Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Mar. 27, 2014 | |
Document and Entity Information | ' | ' |
Entity Registrant Name | 'CHANCELLOR GROUP INC. | ' |
Document Type | '10-K | ' |
Document Period End Date | 31-Dec-13 | ' |
Amendment Flag | 'false | ' |
Entity Central Index Key | '0000894544 | ' |
Current Fiscal Year End Date | '--12-31 | ' |
Entity Common Stock, Shares Outstanding | ' | 74,250,030 |
Entity Filer Category | 'Smaller Reporting Company | ' |
Entity Current Reporting Status | 'Yes | ' |
Entity Voluntary Filers | 'No | ' |
Entity Well-known Seasoned Issuer | 'No | ' |
Document Fiscal Year Focus | '2013 | ' |
Document Fiscal Period Focus | 'FY | ' |
Entity Public Float | $3,721,122 | ' |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
Current Assets | ' | ' |
Cash | $589,901 | $1,700,508 |
Restricted Cash | 25,000 | 25,000 |
Revenue Receivable | 12,326 | 5,500 |
Income Tax Receivable | 12,558 | 7,753 |
Prepaid Expenses | 18,069 | 8,284 |
Total Current Assets | 657,854 | 1,747,045 |
Property and Equipment: | ' | ' |
Leasehold Costs - Developed | 57,580 | 57,580 |
Furniture, Fixtures, & Office Equipment | 4,454 | 0 |
Accumulated Depreciation and Amortization | -29,752 | -23,835 |
Total Property and Equipment, net | 32,282 | 33,745 |
Other Assets: | ' | ' |
Goodwill | 427,200 | 0 |
Deposits | 250 | 250 |
Total Other Assets | 427,450 | 250 |
Total Assets | 1,117,586 | 1,781,040 |
Current Liabilities: | ' | ' |
Accounts Payable | 99,866 | 34,175 |
Contributions Payable | 90,400 | 0 |
Accrued Expenses | 2,473 | 169 |
Total Current Liabilities | 192,739 | 34,344 |
Stockholders' Equity | ' | ' |
Series B Preferred Stock: $1,000 Par Value 250,000 shares authorized,none outstanding | 0 | 0 |
Common Stock; $.001 par value, 250,000,000 shares authorized ,73,760,030 and 69,560,030 shares issued and outstanding, respectively | 73,760 | 69,560 |
Paid-in Capital | 3,813,853 | 3,539,053 |
Retained Earnings (Deficit) | -2,773,659 | -1,829,517 |
Total Chancellor, Inc. Stockholders' Equity | 1,113,955 | 1,779,096 |
Non-controlling Minority Interest (Deficit) in Pimovi, Inc. | -274,157 | -32,400 |
Non-controlling Minority Interest in The Fuelist, LLC | 85,049 | 0 |
Total Stockholders' Equity | 924,846 | 1,746,696 |
Total Liabilities and Stockholders' Equity | $1,117,586 | $1,781,040 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets Parentheticals (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
Parentheticals | ' | ' |
Series B Preferred Stock Par Value | $1,000 | $1,000 |
Series B Preferred stock shares authorized | 250,000 | 250,000 |
Common Stock par value | $0.00 | $0.00 |
Common Stock Shares authorized | 250,000,000 | 250,000,000 |
Common Stock shares issued | 73,760,030 | 69,560,030 |
Common Stock shares outstanding | 73,760,030 | 69,560,030 |
Consolidated_Statements_of_Ope
Consolidated Statements of Operations (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Revenues: | ' | ' |
Oil, net of royalties paid | $55,400 | $91,377 |
Technology Segment Revenues | 0 | 0 |
Other Operating Income | 53,337 | 18,750 |
Gross Revenues | 108,737 | 110,127 |
Operating Expenses: | ' | ' |
Lease Operating Expenses | 39,004 | 38,873 |
Severance Taxes | 2,546 | 3,934 |
Other Operating Expenses | 37,740 | 28,051 |
Technology Segment Professionaland Consulting Expenses | 791,139 | 83,076 |
Administrative Expenses | 520,186 | 532,141 |
Depreciation and Amortization | 5,917 | 5,020 |
Total Operating Expenses | 1,396,532 | 691,095 |
(Loss) From Operations | -1,287,795 | -580,968 |
Other Income (Expense): | ' | ' |
Interest Income | 1,378 | 4,079 |
Other Income | 11,200 | 0 |
Total Other Income (Expense) | 12,578 | 4,079 |
Financing Charges: | ' | ' |
Bank Fees Amortization | 1,727 | 3,478 |
Total Financing Charges | 1,727 | 3,478 |
(Loss) Before Provision for Income Taxes | -1,276,944 | -580,367 |
Provision for Income Taxes (Benefit) | 0 | 0 |
Net (Loss) of Chancellor, Inc. | -1,276,945 | -580,367 |
Net Loss attributable to non-controlling interest in Pimovi, Inc. | 241,757 | 32,400 |
Net Loss attributable to non-controlling interest in The Fuelist, LLC | 91,045 | 0 |
Net (Loss) attributable to Chancellor Group, Inc. Shareholders | ($944,142) | ($547,967) |
Net (Loss) per Share (Basic and Fully Diluted) | ($0.01) | ($0.01) |
Weighted Average Number of CommonShares Outstanding | 71,997,290 | 69,157,844 |
Consolidated_Statements_of_Sto
Consolidated Statements of Stockholders' Equity (USD $) | Common Stock Shares | Common Stock Amount | Preferred Series B Amount | Paid in Capital | (Accumulated Deficit) | Chancellor Stockholders's Equity | Non-controlling Interest (deficit) Pimovi, Inc. | Non-controlling Interest Fuelist, LLC | Total Stockholders' Equity |
USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | ||
Balance at Dec. 31, 2011 | 67,960,030 | 67,960 | 0 | 3,498,053 | -1,281,550 | 2,284,463 | 0 | 0 | 2,284,463 |
Compensatory Stock Issuances | 1,600,000 | 1,600 | 0 | 41,000 | 0 | 42,600 | 0 | 0 | 42,600 |
Net (Loss) | ' | $0 | $0 | $0 | ($547,967) | ($547,967) | ($32,400) | $0 | ($580,367) |
Balance at Dec. 31, 2012 | 69,560,030 | 69,560 | 0 | 3,539,053 | -1,829,517 | 1,779,096 | -32,400 | 0 | 1,746,696 |
Compensatory Stock Issuances | 2,200,000 | 2,200 | 0 | 120,800 | 0 | 123,000 | 0 | 0 | 123,000 |
Fuelist Acquisition Stock Issuance | 2,000,000 | 2,000 | 0 | 154,000 | 0 | 156,000 | 0 | 0 | 156,000 |
Fuelist Accumulated Deficit Prior to 51% Interest Acquisition | ' | 0 | 0 | 0 | 0 | 0 | 0 | -29,006 | -29,006 |
Fuelist Capital Contributions | ' | 0 | 0 | 0 | 0 | 0 | 0 | 205,100 | 205,100 |
Net (Loss) | ' | $0 | $0 | $0 | ($944,142) | ($944,142) | ($241,757) | ($91,045) | ($1,276,944) |
Balance at Dec. 31, 2013 | 73,760,030 | 73,760 | 0 | 3,813,853 | -2,773,659 | 1,113,955 | -274,157 | 85,049 | 924,846 |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Cash flows Operating Activities | ' | ' |
Net (Loss) attributable to Chancellor Group, Inc. Shareholders | ($944,142) | ($547,967) |
Adjustments to Reconcile Net (Loss) to Net Cash Provided by (Used in) Operating Activities: | ' | ' |
Loss from Non-controlling Interest in Pimovi, Inc. | -241,757 | 0 |
Loss from Non-controlling Interest in The Fuelist, LLC | -91,045 | 0 |
Depreciation and Amortization | 5,918 | 5,020 |
Stock Compensation Expense | 123,000 | 42,600 |
Decrease in Operating Assets | -21,415 | 67,825 |
Increase (Decrease) in Operating Liabilities | 38,989 | -136,506 |
Net Cash (Used in) Operating Activities | -1,130,453 | -569,028 |
Cash Flows From Investing Activities: | ' | ' |
Investment in Unconsolidated Subsidiary | 0 | -32,400 |
Other Capital Expenditures | -4,454 | -9,840 |
Net Cash (Used in) Investing Activities | -4,454 | -42,240 |
Cash Flows From Financing Activities: | ' | ' |
Capital Contributions Received from Other Member | 24,300 | 0 |
Net Cash Provided by Financing Activities | 24,300 | 0 |
Net (Decrease) in Cash and Restricted Cash | -1,110,607 | -611,268 |
Cash and Restricted Cash at the Beginning of the Year | 1,725,508 | 2,336,776 |
Cash and Restricted Cash at the End of the Year | 614,901 | 1,725,508 |
Supplemental Disclosures of Cash Flow Information: | ' | ' |
Interest Paid | 0 | 0 |
Income Taxes Paid | 0 | 10,917 |
Non Cash Investing and Financing Activities: | ' | ' |
Contributions Payable related to Acquisition of Fuelist, Inc. | 271,200 | 0 |
Common Stock issued for Fuelist, LLC Acquisition | 156,000 | 0 |
Goodwill from Fuelist, LLC Acquisition | $427,200 | $0 |
ORGANIZATION_OPERATIONS_AND_SU
ORGANIZATION, OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: | 12 Months Ended |
Dec. 31, 2013 | |
ORGANIZATION, OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: | ' |
ORGANIZATION, OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: | ' |
NOTE 1. ORGANIZATION, OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: | |
Organization | |
Chancellor Group, Inc. (the "Company", "our", "we", "Chancellor" or the | |
"Company") was incorporated in the state of Utah on May 2, 1986, and then, on | |
December 30, 1993, dissolved as a Utah corporation and reincorporated as a | |
Nevada corporation. The Company's primary business purpose is to engage in the | |
acquisition, exploration and development of oil and gas production. On March 26, | |
1996, the Company's corporate name was changed from Nighthawk Capital, Inc. to | |
Chancellor Group, Inc. During early 2012, the Company's corporate office was | |
moved from Pampa to Amarillo, Texas. | |
On November 16, 2012, a certificate of incorporation was filed with the state of | |
Delaware for the formation of Pimovi, Inc. ("Pimovi"), a new majority-owned | |
subsidiary of Chancellor, and with which separate company financial statements | |
are consolidated with Chancellor's consolidated financial statements beginning | |
for the fourth quarter of 2012. Chancellor owns 61% of the equity of Pimovi in | |
the form of Series A Preferred Stock, therefore Chancellor maintains significant | |
financial control. As of December 31, 2013, Pimovi had not commenced principal | |
operations and had no sales or revenues for 2013, therefore Pimovi is considered | |
a "development-stage enterprise". The primary business purpose of Pimovi relates | |
largely to technology and mobile application fields, including development of | |
proprietary consumer algorithms, creating user photographic and other activity | |
records, First Person Video Feeds and other such activities related to mobile | |
and computer gaming. | |
On August 15, 2013, Chancellor Group, Inc. entered into a binding term sheet | |
(the "Term Sheet") with The Fuelist, LLC, a California limited liability company | |
("Fuelist"), and its founders, Matthew Hamilton, Eric Maas and Thomas Rand-Nash | |
(together, the "Founders"), pursuant to which Chancellor agreed to acquire a 51% | |
ownership interest in Fuelist,. As consideration for the ownership interest, | |
Chancellor will contribute to Fuelist a total of $271,200 in cash payable in 12 | |
monthly installments of $22,600, beginning in August 2013. As additional | |
consideration for the ownership interest, Chancellor contributed a total of | |
2,000,000 shares of newly issued common stock to Fuelist on August 19, 2013, | |
valued at $156,000, or $0.078 per share. As of December 31, 2013, Fuelist had | |
not commenced principal operations and had no sales or operating revenues | |
through December 31, 2013, therefore Fuelist is considered a "development-stage | |
enterprise". The primary purpose of Fuelist is the development of a data-driven | |
mobile and web technology platform that leverages extensive segment expertise | |
and big data analysis tools to value classic vehicles. These tools will enable | |
users to quickly find values, track valuations over time, and to identify | |
investment and arbitrage opportunities in this lucrative market. | |
Going Concern | |
These consolidated financial statements have been prepared on the basis of a | |
going concern, which contemplates the realization of assets and satisfaction of | |
liabilities in the normal course of business. The Company has had continued net | |
operating losses with net losses attributable to Chancellor Group, Inc. | |
Shareholders of $944,142 and $547,967 at December 31, 2013 and 2012, | |
respectively, and retained earnings deficits of $2,773,659 and $1,829,517, | |
respectively. The Company's continued operations are dependent on the successful | |
implementation of its business plan and its ability to obtain additional | |
financing as needed. The accompanying consolidated financial statements do not | |
include any adjustments that might be necessary if the Company is unable to | |
continue as a going concern. | |
Operations | |
The Company is licensed by the Texas Railroad Commission as an oil and gas | |
producer and operator. The Company and its wholly-owned subsidiaries, Gryphon | |
Production Company, LLC and Gryphon Field Services, LLC, own 5 wells in Gray | |
County, Texas, of which 1 is a water disposal well. As of December 31, 2013 and | |
2012, approximately 4 oil wells are actively producing. | |
We produced a total of 617 and 1,067 barrels of oil in the year ended December | |
31, 2013 and 2012, respectively. The oil is light sweet crude. | |
Both Pimovi and Fuelist were development stage enterprises as of December 31, | |
2013, with no significant operations other than the ongoing development of their | |
respective technologies described above. | |
Significant Accounting Policies | |
Basis of Presentation and Principles of Consolidation | |
These accompanying consolidated financial statements include the accounts of | |
Chancellor and its wholly-owned subsidiaries: Gryphon Production Company, LLC, | |
and Gryphon Field Services, LLC. These entities are collectively hereinafter | |
referred to as "the Company". Beginning in the fourth quarter 2012, the | |
accompanying consolidated financial statements include the accounts of | |
Chancellor's majority-owned subsidiary, Pimovi, Inc., with which Chancellor owns | |
61% of the equity of Pimovi and maintains significant financial control. | |
Beginning in the third quarter 2013, the accompanying consolidated financial | |
statements also include Chancellor's majority-owned subsidiary, The Fuelist, | |
LLC, which Chancellor owns 51% of the equity of Fuelist and maintains | |
significant financial control. All material intercompany accounts and | |
transactions have been eliminated in the consolidated financial statements. | |
Accounting Year | |
The Company employs a calendar accounting year. The Company recognizes income | |
and expenses based on the accrual method of accounting under generally accepted | |
accounting principles. | |
Use of Estimates | |
The preparation of financial statements in conformity with generally accepted | |
accounting principles requires management to make estimates and assumptions that | |
affect reported amounts of assets and liabilities and disclosure of contingent | |
assets and liabilities at the date of the financial statements and the reported | |
amounts of revenues and expenses during the reporting period. Actual results | |
could differ from those estimates. | |
Products and Services, Geographic Areas and Major Customers | |
The Company plans to operate its domestic oil and gas properties, located in | |
Gray County in Texas, and possibly to acquire additional producing oil and gas | |
properties. The Company's major customers, to which the majority of its oil | |
production is sold, are Plains Marketing and ExxonMobil. | |
As of December 31, 2013, both Pimovi and Fuelist were in the development stage | |
of operations pursuing the development of their respective technologies, with no | |
significant products, services or major customers. | |
Net Loss per Share | |
The net loss per share is computed by dividing the net loss by the weighted | |
average number of shares of common outstanding. Warrants, stock options, and | |
common stock issuable upon the conversion of the Company's preferred stock (if | |
any), are not included in the computation if the effect would be anti-dilutive | |
and would increase the earnings or decrease loss per share. | |
Cash and Cash Equivalents | |
The Company considers all highly liquid investments with an original maturity of | |
three months or less as cash equivalents. | |
Concentration of Credit Risk | |
Some of the Company's operating cash balances are maintained in accounts that | |
currently exceed federally insured limits. The Company believes that the | |
financial strength of deposit institutions mitigates the underlying risk of | |
loss. To date, these concentrations of credit risk have not had a significant | |
impact on the Company's financial position or results of operations. | |
Restricted Cash | |
Included in restricted cash at December 31, 2013 and 2012 are deposits totaling | |
$25,000, in the form of bond issued to the Railroad Commission of Texas as | |
required for the Company's oil and gas activities which is renewed annually. | |
Accounts Receivable | |
The Company reviews accounts receivable periodically for collectibles, | |
establishes an allowance for doubtful accounts and records bad debt expense when | |
deemed necessary. Based on review of accounts receivable by management at year | |
end, including credit quality and subsequent collections from customers, an | |
allowance for doubtful accounts was not considered necessary or recorded at | |
December 31, 2013, and 2012. | |
Prepaid Expenses | |
Certain expenses, primarily investment professional and consulting fees, have | |
been prepaid and will be used within one year. | |
Goodwill | |
Goodwill represents the cost in excess of the fair value of net assets of the | |
acquisition. Goodwill is not amortized but is subject to periodic testing for | |
impairment. The Company tests goodwill for impairment using a two-step process. | |
The first step tests for potential impairment, while the second step measures | |
the amount of the impairment, if any. The Company performs the annual impairment | |
test during the last quarter of each year. As of December 31, 2013, we | |
determined there was no impairment of our goodwill. | |
Property | |
Property and equipment are recorded at cost and depreciated under the | |
straight-line method over the estimated useful life of the assets. The estimated | |
useful life of leasehold costs, equipment and tools ranges from five to seven | |
years. | |
Oil and Gas Properties | |
The Company follows the successful efforts method of accounting for its oil and | |
gas activities. Under this accounting method, costs associated with the | |
acquisition, drilling and equipping of successful exploratory and development | |
wells are capitalized. Geological and geophysical costs, delay rentals and | |
drilling costs of unsuccessful exploratory wells are charged to expense as | |
incurred. The carrying value of mineral leases is depleted over the minimum | |
estimated productive life of the leases, or ten years. Undeveloped properties | |
are periodically assessed for possible impairment due to un-recoverability of | |
costs invested. Cash received for partial conveyances of property interests is | |
treated as a recovery of cost and no gain or loss is recognized. | |
Depreciation | |
Equipment is depreciated over the estimated useful lifes of the assets, which | |
ranged from 5 to 10 years, using the straight-line method. | |
Long-Lived Assets | |
The Company assesses potential impairment of its long-lived assets, which | |
include its property and equipment and its identifiable intangibles such as | |
deferred charges, under the guidance Topic 360 "PROPERTY, PLANT AND EQUIPMENT" | |
in the Accounting Standards Codification (the "ASC"). The Company must | |
continually determine if a permanent impairment of its long-lived assets has | |
occurred and write down the assets to their fair values and charge current | |
operations for the measured impairment. As of December 31, 2013 and 2012, we do | |
not believe any of our long-lived assets are impaired. | |
Asset Retirement Obligations | |
The Company has not recorded an asset retirement obligation (ARO) in accordance | |
with ASC 410. Under ASC 410, a liability should be recorded for the fair value | |
of an asset retirement obligation when there is a legal obligation associated | |
with the retirement of a tangible long-lived asset, and the liability can be | |
reasonably estimated. The associated asset retirement costs should also be | |
capitalized and recorded as part of the carrying amount of the related oil and | |
gas properties. Management believes that not recording an ARO liability and | |
asset under ASC 410 is immaterial to the consolidated financial statements. | |
Income Tax | |
Deferred taxes are provided on a liability method whereby deferred tax assets | |
are recognized for deductible temporary differences and operating loss | |
carry-forwards and deferred tax liabilities are recognized for taxable temporary | |
differences. Temporary differences are the differences between the reported | |
amounts of assets and liabilities and their tax bases. Deferred tax assets are | |
reduced by a valuation allowance when, in the opinion of management, it is more | |
likely than not that some portion or all of the deferred tax assets will not be | |
realized. Deferred tax assets and liabilities are adjusted for the effects of | |
changes in tax laws and rates on the date of enactment. We have recorded a | |
valuation allowance as of December 31, 2013 and 2012. | |
Revenue Recognition | |
For our oil segment, revenue is recognized for the oil production when a product | |
is sold to a customer, either for cash or as evidenced by an obligation on the | |
part of the customer to pay. For our technology segment, revenue will be | |
recognized when earned, including both future subscriptions and other future | |
revenue streams, as required under relevant revenue recognition policies under | |
generally accepted accounting policies. | |
Fair Value Measurements and Disclosures | |
The Company estimates fair values of assets and liabilities which require either | |
recognition or disclosure in the financial statements in accordance with FASB | |
ASC Topic 820 "FAIR VALUE MEASUREMENTS". There is no material impact on the 2013 | |
and 2012 consolidated financial statements related to fair value measurements | |
and disclosures. Fair value measurements include the following levels: | |
Level 1: Quoted market prices in active markets for identical assets or | |
liabilities. Valuations for assets and liabilities traded in active | |
exchange markets, such as the New York Stock Exchange. Level 1 also | |
includes U.S. Treasury and federal agency securities and federal | |
agency mortgage-backed securities, which are traded by dealers or | |
brokers in active markets. Valuations are obtained from readily | |
available pricing sources for market transactions involving identical | |
assets or liabilities. | |
Level 2: Observable market based inputs or unobservable inputs that are | |
corroborated by market data. Valuations for assets and liabilities | |
traded in less active dealer or broker markets. Valuations are | |
obtained from third party pricing services for identical or similar | |
assets or liabilities. | |
Level 3: Unobservable inputs that are not corroborated by market data. | |
Valuations for assets and liabilities that are derived from other | |
valuation methodologies, including option pricing models, discounted | |
cash flow models and similar techniques, and not based on market | |
exchange, dealer, or broker traded transactions. Level 3 valuations | |
incorporate certain assumptions and projections in determining the | |
fair value assigned to such assets or liabilities. | |
Fair Value of Financial Instruments | |
The carrying value of the Company's financial instruments, including cash in | |
bank, restricted cash, revenue receivable and accounts payable as reported in | |
the accompanying consolidated balance sheet, approximates fair values. | |
Employee Stock-Based Compensation | |
Compensation expense is recognized for performance-based stock awards if | |
management deems it probable that the performance conditions are or will be met. | |
Determining the amount of stock-based compensation expense requires us to | |
develop estimates that are used in calculating the fair value of stock-based | |
compensation, and also requires us to make estimates of assumptions including | |
expected stock price volatility which is derived based upon our historical stock | |
prices. | |
Business Combinations | |
The Company accounts for business combinations in accordance with FASB ASC Topic | |
805 "Business Combinations". This standard modifies certain aspects of how the | |
acquiring entity recognizes and measures the identifiable assets, the | |
liabilities assumed and the goodwill acquired in a business combination. The | |
Company entered into a business combination with The Fuelist, LLC on August 15, | |
2013 (See Note 7 for further disclosure). | |
Recent Accounting Pronouncements | |
In July 2013, FASB issued ASU No. 2013-11, INCOME TAXES (TOPIC 740): | |
PRESENTATION OF AN UNRECOGNIZED TAX BENEFIT WHEN A NET OPERATING LOSS | |
CARRYFORWARD, A SIMILAR TAX LOSS, OR A TAX CREDIT CARRYFORWARD EXISTS. This ASU | |
is effective for interim and annual periods beginning after December 15, 2013. | |
This update standardizes the presentation of an unrecognized tax benefit when a | |
net operating loss carryforward, a similar tax loss, or a tax credit | |
carryforward exists. Management does not anticipate that the accounting | |
pronouncement will have any material future effect on our consolidated financial | |
statements. | |
There were various other updates recently issued, most of which represented | |
technical corrections to the accounting literature or application to specific | |
industries, and are not expected to have a material impact on the Company's | |
financial position, results of operations or cash flows. |
INCOME_TAXES
INCOME TAXES | 12 Months Ended |
Dec. 31, 2013 | |
INCOME TAXES | ' |
INCOME TAXES | ' |
NOTE 2. INCOME TAXES | |
Income Tax Expense is comprised of the following: | |
Fiscal Year | |
--------------------------- | |
2013 2012 | |
---------- ---------- | |
Current federal -- -- | |
Current state and local -- -- | |
Deferred federal, state and local -- -- | |
The difference between expected income tax expense (benefit) (computed by | |
applying the statutory rate of 35% to income before income taxes) and actual | |
income tax expense (benefit) is as follow: | |
Fiscal Year | |
--------------------------- | |
2013 2012 | |
---------- ---------- | |
Computed "expected" Tax (Benefit) $ (446,931) $ (203,128) | |
State and local income taxes, net | |
of federal effect -- -- | |
Changes in Valuation Allowance and | |
other adjustments 446,931 203,128 | |
---------- ---------- | |
$ -- $ -- | |
====bsp; ====pre> | |
The tax effects of temporary differences that give rise to significant portions | |
of the deferred tax assets and deferred tax liabilities are presented below. | |
Fiscal Year | |
--------------------------- | |
2013 2012 | |
---------- ---------- | |
Deferred tax assets: | |
Net operating loss carry-forward $ 527,915 $ 414,867 | |
---------- ---------- | |
Total deferred tax assets 527,915 414,867 | |
Valuation allowance against deferred tax assets (524,414) (411,212) | |
Deferred tax assets net of valuation allowance 3,501 3,655 | |
Deferred tax liabilities: | |
Property and equipment 3,501 3,655 | |
---------- ---------- | |
Total deferred tax liabilities 3,501 3,655 | |
---------- ---------- | |
Net deferred tax assets $ -- $ -- | |
====bsp; ====pre> | |
Deferred income taxes are recorded for temporary differences between financial | |
statement and income tax basis. Temporary differences are differences between | |
the amounts of assets and liabilities reported for financial statement purposes | |
and their tax basis. Deferred tax assets are recognized for temporary | |
differences that will be deductible in future years' tax returns and for | |
operating loss and tax credit carryforwards. Deferred tax assets are reduced by | |
a valuation allowance if it is deemed more likely than not that some or all of | |
the deferred tax assets will not be realized. Deferred tax liabilities are | |
recognized for temporary differences that will be taxable in future years' tax | |
returns. | |
At December 31, 2013, the Company had a federal net operating loss carry-forward | |
of approximately $2,639,577. A deferred tax asset of approximately $527,915 has | |
been partially offset by a valuation allowance of approximately $524,414 due to | |
federal net operating loss carry-back and carry-forward limitations. | |
At December 31, 2013, the Company also had approximately $3,501 in deferred | |
income tax liability attributable to timing differences between federal income | |
tax depreciation, depletion and book depreciation, which has been offset against | |
the deferred tax asset related to the net operating loss carry-forward. | |
Management evaluated the Company's tax positions under FASB ASC No. 740 | |
"Uncertain Tax Positions," and concluded that the Company had taken no uncertain | |
tax positions that require adjustment to the consolidated financial statements | |
to comply with the provisions of this guidance. With few exceptions, the Company | |
is no longer subject to income tax examinations by the U.S. federal, state or | |
local tax authorities for years before 2010. | |
STOCKHOLDERS_EQUITY
STOCKHOLDERS' EQUITY | 12 Months Ended |
Dec. 31, 2013 | |
STOCKHOLDERS' EQUITY | ' |
STOCKHOLDERS' EQUITY | ' |
NOTE 3. STOCKHOLDERS' EQUITY | |
Preferred Stock | |
The Company has provided for the issuance of 250,000 shares, par value $1,000 | |
per share, of convertible Preferred Series B stock ("Series B"). Each Series B | |
share is convertible into 166.667 shares of the Company's common stock upon | |
election by the stockholder, with dates and terms set by the Board. No shares of | |
Series B preferred stock are outstanding. | |
Common Stock | |
The Company has 250,000,000 authorized shares of common stock, par value $.001, | |
with 73,760,030 shares issued and outstanding as of December 31, 2013. | |
During the year ended December 31, 2013, Chancellor issued 4,200,000 shares of | |
its common stock, including: (1) 1,000,000 shares issued on February 25, 2013 to | |
a new investor relations consultant related to a 12 month agreement, (2) | |
1,000,000 shares issued on March 25, 2013 to the co-founder of Pimovi, Inc. | |
related to Chancellor's acquisition of 61% of the equity of Pimovi, (3) | |
2,000,000 shares issued on August 19, 2013 to The Fuelist, LLC. as partial | |
consideration of Chancellor's acquisition of 51% of the ownership interest of | |
Fuelist (see Note 7 for further information) and (4) 200,000 shares issued to | |
unrelated parties for consulting fees incurred during November 2013. | |
Stock based Compensation | |
During 2012, the Company recognized $42,600 in professional fees expense related | |
to stock issued to unrelated parties for business development services | |
performed. | |
During 2013, the Company recognized $123,000 in professional fees expense | |
related to stock issued to unrelated parties for business development and | |
consulting services performed. | |
Non-employee Stock Options and Warrants | |
The Company accounts for non-employee stock options under FASB ASC Topic 505 | |
"EQUITY-BASED PAYMENTS TO NON-EMPLOYEES", whereby options costs are recorded | |
based on the fair value of the consideration received or the fair value of the | |
equity instruments issued, whichever is more reliably measurable. During 2013 | |
and 2012, no options were issued, exercised or cancelled. | |
The Company currently has outstanding warrants expiring December 31, 2014 to | |
purchase an aggregate of 6,000,000 shares of common stock; these warrants | |
consist of warrants to purchase 2,000,000 shares at an exercise price of $.025 | |
per share, and warrants to purchase 4,000,000 shares at an exercise price of | |
$0.02 per share. In July 2009, the Company issued additional warrants expiring | |
June 30, 2014 to purchase an aggregate of 500,000 shares of common stock at an | |
exercise price of $0.125 per share. From June 2010 thru April 2011, the Company | |
issued additional warrants expiring June 30, 2015 to purchase an aggregate of | |
420,000 shares of common stock at an exercise price of $0.125 per share. | |
On December 31, 2013, the Company had the following outstanding warrants: | |
Weighted | |
Remaining Average | |
Exercise Number of Contractual Life Exercise Price times Exercise | |
Price Shares (in years) Number of Shares Price | |
----- ------ ---------- ---------------- ----- | |
$0.025 2,000,000 1 $ 50,000 | |
$0.020 4,000,000 1 80,000 | |
$0.125 500,000 .50 62,500 | |
$0.125 420,000 1.50 52,500 | |
--------- -------- | |
6,920,000 $245,000 $0.035 | |
=== ===/pre> | |
Remaining | |
Number of Weighted Average Contractual Life | |
Warrants Shares Exercise Price (in years) | |
-------- ------ -------------- ---------- | |
Outstanding at January 1, 2012 6,920,000 $0.035 | |
--------- ------ | |
Issued -- -- | |
Exercised -- -- | |
Expired/Cancelled -- -- | |
--------- ------ | |
Outstanding at January 1, 2013 6,920,000 $0.035 | |
--------- ------ | |
Issued -- -- | |
Exercised -- -- | |
Expired/Cancelled -- -- | |
Outstanding at December 31, 2013 6,920,000 $0.035 1.0 | |
--------- ------ ------ | |
Exercisable at December 31, 2013 6,920,000 $0.035 1.0 | |
=== == == | |
PROPERTY_AND_EQUIPMENT
PROPERTY AND EQUIPMENT | 12 Months Ended |
Dec. 31, 2013 | |
PROPERTY AND EQUIPMENT | ' |
PROPERTY AND EQUIPMENT | ' |
NOTE 4. PROPERTY AND EQUIPMENT | |
A summary of fixed assets at: | |
Balance Balance | |
December 31, December 31, | |
2011 Additions Deletions 2012 | |
-------- --------- --------- -------- | |
Equipment $ -- $ -- $ -- $ -- | |
Leases & Lease Equipment 47,740 9,840 -- 57,580 | |
-------- -------- -------- -------- | |
Total Cost $ 47,740 $ 9,840 $ -- $ 57,580 | |
===nbsp; ===nbsp; ===nbsp; ===/pre> | |
Less: Accumulated Depreciation 18,815 5,020 -- 23,835 | |
-------- -------- -------- -------- | |
Total Property and Equipment, net $ 28,925 $ 5,020 $ -- $ 33,745 | |
===nbsp; ===nbsp; ===nbsp; ===/pre> | |
A summary of fixed assets at: | |
Balance Balance | |
December 31, December 31, | |
2012 Additions Deletions 2013 | |
-------- --------- --------- -------- | |
Equipment $ -- $ 4,454 $ -- $ 4,454 | |
Leases & Lease Equipment 57,580 - -- 57,580 | |
-------- --------- -------- -------- | |
Total Cost $ 57,580 $ - $ -- $ 62,034 | |
===nbsp; === ===nbsp; ===/pre> | |
Less: Accumulated Depreciation 23,835 5,917 -- 29,752 | |
-------- --------- -------- -------- | |
Total Property and Equipment, net $ 33,745 $ 5,917 $ -- $ 32,282 | |
===nbsp; === ===nbsp; ===/pre> | |
CONTRACTUAL_OBLIGATIONS
CONTRACTUAL OBLIGATIONS | 12 Months Ended |
Dec. 31, 2013 | |
CONTRACTUAL OBLIGATIONS | ' |
CONTRACTUAL OBLIGATIONS | ' |
NOTE 5. CONTRACTUAL OBLIGATIONS | |
On February 25, 2013, the Company entered into a twelve month agreement with a | |
new investor relations consultant, which pays the consultant a fee of $9,000 | |
monthly for the period from February 2013 through July 2013. In addition, the | |
Company granted 1,000,000 shares of common stock to the consultant upon | |
execution of the agreement. The Company recognized $104,500 in consulting fees | |
related to this agreement for 2013 and also still has $9,500 in related prepaid | |
expenses in current assets as of December 31, 2013. | |
On May 1, 2013, Fuelist entered into a lease agreement with a related party | |
limited liability company for the Company's main office, located in Berkeley, | |
California. The lease term is for one year beginning on May 1, 2013 and ending | |
May 1, 2014. The Company is obligated to pay rent of $6,000 per year in equal | |
monthly installments of $500 payable on the 1st of each month. The Company | |
subsequently entered into a sublease agreement with another related party entity | |
in which it was not legally relieved of its primary obligation for the lease | |
agreement. The Company recognized $10,800 in sub-lease rent revenue in other | |
income and $11,600 in rent expense in other operating expenses, relation to | |
these agreements during the year ended December 31, 2013. | |
RELATED_PARTY_TRANSACTIONS
RELATED PARTY TRANSACTIONS | 12 Months Ended |
Dec. 31, 2013 | |
RELATED PARTY TRANSACTIONS | ' |
RELATED PARTY TRANSACTIONS | ' |
NOTE 6. RELATED PARTY TRANSACTIONS | |
The Company has used the services of a consulting company owned by the Chairman | |
of the Board. The Company has paid $108,000 and $104,000 annually for those | |
services during the years ended December 31, 2013 and December 31, 2012. The | |
Company has paid directors fees to a company owned by the chairman of the board | |
in the amounts of $30,000 and $44,500 during the years ended December 31, 2013 | |
and December 31, 2012, respectively, and to one other director in the amounts of | |
$30,000 and $44,500 in total during the years ended December 31, 2013 and | |
December 31, 2012, respectively. During 2013, the Company has paid $2,400 in | |
professional services to a company owned by the Chairman of Board for the | |
supervision and storage of company documents | |
BUSINESS_COMBINATIONS
BUSINESS COMBINATIONS | 12 Months Ended |
Dec. 31, 2013 | |
Business Combinations: | ' |
Business Combination | ' |
NOTE 7. BUSINESS COMBINATION | |
On August 15, 2013, Chancellor entered into a binding term sheet with The | |
Fuelist, LLC, a California limited liability company ("Fuelist"), and its | |
founders (the "Founders"), pursuant to which Chancellor acquired a 51% ownership | |
interest in Fuelist. | |
As consideration for the 51% ownership interest in Fuelist, Chancellor agreed to | |
contribute to Fuelist a total of $271,200 in cash payable in 12 monthly | |
installments of $22,600. As additional consideration for the ownership interest, | |
Chancellor contributed a total of 2,000,000 shares of newly issued common stock | |
to Fuelist on August 19, 2013, valued at $156,000, or $0.078 per share. | |
Also in the term sheet, the 2,000,000 shares of Chancellor common stock are | |
deemed the property of the Founders irrespective of any future sales of the | |
Company or outcomes, and in the event of any sale of the Company to a third | |
party, the Founder's shares paid as part-consideration to the Company for the | |
purchase of Chancellor's 51% shall remain the property of the Founders and those | |
Founder's shares shall be transferred to the Founders before, or as part of, the | |
closing of any such sale in the future to a third party. | |
Chancellor determined that the acquisition of its majority-owned interest in | |
Fuelist constitutes a business combination as defined by FASB ASC Topic 805, | |
Business Combinations. Accordingly, the net assets acquired were recorded upon | |
acquisition at their estimated fair values. Fair values were determined based on | |
the requirements of FASB ASC Topic 820, Fair Value Measurements. In many cases | |
the determination of these fair values required management to make estimates | |
about discount rates, future expected cash flows, market conditions and other | |
future events that are highly subjective in nature and subject to change. These | |
fair value estimates were considered preliminary, and are subject to change for | |
up to one year after the closing date of the acquisition if any additional | |
information relative to closing dated fair values becomes available. | |
The initial fair value of assets acquired and liabilities assumed in the | |
purchase has yielded little to no value as such all the proceeds are currently | |
allocated to goodwill as shown below: | |
Purchase Price: | |
Issuance of 2,000,000 shares of common stock $156,000 | |
Contributions payable 271,200 | |
-------- | |
Total $427,200 | |
===/pre> | |
For the period subsequent to the purchase through December 31, 2013, Chancellor | |
paid $180,800 towards the contributions payable resulting in $90,400 outstanding | |
as of December 31, 2013. | |
NONCONTROLLING_INTERESTS
NON-CONTROLLING INTERESTS | 12 Months Ended |
Dec. 31, 2013 | |
NON-CONTROLLING INTERESTS | ' |
NON-CONTROLLING INTERESTS | ' |
NOTE 8. NON-CONTROLLING INTERESTS | |
All non-controlling interest of Chancellor related to Fuelist is a result of | |
Chancellor's initial investment, the investment of other members in Fuelist, and | |
results of operations. Cumulative results of these activities result in: | |
December 31, December 31, | |
2013 2012 | |
-------- -------- | |
Cash contributions paid by Chancellor to Fuelist $180,800 $ -- | |
Cash contributions paid by others to Fuelist 24,300 -- | |
Net loss prior to acquisition by Chancellor | |
attributable to non-controlling interest (29,006) -- | |
Net loss subsequent to acquisition by Chancellor | |
attributable to non-controlling interest (91,045) -- | |
-------- -------- | |
Total non-controlling interest in Fuelist $ 85,049 $ -- | |
===nbsp; ===/pre> | |
The following is a summary of changes in non-controlling interest in Fuelist | |
during the year ended December 31, 2013: | |
Non-controlling interest in Fuelist at December 31, 2012 $ -- | |
Cash contributions paid by Chancellor to Fuelist 180,800 | |
Cash contributions paid by others to Fuelist 24,300 | |
Net losses attributable to non-controlling interest in Fuelist (120,051) | |
--------- | |
Non-controlling interest in Fuelist at December 31, 2013 $ 85,049 | |
=== | |
All non-controlling interest of Chancellor related to Pimovi is a result of | |
results of operations. Cumulative results of these activities result in: | |
December 31, December 31, | |
2013 2012 | |
-------- -------- | |
Cumulative net loss attributable to | |
non-controlling interest in Pimovi $(274,057) $ (32,400) | |
---------- ---------- | |
Total non-controlling interest in Pimovi $(274,057) $ (32,400) | |
====bsp; ====pre> | |
The following is a summary of changes in non-controlling interest in Pimovi | |
during the year ended December 31, 2013: | |
Non-controlling interest in Pimovi at December 31, 2012 $ (32,400) | |
Net loss attributable to non-controlling interest in Pimovi (241,757) | |
--------- | |
Non-controlling interest in Pimovi at December 31, 2013 $(274,157) | |
=== | |
SUBSEQUENT_EVENTS
SUBSEQUENT EVENTS | 12 Months Ended |
Dec. 31, 2013 | |
SUBSEQUENT EVENTS | ' |
SUBSEQUENT EVENTS | ' |
NOTE 9. SUBSEQUENT EVENTS | |
Events occurring after December 31, 2013 were evaluated through the date this | |
Annual Report was issued, in compliance FASB ASC Topic 855 "Subsequent Events", | |
to ensure that any subsequent events that met the criteria for recognition | |
and/or disclosure in this report have been included. | |
On February 12, 2014, the Board approved the issuance of 490,000 total shares to | |
two unrelated individuals for their engineering expertise and advice related to | |
Fuelist. The shares were issued to both individuals as of February 25, 2014. The | |
Company will recognize $26,950 in Professional and Consulting Fee Expense in the | |
first quarter of 2014 related to these shares. | |
SUPPLEMENTAL_INFORMAITON_ON_OI
SUPPLEMENTAL INFORMAITON ON OIL AND GAS PRODUCING ACTIVITIES (UNAUDITED) | 12 Months Ended |
Dec. 31, 2013 | |
Supplemental Information On Oil And Gas Producing Activities Text Block: | ' |
SUPPLEMENTAL INFORMAITON ON OIL AND GAS PRODUCING ACTIVITIES (UNAUDITED) | ' |
NOTE 10. SUPPLEMENTAL INFORMAITON ON OIL AND GAS PRODUCING ACTIVITIES | |
(UNAUDITED) | |
The Supplementary Information on Oil and Gas Producing Activities is presented | |
as required by ASC Topic 932, "EXTRACTIVE ACTIVITIES -- OIL AND GAS". | |
Supplemental information is provided for the estimated quantities of proved oil | |
and gas reserves, future cash flows and the standardized measure of discounted | |
future net cash flows associated with proved oil and gas reserves. | |
Oil and Gas Reserve Quantities | |
Proved oil and gas reserves are those quantities of oil and gas, which, by | |
analysis of geoscience and engineering data, can be estimated with reasonable | |
certainty to be economically producible, based on prices used to estimate | |
reserves, from a given date forward from known reservoirs, and under existing | |
economic conditions, operating methods, and government regulation before the | |
time of which contracts providing the right to operate expire, unless evidence | |
indicates that renewal is reasonably certain. Proved developed reserves are | |
proved reserves expected to be recovered through existing wells with existing | |
equipment and operating methods or in which the cost of the required equipment | |
is relatively minor compared with the cost of a new well. Proved undeveloped | |
reserves are reserves that are expected to be recovered from new wells on | |
undrilled acreage, or from existing wells where a relatively large major | |
expenditure is required for recompletion. | |
The table below represents the Company's estimate of proved oil and natural gas | |
reserves attributable to the Company's net interest in oil and gas properties, | |
all of which are located in Gray and Hutchinson counties in the Texas panhandle, | |
based upon the evaluation by the Company and its independent petroleum engineers | |
of pertinent geoscience and engineering data in accordance with the SEC's | |
regulations. Estimates of all of the Company's proved reserves have been | |
prepared by independent reservoir engineers and geoscience professionals and are | |
reviewed by members of the Company's senior management to ensure that the | |
Company consistently applies rigorous professional standards and the reserve | |
definitions prescribed by the SEC. Management has elected not to include | |
probable and possible reserves in its reserve studies and related disclosures. | |
GSM, INC., a registered Petroleum engineering firm in Amarillo, Texas, prepared | |
reports of estimated proved reserves of natural gas and oil for our net interest | |
in certain oil and natural gas properties located in Gray and Hutchinson | |
counties in Texas. | |
Total Future | |
Net Oil Net Gas Total Future Severance & Discounted | |
Reserves Reserves Total Future Projected Ad Valorem Future Net Per Annum | |
Proved Developed (Barrels) (Mcf) Net Revenue Cost Taxes cash flow as 10% | |
---------------- --------- ----- ----------- ---- ----- --------- ------ | |
2013 | |
Producing 20,421 -- $1,854,188 $920,861 $213,232 $ 720,099 $276,597 | |
2012 | |
Producing 21,281 -- $1,982,108 $571,680 $170,461 $1,239,966 $377,885 | |
Presented below is a summary of changes in estimated reserves of the Company | |
during the periods ended December 31, 2013 and 2012: | |
Oil Total | |
(mmbbl) (bcfe) | |
-------- ------- | |
31-Dec-13 | |
Proved reserves, beginning of period 21.281 0.127 | |
Extensions, discoveries and other additions -- -- | |
Revisions of previous estimates -- -- | |
Production (0.617) (0.006) | |
Sale of reserves-in-place -- -- | |
Purchase of reserves-in-place -- -- | |
-------- ------- | |
Proved reserves, end of period 20.421 0.123 | |
===nbsp; ===pre> | |
Proved developed reserves: | |
Beginning of period 21.281 0.104 | |
===nbsp; ===pre> | |
End of period 20.421 0.123 | |
===nbsp; ===pre> | |
31-Dec-12 | |
Proved reserves, beginning of period 17.330 0.104 | |
Extensions, discoveries and other additions -- -- | |
Revisions of previous estimates 5.018 0.029 | |
Production (1.067) (0.006) | |
Sale of reserves-in-place -- -- | |
Purchase of reserves-in-place -- -- | |
-------- ------- | |
Proved reserves, end of period 21.281 0.127 | |
===nbsp; ===pre> | |
Proved developed reserves: | |
Beginning of period 17.330 0.099 | |
===nbsp; ===pre> | |
End of period 21.281 0.127 | |
===nbsp; ===pre> | |
During 2013, Chancellor sold .004 bcfe of our proved reserves for approximately | |
$55,400 in gross revenues. | |
During 2012, Chancellor sold .006 bcfe of our proved reserves for approximately | |
$91,000 in gross revenues. | |
The aggregate amounts of capitalized costs relating to our oil and gas producing | |
activities and the aggregate amounts of related accumulated depletion, | |
depreciation, and amortization as of December 31, 2013 and 2012 are as follows. | |
Years Ended December 31, | |
----------------------------- | |
2013 2012 | |
-------- -------- | |
Unproved oil and gas properties -- -- | |
Proved oil and gas properties $ 57,580 $ 57,580 | |
Accumulated depreciation, depletion, and | |
amortization, and valuation allowances (29,593) (23,835) | |
-------- -------- | |
Net capitalized costs $ 27,987 $ 33,745 | |
===nbsp; ===/pre> | |
The costs incurred by the Company in oil and natural gas property exploration, | |
development and acquisition activities are summarized as follows: | |
Years Ended December 31, | |
----------------------------- | |
2013 2012 | |
-------- -------- | |
Acquisition of properties | |
Proved $ -- $ -- | |
Unproved -- -- | |
Exploration costs -- -- | |
Development costs $ -- $ 9,840 | |
The Company's results of operations from oil and natural gas producing | |
activities are presented below for the years ended December 31, 2013 and 2012. | |
The following table includes revenues and expenses associated directly with the | |
Company's oil and natural gas producing activities. It does not include any | |
interest costs or general and administrative costs and, therefore, is not | |
necessarily indicative of the contribution to consolidated net operating results | |
of the Company's oil and natural gas operations. | |
Years Ended December 31, | |
----------------------------- | |
2013 2012 | |
-------- -------- | |
Revenues | |
Sales, net of royalties paid $ 55,400 $ 91,377 | |
Transfers -- -- | |
-------- -------- | |
Total Revenues 55,400 91,377 | |
Production costs (79,290) (70,858) | |
Exploration expenses -- -- | |
Depreciation, depletion and | |
amortization and valuation provisions (5,758) (5,020) | |
Income tax expenses (benefits) -- -- | |
-------- -------- | |
Results of operations from producing | |
activities (excluding corporate overhead | |
and interest costs) $(29,648) $ 15,499 | |
===nbsp; ===/pre> | |
The principal sources of change in the standardized measure of discounted future | |
net cash flows for the years ended December 31, 2013 and 2012 are as follows: | |
Years Ended December 31, | |
-------------------------- | |
2013 2012 | |
-------- -------- | |
Net change in sales and transfer prices and | |
in production (lifting) costs related to | |
future production $218,057 $ 80,375 | |
Changes in estimated future development costs -- -- | |
Sales and transfers of oil and gas produced | |
during the period, net of production taxes (55,400) (91,377) | |
Net change due to purchase of minerals in place -- -- | |
Net change due to revisions in quantity estimates (61,369) 142,344 | |
Previously estimated development costs incurred | |
during the period -- -- | |
Accretion of discount -- -- | |
Net change due to sale of minerals in place -- -- | |
Net change in income taxes -- -- | |
-------- -------- | |
Aggregate change in the standardized measure of | |
discounted future net cash flows for the year $101,288 $131,342 | |
===nbsp; ===/pre> | |
Standardized Measure of Discounted Future Net Cash Flows | |
The standardized measure of discounted cash flows and summary of the changes in | |
the standardized measure computation from year to year are prepared in | |
accordance with ASC Topic 932. The assumptions that underlie the computation of | |
the standardized measure of discounted cash flows may be summarized as follows: | |
* the standardized measure includes the Company's estimate of proved | |
oil, natural gas and natural gas liquids reserves and projected future | |
production volumes based upon economic conditions; | |
* pricing is applied based upon 12-month average market prices at | |
December 31, 2013 and December 31, 2012. The calculated weighted | |
average per unit prices for the Company's proved reserves and future | |
net revenues were as follows: | |
At December 31, | |
--------------------- | |
2013 2012 | |
------- ------- | |
Oil (per barrel) $ 90.80 $ 93.14 | |
Natural gas (per Mcf) $ n/a $ n/a | |
* future development and production costs are determined based upon | |
actual cost at year-end; | |
* the standardized measure includes projections of future abandonment | |
costs based upon actual costs at year-end; and | |
* a discount factor of 10% per year is applied annually to the future | |
net cash flows. | |
ACCOUNTING_POLICIES_Policies
ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Dec. 31, 2013 | |
ACCOUNTING POLICIES (Policies) | ' |
Basis of Presentation and Principles of Consolidation | ' |
Basis of Presentation and Principles of Consolidation | |
These accompanying consolidated financial statements include the accounts of | |
Chancellor and its wholly-owned subsidiaries: Gryphon Production Company, LLC, | |
and Gryphon Field Services, LLC. These entities are collectively hereinafter | |
referred to as "the Company". Beginning in the fourth quarter 2012, the | |
accompanying consolidated financial statements include the accounts of | |
Chancellor's majority-owned subsidiary, Pimovi, Inc., with which Chancellor owns | |
61% of the equity of Pimovi and maintains significant financial control. | |
Beginning in the third quarter 2013, the accompanying consolidated financial | |
statements also include Chancellor's majority-owned subsidiary, The Fuelist, | |
LLC, which Chancellor owns 51% of the equity of Fuelist and maintains | |
significant financial control. All material intercompany accounts and | |
transactions have been eliminated in the consolidated financial statements. | |
Accounting Year | ' |
Accounting Year | |
The Company employs a calendar accounting year. The Company recognizes income | |
and expenses based on the accrual method of accounting under generally accepted | |
accounting principles. | |
Use of Estimates | ' |
Use of Estimates | |
The preparation of financial statements in conformity with generally accepted | |
accounting principles requires management to make estimates and assumptions that | |
affect reported amounts of assets and liabilities and disclosure of contingent | |
assets and liabilities at the date of the financial statements and the reported | |
amounts of revenues and expenses during the reporting period. Actual results | |
could differ from those estimates. | |
Products and Services, Geographic Areas and Major Customers | ' |
Products and Services, Geographic Areas and Major Customers | |
The Company plans to operate its domestic oil and gas properties, located in | |
Gray County in Texas, and possibly to acquire additional producing oil and gas | |
properties. The Company's major customers, to which the majority of its oil | |
production is sold, are Plains Marketing and ExxonMobil. | |
As of December 31, 2013, both Pimovi and Fuelist were in the development stage | |
of operations pursuing the development of their respective technologies, with no | |
significant products, services or major customers. | |
Net Loss per Share POLICY | ' |
Net Loss per Share | |
The net loss per share is computed by dividing the net loss by the weighted | |
average number of shares of common outstanding. Warrants, stock options, and | |
common stock issuable upon the conversion of the Company's preferred stock (if | |
any), are not included in the computation if the effect would be anti-dilutive | |
and would increase the earnings or decrease loss per share. | |
Cash and Cash Equivalents Policy | ' |
Cash and Cash Equivalents | |
The Company considers all highly liquid investments with an original maturity of | |
three months or less as cash equivalents. | |
Concentration of Credit Risk | ' |
Concentration of Credit Risk | |
Some of the Company's operating cash balances are maintained in accounts that | |
currently exceed federally insured limits. The Company believes that the | |
financial strength of deposit institutions mitigates the underlying risk of | |
loss. To date, these concentrations of credit risk have not had a significant | |
impact on the Company's financial position or results of operations. | |
Restricted Cash Policy | ' |
Restricted Cash | |
Included in restricted cash at December 31, 2013 and 2012 are deposits totaling | |
$25,000, in the form of bond issued to the Railroad Commission of Texas as | |
required for the Company's oil and gas activities which is renewed annually. | |
Accounts Receivable Policy | ' |
Accounts Receivable | |
The Company reviews accounts receivable periodically for collectibles, | |
establishes an allowance for doubtful accounts and records bad debt expense when | |
deemed necessary. Based on review of accounts receivable by management at year | |
end, including credit quality and subsequent collections from customers, an | |
allowance for doubtful accounts was not considered necessary or recorded at | |
December 31, 2013, and 2012. | |
Prepaid Expenses Policy | ' |
Prepaid Expenses | |
Certain expenses, primarily investment professional and consulting fees, have | |
been prepaid and will be used within one year. | |
Goodwill Policy | ' |
Goodwill | |
Goodwill represents the cost in excess of the fair value of net assets of the | |
acquisition. Goodwill is not amortized but is subject to periodic testing for | |
impairment. The Company tests goodwill for impairment using a two-step process. | |
The first step tests for potential impairment, while the second step measures | |
the amount of the impairment, if any. The Company performs the annual impairment | |
test during the last quarter of each year. As of December 31, 2013, we | |
determined there was no impairment of our goodwill. | |
Property Policy | ' |
Property | |
Property and equipment are recorded at cost and depreciated under the | |
straight-line method over the estimated useful life of the assets. The estimated | |
useful life of leasehold costs, equipment and tools ranges from five to seven | |
years. | |
Oil and Gas Properties Policy | ' |
Oil and Gas Properties | |
The Company follows the successful efforts method of accounting for its oil and | |
gas activities. Under this accounting method, costs associated with the | |
acquisition, drilling and equipping of successful exploratory and development | |
wells are capitalized. Geological and geophysical costs, delay rentals and | |
drilling costs of unsuccessful exploratory wells are charged to expense as | |
incurred. The carrying value of mineral leases is depleted over the minimum | |
estimated productive life of the leases, or ten years. Undeveloped properties | |
are periodically assessed for possible impairment due to un-recoverability of | |
costs invested. Cash received for partial conveyances of property interests is | |
treated as a recovery of cost and no gain or loss is recognized. | |
Depreciation Policy | ' |
Depreciation | |
Equipment is depreciated over the estimated useful lifes of the assets, which | |
ranged from 5 to 10 years, using the straight-line method. | |
Long-Lived Assets | ' |
Long-Lived Assets | |
The Company assesses potential impairment of its long-lived assets, which | |
include its property and equipment and its identifiable intangibles such as | |
deferred charges, under the guidance Topic 360 "PROPERTY, PLANT AND EQUIPMENT" | |
in the Accounting Standards Codification (the "ASC"). The Company must | |
continually determine if a permanent impairment of its long-lived assets has | |
occurred and write down the assets to their fair values and charge current | |
operations for the measured impairment. As of December 31, 2013 and 2012, we do | |
not believe any of our long-lived assets are impaired. | |
Asset Retirement Obligations Policy | ' |
Asset Retirement Obligations | |
The Company has not recorded an asset retirement obligation (ARO) in accordance | |
with ASC 410. Under ASC 410, a liability should be recorded for the fair value | |
of an asset retirement obligation when there is a legal obligation associated | |
with the retirement of a tangible long-lived asset, and the liability can be | |
reasonably estimated. The associated asset retirement costs should also be | |
capitalized and recorded as part of the carrying amount of the related oil and | |
gas properties. Management believes that not recording an ARO liability and | |
asset under ASC 410 is immaterial to the consolidated financial statements. | |
Income Tax Policy | ' |
Income Tax | |
Deferred taxes are provided on a liability method whereby deferred tax assets | |
are recognized for deductible temporary differences and operating loss | |
carry-forwards and deferred tax liabilities are recognized for taxable temporary | |
differences. Temporary differences are the differences between the reported | |
amounts of assets and liabilities and their tax bases. Deferred tax assets are | |
reduced by a valuation allowance when, in the opinion of management, it is more | |
likely than not that some portion or all of the deferred tax assets will not be | |
realized. Deferred tax assets and liabilities are adjusted for the effects of | |
changes in tax laws and rates on the date of enactment. We have recorded a | |
valuation allowance as of December 31, 2013 and 2012. | |
Revenue Recognition | ' |
Revenue Recognition | |
For our oil segment, revenue is recognized for the oil production when a product | |
is sold to a customer, either for cash or as evidenced by an obligation on the | |
part of the customer to pay. For our technology segment, revenue will be | |
recognized when earned, including both future subscriptions and other future | |
revenue streams, as required under relevant revenue recognition policies under | |
generally accepted accounting policies. | |
Fair Value Measurements and Disclosures Policy | ' |
Fair Value Measurements and Disclosures | |
The Company estimates fair values of assets and liabilities which require either | |
recognition or disclosure in the financial statements in accordance with FASB | |
ASC Topic 820 "FAIR VALUE MEASUREMENTS". There is no material impact on the 2013 | |
and 2012 consolidated financial statements related to fair value measurements | |
and disclosures. Fair value measurements include the following levels: | |
Level 1: Quoted market prices in active markets for identical assets or | |
liabilities. Valuations for assets and liabilities traded in active | |
exchange markets, such as the New York Stock Exchange. Level 1 also | |
includes U.S. Treasury and federal agency securities and federal | |
agency mortgage-backed securities, which are traded by dealers or | |
brokers in active markets. Valuations are obtained from readily | |
available pricing sources for market transactions involving identical | |
assets or liabilities. | |
Level 2: Observable market based inputs or unobservable inputs that are | |
corroborated by market data. Valuations for assets and liabilities | |
traded in less active dealer or broker markets. Valuations are | |
obtained from third party pricing services for identical or similar | |
assets or liabilities. | |
Level 3: Unobservable inputs that are not corroborated by market data. | |
Valuations for assets and liabilities that are derived from other | |
valuation methodologies, including option pricing models, discounted | |
cash flow models and similar techniques, and not based on market | |
exchange, dealer, or broker traded transactions. Level 3 valuations | |
incorporate certain assumptions and projections in determining the | |
fair value assigned to such assets or liabilities. | |
Fair Value of Financial Instruments Policy | ' |
Fair Value of Financial Instruments | |
The carrying value of the Company's financial instruments, including cash in | |
bank, restricted cash, revenue receivable and accounts payable as reported in | |
the accompanying consolidated balance sheet, approximates fair values. | |
Employee Stock-Based Compensation Policy | ' |
Employee Stock-Based Compensation | |
Compensation expense is recognized for performance-based stock awards if | |
management deems it probable that the performance conditions are or will be met. | |
Determining the amount of stock-based compensation expense requires us to | |
develop estimates that are used in calculating the fair value of stock-based | |
compensation, and also requires us to make estimates of assumptions including | |
expected stock price volatility which is derived based upon our historical stock | |
prices. | |
Business Combinations Policy | ' |
Business Combinations | |
The Company accounts for business combinations in accordance with FASB ASC Topic | |
805 "Business Combinations". This standard modifies certain aspects of how the | |
acquiring entity recognizes and measures the identifiable assets, the | |
liabilities assumed and the goodwill acquired in a business combination. The | |
Company entered into a business combination with The Fuelist, LLC on August 15, | |
2013 (See Note 7 for further disclosure). | |
Recent Accounting Pronouncements | ' |
Recent Accounting Pronouncements | |
In July 2013, FASB issued ASU No. 2013-11, INCOME TAXES (TOPIC 740): | |
PRESENTATION OF AN UNRECOGNIZED TAX BENEFIT WHEN A NET OPERATING LOSS | |
CARRYFORWARD, A SIMILAR TAX LOSS, OR A TAX CREDIT CARRYFORWARD EXISTS. This ASU | |
is effective for interim and annual periods beginning after December 15, 2013. | |
This update standardizes the presentation of an unrecognized tax benefit when a | |
net operating loss carryforward, a similar tax loss, or a tax credit | |
carryforward exists. Management does not anticipate that the accounting | |
pronouncement will have any material future effect on our consolidated financial | |
statements. | |
There were various other updates recently issued, most of which represented | |
technical corrections to the accounting literature or application to specific | |
industries, and are not expected to have a material impact on the Company's | |
financial position, results of operations or cash flows. | |
Income_Tax_Expense_is_comprise
Income Tax Expense is comprised of the following (Tables) | 12 Months Ended |
Dec. 31, 2013 | |
Income Tax Expense is comprised of the following Text Block: | ' |
Income Tax Expense is comprised of the following | ' |
Income Tax Expense is comprised of the following: | |
Fiscal Year | |
--------------------------- | |
2013 2012 | |
---------- ---------- | |
Current federal -- -- | |
Current state and local -- -- | |
Deferred federal, state and local -- -- | |
Income tax expense (benefit) is as follows | ' |
The difference between expected income tax expense (benefit) (computed by | |
applying the statutory rate of 35% to income before income taxes) and actual | |
income tax expense (benefit) is as follow: | |
Fiscal Year | |
--------------------------- | |
2013 2012 | |
---------- ---------- | |
Computed "expected" Tax (Benefit) $ (446,931) $ (203,128) | |
State and local income taxes, net | |
of federal effect -- -- | |
Changes in Valuation Allowance and | |
other adjustments 446,931 203,128 | |
---------- ---------- | |
$ -- $ -- | |
====bsp; ====pan> | |
Deferred Tax Assets and Liabilities | ' |
The tax effects of temporary differences that give rise to significant portions | |
of the deferred tax assets and deferred tax liabilities are presented below. | |
Fiscal Year | |
--------------------------- | |
2013 2012 | |
---------- ---------- | |
Deferred tax assets: | |
Net operating loss carry-forward $ 527,915 $ 414,867 | |
---------- ---------- | |
Total deferred tax assets 527,915 414,867 | |
Valuation allowance against deferred tax assets (524,414) (411,212) | |
Deferred tax assets net of valuation allowance 3,501 3,655 | |
Deferred tax liabilities: | |
Property and equipment 3,501 3,655 | |
---------- ---------- | |
Total deferred tax liabilities 3,501 3,655 | |
---------- ---------- | |
Net deferred tax assets $ -- $ -- | |
====bsp; ====pre> | |
STOCKHOLDERS_EQUITY_OUTSTANDIN
STOCKHOLDERS EQUITY OUTSTANDING WARRANTS (Tables) | 12 Months Ended |
Dec. 31, 2013 | |
STOCKHOLDERS EQUITY OUTSTANDING WARRANTS | ' |
Following outstanding warrants | ' |
On December 31, 2013, the Company had the following outstanding warrants: | |
Weighted | |
Remaining Average | |
Exercise Number of Contractual Life Exercise Price times Exercise | |
Price Shares (in years) Number of Shares Price | |
----- ------ ---------- ---------------- ----- | |
$0.025 2,000,000 1 $ 50,000 | |
$0.020 4,000,000 1 80,000 | |
$0.125 500,000 .50 62,500 | |
$0.125 420,000 1.50 52,500 | |
--------- -------- | |
6,920,000 $245,000 $0.035 | |
=== ===/pre> | |
Remaining | |
Number of Weighted Average Contractual Life | |
Warrants Shares Exercise Price (in years) | |
-------- ------ -------------- ---------- | |
Outstanding at January 1, 2012 6,920,000 $0.035 | |
--------- ------ | |
Issued -- -- | |
Exercised -- -- | |
Expired/Cancelled -- -- | |
--------- ------ | |
Outstanding at January 1, 2013 6,920,000 $0.035 | |
--------- ------ | |
Issued -- -- | |
Exercised -- -- | |
Expired/Cancelled -- -- | |
Outstanding at December 31, 2013 6,920,000 $0.035 1.0 | |
--------- ------ ------ | |
Exercisable at December 31, 2013 6,920,000 $0.035 1.0 | |
=== == == | |
Summary_of_fixed_assets_Tables
Summary of fixed assets (Tables) | 12 Months Ended |
Dec. 31, 2013 | |
Summary of fixed assets | ' |
Summary of fixed assets | ' |
A summary of fixed assets at: | |
Balance Balance | |
December 31, December 31, | |
2011 Additions Deletions 2012 | |
-------- --------- --------- -------- | |
Equipment $ -- $ -- $ -- $ -- | |
Leases & Lease Equipment 47,740 9,840 -- 57,580 | |
-------- -------- -------- -------- | |
Total Cost $ 47,740 $ 9,840 $ -- $ 57,580 | |
===nbsp; ===nbsp; ===nbsp; ===/pre> | |
Less: Accumulated Depreciation 18,815 5,020 -- 23,835 | |
-------- -------- -------- -------- | |
Total Property and Equipment, net $ 28,925 $ 5,020 $ -- $ 33,745 | |
===nbsp; ===nbsp; ===nbsp; ===/pre> | |
A summary of fixed assets at: | |
Balance Balance | |
December 31, December 31, | |
2012 Additions Deletions 2013 | |
-------- --------- --------- -------- | |
Equipment $ -- $ 4,454 $ -- $ 4,454 | |
Leases & Lease Equipment 57,580 - -- 57,580 | |
-------- --------- -------- -------- | |
Total Cost $ 57,580 $ - $ -- $ 62,034 | |
===nbsp; === ===nbsp; ===/pre> | |
Less: Accumulated Depreciation 23,835 5,917 -- 29,752 | |
-------- --------- -------- -------- | |
Total Property and Equipment, net $ 33,745 $ 5,917 $ -- $ 32,282 | |
===nbsp; === ===nbsp; ===/pre> | |
Non_Controlling_Interest_In_Fu
Non Controlling Interest In Fuelist (Tables) | 12 Months Ended |
Dec. 31, 2013 | |
Non Controlling Interest In Fuelist Table Text Block: | ' |
Non Controlling Interest In Fuelist | ' |
Cumulative results of these activities result in: | |
December 31, December 31, | |
2013 2012 | |
-------- -------- | |
Cash contributions paid by Chancellor to Fuelist $180,800 $ -- | |
Cash contributions paid by others to Fuelist 24,300 -- | |
Net loss prior to acquisition by Chancellor | |
attributable to non-controlling interest (29,006) -- | |
Net loss subsequent to acquisition by Chancellor | |
attributable to non-controlling interest (91,045) -- | |
-------- -------- | |
Total non-controlling interest in Fuelist $ 85,049 $ -- | |
===nbsp; ===/pre> | |
The_following_is_a_summary_of_
The following is a summary of changes in non-controlling interest in Fuelist as follows (Tables) | 12 Months Ended |
Dec. 31, 2013 | |
The following is a summary of changes in non-controlling interest in Fuelist as follows | ' |
The following is a summary of changes in non-controlling interest in Fuelist as follows | ' |
The following is a summary of changes in non-controlling interest in Fuelist | |
during the year ended December 31, 2013: | |
Non-controlling interest in Fuelist at December 31, 2012 $ -- | |
Cash contributions paid by Chancellor to Fuelist 180,800 | |
Cash contributions paid by others to Fuelist 24,300 | |
Net losses attributable to non-controlling interest in Fuelist (120,051) | |
--------- | |
Non-controlling interest in Fuelist at December 31, 2013 $ 85,049 | |
=== | |
Non_Controlling_Interest_Of_Ch
Non Controlling Interest Of Chancellor Related To Pimovi (Tables) | 12 Months Ended |
Dec. 31, 2013 | |
Non Controlling Interest Of Chancellor Related To Pimovi | ' |
Non Controlling Interest Of Chancellor Related To Pimovi | ' |
All non-controlling interest of Chancellor related to Pimovi is a result of | |
results of operations. Cumulative results of these activities result in: | |
December 31, December 31, | |
2013 2012 | |
-------- -------- | |
Cumulative net loss attributable to | |
non-controlling interest in Pimovi $(274,057) $ (32,400) | |
---------- ---------- | |
Total non-controlling interest in Pimovi $(274,057) $ (32,400) | |
====bsp; ====pre> | |
Summary_of_changes_in_noncontr
Summary of changes in non-controlling interest in Pimovi (Tables) | 12 Months Ended |
Dec. 31, 2013 | |
Summary of changes in non-controlling interest in Pimovi | ' |
Summary of changes in non-controlling interest in Pimovi | ' |
The following is a summary of changes in non-controlling interest in Pimovi | |
during the year ended December 31, 2013: | |
Non-controlling interest in Pimovi at December 31, 2012 $ (32,400) | |
Net loss attributable to non-controlling interest in Pimovi (241,757) | |
--------- | |
Non-controlling interest in Pimovi at December 31, 2013 $(274,157) | |
=== | |
Oil_And_Natural_Gas_Properties
Oil And Natural Gas Properties Located (Tables) | 12 Months Ended |
Dec. 31, 2013 | |
Oil And Natural Gas Properties Located | ' |
Oil And Natural Gas Properties Located | ' |
oil and natural gas properties located in Gray and Hutchinson | |
counties in Texas. | |
Total Future | |
Net Oil Net Gas Total Future Severance & Discounted | |
Reserves Reserves Total Future Projected Ad Valorem Future Net Per Annum | |
Proved Developed (Barrels) (Mcf) Net Revenue Cost Taxes cash flow as 10% | |
---------------- --------- ----- ----------- ---- ----- --------- ------ | |
2013 | |
Producing 20,421 -- $1,854,188 $920,861 $213,232 $ 720,099 $276,597 | |
2012 | |
Producing 21,281 -- $1,982,108 $571,680 $170,461 $1,239,966 $377,885 | |
Summary_Of_Changes_In_Estimate
Summary Of Changes In Estimated Reserves (Tables) | 12 Months Ended |
Dec. 31, 2013 | |
Summary Of Changes In Estimated Reserves | ' |
Summary Of Changes In Estimated Reserves | ' |
Presented below is a summary of changes in estimated reserves of the Company | |
during the periods ended December 31, 2013 and 2012: | |
Oil Total | |
(mmbbl) (bcfe) | |
-------- ------- | |
31-Dec-13 | |
Proved reserves, beginning of period 21.281 0.127 | |
Extensions, discoveries and other additions -- -- | |
Revisions of previous estimates -- -- | |
Production (0.617) (0.006) | |
Sale of reserves-in-place -- -- | |
Purchase of reserves-in-place -- -- | |
-------- ------- | |
Proved reserves, end of period 20.421 0.123 | |
===nbsp; ===pre> | |
Proved developed reserves: | |
Beginning of period 21.281 0.104 | |
===nbsp; ===pre> | |
End of period 20.421 0.123 | |
===nbsp; ===pre> | |
31-Dec-12 | |
Proved reserves, beginning of period 17.330 0.104 | |
Extensions, discoveries and other additions -- -- | |
Revisions of previous estimates 5.018 0.029 | |
Production (1.067) (0.006) | |
Sale of reserves-in-place -- -- | |
Purchase of reserves-in-place -- -- | |
-------- ------- | |
Proved reserves, end of period 21.281 0.127 | |
===nbsp; ===pre> | |
Proved developed reserves: | |
Beginning of period 17.330 0.099 | |
===nbsp; ===pre> | |
End of period 21.281 0.127 | |
===nbsp; ===pre> | |
Capitalized_Costs_Relating_To_
Capitalized Costs Relating To Oil And Gas Producing Activities (Tables) | 12 Months Ended |
Dec. 31, 2013 | |
Capitalized Costs Relating To Oil And Gas Producing Activities | ' |
Capitalized Costs Relating To Oil And Gas Producing Activities | ' |
The aggregate amounts of capitalized costs relating to our oil and gas producing | |
activities and the aggregate amounts of related accumulated depletion, | |
depreciation, and amortization as of December 31, 2013 and 2012 are as follows. | |
Years Ended December 31, | |
----------------------------- | |
2013 2012 | |
-------- -------- | |
Unproved oil and gas properties -- -- | |
Proved oil and gas properties $ 57,580 $ 57,580 | |
Accumulated depreciation, depletion, and | |
amortization, and valuation allowances (29,593) (23,835) | |
-------- -------- | |
Net capitalized costs $ 27,987 $ 33,745 | |
===nbsp; ===/pre> | |
Costs_Incurred_By_In_Oil_And_N
Costs Incurred By In Oil And Natural GasProperty (Tables) | 12 Months Ended |
Dec. 31, 2013 | |
Costs Incurred By In Oil And Natural GasProperty | ' |
Costs Incurred By In Oil And Natural GasProperty | ' |
The costs incurred by the Company in oil and natural gas property exploration, | |
development and acquisition activities are summarized as follows: | |
Years Ended December 31, | |
----------------------------- | |
2013 2012 | |
-------- -------- | |
Acquisition of properties | |
Proved $ -- $ -- | |
Unproved -- -- | |
Exploration costs -- -- | |
Development costs $ -- $ 9,840 | |
Oil_And_Natural_Gas_Operations
Oil And Natural Gas Operations (Tables) | 12 Months Ended |
Dec. 31, 2013 | |
Oil And Natural Gas Operations | ' |
Oil And Natural Gas Operations | ' |
Company's oil and natural gas operations. | |
Years Ended December 31, | |
----------------------------- | |
2013 2012 | |
-------- -------- | |
Revenues | |
Sales, net of royalties paid $ 55,400 $ 91,377 | |
Transfers -- -- | |
-------- -------- | |
Total Revenues 55,400 91,377 | |
Production costs (79,290) (70,858) | |
Exploration expenses -- -- | |
Depreciation, depletion and | |
amortization and valuation provisions (5,758) (5,020) | |
Income tax expenses (benefits) -- -- | |
-------- -------- | |
Results of operations from producing | |
activities (excluding corporate overhead | |
and interest costs) $(29,648) $ 15,499 | |
===nbsp; ===/pre> | |
Standardized_Measure_Of_Discou
Standardized Measure Of Discounted Future Net Cash Flows (Tables) | 12 Months Ended |
Dec. 31, 2013 | |
Standardized Measure Of Discounted Future Net Cash Flows | ' |
Standardized Measure Of Discounted Future Net Cash Flows | ' |
The principal sources of change in the standardized measure of discounted future | |
net cash flows for the years ended December 31, 2013 and 2012 are as follows: | |
Years Ended December 31, | |
-------------------------- | |
2013 2012 | |
-------- -------- | |
Net change in sales and transfer prices and | |
in production (lifting) costs related to | |
future production $218,057 $ 80,375 | |
Changes in estimated future development costs -- -- | |
Sales and transfers of oil and gas produced | |
during the period, net of production taxes (55,400) (91,377) | |
Net change due to purchase of minerals in place -- -- | |
Net change due to revisions in quantity estimates (61,369) 142,344 | |
Previously estimated development costs incurred | |
during the period -- -- | |
Accretion of discount -- -- | |
Net change due to sale of minerals in place -- -- | |
Net change in income taxes -- -- | |
-------- -------- | |
Aggregate change in the standardized measure of | |
discounted future net cash flows for the year $101,288 $131,342 | |
===nbsp; ===/pre> | |
Proved_Reserves_And_Future_Net
Proved Reserves And Future Net Revenues (Tables) | 12 Months Ended |
Dec. 31, 2013 | |
Proved Reserves And Future Net Revenues | ' |
Proved Reserves And Future Net Revenues | ' |
proved reserves and future | |
net revenues were as follows: | |
At December 31, | |
--------------------- | |
2013 2012 | |
------- ------- | |
Oil (per barrel) $ 90.80 $ 93.14 | |
Natural gas (per Mcf) $ n/a $ n/a | |
Restricted_Cash_Consists_Of_De
Restricted Cash Consists Of (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
Restricted Cash Consists Of: | ' | ' |
Restricted cash totaled | $25,000 | $25,000 |
Income_Tax_Expense_comprised_o
Income Tax Expense comprised of the following (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Income Tax Expense comprised of the following: | ' | ' |
Current federal | $0 | $0 |
Current state and local | 0 | 0 |
Deferred federal, state and local | $0 | $0 |
Income_before_income_taxes_and
Income before income taxes) and actual income tax expense (benefit) is as follows (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Income before income taxes) and actual income tax expense (benefit) is as follows | ' | ' |
Computed "expected" Tax (Benefit) | ($446,931) | ($203,128) |
State and local income taxes, net of federal effect | 0 | 0 |
Changes in Valuation Allowance and other adjustments | 446,931 | 203,128 |
Total Income Tax Expense Benefit | $0 | $0 |
Significant_portions_of_deferr
Significant portions of deferred tax assets and liabilities are presented below (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
Deferred tax assets: | ' | ' |
Net operating loss carry-forward | $527,915 | $414,867 |
Total deferred tax assets | 527,915 | 414,867 |
Valuation allowance against deferred tax assets | -524,414 | -411,212 |
Deferred tax assets net of valuation allowance | 3,501 | 3,655 |
Deferred tax liabilities: | ' | ' |
Property and equipment | 3,501 | 3,655 |
Total deferred tax liabilities | 3,501 | 3,655 |
Net deferred tax assets | $0 | $0 |
EQUITY_TRANSACTIONS_Details
EQUITY TRANSACTIONS (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Preferred Stock: | ' | ' |
Issuance of shares | 250,000 | ' |
Issuance of shares par value per share | $1,000 | ' |
Series B convertible preferred shares into shares of common stock | $166.67 | ' |
Common Stock: | ' | ' |
Authorized shares of common stock | 250,000,000 | ' |
Authorized shares of common stock par value | $0.00 | ' |
Common stock shares issued and outstanding | 73,760,030 | ' |
Chancellor issued shares of common stock | 4,200,000 | ' |
Shares issued on February 25, 2013 | 1,000,000 | ' |
Shares issued on March 25, 2013 | 1,000,000 | ' |
Shares issued on August 19, 2013 | 2,000,000 | ' |
Shares issued to unrelated parties for consulting fees incurred | 2,000,000 | ' |
STOCK BASED COMPENSATION: | ' | ' |
Professional fees expense related to stock | $123,000 | $42,600 |
Non-employee Stock Options and Warrants: | ' | ' |
Outstanding warrants expiring December 31, 2014 to purchase an aggregate shares of common stock | 6,000,000 | ' |
Warrants to purchase shares | 2,000,000 | ' |
Warrants to purchase shares at an exercise price per share | $0.03 | ' |
Warrants to purchase shares. | 4,000,000 | ' |
Warrants to purchase shares at an exercise price per share. | $0.02 | ' |
Issued additional warrants expiring June 30, 2014 | 500,000 | ' |
Issued additional warrants expiring June 30, 2015 to purchase | 420,000 | ' |
Shares of common stock at an exercise price | $0.13 | ' |
The_Following_outstanding_warr
The Following outstanding warrants (Details) | Dec. 31, 2013 |
Number of Shares | ' |
Exercise Price $0.025 | 2,000,000 |
Exercise Price $0.020 | 4,000,000 |
Exercise Price $0.125 | 500,000 |
Exercise Price $0.125 | 420,000 |
Total oustanding warrants number of shares | 6,920,000 |
Remaining Contractual Life (in years) | ' |
Exercise Price $0.025 | 1 |
Exercise Price $0.020 | 1 |
Exercise Price $0.125 | 0.5 |
Exercise Price $0.125 | 1.5 |
Exercise Price times Number of Shares | ' |
Exercise Price $0.025 | 50,000 |
Exercise Price $0.020 | 80,000 |
Exercise Price $0.125 | 62,500 |
Exercise Price $0.125 | 52,500 |
Total oustanding warrants number of shares | 245,000 |
Weighted Average Exercise Price | ' |
Total oustanding warrants number of shares | 0.035 |
Outstanding_warrants_As_Follow
Outstanding warrants As Follows (Details) | Number of Shares. | Weighted Average Exercise Price. | Remaining Contractual Life (in years). |
Outstanding at Dec. 31, 2011 | 6,920,000 | 0.035 | ' |
Issued | 0 | ' | ' |
Exercised | 0 | ' | ' |
Expired/Cancelled | 0 | ' | ' |
Outstanding at Dec. 31, 2012 | 6,920,000 | 0.035 | ' |
Issued | 0 | ' | ' |
Exercised | 0 | ' | ' |
Expired/Cancelled | 0 | ' | ' |
Exercisable at Dec. 31, 2013 | 6,920,000 | 0.035 | 1 |
Outstanding at Dec. 31, 2013 | 6,920,000 | 0.035 | 1 |
Summary_of_fixed_assets_at_Det
Summary of fixed assets at (Details) (USD $) | Equipment | Leases & Lease Equipment | Total Cost | Less: Accumulated Depreciation | Total Property and Equipment, net |
Balance. at Dec. 31, 2011 | $0 | $47,740 | $47,740 | $18,815 | $28,925 |
Additions | 0 | 9,840 | 9,840 | 5,020 | 5,020 |
Deletions | 0 | ' | ' | ' | ' |
Balance. at Dec. 31, 2012 | 0 | 57,580 | 57,580 | 23,835 | 33,745 |
Additions | 4,454 | 0 | 0 | 5,917 | 5,917 |
Deletions | 0 | ' | ' | ' | ' |
Balance. at Dec. 31, 2013 | $4,454 | $57,580 | $62,034 | $29,752 | $32,282 |
CONTRACTUAL_OBLIGATIONS_Detail
CONTRACTUAL OBLIGATIONS (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Feb. 25, 2013 | |
CONTRACTUAL OBLIGATIONS AS FOLLOWS | ' | ' |
Agreement with a new investor relations consultant, which pays the consultant a fee monthly | ' | $9,000 |
Common stockgranted to the consultant | ' | 1,000,000 |
Prepaid expenses recorded in current assets. | 9,500 | ' |
Company recognized consulting fees related to the agreement | 104,500 | ' |
Obligated to pay rent per year | 6,000 | ' |
Recognized in sub-lease rent revenue | 10,800 | ' |
Rent expense in other operating expenses | $11,600 | ' |
RELATED_PARTY_TRANSACTIONS_Con
RELATED PARTY TRANSACTIONS Consists Of The Folowing (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
RELATED PARTY TRANSACTIONS Consists Of The Folowing: | ' | ' |
Management and consulting services | $108,000 | $104,000 |
Paid directors fees | 30,000 | 44,500 |
Paid professional services to a company | $2,400 | ' |
The_initial_fair_value_of_asse
The initial fair value of assets acquired and liabilities assumed and allocated to goodwill (Details) (USD $) | Dec. 31, 2013 |
The initial fair value of assets acquired and liabilities assumed and allocated to goodwill: | ' |
Issuance of 2,000,000 shares of common stock | $156,000 |
Contributions payable | 271,200 |
Total | 427,200 |
Amount paid by Chancellor towards contributions | 180,800 |
Outstanding contributions | $90,400 |
Noncontrolling_interest_of_Cha
Non-controlling interest of Chancellor related to Fuelist (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
Non-controlling interest of Chancellor related to Fuelist: | ' | ' |
Cash contributions paid by Chancellor to Fuelist | $180,800 | $0 |
Cash contributions paid by others to Fuelist | 24,300 | 0 |
Net loss prior to acquisition by Chancellor attributable to non-controlling interest | -29,006 | 0 |
Net loss subsequent to acquisition by Chancellor attributable to non-controlling interest | -91,045 | 0 |
Total non-controlling interest in Fuelist | $85,049 | $0 |
The_following_is_a_summary_of_1
The following is a summary of changes in non-controlling interest in Fuelist (Details) (Changes in non-controlling interest in Fuelist, USD $) | Changes in non-controlling interest in Fuelist |
USD ($) | |
Non-controlling interest in Fuelist at Dec. 31, 2012 | $0 |
Cash contributions paid by Chancellor to Fuelist | 180,800 |
Cash contributions paid by others to Fuelist | 24,300 |
Net losses attributable to non-controlling interest in Fuelist | -120,051 |
Non-controlling interest in Fuelist at Dec. 31, 2013 | $85,049 |
Noncontrolling_interest_of_Cha1
Non-controlling interest of Chancellor related to Pimovi (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
Non-controlling interest of Chancellor related to Pimovi: | ' | ' |
Cumulative net loss attributable to non-controlling interest in Pimovi | ($274,057) | ($32,400) |
Total non-controlling interest in Pimovi | ($274,057) | ($32,400) |
Changes_in_noncontrolling_inte
Changes in non-controlling interest in Pimovi during the year (Details) (changes in non-controlling interest in Pimovi, USD $) | changes in non-controlling interest in Pimovi |
USD ($) | |
Non-controlling interest in Pimovi at Dec. 31, 2012 | ($32,400) |
Net loss attributable to non-controlling interest in Pimovi | -241,757 |
Non-controlling interest in Pimovi at Dec. 31, 2013 | ($274,157) |
SUBSEQUENT_EVENTS_AS_FOLLOWS_D
SUBSEQUENT EVENTS AS FOLLOWS (Details) (USD $) | Feb. 12, 2014 |
SUBSEQUENT EVENTS AS FOLLOWS: | ' |
Board approved the issuance of total shares to two unrelated individuals | 490,000 |
Professional and Consulting Fee Expense in the first quarter of 2014 related to shares | $26,950 |
Proved_Developed_Producing_Det
Proved Developed Producing (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Proved Developed Producing as follows: | ' | ' |
Net Oil Reserves (Barrels) | $20,421 | $21,281 |
Net Gas Reserves (Mcf) | 0 | 0 |
Total Future Net Revenue | 1,854,188 | 1,982,108 |
Total Future Projected Cost | 920,861 | 571,680 |
Total Future Severance & Ad Valorem Taxes | 213,232 | 170,461 |
Future Net cash flow | 720,099 | 1,239,966 |
Discounted Per Annum as 10% | $276,597 | $377,885 |