Summary of Significant Accounting Policies (Tables)
|
9 Months Ended |
Sep. 30, 2017 |
|---|
| Summary Of Significant Accounting Policies Tables |
|
| Financial Assets and liabilities measured at fair value |
Assets and liabilities measured at fair value
as of September 30, 2017 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 |
|
$ |
- |
|
|
$ |
- |
|
|
$ |
- |
|
|
$ |
1,446 |
|
| Commodity Derivative |
|
|
- |
|
|
|
683 |
|
|
|
- |
|
|
|
61,744 |
|
| |
|
$ |
- |
|
|
$ |
683 |
|
|
$ |
- |
|
|
$ |
69,190 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Financial liabilities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Derivative liabilities |
|
$ |
- |
|
|
$ |
- |
|
|
$ |
606,878 |
|
|
$ |
433,724 |
|
| |
|
$ |
- |
|
|
$ |
- |
|
|
$ |
606,878 |
|
|
$ |
433,724 |
|
Assets and liabilities measured at fair value
as of December 31, 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 |
|
$ |
106,930 |
|
|
$ |
- |
|
|
$ |
- |
|
|
$ |
156,978 |
|
| |
|
$ |
106,930 |
|
|
$ |
- |
|
|
$ |
- |
|
|
$ |
156,978 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Financial liabilities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Derivative liabilities |
|
$ |
- |
|
|
$ |
- |
|
|
$ |
1,075,833 |
|
|
$ |
265,448 |
|
| Commodity Derivative |
|
|
- |
|
|
|
61,061 |
|
|
|
- |
|
|
|
(61,061 |
) |
| |
|
$ |
- |
|
|
$ |
61,061 |
|
|
$ |
1,075,833 |
|
|
$ |
204,387 |
|
|
| Schedule of Prepaid equity based compensation expenses |
At September 30, 2017 and December 31, 2016,
the balances of the prepaid equity-based compensation were comprised of the following:
| |
|
September 30,
2017
|
|
|
December 31,
2016
|
|
| |
|
|
|
|
|
|
| In March 2016, three one-year consulting agreements with three unrelated parties for services related to the petroleum industry for a combined total amount of $800,000. |
|
|
- |
|
|
|
35,068 |
|
| |
|
|
|
|
|
|
|
|
| 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. |
|
|
17,543 |
|
|
|
- |
|
| |
|
|
|
|
|
|
|
|
| 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. In July 2017, the second quarterly installment was made in the amount of $28,000. |
|
|
5,478 |
|
|
|
- |
|
| |
|
|
|
|
|
|
|
|
| In June 2017, a six-month consulting agreement for services related to investor relations and social media for a total amount of $65,136. |
|
|
27,051 |
|
|
|
- |
|
| |
|
|
|
|
|
|
|
|
| |
|
$ |
50,072 |
|
|
$ |
35,068 |
|
|
| Depreciation, depletion and amortization expense |
Depreciation, depletion and amortization expense
utilizing the unit-of-production method for the Company’s oil and gas properties for the three and nine months ended September
30, 2017 and 2016 were as follows:
| Oil and Gas Properties by Geographical Cost Center |
|
| |
|
Three months ended |
|
|
Nine months ended, |
|
| |
|
September 30, |
|
|
September 30, |
|
| Cost Center |
|
2017 |
|
|
2016 |
|
|
2017 |
|
|
2016 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
| Canada |
|
$ |
21,073 |
|
|
|
6,860 |
|
|
$ |
38,301 |
|
|
$ |
12,272 |
|
| United States |
|
|
38,638 |
|
|
|
22,149 |
|
|
|
108,301 |
|
|
|
65,353 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
$ |
59,711 |
|
|
$ |
29,009 |
|
|
$ |
146,602 |
|
|
$ |
77,625 |
|
|
| Stock-Based Compensation |
The following table represents stock warrant
activity as of and for the nine months ended September 30, 2017:
| |
|
Number of
Shares
|
|
|
Weighted
Average
Exercise
Price
|
|
|
Weighted
Average
Remaining
Contractual Life
|
|
|
Aggregate
Intrinsic
Value
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
| Warrants Outstanding – December 31, 2016 |
|
|
5,720,834 |
|
|
|
0.19 |
|
|
3.6 years |
|
|
|
- |
|
| Granted |
|
|
1,475,000 |
|
|
|
0.30 |
|
|
|
- |
|
|
|
- |
|
| Exercised |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
| Forfeited/expired/cancelled |
|
|
- |
|
|
|
|
|
|
|
- |
|
|
|
- |
|
| Warrants Outstanding – September 30, 2017 |
|
|
7,195,834 |
|
|
$ |
0.21 |
|
|
|
3.8 years |
|
|
$ |
- |
|
| Outstanding Exercisable – December 31, 2016 |
|
|
5,720,834 |
|
|
$ |
0.19 |
|
|
|
3.6 years |
|
|
$ |
- |
|
| Outstanding Exercisable – September 30, 2017 |
|
|
7,195,834 |
|
|
$ |
0.21 |
|
|
|
3.8 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 nine months ended September 30, 2017 and the year ended December 31, 2016:
| |
|
Nine months
ended
September 30,
2017
|
|
|
Year
ended
December 31,
2016
|
|
| |
|
|
|
|
|
|
| Asset retirement obligation – beginning |
|
$ |
833,017 |
|
|
$ |
416,246 |
|
| Oil and gas purchases |
|
|
205,048 |
|
|
|
393,808 |
|
| Accretion expense |
|
|
29,167 |
|
|
|
22,963 |
|
| |
|
|
|
|
|
|
|
|
| Asset retirement obligation - ending |
|
$ |
1,067,232 |
|
|
$ |
833,017 |
|
|