American Natural Energy (ANR) 10-Q 17 Nov 14 2014 Q3 Quarterly report Financial data

Document_and_Entity_Informatio

Document and Entity Information	9 Months Ended
	Sep. 30, 2014	Nov. 14, 2014
Document Type	'10-Q	'
Amendment Flag	'false	'
Document Period End Date	30-Sep-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	'	29,280,085
Entity Current Reporting Status	'Yes	'
Entity Voluntary Filers	'No	'
Entity Well Known Seasoned Issuer	'No	'
Document Fiscal Year Focus	'2014	'
Document Fiscal Period Focus	'Q3	'

Condensed_Consolidated_Balance

Condensed Consolidated Balance Sheets (USD $)	Sep. 30, 2014	Dec. 31, 2013
Current assets:	'	'
Cash and cash equivalents	$267	$82,295
Accounts receivable - joint interest billing	3,595	12,505
Accounts receivable - oil and gas sales	124,477	163,321
Prepaid expenses and other	52,988	47,661
Oil inventory	20,833	20,833
Deferred costs	239,241	0
Total current assets	441,401	326,615
Proved oil and natural gas properties, full cost method of accounting, net of accumulated depletion, depreciation, amortization and impairment of $23,376,865 and $22,989,672	17,877,014	18,263,854
Unproved oil and natural gas properties	775,774	724,266
Equipment and other fixed assets, net of accumulated depreciation of $1,177,193 and $1,172,907	1,038	5,324
Total assets	19,095,227	19,320,059
Current liabilities:	'	'
Accounts payable and accrued liabilities	4,751,213	4,254,749
Revenue payable	480,104	3,522,279
Accounts payable - related parties	114,226	99,733
Accrued interest	203,153	532,392
Insurance note payable	36,384	31,102
Notes payable - related parties net of discounts of $0 and $590,015 respectively	765,911	3,220,896
Note payable, net of discounts of $0 and $256,023 respectively	2,708,766	2,320,523
Taxes due on dissolution of subsidiary	32,752	32,752
Total current liabilities	9,092,509	14,014,426
Debenture payable - related parties, net of discounts of $59,246 and $0 respectively	3,579,877	0
Note payable, net of discounts of $140,195 and $0 respectively	1,149,366	0
Derivative liability	7,914,338	0
Asset retirement obligation	2,344,489	2,165,521
Total liabilities	24,080,579	16,179,947
Commitments and contingencies	0	0
Stockholders' equity :	'	'
Common stock Authorized - 250,000,000 shares with par value of $0.001 - 29,280,085 and 26,405,085 shares issued and outstanding respectively	29,280	26,405
Treasury stock	-150,000	-150,000
Additional paid-in capital	25,299,077	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)	-34,246,346	-26,693,360
Accumulated other comprehensive income	4,082,637	4,082,637
Total stockholders' equity	-4,985,352	3,140,112
Total liabilities and stockholders' equity	$19,095,227	$19,320,059

Condensed_Consolidated_Balance1

Condensed Consolidated Balance Sheets (Parenthetical) (USD $)	Sep. 30, 2014	Dec. 31, 2013
Accumulated Depreciation, Depletion and Amortization, Proved Oil and Gas Properties	$23,376,865	$22,989,672
Equipment and other fixed assets, net of accumulated depreciation	1,177,193	1,172,907
Notes payable related parties net of discounts	0	590,015
Note payable, net of discounts	0	256,023
Debenture payable-related parties, net of discounts	59,246	0
Note payable, net of discounts Non current	140,195	0
Common Stock, Shares Authorized	250,000,000	250,000,000
Common Stock, Par Value Per Share	$0.00	$0.00
Common Stock, Shares, Issued	29,280,085	26,405,085
Common Stock, Shares, Outstanding	29,280,085	26,405,085
Quasi-reorganization stated capital reduced by an accumulated deficit	$2,015,495	$2,015,495

Condensed_Consolidated_Stateme

Condensed Consolidated Statements of Operations and Other Comprehensive Loss (USD $)	3 Months Ended		9 Months Ended
	Sep. 30, 2014	Sep. 30, 2013	Sep. 30, 2014	Sep. 30, 2013
Revenues:	'	'	'	'
Oil and gas sales	$379,780	$841,458	$1,425,277	$2,713,947
Operations income	0	11,923	0	39,989
Total Revenue	379,780	853,381	1,425,277	2,753,936
Expenses:	'	'	'	'
Lease operating expense	179,336	227,256	460,194	742,996
Production taxes	18,057	92,747	98,911	270,136
General and administrative	330,869	336,416	978,947	1,193,489
Foreign exchange loss (gain)	-16,384	229,110	-15,468	-463,176
Depletion, depreciation and amortization - oil and gas properties	103,828	206,937	387,193	696,487
Accretion of asset retirement obligation	59,656	32,903	178,968	129,488
Depreciation and amortization - other assets	1,090	4,881	4,286	14,643
Total expenses	676,452	1,130,250	2,093,031	2,584,063
Other (Income) Expense	'	'	'	'
Interest and financing costs	143,210	319,302	261,681	842,174
Related party interest	346,843	263,254	1,022,970	752,313
Gain/loss on derivative liability	6,427,146	0	6,427,146	0
Gain on settlement of disputed revenue payables	0	0	-2,052,451	0
Loss on debt extinguishment	817,396	0	1,225,886	39,953
Total other (income) expense	7,734,595	582,556	6,885,232	1,634,440
Net loss	-8,031,267	-859,425	-7,552,986	-1,464,567
Other comprehensive income (loss)- net of tax:	'	'	'	'
Foreign exchange translation	0	202,545	0	-463,176
Other comprehensive income (loss)	0	202,545	0	-463,176
Comprehensive loss	($8,031,267)	($656,880)	($7,552,986)	($1,927,743)
Basic and diluted loss per share	($0.28)	($0.03)	($0.28)	($0.06)
Basic	28,748,835	26,405,085	27,194,920	26,405,085
Diluted	28,748,835	26,405,085	27,194,920	26,405,085

Condensed_Consolidated_Stateme1

Condensed Consolidated Statements of Cash Flows (USD $)	9 Months Ended
	Sep. 30, 2014	Sep. 30, 2013
Cash flows from operating activities:	'	'
Net income (loss)	($7,552,986)	($1,464,567)
Adjustments to reconcile net income(loss) to net cash provided by (used in) operating activities:	'	'
Depreciation, depletion and amortization	391,479	711,130
Accretion of asset retirement obligation	178,968	129,488
Foreign exchange loss (gain)	-15,468	-463,176
Amortization of deferred financing costs	59,175	145,661
Amortization of debt discount	147,327	953,837
Related party amortization of debt discount	530,769	9,994
Stock issued in payment of interest	2,500	0
Loss on debt extinguishment	1,225,886	39,953
Gain/loss on derivative liability	6,427,146	0
Gain on settlement of disputed revenue	-2,052,451	0
Changes in components of working capital:	'	'
Accounts receivable	47,754	-40,155
Oil inventory	0	4,676
Prepaid expenses and other current assets	35,523	18,446
Accounts payable, revenues payable, accrued liabilities and interest	918,213	-185,486
Net cash provided by (used in) operating activities	343,835	-140,199
Cash flows from investing activities:	'	'
Purchase and development of oil and gas properties	-46,944	-130,847
Net cash used in investing activities	-46,944	-130,847
Cash flows from financing activities:	'	'
Payment of notes payable	-994,232	-1,811,700
Payment of notes payable-related party	-45,000	-74,444
Proceeds from issuance of notes payable	861,232	1,749,568
Proceeds from issuance of notes payable- related party	0	505,000
Payment of deferred financing costs	-200,919	-125,000
Net cash provided by (used in) financing activities	-378,919	243,424
Increase in cash and cash equivalents	-82,028	-27,622
Cash beginning of period	82,295	31,177
Cash end of period	267	3,555
Supplemental disclosures:	'	'
Interest paid	235,804	330,663
Taxes paid	0	7,500
Non cash investing and financing activities:	'	'
Purchase of oil and gas properties in accounts payable	4,917	139,143
Debt issued in settlement of revenue payables	989,751	0
Financing Fees for shares	52,500	606,320
Debt discount due to fees related to Hillair debt	132,428	0
Derivative liability Palo Verde debt	627,478	0
Interest Transferred to debt principle	741,385	0
Prepaid insurance financed with debt	40,850	0
Asset retirement obligation revision	$0	$39,573

Significant_accounting_policie

Significant accounting policies	9 Months Ended
	Sep. 30, 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 nine-month periods ended September 30, 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 nine-month period ended September 30, 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	9 Months Ended
	Sep. 30, 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 $7,552,986 for the nine months ended September 30, 2014. The Company has a working capital deficit of $8,651,108 and an accumulated deficit of $34,246,346 at September 30, 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	9 Months Ended
	Sep. 30, 2014
Notes Payable [Text Block]	'
	3	Notes Payable
		Notes payable and long-term debt as of September 30, 2014 and December 31, 2013 consisted of the following:
			30-Sep-14		31-Dec-13
			$		$
		Note payable – Citizens Bank of Oklahoma	64,688		65,921
		Note payable – Eaton Oil Tools	32,239		40,075
		Note payable – TCA Global Credit Master Fund	-		2,096,610
		Discount on TCA Global Credit Master Fund note	-		(256,023	)
		Note payable – Leede Financial	358,472		373,940
		Note payable – Hillair Capital Investments	2,589,561		-
		Discount on Hillair Capital Investment debt	(140,195	)
		Note payable – Louisiana Oil Properties	989,751		-
		Total third-party notes payable and long-term debt	3,894,516		2,320,523
		Debenture payable – Palo Verde (Note 4)	3,639,123		3,000,000
		Discount on Palo Verde debt	(59,247	)	(590,015	)
		Note payable – TPC Energy	414,183		414,183
		Note payable – Mike Paulk	330,000		375,000
		Note payable – Other	21,728		21,728
		Total related party notes payable and long-term debt	4,345,787		3,220,896
		Total notes payable and long-term debt	8,240,304		5,541,419
		Less: Current portion	(3,511,061	)	(5,541,419	)
		Total notes payable and long-term debt, net of current portion	4,729,243		-
	As of September 30, 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 September 30, 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 September 30, 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 $45,000 were made during the nine months ended September 30, 2014.
	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 $15,468 during the nine months ended September 30, 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. During the nine months ended September 30, 2014, the Company paid $7,836 of principal payments on the loan. At November 14, 2014, eight payments were past due.
	On April 14, 2014 the Company entered into a loan agreement with Pinon Energy providing for an advance of $250,000 to be used for working capital purposes. The loan was 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 note and all interest totaling $274,799 were paid on July 7, 2014. Pinon Energy also received 250,000 shares of Company common stock as additional interest.
	On June 24, 2014, the Company entered into a $989,751 note payable with Louisiana Oil Properties, Inc. together with simple interest at 4% per annum due on or before October 31, 2014. This promissory note was the result of a settlement of disputed revenue payables resulting in a gain recognized by the Company of $2,052,451.
	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 comprised the agreed upon outstanding amount of $2,196,609. Principal and interest in the amount of $371,459 was 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.
	During the nine months ended September 30, 2014, payments totaling $645,211 were made to TCA debts. Prior to the sixth amendment, $47,533 of debt discount were amortized.
	Prior to July 3, 2014, TCA Global Credit Master Fund LP (“TCA”) assigned to Hillair Capital Investments, LP (“Hillair”), the Second Replacement, Amended and Restated Senior Secured Redeemable Debenture, with a current principal amount of $1,753,600 ($1,651,399 principle and $102,262 in interest) issued to TCA by the Company as of June 28, 2013 (the “Amended Debenture”), along with certain mortgages, dated as of December 29, 2011 and September 4, 2012, and as filed in St. Charles Parish, Louisiana (the “Mortgages”). On July 3, 2014, the Company and Hillair also entered into an Amendment Agreement (the “Amendment”), amending the Amended Debenture by (i) increasing the interest rate to 16% per annum, (ii) extending the maturity date to January 1, 2016 and (iii) revising the monthly principal payments to be quarterly principal payments.
	On July 3, 2014 the Company entered into a Securities Purchase Agreement (the "Hillair Purchase Agreement") with Hillair Capital Investments, LP ("Hillair"), pursuant to which the Company (i) issued to Hillair an 8% Original Issue Discount Senior Secured Convertible Debenture (the “OID Debenture”) in the principal amount of $835,899 convertible into shares of the Company’s common stock at $0.10 per share (subject to adjustment therein); and (ii) issued to Hillair 28,000,000 Series A Common Stock purchase Warrants exercisable for 5 years at $0.12 per share (subject to adjustment therein) and 19,641,002 Series B Common Stock purchase Warrants exercisable for 2 years at $0.10 per share (subject to adjustment therein). Of the $835,899 only $611,232 was received in cash by the company after the OID and other financing fees. The lender paid $44,997 in deferred financing costs directly to other parties.
	The Company evaluated the conversion feature and warrants and determined that it should be accounted for as derivative liabilities based on a reset provision clause that allows the conversion or exercise price of the instruments to be adjusted for any sale of common stock at a lower price than the existing price.
	The Company evaluated the transaction under FASB ASC 470-50 and FASB ASC 470-60 and concluded the revised terms constituted a debt extinguishment, rather than a debt modification or a troubled debt restructuring. The fair value of the warrants issued along with the fees paid directly to Hillair were recorded as a loss on extinguishment of debt of $817,396, of which $727,286 was the fair value of the warrants issued to Hillair. The fair value of the conversion feature of $132,428 was recorded as a debt discount to the loan.
	The Company’s obligations under the OID Debenture are secured by substantially all of the assets of the Company and its wholly-owned subsidiary, Gothic Resources, Inc. (“Gothic”) pursuant to the terms of a Security Agreement, dated as of July 3, 2014 (the “Security Agreement”), and Gothic has guaranteed the performance of the Company’s obligations under the terms of a Subsidiary Guarantee Agreement executed by Gothic on the same date (the “Subsidiary Guarantee”). In addition, the Company’s obligations to the OID Debenture and the Amended Debenture are secured by the Mortgage Documents.
	Interest on the Amended Debenture and on the OID Debenture is payable by the Company on a quarterly basis commencing January 1, 2015. Principal on the Amended Debenture and on the OID
	Debenture is payable quarterly commencing on March 1, 2015 with both debentures maturing on January 1, 2016. The Company may prepay the Amended Debenture with a 3 day notice. Subject to the Equity Conditions set forth in the OID Debenture, the OID Debenture is redeemable at any time after the 6 month anniversary of the OID Debenture at 120% of the outstanding principal balance.
	At any time prior to the payment of the OID Debenture in full, Hillair may elect, in its sole discretion, to convert all or part of the principal amount of the OID Debenture into shares of common stock of the Company at a conversion rate of US$0.10 per share (subject to adjustment therein). The OID
	Debenture contains customary adjustment provisions for certain corporate events, such as the payment of stock dividends and stock splits. The OID Debenture also contains customary events of default.
	Pursuant to the Hillair Purchase Agreement and until the 12 month anniversary of the closing on the OID Debenture, Hillair may purchase from the Company additional Debentures with an aggregate subscription amount of up to $2,500,000 (for a principal amount of $2,800,000) and up to 28,000,000 Series A Warrants and 19,641,002 Series B Warrants consistent with the terms set forth above.
	During the nine months ended September 30, 2014 the company recorded a total debt discount of $221,989 ($89,561 OID and $132,428 from the embedded conversion feature) and recorded amortization of $81,794.
	Deferred Financing Costs
	During the nine months ended September 30, 2014, the Company paid in cash $200,919, issued stock at a fair value of $52,500 and the lender paid $44,997 directly to the other parties for deferred financing costs. For the nine months ended September 30, 2014 and 2013, amortization of the deferred financing costs totaled $59,175 and 145,661, respectively.

Convertible_Debentures

Convertible Debentures	9 Months Ended
	Sep. 30, 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 $1,000,000 convertible Palo Verde debt issued on December 31, 2012. On July 1, 2014, the due date of the convertible debt was extended to January 2, 2016 with all accrued and unpaid interest totaling $639,123 being added to the outstanding principal amount. 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. The Company amortized $530,769 of debt discount during the nine months ended September 30, 2014.
	On August 14, 2013, the exchange that the Company was listed on allowed for stock transactions to be entered into at a price lower than $0.10 per share. At this date, this triggered derivative accounting based on a reset provision clause that allowed the conversion price of the instruments to be adjusted for any sale of common stock at a lower price than the existing conversion price. The initial derivative liability on the conversion feature was $627,478 and was recorded as a day 1 reduction of additional paid-in-capital.

Common_Stock

Common Stock	9 Months Ended
	Sep. 30, 2014
Common Stock [Text Block]	'
	5	Common Stock
	On July 18, 2014 the Company issued a total 2,875,000 shares of its common stock. 2,625,000 shares, valued at $52,500, were in payment of financing fees and 250,000 shares, valued at $2,500, were in consideration of interest.

Fair_Value_of_Financial_Instru

Fair Value of Financial Instruments and Derivatives	9 Months Ended
	Sep. 30, 2014
Fair Value of Financial Instruments and Derivatives [Text Block]	'
	6	Fair Value of Financial Instruments and Derivatives
	As defined in ASC 820, fair value is the price that would be received in the sale of an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The Company utilizes market data or assumptions that market participants would use in pricing the asset or liability, including assumptions about risk and the risks inherent in the inputs to the valuation technique. These inputs can be readily observable, market corroborated, or generally unobservable. The Company classifies fair value balances based upon observability of those inputs. ASC 820 establishes a fair value hierarchy that prioritizes the inputs used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (level 1 measurement), pricing inputs are other than quoted prices in active markets, but are either directly or indirectly observable and are valued using models or other valuation methodologies (level 2 measurement), and the lowest priority to unobservable inputs (level 3 measurement). There were no changes in valuation techniques or reclassifications of fair value measurements between levels 1, 2 or 3 during the nine months ended September 30, 2014.
	The carrying values of the Company’s accounts receivable, accounts payable and accrued liabilities represent the estimated fair value due to the short-term nature of the accounts.
	The estimated fair value of the Company’s non-current derivative liabilities, which are related to common shares issuable pursuant to convertible debentures and to warrants issued in connection with those debentures, were estimated using a various option pricing model utilizing assumptions related to the contractual term of the instruments, estimated volatility of the price of the Company’s common stock, interest rates, among other items (ASC 820, Fair Value Measurements (“ASC 820”) fair value hierarchy Level 3). A comparison of the assumptions used in calculating estimated fair value of derivative liabilities at the issue date and as of September 30, 2014 is as follows:
				Upon		September 30,
				Issuance		2014
		Warrants
		Volatility – range		281.39%		294.99%
		Contractual term		2 - 5 years		2 - 5 years
		Exercise price	$	0.10 - $0.12	$	0.10 - $0.12
		Number of warrants in aggregate		47,641,002		47,641,002
		Shares Upon Conversion of Convertible Debt
				261.51% -
		Volatility – range		305.08%		328.76%
		Contractual term		1 - 2 years		1 - 2 years
		Exercise price	$	0.1	$	0.1
		Number of shares in aggregate		38,358,998		38,358,998
	The following table provides a summary of the changes in fair value, including net transfers in and/or out, of the derivative financial instruments, measured at fair value on a recurring basis using significant unobservable inputs:
		Balance at December 31, 2013	$	-
		Fair value of derivative liabilities at issuance		1,487,192
		Derivative losses included in other expense		6,427,146
		Balance at September 30, 2014	$	7,914,338
	Fair Value Measurements
	As required by ASC 820, financial assets and liabilities are classified based on the lowest level of input that is significant to the fair value measurement. Our assessment of the significance of a particular input to the fair value measurement requires judgment and may affect the valuation of the fair value of assets and liabilities and their placement within the fair value hierarchy levels. The following table summarizes the valuation of our investments and financial instruments by ASC 820 pricing levels as of September 30, 2014:
				Fair value measurement
				Level 1		Level 2	Level 3	Total
		Derivative liabilities		-		-	7,914,338	7,914,338
		Total		-		-	7,914,338	7,914,338

Asset_retirement_obligations

Asset retirement obligations	9 Months Ended
	Sep. 30, 2014
Asset retirement obligations [Text Block]	'
	7	Asset retirement obligations
	The Company’s asset retirement obligations relate to plugging and abandonment of oil and gas properties. The components of the change in the Company’s asset retirement obligations as of September 30, 2014 and December 31, 2013 are shown below.
			30-Sep-14	31-Dec-13
			$	$
		Asset retirement obligations, January 1	2,165,521	2,392,369
		Additions and revisions	-	(370,566	)
		Settlements and disposals	-	(116,898	)
		Accretion expense	178,968	260,616
		Asset retirement obligations, December 31	2,344,489	2,165,521

Notes_Payable_Tables

Notes Payable (Tables)	9 Months Ended
	Sep. 30, 2014
Schedule Of Notes Payable And Long-term Debt [Table Text Block]	'
			30-Sep-14		31-Dec-13
			$		$
		Note payable – Citizens Bank of Oklahoma	64,688		65,921
		Note payable – Eaton Oil Tools	32,239		40,075
		Note payable – TCA Global Credit Master Fund	-		2,096,610
		Discount on TCA Global Credit Master Fund note	-		(256,023	)
		Note payable – Leede Financial	358,472		373,940
		Note payable – Hillair Capital Investments	2,589,561		-
		Discount on Hillair Capital Investment debt	(140,195	)
		Note payable – Louisiana Oil Properties	989,751		-
		Total third-party notes payable and long-term debt	3,894,516		2,320,523
		Debenture payable – Palo Verde (Note 4)	3,639,123		3,000,000
		Discount on Palo Verde debt	(59,247	)	(590,015	)
		Note payable – TPC Energy	414,183		414,183
		Note payable – Mike Paulk	330,000		375,000
		Note payable – Other	21,728		21,728
		Total related party notes payable and long-term debt	4,345,787		3,220,896
		Total notes payable and long-term debt	8,240,304		5,541,419
		Less: Current portion	(3,511,061	)	(5,541,419	)
		Total notes payable and long-term debt, net of current portion	4,729,243		-

Fair_Value_of_Financial_Instru1

Fair Value of Financial Instruments and Derivatives (Tables)	9 Months Ended
	Sep. 30, 2014
Schedule of Carrying Values and Estimated Fair Values of Debt Instruments [Table Text Block]	'
				Upon		September 30,
				Issuance		2014
		Warrants
		Volatility – range		281.39%		294.99%
		Contractual term		2 - 5 years		2 - 5 years
		Exercise price	$	0.10 - $0.12	$	0.10 - $0.12
		Number of warrants in aggregate		47,641,002		47,641,002
		Shares Upon Conversion of Convertible Debt
				261.51% -
		Volatility – range		305.08%		328.76%
		Contractual term		1 - 2 years		1 - 2 years
		Exercise price	$	0.1	$	0.1
		Number of shares in aggregate		38,358,998		38,358,998
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Table Text Block]	'
		Balance at December 31, 2013	$	-
		Fair value of derivative liabilities at issuance		1,487,192
		Derivative losses included in other expense		6,427,146
		Balance at September 30, 2014	$	7,914,338
Schedule of Derivative Liabilities at Fair Value [Table Text Block]	'
				Fair value measurement
				Level 1		Level 2	Level 3	Total
		Derivative liabilities		-		-	7,914,338	7,914,338
		Total		-		-	7,914,338	7,914,338

Asset_retirement_obligations_T

Asset retirement obligations (Tables)	9 Months Ended
	Sep. 30, 2014
Schedule of Change in Asset Retirement Obligation [Table Text Block]	'
			30-Sep-14	31-Dec-13
			$	$
		Asset retirement obligations, January 1	2,165,521	2,392,369
		Additions and revisions	-	(370,566	)
		Settlements and disposals	-	(116,898	)
		Accretion expense	178,968	260,616
		Asset retirement obligations, December 31	2,344,489	2,165,521

Going_Concern_Liquidity_and_Ca1

Going Concern, Liquidity and Capital Resources (Narrative) (Details) (USD $)	9 Months Ended
	Sep. 30, 2014
Going Concern, Liquidity And Capital Resources 1	$7,552,986
Going Concern, Liquidity And Capital Resources 2	8,651,108
Going Concern, Liquidity And Capital Resources 3	$34,246,346

Notes_Payable_Narrative_Detail

Notes Payable (Narrative) (Details) (USD $)	9 Months Ended
	Sep. 30, 2014
	D
	Y
	M
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	45,000
Notes Payable 7	15,468
Notes Payable 8	48,000
Notes Payable 9	4,119
Notes Payable 10	6.00%
Notes Payable 11	7,836
Notes Payable 12	250,000
Notes Payable 13	268,000
Notes Payable 14	12.00%
Notes Payable 15	274,799
Notes Payable 16	250,000
Notes Payable 17	989,751
Notes Payable 18	4.00%
Notes Payable 19	2,052,451
Notes Payable 20	3,000,000
Notes Payable 21	1,000,000
Notes Payable 22	65.00%
Notes Payable 23	200,000
Notes Payable 24	2,196,609
Notes Payable 25	371,459
Notes Payable 26	200,000
Notes Payable 27	208,490
Notes Payable 28	645,211
Notes Payable 29	47,533
Notes Payable 30	1,753,600
Notes Payable 31	1,651,399
Notes Payable 32	102,262
Notes Payable 33	16.00%
Notes Payable 34	8.00%
Notes Payable 35	835,899
Notes Payable 36	$0.10
Notes Payable 37	28,000,000
Notes Payable 38	5
Notes Payable 39	$0.12
Notes Payable 40	19,641,002
Notes Payable 41	2
Notes Payable 42	$0.10
Notes Payable 43	835,899
Notes Payable 44	611,232
Notes Payable 45	44,997
Notes Payable 46	817,396
Notes Payable 47	727,286
Notes Payable 48	132,428
Notes Payable 49	3
Notes Payable 50	6
Notes Payable 51	120.00%
Notes Payable 52	$0.10
Notes Payable 53	12
Notes Payable 54	2,500,000
Notes Payable 55	2,800,000
Notes Payable 56	28,000,000
Notes Payable 57	19,641,002
Notes Payable 58	221,989
Notes Payable 59	89,561
Notes Payable 60	132,428
Notes Payable 61	81,794
Notes Payable 62	200,919
Notes Payable 63	52,500
Notes Payable 64	44,997
Notes Payable 65	$59,175
Notes Payable 66	145,661

Convertible_Debentures_Narrati

Convertible Debentures (Narrative) (Details) (USD $)	9 Months Ended
	Sep. 30, 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	639,123
Convertible Debentures 7	530,769
Convertible Debentures 8	$0.10
Convertible Debentures 9	$627,478
Convertible Debentures 10	1

Common_Stock_Narrative_Details

Common Stock (Narrative) (Details) (USD $)	9 Months Ended
	Sep. 30, 2014
Common Stock 1	2,875,000
Common Stock 2	2,625,000
Common Stock 3	$52,500
Common Stock 4	250,000
Common Stock 5	$2,500

Schedule_Of_Notes_Payable_And_

Schedule Of Notes Payable And Long-term Debt (Details) (USD $)	9 Months Ended
	Sep. 30, 2014
Notes Payable Schedule Of Notes Payable And Long-term Debt 1	$64,688
Notes Payable Schedule Of Notes Payable And Long-term Debt 2	65,921
Notes Payable Schedule Of Notes Payable And Long-term Debt 3	32,239
Notes Payable Schedule Of Notes Payable And Long-term Debt 4	40,075
Notes Payable Schedule Of Notes Payable And Long-term Debt 5	0
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	358,472
Notes Payable Schedule Of Notes Payable And Long-term Debt 10	373,940
Notes Payable Schedule Of Notes Payable And Long-term Debt 11	2,589,561
Notes Payable Schedule Of Notes Payable And Long-term Debt 12	0
Notes Payable Schedule Of Notes Payable And Long-term Debt 13	-140,195
Notes Payable Schedule Of Notes Payable And Long-term Debt 14	989,751
Notes Payable Schedule Of Notes Payable And Long-term Debt 15	0
Notes Payable Schedule Of Notes Payable And Long-term Debt 16	3,894,516
Notes Payable Schedule Of Notes Payable And Long-term Debt 17	2,320,523
Notes Payable Schedule Of Notes Payable And Long-term Debt 18	3,639,123
Notes Payable Schedule Of Notes Payable And Long-term Debt 19	3,000,000
Notes Payable Schedule Of Notes Payable And Long-term Debt 20	-59,247
Notes Payable Schedule Of Notes Payable And Long-term Debt 21	-590,015
Notes Payable Schedule Of Notes Payable And Long-term Debt 22	414,183
Notes Payable Schedule Of Notes Payable And Long-term Debt 23	414,183
Notes Payable Schedule Of Notes Payable And Long-term Debt 24	330,000
Notes Payable Schedule Of Notes Payable And Long-term Debt 25	375,000
Notes Payable Schedule Of Notes Payable And Long-term Debt 26	21,728
Notes Payable Schedule Of Notes Payable And Long-term Debt 27	21,728
Notes Payable Schedule Of Notes Payable And Long-term Debt 28	4,345,787
Notes Payable Schedule Of Notes Payable And Long-term Debt 29	3,220,896
Notes Payable Schedule Of Notes Payable And Long-term Debt 30	8,240,304
Notes Payable Schedule Of Notes Payable And Long-term Debt 31	5,541,419
Notes Payable Schedule Of Notes Payable And Long-term Debt 32	-3,511,061
Notes Payable Schedule Of Notes Payable And Long-term Debt 33	-5,541,419
Notes Payable Schedule Of Notes Payable And Long-term Debt 34	4,729,243
Notes Payable Schedule Of Notes Payable And Long-term Debt 35	$0

Schedule_of_Carrying_Values_an

Schedule of Carrying Values and Estimated Fair Values of Debt Instruments (Details) (USD $)	9 Months Ended
	Sep. 30, 2014
	Y
Fair Value Of Financial Instruments And Derivatives Schedule Of Carrying Values And Estimated Fair Values Of Debt Instruments 1	281.39%
Fair Value Of Financial Instruments And Derivatives Schedule Of Carrying Values And Estimated Fair Values Of Debt Instruments 2	294.99%
Fair Value Of Financial Instruments And Derivatives Schedule Of Carrying Values And Estimated Fair Values Of Debt Instruments 3	$2
Fair Value Of Financial Instruments And Derivatives Schedule Of Carrying Values And Estimated Fair Values Of Debt Instruments 4	5
Fair Value Of Financial Instruments And Derivatives Schedule Of Carrying Values And Estimated Fair Values Of Debt Instruments 5	2
Fair Value Of Financial Instruments And Derivatives Schedule Of Carrying Values And Estimated Fair Values Of Debt Instruments 6	5
Fair Value Of Financial Instruments And Derivatives Schedule Of Carrying Values And Estimated Fair Values Of Debt Instruments 7	0.1
Fair Value Of Financial Instruments And Derivatives Schedule Of Carrying Values And Estimated Fair Values Of Debt Instruments 8	0.12
Fair Value Of Financial Instruments And Derivatives Schedule Of Carrying Values And Estimated Fair Values Of Debt Instruments 9	0.1
Fair Value Of Financial Instruments And Derivatives Schedule Of Carrying Values And Estimated Fair Values Of Debt Instruments 10	0.12
Fair Value Of Financial Instruments And Derivatives Schedule Of Carrying Values And Estimated Fair Values Of Debt Instruments 11	47,641,002
Fair Value Of Financial Instruments And Derivatives Schedule Of Carrying Values And Estimated Fair Values Of Debt Instruments 12	47,641,002
Fair Value Of Financial Instruments And Derivatives Schedule Of Carrying Values And Estimated Fair Values Of Debt Instruments 13	261.51%
Fair Value Of Financial Instruments And Derivatives Schedule Of Carrying Values And Estimated Fair Values Of Debt Instruments 14	0
Fair Value Of Financial Instruments And Derivatives Schedule Of Carrying Values And Estimated Fair Values Of Debt Instruments 15	305.08%
Fair Value Of Financial Instruments And Derivatives Schedule Of Carrying Values And Estimated Fair Values Of Debt Instruments 16	328.76%
Fair Value Of Financial Instruments And Derivatives Schedule Of Carrying Values And Estimated Fair Values Of Debt Instruments 17	1
Fair Value Of Financial Instruments And Derivatives Schedule Of Carrying Values And Estimated Fair Values Of Debt Instruments 18	2
Fair Value Of Financial Instruments And Derivatives Schedule Of Carrying Values And Estimated Fair Values Of Debt Instruments 19	1
Fair Value Of Financial Instruments And Derivatives Schedule Of Carrying Values And Estimated Fair Values Of Debt Instruments 20	2
Fair Value Of Financial Instruments And Derivatives Schedule Of Carrying Values And Estimated Fair Values Of Debt Instruments 21	0.1
Fair Value Of Financial Instruments And Derivatives Schedule Of Carrying Values And Estimated Fair Values Of Debt Instruments 22	0.1
Fair Value Of Financial Instruments And Derivatives Schedule Of Carrying Values And Estimated Fair Values Of Debt Instruments 23	38,358,998
Fair Value Of Financial Instruments And Derivatives Schedule Of Carrying Values And Estimated Fair Values Of Debt Instruments 24	$38,358,998

Schedule_of_Fair_Value_Assets_

Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis (Details) (USD $)	9 Months Ended
	Sep. 30, 2014
Fair Value Of Financial Instruments And Derivatives Schedule Of Fair Value, Assets And Liabilities Measured On Recurring Basis 1	$0
Fair Value Of Financial Instruments And Derivatives Schedule Of Fair Value, Assets And Liabilities Measured On Recurring Basis 2	1,487,192
Fair Value Of Financial Instruments And Derivatives Schedule Of Fair Value, Assets And Liabilities Measured On Recurring Basis 3	6,427,146
Fair Value Of Financial Instruments And Derivatives Schedule Of Fair Value, Assets And Liabilities Measured On Recurring Basis 4	$7,914,338

Schedule_of_Derivative_Liabili

Schedule of Derivative Liabilities at Fair Value (Details) (USD $)	9 Months Ended
	Sep. 30, 2014
Fair Value Of Financial Instruments And Derivatives Schedule Of Derivative Liabilities At Fair Value 1	$0
Fair Value Of Financial Instruments And Derivatives Schedule Of Derivative Liabilities At Fair Value 2	0
Fair Value Of Financial Instruments And Derivatives Schedule Of Derivative Liabilities At Fair Value 3	7,914,338
Fair Value Of Financial Instruments And Derivatives Schedule Of Derivative Liabilities At Fair Value 4	7,914,338
Fair Value Of Financial Instruments And Derivatives Schedule Of Derivative Liabilities At Fair Value 5	0
Fair Value Of Financial Instruments And Derivatives Schedule Of Derivative Liabilities At Fair Value 6	0
Fair Value Of Financial Instruments And Derivatives Schedule Of Derivative Liabilities At Fair Value 7	7,914,338
Fair Value Of Financial Instruments And Derivatives Schedule Of Derivative Liabilities At Fair Value 8	$7,914,338

Schedule_of_Change_in_Asset_Re

Schedule of Change in Asset Retirement Obligation (Details) (USD $)	9 Months Ended
	Sep. 30, 2014
Asset Retirement Obligations Schedule Of Change In Asset Retirement Obligation 1	$2,165,521
Asset Retirement Obligations Schedule Of Change In Asset Retirement Obligation 2	2,392,369
Asset Retirement Obligations Schedule Of Change In Asset Retirement Obligation 3	0
Asset Retirement Obligations Schedule Of Change In Asset Retirement Obligation 4	-370,566
Asset Retirement Obligations Schedule Of Change In Asset Retirement Obligation 5	0
Asset Retirement Obligations Schedule Of Change In Asset Retirement Obligation 6	-116,898
Asset Retirement Obligations Schedule Of Change In Asset Retirement Obligation 7	178,968
Asset Retirement Obligations Schedule Of Change In Asset Retirement Obligation 8	260,616
Asset Retirement Obligations Schedule Of Change In Asset Retirement Obligation 9	2,344,489
Asset Retirement Obligations Schedule Of Change In Asset Retirement Obligation 10	$2,165,521