Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Mar. 31, 2018 | Jul. 20, 2018 | Sep. 30, 2017 | |
Document and Entity Information [Abstract] | |||
Entity Registrant Name | PetroGas Co | ||
Entity Central Index Key | 1,609,258 | ||
Document Type | 10-K | ||
Document Period End Date | Mar. 31, 2018 | ||
Amendment Flag | false | ||
Current Fiscal Year End Date | --03-31 | ||
Trading Symbol | ptco | ||
Is Entity a Well-known Seasoned Issuer? | No | ||
Is Entity a Voluntary Filer? | No | ||
Is Entity's Reporting Status Current? | Yes | ||
Entity Filer Category | Smaller Reporting Company | ||
Entity Public Float | $ 410,544 | ||
Entity Common Stock, Shares Outstanding | 30,099,230 | ||
Document Fiscal Period Focus | FY | ||
Document Fiscal Year Focus | 2,018 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) | Mar. 31, 2018 | Mar. 31, 2017 |
Current Assets | ||
Cash and cash equivalents | $ 5,176 | $ 1,016 |
Prepaid expenses | 129 | |
Total Current Assets | 5,176 | 1,145 |
Oil and gas, on the basis of full cost accounting | ||
Unproved Property | 29,158 | 28,023 |
TOTAL ASSETS | 34,334 | 29,168 |
Current Liabilities | ||
Accounts payable and accrued liabilities | 20,550 | 15,042 |
Accrued interest | 8,238 | 2,346 |
Advances from related party | 28,541 | 4,385 |
Total Current Liabilities | 57,329 | 21,773 |
Long-term liabilities | ||
Asset retirement obligations | 83,580 | 83,580 |
Convertible promissory notes, net of discount of $77,968 | 68,035 | |
Promissory note | 42,683 | 240,683 |
Total long-term liabilities | 194,298 | 324,263 |
TOTAL LIABILITIES | 251,627 | 346,036 |
SHAREHOLDERS' DEFICIT | ||
Common stock: 300,000,000 authorized; $0.001 par value 30,099,230 and 296,839 shares issued and outstanding as of March 31, 2018 and March 31, 2017, respectively | 30,099 | 297 |
Additional paid in capital | 1,266,198 | 1,026,312 |
Accumulated deficit | (1,513,590) | (1,343,477) |
TOTAL SHAREHOLDERS' DEFICIT | (217,293) | (316,868) |
TOTAL LIABILITIES & SHAREHOLDERS' EQUITY | $ 34,334 | $ 29,168 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) | Mar. 31, 2018 | Mar. 31, 2017 |
Consolidated Balance Sheets | ||
Discount of convertible promissory notes (in dollars) | $ 77,968 | $ 77,968 |
Common stock, shares authorized | 300,000,000 | 300,000,000 |
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Common stock, shares issued | 30,099,230 | 296,839 |
Common stock, shares outstanding | 30,099,230 | 296,839 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) | 12 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Consolidated Statements Of Operations | ||
Royalty Revenue | $ 1,502 | $ 2,484 |
OPERATING EXPENSES | ||
General and administrative expense | 56,902 | 105,994 |
TOTAL OPERATING EXPENSES | 56,902 | 105,994 |
Loss from Operations | (55,400) | (103,510) |
OTHER EXPENSES (REVENUES) | ||
Gain on sale of royalty interest and unproven property | (900) | |
Interest expense | 115,613 | 1,793 |
Total other expenses | 114,713 | 1,793 |
NET LOSS | $ (170,113) | $ (105,303) |
NET LOSS PER SHARE, BASIC AND DILUTED | $ (0.01) | $ (0.67) |
WEIGHTED AVERAGE SHARES OUTSTANDING, BASIC AND DILUTED | 14,669,335 | 157,811 |
STATEMENTS OF CHANGES IN STOCKH
STATEMENTS OF CHANGES IN STOCKHOLDERS' (DEFICIT) EQUITY - USD ($) | Common Stock | Additional Paid-In Capital | Accumulated Deficit | Total |
Beginning Balance, Shares at Mar. 31, 2016 | 1,326,281 | |||
Beginning Balance, Amount at Mar. 31, 2016 | $ 1,326 | $ 970,037 | $ (1,238,174) | $ (266,811) |
Shares issued for conversion, Shares | 28,357,650 | |||
Shares issued for conversion, Amount | $ 28,358 | 26,888 | 55,246 | |
Net loss | (105,303) | (105,303) | ||
Ending Balance, Shares at Mar. 31, 2017 | 29,683,931 | |||
Ending Balance, Amount at Mar. 31, 2017 | $ 29,684 | 996,925 | (1,343,477) | (316,868) |
Shares issued for conversion, Shares | 29,800,000 | |||
Shares issued for conversion, Amount | $ 29,800 | 52,200 | 82,000 | |
Reverse split, 100:1, Shares | (29,384,702) | |||
Reverse split, 100:1, Amount | $ (29,385) | 29,385 | ||
Convertible notes debt discount | 187,688 | 187,688 | ||
Net loss | (170,113) | (170,113) | ||
Ending Balance, Shares at Mar. 31, 2018 | 30,099,229 | |||
Ending Balance, Amount at Mar. 31, 2018 | $ 30,099 | $ 1,266,198 | $ (1,513,590) | $ (217,293) |
CONSOLIDATED STATEMENT OF CASH
CONSOLIDATED STATEMENT OF CASH FLOWS - USD ($) | 12 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net Loss | $ (170,113) | $ (105,303) |
Amortization of debt discount | 109,720 | |
Gain on sale of unproved oil and gas properties | (900) | |
Changes in operating assets and liabilities: | ||
Prepaid expenses | 129 | (129) |
Accrued interest | 5,892 | |
Accounts payable and accrued liabilities | 5,508 | 7,836 |
Net cash used in Operating Activities | (49,764) | (97,596) |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Purchase (Sale) and improvements of unproven oil and gas assets | (235) | (28,023) |
Net cash used in investing activities | (235) | (28,023) |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Advances from related party | 24,156 | (114,048) |
Promissory note | 240,683 | |
Issuance of convertible promissory notes | 30,003 | |
Net cash provided by Financing Activities | 54,159 | 126,635 |
Net increase in cash and cash equivalents | 4,160 | 1,016 |
Cash and cash equivalents, beginning of period | 1,016 | |
Cash and cash equivalents, end of period | 5,176 | 1,016 |
Supplemental cash flow information | ||
Cash paid for interest | ||
Cash paid for taxes | ||
Non-cash transactions: | ||
Issuance of common stock to settle certain convertible notes | $ 269,688 | $ 55,245 |
DESCRIPTION OF BUSINESS AND BAS
DESCRIPTION OF BUSINESS AND BASIS OF PERSENTATION | 12 Months Ended |
Mar. 31, 2018 | |
Notes to Financial Statements | |
NOTE 1 - DESCRIPTION OF BUSINESS AND BASIS OF PERSENTATION | Organization and nature of business PetroGas Company (Formerly America Resources Exploration Inc. (the “Company”)), was incorporated in the State of Nevada on January 24, 2014. The Company was incorporated under the name Alazzio Entertainment Corp. and changed its name to America Resources Exploration Inc. on April 17, 2015. Subsequently, on January 20, 2016, the Company changed its name to PetroGas Company. On June 12, 2015, the Company completed an acquisition of working interests in certain oil & gas properties. All share amounts in these financial statements have been adjusted to reflect this stock split. |
GOING CONCERN
GOING CONCERN | 12 Months Ended |
Mar. 31, 2018 | |
Notes to Financial Statements | |
NOTE 2 - GOING CONCERN | The Company had no significant revenues from the inception through March 31, 2018. As of March 31, 2018, the Company has an accumulated deficit of $1,513,590. We will need additional working capital to service debt and for ongoing operations, which raises substantial doubt about its ability to continue as a going concern. Management of the Company has developed a strategy to meet operational shortfalls which may include equity funding, short term or long term financing or debt financing, to enable the Company to reach profitable operations. The accompanying consolidated financial statements do not include any adjustments that might be necessary should we be unable to continue as a going concern. If we fail to generate positive cash flow or obtain additional financing, when required, we may have to modify, delay, or abandon some or all of our business and expansion plans. |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Mar. 31, 2018 | |
Notes to Financial Statements | |
NOTE 3 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | The financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”). Because a precise determination of many assets and liabilities is dependent upon future events, the preparation of financial statements for a period necessarily involves the use of estimates, which have been made using careful judgment. Actual results may vary from these estimates. The financial statements have, in management’s opinion, been properly prepared within reasonable limits of materiality and within the framework of the significant accounting policies summarized below: 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. Use of Estimates The preparation of consolidated financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. These estimates are reviewed periodically, and, as adjustments become necessary, they are reported in earnings in the period in which they become known. The estimates on depreciation were based on the estimated useful lives of the Company’s assets. Any estimates during the period have had an immaterial effect on earnings. Cash and Cash Equivalents Cash and cash equivalents consist of commercial accounts and interest-bearing bank deposits and are carried at cost, which approximates current value. Items are considered to be cash equivalents if the original maturity is three months or less. Oil and Gas Properties – Full Cost Method The Company follows the full cost accounting method to account for oil and natural gas properties, whereby costs incurred in the acquisition, exploration and development of oil and gas reserves are capitalized. Such costs include lease acquisition, geological and geophysical activities, rentals on nonproducing leases, drilling, completing and equipping of oil and gas wells and administrative costs directly attributable to those activities and asset retirement costs. Disposition of oil and gas 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 to operations. 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. Revenue Recognition Oil and gas sales result from undivided interests held by the Company in oil and gas properties and royalty revenues. Sales of oil and gas produced from oil and gas operations are recognized when the product is delivered to the purchaser and title transfers to the purchaser. Charges for gathering and transportation are included in production expenses. Revenue from royalties is recognized as they are earned, when collection is reasonably assured. Royalty revenue is recorded in the same period as the sales that generate the royalty payment. Asset Retirement Obligations The Company records a liability for asset retirement obligations (“ARO”) associated with its oil and gas wells when those assets are placed in service. The corresponding cost is capitalized as an asset and included in the carrying amount of oil and gas properties and is depleted over the useful life of the properties. Subsequently, the ARO liability is accreted to its then-present value. 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. Fair Value of Financial Instruments The Company measures its financial assets and liabilities in accordance with the requirements of ASC 820, Fair Value Measurements and Disclosures. ASC 820 clarifies the definition of fair value, prescribes methods for measuring fair value, and establishes a fair value hierarchy to classify the inputs used in measuring fair value as follows: Level 1 - Inputs are unadjusted quoted prices in active markets for identical assets or liabilities available at the measurement date. Level 2 - Inputs are unadjusted quoted prices for similar assets and liabilities in active markets, quoted prices for identical or similar assets and liabilities in markets that are not active, inputs other than quoted prices that are observable, and inputs derived from or corroborated by observable market data. Level 3 - Inputs are unobservable inputs which reflect the reporting entity’s own assumptions on what assumptions the market participants would use in pricing the asset or liability based on the best available information, The carrying value of all assets and liabilities approximated their fair values as March 31, 2018 and March 31, 2017, respectively. Stock-Based Compensation The Company follows the guidance included in ASC 718 Compensation-Stock Compensation (“ASC 718”) using the modified prospective transition method. The Company recognizes compensation expense in the financial statements for share-based awards based on the grant date fair value of those awards. Income Taxes The Company accounts for income taxes pursuant to ASC 740, Income Taxes- Earnings or Loss Per Share In accordance with ASC Topic 280 – “Earnings Per Share”, the basic loss per common share is computed by dividing net loss available to common stockholders by the weighted average number of common shares outstanding. Diluted loss per common share is computed similar to basic loss per common share except that the denominator is increased to include the number of additional common shares that would have been outstanding if the potential common shares had been issued and if the additional common shares were dilutive. Recent Accounting Pronouncements The Company has implemented all new accounting pronouncements that are in effect and that may impact its financial statements and does not believe that there are any other new accounting pronouncements that have been issued that might have a material impact on its financial position or results of operations. The Company regularly reviews and analyses the recent accounting pronouncements. |
OIL AND GAS PROPERTIES
OIL AND GAS PROPERTIES | 12 Months Ended |
Mar. 31, 2018 | |
Notes to Financial Statements | |
NOTE 4 - OIL AND GAS PROPERTIES | During the year ended March 31, 2018, the Company did not capitalize any Unproved Property. Based on the Company’s analysis, no impairment has been recorded on the Unproved Property. On November 3, 2017, the Company concluded the sale of its Reklaw working oil and gas interests in Cherokee County, Texas to Erebor Resources, LLC, a Texas limited liability company for $1,000, for which it has previously acquired for $100. As of March 31, 2018, and March 31, 2017, a total of $29,158, and $28,023 is recorded as Unproved Property, respectively. |
ASSET RETIREMENT OBLIGATIONS
ASSET RETIREMENT OBLIGATIONS | 12 Months Ended |
Mar. 31, 2018 | |
Notes to Financial Statements | |
NOTE 5 - 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 fiscal year ended March 31, 2016, the Company used the following assumptions. Inflation Rate 3 % Estimated asset life 20 years Credit adjusted risk free interest rate 18 % As at March 31, 2016, the Company determined to fully impair its shut in wells given a lack of production over a period in excess of two years, and the uncertainty in returning the wells to production in the future. As a result, the Company has recorded a long term liability equal to the full value of the ARO. As at March 31, 2018 and March 31, 2017, a total of $83,580 is recorded as asset retirement obligations, respectively. |
PROMISSORY NOTE
PROMISSORY NOTE | 12 Months Ended |
Mar. 31, 2018 | |
Notes to Financial Statements | |
NOTE 6 - PROMISSORY NOTE | On December 31, 2016, the Company entered into a promissory note with a majority shareholder, Rise Fast Limited, for an amount of $240,683. The promissory note bears interest at a rate of 2% per annum, and is payable on December 31, 2019. On July 10, 2017, the Company, along with the holder of the promissory note to assigned $174,000 of the promissory note to four individuals not related to the Company. Refer to Note 7 for further details. On October 6, 2017, the Company issued 24,000,000 common shares to the holder of the promissory note for the assignment of the notes of $24,000. As of March 31, 2018, the promissory note payable was $42,683 and accrued interest payable was $3,252. |
CONVERTIBLE PROMISSORY NOTES
CONVERTIBLE PROMISSORY NOTES | 12 Months Ended |
Mar. 31, 2018 | |
Notes to Financial Statements | |
NOTE 7 - CONVERTIBLE PROMISSORY NOTES | On July 10, 2017, a total of $174,000 was assigned from a promissory note to four individuals not related to the Company. Each of the convertible promissory notes has a principal value of $43,500, maturity date of July 10, 2019, bears interest at 4% per annum, and are convertible at a rate of $0.03 per share. On October 6, 2017, the four convertible promissory notes were amended to an interest rate of 0.5% per annum, the maturity date was amended to July 10, 2020, and the conversion price was amended to $0.01 per share. On October 11, 2017, four individual holders that have $174,000 of convertible promissory notes, converted a total of $58,000, or $14,500 each, for a total of 5,800,000, or 1,450,000 common shares each. A debt discount on the notes was recognized of $174,000. During the year ended March 31, 2018, a total of $96,032 of the debt discount has been amortized and recorded in interest expense. As of March 31, 2018, the unamortized amount of the debt discounts is $77,968. On December 31, 2017, the Company entered into a convertible promissory note for $9,230 with an individual not related to the Company. The convertible promissory note is due on demand, bears interest at 55% per annum, and is convertible at $0.01 per share. The debt discount of $9,230 was expensed upon issuance of the note. On March 31, 2018, the Company entered into a convertible promissory note for $20,773 with an individual not related to the Company. The convertible promissory note is due on demand, bears interest at 55% per annum, and is convertible at $0.01 per share. The debt discount of $4,458 was expensed upon issuance of the note. As of March 31, 2018, the convertible note payable was $68,035 and accrued interest payable was $3,845. |
COMMON STOCK
COMMON STOCK | 12 Months Ended |
Mar. 31, 2018 | |
Notes to Financial Statements | |
NOTE 8 - COMMON STOCK | During the year ended March 31, 2018, the Company issued 29,800,000 common shares. On July 26, 2017, the Company performed a 100:1 reverse stock split. All outstanding shares have been adjusted retrospectively. As at March 31, 2018 and March 31, 2017, the Company had a total of 30,099,229 shares issued and outstanding, respectively. |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 12 Months Ended |
Mar. 31, 2018 | |
Notes to Financial Statements | |
NOTE 9 - RELATED PARTY TRANSACTIONS | During the year ended March 31, 2018, the Company received advances totaling $24,156 from its majority shareholder, Rise Fast Limited, in order to fund ongoing operations in the normal course. As at March 31, 2018 and March 31, 2017, the Company had advances from related party of $28,541 and $4,385, respectively. |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Mar. 31, 2018 | |
Notes to Financial Statements | |
NOTE 10 - INCOME TAXES | The Company provides for income taxes under ASC 740, “ Income Taxes.” On December 22, 2017, the United States enacted the Tax Cuts and Jobs Act (the “Act”) resulting in significant modifications to existing law. The Company has considered the accounting impact of the effects of the Act during the year ended March 31, 2018 including a reduction in the corporate tax rate from 34% to 21% among other changes. The components of the Company’s deferred tax asset and reconciliation of income taxes computed at the statutory rate to the income tax amount recorded as of March 31, 2018 and 2017 are as follows: March 31, March 31, 2018 2017 Net operating loss carryforward $ 1,513,590 $ 1,343,477 Effective tax rate 21 % 34 % Deferred tax asset 317,854 456,782 Less: Valuation allowance (317,854 ) (456,782 ) Net deferred asset $ - $ - At March 31, 2018, the Company had $1,513,590 in net operating losses (“NOLs”) that may be available to offset future taxable income, which begin to expire between 2033 and 2038. In accordance with Section 382 of the U.S. Internal Revenue Code, the usage of the Company’s net operating loss carry forwards is subject to annual limitations following greater than 50% ownership changes. |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 12 Months Ended |
Mar. 31, 2018 | |
Notes to Financial Statements | |
NOTE 11 - SUBSEQUENT EVENTS | Management has evaluated subsequent events through the date these condensed financial statements were available to be issued. Based on our evaluation no other material events have occurred that require disclosure. |
SUMMARY OF SIGNIFICANT ACCOUN18
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Mar. 31, 2018 | |
Summary Of Significant Accounting Policies | |
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. |
Use of Estimates | The preparation of consolidated financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. These estimates are reviewed periodically, and, as adjustments become necessary, they are reported in earnings in the period in which they become known. The estimates on depreciation were based on the estimated useful lives of the Company’s assets. Any estimates during the period have had an immaterial effect on earnings. |
Cash and Cash Equivalents | Cash and cash equivalents consist of commercial accounts and interest-bearing bank deposits and are carried at cost, which approximates current value. Items are considered to be cash equivalents if the original maturity is three months or less. |
Oil and Gas Properties - Full Cost Method | The Company follows the full cost accounting method to account for oil and natural gas properties, whereby costs incurred in the acquisition, exploration and development of oil and gas reserves are capitalized. Such costs include lease acquisition, geological and geophysical activities, rentals on nonproducing leases, drilling, completing and equipping of oil and gas wells and administrative costs directly attributable to those activities and asset retirement costs. Disposition of oil and gas 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 to operations. 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. |
Revenue Recognition | Oil and gas sales result from undivided interests held by the Company in oil and gas properties and royalty revenues. Sales of oil and gas produced from oil and gas operations are recognized when the product is delivered to the purchaser and title transfers to the purchaser. Charges for gathering and transportation are included in production expenses. Revenue from royalties is recognized as they are earned, when collection is reasonably assured. Royalty revenue is recorded in the same period as the sales that generate the royalty payment. |
Asset Retirement Obligations | The Company records a liability for asset retirement obligations (“ARO”) associated with its oil and gas wells when those assets are placed in service. The corresponding cost is capitalized as an asset and included in the carrying amount of oil and gas properties and is depleted over the useful life of the properties. Subsequently, the ARO liability is accreted to its then-present value. 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. |
Fair Value of Financial Instruments | The Company measures its financial assets and liabilities in accordance with the requirements of ASC 820, Fair Value Measurements and Disclosures. ASC 820 clarifies the definition of fair value, prescribes methods for measuring fair value, and establishes a fair value hierarchy to classify the inputs used in measuring fair value as follows: Level 1 - Inputs are unadjusted quoted prices in active markets for identical assets or liabilities available at the measurement date. Level 2 - Inputs are unadjusted quoted prices for similar assets and liabilities in active markets, quoted prices for identical or similar assets and liabilities in markets that are not active, inputs other than quoted prices that are observable, and inputs derived from or corroborated by observable market data. Level 3 - Inputs are unobservable inputs which reflect the reporting entity’s own assumptions on what assumptions the market participants would use in pricing the asset or liability based on the best available information, The carrying value of all assets and liabilities approximated their fair values as March 31 2018 and March 31, 2017, respectively. |
Stock-Based Compensation | The Company follows the guidance included in ASC 718 Compensation-Stock Compensation (“ASC 718”) using the modified prospective transition method. The Company recognizes compensation expense in the financial statements for share-based awards based on the grant date fair value of those awards. |
Income Taxes | The Company accounts for income taxes pursuant to ASC 740, Income Taxes- |
Earnings or Loss Per Share | In accordance with ASC Topic 280 – “Earnings Per Share”, the basic loss per common share is computed by dividing net loss available to common stockholders by the weighted average number of common shares outstanding. Diluted loss per common share is computed similar to basic loss per common share except that the denominator is increased to include the number of additional common shares that would have been outstanding if the potential common shares had been issued and if the additional common shares were dilutive. |
Recent Accounting Pronouncements | The Company has implemented all new accounting pronouncements that are in effect and that may impact its financial statements and does not believe that there are any other new accounting pronouncements that have been issued that might have a material impact on its financial position or results of operations. The Company regularly reviews and analyses the recent accounting pronouncements. |
ASSET RETIREMENT OBLIGATIONS (T
ASSET RETIREMENT OBLIGATIONS (Tables) | 12 Months Ended |
Mar. 31, 2018 | |
Asset Retirement Obligations Tables Abstract | |
Schedule of assumptions of determining the fair value of ARO | Inflation Rate 3 % Estimated asset life 20 years Credit adjusted risk free interest rate 18 % |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Mar. 31, 2018 | |
Income Taxes Tables Abstract | |
Reconciliation of income taxes | March 31, March 31, 2018 2017 Net operating loss carryforward $ 1,513,590 $ 1,343,477 Effective tax rate 21 % 34 % Deferred tax asset 317,854 456,782 Less: Valuation allowance (317,854 ) (456,782 ) Net deferred asset $ - $ - |
DESCRIPTION OF BUSINESS AND B21
DESCRIPTION OF BUSINESS AND BASIS OF PERSENTATION (Details Narrative) | 12 Months Ended |
Mar. 31, 2018 | |
Description Of Business And Basis Of Persentation | |
State or Country of Incorporation | Nevada |
Date of incorporation | Jan. 24, 2014 |
GOING CONCERN (Details Narrativ
GOING CONCERN (Details Narrative) - USD ($) | Mar. 31, 2018 | Mar. 31, 2017 |
Going Concern | ||
Accumulated deficit | $ (1,513,590) | $ (1,343,477) |
SUMMARY OF SIGNIFICANT ACCOUN23
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Narrative) | 12 Months Ended |
Mar. 31, 2018 | |
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | |
Description of oil and gas properties under full cost method | 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. |
Subsidiaries [Member] | |
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | |
Ownership percentage | 94.00% |
OIL AND GAS PROPERTIES (Details
OIL AND GAS PROPERTIES (Details Narrative) - USD ($) | Nov. 03, 2017 | Mar. 31, 2018 | Mar. 31, 2017 |
Oil And Gas Properties | |||
Sale of working oil and gas | $ 1,000 | $ 235 | $ 28,023 |
Payment made to acquire working oil and gas | $ 100 | ||
Unproved Property | $ 29,158 | $ 28,023 |
ASSET RETIREMENT OBLIGATIONS (D
ASSET RETIREMENT OBLIGATIONS (Details) | 12 Months Ended |
Mar. 31, 2018 | |
Asset Retirement Obligations Details Abstract | |
Inflation Rate | 3.00% |
Estimated asset life | 20 years |
Credit adjusted risk free interest rate | 18.00% |
ASSET RETIREMENT OBLIGATIONS 26
ASSET RETIREMENT OBLIGATIONS (Details Narrative) - USD ($) | Mar. 31, 2018 | Mar. 31, 2017 |
Asset Retirement Obligations Details Narrative Abstract | ||
Asset retirement obligations | $ 83,580 | $ 83,580 |
PROMISSORY NOTE (Details Narrat
PROMISSORY NOTE (Details Narrative) | Oct. 06, 2017USD ($)shares | Jul. 10, 2017USD ($)Individual | Dec. 31, 2016USD ($) | Mar. 31, 2018USD ($)shares | Mar. 31, 2017USD ($) |
Debt Instrument [Line Items] | |||||
Number of common stock shares issued to promissory note holder | shares | 29,800,000 | ||||
Accrued interest | $ 8,238 | $ 2,346 | |||
Majority shareholder [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt amount | $ 240,683 | ||||
Interest rate | 2.00% | ||||
Debt maturity date | Dec. 31, 2019 | ||||
Promissory Note [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt amount | $ 174,000 | 42,683 | |||
Number of individuals | Individual | 4 | ||||
Number of common stock shares issued to promissory note holder | shares | 24,000,000 | ||||
Accrued interest | $ 3,252 | ||||
Common stock shares issued for assignment of notes, amount | $ 24,000 |
CONVERTIBLE PROMISSORY NOTES (D
CONVERTIBLE PROMISSORY NOTES (Details Narrative) | Oct. 11, 2017USD ($)Individualshares | Oct. 06, 2017Individual$ / shares | Jul. 10, 2017USD ($)Individual$ / shares | Mar. 31, 2018USD ($)$ / shares | Mar. 31, 2017USD ($) | Dec. 31, 2017USD ($)$ / shares |
Debt Instrument [Line Items] | ||||||
Debt discount | $ 77,968 | $ 77,968 | ||||
Debt discount amortized | 109,720 | |||||
Accrued interest | 8,238 | $ 2,346 | ||||
Convertible Notes Payable [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Debt amount | 68,035 | |||||
Accrued interest | 3,845 | |||||
Convertible Promissory Notes [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Debt amount | $ 20,773 | $ 9,230 | ||||
Interest rate | 55.00% | 55.00% | ||||
Conversion price | $ / shares | $ 0.01 | $ 0.01 | ||||
Debt discount | $ 4,458 | $ 9,230 | ||||
Convertible Promissory Notes [Member] | Four Individuals [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Debt amount | $ 174,000 | $ 174,000 | ||||
Number of individuals | Individual | 4 | 4 | ||||
Interest rate | 0.50% | 4.00% | ||||
Debt maturity date | Jul. 10, 2020 | Jul. 10, 2019 | ||||
Conversion price | $ / shares | $ 0.01 | $ 0.03 | ||||
Debt discount | $ 174,000 | 77,968 | ||||
Debt discount amortized | 96,032 | |||||
Amount of convertible promissory notes, converted | $ 58,000 | |||||
Debt conversion converted instrument, shares issued | shares | 5,800,000 | |||||
Convertible Promissory Notes [Member] | Each Individual [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Debt amount | $ 43,500 | |||||
Amount of convertible promissory notes, converted | $ 14,500 | |||||
Debt conversion converted instrument, shares issued | shares | 1,450,000 | |||||
Promissory Note [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Debt amount | $ 174,000 | 42,683 | ||||
Number of individuals | Individual | 4 | |||||
Accrued interest | $ 3,252 |
COMMON STOCK (Details Narrative
COMMON STOCK (Details Narrative) - shares | 1 Months Ended | 12 Months Ended | |
Jul. 26, 2017 | Mar. 31, 2018 | Mar. 31, 2017 | |
Common Stock Details Narrative Abstract | |||
Common stock, shares issued | 29,800,000 | ||
Value of reverse stock split | 100:1 | ||
Common stock, shares issued | 30,099,230 | 296,839 | |
Common stock, shares outstanding | 30,099,230 | 296,839 |
RELATED PARTY TRANSACTIONS (Det
RELATED PARTY TRANSACTIONS (Details Narrative) - USD ($) | 12 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Related Party Transaction [Line Items] | ||
Advances received | $ 24,156 | $ (114,048) |
Advances from related party | 28,541 | $ 4,385 |
Majority shareholder [Member] | ||
Related Party Transaction [Line Items] | ||
Advances received | $ 24,156 |
INCOME TAXES (Details)
INCOME TAXES (Details) - USD ($) | 12 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Income Taxes Details Abstract | ||
Net operating loss carryforward | $ 1,513,590 | $ 1,343,477 |
Effective tax rate | 21.00% | 34.00% |
Deferred tax asset | $ 317,854 | $ 456,782 |
Less: Valuation allowance | (317,854) | (456,782) |
Net deferred asset |
INCOME TAXES (Details Narrative
INCOME TAXES (Details Narrative) - USD ($) | 12 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Income Taxes Details Narrative Abstract | ||
Net operating losses | $ 1,513,590 | $ 1,343,477 |
Net operating losses expiration period, description | Between 2033 and 2038 | |
Description for net operating loss carry forwards usage | In accordance with Section 382 of the U.S. Internal Revenue Code, the usage of the Companyâs net operating loss carry forwards is subject to annual limitations following greater than 50% ownership changes |