ERHC Energy (ERHE) 10-Q 22 Feb 16 2016 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	Dec. 31, 2015	Jan. 31, 2016
Document and Entity Information [Abstract]
Entity Registrant Name	ERHC Energy Inc
Entity Central Index Key	799,235
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		30,906,314
Document Fiscal Year Focus	2,016
Document Fiscal Period Focus	Q1
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Dec. 31, 2015

UNAUDITED CONSOLIDATED BALANCE

UNAUDITED CONSOLIDATED BALANCE SHEETS - USD ($)	Dec. 31, 2015	Sep. 30, 2015
Current assets:
Cash and cash equivalents	$ 479,246	$ 757,313
Investment in Oando Energy Resources	448,163	211,699
Deferred debt origination cost - short term	57,779	47,377
Prepaid expenses and other	199,221	207,636
Total current assets	1,184,409	1,224,025
Oil and gas concession fees	5,173,820	6,016,014
Furniture and equipment, net of accumulated depreciation of $464,181 and $445,626 at December 31, 2015 and September 30, 2015, respectively	115,794	133,349
Deferred debt origination cost - long term	0	14,333
Total assets	6,474,023	7,387,721
Current liabilities:
Accounts payable and accrued liabilities	221,952	989,083
Income tax payable	2,739,607	2,739,607
Convertible note payable, net of discount - short term	268,840	253,250
Derivative liability	533,476	725,898
Total current liabilities	3,763,875	4,707,838
Convertible note payable, net of discount - long term	0	2,874
Total liabilities	$ 3,763,875	$ 4,710,712
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 29,730,609 and 29,216,038 shares at December 31, 2015 and September 30, 2015, respectively	2,973	2,922
Additional paid-in capital	106,155,566	106,047,738
Accumulated other comprehensive loss	(899,264)	(1,135,728)
Accumulated deficits	(102,549,127)	(102,237,923)
Total shareholders' equity	2,710,148	2,677,009
Total liabilities and shareholders' equity	$ 6,474,023	$ 7,387,721

UNAUDITED CONSOLIDATED BALANCE3

UNAUDITED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($)	Dec. 31, 2015	Sep. 30, 2015
Current assets:
Furniture and equipment, accumulated depreciation	$ 464,181	$ 445,626
Shareholder's equity:
Preferred stock, par value (in dollars per share)	$ 0.0001	$ 0.0001
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)	$ 0.0001	$ 0.0001
Common stock, authorized (in shares)	3,000,000,000	3,000,000,000
Common stock, issued (in shares)	29,730,609	29,216,038
Common stock, outstanding (in shares)	29,730,609	29,216,038

UNAUDITED CONSOLIDATED STATEMEN

UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($)	3 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Costs and expenses:
General and administrative	$ 576,440	$ 828,473
Exploration expenses	405,484	445,988
Depreciation	18,555	19,336
Gain on sale of interest in oil and gas concessions, net	(657,806)	(239,515)
Total costs and expenses	342,673	1,054,282
Other income and (expenses):
Interest income	232	705
Gain on MTM of derivative liability	112,384	114,674
Loss on embedded derivatives	0	(532,188)
Interest expense	(81,147)	(218,124)
Total other income and (expense)	31,469	(634,933)
Loss before benefit (provision) for income taxes	(311,204)	(1,689,215)
Benefit (provision) for income taxes:
Current	0	0
Deferred	0	0
Total benefit (provision) for income taxes	0	0
Net loss	$ (311,204)	$ (1,689,215)
Net loss per common share -basic and diluted	$ (0.01)	$ (0.22)
Weighted average number of common shares outstanding - basic and diluted (in shares)	29,624,511	7,827,909

UNAUDITED CONSOLIDATED STATEME5

UNAUDITED CONSOLIDATED STATEMENTS OF OTHER COMPREHENSIVE INCOME (LOSS) - USD ($)	3 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
UNAUDITED CONSOLIDATED STATEMENTS OF OTHER COMPREHENSIVE INCOME (LOSS) [Abstract]
Net loss	$ (311,204)	$ (1,689,215)
Other comprehensive income - unrealized gain (loss) on available for sale securities	236,464	(219,363)
Total other comprehensive income (loss)	$ (74,740)	$ (1,908,578)

UNAUDITED CONSOLIDATED STATEME6

UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)	3 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Cash Flows From Operating Activities:
Net loss	$ (311,204)	$ (1,689,215)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and depletion expense	18,555	19,337
Loss on embedded derivative	0	532,188
Gain on change in fair value of derivatives	(112,384)	(114,674)
Gain on sale of interest in oil and gas concessions, net	(657,806)	(239,515)
Amortization of convertible debt discount	65,808	116,259
Amortization of debt issuance cost	3,931	30,645
Stock issued for board compensation	0	8,400
Prepaid expenses and other current assets	8,415	85,100
Accounts payable and other accrued Liabilities	(766,349)	(83,473)
Net cash used in operating activities	(1,751,034)	(1,334,948)
Cash Flows From Investing Activities:
Purchase of furniture and equipment	(1,000)	0
Purchase of oil and gas concessions	0	(29,815)
Proceeds from sale of interest in oil and gas concessions	1,500,000	239,515
Net cash provided by investing activities	1,499,000	209,700
Cash Flows From Financing Activities:
Principle payment on convertible debt	(26,033)	0
Proceeds from sale of convertible debt	0	391,613
Net cash (used) provided by financing activities	(26,033)	391,613
Net decrease in cash and cash equivalents	(278,067)	(733,635)
Cash and cash equivalents, beginning of period	757,313	2,182,406
Cash and cash equivalents, end of period	479,246	1,448,771
Non-cash investing and financing activities:
Unrealized gain in Investment Oando Energy Resources	236,464	219,363
Discount from derivative	0	260,032
Conversion of note payable to common stock	27,841	459,750
Derivative liabilities extinguished on conversion	$ 80,038	$ 534,870

BASIS OF PRESENTATION AND BUSIN

BASIS OF PRESENTATION AND BUSINESS ORGANIZATION	3 Months Ended
	Dec. 31, 2015
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 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, 2015. On December 15, 2015, ERHCs' shareholders approved a hundred for one reverse stock split of ERHC's common stock. The reverse stock split became effective on January 15, 2016, and ERHCs' shares of common stock began trading on a post-split basis on the OTC Bulletin Board. Number of common stocks for periods presented in the consolidated financial statements has been retroactively adjusted to reflect the one-for-hundred reverse stock split. 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. Going Concern The accompanying consolidated financial statements have been prepared on the basis that the Company will continue as a going concern which contemplates the realization of assets and the satisfaction of liabilities in the ordinary and usual course of business. As of December 31, 2015, the Company has a working capital deficit and negative cash flows from operating activities. This condition raises substantial doubt about the Company’s ability to continue as a going concern. The ability of the Company to continue as a going concern is dependent on raising additional capital to fund ongoing explora tion projects and ultimately on attaining future profitable operations. The Company is continuing with its plan to further seek new opportunity for farm-out its assets in Kenya, Chad and the Săo Tomé and Príncipe Exclusive Economic Zone. Management believe

RESTATEMENT OF FINANCIAL STATEM

RESTATEMENT OF FINANCIAL STATEMENTS	3 Months Ended
	Dec. 31, 2015
Restatement of Financial Statements [Abstract]
Restatement of Financial Statements [Text Block]	NOTE 2 – RESTATEMENT OF FINANCIAL STATEMENTS The Company has restated its previously issued consolidated financial statements for the years ended September 30, 2015 to reflect emergent developments related to income tax following the completion of an Internal Revenue Service tax audit of the Company’s 2006 tax return. This restatement is necessitated by the Internal Revenue Service disallowing certain deductions on ERHC’s 2006 tax return. The disallowance was the outcome of an Internal Revenue Service audit of ERHC’s 2006 return, which audit lasted nearly seven years and has been previously disclosed. The Company appears unable to offset the tax liabilities against certain net operating losses from 2008 as a result of the failure to file form 1139 with the Internal Revenue Service. September 30, 2015 (As restated) As Previously Reported Adjustment As Restated Income tax payable $ - $ 2,739,607 $ 2,739,607 Total current liabilities $ 1,968,231 $ 2,739,607 $ 4,707,838 Total liabilities $ 1,971,105 $ 2,739,607 $ 4,710,712 Accumulated deficits $ (99,498,316 $ (2,739,607 $ (102,237,923 ) Total shareholders’ equity $ 5,416,616 $ (2,739,607 $ 2,677,009

FAIR VALUE OF FINANCIAL INSTRUM

FAIR VALUE OF FINANCIAL INSTRUMENTS	3 Months Ended
	Dec. 31, 2015
FAIR VALUE OF FINANCIAL INSTRUMENTS [Abstract]
FAIR VALUE OF FINANCIAL INSTRUMENTS	NOTE 3 – 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 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 ASC 820. During the three months ended December 31, 2015, the Company's investment in the common stock of (“OER”), a Canadian oil and gas company that trades on the Toronto Stock Exchange (TSX) increased in value by $236,464. This increase in value is included as an increase in stockholders' equity in accumulated other comprehensive loss. 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 6. 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 December 31, 2015, the Company did not have any derivative instruments that were designated as hedges. The derivative liability as of December 31, 2015, in the amount of $533,476 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 December 31, 2015: Derivative Liability Balance at September 30, 2015 $ 725,898 Increase in derivative value due to issuances of convertible promissory notes - Decrease in derivative value due to convertible promissory notes converted to common stocks (80,038 ) Change in fair market value of derivative liabilities on convertible notes due to the mark to market adjustment (112,384 ) Balance at December 31, 2015 $ 533,476

OIL AND GAS CONCESSIONS

OIL AND GAS CONCESSIONS	3 Months Ended
	Dec. 31, 2015
OIL AND GAS CONCESSIONS [Abstract]
OIL AND GAS CONCESSIONS	NOTE 4 – OIL AND GAS CONCESSIONS The following is an analysis of the cost of oil and gas concessions at December 31, 2015 and September 30, 2015: December 31, 2015 September 30, 2015 DRSTP concession $ 2,271,601 $ 3,113,795 Chad concession 2,800,600 2,800,600 Pending concessions in other African countries 101,619 101,619 $ 5,173,820 $ 6,016,014 In October 2015, the Company reached an agreement with Kosmos Energy (NYSE: KOS), a leading independent oil and gas exploration and production company focused on frontier and emerging areas to transfer all ERHC's rights to Block 11 of the São Tomé and Principe Exclusive Economic Zone (EEZ) to Kosmos. The agreement has been approved by the National Petroleum Agency of Sao Tome & Principe ("ANP-STP") as required in the requisite Production Sharing Contract ("PSC") for EEZ Block 11. The purchase price for the assigned interest consist of a fixed sum in the amount of $2.5 million signing fee, plus reimbursement for verifiable cost paid by the Company prior to July 1, 2015 subject to maximum amount of $1.5 million. In connection with this agreement, the Company received $1.5 million and recognized a gain of $657,806 of reimbursement of exploration costs incurred during the three months ended December 31, 2015.

CONVERTIBLE DEBT

CONVERTIBLE DEBT	3 Months Ended
	Dec. 31, 2015
CONVERTIBLE DEBT [Abstract]
CONVERTIBLE DEBT	NOTE 5 – CONVERTIBLE DEBT The Company had the following convertible debt outstanding at December 31, 2015: Lender Date of Agreement Term (Months) Annual Interest Rate Face Value Accrued Interest Discount Net Convertible Note Payable Note Derivative Liability Redwood Fund III 5/15/2014 6 12.00 % $ 40,000 $ 5,918 $ 15,867 $ 30,051 $ 91,547 Tonaquint, Inc 10/7/2014 12 22.00 % 98,177 46,416 - 144,593 164,887 JMJ Financial #3 10/22/2014 24 5.83 % 8,900 5,556 10,651 3,805 20,177 Cardinal Capital Group 11/6/2014 24 22.00 % 43,998 30,133 38,061 36,070 69,784 Rock Capital 2/6/2015 12 10.00 % 23,005 - 10,359 12,646 54,032 Union Capital #3 2/17/2015 12 8.00 % 19,500 - - 19,500 40,329 LG Capital #3 3/10/2015 12 8.00 % 52,500 - 30,325 22,175 92,720 $ 286,080 $ 88,023 $ 105,263 $ 268,840 $ 533,476 The Company had the following convertible debt outstanding at September 30, 2015: Lender Date of Agreement Term (Months) Annual Interest Rate Face Value Accrued Interest Discount Net Convertible Note Payable Note Derivative Liability Redwood Fund III 5/15/2014 6 12.00 % $ 40,000 $ 5,918 $ 15,867 $ 30,051 $ 114,005 Tonaquint, Inc 10/7/2014 12 22.00 % 98,177 46,416 16,700 127,893 128,566 JMJ Financial #3 10/22/2014 24 5.83 % 8,900 5,556 11,582 2,874 27,375 LG Capital #2 10/23/2014 12 8.00 % 23,533 2,500 9,398 16,635 52,628 Cardinal Capital Group 11/6/2014 24 22.00 % 43,998 30,133 41,984 32,147 94,158 Rock Capital 2/6/2015 12 10.00 % 23,005 - 20,351 2,654 67,377 Union Capital #3 2/17/2015 12 8.00 % 34,500 - - 34,500 93,039 Adar Bay #2 2/19/2015 12 8.00 % 12,000 - 11,742 258 39,280 LG Capital #3 3/10/2015 12 8.00 % 52,500 - 43,388 9,112 109,470 $ 336,613 $ 90,523 $ 171,012 $ 256,124 $ 725,898 During the three months ended December 31, 2015, the Company issued an aggregate of 514,571 shares of common stock for conversion of convertible debts of $27,841 and decrease in derivative value due to conversion of $80,038. The following table summarizes conversion terms of the notes outstanding at December 31, 2015: Lender Date of Agreement Term Of Conversion Eligible for Conversion Redwood Fund III May 15, 2014 Conversion Price shall be 55% of the lowest traded price, determined on the then current trading market for the Company’s common stock, for 20 trading days prior to conversion. 180 after the effective dates JMJ Financial October 22, 2014 Conversion Price shall be lesser of $0.06 or 60% of lowest trade price in the 25 trading days previous to conversion. 180 after the effective dates Tonaquint, Inc October 7, 2014 Conversion price shall be 65% (the “Conversion Factor”) of the lowest intra-day trade price of Borrower’s common stock (“Common Stock”) in the twenty-five (25) Trading Days immediately preceding the Conversion . 180 after the effective date Cardinal Capital Group November 6, 2014 Conversion price shall equal the lesser of (a) $0.05 or (b) 60% of the lowest trade occurring during the twenty five (25) consecutive Trading Days immediately preceding the applicable Conversion Date on which the Holder elects to convert all or part of this Note, subject to adjustment as provided in this Note. 180 after the effective date Rock Capital February 6, 2015 Conversion price shall equal be 55% of the lowest closing bid price of the Common Stock as reported on the National Quotations Bureau OTCQB exchange which the Company’s shares are traded or any exchange upon which the Common Stock may be traded in the future ("Exchange"), for the twenty prior trading days including the day upon which a Notice of Conversion is received by the Company (provided such Notice of Conversion is delivered by fax or other electronic method of communication to the Company after 4 P.M. Eastern Standard or Daylight Savings Time if the Holder wishes to include the same day closing price). 180 after the effective date Union Capital February 17, 2015 Conversion price shall equal be 55% of the lowest closing bid price of the Common Stock as reported on the National Quotations Bureau OTCQB exchange which the Company’s shares are traded or any exchange upon which the Common Stock may be traded in the future ("Exchange"), for the twenty prior trading days including the day upon which a Notice of Conversion is received by the Company (provided such Notice of Conversion is delivered by fax or other electronic method of communication to the Company after 4 P.M. Eastern Standard or Daylight Savings Time if the Holder wishes to include the same day closing price). 180 after the effective dates LG Capital #3 March 10, 2015 Conversion price shall equal be 60% of the lowest trading price of the Common Stock as reported on the National Quotations Bureau OTCQB exchange which the Company’s shares are traded or any exchange upon which the Common Stock may be traded in the future, for the twenty prior trading days including the day upon which a Notice of Conversion is received by the Company. 180 after the effective date As of December 31, 2015, Company recorded the following deferred origination costs related to the convertible notes: Lender Date of Agreement Finder's Fees Deferred Debt Origination Costs Due at Maturity Legal and Other Debt Origination Costs Deferred Debt Origination Costs at September 30, 2015 Additions Amortization Deferred Debt Origination Costs at December 31, 2015 Various Various $ - $ - $ 52,500 $ 14,340 $ - $ - $ 14,340 Tonaquint, Inc #2 10/7/2014 10,000 5,000 15,000 15,098 - 98 15,000 JMJ Financial # 3 10/22/2014 5,000 - 5,556 5,000 - - 5,000 LG Capital #2 10/23/2014 5,000 2,500 2,500 506 - 506 - Cardinal Group 11/6/2014 - 8,500 6,500 9,333 - 190 9,143 KBM Worldwide #7 1/12/2015 - 4,500 - 4,500 - - 4,500 Rock Capital 2/6/2015 - 1,000 4,500 5,311 - - 5,311 Union Capital #3 2/17/2015 - 1,500 4,500 1,500 - - 1,500 Adar Bay #2 2/19/2015 - 3,500 - 3,500 - 3,137 363 LG Capital #3 3/10/2015 - 4,000 7,500 2,622 - - 2,622 $ 20,000 $ 30,500 $ 98,556 $ 61,710 $ - $ 3,931 $ 57,779

DERIVATIVE LIABILITIES

DERIVATIVE LIABILITIES	3 Months Ended
	Dec. 31, 2015
DERIVATIVE LIABILITIES [Abstract]
DERIVATIVE LIABILITIES	NOTE 6 – DERIVATIVE LIABILITIES As described in Notes 3 and 5, 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 December 31, 2015 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; · The Derivative Convertible Notes convert at 40% 60% · 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 260% and 284%; · The Company would redeem the notes initially 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 3, 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 December 31, 2015 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 101% and 103%; · The Holder would exercise the warrant as they become exercisable at target prices of two times · The Feltang Warrants have expired in the period ending September 30, 2015 without being exercised. 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 December 31, 2015 was an aggregate of $533,476. During the three months ended December 31, 2015, the Company recorded an aggregate $112,384 gain on change in fair value of derivative liabilities. See Note 3 for more information.

INCOME TAX PAYABLE

INCOME TAX PAYABLE	3 Months Ended
	Dec. 31, 2015
INCOME TAX PAYABLE [Abstract]
INCOME TAX PAYABLE	NOTE 7 – INCOME TAX PAYABLE During January 2016, the IRS examination identified The disallowance was the outcome of an Internal Revenue Service audit of ERHC’s 2006 return, which audit lasted nearly seven years and has been previously disclosed.

STOCKHOLDERS' EQUITY

STOCKHOLDERS' EQUITY	3 Months Ended
	Dec. 31, 2015
STOCKHOLDERS' EQUITY [Abstract]
STOCKHOLDERS' EQUITY	NOTE 8 – STOCKHOLDERS' EQUITY On December 15, 2015, ERHCs' shareholders approved a hundred for one reverse stock split of ERHC's common stock. The reverse stock split became effective on January 15, 2016, and ERHCs' shares of common stock began trading on a post-split basis on the OTC Bulletin Board. The numbers of common stock for periods presented in the consolidated financial statements have been retroactively adjusted to reflect the one-for-hundred reverse stock split. During the three months ended December 31, 2015 and 2014, the Company recognized compensation expense of $0 and $8,400, respectively, related to service granted by the Board of Directors. During the three months ended December 31, 2015 and 2014, the Company issued an aggregate of 514,571 and 572,050 shares, respectively, of common stock for conversion of convertible debt with total valued of $27,841 and $459,750, respectively. As of December 31, 2015 and 2014, there were 41,500 options outstanding, respectively; none of which are exercisable. These options have a weighted average remaining term of six days and an intrinsic value of zero. Unamortized compensation cost related to these options amounted to $0.

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES	3 Months Ended
	Dec. 31, 2015
COMMITMENTS AND CONTINGENCIES [Abstract]
COMMITMENTS AND CONTINGENCIES	NOTE 9 – COMMITMENTS AND CONTINGENCIES COMMITMENTS UNDER PRODUCTION SHARE CONTRACTS 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. 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. 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. Republic of Chad Concession Fees and Other Financial Commitments On June 30, 2011, ERHC entered into a production sharing contract ("PSC") with Chad for certain onshore hydrocarbon exploration and development. In September 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. As of December 31, 2015, ERHC has paid or incurred: a. $2,000,000 as the entire signature bonus b. $320,600 in advisers' and ancillary costs related to the PSC c. $480,000 as legal fees and costs for the drafting and negotiation of the PSC, as provided for in the PSC d. $190,872 as costs of Environmental Impact Study, as provided for in the PSC e. $448,000 on Aeromagnetic data acquisition survey, in fulfillment of work program obligations under the PSC f. $378,374 2015 Training and Surface rental fees, as provided in the PSC LEGAL PROCEEDINGS JDZ Blocks 5 and 6 Lawsuit The Company's rights in JDZ Blocks 5 and 6 are currently the subject of legal proceedings at t tion that its rights in the two Blocks remain intact. The issue in contention is contractual. The Company was awarded a 15 percent working interest in each of the Blocks in a 2004/5 bid/licensing round conducted by the JDA following the Company's exercise of preferential rights in the Blocks as guaranteed by contract and treaty. The JDA and the Government of STP contend that certain correspondence issued by a previous CEO/President of the Company in 2006 amount to a relinquishment of the Company's rights in Blocks 5 and 6 under the Company's contracts with STP which provide for the rights. The Company contends that no such relinquishment has occurred and has sought recourse to arbitration accordingly. It also filed the suit to prevent any tampering with its said rights in JDZ Blocks 5 and 6 pending the outcome of arbitration. 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 EVENT

SUBSEQUENT EVENT	3 Months Ended
	Dec. 31, 2015
SUBSEQUENT EVENT [Abstract]
SUBSEQUENT EVENT	NOTE 10 – SUBSEQUENT EVENT On December 15, 2015, ERHCs' shareholders approved a proposal authorizing ERHCs' Board of Directors to effect a one hundred-for-one reverse stock split of ERHC's common stock. The reverse stock split took effect on January 15, 2016. Number of common stocks for periods presented in the consolidated financial statements has been retroactively adjusted to reflect the one-for-hundred reverse stock split. On January 22, 2016, LG Capital, Funding LLC converted a principle balance of $5,000 into 636,565 shares of the Company’s common stock. On February 2, 2016, Tonaquint, Inc. converted principle amount of $30,625 into 700,000 shares of the Company’s common stock. On January 22, 2016, the Company . the Company

BASIS OF PRESENTATION AND BUS17

BASIS OF PRESENTATION AND BUSINESS ORGANIZATION (Policies)	3 Months Ended
	Dec. 31, 2015
BASIS OF PRESENTATION AND BUSINESS ORGANIZATION [Abstract]
Recent Accounting Pronouncements	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.
Going Concern	Going Concern The accompanying consolidated financial statements have been prepared on the basis that the Company will continue as a going concern which contemplates the realization of assets and the satisfaction of liabilities in the ordinary and usual course of business. As of December 31, 2015, the Company has a working capital deficit and negative cash flows from operating activities. This condition raises substantial doubt about the Company’s ability to continue as a going concern. The ability of the Company to continue as a going concern is dependent on raising additional capital to fund ongoing explora tion projects and ultimately on attaining future profitable operations. The Company is continuing with its plan to further seek new opportunity for farm-out its assets in Kenya, Chad and the Săo Tomé and Príncipe Exclusive Economic Zone. Management believe

RESTATEMENT OF FINANCIAL STAT18

RESTATEMENT OF FINANCIAL STATEMENTS (Tables)	3 Months Ended
	Dec. 31, 2015
Restatement of Financial Statements [Abstract]
Effect of the Restatement on Consolidated Financial Statements	This restatement is necessitated by the Internal Revenue Service disallowing certain deductions on ERHC’s 2006 tax return. The disallowance was the outcome of an Internal Revenue Service audit of ERHC’s 2006 return, which audit lasted nearly seven years and has been previously disclosed. The Company appears unable to offset the tax liabilities against certain net operating losses from 2008 as a result of the failure to file form 1139 with the Internal Revenue Service. September 30, 2015 (As restated) As Previously Reported Adjustment As Restated Income tax payable $ - $ 2,739,607 $ 2,739,607 Total current liabilities $ 1,968,231 $ 2,739,607 $ 4,707,838 Total liabilities $ 1,971,105 $ 2,739,607 $ 4,710,712 Accumulated deficits $ (99,498,316 $ (2,739,607 $ (102,237,923 ) Total shareholders’ equity $ 5,416,616 $ (2,739,607 $ 2,677,009

FAIR VALUE OF FINANCIAL INSTR19

FAIR VALUE OF FINANCIAL INSTRUMENTS (Tables)	3 Months Ended
	Dec. 31, 2015
FAIR VALUE OF FINANCIAL INSTRUMENTS [Abstract]
Summary of changes in fair value of the Company's 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 December 31, 2015: Derivative Liability Balance at September 30, 2015 $ 725,898 Increase in derivative value due to issuances of convertible promissory notes - Decrease in derivative value due to convertible promissory notes converted to common stocks (80,038 ) Change in fair market value of derivative liabilities on convertible notes due to the mark to market adjustment (112,384 ) Balance at December 31, 2015 $ 533,476

OIL AND GAS CONCESSIONS (Tables

OIL AND GAS CONCESSIONS (Tables)	3 Months Ended
	Dec. 31, 2015
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 December 31, 2015 and September 30, 2015: December 31, 2015 September 30, 2015 DRSTP concession $ 2,271,601 $ 3,113,795 Chad concession 2,800,600 2,800,600 Pending concessions in other African countries 101,619 101,619 $ 5,173,820 $ 6,016,014

CONVERTIBLE DEBT (Tables)

CONVERTIBLE DEBT (Tables)	3 Months Ended
	Dec. 31, 2015
CONVERTIBLE DEBT [Abstract]
Convertible debt outstanding	The Company had the following convertible debt outstanding at December 31, 2015: Lender Date of Agreement Term (Months) Annual Interest Rate Face Value Accrued Interest Discount Net Convertible Note Payable Note Derivative Liability Redwood Fund III 5/15/2014 6 12.00 % $ 40,000 $ 5,918 $ 15,867 $ 30,051 $ 91,547 Tonaquint, Inc 10/7/2014 12 22.00 % 98,177 46,416 - 144,593 164,887 JMJ Financial #3 10/22/2014 24 5.83 % 8,900 5,556 10,651 3,805 20,177 Cardinal Capital Group 11/6/2014 24 22.00 % 43,998 30,133 38,061 36,070 69,784 Rock Capital 2/6/2015 12 10.00 % 23,005 - 10,359 12,646 54,032 Union Capital #3 2/17/2015 12 8.00 % 19,500 - - 19,500 40,329 LG Capital #3 3/10/2015 12 8.00 % 52,500 - 30,325 22,175 92,720 $ 286,080 $ 88,023 $ 105,263 $ 268,840 $ 533,476 The Company had the following convertible debt outstanding at September 30, 2015: Lender Date of Agreement Term (Months) Annual Interest Rate Face Value Accrued Interest Discount Net Convertible Note Payable Note Derivative Liability Redwood Fund III 5/15/2014 6 12.00 % $ 40,000 $ 5,918 $ 15,867 $ 30,051 $ 114,005 Tonaquint, Inc 10/7/2014 12 22.00 % 98,177 46,416 16,700 127,893 128,566 JMJ Financial #3 10/22/2014 24 5.83 % 8,900 5,556 11,582 2,874 27,375 LG Capital #2 10/23/2014 12 8.00 % 23,533 2,500 9,398 16,635 52,628 Cardinal Capital Group 11/6/2014 24 22.00 % 43,998 30,133 41,984 32,147 94,158 Rock Capital 2/6/2015 12 10.00 % 23,005 - 20,351 2,654 67,377 Union Capital #3 2/17/2015 12 8.00 % 34,500 - - 34,500 93,039 Adar Bay #2 2/19/2015 12 8.00 % 12,000 - 11,742 258 39,280 LG Capital #3 3/10/2015 12 8.00 % 52,500 - 43,388 9,112 109,470 $ 336,613 $ 90,523 $ 171,012 $ 256,124 $ 725,898
Summary of conversion terms of the notes outstanding	The following table summarizes conversion terms of the notes outstanding at December 31, 2015: Lender Date of Agreement Term Of Conversion Eligible for Conversion Redwood Fund III May 15, 2014 Conversion Price shall be 55% of the lowest traded price, determined on the then current trading market for the Company’s common stock, for 20 trading days prior to conversion. 180 after the effective dates JMJ Financial October 22, 2014 Conversion Price shall be lesser of $0.06 or 60% of lowest trade price in the 25 trading days previous to conversion. 180 after the effective dates Tonaquint, Inc October 7, 2014 Conversion price shall be 65% (the “Conversion Factor”) of the lowest intra-day trade price of Borrower’s common stock (“Common Stock”) in the twenty-five (25) Trading Days immediately preceding the Conversion . 180 after the effective date Cardinal Capital Group November 6, 2014 Conversion price shall equal the lesser of (a) $0.05 or (b) 60% of the lowest trade occurring during the twenty five (25) consecutive Trading Days immediately preceding the applicable Conversion Date on which the Holder elects to convert all or part of this Note, subject to adjustment as provided in this Note. 180 after the effective date Rock Capital February 6, 2015 Conversion price shall equal be 55% of the lowest closing bid price of the Common Stock as reported on the National Quotations Bureau OTCQB exchange which the Company’s shares are traded or any exchange upon which the Common Stock may be traded in the future ("Exchange"), for the twenty prior trading days including the day upon which a Notice of Conversion is received by the Company (provided such Notice of Conversion is delivered by fax or other electronic method of communication to the Company after 4 P.M. Eastern Standard or Daylight Savings Time if the Holder wishes to include the same day closing price). 180 after the effective date Union Capital February 17, 2015 Conversion price shall equal be 55% of the lowest closing bid price of the Common Stock as reported on the National Quotations Bureau OTCQB exchange which the Company’s shares are traded or any exchange upon which the Common Stock may be traded in the future ("Exchange"), for the twenty prior trading days including the day upon which a Notice of Conversion is received by the Company (provided such Notice of Conversion is delivered by fax or other electronic method of communication to the Company after 4 P.M. Eastern Standard or Daylight Savings Time if the Holder wishes to include the same day closing price). 180 after the effective dates LG Capital #3 March 10, 2015 Conversion price shall equal be 60% of the lowest trading price of the Common Stock as reported on the National Quotations Bureau OTCQB exchange which the Company’s shares are traded or any exchange upon which the Common Stock may be traded in the future, for the twenty prior trading days including the day upon which a Notice of Conversion is received by the Company. 180 after the effective date
Deferred origination costs related to the convertible notes	As of December 31, 2015, Company recorded the following deferred origination costs related to the convertible notes: Lender Date of Agreement Finder's Fees Deferred Debt Origination Costs Due at Maturity Legal and Other Debt Origination Costs Deferred Debt Origination Costs at September 30, 2015 Additions Amortization Deferred Debt Origination Costs at December 31, 2015 Various Various $ - $ - $ 52,500 $ 14,340 $ - $ - $ 14,340 Tonaquint, Inc #2 10/7/2014 10,000 5,000 15,000 15,098 - 98 15,000 JMJ Financial # 3 10/22/2014 5,000 - 5,556 5,000 - - 5,000 LG Capital #2 10/23/2014 5,000 2,500 2,500 506 - 506 - Cardinal Group 11/6/2014 - 8,500 6,500 9,333 - 190 9,143 KBM Worldwide #7 1/12/2015 - 4,500 - 4,500 - - 4,500 Rock Capital 2/6/2015 - 1,000 4,500 5,311 - - 5,311 Union Capital #3 2/17/2015 - 1,500 4,500 1,500 - - 1,500 Adar Bay #2 2/19/2015 - 3,500 - 3,500 - 3,137 363 LG Capital #3 3/10/2015 - 4,000 7,500 2,622 - - 2,622 $ 20,000 $ 30,500 $ 98,556 $ 61,710 $ - $ 3,931 $ 57,779

BASIS OF PRESENTATION AND BUS22

BASIS OF PRESENTATION AND BUSINESS ORGANIZATION (Details)	Jan. 15, 2016	Dec. 15, 2015
Subsequent Event [Line Items]
Reverse stock split	0.01
Common Stock [Member]
Subsequent Event [Line Items]
Reverse stock split		0.01
Subsequent Event [Member] | Common Stock [Member]
Subsequent Event [Line Items]
Reverse stock split	0.01

RESTATEMENT OF FINANCIAL STAT23

RESTATEMENT OF FINANCIAL STATEMENTS (Details) - USD ($)	3 Months Ended
	Dec. 31, 2015	Sep. 30, 2015
Restatement of Financial Statements [Abstract]
Number Of Years For Term Of Audit	7 years
Effect of Restatement on Consolidated Financial Statements [Abstract]
Income tax payable		$ 2,739,607
Total current liabilities	$ 3,763,875	4,707,838
Total liabilities	3,763,875	4,710,712
Accumulated deficits	(102,549,127)	(102,237,923)
Total shareholders' equity	$ 2,710,148	2,677,009
As Previously Reported [Member]
Effect of Restatement on Consolidated Financial Statements [Abstract]
Income tax payable		0
Total current liabilities		1,968,231
Total liabilities		1,971,105
Accumulated deficits		(99,498,316)
Total shareholders' equity		5,416,616
Adjustment [Member]
Effect of Restatement on Consolidated Financial Statements [Abstract]
Income tax payable		2,739,607
Total current liabilities		2,739,607
Total liabilities		2,739,607
Accumulated deficits		(2,739,607)
Total shareholders' equity		$ (2,739,607)

FAIR VALUE OF FINANCIAL INSTR24

FAIR VALUE OF FINANCIAL INSTRUMENTS (Details) - USD ($)	3 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
FAIR VALUE OF FINANCIAL INSTRUMENTS [Abstract]
Increase in stockholders' equity in accumulated other comprehensive income.	$ 236,464	$ (219,363)
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Increase (Decrease) in derivative value	(112,384)	(114,674)
Change in fair market value of derivative liabilities	112,384	$ 114,674
Warrant [Member]
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Change in fair market value of derivative liabilities	112,384
Derivative Liability [Member] | Fair Value, Inputs, Level 3 [Member]
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Balance at September 30, 2015	725,898
Balance at December 31, 2015	533,476
Derivative Liability [Member] | Fair Value, Inputs, Level 3 [Member] | Common Stock [Member]
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Increase (Decrease) in derivative value	(80,038)
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 (Decrease) in derivative value	0
Change in fair market value of derivative liabilities	$ (112,384)

OIL AND GAS CONCESSIONS (Detail

OIL AND GAS CONCESSIONS (Details) - USD ($)	Oct. 15, 2015	Dec. 31, 2015	Dec. 31, 2014	Sep. 30, 2015
Analysis of cost of oil and gas concessions [Abstract]
Oil and gas concessions		$ 5,173,820		$ 6,016,014
Proceeds from sale of oil and gas property and equipment		1,500,000	$ 239,515
Gain on sale of interest in oil and gas concessions, net		657,806	$ 239,515
DRSTP Concession [Member]
Analysis of cost of oil and gas concessions [Abstract]
Oil and gas concessions		2,271,601		3,113,795
Chad Concession [Member]
Analysis of cost of oil and gas concessions [Abstract]
Oil and gas concessions		2,800,600		2,800,600
Pending Concessions in Other African Countries [Member]
Analysis of cost of oil and gas concessions [Abstract]
Oil and gas concessions		$ 101,619		$ 101,619
Kosmos Energy [Member]
Analysis of cost of oil and gas concessions [Abstract]
Signing fee for agreement	$ 2,500,000
Maximum amount reinvestment for verifiable cost	1,500,000
Proceeds from sale of oil and gas property and equipment	1,500,000
Gain on sale of interest in oil and gas concessions, net	$ 657,806

CONVERTIBLE DEBT (Details)

CONVERTIBLE DEBT (Details) - USD ($)	3 Months Ended		12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Sep. 30, 2015
Line of Credit Facility [Line Items]
Face value	$ 286,080		$ 336,613
Accrued Interest	88,023		90,523
Discount	105,263		171,012
Net Convertible Note Payable	268,840		256,124
Note Derivative Liability	533,476		725,898
Deferred origination costs related to the convertible notes [Abstract]
Transaction Costs	20,000
Deferred Debt Origination Costs Due at Maturity	30,500
Legal and Other Debt Origination Costs	98,556
Additions	0
Amortization	3,931
Net Deferred Debt Origination Costs	57,779		$ 61,710
Value of shares issued for convertible debt upon conversion	$ 27,841
Number of share issued for convertible debt upon conversion (in shares)	514,571
Decrease in derivative value due to conversion	$ (80,038)	$ (534,870)
JMJ Financial [Member]
Deferred origination costs related to the convertible notes [Abstract]
Date of Agreement	Oct. 22, 2014
Term of Conversion	Conversion Price shall be lesser of $0.06 or 60% of lowest trade price in the 25 trading days previous to conversion.
Conversion price	60.00%
Conversion price (in dollars per share)	$ 0.06
Trading days	25 trading days prior to conversion
Calculation period	25 days
Eligible for Conversion	180 after the effective dates
Eligible period for conversion	180 days
Redwood Fund III [Member]
Line of Credit Facility [Line Items]
Date of Agreement	May 15, 2014		May 15, 2014
Term	6 months		6 months
Annual Interest Rate	12.00%		12.00%
Face value	$ 40,000		$ 40,000
Accrued Interest	5,917		5,918
Discount	15,867		15,867
Net Convertible Note Payable	30,051		30,051
Note Derivative Liability	$ 91,547		114,005
Deferred origination costs related to the convertible notes [Abstract]
Date of Agreement	May 15, 2014
Term of Conversion	Conversion Price shall be 55% of the lowest traded price, determined on the then current trading market for the Company’s common stock, for 20 trading days prior to conversion.
Conversion price	55.00%
Trading days	20 trading days prior to conversion
Calculation period	20 days
Eligible for Conversion	180 after the effective dates
Eligible period for conversion	180 days
Various [Member]
Deferred origination costs related to the convertible notes [Abstract]
Transaction Costs	$ 0
Deferred Debt Origination Costs Due at Maturity	0
Legal and Other Debt Origination Costs	52,500
Additions	0
Amortization	0
Net Deferred Debt Origination Costs	$ 14,340		$ 14,340
Tonaquint, Inc [Member]
Line of Credit Facility [Line Items]
Date of Agreement	Oct. 7, 2014		Oct. 7, 2014
Term	12 months		12 months
Annual Interest Rate	22.00%		22.00%
Face value	$ 98,177		$ 98,177
Accrued Interest	46,416		46,416
Discount	0		16,700
Net Convertible Note Payable	144,593		127,893
Note Derivative Liability	$ 164,887		128,566
Deferred origination costs related to the convertible notes [Abstract]
Date of Agreement	Oct. 7, 2014
Term of Conversion	Conversion price shall be 65% (the “Conversion Factor”) of the lowest intra-day trade price of Borrower’s common stock (“Common Stock”) in the twenty-five (25) Trading Days immediately preceding the Conversion .
Conversion price	65.00%
Trading days	25 trading days prior to conversion
Calculation period	25 days
Eligible for Conversion	180 after the effective date
Eligible period for conversion	180 days
Union Capital [Member]
Deferred origination costs related to the convertible notes [Abstract]
Date of Agreement	Feb. 17, 2015
Term of Conversion	Conversion price shall equal be 55% of the lowest closing bid price of the Common Stock as reported on the National Quotations Bureau OTCQB exchange which the Company’s shares are traded or any exchange upon which the Common Stock may be traded in the future ("Exchange"), for the twenty prior trading days including the day upon which a Notice of Conversion is received by the Company (provided such Notice of Conversion is delivered by fax or other electronic method of communication to the Company after 4 P.M. Eastern Standard or Daylight Savings Time if the Holder wishes to include the same day closing price).
Conversion price	55.00%
Trading days	25 trading days prior to conversion
Calculation period	25 days
Eligible for Conversion	180 after the effective dates
Eligible period for conversion	180 days
Tonaquint, Inc 2 [Member]
Line of Credit Facility [Line Items]
Date of Agreement	Oct. 7, 2014
Deferred origination costs related to the convertible notes [Abstract]
Transaction Costs	$ 10,000
Deferred Debt Origination Costs Due at Maturity	5,000
Legal and Other Debt Origination Costs	15,000
Additions	0
Amortization	98
Net Deferred Debt Origination Costs	$ 15,000		$ 15,098
JMJ Financial 3 [Member]
Line of Credit Facility [Line Items]
Date of Agreement	Oct. 22, 2014		Oct. 22, 2014
Term	24 months		24 months
Annual Interest Rate	5.83%		5.83%
Face value	$ 8,900		$ 8,900
Accrued Interest	5,556		5,556
Discount	10,651		11,582
Net Convertible Note Payable	3,805		2,874
Note Derivative Liability	20,177		27,375
Deferred origination costs related to the convertible notes [Abstract]
Transaction Costs	5,000
Deferred Debt Origination Costs Due at Maturity	0
Legal and Other Debt Origination Costs	5,556
Additions	0
Amortization	0
Net Deferred Debt Origination Costs	$ 5,000		$ 5,000
LG Capital 2 [Member]
Line of Credit Facility [Line Items]
Date of Agreement	Oct. 23, 2014		Oct. 23, 2014
Term			12 months
Annual Interest Rate			8.00%
Face value			$ 23,533
Accrued Interest			2,500
Discount			9,398
Net Convertible Note Payable			16,635
Note Derivative Liability			52,628
Deferred origination costs related to the convertible notes [Abstract]
Transaction Costs	$ 5,000
Deferred Debt Origination Costs Due at Maturity	2,500
Legal and Other Debt Origination Costs	2,500
Additions	0
Amortization	506
Net Deferred Debt Origination Costs	$ 0		$ 506
Cardinal Capital Group [Member]
Line of Credit Facility [Line Items]
Date of Agreement	Nov. 6, 2014		Nov. 6, 2014
Term	24 months		24 months
Annual Interest Rate	22.00%		22.00%
Face value	$ 43,998		$ 43,998
Accrued Interest	30,133		30,133
Discount	38,061		41,984
Net Convertible Note Payable	36,070		32,147
Note Derivative Liability	69,784		94,158
Deferred origination costs related to the convertible notes [Abstract]
Transaction Costs	0
Deferred Debt Origination Costs Due at Maturity	8,500
Legal and Other Debt Origination Costs	6,500
Additions	0
Amortization	190
Net Deferred Debt Origination Costs	$ 9,143		9,333
Date of Agreement	Nov. 6, 2014
Term of Conversion	Conversion price shall equal the lesser of (a) $0.05 or (b) 60% of the lowest trade occurring during the twenty five (25) consecutive Trading Days immediately preceding the applicable Conversion Date on which the Holder elects to convert all or part of this Note, subject to adjustment as provided in this Note.
Conversion price	60.00%
Conversion price (in dollars per share)	$ 0.05
Trading days	25 trading days prior to conversion
Calculation period	25 days
Eligible for Conversion	180 after the effective date
Eligible period for conversion	180 days
KBM World Wide7 [Member]
Line of Credit Facility [Line Items]
Date of Agreement	Jan. 12, 2015
Deferred origination costs related to the convertible notes [Abstract]
Transaction Costs	$ 0
Deferred Debt Origination Costs Due at Maturity	4,500
Legal and Other Debt Origination Costs	0
Additions	0
Amortization	0
Net Deferred Debt Origination Costs	$ 4,500		$ 4,500
Rock Capital [Member]
Line of Credit Facility [Line Items]
Date of Agreement	Feb. 6, 2015		Feb. 6, 2015
Term	12 months		12 months
Annual Interest Rate	10.00%		10.00%
Face value	$ 23,005		$ 23,005
Accrued Interest	0		0
Discount	10,359		20,351
Net Convertible Note Payable	12,646		2,654
Note Derivative Liability	54,032		67,377
Deferred origination costs related to the convertible notes [Abstract]
Transaction Costs	0
Deferred Debt Origination Costs Due at Maturity	1,000
Legal and Other Debt Origination Costs	4,500
Additions	0
Amortization	0
Net Deferred Debt Origination Costs	$ 5,311		$ 5,311
Date of Agreement	Feb. 6, 2015
Term of Conversion	Conversion price shall equal be 55% of the lowest closing bid price of the Common Stock as reported on the National Quotations Bureau OTCQB exchange which the Company’s shares are traded or any exchange upon which the Common Stock may be traded in the future ("Exchange"), for the twenty prior trading days including the day upon which a Notice of Conversion is received by the Company (provided such Notice of Conversion is delivered by fax or other electronic method of communication to the Company after 4 P.M. Eastern Standard or Daylight Savings Time if the Holder wishes to include the same day closing price).
Conversion price	55.00%
Trading days	25 trading days prior to conversion
Calculation period	25 days
Eligible for Conversion	180 after the effective date
Eligible period for conversion	180 days
Union Capital 3 [Member]
Line of Credit Facility [Line Items]
Date of Agreement	Feb. 17, 2015		Feb. 17, 2015
Term	12 months		12 months
Annual Interest Rate	8.00%		8.00%
Face value	$ 19,500		$ 34,500
Accrued Interest	0		0
Discount	0		0
Net Convertible Note Payable	19,500		34,500
Note Derivative Liability	40,329		93,039
Deferred origination costs related to the convertible notes [Abstract]
Transaction Costs	0
Deferred Debt Origination Costs Due at Maturity	1,500
Legal and Other Debt Origination Costs	4,500
Additions	0
Amortization	0
Net Deferred Debt Origination Costs	$ 1,500		$ 1,500
Adar Bay 2 [Member]
Line of Credit Facility [Line Items]
Date of Agreement	Feb. 19, 2015		Feb. 19, 2015
Term			12 months
Annual Interest Rate			8.00%
Face value			$ 12,000
Accrued Interest			0
Discount			11,742
Net Convertible Note Payable			258
Note Derivative Liability			39,280
Deferred origination costs related to the convertible notes [Abstract]
Transaction Costs	$ 0
Deferred Debt Origination Costs Due at Maturity	3,500
Legal and Other Debt Origination Costs	0
Additions	0
Amortization	3,137
Net Deferred Debt Origination Costs	$ 363		$ 3,500
LG Capital 3 [Member]
Line of Credit Facility [Line Items]
Date of Agreement	Mar. 10, 2015		Mar. 10, 2015
Term	12 months		12 months
Annual Interest Rate	8.00%		8.00%
Face value	$ 52,500		$ 52,500
Accrued Interest	0		0
Discount	30,325		43,388
Net Convertible Note Payable	22,175		9,112
Note Derivative Liability	92,720		109,470
Deferred origination costs related to the convertible notes [Abstract]
Transaction Costs	0
Deferred Debt Origination Costs Due at Maturity	4,000
Legal and Other Debt Origination Costs	7,500
Additions	0
Amortization	0
Net Deferred Debt Origination Costs	$ 2,622		$ 2,622
Date of Agreement	Mar. 10, 2015
Term of Conversion	Conversion price shall equal be 60% of the lowest trading price of the Common Stock as reported on the National Quotations Bureau OTCQB exchange which the Company’s shares are traded or any exchange upon which the Common Stock may be traded in the future, for the twenty prior trading days including the day upon which a Notice of Conversion is received by the Company.
Conversion price	60.00%
Trading days	20 trading days prior to conversion
Calculation period	20 days
Eligible for Conversion	180 after the effective date
Eligible period for conversion	180 days

DERIVATIVE LIABILITIES (Details

DERIVATIVE LIABILITIES (Details)	3 Months Ended
	Dec. 31, 2015USD ($)Time	Dec. 31, 2014USD ($)	Sep. 30, 2015USD ($)
Derivative [Line Items]
Multiplier of higher of the projected reset price or stock price to calculate warrant exercise price | Time	2
Fair value of the derivatives	$ 533,476		$ 725,898
Gain on change in fair value of derivative liabilities	$ 112,384	$ 114,674
Convertible Notes [Member]
Derivative [Line Items]
Initial percentage of event of default	0.00%
Increasing percentage of event of default	1.00%
Maximum percentage of event of default	10.00%
Initial percentage of redemption of notes	0.00%
Increasing percentage of redemption of notes	1.00%
Maximum percentage of redemption of notes	5.00%
Multiplier of conversion price to convert notes, maximum | Time	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 conversion of notes specified on market price	40.00%
Percentage of projected volatility curve	260.00%
Convertible Notes [Member] | Maximum [Member]
Derivative [Line Items]
Percentage of conversion of notes specified on market price	60.00%
Percentage of projected volatility curve	284.00%
Warrants [Member]
Derivative [Line Items]
Fair value of the derivatives	$ 533,476
Gain on change in fair value of derivative liabilities	$ 112,384
Warrants [Member] | Minimum [Member]
Derivative [Line Items]
Percentage of projected volatility curve	101.00%
Warrants [Member] | Maximum [Member]
Derivative [Line Items]
Percentage of projected volatility curve	103.00%

INCOME TAX PAYABLE (Details)

INCOME TAX PAYABLE (Details) - USD ($)	3 Months Ended
	Dec. 31, 2015	Sep. 30, 2015
INCOME TAX PAYABLE [Abstract]
Income tax payable	$ 2,739,607	$ 2,739,607
Years under audit	7 years

STOCKHOLDERS' EQUITY (Details)

STOCKHOLDERS' EQUITY (Details)	Jan. 15, 2016	Dec. 15, 2015	Dec. 31, 2015USD ($)shares	Dec. 31, 2014USD ($)shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Reverse stock split	0.01
Aggregate number of shares of common stock issued for conversion (in shares) | shares			514,571
Common Stock [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Reverse stock split		0.01
Shares granted (in shares) | shares			41,500	41,500
Intrinsic value			$ 0
Unamortized compensation cost			$ 0
Weighted average remaining contractual term			6 days
Aggregate number of shares of common stock issued for conversion (in shares) | shares			514,571	572,050
Total value of convertible debt upon conversion			$ 27,841	$ 459,750
Common Stock [Member] | Subsequent Event [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Reverse stock split	0.01
Common Stock [Member] | Directors [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation expense			$ 0	$ 8,400

COMMITMENTS AND CONTINGENCIES (

COMMITMENTS AND CONTINGENCIES (Details)	Oct. 31, 2013	Sep. 30, 2013Block	Dec. 31, 2015USD ($)
JDZ 5 [Member]
Loss Contingencies [Line Items]
Working interest awarded in mining concessions			15.00%
JDZ 6 [Member]
Loss Contingencies [Line Items]
Working interest awarded in mining concessions			15.00%
Kenya Concession [Member]
Loss Contingencies [Line Items]
Interest transferred and assigned	55.00%
Chad Concession [Member]
Loss Contingencies [Line Items]
Number of blocks relinquished under production sharing contract | Block		2
Number of blocks under production sharing contract | Block		3
Signature bonus commitment paid or incurred			$ 2,000,000
Professional fees			320,600
Legal fees			480,000
Environmental cost			190,872
Aeromagnetic cost			448,000
Training and surface rental fees			$ 378,374

SUBSEQUENT EVENT (Details)

SUBSEQUENT EVENT (Details)	Feb. 02, 2016USD ($)shares	Jan. 22, 2016USD ($)shares	Jan. 15, 2016	Dec. 15, 2015	Dec. 31, 2015shares	Sep. 30, 2015shares
Subsequent Event [Line Items]
Reverse stock split			0.01
Common stock, shares issued (in shares)					29,730,609	29,216,038
Common Stock [Member]
Subsequent Event [Line Items]
Reverse stock split				0.01
Common Stock [Member] | LG Capital, Funding LLC [Member]
Subsequent Event [Line Items]
Principal balance of investment converted | $		$ 5,000
Common stock, shares issued (in shares)		30,625
Subsequent Event [Member] | Common Stock [Member]
Subsequent Event [Line Items]
Reverse stock split			0.01
Subsequent Event [Member] | Common Stock [Member] | Tonaquint, Inc. [Member]
Subsequent Event [Line Items]
Principal balance of investment converted | $	$ 636,565
Common stock, shares issued (in shares)	700,000