American Natural Energy (ANR) 10-Q 20 May 14 2014 Q1 Quarterly report Financial data

Document_and_Entity_Informatio

Document and Entity Information	3 Months Ended
	Mar. 31, 2014	20-May-14
Document Type	'10-Q	'
Amendment Flag	'false	'
Document Period End Date	31-Mar-14	'
Trading Symbol	'anr	'
Entity Registrant Name	'American Natural Energy Corp	'
Entity Central Index Key	'0000870732	'
Current Fiscal Year End Date	'--12-31	'
Entity Filer Category	'Smaller Reporting Company	'
Entity Common Stock, Shares Outstanding	'	26,405,085
Entity Current Reporting Status	'Yes	'
Entity Voluntary Filers	'No	'
Entity Well Known Seasoned Issuer	'No	'
Document Fiscal Year Focus	'2014	'
Document Fiscal Period Focus	'Q1	'

Consolidated_Balance_Sheets

Consolidated Balance Sheets (USD $)	Mar. 31, 2014	Dec. 31, 2013
Current assets:	'	'
Cash and cash equivalents	$1,554	$82,295
Accounts receivable - joint interest billing	1,401	12,505
Accounts receivable - oil and gas sales	203,458	163,321
Prepaid expenses and other	29,674	47,661
Oil inventory	20,833	20,833
Total current assets	256,920	326,615
Proved oil and natural gas properties, full cost method of accounting, net of accumulated depletion, depreciation, amortization and impairment of $23,145,488 and $22,989,672	18,121,558	18,263,854
Unproved oil and natural gas properties	740,266	724,266
Equipment and other fixed assets, net of accumulated depreciation of $1,174,917 and $1,172,907	3,314	5,324
Total assets	19,122,058	19,320,059
Current liabilities:	'	'
Accounts payable and accrued liabilities	4,552,758	4,254,749
Revenue payable	3,522,306	3,522,279
Accounts payable - related parties	126,619	99,733
Accrued interest	623,321	532,392
Insurance note payable	15,601	31,102
Notes payable - related parties net of discounts of $394,530 and $590,015 respectively	3,391,381	3,220,896
Note payable, net of discounts of $0 and $256,023 respectively	2,464,164	2,320,523
Taxes due on dissolution of subsidiary	32,752	32,752
Total current liabilities	14,728,902	14,014,426
Asset retirement obligation	2,225,177	2,165,521
Total liabilities	16,954,079	16,179,947
Commitments and contingencies	0	0
Stockholders' equity :	'	'
Common stock Authorized - 250,000,000 shares with par value of $0.001 - 26,405,085 and 26,405,085 shares issued and outstanding respectively	26,405	26,405
Treasury stock	-150,000	-150,000
Additional paid-in capital	25,874,430	25,874,430
Accumulated deficit, since January 1, 2002 (in conjunction with the quasi- Reorganization stated capital was reduced by an accumulated deficit of $2,015,495)	-27,665,493	-26,693,360
Accumulated other comprehensive income	4,082,637	4,082,637
Total stockholders' equity	2,167,979	3,140,112
Total liabilities and stockholders' equity	$19,122,058	$19,320,059

Consolidated_Balance_Sheets_Pa

Consolidated Balance Sheets (Parenthetical) (USD $)	Mar. 31, 2014	Dec. 31, 2013
Accumulated Depreciation, Depletion and Amortization, Proved Oil and Gas Properties	$23,145,488	$22,989,672
Equipment and other fixed assets, net of accumulated depreciation	1,174,917	1,172,907
Notes payable related parties net of discounts	394,530	590,015
Note payable, net of discounts	0	256,023
Common Stock, Shares Authorized	250,000,000	250,000,000
Common Stock, Par Value Per Share	$0.00	$0.00
Common Stock, Shares, Issued	26,405,085	26,405,085
Common Stock, Shares, Outstanding	26,405,085	26,405,085
Quasi-reorganization stated capital reduced by an accumulated deficit	$2,015,495	$2,015,495

Consolidated_Statements_of_Ope

Consolidated Statements of Operations and Other Comprehensive Income (Loss) (USD $)	3 Months Ended
	Mar. 31, 2014	Mar. 31, 2013
Revenues:	'	'
Oil and gas sales	$575,109	$998,312
Operations income	0	11,923
Total Revenue	575,109	1,010,235
Expenses:	'	'
Lease operating expense	138,518	289,697
Production taxes	57,250	74,657
General and administrative	345,400	487,610
Foreign exchange gain	-12,380	-260,296
Depletion, depreciation and amortization - oil and gas properties	155,816	316,568
Accretion of asset retirement obligation	59,656	47,524
Depreciation and amortization - other assets	2,010	4,881
Total expenses	746,270	960,641
Other Expense	'	'
Interest and financing costs	92,346	261,756
Related party interest	300,136	244,160
Loss on debt extinguishment	408,490	39,953
Total other expense	800,972	545,869
Net loss	-972,133	-496,275
Other comprehensive loss- net of tax:	'	'
Foreign exchange translation	0	-260,296
Other comprehensive loss	0	-260,296
Comprehensive loss	($972,133)	($756,571)
Basic and diluted loss per share	($0.04)	($0.03)
Basic	26,405,085	26,405,085
Diluted	26,405,085	26,405,085

Consolidated_Statements_of_Cas

Consolidated Statements of Cash Flows (USD $)	3 Months Ended
	Mar. 31, 2014	Mar. 31, 2013
Cash flows from operating activities:	'	'
Net loss	($972,133)	($496,275)
Adjustments to reconcile net loss to net cash provided by (used in) operating activities:	'	'
Depreciation, depletion and amortization	157,826	321,449
Accretion of asset retirement obligation	59,656	47,524
Foreign exchange gain	-12,380	-260,296
Amortization of deferred financing costs	0	57,104
Amortization of debt discount	47,531	105,475
Related party amortization of debt discount	195,485	138,515
Loss on debt extinguishment	408,490	39,953
Changes in components of working capital:	'	'
Accounts receivable	-29,033	-152,102
Oil inventory	0	3,397
Prepaid expenses and other current assets	17,987	44,476
Accounts payable, revenues payable, accrued liabilities and interest	399,850	58,965
Net cash provided by (used in) operating activities	273,279	-91,815
Cash flows from investing activities:	'	'
Purchase and development of oil and gas properties	-13,520	-56,166
Net cash used in investing activities	-13,520	-56,166
Cash flows from financing activities:	'	'
Payment of notes payable	-315,500	-654,594
Payment of notes payable-related party	-25,000	-41,667
Proceeds from issuance of notes payable	0	465,950
Proceeds from issuance of notes payable- related party	0	500,000
Payment of deferred financing costs	0	-25,000
Net cash provided by (used in) financing activities	-340,500	244,689
Increase in cash and cash equivalents	-80,741	96,708
Cash beginning of period	82,295	31,177
Cash end of period	1,554	127,885
Supplemental disclosures:	'	'
Interest paid	178,328	125,274
Non cash investing and financing activities:	'	'
Purchase of oil and gas properties in accounts payable	16,000	155,887
Debt issued for restricted cash	0	500,000
Debt discount due to fees related to TCA debt	0	100,000
Debt discount due to cash withheld by lender	$0	$34,050

Significant_accounting_policie

Significant accounting policies	3 Months Ended
	Mar. 31, 2014
Significant accounting policies [Text Block]	'
	1	Significant accounting policies
		The accounting policies and methods followed in preparing these unaudited condensed consolidated financial statements are those used by American Natural Energy Corporation (the “Company”) as described in Note 1 of the notes to consolidated financial statements included in the Annual Report on Form 10-K. The unaudited condensed consolidated financial statements for the three-month periods ended March 31, 2014 and 2013 have been prepared in accordance with accounting principles generally accepted in the United States of America and the rules of the Securities and Exchange Commission and do not conform in all respects to the disclosure and information that is required for annual consolidated financial statements. The year-end condensed consolidated balance sheet data was derived from audited consolidated financial statements, but does not include all disclosures required by accounting principles generally accepted in the United States of America. These interim condensed consolidated financial statements should be read in conjunction with the most recent annual consolidated financial statements of the Company.
		In the opinion of management, all adjustments, all of which are of a normal recurring nature, considered necessary for fair statement have been included in these interim condensed consolidated financial statements. Operating results for the three-month period ended March 31, 2014 are not indicative of the results that may be expected for the full year ending December 31, 2014.
		Reclassification of Prior Period Statements
		Certain reclassifications of prior period consolidated financial statement balances have been made to conform to current reporting practices.

Going_Concern_Liquidity_and_Ca

Going Concern, Liquidity and Capital Resources	3 Months Ended
	Mar. 31, 2014
Going Concern, Liquidity and Capital Resources [Text Block]	'
	2	Going Concern, Liquidity and Capital Resources
		The Company currently has a severe shortage of working capital and funds to pay its liabilities. The Company has no current borrowing capacity with any lender. The Company incurred a net loss of $972,133 for the three months ended March 31, 2014. The Company has a working capital deficit of $14,471,982 and an accumulated deficit of $27,665,493 at March 31, 2014 which leads to substantial doubt concerning the ability of the Company to meet its obligations as they come due. The Company also has a need for substantial funds to develop its oil and gas properties and repay borrowings as well as to meet its other current liabilities.
		The accompanying consolidated financial statements have been prepared on a going concern basis which contemplates continuity of operations, realization of assets and liquidation of liabilities in the ordinary course of business. As a result of the losses incurred and current negative working capital, there is no assurance that the carrying amounts of assets will be realized or that liabilities will be liquidated or settled for the amounts recorded. The ability of the Company to continue as a going concern is dependent upon adequate sources of capital and the Company’s ability to sustain positive results of operations and cash flows sufficient to continue to explore for and develop its oil and gas reserves and pay its obligations.
		Management’s strategy has been to obtain additional financing or industry partners. It is management’s intention to raise additional debt or equity financing to fund its operations and capital expenditures or to enter into another transaction in order to maximize shareholder value. Failure to obtain additional financing can be expected to adversely affect the Company’s ability to pay its obligations, further the development of its properties, grow revenues, oil and gas reserves and achieve and maintain a significant level of revenues, cash flows, and profitability. There can be no assurance that the Company will obtain this additional financing at the time required, at rates that are favorable to the Company, or at all. Further, any additional equity financing that is obtained may result in material dilution to the current holders of common stock.

Notes_Payable

Notes Payable	3 Months Ended
	Mar. 31, 2014
Notes Payable [Text Block]	'
	3	Notes Payable
		Notes payable and long-term debt as of March 31, 2014 and December 31, 2013 consisted of the following:
			31-Mar-14		31-Dec-13
			$		$
		Note payable – Citizens Bank of Oklahoma	65,921		65,921
		Note payable – Eaton Oil Tools	40,075		40,075
		Note payable – TCA Global Credit Master Fund	1,996,610		2,096,610
		Discount on TCA Global Credit Master Fund note	-		(256,023	)
		Note payable – Leede Financial	361,558		373,940
		Total third-party notes payable and long-term debt	2,464,164		2,320,523
		Debenture payable – Palo Verde (Note 4)	3,000,000		3,000,000
		Discount on Palo Verde debt	(394,530	)	(590,015	)
		Note payable – TPC Energy	414,183		414,183
		Note payable – Mike Paulk	350,000		375,000
		Note payable – Other	21,728		21,728
		Total related party notes payable and long-term debt	3,391,381		3,220,896
		Total notes payable and long-term debt	5,855,545		5,541,419
		Less: Current portion	(5,855,545	)	(5,541,419	)
		Total notes payable and long-term debt, net of current portion	-		-
	As of March 31, 2014 and December 31, 2013, the Company had an outstanding note to TPC Energy with a principal balance of $164,183. On March 31, 2014, the Company extended the maturity of the note until March 31, 2015. The company evaluated the extension under FASB ASC 470-50 and FASB ASC 470-60 and concluded the revised term constituted a debt modification, rather than a debt extinguishment or a troubled debt restructuring. There were no other changes to the terms of the note.
	As of March 31, 2014, the Company had another outstanding note to TPC Energy with a principal balance of $250,000. On March 11, 2014, the Company extended the maturity date of the note until March 11, 2015. There were no other changes to the terms of the note and TPC Energy will continue to receive the 50% of the company’s interests in its share of the Liquidation Agents account distributions for an extra year until March 11, 2015. The TPC note is included in Notes Payable – Related Parties on the balance sheet as of March 31, 2014. The company evaluated the extension under FASB ASC 470-50 and FASB ASC 470-60 and concluded the revised term constituted a debt modification, rather than a debt extinguishment or a troubled debt restructuring.
	On February 17, 2011, the Company entered into a $500,000 note payable with Mike Paulk and Steven Ensz, directors of the Company, with an annual interest rate of 10%. On February 17, 2014, the Company extended the note payable until February 17, 2015. There were no other changes to terms of the note. The Company evaluated the application of ASC 470-50 and ASC 470-60 and concluded that the revised terms constituted a debt modification rather than a debt extinguishment or a troubled debt restructuring. Principal payments totaling $25,000 were made during the quarter ended March 31, 2014.
	The Company entered into a financing agreement with TCA Global Credit Master Fund, LP during the first quarter of 2012. Proceeds of the financing are to be used for the drilling and completion of wells included in the Company’s inventory of Proved Undeveloped reserves (“PUD”). The Company has a commitment for a total amount of $3 million, before fees and expenses, through the issuance of a series of $1 million debentures. The debenture is secured by a first priority, perfected security interest and mortgage in oil and gas leases and properties. At no time shall the investor funds exceed 65% of the drilling and completion cost of the PUD’s with the balance provided by the Company’s generated funds.
	On January 29, 2014, the Company entered into the Sixth Amendment to the Securities Purchase Agreement with TCA Global Credit Master Fund LP. The amendment provides for interest only payments pursuant to existing amended and restated debenture for the month of December 2013, that all previous outstanding principal and accrued and unpaid interest, an accommodation fee $200,000 for entering into this sixth Amendment and all outstanding Redemption Premium fees will comprise the agree upon outstanding amount of $2,196,609. Principal and interest in the amount of $371,459 is due monthly, inclusive of all fees and redemption amounts. The Company evaluated the amendment under FASB ASC 470-50 and determined that the modification was substantial and qualified as a debt extinguishment. The additional $200,000 accommodation fee and the remaining unamortized debt discount of $208,490 and were recorded as a loss on debt extinguishment. Principal payments of $100,000 each for the months of March, April and May 2014 along with accrued interest have been made.
		During the three months ended March 31, 2014, payments totaling $300,000 were made to TCA debts. Prior to the sixth amendment, $47,533 of debt discount were amortized. The total note principal balance of TCA debts on March 31, 2014 was $1,996,610.
		On June 30, 2013, the Company extended the maturity date of note payable to Leede Financial to December 31, 2013. The other terms of the note payable remain unchanged. The Company evaluated the application of ASC 470-50 and ASC 470-60 and concluded the revised term constituted a debt modification. As the note is denominated in Canadian dollars, the Company adjusted the face value of the note based on fluctuations in exchange rates and recorded a foreign exchange gain of $12,380 during the three months ended March 31, 2014.
		On August 1 2013, the Company converted its $48,000 accounts payable balance to Eaton Oil Tools to a note payable. Monthly payments of $4,119 which include interest at the rate of 6% per annum were to be made through August 2014. At May 20, 2014, six payments were past due.

Convertible_Debentures

Convertible Debentures	3 Months Ended
	Mar. 31, 2014
Convertible Debentures [Text Block]	'
	4	Convertible Debentures
		On December 31, 2012, the Company sold a $1 million 12% unsecured convertible debt due December 31, 2014 to Palo Verde Acquisitions LLC. As of December 31, 2012, the Company had received consideration of $500,000 related to this debt. In January 2013, the Company collected the remaining debt proceeds of $500,000 related to the $1 million convertible Palo Verde debt issued on December 31, 2012. The Company amortized $195,485 of debt discount during the three months ended March 31, 2014.

Subsequent_Event

Subsequent Event	3 Months Ended
	Mar. 31, 2014
Subsequent Event [Text Block]	'
	5	Subsequent Event
		On April 14, 2014 the Company entered into a loan agreement with a private party providing for an advance of $250,000 to be used for working capital purposes. The loan is payable upon the earlier of a re-financing of the Company’s secured debt or August 14, 2014 in the amount of $268,000 plus interest at a rate of 12% per annum. The private investor is also to receive 250,000 shares of Company common stock.

Summary_of_Significant_Account

Summary of Significant Accounting Policies (Policies)	3 Months Ended
	Mar. 31, 2014
Reclassification of Prior Period Statements [Policy Text Block]	'
		Reclassification of Prior Period Statements
		Certain reclassifications of prior period consolidated financial statement balances have been made to conform to current reporting practices.

Notes_Payable_Tables

Notes Payable (Tables)	3 Months Ended
	Mar. 31, 2014
Schedule Of Notes Payable And Long-term Debt [Table Text Block]	'
			31-Mar-14		31-Dec-13
			$		$
		Note payable – Citizens Bank of Oklahoma	65,921		65,921
		Note payable – Eaton Oil Tools	40,075		40,075
		Note payable – TCA Global Credit Master Fund	1,996,610		2,096,610
		Discount on TCA Global Credit Master Fund note	-		(256,023	)
		Note payable – Leede Financial	361,558		373,940
		Total third-party notes payable and long-term debt	2,464,164		2,320,523
		Debenture payable – Palo Verde (Note 4)	3,000,000		3,000,000
		Discount on Palo Verde debt	(394,530	)	(590,015	)
		Note payable – TPC Energy	414,183		414,183
		Note payable – Mike Paulk	350,000		375,000
		Note payable – Other	21,728		21,728
		Total related party notes payable and long-term debt	3,391,381		3,220,896
		Total notes payable and long-term debt	5,855,545		5,541,419
		Less: Current portion	(5,855,545	)	(5,541,419	)
		Total notes payable and long-term debt, net of current portion	-		-

Going_Concern_Liquidity_and_Ca1

Going Concern, Liquidity and Capital Resources (Narrative) (Details) (USD $)	3 Months Ended
	Mar. 31, 2014
Going Concern, Liquidity And Capital Resources 1	$972,133
Going Concern, Liquidity And Capital Resources 2	14,471,982
Going Concern, Liquidity And Capital Resources 3	$27,665,493

Notes_Payable_Narrative_Detail

Notes Payable (Narrative) (Details) (USD $)	3 Months Ended
	Mar. 31, 2014
Notes Payable 1	$164,183
Notes Payable 2	250,000
Notes Payable 3	50.00%
Notes Payable 4	500,000
Notes Payable 5	10.00%
Notes Payable 6	25,000
Notes Payable 7	3,000,000
Notes Payable 8	1,000,000
Notes Payable 9	65.00%
Notes Payable 10	200,000
Notes Payable 11	2,196,609
Notes Payable 12	371,459
Notes Payable 13	200,000
Notes Payable 14	208,490
Notes Payable 15	100,000
Notes Payable 16	300,000
Notes Payable 17	47,533
Notes Payable 18	1,996,610
Notes Payable 19	12,380
Notes Payable 20	48,000
Notes Payable 21	$4,119
Notes Payable 22	6.00%

Convertible_Debentures_Narrati

Convertible Debentures (Narrative) (Details) (USD $)	3 Months Ended
	Mar. 31, 2014
Convertible Debentures 1	$1,000,000
Convertible Debentures 2	12.00%
Convertible Debentures 3	500,000
Convertible Debentures 4	500,000
Convertible Debentures 5	1,000,000
Convertible Debentures 6	$195,485

Subsequent_Event_Narrative_Det

Subsequent Event (Narrative) (Details) (USD $)	3 Months Ended
	Mar. 31, 2014
Subsequent Event 1	$250,000
Subsequent Event 2	$268,000
Subsequent Event 3	12.00%
Subsequent Event 4	250,000

Schedule_Of_Notes_Payable_And_

Schedule Of Notes Payable And Long-term Debt (Details) (USD $)	3 Months Ended
	Mar. 31, 2014
Notes Payable Schedule Of Notes Payable And Long-term Debt 1	$65,921
Notes Payable Schedule Of Notes Payable And Long-term Debt 2	65,921
Notes Payable Schedule Of Notes Payable And Long-term Debt 3	40,075
Notes Payable Schedule Of Notes Payable And Long-term Debt 4	40,075
Notes Payable Schedule Of Notes Payable And Long-term Debt 5	1,996,610
Notes Payable Schedule Of Notes Payable And Long-term Debt 6	2,096,610
Notes Payable Schedule Of Notes Payable And Long-term Debt 7	0
Notes Payable Schedule Of Notes Payable And Long-term Debt 8	-256,023
Notes Payable Schedule Of Notes Payable And Long-term Debt 9	361,558
Notes Payable Schedule Of Notes Payable And Long-term Debt 10	373,940
Notes Payable Schedule Of Notes Payable And Long-term Debt 11	2,464,164
Notes Payable Schedule Of Notes Payable And Long-term Debt 12	2,320,523
Notes Payable Schedule Of Notes Payable And Long-term Debt 13	3,000,000
Notes Payable Schedule Of Notes Payable And Long-term Debt 14	3,000,000
Notes Payable Schedule Of Notes Payable And Long-term Debt 15	-394,530
Notes Payable Schedule Of Notes Payable And Long-term Debt 16	-590,015
Notes Payable Schedule Of Notes Payable And Long-term Debt 17	414,183
Notes Payable Schedule Of Notes Payable And Long-term Debt 18	414,183
Notes Payable Schedule Of Notes Payable And Long-term Debt 19	350,000
Notes Payable Schedule Of Notes Payable And Long-term Debt 20	375,000
Notes Payable Schedule Of Notes Payable And Long-term Debt 21	21,728
Notes Payable Schedule Of Notes Payable And Long-term Debt 22	21,728
Notes Payable Schedule Of Notes Payable And Long-term Debt 23	3,391,381
Notes Payable Schedule Of Notes Payable And Long-term Debt 24	3,220,896
Notes Payable Schedule Of Notes Payable And Long-term Debt 25	5,855,545
Notes Payable Schedule Of Notes Payable And Long-term Debt 26	5,541,419
Notes Payable Schedule Of Notes Payable And Long-term Debt 27	-5,855,545
Notes Payable Schedule Of Notes Payable And Long-term Debt 28	-5,541,419
Notes Payable Schedule Of Notes Payable And Long-term Debt 29	0
Notes Payable Schedule Of Notes Payable And Long-term Debt 30	$0