Summary of Significant Accounting Policies (Tables)
|
6 Months Ended |
Jun. 30, 2018 |
|---|
| Summary Of Significant Accounting Policies Tables Abstract |
|
| Financial assets and liabilities measured at fair value |
Liabilities
measured at fair value as of June 30, 2018, are classified below based on the three-level fair value hierarchy described above:
| Description |
|
Quoted
Prices in Active Markets for Identical Assets
(Level
1)
|
|
|
Significant
Other Observable Inputs
(Level
2)
|
|
|
Significant
Unobservable Inputs
(Level
3)
|
|
|
Total
Gains
(Losses)
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
| Financial
Assets |
|
|
|
|
|
|
|
|
|
|
|
|
| Long
term investment |
|
$ |
- |
|
|
$ |
- |
|
|
$ |
- |
|
|
$ |
- |
|
| Commodity
Derivative |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
| |
|
$ |
- |
|
|
$ |
- |
|
|
$ |
- |
|
|
$ |
- |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Financial
liabilities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Derivative
liabilities |
|
$ |
- |
|
|
$ |
- |
|
|
$ |
- |
|
|
$ |
- |
|
| Commodity
Derivative |
|
|
- |
|
|
|
1,232,810 |
|
|
|
- |
|
|
|
(987,784 |
) |
| |
|
$ |
- |
|
|
$ |
1,232,810 |
|
|
$ |
- |
|
|
$ |
(987,784 |
) |
Assets
and liabilities measured at fair value as of December 31, 2017, are classified below based on the three-level fair value hierarchy
described above:
| Description |
|
Quoted
Prices in Active Markets for Identical Assets
(Level
1)
|
|
|
Significant
Other Observable Inputs
(Level
2)
|
|
|
Significant
Unobservable Inputs
(Level
3)
|
|
|
Total
Gains
(Losses)
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
| Financial
Assets |
|
|
|
|
|
|
|
|
|
|
|
|
| Long
term investment |
|
$ |
- |
|
|
$ |
- |
|
|
$ |
- |
|
|
$ |
1,446 |
|
| |
|
$ |
- |
|
|
$ |
- |
|
|
$ |
- |
|
|
$ |
1,446 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Financial
liabilities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Derivative
liabilities |
|
$ |
- |
|
|
$ |
- |
|
|
$ |
807,762 |
|
|
$ |
232,840 |
|
| Commodity
Derivative |
|
|
- |
|
|
|
245,026 |
|
|
|
- |
|
|
|
(183,965 |
) |
| |
|
$ |
- |
|
|
$ |
245,026 |
|
|
$ |
807,762 |
|
|
$ |
48,875 |
|
|
| Schedule of Prepaid equity based compensation expenses |
At
June 30, 2018 and December 31, 2017, the balances of the prepaid equity-based compensation were comprised of the following:
| |
|
June
30,
2018
|
|
|
December
31,
2017
|
|
| |
|
|
| |
|
|
|
|
|
|
| In
February 2017, a one-year consulting agreement for services related to investor relations, market exposure and content development
for a total amount of $44,160. |
|
$ |
- |
|
|
$ |
6,412 |
|
| |
|
|
|
|
|
|
|
|
| In
April 2017, a one-year consulting agreement comprised of four quarterly incremental installments for services related to analysis
of potential oil and gas acquisitions, for an initial quarterly amount of $40,250, a second installment of $28,000 in July
2017, and a third installment of $55,000 in January 2018. |
|
|
- |
|
|
|
5,415 |
|
| |
|
|
|
|
|
|
|
|
| |
|
$ |
- |
|
|
$ |
11,827 |
|
|
| Depreciation, depletion and amortization expense |
| Oil
and Gas Properties by Geographical Cost Center |
| |
| |
|
Three
months ended
June
30,
|
|
|
Six
months ended,
June
30,
|
|
| Cost
Center |
|
2018 |
|
|
2017 |
|
|
2018 |
|
|
2017 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
| Canada |
|
$ |
10,649 |
|
|
$ |
221 |
|
|
$ |
21,387 |
|
|
$ |
17,228 |
|
| United
States |
|
|
449,302 |
|
|
|
35,388 |
|
|
|
928,250 |
|
|
|
69,663 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
$ |
459,951 |
|
|
$ |
35,609 |
|
|
$ |
949,637 |
|
|
$ |
86,891 |
|
|
| Schedule of revenue by source |
The
following table disaggregates the Company’s revenue by source for the three and six-month periods ended June 30, 2018 and
2017:
| |
|
Three
Months Ended June 30, |
|
|
Six
Months Ended June 30, |
|
| |
|
2018 |
|
|
2017 |
|
|
2018 |
|
|
2017 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
| Oil |
|
$ |
2,248,725 |
|
|
|
151,386 |
|
|
$ |
4,272,909 |
|
|
$ |
358,249 |
|
| Natural
gas and Natural gas liquids |
|
|
69,897 |
|
|
|
9,044 |
|
|
|
207,660 |
|
|
|
9,044 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
$ |
2,318,622 |
|
|
$ |
160,430 |
|
|
$ |
4,480,569 |
|
|
$ |
367,293 |
|
|
| Schedule of share-based payment award, valuation assumptions |
| Expected Life in Years |
5.0 |
| Risk-free Interest Rates |
2.55% to 2.73% |
| Volatility |
295.90% |
| Dividend Yield |
0% |
|
| Stock-Based Compensation |
The
following table represents stock warrant activity as of and for the six months ended June 30, 2018:
| |
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Number
of
Shares
|
|
|
Weighted
Average
Exercise
Price
|
|
|
Weighted
Average
Remaining
Contractual Life
|
|
|
Aggregate
Intrinsic
Value
|
|
| Warrants
Outstanding – December 31, 2017 |
|
|
27,440,626 |
|
|
|
0.27 |
|
|
8.2 years |
|
|
|
- |
|
| Granted |
|
|
7,472,284 |
|
|
|
0.20 |
|
|
5.2 years |
|
|
|
- |
|
| Exercised |
|
|
(402,084 |
) |
|
|
- |
|
|
|
- |
|
|
|
- |
|
| Forfeited/expired/cancelled |
|
|
- |
|
|
|
|
|
|
|
- |
|
|
|
- |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Warrants
Outstanding – June 30, 2018 |
|
|
34,510,826 |
|
|
$ |
0.27 |
|
|
7.1 years |
|
|
$ |
- |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Outstanding
Exercisable – December 31, 2017 |
|
|
27,440,626 |
|
|
$ |
0.27 |
|
|
8.2 years |
|
|
$ |
- |
|
| Outstanding
Exercisable – June 30, 2018 |
|
|
32,010,826 |
|
|
$ |
0.27 |
|
|
7.1 years |
|
|
$ |
- |
|
|
| Summary of changes in the Company's asset retirement obligations |
The
following table describes the changes in the Company’s asset retirement obligations for the six months ended June 30, 2018,
and the year ended December 31, 2017:
| |
|
Six
months
ended
June
30,
2018
|
|
|
Year
ended December 31,
2017
|
|
| |
|
|
|
|
|
|
| Asset
retirement obligation – beginning |
|
$ |
3,096,263 |
|
|
$ |
833,017 |
|
| Oil
and gas purchases |
|
|
231,053 |
|
|
|
2,205,171 |
|
| Gain
on ARO Settlement |
|
|
(58,041 |
) |
|
|
- |
|
| Accretion
expense |
|
|
97,777 |
|
|
|
58,075 |
|
| |
|
|
|
|
|
|
|
|
| Asset
retirement obligation – ending |
|
$ |
3,367,052 |
|
|
$ |
3,096,263 |
|
|