Financials

v3.8.0.1
Consolidated Balance Sheets - USD ($)
Sep. 30, 2017
Dec. 31, 2016
Current assets:    
Cash $ 568,222 $ 18,605
Accounts receivable - oil and gas 63,257 66,176
Other receivable - related party 76,939 76,939
Prepaid expenses 6,549 87,532
Total current assets 714,967 249,252
Oil and gas properties, full cost method    
Proved developed producing oil and gas properties, net 2,254,925 1,765,373
Undeveloped and non-producing oil and gas properties, net 1,166,383 1,237,489
Total oil and gas properties, net 3,421,308 3,002,862
Long term investment 106,930
Derivative asset 683
TOTAL ASSETS 4,136,958 3,359,044
Current liabilities:    
Accrued expenses and other current liabilities 253,491 179,421
Accounts payable 115,885 121,365
Derivative liability 606,878 1,136,894
Amount due to directors 1,056,147 1,072,576
Current portion of long term debt - net of debt discount 1,518,464 1,302,476
Total current liabilities 3,550,865 3,812,732
Long term debt - net of current portion and debt discount 2,568,568 1,579,469
Asset retirement obligation 1,067,232 833,017
TOTAL LIABILITIES 7,186,665 6,225,218
Commitments and contingencies (Note 7)
Capital Stock    
Preferred stock, $0.001 par value, 5,000,000 shares authorized, 28,092 shares issued and outstanding as of September 30, 2017 and December 31, 2016 28 28
Common stock, $0.001 par value, 100,000,000 shares authorized, 66,220,524 and 53,093,192 shares issued, issuable and outstanding as of September 30, 2017 and December 31, 2016 respectively. 66,221 53,093
Additional Paid-In Capital 14,011,458 11,526,847
Prepaid equity-based compensation (50,072) (35,068)
Accumulated other comprehensive loss (1,446)
Accumulated deficit (17,077,342) (14,409,628)
TOTAL STOCKHOLDERS DEFICIT (3,049,707) (2,866,174)
TOTAL LIABILITIES AND STOCKHOLDERS' DEFICIT $ 4,136,958 $ 3,359,044

Source

v3.8.0.1
Consolidated Statements of Operations and Comprehensive Loss (Unaudited) - USD ($)
3 Months Ended 9 Months Ended
Sep. 30, 2017
Sep. 30, 2016
Sep. 30, 2017
Sep. 30, 2016
Revenue        
Oil and gas sales $ 221,329 $ 105,427 $ 588,622 $ 232,013
Operating expenses        
Lease operating costs 172,893 66,456 437,477 165,773
General and administrative 180,400 186,508 666,323 439,604
Stock based compensation 153,155 172,219 1,304,175 578,363
Accretion - ARO 10,526 5,234 29,167 15,513
Depreciation, depletion and amortization 59,711 29,009 146,602 77,625
Total operating expenses 576,685 459,426 2,583,744 1,276,878
Loss from operations (355,356) (353,999) (1,995,122) (1,044,865)
Other income (expenses)        
Interest expense (470,614) (542,107) (1,160,875) (1,966,015)
Change in fair value of derivatives 40,370 2,765,013 495,468 833,418
Loss on sale of investments (7,185)
Gain on settlement of debt 75,000
Total other income (expense) (430,244) 2,222,906 (672,592) (1,057,597)
Net income (loss) before income taxes (785,600) 1,868,907 (2,667,714) (2,102,462)
Income tax provision (635,428)
Benefit from utilization of net operating loss 635,428
Net income (loss) (785,600) 1,868,907 (2,667,714) (2,102,462)
Other comprehensive income (loss)        
Unrealized gain (loss) on securities available-for-sale (3,394) 1,446 148,663
Net Comprehensive income (loss) $ (785,600) $ 1,865,513 $ (2,666,268) $ (1,953,798)
Earnings (loss) per common share        
Basic $ (0.01) $ 0.04 $ (0.04) $ (0.05)
Diluted $ (0.01) $ 0.04 $ (0.04) $ (0.05)
Weighted average number of common shares outstanding        
Basic 64,051,015 45,837,636 60,723,535 43,584,699
Diluted 64,051,015 54,004,303 60,723,535 43,584,699

Source

v3.8.0.1
Consolidated Statement Of Cash Flows (Unaudited) - USD ($)
3 Months Ended 9 Months Ended 12 Months Ended
Sep. 30, 2017
Sep. 30, 2016
Sep. 30, 2017
Sep. 30, 2016
Dec. 31, 2016
Cash flows from operating activities:          
Net loss $ (785,600) $ 1,868,907 $ (2,667,714) $ (2,102,462) $ (5,445,187)
Adjustments to reconcile net loss to cash used in operating activities:          
Derivative gain (40,370) (2,765,013) (495,468) (833,418)  
Amortization of prepaid expenses     180,983  
Stock based compensation 153,155 172,219 1,304,175 578,363  
Stock based interest payment       52,500  
Loss on sale of investments 7,185  
Depreciation, depletion and amortization 59,711 29,009 146,602 77,625  
Accretion - Asset retirement obligation 10,526 5,234 29,167 15,513  
Amortization of debt discount     817,431 1,626,062  
Changes in operating assets and liabilities          
Accounts receivable     2,919 (11,947)  
Accounts payable     (5,480) (89,282)  
Accrued expenses and other current liabilities     90,975 151,862  
Amounts due to directors     121,755 197,280  
Net cash used in operating activities     (467,470) (337,904)  
Cash flows from investing activities:          
Purchase of oil and gas properties     (360,000) (1,350,000)  
Proceeds from sale of investments     101,191  
Net cash used in investing activities     (258,809) (1,350,000)  
Cash flows from financing activities:          
Proceeds from amount due to directors     5,350  
Repayments of amount due to directors     (348,438) (56,056)  
Proceeds from sale of common stock     331,667 388,125  
Common stock issuance costs     (37,500)  
Proceeds from long term debt     3,288,650 2,021,875  
Debt issuance costs     (216,000)  
Repayment of long term debt     (1,785,333) (570,500)  
Net cash provided by financing activities     1,275,896 1,745,944  
Net increase in cash     549,617 58,040  
Cash, beginning of period     18,605 30,585 30,585
Cash, end of period $ 568,222 $ 88,625 568,222 88,625 $ 18,605
Supplemental Cash Flow Information          
Cash paid for: Interest     209,307 125,431  
Cash paid for: Income taxes      
Supplemental Disclosure of Non-Cash Investing and Financing Activities:          
Conversion of convertible note payable     6,778  
Issuance of shares for oil and gas property acquisitions     820,250  
Issuance of warrants for 4,062,500 common shares as debt discount     416,315  
Loan from director to pay convertible debt     100,000  
Issuance of shares as deposit for oil and gas property acquisition     288,000  
Prepayment of contract through amounts due directors     100,000  
Long term debt paid through amounts due directors     104,904  
Issuance of shares for contract services     700,920  
Sale of shares through satisfaction of unrelated notes payable     127,215  
Accrued expenses exchanged for long term debt     9,500  
Increase in oil and gas properties due to asset retirement obligation     205,048  
Issuance of shares and warrants as discount on debt     $ 684,411  

Source