ERHC Energy (ERHE) 10-Q14 Aug 142014 Q3 Quarterly reportFinancial data

Company Profile

Document_and_Entity_Informatio

Document and Entity Information	9 Months Ended
Document and Entity Information	Jun. 30, 2014	Jul. 31, 2014
Document and Entity Information [Abstract]	'	'
Entity Registrant Name	'ERHC Energy Inc	'
Entity Central Index Key	'0000799235	'
Current Fiscal Year End Date	'--09-30	'
Entity Well-known Seasoned Issuer	'No	'
Entity Voluntary Filers	'No	'
Entity Current Reporting Status	'Yes	'
Entity Filer Category	'Non-accelerated Filer	'
Entity Common Stock, Shares Outstanding	'	765,194,088
Document Fiscal Year Focus	'2014	'
Document Fiscal Period Focus	'Q3	'
Document Type	'10-Q	'
Amendment Flag	'false	'
Document Period End Date	30-Jun-14	'

UNAUDITED_CONSOLIDATED_BALANCE

UNAUDITED CONSOLIDATED BALANCE SHEETS (USD $)	Jun. 30, 2014	Sep. 30, 2013
Current assets:	'	'
Cash and cash equivalents	$2,729,828	$1,184,204
Investment in Oando Energy Resources	759,779	563,525
Deferred debt origination cost - short term	61,532	0
Prepaid expenses and other	431,517	228,881
Total current assets	3,982,656	1,976,610
Oil and gas concession fees	6,062,730	6,037,803
Furniture and equipment, net of accumulated depreciation of $353,137 and $300,303 at June 30, 2014 and September 30, 2013, respectively	149,531	202,364
Restricted certificate of deposit	0	2,186,182
Deferred debt origination cost - long term	30,580	0
Income tax receivable	2,018,533	2,018,533
Other assets	72,916	51,108
Total assets	12,316,946	12,472,600
Current liabilities:	'	'
Accounts payable and accrued liabilities	401,868	983,293
Convertible note payable, net of discount - short term	365,667	0
Derivative liability - short term	166,161	0
Total current liabilities	933,696	983,293
Convertible note payable, net of discount - long term	32,200	0
Derivative liability - long term	225,191	0
Total liabilities	1,191,087	983,293
Commitments and contingencies	'	'
Shareholders' equity:	'	'
Preferred stock, par value $0.0001; authorized 10,000,000 shares; none issued and outstanding	0	0
Common stock, par value $0.0001; authorized 3,000,000,000 shares; issued and outstanding 765,194,088 shares	76,520	76,485
Additional paid-in capital	101,080,306	101,067,084
Accumulated other comprehensive loss	-590,220	-786,475
Losses accumulated in the development stage	-89,440,747	-88,867,787
Total shareholders' equity	11,125,859	11,489,307
Total liabilities and shareholders' equity	$12,316,946	$12,472,600

UNAUDITED_CONSOLIDATED_BALANCE1

UNAUDITED CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $)	Jun. 30, 2014	Sep. 30, 2013
Current assets:	'	'
Furniture and equipment, accumulated depreciation	$353,137	$300,303
Shareholder's equity:	'	'
Preferred stock, par value (in dollars per share)	$0.00	$0.00
Preferred stock, authorized (in shares)	10,000,000	10,000,000
Preferred stock, shares issued (in shares)	0	0
Preferred stock, shares outstanding (in shares)	0	0
Common stock, par value (in dollars per share)	$0.00	$0.00
Common stock, authorized (in shares)	3,000,000,000	3,000,000,000
Common stock, issued (in shares)	765,194,088	765,194,088
Common stock, outstanding (in shares)	765,194,088	765,194,088

UNAUDITED_CONSOLIDATED_STATEME

UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS (USD $)	3 Months Ended		9 Months Ended		226 Months Ended
UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS (USD $)	Jun. 30, 2014	Jun. 30, 2013	Jun. 30, 2014	Jun. 30, 2013	Jun. 30, 2014
Costs and expenses:	'	'	'	'	'
General and administrative	$719,943	$945,670	$2,634,430	$2,802,983	$92,857,216
Exploration expenses	242,179	0	461,933	0	1,684,332
Depreciation	14,275	21,319	52,834	85,567	1,701,448
Gain on sale of partial interest on sale of concessions	0	0	-2,724,793	0	-32,827,043
Write-offs and abandonments	0	0	0	0	7,742,128
Total costs and expenses	-976,397	-966,989	-424,404	-2,888,550	-71,158,081
Other income and (expenses):	'	'	'	'	'
Interest income	1,592	854	3,804	1,752	4,857,892
Loss on change in fair value of derivatives	-16,496	0	-16,496	0	-16,496
Gain from settlements	0	0	0	0	130,178
Other income	0	0	0	0	439,827
Interest expense	-24,708	-18	-24,708	-24	-12,170,080
Loss on embedded derivatives	-111,156	0	-111,156	0	-111,156
Provision for loss on deposits	0	0	0	0	-5,292,896
Loss on extinguishment of debt	0	0	0	0	-5,749,575
Total other income and (expense)	-150,768	836	-148,556	1,728	-17,912,306
Loss before benefit (provision) for income taxes	-1,127,165	-966,153	-572,960	-2,886,822	-89,070,387
Benefit (provision) for income taxes:	'	'	'	'	'
Current	0	0	0	0	-1,330,360
Deferred	0	0	0	0	960,000
Total benefit (provision) for income taxes	0	0	0	0	-370,360
Net loss	($1,127,165)	($966,153)	($572,960)	($2,886,822)	($89,440,747)
Net loss per common share - basic and diluted (in dollars per share)	$0	$0	$0	$0	'
Weighted average number of common shares outstanding - basic and diluted (in shares)	764,917,468	764,429,260	764,871,996	747,782,323	'

UNAUDITED_CONSOLIDATED_STATEME1

UNAUDITED CONSOLIDATED STATEMENTS OF OTHER COMPREHENSIVE INCOME (LOSS) (USD $)	3 Months Ended		9 Months Ended		226 Months Ended
	Jun. 30, 2014	Jun. 30, 2013	Jun. 30, 2014	Jun. 30, 2013	Jun. 30, 2014
UNAUDITED CONSOLIDATED STATEMENTS OF OTHER COMPREHENSIVE INCOME (LOSS) [Abstract]	'	'	'	'	'
Net loss	($1,127,165)	($966,153)	($572,960)	($2,886,822)	($89,440,747)
Other comprehensive income (loss) on available for sale securities	251,088	-66,905	196,254	-37,625	-590,221
Other comprehensive loss	($876,077)	($1,033,058)	($376,706)	($2,924,447)	($90,030,968)

UNAUDITED_CONSOLIDATED_STATEME2

UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $)	9 Months Ended		226 Months Ended
UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $)	Jun. 30, 2014	Jun. 30, 2013	Jun. 30, 2014
Cash Flows From Operating Activities:	'	'	'
Net loss	($572,960)	($2,886,822)	($89,440,747)
Adjustments to reconcile net income (loss) to net cash used in operating activities:	'	'	'
Depreciation and depletion expense	52,834	85,567	1,701,447
Change in derivative liabilities	127,652	0	127,651
Provision for loss on deposits	0	0	5,292,896
Write-offs and abandonments	0	0	7,742,128
Deferred income taxes	0	0	-2,018,398
Compensatory stock options	6,957	17,856	1,363,902
Gain from settlement	0	0	-617,310
Gain on sale of partial interest in Kenya concession	-4,175,966	0	-4,175,966
Gain on sale of partial interest in DRSTP concession	0	0	-30,102,250
Amortization of beneficial conversion feature associated with convertible debt	0	0	2,793,929
Amortization of convertible debt discount	7,307	0	7,307
Amortization of debt issuance costs	10,955	0	10,955
Amortization of deferred compensation	0	0	1,257,863
Loss on extinguishment of debt	0	0	5,669,500
Stock issued for services	20,001	0	20,917,079
Stock issued for settlements	0	0	225,989
Stock issued for officer bonuses	0	0	5,221,638
Stock issued for interest and penalties on convertible debt	0	0	10,631,768
Stock issued for board compensation	0	0	2,751,149
Changes in operating assets and liabilities:	'	'	'
Prepaid expenses and other current assets	-174,444	57,233	-454,567
Accounts payable and other accrued Liabilities	-569,033	-216,847	-2,677,872
Accrued retirement obligation	0	0	365,000
Net cash used in operating activities	-5,266,697	-2,943,013	-63,406,909
Cash Flows From Investing Activities:	'	'	'
Purchase of long-term investment	0	0	-5,292,896
Purchase of oil and gas concessions	-580,569	-1,410,708	-9,352,872
Proceeds from sale of partial interest in Kenya concession	4,731,608	0	4,731,608
Proceeds from sale of partial interest in DRSTP concession	0	0	45,900,000
Proceeds from U.S. Treasury bills	0	0	5,011,000
Purchase of U.S. Treasury bills and accrued interest	0	0	-5,011,000
Purchase of marketable equity securities	0	0	-1,350,000
Purchase of restricted certificate of Deposit, and accrued interest	0	0	-2,317,182
Proceeds from sale of restricted certificate of deposit	2,186,182	0	2,317,182
Purchase of furniture and equipment	0	-236,382	-1,277,754
Net cash provided by (used in) investing activities	6,337,221	-1,647,090	33,358,086
Cash Flows From Financing Activities:	'	'	'
Debt origination costs	-86,400	0	-86,400
Proceeds from warrants exercised	0	0	160,000
Proceeds from common stock, net of expenses	0	1,540,178	10,316,727
Proceeds from line of credit, related party	0	0	2,750,000
Proceeds from non-convertible debt, related party	0	0	158,700
Proceeds from convertible debt, related party	0	0	8,207,706
Proceeds from sale of convertible debt	561,500	0	9,581,437
Proceeds from bank borrowing	0	0	175,000
Proceeds from stockholder loans	0	0	1,845,809
Proceeds from stock subscription receivable	0	0	913,300
Repayment of shareholder loans	0	0	-1,020,607
Repayment of long-term debt	0	0	-223,021
Net cash provided by financing activities	475,100	1,540,178	32,778,651
Net increase (decrease) in cash and cash equivalents	1,545,624	-3,049,925	2,729,828
Cash and cash equivalents, beginning of period	1,184,204	7,665,990	0
Cash and cash equivalents, end of period	2,729,828	4,616,065	2,729,828
Non-cash investing and financing activities:	'	'	'
Unrealized gain (loss) on investment in Exile Resources	196,255	-37,625	-590,220
Non-cash debt origination costs	($16,667)	$0	($16,667)

BASIS_OF_PRESENTATION_AND_BUSI

BASIS OF PRESENTATION AND BUSINESS ORGANIZATION	9 Months Ended
BASIS OF PRESENTATION AND BUSINESS ORGANIZATION	Jun. 30, 2014
BASIS OF PRESENTATION AND BUSINESS ORGANIZATION [Abstract]	'
BASIS OF PRESENTATION AND BUSINESS ORGANIZATION	'
	NOTE 1 – BASIS OF PRESENTATION AND BUSINESS ORGANIZATION

	The consolidated financial statements included herein, which have not been audited pursuant to the rules and regulations of the Securities and Exchange Commission, reflect all adjustments which, in the opinion of management, are necessary to present a fair statement of financial position, results of operations and cash flows of the results for the interim periods on a basis consistent with the annual audited financial statements. All such adjustments are of a normal recurring nature. The results of operations for the interim periods are not necessarily indicative of the results to be expected for an entire year. Certain information, accounting policies and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America, have been omitted pursuant to such rules and regulations, although ERHC Energy Inc. ("ERHC" or the "Company") believes that the disclosures are adequate to make the information presented not misleading. These financial statements should be read in conjunction with the Company's audited financial statements included in the Company's Annual Report on Form 10-K for the fiscal year ended September 30, 2013.

	Recent accounting pronouncements

	There have been no recently issued accounting pronouncements that have had or are expected to have a material impact on the Company's consolidated financial statements.

FAIR_VALUE_OF_FINANCIAL_INSTRU

FAIR VALUE OF FINANCIAL INSTRUMENTS	9 Months Ended
	Jun. 30, 2014
FAIR VALUE OF FINANCIAL INSTRUMENTS [Abstract]	'
FAIR VALUE OF FINANCIAL INSTRUMENTS	'
	NOTE 2 – FAIR VALUE OF FINANCIAL INSTRUMENTS

	The Company adopted new guidance as of October 1, 2008, related to the measurement of the fair value of certain of its financial assets required to be measured on a recurring basis. Under the new guidance, based on the observability of the inputs used in the valuation techniques, the Company is required to provide the following information according to the fair value hierarchy. The fair value hierarchy ranks the quality and reliability of the information used to determine fair values. Financial assets and liabilities carried at fair value will be classified and disclosed in one of the following three categories:

		●	Level 1 — Quoted prices in active markets for identical assets or liabilities.

		●	Level 2 — Inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or, other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities.

		●	Level 3 — Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities.

	Interest income on cash and cash equivalents is recognized as earned on the accrual basis.

	Investments in equity instruments are accounted for as available for sale securities and reported at fair value, determined based on the quoted prices in an active market for identical assets and classified as Level 1 under the Accounting Standards Codification (“ASC”) Topic 825.

	During the nine months ended June 30, 2014, the Company's investment in the common stock and warrants of OER, a Canadian oil and gas company that trades on the Toronto Stock Exchange (TSX) increased in value by $196,254 to $759,779. This increase in value is included as an increase in stockholders' equity in accumulated other comprehensive income (loss).

	During the three months ended June 30, 2014, the Company issued a number of convertible notes payable, and identified derivatives related to these notes. ERHC classifies its derivative liabilities as Level 3 and values them using the methods discussed in Note 5. While the Company believes that its valuation methods are appropriate and consistent with other market participants, it recognizes that the use of different methodologies or assumptions to determine the fair value of certain financial instruments could result in a different estimate of fair value at the reporting date. The primary assumptions that would significantly affect the fair values using the methods discussed in Note 5 are that of volatility and market price of the underlying common stock of the Company.

	As of June 30, 2014, the Company did not have any derivative instruments that were designated as hedges.

	The derivative liability as of June 30, 2014, in the amount of $391,352 has a level 3 classification.

	The following table provides a summary of changes in fair value of the Company’s Level 3 financial liabilities as of June 30, 2014:

			Derivative
			Liability

	Balance, September 30, 2013		$	-
	Increase in derivative value due to issuances of convertible promissory notes			361,155
	Increase in derivative value attributable to tainted warrants			13,701
	Change in fair market value of derivative liabilities on convertible notes due to the mark to market adjustment			7,730
	Change in fair market value of derivative liabilities on tainted warrants due to the mark to market adjustment			8,766

	Balance, June 30, 2014		$	391,352

OIL_AND_GAS_CONCESSIONS

OIL AND GAS CONCESSIONS	9 Months Ended
OIL AND GAS CONCESSIONS	Jun. 30, 2014
OIL AND GAS CONCESSIONS [Abstract]	'
OIL AND GAS CONCESSIONS	'
	NOTE 3 – OIL AND GAS CONCESSIONS

	The following is an analysis of the cost of oil and gas concessions at June 30, 2014 and September 30, 2013:

		30-Jun-14		30-Sep-13

	DRSTP concession	$	3,061,672	$	2,839,500
	Chad concession		2,916,719		2,800,600
	Kenya concession		-		326,073
	Pending concessions in other African countries		84,339		71,630

		$	6,062,730	$	6,037,803

	In October, 2013, the Company entered into a farm-out agreement with CEPSA Kenya Limited, an affiliate of Compañía Española de Petróleos, S.A.U., an international oil and gas company ("CEPSA"). Under the terms of this agreement, the Company assigned and transferred 55% of its participating interest in Kenya Block 11A to CEPSA. Pursuant to the agreement, we received farm-in fee of $2,000,000, reimbursement of $2,175,966 of exploration costs incurred, and recovery of our capitalized concession costs of $555,642. In connection with this farm-out, we recognized a gain of $2,724,793, which includes $2,000,000 farm-in fee along with $495,224 exploration costs and $229,569 training and surface fees expensed during the year ended September 30, 2013.

	In exchange for the transferred rights, CEPSA will carry the Company's proportionate share of obligations and financial costs under the terms and conditions outlined in the farm-out agreement. The agreement was approved in January 2014 by the Kenyan Government and from February 2014, CEPSA took over from ERHC as operator under the production sharing contract ("PSC") for Kenya Block 11A.

CONVERTIBLE_DEBT

CONVERTIBLE DEBT	9 Months Ended
CONVERTIBLE DEBT	Jun. 30, 2014
CONVERTIBLE DEBT [Abstract]	'
CONVERTIBLE DEBT	'
	NOTE 4 – CONVERTIBLE DEBT

	The Company had the following convertible debt outstanding at June 30, 2014:

	Lender		Date of Agreement			Term (Months)				Annual Interest Rate					Face Value			Accrued Interest			Discount (c)			Deferred Debt Origination Costs Due at Maturity (d)		Net Convertible Note Payable		Note Derivative Liability (e)
	JMJ Financial		4/15/14	(f)			24				5.83	%	(a)		$	100,000		$	607		$	97,194		$	11,111	$	14,524	$	133,955
	KBM Worldwide		4/24/14				9				8	%				103,500			2,027			-			-		105,527		-
	KBM Worldwide		6/26/14				9				8	%				53,000			62			-			-		53,062		-
	JSJ Investments		4/29/14				6				12	%				100,000			2,038			-			-		102,038		-
	Adar Bays		5/20/14				12				8	%				52,500			472			50,782			-		2,190		90,224
	LG Capital		5/20/14				12				8	%				52,500			472			50,781			-		2,191		75,937
	Redwood Fund III		5/15/14				6				7.85	%	(b)			100,000			659			-			-		100,659		-
	Vista Capital Investments		6/16/14	(f)			24				5.83	%	(b)			50,000			6,056			43,936			5,556		17,676		68,769
															$	611,500		$	12,393		$	242,693		$	16,667	$	397,867	$	368,885

	(a)	Implied interest rate. The note is subject to a one time 12% interest charge unless repaid within 90 days
	(b)	Implied interest rate. The note is subject to a one time 12% interest charge regardless of how long it has been outstanding
	(c)	Net of amortization through June 30, 2014 of $7,307, charged to the period’s interest expense. Initial discounts, as based on the fair value of derivatives up to the settlement amount, were as follows: JMJ Financial - $100,000, Adar Bays - $52,500, LG Capital - $52,500, and Vista Capital - $45,000
	(d)	Original Issue Discount due at maturity of the note
	(e)	Includes a mark-to-market adjustment from inception through June 30, 2014 of $7,730, charged to the period’s interest expense. Fair values at inception were as follows: JMJ Financial - $128,008, Adar Bay - $92,164, LG Capital - $74,445, and Vista Capital - $66,538. See Notes 2 and 5 for more information
	(f)	At June 30, 2014, convertible notes payable in the amount of $32,200 and associated derivatives in the amount of $202,724 had remaining maturities exceeding twelve months, and were accordingly classified as long term. Principal and original issue discount on these notes in the amount of $166,667 is due in 2016.

	The following table summarizes the proceeds from convertible notes payable through June 30, 2014:

	Lender		Date of Agreement		Gross Proceeds					Transaction Cost				Net Proceeds
	JMJ Financial		4/15/14		$	100,000				$	10,000			$	90,000
	KBM Worldwide		4/24/14			100,000					10,000				90,000
	KBM Worldwide		6/26/14			50,000		(a)			5,000				45,000
	JSJ Investments		4/29/14			100,000					10,000				90,000
	Adar Bays		5/20/14			50,000					5,000				45,000
	LG Capital		5/20/14			50,000					5,000				45,000
	Redwood Fund III		5/15/14			100,000					10,000				90,000
	Vista Capital Investments		6/16/14			50,000					5,000				45,000

					$	600,000				$	60,000			$	540,000

		(a)	Funds received in July 2014, but accrued at June 30, 2014 due to the terms of the note payable agreement

	The following table summarizes conversion terms of the notes outstanding at June 30, 2014:

	Lender		Date of Agreement		Conversion Rate		Calculation Period		Eligible for Conversion
	JMJ Financial		15-Apr-14		Lesser of $0.06 or 60%		25 trading days prior to conversion		Immediately
	KBM Worldwide		April 24 and June 26, 2014		61%		10 trading days prior to conversion		180 after the effective date
	JSJ Investments		29-Apr-14		60%		20 trading days prior to conversion		180 after the effective date
	Adar Bay		20-May-14		61%		10 trading days prior to conversion		Immediately
	LG Capital		20-May-14		50%		20 trading days prior to conversion		Immediately
	Redwood Fund III		15-May-14		50%		20 trading days prior to conversion		180 after the effective date
	Vista Capital Investments		16-Jun-14		Lesser of $0.075 or 60%		25 trading days prior to conversion		Immediately

	The following table summarizes identified derivative associated with the convertible notes described above and their accounting treatment at June 30, 2014:

	Issue Name and Date		Derivative(s) Identified and Accounting Treatment Implemented
	JMJ Financial		Variable conversion feature and reset provision. Recorded at fair value as of the inception date of note and as of each subsequent reporting date.
	15-Apr-14

	KBM Worldwide		Variable conversion feature and reset provision. To be reported at fair value after 180 days since the date of the notes and of each subsequent reporting date, starting in the first quarter of fiscal 2015.
	April 24, 2014 and June 26, 2014

	JSJ Investments		Variable conversion feature and reset provision. To be reported at fair value after 180 days since the date of the note and of each subsequent reporting date, starting in the first quarter of fiscal 2015.
	29-Apr-14

	Adar Bays		Variable conversion feature and reset provision. Recorded at fair value as of the inception date of note and as of each subsequent reporting date.
	20-May-14

LG Capital		Variable conversion feature and reset provision. Recorded at fair value as of the inception date of note and as of each subsequent reporting date.
20-May-14

Redwood Fund III		Variable conversion feature and reset provision. To be reported at fair value after 180 days since the date of the note and of each subsequent reporting date, starting in the first quarter of fiscal 2015.
15-May-14

Vista Capital Investments		Variable conversion feature. Recorded at fair value as of the inception date of note and as of each subsequent reporting date.
16-Jun-14

As of June 30, 2014, Company recorded the following deferred origination costs related to the convertible notes:

Lender		Date of Agreement		Transaction Costs				Deferred Debt Origination Costs Due at Maturity (b)				Legal and Other Debt Origination Costs				Initial Deferred Origination Costs			Amortization (c)			Net Deferred Debt Origination Costs
JMJ Financial		4/15/14		$	10,000			$	11,111			$	-			$	21,111		$	996		$	20,115
KBM Worldwide		4/24/14			10,000				-				3,500				13,500			2,447			11,053
KBM Worldwide		6/26/14			5,000				-				3,000				8,000			73			7,927
JSJ Investments		4/29/14			10,000				-				-				10,000			3,397			6,603
Adar Bays		5/20/14			5,000				-				2,500				7,500			787			6,713
LG Capital		5/20/14			5,000				-				2,500				7,500			787			6,713
Redwood Fund III		5/15/14			10,000				-				-				10,000			840			9,160
Vista Capital Investments		6/16/14			5,000				5,556				-				10,556			91			10,465
Various	(a)	Various			-				-				14,900				14,900			1,537			13,363

				$	60,000			$	16,667			$	26,400			$	103,067		$	10,955		$	92,112

	(a)	An aggregate of lesser deferred debt origination costs
	(b)	Original Issue Discount due at maturity of the note
	(c)	Charged to the period's interest expense
	(d)	At June 30, 2014, Net Deferred Origination Costs in the amount of $30,580 had remaining useful lives exceeding twelve months, and were accordingly classified as long term.

DERIVATIVE_LIABILITIES

DERIVATIVE LIABILITIES	9 Months Ended
	Jun. 30, 2014
DERIVATIVE LIABILITIES [Abstract]	'
DERIVATIVE LIABILITIES	'
	NOTE 5 – DERIVATIVE LIABILITIES

	As described in Notes 4 and 6, the Company has identified embedded derivatives in notes payables and outstanding warrants.

	The fair value of the embedded derivatives related to the convertible notes payable, comprising conversion feature with the reset provisions and the default provisions, at issuance and June 30, 2014 was determined using the multinomial lattice models that value the derivative liability based on a probability weighted discounted cash flow model. These models are based on future projections of the various potential outcomes and utilize the following assumptions:

		·	The stock price would fluctuate with the Company projected volatility;

		·	Derivative convertible notes convert at 60% of the market prices;

		·	An event of default would occur initially 0% of the time, increasing 1.00% per month until it reaches 10%;

		·	The projected volatility curve for each valuation period was based on the historical volatility of the Company, ranging between 103% and 105%;

		·	The Company would redeem the notes initially at 0% of the time, and increase monthly by 1.00% to a maximum of 5.00%;

		·	The holders of the notes would automatically convert the notes at the maximum of two times the conversion price if the Company is not in default, with the target conversion price dropping as maturity approaches; and

		·	The Holder would convert the note early after 0-90-180 days and at maturity if the registration was effective and the Company was not in default.

	As discussed in Note 4, the Company issued convertible notes payable that provide for the issuance of convertible notes with variable conversion provisions. The conversion terms of the convertible notes are variable based on certain factors, such as the future price of the Company’s common stock. The number of shares of common stock to be issued is based on the future price of the Company’s common stock. The number of shares of common stock issuable upon conversion of the promissory note is indeterminate. Due to the fact that the number of shares of common stock issuable could exceed the Company’s authorized share limit, the equity environment is tainted and all additional convertible debentures and warrants are included in the value of the derivative. Pursuant to ASC 815-15 Embedded Derivatives, the fair values of the variable conversion option and warrants and shares to be issued were recorded as derivative liabilities on the issuance date.

	The fair value of the embedded derivatives related to the tainted outstanding warrants, comprising exercise feature with the full ratchet reset, at April 15, 2014 and June 30, 2014 was determined using the lattice models that value the derivative liability based on a probability weighted discounted cash flow model. These models are based on future projections of the various potential outcomes and utilize the following assumptions:

		·	The stock price would fluctuate with the Company projected volatility;

		·	The stock price would fluctuate with an annual volatility. The projected volatility curve for each valuation period was based on the historical volatility of the Company, ranging between 103% and 105%;

		·	The Holder would exercise the warrant as they become exercisable at target prices of two times the higher of the projected reset price or stock price;

		·	The Warrants with the $0.355; $0.28; and $0.275 exercise prices are fixed and not projected to adjust; and

		·	No warrants have expired in this period ending June 30, 2014.

	The accounting treatment of derivative financial instruments requires that the Company record fair value of the derivatives as of the inception date and to fair value as of each subsequent reporting date which at June 30, 2014 was an aggregate of $391,352.

	During the nine months ended June 30, 2014, the Company recorded an aggregate $16,496 loss on change in fair value of derivative liabilities and a $111,156 loss upon recognition of these derivatives. See Note 4 for more information.

STOCKHOLDERS_EQUITY

STOCKHOLDERS' EQUITY	9 Months Ended
STOCKHOLDERS' EQUITY	Jun. 30, 2014
STOCKHOLDERS' EQUITY [Abstract]	'
STOCKHOLDERS' EQUITY	'
	NOTE 6 - STOCKHOLDERS' EQUITY

	During the nine months ended June 30, 2014, the Company recognized compensation expense of $6,957 related to options granted to the Board of Directors in fiscal year 2012. As of June 30, 2014, there are 4,150,000 fully-vested options outstanding; none of which are exercisable. These options have a weighted average remaining term of 7.5 years and an intrinsic value of zero.

	During the nine months ended June 30, 2014, there were no new warrants granted and none were exercised, cancelled or expired. As of June 30, 2014, the Company has 13,777,729 outstanding and exercisable warrants with a weighted average exercise price and remaining term of $0.32 per share and 0.71 years, respectively. Note 5 provides information on the derivative liability associated with the warrants tainted during the issuance of convertible notes discussed in Note 4. During the nine months ended June 30, 2014, a $13,701 derivative liability, related to the tainted warrants, was recorded against the additional paid in capital.

	During the nine months ended June 30, 2014, 344,828 shares of Company’s common stock with a market value of $20,001, were issued in reimbursement of financial consulting services provided to the Company.

COMMITMENTS_AND_CONTINGENCIES

COMMITMENTS AND CONTINGENCIES	9 Months Ended
	Jun. 30, 2014
COMMITMENTS AND CONTINGENCIES [Abstract]	'
COMMITMENTS AND CONTINGENCIES	'
	NOTE 7 – COMMITMENTS AND CONTINGENCIES

	Republic of Kenya Concession Fees and Other Financial Commitments

	On June 28, 2012, ERHC entered into a production sharing contract ("PSC") with the Government of the Republic of Kenya for certain land based hydrocarbon exploration and production of Block 11A located in northwestern Kenya.

	Beginning February 7, 2014 CEPSA Kenya Limited (CEPSA), an affiliate of Compañía Española de Petróleos, S.A.U, took over from ERHC as operator under the Production Sharing Contract for Block 11A with the Republic of Kenya. ERHC and CEPSA entered into a Farm-out Agreement on October 7, 2013 (the “Agreement”) wherein ERHC transferred a majority participating interest and the operatorship in the Contract to CEPSA.

	The following is an analysis of the costs paid or incurred as of June 30, 2014:

		a.	$310,000 as the entire signature bonus

		b.	$2,175,966 as costs of airborne geophysical survey and quality control associated with it

		c.	$459,138 as training and surface fees, as provided in the PSC

		d.	$74,111 in advisers' and ancillary costs related to the PSC

	Republic of Chad Concession Fees and Other Financial Commitments

	On June 30, 2011, ERHC entered into a production sharing contract ("PSC") with Chad for hydrocarbon exploration and production. During the 4^th quarter of 2013, the Ministry of Energy and Petroleum of Chad approved ERHC's application to voluntarily relinquish two of the three Blocks covered by the PSC. The voluntary relinquishment proportionately reduces ERHC’s total signature-bonus obligations of $6,000,000 under the initial PSC to $2,000,000.

	The following is an analysis of the costs paid or incurred as of June 30, 2014:

		a.	$2,480,000 as the entire signature bonus along with related legal fees

		b.	$260,872 as costs of seismic data and environmental impact study

		c.	$446,979 as training, surface, meeting, and other fees, as provided in the PSC

		d.	$210,000 as finders fee

		e.	$3,749 in advisers' and ancillary costs related to the PSC

	ERHC is also committed under the PSC to:

		a.	spend at least $15,000,000 over the first five years on a minimum work program and at least an additional $1,000,000 over a further period of up to three years

		b.	pay training and surface fees of approximately $250,000 per calendar year during the first validity period, and lasting for up to eight years. Fees for subsequent periods will depend on the exploration progress, the acreage retained by ERHC, and total payroll related to the production of oil and gas, should production commence.

	LEGAL PROCEEDINGS
	JDZ BLOCKS 5 AND 6

	Arbitration and Lawsuit

	Since 2008, ERHC has had a pending law suit (in Abuja, Nigeria) and arbitration proceedings (in London, UK) against the JDA and the Governments of Nigeria and Sao Tome and Principe. ERHC wants the London Court of International Arbitration to clarify that ERHC’s minority interests in JDZ Blocks 5 and 6 remain intact. ERHC wants the court in Abuja to restrain the JDA and or the Governments from tampering with ERHC’s rights in the two Blocks pending the determination of the arbitration.

	Suspension of Proceedings on the Arbitration and Lawsuit

	Proceedings on the suit and the arbitration are currently suspended while the Company pursues amicable settlement with the Governments of Nigeria and Săo Tomé Príncipe.

	ROUTINE CLAIMS

	From time to time, ERHC may be subject to routine litigation, claims, or disputes in the ordinary course of business. ERHC intends to defend these matters vigorously. The Company cannot predict with certainty, however, the outcome or effect of any of the arbitration or litigation specifically described above or any other pending litigation or claims.

SUBSEQUENT_EVENTS

SUBSEQUENT EVENTS

9 Months Ended

Jun. 30, 2014

SUBSEQUENT EVENTS [Abstract]

SUBSEQUENT EVENTS

NOTE 8 – SUBSEQUENT EVENTS

Subsequent to June 30, 2014, and before August 14, 2014, the date these financial statements were available to be issued, the Company entered into convertible note agreements, summarized in the table below. ERHC identified embedded derivatives, comprising variable conversion features and reset provisions, which will be reported at fair value as of the note inception date and as of each subsequent reporting date.

Lender

Face

Interest

Date of

Conversion

Value

Rate

Agreement

Rate

Tonaquint, Inc.

115,000

12%

10-Jul-14

65%

Union Capital, LLC

69,000

15-Jul-14

55%

Iconic Holdings, LLC

75,000

10%

16-Jul-14

60%

Auctus Private Equity Fund

58,750

29-Jul-14

55%

317,750

FAIR_VALUE_OF_FINANCIAL_INSTRU1

FAIR VALUE OF FINANCIAL INSTRUMENTS (Tables)	9 Months Ended
FAIR VALUE OF FINANCIAL INSTRUMENTS (Tables)	Jun. 30, 2014
FAIR VALUE OF FINANCIAL INSTRUMENTS [Abstract]	'
Summary of changes in fair value of the Companys Level 3 financial liabilities	'
	The following table provides a summary of changes in fair value of the Company’s Level 3 financial liabilities as of June 30, 2014:

		Derivative
		Liability

	Balance, September 30, 2013	$	-
	Increase in derivative value due to issuances of convertible promissory notes		361,155
	Increase in derivative value attributable to tainted warrants		13,701
	Change in fair market value of derivative liabilities on convertible notes due to the mark to market adjustment		7,730
	Change in fair market value of derivative liabilities on tainted warrants due to the mark to market adjustment		8,766

	Balance, June 30, 2014	$	391,352

OIL_AND_GAS_CONCESSIONS_Tables

OIL AND GAS CONCESSIONS (Tables)	9 Months Ended
OIL AND GAS CONCESSIONS (Tables)	Jun. 30, 2014
OIL AND GAS CONCESSIONS [Abstract]	'
Analysis of Cost of Oil and Gas Concessions	'
	The following is an analysis of the cost of oil and gas concessions at June 30, 2014 and September 30, 2013:

		30-Jun-14		30-Sep-13

	DRSTP concession	$	3,061,672	$	2,839,500
	Chad concession		2,916,719		2,800,600
	Kenya concession		-		326,073
	Pending concessions in other African countries		84,339		71,630

		$	6,062,730	$	6,037,803

CONVERTIBLE_DEBT_Tables

CONVERTIBLE DEBT (Tables)	9 Months Ended
CONVERTIBLE DEBT (Tables)	Jun. 30, 2014
CONVERTIBLE DEBT [Abstract]	'
Convertible debt outstanding	'
	The Company had the following convertible debt outstanding at June 30, 2014:

	Lender		Date of Agreement			Term (Months)				Annual Interest Rate					Face Value				Accrued Interest				Discount (c)				Deferred Debt Origination Costs Due at Maturity (d)		Net Convertible Note Payable		Note Derivative Liability (e)
	JMJ Financial		4/15/14	(f)			24				5.83	%	(a)		$	100,000			$	607			$	97,194			$	11,111	$	14,524	$	133,955
	KBM Worldwide		4/24/14				9				8	%				103,500				2,027				-				-		105,527		-
	KBM Worldwide		6/26/14				9				8	%				53,000				62				-				-		53,062		-
	JSJ Investments		4/29/14				6				12	%				100,000				2,038				-				-		102,038		-
	Adar Bays		5/20/14				12				8	%				52,500				472				50,782				-		2,190		90,224
	LG Capital		5/20/14				12				8	%				52,500				472				50,781				-		2,191		75,937
	Redwood Fund III		5/15/14				6				7.85	%	(b)			100,000				659				-				-		100,659		-
	Vista Capital Investments		6/16/14	(f)			24				5.83	%	(b)			50,000				6,056				43,936				5,556		17,676		68,769
															$	611,500			$	12,393			$	242,693			$	16,667	$	397,867	$	368,885

	(a)	Implied interest rate. The note is subject to a one time 12% interest charge unless repaid within 90 days
	(b)	Implied interest rate. The note is subject to a one time 12% interest charge regardless of how long it has been outstanding
	(c)	Net of amortization through June 30, 2014 of $7,307, charged to the period’s interest expense. Initial discounts, as based on the fair value of derivatives up to the settlement amount, were as follows: JMJ Financial - $100,000, Adar Bays - $52,500, LG Capital - $52,500, and Vista Capital - $45,000
	(d)	Original Issue Discount due at maturity of the note
	(e)	Includes a mark-to-market adjustment from inception through June 30, 2014 of $7,730, charged to the period’s interest expense. Fair values at inception were as follows: JMJ Financial - $128,008, Adar Bay - $92,164, LG Capital - $74,445, and Vista Capital - $66,538. See Notes 2 and 5 for more information
	(f)	At June 30, 2014, convertible notes payable in the amount of $32,200 and associated derivatives in the amount of $202,724 had remaining maturities exceeding twelve months, and were accordingly classified as long term. Principal and original issue discount on these notes in the amount of $166,667 is due in 2016.
Summary of proceeds from convertible notes payable	'
	The following table summarizes the proceeds from convertible notes payable through June 30, 2014:

	Lender		Date of Agreement		Gross Proceeds					Transaction Cost				Net Proceeds
	JMJ Financial		4/15/14		$	100,000				$	10,000			$	90,000
	KBM Worldwide		4/24/14			100,000					10,000				90,000
	KBM Worldwide		6/26/14			50,000		(a)			5,000				45,000
	JSJ Investments		4/29/14			100,000					10,000				90,000
	Adar Bays		5/20/14			50,000					5,000				45,000
	LG Capital		5/20/14			50,000					5,000				45,000
	Redwood Fund III		5/15/14			100,000					10,000				90,000
	Vista Capital Investments		6/16/14			50,000					5,000				45,000

					$	600,000				$	60,000			$	540,000

		(a)	Funds received in July 2014, but accrued at June 30, 2014 due to the terms of the note payable agreement
Summary of conversion terms of the notes outstanding	'
	The following table summarizes conversion terms of the notes outstanding at June 30, 2014:

	Lender		Date of Agreement		Conversion Rate		Calculation Period		Eligible for Conversion
	JMJ Financial		15-Apr-14		Lesser of $0.06 or 60%		25 trading days prior to conversion		Immediately
	KBM Worldwide		April 24 and June 26, 2014		61%		10 trading days prior to conversion		180 after the effective date
	JSJ Investments		29-Apr-14		60%		20 trading days prior to conversion		180 after the effective date
	Adar Bay		20-May-14		61%		10 trading days prior to conversion		Immediately
	LG Capital		20-May-14		50%		20 trading days prior to conversion		Immediately
	Redwood Fund III		15-May-14		50%		20 trading days prior to conversion		180 after the effective date
	Vista Capital Investments		16-Jun-14		Lesser of $0.075 or 60%		25 trading days prior to conversion		Immediately
Summery of Derivatives Identified and Accounting Treatment Implemented	'
	The following table summarizes identified derivative associated with the convertible notes described above and their accounting treatment at June 30, 2014:

	Issue Name and Date		Derivative(s) Identified and Accounting Treatment Implemented
	JMJ Financial		Variable conversion feature and reset provision. Recorded at fair value as of the inception date of note and as of each subsequent reporting date.
	15-Apr-14

	KBM Worldwide		Variable conversion feature and reset provision. To be reported at fair value after 180 days since the date of the notes and of each subsequent reporting date, starting in the first quarter of fiscal 2015.
	April 24, 2014 and June 26, 2014

	JSJ Investments		Variable conversion feature and reset provision. To be reported at fair value after 180 days since the date of the note and of each subsequent reporting date, starting in the first quarter of fiscal 2015.
	29-Apr-14

	Adar Bays		Variable conversion feature and reset provision. Recorded at fair value as of the inception date of note and as of each subsequent reporting date.
	20-May-14

	LG Capital		Variable conversion feature and reset provision. Recorded at fair value as of the inception date of note and as of each subsequent reporting date.
	20-May-14

	Redwood Fund III		Variable conversion feature and reset provision. To be reported at fair value after 180 days since the date of the note and of each subsequent reporting date, starting in the first quarter of fiscal 2015.
	15-May-14

	Vista Capital Investments		Variable conversion feature. Recorded at fair value as of the inception date of note and as of each subsequent reporting date.
	16-Jun-14
Deferred origination costs related to the convertible notes	'
	As of June 30, 2014, Company recorded the following deferred origination costs related to the convertible notes:

	Lender		Date of Agreement		Transaction Costs				Deferred Debt Origination Costs Due at Maturity (b)				Legal and Other Debt Origination Costs				Initial Deferred Origination Costs				Amortization (c)				Net Deferred Debt Origination Costs
	JMJ Financial		4/15/14		$	10,000			$	11,111			$	-			$	21,111			$	996			$	20,115
	KBM Worldwide		4/24/14			10,000				-				3,500				13,500				2,447				11,053
	KBM Worldwide		6/26/14			5,000				-				3,000				8,000				73				7,927
	JSJ Investments		4/29/14			10,000				-				-				10,000				3,397				6,603
	Adar Bays		5/20/14			5,000				-				2,500				7,500				787				6,713
	LG Capital		5/20/14			5,000				-				2,500				7,500				787				6,713
	Redwood Fund III		5/15/14			10,000				-				-				10,000				840				9,160
	Vista Capital Investments		6/16/14			5,000				5,556				-				10,556				91				10,465
	Various	(a)	Various			-				-				14,900				14,900				1,537				13,363

					$	60,000			$	16,667			$	26,400			$	103,067			$	10,955			$	92,112

		(a)	An aggregate of lesser deferred debt origination costs
		(b)	Original Issue Discount due at maturity of the note
		(c)	Charged to the period's interest expense
		(d)	At June 30, 2014, Net Deferred Origination Costs in the amount of $30,580 had remaining useful lives exceeding twelve months, and were accordingly classified as long term.

SUBSEQUENT_EVENTS_Tables

SUBSEQUENT EVENTS (Tables)

9 Months Ended

Jun. 30, 2014

SUBSEQUENT EVENTS [Abstract]

Summary of convertible note agreements subsequent to the balance sheet date.

ERHC identified embedded derivatives, comprising variable conversion features and reset provisions, which will be reported at fair value as of the note inception date and as of each subsequent reporting date.

Lender

Face

Interest

Date of

Conversion

Value

Rate

Agreement

Rate

Tonaquint, Inc.

115,000

12%

10-Jul-14

65%

Union Capital, LLC

69,000

15-Jul-14

55%

Iconic Holdings, LLC

75,000

10%

16-Jul-14

60%

Auctus Private Equity Fund

58,750

29-Jul-14

55%

317,750

FAIR_VALUE_OF_FINANCIAL_INSTRU2

FAIR VALUE OF FINANCIAL INSTRUMENTS (Details) (USD $)	3 Months Ended		9 Months Ended		226 Months Ended
FAIR VALUE OF FINANCIAL INSTRUMENTS (Details) (USD $)	Jun. 30, 2014	Jun. 30, 2013	Jun. 30, 2014	Jun. 30, 2013	Jun. 30, 2014	Sep. 30, 2013
FAIR VALUE OF FINANCIAL INSTRUMENTS [Abstract]	'	'	'	'	'	'
Increase in stockholders' equity in accumulated other comprehensive income	$251,088	($66,905)	$196,254	($37,625)	($590,221)	'
Investment in common stock and warrants of OER	759,779	'	759,779	'	759,779	563,525
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]	'	'	'	'	'	'
Increase in derivative value	'	'	127,652	0	127,651	'
Warrant [Member]	'	'	'	'	'	'
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]	'	'	'	'	'	'
Change in fair market value of derivative liabilities	'	'	16,495	'	'	'
Derivative Liability [Member] \| Fair Value, Inputs, Level 3 [Member]	'	'	'	'	'	'
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]	'	'	'	'	'	'
Balance, September 30, 2013	'	'	'	'	'	0
Balance, June 30, 2014	391,352	'	391,352	'	391,352	0
Derivative Liability [Member] \| Fair Value, Inputs, Level 3 [Member] \| Warrant [Member]	'	'	'	'	'	'
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]	'	'	'	'	'	'
Increase in derivative value	'	'	13,701	'	'	'
Change in fair market value of derivative liabilities	'	'	8,766	'	'	'
Derivative Liability [Member] \| Fair Value, Inputs, Level 3 [Member] \| Convertible Notes [Member]	'	'	'	'	'	'
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]	'	'	'	'	'	'
Increase in derivative value	'	'	361,155	'	'	'
Change in fair market value of derivative liabilities	'	'	$7,730	'	'	'

OIL_AND_GAS_CONCESSIONS_Detail

OIL AND GAS CONCESSIONS (Details) (USD $)	9 Months Ended
OIL AND GAS CONCESSIONS (Details) (USD $)	Jun. 30, 2014	Sep. 30, 2013
Analysis of cost of oil and gas concessions [Abstract]	'	'
Oil and gas concessions	$6,062,730	$6,037,803
DRSTP Concession [Member]	'	'
Analysis of cost of oil and gas concessions [Abstract]	'	'
Oil and gas concessions	3,061,672	2,839,500
Chad Concession [Member]	'	'
Analysis of cost of oil and gas concessions [Abstract]	'	'
Oil and gas concessions	2,916,719	2,800,600
Kenya Concession [Member]	'	'
Analysis of cost of oil and gas concessions [Abstract]	'	'
Oil and gas concessions	0	326,073
Reimbursements from CEPSA	2,175,966	'
Farm-in fee reimbursed from CEPSA	2,000,000	'
Interest transferred and assigned (in hundredths)	55.00%	'
Gain on sale of partial interest on sale of concessions	2,724,793	'
Capitalized concession costs recovered	555,642	'
Exploration costs recovered	495,224	'
Training and surface fees recovered	229,569	'
Pending Concessions in Other African Countries [Member]	'	'
Analysis of cost of oil and gas concessions [Abstract]	'	'
Oil and gas concessions	$84,339	$71,630

CONVERTIBLE_DEBT_Details

CONVERTIBLE DEBT (Details) (USD $)

9 Months Ended

226 Months Ended

9 Months Ended

Jun. 30, 2014

Jun. 30, 2013

Jun. 30, 2014

Sep. 30, 2013

Jun. 30, 2014

Jun. 30, 2013

Sep. 30, 2010

Jun. 30, 2014

Jun. 30, 2013

Jun. 30, 2014

Jun. 30, 2013

Jun. 30, 2014

Jun. 30, 2013

Jun. 30, 2014

Jun. 30, 2013

Jun. 30, 2014

Jun. 30, 2013

Jun. 30, 2014

Jun. 30, 2013

Sep. 30, 2010

Jun. 30, 2014

JMJ Financial [Member]

KBM World wide [Member]

KBM Worldwide 1 [Member]

KBM World wide 2 [Member]

JSJ Investments [Member]

Adar Bays [Member]

LG Capital [Member]

Redwood Fund III [Member]

Vista Capital Investments [Member]

Various [Member]

Vista Capital [Member]

Minimum [Member]

JMJ Financial [Member]

Convertible debt outstanding [Line Items]

Date of Agreement

15-Apr-14

[1]

24-Apr-14

26-Jun-14

29-Apr-14

20-May-14

15-May-14

16-Jun-14

[1]

Term (Months)

'24 months

'9 months

'6 months

'12 months

'6 months

'24 months

Annual Interest Rate

5.83%

[2]

8.00%

12.00%

8.00%

7.85%

[3]

5.83%

[3]

Face value

$611,500

$100,000

$103,500

$53,000

$100,000

$52,500

$100,000

$50,000

$45,000

Accrued Interest

12,393

607

2,027

2,038

472

659

6,056

Discount

242,693

[4]

242,693

[4]

97,194

[4]

50,782

[4]

50,781

[4]

43,936

[4]

Deferred Debt Origination Costs Due at Maturity

16,667

[5]

16,667

[5]

11,111

[5]

5,556

[5]

[5],[6]

Net Convertible Note Payable

397,867

14,524

105,527

53,062

102,038

2,190

2,191

100,659

17,676

Note Derivative Liability

368,885

[7]

368,885

[7]

133,955

[7]

90,224

[7]

75,937

[7]

68,769

[7]

Deferred origination costs related to the convertible notes [Abstract]

Gross Proceeds

600,000

100,000

50,000

[8]

100,000

50,000

100,000

50,000

Transactions Costs

60,000

10,000

5,000

10,000

5,000

10,000

5,000

Net Proceeds

540,000

90,000

45,000

90,000

45,000

90,000

45,000

Transaction Costs

60,000

10,000

5,000

10,000

5,000

10,000

5,000

[6]

Deferred Debt Origination Costs Due at Maturity

16,667

[5]

16,667

[5]

11,111

[5]

5,556

[5]

[5],[6]

Legal and Other Debt Origination Costs

26,400

3,500

3,000

2,500

14,900

[6]

Initial Deferred Origination Costs

103,067

21,111

13,500

8,000

10,000

7,500

10,000

10,556

14,900

[6]

Amortization

10,955

[9]

10,955

[9]

996

[9]

2,447

[9]

3,397

[9]

787

[9]

787

[9]

840

[9]

1,537

[6],[9]

Net Deferred Debt Origination Costs

92,112

20,115

11,053

7,927

6,603

6,713

9,160

10,465

13,363

[6]

Implied interest rate (in hundredths)

12.00%

Charge repaid duration

'P90D

Amortization

7,307

Mark-to-market adjustment from inception

7,730

Fair values at inception

128,008

92,164

74,445

66,538

Convertible notes payable

32,200

Associated derivatives

202,724

Principal and original issue discount

166,667

Unsecured note payable

$100,000

Effective interest rate (in hundredths)

0.00%

Conversion price (in dollars per share)

$0.06

$0.08

Conversion price (in hundredths)

60.00%

61.00%

60.00%

61.00%

50.00%

60.00%

Calculation period

'25 days

'10 days

'20 days

'10 days

'20 days

'25 days

Eligible for Conversion

'Immediately

'180 after the effective date

'Immediately

'180 after the effective date

'Immediately

Accounting Treatment Implemented

'Variable conversion feature and reset provision. Recorded at fair value as of the inception date of note and as of each subsequent reporting date.

'Variable conversion feature and reset provision. To be reported at fair value after 180 days since the date of the notes and of each subsequent reporting date, starting in the first quarter of fiscal 2015.

'Variable conversion feature and reset provision. To be reported at fair value after 180 days since the date of the note and of each subsequent reporting date, starting in the first quarter of fiscal 2015.

'Variable conversion feature and reset provision. Recorded at fair value as of the inception date of note and as of each subsequent reporting date.

'Variable conversion feature. Recorded at fair value as of the inception date of note and as of each subsequent reporting date.

[1]

At June 30, 2014, convertible notes payable in the amount of $32,200 and associated derivatives in the amount of $202,724 had remaining maturities exceeding twelve months, and were accordingly classified as long term. Principal and original issue discount on these notes in the amount of $166,667 is due in 2016.

[2]

Implied interest rate. The note is subject to a one time 12% interest charge unless repaid within 90 days.

[3]

Implied interest rate. The note is subject to a one time 12% interest charge regardless of how long it has been outstanding.

[4]

Net of amortization through June 30, 2014 of $7,307, charged to the periodbs interest expense. Initial discounts, as based on the fair value of derivatives up to the settlement amount, were as follows: JMJ Financial - $100,000, Adar Bays - $52,500, LG Capital - $52,500, and Vista Capital - $45,000.

[5]

Original Issue Discount due at maturity of the note.

[6]

An aggregate of lesser deferred debt origination costs.

[7]

Includes a mark-to-market adjustment from inception through June 30, 2014 of $7,730, charged to the periodbs interest expense. Fair values at inception were as follows: JMJ Financial - $128,008, Adar Bay - $92,164, LG Capital - $74,445, and Vista Capital - $66,538. See Notes 2 and 5 for more information.

[8]

Funds received in July 2014, but accrued at June 30, 2014 due to the terms of the note payable agreement

[9]

Charged to the period's interest expense.

DERIVATIVE_LIABILITIES_Details

DERIVATIVE LIABILITIES (Details) (USD $)	3 Months Ended			9 Months Ended			226 Months Ended
DERIVATIVE LIABILITIES (Details) (USD $)	Jun. 30, 2014		Jun. 30, 2013	Jun. 30, 2014		Jun. 30, 2013	Jun. 30, 2014
Derivative [Line Items]	'		'	'		'	'
Fair value of the derivatives	$368,885	[1]	'	$368,885	[1]	'	$368,885	[1]
Embedded Derivative, Loss on Embedded Derivative	111,156		0	111,156		0	111,156
Convertible Notes [Member]	'		'	'		'	'
Derivative [Line Items]	'		'	'		'	'
Percentage of conversion of notes specified on market price (in hundredths)	60.00%		'	60.00%		'	60.00%
Initial percentage of event of default (in hundredths)	0.00%		'	0.00%		'	0.00%
Increasing percentage of event of default (in hundredths)	1.00%		'	1.00%		'	1.00%
Maximum percentage of event of default (in hundredths)	10.00%		'	10.00%		'	10.00%
Initial percentage of redemption of notes (in hundredths)	0.00%		'	0.00%		'	0.00%
Increasing percentage of redemption of notes (in hundredths)	1.00%		'	1.00%		'	1.00%
Maximum percentage of redemption of notes (in hundredths)	5.00%		'	5.00%		'	5.00%
Multiplier of conversion price to convert notes, maximum	2		'	2		'	2
Conversion period one to convert notes	'		'	'0 days		'	'
Conversion period two to convert notes	'		'	'90 days		'	'
Conversion period three to convert notes	'		'	'180 days		'	'
Convertible Notes [Member] \| Minimum [Member]	'		'	'		'	'
Derivative [Line Items]	'		'	'		'	'
Percentage of projected volatility curve (in hundredths)	103.00%		'	103.00%		'	103.00%
Convertible Notes [Member] \| Maximum [Member]	'		'	'		'	'
Derivative [Line Items]	'		'	'		'	'
Percentage of projected volatility curve (in hundredths)	105.00%		'	105.00%		'	105.00%
Warrants [Member]	'		'	'		'	'
Derivative [Line Items]	'		'	'		'	'
Warrant exercise price one (in dollars per share)	$0.36		'	$0.36		'	$0.36
Warrant exercise price two (in dollars per share)	$0.28		'	$0.28		'	$0.28
Warrant exercise price three (in dollars per share)	$0.28		'	$0.28		'	$0.28
Fair value of the derivatives	391,352		'	391,352		'	391,352
Loss on change in fair value of derivative liabilities	'		'	16,495		'	'
Multiplier of higher of the projected reset price or stock price to calculate warrant exercise price	2		'	2		'	2
Embedded Derivative, Loss on Embedded Derivative	'		'	$111,156		'	'
Warrants [Member] \| Minimum [Member]	'		'	'		'	'
Derivative [Line Items]	'		'	'		'	'
Percentage of projected volatility curve (in hundredths)	103.00%		'	103.00%		'	103.00%
Warrants [Member] \| Maximum [Member]	'		'	'		'	'
Derivative [Line Items]	'		'	'		'	'
Percentage of projected volatility curve (in hundredths)	105.00%		'	105.00%		'	105.00%

[1]	Includes a mark-to-market adjustment from inception through June 30, 2014 of $7,730, charged to the periodbs interest expense. Fair values at inception were as follows: JMJ Financial - $128,008, Adar Bay - $92,164, LG Capital - $74,445, and Vista Capital - $66,538. See Notes 2 and 5 for more information.

STOCKHOLDERS_EQUITY_Details

STOCKHOLDERS' EQUITY (Details) (USD $)	9 Months Ended
STOCKHOLDERS' EQUITY (Details) (USD $)	Jun. 30, 2014
STOCKHOLDERS' EQUITY [Abstract]	'
Share-based compensation expense	$6,957
Shares granted (in shares)	4,150,000
Weighted average remaining contractual term	'7 years 6 months
Intrinsic value	0
Shares issued in reimbursement of financial consulting services (in shares)	344,828
Value of shares issued in reimbursement of financial consulting services	20,001
Stock Warrants [Line Items]	'
Derivative liability recorded against additional paid in capital	368,885	[1]
Warrants [Member]	'
Stock Warrants [Line Items]	'
Granted (in shares)	0
Exercised (in shares)	0
Expired or cancelled (in shares)	0
Balance at end of period (in shares)	13,777,729
Weighted average exercise price (in dollars per share)	$0.32
Remaining term of warrants	'0 years 8 months 16 days
Derivative liability recorded against additional paid in capital	$13,701

[1]	Includes a mark-to-market adjustment from inception through June 30, 2014 of $7,730, charged to the periodbs interest expense. Fair values at inception were as follows: JMJ Financial - $128,008, Adar Bay - $92,164, LG Capital - $74,445, and Vista Capital - $66,538. See Notes 2 and 5 for more information.

COMMITMENTS_AND_CONTINGENCIES_

COMMITMENTS AND CONTINGENCIES (Details) (USD $)	9 Months Ended
COMMITMENTS AND CONTINGENCIES (Details) (USD $)	Jun. 30, 2014	Dec. 31, 2013	Jun. 30, 2011
Loss Contingencies [Line Items]	'	'	'
Finder's fees	$60,000	'	'
Kenya Concession [Member]	'	'	'
Loss Contingencies [Line Items]	'	'	'
Signature bonus commitment	310,000	2,000,000	6,000,000
Costs of airborne geophysical survey and quality control	2,175,966	'	'
Training and surface fees	459,138	'	'
Professional fees	74,111	'	'
Chad Concession [Member]	'	'	'
Loss Contingencies [Line Items]	'	'	'
Training and surface fees	446,979	'	'
Professional fees	3,749	'	'
Number of blocks relinquished under production sharing contract	2	'	'
Number of blocks under production sharing contract	3	'	'
Signature bonus commitment paid or incurred	2,480,000	'	'
Finder's fees	210,000	'	'
Future commitment to spend under minimum work program next five years minimum	15,000,000	'	'
Number of years of minimum work program	'5 years	'	'
Future commitment to spend under minimum work program additional three years minimum	1,000,000	'	'
Period of further work program	'3 years	'	'
Future commitment to incur training and surface fees per calendar year next eight years	250,000	'	'
Maximum period for commitment	'8 years	'	'
Environmental cost	$260,872	'	'

SUBSEQUENT_EVENTS_Details

SUBSEQUENT EVENTS (Details) (USD $)	Jun. 30, 2014	Jul. 10, 2014	Jul. 15, 2014	Jul. 16, 2014	Jul. 29, 2014
		Subsequent Event [Member]	Subsequent Event [Member]	Subsequent Event [Member]	Subsequent Event [Member]
		Tonaquint, Inc [Member]	Union Capital, LLC [Member]	Iconic Holdings, LLC [Member]	Auctus Private Equity Fund, Inc [Member]
		Convertible Notes Payable [Member]	Convertible Notes Payable [Member]	Convertible Notes Payable [Member]	Convertible Notes Payable [Member]
Subsequent Event [Line Items]	'	'	'	'	'
Face value	$611,500	$115,000	$69,000	$75,000	$58,750
Annual interest Rate (in hundredths)	'	12.00%	8.00%	10.00%	8.00%
Date of agreement	'	10-Jul-14	15-Jul-14	16-Jul-14	29-Jul-14
Term (Months)	'	'12 months	'12 months	'12 months	'12 months