Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | |
Sep. 30, 2016 | Dec. 29, 2016 | |
Document And Entity Information | ||
Entity Registrant Name | Barrel Energy Inc. | |
Entity Central Index Key | 1,631,463 | |
Document Type | 10-K | |
Document Period End Date | Sep. 30, 2016 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --09-30 | |
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 | $ 0 | |
Entity Common Stock, Shares Outstanding | 10,804,000 | |
Document Fiscal Period Focus | FY | |
Document Fiscal Year Focus | 2,016 |
BALANCE SHEETS
BALANCE SHEETS - USD ($) | Sep. 30, 2016 | Sep. 30, 2015 |
Current assets: | ||
Cash and cash equivalents | $ 330 | $ 455 |
Total current assets | 330 | 455 |
Oil lease - unproved | 45,583 | 44,738 |
Total assets | 45,913 | 45,193 |
Current liabilities: | ||
Accounts payable and accrued expense | 24,656 | 7,762 |
Advance from shareholder | 19,023 | 15,683 |
Convertible note - related party | 2,127 | 2,088 |
Convertible notes | 74,037 | 55,923 |
Total current liabilities | 119,843 | 81,456 |
Long-term convertible note payable | 16,742 | |
Total liabilities | 119,843 | 98,198 |
Stockholders' deficit: | ||
Preferred stock, $0.001 par value, 5,000,000 authorized, zero issued and outstanding | ||
Common stock, $0.001 par value, 70,000,000 authorized, 10,804,000 and 10,000,000 issued and outstanding, respectively | 9,775 | 8,989 |
Additional paid in capital | 19,064 | |
Accumulated other comprehensive income | 4,603 | 5,500 |
Accumulated deficit | (107,372) | (67,494) |
Total stockholders" deficit | (73,930) | (53,005) |
Total liabilities and stockholders' deficit | $ 45,913 | $ 45,193 |
BALANCE SHEETS (Parenthetical)
BALANCE SHEETS (Parenthetical) - $ / shares | Sep. 30, 2016 | Sep. 30, 2015 |
Stockholders" equity (deficit): | ||
Common Stock, Par value | $ 0.001 | $ 0.001 |
Common Stock, Authorized | 70,000,000 | 70,000,000 |
Common Stock, Issued | 10,804,000 | 10,000,000 |
Common Stock, Outstanding | 10,804,000 | 10,000,000 |
Preferred stock, Par value | $ 0.001 | $ 0.001 |
Preferred stock, Authorized | 5,000,000 | 5,000,000 |
Preferred stock, Issued | 0 | 0 |
Preferred stock, Outstanding | 0 | 0 |
STATEMENTS OF OPERATIONS AND CO
STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS - USD ($) | 12 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | |
Operating expenses: | ||
General and administrative expense | $ 33,339 | $ 37,274 |
Loss from operations | (33,339) | (37,274) |
Other income (expense) | ||
Interest expense | (7,159) | (7,510) |
Currency loss | 620 | (569) |
Total other income (expense) | (6,539) | (8,079) |
Net loss | (39,878) | (45,353) |
Foreign currency translation adjustment | (897) | 5,105 |
Comprehensive loss | $ (40,775) | $ (40,248) |
Net loss per common share, basic and diluted | $ 0 | $ 0 |
Weighted average number of common shares outstanding, basic and diluted | 10,463,666 | 10,000,000 |
STATEMENTS OF CHANGES IN STOCKH
STATEMENTS OF CHANGES IN STOCKHOLDERS’ DEFICIT - USD ($) | Common Stock | Additional Paid-In Capital | Accumulated Deficit | Other Comprehensive Income | Total |
Beginning Balance, Shares at Sep. 30, 2014 | 10,000,000 | ||||
Beginning Balance, Amount at Sep. 30, 2014 | $ 8,989 | $ (22,141) | $ 395 | $ (12,757) | |
Change due to currency translation | 5,105 | 5,105 | |||
Net loss | (45,353) | (45,353) | |||
Ending Balance, Shares at Sep. 30, 2015 | 10,000,000 | ||||
Ending Balance, Amount at Sep. 30, 2015 | $ 8,989 | (67,494) | 5,500 | (53,005) | |
Change due to currency translation | (897) | (897) | |||
Common stock issued for cash, shares | 768,000 | ||||
Common stock issued for cash, amount | $ 750 | 18,200 | 18,950 | ||
Common stock issued for compensation, shares | 36,000 | ||||
Common stock issued for compensation, amount | $ 36 | 864 | 900 | ||
Net loss | (39,878) | (39,878) | |||
Ending Balance, Shares at Sep. 30, 2016 | 10,804,000 | ||||
Ending Balance, Amount at Sep. 30, 2016 | $ 9,775 | $ 19,064 | $ (107,372) | $ 4,603 | $ (73,930) |
STATEMENTS OF CASH FLOWS
STATEMENTS OF CASH FLOWS - USD ($) | 12 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | |
Cash flows from operating activities: | ||
Net loss | $ (39,878) | $ (45,353) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Stock based compensation | 900 | |
Changes in operating assets and liabilities: | ||
Accounts payable and accrued expense | 16,894 | 7,510 |
Net cash used in operating activities | (22,084) | (37,843) |
Cash flows from financing activities: | ||
Proceeds from sale of common stock | 18,950 | |
Advances from related party | 3,340 | 15,683 |
Proceeds from convertible note payable | 16,742 | |
Proceeds from convertible note payable - related party | 2,088 | |
Net cash provided by financing activities | 22,290 | 34,513 |
Effects of currency translation | (331) | 2,015 |
Net increase (decrease) in cash | (125) | (1,315) |
Cash - beginning of year | 455 | 1,770 |
Cash - end of year | 330 | 455 |
SUPPLEMENT DISCLOSURES: | ||
Interest paid | ||
Income taxes paid |
NATURE OF BUSINESS
NATURE OF BUSINESS | 12 Months Ended |
Sep. 30, 2016 | |
Notes to Financial Statements | |
NOTE 1 - NATURE OF BUSINESS | Barrel Energy Inc (Barrel, the Company) was incorporated on January 27, 2014 under the laws of the State of Nevada. The Company was formed to invest in producing oil and gas properties. On September 26, 2014, the Company leased an unproven oil and gas property in the province of Alberta, Canada. |
ACCOUNTING POLICIES
ACCOUNTING POLICIES | 12 Months Ended |
Sep. 30, 2016 | |
Notes to Financial Statements | |
NOTE 2 - ACCOUNTING POLICIES | Accounting Method The Companys financial statements are prepared using the accrual method of accounting. The Company has elected a fiscal year ending on September 30. Cash and Cash Equivalents The Company considers all highly liquid investments purchased with an original maturity of three months or less to be cash equivalents. Oil and Gas Property The Company is in the process of exploring its unproved oil and natural gas properties and has not yet determined whether these properties contain reserves that are economically recoverable. The recoverability of amounts shown for oil and natural gas properties is dependent upon the discovery of economically recoverable reserves, confirmation of the Companys interest in the underlying oil and gas leases, the ability of the Company to obtain necessary financing to complete their exploration and development and future profitable production or sufficient proceeds from the disposition thereof. The Company is, therefore, unable to estimate when these costs will be included in the amortization computation. The Company uses the successful efforts method in accounting for it oil and gas properties. Unproven oil and natural gas properties are reviewed on an annual basis for impairment. Property and equipment Property and equipment are carried at the cost of acquisition and depreciated over the estimated useful lives of the assets. Costs associated with repair and maintenance is expensed as incurred. Costs associated with improvements which extend the life, increase the capacity or improve the efficiency of our property and equipment are capitalized and depreciated over the remaining life of the related asset. Gains and losses on dispositions of equipment are reflected in operations. Depreciation is provided using the straight-line method over the estimated useful lives of the assets. Foreign currency translation The Companys functional currency is in Canadian Dollars (CAD) dollars and reporting currency is in U.S. dollars. The financial statements of the Company are translated to U.S. dollars in accordance with SFAS No. 52, Foreign Currency Translation Impairment of Long-Lived Assets The Company reviews the carrying value of its long-lived assets annually or whenever events or changes in circumstances indicate that the historical cost carrying value of an asset may no longer be appropriate. The Company assesses recoverability of the asset by comparing the undiscounted future net cash flows expected to result from the asset to its carrying value. If the carrying value exceeds the undiscounted future net cash flows of the asset, an impairment loss is measured and recognized. An impairment loss is measured as the difference between the net book value and the fair value of the long-lived asset. Fair value is estimated based upon either discounted cash flow analysis or estimated salvage value. Estimates and Assumptions The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of income and expenses during the reporting period. The Companys significant estimates include the fair value of common stock issued for services. Actual results could differ from those estimates. Income Taxes Deferred tax assets and liabilities are determined based on the differences between the financial reporting and tax bases of assets and liabilities using the enacted tax rates and laws that will be in effect when the differences are expected to reverse. A valuation allowance is established when necessary to reduce deferred tax assets to the amounts expected to be realized. The Company accounts for income taxes under the provisions of Financial Accounting Standards Board) Accounting Standards Codification 740, Accounting for Income Taxes The Company classifies penalties and interest related to unrecognized tax benefits as income tax expense in the Statements of Operations. Basic and diluted net loss per share Basic and diluted net loss per share calculations are calculated on the basis of the weighted average number of common shares outstanding during the year. Diluted loss per share calculations include the dilutive effect of common stock. Basic and diluted net loss per share is the same due to the absence of common stock equivalents. Recent Accounting Pronouncements Because the Company has been recently reorganized and has not yet transacted any business, the new accounting standards have no significant impact on the financial statements and related disclosures. As new accounting pronouncements are issued, the Company will adopt those that are applicable under the circumstances. |
GOING CONCERN
GOING CONCERN | 12 Months Ended |
Sep. 30, 2016 | |
Notes to Financial Statements | |
NOTE 3 - GOING CONCERN | The Companys financial statements are prepared using accounting principles generally accepted in the United States of America applicable to a going concern that contemplates the realization of assets and liquidation of liabilities in the normal course of business. The Company, as shown in the accompanying balance sheets, has total assets of $45,913 and an accumulated deficit of $107,372 as of September 30, 2016, compared to an accumulated deficit of $67,494 as of September 30, 2015. The Company has not established any source of revenue to cover its operating costs. These factors raise substantial doubt about the companys ability to continue as a going concern. The Company will engage in very limited activities that must be satisfied in cash until a source of funding is secured. The Company will offer noncash consideration and seek equity lines as a means of financing its operations. If the Company is unable to obtain revenue producing contracts or financing or if the revenue or financing it does obtain is insufficient to cover any operating losses it may incur, it may substantially curtail or terminate its operations or seek other business opportunities through strategic alliances, acquisitions or other arrangements that may dilute the interests of existing stockholders. The financial statements do not include any adjustments that might result from the outcome of this uncertainty. |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Sep. 30, 2016 | |
Notes to Financial Statements | |
NOTE 4 - INCOME TAXES | The Company did not have taxable income for the years ended September 30, 2016 or 2015.The Companys deferred tax assets consisted of the following as of September 30, 2016, and 2015: 2016 2015 Net operating loss carry forward 37,580 23,623 Valuation allowance (37,580 ) (23,623 ) Net deferred tax asset $ - $ - The Company had a net loss of $39,878 for the year ended September 30, 2016 and $45,353 for the year ended September 30, 2015. As of September 30, 2016, the Companys net operating loss carry forward was $107,372 that will begin to expire in the year 2035. All tax years from inception of the Company are open to review by appropriate taxing authorities. |
COMMON STOCK
COMMON STOCK | 12 Months Ended |
Sep. 30, 2016 | |
Notes to Financial Statements | |
NOTE 5 - COMMON STOCK | During the year ended September 30, 2016 the Company sold 768,000 shares of common stock at $0.025 per share with a value of $ 18,750 to 52 individuals for cash. During the year ended September 30, 2016 the Company issued 36,000 shares of common stock at $0.025 per share with a value of $900 to one entity for services. |
OIL AND GAS LEASE
OIL AND GAS LEASE | 12 Months Ended |
Sep. 30, 2016 | |
Notes to Financial Statements | |
NOTE 6 - OIL AND GAS LEASE | On September 26, 2014, the Company purchased a producing oil property lease for USD $45,738 (CAD $60,000) in the province of Alberta, Canada. The lease consists of land and rights leases T95 R15 W5M 11,13,14,15 for well Invasion Elm Bison 10-15-95-15W5M. The working interest is 51% of net production. As of September 30, 2016, the property had not recorded any production and its reserves were unproven. |
CONVERTIBLE NOTE
CONVERTIBLE NOTE | 12 Months Ended |
Sep. 30, 2016 | |
Notes to Financial Statements | |
NOTE 7 - CONVERTIBLE NOTE | On July 1, 2014, the Company issued a USD $56,978 (CAD $75,000) convertible note for cash. The note bears annual interest rate of 9.5% and matures on December 31, 2015. The note, plus accrued interest, is convertible by the holder, in part or whole, until the date of maturity into common stock of the Company at CAD one cent ($0.01) per share. On October 20, 2014, the Company issued a USD $17,059 (CAD $22,454) convertible note for cash. The note bears annual interest rate of 9.5% and matures on December 31, 2016. The note, plus accrued interest, is convertible by the holder, in part or whole, until the date of maturity into common stock of the Company at CAD one cent ($0.01) per share. On December 1, 2014, the Company issued to a related party, who is an officer and director of the Company, a convertible note for US$ 2,127 (CAD $2,800). The note bears an interest rate of 5% per annum and matures on December 31, 2015. The note holder may until the date of maturity convert the principal and accrued interest into common stock of the Company at the rate of $0.025 CAD per share. As of September 30, 2016, the convertible debts outstanding was US $76,164 plus accrued interest of US $15,003 for a total liability of $91,166. |
RELATED PARTY TRANSACTION
RELATED PARTY TRANSACTION | 12 Months Ended |
Sep. 30, 2016 | |
Notes to Financial Statements | |
NOTE 8 - RELATED PARTY TRANSACTION | During the year ended September 30, 2016, an officer and director of the Company advances the Company funds so the Company could pay their various obligations. The funds are payable on demand and bear no interest. As of September 30, 2016 and 2015, the total amount due to the officer and director is US$ 19,023 and 15,683, respectively. On December 1, 2014, the Company issued to a related party, who is an officer and director of the Company, a convertible note for US$ 2,127 (CAD $2,800). The note bears an interest rate of 5% per annum and matures on December 31, 2016. The note holder may until the date of maturity convert the principal and accrued interest into common stock of the Company at the rate of $0.025 CAD per share. During the year ended September 30, 2016 the Company paid a related party $3,743 in consulting fees to review potential oil and gas properties for acquisition. Our operations are currently being conducted out of the premises at 14890 66a Ave., Surrey, B.C. V3S 9Y6 Canada. Mr. Sangha makes these premises available to us rent-free. We consider our current principal office space arrangement adequate and will reassess our needs based upon the future growth of the company. |
ACCOUNTING POLICIES (Policies)
ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Sep. 30, 2016 | |
Accounting Policies Policies | |
Accounting Method | The Companys financial statements are prepared using the accrual method of accounting. The Company has elected a fiscal year ending on September 30. |
Cash and Cash Equivalents | The Company considers all highly liquid investments purchased with an original maturity of three months or less to be cash equivalents. |
Oil and Gas Property | The Company is in the process of exploring its unproved oil and natural gas properties and has not yet determined whether these properties contain reserves that are economically recoverable. The recoverability of amounts shown for oil and natural gas properties is dependent upon the discovery of economically recoverable reserves, confirmation of the Companys interest in the underlying oil and gas leases, the ability of the Company to obtain necessary financing to complete their exploration and development and future profitable production or sufficient proceeds from the disposition thereof. The Company is, therefore, unable to estimate when these costs will be included in the amortization computation. The Company uses the successful efforts method in accounting for it oil and gas properties. Unproven oil and natural gas properties are reviewed on an annual basis for impairment. |
Property and equipment | Property and equipment are carried at the cost of acquisition and depreciated over the estimated useful lives of the assets. Costs associated with repair and maintenance is expensed as incurred. Costs associated with improvements which extend the life, increase the capacity or improve the efficiency of our property and equipment are capitalized and depreciated over the remaining life of the related asset. Gains and losses on dispositions of equipment are reflected in operations. Depreciation is provided using the straight-line method over the estimated useful lives of the assets. |
Foreign currency translation | The Companys functional currency is in Canadian Dollars (CAD) dollars and reporting currency is in U.S. dollars. The financial statements of the Company are translated to U.S. dollars in accordance with SFAS No. 52, Foreign Currency Translation |
Impairment of Long-Lived Assets | The Company reviews the carrying value of its long-lived assets annually or whenever events or changes in circumstances indicate that the historical cost carrying value of an asset may no longer be appropriate. The Company assesses recoverability of the asset by comparing the undiscounted future net cash flows expected to result from the asset to its carrying value. If the carrying value exceeds the undiscounted future net cash flows of the asset, an impairment loss is measured and recognized. An impairment loss is measured as the difference between the net book value and the fair value of the long-lived asset. Fair value is estimated based upon either discounted cash flow analysis or estimated salvage value. |
Estimates and Assumptions | The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of income and expenses during the reporting period. The Companys significant estimates include the fair value of common stock issued for services. Actual results could differ from those estimates. |
Income Taxes | Deferred tax assets and liabilities are determined based on the differences between the financial reporting and tax bases of assets and liabilities using the enacted tax rates and laws that will be in effect when the differences are expected to reverse. A valuation allowance is established when necessary to reduce deferred tax assets to the amounts expected to be realized. The Company accounts for income taxes under the provisions of Financial Accounting Standards Board) Accounting Standards Codification 740, Accounting for Income Taxes The Company classifies penalties and interest related to unrecognized tax benefits as income tax expense in the Statements of Operations. |
Basic and diluted net loss per share | Basic and diluted net loss per share calculations are calculated on the basis of the weighted average number of common shares outstanding during the year. Diluted loss per share calculations include the dilutive effect of common stock. Basic and diluted net loss per share is the same due to the absence of common stock equivalents. |
Recent Accounting Pronouncements | Because the Company has been recently reorganized and has not yet transacted any business, the new accounting standards have no significant impact on the financial statements and related disclosures. As new accounting pronouncements are issued, the Company will adopt those that are applicable under the circumstances. |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Sep. 30, 2016 | |
Income Taxes Tables | |
Deferred tax assets | 2016 2015 Net operating loss carry forward 37,580 23,623 Valuation allowance (37,580 ) (23,623 ) Net deferred tax asset $ - $ - |
NATURE OF BUSINESS (Details Nar
NATURE OF BUSINESS (Details Narrative) | 12 Months Ended |
Sep. 30, 2016 | |
Nature Of Business Details Narrative | |
State Country Name | State of Nevada |
Date of Incorporation | Jan. 27, 2014 |
GOING CONCERN (Details Narrativ
GOING CONCERN (Details Narrative) - USD ($) | Sep. 30, 2016 | Sep. 30, 2015 |
Going Concern Details Narrative | ||
Total assets | $ 45,913 | $ 45,193 |
Accumulated deficit | $ (107,372) | $ (67,494) |
INCOME TAXES (Details)
INCOME TAXES (Details) - USD ($) | Sep. 30, 2016 | Sep. 30, 2015 |
Income Taxes Details | ||
Net operating loss carry forward | $ 37,580 | $ 23,623 |
Valuation allowance | (37,580) | (23,623) |
Net deferred tax asset |
INCOME TAXES (Details Narrative
INCOME TAXES (Details Narrative) - USD ($) | 12 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | |
Income Taxes Details Narrative | ||
Net loss | $ (39,878) | $ (45,353) |
Net operating loss carry forward | $ 107,372 | |
Expiry year | 2,035 |
COMMON STOCK (Details Narrative
COMMON STOCK (Details Narrative) | 12 Months Ended |
Sep. 30, 2016USD ($)Number$ / sharesshares | |
Common Stock Details Narrative | |
Number of common shares sold | shares | 768,000 |
Number of common shares sold, per share | $ / shares | $ 0.025 |
Number of common shares sold, value | $ | $ 18,750 |
Number of common shares sold, individuals for cash | Number | 52 |
Issuance of common shares | shares | 36,000 |
Issuance of common shares, per share | $ / shares | $ 0.025 |
Issuance of common shares, value | $ | $ 900 |
Issuance of common shares, entity for service | Number | 1 |
OIL AND GAS LEASE (Details Narr
OIL AND GAS LEASE (Details Narrative) - USD ($) | Sep. 30, 2016 | Sep. 26, 2014 |
Oil And Gas Lease Details Narrative | ||
Producing oil property lease, cost | $ 45,738 | |
Working interest rate | 51.00% |
CONVERTIBLE NOTE (Details Narra
CONVERTIBLE NOTE (Details Narrative) - USD ($) | Dec. 31, 2016 | Sep. 30, 2016 | Dec. 31, 2015 |
Convertible debt outstanding | $ 76,164 | ||
Total liability | 91,166 | ||
Accrued interest | $ 15,003 | ||
On July 1, 2014 [Member] | |||
Convertible debt outstanding | $ 56,978 | ||
Interest rate | 9.50% | ||
On October 20, 2014 [Member] | |||
Convertible debt outstanding | $ 17,059 | ||
Interest rate | 9.50% | ||
On December 1, 2014 [Member] | |||
Convertible debt outstanding | $ 2,127 | ||
Interest rate | 5.00% |
RELATED PARTY TRANSACTION (Deta
RELATED PARTY TRANSACTION (Details Narrative) - USD ($) | 12 Months Ended | ||
Sep. 30, 2016 | Dec. 31, 2016 | Sep. 30, 2015 | |
Advance from shareholder | $ 19,023 | $ 15,683 | |
Convertible debt outstanding | 76,164 | ||
Consulting fees | $ 3,743 | ||
On December 1, 2014 [Member] | |||
Convertible debt outstanding | $ 2,127 | ||
Interest rate | 5.00% |