CASH_FLOWS
STATEMENT OF CASH FLOWS (USD $) | 12 Months Ended | |
Jul. 31, 2014 | Jul. 31, 2013 | |
CASH FLOWS FROM OPERATING ACTIVITIES | ' | ' |
Net loss for the year | ($355,436) | ($70,106) |
Adjustments To Reconcile Net Loss To Net Cash Provided by Operating Activities | ' | ' |
Impairment loss | ' | 15,000 |
Stock-based compensation | 175,000 | ' |
Change in operating assets & liabilities | ' | ' |
Deposits | -1,318 | ' |
Accounts payable and accrued expenses | -100 | -13,250 |
Accrued compensation | 30,000 | 8,000 |
Net Cash Used in Operating Activities | -151,854 | -60,356 |
CASH FLOWS FROM INVESTING ACTIVITIES | ' | ' |
Acquisition of unproved oil and gas properties | ' | ' |
Net Cash Used in Investing Activities | ' | ' |
CASH FLOWS FROM FINANCING ACTIVITIES | ' | ' |
Advance received from related parties | 114,471 | ' |
Repayment to related parties | -38,183 | ' |
Proceeds from issuance of common stock | ' | 37,800 |
Common stock subscription received | 150,000 | ' |
Net Cash Provided by Financing Activities | 226,288 | 37,800 |
Net Increase (Decrease) in Cash and Cash Equivalents | 74,434 | -22,556 |
Cash and cash equivalents, beginning of the year | 1,674 | 24,230 |
Cash and cash equivalents, end of the year | 76,108 | 1,674 |
SUPPLEMENTAL CASH FLOW INFORMATION: | ' | ' |
Cash paid for income taxes | ' | ' |
Cash paid for interest | ' | ' |
SUPPLEMENTAL NON-CASH INVESTING AND FINANCING INFORMATION: | ' | ' |
Forgiveness of related party payable recorded as contributed capital | 12,740 | ' |
Common stock issued for related party debt | $45,098 | ' |
GENERAL_ORGANIZATION_AND_BUSIN
GENERAL ORGANIZATION AND BUSINESS | 12 Months Ended |
Jul. 31, 2014 | |
General Organization and Business [Abstract] | ' |
GENERAL ORGANIZATION AND BUSINESS | ' |
NOTE 1 – GENERAL ORGANIZATION AND BUSINESS | |
Freedom Petroleum, Inc. (“the Company”) was incorporated under the laws of the State of Nevada, U.S. on June 13, 2012. The Company intends to engage in the exploration and development of oil and gas properties. The Company’s fiscal year end is July 31. |
SUMMARY_OF_SIGNIFICANT_ACCOUNT
SUMMARY OF SIGNIFICANT ACCOUNTING PRACTICES | 12 Months Ended |
Jul. 31, 2014 | |
Accounting Policies [Abstract] | ' |
SUMMARY OF SIGNIFICANT ACCOUNTING PRACTICES | ' |
NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING PRACTICES | |
Basis of Presentation | |
The Financial Statements and related disclosures have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”). The Financial Statements have been prepared using the accrual basis of accounting in accordance with Generally Accepted Accounting Principles (“GAAP”) of the United States and are presented in U.S. dollars. | |
Use of Estimates | |
The preparation of financial statements in conformity with generally accepted accounting principles of the United States 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 year. The more significant areas requiring the use of estimates include asset impairment, stock-based compensation, and future income tax amounts. Management bases its estimates on historical experience and on other assumptions considered to be reasonable under the circumstances. However, actual results may differ from the estimates. | |
Cash and Cash Equivalents | |
Cash and cash equivalents include cash in hand and cash in time deposits, certificates of deposit and all highly liquid debt instruments with original maturities of three months or less. The Company had $76,108 and $1,674 of cash at July 31, 2014 and July 31, 2013, respectively. | |
Fair Value of Financial Instruments | |
The Company's financial instruments consist of cash, accounts payable and accrued expenses, and amounts due to related parties. The carrying amounts of these financial instruments approximate fair value due either to length of maturity or interest rates that approximate prevailing rates unless otherwise disclosed in these financial statements. | |
Revenue Recognition | |
The Company has yet to realize revenues from operations. The Company will recognize revenue when delivery of goods or completion of services has occurred provided there is persuasive evidence of an agreement, acceptance has been approved by its customers, the fee is fixed or determinable based on the completion of stated terms and conditions, and collection of any related receivable is reasonably assured. | |
Oil and Gas Properties | |
The Company uses the full cost method of accounting for oil and natural gas properties. Under this method, all acquisition, exploration and development costs, including certain payroll, asset retirement costs, other internal costs, and interest incurred for the purpose of finding oil and natural gas reserves, are capitalized. Internal costs that are capitalized are directly attributable to acquisition, exploration and development activities and do not include costs related to production, general corporate overhead or similar activities. Costs associated with production and general corporate activities are expensed in the period incurred. Proceeds from the sale of oil and natural gas properties are applied to reduce the capitalized costs of oil and natural gas properties unless the sale would significantly alter the relationship between capitalized costs and proved reserves, in which case a gain or loss is recognized. | |
Capitalized costs associated with impaired properties and capitalized costs related to properties having proved reserves, plus the estimated future development costs, and asset retirement costs under ASC 410 “Asset Retirement and Environmental Obligations”, are amortized using the unit-of-production method based on proved reserves. Capitalized costs of oil and natural gas properties, net of accumulated amortization and deferred income taxes, are limited to the total of estimated future net cash flows from proved oil and natural gas reserves, discounted at ten percent, plus the cost of unevaluated properties. | |
There are many factors, including global events that may influence the production, processing, marketing and price of oil and natural gas. A reduction in the valuation of oil and natural gas properties resulting from declining prices or production could adversely impact depletion rates and capitalized cost limitations. Capitalized costs associated with properties that have not been evaluated through drilling or seismic analysis are excluded from the unit-of-production amortization. Exclusions are adjusted annually based on drilling results and interpretative analysis. | |
Sales of oil and natural gas properties are accounted for as adjustments to the net full cost pool with no gain or loss recognized, unless the adjustment would significantly alter the relationship between capitalized costs and proved reserves. If it is determined that the relationship is significantly altered, the corresponding gain or loss will be recognized in the statements of operations. | |
Costs of oil and gas properties are amortized using the units of production method. | |
Ceiling test: Under the full cost method of accounting, the net book value of oil and gas properties, less related deferred income taxes, may not exceed a calculated “ceiling”. The ceiling limitation is the estimated after-tax future net cash flows from proved oil and gas reserves, discounted at 10 percent per annum and adjusted for cash flow hedges. Estimated future net cash flows exclude future cash outflows associated with settling accrued asset retirement obligations. | |
The Company has adopted U.S. Securities and Exchange Commission (“SEC”) Release 33-8995 and the amendments to ASC 932, “Extractive Industries – Oil and Gas” (the Modernization Rules). Under the Modernization Rules, estimated future net cash flows are calculated using end-of-period costs and an unweighted arithmetic average of commodity prices in effect on the first day of each of the previous 12 months, held flat for the life of production, except where prices are defined by contractual arrangements. | |
Any excess of the net book value of proved oil and gas properties, less related deferred income taxes, over the ceiling is charged to expense and reflected as additional depletion, depreciation and amortization expense (“DD&A”) in the accompanying statement of operations. Such limitations are tested quarterly. As of July 31, 2014, the Company had no capitalized oil and gas property costs. | |
Impairment of Oil and Gas Properties | |
Unproved oil and gas properties are assessed at each reporting period for impairment of value, and a loss is recognized at the time of the impairment by providing an impairment allowance. An asset would be impaired if the undiscounted cash flows were less than its carrying value. Impairments are measured by the amount by which the carrying value exceeds its fair value. Because the Company uses the successful efforts method, the Company assesses its properties individually for impairment, instead of on an aggregate pool of costs. Impairment of unproved properties is based on the facts and circumstances surrounding each lease and is recognized based on management’s evaluation. Management’s evaluation follows a two-step process where (1) recoverability of the carrying value of the asset is reviewed to determine if there is sufficient value recoverable to support the capitalized value at the report date; and, (2) if assets fail the recoverability test, impairment testing is conducted, including the evaluation of various criteria such as: prior history of successful operations; production currently in place and/or future projected cash flows (if any); reserve reports or evaluations from which management can prepare future cash flow analyses; the Company’s ability to monetize the asset(s) under evaluation; and Management’s intent regarding future development. | |
Stock-Based Compensation | |
The Company accounts for employee stock-based compensation in accordance with the guidance of FASB ASC Topic 718, Compensation – Stock Compensation which requires all share-based payments to employees, including grants of employee stock options, to be recognized in the financial statements based on their fair values. The fair value of the equity instrument is charged directly to compensation expense and credited to additional paid-in capital over the period during which services are rendered. Stock-based expenses totaled $175,000 and $0, for the years ended July 31, 2014 and 2013. | |
The Company follows ASC Topic 505-50, formerly EITF 96-18, “Accounting for Equity Instruments that are Issued to Other than Employees for Acquiring, or in Conjunction with Selling Goods and Services,” for stock options and warrants issued to consultants and other non-employees. In accordance with ASC Topic 505-50, these stock options and warrants issued as compensation for services provided to the Company are accounted for based upon the fair value of the services provided or the estimated fair market value of the option or warrant, whichever can be more clearly determined. There has been no stock-based compensation issued to non-employees. | |
Income Taxes | |
The Company provides for income taxes using an asset and liability approach. Deferred tax assets and liabilities are recorded based on the differences between the financial statement and tax bases of assets and liabilities and the tax rates in effect currently. Deferred tax assets are reduced by a valuation allowance if, based on the weight of available evidence, it is more likely than not that some or all of the deferred tax assets will not be realized. No provision for income taxes is included in the statement due to its immaterial amount, net of the allowance account, based on the likelihood of the Company to utilize the loss carry-forward. | |
Basic and Diluted Earnings (Loss) Per Share | |
Basic income (loss) per share is calculated by dividing the Company’s net loss applicable to common shareholders by the weighted average number of common shares during the period. Diluted earnings per share is calculated by dividing the Company’s net income available to common shareholders by the diluted weighted average number of shares outstanding during the year. The diluted weighted average number of shares outstanding is the basic weighted number of shares adjusted for any potentially dilutive debt or equity. There are no such common stock equivalents outstanding as of July 31, 2014. | |
Recent Accounting Pronouncements | |
In June 2014, the Financial Accounting Standards Board issued Accounting Standards Update No. 2014-10, which eliminated certain financial reporting requirements of companies previously identified as “Development Stage Entities” (Topic 915). The amendments in this ASU simplify accounting guidance by removing all incremental financial reporting requirements for development stage entities. The amendments also reduce data maintenance and, for those entities subject to audit, audit costs by eliminating the requirement for development stage entities to present inception-to-date information in the statements of income, cash flows, and shareholder equity. Early application of each of the amendments is permitted for any annual reporting period or interim period for which the entity’s financial statements have not yet been issued (public business entities) or made available for issuance (other entities). Upon adoption, entities will no longer present or disclose any information required by Topic 915. The Company has adopted this standard. | |
In May 2014, FASB issued Accounting Standards Update (ASU) No. 2014-09, Revenue from Contracts with Customers. The revenue recognition standard affects all entities that have contracts with customers, except for certain items. The new revenue recognition standard eliminates the transaction-and industry-specific revenue recognition guidance under current GAAP and replaces it with a principle-based approach for determining revenue recognition. Public entities are required to adopt the revenue recognition standard for reporting periods beginning after December 15, 2016, and interim and annual reporting periods thereafter. Early adoption is not permitted for public entities. The Company has reviewed the applicable ASU and has not, at the current time, quantified the effects of this pronouncement, however it believes that there will be no material effect on the consolidated financial statements. | |
In June 2014, FASB issued Accounting Standards Update (ASU) No. 2014-12 Compensation — Stock Compensation (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. A performance target in a share-based payment that affects vesting and that could be achieved after the requisite service period should be accounted for as a performance condition under Accounting Standards Codification (ASC) 718, Compensation — Stock Compensation. As a result, the target is not reflected in the estimation of the award’s grant date fair value. Compensation cost would be recognized over the required service period, if it is probable that the performance condition will be achieved. The guidance is effective for annual periods beginning after 15 December 2015 and interim periods within those annual periods. Early adoption is permitted. Management has reviewed the ASU and believes that they currently account for these awards in a manner consistent with the new guidance, therefore there is no anticipation of any effect to the consolidated financial statements. |
DUE_TO_RELATED_PARTIES
DUE TO RELATED PARTIES | 12 Months Ended |
Jul. 31, 2014 | |
Related Party Transactions [Abstract] | ' |
DUE TO RELATED PARTIES | ' |
NOTE 3 – DUE TO RELATED PARTIES | |
During the three months ended January 31, 2014, the current sole director and officer, who is also a majority shareholder, advanced the Company $45,098 for operating expenses, which was exchanged in full for 128,852 common shares on January 31, 2014. During the three months ended April 30, 2014, $38,183 was advanced by the director to the Company for operating expenses and was repaid on June 12, 2014. During the three months ended July 31, 2014, another $24,274 was advanced by the director to the Company for operating expenses and was included in amount due to related parties as at July 31, 2014. The loan is unsecured, non-interest bearing, and has no specific terms of repayment. | |
Pursuant to an employee agreement effective on March 1, 2014, the Company was obligated to pay $10,000 per month to the current sole officer and director for management service. During the year ended July 31, 2014, $20,000 was paid to this officer and $30,000 was included in amount due to related parties as at July 31, 2014. On August 1, 2014, another $20,000 was paid to the officer. | |
As of July 31, 2013, the Company was obligated to former officers and a director, for non-interest bearing demand loans with balances of $13,824. During the year ended July 31, 2014, $1,084 was repaid in cash and the remaining $12,740, was forgiven in full and recorded as additional paid in capital, when control of the Company changed on January 23, 2014. |
OIL_AND_NATURAL_GAS_PROPERTIES
OIL AND NATURAL GAS PROPERTIES | 12 Months Ended |
Jul. 31, 2014 | |
Oil and Gas Property [Abstract] | ' |
OIL AND NATURAL GAS PROPERTIES | ' |
NOTE 4 – OIL AND NATURAL GAS PROPERTIES | |
On July 23, 2012, the Company purchased a lease from an unrelated third party consisting of approximately 624 net acres in Lewis and Clark County, Montana for a total purchase price of $15,000. In addition, annual rental payments of $937 are due to the State of Montana starting June 1, 2014 through June 5, 2022. The Company has not incurred any exploration or development costs in connection with this lease and, therefore, recorded an impairment loss in the amount of $15,000 as of July 31, 2013. Minimum annual rental payments total $8,434 for the nine-year term. The lease can be extended after June 5, 2022 so long as oil and gas in paying quantities are produced from the land. However, management decided not to pursue the lease as they looked for larger properties, and the lease was forfeited in June 2014. | |
On April 28, 2014, we entered into a Purchase and Sale Agreement with Lornex Financial Ltd., whereby we agreed to purchase a 100% working interest in certain oil and gas leases (the "Leases"), which together comprise a parcel of 11,680 acres near the town of Grimshaw in Northern Alberta, Canada from Lornex. In exchange for the Leases, we were to pay an aggregate of US$400,000 incrementally, at an agreed upon payment schedule, following the completion of certain administrative benchmarks as set forth in the Agreement, such as the requirement to provide certain financial materials regarding the Leases to us; such benchmarks were also therefore a condition to closing. Also under the Agreement, we were to pay a 10% landowner’s royalty to Lornex who were to deliver a ninety percent (90%) net revenue interest in the Leases to us; we would have maintained a 100% working interest in the Leases. The closing of the transaction, and transfer of title from Lornex to us, was to occur within 30 days after payment of the full Purchase Price; provided however, that it was not to take place later than 300 days following the signing of the Agreement. | |
Until the Purchase Price was paid in full, Lornex was to pay all rental fees associated with the Leases. Freedom maintained the right to surrender in whole or part any of the Leases by non-payment of delay rentals, provided that Freedom gave Lornex at least 60 days prior written notice. If Lornex did not agree to the surrender, Freedom had to assign all interest conveyed pursuant to the Agreement on the Lease(s) to Lornex absolutely free and clear of any liens, overriding royalty or other encumbrances of any kind whatsoever other than those in existence at the time of the Agreement or placed thereon pursuant thereto. Since entering into the Leases, the parties decided that many of the related leases expired too soon to begin meaningful exploration and therefore Freedom did not proceed with the transactions originally contemplated with Lornex. |
CAPITAL_STOCK
CAPITAL STOCK | 12 Months Ended |
Jul. 31, 2014 | |
Equity [Abstract] | ' |
CAPITAL STOCK | ' |
NOTE 5 – CAPITAL STOCK | |
The authorized capital of the Company is 100,000,000 common shares with a par value of $0.0001 and 20,000,000 preferred shares with a par value of $0.0001. | |
During the year ended July 31, 2013, the Company issued 25,200,000 shares of common stock at a price of approximately $0.0015 per share for total cash proceeds of $37,800. | |
During the year ended July 31, 2013, a related party paid Company expenses in the amount of $3,000 which were later forgiven and recorded as additional paid in capital. | |
On January 31, 2014, the Company issued to the sole officer and director, who is also a majority stockholder, 128,852 shares of common stock at a price of approximately $0.35 per share for debt cancellation of $45,098. | |
On March 1, 2014, the Company issued to the sole officer and director, who is also a majority stockholder, 500,000 shares of common stock at a price of $0.35 per share for compensation of $175,000, pursuant to an employee agreement. | |
During the year ended July 31, 2014, related parties forgave loans of $12,740 which was recorded as additional paid in capital. | |
There were 52,828,852 and 52,200,000 shares of common stock issued and outstanding as of July 31, 2014 and July 31, 2013, respectively. There were no shares of preferred stock issued and outstanding as of July 31, 2014 and July 31, 2013. |
INCOME_TAXES
INCOME TAXES | 12 Months Ended | ||||||||
Jul. 31, 2014 | |||||||||
Income Tax Disclosure [Abstract] | ' | ||||||||
INCOME TAXES | ' | ||||||||
NOTE 6 – INCOME TAXES | |||||||||
For the year ended July 31, 2014, the Company has incurred a net loss and, therefore, has no tax liability. The net deferred tax asset generated by the loss carry-forward has been fully reserved. The cumulative net operating loss carry-forward was approximately $433,946 at July 31, 2014 and will expire beginning in the year 2032. | |||||||||
The provision for Federal income tax consists of the following for the years ended July 31, 2014 and 2013: | |||||||||
2014 | 2013 | ||||||||
Federal income tax benefit attributable to: | |||||||||
Current operations | $ | 120,848 | $ | 23,836 | |||||
Less: valuation allowance | (120,848 | ) | (23,836 | ) | |||||
Net provision for Federal income taxes | $ | - | $ | - | |||||
The cumulative tax effect at the expected rate of 34% of significant items comprising our net deferred tax amount is as follows as of July 31, 2014 and July 31, 2013: | |||||||||
31-Jul-14 | 31-Jul-13 | ||||||||
Deferred tax asset attributable to: | |||||||||
Net operating loss carryover | $ | 147,541 | $ | 26,693 | |||||
Less: valuation allowance | (147,541 | ) | (26,693 | ) | |||||
Net deferred tax asset | $ | - | $ | - | |||||
Due to the change in ownership provisions of the Tax Reform Act of 1986, net operating loss carry-forwards of $433,946 for Federal income tax reporting purposes are subject to annual limitations. Should a change in ownership occur, net operating loss carry-forwards may be limited as to use in future years. |
ENVIRONMENTAL_AND_OTHER_CONTIN
ENVIRONMENTAL AND OTHER CONTINGENCIES | 12 Months Ended |
Jul. 31, 2014 | |
Environmental Remediation Obligations [Abstract] | ' |
ENVIRONMENTAL AND OTHER CONTINGENCIES | ' |
NOTE 7 – ENVIRONMENTAL AND OTHER CONTINGENCIES | |
The Company’s operations and earnings may be affected by various forms of governmental action in the United States. Examples of such governmental action include, but are by no means limited to: tax increases and retroactive tax claims; royalty and revenue sharing increases; import and export controls; price controls; currency controls; allocation of supplies of crude oil and petroleum products and other goods; expropriation of property; restrictions and preferences affecting the issuance of oil and gas or mineral leases; restrictions on drilling and/or production; laws and regulations intended for the promotion of safety and the protection and/or remediation of the environment; governmental support for other forms of energy; and laws and regulations affecting the Company’s relationships with employees, suppliers, customers, stockholders and others. Because governmental actions are often motivated by political considerations and may be taken without full consideration of their consequences, and may be taken in response to actions of other governments, it is not practical to attempt to predict the likelihood of such actions, the form the actions may take or the effect such actions may have on the Company. | |
Companies in the oil and gas industry are subject to numerous federal, state, and local regulations dealing with the environment. Violation of federal or state environmental laws, regulations and permits can result in the imposition of significant civil and criminal penalties, injunctions and construction bans or delays. A discharge of hazardous substances into the environment could, to the extent such event is not insured, subject the Company to substantial expense, including both the cost to comply with applicable regulations and claims by neighboring landowners and other third parties for any personal injury and property damage that might result. | |
The Company currently leases a property at which hazardous substances could have been or are being handled. In addition, many of these properties have been operated by third parties whose treatment and disposal or release of hydrocarbons or other wastes were not under the Company’s control. Under existing laws, the Company could be required to remove or remediate previously disposed wastes (including wastes disposed of or released by prior owners or operators), to clean up contaminated property (including contaminated groundwater) or to perform remedial plugging operations to prevent future contamination. The Company is investigating the extent of any such liability and the availability of applicable defenses and believes the costs related to these sites will not have a material adverse effect on the Company’s net income, financial condition or liquidity in a future period. | |
The Company’s liability for remedial obligations includes certain amounts that are based on anticipated regulatory approval for proposed remediation of former refinery waste sites. Although regulatory authorities may require more costly alternatives than the proposed processes, the cost of such potential alternative processes is not expected to be a material amount. Certain environmental expenditures are likely to be recovered by the Company from other sources, primarily environmental funds maintained by certain states. Since no assurance can be given that future recoveries from other sources will occur, the Company has not recorded a benefit for likely recoveries. | |
There is the possibility that environmental expenditures could be required at currently unidentified sites, and new or revised regulations could require additional expenditures at known sites. However, based on information currently available to the Company, the amount of future remediation costs incurred at known or currently unidentified sites is not expected to have a material adverse effect on the Company’s future net income, cash flows or liquidity. The Company has recorded $0 for its estimated asset retirement obligations as of July 31, 2014. |
COMMITMENTS_AND_CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended |
Jul. 31, 2014 | |
Commitments and Contingencies Disclosure [Abstract] | ' |
COMMITMENTS AND CONTINGENCIES | ' |
NOTE 8 – COMMITMENTS AND CONTINGENCIES | |
The Company entered into an informal agreement to rent office space on a month-to-month basis with an unrelated party for $300 per month to begin on January 1, 2013. The Company began sharing the office space with other tenants on June 1, 2013, also on a month-to-month basis. These tenants were subleasing the space from the Company for $300 per month and for the three months ended October 31, 2013, the Company recognized $900 of other income related to the three months of office sharing. During the three months ended January 31, 2014, the agreement was cancelled and no additional revenue was recognized. | |
On December 20, 2013, the Company entered into an Office Services Agreement with Abby Office Centers for renting office space, furniture and equipment from January 1, 2014 to December 31, 2014 for a monthly price of $1,251. |
GOING_CONCERN
GOING CONCERN | 12 Months Ended |
Jul. 31, 2014 | |
Going Concern [Abstract] | ' |
GOING CONCERN | ' |
NOTE 9 – GOING CONCERN | |
The financial statements have been prepared on a going concern basis which assumes the Company will be able to realize its assets and discharge its liabilities in the normal course of business for the foreseeable future. The Company has a working capital of $16,852 and has incurred losses since inception resulting in an accumulated deficit of $433,946 as of July 31, 2014. Further losses are anticipated in the development of the business, raising substantial doubt about the Company’s ability to continue as a going concern. | |
The ability to continue as a going concern is dependent upon the Company generating profitable operations in the future and/or to obtain the necessary financing to meet its obligations and repay its liabilities arising from normal business operations when they come due. Management intends to finance operating costs over the next twelve months with loans from directors and/or private placement of common stock. |
SUBSEQUENT_EVENTS
SUBSEQUENT EVENTS | 12 Months Ended |
Jul. 31, 2014 | |
Subsequent Events [Abstract] | ' |
SUBSEQUENT EVENTS | ' |
NOTE 10 – SUBSEQUENT EVENTS | |
In 2014 September, the Company issued 468,750 shares of common stock at a price of approximately $0.32 per share for total cash proceeds of $150,000, which was received prior to the year ended of July 31, 2014 and included in common stock subscriptions as of July 31, 2014. | |
On October 10, 2014, Freedom Petroleum, Inc. (the “Company”) entered into a Purchase and Sale Agreement with Shalex Corporation (“Shalex”) (the “Agreement”) whereby the Company purchased a one hundred percent (100%) undivided working interest and shall received 87% Net Revenue Interest (NRI) in certain oil and gas interests (Crown Land) and properties arising from the oil and gas leases (the “Leases”), which together comprise a parcel of 2,304 hectares in the Bentley area of Alberta, Canada (the “Property”) and (ii) the Pre-Existing Well (the "Well"). In exchange for the Leases, the Company will pay an aggregate of four hundred thousand dollars (US$400,000) (the “Purchase Price”) incrementally, at an agreed upon payment schedule, following the completion of certain administrative benchmarks as set forth in the Agreement, such as the requirement to provide certain financial materials regarding the Leases to the Company; such benchmarks are also therefore a condition to closing the transaction. The closing of the transaction, and transfer of title from Shalex to the Company, shall occur within 30 days after payment of the full Purchase Price; provided however, that it shall not take place later than 135 days following the signing of the Agreement. The Purchase Price shall be reduced to $360,000 if a continuation application for one of the Leases on the Property is not approved. | |
The parties agreed to pay all maintenance costs, as such term is defined in the Agreement, associated with the leases for the fiscal years ending December 31, 2014 and 2015, on a pro-rata basis based upon the date the Agreement was signed and such costs were previously paid by Shalex. The Company maintains the right to surrender in whole or part any of the Leases by non-payment of delay rentals, provided that the Company gives Shalex at least 60 days prior written notice. If Shalex does not agree to the surrender, the Company must assign all interest conveyed pursuant to the Agreement on the Lease(s) to Shalex absolutely free and clear of any liens, overriding royalty or other encumbrances of any kind whatsoever other than those in existence at the time of the Agreement or placed thereon pursuant thereto. | |
The Agreement contains representations, warranties and covenants by the Company and Shalex that are customary for transactions of this type such as (i) in the case of the Company: organization, good standing and qualification to do business; capitalization; authorization and enforceability of the transaction and transaction documents; consents being obtained or not required to consummate the transaction; and compliance with securities laws; and (ii) in the case of Shalex: ownership of the property and lack of asserted defaults. | |
The Agreement may be terminated, (i) by the Company if they identify an issue, prior to the final payment of the Purchase Price, that would prevent them from being able to use the Property in a manner consistent with the spirit and intended purpose of this Agreement; (ii) by Shalex if the Company does not make the payments by the contractually agreed to deadline; and (iii) upon mutual consent of the parties. | |
On October 20, 2014, the Company entered into a Share Purchase Agreement with one non-US investor, pursuant to Regulation S, as promulgated under the Securities Act of 1933, as amended. Pursuant to the purchase agreement, the investor purchased 312,500 shares of the Company's common stock for $100,000 (the "Purchase Price"), at a value of $0.32 per share. | |
Management has evaluated subsequent events through the date these financial statements were available to be issued. Based on our evaluation no additional events have occurred that require disclosure. |
SUMMARY_OF_SIGNIFICANT_ACCOUNT1
SUMMARY OF SIGNIFICANT ACCOUNTING PRACTICES (Policies) | 12 Months Ended |
Jul. 31, 2014 | |
Accounting Policies [Abstract] | ' |
Basis of Presentation | ' |
Basis of Presentation | |
The Financial Statements and related disclosures have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”). The Financial Statements have been prepared using the accrual basis of accounting in accordance with Generally Accepted Accounting Principles (“GAAP”) of the United States and are presented in U.S. dollars. | |
Use of Estimates | ' |
Use of Estimates | |
The preparation of financial statements in conformity with generally accepted accounting principles of the United States 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 year. The more significant areas requiring the use of estimates include asset impairment, stock-based compensation, and future income tax amounts. Management bases its estimates on historical experience and on other assumptions considered to be reasonable under the circumstances. However, actual results may differ from the estimates. | |
Cash and Cash Equivalents | ' |
Cash and Cash Equivalents | |
Cash and cash equivalents include cash in hand and cash in time deposits, certificates of deposit and all highly liquid debt instruments with original maturities of three months or less. The Company had $76,108 and $1,674 of cash at July 31, 2014 and July 31, 2013, respectively. | |
Fair Value of Financial Instruments | ' |
Fair Value of Financial Instruments | |
The Company's financial instruments consist of cash, accounts payable and accrued expenses, and amounts due to related parties. The carrying amounts of these financial instruments approximate fair value due either to length of maturity or interest rates that approximate prevailing rates unless otherwise disclosed in these financial statements. | |
Revenue Recognition | ' |
Revenue Recognition | |
The Company has yet to realize revenues from operations. The Company will recognize revenue when delivery of goods or completion of services has occurred provided there is persuasive evidence of an agreement, acceptance has been approved by its customers, the fee is fixed or determinable based on the completion of stated terms and conditions, and collection of any related receivable is reasonably assured. | |
Oil and Gas Properties | ' |
Oil and Gas Properties | |
The Company uses the full cost method of accounting for oil and natural gas properties. Under this method, all acquisition, exploration and development costs, including certain payroll, asset retirement costs, other internal costs, and interest incurred for the purpose of finding oil and natural gas reserves, are capitalized. Internal costs that are capitalized are directly attributable to acquisition, exploration and development activities and do not include costs related to production, general corporate overhead or similar activities. Costs associated with production and general corporate activities are expensed in the period incurred. Proceeds from the sale of oil and natural gas properties are applied to reduce the capitalized costs of oil and natural gas properties unless the sale would significantly alter the relationship between capitalized costs and proved reserves, in which case a gain or loss is recognized. | |
Capitalized costs associated with impaired properties and capitalized costs related to properties having proved reserves, plus the estimated future development costs, and asset retirement costs under ASC 410 “Asset Retirement and Environmental Obligations”, are amortized using the unit-of-production method based on proved reserves. Capitalized costs of oil and natural gas properties, net of accumulated amortization and deferred income taxes, are limited to the total of estimated future net cash flows from proved oil and natural gas reserves, discounted at ten percent, plus the cost of unevaluated properties. | |
There are many factors, including global events that may influence the production, processing, marketing and price of oil and natural gas. A reduction in the valuation of oil and natural gas properties resulting from declining prices or production could adversely impact depletion rates and capitalized cost limitations. Capitalized costs associated with properties that have not been evaluated through drilling or seismic analysis are excluded from the unit-of-production amortization. Exclusions are adjusted annually based on drilling results and interpretative analysis. | |
Sales of oil and natural gas properties are accounted for as adjustments to the net full cost pool with no gain or loss recognized, unless the adjustment would significantly alter the relationship between capitalized costs and proved reserves. If it is determined that the relationship is significantly altered, the corresponding gain or loss will be recognized in the statements of operations. | |
Costs of oil and gas properties are amortized using the units of production method. | |
Ceiling test: Under the full cost method of accounting, the net book value of oil and gas properties, less related deferred income taxes, may not exceed a calculated “ceiling”. The ceiling limitation is the estimated after-tax future net cash flows from proved oil and gas reserves, discounted at 10 percent per annum and adjusted for cash flow hedges. Estimated future net cash flows exclude future cash outflows associated with settling accrued asset retirement obligations. | |
The Company has adopted U.S. Securities and Exchange Commission (“SEC”) Release 33-8995 and the amendments to ASC 932, “Extractive Industries – Oil and Gas” (the Modernization Rules). Under the Modernization Rules, estimated future net cash flows are calculated using end-of-period costs and an unweighted arithmetic average of commodity prices in effect on the first day of each of the previous 12 months, held flat for the life of production, except where prices are defined by contractual arrangements. | |
Any excess of the net book value of proved oil and gas properties, less related deferred income taxes, over the ceiling is charged to expense and reflected as additional depletion, depreciation and amortization expense (“DD&A”) in the accompanying statement of operations. Such limitations are tested quarterly. As of July 31, 2014, the Company had no capitalized oil and gas property costs. | |
Impairment of Oil and Gas Properties | ' |
Impairment of Oil and Gas Properties | |
Unproved oil and gas properties are assessed at each reporting period for impairment of value, and a loss is recognized at the time of the impairment by providing an impairment allowance. An asset would be impaired if the undiscounted cash flows were less than its carrying value. Impairments are measured by the amount by which the carrying value exceeds its fair value. Because the Company uses the successful efforts method, the Company assesses its properties individually for impairment, instead of on an aggregate pool of costs. Impairment of unproved properties is based on the facts and circumstances surrounding each lease and is recognized based on management’s evaluation. Management’s evaluation follows a two-step process where (1) recoverability of the carrying value of the asset is reviewed to determine if there is sufficient value recoverable to support the capitalized value at the report date; and, (2) if assets fail the recoverability test, impairment testing is conducted, including the evaluation of various criteria such as: prior history of successful operations; production currently in place and/or future projected cash flows (if any); reserve reports or evaluations from which management can prepare future cash flow analyses; the Company’s ability to monetize the asset(s) under evaluation; and Management’s intent regarding future development. | |
Stock-Based Compensation | ' |
Stock-Based Compensation | |
The Company accounts for employee stock-based compensation in accordance with the guidance of FASB ASC Topic 718, Compensation – Stock Compensation which requires all share-based payments to employees, including grants of employee stock options, to be recognized in the financial statements based on their fair values. The fair value of the equity instrument is charged directly to compensation expense and credited to additional paid-in capital over the period during which services are rendered. Stock-based expenses totaled $175,000 and $0, for the years ended July 31, 2014 and 2013. | |
The Company follows ASC Topic 505-50, formerly EITF 96-18, “Accounting for Equity Instruments that are Issued to Other than Employees for Acquiring, or in Conjunction with Selling Goods and Services,” for stock options and warrants issued to consultants and other non-employees. In accordance with ASC Topic 505-50, these stock options and warrants issued as compensation for services provided to the Company are accounted for based upon the fair value of the services provided or the estimated fair market value of the option or warrant, whichever can be more clearly determined. There has been no stock-based compensation issued to non-employees. | |
Income Taxes | ' |
Income Taxes | |
The Company provides for income taxes using an asset and liability approach. Deferred tax assets and liabilities are recorded based on the differences between the financial statement and tax bases of assets and liabilities and the tax rates in effect currently. Deferred tax assets are reduced by a valuation allowance if, based on the weight of available evidence, it is more likely than not that some or all of the deferred tax assets will not be realized. No provision for income taxes is included in the statement due to its immaterial amount, net of the allowance account, based on the likelihood of the Company to utilize the loss carry-forward. | |
Basic and Diluted Earnings (Loss) Per Share | ' |
Basic and Diluted Earnings (Loss) Per Share | |
Basic income (loss) per share is calculated by dividing the Company’s net loss applicable to common shareholders by the weighted average number of common shares during the period. Diluted earnings per share is calculated by dividing the Company’s net income available to common shareholders by the diluted weighted average number of shares outstanding during the year. The diluted weighted average number of shares outstanding is the basic weighted number of shares adjusted for any potentially dilutive debt or equity. There are no such common stock equivalents outstanding as of July 31, 2014. | |
Recent Accounting Pronouncements | ' |
Recent Accounting Pronouncements | |
In June 2014, the Financial Accounting Standards Board issued Accounting Standards Update No. 2014-10, which eliminated certain financial reporting requirements of companies previously identified as “Development Stage Entities” (Topic 915). The amendments in this ASU simplify accounting guidance by removing all incremental financial reporting requirements for development stage entities. The amendments also reduce data maintenance and, for those entities subject to audit, audit costs by eliminating the requirement for development stage entities to present inception-to-date information in the statements of income, cash flows, and shareholder equity. Early application of each of the amendments is permitted for any annual reporting period or interim period for which the entity’s financial statements have not yet been issued (public business entities) or made available for issuance (other entities). Upon adoption, entities will no longer present or disclose any information required by Topic 915. The Company has adopted this standard. | |
In May 2014, FASB issued Accounting Standards Update (ASU) No. 2014-09, Revenue from Contracts with Customers. The revenue recognition standard affects all entities that have contracts with customers, except for certain items. The new revenue recognition standard eliminates the transaction-and industry-specific revenue recognition guidance under current GAAP and replaces it with a principle-based approach for determining revenue recognition. Public entities are required to adopt the revenue recognition standard for reporting periods beginning after December 15, 2016, and interim and annual reporting periods thereafter. Early adoption is not permitted for public entities. The Company has reviewed the applicable ASU and has not, at the current time, quantified the effects of this pronouncement, however it believes that there will be no material effect on the consolidated financial statements. | |
In June 2014, FASB issued Accounting Standards Update (ASU) No. 2014-12 Compensation — Stock Compensation (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. A performance target in a share-based payment that affects vesting and that could be achieved after the requisite service period should be accounted for as a performance condition under Accounting Standards Codification (ASC) 718, Compensation — Stock Compensation. As a result, the target is not reflected in the estimation of the award’s grant date fair value. Compensation cost would be recognized over the required service period, if it is probable that the performance condition will be achieved. The guidance is effective for annual periods beginning after 15 December 2015 and interim periods within those annual periods. Early adoption is permitted. Management has reviewed the ASU and believes that they currently account for these awards in a manner consistent with the new guidance, therefore there is no anticipation of any effect to the consolidated financial statements. |
INCOME_TAXES_Tables
INCOME TAXES (Tables) | 12 Months Ended | ||||||||
Jul. 31, 2014 | |||||||||
Income Tax Disclosure [Abstract] | ' | ||||||||
Schedule of the provision for federal income tax | ' | ||||||||
2014 | 2013 | ||||||||
Federal income tax benefit attributable to: | |||||||||
Current operations | $ | 120,848 | $ | 23,836 | |||||
Less: valuation allowance | (120,848 | ) | (23,836 | ) | |||||
Net provision for Federal income taxes | $ | - | $ | - | |||||
Schedule of deferred tax assets | ' | ||||||||
31-Jul-14 | 31-Jul-13 | ||||||||
Deferred tax asset attributable to: | |||||||||
Net operating loss carryover | $ | 147,541 | $ | 26,693 | |||||
Less: valuation allowance | (147,541 | ) | (26,693 | ) | |||||
Net deferred tax asset | $ | - | $ | - |
SUMMARY_OF_SIGNIFICANT_ACCOUNT2
SUMMARY OF SIGNIFICANT ACCOUNTING PRACTICES (Detail Textuals) (USD $) | 12 Months Ended | ||
Jul. 31, 2014 | Jul. 31, 2013 | Jul. 31, 2012 | |
Accounting Policies [Abstract] | ' | ' | ' |
Cash and cash equivalents | $76,108 | $1,674 | $24,230 |
Stock-based expenses | $175,000 | $0 | ' |
DUE_TO_RELATED_PARTIES_Detail_
DUE TO RELATED PARTIES (Detail Textuals) (USD $) | 12 Months Ended | 3 Months Ended | 1 Months Ended | 3 Months Ended | 5 Months Ended | |||||||
Jul. 31, 2014 | Jul. 31, 2013 | Jul. 31, 2014 | Jul. 31, 2013 | Jul. 31, 2014 | Apr. 30, 2014 | Jan. 31, 2014 | Jan. 31, 2014 | Jan. 31, 2014 | Jul. 31, 2014 | Jul. 31, 2014 | Aug. 01, 2014 | |
Former officers and director | Former officers and director | Majority shareholder | Majority shareholder | Majority shareholder | Majority shareholder | Majority shareholder | Employee agreement | Employee agreement | Employee agreement | |||
Common Stock | Common Stock | Majority shareholder | Majority shareholder | |||||||||
Subsequent Event | ||||||||||||
Related Party Transaction [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Advance from related party for operating expenses | ' | ' | ' | ' | $24,274 | $38,183 | $45,098 | ' | ' | ' | ' | ' |
Payment to related party for management services per month | 50,000 | 10,000 | ' | ' | ' | ' | ' | ' | ' | ' | 10,000 | ' |
Due to related parties | 54,274 | 5,824 | ' | 13,824 | ' | ' | ' | ' | ' | ' | 20,000 | 20,000 |
Amount included in due to related parties | ' | ' | ' | ' | ' | ' | ' | ' | ' | 30,000 | ' | ' |
Stock issued for debt (in shares) | ' | ' | ' | ' | ' | ' | ' | 128,852 | 128,852 | ' | ' | ' |
Repayment of related party debt in cash | 38,183 | ' | 1,084 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Forgiveness of related party payable recorded as contributed capital | $12,740 | ' | $12,740 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
OIL_AND_NATURAL_GAS_PROPERTIES1
OIL AND NATURAL GAS PROPERTIES (Detail Textuals) (USD $) | 1 Months Ended | 12 Months Ended | |
Jul. 23, 2012 | Jul. 31, 2014 | Jul. 31, 2013 | |
acre | |||
Leases [Abstract] | ' | ' | ' |
Area of lease (in acres) | 624 | ' | ' |
Purchase price of lease | $15,000 | ' | ' |
Annual rental payments from June 1, 2014 to June 5, 2015 | 937 | ' | ' |
Annual rental payments from June 6, 2015 to June 5, 2016 | 937 | ' | ' |
Annual rental payments from June 6, 2016 to June 5, 2017 | 937 | ' | ' |
Annual rental payments from June 6, 2017 to June 5, 2018 | 937 | ' | ' |
Annual rental payments from June 6, 2018 to June 5, 2019 | 937 | ' | ' |
Annual rental payments from June 6, 2019 to June 5, 2020 | 937 | ' | ' |
Annual rental payments from June 6, 2020 to June 5, 2021 | 937 | ' | ' |
Annual rental payments from June 6, 2021 to June 5, 2022 | 937 | ' | ' |
Impairment loss | ' | ' | 15,000 |
Minimum annual rental payments for nine-year term | ' | $8,434 | ' |
Term for minimum annual rental payments (in years) | ' | '9 years | ' |
OIL_AND_NATURAL_GAS_PROPERTIES2
OIL AND NATURAL GAS PROPERTIES (Detail Textuals 1) (USD $) | 1 Months Ended | 12 Months Ended | 1 Months Ended |
Jul. 23, 2012 | Jul. 31, 2014 | Apr. 28, 2014 | |
acre | Purchase And Sale Agreement | ||
Lornex Financial Ltd | |||
acre | |||
Agreement [Line Items] | ' | ' | ' |
Percentage of working interest | ' | ' | 100.00% |
Area of lease (in acres) | 624 | ' | 11,680 |
Purchase price of lease | $15,000 | ' | $400,000 |
Percentage of landowner's royalty | ' | ' | 10.00% |
Percentage of net revenue interest | ' | ' | 90.00% |
Agreement description of leases | ' | ' | 'The closing of the transaction, and transfer of title from Lornex to the Company, shall occur within 30 days after payment of the full Purchase Price; provided however, that it shall not take place later than 300 days following the signing of the Agreement. |
CAPITAL_STOCK_Detail_Textuals
CAPITAL STOCK (Detail Textuals) (USD $) | 12 Months Ended | 1 Months Ended | 3 Months Ended | |||
Jul. 31, 2014 | Jul. 31, 2013 | Jul. 31, 2013 | Mar. 01, 2014 | Jan. 31, 2014 | Jan. 31, 2014 | |
Common Stock | Common Stock | Common Stock | Common Stock | |||
Majority shareholder | Majority shareholder | Majority shareholder | ||||
Class of Stock [Line Items] | ' | ' | ' | ' | ' | ' |
Common stock, shares authorized | 100,000,000 | 100,000,000 | ' | ' | ' | ' |
Common stock, par value (in dollars per share) | $0.00 | $0.00 | ' | ' | ' | ' |
Preferred stock, shares authorized | 20,000,000 | 20,000,000 | ' | ' | ' | ' |
Preferred stock, par value (in dollars per share) | $0.00 | $0.00 | ' | ' | ' | ' |
Number of shares issued pursuant to purchase agreement | ' | ' | 25,200,000 | ' | ' | ' |
Purchase price of common stock issued pursuant to purchase agreement (in dollars per share) | ' | ' | $0.00 | ' | ' | ' |
Proceeds from the sale of common stock | ' | $37,800 | ' | ' | ' | ' |
Forgiveness of related party payable | 12,740 | 3,000 | ' | ' | ' | ' |
Common stock issued for cancellation of debt (in shares) | ' | ' | ' | ' | 128,852 | 128,852 |
Common stock issued for cancellation of debt (in dollars per share) | ' | ' | ' | $0.35 | $0.35 | ' |
Common stock issued for cancellation of debt | 45,098 | ' | ' | ' | 45,098 | ' |
Stock issued for compensation (in shares) | ' | ' | ' | 500,000 | ' | ' |
Stock issued for compensation | $175,000 | ' | ' | $175,000 | ' | ' |
Common stock, shares issued | 52,828,852 | 52,200,000 | ' | ' | ' | ' |
Common stock, shares outstanding | 52,828,852 | 52,200,000 | ' | ' | ' | ' |
INCOME_TAXES_Federal_income_ta
INCOME TAXES - Federal income tax benefit (Details) (USD $) | 12 Months Ended | |
Jul. 31, 2014 | Jul. 31, 2013 | |
Federal income tax benefit attributable to: | ' | ' |
Current operations | $120,848 | $23,836 |
Less: valuation allowance | -120,848 | -23,836 |
Net provision for Federal income taxes | ' | ' |
INCOME_TAXES_Deferred_tax_asse
INCOME TAXES - Deferred tax asset (Details 1) (USD $) | Jul. 31, 2014 | Jul. 31, 2013 |
Deferred tax asset attributable to: | ' | ' |
Net operating loss carryover | $147,541 | $26,693 |
Less: valuation allowance | -147,541 | -26,693 |
Net deferred tax asset | ' | ' |
INCOME_TAXES_Detail_Textuals
INCOME TAXES (Detail Textuals) (USD $) | 12 Months Ended | |
Jul. 31, 2014 | Jul. 31, 2013 | |
Income Tax Disclosure [Abstract] | ' | ' |
Cumulative net operating loss carry-forward | $433,946 | ' |
Expected tax rate | 34.00% | 34.00% |
ENVIRONMENTAL_AND_OTHER_CONTIN1
ENVIRONMENTAL AND OTHER CONTINGENCIES (Detail Textuals) (USD $) | Jul. 31, 2014 |
Environmental Remediation Obligations [Abstract] | ' |
Estimated asset retirement obligation | $0 |
COMMITMENTS_AND_CONTINGENCIES_
COMMITMENTS AND CONTINGENCIES (Detail Textuals) (USD $) | 19 Months Ended | 3 Months Ended | 5 Months Ended | 1 Months Ended |
Jul. 31, 2014 | Oct. 31, 2013 | Oct. 31, 2013 | Dec. 20, 2013 | |
Unrelated party | Other tenants | Other tenants | Abby Office Centers | |
Commitments And Contingencies [Line Items] | ' | ' | ' | ' |
Monthly lease rent | $300 | ' | ' | $1,251 |
Subleasing rent monthly income | ' | ' | 300 | ' |
Other income related to office sharing | ' | $900 | ' | ' |
GOING_CONCERN_Detail_Textuals
GOING CONCERN (Detail Textuals) (USD $) | Jul. 31, 2014 | Jul. 31, 2013 |
Going Concern [Abstract] | ' | ' |
Working capital | $16,852 | ' |
Accumulated deficit | ($433,946) | ($78,510) |
SUBSEQUENT_EVENTS_Detail_Textu
SUBSEQUENT EVENTS (Detail Textuals) (USD $) | 1 Months Ended | 12 Months Ended | 1 Months Ended | 3 Months Ended | |||
Jul. 23, 2012 | Jul. 31, 2014 | Jul. 31, 2013 | Jul. 31, 2013 | Sep. 30, 2014 | Oct. 10, 2014 | Oct. 20, 2014 | |
acre | Common Stock | Subsequent Event | Subsequent Event | Subsequent Event | |||
Common Stock | Purchase And Sale Agreement | Share Purchase Agreement | |||||
Shalex Corporation | Common Stock | ||||||
ha | Non-US investor | ||||||
Subsequent Event [Line Items] | ' | ' | ' | ' | ' | ' | ' |
Number of shares issued pursuant to purchase agreement | ' | ' | ' | 25,200,000 | 468,750 | ' | 312,500 |
Purchase price of common stock issued pursuant to purchase agreement (in dollars per share) | ' | ' | ' | $0.00 | $0.32 | ' | $0.32 |
Value of common stock issued pursuant to purchase agreement | ' | ' | $37,800 | ' | $150,000 | ' | $100,000 |
Percentage of working interest | ' | ' | ' | ' | ' | 100.00% | ' |
Percentage of net revenue interest | ' | ' | ' | ' | ' | 87.00% | ' |
Oil and gas leases (in hectares) | 624 | ' | ' | ' | ' | 2,304 | ' |
Purchase price of lease | 15,000 | ' | ' | ' | ' | 400,000 | ' |
Agreement description of leases | ' | ' | ' | ' | ' | ' | ' |
The closing of the transaction, and transfer of title from Shalex to the Company, shall occur within 30 days after payment of the full Purchase Price; provided however, that it shall not take place later than 135 days following the signing of the Agreement. | |||||||
Reduction in purchase price of lease | ' | ' | ' | ' | ' | $360,000 | ' |