Quarterly report pursuant to Section 13 or 15(d)

Summary of Significant Accounting Policies (Tables)

v3.10.0.1
Summary of Significant Accounting Policies (Tables)
9 Months Ended
Sep. 30, 2018
Summary Of Significant Accounting Policies Tables Abstract  
Financial assets and liabilities measured at fair value

Liabilities measured at fair value as of September 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             1,575,128       -       (1,330,102 )
    $ -     $ 1,575,128     $ -     $ (1,330,102 )

 

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 September 30, 2018 and December 31, 2017, the balances of the prepaid equity-based compensation were comprised of the following:

 

   

September 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

September 30,

   

Nine months ended,

September 30,

 
Cost Center   2018     2017     2018     2017  
                         
Canada   $ -     $ 21,073     $ 21,387     $ 38,301  
United States     412,669       38,638       1,340,919       108,301  
                                 
    $ 412,669     $ 59,711     $ 1,362,306     $ 146,602  

Schedule of revenue by source

The following table disaggregates the Company’s revenue by source for the three and nine-month periods ended September 30, 2018 and 2017:

 

    Three Months Ended September 30,     Nine Months Ended September 30,  
    2018     2017     2018     2017  
                         
Oil   $ 1,872,636       212,273     $ 6,145,546     $ 570,522  
Natural gas and Natural gas liquids     23,296       9,056       230,955       18,100  
                                 
    $ 1,895,932     $ 221,329     $ 6,376,501     $ 588,622  

Schedule of share-based payment award, valuation assumptions

Expected Life in Years     5.0  
Risk-free Interest Rates     2.55% to 2.94 %
Volatility     296% to 297 %
Dividend Yield     0 %

Stock-Based Compensation

The following table represents stock warrant activity as of and for the nine months ended September 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     14,512,159       0.27     4.8 years       -  
Exercised     (1,145,626 )     -       -       -  
Forfeited/expired/cancelled     -               -       -  
                                 
Warrants Outstanding – September 30, 2018     40,807,159     $ 0.27     6.7 years     $ -  
Outstanding Exercisable – December 31, 2017     27,440,626     $ 0.27     8.2 years     $ -  
Outstanding Exercisable – September 30, 2018     40,807,159     $ 0.27     6.7 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 nine months ended September 30, 2018, and the year ended December 31, 2017:

 

   

Nine months ended

September 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  
Adjustments through disposals and settlements     (669,840 )     -  
Accretion expense     137,858       58,075  
                 
Asset retirement obligation – ending   $ 2,795,334     $ 3,096,263