Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Mar. 31, 2016 | May. 23, 2016 | |
Document And Entity Information | ||
Entity Registrant Name | AMERICAN ENERGY GROUP LTD | |
Entity Central Index Key | 843,212 | |
Document Type | 10-Q | |
Document Period End Date | Mar. 31, 2016 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --06-30 | |
Is Entity a Well-known Seasoned Issuer? | No | |
Is Entity a Voluntary Filer? | No | |
Is Entity's Reporting Status Current? | Yes | |
Entity Filer Category | Smaller Reporting Company | |
Entity Common Stock, Shares Outstanding | 64,518,674 | |
Document Fiscal Period Focus | Q3 | |
Document Fiscal Year Focus | 2,016 |
Balance Sheets
Balance Sheets - USD ($) | Mar. 31, 2016 | Jun. 30, 2015 |
Current Assets | ||
Cash | $ 24,999 | |
Prepaid expenses | $ 3,672 | 39,715 |
Total Current Assets | 3,672 | 64,714 |
Property and Equipment | ||
Office equipment | 25,670 | 25,670 |
Accumulated depreciation | (23,303) | (22,702) |
Net Property and Equipment | $ 2,367 | 2,968 |
Other Assets | ||
Investment in oil and gas working interest | 1,583,914 | |
Total Other Assets | 1,583,914 | |
Total Assets | $ 6,039 | $ 1,651,596 |
Current Liabilities | ||
Overdrawn cash | 79 | |
Accounts payable | 55,648 | $ 59,553 |
Note payable | 4,249 | 32,935 |
Accrued liabilities | 262,771 | 438,649 |
Notes payable - related parties, net of unamortized debt discount of $80,392 | 1,244,608 | 825,000 |
Total Liabilities | 1,567,355 | 1,356,137 |
Stockholders' Equity (Deficit) | ||
Common stock, par value $0.001 per share; authorized 80,000,000 shares; 63,118,674 and 60,469,757 shares issued and outstanding, respectively | 63,119 | 60,470 |
Capital in excess of par value | 17,278,132 | 16,560,954 |
Accumulated deficit | (18,902,567) | (16,325,965) |
Total Stockholders' Equity (Deficit) | (1,561,316) | 295,459 |
Total Liabilities and Stockholders' Equity (Deficit) | $ 6,039 | $ 1,651,596 |
Balance Sheets (Parenthetical)
Balance Sheets (Parenthetical) - USD ($) | Mar. 31, 2016 | Jun. 30, 2015 |
Balance Sheets Parenthetical | ||
Unamortized debt discount | $ 80,392 | $ 80,392 |
Stockholders' Equity (Deficit) | ||
Common Stock Par Value | $ 0.001 | $ 0.001 |
Common Stock Shares Authorized | 80,000,000 | 80,000,000 |
Common Stock Shares Issued | 63,118,674 | 60,469,757 |
Common Stock Shares Outstanding | 63,118,674 | 60,469,757 |
Statements of Operations (Unaud
Statements of Operations (Unaudited) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | Mar. 31, 2016 | Mar. 31, 2015 | |
Statements Of Operations | ||||
Revenue - Oil and gas royalties | $ 46,008 | $ 421,829 | ||
Expenses | ||||
Legal and professional | $ 186,532 | 52,705 | $ 318,086 | 203,923 |
Administrative salaries | 14,673 | 95,691 | 177,785 | 315,819 |
General and administrative | $ 35,859 | 32,763 | 138,682 | 127,323 |
Office overhead expenses | 13,397 | 8,028 | 33,340 | |
Depreciation | $ 200 | 175 | 601 | 526 |
Total Expenses | 237,264 | 194,731 | 643,182 | 680,931 |
Net Operating Income (Loss) | $ (237,264) | (148,723) | $ (643,182) | (259,102) |
Other Income and (Expense) | ||||
Warrant settlements | $ (44,647) | $ (78,132) | ||
Impairment loss | $ (1,583,914) | $ (1,583,914) | ||
Interest expense/debt discount related party | (76,590) | (338,242) | ||
Interest expense | (4,272) | $ (10,701) | (11,264) | $ (31,740) |
Total Other Income (Expense) | (1,664,776) | (55,348) | (1,933,420) | (109,872) |
Net Income (Loss) Before Taxes | $ (1,902,040) | $ (204,071) | $ (2,576,602) | $ (368,974) |
Income Taxes | ||||
Net Income (Loss) | $ (1,902,040) | $ (204,071) | $ (2,576,602) | $ (368,974) |
Earnings per Share | ||||
Basic | $ .00 | $ 0 | $ 0 | $ 0 |
Fully Diluted | $ 0 | $ 0 | $ 0 | $ 0 |
Weighted Average Number of Shares Outstanding | ||||
Basic | 62,720,879 | 52,353,764 | 61,543,064 | 51,855,156 |
Fully Diluted |
Statements of Cash Flows (Unaud
Statements of Cash Flows (Unaudited) - USD ($) | 9 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Cash Flows From Operating Activities | ||
Net Income (Loss) | $ (2,576,602) | $ (368,974) |
Adjustments to reconcile net loss to net cash (used in) operating activities: | ||
Depreciation | 601 | $ 526 |
Impairment loss | $ 1,583,914 | |
Warrant settlements | $ 78,132 | |
Amortization of debt discount | $ 298,031 | |
Common stock issued for current debt, services | $ 144,903 | $ 30,100 |
Changes in operating assets and liabilities: | ||
(Increase) decrease in oil and gas sales receivable | (421,829) | |
(Increase) decrease in prepaid expenses | $ 36,043 | 4,289 |
Increase (decrease) in accounts payable | (3,905) | $ (4,913) |
Increase (decrease) in overdrawn cash | 79 | |
Increase (decrease) in accrued expenses and other current liabilities | (175,877) | $ 178,908 |
Net Cash (Used In) Operating Activities | $ (692,813) | $ (503,761) |
Cash Flows From Investing Activities | ||
Cash Flows From Financing Activities | ||
Proceeds from the issuance of debt - related party | $ 500,000 | $ 175,000 |
Principal payments on notes payable | (28,686) | |
Proceeds from the issuance of common stock | 196,500 | $ 401,000 |
Net Cash Provided By Financing Activities | 667,814 | 576,000 |
Net Increase (Decrease) in Cash | (24,999) | 72,239 |
Cash and Cash Equivalents, Beginning of Period | $ 24,999 | 11,814 |
Cash and Cash Equivalents, End of Period | 84,053 | |
Cash Paid For: | ||
Interest | $ 6,017 | $ 6,030 |
Taxes | ||
Non-Cash Financing Activities: | ||
Common stock issued in satisfaction of accounts payable and accrued expenses | $ 15,000 | |
Common stock issued for services rendered | $ 144,903 | $ 30,100 |
General
General | 9 Months Ended |
Mar. 31, 2016 | |
Notes to Financial Statements | |
Note 1 - General | The accompanying unaudited condensed financial statements have been prepared by the Company pursuant to the rules and regulations of the Securities and Exchange Commission. Certain information and footnote disclosures normally included in financial statements prepared in accordance with generally accepted accounting principles have been condensed or omitted in accordance with such rules and regulations. The information furnished in the interim condensed financial statements includes normal recurring adjustments and reflects all adjustments, which, in the opinion of management, are necessary for a fair presentation of such financial statements. Although management believes the disclosures and information presented are adequate to make the information not misleading, it is suggested that these interim condensed financial statements be read in conjunction with the Company's audited financial statements and notes thereto included in its June 30, 2015 Annual Report on Form 10-K. Operating results for the three months and nine months ended March 31, 2016 are not necessarily indicative of the results that may be expected for the year ending June 30, 2016. |
Basic Loss Per Share of Common
Basic Loss Per Share of Common Stock | 9 Months Ended |
Mar. 31, 2016 | |
Notes to Financial Statements | |
Note 2 - Basic Loss Per Share of Common Stock | Three Months Ended Nine Months Ended March 31, March 31, March 31, March 31, 2016 2015 2016 2015 Income (Loss) (numerator) $ (1,902,040 ) $ (204,071 ) $ (2,576,602 ) $ (368,974 ) Basic Shares (denominator) 62,720,879 52,353,764 61,543,064 51,855,156 Fully Diluted Shares (denominator) NA NA NA NA Basic Income (Loss) Per Share $ (0.00 ) $ (0.00 ) $ (0.00 ) $ (0.00 ) Fully Diluted Earnings Per Share NA NA NA NA The basic income per share of common stock is based on the weighted average number of shares issued and outstanding during the period of the financial statements. Stock warrants convertible into 11,193,333 shares of common stock are included in the fully diluted income per share calculation. Fully diluted earnings per share information is not presented as the effects of common stock equivalents would have been anti-dilutive. |
Oil & Gas Sales Royalties Recei
Oil & Gas Sales Royalties Receivable and Revenue Recognition | 9 Months Ended |
Mar. 31, 2016 | |
Notes to Financial Statements | |
Note 3 - Oil & Gas Sales Royalties Receivable and Revenue Recognition | Prior to the year ended June 30, 2015, the Company recognized revenue in accordance with SEC SAB 104 which stipulates that pervasive evidence of an arrangement exists, delivery has occurred, the price is fixed or determinable, and collection is reasonably assured. Prior to the year ended June 30, 2015, our revenue was derived exclusively from an overriding royalty interest. The Company recognized royalty revenues when production had occurred and royalties were due and payable under its contract with Hycarbex (Note 10 Other Contingencies). During the year ended June 30, 2015, the Company was awarded 100% of the stock of Hycarbex. Our prior oil and gas receivable earned through our ownership of the 18% overriding royalty interest in the Yasin Concession was due from Hycarbex and was not collected prior to our successful litigation results and being awarded 100% of the actual stock of the Hycarbex entity. Upon re-acquisition of the Hycarbex subsidiary, the previously recognized oil and gas receivable was written off. Future oil and gas revenues will continue to be recorded in accordance with SEC SAB 104, upon obtaining full control of the entity. |
Common Stock
Common Stock | 9 Months Ended |
Mar. 31, 2016 | |
Notes to Financial Statements | |
Note 4 - Common Stock | During July, 2015, the Company issued 316,250 shares of common stock for cash at $0.16 per share and an additional 233,334 shares at $0.15 per share. During January, 2016, the Company issued 999,333 shares of common stock in lieu of cash payment for legal fees totaling $144,903. During February, 2016, the Company issued 1,100,000 shares of common stock for cash at $0.10 per share. |
Income Taxes
Income Taxes | 9 Months Ended |
Mar. 31, 2016 | |
Notes to Financial Statements | |
Note 5 - Income Taxes | The Company accounts for corporate income taxes in accordance with FASB ASC 740-10 "Income Taxes". FASB ASC 740-10 requires an asset and liability approach for financial accounting and reporting for income tax purposes. As of March 31, 2016, the Company had net operating loss carryovers of $54,588,730 which can be used to reduce future taxable income. No deferred tax benefit has been recorded related to these carryovers as utilization cannot be reasonably assured. |
Investment in Oil and Gas Worki
Investment in Oil and Gas Working Interest | 9 Months Ended |
Mar. 31, 2016 | |
Notes to Financial Statements | |
Note 6 - Investment in Oil and Gas Working Interest - Related Party | The Company owns an interest in two oil and gas leases located in Southeast Texas. The Company is exploring various opportunities to realize value from these interests, including potential farmout or sale. The Company intends to adopt the full cost method of accounting for oil and gas properties in the event that the Company develops their interests in these leases. As of March 31, 2016, the Company does not have any proved reserves as defined under FASB ASC 932-235-50 (formerly SFAS No. 69) and has not incurred any costs associated with the development of these oil and gas properties and had not received any oil and gas revenue from these leases. The carrying value of these leases is $0. Subsequent to the year ended June 30, 2015, the Company was awarded 100% of the stock of its previously wholly owned subsidiary, Hycarbex American Energy, Inc. Prior to the year ended June 30, 2015, the Company held an 18% gross royalty interest in the Yasin Concession in Pakistan, which was received in exchange for the original sale of Hycarbex. As of June 30, 2015, the Company had earned approximately $3,749,355, but not yet received payment for all royalties earned from their interest in this concession. Revenues to date derived from this interest were overriding in nature and there were no future financial obligations or commitments required of the Company to secure this royalty interest. The Company has not yet received full access to the historical financial and property records of Hycarbex since receiving the judgment award of the ICC subsequent to the year ended June 30, 2015. Oil and Gas properties currently determined to be owned by Hycarbex include working interests in five (5) large exploration blocks within Pakistan. These interests include: Block No. 2768-7 (Yasin), 673 square miles; Block No. 2667-8 (Zamzama North), 474 square miles; Block No. 3068-2 (Sanjawi), 871 square miles; Block No. 2466-8 (Karachi), 851 square miles; and Block No. 3371-13 (Peshawar), 960 square miles. Hycarbex is the registered owner of a 75% working interest in the Yasin Exploration Block, 95% working interest in the Karachi and Peshawar Exploration Blocks, 20% working interest in Zamzama North and Sanjawi Exploration Blocks, of which 10% is carried as to exploration costs with back-in rights to acquire an additional 10% working interest upon commercial discovery. Until full access to records and full concurrent control is obtained, Hycarbex operations have not and will not be consolidated with the accounts of the Company. In addition, on October 29, 2009, the Company executed an agreement to acquire from Hycarbex American Energy, Inc. (Hycarbex), a two and one half percent (2-1/2%) working interest in each of the 2,258 square kilometer Sanjawi Block No. 3068-2, Zone II, Baluchistan Province, Pakistan, and 1,229 square kilometer Zamzama North Block No. 2667-8, Zone III, Sindh Province, Pakistan. In exchange for the working interest, the Company issued (1) 2,000,000 shares of common stock to Hycarbex, (2) 100,000 warrants with a three year duration to purchase an additional 100,000 shares at $1.75 per share and (3) $100,000 in cash. The Company has the option to convert the two and one half percent working interests described above to a one and one half percent gross royalty working interest at any time. As of March 31, 2016 the Company has capitalized $0 related to these working interests. |
Impairment of Long-Lived Assets
Impairment of Long-Lived Assets | 9 Months Ended |
Mar. 31, 2016 | |
Notes to Financial Statements | |
Note 7 - Impairment of Long-Lived Assets | The Company reviews long-lived assets for impairment (such as Investment in Oil and Gas Working Interests) whenever events or changes in circumstances indicate that the carrying value of such assets may not be recoverable. During the quarter ended March 31, 2016, the Company was made aware that Heritage Oil and Gas Limited (Heritage), the operator of both the Zamzama North Exploration and the Sanjawi Exploration Licenses was given a Notice of Termination (Sanjawi Petroleum Concession Agreement notice dated February 12, 2016) and a Notice of Breach (Zamzama North Petroleum Concession Agreement notice dated February 22, 2016) by the Director General of Petroleum Concessions of the Government of Pakistan. Heritage has acknowledged and accepted the notice of termination in regards to the Sanjawi Petroleum Concession Agreement. Although Heritage has refuted the basis of the claim of Breach in regards to the Zamzama North Petroleum Concession Agreement asserting that all reasonable efforts have been made to fulfill its work commitments and financial obligations under this agreement but was prevented from doing so for reasons outside its control, the Company has determined that it is reasonably possible that the working interest investment in the Zamzama North Block will also not be recovered. As a result the Company recorded an impairment loss in the amount of $1,583,914 during the three months ended March 31, 2016 in relation to these oil and gas interests. |
Subsequent Events
Subsequent Events | 9 Months Ended |
Mar. 31, 2016 | |
Notes to Financial Statements | |
Note 8 - Subsequent Events | In accordance with ASC 855-10, management of the Company has reviewed all material events from March 31, 2016 through the date the financial statements were issued. During April 2016, the Company issued 400,000 shares of its common stock for cash at $0.15 per share. During May 2016, the Company issued 1,000,000 shares of common stock for legal services at a value of $0.20 per share. Subsequent to December 31, 2015, the Company extended the due date on its notes payable of $1,125,000 to related parties from February 5, 2016 until August 31, 2016. |
Notes Payable - Related Partie
Notes Payable - Related Parties | 9 Months Ended |
Mar. 31, 2016 | |
Notes to Financial Statements | |
Note 9 - Notes Payable - Related Parties | During the six months ended December 31, 2015, the Company borrowed $300,000 from a current shareholder with interest at 5%, payable in full at maturity. This note originally matured on February 5, 2016 but was extended to a maturity date of August 31, 2016. In addition, the Company extended the due date of its remaining related party notes payable of $825,000 from their original due date of February 5, 2016 to an extended due date of August 31, 2016. The Company also borrowed an additional $200,000 from an individual investor with interest at 5%, payable in full in three years. The Company incurred $45,458 of interest expense on notes payable during the nine months ended March 31, 2016. Warrants to acquire additional shares of common stock were issued in connection with $1,125,000 of the notes payable. Amortization of related debt discount resulted in $62,528 and $114,684, respectively of interest expense for the three months and nine months ended March 31, 2016. Unamortized debt discount remaining as of March 31, 2016 was $80,392. |
Other Contingencies - Litigatio
Other Contingencies - Litigation | 9 Months Ended |
Mar. 31, 2016 | |
Notes to Financial Statements | |
Note 10 - Other Contingencies - Litigation | In December, 2011, we initiated civil legal proceedings against Hycarbex and others in the High Court of Islamabad, Pakistan. Our pleadings with respect to the 2.5% carried working interest positions in the Sanjawi and Zamzama North concessions sought a registration of those interests with the Government of Pakistan and simultaneously sought the imposition of an injunction preventing the transfer of the working interest in those concessions until the registration can be effected, thereby protecting our interests. In our pleadings with respect to the Yasin concession and the right to receive 18% of the gross production revenues, our pleadings sought a referral to arbitration based upon ownership of, in effect, a 25% carried working interest to which is attributed 18% of gross production revenues and the right to receive pertinent records and data, the appointment of a receiver to both protect and cause disbursement of the 18% of gross revenues since the inception of production in April, 2011, and the imposition of an injunction against the transfer of the working interest in the Yasin concession.The Courtimmediatelyissued two injunction orders preserving the status quo as to the Company's interests in each of the Yasin, Sanjawi and Zamzama North petroleum concessions. On March 27, 2012, the Islamabad High Court issued its final order (later clarified as to certain arbitration procedures by a clarification Order dated April 4, 2012). The Court directed the parties to proceed to arbitration in London, UK under the ICC Rules of Arbitration and further reaffirmed the continuation of the pending temporary injunctions against Hycarbex's potential transfer of interests in the concessions prior to final resolution in the arbitration forum. Our application for the appointment of a receiver was neither granted nor denied, but was instead deferred by the Court to the arbitration forum. Hycarbex appealed the March 27, 2012 Order asserting that litigation should not have been initiated by American Energy without first going to arbitration, asserting that our claims to 18% of gross production revenues were premature (despite already having made some payments toward that production interest) because a "commercial discovery" had not yet been declared, and asserting that the injunctions had the effect of enjoining all of the working interest, not just a portion. American Energy countered with an appeal that the Court should reconsider the application for a receiver due to an existing arbitration rule which would prevent the arbitration forum from granting interim relief of that type, irrespective of the merits of such an application. These appeals have become moot by virtue of the ICC Partial Final Award described below. On April 10, 2012, pursuant to the terms of the March 27, 2012, Islamabad High Court Order, we filed our claim with the International Chamber of Commerce ("ICC") International Court of Arbitration seeking an order which voids, ab initio In February, 2013, we filed an Application For Interim Relief with the ICC which was heard by the tribunal on June 13, 2013. By Order dated September 25, 2013, the ICC granted all requests made by the Company against Hycarbex American Energy, Inc. ("Hycarbex"), Hycarbex Asia Pte, Ltd. ("Hycarbex Asia") and Hydro Tur, Ltd. ("Hydro Tur") in its Application For Interim Relief filed with the ICC in February, 2013 and presented to the ICC in a hearing conducted June 13, 2013. By Order dated September 25, 2013, the ICC granted to the Company all requested relief and therein ordered Hycarbex, Hycarbex Asia and Hydro Tur to do the following within fourteen (14) days of the Order: (1) to produce to the Company the records of production and sales from the Yasin petroleum concession in Pakistan for the period August 2011 through the date of the Order and to continue to do so pending further order, (2) to pay to the Company 18% of all sales proceeds of hydrocarbons received by such parties between August 2011 through December 2012, (3) to pay to the Company 18% of all sale proceeds of hydrocarbons received by such parties between December 2012 and the date of the Order, and (4) to direct the purchaser of the hydrocarbons to pay direct to the Company 18% of all future sale proceeds during the pendency of the arbitration proceedings. The ICC further ordered that in the event that Hycarbex, Hycarbex Asia and Hydro Tur fail to produce to the Company the production and sales records for the period August 2011 through December 2012 within the fourteen (14) days following the Order, that such parties are ordered to pay to the Company $1,436,138 as an approximate interim amount pending the determination of actual sales proceeds from the actual records. The ICC further ordered that in the event that Hycarbex, Hycarbex Asia and Hydro Tur fail to produce to the Company the production and sales records for the period December 2012 through the date of the Order and continue to do so, that the arbitration tribunal will consider an application from the Company for a further Order as to an approximate interim monetary amount pending the determination of actual sale proceeds for such period. The Order granting interim relief is not appealable to a court or other tribunal and under Pakistan's Arbitration Act of 1940, international arbitration orders are enforceable in the Pakistan courts. Subsequent to the ICC Order, Hycarbex produced certain sales records and other records of Hycarbex but Hycarbex and Hycarbex Asia failed to pay the ordered monetary sum. Hycarbex and Hycarbex Asia also requested a modification of the Order granting interim relief. The Order was not suspended by the ICC while this request was under consideration. By communication from the ICC dated February 4, 2014, the modification requested by Hycarbex and Hycarbex Asia was denied by the arbitration tribunal. The Liquidators for Hycarbex Asia appointed in 2013 in the pending insolvency proceedings for Hycarbex Asia in Singapore replaced their legal counsel and then requested a stay of the arbitration proceedings on February 12, 2014 from the English High Court of Justice, Chancery Division. However, this request for stay of the arbitration proceedings was promptly denied by the English Court and Hycarbex Asia was directed by the Court to pay to the Company costs of £40,000, which have been paid. On February 17, 2014, the arbitration proceedings commenced before the 3-arbitrator tribunal with the first order of business being consideration of another request to the arbitration tribunal by the Liquidators of Hycarbex Asia for suspension of the proceeding or, in the alternative, a postponement to permit newly appointed legal counsel to prepare a proper defense to the Company's claims in arbitration. A complete suspension was rejected by the Tribunal. The Liquidators voluntarily offered to pay interim costs of $50,000 toward the actual costs determined by the Tribunal as caused by the request. We opposed the postponement and indicated that any consideration of same must be conditioned upon protection of the disputed assets and adequate measures to assure payment to us of the monies due to us under the September 25, 2013 Order granting interim relief. The tribunal adjourned the final hearing on the merits until June 16, 2014, based upon Hycarbex Asia's assertion that the change of counsel was necessitated by a conflict arising out of a divergence of the respective interests of Hycarbex Asia and the otherDefendants. We were awarded the $50,000 in inconvenience costs offered by Hycarbex Asia, which have been paid, and given the opportunity to request an increase in that sum based upon actual costs incurred. The Tribunal further issued an interim Order dated February 25, 2014, requiring Hycarbex to produce to us all records of production from August 2011 forward, including any production which occurs after the date of the Order. The Order further required Hycarbex to produce any future notices of regulatory action or default received from the Government of Pakistan. The Order further ordered that the parties prepare a joint letter to Sui Southern Gas Company Limited (the purchaser of the gas from the Haseeb #1 Well) withdrawing Hycarbex's October 8, 2013 instruction letter to Sui Southern Gas Company and further ordered that the joint letter direct Sui Southern Gas Company Limited to pay 18% of the gross production proceeds directly to the Company going forward. The Order further directed that the joint letter be submitted to Sui Southern Gas Company Limited within 7 days after agreement is reached on the form of the letter. The Company and Hycarbex Asia reached agreement as to the form of the letter during the second week of May, 2014, and the joint letter was submitted to Sui Southern Gas Company Limited. The Order further authorized our use of any documents and transcripts from the arbitration proceedings in any ancillary proceeding initiated by the Company in Pakistan. In August, 2014, we initiated separate legal actions in Pakistan for an injunction against Sui Southern Gas Company Limited ("Sui Southern") and Hycarbex-American Energy, Inc. ("Hycarbex"), respectively, in furtherance of the prior interim orders of the Arbitration Tribunal. The action filed in the Sindh, Karachi High Court named as defendants Sui Southern, Hycarbex, its parent company, Hycarbex Asia Pte. Ltd. ("Hycarbex Asia") and two additional pro forma defendants and requests an injunction against Sui Southern against payment to Hycarbex of 18% of the total proceeds of gas sales. The requested injunction was granted to us by the Karachi Court but later vacated by the Court as premature as it pertains to Sui Southern. The action filed in the Islamabad High Court named Hycarbex, Hycarbex Asia and Hydro Tur as defendants and sought injunctive relief against Hycarbex from interference with the Arbitration Tribunal-ordered notifications to Sui Southern to pay us directly our 18% of production, sought injunctive relief against Hycarbex from acceptance by Hycarbex of any production proceeds which may be paid by Sui Southern, and sought a deposit into the Court from Hycarbex of the sum of $1,436,137, which Hycarbex was ordered to pay to us by prior Interim Order of the Arbitration Tribunal dated September 25, 2013 as the sum due through December, 2012. The Arbitration Tribunal likewise ordered in that prior Interim Order that Hycarbex direct Sui Southern to pay to us directly 18% of production occurring after December, 2012. The April 15 Award from the ICC Arbitration Tribunal eliminates any further need for this injunctive relief. On April 15, 2015, the ICC Arbitration Tribunal rendered its Partial Final Award in the pending arbitration proceedings which declared that the November 9, 2003 Stock Purchase Agreement between the Company, Hycarbex and Hydro-Tur, which was amended on February 16, 2004, and December 15, 2009, is void ab initio The Company has effected the shareholder and management registration changes ordered by the ICC and has caused Hycarbex to open a new office in Islamabad, Pakistan for Hycarbex's future operations. The new management of Hycarbex has also assumed control of Hycarbex's Pakistan personnel. Finally, the new management of Hycarbex has begun its efforts to assume complete control of the Pakistan-based assets, including review and appraisement of each asset, interfacing with the local oil and gas regulatory authorities with jurisdiction over those assets to assure regulatory compliance, and continuation of legal proceedings where necessary to enforce its rights. The assumption of complete control of the Hycarbex Pakistan-based assets is expected to take several months and to be completed in calendar 2016. |
Going Concern
Going Concern | 9 Months Ended |
Mar. 31, 2016 | |
Notes to Financial Statements | |
Note 11 - Going Concern | The Company's financial statements have been prepared using accounting principles generally accepted in the United States of America applicable to a going concern, which contemplates the realization of assets and liquidation of liabilities in the normal course of business. Accordingly, the financial statements do not include any adjustments related to the recoverability of assets or classification of liabilities that might be necessary should the Company be unable to continue as a going concern. At March 31, 2016, the Company's current liabilities exceeded its current assets and it has recorded negative cash flows from operations. The preceding circumstances combine to raise substantial doubt about the Company's ability to continue as a going concern. Management expects to continue to be successful in future capital raises, if necessary, to continue operations. |
Warrants
Warrants | 9 Months Ended |
Mar. 31, 2016 | |
Warrants | |
Note 12 - Warrants | During the nine months ended March 31, 2016, the Company issued 3,000,000 warrants in connection with the financing addressed in Note 9. The warrants can be purchased at $0.20 per share. The Company reported $378,424 of debt discount related to these warrant issuances. As of March 31, 2016, $80,392 of debt discount remains unamortized. The expense of these warrants was calculated using the Black-Scholes option pricing model using the following assumptions: Dividend yield 0 Expected volatility 1.42 % Risk free interest 0.50 % Expected life 4.5 years |
Basic Loss Per Share of Commo18
Basic Loss Per Share of Common Stock (Tables) | 9 Months Ended |
Mar. 31, 2016 | |
Basic Loss Per Share Of Common Stock Tables | |
Summary of basic Loss per share of common stock | Three Months Ended Nine Months Ended March 31, March 31, March 31, March 31, 2016 2015 2016 2015 Income (Loss) (numerator) $ (1,902,040 ) $ (204,071 ) $ (2,576,602 ) $ (368,974 ) Basic Shares (denominator) 62,720,879 52,353,764 61,543,064 51,855,156 Fully Diluted Shares (denominator) NA NA NA NA Basic Income (Loss) Per Share $ (0.00 ) $ (0.00 ) $ (0.00 ) $ (0.00 ) Fully Diluted Earnings Per Share NA NA NA NA |
Warrants (Tables)
Warrants (Tables) | 9 Months Ended |
Mar. 31, 2016 | |
Warrants Tables | |
Stock warrants using Black-Scholes option pricing model assumptions | Dividend yield 0 Expected volatility 1.42 % Risk free interest 0.50 % Expected life 4.5 years |
Basic Loss Per Share of Commo20
Basic Loss Per Share of Common Stock (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | Mar. 31, 2016 | Mar. 31, 2015 | |
Basic Loss Per Share Of Common Stock Details | ||||
Income (Loss) (numerator) | $ (1,902,040) | $ (204,071) | $ (2,576,602) | $ (368,974) |
Basic Shares (denominator) | 62,720,879 | 52,353,764 | 61,543,064 | 51,855,156 |
Fully Diluted Shares (denominator) | ||||
Basic Income (Loss) Per Share | $ .00 | $ 0 | $ 0 | $ 0 |
Fully Diluted Earnings Per Share | $ 0 | $ 0 | $ 0 | $ 0 |
Income Taxes (Details Narrative
Income Taxes (Details Narrative) | Mar. 31, 2016USD ($) |
Income Taxes Details Narrative | |
Net operating loss carryovers | $ 54,588,730 |
Investment in Oil and Gas Wor22
Investment in Oil and Gas Working Interest (Details Narrative) - USD ($) | Mar. 31, 2016 | Jun. 30, 2015 |
Investment In Oil And Gas Working Interest Details Narrative | ||
Working interests capitalized | $ 1,583,914 |
Impairment of Long-Lived Asse23
Impairment of Long-Lived Assets (Details Narrative) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | Mar. 31, 2016 | Mar. 31, 2015 | |
Impairment Of Long-lived Assets Details Narrative | ||||
Impairment loss | $ 1,583,914 | $ 1,583,914 |
Note Payable Related Parties (D
Note Payable Related Parties (Details Narrative) - USD ($) | 3 Months Ended | 9 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2016 | Jun. 30, 2015 | |
Note Payable Related Parties Details Narrative | |||
Interest expense | $ 45,458 | ||
Interest expenses amortized | $ 62,528 | 114,684 | |
Unamortized debt discount | $ 80,392 | $ 80,392 | $ 80,392 |
Warrants (Details)
Warrants (Details) | 9 Months Ended |
Mar. 31, 2016 | |
Warrants Details | |
Dividend yield | 0.00% |
Expected volatility | 1.42% |
Risk free interest | 0.50% |
Expected life | 4 years 6 months |
Warrants (Details Narrative)
Warrants (Details Narrative) - USD ($) | 9 Months Ended | |
Mar. 31, 2016 | Jun. 30, 2015 | |
Warrants Details Narrative | ||
Warrant Issuances | 3,000,000 | |
Unamortized debt discount | $ 80,392 | $ 80,392 |