Document_and_Entity_Informatio
Document and Entity Information | 3 Months Ended | |
Dec. 31, 2014 | Feb. 23, 2015 | |
Document and Entity Information [Abstract] | ||
Entity Registrant Name | DEEP WELL OIL & GAS INC | |
Entity Central Index Key | 869495 | |
Trading Symbol | DWOG | |
Amendment Flag | FALSE | |
Current Fiscal Year End Date | -21 | |
Document Type | 10-Q | |
Document Period End Date | 31-Dec-14 | |
Document Fiscal Year Focus | 2015 | |
Document Fiscal Period Focus | Q1 | |
Entity Filer Category | Smaller Reporting Company | |
Entity Common Stock Shares Outstanding | 229,374,605 |
Condensed_Consolidated_Balance
Condensed Consolidated Balance Sheets (USD $) | Dec. 31, 2014 | Sep. 30, 2014 |
Current Assets | ||
Cash and cash equivalents | $2,394,325 | $2,324,755 |
Accounts receivable net of allowance of $Nil (September 30, 2014 - $Nil) | 356,743 | 1,050,099 |
Prepaid expenses | 42,020 | 43,875 |
Total Current Assets | 2,793,088 | 3,418,729 |
Long term investments | 394,036 | 409,618 |
Oil and gas properties, net, based on successful efforts method of accounting | 19,618,195 | 19,604,050 |
Property and equipment, net of depreciation | 245,442 | 259,198 |
TOTAL ASSETS | 23,050,761 | 23,691,595 |
Current Liabilities | ||
Accounts payable and accrued liabilities | 365,822 | 714,198 |
Accounts payable and accrued liabilities- related parties | 2,090 | 16,977 |
Total Current Liabilities | 367,912 | 731,175 |
Asset retirement obligations (Note 10) | 454,223 | 469,013 |
TOTAL LIABILITIES | 822,135 | 1,200,188 |
SHAREHOLDERS' EQUITY | ||
Common Stock: (Note 11) Authorized: 600,000,000 shares at $0.001 par value Issued and outstanding: 229,374,605 shares (September 30, 2014 229,326,987 shares) | 229,374 | 229,326 |
Additional paid in capital | 41,362,359 | 41,040,447 |
Accumulated Deficit | -19,363,107 | -18,778,366 |
Total Shareholders' Equity | 22,228,626 | 22,491,407 |
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | $23,050,761 | $23,691,595 |
Condensed_Consolidated_Balance1
Condensed Consolidated Balance Sheets (Parenthetical) (USD $) | Dec. 31, 2014 | Sep. 30, 2014 |
Balance Sheets [Abstract] | ||
Allowance related to accounts receivable | ||
Common stock, shares authorized | 600,000,000 | 600,000,000 |
Common stock, par value | $0.00 | $0.00 |
Common stock, shares issued | 229,374,605 | 229,326,987 |
Common stock, shares outstanding | 229,374,605 | 229,326,987 |
Condensed_Consolidated_Stateme
Condensed Consolidated Statements of Operations and Comprehensive Income (Loss) (Unaudited) (USD $) | 3 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Statements of Operations and Comprehensive Income (Loss) [Abstract] | ||
Revenue | $146,400 | |
Royalty expenses | -8,980 | |
Revenue, net of royalty | 137,420 | |
Expenses | ||
Operating expenses | 766,513 | |
Operating expenses covered by Farmout (Note 3) | -629,093 | |
General and administrative | 568,868 | 446,270 |
Depreciation, accretion and depletion | 21,202 | 24,514 |
Net loss from operations | -590,070 | -470,784 |
Other income and expenses | ||
Rental and other income | 3,782 | 8,103 |
Interest income | 1,547 | 2,051 |
Net loss and comprehensive loss | ($584,741) | ($460,630) |
Net loss per common share | ||
Basic and Diluted | $0 | $0 |
Weighted Average Outstanding Shares (in thousands) | ||
Basic and Diluted | 229,374 | 229,327 |
Condensed_Consolidated_Stateme1
Condensed Consolidated Statements of Cash Flows (Unaudited) (USD $) | 3 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Operating Activities | ||
Net loss | ($584,741) | ($460,630) |
Items not affecting cash: | ||
Share based compensation | 316,959 | 156,374 |
Depreciation, accretion and depletion | 21,202 | 24,514 |
Net changes in non-cash working capital (Note 13) | 331,948 | -2,723,032 |
Net Cash Provided by (Used in) Operating Activities | 85,368 | -3,002,774 |
Investing Activities | ||
Purchase of property and equipment | -407 | |
Investment in oil and gas properties | -21,808 | -25,355 |
Long term investments | 1,009 | 826 |
Net Cash Used in Investing Activities | -20,799 | -24,936 |
Financing Activities | ||
Payments on loan payable - related parties | -189,500 | |
Proceeds from issuance of common stock | 5,001 | |
Net Cash Provided by (Used in) Financing Activities | 5,001 | -189,500 |
Increase (decrease) in cash and cash equivalents | 69,570 | -3,217,210 |
Cash and cash equivalents, beginning of year | 2,324,755 | 7,633,009 |
Cash and cash equivalents, end of year | 2,394,325 | 4,415,799 |
Supplemental Cash Flow Information: | ||
Cash paid for interest | ||
Cash paid for income taxes |
Nature_of_Business_and_Basis_o
Nature of Business and Basis of Presentation | 3 Months Ended | |
Dec. 31, 2014 | ||
Nature of Business and Basis of Presentation [Abstract] | ||
NATURE OF BUSINESS AND BASIS OF PRESENTATION | 1 | NATURE OF BUSINESS AND BASIS OF PRESENTATION |
Nature of Business | ||
Deep Well Oil & Gas, Inc. was originally incorporated on July 18, 1988 under the laws of the state of Nevada as Worldwide Stock Transfer, Inc. (Worldwide Stock Transfer, Inc. later changed its name to Allied Devices Corporation) and in connection with a plan of reorganization, effective on September 10, 2003, the company was reorganized and changed its name to Deep Well Oil & Gas, Inc. (“Deep Well”). | ||
These consolidated financial statements have been prepared showing the name “Deep Well Oil & Gas, Inc. (and Subsidiaries)” (“the Company”) and the post-split common stock, with $0.001 par value. | ||
Basis of Presentation | ||
The interim condensed consolidated financial statements included herein have been prepared by the Company, without audit, 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 accounting principles generally accepted in the United States of America (“US GAAP”) have been condensed or omitted pursuant to such rules and regulations, although the Company believes that the disclosures are adequate so as to make the information presented not misleading. | ||
These interim condensed consolidated financial statements follow the same significant accounting policies and methods of application as the Company’s annual consolidated financial statements for the year ended September 30, 2014. | ||
These statements reflect all adjustments, consisting solely of normal recurring adjustments (unless otherwise disclosed) which, in the opinion of management, are necessary for a fair presentation of the information contained therein. However, the results of operations for the interim periods may not be indicative of results to be expected for the full fiscal year. It is suggested that these condensed consolidated financial statements be read in conjunction with the audited consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended September 30, 2014. |
Summary_of_Significant_Account
Summary of Significant Accounting Policies | 3 Months Ended | ||||||
Dec. 31, 2014 | |||||||
Summary of Significant Accounting Policies [Abstract] | |||||||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 2 | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |||||
Basis of Consolidation | |||||||
These condensed consolidated financial statements include the accounts of two wholly owned subsidiaries: (1) Northern Alberta Oil Ltd. (“Northern”) from the date of acquisition, being June 7, 2005, incorporated under the Business Corporations Act (Alberta), Canada; and (2) Deep Well Oil & Gas (Alberta) Ltd., incorporated under the Business Corporations Act (Alberta), Canada on September 15, 2005. All inter-company balances and transactions have been eliminated. | |||||||
Cash and Cash Equivalents | |||||||
The Company considers all highly liquid instruments with a maturity of three months or less at the time of issuance to be cash equivalents. | |||||||
Allowance for Doubtful Accounts | |||||||
The Company determines allowances for doubtful accounts based on aging of specific accounts. Accounts receivable are stated at the historical carrying amounts net of allowances for doubtful accounts and include only the amounts the Company deems to be collectable. The allowance for bad debts was $nil and $nil at December 31, 2014 and September 30, 2014, respectively. | |||||||
Crude oil and natural gas properties | |||||||
The Company uses the successful efforts method of accounting for crude oil and natural gas properties whereby costs incurred to acquire mineral interests in crude oil and natural gas properties, to drill and equip exploratory wells that find proved reserves, to drill and equip development wells, and expenditures for enhanced recovery operations are capitalized. Geological and geophysical costs, seismic costs incurred for exploratory projects, lease rentals and costs associated with unsuccessful exploratory wells or projects are expensed as incurred. Costs of seismic studies that are utilized in development drilling within an area of proved reserves are capitalized as development costs. To the extent a seismic project covers areas of both developmental and exploratory drilling, those seismic costs are proportionately allocated between capitalized development costs and exploration expense. Maintenance, repairs and costs of injection are expensed as incurred, except that the costs of replacements or renewals that expand capacity or improve production are capitalized. | |||||||
Under the successful efforts method of accounting, the Company capitalizes exploratory drilling, equipping and facility costs on the balance sheet pending determination of whether the project has found proved reserves in economically producible quantities. The Company capitalizes costs associated with the acquisition or construction of support equipment and facilities with the drilling and development costs to which they relate. If proved reserves are assigned to a project, the associated capitalized costs become part of well equipment and facilities. However, if proved reserves are not found in a project, the capitalized costs associated with the project are expensed, net of any salvage value. Total capitalized costs pending the determination of proved reserves were $19.6 million and $19.6 million at December 31, 2014 and September 30, 2014, respectively. | |||||||
Property and Equipment | |||||||
Property and equipment are stated at cost less accumulated depreciation. Depreciation expense is computed using the declining balance method over the estimated useful life of the asset. Only half of the depreciation rate is taken in the year of acquisition. The following is a summary of the depreciation rates used in computing depreciation expense: | |||||||
% | |||||||
Software | 100 | ||||||
Computer equipment | 55 | ||||||
Portable work camp | 30 | ||||||
Vehicles | 30 | ||||||
Road Mats | 30 | ||||||
Wellhead | 25 | ||||||
Office furniture and equipment | 20 | ||||||
Oilfield Equipment | 20 | ||||||
Tanks | 10 | ||||||
Expenditures for major repairs and renewals that extend the useful life of the asset are capitalized. Minor repair expenditures are charged to expense as incurred. Leasehold improvements are amortized over the greater of five years or the remaining life of the lease agreement. | |||||||
Long-Lived Assets | |||||||
Oil and Gas Properties - Proved crude oil and natural gas properties are reviewed for impairment on a field-by-field basis each quarter, or when events and circumstances indicate a possible decline in the recoverability of the carrying value of such field. The estimated future cash flows expected in connection with the field are compared to the carrying amount of the field to determine if the carrying amount is recoverable. If the carrying amount of the field exceeds its estimated undiscounted future cash flows, the carrying amount of the field is reduced to its estimated fair value. Due to the unavailability of relevant comparable market data, a discounted cash flow method is used to determine the fair value of proved properties. The discounted cash flow method estimates future cash flows based on management’s estimates of future crude oil and natural gas production, commodity prices based on commodity futures price strips, operating and development costs, and a risk-adjusted discount rate. | |||||||
Non-producing crude oil and natural gas properties primarily consist of undeveloped leasehold costs and costs associated with the purchase of certain proved undeveloped reserves. Individually significant non-producing properties, if any, are assessed for impairment on a property-by-property basis and, if the assessment indicates an impairment, a loss is recognized by providing a valuation allowance consistent with the level at which impairment was assessed. For individually insignificant non-producing properties, impairment losses are recognized by amortizing the portion of the properties’ costs which management estimates will not be transferred to proved properties over the lives of the leases based on experience of successful drilling and the average holding period. The Company’s impairment assessments are affected by economic factors such as the results of exploration activities, commodity price outlooks, anticipated drilling programs, remaining lease terms, and potential shifts in business strategy employed by management. | |||||||
Non Oil and Gas Assets - The Company reviews for the impairment of long-lived assets annually and whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. An impairment loss would be recognized when estimated undiscounted future cash flows expected to result from the use of the asset and its eventual disposition is less than its carrying amount. Impairment is measured as the amount by which the assets’ carrying value exceeds its fair value. No impairments to the Company’s long-lived assets were identified or recorded in the three months ended December 31, 2014 or in the fiscal year ended September 30, 2014. | |||||||
Depreciation, Depletion and Amortization | |||||||
Depreciation, depletion and amortization of capitalized drilling and development costs of producing crude oil and natural gas properties, including related support equipment and facilities, are computed using the unit-of-production method on a field basis based on total estimated proved developed crude oil and natural gas reserves. Amortization of producing leaseholds is based on the unit-of-production method using total estimated proved reserves. In arriving at rates under the unit-of-production method, the quantities of recoverable crude oil and natural gas reserves are established based on estimates made by the Company’s internal geologists and engineers and external independent reserve engineers. Upon sale or retirement of properties, the cost and related accumulated depreciation, depletion and amortization are eliminated from the accounts and the resulting gain or loss, if any, is recognized. Unit of production rates are revised whenever there is an indication of a need, but at least in conjunction with annual reserve reports. Revisions are accounted for prospectively as changes in accounting estimates. | |||||||
Asset Retirement Obligations | |||||||
The Company accounts for asset retirement obligations by recording the fair value of the estimated future cost of the Company’s plugging and abandonment obligations. The asset retirement obligation is recorded when there is a legal obligation associated with the retirement of a tangible long-lived asset and the fair value of the liability can reasonably be estimated. Upon initial recognition of an asset retirement obligation, the Company increases the carrying amount of the long-lived asset by the same amount as the liability. Over time, the liabilities are accreted for the change in their present value through charges to oil and gas production and well operations costs. The initial capitalized costs are depleted over the useful lives of the related assets through charges to depreciation, depletion, and amortization. If the fair value of the estimated asset retirement obligation changes, an adjustment is recorded to both the asset retirement obligation and the asset retirement cost. | |||||||
Revisions in estimated liabilities can result from revisions of estimated inflation rates, escalating retirement costs, and changes in the estimated timing of settling asset retirement obligations. As at December 31, 2014 and September 30, 2014, asset retirement obligations amount to $454,223 and $469,013, respectively. The Company has posted bonds, where required, with the Government of Alberta based on the amount the government estimates the cost of abandonment and reclamation to be. | |||||||
Foreign Currency Translation | |||||||
The functional currency of the Canadian subsidiaries is the United States dollar. However, the Canadian subsidiaries transact in Canadian dollars. Consequently, monetary assets and liabilities are remeasured into United States dollars at the exchange rate on the balance sheet date and non-monetary items are remeasured at the rate of exchange in effect when the assets are acquired or obligations incurred. Revenues and expenses are remeasured at the average exchange rate prevailing during the period. Foreign currency transaction gains and losses are included in results of operations. | |||||||
Accounting Method | |||||||
The Company recognizes income and expenses based on the accrual method of accounting. | |||||||
Dividend Policy | |||||||
The Company has not yet adopted a policy regarding payment of dividends. | |||||||
Financial, Concentration and Credit Risk | |||||||
The Company does not have any concentration or related financial credit risk related to cash as most of the Company’s funds are maintained in a financial institution which has its deposits fully guaranteed by the Government of Alberta. | |||||||
The Company is not directly subject to credit risk resulting from the concentration of its crude oil sales. For the period ending December 31, 2014 and for the year ended September 30, 2014, the Company has recorded oil sales received from the operator of the Company’s producing properties. The Company’s joint venture partner is the operator of the Company’s producing properties and it is the Company’s joint venture partner who sells 100% of the Company’s oil production to two or more purchasers in the oil and gas industry. The Company does not require collateral and management periodically evaluates the operator’s financial statements and the collectability of oil sales receivables from the operator and believes that the Company’s oil sales receivables are fully collectable and that the risk of loss is minimal. | |||||||
Income Taxes | |||||||
The Company utilizes the liability method of accounting for income taxes. Under the liability method, deferred tax assets and liabilities are determined based on the differences between financial reporting and the tax bases of the assets and liabilities, and are measured using the enacted tax rates and laws that will be in effect when the differences are expected to reverse. An allowance against deferred tax assets is recorded when it is more likely than not that such tax benefits will not be realized. | |||||||
Due to the uncertainty regarding the Company’s profitability, a valuation allowance has been recorded against the future tax benefits of its losses and no net benefit has been recorded in the consolidated financial statements. | |||||||
Revenue Recognition | |||||||
The Company is in the business of exploring for, developing, producing, and selling crude oil. Crude oil revenue is recognized when the product is taken from the storage tanks on the lease and delivered to the purchaser and title transfers to the purchaser. Payment is generally received one to three months after the sale has occurred. | |||||||
Occasionally the Company may sell specific leases, and the gain or loss associated with these transactions will be shown separately from the profit or loss from the operations or sales of oil products. Such gain or losses will be measured and recognized when all of the following have occurred: (1) there is persuasive evidence of an arrangement to sell; (2) the price of the sale is fixed or determinable; (3) the title to the lease has transferred; and (4) collection is reasonably assured. | |||||||
Advertising and Market Development | |||||||
The Company expenses advertising and market development costs as incurred. | |||||||
Basic and Diluted Net Income (Loss) Per Share | |||||||
Basic net income (loss) per share amounts are computed based on the weighted average number of shares actually outstanding. Diluted net income (loss) per share amounts are computed using the weighted average number of common shares and common equivalent shares outstanding as if shares had been issued on the exercise of the common share rights, unless the exercise becomes antidilutive and then the basic and diluted per share amounts are the same. There were 23,543,809 common stock equivalents excluded from the calculation because their effect would be antidilutive. | |||||||
Financial Instruments | |||||||
Financial instruments include cash and cash equivalents, accounts receivable, long term investments, investment in equity securities, accounts payable and accounts payable - related parties. The fair value of these financial instruments approximates their carrying value because of the short-term maturity of these items unless otherwise noted. The fair value of the investment in equity securities cannot be determined as the market value is not readily obtainable. The equity securities are reported using the cost method. | |||||||
Environmental Requirements | |||||||
At the report date, environmental requirements related to the oil properties acquired are unknown and therefore an estimate of any future cost cannot be made. | |||||||
Share-Based Compensation | |||||||
The Company accounts for stock options granted to directors, officers, employees and non-employees using the fair value method of accounting. The fair value of stock options for directors, officers and employees are calculated at the date of grant and is expensed over the vesting period of the options on a straight-line basis. For non-employees, the fair value of the options is measured on the earlier of the date at which the counterparty performance is complete or the date at which the performance commitment is reached. The Company uses the Black-Scholes model to calculate the fair value of stock options issued, which requires certain assumptions to be made at the time the options are awarded, including the expected life of the option, the expected number of granted options that will vest and the expected future volatility of the stock. The Company reflects estimates of award forfeitures at the time of grant and revises in subsequent periods, if necessary, when forfeiture rates are expected to change. | |||||||
Recently Adopted Accounting Standards | |||||||
In June 2014, the FASB issued ASU 2014-10, “Development Stage Entities (Topic 915): Elimination of Certain Financial Reporting Requirements, Including an Amendment to Variable Interest Entities Guidance in Topic 810, Consolidation”. The guidance eliminates the definition of a development stage entity thereby removing the incremental financial reporting requirements from U.S. GAAP for development or exploration stage entities, primarily presentation of inception to date financial information. The provisions of the amendments are effective for annual reporting periods beginning after December 15, 2014, and the interim periods therein. However, early adoption is permitted. Accordingly, the Company has adopted this standard as of September 30, 2014. | |||||||
The Company does not expect the adoption of any other recent accounting pronouncements to have a material impact on the Company’s financial statements. | |||||||
Estimates and Assumptions | |||||||
Management uses estimates and assumptions in preparing financial statements in accordance with generally accepted accounting principles. Those estimates and assumptions affect the reported amounts of the assets and liabilities, the disclosure of contingent assets and liabilities, and the reported revenues and expenses. Actual results could vary from the estimates that were used in preparing these consolidated financial statements. | |||||||
Significant estimates by management include valuations of oil properties, valuation of accounts receivable, useful lives of long-lived assets, asset retirement obligations, valuation of share-based compensation, and the realizability of future income taxes. |
Oil_and_Gas_Properties
Oil and Gas Properties | 3 Months Ended | |||||
Dec. 31, 2014 | ||||||
Oil and Gas Properties [Abstract] | ||||||
OIL AND GAS PROPERTIES | 3 | OIL AND GAS PROPERTIES | ||||
The Company’s oil sands acreage as of December 31, 2014, covers 43,015 gross acres (34,096 net acres) on 68 sections of land under nine oil sands leases. Until the Company extends the leases “into perpetuity” based on the Alberta governmental regulations, the lease expiration dates of the Company’s nine oil sands leases are as follows: | ||||||
1) | 32 sections of land under 5 oil sands leases are set to expire on July 10, 2018; | |||||
2) | 31 sections of land under 3 oil sands leases are set to expire on August 19, 2019; and | |||||
3) | 5 sections of land under 1 oil sands lease are set expire on April 9, 2024. It is the Company’s opinion that the Company has already met the governmental requirements for this lease and it will be applying to continue this lease into perpetuity. | |||||
Effective September 25, 2014, the Company, through its subsidiary Deep Well Alberta, entered into a Purchase and Sale agreement with Classic Energy Inc. (“Classic”), pursuant to which the Company acquired Classic’s 20% working interest in five sections in one Sawn Lake oil sands lease where the Company already owned working interests. As of September 25, 2014, the Company increased its net acres in the Sawn Lake oil sands properties from 33,463 to 34,096 net acres. | ||||||
Lease Rental Commitments | ||||||
The Company has acquired interests in certain oil sands properties located in North Central Alberta, Canada. The terms include certain commitments related to oil sands properties that require the payments of rents as long as the leases are non-producing. As of December 31, 2014, the Company’s net payments due under this commitment are as follows: | ||||||
(Cdn $) | ||||||
2015 | $ | 36,221 | ||||
2016 | $ | 48,294 | ||||
2017 | $ | 48,294 | ||||
2018 | $ | 48,294 | ||||
2019 | $ | 29,478 | ||||
Subsequent | $ | 22,400 | ||||
The government of Alberta owns this land and the Company has acquired the rights to perform oil activities on these lands. If the Company meets the conditions of the leases the Company will then be permitted to drill on and produce oil from the land into perpetuity. These conditions give the Company until the expiration of the leases to meet the following requirements on its primary oil sands leases: | ||||||
1) | drill 68 wells throughout the 68 sections; or | |||||
2) | drill 44 wells within the 68 sections and having acquired and processed two miles of seismic on each other undrilled section. | |||||
The Company plans to meet the second of these conditions. As at December 31, 2014 and September 30, 2014, the Company has an interest in ten wells, which can be counted towards these requirements. | ||||||
The Company has identified two other wells drilled on these leases, which may be included in the satisfaction of this requirement. The Company has also acquired and processed 25 miles of seismic on the leases, which can be counted towards these requirements. Our joint venture partner and operator of the SAGD Project has also acquired additional seismic that can be used towards our MLE requirements. | ||||||
The Company follows the successful efforts method of accounting for costs of oil properties. Under this method, only those exploration and development costs that relate directly to specific oil reserves are capitalized; costs that do not relate directly to specific reserves are charged to expense. Producing, non-producing and unproven properties are assessed annually, or more frequently as economic events indicate, for potential impairment. | ||||||
This consists of comparing the carrying value of the asset with the asset’s expected future undiscounted cash flows without interest costs. Estimates of expected future cash flows represent management’s best estimate based on reasonable and supportable assumptions. Proven oil properties are reviewed for impairment on a field-by-field basis. No impairment losses were recognized for the period ended December 31, 2014 (September 30, 2014 - $nil). | ||||||
Capitalized costs of proven oil properties will be depleted using the unit-of-production method when the property is placed in production. | ||||||
Substantially all of the Company’s oil activities are conducted jointly with others. The accounts reflect only the Company’s proportionate interest in such activities. | ||||||
Steam Assisted Gravity Drainage Demonstration Project | ||||||
On July 30, 2013, the Company entered into a Steam Assisted Gravity Drainage Demonstration project (“SAGD Project”) to jointly participate in an Alberta Energy Regulator (“AER”) approved SAGD Project on one section of land where the Company now has a 25% working interest (after the execution of the Farmout Agreement as defined below). The SAGD Project is located on section 30-91-12W5 of the Company’s Peace River oil sands properties located in North Central Alberta, Canada (also known as the Sawn Lake heavy oil reservoir). On August 15, 2013, and in accordance with the SAGD Project Agreement and the Amendment, the Company served notice (“Notice of Election”) to of the operator of the Company’s election to participate in the SAGD Project. Upon signing the Notice of Election the Company was required to pay in full the cash calls for the Company’s initial share of the costs of the SAGD Project and in accordance with a Farmout Agreement dated July 31, 2013 the Company has since paid all cash calls in full to the operator of the SAGD Project. | ||||||
Farmout Agreement | ||||||
On July 31, 2013, the Company entered into a Farmout agreement (the “Farmout Agreement”) with an additional joint venture partner (the “Farmee”) to fund the Company’s share of the AER approved SAGD Project at the Company’s Sawn Lake heavy oil reservoir in North Central Alberta, Canada. In accordance with the Farmout Agreement the Farmee has agreed to provide up to $40,000,000 in funding for the Company’s portion of the costs for the SAGD Project, in return for a net 25% working interest in 12 sections where the Company had a working interest of 50% (before the execution of the Farmout Agreement). The Farmee will also provide funding to cover monthly operating expenses of the Company, of which the first such monthly payment began in respect of the month of August 2013 and shall not to exceed $30,000 per month. In addition, until December 31, 2015, as amended on November 17, 2014, the Farmee has the option to elect to obtain a working interest of 45% to 50% working interest in the remaining 56 sections of land where the Company has working interests ranging from 90% to 100%, by committing an additional $110,000,000 of financing to the development of the Company’s Sawn Lake oil sands properties. | ||||||
SAGD Project – Phase 1 | ||||||
The SAGD Project started with the first phase (“Phase 1”) consisting of the drilling and completion of one SAGD well pair, the construction of a facility for steam generation, water handling and oil treating, plus water source and disposal facilities. As required by the Farmout Agreement, the Farmee has since paid Cdn $19,355,129 to the operator of the SAGD Project for the Farmee’s share and the Company’s share of the costs of the SAGD Project up to December 31, 2014. The total SAGD Project capital costs for Phase 1 plus additions have been estimated by the operator to be Cdn $36.9 million. | ||||||
SAGD Project – Phase 2 | ||||||
On June 27, 2014, the Company paid a Cdn $300,000 cash call to the operator for the proposed Phase 2 front end costs for the SAGD Project. The Phase 2 front end costs include work on preliminary engineering design, regulatory approval, environmental approval work and determining regulatory requirements sufficient to define the work program, schedule and estimated cost of this second phase which is anticipated to include the drilling of two additional SAGD well pairs and the associated expansion of the current SAGD steam plant. The Farmee reimbursed the Company in the amount of Cdn $300,000 as per the Farmout Agreement dated July 31, 2013. | ||||||
Water Rights Conveyance Agreement | ||||||
On October 9, 2013, and in connection to the SAGD Project agreement dated July 30, 2013, the Company entered into a Water Rights Conveyance Agreement whereby the Company acquired a 25% working interest in one water source well and one water disposal well for a cost of Cdn $384,046, which in turn was reimbursed to the Company by the Farmee. Also pursuant to the Water Rights Conveyance Agreement dated October 9, 2013 and the SAGD Project agreement dated July 30, 2013, the Company was issued a cash call in the amount of Cdn $1,058,568 for the expenditures relating to the water source well, water disposal well and pipelines to connect them to the SAGD Project surface facility. The Farmee has since paid this cash call in the amount of Cdn $1,058,568 pursuant to the Farmout Agreement dated July 31, 2013. | ||||||
Acquisition of Royalty Interests | ||||||
On March 18, 2014 and June 27, 2014, the Company, through its 100% wholly owned subsidiary company Northern Alberta Oil Ltd., entered into and subsequently closed two Acquisition of Royalty Interest Agreements and General Indenture of Conveyance, Assignment and Transfer Agreements (collectively the “Agreements”), with the Company’s joint venture partner (“JV Partner”) and one related party (Mr. Malik Youyou), whereby the Company acquired and cancelled 5.5% of a disputed 6.5% overriding royalty claim (the “Purported 6.5% Royalty”) potentially on some lands owned by the Company. The Company’s counsel and vendor’s counsel negotiated the terms and conditions of both the “Acquisition of Royalty Interest” and “General Indenture of Conveyance, Assignment and Transfer” agreements. Although the Company does not confirm the validity of the Purported 6.5% Royalty, the Company determined that it was in the best interests of its shareholders to come to an arrangement to acquire and cancel most of the Purported 6.5% Royalty to prevent a potential encumbrance over its land or the possibility of future litigation resulting from these alleged royalty claims. Pursuant to the terms and conditions of the Agreements to acquire the purported overriding royalty interest claims, the Company paid the following consideration: | ||||||
(i) | US $2,435,124 (Cdn $2,697,600) was paid to the JV Partner for the purchase and transfer of an undivided 3% interest out of the Purported 6.5% Royalty. The consideration paid was the original cost (in Canadian dollars) that the JV Partner paid to acquire its 3% interest in the Purported 6.5% Royalty. | |||||
(ii) | US $1,007,000 was paid to Mr. Malik Youyou, who is a director and majority shareholder of the Company, for the purchase and transfer of an undivided 2.5% interest out of the Purported 6.5% Royalty. The consideration paid was for the reimbursement of the original cost (in US dollars) that Mr. Youyou paid to acquire this 2.5% interest in the Purported 6.5% Royalty from an arm’s length third party. |
Capitalization_of_Costs_Incurr
Capitalization of Costs Incurred in Oil and Gas Activities | 3 Months Ended | |||||||||
Dec. 31, 2014 | ||||||||||
Oil and Gas Properties [Abstract] | ||||||||||
CAPITALIZATION OF COSTS INCURRED IN OIL AND GAS ACTIVITIES | 4 | CAPITALIZATION OF COSTS INCURRED IN OIL AND GAS ACTIVITIES | ||||||||
The Company accounts for the cost of its oil sands projects and continues to capitalize project costs after the completion of drilling, equipping and facility construction as long as sufficient progress is being made in assessing the oil sands reserves to justify the oil sands project as a producing well. | ||||||||||
For the period ended December 31, 2014, the Company’s management determined that sufficient progress has been made in assessing its oil sands reserves for continued capitalization of exploratory drilling, equipping and facility costs. In relation to this sufficient progress assessment of its oil sands project the Company considered among other criteria; long lead times in getting regulatory approval for oil sands thermal recovery projects, road bans, winter access only properties and governmental and environmental regulations which can and often delay development of oil sands projects. Because of these and other factors, the Company’s oil sands project can take significantly longer to complete than regular conventional drilling programs for lighter oil. To date the Company’s geological, engineering, economic studies, and AER approved thermal recovery projects; including the Company’s now producing SAGD Project, continue to lead them to believe that there is continuing progress toward bringing the project to commercial production. Therefore, the Company has continued to capitalize its costs associated with its oil sands project. | ||||||||||
For the Company’s oil sands projects, exploratory drilling, equipping and facility costs are capitalized on the balance sheet under “Oil and Gas Properties” line item, pending a determination of whether potentially economic oil sands reserves have been discovered by the drilling effort to justify oil sands project as a producing well. The Company periodically assesses the exploration drilling, equipping and facility capitalized costs for impairment and once a determination is made that a well is of no potential economic value, the costs related to that oil sands project are expensed as dry hole and reported in exploration expense. No impairments to the Company’s long-lived assets were identified or recorded in the three months ended December 31, 2014 or in the fiscal year ended September 30, 2014. | ||||||||||
The following table illustrates capitalized costs relating to oil producing activities for the three months ended December 31, 2014 and the fiscal year ended September 30, 2014: | ||||||||||
December 31, | September 30, | |||||||||
2014 | 2014 | |||||||||
Unproved Oil and Gas Properties | $ | 19,668,577 | $ | 19,651,296 | ||||||
Proved Oil and Gas Properties | 4,568 | 4,568 | ||||||||
Accumulated Depreciation and Depletion | (54,950 | ) | (51,814 | ) | ||||||
Net Capitalized Cost | $ | 19,618,195 | $ | 19,604,050 |
Exploration_Activities
Exploration Activities | 3 Months Ended | |||||||||
Dec. 31, 2014 | ||||||||||
Exploration Activities [Abstract] | ||||||||||
EXPLORATION ACTIVITIES | 5 | EXPLORATION ACTIVITIES | ||||||||
The following table presents information regarding the Company’s costs incurred in the oil property acquisition, exploration and development activities for the three months ended December 31, 2014 and the fiscal year ended September 30, 2014: | ||||||||||
December 31, | September 30, | |||||||||
2014 | 2014 | |||||||||
Acquisition of Properties: | ||||||||||
Proved | $ | – | $ | – | ||||||
Unproved | 17,281 | 3,692,346 | ||||||||
Exploration costs | 995 | 47,182 | ||||||||
Development costs | – | – | ||||||||
Investment_in_Equity_Securitie
Investment in Equity Securities | 3 Months Ended | |
Dec. 31, 2014 | ||
Investment in Equity Securities [Abstract] | ||
INVESTMENT IN EQUITY SECURITIES | 6 | INVESTMENT IN EQUITY SECURITIES |
On February 25, 2005, the Company acquired an interest in Signet Energy Inc. (“Signet” formerly Surge Global Energy, Inc.) as a result of a Farmout Agreement dated February 25, 2005. Signet amalgamated with Andora Energy Corporation (“Andora”) in 2007. | ||
As of November 19, 2008, the Company converted its Signet shares into 2,241,558 shares of Andora, which represents an equity interest in Andora of approximately 2.24% as of December 31, 2013, which is Andora’s fiscal year end. These shares are carried at a nominal value using the cost method and their value is included under oil and gas properties on the Company’s balance sheet. |
Property_and_Equipment
Property and Equipment | 3 Months Ended | |||||||||||||
Dec. 31, 2014 | ||||||||||||||
Property and Equipment [Abstract] | ||||||||||||||
PROPERTY AND EQUIPMENT | 7 | PROPERTY AND EQUIPMENT | ||||||||||||
31-Dec-14 | ||||||||||||||
Accumulated | Net Book | |||||||||||||
Cost | Depreciation | Value | ||||||||||||
Computer equipment | $ | 32,197 | $ | 31,392 | $ | 805 | ||||||||
Office furniture and equipment | 34,130 | 27,242 | 6,888 | |||||||||||
Software | 5,826 | 5,826 | – | |||||||||||
Leasehold improvements | 4,936 | 4,936 | – | |||||||||||
Portable work camp | 170,580 | 148,039 | 22,541 | |||||||||||
Vehicles | 38,077 | 33,045 | 5,032 | |||||||||||
Oilfield equipment | 249,046 | 140,731 | 108,315 | |||||||||||
Road mats | 364,614 | 316,432 | 48,182 | |||||||||||
Wellhead | 3,254 | 2,128 | 1,126 | |||||||||||
Tanks | 96,085 | 43,532 | 52,553 | |||||||||||
$ | 998,745 | $ | 753,304 | $ | 245,442 | |||||||||
30-Sep-14 | ||||||||||||||
Accumulated | Net Book | |||||||||||||
Cost | Depreciation | Value | ||||||||||||
Computer equipment | $ | 32,198 | $ | 31,264 | $ | 934 | ||||||||
Office furniture and equipment | 34,130 | 26,880 | 7,250 | |||||||||||
Software | 5,826 | 5,826 | – | |||||||||||
Leasehold improvements | 4,936 | 4,936 | – | |||||||||||
Portable work camp | 170,580 | 146,211 | 24,369 | |||||||||||
Vehicles | 38,077 | 32,637 | 5,440 | |||||||||||
Oilfield equipment | 249,045 | 135,030 | 114,015 | |||||||||||
Road mats | 364,614 | 312,525 | 52,089 | |||||||||||
Wellhead | 3,254 | 2,053 | 1,201 | |||||||||||
Tanks | 96,085 | 42,185 | 53,900 | |||||||||||
$ | 998,745 | $ | 739,547 | $ | 259,198 | |||||||||
There was $13,757 of depreciation expense for the period ended December 31, 2014 (December 31, 2013 - $18,176). |
Long_Term_Investments
Long Term Investments | 3 Months Ended | |
Dec. 31, 2014 | ||
Long Term Investments [Abstract] | ||
LONG TERM INVESTMENTS | 8 | LONG TERM INVESTMENTS |
Long term investments consist of cash held in trust by the AER which bears interest at a rate of prime minus 0.375% and has no stated date of maturity. These investments are required by the AER to ensure there are sufficient future cash flows to meet the expected future asset retirement obligations and are restricted for this purpose. |
Significant_Transactions_With_
Significant Transactions With Related Parties | 3 Months Ended | |
Dec. 31, 2014 | ||
Significant Transactions With Related Parties [Abstract] | ||
SIGNIFICANT TRANSACTIONS WITH RELATED PARTIES | 9 | SIGNIFICANT TRANSACTIONS WITH RELATED PARTIES |
Accounts payable – related parties was $2,090 as of December 31, 2014 (September 30, 2014 - $16,977) for expenses to be reimbursed to directors. This amount is unsecured, non-interest bearing, and has no fixed terms of repayment. | ||
As of December 31, 2014, officers, directors, their families, and their controlled entities have acquired 53.41% of the Company’s outstanding common capital stock. This percentage does not include unexercised warrants or stock options. | ||
The Company incurred expenses $39,618 to one related party, Concorde Consulting, for professional fees and consulting services provided to the Company during the period ended December 31, 2014 (September 30, 2014 - $198,703). These amounts were fully paid as of December 31, 2014. |
Asset_Retirement_Obligations
Asset Retirement Obligations | 3 Months Ended | |||||||||
Dec. 31, 2014 | ||||||||||
Asset Retirement Obligations [Abstract] | ||||||||||
ASSET RETIREMENT OBLIGATIONS | 10 | ASSET RETIREMENT OBLIGATIONS | ||||||||
The total future asset retirement obligation is estimated by management based on the Company’s net working interests in all wells and facilities, estimated costs to reclaim and abandon wells and facilities and the estimated timing of the costs to be incurred in future periods. At December 31, 2014, the Company estimates the undiscounted cash flows related to asset retirement obligation to total approximately $661,520 (September 30, 2014 - $ 689,445). The fair value of the liability at December 31, 2014 is estimated to be $454,223 (September 30, 2014 - $ 469,013) using a risk free rate of 3.74% and an inflation rate of 2%. The actual costs to settle the obligation are expected to occur in approximately 35 years. | ||||||||||
Changes to the asset retirement obligation were as follows: | ||||||||||
December 31, | September 30, | |||||||||
2014 | 2014 | |||||||||
Balance, beginning of period | $ | 469,013 | $ | 446,155 | ||||||
Liabilities incurred | – | 73,395 | ||||||||
Effect of foreign exchange | (19,098 | ) | (64,079 | ) | ||||||
Disposal | – | (4,045 | ) | |||||||
Accretion expense | 4,308 | 17,587 | ||||||||
Balance, end of period | $ | 454,223 | $ | 469,013 |
Common_Stock
Common Stock | 3 Months Ended | |||||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||||
Common Stock [Abstract] | ||||||||||||||||||||||
Common Stock | 11 | COMMON STOCK | ||||||||||||||||||||
On June 20, 2013, the Company completed a private placement for an aggregate of 850,000 units at a price of $0.05 per unit for an aggregate of $42,500. Each unit consists of one common share and one common share purchase warrant. Each warrant entitles the holder to purchase one additional common share at a price of $0.075 per common share for a period of three years from the date of closing, provided that if the closing price of the common shares of the Company on the principal market on which the shares trade is equal to or exceeds $1.00 for 30 consecutive trading days, the warrant term shall automatically accelerate to the date which is 30 calendar days following the date that written notice has been given to the warrant holders. The warrants expire on June 20, 2016. The value of the common shares and the warrants totalled $27,448 and $15,052, respectively. | ||||||||||||||||||||||
On July 31, 2013, the Company completed a private placement for an aggregate of 45,111,778 common shares for an aggregate of $22,000,000. Pursuant to the subscription agreement between the Company and investor the Company issued the shares to the investor after September 20, 2013 but before November 30, 2013. No warrants were issued to the investor in connection with this private placement. | ||||||||||||||||||||||
Between August 12 and August 15, 2013, six directors and two consultants of the Company acquired a combined total of 3,768,096 common shares, upon exercising stock options and warrants, at exercise prices ranging from $0.05 to $0.14 per common share for total combined gross proceeds to the Company of $372,000. | ||||||||||||||||||||||
Return of Capital Distribution | ||||||||||||||||||||||
On August 9, 2013, the Company approved a distribution to its shareholders in the amount of $0.07 per share to be payable on September 20, 2013 (the “Payment Date”) to the holders of record of all the issued and outstanding shares of common stock of the Company as of the close of business on August 16, 2013, (the “Record Date”). This cash distribution to the Company’s shareholders was not a dividend paid out of the earnings and profits, but was a non-dividend distribution characterized as a “return of capital”. | ||||||||||||||||||||||
Warrants | ||||||||||||||||||||||
On October 10, 2013, the Company extended the expiration date of two warrants to purchase up to an aggregate of 29,047,617 shares of the Company’s common stock. The exercise price of the warrants remains unchanged at $0.105 per share. As a result of this extension, the expiration date of the warrants has been amended from the original expiry date of November 9, 2013 to November 23, 2015. | ||||||||||||||||||||||
On June 23, 2014, 47,618 partial warrants were cancelled and transferred to a non-related party. | ||||||||||||||||||||||
On October 3, 2014, a warrant holder of the Company acquired 47,618 shares of the Company’s common stock, upon exercising warrants, at an exercise price of $0.105 per share of common stock for gross proceeds to the Company of $5,000. | ||||||||||||||||||||||
The following table summarizes the Company’s warrants outstanding as of December 31, 2014: | ||||||||||||||||||||||
Shares Underlying | Shares Underlying | |||||||||||||||||||||
Warrants Outstanding | Warrants Exercisable | |||||||||||||||||||||
Range of Exercise Price | Shares Underlying Warrants Outstanding | Weighted Average Remaining Contractual Life | Weighted Average Exercise Price | Shares Underlying Warrants Exercisable | Weighted Average Exercise Price | |||||||||||||||||
$0.105 at December 31, 2014 | 71,857,141 | 0.9 | 0.105 | 71,857,141 | 0.105 | |||||||||||||||||
$0.075 at December 31, 2014 | 520,000 | 1.47 | 0.075 | 520,000 | 0.075 | |||||||||||||||||
72,377,141 | 0.9 | 0.105 | 72,377,141 | 0.105 | ||||||||||||||||||
The following is a summary of warrant activity for the period ended December 31, 2014:” | ||||||||||||||||||||||
Number of Warrants | Weighted Average Exercise Price | Intrinsic Value | ||||||||||||||||||||
Balance, September 30, 2014 | 72,424,759 | $ | 0.105 | $ | 0.215 | |||||||||||||||||
Cancelled | – | – | – | |||||||||||||||||||
Granted | – | – | – | |||||||||||||||||||
Exercised | 47,618 | 0.105 | 0.045 | |||||||||||||||||||
Balance, December 31, 2014 | 72,377,141 | $ | 0.105 | $ | 0.045 | |||||||||||||||||
Outstanding Warrants, December 31, 2014 | 72,377,141 | $ | 0.105 | $ | 0.045 | |||||||||||||||||
There were 72,377,141 warrants outstanding as of December 31, 2014 (September 30, 2014 – 72,424,759), which have a historical fair market value of $1,738,336 (September 30, 2013 - $1,743,336). | ||||||||||||||||||||||
Measurement Uncertainty for Warrants | ||||||||||||||||||||||
The Company used the Black-Scholes option pricing model (“Black-Scholes”) to value the options and warrants. This model was developed for use in estimating the fair value of traded “European” options which are liquid and that have no vesting restrictions and are fully transferable. The stock options that are granted to employees and directors and the warrants attached to the units issued by the Company are non-transferable and some vest over time, and all are “American” options. Option pricing models require the input of subjective assumptions including expected share price volatility. The fair value estimate can vary materially as a result of changes in the assumptions. The following assumptions are used in the Black-Scholes option-pricing model: | ||||||||||||||||||||||
Expected Term – Expected term of 5 years represents the period that the Company’s stock-based awards are expected to be outstanding. | ||||||||||||||||||||||
Expected Volatility – Expected volatilities are based on historical volatility of the Company’s stock, adjusted where determined by management for unusual and non-representative stock price activity not expected to recur. The expected volatility used ranged from 96% to 116%. | ||||||||||||||||||||||
Expected Dividend – The Black-Scholes valuation model calls for a single expected dividend yield as an input. The Company currently pays no dividends and does not expect to pay dividends in the foreseeable future. | ||||||||||||||||||||||
Risk-Free Interest rate – The Company bases the risk-free interest rate on the implied yield currently available on U.S. Treasury zero-coupon issues with an equivalent remaining term. The risk-free rate used ranged from 0.62% to 1.31%. |
Stock_Options
Stock Options | 3 Months Ended | |||||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||||
Stock Options [Abstract] | ||||||||||||||||||||||
STOCK OPTIONS | 12 | STOCK OPTIONS | ||||||||||||||||||||
On November 28, 2005, and as amended on December 4, 2014, the Board of Deep Well adopted the Deep Well Oil & Gas, Inc. Stock Option Plan (the “Plan’). The Plan was approved by the majority of shareholders at the February 24, 2010 general meeting of shareholders. The Plan, is administered by the Board, permits options to acquire shares of the Company’s common stock (the “Common Shares”) to be granted to directors, senior officers and employees of the Company and its subsidiaries, as well as certain consultants and other persons providing services to the Company or its subsidiaries. | ||||||||||||||||||||||
The maximum number of shares, which may be reserved for issuance under the Plan, may not exceed 10% of the Company’s issued and outstanding Common Shares, subject to adjustment as contemplated by the Plan. The aggregate number of Common Shares with respect to which options may be vested to any one person (together with their associates) under the plan, together with all other incentive plans of the Company in any one year shall not exceed 2% of the total number of Common Shares outstanding, and in total may not exceed 6% of the total number of Common Shares outstanding. | ||||||||||||||||||||||
On March 23, 2011, the Company granted six of its directors options to purchase 450,000 shares each of common stock at an exercise price of $0.14 per Common Share, 150,000 vesting immediately and the remaining vesting one-third on March 23, 2012, and one-third on March 23, 2013, with a five-year life. | ||||||||||||||||||||||
On June 20, 2013, the Company granted six of its directors options to purchase 450,000 shares each of common stock at an exercise price of $0.05 per Common Share, 150,000 vesting immediately and the remaining vesting one-third on June 20, 2014, and one-third on June 20, 2015, with a five-year life. | ||||||||||||||||||||||
On June 20, 2013, the Company granted two consultants an option to purchase each 1,000,000 shares each of common stock at an exercise price of $0.05 per Common Share, 500,000 vesting immediately and remaining vesting on June 20, 2014. | ||||||||||||||||||||||
On June 20, 2013, the Company granted one employee an option to purchase 150,000 shares each of common stock at an exercise price of $0.05 per Common Share, 50,000 vesting immediately and the remaining vesting one-third on June 20, 2014, and one-third on June 20, 2015, with a five-year life. | ||||||||||||||||||||||
From August 12 to 15, 2013, there were 3,200,000 stock options exercised for total gross proceeds to the Company of $322,000 from six directors and one consultant. | ||||||||||||||||||||||
On October 28, 2013, the Company granted a contractor an option to purchase 250,000 shares of common stock at an exercise price of $0.30 per Common Share, all vesting immediately, with a five-year life, for his services in connection with the Farmout Agreement dated July 31, 2013. | ||||||||||||||||||||||
On December 4, 2013, the Company appointed a new director to its Board and in connection with the appointment the Company granted the new director an option to purchase 450,000 shares each of common stock at an exercise price of $0.34 per Common Share, 150,000 vesting immediately and the remaining vesting one-third on December 4, 2014, and one-third on December 4, 2015, with a five-year life. | ||||||||||||||||||||||
On September 19, 2014, the Company granted seven of its directors options to purchase 600,000 shares each of common stock at an exercise price of $0.38 per Common Share, 200,000 vesting immediately and the remaining vesting one-third on September 19, 2015, and one-third on September 19, 2016, with a five-year life. | ||||||||||||||||||||||
On September 19, 2014, the Company granted two consultants an option to purchase each 1,200,000 shares each of common stock at an exercise price of $0.38 per Common Share, 600,000 vesting immediately and remaining vesting on September 19, 2015. | ||||||||||||||||||||||
On September 19, 2014, the Company granted one employee an option to purchase 180,000 shares each of common stock at an exercise price of $0.38 per Common Share, 60,000 vesting immediately and the remaining vesting one-third on September 19, 2015, and one-third on September 19, 2016, with a five-year life. | ||||||||||||||||||||||
On November 17, 2014, the Company appointed a new director to its Board and in connection with the appointment the Company granted the new director an option to purchase 600,000 shares each of common stock at an exercise price of $0.23 per Common Share, 200,000 vesting immediately and the remaining vesting one-third on November 17, 2015, and one-third on November 17, 2016, with a five-year life. | ||||||||||||||||||||||
For the period ended December 31, 2014, the Company recorded share based compensation expense related to stock options in the amount of $316,959 (September 30, 2014 – $1,087,356) on the stock options that were issued on November 17, 2014 and vested stock options that were previously granted. As of December 31, 2014, there was remaining unrecognized compensation cost of $1,039,871 related to the non-vested portion of these unit option awards. Compensation expense is based upon straight-line depreciation of the grant-date fair value over the vesting period of the underlying unit option. | ||||||||||||||||||||||
Shares Underlying | Shares Underlying | |||||||||||||||||||||
Options Outstanding | Options Exercisable | |||||||||||||||||||||
Range of Exercise Prices | Shares Underlying Options Outstanding | Weighted Average Remaining Contractual Life | Weighted Average Exercise Price | Shares Underlying Options Exercisable | Weighted Average Exercise Price | |||||||||||||||||
$0.14 at December 31, 2014 | 900,000 | 1.23 | $ | 0.14 | 900,000 | $ | 0.14 | |||||||||||||||
$0.05 at December 31, 2014 | 3,450,000 | 3.47 | 0.05 | 2,500,000 | 0.05 | |||||||||||||||||
$0.30 at December 31, 2014 | 250,000 | 3.83 | 0.3 | 250,000 | 0.3 | |||||||||||||||||
$0.34 at December 31, 2014 | 450,000 | 3.93 | 0.34 | 300,000 | 0.34 | |||||||||||||||||
$0.38 at December 31, 2014 | 6,780,000 | 4.72 | 0.38 | 2,660,000 | 0.38 | |||||||||||||||||
$0.23 at December 31, 2014 | 600,000 | 4.89 | 0.23 | 200,000 | 0.23 | |||||||||||||||||
12,430,000 | 4.08 | $ | 0.26 | 6,810,000 | $ | 0.22 | ||||||||||||||||
The aggregate intrinsic value of exercisable options as of December 31, 2014, was $Nil (September 30, 2014 - $0.11). | ||||||||||||||||||||||
The following is a summary of stock option activity as at December 31, 2014: | ||||||||||||||||||||||
Number of Underlying Shares | Weighted Average Exercise Price | Weighted Average Fair Market Value | ||||||||||||||||||||
Balance, September 30, 2014 | 11,830,000 | $ | 0.26 | $ | 0.21 | |||||||||||||||||
Balance, December 31, 2014 | 12,430,000 | $ | 0.26 | $ | 0.21 | |||||||||||||||||
Exercisable, December 31, 2014 | 6,810,000 | $ | 0.22 | $ | 0.18 | |||||||||||||||||
A summary of the options granted at December 31, 2014 and September 30, 2014 and changes during the periods then ended is presented below: | ||||||||||||||||||||||
31-Dec-14 | 30-Sep-14 | |||||||||||||||||||||
Shares | Weighted Average Exercise Price | Shares | Weighted Average Exercise Price | |||||||||||||||||||
Outstanding balance at beginning of period | 11,830,000 | $ | 0.26 | 900,000 | $ | 0.14 | ||||||||||||||||
3,450,000 | 0.05 | |||||||||||||||||||||
Granted- October 28, 2013 | 250,000 | 0.3 | ||||||||||||||||||||
Granted- December 4, 2013 | 450,000 | 0.34 | ||||||||||||||||||||
Granted- September 19, 2014 | 6,780,000 | 0.38 | ||||||||||||||||||||
Granted- November 17, 2014 | 600,000 | 0.38 | ||||||||||||||||||||
Vested- November 17, 2014 | 200,000 | 0.38 | ||||||||||||||||||||
Vested- December 4, 2014 | 150,000 | 0.34 | ||||||||||||||||||||
Outstanding at end of period | 12,430,000 | $ | 0.26 | 11,830,000 | $ | 0.26 | ||||||||||||||||
Exercisable | 6,810,000 | 0.22 | 6,460,000 | 0.21 | ||||||||||||||||||
There were 5,620,000 unvested stock options outstanding as of December 31, 2014 (September 30, 2014 – 5,370,000). | ||||||||||||||||||||||
Measurement Uncertainty for Stock Options | ||||||||||||||||||||||
The Company used the Black-Scholes option pricing model (“Black-Scholes”) to value the options and warrants. This model was developed for use in estimating the fair value of traded “European” options which are liquid and that have no vesting restrictions and are fully transferable. The stock options that are granted to employees and directors and the warrants attached to the units issued by the Company are non-transferable and some vest over time, and all are “American” options. Option pricing models require the input of subjective assumptions including expected share price volatility. The fair value estimate can vary materially as a result of changes in the assumptions. The following assumptions are used in the Black-Scholes option-pricing model: | ||||||||||||||||||||||
Expected Term – Expected term of 5 years represents the period that the Company’s stock-based awards are expected to be outstanding. | ||||||||||||||||||||||
Expected Volatility – Expected volatilities are based on historical volatility of the Company’s stock, adjusted where determined by management for unusual and non-representative stock price activity not expected to recur. The expected volatility used ranged from 96% to 122%. | ||||||||||||||||||||||
Expected Dividend – The Black-Scholes valuation model calls for a single expected dividend yield as an input. The Company currently pays no dividends and does not expect to pay dividends in the foreseeable future. | ||||||||||||||||||||||
Risk-Free Interest rate – The Company bases the risk-free interest rate on the implied yield currently available on U.S. Treasury zero-coupon issues with an equivalent remaining term. The risk-free rate used ranged from 0.62% to 1.83%. | ||||||||||||||||||||||
Changes_in_NonCash_Working_Cap
Changes in Non-Cash Working Capital | 3 Months Ended | |||||||||
Dec. 31, 2014 | ||||||||||
Changes in Non-Cash Working Capital [Abstract] | ||||||||||
CHANGES IN NON-CASH WORKING CAPITAL | 13 | CHANGES IN NON-CASH WORKING CAPITAL | ||||||||
Three Months | Three Months | |||||||||
Ended | Ended | |||||||||
December 31, | December 31, | |||||||||
2014 | 2013 | |||||||||
Accounts receivable | $ | 693,356 | (6,906 | ) | ||||||
Prepaid expenses | 1,855 | 2,596,914 | ||||||||
Accounts payable | (363,263 | ) | 133,024 | |||||||
$ | 331,948 | 2,723,032 | ||||||||
Commitments
Commitments | 3 Months Ended | |||||
Dec. 31, 2014 | ||||||
Commitments [Abstract] | ||||||
COMMITMENTS | 14 | COMMITMENTS | ||||
Compensation to Directors | ||||||
Since the acquisition of Northern Alberta Oil Ltd., the Company and Northern have entered into the following contracts with the following companies for the services of their officers: | ||||||
1) | Portwest Investments Ltd. (“Portwest”), a company owned 100% by Dr. Horst A. Schmid (the “Consultant”), for providing services to the Company as Chief Executive Officer and President for Cdn $12,500 per month. On July 1, 2005, the Company entered into a consulting agreement (the “Prior Agreement”) with Portwest, as filed with the Company’s annual report on Form 10-KSB filed on February 23, 2007, and incorporated by reference herein. On July 10, 2013, the Company and Portwest agreed to amend (the “Amending Agreement”) the Prior Agreement whereby the following was settled and amended: | |||||
i. | Effective date of the Amending Agreement will be June 20, 2013; | |||||
ii. | Term of Agreement will be until December 31, 2014; | |||||
iii. | The fees payable to the Consultant in the Prior Agreement will be terminated and the Company will grant the Consultant 5-year options on 1,000,000 of its common shares exercisable at $0.05 per share, which was the market price at that time. One half of these shares were vested immediately and the remaining one half vested on June 20, 2014; | |||||
iv. | The Consultant received: | |||||
a. | Cdn $70,000, and | |||||
b. | 850,000 units of the Company’s shares and warrants at a price of $0.05 per unit, which was the market price at the time. Each unit shall be comprised of one restricted Company common share and one 3 year full warrant entitling Portwest to be able to purchase another share for $0.075. The warrants expire on June 20, 2016. | |||||
As consideration for the execution of the Amending Agreement and the Termination of parts of the Prior Agreement, and waiving Cdn $239,528 accrued by the Company as owing to Portwest. | ||||||
In the December 31, 2014 quarter end period, no fees were owed or paid to Portwest. As of September 30, 2013, the Company had settled all outstanding amounts owed to Portwest. | ||||||
2) | Concorde Consulting, a company owned 100% by Mr. Curtis J. Sparrow, for providing services as Chief Financial Officer to the Company for Cdn $15,000 per month. As of December 31, 2014, the Company did not owe Concorde Consulting any of this amount. | |||||
Rental Agreement | ||||||
On January 21, 2014, the Company renewed its Edmonton office lease commencing effective on January 1, 2014 and expiring on June 30, 2015. The quarterly payments due are as follows: | ||||||
Cdn $ | ||||||
2015 Q2 (January - March) | 9,031 | |||||
2015 Q3 (April - June) | 9,031 | |||||
Legal_Actions
Legal Actions | 3 Months Ended | |
Dec. 31, 2014 | ||
Legal Actions [Abstract] | ||
LEGAL ACTIONS | 15 | LEGAL ACTIONS |
IGM Resources Corp vs. Deep Well Oil & Gas, Inc., et al – DISMISSED | ||
On February 11, 2014, the Court dismissed, without any costs to the Company, the Plaintiff’s claims against Deep Well Oil & Gas, Inc. and its subsidiary Northern Alberta Oil Ltd. | ||
On March 10, 2005, I.G.M. Resources Corp. (“the Plaintiff”) filed against Classic Energy Inc., 979708 Alberta Ltd., Deep Well Oil & Gas, Inc., Nearshore Petroleum Corporation, Mr. Steven P. Gawne, Rebekah Gawne, Gawne Family Trust, 1089144 Alberta Ltd., John F. Brown, Diane Lynn McClaflin, Cassandra Doreen Brown, Elissa Alexandra Brown, Brown Family Trust, Priority Exploration Ltd., Northern Alberta Oil Ltd. and Gordon Skulmoski (the “IGM Defendants”) a Statement of Claim in the Court of Queen's Bench of Alberta Judicial District of Calgary. This suit is a part of a series of lawsuits or actions undertaken by the Plaintiff against some of the other above IGM Defendants. | ||
The Plaintiff was and still is a minority shareholder of 979708 Alberta Ltd. ("979708"). 979708 was in the business of discovering, assembling and acquiring oil and gas prospects. In 2002 and 2003, 979708 acquired oil and gas prospects in the Sawn Lake area of Alberta. On or about the 14th of July, 2003, all or substantially all the assets of 979708 were sold to Classic Energy Inc. The Plaintiff claims the value of the assets sold was far in excess of the value paid for those assets. On April 23, 2004, Northern purchased Classic Energy Inc.'s assets, some of which are under dispute by the Plaintiff. On June 7, 2005, Deep Well acquired all of the common shares of Northern thereby giving Deep Well an indirect beneficial interest in the assets in which the Plaintiff is claiming an interest. | ||
The Plaintiff was seeks an order setting aside the transaction and returning the assets to 979708, compensation in the amount of Cdn $15,000,000, a declaration of trust declaring that Northern and Deep Well hold all of the assets acquired from 979708 and any property acquired by use of such assets, or confidential information of 979708, in trust for the Plaintiff. | ||
Crude_Oil_and_Natural_Gas_Prop
Crude Oil and Natural Gas Property Information | 3 Months Ended | |||||||||
Dec. 31, 2014 | ||||||||||
Oil and Gas Properties [Abstract] | ||||||||||
CRUDE OIL AND NATURAL GAS PROPERTY INFORMATION | 16 | CRUDE OIL AND NATURAL GAS PROPERTY INFORMATION | ||||||||
Results of Operations from Oil and Gas Producing Activities | ||||||||||
The following table sets forth the results of the Company’s operations from oil (in the form of bitumen) producing activities from the Company’s Sawn Lake oil sands properties located in Alberta, Canada, for the period ending December 31, 2014 and for the year ended September 30, 2014: | ||||||||||
December 31, | September 30, | |||||||||
2014 | 2014 | |||||||||
Oil sales after royalties | $ | 137,420 | $ | 47,116 | ||||||
Production (Operating) expenses | (137,420 | ) | (47,115 | ) | ||||||
Exploration expenses | (995 | ) | (47,182 | ) | ||||||
Depreciation, accretion and depletion | (20,711 | ) | (97,646 | ) | ||||||
(21,706 | ) | (144,827 | ) | |||||||
Income tax expenses | – | – | ||||||||
Results of operations from producing activities | $ | (21,706 | ) | $ | (144,827 | ) | ||||
For the period ending December 31, 2014, the Company reported oil revenue in the amount of $137,420 after deduction of royalties. For the period ending December 31, 2014, the volumes of oil delivered were 3,614 barrels net to the Company, before royalties, with an average oil sales price of $35.84 per barrel (Cdn$41.68 per barrel). Operating expenses are zero since at this time they were paid for under the Farmout Agreement. Transportation costs are included in these operating costs. The total share of the material costs and operating expenses of the Company’s joint SAGD Project, has been funded in accordance with the Farmout Agreement, at a net cost to the Company of $Nil. As required by the Farmout Agreement, the Farmee has since paid Cdn $19,355,129 to the operator of the SAGD Project for the Farmee’s share and the Company’s share of the costs of the SAGD Project up to December 31, 2014. These costs included the drilling of the SAGD well pair; the purchase and transportation of equipment; installation and construction of the steam plant facility; testing and commissioning; the purchase of the water source and disposal wells and expenditures to connect these water wells to the steam plant facility along with a fuel source tie-in; and the monthly operating expenses associated with the steaming and production of the SAGD well pair up to December 31, 2014, 2014. | ||||||||||
Capitalized Costs Relating Specifically to the SAGD Project | ||||||||||
The Company entered into a Farmout Agreement dated July 31, 2013, whereby the Company’s operating costs of the SAGD Project are paid in full by the Farmee in accordance with the Farmout Agreement; therefore the Company has not capitalized any of the operating costs paid by the Farmee to the operator of the SAGD Project. See Note 4 herein “Capitalization of Costs Incurred in Oil and Gas Activities”. | ||||||||||
Costs Incurred in Oil and Gas Property Acquisition, Exploration, and Development | ||||||||||
See Note 5 herein “Exploration Activities”. | ||||||||||
Summary_of_Significant_Account1
Summary of Significant Accounting Policies (Policies) | 3 Months Ended | ||||||
Dec. 31, 2014 | |||||||
Summary of Significant Accounting Policies [Abstract] | |||||||
Basis of Consolidation | Basis of Consolidation | ||||||
These condensed consolidated financial statements include the accounts of two wholly owned subsidiaries: (1) Northern Alberta Oil Ltd. (“Northern”) from the date of acquisition, being June 7, 2005, incorporated under the Business Corporations Act (Alberta), Canada; and (2) Deep Well Oil & Gas (Alberta) Ltd., incorporated under the Business Corporations Act (Alberta), Canada on September 15, 2005. All inter-company balances and transactions have been eliminated. | |||||||
Cash and Cash Equivalents | Cash and Cash Equivalents | ||||||
The Company considers all highly liquid instruments with a maturity of three months or less at the time of issuance to be cash equivalents. | |||||||
Allowance for Doubtful Accounts | Allowance for Doubtful Accounts | ||||||
The Company determines allowances for doubtful accounts based on aging of specific accounts. Accounts receivable are stated at the historical carrying amounts net of allowances for doubtful accounts and include only the amounts the Company deems to be collectable. The allowance for bad debts was $nil and $nil at December 31, 2014 and September 30, 2014, respectively. | |||||||
Crude oil and natural gas properties | Crude oil and natural gas properties | ||||||
The Company uses the successful efforts method of accounting for crude oil and natural gas properties whereby costs incurred to acquire mineral interests in crude oil and natural gas properties, to drill and equip exploratory wells that find proved reserves, to drill and equip development wells, and expenditures for enhanced recovery operations are capitalized. Geological and geophysical costs, seismic costs incurred for exploratory projects, lease rentals and costs associated with unsuccessful exploratory wells or projects are expensed as incurred. Costs of seismic studies that are utilized in development drilling within an area of proved reserves are capitalized as development costs. To the extent a seismic project covers areas of both developmental and exploratory drilling, those seismic costs are proportionately allocated between capitalized development costs and exploration expense. Maintenance, repairs and costs of injection are expensed as incurred, except that the costs of replacements or renewals that expand capacity or improve production are capitalized. | |||||||
Under the successful efforts method of accounting, the Company capitalizes exploratory drilling, equipping and facility costs on the balance sheet pending determination of whether the project has found proved reserves in economically producible quantities. The Company capitalizes costs associated with the acquisition or construction of support equipment and facilities with the drilling and development costs to which they relate. If proved reserves are assigned to a project, the associated capitalized costs become part of well equipment and facilities. However, if proved reserves are not found in a project, the capitalized costs associated with the project are expensed, net of any salvage value. Total capitalized costs pending the determination of proved reserves were $19.6 million and $19.6 million at December 31, 2014 and September 30, 2014, respectively. | |||||||
Property and Equipment | Property and Equipment | ||||||
Property and equipment are stated at cost less accumulated depreciation. Depreciation expense is computed using the declining balance method over the estimated useful life of the asset. Only half of the depreciation rate is taken in the year of acquisition. The following is a summary of the depreciation rates used in computing depreciation expense: | |||||||
% | |||||||
Software | 100 | ||||||
Computer equipment | 55 | ||||||
Portable work camp | 30 | ||||||
Vehicles | 30 | ||||||
Road Mats | 30 | ||||||
Wellhead | 25 | ||||||
Office furniture and equipment | 20 | ||||||
Oilfield Equipment | 20 | ||||||
Tanks | 10 | ||||||
Expenditures for major repairs and renewals that extend the useful life of the asset are capitalized. Minor repair expenditures are charged to expense as incurred. Leasehold improvements are amortized over the greater of five years or the remaining life of the lease agreement. | |||||||
Long-Lived Assets | Long-Lived Assets | ||||||
Oil and Gas Properties - Proved crude oil and natural gas properties are reviewed for impairment on a field-by-field basis each quarter, or when events and circumstances indicate a possible decline in the recoverability of the carrying value of such field. The estimated future cash flows expected in connection with the field are compared to the carrying amount of the field to determine if the carrying amount is recoverable. If the carrying amount of the field exceeds its estimated undiscounted future cash flows, the carrying amount of the field is reduced to its estimated fair value. Due to the unavailability of relevant comparable market data, a discounted cash flow method is used to determine the fair value of proved properties. The discounted cash flow method estimates future cash flows based on management’s estimates of future crude oil and natural gas production, commodity prices based on commodity futures price strips, operating and development costs, and a risk-adjusted discount rate. | |||||||
Non-producing crude oil and natural gas properties primarily consist of undeveloped leasehold costs and costs associated with the purchase of certain proved undeveloped reserves. Individually significant non-producing properties, if any, are assessed for impairment on a property-by-property basis and, if the assessment indicates an impairment, a loss is recognized by providing a valuation allowance consistent with the level at which impairment was assessed. For individually insignificant non-producing properties, impairment losses are recognized by amortizing the portion of the properties’ costs which management estimates will not be transferred to proved properties over the lives of the leases based on experience of successful drilling and the average holding period. The Company’s impairment assessments are affected by economic factors such as the results of exploration activities, commodity price outlooks, anticipated drilling programs, remaining lease terms, and potential shifts in business strategy employed by management. | |||||||
Non Oil and Gas Assets - The Company reviews for the impairment of long-lived assets annually and whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. An impairment loss would be recognized when estimated undiscounted future cash flows expected to result from the use of the asset and its eventual disposition is less than its carrying amount. Impairment is measured as the amount by which the assets’ carrying value exceeds its fair value. No impairments to the Company’s long-lived assets were identified or recorded in the three months ended December 31, 2014 or in the fiscal year ended September 30, 2014. | |||||||
Depreciation, Depletion and Amortization | Depreciation, Depletion and Amortization | ||||||
Depreciation, depletion and amortization of capitalized drilling and development costs of producing crude oil and natural gas properties, including related support equipment and facilities, are computed using the unit-of-production method on a field basis based on total estimated proved developed crude oil and natural gas reserves. Amortization of producing leaseholds is based on the unit-of-production method using total estimated proved reserves. In arriving at rates under the unit-of-production method, the quantities of recoverable crude oil and natural gas reserves are established based on estimates made by the Company’s internal geologists and engineers and external independent reserve engineers. Upon sale or retirement of properties, the cost and related accumulated depreciation, depletion and amortization are eliminated from the accounts and the resulting gain or loss, if any, is recognized. Unit of production rates are revised whenever there is an indication of a need, but at least in conjunction with annual reserve reports. Revisions are accounted for prospectively as changes in accounting estimates. | |||||||
Asset Retirement Obligations | Asset Retirement Obligations | ||||||
The Company accounts for asset retirement obligations by recording the fair value of the estimated future cost of the Company’s plugging and abandonment obligations. The asset retirement obligation is recorded when there is a legal obligation associated with the retirement of a tangible long-lived asset and the fair value of the liability can reasonably be estimated. Upon initial recognition of an asset retirement obligation, the Company increases the carrying amount of the long-lived asset by the same amount as the liability. Over time, the liabilities are accreted for the change in their present value through charges to oil and gas production and well operations costs. The initial capitalized costs are depleted over the useful lives of the related assets through charges to depreciation, depletion, and amortization. If the fair value of the estimated asset retirement obligation changes, an adjustment is recorded to both the asset retirement obligation and the asset retirement cost. | |||||||
Revisions in estimated liabilities can result from revisions of estimated inflation rates, escalating retirement costs, and changes in the estimated timing of settling asset retirement obligations. As at December 31, 2014 and September 30, 2014, asset retirement obligations amount to $454,223 and $469,013, respectively. The Company has posted bonds, where required, with the Government of Alberta based on the amount the government estimates the cost of abandonment and reclamation to be. | |||||||
Foreign Currency Translation | Foreign Currency Translation | ||||||
The functional currency of the Canadian subsidiaries is the United States dollar. However, the Canadian subsidiaries transact in Canadian dollars. Consequently, monetary assets and liabilities are remeasured into United States dollars at the exchange rate on the balance sheet date and non-monetary items are remeasured at the rate of exchange in effect when the assets are acquired or obligations incurred. Revenues and expenses are remeasured at the average exchange rate prevailing during the period. Foreign currency transaction gains and losses are included in results of operations. | |||||||
Accounting Methods | Accounting Method | ||||||
The Company recognizes income and expenses based on the accrual method of accounting. | |||||||
Dividend Policy | Dividend Policy | ||||||
The Company has not yet adopted a policy regarding payment of dividends. | |||||||
Financial, Concentration and Credit Risk | Financial, Concentration and Credit Risk | ||||||
The Company does not have any concentration or related financial credit risk related to cash as most of the Company’s funds are maintained in a financial institution which has its deposits fully guaranteed by the Government of Alberta. | |||||||
The Company is not directly subject to credit risk resulting from the concentration of its crude oil sales. For the period ending December 31, 2014 and for the year ended September 30, 2014, the Company has recorded oil sales received from the operator of the Company’s producing properties. The Company’s joint venture partner is the operator of the Company’s producing properties and it is the Company’s joint venture partner who sells 100% of the Company’s oil production to two or more purchasers in the oil and gas industry. The Company does not require collateral and management periodically evaluates the operator’s financial statements and the collectability of oil sales receivables from the operator and believes that the Company’s oil sales receivables are fully collectable and that the risk of loss is minimal. | |||||||
Income Taxes | Income Taxes | ||||||
The Company utilizes the liability method of accounting for income taxes. Under the liability method, deferred tax assets and liabilities are determined based on the differences between financial reporting and the tax bases of the assets and liabilities, and are measured using the enacted tax rates and laws that will be in effect when the differences are expected to reverse. An allowance against deferred tax assets is recorded when it is more likely than not that such tax benefits will not be realized. | |||||||
Due to the uncertainty regarding the Company’s profitability, a valuation allowance has been recorded against the future tax benefits of its losses and no net benefit has been recorded in the consolidated financial statements. | |||||||
Revenue Recognition | Revenue Recognition | ||||||
The Company is in the business of exploring for, developing, producing, and selling crude oil. Crude oil revenue is recognized when the product is taken from the storage tanks on the lease and delivered to the purchaser and title transfers to the purchaser. Payment is generally received one to three months after the sale has occurred. | |||||||
Occasionally the Company may sell specific leases, and the gain or loss associated with these transactions will be shown separately from the profit or loss from the operations or sales of oil products. Such gain or losses will be measured and recognized when all of the following have occurred: (1) there is persuasive evidence of an arrangement to sell; (2) the price of the sale is fixed or determinable; (3) the title to the lease has transferred; and (4) collection is reasonably assured. | |||||||
Advertising and Market Development | Advertising and Market Development | ||||||
The Company expenses advertising and market development costs as incurred. | |||||||
Basic and Diluted Net Income (Loss) Per Share | Basic and Diluted Net Income (Loss) Per Share | ||||||
Basic net income (loss) per share amounts are computed based on the weighted average number of shares actually outstanding. Diluted net income (loss) per share amounts are computed using the weighted average number of common shares and common equivalent shares outstanding as if shares had been issued on the exercise of the common share rights, unless the exercise becomes antidilutive and then the basic and diluted per share amounts are the same. There were 23,543,809 common stock equivalents excluded from the calculation because their effect would be antidilutive. | |||||||
Financial Instruments | Financial Instruments | ||||||
Financial instruments include cash and cash equivalents, accounts receivable, long term investments, investment in equity securities, accounts payable and accounts payable - related parties. The fair value of these financial instruments approximates their carrying value because of the short-term maturity of these items unless otherwise noted. The fair value of the investment in equity securities cannot be determined as the market value is not readily obtainable. The equity securities are reported using the cost method. | |||||||
Environmental Requirements | Environmental Requirements | ||||||
At the report date, environmental requirements related to the oil properties acquired are unknown and therefore an estimate of any future cost cannot be made. | |||||||
Share-Based Compensation | Share-Based Compensation | ||||||
The Company accounts for stock options granted to directors, officers, employees and non-employees using the fair value method of accounting. The fair value of stock options for directors, officers and employees are calculated at the date of grant and is expensed over the vesting period of the options on a straight-line basis. For non-employees, the fair value of the options is measured on the earlier of the date at which the counterparty performance is complete or the date at which the performance commitment is reached. The Company uses the Black-Scholes model to calculate the fair value of stock options issued, which requires certain assumptions to be made at the time the options are awarded, including the expected life of the option, the expected number of granted options that will vest and the expected future volatility of the stock. The Company reflects estimates of award forfeitures at the time of grant and revises in subsequent periods, if necessary, when forfeiture rates are expected to change. | |||||||
Recently Adopted Accounting Standards | Recently Adopted Accounting Standards | ||||||
In June 2014, the FASB issued ASU 2014-10, “Development Stage Entities (Topic 915): Elimination of Certain Financial Reporting Requirements, Including an Amendment to Variable Interest Entities Guidance in Topic 810, Consolidation”. The guidance eliminates the definition of a development stage entity thereby removing the incremental financial reporting requirements from U.S. GAAP for development or exploration stage entities, primarily presentation of inception to date financial information. The provisions of the amendments are effective for annual reporting periods beginning after December 15, 2014, and the interim periods therein. However, early adoption is permitted. Accordingly, the Company has adopted this standard as of September 30, 2014. | |||||||
The Company does not expect the adoption of any other recent accounting pronouncements to have a material impact on the Company’s financial statements. | |||||||
Estimates and Assumptions | Estimates and Assumptions | ||||||
Management uses estimates and assumptions in preparing financial statements in accordance with generally accepted accounting principles. Those estimates and assumptions affect the reported amounts of the assets and liabilities, the disclosure of contingent assets and liabilities, and the reported revenues and expenses. Actual results could vary from the estimates that were used in preparing these consolidated financial statements. | |||||||
Significant estimates by management include valuations of oil properties, valuation of accounts receivable, useful lives of long-lived assets, asset retirement obligations, valuation of share-based compensation, and the realizability of future income taxes. |
Summary_of_Significant_Account2
Summary of Significant Accounting Policies (Tables) | 3 Months Ended | ||||||
Dec. 31, 2014 | |||||||
Summary of Significant Accounting Policies [Abstract] | |||||||
Summary of depreciation rates used in computing depreciation expense | % | ||||||
Software | 100 | ||||||
Computer equipment | 55 | ||||||
Portable work camp | 30 | ||||||
Vehicles | 30 | ||||||
Road Mats | 30 | ||||||
Wellhead | 25 | ||||||
Office furniture and equipment | 20 | ||||||
Oilfield Equipment | 20 | ||||||
Tanks | 10 | ||||||
Oil_and_Gas_Properties_Tables
Oil and Gas Properties (Tables) | 3 Months Ended | |||||
Dec. 31, 2014 | ||||||
Oil and Gas Properties [Abstract] | ||||||
Summary of net payments due in Canadian dollars | (Cdn $) | |||||
2015 | $ | 36,221 | ||||
2016 | $ | 48,294 | ||||
2017 | $ | 48,294 | ||||
2018 | $ | 48,294 | ||||
2019 | $ | 29,478 | ||||
Subsequent | $ | 22,400 | ||||
Capitalization_of_Costs_Incurr1
Capitalization of Costs Incurred in Oil and Gas Activities (Tables) | 3 Months Ended | |||||||||
Dec. 31, 2014 | ||||||||||
Oil and Gas Properties [Abstract] | ||||||||||
Summary of capitalized costs relating to oil and gas - producing activities | December 31, | September 30, | ||||||||
2014 | 2014 | |||||||||
Unproved Oil and Gas Properties | $ | 19,668,577 | $ | 19,651,296 | ||||||
Proved Oil and Gas Properties | 4,568 | 4,568 | ||||||||
Accumulated Depreciation and Depletion | (54,950 | ) | (51,814 | ) | ||||||
Net Capitalized Cost | $ | 19,618,195 | $ | 19,604,050 | ||||||
Exploration_Activities_Tables
Exploration Activities (Tables) | 3 Months Ended | |||||||||
Dec. 31, 2014 | ||||||||||
Exploration Activities [Abstract] | ||||||||||
Summary of cost incurred in oil and gas property acquisition, exploration and development activities | December 31, | September 30, | ||||||||
2014 | 2014 | |||||||||
Acquisition of Properties: | ||||||||||
Proved | $ | – | $ | – | ||||||
Unproved | 17,281 | 3,692,346 | ||||||||
Exploration costs | 995 | 47,182 | ||||||||
Development costs | – | – | ||||||||
Property_and_Equipment_Tables
Property and Equipment (Tables) | 3 Months Ended | |||||||||||||
Dec. 31, 2014 | ||||||||||||||
Property and Equipment [Abstract] | ||||||||||||||
Summary of Property and Equipment | ||||||||||||||
31-Dec-14 | ||||||||||||||
Accumulated | Net Book | |||||||||||||
Cost | Depreciation | Value | ||||||||||||
Computer equipment | $ | 32,197 | $ | 31,392 | $ | 805 | ||||||||
Office furniture and equipment | 34,130 | 27,242 | 6,888 | |||||||||||
Software | 5,826 | 5,826 | – | |||||||||||
Leasehold improvements | 4,936 | 4,936 | – | |||||||||||
Portable work camp | 170,580 | 148,039 | 22,541 | |||||||||||
Vehicles | 38,077 | 33,045 | 5,032 | |||||||||||
Oilfield equipment | 249,046 | 140,731 | 108,315 | |||||||||||
Road mats | 364,614 | 316,432 | 48,182 | |||||||||||
Wellhead | 3,254 | 2,128 | 1,126 | |||||||||||
Tanks | 96,085 | 43,532 | 52,553 | |||||||||||
$ | 998,745 | $ | 753,304 | $ | 245,442 | |||||||||
30-Sep-14 | ||||||||||||||
Accumulated | Net Book | |||||||||||||
Cost | Depreciation | Value | ||||||||||||
Computer equipment | $ | 32,198 | $ | 31,264 | $ | 934 | ||||||||
Office furniture and equipment | 34,130 | 26,880 | 7,250 | |||||||||||
Software | 5,826 | 5,826 | – | |||||||||||
Leasehold improvements | 4,936 | 4,936 | – | |||||||||||
Portable work camp | 170,580 | 146,211 | 24,369 | |||||||||||
Vehicles | 38,077 | 32,637 | 5,440 | |||||||||||
Oilfield equipment | 249,045 | 135,030 | 114,015 | |||||||||||
Road mats | 364,614 | 312,525 | 52,089 | |||||||||||
Wellhead | 3,254 | 2,053 | 1,201 | |||||||||||
Tanks | 96,085 | 42,185 | 53,900 | |||||||||||
$ | 998,745 | $ | 739,547 | $ | 259,198 | |||||||||
Asset_Retirement_Obligations_T
Asset Retirement Obligations (Tables) | 3 Months Ended | |||||||||
Dec. 31, 2014 | ||||||||||
Asset Retirement Obligations [Abstract] | ||||||||||
Schedule of changes to the asset retirement obligation | December 31, | September 30, | ||||||||
2014 | 2014 | |||||||||
Balance, beginning of period | $ | 469,013 | $ | 446,155 | ||||||
Liabilities incurred | – | 73,395 | ||||||||
Effect of foreign exchange | (19,098 | ) | (64,079 | ) | ||||||
Disposal | – | (4,045 | ) | |||||||
Accretion expense | 4,308 | 17,587 | ||||||||
Balance, end of period | $ | 454,223 | $ | 469,013 | ||||||
Common_Stock_Tables
Common Stock (Tables) | 3 Months Ended | |||||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||||
Common Stock [Abstract] | ||||||||||||||||||||||
Summary of Company's warrants outstanding | ||||||||||||||||||||||
Shares Underlying | Shares Underlying | |||||||||||||||||||||
Warrants Outstanding | Warrants Exercisable | |||||||||||||||||||||
Range of Exercise Price | Shares Underlying Warrants Outstanding | Weighted Average Remaining Contractual Life | Weighted Average Exercise Price | Shares Underlying Warrants Exercisable | Weighted Average Exercise Price | |||||||||||||||||
$0.105 at December 31, 2014 | 71,857,141 | 0.9 | 0.105 | 71,857,141 | 0.105 | |||||||||||||||||
$0.075 at December 31, 2014 | 520,000 | 1.47 | 0.075 | 520,000 | 0.075 | |||||||||||||||||
72,377,141 | 0.9 | 0.105 | 72,377,141 | 0.105 | ||||||||||||||||||
Summary of warrants activity | Number of Warrants | Weighted Average Exercise Price | Intrinsic Value | |||||||||||||||||||
Balance, September 30, 2014 | 72,424,759 | $ | 0.105 | $ | 0.215 | |||||||||||||||||
Cancelled | – | – | – | |||||||||||||||||||
Granted | – | – | – | |||||||||||||||||||
Exercised | 47,618 | 0.105 | 0.045 | |||||||||||||||||||
Balance, December 31, 2014 | 72,377,141 | $ | 0.105 | $ | 0.045 | |||||||||||||||||
Outstanding Warrants, December 31, 2014 | 72,377,141 | $ | 0.105 | $ | 0.045 | |||||||||||||||||
Stock_Options_Tables
Stock Options (Tables) | 3 Months Ended | |||||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||||
Stock Options [Abstract] | ||||||||||||||||||||||
Summary of stock options | Shares Underlying | Shares Underlying | ||||||||||||||||||||
Options Outstanding | Options Exercisable | |||||||||||||||||||||
Range of Exercise Prices | Shares Underlying Options Outstanding | Weighted Average Remaining Contractual Life | Weighted Average Exercise Price | Shares Underlying Options Exercisable | Weighted Average Exercise Price | |||||||||||||||||
$0.14 at December 31, 2014 | 900,000 | 1.23 | $ | 0.14 | 900,000 | $ | 0.14 | |||||||||||||||
$0.05 at December 31, 2014 | 3,450,000 | 3.47 | 0.05 | 2,500,000 | 0.05 | |||||||||||||||||
$0.30 at December 31, 2014 | 250,000 | 3.83 | 0.3 | 250,000 | 0.3 | |||||||||||||||||
$0.34 at December 31, 2014 | 450,000 | 3.93 | 0.34 | 300,000 | 0.34 | |||||||||||||||||
$0.38 at December 31, 2014 | 6,780,000 | 4.72 | 0.38 | 2,660,000 | 0.38 | |||||||||||||||||
$0.23 at December 31, 2014 | 600,000 | 4.89 | 0.23 | 200,000 | 0.23 | |||||||||||||||||
12,430,000 | 4.08 | $ | 0.26 | 6,810,000 | $ | 0.22 | ||||||||||||||||
Summary of stock option activity | Number of Underlying Shares | Weighted Average Exercise Price | Weighted Average Fair Market Value | |||||||||||||||||||
Balance, September 30, 2014 | 11,830,000 | $ | 0.26 | $ | 0.21 | |||||||||||||||||
Balance, December 31, 2014 | 12,430,000 | $ | 0.26 | $ | 0.21 | |||||||||||||||||
Exercisable, December 31, 2014 | 6,810,000 | $ | 0.22 | $ | 0.18 | |||||||||||||||||
Summary of option granted | 31-Dec-14 | 30-Sep-14 | ||||||||||||||||||||
Shares | Weighted Average Exercise Price | Shares | Weighted Average Exercise Price | |||||||||||||||||||
Outstanding balance at beginning of period | 11,830,000 | $ | 0.26 | 900,000 | $ | 0.14 | ||||||||||||||||
3,450,000 | 0.05 | |||||||||||||||||||||
Granted- October 28, 2013 | 250,000 | 0.3 | ||||||||||||||||||||
Granted- December 4, 2013 | 450,000 | 0.34 | ||||||||||||||||||||
Granted- September 19, 2014 | 6,780,000 | 0.38 | ||||||||||||||||||||
Granted- November 17, 2014 | 600,000 | 0.38 | ||||||||||||||||||||
Vested- November 17, 2014 | 200,000 | 0.38 | ||||||||||||||||||||
Vested- December 4, 2014 | 150,000 | 0.34 | ||||||||||||||||||||
Outstanding at end of period | 12,430,000 | $ | 0.26 | 11,830,000 | $ | 0.26 | ||||||||||||||||
Exercisable | 6,810,000 | 0.22 | 6,460,000 | 0.21 | ||||||||||||||||||
Changes_in_NonCash_Working_Cap1
Changes in Non-Cash Working Capital (Tables) | 3 Months Ended | |||||||||
Dec. 31, 2014 | ||||||||||
Changes in Non-Cash Working Capital [Abstract] | ||||||||||
Summary of changes in non-cash working capital | ||||||||||
Three Months | Three Months | |||||||||
Ended | Ended | |||||||||
December 31, | December 31, | |||||||||
2014 | 2013 | |||||||||
Accounts receivable | $ | 693,356 | (6,906 | ) | ||||||
Prepaid expenses | 1,855 | 2,596,914 | ||||||||
Accounts payable | (363,263 | ) | 133,024 | |||||||
$ | 331,948 | 2,723,032 | ||||||||
Commitments_Tables
Commitments (Tables) | 3 Months Ended | |||||
Dec. 31, 2014 | ||||||
Commitments [Abstract] | ||||||
Summary of annual payments under office lease agreement | Cdn $ | |||||
2015 Q2 (January - March) | 9,031 | |||||
2015 Q3 (April - June) | 9,031 | |||||
Crude_Oil_and_Natural_Gas_Prop1
Crude Oil and Natural Gas Property Information (Tables) | 3 Months Ended | |||||||||
Dec. 31, 2014 | ||||||||||
Oil and Gas Properties [Abstract] | ||||||||||
Summary of operations from oil and gas producing activities | December 31, | September 30, | ||||||||
2014 | 2014 | |||||||||
Oil sales after royalties | $ | 137,420 | $ | 47,116 | ||||||
Production (Operating) expenses | (137,420 | ) | (47,115 | ) | ||||||
Exploration expenses | (995 | ) | (47,182 | ) | ||||||
Depreciation, accretion and depletion | (20,711 | ) | (97,646 | ) | ||||||
(21,706 | ) | (144,827 | ) | |||||||
Income tax expenses | – | – | ||||||||
Results of operations from producing activities | $ | (21,706 | ) | $ | (144,827 | ) | ||||
Nature_of_Business_and_Basis_o1
Nature of Business and Basis of Presentation (Details) (USD $) | Dec. 31, 2014 | Sep. 30, 2014 |
Nature of Business and Basis of Presentation (Textual) | ||
Common stock, par value | $0.00 | $0.00 |
Summary_of_Significant_Account3
Summary of Significant Accounting Policies (Details) | Dec. 31, 2014 |
Software [Member] | |
Summary of the depreciation rates used in computing depreciation expense | |
Depreciation percentage in depreciation expense | 100.00% |
Computer equipment [Member] | |
Summary of the depreciation rates used in computing depreciation expense | |
Depreciation percentage in depreciation expense | 55.00% |
Portable work camp [Member] | |
Summary of the depreciation rates used in computing depreciation expense | |
Depreciation percentage in depreciation expense | 30.00% |
Vehicles [Member] | |
Summary of the depreciation rates used in computing depreciation expense | |
Depreciation percentage in depreciation expense | 30.00% |
Road Mats [Member] | |
Summary of the depreciation rates used in computing depreciation expense | |
Depreciation percentage in depreciation expense | 30.00% |
Wellhead [Member] | |
Summary of the depreciation rates used in computing depreciation expense | |
Depreciation percentage in depreciation expense | 25.00% |
Office furniture and equipment [Member] | |
Summary of the depreciation rates used in computing depreciation expense | |
Depreciation percentage in depreciation expense | 20.00% |
Oilfield Equipment [Member] | |
Summary of the depreciation rates used in computing depreciation expense | |
Depreciation percentage in depreciation expense | 20.00% |
Tanks [Member] | |
Summary of the depreciation rates used in computing depreciation expense | |
Depreciation percentage in depreciation expense | 10.00% |
Summary_of_Significant_Account4
Summary of Significant Accounting Policies (Details Textual) (USD $) | 3 Months Ended | ||
Dec. 31, 2014 | Sep. 30, 2014 | Sep. 30, 2013 | |
Summary of significant accounting policies(Textual) | |||
Leasehold improvements amortization period | 5 years | ||
Asset retirement obligations | $454,223 | $469,013 | $446,155 |
Allowance for bad debts | |||
Antidilutive securities excluded from computation of earnings per share | 23,543,809 | ||
Capitalized equipment and facility costs | $19,600,000 | $19,600,000 |
Oil_and_Gas_Properties_Details
Oil and Gas Properties (Details) (CAD) | Dec. 31, 2014 |
Summary of commitments related to rent payments of oil sands properties | |
2015 | 36,221 |
2016 | 48,294 |
2017 | 48,294 |
2018 | 48,294 |
2019 | 29,478 |
Subsequent | 22,400 |
Oil_and_Gas_Properties_Details1
Oil and Gas Properties (Details Textual) | 3 Months Ended | 3 Months Ended | 0 Months Ended | 1 Months Ended | 3 Months Ended | 0 Months Ended | 3 Months Ended | 1 Months Ended | 3 Months Ended | ||||||||||||||
Dec. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Sep. 25, 2014 | Jul. 31, 2013 | Jul. 30, 2013 | Sep. 25, 2014 | Sep. 25, 2014 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2014 | Jul. 31, 2013 | Jun. 27, 2014 | Jul. 31, 2013 | Dec. 31, 2014 | Nov. 17, 2014 | Oct. 09, 2013 | Dec. 31, 2014 | Jun. 27, 2014 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2014 | |
USD ($) | USD ($) | USD ($) | Minimum [Member] | Maximum [Member] | Land One [Member] | Land Two [Member] | Land Three [Member] | Farmout Agreement [Member] | Farmout Agreement [Member] | Farmout Agreement [Member] | Farmout Agreement [Member] | Farmout Agreement [Member] | Water Rights Conveyance Agreement [Member] | SAGD Project - Phase 1 [Member] | SAGD Project - Phase 2 [Member] | Northern Alberta Oil Ltd [Member] | JV Partner [Member] | JV Partner [Member] | Mr. Malik Youyou [Member] | ||||
Wells | Wells | acre | acre | oil | oil | oil | CAD | CAD | USD ($) | CAD | USD ($) | CAD | CAD | CAD | Wells | USD ($) | CAD | USD ($) | |||||
oil | Wells | ||||||||||||||||||||||
acre | |||||||||||||||||||||||
Oil and Gas Properties (Textual) | |||||||||||||||||||||||
Description for term of capital lease | If the Company meets the conditions of the leases the Company will then be permitted to drill on and produce oil from the land into perpetuity. These conditions give the Company until the expiration of the leases to meet the following requirements on its primary oil sands leases: 1. drill 68 wells throughout the 68 sections; or 2. drill 44 wells within the 68 sections and having acquired and processed 2 miles of seismic on each other undrilled section. | ||||||||||||||||||||||
Number of wells company has interest in | 10 | 10 | 2 | 2 | |||||||||||||||||||
Number of other wells drilled by others | 2 | ||||||||||||||||||||||
Investment in oil and gas properties | $21,808 | $25,355 | 384,046 | ||||||||||||||||||||
Description for acquisition of oil and gas projects | 25 miles of seismic. | In addition, until December 31, 2015, as amended on November 17, 2014, the Farmee has the option to elect to obtain a working interest of 45% to 50% working interest in the remaining 56 sections of land where the Company has working interests ranging from 90% to 100%, by committing an additional $110,000,000 of financing to the development of the Company's Sawn Lake oil sands properties. | Water Rights Conveyance Agreement whereby the Company acquired a 25% working interest in one water source well and one water disposal well for a cost of Cdn $384,046 | ||||||||||||||||||||
Percentage of working interest | 20.00% | 25.00% | 25.00% | 50.00% | 25.00% | ||||||||||||||||||
Funding for project under agreement | 40,000,000 | 110,000,000 | |||||||||||||||||||||
Monthly maximum payable by Farmee for operating expense | 30,000 | ||||||||||||||||||||||
Percentage of ownership interest | 100.00% | ||||||||||||||||||||||
Expenditures for oil and gas project | 1,058,568 | ||||||||||||||||||||||
Gas and oil area, Undeveloped, Gross | 43,015 | ||||||||||||||||||||||
Gas and oil area, Undeveloped, Net | 34,096 | 33,463 | 34,096 | ||||||||||||||||||||
Lease agreements, expiration date | 10-Jul-18 | 19-Aug-19 | 9-Apr-24 | ||||||||||||||||||||
Number of oil and gas for leases | 9 | 5 | 3 | 1 | |||||||||||||||||||
Initial costs paid for the Phase 1 SAGD Project | 19,355,129 | 36,900,000 | |||||||||||||||||||||
Project cash call | 1,058,568 | 300,000 | |||||||||||||||||||||
Acquisition of purported gross overriding royalty from non-related party | 2,435,124 | 2,697,600 | |||||||||||||||||||||
Acquisition of purported gross overriding royalty from related party | 1,007,000 | ||||||||||||||||||||||
Purported gross overriding royalty percentage | 6.50% | 6.50% | 6.50% | 6.50% | |||||||||||||||||||
Percentage of acquisition of gross overriding royalty acquired and cancelled | 5.50% | 3.00% | 3.00% | 2.50% | |||||||||||||||||||
Project cash call reimbusement | 300,000 | ||||||||||||||||||||||
Oil and gas property impairment |
Capitalization_of_Costs_Incurr2
Capitalization of Costs Incurred in Oil and Gas Activities (Details) (USD $) | Dec. 31, 2014 | Sep. 30, 2014 |
Summary of capitalized costs relating to oil and gas producing activities | ||
Unproved Oil and Gas Properties | $19,668,577 | $19,651,296 |
Proved Oil and Gas Properties | 4,568 | 4,568 |
Accumulated Depreciation and Depletion | -54,950 | -51,814 |
Net Capitalized Cost | $19,618,195 | $19,604,050 |
Exploration_Activities_Details
Exploration Activities (Details) (USD $) | 3 Months Ended | 12 Months Ended |
Dec. 31, 2014 | Sep. 30, 2014 | |
Acquisition of Properties: | ||
Proved | ||
Unproved | 17,281 | 3,692,346 |
Exploration costs | 995 | 47,182 |
Development costs |
Investment_in_Equity_Securitie1
Investment in Equity Securities (Details) | 1 Months Ended | |
Nov. 19, 2008 | Dec. 31, 2013 | |
Investment in Equity Securities (Textual) | ||
Conversion of Signet shares into shares of Andora Energy Corporation | 2,241,558 | |
Percentage of equity interest in Andora | 2.24% |
Property_and_Equipment_Details
Property and Equipment (Details) (USD $) | Dec. 31, 2014 | Sep. 30, 2014 |
Summary of Property and Equipment | ||
Cost | $998,745 | $998,745 |
Accumulated Depreciation | 753,304 | 739,547 |
Net Book Value | 245,442 | 259,198 |
Computer equipment [Member] | ||
Summary of Property and Equipment | ||
Cost | 32,197 | 32,198 |
Accumulated Depreciation | 31,392 | 31,264 |
Net Book Value | 805 | 934 |
Office furniture and equipment [Member] | ||
Summary of Property and Equipment | ||
Cost | 34,130 | 34,130 |
Accumulated Depreciation | 27,242 | 26,880 |
Net Book Value | 6,888 | 7,250 |
Software [Member] | ||
Summary of Property and Equipment | ||
Cost | 5,826 | 5,826 |
Accumulated Depreciation | 5,826 | 5,826 |
Net Book Value | ||
Leasehold Improvements [Member] | ||
Summary of Property and Equipment | ||
Cost | 4,936 | 4,936 |
Accumulated Depreciation | 4,936 | 4,936 |
Net Book Value | ||
Portable work camp [Member] | ||
Summary of Property and Equipment | ||
Cost | 170,580 | 170,580 |
Accumulated Depreciation | 148,039 | 146,211 |
Net Book Value | 22,541 | 24,369 |
Vehicles [Member] | ||
Summary of Property and Equipment | ||
Cost | 38,077 | 38,077 |
Accumulated Depreciation | 33,045 | 32,637 |
Net Book Value | 5,032 | 5,440 |
Oilfield equipment [Member] | ||
Summary of Property and Equipment | ||
Cost | 249,046 | 249,045 |
Accumulated Depreciation | 140,731 | 135,030 |
Net Book Value | 108,315 | 114,015 |
Road mats [Member] | ||
Summary of Property and Equipment | ||
Cost | 364,614 | 364,614 |
Accumulated Depreciation | 316,432 | 312,525 |
Net Book Value | 48,182 | 52,089 |
Wellhead [Member] | ||
Summary of Property and Equipment | ||
Cost | 3,254 | 3,254 |
Accumulated Depreciation | 2,128 | 2,053 |
Net Book Value | 1,126 | 1,201 |
Tanks [Member] | ||
Summary of Property and Equipment | ||
Cost | 96,085 | 96,085 |
Accumulated Depreciation | 43,532 | 42,185 |
Net Book Value | $52,553 | $53,900 |
Property_and_Equipment_Details1
Property and Equipment (Details Textual) (USD $) | 3 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Property and Equipment (Textual) | ||
Depreciation expense | $13,757 | $18,176 |
Long_Term_Investments_Details
Long Term Investments (Details) | 3 Months Ended |
Dec. 31, 2014 | |
Long Term Investments (Textual) | |
Interest rate below prime rate | 0.38% |
Significant_Transactions_With_1
Significant Transactions With Related Parties (Details) (USD $) | 3 Months Ended | 12 Months Ended |
Dec. 31, 2014 | Sep. 30, 2014 | |
Significant Transactions With Related parties (Textual) | ||
Accounts payable and accrued liabilities - related parties | $2,090 | $16,977 |
Percentage of outstanding common capital stock | 53.41% | |
Professional fees and consulting services | $39,618 | $198,703 |
Asset_Retirement_Obligations_D
Asset Retirement Obligations (Details) (USD $) | 3 Months Ended | 12 Months Ended |
Dec. 31, 2014 | Sep. 30, 2014 | |
Asset Retirement Obligations [Abstract] | ||
Balance, beginning of year | $469,013 | $446,155 |
Liabilities incurred | 73,395 | |
Effect of foreign exchange | -19,098 | -64,079 |
Disposal | -4,045 | |
Accretion expense | 4,308 | 17,587 |
Balance, end of year | $454,223 | $469,013 |
Asset_Retirement_Obligations_D1
Asset Retirement Obligations (Details Textual) (USD $) | 3 Months Ended | |
Dec. 31, 2014 | Sep. 30, 2014 | |
Asset Retirement Obligations (Textual) | ||
Estimate of undiscounted cash flows related to asset retirement obligation | $661,520 | $689,445 |
Fair value of liability | $454,223 | $469,013 |
Risk free rate | 3.74% | |
Inflation rate | 2.00% | |
Term of settlement of the obligation | 35 years |
Common_Stock_Details
Common Stock (Details) (Warrant [Member], USD $) | 3 Months Ended | |
Dec. 31, 2014 | Sep. 30, 2014 | |
Summary of Warrants | ||
Shares Underlying Warrants Outstanding | 72,377,141 | 72,424,759 |
Shares Underlying Warrants Outstanding Weighted Average Remaining Contractual Life | 10 months 24 days | |
Shares Underlying Warrants Outstanding Weighted Average Exercise Price | $0.11 | |
Shares Underlying Warrants Exercisable | 72,377,141 | |
Shares Underlying Warrants Exercisable Weighted Average Exercise Price | $0.11 | $0.11 |
$0.105 at December 31, 2014 [Member] | ||
Summary of Warrants | ||
Shares Underlying Warrants Outstanding | 71,857,141 | |
Shares Underlying Warrants Outstanding Weighted Average Remaining Contractual Life | 10 months 24 days | |
Shares Underlying Warrants Outstanding Weighted Average Exercise Price | $0.11 | |
Shares Underlying Warrants Exercisable | 71,857,141 | |
Shares Underlying Warrants Exercisable Weighted Average Exercise Price | $0.11 | |
$0.075 at December 31, 2014 [Member] | ||
Summary of Warrants | ||
Shares Underlying Warrants Outstanding | 520,000 | |
Shares Underlying Warrants Outstanding Weighted Average Remaining Contractual Life | 1 year 5 months 19 days | |
Shares Underlying Warrants Outstanding Weighted Average Exercise Price | $0.08 | |
Shares Underlying Warrants Exercisable | 520,000 | |
Shares Underlying Warrants Exercisable Weighted Average Exercise Price | $0.08 |
Common_Stock_Details_1
Common Stock (Details 1) (Warrant [Member], USD $) | 3 Months Ended |
Dec. 31, 2014 | |
Warrant [Member] | |
Summary of warrant activity | |
Number of underlying shares, Beginning Balance | 72,424,759 |
Number of Warrants, Warrants Cancelled | |
Number of Warrants, Warrants granted | |
Number of Warrants, Warrants Exercised | 47,618 |
Number of underlying shares, Ending Balance | 72,377,141 |
Outstanding Warrants, Number of Warrants | 72,377,141 |
Weighted Average Exercise Price, Beginning balance | $0.11 |
Weighted Average Exercise Price, Warrants cancelled | |
Weighted Average Exercise Price, Warrants granted | |
Weighted Average Exercise Price, Warrants exercised | $0.11 |
Weighted Average Exercise Price, Ending balance | $0.11 |
Outstanding Warrants, Weighted Average Exercise Price | $0.11 |
Intrinsic Value, Beginning balance | $0.22 |
Intrinsic Value, Warrants cancelled | |
Intrinsic Value, Warrants granted | |
Intrinsic Value, Warrants exercised | $0.05 |
Intrinsic Value, Balance, Ending balance | $0.05 |
Outstanding Warrants, Intrinsic Value | $0.05 |
Common_Stock_Details_Textual
Common Stock (Details Textual) (USD $) | 3 Months Ended | 0 Months Ended | 1 Months Ended | ||||||
Dec. 31, 2014 | Oct. 03, 2014 | Oct. 10, 2013 | Jun. 23, 2014 | Aug. 15, 2013 | Jul. 31, 2013 | Jun. 20, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | |
Common Stock (Textual) | |||||||||
Expected volatility, Minimum | 96.00% | ||||||||
Expected volatility, Maximum | 116.00% | ||||||||
Expected term | 5 years | ||||||||
Risk-free Interest rate, Minimum | 0.62% | ||||||||
Risk-free Interest rate, Maximum | 1.31% | ||||||||
Return of capital distribution per share | $0.07 | ||||||||
Record date | 16-Aug-13 | ||||||||
Warrant [Member] | |||||||||
Common Stock (Textual) | |||||||||
Exercise price of warrant | $0.11 | ||||||||
Warrants expiration date | 23-Nov-15 | ||||||||
Number of warrant grants during period | 29,047,617 | ||||||||
Warrants cancelled and transferred to non-related party | |||||||||
Warrant Outstanding | 72,377,141 | 72,424,759 | |||||||
Historical fair market value of warrant | $1,738,336 | $1,743,336 | $1,743,336 | ||||||
Stock issued during period to warrant holder shares | 47,618 | ||||||||
Stock issued during period to warrant holder value | 5,000 | ||||||||
Warrant [Member] | Non Related Party [Member] | |||||||||
Common Stock (Textual) | |||||||||
Warrants cancelled and transferred to non-related party | 47,618 | ||||||||
Six Directors and Two Consultants [Member] | |||||||||
Common Stock (Textual) | |||||||||
Number of option and warrants, Exercised | 3,768,096 | ||||||||
Proceeds from stock options and warrants exercised | 372,000 | ||||||||
Six Directors and Two Consultants [Member] | Maximum [Member] | |||||||||
Common Stock (Textual) | |||||||||
Exercise price of warrant | $0.14 | ||||||||
Six Directors and Two Consultants [Member] | Minimum [Member] | |||||||||
Common Stock (Textual) | |||||||||
Exercise price of warrant | $0.05 | ||||||||
Private Placement [Member] | |||||||||
Common Stock (Textual) | |||||||||
Issuance of common stock (in shares) | 45,111,778 | 850,000 | |||||||
Issuance of common stock, per unit | $0.05 | ||||||||
Issuance of common stock (value) | 22,000,000 | 42,500 | |||||||
Description of warrant | Each warrant entitles the holder to purchase one additional common share at a price of $0.075 per common share for a period of three years from the date of closing, provided that if the closing price of the common shares of the Company on the principal market on which the shares trade is equal to or exceeds $1.00 for 30 consecutive trading days, the warrant term shall automatically accelerate to the date which is 30 calendar days following the date that written notice has been given to the warrant holders. | ||||||||
Number of common stock and common stock purchase warrant consists by each unit | 1 | ||||||||
Exercise price of warrant | $0.08 | ||||||||
Warrants exercise term | 3 years | ||||||||
Share price | $1 | ||||||||
Number of consecutive trading days | 30 days | ||||||||
Warrants expiration date | 20-Jun-16 | ||||||||
Total value of common shares | 27,448 | ||||||||
Total value of warrants | $15,052 |
Stock_Options_Details
Stock Options (Details) (USD $) | 3 Months Ended |
Dec. 31, 2014 | |
Summary of stock options | |
Shares Underlying Options Outstanding | 12,430,000 |
Shares Underlying Options Outstanding, Weighted Average Remaining Contractual Life | 4 years 29 days |
Shares Underlying Options Outstanding, Weighted Average Exercise Price | $0.26 |
Shares Underlying Options Exercisable | 6,810,000 |
Shares Underlying Options Exercisable, Weighted Average Exercise Price | $0.22 |
$0.14 at December 31, 2014 [Member] | Employee Stock Option [Member] | |
Summary of stock options | |
Shares Underlying Options Outstanding | 900,000 |
Shares Underlying Options Outstanding, Weighted Average Remaining Contractual Life | 1 year 2 months 23 days |
Shares Underlying Options Outstanding, Weighted Average Exercise Price | $0.14 |
Shares Underlying Options Exercisable | 900,000 |
Shares Underlying Options Exercisable, Weighted Average Exercise Price | $0.14 |
$0.05 at December 31, 2014 [Member] | Employee Stock Option [Member] | |
Summary of stock options | |
Shares Underlying Options Outstanding | 3,450,000 |
Shares Underlying Options Outstanding, Weighted Average Remaining Contractual Life | 3 years 5 months 19 days |
Shares Underlying Options Outstanding, Weighted Average Exercise Price | $0.05 |
Shares Underlying Options Exercisable | 2,500,000 |
Shares Underlying Options Exercisable, Weighted Average Exercise Price | $0.05 |
$0.30 at December 31, 2014 [Member] | Employee Stock Option [Member] | |
Summary of stock options | |
Shares Underlying Options Outstanding | 250,000 |
Shares Underlying Options Outstanding, Weighted Average Remaining Contractual Life | 3 years 9 months 29 days |
Shares Underlying Options Outstanding, Weighted Average Exercise Price | $0.30 |
Shares Underlying Options Exercisable | 250,000 |
Shares Underlying Options Exercisable, Weighted Average Exercise Price | $0.30 |
$0.34 at December 31, 2014 [Member] | Employee Stock Option [Member] | |
Summary of stock options | |
Shares Underlying Options Outstanding | 450,000 |
Shares Underlying Options Outstanding, Weighted Average Remaining Contractual Life | 3 years 11 months 5 days |
Shares Underlying Options Outstanding, Weighted Average Exercise Price | $0.34 |
Shares Underlying Options Exercisable | 300,000 |
Shares Underlying Options Exercisable, Weighted Average Exercise Price | $0.34 |
$0.38 at December 31, 2014 [Member] | Employee Stock Option [Member] | |
Summary of stock options | |
Shares Underlying Options Outstanding | 6,780,000 |
Shares Underlying Options Outstanding, Weighted Average Remaining Contractual Life | 4 years 8 months 19 days |
Shares Underlying Options Outstanding, Weighted Average Exercise Price | $0.38 |
Shares Underlying Options Exercisable | 2,660,000 |
Shares Underlying Options Exercisable, Weighted Average Exercise Price | $0.38 |
$0.23 at December 31, 2014 (Member) | Employee Stock Option [Member] | |
Summary of stock options | |
Shares Underlying Options Outstanding | 600,000 |
Shares Underlying Options Outstanding, Weighted Average Remaining Contractual Life | 4 years 10 months 21 days |
Shares Underlying Options Outstanding, Weighted Average Exercise Price | $0.23 |
Shares Underlying Options Exercisable | 200,000 |
Shares Underlying Options Exercisable, Weighted Average Exercise Price | $0.23 |
Stock_Options_Details_1
Stock Options (Details 1) (Stock Options [Member], USD $) | Dec. 31, 2014 | Sep. 30, 2014 | Sep. 30, 2013 |
Stock Options [Member] | |||
Summary of company's non-vested stock options | |||
Number of underlying shares, Beginning balance | 12,430,000 | 11,830,000 | 900,000 |
Number of underlying shares, Exercisable | 6,810,000 | 6,460,000 | |
Weighted Average Exercise Price, beginning balance | $0.26 | $0.26 | $0.14 |
Weighted Average Exercise Price Exercisable | $0.22 | $0.21 | |
Weighted Average Fair Market Value | $0.21 | $0.21 | |
Weighted Average Fair Market Value, Exercisable | $0.18 |
Stock_Options_Details_2
Stock Options (Details 2) (Employee Stock Option [Member], USD $) | 3 Months Ended | 12 Months Ended |
Dec. 31, 2014 | Sep. 30, 2014 | |
Employee Stock Option [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | ||
Number of underlying shares, Beginning balance | 11,830,000 | 900,000 |
Number of option, Granted | 3,450,000 | |
Number of option, Granted at October 28, 2013 | 250,000 | |
Number of option, Granted at December 4, 2013 | 450,000 | |
Number of option, Granted at September 19, 2014 | 6,780,000 | |
Number of option, Granted- November 17, 2014 | 600,000 | |
Number of option, Vested at November 17, 2014 | 200,000 | |
Number of option, Vested at December 4, 2014 | 150,000 | |
Number of underlying shares, Ending balance | 12,430,000 | 11,830,000 |
Number of underlying shares, exercisable | 6,810,000 | 6,460,000 |
Weighted Average Exercise Price, Beginning balance | $0.26 | $0.14 |
Weighted average exercise price, Granted | $0.05 | |
Weighted average exercise price, Granted at October 28, 2013 | $0.30 | |
Weighted average exercise price, Granted at December 4, 2013 | $0.34 | |
Weighted average exercise price, Granted at September 19, 2014 | $0.38 | |
Weighted average exercise price, Granted at November 17, 2014 | $0.38 | |
Weighted average exercise price, Vested at November 17, 2014 | $0.38 | |
Weighted average exercise price, Vested at December 4, 2014 | $0.34 | |
Weighted Average Exercise Price, Ending balance | $0.26 | $0.26 |
Weighted average exercise price, exercisable | $0.22 | $0.21 |
Stock_Options_Details_Textual
Stock Options (Details Textual) (USD $) | 3 Months Ended | 12 Months Ended | 1 Months Ended | 0 Months Ended | |||||||
Dec. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Sep. 19, 2014 | Jun. 20, 2013 | Nov. 17, 2014 | Dec. 04, 2013 | Mar. 23, 2011 | Oct. 28, 2013 | Aug. 15, 2013 | Nov. 28, 2005 | |
Consultants | Consultants | Directors | Directors | Directors | |||||||
Consultants | |||||||||||
Stock Options (Textual) | |||||||||||
Unrecognized compensation cost related to awards | $1,039,871 | ||||||||||
Share-based Compensation | 316,959 | 156,374 | 1,087,356 | ||||||||
Expected term | 5 years | ||||||||||
Expected volatility, Minimum | 96.00% | ||||||||||
Expected volatility, Maximum | 122.00% | ||||||||||
Risk-free Interest rate, Minimum | 0.62% | ||||||||||
Risk-free Interest rate, Maximum | 1.83% | ||||||||||
Portwest Investments Ltd [Member] | |||||||||||
Stock Options (Textual) | |||||||||||
Number of consultants | 2 | 2 | |||||||||
Description of stock options vesting | 600,000 vesting immediately and remaining vesting on September 19, 2015. | 500,000 vesting immediately and remaining vesting on June 20, 2014 | |||||||||
Number of warrants, Granted | 1,000,000 | ||||||||||
Number of option, Granted at September 19, 2014 | 1,200,000 | ||||||||||
Option exercise price | $0.38 | $0.05 | |||||||||
Number of shares vested immediately | 600,000 | 500,000 | |||||||||
Option vesting period | 5 years | 5 years | |||||||||
Directors [Member] | |||||||||||
Stock Options (Textual) | |||||||||||
Number of directors | 7 | 6 | 1 | 6 | |||||||
Description of stock options vesting | 200,000 vesting immediately and the remaining vesting one-third on September 19, 2015, and one-third on September 19, 2016, with a five-year life. | 150,000 vesting immediately and the remaining vesting one-third on June 20, 2014, and one-third on June 20, 2015, with a five-year life. | 200,000 vesting immediately and the remaining vesting one-third on November 17, 2015, and one-third on November 17, 2016, with a five-year life. | 150,000 vesting immediately and the remaining vesting one-third on December 4, 2014, and one-third on December 4, 2015, with a five-year life. | 150,000 vesting immediately and the remaining vesting one-third on March 23, 2012, and one-third on March 23, 2013, with a five-year life. | ||||||
Number of warrants, Granted | 450,000 | 600,000 | 450,000 | 450,000 | |||||||
Number of option, Granted at September 19, 2014 | 600,000 | ||||||||||
Option exercise price | $0.38 | $0.05 | $0.23 | $0.34 | $0.14 | ||||||
Number of shares vested immediately | 200,000 | 150,000 | 200,000 | 150,000 | 150,000 | ||||||
Option vesting period | 5 years | 5 years | 5 years | 5 years | 5 years | ||||||
Employee [Member] | |||||||||||
Stock Options (Textual) | |||||||||||
Number Of Employee | 1 | 1 | |||||||||
Description of stock options vesting | 60,000 vesting immediately and the remaining vesting one-third on September 19, 2015, and one-third on September 19, 2016, with a five-year life. | 50,000 vesting immediately and the remaining vesting one-third on June 20, 2014, and one-third on June 20, 2015, with a five-year life. | |||||||||
Number of warrants, Granted | 150,000 | ||||||||||
Number of option, Granted at September 19, 2014 | 180,000 | ||||||||||
Option exercise price | $0.38 | $0.05 | |||||||||
Number of shares vested immediately | 60,000 | 50,000 | |||||||||
Option vesting period | 5 years | 5 years | |||||||||
Contractor [Member] | |||||||||||
Stock Options (Textual) | |||||||||||
Number of warrants, Granted | 250,000 | ||||||||||
Option exercise price | $0.30 | ||||||||||
Option vesting period | 5 years | ||||||||||
Maximum | |||||||||||
Stock Options (Textual) | |||||||||||
Maximum percentage of number of shares which may be reserved for issuance | 10.00% | ||||||||||
Stock options and stock units issued vesting percentage | 2.00% | ||||||||||
Stock Options [Member] | |||||||||||
Stock Options (Textual) | |||||||||||
Number of directors | 6 | ||||||||||
Number of consultants | 1 | ||||||||||
Number of warrants, Granted | 3,450,000 | ||||||||||
Number of option, Granted at September 19, 2014 | 6,780,000 | ||||||||||
Stock options - Exercised August 12, 2013, shares | 3,200,000 | ||||||||||
Stock options - Exercised August 12, 2013 | 322,000 | ||||||||||
Stock option outstanding unvested | 5,620,000 | 5,370,000 | |||||||||
Aggregate intrinsic value of exercisable options | $0.11 |
Changes_in_NonCash_Working_Cap2
Changes in Non-Cash Working Capital (Details) (USD $) | 3 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Summary of changes in non-cash working capital | ||
Accounts receivable | $693,356 | ($6,906) |
Prepaid expenses | 1,855 | 2,596,914 |
Accounts payable | -363,263 | 133,024 |
Net changes in non-cash working capital (Note 13) | $331,948 | ($2,723,032) |
Commitments_Details
Commitments (Details) (CAD) | Dec. 31, 2014 |
Q2 (January - March) [Member] | |
Summary of annual payments under office lease agreement | |
2015 | 9,031 |
Q3 (April - June) [Member] | |
Summary of annual payments under office lease agreement | |
2015 | 9,031 |
Commitments_Details_Textual
Commitments (Details Textual) | 0 Months Ended | 12 Months Ended | 3 Months Ended | 1 Months Ended | 3 Months Ended | ||
Jan. 21, 2014 | Sep. 30, 2014 | Jun. 20, 2013 | Dec. 31, 2014 | Jun. 20, 2013 | Jun. 20, 2013 | Dec. 31, 2014 | |
Portwest Investments Ltd [Member] | Portwest Investments Ltd [Member] | Portwest Investments Ltd [Member] | Portwest Investments Ltd [Member] | Concorde Consulting [Member] | |||
USD ($) | Chief Executive Officer and President [Member] | Amending Agreement [Member] | Amending Agreement [Member] | Chief Financial Officer [Member] | |||
CAD | Chief Executive Officer and President [Member] | Chief Executive Officer and President [Member] | CAD | ||||
USD ($) | CAD | ||||||
Commitments (Textual) | |||||||
Percentage of ownership interest | 100.00% | 100.00% | |||||
Compensation to directors per month | 12,500 | 15,000 | |||||
Term of agreement | 31-Dec-14 | 31-Dec-14 | |||||
Office Lease Agreement | 30-Jun-15 | 30-Jun-15 | |||||
Option vesting period | 5 years | 5 years | |||||
Number of common shares called by options | 1,000,000 | 1,000,000 | |||||
Option exercise price | $0.05 | ||||||
Description of stock options vesting | One half of these shares were vested immediately and the remaining one half vested on June 20, 2014 | One half of these shares were vested immediately and the remaining one half vested on June 20, 2014 | |||||
Consideration paid for termination of parts of the Prior Agreement | 70,000 | ||||||
Units of shares and warrants issued for termination of original agreement | 850,000 | 850,000 | |||||
Shares and warrants issued, price per share | $0.05 | ||||||
Description of units issued | Each unit shall be comprised of one restricted Company common share and one 3 year full warrant entitling Portwest to be able to purchase another share for $0.075 | Each unit shall be comprised of one restricted Company common share and one 3 year full warrant entitling Portwest to be able to purchase another share for $0.075 | |||||
Warrants expiration date | 20-Jun-16 | 20-Jun-16 | |||||
Value of settlement of accrued payables to related party | $239,528 |
Legal_Actions_Details
Legal Actions (Details) (I.G.M. Resources Corp [Member], CAD) | 0 Months Ended |
Mar. 10, 2005 | |
I.G.M. Resources Corp [Member] | |
Legal Action (Textual) | |
Compensation amount dismissed by court | 15,000,000 |
Crude_Oil_and_Natural_Gas_Prop2
Crude Oil and Natural Gas Property Information (Details) (CANADA [Member], USD $) | 3 Months Ended | 12 Months Ended |
Dec. 31, 2014 | Sep. 30, 2014 | |
CANADA [Member] | ||
Results of Operations for Oil and Gas Producing Activities, by Geographic Area [Line Items] | ||
Oil sales after royalties | $137,420 | $47,116 |
Production (Operating) expenses | -137,420 | -47,115 |
Exploration expenses | -995 | -47,182 |
Depreciation, accretion and depletion | -20,711 | -97,646 |
Total Revenue | -21,706 | -144,827 |
Income tax expenses | ||
Results of operations from producing activities | ($21,706) | ($144,827) |
Crude_Oil_and_Natural_Gas_Prop3
Crude Oil and Natural Gas Property Information (Details Textual) | Dec. 31, 2014 | Sep. 30, 2014 | Dec. 31, 2014 | Dec. 31, 2014 |
USD ($) | USD ($) | Farmout Agreement [Member] | Crude Oil and NGL [Member] | |
CAD | USD ($) | |||
Average Sales Price and Production Costs Per Unit of Production [Line Items] | ||||
Oil revenue after royalties | $137,420 | |||
Production volumes of oil and gas | 3,614 barrels | |||
Average oil sales price | 35.84 | |||
Average oil sales price description | Average oil sales price of $35.84 per barrel (Cdn$41.68 per barrel). | |||
Production (Operating) expenses | ||||
Net capitalized costs of Sawn Lake operations | 19,618,195 | 19,604,050 | ||
Costs paid by Farmee | 19,355,129 |