PetroGas (PTCO) 10-Q 22 Feb 16 2016 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	Dec. 31, 2015	Jan. 21, 2016
Document And Entity Information [Abstract]
Entity Registrant Name	PETROGAS COMPANY
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	Dec. 31, 2015
Amendment Flag	false
Document Fiscal Year Focus	2,016
Document Fiscal Period Focus	Q3

BALANCE SHEET (Unaudited)

BALANCE SHEET (Unaudited) - USD ($)	Dec. 31, 2015	Mar. 31, 2015
Current assets
Cash and cash equivalents	$ 37	$ 5,971
Other current assets	27,582
Total current assets	27,619	5,971
Oil and gas, on the basis of full cost accounting
Proved properties	219,376
Overriding Royalty Interests	45,328
Unproved Property	6,035
Total assets	298,358	5,971
Current liabilities
Accounts payable	9,253	$ 400
Other liabilities	$ 10,100
Other AP
Accrued interest	$ 1,225	$ 5,600
Total current liabilities	20,578	6,000
Long-Term liabilities
Asset retirement obligations	9,075
Related Party Note Payable	54,020
Total liabilities	$ 83,673	$ 6,000
Commitments and contingencies
Stockholders' (deficit) equity
Common stock, par value $0.001; 300,000,000 shares authorized 132,550,000 and 130,550,000 shares issued and outstanding as of December 31, 2015 and September 30, 2015, respectively	$ 15,510	$ 8,360
Additional paid in capital	855,872	21,159
Retained deficit	(656,696)	(29,548)
Total stockholders' (deficit) equity	214,686	(29)
Total liabilities and stockholders' (deficit) equity	$ 298,359	$ 5,971

BALANCE SHEET (Unaudited) (Pare

BALANCE SHEET (Unaudited) (Parentheticals) - $ / shares	Dec. 31, 2015	Mar. 31, 2015
Statement of Financial Position [Abstract]
Common stock, par value (in dollars per share)	$ 0.001	$ 0.001
Common stock, shares authorized	300,000,000	300,000,000
Common stock, shares issued	132,550,000	130,550,000
Common stock, shares outstanding	132,550,000	130,550,000

STATEMENT OF OPERATIONS

STATEMENT OF OPERATIONS - USD ($)	3 Months Ended		9 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2015	Dec. 31, 2014
Income Statement [Abstract]
Revenues
Operating expenses
Lease operating expense	$ 4,042		$ 48,656
Accretion expense	18		107
Total operating expense	4,060		48,763
General and administrative expenses	28,590	$ 1,565	124,499	$ 22,826
Total other expense	3,279		498,725
Net loss	$ (35,929)	$ (1,565)	$ (671,987)	$ (22,826)
Net loss per share - basic and diluted (in dollars per share)
Weighted average shares outstanding - basic and diluted (in shares)	131,550,000	8,346,087	129,365,478	6,908,945

STATEMENT OF CASH FLOWS (Unaudi

STATEMENT OF CASH FLOWS (Unaudited) - USD ($)	9 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Cash flows from operating activities
Net loss	$ (671,987)	$ (22,826)
Adjustments to reconcile net loss to net cash from operating activities:
Loss on disposal of asset	3,278
Asset retirement obligation accretion	107
Impairment of oil and gas leases	448,500
Loss on acquisition of royalty interest on unproven property	46,238
Share based compensation	30,600
Change in operating assets and liabilities:
Accounts payable	8,854	100
Other liabilities	5,117
Prepaid expenses	(13,078)
Materials and supplies	8,753
Other Liabilities	708
Net cash from operating activities	(132,910)	(22,726)
Cash flow from investing activities
Improvements to proven oil and gas assets	(77,044)
Cash flows from financing activities
Proceeds from sale of common stock	150,000	23,519
Loan payable	54,020	6,250
Net cash from financing activities	204,020	29,769
Net change in cash and cash equivalents	(5,934)	7,043
Cash and cash equivalents Beginning of period	5,971	178
Cash and cash equivalents End of period	$ 37	7,221
Non-Cash investing and financing activities:
Issuance of common stock for acquisition of oil and gas		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
Issuance of common stock for employee compensation		30,600
Asset retirement obligation incurred		$ 9,075

BASIS OF PRESENTATION

BASIS OF PRESENTATION	9 Months Ended
	Dec. 31, 2015
Basis Of Presentation [Abstract]
BASIS OF PRESENTATION	NOTE 1 – BASIS OF PRESENTATION These financial statements of PetroGas Company, formerly America Resources Exploration, Inc. (“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 unaudited financial statements as of June 30, 2015.

SUMMARY OF SIGNIFCANT ACCOUNTIN

SUMMARY OF SIGNIFCANT ACCOUNTING POLICIES	9 Months Ended
	Dec. 31, 2015
Accounting Policies [Abstract]
SUMMARY OF SIGNIFCANT ACCOUNTING POLICIES	NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES As of December 31,2015, the Company’s significant accounting policies were consistent with those discussed in the unaudited financial statements as of September 30, 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 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 ), whereby the Company issued 4 million shares of its common stock in exchange for rights to certain oil and gas leases located in Frio and Atascosa Counties, Texas, consisting of a total of 714 total acres of land, two (2) working wells and a total of seven (7) wells (the “Leases”). The 4 million shares were valued at Zheng’s historical cost totalling $160,000. The transaction closed on June 12, 2015. 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. Assignment Date Name of The Property Type of Property Location June 11 th , 2015 Ellis County Overriding Royalty Int. Oklahoma June 11 th , 2015 Hemphill County Overriding Royalty Int Texas June 11 th , 2015 Madison County Wellbore Interest Texas June 11 th , 2015 Shelby County Wellbore Interest Texas June 11 th , 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 $ 77,044 were capitalized under Proved Properties.

ASSET RETIREMENT OBLIGATIONS

ASSET RETIREMENT OBLIGATIONS	9 Months Ended
	Dec. 31, 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 December 31, 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 three-month period ended December 31, 2015: Asset retirement obligations at December 31, 2015 $8,986 Asset retirement obligations incurred - Accretion expense 18 Asset retirement obligations at December 31, 2015 $8,968 Depletion Recording of depletion is going to begin when the company will be on the production stage. Depreciation Recording of depreciation is going to begin when the company will be on the production stage.

NOTES PAYABLE

NOTES PAYABLE	9 Months Ended
	Dec. 31, 2015
Debt Disclosure [Abstract]
NOTES PAYABLE	NOTE 4 - NOTES PAYABLE The Company entered into promissory note on August 10, 2015 with Rise Fast Limited in the face amount of $60,000 with the interest on the outstanding principal amount at the rate of five percent (5%) per annum, compounded quarterly; provided however if an event of Default occurs the interest rate will increase to a rate of eight percent (8%) per annum, compounded quarterly, so long as the Event if Default continues. The Company entered into promissory note on September 1, 2015 with Rise Fast Limited in the face amount of $50,000 with the interest on the outstanding principal amount at the rate of five percent (5%) per annum, compounded quarterly; provided however if an event of Default occurs the interest rate will increase to a rate of eight percent (8%) per annum, compounded quarterly, so long as the Event if Default continues. The Company reimbursed an amount of $55,980 on the promissory notes due to Rise Fast Limited.

INCOME TAXES

INCOME TAXES	9 Months Ended
	Dec. 31, 2015
Income Tax Disclosure [Abstract]
INCOME TAXES	NOTE 5 – 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 three-month period ended December 31, 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	9 Months Ended
	Dec. 31, 2015
Stockholders' Equity Note [Abstract]
COMMON STOCK	NOTE 6 – 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 purchaser 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 On November 2, 2015, the Company issued 1,000,000 shares of common stock to Mr. Joe Seabourn as part of an employee compensation agreement. As at December 31,2015 the Company had a total of 132,550,000 shares issued and outstanding.

LOANS PAYABLE - RELATED PARTY

LOANS PAYABLE - RELATED PARTY	9 Months Ended
	Dec. 31, 2015
Debt Disclosure [Abstract]
LOANS PAYABLE - RELATED PARTY	NOTE 7 – 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 DISCLOSURE

RELATED PARTY DISCLOSURE	9 Months Ended
	Dec. 31, 2015
Related Party Transactions [Abstract]
RELATED PARTY TRANSACTIONS	NOTE 8 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 12, 2015, Company issued 4,000,000 shares of common stock related to the acquisition of oil and gas property to ( see Note 2 ) Zheng Xiangwu. Mr. Zheng is the owner of Rise Fast Limited, a Hong Kong corporation (“Rise Fast”), which is the majority shareholder of the Company. Rise Fast owns 91,000,000 shares of the Company’s common stock representing 68.94% of the Company’s issued and outstanding common stock. 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, of which Rise Fast has purchased a total of 1,000,000 shares ( see Note 6). 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. 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 ). On September 26, 2015 Mr. Huang Yu, a member of the Company’s Board of Directors was appointed Chief Financial Officer. 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.

OTHER EVENTS

OTHER EVENTS	9 Months Ended
	Dec. 31, 2015
Other Events [Abstract]
OTHER EVENTS	NOTE 9 The Company evaluated subsequent events and concluded that no other events have occurred that would require recognition or disclosure in the financial statements.

SUBSEQUENT EVENTS

SUBSEQUENT EVENTS	9 Months Ended
	Dec. 31, 2015
Subsequent Events [Abstract]
SUBSEQUENT EVENTS	NOTE 10 On January 20, 2016, the Company filed Articles of Merger with the Nevada SOS whereby it entered into a statutory merger with its wholly-owned subsidiary, PetroGas Company pursuant to Nevada Revised Statutes 92A.200 et. seq. The effect of such merger is that the Company was the surviving entity and changed its name to “America Resources Exploration Inc.” On January 20, 2016, PetroGas Company filed a Certificate of Amendment with the Nevada Secretary of State (the “Nevada SOS”) whereby decreasing all of its issued and outstanding shares of common stock at a ratio of one (1) share for every one hundred (100) shares held. The Company’s Board of Directors approved this amendment on January 13, 2016 and shareholders holding 68.65% of the Company’s issued and outstanding shares approved this amendment via a written consent executed on January 14, 2016. On February 1, 2016, the Company filed an Issuer Company-Related Action Notification Form with FINRA requesting that the aforementioned forward split and name change be affected in the market. The Company also requested that its ticker symbol be changed to “PTCO”. Such notification form is being reviewed by FINRA.

SUMMARY OF SIGNIFCANT ACCOUNT16

SUMMARY OF SIGNIFCANT ACCOUNTING POLICIES (Policies)	9 Months Ended
	Dec. 31, 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 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 ), whereby the Company issued 4 million shares of its common stock in exchange for rights to certain oil and gas leases located in Frio and Atascosa Counties, Texas, consisting of a total of 714 total acres of land, two (2) working wells and a total of seven (7) wells (the “Leases”). The 4 million shares were valued at Zheng’s historical cost totalling $160,000. The transaction closed on June 12, 2015. 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. Assignment Date Name of The Property Type of Property Location June 11 th , 2015 Ellis County Overriding Royalty Int. Oklahoma June 11 th , 2015 Hemphill County Overriding Royalty Int Texas June 11 th , 2015 Madison County Wellbore Interest Texas June 11 th , 2015 Shelby County Wellbore Interest Texas June 11 th , 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 $ 77,044 were capitalized under Proved Properties.

ASSET RETIREMENT OBLIGATIONS (T

ASSET RETIREMENT OBLIGATIONS (Tables)	9 Months Ended
	Dec. 31, 2015
Asset Retirement Obligation Disclosure [Abstract]
Schedule of fair value of ARO	3% Estimated asset life 20 years Credit adjusted risk free interest rate 18%
Schedule of change in ARO	Asset retirement obligations at December 31, 2015 $8,986 Asset retirement obligations incurred - Accretion expense 18 Asset retirement obligations at December 31, 2015 $8,968

SUMMARY OF SIGNIFCANT ACCOUNT18

SUMMARY OF SIGNIFCANT ACCOUNTING POLICIES (Detail Textuals)	Jul. 09, 2015USD ($)$ / sharesshares	Jun. 10, 2015USD ($)aWellshares	Aug. 19, 2015USD ($)shares	Dec. 31, 2015USD ($)	Aug. 13, 2015a	May. 27, 2015USD ($)a
Business Acquisition [Line Items]
Impairment loss on oil and gas leases				$ 448,500
Amount capitalized under proved properties				$ 77,044
Mr. Zheng Xiangwu
Business Acquisition [Line Items]
Capitalized nominal value of property	$ 51,263
Number of shares issued | shares	650,000
Value of shares issued	$ 97,500
Shares issued, price per share | $ / shares	$ 0.15
Loss on acquisition	$ 46,237
Seabourn Oil Company, LLC ("Seabourn LLC")
Business Acquisition [Line Items]
Ownership percent in Seabourn Oil Company, LLC				94.00%
Nelaco Operating Company, Inc. | Seabourn Oil Company, LLC ("Seabourn LLC")
Business Acquisition [Line Items]
Percentage of working interest acquired						100.00%
Percentage of net revenue interest						80.00%
Total acres of land | a						960
Percentage of ownership interest held						6.00%
Capitalized nominal value of property						$ 100
Asset Purchase Agreement | Mr. Zheng Xiangwu
Business Acquisition [Line Items]
Total acres of land | a		714
Number of shares issued | shares		4,000,000
Number of working wells | Well		2
Total number of wells | Well		7
Value of shares issued		$ 160,000
Asset Purchase Agreement | Inceptus Resources, LLC
Business Acquisition [Line Items]
Percentage of net revenue interest					78.00%
Total acres of land | a					200
Number of shares issued | shares			500,000
Value of shares issued			$ 448,500
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
	Dec. 31, 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 20

ASSET RETIREMENT OBLIGATIONS (Details 1) - USD ($)	3 Months Ended	9 Months Ended
	Dec. 31, 2015	Dec. 31, 2015
Asset Retirement Obligation Disclosure [Abstract]
Asset retirement obligations at December 31, 2015	$ 8,986
Asset retirement obligations incurred
Accretion expense	$ 18	$ 107
Asset retirement obligations at December 31, 2015	$ 8,968	$ 8,968

NOTES PAYABLE (Detail Textuals)

NOTES PAYABLE (Detail Textuals) - Rise Fast - Promissory note - USD ($)	Sep. 01, 2015	Aug. 10, 2015	Dec. 31, 2015
Debt Instrument [Line Items]
Notes payable, face amount	$ 50,000	$ 60,000
Interest rate on loan	5.00%	5.00%
Debt default increase interest rate	8.00%	8.00%
Notes payable reimbursed amount			$ 55,980

COMMON STOCK (Detail Textuals)

COMMON STOCK (Detail Textuals)	Nov. 02, 2015USD ($)	Jul. 09, 2015shares	Jun. 12, 2015$ / sharesshares	Aug. 19, 2015shares	Jul. 23, 2015USD ($)shares	Dec. 31, 2015USD ($)shares	Dec. 31, 2014USD ($)	Mar. 31, 2015shares
Stockholders Equity Note [Line Items]
Prior amendment on common stock share authorized						75,000,000
Common stock, shares authorized						300,000,000		300,000,000
Common shares, stock split, conversion ratio						15
Proceeds from sale of common stock | $						$ 150,000	$ 23,519
Common stock, shares issued						132,550,000		130,550,000
Common stock, shares outstanding						132,550,000		130,550,000
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 purchaser 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 | 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		650,000
Mr. Zheng | Rise Fast
Stockholders Equity Note [Line Items]
Number of shares issued			4,000,000
Number of common shares held			91,000,000
Ownership percentage of issued and outstanding common stock			68.94%
Mr. Zheng | Subscription Agreement | Rise Fast
Stockholders Equity Note [Line Items]
Sale of stock			1,000,000
Mr. Zheng | Subscription Agreement | Maximum | Rise Fast
Stockholders Equity Note [Line Items]
Sale of stock			2,550,000
Inceptus Resources, LLC | Hans Johnson
Stockholders Equity Note [Line Items]
Number of shares issued				500,000
Mr. Joe Seabourn
Stockholders Equity Note [Line Items]
Number of common shares issued part of employee compensation agreement | $	$ 1,000,000

LOANS PAYABLE - RELATED PARTY (

LOANS PAYABLE - RELATED PARTY (Detail Textuals) - USD ($)	Sep. 01, 2015	Aug. 10, 2015	Dec. 31, 2015	Sep. 30, 2015
Debt Instrument [Line Items]
Loan proceeds		$ 60,000
Accrued interest expenses				$ 708
Amount of principle outstanding			$ 54,020	$ 110,000
Rise Fast
Debt Instrument [Line Items]
Loan proceeds	$ 50,000	$ 60,000

RELATED PARTY DISCLOSURE (Detai

RELATED PARTY DISCLOSURE (Detail Textuals) - USD ($)	Oct. 01, 2015	Jul. 09, 2015	Jun. 12, 2015	Aug. 19, 2015	Jun. 24, 2015	Sep. 30, 2015
Mr. Joe Seabourn | Consulting contract
Related Party Transaction [Line Items]
Monthly fees for consulting contract					$ 3,000
Consulting contract fees paid						$ 9,000
Mr. Joe Seabourn | Amended Consulting Agreement
Related Party Transaction [Line Items]
Common stock issued as consideration for services	1,000,000
Inceptus Resources, LLC | Hans Johnson
Related Party Transaction [Line Items]
Number of shares issued				500,000
Mr. Zheng
Related Party Transaction [Line Items]
Number of shares issued		650,000
Mr. Zheng | Rise Fast
Related Party Transaction [Line Items]
Number of shares issued			4,000,000
Ownership percentage of issued and outstanding common stock			68.94%
Number of common shares held			91,000,000
Mr. Zheng | Rise Fast | Subscription Agreement
Related Party Transaction [Line Items]
Sale of stock			1,000,000
Mr. Zheng | Rise Fast | Subscription Agreement | Maximum
Related Party Transaction [Line Items]
Sale of stock			2,550,000

SUBSEQUENT EVENTS (Detail Textu

SUBSEQUENT EVENTS (Detail Textuals) - Subsequent Event	1 Months Ended
	Jan. 20, 2016	Jan. 13, 2016
Subsequent Event [Line Items]
Decreasing ratio of issued and outstanding shares of common stock	one (1) share for every one hundred (100)
Shareholders holding percent of issued and outstanding shares		68.65%