Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Mar. 31, 2016 | Feb. 23, 2018 | |
Document and Entity Information [Abstract] | ||
Entity Registrant Name | DEEP WELL OIL & GAS INC | |
Entity Central Index Key | 869,495 | |
Trading Symbol | DWOG | |
Amendment Flag | false | |
Current Fiscal Year End Date | --09-30 | |
Document Type | 10-Q | |
Document Period End Date | Mar. 31, 2016 | |
Document Fiscal Year Focus | 2,016 | |
Document Fiscal Period Focus | Q2 | |
Entity Filer Category | Smaller Reporting Company | |
Entity Common Stock Shares Outstanding | 229,374,605 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) | Mar. 31, 2016 | Sep. 30, 2015 |
Current Assets | ||
Cash and cash equivalents | $ 965,387 | $ 1,786,270 |
Accounts receivable | 530,372 | 301,832 |
Prepaid assets | 453,180 | |
Prepaid expenses | 47,470 | 37,698 |
Total Current Assets | 1,996,409 | 2,125,800 |
Long term investments | 387,118 | 372,971 |
Oil and gas properties, net, based on full cost method of accounting | 21,058,592 | 20,981,652 |
Property and equipment, net | 183,049 | 203,970 |
TOTAL ASSETS | 23,625,168 | 23,684,393 |
Current Liabilities | ||
Accounts payable and accrued liabilities | 382,567 | 272,091 |
Accounts payable and accrued liabilities - related parties | 3,050 | 4,833 |
Total Current Liabilities | 385,617 | 276,924 |
Asset retirement obligations (Note 7) | 449,388 | 426,607 |
TOTAL LIABILITIES | 835,005 | 703,531 |
(Commitments and contingencies (Note 11) | ||
SHAREHOLDERS' EQUITY | ||
Common Stock: (Note 8) Authorized: 600,000,000 shares at $0.001 par value Issued and outstanding: 229,374,605 shares (September 30, 2015 - 229,374,605 shares) | 229,374 | 229,374 |
Additional paid in capital | 42,732,286 | 42,605,007 |
Accumulated deficit | (20,171,497) | (19,853,519) |
Total Shareholders' Equity | 22,790,163 | 22,980,862 |
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | $ 23,625,168 | $ 23,684,393 |
Condensed Consolidated Balance3
Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares | Mar. 31, 2016 | Sep. 30, 2015 |
Balance Sheets [Abstract] | ||
Common stock, shares authorized | 600,000,000 | 600,000,000 |
Common stock, par value | $ 0.001 | $ 0.001 |
Common stock, shares issued | 229,374,605 | 229,374,605 |
Common stock, shares outstanding | 229,374,605 | 229,374,605 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations and Comprehensive Loss (Unaudited) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | Mar. 31, 2016 | Mar. 31, 2015 | |
Statements of Operations and Comprehensive Income (Loss) [Abstract] | ||||
Revenue | $ 27,190 | $ 83,401 | $ 148,181 | $ 229,801 |
Royalty expenses | 330 | (3,405) | (22,598) | (12,385) |
Revenue, net of royalty | 27,520 | 79,996 | 125,583 | 217,416 |
Expenses | ||||
Operating expenses | 294,610 | 348,009 | 602,649 | 1,114,522 |
Operating expenses covered by Farmout | (267,090) | (268,013) | (477,066) | (897,106) |
General and administrative | 93,920 | 528,319 | 293,464 | 1,097,187 |
Depreciation, accretion and depletion | 17,206 | 21,618 | 34,527 | 42,820 |
Net loss from operations | (111,126) | (549,937) | (327,991) | (1,140,007) |
Other income and expenses | ||||
Rental and other income | 3,168 | 3,421 | 8,283 | 7,203 |
Interest income | 833 | 1,150 | 1,730 | 2,697 |
Net loss and comprehensive loss | $ (107,125) | $ (545,366) | $ (317,978) | $ (1,130,107) |
Net loss per common share | ||||
Basic and Diluted | $ 0 | $ 0 | $ 0 | $ (0.01) |
Weighted Average Outstanding Shares (in thousands) | ||||
Basic and Diluted | 229,374 | 229,374 | 229,374 | 229,374 |
Condensed Consolidated Stateme5
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) | 6 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Operating Activities | ||
Net loss | $ (317,978) | $ (1,130,107) |
Items not affecting cash: | ||
Share based compensation | 127,279 | 590,036 |
Depreciation, accretion and depletion | 34,527 | 42,820 |
Net changes in non-cash working capital (Note 10) | (582,799) | 301,838 |
Net Cash Used in Operating Activities | (738,971) | (195,413) |
Investing Activities | ||
Investment in oil and gas properties | (83,322) | (29,088) |
Long term investments | 1,410 | 1,802 |
Net Cash Used in Investing Activities | (81,912) | (27,286) |
Financing Activities | ||
Proceeds from issuance of common stock | 5,002 | |
Net Cash Provided by Financing Activities | 5,002 | |
Decrease in cash and cash equivalents | (820,883) | (217,697) |
Cash and cash equivalents, beginning of period | 1,786,270 | 2,324,755 |
Cash and cash equivalents, end of period | 965,387 | 2,107,058 |
Supplemental Cash Flow Information: | ||
Cash paid for interest | ||
Cash paid for income taxes |
Nature of Business and Basis of
Nature of Business and Basis of Presentation | 6 Months Ended |
Mar. 31, 2016 | |
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 condensed 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, 2015. 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, 2015. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 6 Months Ended |
Mar. 31, 2016 | |
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. Change in Accounting Principle During the fourth fiscal quarter of 2015, the Company voluntarily changed its method of accounting for its oil and gas properties from the successful efforts method to the full cost method. Accordingly, financial information for prior periods have been recast to reflect retrospective application of the full cost method. The Company believes that the full cost method is preferable as it reflects the results of the Company’s operations and the economics of exploring for and developing its non-traditional long life oil sands assets in the Peace River oil sands area in Alberta, Canada. The Company’s condensed consolidated financial statements have been recast to reflect these differences. There was no effect on the prior period financial statements as a result of the change in accounting policy. Prepaid Assets $453,180 was held in trust for a potential acquisition which was not concluded by the Company and was subsequently returned to the Company in May of 2016. Crude oil and natural gas properties The Company follows the full cost method of accounting for oil sands properties pursuant to SEC Regulation S-X Rule 4-10. The full cost method of accounting for oil and gas operations requires that all costs associated with the exploration for and development of oil and gas reserves be capitalized on a country by country basis. Such costs include lease acquisition costs, geological and geophysical expenses, carrying charges on non-producing properties, costs of drilling both productive and non-productive wells, production equipment and overhead charges directly related to acquisition, exploration and development activities. Under the full cost method, oil and gas properties are subject to the ceiling test performed quarterly. A ceiling test write-down is recognized in net earnings if the carrying amount of a cost centre exceeds the “cost centre ceiling”. The carrying amount of the cost centre includes the capitalized costs of proved oil and natural gas properties, net of accumulated depletion and deferred income taxes. The cost centre ceiling is the sum of (A) present value of the estimated future net cash flows from proved oil and natural gas reserves using a 10 percent per year discount factor, (B) the costs of unproved properties not being amortized, and (C) the lower of cost or fair value of unproved properties included in the costs being amortized; less (D) related income tax effects. As of March 31, 2016, no ceiling test write-downs were recorded for the Company’s oil and gas properties. Costs associated with unproved properties are excluded from the depletion calculation until it is determined that proved reserves are attributable or impairment has occurred. Unproved properties are assessed annually for impairment. Costs that have been impaired are included in the costs subject to depletion within the full cost pool. 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 of March 31, 2016 and September 30, 2015, asset retirement obligations amount to $449,388 and $426,607, 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. Financial, Concentration and Credit Risk The Company’s consideration or related financial credit risk related to cash and cash equivalents depends on if funds are fully insured by either The Canada Deposit Insurance Corporation (“CDIC”), or The Credit Union Deposit Guarantee Corporation (“CUDGC”) deposit insurance limit. As of March 31, 2016, the Company has approximately $224,621 funds that are in excess of deposit insurance limits, which may have financial credit risk. For the Company funds that are maintained in a financial institution which has its deposits fully guaranteed by CUDGC, there is no financial credit risk. The Company is not directly subject to credit risk resulting from the concentration of its crude oil sales. For the period ending March 31, 2016 and for the year ended September 30, 2015, 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 all of the Company’s oil production to 11 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. 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 64,205,221 potentially dilutive securities excluded from the the diluted earnings per share calculation because their effect would be antidilutive. Recently Adopted Accounting Standards In August 2015, the FASB issued ASU 2015-14, “Revenue from Contracts with Customers (Topic 606) — Deferral of the Effective Date.” ASU 2015-14 defers the effective date of ASU 2014-09 by one year to annual reporting periods beginning after December 15, 2017 with early adoption permitted for periods beginning after December 15, 2016. The adoption of this standard is not expected to have a material impact on the Company’s consolidated financial statements. In February 2016, the FASB issued ASU 2016-02, “Leases (Topic 842),” requiring lessees to recognize lease assets and lease liabilities for most leases classified as operating leases under previous U.S. GAAP. The guidance is effective for fiscal years beginning after December 15, 2018, with early adoption permitted. The Company will be required to use a modified retrospective approach for leases that exist or are entered into after the beginning of the earliest comparative period in the financial statements. The adoption of this standard is not expected to have a material impact on the Company’s consolidated financial statements. The Company does not expect the adoption of any other recent accounting pronouncements to have a material impact on the Company’s financial statements. |
Oil and Gas Properties
Oil and Gas Properties | 6 Months Ended |
Mar. 31, 2016 | |
Oil and Gas Properties [Abstract] | |
OIL AND GAS PROPERTIES | 3. OIL AND GAS PROPERTIES The Company’s oil sands acreage as of March 31, 2016, 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. Of the 5 oil sands leases totaling 32 sections of land, it is the Company’s opinion that the Company has already met the governmental requirements on 17 of the 32 sections to continue these sections into perpetuity. These 17 sections contain the majority of the resources identified to date on these 5 oil sands leases. The Company has completed or is in the process of applying for continuation of these leases or parts of the leases where the majority of the oil sands resources have been confirmed; 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 all 5 sections of this lease into perpetuity. 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 March 31, 2016, the Company’s net payments due under this commitment are as follows: (USD $) (Cdn $) 2016 $ 18,617 $ 24,147 2017 $ 37,235 $ 48,294 2018 $ 37,235 $ 48,294 2019 $ 22,728 $ 29,478 2020 $ 3,454 $ 4,480 Subsequent $ 13,816 $ 17,920 The Company follows the full cost method of accounting for costs of oil properties. Under this method, oil and gas properties, for which no proved reserves have been assigned, must be assessed at least annually to ascertain whether or not a write down should occur. Unproven properties are assessed annually, or more frequently as economic events indicate, for potential write down. 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 any write down on a field-by-field basis. No write downs were recognized for the period ended March 31, 2016. 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. |
Capitalization of Costs Incurre
Capitalization of Costs Incurred in Oil and Gas Activities | 6 Months Ended |
Mar. 31, 2016 | |
Capitalization of Costs Incurred in Oil and Gas Activities [Abstract] | |
CAPITALIZATION OF COSTS INCURRED IN OIL AND GAS ACTIVITIES | 4. CAPITALIZATION OF COSTS INCURRED IN OIL AND GAS ACTIVITIES The following table illustrates capitalized costs relating to oil producing activities for the six months ended March 31, 2016 and the fiscal year ended September 30, 2015: March 31, September 30, 2015 Unproved Oil and Gas Properties $ 21,126,658 $ 21,044,015 Proved Oil and Gas Properties – – Accumulated Depreciation and Depletion (68,066 ) (62,363 ) Net Capitalized Cost $ 21,058,592 $ 20,981,652 Depreciation and depletion expense for the six months ended March 31, 2016 and 2015 were $5,703 and $6,878 respectively. |
Exploration Activities
Exploration Activities | 6 Months Ended |
Mar. 31, 2016 | |
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 six months ended March 31, 2016 and the fiscal year ended September 30, 2015: March 31, September 30, 2015 Acquisition of Properties: Proved $ – $ – Unproved $ 82,643 $ 135,575 Exploration costs $ 6,154 $ 46,351 Development costs $ – $ – |
Significant Transactions with R
Significant Transactions with Related Parties | 6 Months Ended |
Mar. 31, 2016 | |
Significant Transactions with Related Parties [Abstract] | |
SIGNIFICANT TRANSACTIONS WITH RELATED PARTIES | 6. SIGNIFICANT TRANSACTIONS WITH RELATED PARTIES Accounts payable – related parties was $3,050 as of March 31, 2016 (September 30, 2015 - $4,833) for expenses to be reimbursed to directors. This amount is unsecured, non-interest bearing, and has no fixed terms of repayment. As of March 31, 2016, officers, directors, their families, and their controlled entities have acquired 53.63% of the Company’s outstanding common capital stock. This percentage does not include unexercised warrants or stock options. The Company incurred expenses $66,456 to one related party, Concorde Consulting, for professional fees and consulting services provided to the Company during the period ended March 31, 2016 (March 31, 2015 - $76,005). These amounts were fully paid as of March 31, 2016. |
Asset Retirement Obligations
Asset Retirement Obligations | 6 Months Ended |
Mar. 31, 2016 | |
Asset Retirement Obligations [Abstract] | |
ASSET RETIREMENT OBLIGATIONS | 7. 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 as determined by the Alberta Energy Regulator to reclaim and abandon wells and facilities and the estimated timing of the costs to be incurred in future periods. At March 31, 2016, the Company estimates the undiscounted cash flows related to asset retirement obligation to total approximately $623,142 (September 30, 2015 - $602,613). The fair value of the liability at March 31, 2016 is estimated to be $449,388 (September 30, 2015 - $426,607) 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 27 years. Changes to the asset retirement obligation were as follows: March 31, 2016 September 30, 2015 Balance, beginning of period $ 426,607 $ 469,013 Liabilities incurred – 35,031 Effect of foreign exchange 14,877 (93,421 ) Disposal – – Accretion expense 7,904 15,984 Balance, end of period $ 449,388 $ 426,607 |
Common Stock
Common Stock | 6 Months Ended |
Mar. 31, 2016 | |
Common Stock [Abstract] | |
COMMON STOCK | 8. COMMON STOCK Common Stock Issued and Outstanding As of March 31, 2016, the Company had outstanding 229,374,605 shares of common stock. Warrants The following table summarizes the Company’s warrants outstanding as of March 31, 2016: Shares Underlying Shares Underlying 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 March 31, 2016 52,155,221 0.65 $ 0.105 52,155,221 $ 0.105 $0.075 at March 31, 2016 520,000 0.22 0.075 520,000 0.075 52,675,221 0.65 $ 0.105 52,675,221 $ 0.105 The following is a summary of warrant activity for the period ended March 31, 2016: Number of Warrants Weighted Average Exercise Price Intrinsic Balance, September 30, 2015 52,675,221 $ 0.105 $ – Cancelled – – – Granted – – – Exercised – – – Balance, March 31, 2016 52,675,221 $ 0.105 $ – Outstanding Warrants, March 31, 2016 52,675,221 $ 0.105 $ – There were 52,675,221 warrants outstanding as of March 31, 2016 (September 30, 2015 – 52,675,221), which have a historical fair market value of $3,153,216 (September 30, 2015 - $3,153,216). |
Stock Options
Stock Options | 6 Months Ended |
Mar. 31, 2016 | |
Stock Options [Abstract] | |
STOCK OPTIONS | 9. STOCK OPTIONS For the period ended March 31, 2016, the Company recorded share based compensation expense related to stock options in the amount of $127,279 (September 30, 2015 – $1,116,544) on the stock options that were previously granted. As of March 31, 2016, there was remaining unrecognized compensation cost of $113,006 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 Range of Exercise Price Shares Underlying Options Outstanding Weighted Average Remaining Contractual Life Weighted Average Exercise Price Shares Underlying Options Exercisable Weighted Average Exercise Price $0.05 at March 31, 2016 3,450,000 2.22 0.05 3,450,000 0.05 $0.30 at March 31, 2016 250,000 2.58 0.30 250,000 0.30 $0.34 at March 31, 2016 450,000 2.68 0.34 450,000 0.34 $0.38 at March 31, 2016 6,780,000 3.47 0.38 5,320,000 0.38 $0.23 at March 31, 2016 600,000 3.63 0.23 400,000 0.23 11,530,000 3.06 $ 0.27 9,870,000 $ 0.25 The aggregate intrinsic value of exercisable options as of March 31, 2016, was $Nil (September 30, 2015 - $Nil). The following is a summary of stock option activity as at March 31, 2016: Number of Underlying Shares Weighted Average Exercise Price Weighted Average Fair Market Value Balance, September 30, 2015 12,430,000 $ 0.26 $ 0.20 Balance, March 31, 2016 11,530,000 $ 0.27 $ 0.22 Exercisable, March 31, 2016 9,870,000 $ 0.25 $ 0.20 There were 1,660,000 unvested stock options outstanding as of March 31, 2016 (September 30, 2015 – 2,010,000). |
Changes in Non-Cash Working Cap
Changes in Non-Cash Working Capital | 6 Months Ended |
Mar. 31, 2016 | |
Changes in Non-Cash Working Capital [Abstract] | |
CHANGES IN NON-CASH WORKING CAPITAL | 10. CHANGES IN NON-CASH WORKING CAPITAL Six months ended Six Months Ended March 31, 2016 March 31, 2015 Accounts receivable increase $ (228,540 ) $ 877,133 Prepaid expenses increase (462,952 ) (14,139 ) Accounts payable increase 108,693 (561,156 ) $ (582,799 ) $ 301,838 |
Commitments
Commitments | 6 Months Ended |
Mar. 31, 2016 | |
Commitments [Abstract] | |
COMMITMENTS | 11. COMMITMENTS Compensation to Executive Officers Concorde Consulting, a company owned 100% by Mr. Curtis J. Sparrow, for providing services as Chief Financial Officer to the Company for $11,076 per month (Cdn $15,000 per month). As of March 31, 2016, the Company did not owe Concorde Consulting any of this amount. Rental Agreement On July 27, 2015, the Company renewed its Edmonton office lease commencing effective on July 1, 2015 and expiring on June 30, 2017. The quarterly payments due are as follows: USD $ Cdn $ 2016 Q3 (April - June) $ 6,144 $ 7,969 2016 Q4 (July - September) $ 6,144 $ 7,969 2017 Q1 (October - December) $ 6,144 $ 7,969 2017 Q2 (January - March) $ 6,144 $ 7,969 2017 Q3 (April - June) $ 6,144 $ 7,969 |
Subsequent Events
Subsequent Events | 6 Months Ended |
Mar. 31, 2016 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | 12. SUBSEQUENT EVENTS On June 20, 2016, warrants to acquire up to 520,000 common shares of the Company, expired unexercised. On November 23, 2016, warrants to acquire up to 52,155,221 common shares of the Company, expired unexercised. On June 19, 2017, the Company renewed its Edmonton office lease commencing effective on July 1, 2017 and expiring on June 30, 2019. As part of the lease renewal the Company received the first 3 months of basic rent free. The quarterly payments due are as follows: USD $ Cdn $ 2017 Q4 (July - September) $ – $ – 2018 Q1 (October - December) $ 6,144 $ 7,969 2018 Q2 (January - March) $ 6,144 $ 7,969 2018 Q3 (April - June) $ 6,144 $ 7,969 2018 Q4 (July - September) $ 6,144 $ 7,969 2019 Q1 (October - December) $ 6,144 $ 7,969 2019 Q2 (January - March) $ 6,144 $ 7,969 2019 Q3 (April - June) $ 6,144 $ 7,969 First production from the Company’s joint Steam Assisted Gravity Drainage Demonstration Project (the “SAGD Project”) began on September 16, 2014. As a result of the low-price environment for bitumen in 2015 and early 2016, a majority of the Company’s Joint Venture partners voted to temporarily suspend operations of the SAGD Project at the end of February 2016. In early May of 2016, an amended application was submitted to the AER for an expansion of the existing SAGD Project facility site which would potentially increase the operation for up to a total of eight SAGD well pairs. The amended application sought approval to expand the existing SAGD Project facility site to 3,200 bopd (100% basis). It is anticipated that only five SAGD well pairs need to be operating to achieve this production level. The expanded facility will be designed to handle up to 3,200 bopd. The AER approval for the expansion of the existing SAGD Project was granted on December 14, 2017. While the joint venture has not yet approved to expand the SAGD Project, currently, the SAGD Project continues to move forward with engineering and identification of long lead time items towards potential expansion to 3,200 bopd and future development at Sawn Lake. |
Summary of Significant Accoun18
Summary of Significant Accounting Policies (Policies) | 6 Months Ended |
Mar. 31, 2016 | |
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. |
Change in Accounting Principle | Change in Accounting Principle During the fourth fiscal quarter of 2015, the Company voluntarily changed its method of accounting for its oil and gas properties from the successful efforts method to the full cost method. Accordingly, financial information for prior periods have been recast to reflect retrospective application of the full cost method. The Company believes that the full cost method is preferable as it reflects the results of the Company’s operations and the economics of exploring for and developing its non-traditional long life oil sands assets in the Peace River oil sands area in Alberta, Canada. The Company’s condensed consolidated financial statements have been recast to reflect these differences. There was no effect on the prior period financial statements as a result of the change in accounting policy. |
Prepaid Assets | Prepaid Assets $453,180 was held in trust for a potential acquisition which was not concluded by the Company and was subsequently returned to the Company in May of 2016. |
Crude oil and natural gas properties | Crude oil and natural gas properties The Company follows the full cost method of accounting for oil sands properties pursuant to SEC Regulation S-X Rule 4-10. The full cost method of accounting for oil and gas operations requires that all costs associated with the exploration for and development of oil and gas reserves be capitalized on a country by country basis. Such costs include lease acquisition costs, geological and geophysical expenses, carrying charges on non-producing properties, costs of drilling both productive and non-productive wells, production equipment and overhead charges directly related to acquisition, exploration and development activities. Under the full cost method, oil and gas properties are subject to the ceiling test performed quarterly. A ceiling test write-down is recognized in net earnings if the carrying amount of a cost centre exceeds the “cost centre ceiling”. The carrying amount of the cost centre includes the capitalized costs of proved oil and natural gas properties, net of accumulated depletion and deferred income taxes. The cost centre ceiling is the sum of (A) present value of the estimated future net cash flows from proved oil and natural gas reserves using a 10 percent per year discount factor, (B) the costs of unproved properties not being amortized, and (C) the lower of cost or fair value of unproved properties included in the costs being amortized; less (D) related income tax effects. As of March 31, 2016, no ceiling test write-downs were recorded for the Company’s oil and gas properties. Costs associated with unproved properties are excluded from the depletion calculation until it is determined that proved reserves are attributable or impairment has occurred. Unproved properties are assessed annually for impairment. Costs that have been impaired are included in the costs subject to depletion within the full cost pool. |
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 of March 31, 2016 and September 30, 2015, asset retirement obligations amount to $449,388 and $426,607, 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. |
Financial, Concentration and Credit Risk | Financial, Concentration and Credit Risk The Company’s consideration or related financial credit risk related to cash and cash equivalents depends on if funds are fully insured by either The Canada Deposit Insurance Corporation (“CDIC”), or The Credit Union Deposit Guarantee Corporation (“CUDGC”) deposit insurance limit. As of March 31, 2016, the Company has approximately $224,621 funds that are in excess of deposit insurance limits, which may have financial credit risk. For the Company funds that are maintained in a financial institution which has its deposits fully guaranteed by CUDGC, there is no financial credit risk. The Company is not directly subject to credit risk resulting from the concentration of its crude oil sales. For the period ending March 31, 2016 and for the year ended September 30, 2015, 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 all of the Company’s oil production to 11 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. |
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 64,205,221 potentially dilutive securities excluded from the the diluted earnings per share calculation because their effect would be antidilutive. |
Recently Adopted Accounting Standards | Recently Adopted Accounting Standards In August 2015, the FASB issued ASU 2015-14, “Revenue from Contracts with Customers (Topic 606) — Deferral of the Effective Date.” ASU 2015-14 defers the effective date of ASU 2014-09 by one year to annual reporting periods beginning after December 15, 2017 with early adoption permitted for periods beginning after December 15, 2016. The adoption of this standard is not expected to have a material impact on the Company’s consolidated financial statements. In February 2016, the FASB issued ASU 2016-02, “Leases (Topic 842),” requiring lessees to recognize lease assets and lease liabilities for most leases classified as operating leases under previous U.S. GAAP. The guidance is effective for fiscal years beginning after December 15, 2018, with early adoption permitted. The Company will be required to use a modified retrospective approach for leases that exist or are entered into after the beginning of the earliest comparative period in the financial statements. The adoption of this standard is not expected to have a material impact on the Company’s consolidated financial statements. The Company does not expect the adoption of any other recent accounting pronouncements to have a material impact on the Company’s financial statements. |
Oil and Gas Properties (Tables)
Oil and Gas Properties (Tables) | 6 Months Ended |
Mar. 31, 2016 | |
Oil and Gas Properties [Abstract] | |
Summary of net payments due in lease rental commitment | (USD $) (Cdn $) 2016 $ 18,617 $ 24,147 2017 $ 37,235 $ 48,294 2018 $ 37,235 $ 48,294 2019 $ 22,728 $ 29,478 2020 $ 3,454 $ 4,480 Subsequent $ 13,816 $ 17,920 |
Capitalization of Costs Incur20
Capitalization of Costs Incurred in Oil and Gas Activities (Tables) | 6 Months Ended |
Mar. 31, 2016 | |
Capitalization of Costs Incurred in Oil and Gas Activities [Abstract] | |
Summary of capitalized costs relating to oil and gas - producing activities | March 31, September 30, 2015 Unproved Oil and Gas Properties $ 21,126,658 $ 21,044,015 Proved Oil and Gas Properties – – Accumulated Depreciation and Depletion (68,066 ) (62,363 ) Net Capitalized Cost $ 21,058,592 $ 20,981,652 |
Exploration Activities (Tables)
Exploration Activities (Tables) | 6 Months Ended |
Mar. 31, 2016 | |
Exploration Activities [Abstract] | |
Summary of costs incurred in the oil property acquisition, exploration and development activities | March 31, September 30, 2015 Acquisition of Properties: Proved $ – $ – Unproved $ 82,643 $ 135,575 Exploration costs $ 6,154 $ 46,351 Development costs $ – $ – |
Asset Retirement Obligations (T
Asset Retirement Obligations (Tables) | 6 Months Ended |
Mar. 31, 2016 | |
Asset Retirement Obligations [Abstract] | |
Schedule of changes to the asset retirement obligation | March 31, 2016 September 30, 2015 Balance, beginning of period $ 426,607 $ 469,013 Liabilities incurred – 35,031 Effect of foreign exchange 14,877 (93,421 ) Disposal – – Accretion expense 7,904 15,984 Balance, end of period $ 449,388 $ 426,607 |
Common Stock (Tables)
Common Stock (Tables) | 6 Months Ended |
Mar. 31, 2016 | |
Common Stock [Abstract] | |
Summary of Company's warrants outstanding | Shares Underlying Shares Underlying 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 March 31, 2016 52,155,221 0.65 $ 0.105 52,155,221 $ 0.105 $0.075 at March 31, 2016 520,000 0.22 0.075 520,000 0.075 52,675,221 0.65 $ 0.105 52,675,221 $ 0.105 |
Summary of warrants activity | Number of Warrants Weighted Average Exercise Price Intrinsic Balance, September 30, 2015 52,675,221 $ 0.105 $ – Cancelled – – – Granted – – – Exercised – – – Balance, March 31, 2016 52,675,221 $ 0.105 $ – Outstanding Warrants, March 31, 2016 52,675,221 $ 0.105 $ – |
Stock Options (Tables)
Stock Options (Tables) | 6 Months Ended |
Mar. 31, 2016 | |
Stock Options [Abstract] | |
Summary of stock options | Shares Underlying Shares Underlying Range of Exercise Price Shares Underlying Options Outstanding Weighted Average Remaining Contractual Life Weighted Average Exercise Price Shares Underlying Options Exercisable Weighted Average Exercise Price $0.05 at March 31, 2016 3,450,000 2.22 0.05 3,450,000 0.05 $0.30 at March 31, 2016 250,000 2.58 0.30 250,000 0.30 $0.34 at March 31, 2016 450,000 2.68 0.34 450,000 0.34 $0.38 at March 31, 2016 6,780,000 3.47 0.38 5,320,000 0.38 $0.23 at March 31, 2016 600,000 3.63 0.23 400,000 0.23 11,530,000 3.06 $ 0.27 9,870,000 $ 0.25 |
Summary of stock option activity | Number of Underlying Shares Weighted Average Exercise Price Weighted Average Fair Market Value Balance, September 30, 2015 12,430,000 $ 0.26 $ 0.20 Balance, March 31, 2016 11,530,000 $ 0.27 $ 0.22 Exercisable, March 31, 2016 9,870,000 $ 0.25 $ 0.20 |
Changes in Non-Cash Working C25
Changes in Non-Cash Working Capital (Tables) | 6 Months Ended |
Mar. 31, 2016 | |
Changes in Non-Cash Working Capital [Abstract] | |
Summary of changes in non-cash working capital | Six months ended Six Months Ended March 31, 2016 March 31, 2015 Accounts receivable increase $ (228,540 ) $ 877,133 Prepaid expenses increase (462,952 ) (14,139 ) Accounts payable increase 108,693 (561,156 ) $ (582,799 ) $ 301,838 |
Commitments (Tables)
Commitments (Tables) | 6 Months Ended |
Mar. 31, 2016 | |
Commitments [Abstract] | |
Summary of annual payments under office lease agreement | USD $ Cdn $ 2016 Q3 (April - June) $ 6,144 $ 7,969 2016 Q4 (July - September) $ 6,144 $ 7,969 2017 Q1 (October - December) $ 6,144 $ 7,969 2017 Q2 (January - March) $ 6,144 $ 7,969 2017 Q3 (April - June) $ 6,144 $ 7,969 |
Subsequent Events (Tables)
Subsequent Events (Tables) | 6 Months Ended |
Mar. 31, 2016 | |
Subsequent Events [Abstract] | |
Schedule of office lease | USD $ Cdn $ 2017 Q4 (July - September) $ – $ – 2018 Q1 (October - December) $ 6,144 $ 7,969 2018 Q2 (January - March) $ 6,144 $ 7,969 2018 Q3 (April - June) $ 6,144 $ 7,969 2018 Q4 (July - September) $ 6,144 $ 7,969 2019 Q1 (October - December) $ 6,144 $ 7,969 2019 Q2 (January - March) $ 6,144 $ 7,969 2019 Q3 (April - June) $ 6,144 $ 7,969 |
Nature of Business and Basis 28
Nature of Business and Basis of Presentation (Details) - $ / shares | Mar. 31, 2016 | Sep. 30, 2015 |
Nature of Business and Basis of Presentation (Textual) | ||
Common stock, par value | $ 0.001 | $ 0.001 |
Summary of Significant Accoun29
Summary of Significant Accounting Policies (Details) - USD ($) | 6 Months Ended | |
Mar. 31, 2016 | Sep. 30, 2015 | |
Summary of significant accounting policies(Textual) | ||
Prepaid assets | $ 453,180 | |
Asset retirement obligations | $ 449,388 | $ 426,607 |
Financial, concentration and credit risk, description | 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 all of the Company's oil production to 11 purchasers in the oil and gas industry. | |
Antidilutive securities excluded from computation of earnings | 64,205,221 | |
Excess of deposit insurance limits | $ 224,621 |
Oil and Gas Properties (Details
Oil and Gas Properties (Details) - Mar. 31, 2016 | USD ($) | CAD |
Oil and Gas Properties [Abstract] | ||
2,016 | $ 18,617 | CAD 24,147 |
2,017 | 37,235 | 48,294 |
2,018 | 37,235 | 48,294 |
2,019 | 22,728 | 29,478 |
2,020 | 3,454 | 4,480 |
Subsequent | $ 13,816 | CAD 17,920 |
Oil and Gas Properties (Detai31
Oil and Gas Properties (Details Textual) | 6 Months Ended |
Mar. 31, 2016aoil | |
Oil and Gas Properties (Textual) | |
Gas and oil area, gross | a | 43,015 |
Gas and oil area, net | a | 34,096 |
Number of oil and gas for leases | 9 |
Land One [Member] | |
Oil and Gas Properties (Textual) | |
Lease agreements, expiration date | Jul. 10, 2018 |
Number of oil and gas for leases | 5 |
Land Two [Member] | |
Oil and Gas Properties (Textual) | |
Lease agreements, expiration date | Aug. 19, 2019 |
Number of oil and gas for leases | 3 |
Land Three [Member] | |
Oil and Gas Properties (Textual) | |
Lease agreements, expiration date | Apr. 9, 2024 |
Number of oil and gas for leases | 1 |
Capitalization of Costs Incur32
Capitalization of Costs Incurred in Oil and Gas Activities (Details) - USD ($) | Mar. 31, 2016 | Sep. 30, 2015 |
Summary of capitalized costs relating to oil and gas producing activities | ||
Unproved Oil and Gas Properties | $ 21,126,658 | $ 21,044,015 |
Proved Oil and Gas Properties | ||
Accumulated Depreciation and Depletion | (68,066) | (62,363) |
Net Capitalized Cost | $ 21,058,592 | $ 20,981,652 |
Capitalization of Costs Incur33
Capitalization of Costs Incurred in Oil and Gas Activities (Details Textual) - USD ($) | 6 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Capitalization of Costs Incurred in Oil and Gas Activities (Textual) | ||
Depreciation and depletion expense | $ 5,703 | $ 6,878 |
Exploration Activities (Details
Exploration Activities (Details) - USD ($) | 6 Months Ended | 12 Months Ended |
Mar. 31, 2016 | Sep. 30, 2015 | |
Acquisition of Properties: | ||
Proved | ||
Unproved | 82,643 | 135,575 |
Exploration costs | 6,154 | 46,351 |
Development costs |
Significant Transactions with35
Significant Transactions with Related Parties (Details) - USD ($) | 6 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | Sep. 30, 2015 | |
Significant Transactions with Related Parties (Textual) | |||
Accounts payable and accrued liabilities - related parties | $ 3,050 | $ 4,833 | |
Percentage of outstanding common capital stock | 53.63% | ||
Professional fees to related party | $ 66,456 | $ 76,005 |
Asset Retirement Obligations (D
Asset Retirement Obligations (Details) - USD ($) | 6 Months Ended | 12 Months Ended |
Mar. 31, 2016 | Sep. 30, 2015 | |
Asset retirement obligation [Abstract] | ||
Balance, beginning of period | $ 426,607 | $ 469,013,000 |
Liabilities incurred | 35,031 | |
Effect of foreign exchange | 14,877 | (93,421) |
Disposal | ||
Accretion expense | 7,904 | 15,984 |
Balance, end of period | $ 449,388 | $ 426,607 |
Asset Retirement Obligations 37
Asset Retirement Obligations (Details Textual) - USD ($) | 6 Months Ended | |
Mar. 31, 2016 | Sep. 30, 2015 | |
Asset Retirement Obligations (Textual) | ||
Estimate of undiscounted cash flows related to asset retirement obligation | $ 623,142 | $ 602,613 |
Fair value of liability | $ 449,388 | $ 426,607 |
Risk free rate | 3.74% | |
Inflation rate | 2.00% | |
Term of settlement of the obligation | 27 years |
Common Stock (Details)
Common Stock (Details) - Warrant [Member] - $ / shares | 6 Months Ended | |
Mar. 31, 2016 | Sep. 30, 2015 | |
Summary of Warrants | ||
Shares Underlying Warrants Outstanding | 52,675,221 | 52,675,221 |
Shares Underlying Warrants Outstanding Weighted Average Remaining Contractual Life | 7 months 24 days | |
Shares Underlying Warrants Outstanding Weighted Average Exercise Price | $ 0.105 | |
Shares Underlying Warrants Exercisable | 52,675,221 | |
Shares Underlying Warrants Exercisable Weighted Average Exercise Price | $ 0.105 | $ 0.105 |
$0.105 at March 31, 2016 [Member] | ||
Summary of Warrants | ||
Shares Underlying Warrants Outstanding | 52,155,221 | |
Shares Underlying Warrants Outstanding Weighted Average Remaining Contractual Life | 7 months 24 days | |
Shares Underlying Warrants Outstanding Weighted Average Exercise Price | $ 0.105 | |
Shares Underlying Warrants Exercisable | 52,155,221 | |
Shares Underlying Warrants Exercisable Weighted Average Exercise Price | $ 0.105 | |
$0.075 at March 31, 2016 [Member] | ||
Summary of Warrants | ||
Shares Underlying Warrants Outstanding | 520,000 | 520,000 |
Shares Underlying Warrants Outstanding Weighted Average Remaining Contractual Life | 2 months 19 days | |
Shares Underlying Warrants Outstanding Weighted Average Exercise Price | $ 0.075 | |
Shares Underlying Warrants Exercisable | 520,000 | |
Shares Underlying Warrants Exercisable Weighted Average Exercise Price | $ 0.075 | $ 0.075 |
Common Stock (Details 1)
Common Stock (Details 1) - Warrant [Member] - $ / shares | 6 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2016 | Sep. 30, 2015 | |
Summary of warrant activity | |||
Number of underlying shares, Beginning Balance | 52,675,221 | ||
Number of Warrants, Warrants Cancelled | |||
Number of Warrants, Warrants granted | |||
Number of Warrants, Warrants Exercised | |||
Number of underlying shares, Ending Balance | 52,675,221 | ||
Outstanding Warrants, Number of Warrants | 52,675,221 | 52,675,221 | 52,675,221 |
Weighted Average Exercise Price, Beginning balance | $ 0.105 | ||
Weighted Average Exercise Price, Warrants cancelled | |||
Weighted Average Exercise Price, Warrants granted | |||
Weighted Average Exercise Price, Warrants exercised | |||
Weighted Average Exercise Price, Ending balance | 0.105 | ||
Outstanding Warrants, Weighted Average Exercise Price | $ 0.105 | $ 0.105 | |
Intrinsic Value, Beginning balance | |||
Intrinsic Value, Warrants cancelled | |||
Intrinsic Value, Warrants granted | |||
Intrinsic Value, Warrants exercised | |||
Intrinsic Value, Balance, Ending balance | |||
Outstanding Warrants, Intrinsic Value |
Common Stock (Details Textual)
Common Stock (Details Textual) - USD ($) | Mar. 31, 2016 | Sep. 30, 2015 |
Common Stock (Textual) | ||
Common Stock, Outstanding | 229,374,605 | 229,374,605 |
Warrant [Member] | ||
Common Stock (Textual) | ||
Class of Warrant or Right, Outstanding | 52,675,221 | 52,675,221 |
Historical fair market value of warrant | $ 3,153,216 | $ 3,153,216 |
Stock Options (Details)
Stock Options (Details) | 6 Months Ended |
Mar. 31, 2016$ / sharesshares | |
Summary of stock options | |
Shares Underlying Options Outstanding | shares | 11,530,000 |
Shares Underlying Options Outstanding, Weighted Average Remaining Contractual Life | 3 years 22 days |
Shares Underlying Options Outstanding, Weighted Average Exercise Price | $ / shares | $ 0.27 |
Shares Underlying Options Exercisable | shares | 9,870,000 |
Shares Underlying Options Exercisable, Weighted Average Exercise Price | $ / shares | $ 0.25 |
$0.05 at March 31, 2016 [Member] | Stock Options [Member] | |
Summary of stock options | |
Shares Underlying Options Outstanding | shares | 3,450,000 |
Shares Underlying Options Outstanding, Weighted Average Remaining Contractual Life | 2 years 2 months 19 days |
Shares Underlying Options Outstanding, Weighted Average Exercise Price | $ / shares | $ 0.05 |
Shares Underlying Options Exercisable | shares | 3,450,000 |
Shares Underlying Options Exercisable, Weighted Average Exercise Price | $ / shares | $ 0.05 |
$0.30 at March 31, 2016 [Member] | Stock Options [Member] | |
Summary of stock options | |
Shares Underlying Options Outstanding | shares | 250,000 |
Shares Underlying Options Outstanding, Weighted Average Remaining Contractual Life | 2 years 6 months 29 days |
Shares Underlying Options Outstanding, Weighted Average Exercise Price | $ / shares | $ 0.30 |
Shares Underlying Options Exercisable | shares | 250,000 |
Shares Underlying Options Exercisable, Weighted Average Exercise Price | $ / shares | $ 0.30 |
$0.34 at March 31, 2016 [Member] | Stock Options [Member] | |
Summary of stock options | |
Shares Underlying Options Outstanding | shares | 450,000 |
Shares Underlying Options Outstanding, Weighted Average Remaining Contractual Life | 2 years 8 months 5 days |
Shares Underlying Options Outstanding, Weighted Average Exercise Price | $ / shares | $ 0.34 |
Shares Underlying Options Exercisable | shares | 450,000 |
Shares Underlying Options Exercisable, Weighted Average Exercise Price | $ / shares | $ 0.34 |
$0.38 at March 31, 2016 [Member] | Stock Options [Member] | |
Summary of stock options | |
Shares Underlying Options Outstanding | shares | 6,780,000 |
Shares Underlying Options Outstanding, Weighted Average Remaining Contractual Life | 3 years 5 months 20 days |
Shares Underlying Options Outstanding, Weighted Average Exercise Price | $ / shares | $ 0.38 |
Shares Underlying Options Exercisable | shares | 5,320,000 |
Shares Underlying Options Exercisable, Weighted Average Exercise Price | $ / shares | $ 0.38 |
$0.23 at March 31, 2016 [Member] | Stock Options [Member] | |
Summary of stock options | |
Shares Underlying Options Outstanding | shares | 600,000 |
Shares Underlying Options Outstanding, Weighted Average Remaining Contractual Life | 3 years 7 months 17 days |
Shares Underlying Options Outstanding, Weighted Average Exercise Price | $ / shares | $ 0.23 |
Shares Underlying Options Exercisable | shares | 400,000 |
Shares Underlying Options Exercisable, Weighted Average Exercise Price | $ / shares | $ 0.23 |
Stock Options (Details 1)
Stock Options (Details 1) - Stock Options [Member] - $ / shares | Mar. 31, 2016 | Sep. 30, 2015 |
Summary of company's stock options | ||
Number of underlying shares, Beginning balance | 11,530,000 | 12,430,000 |
Number of underlying shares, Exercisable | 9,870,000 | |
Weighted Average Exercise Price, beginning balance | $ 0.27 | $ 0.26 |
Weighted Average Exercise Price Exercisable | 0.25 | |
Weighted Average Fair Market Value | 0.22 | $ 0.20 |
Weighted Average Fair Market Value, Exercisable | $ 0.20 |
Stock Options (Details Textual)
Stock Options (Details Textual) - USD ($) | 6 Months Ended | 12 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | Sep. 30, 2015 | |
Stock Options (Textual) | |||
Unrecognized compensation cost related to awards | $ 113,006 | ||
Share based compensation | 127,279 | $ 590,036 | $ 1,116,544 |
Stock Options [Member] | |||
Stock Options (Textual) | |||
Aggregate intrinsic value of exercisable options | |||
Stock option outstanding unvested | 1,660,000 | 2,010,000 |
Changes in Non-Cash Working C44
Changes in Non-Cash Working Capital (Details) - USD ($) | 6 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Summary of changes in non-cash working capital | ||
Accounts receivable increase | $ (228,540) | $ 877,133 |
Prepaid expenses increase | (462,952) | (14,139) |
Accounts payable increase | 108,693 | (561,156) |
Net changes in non-cash working capital | $ 582,799 | $ (301,838) |
Commitments (Details)
Commitments (Details) - Jul. 27, 2015 | USD ($) | CAD |
2016 Q3 (April - June) [Member] | ||
Summary of annual payments under office lease agreement | ||
Quarterly payments due | $ 6,144 | CAD 7,969 |
2016 Q4 (July - September) [Member] | ||
Summary of annual payments under office lease agreement | ||
Quarterly payments due | 6,144 | 7,969 |
2017 Q1 (October - December) [Member] | ||
Summary of annual payments under office lease agreement | ||
Quarterly payments due | 6,144 | 7,969 |
2017 Q2 (January - March) [Member] | ||
Summary of annual payments under office lease agreement | ||
Quarterly payments due | 6,144 | 7,969 |
2017 Q3 (April - June) [Member] | ||
Summary of annual payments under office lease agreement | ||
Quarterly payments due | $ 6,144 | CAD 7,969 |
Commitments (Details Textual)
Commitments (Details Textual) - Chief Financial Officer [Member] - Concorde Consulting [Member] | 6 Months Ended | |
Mar. 31, 2016USD ($) | Mar. 31, 2016CAD | |
Commitment (Textual) | ||
Officer Ownership of Consulting Company | 100.00% | 100.00% |
Compensation paid per month to Executive Officer Consulting Company | $ 11,076 | CAD 15,000 |
Subsequent Events (Details)
Subsequent Events (Details) - Jun. 19, 2017 - Subsequent Events [Member] | USD ($) | CAD |
2017 Q4 (July - September) [Member] | ||
Subsequent Event [Line Items] | ||
Quarterly payments due | ||
2018 Q1 (October - December) [Member] | ||
Subsequent Event [Line Items] | ||
Quarterly payments due | 6,144 | 7,969 |
2018 Q2 (January - March) [Member] | ||
Subsequent Event [Line Items] | ||
Quarterly payments due | 6,144 | 7,969 |
2018 Q3 (April - June) [Member] | ||
Subsequent Event [Line Items] | ||
Quarterly payments due | 6,144 | 7,969 |
2018 Q4 (July - September) [Member] | ||
Subsequent Event [Line Items] | ||
Quarterly payments due | 6,144 | 7,969 |
2019 Q1 (October - December) [Member] | ||
Subsequent Event [Line Items] | ||
Quarterly payments due | 6,144 | 7,969 |
2019 Q2 (January - March) [Member] | ||
Subsequent Event [Line Items] | ||
Quarterly payments due | 6,144 | 7,969 |
2019 Q3 (April - June) [Member] | ||
Subsequent Event [Line Items] | ||
Quarterly payments due | $ 6,144 | CAD 7,969 |
Subsequent Events (Details Text
Subsequent Events (Details Textual) - Subsequent Event [Member] - shares | Nov. 23, 2016 | Jun. 20, 2016 | May 31, 2016 |
Subsequent Events (Textual) | |||
Expired unexercised warrants | 52,155,221 | 520,000 | |
Farmout Agreement [Member] | |||
Subsequent Events (Textual) | |||
SAGD Project Expansion AER Approval, Description | The amended application sought approval to expand the existing SAGD Project facility site to 3,200 bopd (100% basis). It is anticipated that only five SAGD well pairs need to be operating to achieve this production level. The expanded facility will be designed to handle up to 3,200 bopd. The AER approval for the expansion of the existing SAGD Project was granted on December 14, 2017. While the joint venture has not yet approved to expand the SAGD Project, currently, the SAGD Project continues to move forward with engineering and identification of long lead time items towards potential expansion to 3,200 bopd and future development at Sawn Lake. |