Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended | |
Mar. 31, 2014 | Sep. 19, 2014 | |
Document And Entity Information | ' | ' |
Entity Registrant Name | 'Avalon Oil & Gas, Inc. | ' |
Entity Central Index Key | '0000918573 | ' |
Document Type | '10-K | ' |
Document Period End Date | 31-Mar-14 | ' |
Amendment Flag | 'false | ' |
Current Fiscal Year End Date | '--03-31 | ' |
Is Entity a Well-known Seasoned Issuer? | 'No | ' |
Is Entity a Voluntary Filer? | 'No | ' |
Is Entity's Reporting Status Current? | 'Yes | ' |
Entity Filer Category | 'Smaller Reporting Company | ' |
Entity Public Float | ' | $11,858 |
Entity Common Stock, Shares Outstanding | ' | 11,858,062 |
Document Fiscal Period Focus | 'FY | ' |
Document Fiscal Year Focus | '2013 | ' |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Mar. 31, 2014 | Mar. 31, 2013 |
Current Assets: | ' | ' |
Cash and cash equivalents | $223,914 | $129,931 |
Accounts receivable, net of allowance for doubtful accounts of $0 and $0 | 54,226 | 52,667 |
Notes receivable | 15,714 | 12,148 |
Deposits and prepaid expenses | 302,057 | 160,000 |
Receivables from joint interests, net of allowance for doubtful accounts of $136,873 and $140,227 | 20,000 | 20,000 |
Total current assets | 615,911 | 374,746 |
Notes receivable | 2,857 | 12,857 |
Unproven oil & gas properties | 1,867,183 | 1,867,183 |
Producing oil & gas properties, net | 149,477 | 172,833 |
Intellectual property rights, net | 95,815 | 138,402 |
Total Assets | 2,731,243 | 2,566,021 |
Current Liabilities: | ' | ' |
Accounts payable and accrued liabilities | 579,536 | 630,674 |
Accrued payroll - related parties | 207,817 | 202,217 |
Dividends payable | 66,730 | 40,750 |
Accrued liabilities to joint interest | 11,596 | 11,881 |
Notes payable - related party | 26,000 | 21,000 |
Notes payable, net of discount | ' | 250,000 |
Total current liabilities | 891,679 | 1,156,522 |
Notes payable, net of discount | 514,300 | 864,750 |
Accrued asset retirement obligation (ARO) liability | 112,927 | 102,661 |
Total Liabilities | 2,183,468 | 2,123,933 |
Stockholders' Equity | ' | ' |
Preferred stock, Series A: $.10 par value, 1,000,000 shares authorized, 100 shares issued and outstanding stated at redemption value, as of December 31, 2013 and March 31, 2013, respectively; Series B: $.10 par value, 2,000 shares authorized, 200 shares issued and outstanding stated at redemption value as of December 31, 2013 and March 31, 2013, respectively | 10 | 10 |
Preferred stock, Series B, $.10 par value, 2,000 shares authorized; 1,300 shares and 150 shares issued and outstanding started at redemption value as March 31, 2014 and March 31, 2013, respectively | 130 | 15 |
Common stock, $.001 par value: 200,000,000 shares authorized 11,658,062 and 6,208,062 shares issued and outstanding at March 31, 2014 and March 31, 2013, respectively | 11,659 | 6,209 |
Additional paid in capital | 32,024,126 | 29,758,709 |
Accumulated deficit | -30,823,588 | -29,972,830 |
Total Stockholders Equity | 1,212,337 | 442,088 |
Total Liabilities and Stockholders' Equity | 2,731,243 | 2,566,021 |
Preferred stock, Series A | ' | ' |
Stockholders' Equity | ' | ' |
Preferred stock, authorized 1,000,000; $.10 par value | 1,000,000 | 1,000 |
Preferred stock, Series A: $.10 par value, 1,000,000 shares authorized, 100 shares issued and outstanding stated at redemption value, as of December 31, 2013 and March 31, 2013, respectively; Series B: $.10 par value, 2,000 shares authorized, 200 shares issued and outstanding stated at redemption value as of December 31, 2013 and March 31, 2013, respectively | 500,000 | 500,000 |
Preferred stock, Series B | ' | ' |
Stockholders' Equity | ' | ' |
Preferred stock, authorized 1,000,000; $.10 par value | 2,000 | 2,000 |
Preferred stock, Series A: $.10 par value, 1,000,000 shares authorized, 100 shares issued and outstanding stated at redemption value, as of December 31, 2013 and March 31, 2013, respectively; Series B: $.10 par value, 2,000 shares authorized, 200 shares issued and outstanding stated at redemption value as of December 31, 2013 and March 31, 2013, respectively | $200,000 | $150,000 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parenthetical) (USD $) | Mar. 31, 2014 | Mar. 31, 2013 |
Allowance for doubtful accounts | $0 | $0 |
Allowance for doubtful accounts on receivables from joint interests | $136,873 | $140,277 |
Preferred stock, shares issued | 100 | ' |
Common stock, par value | $0.00 | ' |
Common stock, shares authorized | 200,000,000 | ' |
Common stock, shares issued | 6,208,062 | 2,558,584 |
Common stock, shares outstanding | 11,658,062 | 6,208,062 |
Preferred stock, Series A | ' | ' |
Preferred stock, par value | $0.10 | $0.10 |
Preferred stock, shares authorized | 1,000,000 | 1,000 |
Preferred stock, shares issued | 100 | 100 |
Preferred stock, shares outstanding | 100 | 100 |
Preferred stock, Series B | ' | ' |
Preferred stock, par value | $0.10 | $0.10 |
Preferred stock, shares authorized | 2,000 | 2,000 |
Preferred stock, shares issued | 1,300 | 1,300 |
Preferred stock, shares outstanding | 150 | 150 |
Consolidated_Statements_of_Ope
Consolidated Statements of Operations (USD $) | 12 Months Ended | |
Mar. 31, 2014 | Mar. 31, 2013 | |
Income Statement [Abstract] | ' | ' |
Oil & Gas Sales | $156,322 | $163,574 |
Operating expenses: | ' | ' |
Lease operating expense, severance taxes and ARO accretion | 134,033 | 124,902 |
Selling, general and administrative expenses | 602,303 | 537,002 |
Depreciation, depletion, and amortization | 63,046 | 76,133 |
Total operating expenses | 799,382 | 738,037 |
Operating loss | -643,060 | -574,463 |
Other income (expense): | ' | ' |
Gain (Loss) on extinguishment of debt | 5,884 | ' |
Gain (Loss) on conversion of notes payable | -57,050 | -48,711 |
Interest expense, net | -91,752 | -126,140 |
Total other income (expense) | -142,918 | -174,851 |
Loss before income tax | -785,978 | -749,314 |
Provision for income taxes | ' | ' |
Net loss | -785,978 | -749,314 |
Preferred stock dividends | -64,780 | -40,000 |
Net loss attributable to common shareholders | ($850,758) | ($789,314) |
Net loss per share - basic and diluted | ($0.09) | ($0.23) |
Weighted average shares outstanding - basic and diluted | 10,009,185 | 3,474,245 |
Consolidated_Statement_of_Cash
Consolidated Statement of Cash Flows (USD $) | 12 Months Ended | |
Mar. 31, 2014 | Mar. 31, 2013 | |
Cash flows from operating activities: | ' | ' |
Net (loss) | ($785,978) | ($749,314) |
Adjustments to reconcile net loss to net cash used in operating activities: | ' | ' |
Common stock issued for services | 262,001 | 197,500 |
(Gain) on extinguishment of debt | -5,884 | ' |
Loss on conversion of debt | 57,050 | 48,711 |
Accrued interest | ' | ' |
Stock issued for reduction of interest on notes payable | ' | 2,409 |
Depreciation | ' | 1,033 |
Depletion | 20,459 | 32,516 |
Depreciation and ARO liability | 2,896 | 2,896 |
Amortization of discount on notes payable | ' | 29,069 |
Amortization of intangible assets | 42,587 | 42,584 |
Net change in operating assets and liabilities: | ' | ' |
Accounts receivable | -1,559 | -18,709 |
Joint interest receivable | ' | ' |
Prepaid expenses | ' | 48,703 |
Accounts payable and other accrued expenses | 11,568 | 5,852 |
Dividends payable | ' | 5,300 |
Due to related party | 5,000 | 6,000 |
Asset retirement obligation | 10,266 | 11,567 |
Net cash (used) in operating activities | -381,594 | -333,883 |
Cash flows from investing activities: | ' | ' |
Deposit on the purchase of additional assets | -142,057 | ' |
Principle payments received on notes receivable | 6,434 | 4,281 |
Net cash provided in investing activities | -135,623 | 4,281 |
Cash flows from financing activities: | ' | ' |
Payments on notes payable | ' | -100,000 |
Proceeds from notes payable | ' | 145,000 |
Common stock issued for cash | 300,000 | 150,000 |
Preferred stock B issued for cash | 350,000 | 150,000 |
Dividends paid on preferred stock | -38,800 | ' |
Net cash provided in financing activities | 611,200 | 345,000 |
Net (decrease) in cash and cash equivalents | 93,983 | 15,398 |
Cash and cash equivalents at beginning of period | 129,931 | 114,533 |
Cash and cash equivalents at end of period | 223,914 | 129,931 |
Supplemental disclosures of cash flow information: | ' | ' |
Cash paid during the period for Interest | 72,000 | 20,000 |
Cash paid during the period for Taxes | ' | ' |
Common stock issued in exchange for consulting services | 262,001 | 197,500 |
Common stock issued for conversion of note payable, accrued interest, and assumption of debt | 109,007 | 750 |
Gain (Loss) on extinguishment of debt | 5,884 | ' |
Preferred stock issued for conversion of notes payable, accrued interest, and assumption of debt | $600,000 | ' |
STATEMENT_OF_CHANGES_IN_SHAREH
STATEMENT OF CHANGES IN SHAREHOLDERS' DEFICIT (USD $) | Preferred Stock, Series A | Preferred Stock, Series B | Common Stock | Additional Paid-in Capital | Accumulated Deficit | Total |
Beginning balance at Mar. 31, 2012 | $10 | $15 | $2,559 | $29,958,925 | ($29,223,516) | $737,993 |
Beginning balance, Shares at Mar. 31, 2012 | 100 | 150 | 2,558,584 | ' | ' | ' |
Stock issued for consulting services | ' | ' | 1,342 | 196,158 | ' | 197,500 |
Stock issued for consulting services, Shares | ' | ' | 1,341,617 | ' | ' | ' |
Stock issued for conversion of note payable | ' | ' | 891 | 105,019 | ' | 105,910 |
Stock issued for conversion of note payable, Shares | ' | ' | 891,195 | ' | ' | ' |
Stock issued for cash | ' | ' | 1,500 | 148,500 | ' | 150,000 |
Stock issued for cash, Shares | ' | ' | 1,500,000 | ' | ' | ' |
Common stock cancelled and issued in error | ' | ' | -83 | 82 | ' | -1 |
Common stock cancelled and issued in error, Shares | ' | ' | -83,334 | ' | ' | ' |
Net Loss | ' | ' | ' | ' | -749,314 | -749,314 |
Balance at Mar. 31, 2013 | 10 | 15 | 6,209 | 30,408,684 | -29,972,830 | 442,088 |
Balance, Shares at Mar. 31, 2013 | 100 | 150 | 6,208,062 | ' | ' | ' |
Stock issued for consulting services | ' | ' | 3,100 | 258,900 | ' | 262,000 |
Stock issued for consulting services, Shares | ' | ' | 3,100,000 | ' | ' | ' |
Stock issued for conversion of note payable | ' | ' | 1,050 | 107,957 | ' | 109,007 |
Stock issued for conversion of note payable, Shares | ' | ' | 1,050,000 | ' | ' | ' |
Preferred Stock issued for conversion of note payable | ' | 60 | ' | 599,940 | ' | 600,000 |
Preferred Stock issued for conversion of note payable, Shares | ' | 600 | ' | ' | ' | ' |
Stock issued for cash | ' | ' | 3,300 | 296,700 | ' | 300,000 |
Stock issued for cash, Shares | ' | ' | 3,300,000 | ' | ' | ' |
Preferred Stock issued for cash | ' | 35 | ' | 349,965 | ' | 350,000 |
Preferred Stock issued for cash, Shares | ' | 350 | ' | ' | ' | ' |
Preferred stock issued for common stock | ' | 20 | -2,000 | 1,980 | ' | ' |
Preferred stock issued for common stock | ' | 200 | -2,000,000 | ' | ' | ' |
Preferred Dividends | ' | ' | ' | ' | -64,780 | -64,780 |
Net Loss | ' | ' | ' | ' | -785,978 | -785,978 |
Balance at Mar. 31, 2014 | $10 | $130 | $11,659 | $32,024,126 | ($30,823,588) | $1,212,337 |
Balance, Shares at Mar. 31, 2014 | 100 | 1,300 | 11,658,062 | ' | ' | ' |
SUMMARY_OF_SIGNIFICANT_ACCOUNT
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended | ||||
Mar. 31, 2014 | |||||
Accounting Policies [Abstract] | ' | ||||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ' | ||||
NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |||||
Nature of Operations | |||||
Avalon Oil & Gas, Inc. (the "Company") was originally incorporated in Colorado in April 1991 under the name Snow Runner (USA), Inc. The Company was the general partner of Snow Runner (USA) Ltd.; a Colorado limited partnership to sell proprietary snow skates under the name "Sled Dogs" which was dissolved in August 1992. In late 1993, the Company relocated its operations to Minnesota and in January 1994 changed our name to Snow Runner, Inc. In November 1994 we changed our name to the Sled Dogs Company. On November 5, 1997, we filed for protection under Chapter 11 of the U.S. Bankruptcy Code. In September 1998, we emerged from protection of Chapter 11 of the U.S. Bankruptcy Code. In May, 1999, we changed our state of domicile to Nevada and our name to XDOGS.COM, Inc. On July 22, 2005, the Board of Directors and a majority of the Company's shareholders approved an amendment to our Articles of Incorporation to change the Company's name to Avalon Oil & Gas, Inc., and to increase the authorized number of shares of our common stock from 200,000,000 shares to 1,000,000,000 shares par value of $0.001, and engage in the acquisition of producing oil and gas properties. On November 16, 2011, a majority of the Company's shareholders approved an amendment to our Articles of Incorporation to increase the authorized number of shares of our common stock from 1,000,000,000 shares to 3,000,000,000 shares par value of $0.001. | |||||
On June 4, 2012 the Board of Directors approved an amendment to our Articles of Incorporation to a reverse split of the issued and outstanding shares of Common Stock of the Corporation (“Shares”) such that each holder of Shares as of the record date of June 4, 2012 shall receive one (1) post-split Share on the effective date of June 4, 2012 for each three hundred (300) Shares owned. The reverse split was effective on July 23, 2012. On September 28, 2012, we held a special meeting of Avalon’s shareholders and approved an amendment to the Company’s Articles of Incorporation such that the Company would be authorized to issue up to 200,000,000 shares of common stock. We filed an amendment with the Nevada Secretary of State on April 10, 2013, to increase our authorized shares to 200,000,000. | |||||
The Company is currently in the process of raising funds to acquire oil and gas properties and related oilfield technologies, which the Company plans to develop into commercial applications. | |||||
On September 22, 2007 the Company entered into an agreement with respect to its purchase of a 75.6% interest in Oiltek, Inc. (Oiltek) for $50,000 and the right of Oiltek to market Avalon's intellectual property. Oiltek is consolidated in these financial statements with a minority interest shown. | |||||
Principles of consolidation | |||||
The consolidated financial statements include the accounts of the Company and The Company’s subsidiary Oiltek, Inc. All significant inter-company items have been eliminated in consolidation. | |||||
Going Concern | |||||
The March 31, 2014, financial statements have been prepared assuming the Company will continue as a going concern. However, the Company has incurred a loss of $30,823,588 from inception through March 31, 2014, and has a working capital deficiency of $275,768 and stockholders’ equity of $1,212,337 as of March 31, 2014. The Company currently has minimal revenue generating operations and expects to incur substantial operating expenses in order to expand its business. As a result, the Company expects to incur operating losses for the foreseeable future. The Company will continue to seek equity and debt financing to meet our operating losses. The accompanying consolidated financial statements do not include any adjustments that might become necessary should the Company be unable to continue as a going concern. | |||||
Use of Estimates | |||||
The preparation of financial statements in conformity with generally accepted accounting principles generally accepted in the United States of America requires us to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Actual results could differ from those estimates and assumptions. | |||||
Basis of Accounting | |||||
The Company's financial statements are prepared using the accrual method of accounting. Revenues are recognized when earned and expenses when incurred. | |||||
Cash and Cash Equivalents | |||||
Cash and cash equivalents consist primarily of cash on deposit, certificates of deposit, money market accounts, and investment grade commercial paper that are readily convertible into cash and purchased with original maturities of three months or less. The Company maintains its cash balances at several financial institutions. Accounts at the institutions are insured by the Federal Deposit Insurance Corporation up to $250,000. | |||||
Fair Value of Financial Instruments | |||||
The Company's financial instruments are cash and cash equivalents, accounts receivable, accounts payable, notes payable, notes receivable and long-term debt. The recorded values of cash and cash equivalents, accounts receivable, and accounts payable approximate their fair values based on their short-term nature. The recorded values of notes payable, notes receivable and long-term debt approximate their fair values, as interest approximates market rates. | |||||
Accounts Receivable | |||||
Management periodically assesses the collectability of the Company's accounts receivable. Accounts determined to be uncollectible are charged to operations when that determination is made. The Company had an allowance for accounts receivable of $136,873 and $140,227 for the years ended March 31, 2014 and 2013. | |||||
Oil and Natural Gas Properties | |||||
The Company follows the full cost method of accounting for natural gas and oil properties. Under the full cost concept, all costs incurred in acquiring, exploring, and developing properties cost center are capitalized when incurred and are amortized as mineral reserves in the cost center are produced, subject to a limitation that the capitalized costs not exceed the value of those reserves. The unamortized costs relating to a property that is surrendered, abandoned, or otherwise disposed of are accounted for as an adjustment of accumulated amortization, rather than as a gain or loss that enters into the determination of net income, until all of the properties constituting the amortization base are disposed of, at which point gain or loss is recognized. all acquisition, exploration, and development costs are capitalized. The Company capitalizes all internal costs, including: salaries and related fringe benefits of employees directly engaged in the acquisition, exploration and development of natural gas and oil properties, as well as other identifiable general and administrative costs associated with such activities. During the years ended March 31, 2014 and 2013, no acquisition costs were capitalized. Oil and natural gas properties are reviewed for recoverability at least annually or when events or changes in circumstances indicate that its carrying value may exceed future undiscounted cash inflows. As of March 31, 2014 and 2013, the Company had not identified any such impairment. | |||||
Other Property and Equipment | |||||
Other property and equipment is reviewed on an annual basis for impairment and as of March 31, 2014, the Company had not identified any such impairment. Repairs and maintenance are charged to operations when incurred and improvements and renewals are capitalized. | |||||
Other property and equipment are stated at cost. Depreciation is calculated using the straight-line method for financial reporting purposes and accelerated methods for tax purposes. | |||||
Their estimated useful lives are as follows: | |||||
Office Equipment: 5-7 Years | |||||
Asset Retirement Obligations | |||||
In accordance with the provisions of Financial Accounting Standards Board “FASB” Accounting Standard Codification “ASC” 410-20-15, “Accounting for Asset Retirement Obligations”, the Company records the fair value of its liability for asset retirement obligations in the period in which it is incurred and a corresponding increase in the carrying amount of the related long live assets. Over time, the liability is accreted to its present value at the end of each reporting period, and the capitalized cost is depreciated over the useful life of the related assets. Upon settlement of the liability, the Company will either settle the obligation for its recorded amount or incur a gain or loss upon settlement. The Company's asset retirement obligations relate to the plugging and abandonment of its oil properties. | |||||
Intangible Assets | |||||
The cost of licensed technologies acquired is capitalized and will be amortized over the shorter of the term of the licensing agreement or the remaining life of the underlying patents. | |||||
The Company evaluates recoverability of identifiable intangible assets whenever events or changes in circumstances indicate that intangible assets carrying amount may not be recoverable. Such circumstances include, but are not limited to: (1) a significant decrease in the market value of an asset, (2) a significant adverse change in the extent or manner in which an asset is used, or (3) an accumulation of cost significantly in excess of the amount originally expected for the acquisition of an asset. The Company measures the carrying amount of the assets against the estimated undiscounted future cash flows associated with it. | |||||
There were not any impairment losses for the fiscal years ended March 31, 2014 and 2013. | |||||
Should the sum of the expected cash flows be less than the carrying amount of assets being evaluated, an impairment loss would be recognized. The impairment loss would be calculated as the amount by which the carrying amount of the assets, exceed fair value. Estimated amortization of intangible assets over the next five years is as follows: | |||||
March 31, | |||||
2015 | $ | 42,584 | |||
2016 | 42,584 | ||||
2017 | 10,647 | ||||
$ | 95,815 | ||||
Stock Based Compensation | |||||
Share awards granted to employees and independent directors are accounted for under ASC 718, "Share-Based Payment". ASC 718-10 eliminates accounting for share-based compensation transaction using the intrinsic value method and requires instead that such transactions be accounted for using a fair-value-based method. The Company has elected to adopt the provisions of ASC 718-10 effective January 1, 2006, under the modified prospective transition method, in which compensation cost was recognized beginning with the effective date (a) based on the requirements of ASC 718-10 for all share-based payments granted after the effective date and (b) based on the requirements of ASC 718-10 for all awards granted to employees prior to the effective date of ASC 718-10 that remain unvested on the effective date. | |||||
The Company records share-based compensation expense for awards granted to non-employees in exchange for services at fair value in accordance with the provisions of ASC 505-50, "Equit- based " payment to non-employees. For the awards granted to non-employees, the Company will record compensation expenses equal to the fair value of the share options at the measurement date, which is determined to be the earlier of the performance commitment date or the service completion date. | |||||
Warrants | |||||
The value of warrants issued is recorded at their fair values as determined by use of a Black Scholes Model at such time or over such periods as the warrants vest. | |||||
Loss per Common Share | |||||
ASC 260-10-45, “Earnings Per Share”, requires presentation of "basic" and "diluted" earnings per share on the face of the statements of operations for all entities with complex capital structures. Basic earnings per share are computed by dividing net income by the weighted average number of common shares outstanding for the period. Diluted earnings per share reflect the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted during the period. Dilutive securities having an anti-dilutive effect on diluted earnings per share are excluded from the calculation. In addition, the Company had a net loss during current period so dilutive securities would decrease negative EPS and have an anti-dilutive effect. | |||||
Income Taxes | |||||
Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets, including tax loss and credit carry forwards, and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. Deferred income tax expense represents the change during the period in the deferred tax assets and deferred tax liabilities. The components of the deferred tax assets and liabilities are individually classified as current and non-current based on their characteristics. 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. | |||||
ASC 740-10-25, “Accounting for Uncertainty in Income Taxes”, is intended to clarify the accounting for uncertainty in income taxes recognized in a company's financial statements and prescribes the recognition and measurement of a tax position taken or expected to be taken in a tax return. ASC 740-10-25 also provides guidance on de-recognition, classification, interest and penalties, accounting in interim periods, disclosure and transition. | |||||
Under ASC 740-10-25, evaluation of a tax position is a two-step process. The first step is to determine whether it is more-likely-than-not that a tax position will be sustained upon examination, including the resolution of any related appeals or litigation based on the technical merits of that position. The second step is to measure a tax position that meets the more-likely-than-not threshold to determine the amount of benefit to be recognized in the financial statements. A tax position is measured at the largest amount of benefit that is greater than 50 percent likely of being realized upon ultimate settlement. | |||||
Tax positions that previously failed to meet the more-likely-than-not recognition threshold should be recognized in the first subsequent period in which the threshold is met. Previously recognized tax positions that no longer meet the more-likely-than-not criteria should be de-recognized in the first subsequent financial reporting period in which the threshold is no longer met. | |||||
The adoption of ASC 740-10-25 at January 1, 2007 did not have a material effect on the Company's financial position. | |||||
Revenue Recognition | |||||
In accordance with the requirements ASC topic 605 "Revenue Recognition", revenues are recognized at such time as (1) persuasive evidence of an arrangement exists, (2) delivery has occurred or services have been rendered, (3) the seller's price to the buyer is fixed or determinable and (4) collectability is reasonably assured. Specifically, oil and gas sales are recognized as income at such time as the oil and gas are delivered to a viable third party purchaser at an agreed price. Interest income is recognized as it is earned. | |||||
Long-Lived Assets | |||||
Equipment is stated at acquired cost less accumulated depreciation. Office equipment is depreciated on the straight-line basis over the estimated useful lives (five to seven years). | |||||
Impairment of long-lived assets is recognized when events or changes in circumstances indicate that the carrying amount of the asset or related group of assets may not be recoverable. If the expected future undiscounted cash flows are less than the carrying amount of the asset, an impairment loss is recognized at that time. Measurement of impairment may be based upon appraisal, market value of similar assets or discounted cash flows. There was no impairment for the fiscal year ended March 31, 2014 and 2013. | |||||
Recently Issued Accounting Pronouncements | |||||
As of September 30, 2014, the Financial Accounting Standards Board (“FASB”) has issued up to ASU 2014-15, which are not expected to have a material impact on the consolidated financial statements upon adoption. |
RECEIVABLE_FROM_JOINT_INTEREST
RECEIVABLE FROM JOINT INTERESTS | 12 Months Ended |
Mar. 31, 2014 | |
Receivables [Abstract] | ' |
RECEIVABLE FROM JOINT INTERESTS | ' |
NOTE 2: RECEIVABLE FROM JOINT INTERESTS | |
The Company is the operator of certain wells acquired in the Expanded Bedford Agreement (see note 4). Pursuant to a joint interest operating agreement (the “Joint Interest Agreement”), the Company charges the other owners of the Grace Wells for their pro-rata share of operating and workover expenses. These receivables are carried on the Company’s balance sheet as Receivable from Joint Interests. At March 31, 2014 and 2013, the amount of these receivables is $156,873 and $160,227, respectively. During the year ended March 31, 2013, the Company deemed the collectability of the receivable from joint interests in the amount of $136,873 and 140,227 respectively as unlikely. |
PROPERTY_AND_EQUIPMENT
PROPERTY AND EQUIPMENT | 12 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Property, Plant and Equipment [Abstract] | ' | ||||||||
PROPERTY AND EQUIPMENT | ' | ||||||||
NOTE 3: PROPERTY AND EQUIPMENT | |||||||||
A summary of property and equipment at March 31, 2014 and 2013 is as follows: | |||||||||
31-Mar-14 | 31-Mar-13 | ||||||||
Office Equipment | $ | 41,778 | $ | 41,778 | |||||
Leasehold improvements | -0- | -0- | |||||||
41,778 | 41,778 | ||||||||
Less: Accumulated depreciation | (41,778 | ) | (41,778 | ) | |||||
Total | $ | - | $ | - | |||||
Depreciation expense for the years ended March 31, 2014 and 2013 was $ -0-. |
INTELLECTUAL_PROPERTY_RIGHTS
INTELLECTUAL PROPERTY RIGHTS | 12 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ' | ||||||||
INTELLECTUAL PROPERTY RIGHTS | ' | ||||||||
NOTE 4: INTELLECTUAL PROPERTY RIGHTS | |||||||||
A summary of the intellectual property rights at March 31, 2014 and 2013, are as follows: | |||||||||
31-Mar-14 | 31-Mar-13 | ||||||||
Intelli-well | $ | 425,850 | $ | 425,850 | |||||
Less: accumulated amortization | (330,035 | ) | (287,448 | ) | |||||
Total | $ | 95,815 | $ | 138,402 | |||||
Amortization expense for the year ended March 31, 2014 and 2013 was $42,587 and $42,584, respectively. |
OIL_AND_GAS_PROPERTY_ACTIVITY
OIL AND GAS PROPERTY ACTIVITY | 12 Months Ended | ||||||||||||
Mar. 31, 2014 | |||||||||||||
Extractive Industries [Abstract] | ' | ||||||||||||
OIL AND GAS PROPERTY ACTIVITY | ' | ||||||||||||
NOTE 5: OIL AND GAS PROPERTY ACTIVITY | |||||||||||||
The table below shows the Company’s working interests in the Grace Wells as of March 31, 2014 and 2013: | |||||||||||||
Well | 31-Mar-13 | Additional Acquisition | March 31, 2014 Working Interest | ||||||||||
Working Interest | |||||||||||||
Grace #1 | 65.25 | % | 0 | % | 65.25 | % | |||||||
Grace #2 | 55.75 | % | 0 | % | 55.75 | % | |||||||
Grace #3 | 64 | % | 0 | % | 64 | % | |||||||
Grace #5A | 52 | % | 0 | % | 52 | % | |||||||
Grace #6 | 58 | % | 0 | % | 58 | % | |||||||
Producing oil and gas properties consist of the following: | |||||||||||||
31-Mar-14 | 31-Mar-13 | ||||||||||||
Lincoln County, Oklahoma | $ | 111,402 | $ | 111,402 | |||||||||
Other properties, net | 1,005,676 | 1,005,676 | |||||||||||
Asset retirement cost | 40,572 | 43,468 | |||||||||||
Property impairments | (481,072 | ) | (481,072 | ) | |||||||||
Less: Depletion | (527,101 | ) | (506,641 | ) | |||||||||
Net | $ | 149,477 | $ | 172,833 | |||||||||
ACCOUNTS_PAYABLE_AND_ACCRUED_L
ACCOUNTS PAYABLE AND ACCRUED LIABILITIES | 12 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Payables and Accruals [Abstract] | ' | ||||||||
ACCOUNTS PAYABLE AND ACCRUED LIABILITIES | ' | ||||||||
NOTE 6: ACCOUNTS PAYABLE AND ACCRUED LIABILITIES | |||||||||
Accounts payable and accrued liabilities consisted of the following: | |||||||||
March 31, | 31-Mar-13 | ||||||||
2014 | |||||||||
Accounts payable | $ | 375,272 | $ | 388,438 | |||||
Accrued interest | 204,264 | 242,236 | |||||||
Total | $ | 579,536 | $ | 630,674 | |||||
NOTES_PAYABLE
NOTES PAYABLE | 12 Months Ended | ||||||||||||
Mar. 31, 2014 | |||||||||||||
Debt Disclosure [Abstract] | ' | ||||||||||||
NOTES PAYABLE | ' | ||||||||||||
NOTE 7: NOTES PAYABLE | |||||||||||||
31-Mar-14 | March 31, 2013 | ||||||||||||
On May 8, 2006, the Company entered into a convertible note payable agreement with a shareholder in the amount of $100,000. The note carries an interest rate of 10% per annum and matures of November 8, 2006. The note holder has the right to convert the note and accrued interest at a rate of $0.01 per share. The value of this conversion feature was treated as a loan discount for the full $100,000 of the loan and was amortized to interest expense over the life of the loan. On May 8, 2007 the note was extended for one year. The conversion feature of the note was valued at $25,852 and was treated as a prepaid loan costs. The prepaid loan costs have been amortized over the life of the new note. On October 19, 2007, the note holder converted $30,000 of principal plus accrued interest of $16,152 for 1,350,000 shares of common stock. On November 30, 2007, the note holder converted $10,000 of principal for 950,000 shares of common stock. On January 31, 2008, the note holder converted $10,000 of principal and accrued interest of $600 for 1,250,000 shares of common stock. On February 29, 2008, the note holder converted $8,000 of principal for 1,250,000 shares of common stock. On March 31, 2008, the note holder converted $5,000 of principal for 1,250,000 shares of common stock. On March 31, 2008, the note holder converted $5,000 of principal for 1,250,000 shares of common stock. On June 6, 2008, the note holder converted $7,000 of principal and $1,372 of accrued interest for 1,550,000 shares of common stock. On June 23, 2008, the note holder converted $10,000 of principal and $395 of accrued interest for 1,500,000 shares of common stock. On October 15, 2008, the note holder converted $5,000 of principal and $10,000 of interest for 3,300,000 shares of common stock. On December 3, 2008, the note holder converted $3,000 of principal and $201 of interest for 2,000,000 shares of common stock. On February 24, 2009, the note holder converted $2,000 of principal and $167 of accrued interest into 4,000,000 shares of common stock During the three months ended September 30, 2009, the Company issued 33,000,000 shares for the conversion of $2,000 of principal and $367 of accrued interest on this note, and for other consideration. During the three months ended December 31, 2009, the Company issued 30,000,000 shares of common stock for the conversion of $1,000 principal and $361 of accrued interest on this note and for other considerations. During the period ended March 31, 2014, the Company issued 450,000 shares of common stock for the conversion of $450 principal. Interest in the amount of $410 and $201 was accrued on this note during the year ended March 31, 2014 and 2013, respectively. The maturity of this note has been extended until April 1, 2015. | $ | 1,800 | $ | 2,250 | |||||||||
On November 11, 2008, the Company issued a convertible promissory note to an investor in the amount of $30,000. The note carries an interest rate of 10% per annum and a maturity date of October 1, 2009. The note holder has the right to convert the note and accrued interest into shares of the Company’s common stock at a rate of $3.00 per share. The discount is being amortized to interest expense over the life of the note via the effective interest method. Interest in the amount of $3,000 and $3,000 was accrued on this note during the year ended March 31, 2014 and 2013, respectively. Accrued interest was $11,876 and $8,876 respectively at March 31, 2014 and 2013. The maturity of this note has been extended until April 1, 2015. | 30,000 | 30,000 | |||||||||||
On December 22, 2008, the Company issued a promissory note to an investor in the amount of $150,000. This note carries an interest rate of 10% per annum and matures of December 15, 2009. In addition to the note payable, the Company issued 7,500,000 shares of common stock to the note holder. The shares are considered a discount to the note payable. At the time of the issuance of the shares to the note holder, the market price of the shares exceeded the fair value of the note payable; as a result the value of the discount was capped at the face value of the note, $150,000. The discount will be amortized to interest expense over the life of the note, 1 year, via the effective interest method. Interest in the amount of $15,000 and $15,000 was accrued on this note during the year ended March 31, 2014 and 2013, respectively. Accrued interest was $79,110 and $64,109 at March 31, 2014 and 2013 respectively. This note has been extended until April 1, 2015. | 150,000 | 150,000 | |||||||||||
On December 31, 2008, the Company received a cash advance from an investor in the amount of $100,000. On January 1, 2009, the Company received an additional $50,000 and the Company entered into a note payable agreement in the amount of $150,000. The note bears interest at a rate of 10% per annum and matures on December 15, 2009. In additional to the note payable, the Company issued 7,500,000 shares of common stock to the note holder. The shares are considered a discount to the note payable. At the time of issuance of the shares to the note holders, the market price of the shares exceeded the fair value of the note payable; as a result the value of the discount was capped at the face value of the note, $150,000. The discount will be amortized over the life of the note via the effective interest method. Interest in the amount of $15,000 and $15,001 was accrued on this note during the year ended March 31, 2014 and 2013, respectively. Accrued interest was $78,123 and $63,123 at March 31, 2014 and 2013 respectively. This note has been extended until Apri1 1, 2015. | 150,000 | 150,000 | |||||||||||
On January 27, 2009, the Company issued a promissory note to an investor in the amount of $50,000. The note carries an interest rate of 10% per annum and matures on December 15, 2009. In addition to the note payable, the Company issued 1,000,000 shares of common stock to the note holder. The shares are considered a discount to the note payable. The shares are value using the closing market price on the date the note was signed and have a value of $25,000. The discount will be amortized over the life of the note via the effective interest method. Interest in the amount of $5,000 and $5,000 was accrued on this note during the year ended March 31, 2014 and 2013, respectively. . Accrued interest was $20,863 and $25,863 at March 31, 2014 and 2013 respectively. This note has been extended until Apri1 1, 2015 | 50,000 | 50,000 | |||||||||||
On November 28, 2006, Oiltek, of which the Company has a majority interest in, issued a convertible note payable in the amount of $2,500. This note bears interest at a rate of 8% per annum and matures on October 1, 2007. The principal amount of the note and accrued interest are convertible into shares of the Company’s common stock at a price of $0.01 per share. A beneficial conversion feature in the amount of $2,500 was recorded as a discount to the note and was amortized to interest expense during the period ended December 31, 2006. Interest in the amount of $200 and $200 was accrued on this note during the twelve months ended March 31, 2014 and 2013, respectively. This note was extended its maturity date until April 1, 2015. | 2,500 | 2,500 | |||||||||||
On November 28, 2006, Oiltek, of which the Company has a majority interest in, issued a convertible note payable in the amount of $5,000. This note bears interest at a rate of 8% per annum and matured on October 1, 2007. The principal amount of the note and accrued interest are convertible into shares of the Company’s common stock at a price of $0.01 per share. A beneficial conversion feature in the amount of $5,000 was recorded as a discount to the note and was amortized to interest expense during the period ended December 31, 2006. Interest in the amount of $400 and $400 was accrued on this note during the twelve months ended March 31, 2014 and 2013, respectively. This note was extended its maturity date until April 1, 2015. | 5,000 | 5,000 | |||||||||||
On January 1, 2011 the Company issued a convertible note payable in the amount of $250,000. This note bears interest at a rate of 8% per annum and will mature on April 1, 2015. The principal amount of the note and accrued interest are convertible into shares of the Company’s common stock at a price of $0.01 per share. A beneficial conversion feature in the amount of $95,000 was recorded as a discount to the note and is being amortized to interest expense. A discount of $-0- and $94,050 was deducted for the years ended March 31, 2014 and 2013 respectively. Interest in the amount of $17,945 and $20,000 was accrued on this note during the twelve months ended March 31, 2014 and 2013, respectively. Accrued interest was 1,847 and $24,384 at March 31, 2014 and 2013 respectively as interest in the amount of $40,482 and $20,000 was paid through the years. In January of 2014 the Company exchanged 125 shares of class B preferred stock for $125,000 in principal. This note was extended its maturity date until April 1, 2015. | 125,000 | 250,000 | |||||||||||
On January 1, 2011 the Company issued a convertible note payable in the amount of $200,000. This note bears interest at a rate of 8% per annum and will mature on January 15, 2014. The principal amount of the note and accrued interest are convertible into shares of the Company’s common stock at a price of $0.01 per share. A beneficial conversion feature in the amount of $60,000 was recorded as a discount to the note and is being amortized to interest expense. A discount of $-0- and $59,400 was deducted for the years ended March 31, 2014 and 2013 respectively. Interest in the amount of $16,000 and $16,000 was accrued on this note during the twelve months ended March 31, 2014 and 2013, respectively. Accrued interest was $-0- and $35,507 at March 31, 2014 and 2013 respectively. In March of 2014 the Company exchanged 200 shares of class B preferred stock for $200,000 in principal and 600,000 shares of Common Stock for the payment of $51,507 in accrued interest. | -0- | 200,000 | |||||||||||
On January 27, 2012 the Company issued a convertible note payable in the amount of $200,000. This note bears interest at a rate of 8% per annum and will be matured on January 15, 2015. Interest in the amount of $12,713 and $15,298 was accrued on this note during the twelve months ended March 31, 2014 and 2013 respectively. Accrued interest was $-0- and $18,805 at March 31, 2014 and 2013 respectively. In January of 2014 the Company exchanged 200 shares of class B preferred stock for $200,000 in principal. | -0- | 200,000 | |||||||||||
On December 3, 2012 the Company issued a promissory note to an investor in the amount of $75,000. The note carries an interest rate of 10% per annum and matures on January 15, 2015. Interest in the amount of $5,958 and $2,425 was accrued on this note during the year ended March 31, 2014 and 2013 respectively. Accrued interest was $2,500 and $2,425 at March 31, 2014 and 2013 respectively. In January of 2014 the Company exchanged 75 shares of class B preferred stock for $75,000 in principal. | |||||||||||||
-0- | 75,000 | ||||||||||||
Total outstanding | |||||||||||||
$ | 514,300 | $ | 1,114,750 | ||||||||||
Note | Unamortized | Net of | |||||||||||
March 31, 2014: | Amount | Discounts | Discount | ||||||||||
Notes payable – long-term portion | $ | 514,300 | $ | (0 | ) | $ | 514,300 | ||||||
Notes payable – current portion | -0- | (0 | ) | -0- | |||||||||
Total | $ | 514,300 | $ | (0 | ) | $ | 514,300 | ||||||
Note | Unamortized | Net of | |||||||||||
March 31, 2013: | Amount | Discounts | Discount | ||||||||||
Notes payable – long-term portion | $ | 864,750 | $ | 0 | $ | 864,750 | |||||||
Notes payable – current portion | 250,000 | 0 | ) | 250,000 | |||||||||
Total | $ | 1,114,500 | $ | (0 | ) | $ | 1,114,500 | ||||||
Minimum future principal payments under the note payable are due as follows during the years ended March 31: | |||||||||||||
2015 | $ | -0- | |||||||||||
2016 | 514,300 | ||||||||||||
$ | 514,300 |
RELATED_PARTY_TRANSACTIONS
RELATED PARTY TRANSACTIONS | 12 Months Ended |
Mar. 31, 2014 | |
Related Party Transactions [Abstract] | ' |
RELATED PARTY TRANSACTIONS | ' |
NOTE 8: RELATED PARTY TRANSACTIONS | |
During the fiscal year ended March 31, 2014 and 2013 the president advanced the Company $5,000 and $6,000 respectively. The balance at March 31, 2014 and March 31, 2013 was $26,000 and $21,000 respectively. | |
Preferred Stock | |
The 100 shares of Series A Preferred Stock, issued to an officer/director as payment for $500,000 in promissory notes, are convertible into the number of shares of common stock sufficient to represent forty percent (40%) of the fully diluted shares outstanding after their issuance. The Series A Preferred Stock pays an eight percent (8%) dividend. The dividends are cumulative and payable quarterly. The Series A Preferred Stock carries liquidating preference, over all other classes of stock, equal to the amount paid for the stock plus any unpaid dividends. The Series A Preferred Stock provides for voting rights on an "as converted to common stock" basis. | |
During the years ended March 31, 2014 and 2013, the Company incurred $40,000 in Class A preferred stock dividends, respectively. | |
The holders of the Series A Preferred Stock have the right to convert each share of preferred stock into a sufficient number of shares of common stock to equal 40% of the then fully-diluted shares outstanding. Fully diluted shares outstanding is computed as the sum of the number of shares of common stock outstanding plus the number of shares of common stock issuable upon exercise, conversion or exchange of outstanding options, and warrants. In the event that the Company does not have an adequate number of shares of Common Stock authorized, upon a conversion request, only the maximum allowable number of shares of Series A preferred stock shall convert into Common Stock and the remaining shares of Series A preferred Stock shall convert upon lapse of the applicable restrictions. | |
Employment Agreements | |
KENT RODRIGUEZ | |
During the years ended March 31, 2014 and March 2013, the Company charged to operations the amount of $48,000 in annual salary for Mr. Rodriguez, of which $42,400 and $46,750 was paid to him during the years ended March 31, 2014 and 2013, respectively. As of March 31, 2014 and 2013, the balances of accrued and unpaid salaries were $207,817 and $202,217. |
INCOME_TAXES
INCOME TAXES | 12 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Income Tax Disclosure [Abstract] | ' | ||||||||
INCOME TAXES | ' | ||||||||
NOTE 8: INCOME TAXES | |||||||||
Deferred income taxes result from the temporary difference arising from the use of accelerated depreciation methods for income tax purposes and the straight-line method for financial statement purposes, and an accumulation of Net Operating Loss carryforwards for income tax purposes with a valuation allowance against the carryforwards for book purposes. | |||||||||
In assessing the realizability of deferred tax assets, management considers whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. Included in deferred tax assets are Federal and State net operating loss carryforwards of $30,823,588, which will expire beginning in 2028. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible. Management considers the scheduled reversal of deferred tax liabilities, projected future taxable income, and tax planning strategies in making this assessment. Based upon our cumulative losses through March 31, 2014, we have provided a valuation allowance reducing the net realizable benefits of these deductible differences to $0 at March 31, 2014. The amount of the deferred tax asset considered realizable could change in the near term if projected future taxable income is realized. Due to significant changes in the Company's ownership, the Company's future use of its existing net operating losses may be limited. | |||||||||
A reconciliation between the actual income tax expense and income taxes computed by applying the statutory Federal and state income tax rates to income from continuing operations before income taxes is as follows: | |||||||||
Twelve Months | Twelve Months | ||||||||
Ended | Ended | ||||||||
March 31, | March 31, | ||||||||
2014 | 2013 | ||||||||
Computed “expected” income tax expense at approximately 34% | $ | (267,233 | ) | $ | (254,767 | ) | |||
Change in valuation allowance | (267,233 | ) | (254,767 | ) | |||||
$ | - | $ | - | ||||||
STOCKHOLDERS_EQUITY
STOCKHOLDERS' EQUITY | 12 Months Ended | ||||||||||||||||||||
Mar. 31, 2014 | |||||||||||||||||||||
Equity [Abstract] | ' | ||||||||||||||||||||
STOCKHOLDERS' EQUITY | ' | ||||||||||||||||||||
NOTE 9: STOCKHOLDERS’ EQUITY | |||||||||||||||||||||
Preferred Stock | |||||||||||||||||||||
Series A Preferred Stock | |||||||||||||||||||||
The Company is authorized to issue 1,000,000 shares of preferred stock, par value $0.10 per share. As of March 31, 2014 and 2013, the Company has 100 shares of Series A preferred stock issued and outstanding. | |||||||||||||||||||||
During the twelve months ended March 31, 2014 and 2013, the Company incurred $40,000 respectively in Series A preferred stock dividends, and paid $38,800 and $34,700 for the twelve months ended March 31, 2014 and 2013 respectively. As of March 31, 2014 and 2013, the accrued balance due Mr. Rodriguez was $41,950 and 40,750 respectively | |||||||||||||||||||||
The 100 shares of Series A Preferred Stock, issued to an officer/director as payment for $500,000 in promissory notes, are convertible into the number of shares of common stock sufficient to represent 40 percent (40%) of the fully diluted shares outstanding after their issuance. The Series A Preferred Stock pays an eight percent (8%) dividend. The dividends are cumulative and payable quarterly. The Series A Preferred Stock carries liquidating preference, over all other classes of stock, equal to the amount paid for the stock plus any unpaid dividends. The Series A Preferred Stock provides for voting rights on an "as converted to common stock" basis. | |||||||||||||||||||||
The holders of the Series A Preferred Stock have the right to convert the preferred stock into shares of common stock such that if converted simultaneously, they shall represent forty percent (40%) of the fully diluted shares outstanding after their issuance. Fully diluted shares outstanding is computed as the sum of the number of shares of common stock outstanding plus the number of shares of common stock issuable upon exercise, conversion or exchange of outstanding options, warrants, or convertible securities. | |||||||||||||||||||||
Series B Preferred Stock | |||||||||||||||||||||
In March, 2013, our Board of Directors authorized the issuance of 2,000 shares of Series B Preferred Stock (the "Series B Preferred Stock"). The face amount of share of the Series B Preferred Stock is $1,000. As of March 31, 2014 and 2013, the Company has 1,300 and 150 shares of Series B preferred stock respectively issued and outstanding. | |||||||||||||||||||||
The Series B Preferred Stock accrues dividends at the rate of 8% per annum on the original purchase price for the shares. These dividends are payable annually, beginning in January 2014. We are prohibited from paying any dividends on our Common Stock until all accrued dividends are paid on our Series B Preferred Stock. The Series B Preferred Stock ranks junior to the Series A Preferred Stock owned by our President and Chief Executive Officer, as to Dividends and to a distribution of assets in the event of a liquidation of assets. | |||||||||||||||||||||
The Holders of Series B Preferred Stock do not have any voting rights and their consent is not required to take any sort of corporate action. | |||||||||||||||||||||
During the twelve months ended March 31, 2013 the Company sold 150 shares of Series B Preferred Stock to an accredited investor for $150,000. | |||||||||||||||||||||
In May of 2013 the Company sold 50 shares of Series B Preferred Stock to two accredited investors for $50,000. | |||||||||||||||||||||
In January of 2014 the Company exchanged 400 share Series B Preferred Stock for $400,000 of notes payable. | |||||||||||||||||||||
In March of 2014 the Company exchanged 200 share Series B Preferred Stock for $200,000 of notes payable. | |||||||||||||||||||||
In March of 2014 the Company exchanged 200 share Series B Preferred Stock for 2,000,000 shares of Common Stock. | |||||||||||||||||||||
In February 2014 we issued 300 Shares of Series B Preferred Stock to an accredited investor for $300,000. | |||||||||||||||||||||
During the twelve months ended March 31, 2014 and 2013, the Company incurred $24,780 and $-0- in dividends on Series B preferred stock. | |||||||||||||||||||||
Total dividends payable from both A and B preferred shares at March 31, 2014 and 2013 is $66,730 and $40,750 respectively. | |||||||||||||||||||||
Common Stock | |||||||||||||||||||||
On June 4, 2012 the Board of Directors approved an amendment to our Articles of Incorporation to a reverse split of the issued and outstanding shares of Common Stock of the Corporation (“Shares”) such that each holder of Shares as of the record date of June 4, 2012 shall receive one (1) post-split Share on the effective date of June 4, 2012 for each three hundred (300) Shares owned. The reverse split was effective on July 23, 2012 | |||||||||||||||||||||
The Company has authorized 200,000,000 shares of common stock with a par value of $0.001 per share. As of March 31, 2014 and 2013, the Company has 6,208,062 and 2,558,584 shares of common stock issued and outstanding. | |||||||||||||||||||||
Common stock issuances during the year ended March 31, 2013: | |||||||||||||||||||||
The Company issued 1,341,617 shares of common stock to consultants for services provided, pursuant to consulting agreements. The value of these shares in the amount of $197,500, or $0.15 per share was charged to operations, and was based on the quoted market value at the date the consulting agreements were executed. | |||||||||||||||||||||
The Company issued 891,195 shares of common stock for the conversion of a note payable and assumption of debt. The carrying value of the debt was reclassed to stock. | |||||||||||||||||||||
The Company issued 1,500,000 shares of common stock for cash in the amount of $150,000, and was based on current market value at the date of issuance. | |||||||||||||||||||||
The Company cancelled 83,334 shares of common stock which had previously been issued in previous fiscal years, and credited the par value of $83 to par value. | |||||||||||||||||||||
Common stock issuances during the year ended March 31, 2014: | |||||||||||||||||||||
On May 3, 2013, the Company issued 500,000 shares of Common Stock for $50,000 or $0.10 per share, and was based on current market value at the date of issuance. | |||||||||||||||||||||
On May 5, 2013 the Company issued 100,000 shares of Common Stock for compensation for the placement of 500,000 shares of Common Stock and 50 Shares of Series B Preferred Stock for $100,000 to an third party. The value of these shares in the amount of $10,000, or $0.10 per share was charged to operations, and was based on the current market value at the date of issuance. | |||||||||||||||||||||
On June 4, 2013, the Company issued 100,000 shares of common stock for the conversion of a note payable and assumption of debt. The fair market value of these shares was $8,000 or $0.08 per share and was based on the current market value on the date of issuance. $100 has been credited to the note payable, and a loss of $7,900 was recognized on this conversion, and was charged to operations. | |||||||||||||||||||||
On June 28, 2013, the Company issued 2,800,000 shares of Common Stock for $250,000, and was based on current market value at the date of issuance. | |||||||||||||||||||||
On June 28, 2013, the Company issued 500,000 shares of Common Stock to a consultant, the value of these shares in the amount of $50,000, or $0.10 per share was charged to operations, and was based on the current market value at the date of issuance. | |||||||||||||||||||||
On July 1, 2013, the Company issued 100,000 shares of common stock for the conversion of a note payable and assumption of debt. The fair market value of these shares was $17,000, or $0.17 per share which was based on the current market value on the date of issuance. $100 has been credited to the note payable, and a loss of $16,900 was recognized on this conversion, and was charged to operations. | |||||||||||||||||||||
On July 2, 2013, the Company issued 180,000 shares of Common Stock to its board of directors, the value of these shares in the amount of $18,000, or $0.10 per share was charged to operations, and was based on the on current market value at the date of issuance. | |||||||||||||||||||||
On July 26, 2013, the Company issued 250,000 shares of Common Stock to a consultant, the value of these shares in the amount of $25,000, or $0.10 per share was charged to operations, and was valued at closing bid price of the Company's common stock on the date the Consulting Agreement was executed by the Company. | |||||||||||||||||||||
On September 13, 2013, the Company issued 150,000 shares of common stock for the conversion of a note payable and assumption of debt. The fair market value of these shares was $22,500, or $0.15 per share which was based on the current market value on the date of issuance. $150 has been credited to the note payable, and a loss of $22,350 was recognized on this conversion, and was charged to operations. | |||||||||||||||||||||
On October 10, 2013, the Company issued 220,000 shares of common to a consultant, the value of these shares in the amount of $22,000, or $0.10 per share was charged to operations, and was valued at closing bid price of the Company's common stock on the date the Consulting Agreement was executed by the Company. | |||||||||||||||||||||
On October 16, 2013, the Company issued 100,000 shares of common stock for the conversion of a note payable and assumption of debt. The fair market value of these shares was $10,000 or $0.10 per share which was based on the current market value on the date of issuance. $100 has been credited to the note payable, and a loss of $9,900 was recognized on this conversion, and was charged to operations. | |||||||||||||||||||||
On November 6, 2013, the Company issued 250,000 to a consultant, the value of these shares in the amount of $25,000, or $0.10 per share was charged to operations, and was valued at closing bid price of the Company's common stock on the date the Consulting Agreement was executed by the Company. | |||||||||||||||||||||
On March 25, 2014 the Company exchanged 2,000,000 shares of Common Stock for 200 shares of Series B Preferred Stock. | |||||||||||||||||||||
On March 31, 2014, the Company issued 600,000 shares of common stock for payment of accrued interest of $51,507. | |||||||||||||||||||||
On March 31, 2014 the Company issued 1,600,000 shares of common to a consultant, the value of these shares in the amount of $112,000, or $0.07 per share was charged to operations, and was valued at closing bid price of the Company's common stock on the date the Consulting Agreement was executed by the Company. | |||||||||||||||||||||
Options | |||||||||||||||||||||
There are no stock options outstanding. | |||||||||||||||||||||
Warrants | |||||||||||||||||||||
The following table summarizes the warrants outstanding and the related prices for the shares of the Company’s common stock issued to non-employees of the Company at March 31, 2014: | |||||||||||||||||||||
Warrants Outstanding | Warrants Exercisable | ||||||||||||||||||||
Weighted Average | Weighted Average | ||||||||||||||||||||
Exercise | Number | Remaining Contractual | Weighted Average | Number | Remaining Contractual | ||||||||||||||||
Prices | Outstanding | Life (years) | Exercise Price | Exercisable | Life (years) | ||||||||||||||||
600 | 167 | 0.25 | 600 | 167 | 0.25 | ||||||||||||||||
167 | 0.25 | 167 | 0.25 | ||||||||||||||||||
Transactions involving warrants are summarized as follows: | |||||||||||||||||||||
Number of Shares | Weighted Average | ||||||||||||||||||||
Exercise Price Per Share | |||||||||||||||||||||
Outstanding at March 31, 2013 | 167 | $ | 600 | ||||||||||||||||||
Granted | - | - | |||||||||||||||||||
Exercised | - | - | |||||||||||||||||||
Cancelled or expired | - | - | |||||||||||||||||||
Outstanding at March 31, 2014 | 167 | $ | 600 | ||||||||||||||||||
TECHNOLOGY_LICENSE_AGREEMENTS
TECHNOLOGY LICENSE AGREEMENTS | 12 Months Ended |
Mar. 31, 2014 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ' |
TECHNOLOGY LICENSE AGREEMENTS | ' |
NOTE 10: TECHNOLOGY LICENSE AGREEMENTS | |
On July 12, 2006 UMTI entered into a technology license of a patented process for paraffin wax mitigation from crude oil using ultrasonic waves from the University of Wyoming. This license calls for an earned royalty of five percent on net sales of licensed technologies and services; twenty-five percent of all sublicense fees and revenues with an escalating minimum annual royalty which will be credited toward the total royalties due. During the year ended March 31, 2011, the Company determined that the UMTI license value was impaired, which resulted in the impairment expense of $534,711. As of March 31, 2014, the Company has valued this technology at $0. |
EARNINGS_PER_SHARE
EARNINGS PER SHARE | 12 Months Ended |
Mar. 31, 2014 | |
Earnings Per Share [Abstract] | ' |
EARNINGS PER SHARE | ' |
NOTE 11: EARNINGS PER SHARE | |
ASC 260-10-45 requires a reconciliation of the numerator and denominator of the basic and diluted earnings per share (EPS) computations. As the Company is in a loss position during the year ended March 31, 2014 and 2013, there is no dilutive effect included. The net loss per share was $0.085 and $0.227 for March 31, 2014 and 2013. |
COMMITMENTS_AND_CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended |
Mar. 31, 2014 | |
Commitments and Contingencies Disclosure [Abstract] | ' |
COMMITMENTS AND CONTINGENCIES | ' |
NOTE 12: COMMITMENTS AND CONTINGENCIES | |
Commitments and contingencies through the date of these financial statements were issued have been considered by the Company and none were noted which were required to be disclosed. |
ASC_93223555_SUPPLEMENTAL_DISC
ASC 932-235-55 SUPPLEMENTAL DISCLOSURES | 12 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Asc 932-235-55 Supplemental Disclosures | ' | ||||||||
ASC 932-235-55 SUPPLEMENTAL DISCLOSURES | ' | ||||||||
NOTE 13: ASC 932-235-55 SUPPLEMENTAL DISCLOSURES | |||||||||
Net Capitalized Costs | |||||||||
The Company's aggregate capitalized costs related to natural gas and oil producing activities are summarized as follows: | |||||||||
31-Mar-14 | 31-Mar-13 | ||||||||
Natural gas and oil properties and related equipment: | |||||||||
Proven | $ | 1,157,650 | $ | 1,165,546 | |||||
Unproven | 1,867,183 | 1,867,183 | |||||||
Accumulated depreciation, depletion, and impairment | (1,008,173 | ) | (987,713 | ) | |||||
Net capitalized costs | $ | 2,016,660 | $ | 2,040,016 | |||||
Costs Incurred | |||||||||
Costs incurred in natural gas and oil property acquisition, exploration and development activities that have been capitalized are summarized as follows: | |||||||||
31-Mar-14 | 31-Mar-13 | ||||||||
Acquisition of properties | $ | - 0 - | $ | - 0 - | |||||
Development costs | - 0 - | - 0 - | |||||||
Total costs incurred | $ | - 0 - | $ | - 0 - | |||||
Results of Operations for Natural Gas and Oil Producing Activities | |||||||||
The Company's results of operations from natural gas and oil producing activities are presented below for the fiscal years ended March 31, 2014 and 2013. The following table includes revenues and expenses associated directly with the Company's natural gas and oil producing activities. It does not include any interest costs and general and administrative costs and, therefore, is not necessarily indicative of the contribution to consolidated net operating results of the Company's natural gas and oil operations. | |||||||||
31-Mar-14 | March 31, | ||||||||
2013 | |||||||||
Production revenues | $ | 156,322 | $ | 163,574 | |||||
Production costs | (134,033 | ) | (124,902 | ) | |||||
Impairment of property | - | - | |||||||
Depreciation and depletion expense | (63,046 | ) | (76,133 | ) | |||||
$ | (40,757 | ) | $ | -37,461 | |||||
Imputed income tax provision (1) | - | - | |||||||
Results of operation for natural gas / oil producing activity | $ | (40,757 | ) | $ | -37,461 | ||||
(1) The imputed income tax provision is hypothetical (at the statutory rate) and determined without regard to the Company's deduction for general and administrative expenses, interest costs and other income tax credits and deductions, nor whether the hypothetical tax provision will be payable. | |||||||||
Natural Gas and Oil Reserve Quantities | |||||||||
The following schedule contains estimates of proved natural gas and oil reserves attributable to the Company. Proved reserves are estimated quantities of natural gas and oil that geological and engineering data demonstrate with reasonable certainty to be recoverable in future years from known reservoirs under existing economic and operating conditions. Proved developed reserves are those which are expected to be recovered through existing wells with existing equipment and operating methods. Reserves are stated in thousand cubic feet (mcf) of natural gas and barrels (bbl) of oil. Geological and engineering estimates of proved natural gas and oil reserves at one point in time are highly interpretive, inherently imprecise and subject to ongoing revisions that may be substantial in amount. Although every reasonable effort is made to ensure that the reserve estimates are accurate, due to their nature reserve estimates are generally less precise than other estimates presented in connection with financial statement disclosures. | |||||||||
Oil - bbls | |||||||||
Proved reserves: | |||||||||
Balance as of March 31, 2006 | - | ||||||||
Purchase of reserves-in-place | 29,815 | ||||||||
Extensions and discoveries | - | ||||||||
Production | (1,043 | ) | |||||||
Balance as of March 31, 2007 | 28,772 | ||||||||
Purchase of reserves-in-place | 11,560 | ||||||||
Extensions and discoveries | 4,216 | ||||||||
Change in estimates | (11,911 | ) | |||||||
Production | (3,504 | ) | |||||||
Balance as of March 31, 2008 | 29,133 | ||||||||
Purchase of reserves-in-place | 22,282 | ||||||||
Extensions and discoveries | - | ||||||||
Change in estimates | - | ||||||||
Production | (5,768 | ) | |||||||
Balance as of March 31, 2009 | 45,647 | ||||||||
Purchase of reserves-in-place | - | ||||||||
Extensions and discoveries | - | ||||||||
Change in estimates | - | ||||||||
Production | (22,514 | ) | |||||||
Balance as of March 31, 2010 | 23,133 | ||||||||
Purchase of reserves-in-place | 4,823 | ||||||||
Extensions and discoveries | - | ||||||||
Change in estimates | - | ||||||||
Production | (5,291 | ) | |||||||
Balance as of March 31, 2011 | 22,665 | ||||||||
Purchase of reserves-in-place | - | ||||||||
Extensions and discoveries | - | ||||||||
Change in estimates | 4,506 | ||||||||
Production | (2,439 | ) | |||||||
Balance as of March 31, 2012 | 24,732 | ||||||||
Purchase of reserves-in-place | - | ||||||||
Extensions and discoveries | - | ||||||||
Change in estimates | 2,873 | ||||||||
Production | -2,290 | ||||||||
Balance as of March 31, 2013 | 25,315 | ||||||||
Purchase of reserves-in-place | - | ||||||||
Extensions and discoveries | - | ||||||||
Change in estimates | 7,736 | ||||||||
Production | -3,979 | ||||||||
Balance as of March 31, 2014 | 29,072 | ||||||||
Standardized Measure of Discounted Future Net Cash Flows | |||||||||
The following schedule presents the standardized measure of estimated discounted future net cash flows from the Company's proved reserves for the fiscal years ended March 31, 2014 and 2013. Estimated future cash flows are based on independent reserve data. Because the standardized measure of future net cash flows was prepared using the prevailing economic conditions existing at March 31, 2014 and 2013, it should be emphasized that such conditions continually change. Accordingly, such information should not serve as a basis in making any judgment on the potential value of the Company's recoverable reserves or in estimating future results of operations. | |||||||||
March 31, | March 31, | ||||||||
2014 | 2013 | ||||||||
Future production revenue | $ | 1,126,270 | $ | 1,223,951 | |||||
Future production costs | (566,261 | ) | (755,467 | ) | |||||
Future development costs | - | - | |||||||
Future cash flows before income taxes | 560,009 | 468,484 | |||||||
Future income tax | - | - | |||||||
Future net cash flows | 560,009 | 468,484 | |||||||
Effect of discounting future annual cash flows at 10% | (234,457 | ) | (180,083 | ) | |||||
Standard measure of discounted net cash flows | $ | 325,552 | $ | 288,401 | |||||
(1) The weighted average oil wellhead price used in computing the Company's reserves were $93.51 per bbl and $94.99 per bbl at March 31, 2014 and 2013, respectively. The weighted average gas wellhead price used in computing the Company's reserves were $3.63 and $2.97/mmbtu at March 31, 2014 and 2013, respectively. The oil and gas pricing were calculated using the arithmetic average of the price on the first day of each month that was received for each property during the previous fiscal year. These prices were held constant throughout the economic life of the properties. Previous year run checks were used to determine the actual prices received. | |||||||||
The following schedule contains a comparison of the standardized measure of discounted future net cash flows to the net carrying value of proved natural gas and oil properties at March 31, 2014 and 2013: | |||||||||
March 31, | March 31, | ||||||||
2014 | 2013 | ||||||||
Standardized measure of discount future net cash flows | $ | 325,552 | $ | 288,401 | |||||
Proved natural oil and gas property, net of accumulated | |||||||||
depreciation, depletion, and amortization, including | |||||||||
impairment | 149,478 | 7 | 186,167 | ||||||
Standardized measure of discount future net cash flows in | |||||||||
excess of net carrying value of proved natural oil and | |||||||||
gas properties | $ | 176,075 | $ | 102,234 |
SUBSEQUENT_EVENTS
SUBSEQUENT EVENTS | 12 Months Ended |
Mar. 31, 2014 | |
Subsequent Events [Abstract] | ' |
SUBSEQUENT EVENTS | ' |
NOTE 14: SUBSEQUENT EVENTS | |
On March 14, 2014, we filed an amendment with the Nevada Secretary of State increasing the dividend rate on the Series B Preferred Shares to nine percent (9.00%), effective on April 1, 2014 and changing the payment date to from January 15th of each year to April 1st. The next dividend payment on the Series B Preferred Stock will be on April 1, 2015 | |
The Company has evaluated subsequent events through the issuance of the consolidated financial statements, no other subsequent events need to be disclosed other than the one disclosed above. |
SUMMARY_OF_SIGNIFICANT_ACCOUNT1
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended | ||||
Mar. 31, 2014 | |||||
Accounting Policies [Abstract] | ' | ||||
Nature of Operations | ' | ||||
Nature of Operations | |||||
Avalon Oil & Gas, Inc. (the "Company") was originally incorporated in Colorado in April 1991 under the name Snow Runner (USA), Inc. The Company was the general partner of Snow Runner (USA) Ltd.; a Colorado limited partnership to sell proprietary snow skates under the name "Sled Dogs" which was dissolved in August 1992. In late 1993, the Company relocated its operations to Minnesota and in January 1994 changed our name to Snow Runner, Inc. In November 1994 we changed our name to the Sled Dogs Company. On November 5, 1997, we filed for protection under Chapter 11 of the U.S. Bankruptcy Code. In September 1998, we emerged from protection of Chapter 11 of the U.S. Bankruptcy Code. In May, 1999, we changed our state of domicile to Nevada and our name to XDOGS.COM, Inc. On July 22, 2005, the Board of Directors and a majority of the Company's shareholders approved an amendment to our Articles of Incorporation to change the Company's name to Avalon Oil & Gas, Inc., and to increase the authorized number of shares of our common stock from 200,000,000 shares to 1,000,000,000 shares par value of $0.001, and engage in the acquisition of producing oil and gas properties. On November 16, 2011, a majority of the Company's shareholders approved an amendment to our Articles of Incorporation to increase the authorized number of shares of our common stock from 1,000,000,000 shares to 3,000,000,000 shares par value of $0.001. | |||||
On June 4, 2012 the Board of Directors approved an amendment to our Articles of Incorporation to a reverse split of the issued and outstanding shares of Common Stock of the Corporation (“Shares”) such that each holder of Shares as of the record date of June 4, 2012 shall receive one (1) post-split Share on the effective date of June 4, 2012 for each three hundred (300) Shares owned. The reverse split was effective on July 23, 2012. On September 28, 2012, we held a special meeting of Avalon’s shareholders and approved an amendment to the Company’s Articles of Incorporation such that the Company would be authorized to issue up to 200,000,000 shares of common stock. We filed an amendment with the Nevada Secretary of State on April 10, 2013, to increase our authorized shares to 200,000,000. | |||||
The Company is currently in the process of raising funds to acquire oil and gas properties and related oilfield technologies, which the Company plans to develop into commercial applications. | |||||
On September 22, 2007 the Company entered into an agreement with respect to its purchase of a 75.6% interest in Oiltek, Inc. (Oiltek) for $50,000 and the right of Oiltek to market Avalon's intellectual property. Oiltek is consolidated in these financial statements with a minority interest shown. | |||||
Principles of consolidation | ' | ||||
Principles of consolidation | |||||
The consolidated financial statements include the accounts of the Company and The Company’s subsidiary Oiltek, Inc. All significant inter-company items have been eliminated in consolidation. | |||||
Going Concern | ' | ||||
Going Concern | |||||
The March 31, 2014, financial statements have been prepared assuming the Company will continue as a going concern. However, the Company has incurred a loss of $30,823,588 from inception through March 31, 2014, and has a working capital deficiency of $275,768 and stockholders’ equity of $1,212,337 as of March 31, 2014. The Company currently has minimal revenue generating operations and expects to incur substantial operating expenses in order to expand its business. As a result, the Company expects to incur operating losses for the foreseeable future. The Company will continue to seek equity and debt financing to meet our operating losses. The accompanying consolidated financial statements do not include any adjustments that might become necessary should the Company be unable to continue as a going concern. | |||||
Use of Estimates | ' | ||||
Use of Estimates | |||||
The preparation of financial statements in conformity with generally accepted accounting principles generally accepted in the United States of America requires us to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Actual results could differ from those estimates and assumptions. | |||||
Basis of Accounting | ' | ||||
Basis of Accounting | |||||
The Company's financial statements are prepared using the accrual method of accounting. Revenues are recognized when earned and expenses when incurred. | |||||
Cash and Cash Equivalents | ' | ||||
Cash and Cash Equivalents | |||||
Cash and cash equivalents consist primarily of cash on deposit, certificates of deposit, money market accounts, and investment grade commercial paper that are readily convertible into cash and purchased with original maturities of three months or less. The Company maintains its cash balances at several financial institutions. Accounts at the institutions are insured by the Federal Deposit Insurance Corporation up to $250,000. | |||||
Fair Value of Financial Instruments | ' | ||||
Fair Value of Financial Instruments | |||||
The Company's financial instruments are cash and cash equivalents, accounts receivable, accounts payable, notes payable, notes receivable and long-term debt. The recorded values of cash and cash equivalents, accounts receivable, and accounts payable approximate their fair values based on their short-term nature. The recorded values of notes payable, notes receivable and long-term debt approximate their fair values, as interest approximates market rates. | |||||
Accounts Receivable | ' | ||||
Accounts Receivable | |||||
Management periodically assesses the collectability of the Company's accounts receivable. Accounts determined to be uncollectible are charged to operations when that determination is made. The Company had an allowance for accounts receivable of $136,873 and $140,227 for the years ended March 31, 2014 and 2013. | |||||
Oil and Natural Gas Properties | ' | ||||
Oil and Natural Gas Properties | |||||
The Company follows the full cost method of accounting for natural gas and oil properties. Under the full cost concept, all costs incurred in acquiring, exploring, and developing properties cost center are capitalized when incurred and are amortized as mineral reserves in the cost center are produced, subject to a limitation that the capitalized costs not exceed the value of those reserves. The unamortized costs relating to a property that is surrendered, abandoned, or otherwise disposed of are accounted for as an adjustment of accumulated amortization, rather than as a gain or loss that enters into the determination of net income, until all of the properties constituting the amortization base are disposed of, at which point gain or loss is recognized. all acquisition, exploration, and development costs are capitalized. The Company capitalizes all internal costs, including: salaries and related fringe benefits of employees directly engaged in the acquisition, exploration and development of natural gas and oil properties, as well as other identifiable general and administrative costs associated with such activities. During the years ended March 31, 2014 and 2013, no acquisition costs were capitalized. Oil and natural gas properties are reviewed for recoverability at least annually or when events or changes in circumstances indicate that its carrying value may exceed future undiscounted cash inflows. As of March 31, 2014 and 2013, the Company had not identified any such impairment. | |||||
Other Property and Equipment | ' | ||||
Other Property and Equipment | |||||
Other property and equipment is reviewed on an annual basis for impairment and as of March 31, 2014, the Company had not identified any such impairment. Repairs and maintenance are charged to operations when incurred and improvements and renewals are capitalized. | |||||
Other property and equipment are stated at cost. Depreciation is calculated using the straight-line method for financial reporting purposes and accelerated methods for tax purposes. | |||||
Their estimated useful lives are as follows: | |||||
Office Equipment: 5-7 Years | |||||
Asset Retirement Obligations | ' | ||||
Asset Retirement Obligations | |||||
In accordance with the provisions of Financial Accounting Standards Board “FASB” Accounting Standard Codification “ASC” 410-20-15, “Accounting for Asset Retirement Obligations”, the Company records the fair value of its liability for asset retirement obligations in the period in which it is incurred and a corresponding increase in the carrying amount of the related long live assets. Over time, the liability is accreted to its present value at the end of each reporting period, and the capitalized cost is depreciated over the useful life of the related assets. Upon settlement of the liability, the Company will either settle the obligation for its recorded amount or incur a gain or loss upon settlement. The Company's asset retirement obligations relate to the plugging and abandonment of its oil properties. | |||||
Intangible Assets | ' | ||||
Intangible Assets | |||||
The cost of licensed technologies acquired is capitalized and will be amortized over the shorter of the term of the licensing agreement or the remaining life of the underlying patents. | |||||
The Company evaluates recoverability of identifiable intangible assets whenever events or changes in circumstances indicate that intangible assets carrying amount may not be recoverable. Such circumstances include, but are not limited to: (1) a significant decrease in the market value of an asset, (2) a significant adverse change in the extent or manner in which an asset is used, or (3) an accumulation of cost significantly in excess of the amount originally expected for the acquisition of an asset. The Company measures the carrying amount of the assets against the estimated undiscounted future cash flows associated with it. | |||||
There were not any impairment losses for the fiscal years ended March 31, 2014 and 2013. | |||||
Should the sum of the expected cash flows be less than the carrying amount of assets being evaluated, an impairment loss would be recognized. The impairment loss would be calculated as the amount by which the carrying amount of the assets, exceed fair value. Estimated amortization of intangible assets over the next five years is as follows: | |||||
March 31, | |||||
2015 | $ | 42,584 | |||
2016 | 42,584 | ||||
2017 | 10,647 | ||||
$ | 95,815 | ||||
Stock Based Compensation | ' | ||||
Stock Based Compensation | |||||
Share awards granted to employees and independent directors are accounted for under ASC 718, "Share-Based Payment". ASC 718-10 eliminates accounting for share-based compensation transaction using the intrinsic value method and requires instead that such transactions be accounted for using a fair-value-based method. The Company has elected to adopt the provisions of ASC 718-10 effective January 1, 2006, under the modified prospective transition method, in which compensation cost was recognized beginning with the effective date (a) based on the requirements of ASC 718-10 for all share-based payments granted after the effective date and (b) based on the requirements of ASC 718-10 for all awards granted to employees prior to the effective date of ASC 718-10 that remain unvested on the effective date. | |||||
The Company records share-based compensation expense for awards granted to non-employees in exchange for services at fair value in accordance with the provisions of ASC 505-50, "Equit- based " payment to non-employees. For the awards granted to non-employees, the Company will record compensation expenses equal to the fair value of the share options at the measurement date, which is determined to be the earlier of the performance commitment date or the service completion date | |||||
Loss per Common Share | ' | ||||
Loss per Common Share | |||||
ASC 260-10-45, “Earnings Per Share”, requires presentation of "basic" and "diluted" earnings per share on the face of the statements of operations for all entities with complex capital structures. Basic earnings per share are computed by dividing net income by the weighted average number of common shares outstanding for the period. Diluted earnings per share reflect the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted during the period. Dilutive securities having an anti-dilutive effect on diluted earnings per share are excluded from the calculation. In addition, the Company had a net loss during current period so dilutive securities would decrease negative EPS and have an anti-dilutive effect. | |||||
Income Taxes | ' | ||||
Income Taxes | |||||
Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets, including tax loss and credit carry forwards, and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. Deferred income tax expense represents the change during the period in the deferred tax assets and deferred tax liabilities. The components of the deferred tax assets and liabilities are individually classified as current and non-current based on their characteristics. 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. | |||||
ASC 740-10-25, “Accounting for Uncertainty in Income Taxes”, is intended to clarify the accounting for uncertainty in income taxes recognized in a company's financial statements and prescribes the recognition and measurement of a tax position taken or expected to be taken in a tax return. ASC 740-10-25 also provides guidance on de-recognition, classification, interest and penalties, accounting in interim periods, disclosure and transition. | |||||
Under ASC 740-10-25, evaluation of a tax position is a two-step process. The first step is to determine whether it is more-likely-than-not that a tax position will be sustained upon examination, including the resolution of any related appeals or litigation based on the technical merits of that position. The second step is to measure a tax position that meets the more-likely-than-not threshold to determine the amount of benefit to be recognized in the financial statements. A tax position is measured at the largest amount of benefit that is greater than 50 percent likely of being realized upon ultimate settlement. | |||||
Tax positions that previously failed to meet the more-likely-than-not recognition threshold should be recognized in the first subsequent period in which the threshold is met. Previously recognized tax positions that no longer meet the more-likely-than-not criteria should be de-recognized in the first subsequent financial reporting period in which the threshold is no longer met. | |||||
The adoption of ASC 740-10-25 at January 1, 2007 did not have a material effect on the Company's financial position. | |||||
Revenue Recognition | ' | ||||
Revenue Recognition | |||||
In accordance with the requirements ASC topic 605 "Revenue Recognition", revenues are recognized at such time as (1) persuasive evidence of an arrangement exists, (2) delivery has occurred or services have been rendered, (3) the seller's price to the buyer is fixed or determinable and (4) collectability is reasonably assured. Specifically, oil and gas sales are recognized as income at such time as the oil and gas are delivered to a viable third party purchaser at an agreed price. Interest income is recognized as it is earned. | |||||
Long-Lived Assets | ' | ||||
Long-Lived Assets | |||||
Equipment is stated at acquired cost less accumulated depreciation. Office equipment is depreciated on the straight-line basis over the estimated useful lives (five to seven years). | |||||
Impairment of long-lived assets is recognized when events or changes in circumstances indicate that the carrying amount of the asset or related group of assets may not be recoverable. If the expected future undiscounted cash flows are less than the carrying amount of the asset, an impairment loss is recognized at that time. Measurement of impairment may be based upon appraisal, market value of similar assets or discounted cash flows. There was no impairment for the fiscal year ended March 31, 2014 and 2013. | |||||
Recently Issued Accounting Pronouncements | ' | ||||
Recently Issued Accounting Pronouncements | |||||
As of September 30, 2014, the Financial Accounting Standards Board (“FASB”) has issued up to ASU 2014-15, which are not expected to have a material impact on the consolidated financial statements upon adoption. |
SUMMARY_OF_SIGNIFICANT_ACCOUNT2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended | ||||
Mar. 31, 2014 | |||||
Accounting Policies [Abstract] | ' | ||||
Estimated amortization of intangible assets | ' | ||||
March 31, | |||||
2015 | $ | 42,584 | |||
2016 | 42,584 | ||||
2017 | 10,647 | ||||
$ | 95,815 | ||||
INTELLECTUAL_PROPERTY_RIGHTS_T
INTELLECTUAL PROPERTY RIGHTS (Tables) | 12 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ' | ||||||||
Summary of intellectual property rights | ' | ||||||||
31-Mar-14 | 31-Mar-13 | ||||||||
Intelli-well | $ | 425,850 | $ | 425,850 | |||||
Less: accumulated amortization | (330,035 | ) | (287,448 | ) | |||||
Total | $ | 95,815 | $ | 138,402 | |||||
OIL_AND_GAS_PROPERTY_ACTIVITY_
OIL AND GAS PROPERTY ACTIVITY (Tables) | 12 Months Ended | ||||||||||||
Mar. 31, 2014 | |||||||||||||
Extractive Industries [Abstract] | ' | ||||||||||||
Working interests in the Grace Wells | ' | ||||||||||||
Well | 31-Mar-13 | Additional Acquisition | March 31, 2014 Working Interest | ||||||||||
Working Interest | |||||||||||||
Grace #1 | 65.25 | % | 0 | % | 65.25 | % | |||||||
Grace #2 | 55.75 | % | 0 | % | 55.75 | % | |||||||
Grace #3 | 64 | % | 0 | % | 64 | % | |||||||
Grace #5A | 52 | % | 0 | % | 52 | % | |||||||
Grace #6 | 58 | % | 0 | % | 58 | % | |||||||
Producing oil and gas properties | ' | ||||||||||||
31-Mar-14 | 31-Mar-13 | ||||||||||||
Lincoln County, Oklahoma | $ | 111,402 | $ | 111,402 | |||||||||
Other properties, net | 1,005,676 | 1,005,676 | |||||||||||
Asset retirement cost | 40,572 | 43,468 | |||||||||||
Property impairments | (481,072 | ) | (481,072 | ) | |||||||||
Less: Depletion | (527,101 | ) | (506,641 | ) | |||||||||
Net | $ | 149,477 | $ | 172,833 |
ACCOUNTS_PAYABLE_AND_ACCRUED_L1
ACCOUNTS PAYABLE AND ACCRUED LIABILITIES (Tables) | 12 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Payables and Accruals [Abstract] | ' | ||||||||
Accounts payable and accrued liabilities | ' | ||||||||
March 31, | 31-Mar-13 | ||||||||
2014 | |||||||||
Accounts payable | $ | 375,272 | $ | 388,438 | |||||
Accrued interest | 204,264 | 242,236 | |||||||
Total | $ | 579,536 | $ | 630,674 |
NOTES_PAYABLE_Tables
NOTES PAYABLE (Tables) | 12 Months Ended | ||||||||||||
Mar. 31, 2014 | |||||||||||||
Debt Disclosure [Abstract] | ' | ||||||||||||
Summary of notes payable | ' | ||||||||||||
31-Mar-14 | March 31, 2013 | ||||||||||||
On May 8, 2006, the Company entered into a convertible note payable agreement with a shareholder in the amount of $100,000. The note carries an interest rate of 10% per annum and matures of November 8, 2006. The note holder has the right to convert the note and accrued interest at a rate of $0.01 per share. The value of this conversion feature was treated as a loan discount for the full $100,000 of the loan and was amortized to interest expense over the life of the loan. On May 8, 2007 the note was extended for one year. The conversion feature of the note was valued at $25,852 and was treated as a prepaid loan costs. The prepaid loan costs have been amortized over the life of the new note. On October 19, 2007, the note holder converted $30,000 of principal plus accrued interest of $16,152 for 1,350,000 shares of common stock. On November 30, 2007, the note holder converted $10,000 of principal for 950,000 shares of common stock. On January 31, 2008, the note holder converted $10,000 of principal and accrued interest of $600 for 1,250,000 shares of common stock. On February 29, 2008, the note holder converted $8,000 of principal for 1,250,000 shares of common stock. On March 31, 2008, the note holder converted $5,000 of principal for 1,250,000 shares of common stock. On March 31, 2008, the note holder converted $5,000 of principal for 1,250,000 shares of common stock. On June 6, 2008, the note holder converted $7,000 of principal and $1,372 of accrued interest for 1,550,000 shares of common stock. On June 23, 2008, the note holder converted $10,000 of principal and $395 of accrued interest for 1,500,000 shares of common stock. On October 15, 2008, the note holder converted $5,000 of principal and $10,000 of interest for 3,300,000 shares of common stock. On December 3, 2008, the note holder converted $3,000 of principal and $201 of interest for 2,000,000 shares of common stock. On February 24, 2009, the note holder converted $2,000 of principal and $167 of accrued interest into 4,000,000 shares of common stock During the three months ended September 30, 2009, the Company issued 33,000,000 shares for the conversion of $2,000 of principal and $367 of accrued interest on this note, and for other consideration. During the three months ended December 31, 2009, the Company issued 30,000,000 shares of common stock for the conversion of $1,000 principal and $361 of accrued interest on this note and for other considerations. During the period ended March 31, 2014, the Company issued 450,000 shares of common stock for the conversion of $450 principal. Interest in the amount of $410 and $201 was accrued on this note during the year ended March 31, 2014 and 2013, respectively. The maturity of this note has been extended until April 1, 2015. | $ | 1,800 | $ | 2,250 | |||||||||
On November 11, 2008, the Company issued a convertible promissory note to an investor in the amount of $30,000. The note carries an interest rate of 10% per annum and a maturity date of October 1, 2009. The note holder has the right to convert the note and accrued interest into shares of the Company’s common stock at a rate of $3.00 per share. The discount is being amortized to interest expense over the life of the note via the effective interest method. Interest in the amount of $3,000 and $3,000 was accrued on this note during the year ended March 31, 2014 and 2013, respectively. Accrued interest was $11,876 and $8,876 respectively at March 31, 2014 and 2013. The maturity of this note has been extended until April 1, 2015. | 30,000 | 30,000 | |||||||||||
On December 22, 2008, the Company issued a promissory note to an investor in the amount of $150,000. This note carries an interest rate of 10% per annum and matures of December 15, 2009. In addition to the note payable, the Company issued 7,500,000 shares of common stock to the note holder. The shares are considered a discount to the note payable. At the time of the issuance of the shares to the note holder, the market price of the shares exceeded the fair value of the note payable; as a result the value of the discount was capped at the face value of the note, $150,000. The discount will be amortized to interest expense over the life of the note, 1 year, via the effective interest method. Interest in the amount of $15,000 and $15,000 was accrued on this note during the year ended March 31, 2014 and 2013, respectively. Accrued interest was $79,110 and $64,109 at March 31, 2014 and 2013 respectively. This note has been extended until April 1, 2015. | 150,000 | 150,000 | |||||||||||
On December 31, 2008, the Company received a cash advance from an investor in the amount of $100,000. On January 1, 2009, the Company received an additional $50,000 and the Company entered into a note payable agreement in the amount of $150,000. The note bears interest at a rate of 10% per annum and matures on December 15, 2009. In additional to the note payable, the Company issued 7,500,000 shares of common stock to the note holder. The shares are considered a discount to the note payable. At the time of issuance of the shares to the note holders, the market price of the shares exceeded the fair value of the note payable; as a result the value of the discount was capped at the face value of the note, $150,000. The discount will be amortized over the life of the note via the effective interest method. Interest in the amount of $15,000 and $15,001 was accrued on this note during the year ended March 31, 2014 and 2013, respectively. Accrued interest was $78,123 and $63,123 at March 31, 2014 and 2013 respectively. This note has been extended until Apri1 1, 2015. | 150,000 | 150,000 | |||||||||||
On January 27, 2009, the Company issued a promissory note to an investor in the amount of $50,000. The note carries an interest rate of 10% per annum and matures on December 15, 2009. In addition to the note payable, the Company issued 1,000,000 shares of common stock to the note holder. The shares are considered a discount to the note payable. The shares are value using the closing market price on the date the note was signed and have a value of $25,000. The discount will be amortized over the life of the note via the effective interest method. Interest in the amount of $5,000 and $5,000 was accrued on this note during the year ended March 31, 2014 and 2013, respectively. . Accrued interest was $20,863 and $25,863 at March 31, 2014 and 2013 respectively. This note has been extended until Apri1 1, 2015 | 50,000 | 50,000 | |||||||||||
On November 28, 2006, Oiltek, of which the Company has a majority interest in, issued a convertible note payable in the amount of $2,500. This note bears interest at a rate of 8% per annum and matures on October 1, 2007. The principal amount of the note and accrued interest are convertible into shares of the Company’s common stock at a price of $0.01 per share. A beneficial conversion feature in the amount of $2,500 was recorded as a discount to the note and was amortized to interest expense during the period ended December 31, 2006. Interest in the amount of $200 and $200 was accrued on this note during the twelve months ended March 31, 2014 and 2013, respectively. This note was extended its maturity date until April 1, 2015. | 2,500 | 2,500 | |||||||||||
On November 28, 2006, Oiltek, of which the Company has a majority interest in, issued a convertible note payable in the amount of $5,000. This note bears interest at a rate of 8% per annum and matured on October 1, 2007. The principal amount of the note and accrued interest are convertible into shares of the Company’s common stock at a price of $0.01 per share. A beneficial conversion feature in the amount of $5,000 was recorded as a discount to the note and was amortized to interest expense during the period ended December 31, 2006. Interest in the amount of $400 and $400 was accrued on this note during the twelve months ended March 31, 2014 and 2013, respectively. This note was extended its maturity date until April 1, 2015. | 5,000 | 5,000 | |||||||||||
On January 1, 2011 the Company issued a convertible note payable in the amount of $250,000. This note bears interest at a rate of 8% per annum and will mature on April 1, 2015. The principal amount of the note and accrued interest are convertible into shares of the Company’s common stock at a price of $0.01 per share. A beneficial conversion feature in the amount of $95,000 was recorded as a discount to the note and is being amortized to interest expense. A discount of $-0- and $94,050 was deducted for the years ended March 31, 2014 and 2013 respectively. Interest in the amount of $17,945 and $20,000 was accrued on this note during the twelve months ended March 31, 2014 and 2013, respectively. Accrued interest was 1,847 and $24,384 at March 31, 2014 and 2013 respectively as interest in the amount of $40,482 and $20,000 was paid through the years. In January of 2014 the Company exchanged 125 shares of class B preferred stock for $125,000 in principal. This note was extended its maturity date until April 1, 2015. | 125,000 | 250,000 | |||||||||||
On January 1, 2011 the Company issued a convertible note payable in the amount of $200,000. This note bears interest at a rate of 8% per annum and will mature on January 15, 2014. The principal amount of the note and accrued interest are convertible into shares of the Company’s common stock at a price of $0.01 per share. A beneficial conversion feature in the amount of $60,000 was recorded as a discount to the note and is being amortized to interest expense. A discount of $-0- and $59,400 was deducted for the years ended March 31, 2014 and 2013 respectively. Interest in the amount of $16,000 and $16,000 was accrued on this note during the twelve months ended March 31, 2014 and 2013, respectively. Accrued interest was $-0- and $35,507 at March 31, 2014 and 2013 respectively. In March of 2014 the Company exchanged 200 shares of class B preferred stock for $200,000 in principal and 600,000 shares of Common Stock for the payment of $51,507 in accrued interest. | -0- | 200,000 | |||||||||||
On January 27, 2012 the Company issued a convertible note payable in the amount of $200,000. This note bears interest at a rate of 8% per annum and will be matured on January 15, 2015. Interest in the amount of $12,713 and $15,298 was accrued on this note during the twelve months ended March 31, 2014 and 2013 respectively. Accrued interest was $-0- and $18,805 at March 31, 2014 and 2013 respectively. In January of 2014 the Company exchanged 200 shares of class B preferred stock for $200,000 in principal. | -0- | 200,000 | |||||||||||
On December 3, 2012 the Company issued a promissory note to an investor in the amount of $75,000. The note carries an interest rate of 10% per annum and matures on January 15, 2015. Interest in the amount of $5,958 and $2,425 was accrued on this note during the year ended March 31, 2014 and 2013 respectively. Accrued interest was $2,500 and $2,425 at March 31, 2014 and 2013 respectively. In January of 2014 the Company exchanged 75 shares of class B preferred stock for $75,000 in principal. | |||||||||||||
-0- | 75,000 | ||||||||||||
Total outstanding | |||||||||||||
$ | 514,300 | $ | 1,114,750 | ||||||||||
Schedule of notes payable with classification | ' | ||||||||||||
Note | Unamortized | Net of | |||||||||||
March 31, 2014: | Amount | Discounts | Discount | ||||||||||
Notes payable – long-term portion | $ | 514,300 | $ | (0 | ) | $ | 514,300 | ||||||
Notes payable – current portion | -0- | (0 | ) | -0- | |||||||||
Total | $ | 514,300 | $ | (0 | ) | $ | 514,300 | ||||||
Note | Unamortized | Net of | |||||||||||
March 31, 2013: | Amount | Discounts | Discount | ||||||||||
Notes payable – long-term portion | $ | 864,750 | $ | 0 | $ | 864,750 | |||||||
Notes payable – current portion | 250,000 | 0 | ) | 250,000 | |||||||||
Total | $ | 1,114,500 | $ | (0 | ) | $ | 1,114,500 | ||||||
Minimum future principal payments due under note payable | ' | ||||||||||||
2015 | $ | -0- | |||||||||||
2016 | 514,300 | ||||||||||||
$ | 514,300 |
INCOME_TAXES_Tables
INCOME TAXES (Tables) | 12 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Income Tax Disclosure [Abstract] | ' | ||||||||
Income from continuing operations before income taxes | ' | ||||||||
Twelve Months | Twelve Months | ||||||||
Ended | Ended | ||||||||
March 31, | March 31, | ||||||||
2014 | 2013 | ||||||||
Computed “expected” income tax expense at approximately 34% | $ | (267,233 | ) | $ | (254,767 | ) | |||
Change in valuation allowance | (267,233 | ) | (254,767 | ) | |||||
$ | - | $ | - |
STOCKHOLDERS_EQUITY_Tables
STOCKHOLDERS' EQUITY (Tables) | 12 Months Ended | ||||||||||||||||||||
Mar. 31, 2014 | |||||||||||||||||||||
Equity [Abstract] | ' | ||||||||||||||||||||
Warrants outstanding and the related prices for the shares of the Company's common stock issued to non-employees | ' | ||||||||||||||||||||
Warrants Outstanding | Warrants Exercisable | ||||||||||||||||||||
Weighted Average | Weighted Average | ||||||||||||||||||||
Exercise | Number | Remaining Contractual | Weighted Average | Number | Remaining Contractual | ||||||||||||||||
Prices | Outstanding | Life (years) | Exercise Price | Exercisable | Life (years) | ||||||||||||||||
600 | 167 | 0.25 | 600 | 167 | 0.25 | ||||||||||||||||
167 | 0.25 | 167 | 0.25 | ||||||||||||||||||
Transactions involving warrants | ' | ||||||||||||||||||||
Number of Shares | Weighted Average | ||||||||||||||||||||
Exercise Price Per Share | |||||||||||||||||||||
Outstanding at March 31, 2013 | 167 | $ | 600 | ||||||||||||||||||
Granted | - | - | |||||||||||||||||||
Exercised | - | - | |||||||||||||||||||
Cancelled or expired | - | - | |||||||||||||||||||
Outstanding at March 31, 2014 | 167 | $ | 600 |
ASC_93223555_SUPPLEMENTAL_DISC1
ASC 932-235-55 SUPPLEMENTAL DISCLOSURES (Tables) | 12 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Asc 932-235-55 Supplemental Disclosures | ' | ||||||||
Summary of aggregate capitalized costs related to natural gas and oil producing activities | ' | ||||||||
31-Mar-14 | 31-Mar-13 | ||||||||
Natural gas and oil properties and related equipment: | |||||||||
Proven | $ | 1,157,650 | $ | 1,165,546 | |||||
Unproven | 1,867,183 | 1,867,183 | |||||||
Accumulated depreciation, depletion, and impairment | (1,008,173 | ) | (987,713 | ) | |||||
Net capitalized costs | $ | 2,016,660 | $ | 2,040,016 | |||||
Summary of costs incurred in natural gas and oil property acquisition, exploration and development activities | ' | ||||||||
31-Mar-14 | 31-Mar-13 | ||||||||
Acquisition of properties | $ | - 0 - | $ | - 0 - | |||||
Development costs | - 0 - | - 0 - | |||||||
Total costs incurred | $ | - 0 - | $ | - 0 - | |||||
Results of Operations for Oil and Gas Producing Activities Disclosure | ' | ||||||||
31-Mar-14 | March 31, | ||||||||
2013 | |||||||||
Production revenues | $ | 156,322 | $ | 163,574 | |||||
Production costs | (134,033 | ) | (124,902 | ) | |||||
Impairment of property | - | - | |||||||
Depreciation and depletion expense | (63,046 | ) | (76,133 | ) | |||||
$ | (40,757 | ) | $ | -37,461 | |||||
Imputed income tax provision (1) | - | - | |||||||
Results of operation for natural gas / oil producing activity | $ | (40,757 | ) | $ | -37,461 | ||||
Summary of natural gas and oil reserve quantities | ' | ||||||||
Oil - bbls | |||||||||
Proved reserves: | |||||||||
Balance as of March 31, 2006 | - | ||||||||
Purchase of reserves-in-place | 29,815 | ||||||||
Extensions and discoveries | - | ||||||||
Production | (1,043 | ) | |||||||
Balance as of March 31, 2007 | 28,772 | ||||||||
Purchase of reserves-in-place | 11,560 | ||||||||
Extensions and discoveries | 4,216 | ||||||||
Change in estimates | (11,911 | ) | |||||||
Production | (3,504 | ) | |||||||
Balance as of March 31, 2008 | 29,133 | ||||||||
Purchase of reserves-in-place | 22,282 | ||||||||
Extensions and discoveries | - | ||||||||
Change in estimates | - | ||||||||
Production | (5,768 | ) | |||||||
Balance as of March 31, 2009 | 45,647 | ||||||||
Purchase of reserves-in-place | - | ||||||||
Extensions and discoveries | - | ||||||||
Change in estimates | - | ||||||||
Production | (22,514 | ) | |||||||
Balance as of March 31, 2010 | 23,133 | ||||||||
Purchase of reserves-in-place | 4,823 | ||||||||
Extensions and discoveries | - | ||||||||
Change in estimates | - | ||||||||
Production | (5,291 | ) | |||||||
Balance as of March 31, 2011 | 22,665 | ||||||||
Purchase of reserves-in-place | - | ||||||||
Extensions and discoveries | - | ||||||||
Change in estimates | 4,506 | ||||||||
Production | (2,439 | ) | |||||||
Balance as of March 31, 2012 | 24,732 | ||||||||
Purchase of reserves-in-place | - | ||||||||
Extensions and discoveries | - | ||||||||
Change in estimates | 2,873 | ||||||||
Production | -2,290 | ||||||||
Balance as of March 31, 2013 | 25,315 | ||||||||
Purchase of reserves-in-place | - | ||||||||
Extensions and discoveries | - | ||||||||
Change in estimates | 7,736 | ||||||||
Production | -3,979 | ||||||||
Balance as of March 31, 2014 | 29,072 | ||||||||
Summary of standardized measure of discounted future net cash flows to estimating future results of operations | ' | ||||||||
March 31, | March 31, | ||||||||
2014 | 2013 | ||||||||
Future production revenue | $ | 1,126,270 | $ | 1,223,951 | |||||
Future production costs | (566,261 | ) | (755,467 | ) | |||||
Future development costs | - | - | |||||||
Future cash flows before income taxes | 560,009 | 468,484 | |||||||
Future income tax | - | - | |||||||
Future net cash flows | 560,009 | 468,484 | |||||||
Effect of discounting future annual cash flows at 10% | (234,457 | ) | (180,083 | ) | |||||
Standard measure of discounted net cash flows | $ | 325,552 | $ | 288,401 | |||||
Summary of standardized measure of discounted future net cash flows | ' | ||||||||
March 31, | March 31, | ||||||||
2014 | 2013 | ||||||||
Standardized measure of discount future net cash flows | $ | 325,552 | $ | 288,401 | |||||
Proved natural oil and gas property, net of accumulated | |||||||||
depreciation, depletion, and amortization, including | |||||||||
impairment | 149,478 | 7 | 186,167 | ||||||
Standardized measure of discount future net cash flows in | |||||||||
excess of net carrying value of proved natural oil and | |||||||||
gas properties | $ | 176,075 | $ | 102,234 |
SUMMARY_OF_SIGNIFICANT_ACCOUNT3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Estimated amortization of intangible assets (Details) (USD $) | 12 Months Ended | 3 Months Ended | 15 Months Ended | 39 Months Ended | ||
Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2016 | Mar. 31, 2015 | Mar. 31, 2014 | Mar. 31, 2017 | |
Estimated amortization of intangible assets | Estimated amortization of intangible assets | Estimated amortization of intangible assets | Estimated amortization of intangible assets | |||
Estimated amortization of intangible assets | $42,587 | $42,584 | $42,584 | $42,584 | $95,815 | $10,647 |
SUMMARY_OF_SIGNIFICANT_ACCOUNT4
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Narrative) (USD $) | 276 Months Ended | |||||
Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2012 | Nov. 16, 2011 | Sep. 22, 2007 | Jul. 22, 2005 | |
Accounting Policies [Abstract] | ' | ' | ' | ' | ' | ' |
Authorized number of shares of common stock | 200,000,000 | ' | ' | 3,000,000,000 | ' | 1,000,000,000 |
Common stock authorized, par value | $0.00 | ' | ' | $0.00 | ' | $0.00 |
Percentage of interest in Oiltek, Inc. purchased | ' | ' | ' | ' | 75.60% | ' |
Purchase price of interest in Oiltek | ' | ' | ' | ' | $50,000 | ' |
Loss incurred from inception | -30,823,588 | ' | ' | ' | ' | ' |
Working capital deficiency | 275,768 | ' | ' | ' | ' | ' |
Stockholders' Equity | 1,212,337 | 442,088 | 737,993 | ' | ' | ' |
Accounts at institutions insured by FDIC | 250,000 | ' | ' | ' | ' | ' |
Allowance for accounts receivable from joint working interests | $136,873 | $140,277 | ' | ' | ' | ' |
Estimated useful lives; Office Equipment | '5 years | ' | ' | ' | ' | ' |
RECEIVABLE_FROM_JOINT_INTEREST1
RECEIVABLE FROM JOINT INTERESTS (Details Narrative) (USD $) | Mar. 31, 2014 | Mar. 31, 2013 |
Receivables [Abstract] | ' | ' |
Receivables from Joint Interests | $156,873 | $160,227 |
Unlikely collectability of receivable from joint interests amount | $136,873 | $140,277 |
PROPERTY_AND_EQUIPMENT_Details
PROPERTY AND EQUIPMENT (Details) (USD $) | Mar. 31, 2014 | Mar. 31, 2013 |
Property, Plant and Equipment [Abstract] | ' | ' |
Office Equipment | $41,778 | $41,778 |
Leasehold improvements | 0 | 0 |
Less: Accumulated depreciation | -41,778 | -41,778 |
Total | ' | ' |
PROPERTY_AND_EQUIPMENT_Details1
PROPERTY AND EQUIPMENT (Details Narrative) (USD $) | 12 Months Ended | |
Mar. 31, 2014 | Mar. 31, 2013 | |
Property, Plant and Equipment [Abstract] | ' | ' |
Depreciation expense | ' | $1,033 |
INTELLECTUAL_PROPERTY_RIGHTS_S
INTELLECTUAL PROPERTY RIGHTS - Summary of intellectual property rights (Details) (USD $) | Mar. 31, 2014 | Mar. 31, 2013 |
Goodwill and Intangible Assets Disclosure [Abstract] | ' | ' |
Intelli-well | $425,850 | $425,850 |
Less: accumulated amortization | -330,035 | -287,448 |
Total | $95,815 | $138,402 |
INTELLECTUAL_PROPERTY_RIGHTS_D
INTELLECTUAL PROPERTY RIGHTS (Details Narrative) (USD $) | 12 Months Ended | |
Mar. 31, 2014 | Mar. 31, 2013 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ' | ' |
Amortization expense of intellectual property rights | $42,587 | $42,584 |
OIL_AND_GAS_PROPERTY_ACTIVITY_1
OIL AND GAS PROPERTY ACTIVITY - Working interests in the Grace Wells (Details) | Mar. 31, 2014 | Mar. 31, 2013 |
Grace #1 Well | ' | ' |
Working interest | 65.25% | 65.25% |
Grace #2 Well | ' | ' |
Working interest | 55.75% | 55.75% |
Grace #3 Well | ' | ' |
Working interest | 64.00% | 64.00% |
Grace #5A Well | ' | ' |
Working interest | 52.00% | 52.00% |
Grace #6 Well | ' | ' |
Working interest | 58.00% | 58.00% |
OIL_AND_GAS_PROPERTY_ACTIVITY_2
OIL AND GAS PROPERTY ACTIVITY - Producing oil and gas properties (Details) (USD $) | Mar. 31, 2014 | Mar. 31, 2013 |
Extractive Industries [Abstract] | ' | ' |
Lincoln County, Oklahoma | $111,402 | $111,402 |
Other properties, net | 1,005,676 | 1,005,676 |
Asset retirement obligation | 40,572 | 43,468 |
Property impairments | -481,072 | -481,072 |
Less: Depletion | -527,101 | -506,641 |
Net | $149,477 | $172,833 |
ACCOUNTS_PAYABLE_AND_ACCRUED_L2
ACCOUNTS PAYABLE AND ACCRUED LIABILITIES - Accounts payable and accrued liabilities (Details) (USD $) | Mar. 31, 2014 | Mar. 31, 2013 |
Payables and Accruals [Abstract] | ' | ' |
Accounts payable | $375,272 | $388,438 |
Accrued liabilities | 204,264 | 242,236 |
Total | $579,536 | $630,674 |
Notes_Payable_Details
Notes Payable (Details) (USD $) | Mar. 31, 2014 | Mar. 31, 2013 |
Summary of notes payable | ' | ' |
Notes payable | $514,300 | ' |
Promissory Note [Member] | ' | ' |
Summary of notes payable | ' | ' |
Notes payable | 150,000 | 150,000 |
Promissory Note Two [Member] | ' | ' |
Summary of notes payable | ' | ' |
Notes payable | 50,000 | 50,000 |
Promissory Note Three [Member] | ' | ' |
Summary of notes payable | ' | ' |
Notes payable | 0 | 75,000 |
Convertible Promissory Note [Member] | ' | ' |
Summary of notes payable | ' | ' |
Notes payable | 30,000 | 30,000 |
Convertible Debt [Member] | ' | ' |
Summary of notes payable | ' | ' |
Notes payable | 1,800 | 2,250 |
Convertible Debt Two [Member] | ' | ' |
Summary of notes payable | ' | ' |
Notes payable | 150,000 | 150,000 |
Convertible Debt Three [Member] | ' | ' |
Summary of notes payable | ' | ' |
Notes payable | 2,500 | 2,500 |
Convertible Debt Four [Member] | ' | ' |
Summary of notes payable | ' | ' |
Notes payable | 5,000 | 5,000 |
Convertible Debt Five [Member] | ' | ' |
Summary of notes payable | ' | ' |
Notes payable | 125,000 | 250,000 |
Convertible Debt Six [Member] | ' | ' |
Summary of notes payable | ' | ' |
Notes payable | 0 | 200,000 |
Convertible Debt Seven [Member] | ' | ' |
Summary of notes payable | ' | ' |
Notes payable | $0 | $200,000 |
Notes_Payable_Details_1
Notes Payable (Details 1) (USD $) | Mar. 31, 2014 | Mar. 31, 2013 |
Summary of notes payable | ' | ' |
Notes payable - long-term portion | $514,300 | $864,750 |
Notes payable - current portion | ' | 250,000 |
Total | 514,300 | ' |
Note Amount | ' | ' |
Summary of notes payable | ' | ' |
Notes payable - long-term portion | 514,300 | 864,750 |
Notes payable - current portion | 0 | 250,000 |
Total | 514,300 | 1,114,500 |
Unamortized Discounts | ' | ' |
Summary of notes payable | ' | ' |
Notes payable - long-term portion | 0 | 0 |
Notes payable - current portion | 0 | 0 |
Total | 0 | 0 |
Net Of Discount | ' | ' |
Summary of notes payable | ' | ' |
Notes payable - long-term portion | 514,300 | 864,750 |
Notes payable - current portion | 0 | 250,000 |
Total | $514,300 | $1,114,500 |
Notes_Payable_Details_2
Notes Payable (Details 2) (USD $) | Mar. 31, 2014 |
Summary of minimum future principal payments | ' |
2015 | $0 |
2016 | 514,300 |
Total | $514,300 |
Notes_Payable_Details_Textual
Notes Payable (Details Textual) (USD $) | 0 Months Ended | 12 Months Ended | 0 Months Ended | 3 Months Ended | 12 Months Ended | 0 Months Ended | 12 Months Ended | 0 Months Ended | 12 Months Ended | 0 Months Ended | 1 Months Ended | 12 Months Ended | 0 Months Ended | 12 Months Ended | 0 Months Ended | 12 Months Ended | 0 Months Ended | 12 Months Ended | 0 Months Ended | 12 Months Ended | 0 Months Ended | 12 Months Ended | 0 Months Ended | 12 Months Ended | 0 Months Ended | 12 Months Ended | 12 Months Ended | |||||||||||||||||||||||||||||||||||||
Aug. 04, 2011 | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2012 | Feb. 24, 2009 | Dec. 03, 2008 | Oct. 15, 2008 | Jun. 23, 2008 | Jun. 06, 2008 | Feb. 29, 2008 | Jan. 31, 2008 | Nov. 30, 2007 | Oct. 19, 2007 | 8-May-07 | 8-May-06 | Dec. 31, 2009 | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2008 | Mar. 31, 2008 | Dec. 22, 2008 | Mar. 31, 2014 | Mar. 31, 2012 | Mar. 31, 2013 | Jan. 27, 2009 | Mar. 31, 2014 | Mar. 31, 2012 | Mar. 31, 2013 | Aug. 04, 2011 | Apr. 30, 2012 | Feb. 29, 2012 | Mar. 31, 2014 | Mar. 31, 2012 | Mar. 31, 2013 | Dec. 31, 2008 | Mar. 31, 2014 | Mar. 31, 2012 | Mar. 31, 2013 | Jan. 01, 2009 | Jan. 01, 2011 | Mar. 31, 2014 | Mar. 31, 2012 | Mar. 31, 2013 | Jan. 01, 2011 | Mar. 31, 2014 | Mar. 31, 2012 | Mar. 31, 2013 | Nov. 11, 2008 | Mar. 31, 2014 | Mar. 31, 2012 | Mar. 31, 2013 | Nov. 28, 2006 | Mar. 31, 2014 | Mar. 31, 2012 | Dec. 31, 2006 | Nov. 28, 2006 | Mar. 31, 2014 | Mar. 31, 2012 | Dec. 31, 2006 | Jan. 27, 2012 | Mar. 31, 2014 | Mar. 31, 2012 | Mar. 31, 2013 | Mar. 31, 2012 | |
Convertible Debt [Member] | Convertible Debt [Member] | Convertible Debt [Member] | Convertible Debt [Member] | Convertible Debt [Member] | Convertible Debt [Member] | Convertible Debt [Member] | Convertible Debt [Member] | Convertible Debt [Member] | Convertible Debt [Member] | Convertible Debt [Member] | Convertible Debt [Member] | Convertible Debt [Member] | Convertible Debt [Member] | Convertible Debt [Member] | Convertible Debt [Member] | Promissory Note [Member] | Promissory Note [Member] | Promissory Note [Member] | Promissory Note [Member] | Promissory Note Two [Member] | Promissory Note Two [Member] | Promissory Note Two [Member] | Promissory Note Two [Member] | Promissory Note Three [Member] | Promissory Note Three [Member] | Promissory Note Three [Member] | Promissory Note Three [Member] | Promissory Note Three [Member] | Promissory Note Three [Member] | Convertible Debt Two [Member] | Convertible Debt Two [Member] | Convertible Debt Two [Member] | Convertible Debt Two [Member] | Convertible Debt Two [Member] | Convertible Debt Five [Member] | Convertible Debt Five [Member] | Convertible Debt Five [Member] | Convertible Debt Five [Member] | Convertible Debt Six [Member] | Convertible Debt Six [Member] | Convertible Debt Six [Member] | Convertible Debt Six [Member] | Convertible Promissory Note [Member] | Convertible Promissory Note [Member] | Convertible Promissory Note [Member] | Convertible Promissory Note [Member] | Convertible Debt Three [Member] | Convertible Debt Three [Member] | Convertible Debt Three [Member] | Convertible Debt Three [Member] | Convertible Debt Four [Member] | Convertible Debt Four [Member] | Convertible Debt Four [Member] | Convertible Debt Four [Member] | Convertible Debt Seven [Member] | Convertible Debt Seven [Member] | Convertible Debt Seven [Member] | Convertible Debt Seven [Member] | Promissory Note Four [Member] | |||||
Conversion One [Member] | Conversion Two [Member] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Notes Payable (Textual) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Maturity date | 30-Jun-12 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 8-Nov-06 | ' | 1-Apr-14 | ' | ' | ' | 15-Dec-09 | 1-Apr-14 | ' | ' | 15-Dec-09 | ' | ' | ' | ' | ' | ' | ' | ' | ' | 15-Dec-09 | ' | ' | ' | ' | 15-Jan-14 | ' | ' | ' | 15-Jan-14 | ' | ' | ' | 1-Oct-09 | ' | ' | ' | 1-Oct-07 | ' | ' | ' | 1-Oct-07 | ' | ' | ' | 15-Jan-15 | ' | ' | ' | ' |
Principal amount | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $100,000 | ' | ' | ' | ' | ' | $150,000 | ' | ' | ' | $50,000 | ' | ' | ' | $50,000 | ' | ' | ' | ' | ' | $100,000 | ' | ' | ' | $50,000 | $250,000 | ' | ' | ' | $200,000 | ' | ' | ' | $30,000 | ' | ' | ' | $2,500 | ' | ' | ' | $5,000 | ' | ' | ' | $200,000 | ' | ' | ' | ' |
Interest rate per annum | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 10.00% | ' | ' | ' | ' | ' | 10.00% | ' | ' | ' | 10.00% | ' | ' | ' | 8.00% | ' | ' | ' | ' | ' | 10.00% | ' | ' | ' | ' | 8.00% | ' | ' | ' | 8.00% | ' | ' | ' | 10.00% | ' | ' | ' | 8.00% | ' | ' | ' | 8.00% | ' | ' | ' | 8.00% | ' | ' | ' | ' |
Conversion price per share | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $0.01 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $0.01 | ' | ' | ' | $0.01 | ' | ' | ' | $3 | ' | ' | ' | $0.01 | ' | ' | ' | $0.01 | ' | ' | ' | ' | ' | ' | ' | ' |
Conversion feature recorded as loan discount | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 25,852 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 95,000 | ' | ' | ' | 60,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2,500 | ' | ' | ' | 5,000 | ' | ' | ' | ' | ' |
Extended maturity description | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 'Maturity date extended for one year. | ' | ' | ' | ' | ' | ' | ' | ' | 'Extended until Apri1 1, 2014 | ' | ' | ' | ' | ' | ' | ' | ' | ' | 'Extended until Apri1 1, 2014. | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 'Extended until April 1, 2014. | ' | ' | ' | 'Extended its maturity date until April 1, 2014. | ' | ' | ' | 'Extended its maturity date until April 1, 2014 | ' | ' | ' | ' | ' | ' | ' |
Common stock issued for conversion of note payable, Shares | ' | ' | 891,195 | 833,397 | 4,000,000 | 2,000,000 | 3,300,000 | 1,500,000 | 1,550,000 | 1,250,000 | 1,250,000 | 950,000 | 1,350,000 | ' | ' | 30,000,000 | 650,000 | ' | 1,250,000 | 1,250,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | 65,079,364 | 15,151,151 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Principal amount converted into equity | ' | ' | ' | ' | 2,000 | 3,000 | 5,000 | 10,000 | 7,000 | 8,000 | 10,000 | 10,000 | 30,000 | ' | ' | 1,000 | 2,250 | ' | 5,000 | 5,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 10,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Accrued interest converted into equity | ' | ' | ' | ' | 167 | 201 | 10,000 | 395 | 1,372 | ' | 600 | ' | 16,152 | ' | ' | 361 | 409 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Life of debt instrument | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '1 year | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Interest expense | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 15,000 | 15,042 | ' | ' | 5,000 | 5,000 | ' | ' | ' | ' | 68 | 2,159 | ' | ' | 15,001 | 15,042 | ' | ' | ' | 20,000 | 20,054 | ' | ' | 16,000 | 16,044 | ' | ' | 3,000 | 3,088 | ' | ' | 200 | 200 | ' | ' | 400 | 400 | ' | ' | 15,298 | 3,057 | ' | 233 |
Interest payable | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 410 | 339 | ' | ' | ' | 64,109 | ' | 49,109 | ' | 20,863 | ' | 15,863 | ' | ' | ' | 0 | ' | 2,159 | ' | 63,123 | ' | 48,123 | ' | ' | 24,384 | ' | 24,384 | ' | 35,507 | ' | 19,507 | ' | 8,876 | ' | 5,876 | ' | ' | ' | ' | ' | ' | ' | ' | ' | 18,805 | ' | 3,507 | ' |
Common stock, shares issued | ' | 6,208,062 | 2,558,584 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 7,500,000 | ' | ' | ' | 1,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | 7,500,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Value of common stock issued | ' | 11,659 | 6,209 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 25,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Amortization of discount on notes payable | ' | ' | 29,069 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 21,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 94,050 | ' | ' | 0 | 59,400 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Interest paid | ' | $72,000 | $20,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $20,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
RELATED_PARTY_TRANSACTIONS_Det
RELATED PARTY TRANSACTIONS (Details Narrative) (USD $) | 12 Months Ended | |
Mar. 31, 2014 | Mar. 31, 2013 | |
Related Party Transactions [Abstract] | ' | ' |
Advances from the president of the Company | $5,000 | $6,000 |
Total Advances to company | 26,000 | 21,000 |
Shares of Series A Preferred Stock issued to an officer/director as payment for promissory notes | 100 | ' |
Value of promissory notes to an officer/director | 500,000 | ' |
Series A Preferred Stock conversion percentage, fully diluted shares outstanding after issuance | 40.00% | ' |
Series A Preferred Stock dividend payment percentage | 8.00% | ' |
Stock dividends incurred | ' | 40,000 |
Amount charged to operations in annual salary | 48,000 | 48,000 |
Amount of compensation paid to Mr. Rodriquez | 42,400 | 46,750 |
Balance of accrued and unpaid salaries | $207,817 | $202,217 |
INCOME_TAXES_Details
INCOME TAXES (Details) (USD $) | 12 Months Ended | |
Mar. 31, 2014 | Mar. 31, 2013 | |
Income Tax Disclosure [Abstract] | ' | ' |
Income tax rate | 34.00% | 34.00% |
Computed "expected" income tax expense | ($267,233) | ($254,767) |
Change in valuation allowance | -267,233 | -254,767 |
Income taxes, total | ' | ' |
INCOME_TAXES_Details_Narrative
INCOME TAXES (Details Narrative) (USD $) | Mar. 31, 2014 |
Income Tax Disclosure [Abstract] | ' |
Federal and State net operating loss carry forwards | $30,823,588 |
Valuation allowance reducing the net realizable benefits of deductible differences | $0 |
STOCKHOLDERS_EQUITY_Warrants_o
STOCKHOLDERS' EQUITY - Warrants outstanding and the related prices for the shares of the Company's common stock issued to non-employees (Details) (USD $) | 12 Months Ended |
Mar. 31, 2014 | |
Warrants Outstanding, Exercise price | 600 |
Warrants Outstanding, Number Outstanding | 167 |
Warrants Exercisable, Weighted Average Exercise Price | 600 |
Warrants Exercisable, Number Exercisable | 167 |
Warrants | ' |
Warrants Outstanding, Weighted Average Remaining Contractual Life (years) | '3 months |
Warrants Exercisable, Weighted Average Remaining Contractual Life (years) | '3 months |
STOCKHOLDERS_EQUITY_Transactio
STOCKHOLDERS' EQUITY - Transactions involving warrants (Details) (USD $) | Mar. 31, 2014 | Mar. 31, 2013 |
Equity [Abstract] | ' | ' |
Outstanding at March 31, 2013 | 167 | 167 |
Outstanding at December 31, 2013 | 167 | 167 |
Weighted Average Price Per Share, Outstanding at March 31, 2013 | $600 | $600 |
Weighted Average Price Per Share, Outstanding at December 31, 2013 | $600 | $600 |
STOCKHOLDERS_EQUITY_Preferred_
STOCKHOLDERS' EQUITY - Preferred Stock (Details Narrative) (USD $) | 0 Months Ended | 12 Months Ended | 2 Months Ended | 11 Months Ended | 12 Months Ended | ||||||||||
Mar. 14, 2014 | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2013 | 31-May-13 | Feb. 28, 2014 | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 30, 2014 | Jan. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2013 | |
Preferred stock, Series A | Preferred stock, Series A | Preferred stock, Series B | Preferred stock, Series B | Preferred stock, Series B | Preferred stock, Series B | Preferred stock, Series B | Preferred stock, Series B | Preferred stock, Series A | Preferred stock, Series A | Preferred stock, Series B | Preferred stock, Series B | ||||
Preferred stock, shares authorized | ' | ' | ' | ' | ' | ' | ' | ' | 2,000 | ' | ' | 1,000,000 | 1,000 | 2,000 | 2,000 |
Preferred stock, par value | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $0.10 | $0.10 | $0.10 | $0.10 |
Preferred stock, shares issued | ' | 100 | ' | ' | ' | ' | ' | ' | ' | ' | ' | 100 | 100 | 1,300 | 1,300 |
Preferred stock, shares outstanding | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 100 | 100 | 150 | 150 |
Preferred stock dividends | ' | $64,780 | $40,000 | $40,000 | $40,000 | ' | ' | $24,780 | $0 | ' | ' | ' | ' | ' | ' |
Preferred stock dividends paid | ' | ' | 40,000 | 38,800 | 34,700 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Accrued balance due to Mr.Rodriguez | ' | 207,817 | 202,217 | ' | 40,750 | ' | ' | ' | ' | ' | ' | 41,950 | ' | ' | ' |
Series A preferred stock issued to officer/director on conversion of promissory notes, Shares | ' | ' | ' | 100 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Series A preferred stock issued to officer/director on conversion of promissory notes | ' | 109,007 | 105,910 | 500,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Fully diluted shares outstanding percentage | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 40.00% | ' | ' | ' |
Dividend rate on preferred stock | 9.00% | ' | ' | 8.00% | ' | ' | ' | 8.00% | ' | ' | ' | ' | ' | ' | ' |
Preferred stock face amount | ' | ' | ' | ' | ' | ' | ' | ' | 1,000 | ' | ' | ' | ' | 1,000 | ' |
Preferred stock sold amount to accredited investor | ' | ' | ' | ' | ' | 50,000 | 300,000 | 150,000 | ' | ' | ' | ' | ' | ' | ' |
Preferred stock shares sold to accredited investor | ' | ' | ' | ' | ' | 50 | 300 | 150 | ' | ' | ' | ' | ' | ' | ' |
Preferred stock exchanged, shares | ' | ' | ' | ' | ' | ' | ' | 200 | ' | 200 | 400 | ' | ' | ' | ' |
Preferred stock exchanged | ' | ' | ' | ' | ' | ' | ' | $200,000 | ' | $200,000 | $400,000 | ' | ' | ' | ' |
STOCKHOLDERS_EQUITY_Common_Sto
STOCKHOLDERS' EQUITY - Common Stock (Details Narrative) (USD $) | 12 Months Ended | 0 Months Ended | |||||||||||||
Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2012 | Nov. 06, 2013 | Oct. 10, 2013 | Jul. 26, 2013 | Jun. 28, 2013 | Oct. 16, 2013 | Sep. 13, 2013 | Jul. 01, 2013 | Jun. 28, 2013 | Jun. 04, 2013 | 5-May-13 | 3-May-13 | Jul. 02, 2013 | |
Stock Issued To A Consultant | Stock Issued To A Consultant | Stock Issued To A Consultant | Stock Issued To A Consultant | Common Stock | Common Stock | Common Stock | Common Stock | Common Stock | Common Stock | Common Stock | Stock Issued To Board Of Directors | ||||
Common stock issued for cash, value | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $250,000 | ' | ' | $50,000 | ' |
Common stock issued for cash, shares | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2,800,000 | ' | ' | 500,000 | ' |
Placement of common stock compensated by issuance of common stock to a third party | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 500,000 | ' | ' |
Common stock issued for compensation, shares | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 100,000 | ' | ' |
Common stock issued for compensation, value | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 10,000 | ' | ' |
Common stock, par value per share | ' | ' | ' | $0.10 | $0.10 | $0.10 | $0.10 | $0.10 | $0.15 | $0.17 | ' | $0.08 | $0.10 | $0.10 | $0.10 |
Common stock issued for conversion of note payable, value | 109,007 | 750 | ' | ' | ' | ' | ' | 10,000 | 22,500 | 17,000 | ' | 8,000 | ' | ' | ' |
Common stock issued for conversion of note payable, shares | ' | 891,195 | 833,397 | ' | ' | ' | ' | 100,000 | 150,000 | 100,000 | ' | 100,000 | ' | ' | ' |
Credited amount on conversion of notes payable | ' | ' | ' | ' | ' | ' | ' | 100 | 150 | 100 | ' | 100 | ' | ' | ' |
Loss on conversion of notes payable | -57,050 | -48,711 | ' | ' | ' | ' | ' | 9,900 | 22,350 | 16,900 | ' | 7,900 | ' | ' | ' |
Common stock issued for services, value | $262,001 | $197,500 | ' | $25,000 | $22,000 | $25,000 | $50,000 | ' | ' | ' | ' | ' | ' | ' | $18,000 |
Common stock issued for services, shares | ' | ' | ' | 250,000 | 220,000 | 250,000 | 500,000 | ' | ' | ' | ' | ' | ' | ' | 180,000 |
Technology_license_agreement_D
Technology license agreement (Details) (USD $) | 12 Months Ended |
Mar. 31, 2014 | |
Technology License Agreement (Textual) | ' |
Percentage of net sales as royalty income | 5.00% |
Percentage of sublicense fees and revenues | 25.00% |
Impairment expense | $53,471,100 |
Value of licensed agreement | $0 |
Earnings_Per_Share_Details
Earnings Per Share (Details) (USD $) | 12 Months Ended | |
Mar. 31, 2014 | Mar. 31, 2013 | |
Earning Per Share (Textual) | ' | ' |
Net loss per share | $0.09 | $0.23 |
ASC_93223555_SUPPLEMENTAL_DISC2
ASC 932-235-55 SUPPLEMENTAL DISCLOSURES (Details) (USD $) | Mar. 31, 2014 | Mar. 31, 2013 |
Natural gas and oil properties and related equipment: | ' | ' |
Proven | $1,157,650 | $1,165,546 |
Unproven | 1,867,183 | 1,867,183 |
Accumulated depreciation, depletion, and impairment | -1,008,173 | -987,713 |
Net capitalized costs | $2,016,660 | $2,040,016 |
ASC_93223555_SUPPLEMENTAL_DISC3
ASC 932-235-55 SUPPLEMENTAL DISCLOSURES (Details 1) (USD $) | 12 Months Ended | |
Mar. 31, 2014 | Mar. 31, 2013 | |
Summary of costs incurred in natural gas and oil property acquisition, exploration and development activities | ' | ' |
Acquisition of properties | $0 | $0 |
Development costs | 0 | 0 |
Total costs incurred | $0 | $0 |
ASC_93223555_SUPPLEMENTAL_DISC4
ASC 932-235-55 SUPPLEMENTAL DISCLOSURES (Details 2) (USD $) | 12 Months Ended | |
Mar. 31, 2014 | Mar. 31, 2013 | |
Summary of results of operations from natural gas and oil producing activities | ' | ' |
Production revenues | $156,322 | $163,574 |
Production costs | -134,033 | -124,902 |
Impairment of property | ' | ' |
Depreciation and depletion expense | -63,046 | -76,133 |
Results of operation for natural gas / oil producing activity gross | -40,757 | -37,461 |
Imputed income tax provision (1) | ' | ' |
Results of operation for natural gas / oil producing activity | ($40,757) | ($37,461) |
ASC_93223555_SUPPLEMENTAL_DISC5
ASC 932-235-55 SUPPLEMENTAL DISCLOSURES (Details 3) | 12 Months Ended | |||||||
Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2012 | Mar. 31, 2011 | Mar. 31, 2010 | Mar. 31, 2009 | Mar. 31, 2008 | Mar. 31, 2007 | |
bbl | bbl | bbl | bbl | bbl | bbl | bbl | bbl | |
Summary of contains estimates of proved natural gas and oil reserves | ' | ' | ' | ' | ' | ' | ' | ' |
Beginning Balance | 25,315 | 24,732 | 22,665 | 23,133 | 45,647 | 29,133 | 28,772 | ' |
Purchase of reserves-in-place | ' | ' | ' | 4,823 | ' | 22,282 | 11,560 | 29,815 |
Extensions and discoveries | ' | ' | ' | ' | ' | ' | 4,216 | ' |
Change in estimates | 7,736 | 2,873 | 4,506 | ' | ' | ' | -11,911 | ' |
Production | -3,979 | -2,290 | -2,439 | -5,291 | -22,514 | -5,768 | -3,504 | -1,043 |
Balance | 29,072 | 25,315 | 24,732 | 22,665 | 23,133 | 45,647 | 29,133 | 28,772 |
ASC_93223555_SUPPLEMENTAL_DISC6
ASC 932-235-55 SUPPLEMENTAL DISCLOSURES (Details 4) (USD $) | 12 Months Ended | |
Mar. 31, 2014 | Mar. 31, 2013 | |
Schedule presents the standardized measure of estimated discounted future net cash flows | ' | ' |
Future production revenue | $1,126,270 | $1,223,951 |
Future production costs | -566,261 | -755,467 |
Future development costs | ' | ' |
Future cash flows before income taxes | 560,009 | 468,484 |
Future income tax | ' | ' |
Future net cash flows | 560,009 | 468,484 |
Effect of discounting future annual cash flows at 10% | -234,457 | -180,083 |
Standard measure of discounted net cash flows | $325,552 | $288,401 |
ASC_93223555_SUPPLEMENTAL_DISC7
ASC 932-235-55 SUPPLEMENTAL DISCLOSURES (Details 5) (USD $) | 12 Months Ended | |
Mar. 31, 2014 | Mar. 31, 2013 | |
Principal sources of change in standardized measure of discounted future net cash flow relating to prove oil and gas reserves | ' | ' |
Standardized measure of discount future net cash flows | $325,552 | $288,401 |
Proved natural oil and gas property, net of accumulated depreciation, depletion, and amortization, including impairment | 149,478 | 186,167 |
Standardized measure of discount future net cash flows in excess of net carrying value of proved natural oil and gas properties | $176,075 | $102,234 |
ASC_93223555_SUPPLEMENTAL_DISC8
ASC 932-235-55 SUPPLEMENTAL DISCLOSURES (Details Textual) (USD $) | 12 Months Ended | |||
Mar. 31, 2013 | Mar. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2014 | |
Oil [Member] | Natural Gas [Member] | Oil [Member] | Natural Gas [Member] | |
ASC 932 235 55 SUPPLEMENTAL DISCLOSURES (Textual) | ' | ' | ' | ' |
Weighted average wellhead price used in computing the Company's reserves | $94.99 | $2.97 | $93.51 | $3.63 |
SUBSEQUENT_EVENTS_Details_Narr
SUBSEQUENT EVENTS (Details Narrative) | 0 Months Ended |
Mar. 14, 2014 | |
Subsequent Events [Abstract] | ' |
Dividend rate on Series B Preferred Shares | 9.00% |