Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2016 | Dec. 14, 2016 | |
Document And Entity Information | ||
Entity Registrant Name | VIKING INVESTMENTS GROUP, INC. | |
Entity Central Index Key | 1,102,432 | |
Document Type | 10-Q/A | |
Document Period End Date | Mar. 31, 2016 | |
Amendment Flag | true | |
Amendment Description | This Amendment No. 2 of Form 10-Q/A for the three months ended March 31, 2016, amends in its entirety the Quarterly Report on Form 10-Q/A that was originally filed on August 22, 2016 to reflect a restatement of the Companys financial statements for the three months ended March 31, 2016, to correct various account balances as summarized below. The restatements are being made in accordance with ASC 250, Accounting Changes and Error Corrections. The disclosure provision of ASC 250 requires a company that corrects an error to disclose that its previously issued financial statements have been restated, a description of the nature of the error, the effect of the correction on each financial statement line item and any per share amount affected for each prior period presented, and the cumulative effect on retained earnings (deficit) in the statement of financial position as of the beginning of each period presented. | |
Current Fiscal Year End Date | --12-31 | |
Entity Well-known Seasoned Issuer | No | |
Entity Voluntary Filer | No | |
Entity's Reporting Status Current | Yes | |
Entity Filer Category | Smaller Reporting Company | |
Entity Common Stock, Shares Outstanding | 51,986,940 | |
Document Fiscal Period Focus | Q1 | |
Document Fiscal Year Focus | 2,016 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) | Mar. 31, 2016 | Dec. 31, 2015 |
Current assets: | ||
Cash | $ 30,585 | |
Accounts receivable - oil and gas | ||
Other receivable - related party | $ 153,877 | 153,877 |
Total current assets | 184,462 | |
Oil and gas properties, full cost method | ||
Proved developed producing oil and gas properties, net | 30,989 | |
Undeveloped and non-producing oil and gas properties, net | 485,481 | |
Total oil and gas properties, net | 2,666,354 | 516,470 |
Long term investment | 87,156 | |
TOTAL ASSETS | 788,088 | |
Current liabilities: | ||
Accrued expenses and other current liabilities | 95,575 | |
Accounts payable | 104,774 | |
Derivative liability | 2,377,823 | 810,647 |
Amount due to directors | 614,991 | |
Current portion of long term debt - net of debt discount | 16,770 | |
Total current liabilities | 1,642,757 | |
Long term debt - net of current portion and debt discount | 6,778 | |
Asset retirement obligation | 421,354 | 416,246 |
TOTAL LIABILITIES | 2,065,781 | |
STOCKHOLDERS' DEFICIT | ||
Preferred stock, $0.001 par value, 5,000,000 shares authorized, 28,092 shares issued and outstanding as of March 31, 2016 and December 31, 2015 | 28 | |
Common stock, $0.001 par value, 100,000,000 shares Authorized, 46,284,919 and 30,333,993 shares issued, issuable and outstanding as of March 31, 2016 and December 31, 2015 respectively. (14,650,000 and 0 shares issuable, respectively). | 30,334 | |
Additional Paid-In Capital | 7,960,372 | |
Prepaid equity-based compensation | (145,562) | |
Accumulated other comprehensive income | (158,424) | |
Accumulated deficit | (8,964,441) | |
TOTAL STOCKHOLDERS' DEFICIT | (2,670,026) | (1,277,693) |
TOTAL LIABILITIES AND STOCKHOLDERS' DEFICIT | $ 788,088 | |
Restated | ||
Current assets: | ||
Cash | 43,350 | |
Accounts receivable - oil and gas | 7,604 | |
Other receivable - related party | 153,877 | |
Total current assets | 204,831 | |
Oil and gas properties, full cost method | ||
Proved developed producing oil and gas properties, net | 1,326,076 | |
Undeveloped and non-producing oil and gas properties, net | 1,340,278 | |
Total oil and gas properties, net | 2,666,354 | |
Long term investment | 79,891 | |
TOTAL ASSETS | 2,951,076 | |
Current liabilities: | ||
Accrued expenses and other current liabilities | 154,033 | |
Accounts payable | 98,374 | |
Derivative liability | 3,664,741 | |
Amount due to directors | 614,410 | |
Current portion of long term debt - net of debt discount | 668,190 | |
Total current liabilities | 5,199,748 | |
Long term debt - net of current portion and debt discount | ||
Asset retirement obligation | 421,354 | |
TOTAL LIABILITIES | 5,621,102 | |
STOCKHOLDERS' DEFICIT | ||
Preferred stock, $0.001 par value, 5,000,000 shares authorized, 28,092 shares issued and outstanding as of March 31, 2016 and December 31, 2015 | 28 | |
Common stock, $0.001 par value, 100,000,000 shares Authorized, 46,284,919 and 30,333,993 shares issued, issuable and outstanding as of March 31, 2016 and December 31, 2015 respectively. (14,650,000 and 0 shares issuable, respectively). | 46,285 | |
Additional Paid-In Capital | 9,695,027 | |
Prepaid equity-based compensation | (882,507) | |
Accumulated other comprehensive income | (165,689) | |
Accumulated deficit | (11,363,170) | |
TOTAL STOCKHOLDERS' DEFICIT | (2,670,026) | |
TOTAL LIABILITIES AND STOCKHOLDERS' DEFICIT | $ 2,951,076 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Mar. 31, 2016 | Dec. 31, 2015 |
STOCKHOLDERS' EQUITY | ||
Preferred stock Series, par value | $ 0.001 | $ 0.001 |
Preferred stock Series, authorized | 5,000,000 | 5,000,000 |
Preferred stock Series, issued | 28,092 | 28,092 |
Preferred stock Series, outstanding | 28,092 | 28,092 |
Common stock, par value | $ 0.001 | $ 0.001 |
Common stock, authorized | 100,000,000 | 100,000,000 |
Common stock, issued | 46,284,919 | 30,333,993 |
Common stock, outstanding | 46,284,919 | 30,333,993 |
Consolidated Statements of Oper
Consolidated Statements of Operations and Comprehensive Loss (Unaudited) - USD ($) | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Operating expenses | ||
Accretion - ARO | $ 5,108 | |
Other income (expense) | ||
Change in fair value of derivative liability | 1,216,303 | |
Net loss | (2,398,729) | |
Other comprehensive income (loss) | ||
Unrealized gain (loss) on securities available-for-sale | (7,265) | $ 19,028 |
Net Comprehensive Loss | (7,265) | 54,768 |
Restated | ||
Revenue | ||
Oil and gas sales | 40,722 | |
Operating expenses | ||
Lease operating costs | 40,984 | |
General and administrative | 120,195 | 145,188 |
Stock based compensation | 165,555 | |
Accretion - ARO | 5,108 | |
Depreciation, depletion and amortization | 20,366 | |
Total operating expenses | 352,208 | 145,188 |
Loss from operations | (311,486) | (145,188) |
Other income (expense) | ||
Interest expense | (431,707) | (19,036) |
Change in fair value of derivative liability | (1,655,536) | 57,442 |
Derivative expense | (248,922) | |
Gain on settlement of debt | ||
Total other income (expense) | (2,087,243) | (210,516) |
Net loss before income taxes | (2,398,729) | (355,704) |
Income tax expense | ||
Net loss | (2,398,729) | (355,704) |
Other comprehensive income (loss) | ||
Unrealized gain (loss) on securities available-for-sale | (7,265) | 54,768 |
Net Comprehensive Loss | $ (2,405,994) | $ (300,936) |
Loss per common share - Basic and diluted | $ (0.06) | $ (0.01) |
Weighted average number of common shares outstanding basic | 37,741,400 | 24,769,551 |
Consolidated Statement Of Cash
Consolidated Statement Of Cash Flows (Unaudited) - USD ($) | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | Dec. 31, 2015 | |
Cash flows from operating activities: | |||
Net loss | $ (2,398,729) | $ (1,897,174) | |
Restated | |||
Cash flows from operating activities: | |||
Net loss | (2,398,729) | $ (355,704) | |
Adjustments to reconcile net loss to cash used in operating activities: | |||
Derivative (gain) loss | 1,655,536 | (57,442) | |
Derivative | 248,922 | ||
Stock based compensation | 165,555 | ||
Depreciation, depletion and amortization | 20,366 | ||
Accretion - Asset retirement obligation | 5,108 | ||
Amortization of debt discount | 387,723 | 4,167 | |
Changes in operating assets and liabilities | |||
Accounts receivable | (7,604) | ||
Accounts payable | (6,400) | 19,752 | |
Accrued expenses and other current liabilities | 61,791 | (37,375) | |
Amounts due to directors | 35,194 | 81,239 | |
Net cash used in operating activities | (81,460) | (96,441) | |
Cash flows from investing activities: | |||
Purchase of oil and gas properties | (1,350,000) | ||
Net cash used in investing activities | (1,350,000) | ||
Cash flows from financing activities: | |||
Proceeds from amount due to directors | 10,000 | ||
Repayments of amount due to directors | (35,775) | (612) | |
Proceeds from convertible notes | 1,480,000 | 157,500 | |
Repayment of convertible notes | (64,000) | ||
Net cash provided by financing activities | 1,444,225 | 102,888 | |
Net increase in cash | 12,765 | 6,447 | |
Cash, beginning of period | 30,585 | 1,345 | 1,345 |
Cash, end of period | 43,350 | 7,792 | $ 30,585 |
Supplemental Cash Flow Information | |||
Cash paid for: Interest | 14,442 | ||
Cash paid for: Income taxes | |||
Supplemental disclosure of Non-Cash Investing and Financing Activities: | |||
Conversion of convertible note | 6,778 | ||
Issuance of shares for oil and gas property acquisition | 820,250 | ||
Issuance of warrants for 4,062,500 common shares as debt discount | $ 416,315 |
Consolidated Statement of Chang
Consolidated Statement of Changes in Stockholders' Equity (Unaudited) - USD ($) | Common Stock | Shares to be issued | Preferred Stock | Additional Paid-in Capital | Prepaid Equity-Based Compensation | Accumulated Other Comprehensive Income | Deficit | Total |
Beginning Balance, Shares at Dec. 31, 2014 | 24,094,551 | 675,000 | 28,092 | |||||
Beginning Balance, Amount at Dec. 31, 2014 | $ 24,095 | $ 675 | $ 28 | $ 7,162,660 | $ (177,452) | $ (7,067,267) | $ (57,261) | |
Shares issued to investors, Shares | 675,000 | (675,000) | ||||||
Shares issued to investors, Amount | $ 675 | $ (675) | ||||||
Shares issued for consulting services, Shares | 720,000 | |||||||
Shares issued for consulting services, Amount | $ 720 | 107,280 | 108,000 | |||||
Shares issued in satisfaction of debt, Shares | 421,571 | |||||||
Shares issued in satisfaction of debt, Amount | $ 421 | 29,579 | 30,000 | |||||
Shares issued in satisfaction of debt one, Shares | 2,872,871 | |||||||
Shares issued in satisfaction of debt one, Amount | $ 2,873 | 198,228 | 201,101 | |||||
Shares issued for convertible debt, Shares | 550,000 | |||||||
Shares issued for convertible debt, Amount | $ 550 | 20,450 | 21,000 | |||||
Shares issued as prepaid equity-based compensation. Shares | 1,000,000 | |||||||
Shares issued as prepaid equity-based compensation, Amount | $ 1,000 | 164,000 | (165,000) | |||||
Derivative liability adjustment - satisfaction of convertible debt | 278,175 | 278,175 | ||||||
Unrealized gain (loss) on securities held for sale | 19,028 | 19,028 | ||||||
Amortization of prepaid equity-based compensation | 19,438 | 19,438 | ||||||
Net Loss | (1,897,174) | (1,897,174) | ||||||
Ending Balance, Shares at Dec. 31, 2015 | 30,333,993 | 28,092 | ||||||
Ending Balance, Amount at Dec. 31, 2015 | $ 30,334 | $ 28 | 7,960,372 | (145,562) | (158,424) | (8,964,441) | (1,277,693) | |
Shares issued for consulting services, Shares | 1,000,000 | |||||||
Shares issued for consulting services, Amount | $ 1,000 | 101,500 | 102,500 | |||||
Shares issued in satisfaction of debt, Shares | 300,926 | |||||||
Shares issued in satisfaction of debt, Amount | $ 301 | 9,810 | 10,111 | |||||
Shares issued as prepaid equity-based compensation. Shares | 5,000,000 | |||||||
Shares issued as prepaid equity-based compensation, Amount | $ 5,000 | 795,000 | (800,000) | |||||
Derivative liability adjustment - satisfaction of convertible debt | 17,745 | 17,745 | ||||||
Unrealized gain (loss) on securities held for sale | (7,265) | (7,265) | ||||||
Amortization of prepaid equity-based compensation | 63,055 | 63,055 | ||||||
Shares issued in acquisition of oil and gas properties, Shares | 9,650,000 | |||||||
Shares issued in acquisition of oil and gas properties, Amount | $ 9,650 | 810,600 | 820,250 | |||||
Net Loss | (2,398,729) | (2,398,729) | ||||||
Ending Balance, Shares at Mar. 31, 2016 | 31,634,919 | 14,650,000 | 28,092 | |||||
Ending Balance, Amount at Mar. 31, 2016 | $ 31,635 | $ 14,650 | $ 28 | $ 9,695,027 | $ (882,507) | $ (165,689) | $ (11,363,170) | $ (2,670,026) |
Nature of Business and Going Co
Nature of Business and Going Concern | 3 Months Ended |
Mar. 31, 2016 | |
Notes to Financial Statements | |
Note 1. Nature of Business and Going Concern | The Company was incorporated under the laws of the State of Florida on May 3, 1989, as Sparta Ventures Corp. and remained inactive until June 27, 1998. After several name changes, the Company merged with and into a wholly-owned subsidiary, SinoCubate, Inc., which remained the surviving entity of the merger. SinoCubate, Inc. was formed in the State of Nevada on September 11, 2008. The merger resulted in a change of name of the Company from Synthenol Inc. to SinoCubate, Inc., and a change in the state of incorporation of the Company from Florida to Nevada. On June 13, 2012, the Company changed its name to Viking Investments Group, Inc., and the Companys ticker symbol was changed to VKIN. The Company's business plan is to engage in the acquisition, exploration, development and production of oil and natural gas properties, both individually and through collaborative partnerships with other companies in this field of endeavor. On March 8, 2016, the Company incorporated a wholly owned subsidiary, Viking Oil & Gas (Canada) ULC, in Alberta, Canada, to hold its Canadian oil and gas interests. In November of 2014, the Company entered into its first contract relative to oil and gas activities involving jointly controlled assets and related liabilities by purchasing an undivided 50% interest in the Joffre project located in Alberta, Canada. On February 23, 2016, the Company closed on the acquisition of working interests in four leases with access to the mineral rights (oil and gas) concerning approximately 281 acres of property in Miami and Franklin Counties in eastern Kansas. These consolidated financial statements have been prepared on a going concern basis, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business. The Company had a net comprehensive loss of $2,405,994 and $300,936 for the three months ended March 31, 2016 and 2015, respectively. The Company has accumulated a stockholders deficit of $2,670,026 as of March 31, 2016. These conditions raise substantial doubt about the Companys ability to continue as a going concern. The Companys ability to continue as a going concern is dependent upon its ability to generate future profitable operations and/or to obtain the necessary financing to meet its obligations and repay its liabilities arising from normal business operations when they come due. Management has no formal plan in place to address this concern but considers that the Company will be able to obtain additional funds by equity financing and/or related party advances; however, there is no assurance of additional funding being available. These consolidated financial statements do not include any adjustments to the recorded assets or liabilities that might be necessary should the Company have to curtail operations or be unable to continue in existence. |
Restatement
Restatement | 3 Months Ended |
Mar. 31, 2016 | |
Restatement | |
Note 2. Restatement | Restatement of Financial Statements for the three months ended March 31, 2016 and 2015 The Company is restating its financial statements for the three months ended March 31, 2016 and 2015 to correct various account balances as summarized below. The restatements are being made in accordance with ASC 250, Accounting Changes and Error Corrections. The disclosure provision of ASC 250 requires a company that corrects an error to disclose that its previously issued financial statements have been restated, a description of the nature of the error, the effect of the correction on each financial statement line item and any per share amount affected for each prior period presented, and the cumulative effect on retained earnings (deficit) in the statement of financial position as of the beginning of each period presented. The effects of the adjustments on the Companys previously issued unaudited financial statements are summarized as follows: Selected Unaudited Consolidated Balance Sheets Information as of March 31, 2016 Previously Net Reported Change Restated Petroleum and natural gas rights / oil and gas properties 2,957,441 (291,087 ) 2,666,354 Derivative liability 1,286,918 2,377,823 3,664,741 Additional paid in capital 9,391,246 303,781 9,695,027 Accumulated deficit (9,044,242 ) (2,318,928 ) (11,363,170 ) Selected Unaudited Consolidated Statements of Operations and Comprehensive Loss information for the three months ended March 31, 2016 and 2015 Three months ended March 31, 2016 Previously Net Reported Change Restated Derivative gain (loss) / change in fair value (527,303 ) (1,128,233 ) (1,655,536 ) Interest expense (181,257 ) (250,450 ) (431,707 ) Loss from operations (356,425 ) 44,939 (311,486 ) Net loss (1,064,985 ) (1,333,744 ) (2,398,729 ) Net comprehensive loss (1,072,250 ) (1,333,744 ) (2,405,994 ) Basic and diluted loss per common share (0.03 ) (0.03 ) (0.06 ) Three months ended March 31, 2015 Previously Net Reported Change Restated Derivative gain (loss) / change in fair value - 57,442 57,442 Derivative expense - (248,922 ) (248,922 ) Loss from operations (149,730 ) 4,542 (145,188 ) Net loss (168,932 ) (186,772 ) (355,704 ) Net comprehensive loss (114,164 ) (186,772 ) (300,936 ) Basic and diluted loss per common share (0.01 ) - (0.01 ) Selected Unaudited Consolidated Statements of Cash Flows information for the three months ended March 31, 2016 and 2015 Three months ended March 31, 2016 Previously Net Reported Change Restated Net Loss (1,064,985 ) (1,333,744 ) (2,398,729 ) Derivative (gain) loss / change in fair value 527,303 1,128,233 1,655,536 Stock based compensation 102,500 63,055 165,555 Depreciation, depletion and amortization 70,413 (50,047 ) 20,366 Amortization of debt discount 132,164 255,559 387,723 Net cash used in operations 116,654 (35,194 ) 81,460 Three months ended March 31, 2015 Previously Net Reported Change Restated Net Loss (168,932 ) (186,772 ) (355,704 ) Derivative (gain) loss / change in fair value - (57,442 ) (57,442 ) Derivative expense - 248,922 248,922 Depreciation, depletion and amortization 4,542 (4,542 ) - Amortization of debt discount 8,333 (4,166 ) 4,167 Net cash used in operations 120,878 (24,437 ) 96,441 The Company uses the full cost method of accounting for its oil and gas properties, which requires a capitalized cost limitation test (ceiling test) at each report date. This analysis utilizes information included in an annual reserve report. The report originally used did not contemplate the pricing requirements for proved reserves promulgated by the Securities and Exchange Commission (SEC). The Company obtained a revised reserve report in October 2016, which met the SEC pricing requirements for proved reserves. Based on this report, the Company determined that an impairment of $210,032 should be recorded for the year ended December 31, 2015, consequently reducing the balances carried forward to 2016 and impacting the calculations for depletion. The Company also reevaluated the methodology originally used to estimate the derivative liabilities associated with the conversion features of certain debt instruments, and the impact on additional paid in capital associated with these transactions. The Company determined that the accounting for these transactions understated the derivative liability at March 31, 2016 by $2,377,823. The change in the estimated fair value of these derivatives resulted in a loss of $1,655,536 for the three months ended March 31, 2016 as compared to previously recording a loss of $527,303. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2016 | |
Notes to Financial Statements | |
Note 3. Summary of Significant Accounting Policies | a) Basis of Presentation The accompanying unaudited consolidated financial statements of Viking Investments Group, Inc. (Viking or the Company) have been prepared in accordance with generally accepted accounting principles in the United States of America (GAAP) and the rules of the Securities and Exchange Commission (SEC) and should be read in conjunction with the audited financial statements and notes thereto contained in Vikings latest Annual Report filed with the SEC on Form 10-K/A. In the opinion of management, all adjustments, consisting of normal recurring adjustments (unless otherwise indicated), necessary for a fair presentation of the financial position and the results of operations for the interim periods presented have been reflected herein. The results of operations for interim periods are not necessarily indicative of the results to be expected for the full year. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. b) Basis of Consolidation The financial statements presented herein reflect the consolidated financial results of the Company and its wholly owned subsidiary, Viking Oil & Gas (Canada) ULC, a Canadian corporation formed on March 8, 2016. This subsidiary is intended to provide a base of operations in Canada, although at the time of this filing there has been no activity. All significant intercompany transactions and balances have been eliminated upon consolidation. c) Use of Estimates in the Preparation of Financial Statements The preparation of consolidated financial statements in conformity with GAAP requires management to make certain estimates and assumptions that affect the reported amounts and timing of revenues and expenses, the reported amounts and classification of assets and liabilities, and disclosure of contingent assets and liabilities. The Company's actual results could vary materially from management's estimates and assumptions. Significant areas requiring the use of management estimates relate to the determination of expected tax rates for future income tax recoveries, stock-based compensation, embedded derivative assets and liabilities, asset retirement obligations and impairment of long-term investment. The estimates of proved, probable and possible oil and gas reserves are used as significant inputs in determining the depletion of oil and gas properties and the impairment of proved and unproved oil and gas properties. There are numerous uncertainties inherent in the estimation of quantities of proved, probable and possible reserves and in the projection of future rates of production and the timing of development expenditures. Similarly, evaluations for impairment of proved and unproved oil and gas properties are subject to numerous uncertainties including, among others, estimates of future recoverable reserves and commodity price outlooks. Actual results could differ from the estimates and assumptions utilized. d) Financial Instruments ASC Topic 820-10, Fair Value Measurement requires disclosure of the fair value of financial instruments held by the Company. ASC Topic 820-10, Financial Instruments, defines fair value, and establishes a three-level valuation hierarchy for disclosures of fair value measurement that enhances disclosure requirements for fair value measures. The carrying amounts reported in the consolidated balance sheets for other receivable related party, accrued expenses and other current liabilities, accounts payable, derivative liabilities, amount due to directors, and convertible notes each qualify as financial instruments and are a reasonable estimate of their fair values because of the short period of time between the origination of such instruments and their expected realization and their current market rate of interest. The three levels of valuation hierarchy are defined as follows: · Level 1: inputs to the valuation methodology are quoted prices (unadjusted) for identical assets or liabilities in active markets. · Level 2: inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, and inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the financial instrument. · Level 3: inputs to the valuation methodology are unobservable and significant to the fair value measurement. Assets and liabilities measured at fair value as of March 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 $ 79,891 $ - $ - $ (7,265 ) $ 79,891 $ - $ - $ (7,265 ) Financial liabilities Derivative liabilities $ - $ - $ 3,664,741 $ (1,655,536 ) $ - $ - $ 3,664,741 $ (1,655,536 ) 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 The Companys long term investment consists of 3,437,500 common shares of Tanager Energy, Inc., which is traded on the TSX Venture Exchange (Toronto Stock Exchange). The change in the fair value of this investment recognized as an unrealized gain (loss) in other comprehensive income on the statement of operations and comprehensive loss was ($7,265) for the three months ended March 31, 2016 and $19,028 for the year ended December 31, 2015. The Company uses the Black-Scholes model to value its derivative liabilities. This model takes into account inputs such as contract terms, including maturity and market parameters, including assumptions associated with interest rates, volatility and credit worthiness. The derivative liabilities of the Company were $3,664,741 and $810,647 as of March 31, 2016 and December 31, 2015 respectively. The change in the fair value of the derivative liabilities for the three months ended March 31, 2016 consisted of an increase of $1,216,303 associated with warrants and the conversion features of new convertible debt, a reduction of $17,745 associated with the satisfaction of certain convertible debt and loss recognized in the statement of operations and comprehensive loss in the amount of $1,655,536. e) Cash and Cash Equivalents Cash and cash equivalents include cash in banks and highly liquid investment securities that have original maturities of three months or less. At March 31, 2016 and December 31, 2015, the Company does not have any cash deposits in excess of FDIC insured limits. f) Accounts receivable Accounts receivable consist of oil and gas receivables. The Company has classified these as short-term assets in the balance sheet because the Company expects repayment or recovery within the next 12 months. The Company evaluates these accounts receivable for collectability and, when necessary, records allowances for expected unrecoverable amounts. The Company deems all accounts receivable to be collectable, and has not recorded any allowance for doubtful accounts. g) Prepaid equity based compensation Prepaid equity-based expenses represent amounts paid in advance through the issuance of restricted shares of stock, for future contractual benefits to be received. These expenses paid in advance are recorded as prepaid equity-based compensation as a component of Stockholders Deficit and then amortized to the statements of operations and comprehensive loss over the life of the contract using the straight-line method. At March 31, 2016 and December 31, 2015, the balances of the prepaid equity-based compensation were comprised of the following: March 31, 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. $ 104,425 145,562 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. 778,082 - $ 882,507 $ 145,562 h) Oil and Gas Properties The Company uses the full cost method of accounting for its investment in oil and natural gas properties. Under this method of accounting, all costs associated with acquisition, exploration and development of oil and gas reserves, including directly related overhead costs, are capitalized. General and administrative costs related to production and general overhead are expensed as incurred. All capitalized costs of oil and gas properties, including the estimated future costs to develop proved reserves, are amortized on the unit of production method using estimates of proved reserves. Disposition of oil and gas properties are accounted for as a reduction of capitalized costs, with no gain or loss recognized unless such adjustment would significantly alter the relationship between capitalized costs and proved reserves of oil and gas, in which case the gain or loss is recognized in operations. Unproved properties and major development projects are not amortized until proved reserves associated with the projects can be determined or until impairment occurs. If the results of an assessment indicate that the properties are impaired, the amount of the impairment is included in loss from continuing operations before income taxes and the adjusted carrying amount of the unproved properties is amortized on the unit-of-production method. Depreciation, depletion and amortization expense utilizing the unit-of-production method for the Companys oil and gas properties for the three months ended March 31, 2016 and 2015 were as follows: Oil and Gas Properties by Geographical Cost Center Three months ended, March 31, Cost Center 2016 2015 Canada $ 2,064 $ - United States 18,302 - $ 20,366 $ - i) Limitation on Capitalized Costs Under the full-cost method of accounting, we are required, at the end of each reporting date, to perform a test to determine the limit on the book value of our oil and natural gas properties (the Ceiling test). If the capitalized costs of our oil and natural gas properties, net of accumulated amortization and related deferred income taxes, exceed the Ceiling, this excess or impairment is charged to expense. The expense may not be reversed in future periods, even though higher oil and natural gas prices may subsequently increase the Ceiling. The Ceiling is defined as the sum of: (a) the present value, discounted at 10 percent, and assuming continuation of existing economic conditions, of 1) estimated future gross revenues from proved reserves, which is computed using oil and natural gas prices determined as the unweighted arithmetic average of the first-day-of-the-month price for each month within the 12-month hedging arrangements pursuant to SAB 103, less 2) estimated future expenditures (based on current costs) to be incurred in developing and producing the proved reserves, plus (b) the cost of properties not being amortized; plus (c) the lower of cost or estimated fair value of unproven properties included in the costs being amortized, net of (d) the related tax effects related to the difference between the book and tax basis of our oil and natural gas properties. j) Oil and Gas Reserves Reserve engineering is a subjective process that is dependent upon the quality of available data and the interpretation thereof, including evaluations and extrapolations of well flow rates and reservoir pressure. Estimates by different engineers often vary sometimes significantly. In addition, physical factors such as the results of drilling, testing and production subsequent to the date of an estimate, as well as economic factors such as changes in product prices, may justify revision of such estimates. Because proved reserves are required to be estimated using recent prices of the evaluation, estimated reserve quantities can be significantly impacted by changes in product prices. k) Loss per Share Basic net loss per share is computed by dividing the net loss by the weighted-average number of common shares outstanding during the period. Diluted net loss per share is computed by dividing the net loss by the weighted-average number of common shares and, adjusted by any effects of warrants and options outstanding, if dilutive, that may add to the number of common shares during the period. At March 31, 2016 and 2015 there were approximately 20,361,550 and 0 common stock equivalents respectively, that were anti-dilutive and were not included in the calculation. l) Revenue Recognition All revenue is recognized when persuasive evidence of an arrangement exists, the service or sale is complete, the price is fixed or determinable and collectability is reasonably assured. Revenue is derived from the sale of crude oil and natural gas. Revenue from crude oil and natural gas sales is recognized when the product is delivered to the purchaser and collectability is reasonably assured. The Company follows the sales method of accounting for oil and natural gas revenue, so it recognizes revenue on all natural gas or crude oil sold to purchasers. m) Comprehensive Loss FASB ASC 220 Comprehensive Income, establishes standards for the reporting and presentation of comprehensive income and its components in the consolidated financial statements. For the three months ended March 31, 2016 and 2015, comprehensive income (loss) was ($7,265) and $54,768 respectively, and consisted primarily of unrealized gains and (losses) on available for sale securities. n) Income Taxes The Company accounts for income taxes under FASB Codification Topic 740-10-25 (ASC 740-10-25). Under ASC 740-10-25, deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. Under ASC 740-10-25, the effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. The Company provides a valuation allowance for deferred tax assets for which it does not consider realization of such assets likely. The Company did not incur any material impact to its financial condition or results of operations due to the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. The Company is subject to U.S federal jurisdiction income tax examinations for the tax years 2007 through 2015. In addition, the Company is subject to state and local income tax examinations for the tax years 2007 through 2015. o) Stock-Based Compensation The Company may issue stock options to employees and stock options or warrants to non-employees in non-capital raising transactions for services and for financing costs. In accordance with guidance in ASC Topic 718, the cost of stock options and warrants issued to employees and non-employees is measured on the grant date based on the fair value. The fair value is determined using the Black-Scholes option pricing model. The resulting amount is charged to expense on the straight-line basis over the period in which the Company expects to receive the benefit, which is generally the vesting period. The fair value of stock warrants was determined at the date of grant using the Black-Scholes option pricing model. The Black-Scholes option model requires management to make various estimates and assumptions, including expected term, expected volatility, risk-free rate, and dividend yield. The expected term represents the period of time that stock-based compensation awards granted are expected to be outstanding and is estimated based on considerations including the vesting period, contractual term and anticipated employee exercise patterns. Expected volatility is based on the historical volatility of the Companys stock. The risk-free rate is based on the U.S. Treasury yield curve in relation to the contractual life of stock-based compensation instrument. The dividend yield assumption is based on historical patterns and future expectations for the Company dividends. The following table represents stock warrant activity as of and for the three months ended March 31, 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 March 31, 2016 4,062,500 $ 0.20 5.0 years $ - Outstanding Exercisable December 31, 2015 - $ - - $ - Outstanding Exercisable March 31, 2016 4,062,500 $ 0.20 5.0 years $ - The Company used the Black-Scholes model to value these warrants at $416,315, and included this amount as a debt discount and a corresponding component of derivative liabilities. p) Long-term Investment Management determines the appropriate classification of investment securities at the time of purchase. Securities are classified held-to-maturity when the Company has both the positive intent and ability to hold the securities to maturity. Held-to-maturity securities are stated at amortized cost. Securities that are bought and held principally for the purpose of selling in the near term are classified as trading securities and reported at fair value, with unrealized gains and losses included in earnings. Securities not classified as held-to-maturity or trading are classified as available-for-sale. Available-for-sale securities are stated at fair value, the changes in the market value of available-for-sale securities, excluding other-than-temporary impairments, are reflected in Other Comprehensive Income, with the impairment losses, net of income taxes, charged to net income in the period in which it occurs. The fair value of securities is based on quoted market prices. If a quoted market price is not available, fair value is estimated using quoted market prices for similar securities. A decline in the market value of any available-for-sale or held-for-maturity security below cost that is deemed to be other-then-temporary results in a reduction in carrying amount to fair value. Impairments that are considered other-than-temporary are recognized as a loss in the consolidated statements of operations. The Company considers various factors in reviewing impairments, including the length of time and extent to which fair value has been less than the Companys cost basis, the financial condition and near-term prospects of the issuer, and the Companys intent and ability to hold the investments for a period of time sufficient to allow for any anticipated recovery in market value. As of March 31, 2016 and December 31, 2015, the Company had no trading and held-to-maturity securities. The Companys long term investment consists of 3,437,500 common shares of Tanager Energy, Inc., which is traded on the TSX Venture Exchange (Toronto Stock Exchange), and is considered as available-for-sale securities. The change in the fair value of this investment recognized as an unrealized gain (loss) in other comprehensive income on the statement of operations and comprehensive loss was ($7,265) for the three months ended March 31, 2016 and $19,028 for the year ended December 31, 2015. q) Impairment of long-lived assets In accordance with ASC 360, "Accounting for the Impairment or Disposal of Long-Lived Assets", the Company is required to review its long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable through the estimated undiscounted cash flows expected to result from the use and eventual disposition of the assets. Whenever any such impairment exists, an impairment loss will be recognized for the amount by which the carrying value exceeds the fair value. Assets are grouped and evaluated at the lowest level for their identifiable cash flows that are largely independent of the cash flows of other groups of assets. The Company considers historical performance and future estimated results in its evaluation of potential impairment and then compares the carrying amount of the asset to the future estimated cash flows expected to result from the use of the asset. If the carrying amount of the asset exceeds estimated expected undiscounted future cash flows, the Company measures the amount of impairment by comparing the carrying amount of the asset to its fair value. The estimation of fair value is generally determined by using the asset's expected future discounted cash flows or market value. The Company estimates fair value of the assets based on certain assumptions such as budgets, internal projections, and other available information as considered necessary. There is no impairment of long-lived assets during the three months ended March 31, 2016 and 2015. r) Foreign Currency Exchange An entity's functional currency is the currency of the primary economic environment in which it operates, normally that is the currency of the environment in which the entity primarily generates and expends cash. Management's judgment is essential to determine the functional currency by assessing various indicators, such as cash flows, sales price and market, expenses, financing and inter-company transactions and arrangements. The functional currency of the parent company is the U.S. Dollar. The reporting currency of the Company is the U.S. Dollar. The Company has oil and gas operations in Alberta, Canada in which the Canadian Dollar (CAD or CS herein) is the primary economic environment. The reporting currency of these consolidated financial statements is the U.S. Dollar. For financial reporting purposes, the operational results of the Company's oil and gas operations in Canada are prepared using the CAD, and are translated into the Company's reporting currency, the U.S. Dollar. Revenue and expenses applicable to the oil and gas operations in Alberta, Canada are translated using average rates prevailing during each reporting period. Gains or losses resulting from the settlement of foreign currency transactions are recorded as a separate component of accumulated other comprehensive income in stockholders' equity when realized. There have been no settlement transactions that resulted in the recognition of a foreign currency exchange gain or loss during the three months ended March 31, 2016 and 2015. s) Convertible Notes Payable The Company accounts for conversion options embedded in convertible notes in accordance with ASC 815. ASC 815 generally requires companies to bifurcate conversion options embedded in convertible notes from their host instruments and to account for them as free standing derivative financial instruments. The Company has evaluated the terms and conditions of the convertible note under the guidance of ASC 815. The conversion feature did not meet the definition of indexed to a companys own stock provided for in ASC 815 due to the down round protection feature. Therefore, the conversion feature requires bifurcation and liability classification. Additionally, the default put requires bifurcation because it is indexed to risks that are not associated with credit or interest risk. As a result, the compound embedded derivative comprises of (i) the embedded conversion feature and (i) the default put. Rather than bifurcating and recording the compound embedded derivative as a derivative liability, the Company elected to initially and subsequently measure the convertible note in its entirety at fair value, with changes in fair value recognized in earnings in accordance with ASC 815-15-25-4. t) Derivative Liability We review the terms of convertible debt issues to determine whether there are embedded derivative instruments, including embedded conversion options, which are required to be bifurcated and accounted for separately as derivative financial instruments. In circumstances where the host instrument contains more than one embedded derivative instrument, including the conversion option, that is required to be bifurcated, the bifurcated derivative instruments are accounted for as a single, compound derivative instrument. Bifurcated embedded derivatives are initially recorded at fair value and are then revalued at each reporting date with changes in the fair value reported as non-operating income or expense. When the equity or convertible debt instruments contain embedded derivative instruments that are to be bifurcated and accounted for as liabilities, the total proceeds received are first allocated to the fair value of all the bifurcated derivative instruments. The remaining proceeds, if any, are then allocated to the host instruments themselves, usually resulting in those instruments being recorded at a discount from their face value. The discount from the face value of the convertible debt, together with the stated interest on the instrument, is amortized over the life of the instrument through periodic charges to interest expense. u) Accounting for Asset Retirement Obligations Asset retirement obligations (ARO) primarily represent the estimated present value of the amount the Company will incur to plug, abandon and remediate its producing properties at the projected end of their productive lives, in accordance with applicable federal, state and local laws. The Company determined its ARO by calculating the present value of estimated cash flows related to the obligation. The retirement obligation is recorded as a liability at its estimated present value as of the obligations inception, with an offsetting increase to proved properties. Pursuant to the terms of the operating agreement associated with the oil and gas property acquisitions in the United States made during the quarter ended March 31, 2016, the Company has not incurred any additional Asset Retirement Obligations as a result of this acquisition. The operating agreement stipulates that this obligation has been assumed by the lease operator. The following table describes the changes in the Companys asset retirement obligations for the three months ended March 31, 2016: Asset retirement obligation at December 31, 2015 $ 416,246 Accretion expense 5,108 Asset retirement obligation at March 31, 2016 $ 421,354 v) Recent Accounting Pronouncements The Financial Accounting Standards Board and other entities issued new or modifications to, or interpretations of, existing accounting guidance during 2016. Management has carefully considered the new pronouncements that altered generally accepted accounting principles and does not believe that any other new or modified principles will have a material impact on the Companys reported financial position or operations in the near term. w) Subsequent events The Company has evaluated all transactions through the date the consolidated financial statements were available to be issued for subsequent event disclosure consideration (Note 9). |
Related Party Transactions
Related Party Transactions | 3 Months Ended |
Mar. 31, 2016 | |
Notes to Financial Statements | |
Note 4. Related Party Transactions | During April 2015, the Company made an advance to Tanager Energy Inc., in conjunction with a joint investment in the second oil well of the Joffre Project. As of March 31, 2016, the balance owed by Tanager to the Company is $153,877, which is shown as other receivable related party on the balance sheet.. During the three months ended March 31, 2016, the Companys Executive Chairman and Director, Tom Simeo did not accrue payroll and made no advances to the Company. The Company paid a total of $775 against prior advances. Any accruals and advances do not bear interest, are unsecured and have no specific terms of repayment. As of March 31, 2016, the net amount due for prior accruals and expenses paid on behalf of the Company is $36,385. The Company has not imputed interest as the amount is deemed immaterial. During the three months ended March 31, 2016, the Companys CEO and Director, James Doris incurred expenses on behalf of, and made advances to the Company in the amount of $35,194 in order to provide the Company with funds to carry on its operations, and the Company made repayments of $35,000. These advances do not bear interest, are unsecured and have no specific terms of repayment. As of March 31, 2016, the amount due for expenses paid on behalf of the Company is $218,690. The Company has not imputed interest as the amount is deemed immaterial. Additionally, Mr. Doris made several loans to the Company totaling $359,336, all accruing interest at 12%, and payable on demand. As of March 31, 2016, the total amount due to Mr. Doris for advances and expenses paid on behalf of the Company and loans is $578,025. Accrued interest of $30,792 is included in other payables at March 31, 2016. |
Oil and Gas Properties
Oil and Gas Properties | 3 Months Ended |
Mar. 31, 2016 | |
Notes to Financial Statements | |
Note 5. Oil and Gas Properties | The following table summarizes the Companys oil and gas activities by classification and geographical cost center for the three months ended March 31, 2016: December 31, 2015 Additions Impairments March 31, 2016 Proved developed producing oil and gas properties Canada cost center $ 33,082 $ - $ - $ 33,082 United States cost center - 1,308,938 - 1,308,938 Accumulated depreciation, depletion and amortization (2,093 ) (13,851 ) - (15,944 ) Proved developed producing oil and gas properties, net $ 30,989 $ 1,295,087 $ - $ 1,326,076 Undeveloped and non-producing oil and gas properties Canada cost center $ 518,269 $ - $ - $ 518,269 United States cost center - 861,312 - 861,312 Accumulated depreciation, depletion and amortization (32,788 ) (6,515 ) - (39,303 ) Undeveloped and non-producing oil and gas properties, net $ 485,481 $ 854,797 $ - $ 1,340,278 Total Oil and Gas Properties, Net $ 516,470 $ 2,149,884 $ - $ 2,666,354 On February 23, 2016, with an effective date of February 1, 2016, the Company closed on the acquisition of working interests in four leases with access to the mineral rights (oil and gas) concerning approximately 281 acres of property in Miami and Franklin Counties in eastern Kansas. This project produces oil from the Cherokee formation at a depth of approximately 600 feet. These leases offer the potential for several future drilling locations. The purchase includes an undivided interest in all oil and gas wells, equipment, fixtures and other personal property located upon the leased properties and used in connection with oil and gas operations upon the leases attributable to the working interests purchased by the Company. The names of the four leases and Vikings percentage ownership of the working interest of each lease is as follows: Lease Name Viking's Working Interest Percentage HAHN 32.299 % JOHNSTON 84.041 % WILSON, EAST 15.000 % WILSON, WEST 55.003 % As consideration for this transaction, the Company paid $1,350,000 plus 4,650,000 shares of common stock valued at $.085 per share, or $395,250. The Company also purchased a 100% working interest (Net Revenue Interest of 83%) in certain Non-Producing Leases as follows: (i) three leases with access to the mineral rights (oil and gas) concerning approximately 270 acres of property in Miami and Franklin Counties in eastern Kansas; and (ii) 31 leases with access to the mineral rights (oil and gas) concerning approximately 5,500 acres of property in Cass and Bates Counties in Missouri. The purchase includes an undivided interest in all oil and gas wells, equipment, fixtures and other personal property located upon the leased properties and used in connection with oil and gas operations upon the leases attributable to the working interests purchased by Viking. As consideration for this transaction, Viking agreed to issue the vendors 5,000,000 shares of common stock valued at $.085 per share, or $425,000. The total purchase of these oil and gas interests is summarized as follows:, and is included in oil and gas properties on the balance sheet at March 31, 2016: Cash consideration $ 1,350,000 Stock for producing interests 395,250 Stock for non-producing interests 425,000 Total purchase price $ 2,170,250 For the three months ended March 31, 2016, the Company has included $29,557 of revenue providing $7,604 of net earnings in its consolidated statement of operations and comprehensive loss from the date of acquisition. To facilitate these acquisitions, the Company borrowed $1,625,000 from private lenders pursuant to a 15% Senior Secured Convertible Promissory Note (the "Note"), arranged through a licensed broker/dealer, with the primary terms of the loan being as follows: (i) Term Rate Security st Conversion Warrants |
Capital Stock and Additional Pa
Capital Stock and Additional Paid-in Capital | 3 Months Ended |
Mar. 31, 2016 | |
Notes to Financial Statements | |
Note 6. Capital Stock and Additional Paid-in Capital | (a) Preferred Stock The Company is authorized to issue 5,000,000 shares of Preferred Stock, par value $0.001 per share (the Preferred Stock), of which 50,000 have been designated as Series C Preferred Stock (the Series C Preferred Stock). Each share of Series C Preferred Stock shall entitle the holder thereof to two thousand (2,000) votes on all matters submitted to a vote of the stockholders of the Corporation. In the event the Corporation shall at any time on or after the date that Preferred Stock has been issued (Distribution Date) declare or pay any dividend on common stock payable in shares of common stock, or effect a subdivision or combination or consolidation of the outstanding shares of common stock (by reclassification or otherwise than by payment of a dividend in shares of common stock) into a greater or lesser number of shares of common stock, then in each such case the number of votes per share to which holders of shares of Series C Preferred Stock were entitled immediately prior to such event shall be adjusted by multiplying such number by a fraction of the numerator of which is the number of shares of common stock outstanding immediately after such event and the denominator of which is the number of shares of common stock that were outstanding immediately prior to such event. Each share of Series C Preferred Stock shall be convertible, at the option of the holder thereof, at any time after the date of issuance of such share, at the office of the Corporation or any transfer agent for such stock, into one share of fully paid and non-assessable common stock (the Conversion Rate). (b) Common Stock The Company is authorized to issue 100,000,000 shares of common stock, par value $0.001 per share. On January 12, 2016, the Company issued 300,926 common shares for convertible debt in the amount of $10,111. On March 16, 2016, the Company issued 1,000,000 common shares for services, valued at $102,500. On February 1, 2016, the Company authorized the issuance of 9,650,000 common shares as part of the consideration for the acquisition of the Oil and Gas investment made at that time. On March 21, 2016, the Company executed two one year consulting agreements requiring the issuance of 2,000,000 common shares for each contract. The shares were issued during April 2016, but have been accounted for as issuable as of March 31, 2016. On March 21, 2016, the Company executed a one year advisory services agreement requiring the issuance of 1,000,000 common shares for the contract. The shares are to be issued as 375,002 upon execution of the contract, with 56,818 shares being issued at the beginning of each month for the remaining eleven months. |
Long Term Debt
Long Term Debt | 3 Months Ended |
Mar. 31, 2016 | |
Notes to Financial Statements | |
Note 7. Long Term Debt | Long term debt consisted of the following at March 31, 2016 and December 31, 2015: March 31, 2016 December 31, 2015 On May 22, 2015, the Company issued a convertible promissory note with a cap of $50,000 with a 0% interest rate for the first three months. The terms of the note include a $5,000 Original Issue Discount, providing for a maximum funding of $45,000. The amount of the note funded as of March 31, 2016 was $25,000. The Company may repay this Note at any time on or before 90 days from the effective date. If the Company does not make a payment on or before 90 days from the notes effective date, a one-time interest charge of 12%shall be applied to the principal sum. The maturity date of the note is two years from the effective date of the note. The investor has the right, at any time after the Effective Date, at its election, to convert all of part of the outstanding and unpaid Principal Sum and accrued interest. The conversion price is the lesser of $0.10 or 60% of the lowest trade price in the 25 trading days previous to the conversion. Balance net of unamortized discount of $4,772 as of December 31, 2015. As of March 31, 2016 the full amount of the note has been converted to common shares. $ - $ 2,006 On November 3, 2015, the Company issued a $63,000 8% convertible note with a term expiring on November 3, 2016 (the "Maturity Date"). The principal amount of the note and interest is payable on the maturity date. The note is convertible into common stock at any time, at the holder's option, at a price equal to 58% of the lowest trading price of the common stock for the fifteen prior trading days including the day upon which a Notice of Conversion is received by the Company. Balance net of unamortized discount of $36,750 and $52,500 at March 31, 2016 and December 31, 2015 respectively. 26,250 10,500 On November 20, 2015, the Company issued a $30,000 12% convertible note with a term expiring on November 20, 2016 (the "Maturity Date"). The principal amount of the note and interest is payable on the maturity date. The note is convertible into common stock at any time, at the holder's option, at a price equal to 52% of the lowest trading price of the common stock for the twenty prior trading days including the day upon which a Notice of Conversion is received by the Company. Balance net of unamortized discount of $20,000 and $27,500 at March 31, 2016 and December 31, 2015 respectively. 10,000 2,500 On November 19, 2015, the Company issued a $50,000 12% convertible note with a term expiring on November 19, 2016 (the "Maturity Date"). The principal amount of the note and interest is payable on the maturity date. The note is convertible into common stock at any time, at the holder's option, at a price equal to 52% of the lowest trading price of the common stock for the twenty prior trading days including the day upon which a Notice of Conversion is received by the Company. Balance net of unamortized discount of $31,250 and $43,750 at March 31, 2016 and December 31, 2015 respectively. 18,750 6,250 On November 25, 2015, the Company issued a $27,500 8% convertible note with a term expiring on November 25, 2016 (the "Maturity Date"). The principal amount of the note and interest is payable on the maturity date. The note is convertible into common stock at any time, at the holder's option, at a price equal to 42% of the lowest trading price of the common stock for the twenty-five prior trading days including the day upon which a Notice of Conversion is received by the Company. Balance net of unamortized discount of $18,333 and $25,208 at March 31, 2016 and December 31, 2015 respectively. 9,167 2,292 On February 19, 2016, the Company issued a total of $1,625,000 15% convertible notes with a term expiring August 18, 2016 (the Maturity Date). The principal amounts of each note and interest is payable on the maturity date. The notes are convertible into common stock at any time, at the holders option, The conversion price shall be the lowest of (i) $0.15, (ii) 58% of the price of the Companys securities that are sold in any offering of the Companys securities in excess of $100,000, of (iii) the conversion price of any Equity converted on or prior to the Conversion Date. Balance net of unamortized discount of $1,020,977 at March 31, 2016. 604,023 - 668,190 23,548 Less current portion pertaining to continuing operations (668,190 ) (6,778 ) $ - $ 16,770 |
Commitments and contingencies
Commitments and contingencies | 3 Months Ended |
Mar. 31, 2016 | |
Notes to Financial Statements | |
Note 8. Commitments and contingencies | From time to time the Company may be a party to litigation matters involving claims against the Company. Management believes that there are no current matters that would have a material effect on the Companys financial position or results of operations. |
Subsequent Events
Subsequent Events | 3 Months Ended |
Mar. 31, 2016 | |
Notes to Financial Statements | |
Note 9. Subsequent Events | The Company has evaluated subsequent events from March 31, 2016 through the date of filing this Form 10-Q/A, and determined there are no other items to disclose other than those disclosed below: As of April 29, 2016, the Company issued a total of $375,000 of 10% Secured Subordinated promissory notes with a term expiring January 12, 2017 (the Maturity Date), and an original issue discount of fifty percent (50%). Interest is payable on the outstanding principal of these notes at 10% per annum on the Maturity Date. As of April 29, 2016, the Company, pursuant to a securities purchase agreement, sold 1,250,000 shares of its common stock at $0.15 per share. On September 28, 2016, the Company issued 2,400,000 common shares, at the current market value of $288,000 as a portion of the purchase price of additional oil and gas properties acquired on October 4, 2016. During September 2016, the Company negotiated the payment of certain convertible notes, and committed to the issuance of 375,000 common shares at the current market value of $52,500 as additional interest. As of September 30, 2016, the Company, pursuant to a securities purchase agreement, sold $1,337,500 shares of its common stock at $0.15 per share. As of October 2016, the Company issued a total of $610,000 of 10% Secured promissory notes with a term expiring April 3, 2017 (the Maturity Date), and an original issue discount of thirty seven and one half percent (37.5%). Interest is payable on the outstanding principal of these notes at 10% per annum on the Maturity Date. On October 4, 2016, the Company closed on the purchase of working interests in various oil and gas leases in Eastern Kansas. Simultaneously, to facilitate the purchase, the Company closed on its initial funding from Crossfirst Bank under the September 30, 2016 Revolver Agreement in the amount of $1,800,000. Additionally, on October 4, 2016, the Company committed to the issuance of 2,752,021 common shares as a part of the consideration for the acquisition of this oil and gas investment. The shares were issued in December 2016. During November 2016, the Company issued 1,400,000 common shares as part of a negotiated settlement on convertible notes. During November 2016, the Company issued 187,500 common shares pursuant to a securities purchase agreement. |
Summary of Significant Accoun16
Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2016 | |
Summary Of Significant Accounting Policies Policies | |
Basis of Presentation | The accompanying unaudited consolidated financial statements of Viking Investments Group, Inc. (Viking or the Company) have been prepared in accordance with generally accepted accounting principles in the United States of America (GAAP) and the rules of the Securities and Exchange Commission (SEC) and should be read in conjunction with the audited financial statements and notes thereto contained in Vikings latest Annual Report filed with the SEC on Form 10-K/A. In the opinion of management, all adjustments, consisting of normal recurring adjustments (unless otherwise indicated), necessary for a fair presentation of the financial position and the results of operations for the interim periods presented have been reflected herein. The results of operations for interim periods are not necessarily indicative of the results to be expected for the full year. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. |
Basis of Consolidation | The financial statements presented herein reflect the consolidated financial results of the Company and its wholly owned subsidiary, Viking Oil & Gas (Canada) ULC, a Canadian corporation formed on March 8, 2016. This subsidiary is intended to provide a base of operations in Canada, although at the time of this filing there has been no activity. All significant intercompany transactions and balances have been eliminated upon consolidation. |
Use of Estimates in the Preparation of Financial Statements | The preparation of consolidated financial statements in conformity with GAAP requires management to make certain estimates and assumptions that affect the reported amounts and timing of revenues and expenses, the reported amounts and classification of assets and liabilities, and disclosure of contingent assets and liabilities. The Company's actual results could vary materially from management's estimates and assumptions. Significant areas requiring the use of management estimates relate to the determination of expected tax rates for future income tax recoveries, stock-based compensation, embedded derivative assets and liabilities, asset retirement obligations and impairment of long-term investment. The estimates of proved, probable and possible oil and gas reserves are used as significant inputs in determining the depletion of oil and gas properties and the impairment of proved and unproved oil and gas properties. There are numerous uncertainties inherent in the estimation of quantities of proved, probable and possible reserves and in the projection of future rates of production and the timing of development expenditures. Similarly, evaluations for impairment of proved and unproved oil and gas properties are subject to numerous uncertainties including, among others, estimates of future recoverable reserves and commodity price outlooks. Actual results could differ from the estimates and assumptions utilized. |
Financial Instruments | ASC Topic 820-10, Fair Value Measurement requires disclosure of the fair value of financial instruments held by the Company. ASC Topic 820-10, Financial Instruments, defines fair value, and establishes a three-level valuation hierarchy for disclosures of fair value measurement that enhances disclosure requirements for fair value measures. The carrying amounts reported in the consolidated balance sheets for other receivable related party, accrued expenses and other current liabilities, accounts payable, derivative liabilities, amount due to directors, and convertible notes each qualify as financial instruments and are a reasonable estimate of their fair values because of the short period of time between the origination of such instruments and their expected realization and their current market rate of interest. The three levels of valuation hierarchy are defined as follows: · Level 1: inputs to the valuation methodology are quoted prices (unadjusted) for identical assets or liabilities in active markets. · Level 2: inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, and inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the financial instrument. · Level 3: inputs to the valuation methodology are unobservable and significant to the fair value measurement. Assets and liabilities measured at fair value as of March 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 $ 79,891 $ - $ - $ (7,265 ) $ 79,891 $ - $ - $ (7,265 ) Financial liabilities Derivative liabilities $ - $ - $ 3,664,741 $ (1,655,536 ) $ - $ - $ 3,664,741 $ (1,655,536 ) 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 The Companys long term investment consists of 3,437,500 common shares of Tanager Energy, Inc., which is traded on the TSX Venture Exchange (Toronto Stock Exchange). The change in the fair value of this investment recognized as an unrealized gain (loss) in other comprehensive income on the statement of operations and comprehensive loss was ($7,265) for the three months ended March 31, 2016 and $19,028 for the year ended December 31, 2015. The Company uses the Black-Scholes model to value its derivative liabilities. This model takes into account inputs such as contract terms, including maturity and market parameters, including assumptions associated with interest rates, volatility and credit worthiness. The derivative liabilities of the Company were $3,664,741 and $810,647 as of March 31, 2016 and December 31, 2015 respectively. The change in the fair value of the derivative liabilities for the three months ended March 31, 2016 consisted of an increase of $1,216,303 associated with warrants and the conversion features of new convertible debt, a reduction of $17,745 associated with the satisfaction of certain convertible debt and loss recognized in the statement of operations and comprehensive loss in the amount of $1,655,536. |
Cash and Cash Equivalents | Cash and cash equivalents include cash in banks and highly liquid investment securities that have original maturities of three months or less. At March 31, 2016 and December 31, 2015, the Company does not have any cash deposits in excess of FDIC insured limits. |
Accounts receivable | Accounts receivable consist of oil and gas receivables. The Company has classified these as short-term assets in the balance sheet because the Company expects repayment or recovery within the next 12 months. The Company evaluates these accounts receivable for collectability and, when necessary, records allowances for expected unrecoverable amounts. The Company deems all accounts receivable to be collectable, and has not recorded any allowance for doubtful accounts. |
Prepaid equity based compensation | Prepaid equity-based expenses represent amounts paid in advance through the issuance of restricted shares of stock, for future contractual benefits to be received. These expenses paid in advance are recorded as prepaid equity-based compensation as a component of Stockholders Deficit and then amortized to the statements of operations and comprehensive loss over the life of the contract using the straight-line method. At March 31, 2016 and December 31, 2015, the balances of the prepaid equity-based compensation were comprised of the following: March 31, 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. $ 104,425 145,562 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. 778,082 - $ 882,507 $ 145,562 |
Oil and Gas Properties | The Company uses the full cost method of accounting for its investment in oil and natural gas properties. Under this method of accounting, all costs associated with acquisition, exploration and development of oil and gas reserves, including directly related overhead costs, are capitalized. General and administrative costs related to production and general overhead are expensed as incurred. All capitalized costs of oil and gas properties, including the estimated future costs to develop proved reserves, are amortized on the unit of production method using estimates of proved reserves. Disposition of oil and gas properties are accounted for as a reduction of capitalized costs, with no gain or loss recognized unless such adjustment would significantly alter the relationship between capitalized costs and proved reserves of oil and gas, in which case the gain or loss is recognized in operations. Unproved properties and major development projects are not amortized until proved reserves associated with the projects can be determined or until impairment occurs. If the results of an assessment indicate that the properties are impaired, the amount of the impairment is included in loss from continuing operations before income taxes and the adjusted carrying amount of the unproved properties is amortized on the unit-of-production method. Depreciation, depletion and amortization expense utilizing the unit-of-production method for the Companys oil and gas properties for the three months ended March 31, 2016 and 2015 were as follows: Oil and Gas Properties by Geographical Cost Center Three months ended, March 31, Cost Center 2016 2015 Canada $ 2,064 $ - United States 18,302 - $ 20,366 $ - |
Limitation on Capitalized Costs | Under the full-cost method of accounting, we are required, at the end of each reporting date, to perform a test to determine the limit on the book value of our oil and natural gas properties (the Ceiling test). If the capitalized costs of our oil and natural gas properties, net of accumulated amortization and related deferred income taxes, exceed the Ceiling, this excess or impairment is charged to expense. The expense may not be reversed in future periods, even though higher oil and natural gas prices may subsequently increase the Ceiling. The Ceiling is defined as the sum of: (a) the present value, discounted at 10 percent, and assuming continuation of existing economic conditions, of 1) estimated future gross revenues from proved reserves, which is computed using oil and natural gas prices determined as the unweighted arithmetic average of the first-day-of-the-month price for each month within the 12-month hedging arrangements pursuant to SAB 103, less 2) estimated future expenditures (based on current costs) to be incurred in developing and producing the proved reserves, plus (b) the cost of properties not being amortized; plus (c) the lower of cost or estimated fair value of unproven properties included in the costs being amortized, net of (d) the related tax effects related to the difference between the book and tax basis of our oil and natural gas properties. |
Oil and Gas Reserves | Reserve engineering is a subjective process that is dependent upon the quality of available data and the interpretation thereof, including evaluations and extrapolations of well flow rates and reservoir pressure. Estimates by different engineers often vary sometimes significantly. In addition, physical factors such as the results of drilling, testing and production subsequent to the date of an estimate, as well as economic factors such as changes in product prices, may justify revision of such estimates. Because proved reserves are required to be estimated using recent prices of the evaluation, estimated reserve quantities can be significantly impacted by changes in product prices. |
Loss per Share | Basic net loss per share is computed by dividing the net loss by the weighted-average number of common shares outstanding during the period. Diluted net loss per share is computed by dividing the net loss by the weighted-average number of common shares and, adjusted by any effects of warrants and options outstanding, if dilutive, that may add to the number of common shares during the period. At March 31, 2016 and 2015 there were approximately 20,361,550 and 0 common stock equivalents respectively, that were anti-dilutive and were not included in the calculation. |
Revenue Recognition | All revenue is recognized when persuasive evidence of an arrangement exists, the service or sale is complete, the price is fixed or determinable and collectability is reasonably assured. Revenue is derived from the sale of crude oil and natural gas. Revenue from crude oil and natural gas sales is recognized when the product is delivered to the purchaser and collectability is reasonably assured. The Company follows the sales method of accounting for oil and natural gas revenue, so it recognizes revenue on all natural gas or crude oil sold to purchasers. |
Comprehensive Loss | FASB ASC 220 Comprehensive Income, establishes standards for the reporting and presentation of comprehensive income and its components in the consolidated financial statements. For the three months ended March 31, 2016 and 2015, comprehensive income (loss) was ($7,265) and $54,768 respectively, and consisted primarily of unrealized gains and (losses) on available for sale securities. |
Income Taxes | The Company accounts for income taxes under FASB Codification Topic 740-10-25 (ASC 740-10-25). Under ASC 740-10-25, deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. Under ASC 740-10-25, the effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. The Company provides a valuation allowance for deferred tax assets for which it does not consider realization of such assets likely. The Company did not incur any material impact to its financial condition or results of operations due to the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. The Company is subject to U.S federal jurisdiction income tax examinations for the tax years 2007 through 2015. In addition, the Company is subject to state and local income tax examinations for the tax years 2007 through 2015. |
Stock-Based Compensation | The Company may issue stock options to employees and stock options or warrants to non-employees in non-capital raising transactions for services and for financing costs. In accordance with guidance in ASC Topic 718, the cost of stock options and warrants issued to employees and non-employees is measured on the grant date based on the fair value. The fair value is determined using the Black-Scholes option pricing model. The resulting amount is charged to expense on the straight-line basis over the period in which the Company expects to receive the benefit, which is generally the vesting period. The fair value of stock warrants was determined at the date of grant using the Black-Scholes option pricing model. The Black-Scholes option model requires management to make various estimates and assumptions, including expected term, expected volatility, risk-free rate, and dividend yield. The expected term represents the period of time that stock-based compensation awards granted are expected to be outstanding and is estimated based on considerations including the vesting period, contractual term and anticipated employee exercise patterns. Expected volatility is based on the historical volatility of the Companys stock. The risk-free rate is based on the U.S. Treasury yield curve in relation to the contractual life of stock-based compensation instrument. The dividend yield assumption is based on historical patterns and future expectations for the Company dividends. The following table represents stock warrant activity as of and for the three months ended March 31, 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 March 31, 2016 4,062,500 $ 0.20 5.0 years $ - Outstanding Exercisable December 31, 2015 - $ - - $ - Outstanding Exercisable March 31, 2016 4,062,500 $ 0.20 5.0 years $ - The Company used the Black-Scholes model to value these warrants at $416,315, and included this amount as a debt discount and a corresponding component of derivative liabilities. |
Long-term Investment | Management determines the appropriate classification of investment securities at the time of purchase. Securities are classified held-to-maturity when the Company has both the positive intent and ability to hold the securities to maturity. Held-to-maturity securities are stated at amortized cost. Securities that are bought and held principally for the purpose of selling in the near term are classified as trading securities and reported at fair value, with unrealized gains and losses included in earnings. Securities not classified as held-to-maturity or trading are classified as available-for-sale. Available-for-sale securities are stated at fair value, the changes in the market value of available-for-sale securities, excluding other-than-temporary impairments, are reflected in Other Comprehensive Income, with the impairment losses, net of income taxes, charged to net income in the period in which it occurs. The fair value of securities is based on quoted market prices. If a quoted market price is not available, fair value is estimated using quoted market prices for similar securities. A decline in the market value of any available-for-sale or held-for-maturity security below cost that is deemed to be other-then-temporary results in a reduction in carrying amount to fair value. Impairments that are considered other-than-temporary are recognized as a loss in the consolidated statements of operations. The Company considers various factors in reviewing impairments, including the length of time and extent to which fair value has been less than the Companys cost basis, the financial condition and near-term prospects of the issuer, and the Companys intent and ability to hold the investments for a period of time sufficient to allow for any anticipated recovery in market value. As of March 31, 2016 and December 31, 2015, the Company had no trading and held-to-maturity securities. The Companys long term investment consists of 3,437,500 common shares of Tanager Energy, Inc., which is traded on the TSX Venture Exchange (Toronto Stock Exchange), and is considered as available-for-sale securities. The change in the fair value of this investment recognized as an unrealized gain (loss) in other comprehensive income on the statement of operations and comprehensive loss was ($7,265) for the three months ended March 31, 2016 and $19,028 for the year ended December 31, 2015. |
Impairment of long-lived assets | In accordance with ASC 360, "Accounting for the Impairment or Disposal of Long-Lived Assets", the Company is required to review its long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable through the estimated undiscounted cash flows expected to result from the use and eventual disposition of the assets. Whenever any such impairment exists, an impairment loss will be recognized for the amount by which the carrying value exceeds the fair value. Assets are grouped and evaluated at the lowest level for their identifiable cash flows that are largely independent of the cash flows of other groups of assets. The Company considers historical performance and future estimated results in its evaluation of potential impairment and then compares the carrying amount of the asset to the future estimated cash flows expected to result from the use of the asset. If the carrying amount of the asset exceeds estimated expected undiscounted future cash flows, the Company measures the amount of impairment by comparing the carrying amount of the asset to its fair value. The estimation of fair value is generally determined by using the asset's expected future discounted cash flows or market value. The Company estimates fair value of the assets based on certain assumptions such as budgets, internal projections, and other available information as considered necessary. There is no impairment of long-lived assets during the three months ended March 31, 2016 and 2015. |
Foreign Currency Exchange | An entity's functional currency is the currency of the primary economic environment in which it operates, normally that is the currency of the environment in which the entity primarily generates and expends cash. Management's judgment is essential to determine the functional currency by assessing various indicators, such as cash flows, sales price and market, expenses, financing and inter-company transactions and arrangements. The functional currency of the parent company is the U.S. Dollar. The reporting currency of the Company is the U.S. Dollar. The Company has oil and gas operations in Alberta, Canada in which the Canadian Dollar (CAD or CS herein) is the primary economic environment. The reporting currency of these consolidated financial statements is the U.S. Dollar. For financial reporting purposes, the operational results of the Company's oil and gas operations in Canada are prepared using the CAD, and are translated into the Company's reporting currency, the U.S. Dollar. Revenue and expenses applicable to the oil and gas operations in Alberta, Canada are translated using average rates prevailing during each reporting period. Gains or losses resulting from the settlement of foreign currency transactions are recorded as a separate component of accumulated other comprehensive income in stockholders' equity when realized. There have been no settlement transactions that resulted in the recognition of a foreign currency exchange gain or loss during the three months ended March 31, 2016 and 2015. |
Convertible Notes Payable | The Company accounts for conversion options embedded in convertible notes in accordance with ASC 815. ASC 815 generally requires companies to bifurcate conversion options embedded in convertible notes from their host instruments and to account for them as free standing derivative financial instruments. The Company has evaluated the terms and conditions of the convertible note under the guidance of ASC 815. The conversion feature did not meet the definition of indexed to a companys own stock provided for in ASC 815 due to the down round protection feature. Therefore, the conversion feature requires bifurcation and liability classification. Additionally, the default put requires bifurcation because it is indexed to risks that are not associated with credit or interest risk. As a result, the compound embedded derivative comprises of (i) the embedded conversion feature and (i) the default put. Rather than bifurcating and recording the compound embedded derivative as a derivative liability, the Company elected to initially and subsequently measure the convertible note in its entirety at fair value, with changes in fair value recognized in earnings in accordance with ASC 815-15-25-4. |
Derivative Liability | We review the terms of convertible debt issues to determine whether there are embedded derivative instruments, including embedded conversion options, which are required to be bifurcated and accounted for separately as derivative financial instruments. In circumstances where the host instrument contains more than one embedded derivative instrument, including the conversion option, that is required to be bifurcated, the bifurcated derivative instruments are accounted for as a single, compound derivative instrument. Bifurcated embedded derivatives are initially recorded at fair value and are then revalued at each reporting date with changes in the fair value reported as non-operating income or expense. When the equity or convertible debt instruments contain embedded derivative instruments that are to be bifurcated and accounted for as liabilities, the total proceeds received are first allocated to the fair value of all the bifurcated derivative instruments. The remaining proceeds, if any, are then allocated to the host instruments themselves, usually resulting in those instruments being recorded at a discount from their face value. The discount from the face value of the convertible debt, together with the stated interest on the instrument, is amortized over the life of the instrument through periodic charges to interest expense. |
Accounting for Asset Retirement Obligations | Asset retirement obligations (ARO) primarily represent the estimated present value of the amount the Company will incur to plug, abandon and remediate its producing properties at the projected end of their productive lives, in accordance with applicable federal, state and local laws. The Company determined its ARO by calculating the present value of estimated cash flows related to the obligation. The retirement obligation is recorded as a liability at its estimated present value as of the obligations inception, with an offsetting increase to proved properties. Pursuant to the terms of the operating agreement associated with the oil and gas property acquisitions in the United States made during the quarter ended March 31, 2016, the Company has not incurred any additional Asset Retirement Obligations as a result of this acquisition. The operating agreement stipulates that this obligation has been assumed by the lease operator. The following table describes the changes in the Companys asset retirement obligations for the three months ended March 31, 2016: Asset retirement obligation at December 31, 2015 $ 416,246 Accretion expense 5,108 Asset retirement obligation at March 31, 2016 $ 421,354 |
Recently Accounting Pronouncements | The Financial Accounting Standards Board and other entities issued new or modifications to, or interpretations of, existing accounting guidance during 2016. Management has carefully considered the new pronouncements that altered generally accepted accounting principles and does not believe that any other new or modified principles will have a material impact on the Companys reported financial position or operations in the near term. |
Subsequent events | The Company has evaluated all transactions through the date the consolidated financial statements were available to be issued for subsequent event disclosure consideration (Note 9). |
Restatement (Tables)
Restatement (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Restatement Tables | |
Selected Unaudited Consolidated Balance Sheets Information | Selected Unaudited Consolidated Balance Sheets Information as of March 31, 2016 Previously Net Reported Change Restated Petroleum and natural gas rights / oil and gas properties 2,957,441 (291,087 ) 2,666,354 Derivative liability 1,286,918 2,377,823 3,664,741 Additional paid in capital 9,391,246 303,781 9,695,027 Accumulated deficit (9,044,242 ) (2,318,928 ) (11,363,170 ) |
Selected Unaudited Consolidated Statements of Operations and Comprehensive Loss information | Selected Unaudited Consolidated Statements of Operations and Comprehensive Loss information for the three months ended March 31, 2016 and 2015 Three months ended March 31, 2016 Previously Net Reported Change Restated Derivative gain (loss) / change in fair value (527,303 ) (1,128,233 ) (1,655,536 ) Interest expense (181,257 ) (250,450 ) (431,707 ) Loss from operations (356,425 ) 44,939 (311,486 ) Net loss (1,064,985 ) (1,333,744 ) (2,398,729 ) Net comprehensive loss (1,072,250 ) (1,333,744 ) (2,405,994 ) Basic and diluted loss per common share (0.03 ) (0.03 ) (0.06 ) Three months ended March 31, 2015 Previously Net Reported Change Restated Derivative gain (loss) / change in fair value - 57,442 57,442 Derivative expense - (248,922 ) (248,922 ) Loss from operations (149,730 ) 4,542 (145,188 ) Net loss (168,932 ) (186,772 ) (355,704 ) Net comprehensive loss (114,164 ) (186,772 ) (300,936 ) Basic and diluted loss per common share (0.01 ) - (0.01 ) |
Selected Unaudited Consolidated Statements of Cash Flows information | Selected Unaudited Consolidated Statements of Cash Flows information for the three months ended March 31, 2016 and 2015 Three months ended March 31, 2016 Previously Net Reported Change Restated Net Loss (1,064,985 ) (1,333,744 ) (2,398,729 ) Derivative (gain) loss / change in fair value 527,303 1,128,233 1,655,536 Stock based compensation 102,500 63,055 165,555 Depreciation, depletion and amortization 70,413 (50,047 ) 20,366 Amortization of debt discount 132,164 255,559 387,723 Net cash used in operations 116,654 (35,194 ) 81,460 Three months ended March 31, 2015 Previously Net Reported Change Restated Net Loss (168,932 ) (186,772 ) (355,704 ) Derivative (gain) loss / change in fair value - (57,442 ) (57,442 ) Derivative expense - 248,922 248,922 Depreciation, depletion and amortization 4,542 (4,542 ) - Amortization of debt discount 8,333 (4,166 ) 4,167 Net cash used in operations 120,878 (24,437 ) 96,441 |
Summary of Significant Accoun18
Summary of Significant Accounting Policies (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Summary Of Significant Accounting Policies Tables | |
Financial Assets and liabilities measured at fair value | Assets and liabilities measured at fair value as of March 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 $ 79,891 $ - $ - $ (7,265 ) $ 79,891 $ - $ - $ (7,265 ) Financial liabilities Derivative liabilities $ - $ - $ 3,664,741 $ (1,655,536 ) $ - $ - $ 3,664,741 $ (1,655,536 ) 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 March 31, 2016 and December 31, 2015, the balances of the prepaid equity-based compensation were comprised of the following: March 31, 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. $ 104,425 145,562 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. 778,082 - $ 882,507 $ 145,562 |
Oil and Gas Properties by Geographical Cost Center | Depreciation, depletion and amortization expense utilizing the unit-of-production method for the Companys oil and gas properties for the three months ended March 31, 2016 and 2015 were as follows: Oil and Gas Properties by Geographical Cost Center Three months ended, March 31, Cost Center 2016 2015 Canada $ 2,064 $ - United States 18,302 - $ 20,366 $ - |
Schedule of Stock warrant activity | The following table represents stock warrant activity as of and for the three months ended March 31, 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 March 31, 2016 4,062,500 $ 0.20 5.0 years $ - Outstanding Exercisable December 31, 2015 - $ - - $ - Outstanding Exercisable March 31, 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 Companys asset retirement obligations for the three months ended March 31, 2016: Asset retirement obligation at December 31, 2015 $ 416,246 Accretion expense 5,108 Asset retirement obligation at March 31, 2016 $ 421,354 |
Oil and Gas Properties (Tables)
Oil and Gas Properties (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Oil And Gas Properties Tables | |
Oil and gas activities | The following table summarizes the Companys oil and gas activities by classification and geographical cost center for the three months ended March 31, 2016: December 31, 2015 Additions Impairments March 31, 2016 Proved developed producing oil and gas properties Canada cost center $ 33,082 $ - $ - $ 33,082 United States cost center - 1,308,938 - 1,308,938 Accumulated depreciation, depletion and amortization (2,093 ) (13,851 ) - (15,944 ) Proved developed producing oil and gas properties, net $ 30,989 $ 1,295,087 $ - $ 1,326,076 Undeveloped and non-producing oil and gas properties Canada cost center $ 518,269 $ - $ - $ 518,269 United States cost center - 861,312 - 861,312 Accumulated depreciation, depletion and amortization (32,788 ) (6,515 ) - (39,303 ) Undeveloped and non-producing oil and gas properties, net $ 485,481 $ 854,797 $ - $ 1,340,278 Total Oil and Gas Properties, Net $ 516,470 $ 2,149,884 $ - $ 2,666,354 |
Ownership of the working interest | The names of the four leases and Vikings percentage ownership of the working interest of each lease is as follows: Lease Name Viking's Working Interest Percentage HAHN 32.299 % JOHNSTON 84.041 % WILSON, EAST 15.000 % WILSON, WEST 55.003 % |
Purchase of oil and gas | The total purchase of these oil and gas interests is summarized as follows:, and is included in oil and gas properties on the balance sheet at March 31, 2016: Cash consideration $ 1,350,000 Stock for producing interests 395,250 Stock for non-producing interests 425,000 Total purchase price $ 2,170,250 |
Long Term Debt (Tables)
Long Term Debt (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Long Term Debt Tables | |
Long Term Debt | Long term debt consisted of the following at March 31, 2016 and December 31, 2015: March 31, 2016 December 31, 2015 On May 22, 2015, the Company issued a convertible promissory note with a cap of $50,000 with a 0% interest rate for the first three months. The terms of the note include a $5,000 Original Issue Discount, providing for a maximum funding of $45,000. The amount of the note funded as of March 31, 2016 was $25,000. The Company may repay this Note at any time on or before 90 days from the effective date. If the Company does not make a payment on or before 90 days from the notes effective date, a one-time interest charge of 12%shall be applied to the principal sum. The maturity date of the note is two years from the effective date of the note. The investor has the right, at any time after the Effective Date, at its election, to convert all of part of the outstanding and unpaid Principal Sum and accrued interest. The conversion price is the lesser of $0.10 or 60% of the lowest trade price in the 25 trading days previous to the conversion. Balance net of unamortized discount of $4,772 as of December 31, 2015. As of March 31, 2016 the full amount of the note has been converted to common shares. $ - $ 2,006 On November 3, 2015, the Company issued a $63,000 8% convertible note with a term expiring on November 3, 2016 (the "Maturity Date"). The principal amount of the note and interest is payable on the maturity date. The note is convertible into common stock at any time, at the holder's option, at a price equal to 58% of the lowest trading price of the common stock for the fifteen prior trading days including the day upon which a Notice of Conversion is received by the Company. Balance net of unamortized discount of $36,750 and $52,500 at March 31, 2016 and December 31, 2015 respectively. 26,250 10,500 On November 20, 2015, the Company issued a $30,000 12% convertible note with a term expiring on November 20, 2016 (the "Maturity Date"). The principal amount of the note and interest is payable on the maturity date. The note is convertible into common stock at any time, at the holder's option, at a price equal to 52% of the lowest trading price of the common stock for the twenty prior trading days including the day upon which a Notice of Conversion is received by the Company. Balance net of unamortized discount of $20,000 and $27,500 at March 31, 2016 and December 31, 2015 respectively. 10,000 2,500 On November 19, 2015, the Company issued a $50,000 12% convertible note with a term expiring on November 19, 2016 (the "Maturity Date"). The principal amount of the note and interest is payable on the maturity date. The note is convertible into common stock at any time, at the holder's option, at a price equal to 52% of the lowest trading price of the common stock for the twenty prior trading days including the day upon which a Notice of Conversion is received by the Company. Balance net of unamortized discount of $31,250 and $43,750 at March 31, 2016 and December 31, 2015 respectively. 18,750 6,250 On November 25, 2015, the Company issued a $27,500 8% convertible note with a term expiring on November 25, 2016 (the "Maturity Date"). The principal amount of the note and interest is payable on the maturity date. The note is convertible into common stock at any time, at the holder's option, at a price equal to 42% of the lowest trading price of the common stock for the twenty-five prior trading days including the day upon which a Notice of Conversion is received by the Company. Balance net of unamortized discount of $18,333 and $25,208 at March 31, 2016 and December 31, 2015 respectively. 9,167 2,292 On February 19, 2016, the Company issued a total of $1,625,000 15% convertible notes with a term expiring August 18, 2016 (the Maturity Date). The principal amounts of each note and interest is payable on the maturity date. The notes are convertible into common stock at any time, at the holders option, The conversion price shall be the lowest of (i) $0.15, (ii) 58% of the price of the Companys securities that are sold in any offering of the Companys securities in excess of $100,000, of (iii) the conversion price of any Equity converted on or prior to the Conversion Date. Balance net of unamortized discount of $1,020,977 at March 31, 2016. 604,023 - 668,190 23,548 Less current portion pertaining to continuing operations (668,190 ) (6,778 ) $ - $ 16,770 |
Nature of Business and Going 21
Nature of Business and Going Concern (Details Narrative) - USD ($) | 3 Months Ended | |||
Mar. 31, 2016 | Mar. 31, 2015 | Dec. 31, 2015 | Dec. 31, 2014 | |
Net comprehensive loss | $ (7,265) | $ 54,768 | ||
Shareholders' equity | (2,670,026) | $ (1,277,693) | $ (57,261) | |
Restated | ||||
Net comprehensive loss | (2,405,994) | $ (300,936) | ||
Shareholders' equity | $ (2,670,026) |
Restatement (Details)
Restatement (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | Dec. 31, 2015 | |
Balance Sheet | |||
Derivative liability | $ 2,377,823 | $ 810,647 | |
Additional paid in capital | 7,960,372 | ||
Accumulated deficit | (8,964,441) | ||
Statement of operations | |||
Derivative gain (loss) / change in fair value | 1,216,303 | ||
Net loss | (2,398,729) | (1,897,174) | |
Net comprehensive loss | (7,265) | $ 54,768 | |
Statements of Cash Flows | |||
Net Loss | (2,398,729) | $ (1,897,174) | |
Derivative (gain) loss / change in fair value | 1,216,303 | ||
Previously Reported | |||
Balance Sheet | |||
Petroleum and natural gas rights / oil and gas properties | 2,957,441 | ||
Derivative liability | 1,286,918 | ||
Additional paid in capital | 9,391,246 | ||
Accumulated deficit | (9,044,242) | ||
Statement of operations | |||
Derivative gain (loss) / change in fair value | (527,303) | ||
Interest expense | (181,257) | ||
Derivative expense | |||
Loss from operations | (356,425) | (149,730) | |
Net loss | (1,064,985) | (168,932) | |
Net comprehensive loss | $ (1,072,250) | $ (114,164) | |
Basic and diluted loss per common share | $ (0.03) | $ (0.01) | |
Statements of Cash Flows | |||
Net Loss | $ (1,064,985) | $ (168,932) | |
Derivative (gain) loss / change in fair value | (527,303) | ||
Stock based compensation | 102,500 | ||
Derivative expense | |||
Depreciation, depletion and amortization | 70,413 | 4,542 | |
Amortization of debt discount | 132,164 | 8,333 | |
Net cash used in operations | 116,654 | 120,878 | |
Net Change | |||
Balance Sheet | |||
Petroleum and natural gas rights / oil and gas properties | (291,087) | ||
Derivative liability | 2,377,823 | ||
Additional paid in capital | 303,781 | ||
Accumulated deficit | (2,318,928) | ||
Statement of operations | |||
Derivative gain (loss) / change in fair value | (1,128,233) | 57,442 | |
Interest expense | (250,450) | ||
Derivative expense | (248,922) | ||
Loss from operations | 44,939 | 4,542 | |
Net loss | (1,333,744) | (186,772) | |
Net comprehensive loss | $ (1,333,744) | $ (186,772) | |
Basic and diluted loss per common share | $ (0.03) | ||
Statements of Cash Flows | |||
Net Loss | $ (1,333,744) | $ (186,772) | |
Derivative (gain) loss / change in fair value | (1,128,233) | 57,442 | |
Stock based compensation | 63,055 | ||
Derivative expense | (248,922) | ||
Depreciation, depletion and amortization | (50,047) | (4,542) | |
Amortization of debt discount | 255,559 | (4,166) | |
Net cash used in operations | (35,194) | (24,437) | |
Restated | |||
Balance Sheet | |||
Petroleum and natural gas rights / oil and gas properties | 2,666,354 | ||
Derivative liability | 3,664,741 | ||
Additional paid in capital | 9,695,027 | ||
Accumulated deficit | (11,363,170) | ||
Statement of operations | |||
Derivative gain (loss) / change in fair value | (1,655,536) | 57,442 | |
Interest expense | 431,707 | 19,036 | |
Derivative expense | (248,922) | ||
Loss from operations | (311,486) | (145,188) | |
Net loss | (2,398,729) | (355,704) | |
Net comprehensive loss | $ (2,405,994) | $ (300,936) | |
Basic and diluted loss per common share | $ (0.06) | $ (0.01) | |
Statements of Cash Flows | |||
Net Loss | $ (2,398,729) | $ (355,704) | |
Derivative (gain) loss / change in fair value | (1,655,536) | 57,442 | |
Stock based compensation | 165,555 | ||
Derivative expense | (248,922) | ||
Depreciation, depletion and amortization | 20,366 | ||
Amortization of debt discount | 387,723 | 4,167 | |
Net cash used in operations | $ (81,460) | $ (96,441) |
Restatement (Details Narrative)
Restatement (Details Narrative) - USD ($) | 3 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | Dec. 31, 2015 | |
Derivative liability | $ 2,377,823 | $ 810,647 | |
Restated | |||
Derivative liability | 3,664,741 | ||
Derivative (gain) loss | $ 1,655,536 | $ (57,442) |
Summary of Significant Accoun24
Summary of Significant Accounting Policies (Details) - USD ($) | Mar. 31, 2016 | Dec. 31, 2015 |
Financial Assets | ||
Long term investment | $ 87,156 | |
Financial Liabilities | ||
Derivative Liabilities | $ 2,377,823 | 810,647 |
Quoted Prices in Active Markets for Identical Assets/Level 1 [Member] | ||
Financial Assets | ||
Long term investment | 79,891 | 87,156 |
Financial Asset | 79,891 | |
Financial Liabilities | ||
Derivative Liabilities | ||
Financial Liabilities | ||
Significant Other Observable Inputs/Level 2 [Member] | ||
Financial Assets | ||
Long term investment | ||
Financial Asset | ||
Financial Liabilities | ||
Derivative Liabilities | ||
Financial Liabilities | ||
Significant Unobservable Inputs/Level 3 [Member] | ||
Financial Assets | ||
Long term investment | ||
Financial Asset | ||
Financial Liabilities | ||
Derivative Liabilities | 3,664,741 | 810,647 |
Financial Liabilities | 3,664,741 | 810,647 |
Total Gain Loss [Member] | ||
Financial Assets | ||
Long term investment | (7,265) | 19,028 |
Financial Asset | (7,265) | 19,028 |
Financial Liabilities | ||
Derivative Liabilities | (1,655,536) | 266,378 |
Financial Liabilities | $ (1,655,536) | $ 266,378 |
Summary of Significant Accoun25
Summary of Significant Accounting Policies (Details 1) - USD ($) | Mar. 31, 2016 | Dec. 31, 2015 |
Prepaid expenses | $ 882,507 | $ 145,562 |
In November, 2015 [Member] | ||
Prepaid expenses | 104,425 | 145,562 |
In March, 2016 [Member] | ||
Prepaid expenses | $ 778,082 |
Summary of Significant Accoun26
Summary of Significant Accounting Policies (Details 2) - USD ($) | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Amortization expense for the oil and gas properties | $ 20,366 | |
Canada [Member] | ||
Amortization expense for the oil and gas properties | 2,064 | |
United States [Member] | ||
Amortization expense for the oil and gas properties | $ 18,302 |
Summary of Significant Accoun27
Summary of Significant Accounting Policies (Details 3) | 3 Months Ended |
Mar. 31, 2016USD ($)$ / sharesshares | |
Number of Shares | |
Outstanding, Beginning | |
Granted | 4,062,500 |
Exercised | |
Forfeited/expired/cancelled | |
Outstanding, Ending | 4,062,500 |
Exercisable at December 31, 2015 | |
Exercisable at March 31, 2016 | 4,062,500 |
Weighted Average Exercise Price | |
Outstanding, Beginning | $ / shares | |
Granted | $ / shares | 0.20 |
Exercised | $ / shares | |
Forfeited/expired/cancelled | $ / shares | |
Outstanding, Ending | $ / shares | 0.20 |
Exercisable at March 31, 2016 | $ / shares | $ 0.20 |
Weighted Average Remaining Contractual Life | |
Granted | 5 years |
Outstanding, Ending | 5 years |
Exercisable at March 31, 2016 | 5 years |
Aggregate Intrinsic Value | |
Outstanding, Beginning | $ | |
Granted | $ | |
Forfeited/expired/cancelled | $ | |
Outstanding, Ending | $ | |
Exercisable at March 31, 2016 | $ |
Summary of Significant Accoun28
Summary of Significant Accounting Policies (Details 4) | 3 Months Ended |
Mar. 31, 2016USD ($) | |
Summary Of Significant Accounting Policies Details 4 | |
Asset retirement obligation at December 31, 2015 | $ 416,246 |
Accretion expense | 5,108 |
Asset retirement obligation at March 31, 2016 | $ 421,354 |
Summary of Significant Accoun29
Summary of Significant Accounting Policies (Details Narrative) - USD ($) | 3 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | Dec. 31, 2015 | |
Unrealized gain (loss) on securities available-for-sale | $ (7,265) | $ 19,028 | |
Reduced convertible debt | 17,745 | ||
Derivative Liabilities | 2,377,823 | $ 810,647 | |
Change in fair value of derivative liability | $ 1,216,303 | ||
Common stock equivalents as anti dilutive | 20,361,550 | 0 | |
Comprehensive loss | $ (7,265) | $ 54,768 | |
Restated | |||
Unrealized gain (loss) on securities available-for-sale | (7,265) | 54,768 | |
Derivative Liabilities | 3,664,741 | ||
Change in fair value of derivative liability | (1,655,536) | 57,442 | |
Comprehensive loss | $ (2,405,994) | $ (300,936) |
Related Party Transactions (Det
Related Party Transactions (Details Narrative) - USD ($) | 3 Months Ended | |
Mar. 31, 2016 | Dec. 31, 2015 | |
Other receivable - joint venture | $ 153,877 | $ 153,877 |
Due to related party | $ 614,991 | |
Mr. Tom Simeo [Member] | ||
Advances to related party | 775 | |
Due to related party | 36,385 | |
Mr. James A. Doris [Member] | ||
Advances to related party | 35,194 | |
Repayments to related party | 35,000 | |
Due to related party | 578,025 | |
Accrued interest | 30,792 | |
Due amount | $ 218,690 |
Oil and Gas Properties (Details
Oil and Gas Properties (Details) - USD ($) | Mar. 31, 2016 | Dec. 31, 2015 |
Total Oil and Gas Properties, Net | $ 2,666,354 | $ 516,470 |
Proved Developed Producing [Member] | ||
Canada cost center | 33,082 | 33,082 |
United States cost center | 1,308,938 | |
Accumulated depletion and impairment amortization | (15,944) | (2,093) |
Oil and gas properties, net | 1,326,076 | 30,989 |
Undeveloped and Non-producing [Member] | ||
Canada cost center | 518,269 | 518,269 |
United States cost center | 861,312 | |
Accumulated depletion and impairment amortization | (39,303) | (32,788) |
Oil and gas properties, net | 1,340,278 | $ 485,481 |
Additions Proved Developed Producing [Member] | ||
Canada cost center | ||
United States cost center | 1,308,938 | |
Accumulated depletion and impairment amortization | (13,851) | |
Oil and gas properties, net | 1,295,087 | |
Additions Undeveloped and non-producing [Member] | ||
Canada cost center | ||
United States cost center | 861,312 | |
Accumulated depletion and impairment amortization | (6,515) | |
Oil and gas properties, net | 854,797 | |
Disposals Proved Developed Producing [Member] | ||
Canada cost center | ||
United States cost center | ||
Accumulated depletion and impairment amortization | ||
Oil and gas properties, net | ||
Disposals Undeveloped and non-producing [Member] | ||
Canada cost center | ||
United States cost center | ||
Accumulated depletion and impairment amortization | ||
Oil and gas properties, net |
Oil and Gas Properties (Detai32
Oil and Gas Properties (Details 1) | Mar. 31, 2016 |
HAHN [Member] | |
Working Interest | 32.299% |
JOHNSTON [Member] | |
Working Interest | 84.041% |
WILSON, EAST [Member] | |
Working Interest | 15.00% |
WILSON, WEST [Member] | |
Working Interest | 55.003% |
Oil and Gas Properties (Detai33
Oil and Gas Properties (Details 2) - Investment in Petroleum and Gas rights [Member] | Mar. 31, 2016USD ($) |
Cash consideration | $ 1,350,000 |
Stock for producing interests | 395,250 |
Stock for non-producing interests | 425,000 |
Total purchase price | $ 2,170,250 |
Oil and Gas Properties (Detai34
Oil and Gas Properties (Details Narrative) | 3 Months Ended |
Mar. 31, 2016USD ($) | |
Oil And Gas Properties Details Narrative | |
Revenue | $ 29,557 |
Net earnings | $ 7,604 |
Capital Stock and Additional 35
Capital Stock and Additional Paid-in Capital (Details Narrative) - $ / shares | Mar. 31, 2016 | Dec. 31, 2015 |
Capital Stock And Additional Paid-in Capital Details Narrative | ||
Preferred stock Series, par value | $ 0.001 | $ 0.001 |
Preferred stock Series, authorized | 5,000,000 | 5,000,000 |
Preferred stock Series, issued | 28,092 | 28,092 |
Preferred stock Series, outstanding | 28,092 | 28,092 |
Common stock, par value | $ 0.001 | $ 0.001 |
Common stock, authorized | 100,000,000 | 100,000,000 |
Common stock, issued | 46,284,919 | 30,333,993 |
Common stock, outstanding | 46,284,919 | 30,333,993 |
Long Term Debt (Details)
Long Term Debt (Details) - USD ($) | Mar. 31, 2016 | Dec. 31, 2015 |
Long Term Debt Current | $ 668,190 | $ 23,548 |
Less current portion | (668,190) | (6,778) |
Long Term Debt | 16,770 | |
Convertible Debt [Member] | ||
Long Term Debt Current | 2,006 | |
Convertible Debt 1 [Member] | ||
Long Term Debt Current | 26,250 | 10,500 |
Convertible Debt 2 [Member] | ||
Long Term Debt Current | 10,000 | 2,500 |
Convertible Debt 3 [Member] | ||
Long Term Debt Current | 18,750 | 6,250 |
Convertible Debt 4 [Member] | ||
Long Term Debt Current | 9,167 | 2,292 |
Convertible Debt 5 [Member] | ||
Long Term Debt Current | $ 604,023 |