Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Sep. 30, 2015 | Nov. 02, 2015 | |
Document And Entity Information [Abstract] | ||
Entity Registrant Name | America Resources Exploration Inc. | |
Entity Central Index Key | 1,609,258 | |
Trading Symbol | aren | |
Current Fiscal Year End Date | --03-31 | |
Entity Filer Category | Smaller Reporting Company | |
Entity Common Stock, Shares Outstanding | 132,550,000 | |
Document Type | 10-Q | |
Document Period End Date | Sep. 30, 2015 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2,016 | |
Document Fiscal Period Focus | Q2 |
CONSOLIDATED BALANCE SHEET
CONSOLIDATED BALANCE SHEET - USD ($) | Sep. 30, 2015 | Mar. 31, 2015 | |
Current assets | |||
Cash and cash equivalents | $ 34,686 | $ 5,971 | |
Materials and supplies | 14,505 | ||
Prepaid expenses | 13,078 | ||
Total current assets | 62,268 | $ 5,971 | |
Oil and gas, on the basis of full cost accounting | |||
Proved properties | 245,930 | ||
Overriding Royalty Interests | 45,328 | ||
Unproved Property | 6,035 | ||
Total assets | 359,561 | $ 5,971 | |
Current liabilities | |||
Accounts payable and accrued liabilities | 10,372 | 400 | |
Other liabilities | 10,200 | 5,600 | |
Total current liabilities | 20,572 | $ 6,000 | |
Long-term liabilities | |||
Asset retirement obligations | 9,075 | ||
Related party notes payable | 110,000 | ||
Total long term liabilities | $ 119,075 | ||
Total liabilities | |||
Commitments and contingencies | |||
Stockholders' (deficit) equity | |||
Common stock, par value $0.001; 300,000,000 shares authorized, 130,550,000 and 125,400,000 shares issued and outstanding as of September 30, 2015 and March 31, 2015 (1) respectively | [1] | $ 14,510 | $ 8,360 |
Additional paid in capital | 871,009 | 21,159 | |
Retained deficit | (665,604) | (29,548) | |
Total stockholders' (deficit) equity | 219,914 | (29) | |
Total liabilities and stockholders' (deficit) equity | $ 359,561 | $ 5,971 | |
[1] | All common share amounts and per share amounts in these financial statements reflect the 15-for-1 split of the issued and outstanding shares of common stock of the Company, effective April 29, 2015, including retroactive adjustment of common share amounts. See Note 5. |
CONSOLIDATED BALANCE SHEET (Par
CONSOLIDATED BALANCE SHEET (Parentheticals) | 6 Months Ended | ||
Sep. 30, 2015$ / sharesshares | Mar. 31, 2015$ / sharesshares | ||
Statement of Financial Position [Abstract] | |||
Common stock, par value (in dollars per share) | $ / shares | [1] | $ 0.001 | $ 0.001 |
Common stock, shares authorized | [1] | 300,000,000 | 300,000,000 |
Common stock, shares issued | [1] | 130,550,000 | 125,400,000 |
Common stock, shares outstanding | [1] | 130,550,000 | 125,400,000 |
Common shares, stock split, conversion ratio | 15 | ||
[1] | All common share amounts and per share amounts in these financial statements reflect the 15-for-1 split of the issued and outstanding shares of common stock of the Company, effective April 29, 2015, including retroactive adjustment of common share amounts. See Note 5. |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) | 3 Months Ended | 6 Months Ended | |||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | ||
Income Statement [Abstract] | |||||
Revenue | |||||
Operating Expenses | |||||
Lease Operating expense | $ 42,022 | $ 44,614 | |||
Accretion expense | 44 | 89 | |||
Total operating expenses | 42,066 | 44,703 | |||
General and administrative expenses | 81,966 | $ 15,986 | 95,909 | $ 21,261 | |
Other Expenses: | |||||
Loss on acquisition of royalty interest and unproven property | 46,237 | 46,237 | |||
Impairment of oil and gas leases | 448,500 | 448,500 | |||
Interest expenses | 708 | 708 | |||
Total other expenses | 495,445 | 495,445 | |||
Net loss | $ (619,477) | $ (15,986) | $ (636,057) | $ (21,261) | |
Net loss per share - basic and diluted (in dollars per share) | $ 0 | $ 0 | $ 0 | $ 0 | |
Weighted average shares outstanding - basic and diluted (in shares) | [1] | 130,223,370 | 95,563,050 | 128,218,306 | 92,796,720 |
[1] | All common share amounts and per share amounts in these financial statements reflect the 15-for-1 split of the issued and outstanding shares of common stock of the Company, effective April 29, 2015, including retroactive adjustment of common share amounts. See Note 5. |
CONSOLIDATED STATEMENTS OF OPE5
CONSOLIDATED STATEMENTS OF OPERATIONS (Parentheticals) | 6 Months Ended |
Sep. 30, 2015 | |
Income Statement [Abstract] | |
Common shares, stock split, conversion ratio | 15 |
CONSOLIDATED STATEMENT OF CASH
CONSOLIDATED STATEMENT OF CASH FLOWS (Unaudited) - USD ($) | 6 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2014 | |
Cash flows from operating activities | ||
Net loss | $ (636,057) | $ (21,261) |
Adjustments to reconcile net loss to net cash from operating activities: | ||
Asset retirement obligation accretion | 89 | |
Impairment of oil and gas leases | 448,500 | |
Loss on acquisition of royalty interests and unproven property | 46,237 | |
Change in operating assets and liabilities: | ||
Accounts payable | 9,263 | |
Other liabilities | 4,600 | |
Prepaid Expenses | (13,078) | |
Materials and supplies | (14,505) | |
Interest expense | 708 | |
Net cash from operating activities | (154,241) | $ (21,261) |
Cash flows from investing activities | ||
Improvements to proven oil and gas assets | (77,044) | |
Net cash from investing activities | (77,044) | |
Cash flows from financing activities | ||
Note payable - related party | 110,000 | $ 6,250 |
Proceeds from sale of common stock | 150,000 | 22,719 |
Net cash from financing activities | 260,000 | 28,969 |
Net change in cash and cash equivalents | 28,715 | 7,708 |
Beginning of period | 5,971 | 178 |
End of period | 34,686 | $ 7,886 |
Noncash investing and financing activities: | ||
Issuance of common stock for acquisition of oil and gas properties | 160,000 | |
Issuance of common stock for acquisition of overriding royalties and unproved property | 97,500 | |
Issuance of common stock for unproven oil and gas property | 448,500 | |
Asset retirement obligations incurred | $ 9,075 |
BASIS OF PRESENTATION
BASIS OF PRESENTATION | 6 Months Ended |
Sep. 30, 2015 | |
Basis Of Presentation [Abstract] | |
BASIS OF PRESENTATION | NOTE 1 – BASIS OF PRESENTATION These financial statements of America Resources Exploration, Inc., formerly Alazzio Entertainment Corp. (“the Company"), have been prepared in accordance with accounting principles generally accepted in the United States of America (U.S. GAAP). In the opinion of management, these financial statements include all adjustments, consisting only of normal recurring adjustments, necessary for a fair statement of the results for the interim periods. Certain information, accounting policies and footnote disclosures normally included in financial statements prepared in accordance with U.S. GAAP have been omitted pursuant to Securities and Exchange Commission (SEC) rules and regulations. These financial statements should be read along with the Company’s audited financial statements as of March 31, 2015. |
SUMMARY OF SIGNIFCANT ACCOUNTIN
SUMMARY OF SIGNIFCANT ACCOUNTING POLICIES | 6 Months Ended |
Sep. 30, 2015 | |
Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFCANT ACCOUNTING POLICIES | NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES As of September 30, 2015, the Company’s significant accounting policies were consistent with those discussed in the audited financial statements as of March 31, 2015. Basis of Consolidation - These consolidated financial statements include the accounts of the Company and its 94% owned subsidiary, Seabourn Oil Company, LLC. All intercompany balances and transactions have been eliminated in consolidation. Oil and Gas Properties The capitalized costs of oil and gas properties, excluding unevaluated and unproved properties, are amortized as depreciation, depletion and amortization expense using the units-of-production method based on estimated proved recoverable oil and gas reserves. The costs associated with unevaluated and unproved properties, initially excluded from the amortization base, relate to unproved leasehold acreage, wells and production facilities in progress and wells pending determination of the existence of proved reserves, together with capitalized interest costs for these projects. Unproved leasehold costs are transferred to the amortization base with the costs of drilling the related well once a determination of the existence of proved reserves has been made or upon impairment of a lease. Costs associated with wells in progress and completed wells that have yet to be evaluated are transferred to the amortization base once a determination is made whether or not proved reserves can be assigned to the property. Costs of dry wells are transferred to the amortization base immediately upon determination that the well is unsuccessful. All items classified as unproved property are assessed on a quarterly basis for possible impairment or reduction in value. Properties are assessed on an individual basis or as a group if properties are individually insignificant. The assessment includes consideration of various factors, including, but not limited to, the following: intent to drill; remaining lease term; geological and geophysical evaluations; drilling results and activity; assignment of proved reserves; and economic viability of development if proved reserves are assigned. During any period in which these factors indicate an impairment, the cumulative drilling costs incurred to date for such property and all or a portion of the associated leasehold costs are transferred to the full cost pool and become subject to amortization. Under full cost accounting rules for each cost center, capitalized costs of evaluated oil and gas properties, including asset retirement costs, less accumulated amortization and related deferred income taxes, may not exceed an amount (the "cost ceiling") equal to the sum of (a) the present value of future net cash flows from estimated production of proved oil and gas reserves, based on current prices and operating conditions, discounted at ten percent (10%), plus (b) the cost of properties not being amortized, plus (c) the lower of cost or estimated fair value of any unproved properties included in the costs being amortized, less (d) any income tax effects related to differences between the book and tax basis of the properties involved. If capitalized costs exceed this limit, the excess is charged to operations. For purposes of the ceiling test calculation, current prices are defined as the unweighted arithmetic average of the first day of the month price for each month within the 12 month period prior to the end of the reporting period. Prices are adjusted for basis or location differentials. Unless sales contracts specify otherwise, prices are held constant for the productive life of each well. Similarly, current costs are assumed to remain constant over the entire calculation period. Given the volatility of oil and gas prices, it is reasonably possible that the estimate of discounted future net cash flows from proved oil and gas reserves could change in the near term. If oil and gas prices decline in the future, even if only for a short period of time, it is possible that impairments of oil and gas properties could occur. In addition, it is reasonably possible that impairments could occur if costs are incurred in excess of any increases in the present value of future net cash flows from proved oil and gas reserves, or if properties are sold for proceeds less than the discounted present value of the related proved oil and gas reserves. Revenue Recognition Asset Retirement Obligations Inherent in the fair value calculation of an ARO are numerous assumptions and judgments including the ultimate settlement amounts, inflation factors, credit adjusted discount rates, timing of settlement, and changes in the legal, regulatory, environmental and political environments. To the extent future revisions to these assumptions impact the fair value of the existing ARO liability, a corresponding adjustment is made to the oil and gas property balance. Settlements greater than or less than amounts accrued as ARO are recorded as a gain or loss upon settlement. Capitalized Interest |
OIL AND GAS PROPERTIES
OIL AND GAS PROPERTIES | 6 Months Ended |
Sep. 30, 2015 | |
Oil and Gas Property [Abstract] | |
OIL AND GAS PROPERTIES | NOTE 2 – OIL AND GAS PROPERTIES On May 27, 2015, the Company incorporated a limited liability corporation in the State of Texas called Seabourn Oil Company, LLC (“Seabourn LLC”) for the purpose of acquiring certain oil and gas leases. On May 27, 2015 Seabourn completed the acquisition of the leases from Nelaco Operating Company, Inc., a company controlled by Mr. Joe Seabourn, a member of our board of directors. Under the terms of the assignment and bill of sale Seabourn LLC acquired a 100% working interest and an 80% net revenue interest in a total of 960 acres located in two tracts in Callahan County, Texas. Under the terms of the agreements Mr. Seabourn retains a 6% ownership interest in Seabourn LLC. The Company capitalized this property at a nominal value of $100 in respect of the transaction due to the fact that Mr. Seabourn was unable to provide historical cost for the acquired lease land. On June 10, 2015, the Company entered into an Asset Purchase Agreement (the “Asset Purchase Agreement”) with Zheng Xiangwu (“Zheng”), a resident of Guang Dong Province, China, and the Company’s controlling shareholder ( see Note 5 On June 11, 2015 the Company entered into various assignment agreements for the acquisition of multiple oil and gas leases and ORR’s as set out in the table below. On July 6 and July 9, 2015 respectively the Company concluded Asset Purchase Agreements with respect to the aforementioned assignments whereunder the Company issued a total of 650,000 shares of its common stock to Mr. Zheng. The Company valued the transaction at the market price of the shares as at the date of issue, or $0.15 per share for a total value of $97,500. The Company capitalized the historical cost of the acquired assets totaling $51,263 and recorded a loss on acquisition of $46,237. Name of The Property Type of Property Location June 11th , 2015 Ellis County Overriding Royalty Int. Oklahoma June 11th , 2015 Hemphill County Overriding Royalty Int Texas June 11th , 2015 Madison County Wellbore Interest Texas June 11th , 2015 Shelby County Wellbore Interest Texas June 11th , 2015 Emergy County Lease Purchase Utah On August 13, 2015 the Company entered into an Asset Purchase Agreement with Inceptus Resources, LLC whereunder the Company acquired a 78% net revenue interest in 200 acres located in Callahan County, Texas, and a 78% net revenue interest in 522 acres also located in Callahan County, Texas. In respect of the acquired leases the Company issued a total of 500,000 shares of common stock on the closing date, August 19, 2015 which shares were valued at market price on the date of the transaction, totaling $448,500, which amount was capitalized. As at September 30, 2015 the Company evaluated the capitalized value of the leases and determined to impair the amount in full due to the fact that the Company had no historical cost basis for the leases, and no immediate development plans for the lease land. A total of $448,500 has been expensed as Impairment loss on oil and gas lease in the current quarter. During the period the Company completed various workovers and other improvements to certain of its existing wellbores, which amounts totaling $76,944 were capitalized under Proved Properties. |
ASSET RETIREMENT OBLIGATIONS
ASSET RETIREMENT OBLIGATIONS | 6 Months Ended |
Sep. 30, 2015 | |
Asset Retirement Obligation Disclosure [Abstract] | |
ASSET RETIREMENT OBLIGATIONS | NOTE 3 – ASSET RETIREMENT OBLIGATIONS The Company has asset retirement obligations for any wells that are permanently removed from service. The primary obligations involve the removal and disposal of surface equipment, plugging and abandoning the wells and site restoration. For the purpose of determining the fair value of ARO incurred during the three-month period ended September 30, 2015, the Company used the following assumptions. Inflation Rate 3% Estimated asset life 20 years Credit adjusted risk free interest rate 18% The following table shows the change in the Company’s ARO during the six month period ended September30, 2015: Asset retirement obligations at April 1, 2015 $ - Asset retirement obligations incurred 9,075 Accretion expense 89 Asset retirement obligations at September 30, 2015 $ 8,986 |
INCOME TAXES
INCOME TAXES | 6 Months Ended |
Sep. 30, 2015 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | NOTE 4 – INCOME TAXES The Company estimates its annual effective income tax rate in recording its quarterly provision for income taxes in the various jurisdictions in which the Company operates. Statutory tax rate changes and other significant or unusual items are recognized as discrete items in the quarter in which they occur. The Company recorded no income tax expense for the six-month period ended September 30, 2015 because the Company estimates it will record no income tax expense for the fiscal year ended March 31, 2016. The Company recorded no income tax expense for the fiscal year ended March 31, 2015. The Company has a valuation allowance that fully offsets net deferred tax assets. |
COMMON STOCK
COMMON STOCK | 6 Months Ended |
Sep. 30, 2015 | |
Stockholders' Equity Note [Abstract] | |
COMMON STOCK | NOTE 5 – COMMON STOCK On April 16, 2015, the Company filed a Certificate of Amendment with the Nevada Secretary of State whereby it amended its Articles of Incorporation by increasing the Company's authorized number of shares of common stock from 75 million to 300 million and increasing all of its issued and outstanding shares of common stock at a ratio of fifteen (15) shares for every one (1) share held. All share amounts in these financial statements have been adjusted to reflect this stock split. On June 12, 2015, Company issued 4,000,000 shares of common stock related to the acquisition of oil and gas property to ( see Note 2 On June 12, 2015, the Company accepted a Subscription Agreement for the sale of up to 2.55 million shares of its common stock from the Company’s majority shareholder, Rise Fast. No underwriters were utilized in connection with this sale of securities. The Subscription Agreement provides that the shares shall be sold as follows: (i) upon execution thereof, the purchase irrevocably agrees to purchase 1million at $0.15 per share; (ii) within sixty (60) days of the date of the Subscription Agreement, the purchaser has the right to purchase an additional 750,000 shares at the price of $0.20 per share; and (iii) within one hundred twenty (120) days of the date of the Subscription Agreement, the purchaser has the right to purchase an additional 800,000 shares at the price of $0.20 per share. On July 23, 2015, the Company approved the issuance of 1,000,000 shares of common stock for cash proceeds of $150,000. The shares were issued subsequent to the period covered by this report. Between July 6 and July 9, 2015 the Company issued a further 650,000 shares of common stock to Mr. Zheng Xiangwu related to the acquisition of certain lease land and ORR’s. ( see Note 2 On August 19, 2015 the Company issued a total of 500,000 shares to Hans Johnson, owner of Inceptus Resources LLC in respect of the acquisition of certain lease lands. ( see Note 2 As at September 30, 2015 the Company had a total of 130,550,000 shares issued and outstanding. |
LOANS PAYABLE - RELATED PARTY
LOANS PAYABLE - RELATED PARTY | 6 Months Ended |
Sep. 30, 2015 | |
Debt Disclosure [Abstract] | |
LOANS PAYABLE - RELATED PARTY | NOTE 6 – LOANS PAYABLE – RELATED PARTY On August 10, 2015 the Company received loan proceeds of $60,000 from the Company’s majority shareholder, Rise Fast which amount bears interest at a rate of 5% per annum and is due and payable on December 31, 2017. On September 1, 2015 the Company received a further $50,000 in loan proceeds from Rise Fast which amount bears interest at 5% per annum and is due and payable on December 31, 2017. As at September 30, 2015 the Company accrued interest expenses of $708 with respect to a total of $110,000 in principal outstanding. |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 6 Months Ended |
Sep. 30, 2015 | |
Related Party Transactions [Abstract] | |
RELATED PARTY TRANSACTIONS | NOTE 7 – RELATED PARTY TRANSACTIONS On April 3, 2015, the Company accepted the resignations of Dmitri Kapsumun as the sole officer of the Company and as a member of the Company's board of directors. Concurrently the Company appointed Mr. Huang Yu as sole officer and director. On June 12, 2015 the Company appointed Joe Seabourn and Robert Wiener to the Company’s Board of Directors. On June 24, 2015 the Company approved a consulting contract with Mr. Joe Seabourn, a member of the Company’s Board of Directors, for a monthly fee of $3,000, payable on the first of each month, commencing July 1, 2015. During the period ended September 30, 2015 Mr. Seabourn was paid $9,000 under the terms of the contract. On September 26, 2015 Mr. Huang Yu, a member of the Company’s Board of Directors was appointed Chief Financial Officer. |
OTHER EVENTS
OTHER EVENTS | 6 Months Ended |
Sep. 30, 2015 | |
Other Events [Abstract] | |
OTHER EVENTS | NOTE 8 - OTHER EVENTS On August 21, 2015 the Company appointed Mr. Mark Corrao as the Company’s Chief Financial Officer. Mr. Corrao will receive fees of $2,500 per month in consideration for his services as CFO. On September 26, 2015 the Company terminated Mr. Corrao’s position and consulting contract. |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 6 Months Ended |
Sep. 30, 2015 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | NOTE 7 – SUBSEQUENT EVENTS Effective October 1, 2015 the Company entered into an amendment to the consulting agreement with Mr. Joe Seabourn, member of the Company’s Board of Directors. Under the terms of the Amendment, Mr. Seabourn shall cease charging a monthly fee for services and accepted 1,000,000 shares of the Company’s common stock as consideration for services between October 2015 and June 30, 2016. |
SUMMARY OF SIGNIFCANT ACCOUNT17
SUMMARY OF SIGNIFCANT ACCOUNTING POLICIES (Policies) | 6 Months Ended |
Sep. 30, 2015 | |
Accounting Policies [Abstract] | |
Basis of Consolidation | Basis of Consolidation These consolidated financial statements include the accounts of the Company and its 94% owned subsidiary, Seabourn Oil Company, LLC. All intercompany balances and transactions have been eliminated in consolidation. |
Oil and Gas Properties | Oil and Gas Properties The capitalized costs of oil and gas properties, excluding unevaluated and unproved properties, are amortized as depreciation, depletion and amortization expense using the units-of-production method based on estimated proved recoverable oil and gas reserves. The costs associated with unevaluated and unproved properties, initially excluded from the amortization base, relate to unproved leasehold acreage, wells and production facilities in progress and wells pending determination of the existence of proved reserves, together with capitalized interest costs for these projects. Unproved leasehold costs are transferred to the amortization base with the costs of drilling the related well once a determination of the existence of proved reserves has been made or upon impairment of a lease. Costs associated with wells in progress and completed wells that have yet to be evaluated are transferred to the amortization base once a determination is made whether or not proved reserves can be assigned to the property. Costs of dry wells are transferred to the amortization base immediately upon determination that the well is unsuccessful. All items classified as unproved property are assessed on a quarterly basis for possible impairment or reduction in value. Properties are assessed on an individual basis or as a group if properties are individually insignificant. The assessment includes consideration of various factors, including, but not limited to, the following: intent to drill; remaining lease term; geological and geophysical evaluations; drilling results and activity; assignment of proved reserves; and economic viability of development if proved reserves are assigned. During any period in which these factors indicate an impairment, the cumulative drilling costs incurred to date for such property and all or a portion of the associated leasehold costs are transferred to the full cost pool and become subject to amortization. Under full cost accounting rules for each cost center, capitalized costs of evaluated oil and gas properties, including asset retirement costs, less accumulated amortization and related deferred income taxes, may not exceed an amount (the "cost ceiling") equal to the sum of (a) the present value of future net cash flows from estimated production of proved oil and gas reserves, based on current prices and operating conditions, discounted at ten percent (10%), plus (b) the cost of properties not being amortized, plus (c) the lower of cost or estimated fair value of any unproved properties included in the costs being amortized, less (d) any income tax effects related to differences between the book and tax basis of the properties involved. If capitalized costs exceed this limit, the excess is charged to operations. For purposes of the ceiling test calculation, current prices are defined as the unweighted arithmetic average of the first day of the month price for each month within the 12 month period prior to the end of the reporting period. Prices are adjusted for basis or location differentials. Unless sales contracts specify otherwise, prices are held constant for the productive life of each well. Similarly, current costs are assumed to remain constant over the entire calculation period. Given the volatility of oil and gas prices, it is reasonably possible that the estimate of discounted future net cash flows from proved oil and gas reserves could change in the near term. If oil and gas prices decline in the future, even if only for a short period of time, it is possible that impairments of oil and gas properties could occur. In addition, it is reasonably possible that impairments could occur if costs are incurred in excess of any increases in the present value of future net cash flows from proved oil and gas reserves, or if properties are sold for proceeds less than the discounted present value of the related proved oil and gas reserves. |
Revenue Recognition | Revenue Recognition |
Asset Retirement Obligations | Asset Retirement Obligations Inherent in the fair value calculation of an ARO are numerous assumptions and judgments including the ultimate settlement amounts, inflation factors, credit adjusted discount rates, timing of settlement, and changes in the legal, regulatory, environmental and political environments. To the extent future revisions to these assumptions impact the fair value of the existing ARO liability, a corresponding adjustment is made to the oil and gas property balance. Settlements greater than or less than amounts accrued as ARO are recorded as a gain or loss upon settlement. |
Capitalized Interest | Capitalized Interest |
ASSET RETIREMENT OBLIGATIONS (T
ASSET RETIREMENT OBLIGATIONS (Tables) | 6 Months Ended |
Sep. 30, 2015 | |
Asset Retirement Obligation Disclosure [Abstract] | |
Schedule of fair value of ARO | For the purpose of determining the fair value of ARO incurred during the three-month period ended September 30, 2015, the Company used the following assumptions. Inflation Rate 3% Estimated asset life 20 years Credit adjusted risk free interest rate 18% |
Schedule of change in ARO | Asset retirement obligations at April 1, 2015 $ - Asset retirement obligations incurred 9,075 Accretion expense 89 Asset retirement obligations at September 30, 2015 $ 8,986 |
SUMMARY OF SIGNIFCANT ACCOUNT19
SUMMARY OF SIGNIFCANT ACCOUNTING POLICIES (Detail Textuals) | Sep. 30, 2015 |
Accounting Policies [Abstract] | |
Ownership percent in Seabourn Oil Company, LLC | 94.00% |
OIL AND GAS PROPERTIES (Detail
OIL AND GAS PROPERTIES (Detail Textuals) | Jul. 09, 2015USD ($)$ / sharesshares | Jun. 12, 2015shares | Jun. 10, 2015USD ($)aWellshares | Aug. 19, 2015USD ($)shares | Sep. 30, 2015USD ($) | Sep. 30, 2015USD ($) | Aug. 13, 2015a | May. 27, 2015USD ($)a |
Oil And Gas Properties [Line Items] | ||||||||
Impairment loss on oil and gas leases | $ 448,500 | $ 448,500 | ||||||
Amount capitalized under proved properties | $ 76,944 | $ 76,944 | ||||||
Mr. Zheng Xiangwu | ||||||||
Oil And Gas Properties [Line Items] | ||||||||
Number of shares issued | shares | 650,000 | 4,000,000 | ||||||
Seabourn Oil Company, LLC | ||||||||
Oil And Gas Properties [Line Items] | ||||||||
Total acres of land | a | 960 | |||||||
Percentage of working interest acquired | 100.00% | |||||||
Percentage of net revenue interest | 80.00% | |||||||
Seabourn Oil Company, LLC | Mr. Joe Seabourn | ||||||||
Oil And Gas Properties [Line Items] | ||||||||
Percentage of ownership interest held | 6.00% | |||||||
Capitalized nominal value of property | $ 100 | |||||||
Asset Purchase Agreement | Mr. Zheng Xiangwu | ||||||||
Oil And Gas Properties [Line Items] | ||||||||
Number of shares issued | shares | 650,000 | 4,000,000 | ||||||
Value of shares issued | $ 97,500 | $ 160,000 | ||||||
Shares issued, price per share | $ / shares | $ 0.15 | |||||||
Total acres of land | a | 714 | |||||||
Number of working wells | Well | 2 | |||||||
Total number of wells | Well | 7 | |||||||
Capitalized nominal value of property | $ 51,263 | |||||||
Loss on acquisition | $ 46,237 | |||||||
Asset Purchase Agreement | Inceptus Resources, LLC | ||||||||
Oil And Gas Properties [Line Items] | ||||||||
Number of shares issued | shares | 500,000 | |||||||
Value of shares issued | $ 448,500 | |||||||
Total acres of land | a | 200 | |||||||
Percentage of net revenue interest | 78.00% | |||||||
Net revenue interest percent acquired in another area | 78.00% | |||||||
Area of land specified for net revenue interest | a | 522 |
ASSET RETIREMENT OBLIGATIONS (D
ASSET RETIREMENT OBLIGATIONS (Details) | 3 Months Ended |
Sep. 30, 2015 | |
Asset Retirement Obligation Disclosure [Abstract] | |
Inflation Rate | 3.00% |
Estimated asset life | 20 years |
Credit adjusted risk free interest rate | 18.00% |
ASSET RETIREMENT OBLIGATIONS 22
ASSET RETIREMENT OBLIGATIONS (Details 1) | 6 Months Ended |
Sep. 30, 2015USD ($) | |
Asset Retirement Obligation Disclosure [Abstract] | |
Asset retirement obligations at April 1, 2015 | |
Asset retirement obligations incurred | $ 9,075 |
Accretion expense | 89 |
Asset retirement obligations at September 30, 2015 | $ 8,986 |
COMMON STOCK (Detail Textuals)
COMMON STOCK (Detail Textuals) | Jul. 09, 2015shares | Jun. 12, 2015$ / sharesshares | Aug. 19, 2015shares | Jul. 23, 2015USD ($)shares | Sep. 30, 2015USD ($)shares | Sep. 30, 2014USD ($) | Mar. 31, 2015shares | |
Stockholders Equity Note [Line Items] | ||||||||
Prior amendment on common stock share authorized | 75,000,000 | |||||||
Common stock, shares authorized | [1] | 300,000,000 | 300,000,000 | |||||
Common shares, stock split, conversion ratio | 15 | |||||||
Proceeds from sale of common stock | $ | $ 150,000 | $ 22,719 | ||||||
Common stock, shares issued | [1] | 130,550,000 | 125,400,000 | |||||
Common stock, shares outstanding | [1] | 130,550,000 | 125,400,000 | |||||
Subscription Agreement | ||||||||
Stockholders Equity Note [Line Items] | ||||||||
Sale of stock description of transaction | The Subscription Agreement provides that the shares shall be sold as follows: (i) upon execution thereof, the purchase irrevocably agrees to purchase 1million at $0.15 per share; (ii) within sixty (60) days of the date of the Subscription Agreement, the purchaser has the right to purchase an additional 750,000 shares at the price of $0.20 per share; and (iii) within one hundred twenty (120) days of the date of the Subscription Agreement, the purchaser has the right to purchase an additional 800,000 shares at the price of $0.20 per share. | |||||||
Shares issued for cash | 1,000,000 | |||||||
Proceeds from sale of common stock | $ | $ 150,000 | |||||||
Subscription Agreement | Maximum | ||||||||
Stockholders Equity Note [Line Items] | ||||||||
Sale of stock | 2,550,000 | |||||||
Subscription Agreement | Upon execution thereof | ||||||||
Stockholders Equity Note [Line Items] | ||||||||
Sale of stock | 1,000,000 | |||||||
Sale of stock, price per share | $ / shares | $ 0.15 | |||||||
Subscription Agreement | Within sixty (60) days | ||||||||
Stockholders Equity Note [Line Items] | ||||||||
Sale of stock | 750,000 | |||||||
Sale of stock, price per share | $ / shares | $ 0.20 | |||||||
Subscription Agreement | Within one hundred twenty (120) days | ||||||||
Stockholders Equity Note [Line Items] | ||||||||
Sale of stock | 800,000 | |||||||
Sale of stock, price per share | $ / shares | $ 0.20 | |||||||
Mr. Zheng | ||||||||
Stockholders Equity Note [Line Items] | ||||||||
Number of shares issued for acquisition of property | 650,000 | 4,000,000 | ||||||
Mr. Zheng | Rise Fast | ||||||||
Stockholders Equity Note [Line Items] | ||||||||
Number of common shares held | 90,000,000 | |||||||
Ownership percentage of issued and outstanding common stock | 68.94% | |||||||
Inceptus Resources, LLC | Hans Johnson | ||||||||
Stockholders Equity Note [Line Items] | ||||||||
Number of shares issued for acquisition of property | 500,000 | |||||||
[1] | All common share amounts and per share amounts in these financial statements reflect the 15-for-1 split of the issued and outstanding shares of common stock of the Company, effective April 29, 2015, including retroactive adjustment of common share amounts. See Note 5. |
LOANS PAYABLE RELATED PARTY (
LOANS PAYABLE RELATED PARTY (Detail Textuals) - USD ($) | Sep. 01, 2015 | Aug. 10, 2015 | Sep. 30, 2015 | Sep. 30, 2014 |
Debt Instrument [Line Items] | ||||
Loan proceeds | $ 110,000 | $ 6,250 | ||
Accrued interest expenses | 708 | |||
Amount of principle outstanding | $ 110,000 | |||
Rise Fast | ||||
Debt Instrument [Line Items] | ||||
Loan proceeds | $ 50,000 | $ 60,000 | ||
Interest rate on loan | 5.00% | 5.00% |
RELATED PARTY TRANSACTIONS (Det
RELATED PARTY TRANSACTIONS (Detail Textuals) - Mr. Joe Seabourn - USD ($) | 1 Months Ended | 6 Months Ended |
Jun. 24, 2015 | Sep. 30, 2015 | |
Related Party Transaction [Line Items] | ||
Monthly fees for consulting contract | $ 3,000 | |
Consulting contract fees paid | $ 9,000 |
OTHER EVENTS (Detail Textuals)
OTHER EVENTS (Detail Textuals) | Aug. 21, 2015USD ($) |
Mr. Mark Corrao | |
Other Events [Line Items] | |
Fees receive per month in consideration for services | $ 2,500 |
SUBSEQUENT EVENTS (Detail Textu
SUBSEQUENT EVENTS (Detail Textuals) | Oct. 01, 2015shares |
Subsequent Event | Consulting Agreement | Mr. Joe Seabourn | |
Subsequent Event [Line Items] | |
Common stock issued as consideration for services | 1,000,000 |