Summary of Significant Accounting Policies (Tables)
|
6 Months Ended |
Jun. 30, 2016 |
|---|
| Summary Of Significant Accounting Policies Tables |
|
| Financial Assets and liabilities measured at fair value |
Assets
and liabilities measured at fair value as of June 30, 2016 are classified below based on the three 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 |
|
$ |
239,213 |
|
|
$ |
- |
|
|
$ |
- |
|
|
$ |
152,057 |
|
| |
|
$ |
239,213 |
|
|
$ |
- |
|
|
$ |
- |
|
|
$ |
152,057 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Financial
liabilities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Derivative
liabilities |
|
$ |
- |
|
|
$ |
- |
|
|
$ |
3,338,220 |
|
|
$ |
(1,931,595 |
) |
| |
|
$ |
- |
|
|
$ |
- |
|
|
$ |
3,338,220 |
|
|
$ |
(1,931,595 |
) |
Assets
and liabilities measured at fair value as of December 31, 2015 are classified below based on the three 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 |
|
$ |
87,156 |
|
|
$ |
- |
|
|
$ |
- |
|
|
$ |
19,028 |
|
| |
|
$ |
87,156 |
|
|
$ |
- |
|
|
$ |
- |
|
|
$ |
19,028 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Financial
liabilities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Derivative
liabilities |
|
$ |
- |
|
|
$ |
- |
|
|
$ |
810,647 |
|
|
$ |
266,378 |
|
| |
|
$ |
- |
|
|
$ |
- |
|
|
$ |
810,647 |
|
|
$ |
266,378 |
|
|
| Schedule of Prepaid expenses |
At
June 30, 2016 and December 31, 2015, the balances of the prepaid equity-based compensation were comprised of the following:
| |
|
June
30,
2016 |
|
|
December
31,
2015 |
|
| |
|
|
|
|
|
|
| In
November, 2015, a 1 year consulting agreement with an unrelated party for services related to the petroleum industry in the
amount of $165,000. |
|
$ |
63,288 |
|
|
$ |
145,562 |
|
| |
|
|
|
|
|
|
|
|
| In
March, 2016, 3 one year consulting agreements with 3 unrelated parties for services related to the petroleum industry for
a combined total amount of $800,000. |
|
|
578,630 |
|
|
|
- |
|
| |
|
$ |
641,918 |
|
|
$ |
145,562 |
|
|
| Oil and Gas Properties by Geographical Cost Center |
Depreciation, depletion and amortization expense
utilizing the unit-of-production method for the Company’s oil and gas properties for the three and six months ended June
30, 2016 and 2015 were as follows:
| Oil and Gas Properties by Geographical Cost Center |
|
| |
|
Three months ended |
|
|
Six months ended, |
|
| |
|
June 30, |
|
|
June 30, |
|
| Cost Center |
|
2016 |
|
|
2015 |
|
|
2016 |
|
|
2015 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
| Canada |
|
$ |
3,348 |
|
|
$ |
- |
|
|
$ |
5,412 |
|
|
$ |
- |
|
| United States |
|
|
24,902 |
|
|
|
- |
|
|
|
43,204 |
|
|
|
- |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
$ |
28,250 |
|
|
$ |
- |
|
|
$ |
48,616 |
|
|
$ |
- |
|
|
| Schedule of Stock warrant activity |
The
following table represents stock warrant activity as of and for the six months ended June 30, 2016:
| |
|
Number
of Shares |
|
|
Weighted
Average
Exercise
Price |
|
|
Weighted
Average
Remaining
Contractual Life |
|
|
Aggregate
Intrinsic
Value |
|
| Warrants
Outstanding – December 31, 2015 |
|
|
- |
|
|
|
-. |
|
|
|
- |
|
|
|
- |
|
| Granted |
|
|
4,062,500 |
|
|
|
0.20 |
|
|
5.0 years |
|
|
|
- |
|
| Exercised |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
| Forfeited/expired/cancelled |
|
|
- |
|
|
|
|
|
|
|
- |
|
|
|
- |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Warrants
Outstanding – June 30, 2016 |
|
|
4,062,500 |
|
|
$ |
0.20 |
|
|
5.0
years |
|
|
$ |
- |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Outstanding
Exercisable – December 31, 2015 |
|
|
- |
|
|
$ |
- |
|
|
|
- |
|
|
$ |
- |
|
| Outstanding
Exercisable – June 30, 2016 |
|
|
4,062,500 |
|
|
$ |
0.20 |
|
|
5.0 years |
|
|
$ |
- |
|
|
| Summury 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, 2016:
| Asset
retirement obligation at December 31, 2015 |
|
$ |
416,246 |
|
| Accretion
expense |
|
|
10,279 |
|
| |
|
|
|
|
| Asset
retirement obligation at June 30, 2016 |
|
$ |
426,525 |
|
|