Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Feb. 29, 2020 | Jun. 12, 2020 | Aug. 30, 2019 | |
Document And Entity Information | |||
Entity Registrant Name | Norris Industries, Inc. | ||
Entity Central Index Key | 0001603793 | ||
Document Type | 10-K | ||
Document Period End Date | Feb. 29, 2020 | ||
Amendment Flag | false | ||
Current Fiscal Year End Date | --02-29 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Non-accelerated Filer | ||
Entity Small Business Flag | true | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 0 | ||
Entity Common Stock, Shares Outstanding | 90,883,013 | ||
Document Fiscal Period Focus | FY | ||
Document Fiscal Year Focus | 2020 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) | Feb. 29, 2020 | Feb. 28, 2019 |
Current Assets | ||
Cash | $ 158,081 | $ 125,755 |
Account receivable - oil & gas | 38,549 | 71,132 |
Total Current Assets | 196,630 | 196,887 |
Oil and Gas Property - Full Cost Method | ||
Properties subject to amortization | 2,999,461 | 2,716,102 |
Less: accumulated depletion and impairment | (2,341,261) | (259,292) |
Total Oil and Gas Property, net | 658,200 | 2,456,810 |
Equipment, net | 7,746 | |
Total Assets | 854,830 | 2,661,443 |
Current Liabilities | ||
Accounts payable and accrued expenses | 94,305 | 32,549 |
Accounts payable and accrued expenses - related party | 142,484 | 69,189 |
Total Current Liabilities | 236,789 | 101,738 |
Convertible notes payable - related party | 2,700,000 | 1,850,000 |
Asset retirement obligations | 102,162 | 92,850 |
Total Liabilities | 3,038,951 | 2,044,588 |
Stockholders' Equity (Deficit) | ||
Preferred stock, $0.001 par value per share 20,000,000 shares authorized: | ||
Common stock, $0.001 par value per share, 150,000,000 shares authorized; 90,883,013 and 89,443,013 shares issued and outstanding | 90,883 | 89,443 |
Additional paid-in capital | 6,286,399 | 6,183,483 |
Subscription receivable | (7,200) | |
Accumulated deficit | (8,555,203) | (5,657,071) |
Total Stockholder's Equity (Deficit) | (2,184,121) | 616,855 |
Total Liabilities and Stockholders' Equity (Deficit) | 854,830 | 2,661,443 |
Series A Convertible Preferred Stock [Member] | ||
Stockholders' Equity (Deficit) | ||
Preferred stock, $0.001 par value per share 20,000,000 shares authorized: | $ 1,000 | $ 1,000 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) | Feb. 29, 2020 | Feb. 28, 2019 |
Preferred stock, par value | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized | 20,000,000 | 20,000,000 |
Common stock, par value | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 150,000,000 | 150,000,000 |
Common stock, shares issued | 90,883,013 | 89,443,013 |
Common stock, shares outstanding | 90,883,013 | 89,443,013 |
Series A Convertible Preferred Stock [Member] | ||
Preferred stock, par value | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized | 1,000,000 | 1,000,000 |
Preferred stock, shares issued | 1,000,000 | 1,000,000 |
Preferred stock, shares outstanding | 1,000,000 | 1,000,000 |
Preferred stock, liquidation preference | $ 2,250,000 | $ 2,250,000 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) | 12 Months Ended | |
Feb. 29, 2020 | Feb. 28, 2019 | |
Revenues | ||
Total Revenues | $ 573,016 | $ 499,074 |
Operating Expenses | ||
Lease operating expenses | 731,760 | 279,815 |
General and administrative expenses | 577,066 | 878,051 |
Impairment expense | 1,319,444 | |
Depletion, depreciation and accretion | 771,837 | 210,625 |
Total Operating Expenses | 3,400,107 | 1,368,491 |
Loss from Operations | (2,827,091) | (869,417) |
Other Income (Expenses) | ||
Gain on sale of equipment | 2,254 | |
Interest expense | (73,295) | (52,268) |
Total Other Expense | (71,041) | (52,268) |
Net Loss | $ (2,898,132) | $ (921,685) |
Net loss per common share - basic and diluted | $ (0.03) | $ (0.01) |
Weighted average number of common shares outstanding - basic and diluted | 89,738,095 | 89,443,013 |
Oil and Gas Sales [Member] | ||
Revenues | ||
Total Revenues | $ 573,016 | $ 499,074 |
Consolidated Statement of Chang
Consolidated Statement of Changes in Stockholders' Equity (Deficit) - USD ($) | Series A Convertible Preferred Stock [Member] | Common Stock [Member] | Additional Paid-in Capital [Member] | Subscription Receivable [Member] | Accumulated Deficit [Member] | Total |
Balance at Feb. 28, 2018 | $ 1,000 | $ 89,443 | $ 5,967,483 | $ (4,735,386) | $ 1,322,540 | |
Balance, shares at Feb. 28, 2018 | 1,000,000 | 89,443,013 | ||||
Stock-based compensation | 216,000 | 216,000 | ||||
Net loss | (921,685) | (921,685) | ||||
Balance at Feb. 28, 2019 | $ 1,000 | $ 89,443 | 6,183,483 | (5,657,071) | 616,855 | |
Balance, shares at Feb. 28, 2019 | 1,000,000 | 89,443,013 | ||||
Stock-based compensation | 89,956 | 89,956 | ||||
Issuance of common stock for exercise of stock options | $ 1,440 | 12,960 | (7,200) | 7,200 | ||
Issuance of common stock for exercise of stock options, shares | 1,440,000 | |||||
Net loss | (2,898,132) | (2,898,132) | ||||
Balance at Feb. 29, 2020 | $ 1,000 | $ 90,883 | $ 6,286,399 | $ (7,200) | $ (8,555,203) | $ (2,184,121) |
Balance, shares at Feb. 29, 2020 | 1,000,000 | 90,883,013 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) | 12 Months Ended | |
Feb. 29, 2020 | Feb. 28, 2019 | |
Cash Flow from Operating Activities | ||
Net loss | $ (2,898,132) | $ (921,685) |
Adjustments to reconcile net loss to net cash from operating activities: | ||
Depletion, depreciation and accretion | 771,837 | 210,625 |
Impairment expense | 1,319,444 | |
Gain on sale of equipment | (2,254) | |
Stock-based compensation | 89,956 | 216,000 |
Changes in operating assets and liabilities: | ||
Accounts receivable - oil & gas | 32,583 | 37,512 |
Accounts payable and accrued expenses | 61,756 | (10,471) |
Accounts payable and accrued expenses - related party | 73,295 | 48,777 |
Net Cash Used in Operating Activities | (551,515) | (419,242) |
Cash Flow from Investing Activities | ||
Purchase of oil and gas properties | (283,359) | |
Proceeds from sale of equipment | 10,000 | |
Net Cash used in Investing Activities | (273,359) | |
Cash Flow from Financing Activities | ||
Proceeds from exercise of stock options | 7,200 | |
Proceeds from related party loans | 850,000 | 300,000 |
Net Cash provided by Financing Activities | 857,200 | 300,000 |
Net Increase (Decrease) in Cash | 32,326 | (119,242) |
Cash - beginning of year | 125,755 | 244,997 |
Cash - end of year | 158,081 | 125,755 |
Supplemental Cash Flow Information | ||
Interest paid | ||
Income tax paid |
Organization, Nature of Operati
Organization, Nature of Operations and Summary of Significant Accounting Policies | 12 Months Ended |
Feb. 29, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization, Nature of Operations and Summary of Significant Accounting Policies | Note 1 – Organization, Nature of Operations and summary of Significant Accounting Policies Norris Industries, Inc. (“NRIS” or the “Company”) (formerly International Western Petroleum, Inc.), was incorporated on February 19, 2014 as a Nevada corporation. The Company was formed to conduct operations in the oil and gas industry. The Company’s principal operating properties are in the Ellenberger formation in Coleman County, and in Jack County and Palo-Pinto County Texas. The Company’s production operations are all located in the State of Texas. On April 25, 2018, the Company incorporated a Texas registered subsidiary, Norris Petroleum, Inc., as its own operating entity. Basis of Presentation The accompanying financial statements of the Company have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) and the rules of the Securities and Exchange Commission (“SEC”). The financial statements are presented on a consolidated basis and include all of the accounts of Torchlight Energy Resources Inc. and its wholly owned subsidiary, Norris Petroleum, Inc. All significant intercompany balances and transactions have been eliminated. Liquidity and Capital Considerations The accompanying consolidated financial statements have been prepared assuming that the Company will continue as a going concern, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business for the twelve-month period following the issuance date of these consolidated financial statements. The Company’s business and operations have been adversely affected by and are expected to continue to be adversely affected by the recent COVID-19 outbreak and may be adversely affected in the future by other similar outbreaks. As a result of the recent COVID-19 outbreak, including voluntary and mandatory quarantines, travel restrictions and other restrictions, the Company’s operations, and those of its subcontractors, customers and suppliers, have and are anticipated to continue to experience delays or disruptions and temporary suspensions of operations. In addition, the Company’s financial condition and results of operations have been and are likely to continue to be adversely affected by the COVID-19 outbreak. The timeline and potential magnitude of the COVID-19 outbreak is currently unknown. The continuation or amplification of this virus could continue to more broadly affect the United States and global economy, including our business and operations, and the demand, for oil and gas. The Company has incurred continuing losses since 2016, including a loss of $2,898,132 for the fiscal year ended February 29, 2020. During the fiscal year ended February 29, 2020, the Company accessed $850,000 in funding, reduced its general and administrative costs, increased revenues, and incurred cash losses of approximately $552,000 from its operating activities. Further, as of February 29, 2020, the Company had availability of $600,000 on its existing credit line with JBB Partners, Inc. (“JBB”), an entity that is owned and controlled by Mr. Patrick Norris, the Company’s Chief Executive Officer and principal shareholder, a cash balance of approximately $158,000 and net working capital deficit of approximately $40,000. The Company’s principal capital and exploration expenditures during next fiscal year are expected to relate to selected well workovers on its Jack and Palo Pinto County acreages. The Company believes that it has the ability to fund its costs for such expenditures from cash on-hand and in-place financing. The Company believes that it has sufficient working capital and in-place financing to fund its expected operational losses for twelve months following the issuance of these financial statements. In the event that the Company required additional capital to fund higher operational losses, or oil and gas property leases purchases for fiscal year ending February 29, 2020, the Company expects to seek additional capital from one or more sources via sales of restricted private placement of sales of equity and debt securities from those other than JBB. However, there can be no assurance that the Company would be able to secure the necessary capital to fund its costs on acceptable terms, or at all. If, for any reason, the Company is unable to fund its operations it would have to undertake other aggressive cost cutting measures and then be subject to possible loss of some of its rights and interests in prospects to curtail operations and forced to forego opportunities or in worst case, cease operations. Use of Estimates The preparation of consolidated financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the consolidated financial statements and the reported amounts of revenues and expense during the period. Actual results could differ from those estimates. Risks and Uncertainties The Company’s operations are subject to significant risks and uncertainties, including financial, operational, technological, and other risks associated with operating an emerging business, including the potential risk of business failure. Cash and Cash Equivalents The Company considers all highly liquid investments purchased with an original maturity of the year or less to be cash equivalents. The Company has not experienced any losses on its deposits of cash and cash equivalents . Oil and Gas Properties, Full Cost Method The Company follows the full cost method of accounting for its oil gas properties, whereby all costs incurred in connection with the acquisition, exploration for and development of petroleum and natural gas reserves are capitalized. Such costs include lease acquisition, geological and geophysical activities, rentals on non-producing leases, drilling, completing and equipping of oil wells and administrative costs directly attributable to those activities and asset retirement costs. Disposition of oil properties are accounted for as a reduction of capitalized costs, with no gain or loss recognized unless such adjustment would significantly alter the relationship between capital costs and proved reserves of oil and gas, in which case the gain or loss is recognized in the consolidated statement of operations. Depletion and depreciation of proved oil properties are calculated on the units-of-production method based upon estimates of proved reserves. Such calculations include the estimated future costs to develop proved reserves. Costs of unproved properties are not included in the costs subject to depletion. These costs are assessed periodically for impairment. At the end of each quarter, the unamortized cost of oil and gas properties, net of related deferred income taxes, is limited to the sum of the estimated future after-tax net revenues from proved properties, after giving effect to cash flow hedge positions, discounted at 10%, and the lower of cost or fair value of unproved properties, adjusted for related income tax effects. Costs in excess of the present value of estimated future net revenues are charged to impairment expense. This limitation is known as the “ceiling test,” and is based on SEC rules for the full cost oil and gas accounting method. The Company capitalizes pre-acquisition costs directly identifiable with specific properties when the acquisition of such properties is probable. Capitalized pre-acquisition costs are presented in the consolidated balance sheet. Equipment Equipment is stated at cost less accumulated depreciation. Maintenance and repairs are charged to expense as incurred. Renewals and betterments which extend the life or improve existing equipment are capitalized. Upon disposition or retirement of equipment, the cost and related accumulated depreciation are removed and any resulting gain or loss is reflected in operations. Depreciation is provided using the straight-line method over the estimated useful lives of the assets, which are 3 to 10 years. Income Taxes Income taxes are accounted for in accordance with the provisions of ASC Topic No. 740. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. Valuation allowances are established, when necessary, to reduce deferred tax assets to the amounts expected to be realized. Revenue Recognition ASU 2014-09, “Revenue from Contracts with Customers (Topic 606)” Revenue Recognition (Topic 605) The Company’s revenue is comprised entirely of revenue from exploration and production activities. The Company’s oil is sold primarily to wholesalers and others that sell product to end use customers. Natural gas is sold primarily to interstate and intrastate natural-gas pipelines, various end-users, local distribution companies, and natural-gas marketers. NGLs are sold primarily to various end-users. Payment is generally received from the customer in the month following delivery. Contracts with customers have varying terms, including spot sales or month-to-month contracts, or contracts with a finite term, where the production from a well or group of wells is sold to one or more customers. The Company recognizes sales revenues for oil, natural gas, and NGLs based on the amount of each product sold to a customer when control transfers to the customer. Generally, control transfers at the time of delivery to the customer at a pipeline interconnect, the tailgate of a processing facility, or as a tanker lifting is completed. Revenue is measured based on the contract price, which may be index-based or fixed, and may include adjustments for market differentials and downstream costs incurred by the customer, including gathering, transportation, and fuel costs. Revenues are recognized for the sale of the Company’s net share of production volumes. Sales on behalf of other working interest owners and royalty interest owners are not recognized as revenues. The Company does not hedge nor forward sell any of its current production via derivative financial contracts. Share-based Compensation The Company estimates the fair value of each share-based compensation award at the grant date by using the Black-Scholes option pricing model. The fair value determined represents the cost for the award and is recognized over the vesting period during which an employee is required to provide service in exchange for the award. Share-based compensation expense is recognized based on awards ultimately expected to vest. Excess tax benefits, if any, are recognized as an addition to paid-in capital. Net Loss per Common Share Basic net loss per common share amounts are computed by dividing the net loss available to the Company’s shareholders by the weighted average number of common shares outstanding over the reporting period. In periods in which the Company reports a net loss, dilutive securities are excluded from the calculation of diluted earnings per share as the effect would be anti-dilutive. The following table summarizes the common stock equivalents excluded from the calculation of diluted net loss per as the inclusion of these shares would be anti-dilutive for the years ended February 29, 2020 and February 28, 2019: 2020 2019 Stock options - 1,440,000 Series A Convertible Preferred Stock 66,666,667 66,666,667 Convertible debt 13,500,000 9,250,000 Total Common Shares to be issued 80,166,667 73,356,667 Concentrations of Credit Risk Financial instruments which potentially subject the Company to concentrations of credit risk include cash deposits placed with financial institutions. The Company maintains its cash in bank accounts which, at times, may exceed federally insured limits as guaranteed by the Federal Deposit Insurance Corporation (“FDIC”). At February 29, 2020, $0 of the Company’s cash balances was uninsured. The Company has not experienced any losses on such accounts. Recent Adopted Accounting Pronouncements Leases In February 2016, the Financial Accounting Standards Board (“FASB”) issued ASU No. 2016-02, “Leases (Topic 842)” Leases (Topic 842): Targeted Improvements” Compensation-Stock Compensation In June 2018, the FASB issued ASU 2018-07, “Compensation—Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting”. Recently Issued Accounting Pronouncements In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments – Credit Losses (Topic 326), Measurement of Credit Losses on Financial Instruments The Company does not expect the adoption of any other recently issued accounting pronouncements to have a significant impact on its financial position, results of operations, or cash flows. Subsequent Events The Company has evaluated all transactions through the date the consolidated financial statements were issued for subsequent event disclosure consideration. |
Revenue from Contracts with Cus
Revenue from Contracts with Customers | 12 Months Ended |
Feb. 29, 2020 | |
Revenue from Contract with Customer [Abstract] | |
Revenue from Contracts with Customers | Note 2 – Revenue from Contracts with Customers Disaggregation of Revenue from Contracts with Customers The following table disaggregates revenue by significant product type for the years ended February 29, 2020 and February 28, 2019: 2020 2019 Oil sales $ 493,192 $ 250,252 Natural gas sales 79,824 248,822 Total $ 573,016 $ 499,074 There were no significant contract liabilities or transaction price allocations to any remaining performance obligations as of February 29, 2020 and February 28, 2019. |
Oil and Gas Properties
Oil and Gas Properties | 12 Months Ended |
Feb. 29, 2020 | |
Extractive Industries [Abstract] | |
Oil and Gas Properties | Note 3 – Oil and Gas Properties The following table summarizes the Company’s oil and gas activities by classification for the years ended February 29, 2020 and February 28, 2019: February 28, 2018 Additions Dispositions February 28, 2019 Oil and gas properties, subject to amortization $ 2,646,878 $ - $ - $ 2,646,878 Asset retirement costs 69,224 - - 69,224 Accumulated depletion (69,760 ) (189,532 ) - (259,292 ) Total oil and gas assets $ 2,646,342 $ (189,532 ) $ - $ 2,456,810 February 28, 2019 Additions Dispositions February 29, 2020 Oil and gas properties, subject to amortization $ 2,646,878 $ 283,359 $ - $ 2,930,237 Asset retirement costs 69,224 - - 69,224 Accumulated depletion (259,292 ) (2,081,969 ) - (2,341,261 ) Total oil and gas assets $ 2,456,810 $ (1,798,610) $ - $ 658,200 The depletion recorded for production on proved properties for the years ended February 29, 2020 and February 28, 2019, amounted to $762,525 and $189,532, respectively. During the years ended February 29, 2020 and February 28, 2019, the Company recognized impairment expense of $1,319,444 and $-0-, respectively, related to a ceiling test write-down of its oil and properties subjection to amortization. |
Asset Retirement Obligations
Asset Retirement Obligations | 12 Months Ended |
Feb. 29, 2020 | |
Asset Retirement Obligation Disclosure [Abstract] | |
Asset Retirement Obligations | Note 4 – Asset Retirement Obligations The following table summarizes the change in the Company’s asset retirement obligations during the year ended February 29, 2020: Asset retirement obligations as of February 28, 2019 $ 92,850 Additions - Current year revision of previous estimates - Accretion during the year ended February 29, 2020 9,312 Asset retirement obligations as of February 29, 2020 $ 102,162 During the years ended February 29, 2020 and February 28, 2019, the Company recognized accretion expense of $9,312 and $16,193, respectively. |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Feb. 29, 2020 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Note 5 – Related Party Transactions Promissory Note to JBB On December 28, 2017, the Company borrowed $1,550,000 from JBB to complete the purchases of a series of oil and gas leases (the “Loan Note”). The loan has an interest rate of 3% per annum, a maturity date of December 28, 2018 and is secured by all assets of the Company. The loan is convertible to the Company’s common stock at the conversion rate of $0.20 per share. On June 26, 2018, the Company and JBB entered into a modification of the existing Loan Note, to add provisions to permit the Company to obtain additional advances under the Loan Note up to a maximum of $1,000,000. The Company may request an advance in increments of $100,000 no more frequently than every 30 days, provided that (i) it provides a description of the use of proceeds for the advance reasonably acceptable to JBB, and (ii) the Company is not otherwise in default of the Loan Note. The original loan amount and the advances are secured by all the assets of the Company and are convertible into common stock of the Company at the rate of $0.20 per common share, subject to adjustment for any reverse and forward stock splits. The Loan Note may be repaid at any time, without penalty, however, any advance that is repaid before maturity may not be re-borrowed as a further advance. On May 21, 2019, the Company entered into an extension agreement with JBB to extend the maturity of its outstanding Loan Note to September 30, 2020. On June 13, 2019, JBB lent the Company $250,000 under a secured promissory note. The funds were used to acquire the remaining working interest in the Marshall Walden oil and gas property from Odyssey Enterprises LLC. The loan has an interest rate of 5% per annum, a maturity date of June 30, 2022, and is secured by all assets of the Company. The loan is convertible into the Company’s common stock at a conversion rate of $0.20 per common share. On October 1, 2019, the Company entered into another amendment of its Loan Note with JBB to increase the line of credit by an additional $500,000, for a total of $1,500,000, and extend the maturity date for the original note and line of credit to December 31, 2020. During the year ended February 29, 2020, JBB advanced $600,000 to fund the Company’s operations under the Loan Note. As of February 29, 2020, the Company had availability of $600,000 on its existing credit line with JBB. The Company recognized interest expense of $73,295 and $52,268 for the years ended February 29, 2020 and February 28, 2019, respectively. As of February 29, 2020, and February 28, 2019, there was $2,700,000 and $1,850,000, respectively, outstanding under notes payable to JBB. On May 29, 2020, the Company entered into an extension agreement with JBB to extend the maturity of its outstanding Loan Note to September 30, 2021. Equipment Sale During the year ended February 29, 2020, the Company sold one used vehicle, a work truck, for proceeds $10,000 to affiliate operator of IWO. As a result of this sale, the Company recognized a gain on sale of equipment on its statement of operations of $2,254. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Feb. 29, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Note 6 – Commitments and Contingencies Office Lease Change in Accounting Policy – “Leases (Topic 842)” and Leases (Topic 842): Targeted Improvements” As of September 1, 2018, the Company moved to the offices of International Western Oil Corp. (“IWO”), a related party, in Weatherford, TX that is being rented on a month-to-month sublease basis at rate of $950 per month from IWO. During the years ended February 29, 2020 and February 28, 2019, the Company incurred $11,400 and $5,700, respectively, of rent expense under this lease that is included in general and administrative expenses on the consolidated statement of operations. Leasehold Drilling Commitments The Company’s oil and gas leasehold acreage is subject to expiration of leases if the Company does not drill and hold such acreage by production or otherwise exercises options to extend such leases, if available, in exchange for payment of additional cash consideration. In the King County, Texas lease acreage, 640 acres are due to expire in June 2021. |
Equity Transactions
Equity Transactions | 12 Months Ended |
Feb. 29, 2020 | |
Equity [Abstract] | |
Equity Transactions | Note 7 – Equity Transactions There were no issuances of common stock (or common stock activity) during the year ended February 28, 2019. During the year ended February 28, 2018, the Company granted two of its officers options to purchase a total of 1,440,000 shares the Company’s common stock with an exercise price of $0.01 per share, a term of 2 years until August 3, 2020, and a vesting period of 2 years. The options had an aggregate fair value of $431,956 that was calculated using the Black-Scholes option-pricing model. Variables used in the Black-Scholes option-pricing model include: (1) discount rate of 1.34%; (2) expected life of 2 years; (3) expected volatility of 482.51%; and (4) zero expected dividends. These options had an intrinsic value of $68,160 as of February 28, 2019. On November 25, 2019, one of the employees exercised the option and purchased 720,000 shares of the Company’s common stock at an exercise price of $0.01 per share, for total proceeds of $7,200. On January 6, 2020, one of the officers exercised the option and purchased 720,000 shares of the Company’s common stock at an exercise price of $0.01 per share, for total of $7,200. The unpaid proceeds are included in the consolidated balance sheet as a subscription receivable. During the years ended February 29, 2020 and February 28, 2019, the Company recorded stock-based compensation expense of $89,956 and $216,000, respectively, related to the vesting of these options. During the year ended February 29, 2020, the options were fully vested and exercised. As such, as of February 29, 2020, the intrinsic value was $0. |
Income Taxes
Income Taxes | 12 Months Ended |
Feb. 29, 2020 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Note 8 – Income Taxes Due to the Company’s net losses, there were no provisions for income taxes for the years ended February 29, 2020 and February 28, 2019. The difference between the income tax expense of zero shown in the statement of operations and pre-tax book net loss times the federal statutory rate of 21% for the years ended February 29, 2020 and February 28, 2019, respectively, are summarized as follows: 2020 2019 Pretax book loss $ (608,608 ) $ (193,554 ) Permanent differences: Stock-based compensation 18,891 45,360 Loss on settlement of debt - - Change in valuation allowance 589,717 136,286 Change in the effective rates - - Other adjustments - 11,908 Total tax expense $ - $ - Deferred income tax assets for the years ended February 29, 2020 and February 28, 2019 are as follows: Deferred Tax Assets 2020 2019 Net operating losses carry forwards $ 1,889,953 $ 1,577,319 Impairment expense 277,083 - Total deferred tax assets 2,167,036 1,577,319 Less valuation allowance (2,167,036 ) (1,577,319 ) Total deferred tax assets $ - $ - In assessing the realization of deferred tax assets, management considers whether it is more likely than not that some portion or all of deferred assets will not be realized. The ultimate realization of the deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible. Based on the available objective evidence, management believes it is more likely than not that the net deferred tax assets will not be fully realizable. Accordingly, management has applied a full valuation allowance against its net deferred tax assets at February 29, 2020 and February 28, 2019. The net change in the total valuation allowance from February 29, 2020 and February 28, 2019, was an increase of $589,717. The Company’s policy is to recognize interest and penalties accrued on any unrecognized tax benefits as a component of income tax expense. As of February 29, 2020, and February 28, 2019, the Company did not have any significant uncertain tax positions or unrecognized tax benefits. As of February 29, 2020, the Company has federal net operating loss carryforwards of approximately $11,300,000 for federal and state tax purposes, respectively. Utilization of NOL and tax credit carryforwards may be subject to a substantial annual limitation due to ownership change limitations that may have occurred or that could occur in the future, as required by the Internal Revenue Code (the “Code”), as amended, as well as similar state provisions. In general, an “ownership change” as defined by the Code results from a transaction or series of transactions over a three-year period resulting in an ownership change of more than 50 percent of the outstanding stock of a company by certain shareholders or public groups. The Company experienced an “ownership change” within the meaning of IRC Section 382 during the year ended February 29, 2020. As a result, certain limitations apply to the annual amount of net operating losses that can be used to offset post ownership change taxable income. |
Subsequent Events
Subsequent Events | 12 Months Ended |
Feb. 29, 2020 | |
Subsequent Events [Abstract] | |
Subsequent Events | Note 9 – Subsequent Events On May 29, 2020, the Company entered into an extension agreement with JBB to extend the maturity of its outstanding Loan Note to September 30, 2021, and also funded an additional $100,000 to the Company. |
Supplemental Oil and Gas Disclo
Supplemental Oil and Gas Disclosures (Unaudited) | 12 Months Ended |
Feb. 29, 2020 | |
Extractive Industries [Abstract] | |
Supplemental Oil and Gas Disclosures (Unaudited) | Note 10 – Supplemental Oil and Gas Disclosures (Unaudited) Capitalized Costs Relating to Oil and Gas Producing Activities The estimates of proved oil and gas reserves utilized in the preparation of these statements were prepared by Bryant M. Mook for years ended February 29, 2020 and February 28, 2019, using reserve definitions and pricing requirements prescribed by the SEC. The Company used a combination of production performance and offset analogies, along with estimated future operating and development costs as provided by the Company and based upon historical costs adjusted for known future changes in operations or developmental plans, to estimate its reserves. There are numerous uncertainties inherent in estimating quantities of proved reserves, projecting future rates of production and projecting the timing of development expenditures, including many factors beyond our control. The reserve data represents only estimates. Reservoir engineering is a subjective process of estimating underground accumulations of natural gas and oil that cannot be measured in an exact manner. The accuracy of any reserve estimate is a function of the quality of available data and of engineering and geological interpretations and judgment. All estimates of proved reserves are determined according to the rules prescribed by the SEC. These rules indicate that the standard of “reasonable certainty” be applied to the proved reserve estimates. This concept of reasonable certainty implies that as more technical data becomes available, a positive, or upward, revision is more likely than a negative, or downward, revision. Estimates are subject to revision based upon a number of factors, including reservoir performance, prices, economic conditions and government restrictions. In addition, results of drilling, testing and production subsequent to the date of an estimate may justify revision of that estimate. Reserve estimates are often different from the quantities of natural gas and oil that are ultimately recovered. The meaningfulness of reserve estimates is highly dependent on the accuracy of the assumptions on which they were based. In general, the volume of production from natural gas and oil properties we own declines as reserves are depleted. Except to the extent we conduct successful development activities or acquire additional properties containing proved reserves, or both, our proved reserves will decline as reserves are produced. There have been no major discoveries or other events, favorable or adverse, that may be considered to have caused a significant change in the estimated proved reserves since February 29, 2020. The Company emphasizes that reserve estimates are inherently imprecise. Accordingly, the estimates are expected to change as more current information becomes available. In addition, a portion of the Company’s proved reserves are proved developed non-producing and proved undeveloped, which increases the imprecision inherent in estimating reserves which may ultimately be produced. All of the Company’s reserves are located in the United States. February 29, 2020 February 28, 2019 Proved oil and gas properties $ 2,999,461 $ 2,716,102 Unproved oil and gas properties - - Accumulated depreciation, depletion, amortization and impairment (2,341,261 ) (259,292 ) Total acquisition, development and exploration costs $ 658,200 $ 2,456,810 Costs Incurred in Oil and Gas Property Acquisition, Exploration, and Development Activities At February 29, 2020 and February 28, 2019, unevaluated costs of $0 were excluded from the depletion base. February 29, 2020 February 28, 2019 Acquisition of properties – proved $ 283,359 $ - Acquisition of properties – unproved - - Exploration costs - - Development costs - - Disposition/sale - - Total costs incurred $ 283,359 $ - Estimated Quantities of Proved Oil and Gas Reserves The following table sets forth proved oil and gas reserves together with the changes therein, proved developed reserves and proved undeveloped reserves for the years ended February 29, 2020 and February 28, 2019. Units of oil are in thousands of barrels (“MBbls”) and units of gas are in millions of cubic feet (“MMcf”). Gas is converted to barrels of oil equivalents (“MBoe”) using a ratio of six Mcf of gas per Bbl of oil. 2020 2019 Oil Gas BOE Oil Gas BOE Proved reserves: Beginning of year 120 1,536 376 197 4,609 966 Revisions (81 ) (1,324 ) (302 ) (72 ) (2,966 ) (567 ) Extensions and discoveries - - - - - - Purchases of minerals-in-place Sales of minerals-in-place - - - - - - Production (10 ) (62 ) (20 ) (5 ) (107 ) (23 ) End of year 29 150 54 120 1,536 376 Proved developed reserves: Beginning of year 27 210 62 59 861 203 End of year 29 110 48 27 210 62 Proved not producing reserves: Beginning of year 48 1,206 249 138 3,747 763 End of year - - - 48 1,206 249 Proved undeveloped reserves: Beginning of year 45 120 65 - - - End of year - 40 6 45 120 65 Standardized Measure of Discounted Future Net Cash Flows and Changes Therein Relating to Proved Reserves The standardized measure of discounted future net cash flows, in management’s opinion, should be examined with caution. The basis for this table is the reserve studies prepared by the Company’s independent petroleum engineering consultants, which contain imprecise estimates of quantities and rates of future production of reserves. Revisions of previous year estimates can have a significant impact on these results. Also, exploration costs in one year may lead to significant discoveries in later years and may significantly change previous estimates of proved reserves and their valuation. Therefore, the standardized measure of discounted future net cash flow is not necessarily indicative of the fair value of the Company’s proved oil and natural gas properties. Future cash inflows for 2020 were computed by applying the average price for the year to the year-end quantities of proved reserves. The 2020 average price for the year was calculated using the 12-month period prior to the ending date of the period covered by the report, determined as an un-weighted arithmetic average of the first-day-of-the-month price for each month within such period. Adjustment in this calculation for future price changes is limited to those required by contractual arrangements in existence at the end of each reporting year. Future development, abandonment and production costs were computed by estimating the expenditures to be incurred in developing and producing proved oil and natural gas reserves at the end of the year, based on year-end costs, assuming continuation of year-end economic conditions. Future income tax expense was computed by applying statutory rates, less the effects of tax credits for each period presented, and to the difference between pre-tax net cash flows relating to the Company’s proved reserves and the tax basis of proved properties, after consideration of available net operating loss and percentage depletion carryovers. Discounted future net cash flows have been calculated using a ten percent discount factor. Discounting requires a year-by-year estimate of when future expenditures will be incurred and when reserves will be produced. The estimated present value of future cash flows relating to prove reserves is extremely sensitive to prices used at any measurement period. The prices used for each commodity for the years ended February 29, 2020 and February 28, 2019, as adjusted, were as follows: Oil (Bbl) Using NYMEX WTI Gas (Mcf) Using NYMEX Henry Hub 2020 (average price) $ 56.69 $ 2.40 2019 (average price) $ 63.43 $ 3.04 The information provided in the tables set out below does not represent management’s estimate of the Company’s expected future cash flows or of the value of the Company’s proved oil and gas reserves. Estimates of proved reserve quantities are imprecise and change over time as new information becomes available. Moreover, probable and possible reserves, which may become proved in the future, are excluded from the calculations. The arbitrary valuation prescribed under ASC No. 932 requires assumptions as to the timing and amount of future development and production costs. The calculations should not be relied upon as an indication of the Company’s future cash flows or of the value of its oil and gas reserves. The following table sets forth the standardized measure of discounted future net cash flows relating to proven reserves for the years ended February 29, 2020 and February 28, 2019, respectively (stated in thousands): 2020 2019 Future cash inflows $ 1,998 $ 12,571 Future costs: Production costs (809 ) (3,762 ) Future tax expense (159 ) (1,070 ) Future development costs - (516 ) Future net cash flows 1,030 7,223 10% annual discount for estimated timing of cash flows (372 ) (3,808 ) Standardized measure of discounted net cash flows $ 658 $ 3,415 Summary of Changes in Standardized Measure of Discounted Future Net Cash Flows The following table summarizes the principal sources of change in the standardized measure of discounted future estimated net cash flows at 10% per annum for the years ended February 29, 2020 and February 28, 2019, respectively (stated in thousands): 2020 2019 Increase (decrease): Beginning of year $ 3,415 $ 7,947 Sales of oil produced, net of production costs 442 (288 ) Net changes in sales and transfer prices and in production costs and production costs related to future production (1,829 ) 15,804 Previously estimated development costs incurred during the period - - Changes in future development costs - (435 ) Revisions of previous quantity estimates due to prices and performance (3,679 ) (5,138 ) Accretion of discount 342 795 Discoveries, net of future production and development costs associated with these extensions and discoveries - - Purchases and sales of minerals in place - - Timing and other 1,967 (15,270 ) End of year $ 658 $ 3,415 |
Organization, Nature of Opera_2
Organization, Nature of Operations and Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Feb. 29, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying financial statements of the Company have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) and the rules of the Securities and Exchange Commission (“SEC”). The financial statements are presented on a consolidated basis and include all of the accounts of Torchlight Energy Resources Inc. and its wholly owned subsidiary, Norris Petroleum, Inc. All significant intercompany balances and transactions have been eliminated. |
Liquidity and Capital Considerations | Liquidity and Capital Considerations The accompanying consolidated financial statements have been prepared assuming that the Company will continue as a going concern, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business for the twelve-month period following the issuance date of these consolidated financial statements. The Company’s business and operations have been adversely affected by and are expected to continue to be adversely affected by the recent COVID-19 outbreak and may be adversely affected in the future by other similar outbreaks. As a result of the recent COVID-19 outbreak, including voluntary and mandatory quarantines, travel restrictions and other restrictions, the Company’s operations, and those of its subcontractors, customers and suppliers, have and are anticipated to continue to experience delays or disruptions and temporary suspensions of operations. In addition, the Company’s financial condition and results of operations have been and are likely to continue to be adversely affected by the COVID-19 outbreak. The timeline and potential magnitude of the COVID-19 outbreak is currently unknown. The continuation or amplification of this virus could continue to more broadly affect the United States and global economy, including our business and operations, and the demand, for oil and gas. The Company has incurred continuing losses since 2016, including a loss of $2,898,132 for the fiscal year ended February 29, 2020. During the fiscal year ended February 29, 2020, the Company accessed $850,000 in funding, reduced its general and administrative costs, increased revenues, and incurred cash losses of approximately $552,000 from its operating activities. Further, as of February 29, 2020, the Company had availability of $600,000 on its existing credit line with JBB Partners, Inc. (“JBB”), an entity that is owned and controlled by Mr. Patrick Norris, the Company’s Chief Executive Officer and principal shareholder, a cash balance of approximately $158,000 and net working capital deficit of approximately $40,000. The Company’s principal capital and exploration expenditures during next fiscal year are expected to relate to selected well workovers on its Jack and Palo Pinto County acreages. The Company believes that it has the ability to fund its costs for such expenditures from cash on-hand and in-place financing. The Company believes that it has sufficient working capital and in-place financing to fund its expected operational losses for twelve months following the issuance of these financial statements. In the event that the Company required additional capital to fund higher operational losses, or oil and gas property leases purchases for fiscal year ending February 29, 2020, the Company expects to seek additional capital from one or more sources via sales of restricted private placement of sales of equity and debt securities from those other than JBB. However, there can be no assurance that the Company would be able to secure the necessary capital to fund its costs on acceptable terms, or at all. If, for any reason, the Company is unable to fund its operations it would have to undertake other aggressive cost cutting measures and then be subject to possible loss of some of its rights and interests in prospects to curtail operations and forced to forego opportunities or in worst case, cease operations. |
Use of Estimates | Use of Estimates The preparation of consolidated financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the consolidated financial statements and the reported amounts of revenues and expense during the period. Actual results could differ from those estimates. |
Risks and Uncertainties | Risks and Uncertainties The Company’s operations are subject to significant risks and uncertainties, including financial, operational, technological, and other risks associated with operating an emerging business, including the potential risk of business failure. |
Cash and Cash Equivalents | Cash and Cash Equivalents The Company considers all highly liquid investments purchased with an original maturity of the year or less to be cash equivalents. The Company has not experienced any losses on its deposits of cash and cash equivalents . |
Oil and Gas Properties, Full Cost Method | Oil and Gas Properties, Full Cost Method The Company follows the full cost method of accounting for its oil gas properties, whereby all costs incurred in connection with the acquisition, exploration for and development of petroleum and natural gas reserves are capitalized. Such costs include lease acquisition, geological and geophysical activities, rentals on non-producing leases, drilling, completing and equipping of oil wells and administrative costs directly attributable to those activities and asset retirement costs. Disposition of oil properties are accounted for as a reduction of capitalized costs, with no gain or loss recognized unless such adjustment would significantly alter the relationship between capital costs and proved reserves of oil and gas, in which case the gain or loss is recognized in the consolidated statement of operations. Depletion and depreciation of proved oil properties are calculated on the units-of-production method based upon estimates of proved reserves. Such calculations include the estimated future costs to develop proved reserves. Costs of unproved properties are not included in the costs subject to depletion. These costs are assessed periodically for impairment. At the end of each quarter, the unamortized cost of oil and gas properties, net of related deferred income taxes, is limited to the sum of the estimated future after-tax net revenues from proved properties, after giving effect to cash flow hedge positions, discounted at 10%, and the lower of cost or fair value of unproved properties, adjusted for related income tax effects. Costs in excess of the present value of estimated future net revenues are charged to impairment expense. This limitation is known as the “ceiling test,” and is based on SEC rules for the full cost oil and gas accounting method. The Company capitalizes pre-acquisition costs directly identifiable with specific properties when the acquisition of such properties is probable. Capitalized pre-acquisition costs are presented in the consolidated balance sheet. |
Equipment | Equipment Equipment is stated at cost less accumulated depreciation. Maintenance and repairs are charged to expense as incurred. Renewals and betterments which extend the life or improve existing equipment are capitalized. Upon disposition or retirement of equipment, the cost and related accumulated depreciation are removed and any resulting gain or loss is reflected in operations. Depreciation is provided using the straight-line method over the estimated useful lives of the assets, which are 3 to 10 years. |
Income Taxes | Income Taxes Income taxes are accounted for in accordance with the provisions of ASC Topic No. 740. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. Valuation allowances are established, when necessary, to reduce deferred tax assets to the amounts expected to be realized. |
Revenue Recognition | Revenue Recognition ASU 2014-09, “Revenue from Contracts with Customers (Topic 606)” Revenue Recognition (Topic 605) The Company’s revenue is comprised entirely of revenue from exploration and production activities. The Company’s oil is sold primarily to wholesalers and others that sell product to end use customers. Natural gas is sold primarily to interstate and intrastate natural-gas pipelines, various end-users, local distribution companies, and natural-gas marketers. NGLs are sold primarily to various end-users. Payment is generally received from the customer in the month following delivery. Contracts with customers have varying terms, including spot sales or month-to-month contracts, or contracts with a finite term, where the production from a well or group of wells is sold to one or more customers. The Company recognizes sales revenues for oil, natural gas, and NGLs based on the amount of each product sold to a customer when control transfers to the customer. Generally, control transfers at the time of delivery to the customer at a pipeline interconnect, the tailgate of a processing facility, or as a tanker lifting is completed. Revenue is measured based on the contract price, which may be index-based or fixed, and may include adjustments for market differentials and downstream costs incurred by the customer, including gathering, transportation, and fuel costs. Revenues are recognized for the sale of the Company’s net share of production volumes. Sales on behalf of other working interest owners and royalty interest owners are not recognized as revenues. The Company does not hedge nor forward sell any of its current production via derivative financial contracts. |
Share-Based Compensation | Share-based Compensation The Company estimates the fair value of each share-based compensation award at the grant date by using the Black-Scholes option pricing model. The fair value determined represents the cost for the award and is recognized over the vesting period during which an employee is required to provide service in exchange for the award. Share-based compensation expense is recognized based on awards ultimately expected to vest. Excess tax benefits, if any, are recognized as an addition to paid-in capital. |
Net Loss Per Common Share | Net Loss per Common Share Basic net loss per common share amounts are computed by dividing the net loss available to the Company’s shareholders by the weighted average number of common shares outstanding over the reporting period. In periods in which the Company reports a net loss, dilutive securities are excluded from the calculation of diluted earnings per share as the effect would be anti-dilutive. The following table summarizes the common stock equivalents excluded from the calculation of diluted net loss per as the inclusion of these shares would be anti-dilutive for the years ended February 29, 2020 and February 28, 2019: 2020 2019 Stock options - 1,440,000 Series A Convertible Preferred Stock 66,666,667 66,666,667 Convertible debt 13,500,000 9,250,000 Total Common Shares to be issued 80,166,667 73,356,667 |
Concentrations of Credit Risk | Concentrations of Credit Risk Financial instruments which potentially subject the Company to concentrations of credit risk include cash deposits placed with financial institutions. The Company maintains its cash in bank accounts which, at times, may exceed federally insured limits as guaranteed by the Federal Deposit Insurance Corporation (“FDIC”). At February 29, 2020, $0 of the Company’s cash balances was uninsured. The Company has not experienced any losses on such accounts. |
Recent Adopted Accounting Pronouncements | Recent Adopted Accounting Pronouncements Leases In February 2016, the Financial Accounting Standards Board (“FASB”) issued ASU No. 2016-02, “Leases (Topic 842)” Leases (Topic 842): Targeted Improvements” Compensation-Stock Compensation In June 2018, the FASB issued ASU 2018-07, “Compensation—Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting”. |
Recently Issued Accounting Pronouncements | Recently Issued Accounting Pronouncements In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments – Credit Losses (Topic 326), Measurement of Credit Losses on Financial Instruments The Company does not expect the adoption of any other recently issued accounting pronouncements to have a significant impact on its financial position, results of operations, or cash flows. |
Subsequent Events | Subsequent Events The Company has evaluated all transactions through the date the consolidated financial statements were issued for subsequent event disclosure consideration. |
Organization, Nature of Opera_3
Organization, Nature of Operations and Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Feb. 29, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share | The following table summarizes the common stock equivalents excluded from the calculation of diluted net loss per as the inclusion of these shares would be anti-dilutive for the years ended February 29, 2020 and February 28, 2019: 2020 2019 Stock options - 1,440,000 Series A Convertible Preferred Stock 66,666,667 66,666,667 Convertible debt 13,500,000 9,250,000 Total Common Shares to be issued 80,166,667 73,356,667 |
Revenue from Contracts with C_2
Revenue from Contracts with Customers (Tables) | 12 Months Ended |
Feb. 29, 2020 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of Disaggregation of Revenue | The following table disaggregates revenue by significant product type for the years ended February 29, 2020 and February 28, 2019: 2020 2019 Oil sales $ 493,192 $ 250,252 Natural gas sales 79,824 248,822 Total $ 573,016 $ 499,074 |
Oil and Gas Properties (Tables)
Oil and Gas Properties (Tables) | 12 Months Ended |
Feb. 29, 2020 | |
Extractive Industries [Abstract] | |
Summary of Oil and Gas Activities | The following table summarizes the Company’s oil and gas activities by classification for the years ended February 29, 2020 and February 28, 2019: February 28, 2018 Additions Dispositions February 28, 2019 Oil and gas properties, subject to amortization $ 2,646,878 $ - $ - $ 2,646,878 Asset retirement costs 69,224 - - 69,224 Accumulated depletion (69,760 ) (189,532 ) - (259,292 ) Total oil and gas assets $ 2,646,342 $ (189,532 ) $ - $ 2,456,810 February 28, 2019 Additions Dispositions February 29, 2020 Oil and gas properties, subject to amortization $ 2,646,878 $ 283,359 $ - $ 2,930,237 Asset retirement costs 69,224 - - 69,224 Accumulated depletion (259,292 ) (2,081,969 ) - (2,341,261 ) Total oil and gas assets $ 2,456,810 $ (1,798,610) $ - $ 658,200 |
Asset Retirement Obligations (T
Asset Retirement Obligations (Tables) | 12 Months Ended |
Feb. 29, 2020 | |
Asset Retirement Obligation Disclosure [Abstract] | |
Schedule of Asset Retirement Obligations | The following table summarizes the change in the Company’s asset retirement obligations during the year ended February 29, 2020: Asset retirement obligations as of February 28, 2019 $ 92,850 Additions - Current year revision of previous estimates - Accretion during the year ended February 29, 2020 9,312 Asset retirement obligations as of February 29, 2020 $ 102,162 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Feb. 29, 2020 | |
Income Tax Disclosure [Abstract] | |
Schedule of Effective Income Tax Expense Reconciliation | The difference between the income tax expense of zero shown in the statement of operations and pre-tax book net loss times the federal statutory rate of 21% for the years ended February 29, 2020 and February 28, 2019, respectively, are summarized as follows: 2020 2019 Pretax book loss $ (608,608 ) $ (193,554 ) Permanent differences: Stock-based compensation 18,891 45,360 Loss on settlement of debt - - Change in valuation allowance 589,717 136,286 Change in the effective rates - - Other adjustments - 11,908 Total tax expense $ - $ - |
Schedule of Deferred Income Tax Assets | Deferred income tax assets for the years ended February 29, 2020 and February 28, 2019 are as follows: Deferred Tax Assets 2020 2019 Net operating losses carry forwards $ 1,889,953 $ 1,577,319 Impairment expense 277,083 - Total deferred tax assets 2,167,036 1,577,319 Less valuation allowance (2,167,036 ) (1,577,319 ) Total deferred tax assets $ - $ - |
Supplemental Oil and Gas Disc_2
Supplemental Oil and Gas Disclosures (Unaudited) (Tables) | 12 Months Ended |
Feb. 29, 2020 | |
Extractive Industries [Abstract] | |
Schedule of Capitalized Costs Relating to Oil and Gas Producing Activities | All of the Company’s reserves are located in the United States. February 29, 2020 February 28, 2019 Proved oil and gas properties $ 2,999,461 $ 2,716,102 Unproved oil and gas properties - - Accumulated depreciation, depletion, amortization and impairment (2,341,261 ) (259,292 ) Total acquisition, development and exploration costs $ 658,200 $ 2,456,810 |
Schedule of Costs Incurred in Oil and Gas Property Acquisition, Exploration, and Development Activities | February 29, 2020 February 28, 2019 Acquisition of properties – proved $ 283,359 $ - Acquisition of properties – unproved - - Exploration costs - - Development costs - - Disposition/sale - - Total costs incurred $ 283,359 $ - |
Schedule of Estimated Quantities of Proved Oil and Gas Reserves | The following table sets forth proved oil and gas reserves together with the changes therein, proved developed reserves and proved undeveloped reserves for the years ended February 29, 2020 and February 28, 2019. Units of oil are in thousands of barrels (“MBbls”) and units of gas are in millions of cubic feet (“MMcf”). Gas is converted to barrels of oil equivalents (“MBoe”) using a ratio of six Mcf of gas per Bbl of oil. 2020 2019 Oil Gas BOE Oil Gas BOE Proved reserves: Beginning of year 120 1,536 376 197 4,609 966 Revisions (81 ) (1,324 ) (302 ) (72 ) (2,966 ) (567 ) Extensions and discoveries - - - - - - Purchases of minerals-in-place Sales of minerals-in-place - - - - - - Production (10 ) (62 ) (20 ) (5 ) (107 ) (23 ) End of year 29 150 54 120 1,536 376 Proved developed reserves: Beginning of year 27 210 62 59 861 203 End of year 29 110 48 27 210 62 Proved not producing reserves: Beginning of year 48 1,206 249 138 3,747 763 End of year - - - 48 1,206 249 Proved undeveloped reserves: Beginning of year 45 120 65 - - - End of year - 40 6 45 120 65 |
Schedule of Estimated Present Value of Future Cash Flows Relating to Prove Reserves | The estimated present value of future cash flows relating to prove reserves is extremely sensitive to prices used at any measurement period. The prices used for each commodity for the years ended February 29, 2020 and February 28, 2019, as adjusted, were as follows: Oil (Bbl) Using NYMEX WTI Gas (Mcf) Using NYMEX Henry Hub 2020 (average price) $ 56.69 $ 2.40 2019 (average price) $ 63.43 $ 3.04 |
Schedule of Discounted Future Net Cash Flows Relating to Proven Reserves | The following table sets forth the standardized measure of discounted future net cash flows relating to proven reserves for the years ended February 29, 2020 and February 28, 2019, respectively (stated in thousands): 2020 2019 Future cash inflows $ 1,998 $ 12,571 Future costs: Production costs (809 ) (3,762 ) Future tax expense (159 ) (1,070 ) Future development costs - (516 ) Future net cash flows 1,030 7,223 10% annual discount for estimated timing of cash flows (372 ) (3,808 ) Standardized measure of discounted net cash flows $ 658 $ 3,415 |
Summary of Changes in Standardized Measure of Discounted Future Net Cash Flows | The following table summarizes the principal sources of change in the standardized measure of discounted future estimated net cash flows at 10% per annum for the years ended February 29, 2020 and February 28, 2019, respectively (stated in thousands): 2020 2019 Increase (decrease): Beginning of year $ 3,415 $ 7,947 Sales of oil produced, net of production costs 442 (288 ) Net changes in sales and transfer prices and in production costs and production costs related to future production (1,829 ) 15,804 Previously estimated development costs incurred during the period - - Changes in future development costs - (435 ) Revisions of previous quantity estimates due to prices and performance (3,679 ) (5,138 ) Accretion of discount 342 795 Discoveries, net of future production and development costs associated with these extensions and discoveries - - Purchases and sales of minerals in place - - Timing and other 1,967 (15,270 ) End of year $ 658 $ 3,415 |
Organization, Nature of Opera_4
Organization, Nature of Operations and Summary of Significant Accounting Policies (Details Narrative) - USD ($) | 12 Months Ended | |
Feb. 29, 2020 | Feb. 28, 2019 | |
Organization Consolidation And Presentation Of Financial Statements Disclosure And Significant Accounting Policies [Line Items] | ||
Net Loss | $ (2,898,132) | $ (921,685) |
Line of credit | 850,000 | |
Net cash used in operating activities | (551,515) | (419,242) |
Cash | 158,081 | $ 125,755 |
Working capital | $ 40,000 | |
Cash flow hedge, discount rate | 10.00% | |
Uninsured cash balances | $ 0 | |
Equipment [Member] | Minimum [Member] | ||
Organization Consolidation And Presentation Of Financial Statements Disclosure And Significant Accounting Policies [Line Items] | ||
Estimated useful lives | 3 years | |
Equipment [Member] | Maximum [Member] | ||
Organization Consolidation And Presentation Of Financial Statements Disclosure And Significant Accounting Policies [Line Items] | ||
Estimated useful lives | 10 years | |
JBB Partners, Inc. [Member] | ||
Organization Consolidation And Presentation Of Financial Statements Disclosure And Significant Accounting Policies [Line Items] | ||
Availability of existing credit line | $ 600,000 | |
JBB Partners, Inc. [Member] | Mr. Patrick Norris [Member] | ||
Organization Consolidation And Presentation Of Financial Statements Disclosure And Significant Accounting Policies [Line Items] | ||
Availability of existing credit line | $ 600,000 |
Organization, Nature of Opera_5
Organization, Nature of Operations and Summary of Significant Accounting Policies - Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share (Details) - shares | 12 Months Ended | |
Feb. 29, 2020 | Feb. 28, 2019 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Total Common Shares to be issued | 80,166,667 | 73,356,667 |
Stock Options [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Total Common Shares to be issued | 1,440,000 | |
Series A Convertible Preferred Stock [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Total Common Shares to be issued | 66,666,667 | 66,666,667 |
Convertible Debt [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Total Common Shares to be issued | 13,500,000 | 9,250,000 |
Revenue from Contracts with C_3
Revenue from Contracts with Customers - Schedule of Disaggregation of Revenue (Details) - USD ($) | 12 Months Ended | |
Feb. 29, 2020 | Feb. 28, 2019 | |
Disaggregation of Revenue [Line Items] | ||
Total revenue from customers | $ 573,016 | $ 499,074 |
Oil [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue from customers | 493,192 | 250,252 |
Gas [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue from customers | $ 79,824 | $ 248,822 |
Oil and Gas Properties (Details
Oil and Gas Properties (Details Narrative) - USD ($) | 12 Months Ended | |
Feb. 29, 2020 | Feb. 28, 2019 | |
Extractive Industries [Abstract] | ||
Depletion recorded for production on proved properties | $ 762,525 | $ 189,532 |
Impairment of oil and gas properties | $ 1,319,444 |
Oil and Gas Properties - Summar
Oil and Gas Properties - Summary of Oil and Gas Activities (Details) - USD ($) | Feb. 29, 2020 | Feb. 28, 2019 | Feb. 28, 2018 |
Oil and gas properties, subject to depletion | $ 2,930,237 | $ 2,646,878 | $ 2,646,878 |
Asset retirement costs | 69,224 | 69,224 | 69,224 |
Accumulated depletion | (2,341,261) | (259,292) | (69,760) |
Total oil and gas assets | 658,200 | 2,456,810 | $ 2,646,342 |
Additions [Member] | |||
Oil and gas properties, subject to depletion | 283,359 | ||
Asset retirement costs | |||
Accumulated depletion | (2,081,969) | (189,532) | |
Total oil and gas assets | (1,798,610) | (189,532) | |
Dispositions [Member] | |||
Oil and gas properties, subject to depletion | |||
Asset retirement costs | |||
Accumulated depletion | |||
Total oil and gas assets |
Asset Retirement Obligations (D
Asset Retirement Obligations (Details Narrative) - USD ($) | 12 Months Ended | |
Feb. 29, 2020 | Feb. 28, 2019 | |
Asset Retirement Obligation Disclosure [Abstract] | ||
Accretion expense | $ 9,312 | $ 16,193 |
Asset Retirement Obligations -
Asset Retirement Obligations - Schedule of Asset Retirement Obligations (Details) | 12 Months Ended |
Feb. 29, 2020USD ($) | |
Asset Retirement Obligation Disclosure [Abstract] | |
Asset retirement obligations as of February 28, 2019 | $ 92,850 |
Additions | |
Current year revision of previous estimates | |
Accretion during the year ended February 29, 2020 | 9,312 |
Asset retirement obligations as of February 29, 2020 | $ 102,162 |
Related Party Transactions (Det
Related Party Transactions (Details Narrative) - USD ($) | May 29, 2020 | Oct. 01, 2019 | Jun. 13, 2019 | May 21, 2019 | Jun. 26, 2018 | Dec. 28, 2017 | Feb. 29, 2020 | Feb. 28, 2019 |
Related Party Transaction [Line Items] | ||||||||
Interest expense | $ 73,295 | $ 52,268 | ||||||
Long term note payable, outstanding | 2,700,000 | 1,850,000 | ||||||
Proceeds from sale of equipment | 10,000 | |||||||
Gain on sale of equipment | 2,254 | |||||||
JBB Partners, Inc. [Member] | ||||||||
Related Party Transaction [Line Items] | ||||||||
Proceeds from advances | 600,000 | |||||||
Availability of existing credit line | 600,000 | |||||||
Long term note payable, outstanding | $ 2,700,000 | $ 1,850,000 | ||||||
Promissory Note [Member] | JBB Partners, Inc. [Member] | ||||||||
Related Party Transaction [Line Items] | ||||||||
Proceed from loan payable | $ 1,550,000 | |||||||
Loan bears interest rate | 5.00% | 3.00% | ||||||
Loan maturity date | Jun. 30, 2022 | Dec. 28, 2018 | ||||||
Debt conversion price per share | $ 0.20 | $ 0.20 | ||||||
Debt maturity date description | On May 21, 2019, the Company entered into an extension agreement with JBB to extend the maturity of its outstanding promissory note to September 30, 2020. | |||||||
Secured term loan | $ 250,000 | |||||||
Additional borrowing capacity line of credit | $ 500,000 | |||||||
Line of credit facility maximum borrowing capacity | $ 1,500,000 | |||||||
Promissory Note [Member] | JBB Partners, Inc. [Member] | Subsequent Event [Member] | ||||||||
Related Party Transaction [Line Items] | ||||||||
Debt maturity date description | May 29, 2020, the Company entered into an extension agreement with JBB to extend the maturity of its outstanding Loan Note to September 30, 2021. | |||||||
Promissory Note [Member] | JBB Partners, Inc. [Member] | Extended Maturity [Member] | ||||||||
Related Party Transaction [Line Items] | ||||||||
Loan maturity date | Sep. 30, 2020 | |||||||
Promissory Note [Member] | JBB Partners, Inc. [Member] | Extended Maturity [Member] | Subsequent Event [Member] | ||||||||
Related Party Transaction [Line Items] | ||||||||
Loan maturity date | Sep. 30, 2021 | |||||||
Promissory Note [Member] | JBB Partners, Inc. [Member] | Modification of Existing Loan [Member] | ||||||||
Related Party Transaction [Line Items] | ||||||||
Maximum of amount permitted to obtain advances | $ 1,000,000 | |||||||
Promissory Note [Member] | JBB Partners, Inc. [Member] | Modification of Existing Loan Note [Member] | ||||||||
Related Party Transaction [Line Items] | ||||||||
Advance amount | $ 100,000 | |||||||
Debt conversion of price, shares | 0.20 |
Commitments and Contingencies (
Commitments and Contingencies (Details Narrative) | Sep. 02, 2018USD ($) | Feb. 29, 2020USD ($)a | Feb. 28, 2019USD ($) |
Loss Contingencies [Line Items] | |||
Monthly rent | $ 950 | ||
Operating lease, rent expense | $ 731,760 | $ 279,815 | |
Area of land | a | 640 | ||
Lease expire description | In the King County, Texas lease acreage, 640 acres are due to expire in June 2021. | ||
General and Administrative Expense [Member] | |||
Loss Contingencies [Line Items] | |||
Operating lease, rent expense | $ 11,400 | $ 5,700 |
Equity Transactions (Details Na
Equity Transactions (Details Narrative) - USD ($) | Jan. 06, 2020 | Nov. 25, 2019 | Feb. 29, 2020 | Feb. 28, 2019 | Feb. 28, 2018 |
Class of Stock [Line Items] | |||||
Issuance of common stock | |||||
Stock option intrinsic value | $ 0 | $ 68,160 | |||
Proceeds from stock options, exercised | 7,200 | ||||
Share based compensation | $ 89,956 | $ 216,000 | |||
Two Officer [Member] | Stock Options [Member] | |||||
Class of Stock [Line Items] | |||||
Stock options granted to purchase common stock | 1,440,000 | ||||
Stock option exercise price per share | $ 0.01 | ||||
Stock option term | 2 years | ||||
Options vesting period | 2 years | ||||
Fair value of stock option granted | $ 431,956 | ||||
Discount rate | 1.34% | ||||
Expected life of years | 2 years | ||||
Expected volatility | 482.51% | ||||
Expected dividend | 0.00% | ||||
Employees [Member] | |||||
Class of Stock [Line Items] | |||||
Stock options granted to purchase common stock | 720,000 | ||||
Stock option exercise price per share | $ 0.01 | ||||
Proceeds from stock options, exercised | $ 7,200 | ||||
Officer [Member] | |||||
Class of Stock [Line Items] | |||||
Stock options granted to purchase common stock | 720,000 | ||||
Stock option exercise price per share | $ 0.01 | ||||
Proceeds from stock options, exercised | $ 7,200 |
Income Taxes (Details Narrative
Income Taxes (Details Narrative) - USD ($) | 12 Months Ended | |
Feb. 29, 2020 | Feb. 28, 2019 | |
Income Tax Disclosure [Abstract] | ||
Provisions for income taxes | ||
Income tax of federal statutory rate | 21.00% | 21.00% |
Valuation allowance net change | $ 589,717 | $ 589,717 |
Net operating loss carryforwards | $ 11,300,000 | |
Percentage of ownership change of outstanding stock | 50.00% |
Income Taxes - Schedule of Effe
Income Taxes - Schedule of Effective Income Tax Expense Reconciliation (Details) - USD ($) | 12 Months Ended | |
Feb. 29, 2020 | Feb. 28, 2019 | |
Income Tax Disclosure [Abstract] | ||
Pretax book loss | $ (608,608) | $ (193,554) |
Stock-based compensation | 18,891 | 45,360 |
Loss on settlement of debt | ||
Change in valuation allowance | 589,717 | 136,286 |
Change in the effective rates | ||
Other adjustments | 11,908 | |
Total tax expense |
Income Taxes - Schedule of Defe
Income Taxes - Schedule of Deferred Income Tax Assets (Details) - USD ($) | Feb. 29, 2020 | Feb. 28, 2019 |
Income Tax Disclosure [Abstract] | ||
Net operating losses carry forwards | $ 1,889,953 | $ 1,577,319 |
Impairment expense | 277,083 | |
Total deferred tax assets | 2,167,036 | 1,577,319 |
Less valuation allowance | (2,167,036) | (1,577,319) |
Total deferred tax assets |
Subsequent Events (Details Narr
Subsequent Events (Details Narrative) - USD ($) | May 29, 2020 | Feb. 29, 2020 | Feb. 28, 2019 |
Subsequent Event [Line Items] | |||
Advance amount | $ 850,000 | $ 300,000 | |
Subsequent Event [Member] | JBB Partners, Inc. [Member] | Extension Agreement [Member] | |||
Subsequent Event [Line Items] | |||
Extended maturity date | Sep. 30, 2021 | ||
Advance amount | $ 100,000 |
Supplemental Oil and Gas Disc_3
Supplemental Oil and Gas Disclosures (Unaudited) (Details Narrative) - USD ($) | 12 Months Ended | |
Feb. 29, 2020 | Feb. 28, 2019 | |
Extractive Industries [Abstract] | ||
Unevaluated costs | $ 0 | $ 0 |
Standardized measure of discounted future estimated net cash flows rate | 10.00% | 10.00% |
Supplemental Oil and Gas Disc_4
Supplemental Oil and Gas Disclosures (Unaudited) - Schedule of Capitalized Costs Relating to Oil and Gas Producing Activities (Details) - USD ($) | Feb. 29, 2020 | Feb. 28, 2019 | Feb. 28, 2018 |
Extractive Industries [Abstract] | |||
Proved oil and gas properties | $ 2,999,461 | $ 2,716,102 | |
Unproved oil and gas properties | |||
Accumulated depreciation, depletion, amortization and impairment | (2,341,261) | (259,292) | $ (69,760) |
Total acquisition, development and exploration costs | $ 658,200 | $ 2,456,810 |
Supplemental Oil and Gas Disc_5
Supplemental Oil and Gas Disclosures (Unaudited) - Schedule of Costs Incurred in Oil and Gas Property Acquisition, Exploration, and Development Activities (Details) - USD ($) | 12 Months Ended | |
Feb. 29, 2020 | Feb. 28, 2019 | |
Extractive Industries [Abstract] | ||
Acquisition of properties - proved | $ 283,359 | |
Acquisition of properties - unproved | ||
Exploration costs | ||
Development costs | ||
Disposition/sale | ||
Total costs incurred | $ 283,359 |
Supplemental Oil and Gas Disc_6
Supplemental Oil and Gas Disclosures (Unaudited) - Schedule of Estimated Quantities of Proved Oil and Gas Reserves (Details) | 12 Months Ended | |
Feb. 29, 2020MBblsMcfbbl | Feb. 28, 2019MBblsMcfbbl | |
Oil [Member] | ||
Proved reserves: Beginning of year | MBbls | 120,000 | 197,000 |
Proved reserves: Revisions | MBbls | (81,000) | (72,000) |
Proved reserves: Extensions and discoveries | MBbls | ||
Proved reserves: Purchases of minerals-in-place | MBbls | ||
Proved reserves: Sales of minerals-in-place | MBbls | ||
Proved reserves: Production | MBbls | (10,000) | (5,000) |
Proved reserves: End of year | MBbls | 29,000 | 120,000 |
Proved developed reserves: Beginning of year | MBbls | 27,000 | 59,000 |
Proved developed reserves: End of year | MBbls | 29,000 | 27,000 |
Proved not producing reserves: Beginning of year | MBbls | 48,000 | 138,000 |
Proved not producing reserves: End of year | MBbls | 48,000 | |
Proved undeveloped reserves: Beginning of year | MBbls | 45,000 | |
Proved undeveloped reserves: End of year | MBbls | 45,000 | |
Gas [Member] | ||
Proved reserves: Beginning of year | Mcf | 1,536,000,000 | 4,609,000,000 |
Proved reserves: Revisions | Mcf | (1,324,000,000) | (2,966,000,000) |
Proved reserves: Extensions and discoveries | Mcf | ||
Proved reserves: Purchases of minerals-in-place | Mcf | ||
Proved reserves: Sales of minerals-in-place | Mcf | ||
Proved reserves: Production | Mcf | (62,000,000) | (107,000,000) |
Proved reserves: End of year | Mcf | 150,000,000 | 1,536,000,000 |
Proved developed reserves: Beginning of year | Mcf | 210,000,000 | 861,000,000 |
Proved developed reserves: End of year | Mcf | 110,000,000 | 210,000,000 |
Proved not producing reserves: Beginning of year | Mcf | 1,206,000,000 | 3,747,000,000 |
Proved not producing reserves: End of year | Mcf | 1,206,000,000 | |
Proved undeveloped reserves: Beginning of year | Mcf | 120,000,000 | |
Proved undeveloped reserves: End of year | Mcf | 40,000,000 | 120,000,000 |
BOE [Member] | ||
Proved reserves: Beginning of year | bbl | 376,000,000 | 966,000,000 |
Proved reserves: Revisions | bbl | (302,000,000) | (567,000,000) |
Proved reserves: Extensions and discoveries | bbl | ||
Proved reserves: Purchases of minerals-in-place | bbl | ||
Proved reserves: Sales of minerals-in-place | bbl | ||
Proved reserves: Production | bbl | (20,000,000) | (23,000,000) |
Proved reserves: End of year | bbl | 54,000,000 | 376,000,000 |
Proved developed reserves: Beginning of year | bbl | 62,000,000 | 203,000,000 |
Proved developed reserves: End of year | bbl | 48,000,000 | 62,000,000 |
Proved not producing reserves: Beginning of year | bbl | 249,000,000 | 763,000,000 |
Proved not producing reserves: End of year | bbl | 249,000,000 | |
Proved undeveloped reserves: Beginning of year | bbl | 65,000,000 | |
Proved undeveloped reserves: End of year | bbl | 6,000,000 | 65,000,000 |
Supplemental Oil and Gas Disc_7
Supplemental Oil and Gas Disclosures (Unaudited) - Schedule of Estimated Present Value of Future Cash Flows Relating to Prove Reserves (Details) | 12 Months Ended | |
Feb. 29, 2020MBblsMcf | Feb. 28, 2019MBblsMcf | |
Oil (Bbl) Using NYMEX WTI [Member] | ||
Average price | MBbls | 56.69 | 63.43 |
Gas (Mcf) Using NYMEX Henry Hub [Member] | ||
Average price | Mcf | 2.40 | 3.04 |
Supplemental Oil and Gas Disc_8
Supplemental Oil and Gas Disclosures (Unaudited) - Schedule of Discounted Future Net Cash Flows Relating to Proven Reserves (Details) - USD ($) | Feb. 29, 2020 | Feb. 28, 2019 | Feb. 28, 2018 |
Extractive Industries [Abstract] | |||
Future cash inflows | $ 1,998,000 | $ 12,571,000 | |
Production costs | (809,000) | (3,762,000) | |
Future tax expense | (159,000) | (1,070,000) | |
Future development costs | (516,000) | ||
Future net cash flows | 1,030,000 | 7,223,000 | |
10% annual discount for estimated timing of cash flows | (372,000) | (3,808,000) | |
Standardized measure of discounted net cash flows | $ 658,000 | $ 3,415,000 | $ 7,947,000 |
Supplemental Oil and Gas Disc_9
Supplemental Oil and Gas Disclosures (Unaudited) - Schedule of Discounted Future Net Cash Flows Relating to Proven Reserves (Details) (Parenthetical) | Feb. 29, 2020 | Feb. 28, 2019 |
Extractive Industries [Abstract] | ||
Percentage of discount | 10.00% | 10.00% |
Supplemental Oil and Gas Dis_10
Supplemental Oil and Gas Disclosures (Unaudited) - Summary of Changes in Standardized Measure of Discounted Future Net Cash Flows (Details) - USD ($) | 12 Months Ended | |
Feb. 29, 2020 | Feb. 28, 2019 | |
Extractive Industries [Abstract] | ||
Beginning of year | $ 3,415,000 | $ 7,947,000 |
Sales of oil produced, net of production costs | 442,000 | (288,000) |
Net changes in sales and transfer prices and in production costs and production costs related to future production | (1,829,000) | 15,804,000 |
Previously estimated development costs incurred during the period | ||
Changes in future development costs | (435,000) | |
Revisions of previous quantity estimates due to prices and performance | (3,679,000) | (5,138,000) |
Accretion of discount | 342,000 | 795,000 |
Discoveries, net of future production and development costs associated with these extensions and discoveries | ||
Purchases and sales of minerals in place | ||
Timing and other | 1,967,000 | (15,270,000) |
End of year | $ 658,000 | $ 3,415,000 |